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CITY OF NORTH OLMSTED <br />RESOLUTION NO. 2013 - 40 <br />By: Mayor Kennedy <br />A RESOL UTION IN SUPPOR T OF THE PRESER VA TION OF <br />TAX-EXEMPT FINANCING, AND DECLARING AN EMERGENCY. <br />WHEREAS, tax-exempt municipal bonds are the primary means by which state and <br />local governments finance three quarters of the critical infrastructure of our nation, <br />including roads, bridges, hospitals, schools, and utility systems; and <br />WHEREAS, through the tax exemption, the federal government continues to <br />provide critical support for the federal, state and local partnership that develops and <br />maintains essential infrastructure, which it cannot practically replicate by other means; <br />and <br />WHEREAS, the municipal tax exemption has enabled state and local <br />governments to finance more than $1.65 trillion in infrastructure investment over the last <br />decade; and <br />WHEREAS, this tax exemption is part of a more than century-long system <br />of reciprocal immunity under which owners of federal bonds are, in turn, not required to <br />pay state and local income tax on the interest they receive from federal bonds; and <br />WHEREAS, municipalities benefit from this tax exemption through substantial <br />savings on the interest cost of borrowed money; and <br />WHEREAS, tax exempt bonds benefit state and local governments who need the <br />support of investors to finance critical infrastructure, taxpayers across the country who <br />depend on this infrastructure for reliable transportation systems, schools, public health <br />facilities, energy, clean water and affordable housing, the federal government, who gets <br />quite a bargain on their partnership with state and local government to provide the nation's <br />infrastructure through the exemption; and investors who buy bonds for many reasons,