HomeMy WebLinkAboutResolution 82-58R~SOLUTION NO. 82-58
RESOLUTION IN OPPOSITION TO THE REGISTRA-
TION REQUIREMENT IMPOSED UPON THE ISSUANCE
OF MUNICIPAL OBLIGATIONS BY THE TAX EQUITY
AND FISCAL RESPONSIBILITY ACT OF 1982
WHEREAS, the City of Columbia Heights, Minnesota (the "City") has been
and expects to be mn active issuer of general obligation bonds, notes and
obligations; a~d
WHEREAS, Section 309 of the Tax Equity and Fiseal Responsibility Act of
1982 (the "Act") amends the Internal Revenue Code of 1954 (the "Code") by adding
a new subsection (j) to Section 103 of the Code which requires that, after January
1, 1983, the obligations of the City must be in registered form in order to be
tax-exempt under Section 1(~3; and
WHEREAS, the issuance of the City's obligations in registered form ~411
require the City either to assume the additional administrative burden of main-
raining the registry books for its obligations, or to incur the additional expense of
paying a bond registrar to perform such services; and
WHEREAS, the City has been advised that the issuance of its obligations in
registered form may result in a higher rate of interest on such obligations than
would otherwise be obtainable without the registration requirement, therefor
increasing the City's costs in paying the debt service on such obligations:
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF COLUMBIA HEIGHTS, THAT:
1. The City opposes the imposition of additional duties and eosts which
it is required to incur in order to comply with the Act.
2. The City finds and declares that the registration requirements of
Section 309 of the Act constitute an offensive and unnecessary intrusion by the
Government of the United States of America into the financial affairs of the City.
$. The City appeals to the Senators and Representatives who represent
the State of Minnesota in the United States Congress to repeal or rescind Section
309 of the Act or to otherwise relieve the City of the Registration requirements
contained therein in order to maintain and protect the City's ability to successfUlly
issue its obligations in the presently existing unfavorable market conditions.
4. The Mayor and City Manager of the City are directed to represent
the interests of the City established in this resolution and to convey the City's
interests to the elected representatives of the State of Minnesota and any others in
such manner as they shall deem appropriate in order to protect these interests of
the City.
Passed this 22nd day of November , 1982.
Offered By:
Seconded
Ro]l Call:
Hen~ges
Hovland
Hovland, Norberg, Hentges, Nawrocki-,-aye
Petkoff--absent
Bruce G.'~Nawrocki, Mayor
.... ' ~o-Anne Student, Council Secretary