6034-86 Request revision of HR 3838 tax exempt bonds

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d) Eliminate the a plication of the various minimum taxes to interest paid to holders of m~nicipal bonds and notes, and eliminate the pro- vision which prevents financi 1 institutions from deducting as an expense interest paid to carry tax exempt debt. The minimum tax provisions, when applied to interest on tax ex~mpt debt, will reduce the market for tax exempt debt to the extent tha- interest costs will be substantially increased and needed projects may not b~ capable of being financed by state and local governments. The applicationl,of such minimum taxes to our tax exempt debt is, in our opinion, unconstitutional. e) Eliminate the restrictions and prohibitions with respect to advance refundings of state and local. bonds and bonds issued by non-profit hospitals. Advance refunding are key to local governments (i) reducing the overall costs of providing go ernmental improvements, and in our case, pro- viding the. most cost-effectiv hospital care to residents. of our City at the lowest possible rates, and (i~) to relieve local governments of outdated and onerous covenants which may cbst our taxpayers and rate payers more than is required under changed circumstances and available financing techniques that will exist in the future. f) We also urge of er revisions to H. R. 3838 that are suggested by national public interest associations, including those recommendations of the National. League of Cities the U.S. Conference of Mayors, The National Governors' Conference, The Goy~ernmental Finance Officers Association and the National Association of Counties.. Section 2. The Clerk oflICouncil is hereby directed to send a copy of this Resolution to Senators J¢hn H. Glenn and Howard Metzenbaum, and to rep= resentatives Edward F. Feigha~ihh, Mary Rose Okar, Louis Stokes, Dennis E. Eckart and Donald J, Pease; and the C ty's Directors of Finance is hereby authorized to send a copy of this Resolu ion to such other United States Senators and Representatives as he may det rmine to be useful in securing the revisions to H. R. 3838 requested in this resolution. Section 3. This Resolution is herby declared to be an emergency measure necessary for the immediate p enervation of the public peace, property, health, safety and welfare in the City for the reason that the pending of H. R. 3838 in the Congress has adversely affected the City's ability to market its bonds and notes, and provided it re elves the affirmative vote of two-thirds of all members elected to Council, this Resolution shall take effect and be in force immediately upon its adoption~by the Council and approval by the Mayor; otherwise, it shall. take effe t and be in force after the earliest rio allowed by law. i CPassed~ ~ / ~ ~ ~ 1986 ~ t G~ President of oun it Clerk of Council Approved:21~~2 +(,,~i` ~~/fi0~, 986 y ~c.~ya~ ' ~7Mayor I _2_ I