1982-605
RESOLUTION NO. 82R-6QS
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM REQUESTING A DELAY BY THE
UNITED STATES CONGRESS IN THE IMPLEMENTATION
OF THE TAX EOUITY AND FISCAL RESPONSIBILITY
ACT OF 1982 AS IT PERTAINS TO THE REQUIREMENT
THAT AS OF JANUARY 1, 1983 ALL NEW MUNICIPAL
BONDS MUST BE ISSUED IN REGISTERED FORM TO
PRESERVE THEIR TAX-EXEMPT STATUS
WHEREAS, the United States Congress recently passed
the Tax Equity and Fiscal Responsibility Act which provides
that most municipal securities issued after December 31, 1982
must be issued solely in registered form to preserve their
tax-exempt statusj and
WHEREAS, these prov1s1ons will necessitate signifi-
cant changes in the practices of all participants in the
municipal securities market to include the municipal securities
industry, the issuer community and investors in municipal
securities; and
WHEREAS, if these provisions are implemented on
January 1, 1983, due to time constraints, the ability of
municipalities to borrow much needed moneys by the issuance of
municipal bonds will be greatly reduced or possibly completely
halted sincej
1. numerous state law requirements must be changed
to permit the issuance of registered bonds, to
permit the use of a local official as a transfer
agent, to permit the maintenance of an instate
registry, to permit a confidential bondholders
list, to permit a book entry accounting system,
to permit contractura1 arrangements with registered
transfer agents and any other necessary changes
to comply with the new federal law,
26 Necessary time-consuming changes to bond issuance
procedures will have to be developed by municipali-
ties many of which will greatly increase their costs,
3_ municipal market participants have expressed the view
that the generalized adoption of book-entry or im-
mobilized delivery systems would help solve the
problems of clearing registered municipal securitles
and it would be virtually impossible to establish
such a system by January 1, 1983,
4~ the Secretary of the Treasury has not yet adopted rules
and regulations to implement the registration provisions
and many questions remain unanswered; and
WHEREAS, due to numerous reasons many municipalities
are already having fiscal problems and the implementation of
these provisions will adversely affect th.ese fiscal problems;
NOW, THEREFORE, BE IT RESOLVED, by the City Council
of the City of Anaheim, that the City of Anah.eim requests
that the United States Congress delay for a period of two years
the implementation of the Tax Equity and Fiscal Responsibility
Act of 1982 as it pertains to the requirement that as of
January l, 1983, all new municipal bonds must be issued in
registered form to preserve their tax-exempt status; and
BE IT FURTHER RESOLVED, that a suitable copy of
this resolution be transmitted to the United States Department
of the Treasury and to both legislative bodies of the United
States Congress; and
BE IT FURTHER RESOLVED, that the City Clerk of the
City of Anaheim forward copies of this resolution to the City
of Anaheim Congressmen and Senators with a personal request
to respond to this significant problem.
THE FOREGOING RESOLUTION is approved and adopted
by the City Council of the City of Anaheim this 14th day
of December, 1982.
MAYO~~~IM
ATTEST:
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cfTYTCLERK ~y OF ANAHEIM
FAL/vh
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, LINDA D. ROBERTS, City Clerk of the City of Anaheim, do hereby certify that
the foregoing Resolution No. 82R-605 was introduced and adopted at a regular
meeting provided by law, of the City Council of the City of Anaheim held on
the 14th day of December, 1982, by the following vote of the members thereof:
AYES: COUNCIL MEMBERS: Kaywood, Pickler, Overholt, Bay and Roth
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
AND I FURTHER certify that the Mayor of the City of Anaheim signed said
Resolution No. 82R-605 on the 14th day of December, 1982.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the
City of Anaheim this 14th day of December, 1982.
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C Y C~RK OF THE CITY ANAHEIM
(SEAL)
I, LINDA D. ROBERTS, City Clerk of the City of Anaheim, do hereby certify that
the foregoing is the original of Resolution No. 82R-605 duly passed and
adopted by the Anaheim City Council on December 14, 1982.
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CITY CLE