HomeMy WebLinkAboutResolutions - 1989.03.09 - 17029V ft.PP70\fr: THE roPF.GrIT",(7 PFSOLUTION
Miscellaneous Resolution # 89073
BY GOVERNMENT & TRANSPORTATION COMMITTEE-
Richard G. Skarritt, Chairperson
RE: PRESERVE TAX-EXEMPT BONDS FOR STATE
AND LOCAL GOVERNMENTS
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS federal, state and local governments all share in the
responsibility of building and maintaining our nation's physical and
institutional infrastructure and in providing essential services to
promote the general welfare; and
WHEREAS the federal government has steadily diminished its
responsibility for infrastructure requirements and has shifted more and
more financial responsibility to states and local governments; and
WHEREAS in recent years Congress has both limited the use of
tax-exempt bonds by state and local governments and made municipal
bonds less attractive to purchasers, thereby driving up the cost of
financing public service projects; and
WHEREAS in 1988 the U. S. Supreme Court overturned a 100 -year
precedent, ruling for the first time that the Constitution does not
prohibit the federal government from taxing the interest on bonds
issued by state and local governments; and
WHEREAS state and local borrowing costs would increase an
estimated 20 to 33 percent if the interest on tax-exempt bonds is
subject to federal income tax which is a tempting option as Congress
seeks new revenue sources to reduce the federal deficit; and
WHEREAS in Oakland County the loss of tax -exempt status would
raise bond interest rates approximately two percentage points or to a
projected additional interest cost of $17,379,391 for a three-year
period, 1989, 1990 and 1991, and it appears that the taxable bond
interest cost would average about one-third more than non-taxable
bonds; and
WHEREAS the Supreme Court decision places in jeopardy the use
of tax-exempt bonds by 85,000 units of state and local governments to
finance such essential services and facilities as schools, roads, water,
sewer, gas, electricity, transportation and others.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board
of Commissioners urges Congress and the President to recognize that
the state and local responsibility of maintaining and expanding the
national infrastructure cannot be met without utilization of tax-exempt
bonds.
BE IT FURTHER RESOLVED that copies of this resolution be sent
to President Bush and to the Michigan Congressional Delegation.
Mr. Chairperson, on behalf of the Government & Transportation
Committee, I move the adoption of the foregoing resolution.
March 9, 1989
GOVERNMENT & TRANSPORTATION COMMITTEE
7AESOLUTION # 890/1 March 9, 1989
Moved by Skarritt supported by McCulloch the resolution be adopted.
AYES: Jensen, Johnson, R. Kuhn, S. Kuhn, Law, Luxon, McConnell, McCulloch,
McPherson, Moffitt, Oaks, Olsen, Pappageorge, Pernick, Price, Rewold, Skarritt, Wolf,
Bishop, Caddell, Calandro, Chester, Crake, Ferrens, Hobart. (25)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lynn D. Allen, Clerk of the County of Oakland and having a seal, do
hereby certify that I have compared the annexed copy of the attached resolution,
adopted by the Oakland County Board of Commissioners at their regular meeting
held on . March 9 , 198g with the original record thereof now remaining
on file in my office, and that it is a true and correct transcript therefrom,
and of the whole thereof.
In Testimony Whereof, I have hereunto set my hand and affixed the seal
of said County at Pontiac,Michigan this 9th day of March , 1989
LY19( D. ALLEN, County Clerk
Retister of Deeds
NiTIty Clerk