HomeMy WebLinkAboutAgenda Report - December 19, 2012 C-22AGENDA ITEM C rZZ
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA TITLE: Authorize the Mayor, on Behalf of the City Council, to Send a Letter
of Supportfor Preserving Tax -Exempt Financing for Local Government
MEETING DATE: December 19,2012
PREPARED BY: City Clerk
RECOMMENDEDACTION: Authorize the Mayor, on behalf of the City Council, to send a letter
of support for preserving tax-exempt financing for local government.
BACKGROUND INFORMATION: On December 11, 2012, the Northern California Power Agency
(NCPA), through its Legislative and Regulatory Committee,
requested that its members send a letterto their congressional
representatives stressing the importance of preserving tax-exempt financing for local governments. As a
part of the "fiscal cliff discussion and negotiations, representatives from both political parties have put
tax-exempt financing on the table, although not in specific detail. The importance of tax-exempt bonds is
outlined in the attached draft letter.
For the reasons stated above, it is recommended that the City Council authorize the execution and
delivery of the proposed correspondence.
FISCAL IMPACT: Not applicable at this time.
FUNDING AVAILABLE: Not applicable at this time.
Randi o
City Clerk
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Konradt Bartlam, City Manager
Page 1 of 2
Randi Johl
From: Randi Johl
Sent: Tuesday, December 11,2012 03:41 PM
To: Randi Johl
Subject: FW: tax-exempt financing / congressional template letter
Attachments: NCPA- preserve tax-exempt financing TEMPLATE letter.docx; ATT23815321.htm
From: Brentten Pas [ma !Ito:brent.tenpas@ncnaxom]
Sent: Tuesday, December 11,2012 10:56 AM
To: *L&R Committee
Subject: tax-exempt financing/ congressional template letter
NCPA Legislative & Regulatory Committee members,
Good morning.
As the "fiscal cliff' end -of -the -year deadline draws near, the Administration and
Congress continue deliberations in an attempt to seek consensus on ways to increase
revenue, including the potential elimination or reduction of the deductibility of
interest on municipal bonds. Though lacking in specifics, representatives from both
political parties have put tax-exempt financing on the table. As well, this threat
could carry over into next year as "tax reform" remains a legislative priority for both
the Administration and Congress.
We would like to keep this issue and our concerns front -and -center with our
congressional delegation. Towards that end, we would encourage each NCPA
member to personalize the attached letter and send it to your federal representatives
(Members of the House and both U.S. Senators) stressing the importance of
protecting municipal tax-exempt financing. We need to make sure that our
congressional delegation remains fully aware of these threats and understands the
impact and adverse result it would have on their constituents.
Please contact me if you have any questions.
Thank you,
Brent R. ten Pas
Federal GovernmentReladons
Northern California Power Agency
A PublicAgency
651 Commerce Drive
Roseville, CA 95678-6420
(916) 781-4283 Phone
(916) 759-3265 Cell
(916) 782-2191 Fax
12/11/2012
CITY COUNCIL
ALAN NAKANISHI, Mayor
PHIL KATZAKIAN,
Mayor Pro Tempore
LARRY D. HANSEN
BOBJOHNSON
JOANNE MOUNCE
December 19, 2012
CITY OF LODI
CITY HALL, 221 WEST PINE STREET
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
(209) 333-6702 / FAX (209) 333-6807
www.lodi.gov citvclerk(5-Modi.gov
Dear Representative/Senator
KONRADT BARTLAM,
City Manager
RANDI JOHL, City Clerk
D. STEPHEN SCHWABAUER
City Attorney
As you struggle with the challenging issues of addressing the "fiscal cliff' and tax reform,
am writing to remind you of the companion challenges faced by local governments and
the critical importance of tax-exempt bonds to the financial health: of our community.
Residents and businesses in our community certainly understand and support efforts to
reduce the federal budget deficit and reform the tax code;;>" Buf#hose efforts need to be
done wisely in order to preserve essential services and`�,6 ote`.feconomic growth. For
that reason, I am writing to urge you to oppose ariy Reffort to eliminate or reduce the
ability of local governments to finance needed infrastructure through tax-exempt
financing.
As you know, tax-exempt bonds are the basic tool"Ut6d
to finance needed infrastructure — including much net
but also schools, roads, bridges, hospital, and water an
facilities provide essential services for ourhr� sidents a
construction jobs, and are the physical foun'datton, need
we issue tax-exempt bonds, the benefits g;o directli Lott
Eliminating or restricti
communities — not WE
current condition.:of r
delayed, scaled back,
We appreciate the d
congressional leade`''r.,`
accept ble choice.
Thank you for4your coi
Sincerely,
Alan Nakanishi
Mayor
rates and local" governments
electric utility infrastructure,
ver treatment plants. These
Wnesses, provide valuable
r Economic success. When
nmunities we serve.
pt bonds ,would rais6lhe cost of these projects. It is
)rs — that`°would suffer the consequences. Given the
id local budgets, many necessary projects could be
mated if financing costs rise.
you face;" but we are asking you to make clear to
mating or restricting tax-exempt bonds is not an
of this important issue.