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R-86-12 <br />• 6) Provides for bond issues to be taxable for failure to comply with <br />federal government additional administrative reports listing the <br />owners of the bonds and documents complying with new arbitrage <br />calculations. <br />RESOLVED, That these provisions will result in higher issuance costs when <br />tax exempt bonds are issued, higher interest costs for tax exempt bonds <br />and additional administrative expenses after tax exempt bonds are issued. <br />NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Falcon <br />Heights that: <br />1) Existing federal arbitrage rules and regulations adequately <br />deal with the dispersement of bond proceeds issued by <br />governmental entities that provide governmental services. <br />2) The federal government should not impose any volume cap <br />limits on tax exempt bonds issued by governmental entitles to <br />provide governmental services. <br />3) The federal government remove the retroactive taxability <br />requirement on tax exempt bonds issued after January 1, 1986. <br />4) The proposed effective date for any federal law be <br />• established only after the federal law is signed by the President <br />and after state and/or local governments have time to adopt the <br />necessary legislation but in no event shall the effective date be <br />sooner than January 1, 1987. <br /> <br />