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No . R-86-12 <br />CITY OF FALCON HEIGHTS <br />• <br />C O U N C I L R E S O L U T I O N <br />______ Date Febr arv 12, 1986 <br />A RESOLUTION RELATING TO THE TAX REFORM ACT OF 1985, <br />H.R. 3838 <br />RESOLVED, That the City Council of the City of Falcon heights and its <br />legal and financial advisors have studied and discussed the provisions <br />of H.R. 3838. <br />RESOLVED, That these provisions in H.R. 3838 that deal with tax exempt <br />bonds will seriously affect state and localities. <br />RESOLVED, That the specific concern relate to the following provisions <br />listed below: <br />1) Requires five percent (5~) of all bond proceeds dispersed or spent <br />within thirty (30) days of bond closing. <br />2) Requires all bond proceeds to be dispersed within six months of <br />closing or arbitrage rebates must be filed with the federal <br />government during the life of the bond issue. <br />• 3) Requires all bond proceeds for property acquisition or easement <br />acquisition be dispersed within thirty (30) days of closing. <br />4) Distinguishes between essential and non-essential bond portions. <br />Non-essential bonds would be subject to volume cap restrictions <br />within federal/state guidelines that would be finalized over the <br />next year. <br />5) Taxable bonds would be sold for projects when five percent or more <br />of the bond proceeds (up to five million dollars) were loaned or <br />ten percent or more of the bond proceeds (up to ten million dollars) <br />-- _ are used by persons other than a government unit, directly or indirectly. <br />Moved by Mayor Baldwin Approved by f ,~ ~~ J <br />Mayor <br />Seconded by Councilmember Ciernia <br />Yeas Nays <br />~ALDWIN ~ in Favor <br />~IERNIA <br />Y~RD ~ Against <br />CHENOWETH <br />.;dopte3 by Council February 26, 1986 <br />~/ ~/~,~ <br />Dat <br />Attested by . ,~~~{' <br />Clerk Administrate <br />~/mar s~~ <br />Date <br />