HomeMy WebLinkAboutResolution 867 � OLUTION FILE NO. ��7
A Resolution 3 �-
SMALL ISSUE - INDUSTRIAL DEVELOPMENT BONDS
WHEREAS, many state legislatures have enacted legislation for local
subdivisions of government to finance by the issuance of tax-exempt bonds
the acquisition and/or construction of facilities to be owned and operated
by private individuals, firms, or corporations for other than generally
recognized governmental functions; and,
WHEREAS, the increasing proliferation of this method of financing
has lead to an enormous amount of tax-exempt debt being available to the
investing public; and,
WHEREAS, although the purpose for which such debt is issued may,
locally, be deemed to be desirable, nonetheless, a continuation and broadening,
of such trend does adversely influence the interest rates paid by local
government for their public purpose government financing; and,
WHEREAS, the practical result of such financing is for local
governments to subsidize one through reduced interest cost in a manner
that is discriminatory toward other businesses not having such financing;
WHEREAS, such a practice, if allowed to continue will increase
the cost of financing local government capital improvements and cause an
... increase in property taxes to pay the increased interest costs; and,
THEREFORE, BE IT RESOLVED, that the City Council of the City of
Fort Worth, Texas:
1. Does hereby vote unanimously to oppose the use of small
issue conduit industrial revenue bonds;
2. Does hereby authorize the communication of this opposition
to its elected representatives in Washington; and,
3. Does hereby urge its elected representatives in Washington
to take all appropriate steps to prohibit the use of small
issue conduit industrial revenue bonds.
CITY OF PORT WORM