276625 WNITE - CITY CLERK �y.a� A�r
PINK - FINANCE •/• ,��•l�'1
CANARY - DEPARTMENT G I T Y O F S A I N T PA U L � Council '� �v�
BLUE - MAYOR
File N 0.
ouncil Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
WHEREAS; Internal Revenue procedure $0-55 would disallow deductions
by banks for interest paid to State, County, and local Governments on their
investments where such depasits are secured by tax exempt securities, and,
WHEREAS: The proposed procedure could adversely effect the availability
of certain investment opportunities for local Governments, and,
WHEREAS: The proposal could have a negative effect on available interes�
rates and the marketability of tax exempt bonds,
,, � NOW, THEREFORE BE IT RESOLVED, that the City of Saint Paul opposes
IRS procedure 80-55.
BE IT FURTHER RESpLVED that the City Treasurer is instructed to
present this resolution to Che appropriate State and Federal representatives
to encoura�e their opposition to IRS 80-55 in order to save local governments
from a subsCantial loss of investment income and preserve the municipal bond
marke t.
COUNCILMEN Requestgd by Department of:
Yeas Nays
H�"t De F -
Levine In Favo[
Maddox
��� _ � Against B ''
Tedesco
Wilson ��e�
APR 7 3O Form Approved b ity Attorn
Adopted by Council: Date
Certified s d b Co �1 S ta BY
By
Ap ro y 1Aayor: D e � 8� Ap o by Mayor f r ub i�ion to Council
By
PUBLISHED APR 1 8 1981
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�� �'� Date : April 2, 1981
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7' � : 5ain� Paui Cif;� Cour��il . �•-
F��O�t� � COaflii�t�7'�� OCl FINANCE, MANAGEMENT & PERSONNEL .
. �, ..
George McMahon; ciiairman, makes fihe fuitayving
reporf on C.F. ` [� Ordinance
: _ . (g) � Resolu�ion
� - • � U i�tt e t' �
� ���� : �
At its meeting of Apri] 2, 1981 , the Finance Committee recommended approval of
the following:
� 1 . Resolution extending Shopper Parking Program. � - �
2. Resolution transferring $100,000 from 1981 Contingent Reserve Specified budget
for Sewer Inspection Program. (11817-McM) _
3. Resalution transferring funds for repayment of temporary transfers of funds . .
to Watergate Site Acquisition and Mattocks School . .
4. .ResoTution approving transfer of �58,051 in 1979 Capital Improvement Bonds fr.om
the .Downtown People Mover to the 1981 Capital Improvement Budget.
5. Resolution amending the 1981 Capital Improvement Budget to provide additiona.l
funding within the Municipal State Aid Fund. .
6. Resolution transferring $26,000 from Contingent Reserve General to pay .State
Auditor for EDP audit testing and some 1979 and 1980 department audits. (11845-GM)
7. Resolution opposing IRS revenue ruling disallowing deduction by banks for
interest on public funds. (11819-GM)
8. Resolution establishing titles of School Food Service Supervisor I, II and III.
(11840-GM)
9. Resolution establishing rates of pay for new titles of School Food Service
Supervisor I , II and III . (11844-GM) •
. (CONTIP•�UED . . . )
CITY 'rL�1LL SE�'ENTH FI.00;t SAIti�' PA�., ltit\\F:SOTs1 5�10'
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(� 41: i2' 9°75
. , . Rev��: �/8f76
�����
: EXPLANATION OF AIkSINISTRATIVE ORDERS, ` ���.rEI���
UTIO�IS. AND ORDII�ANC�S - _
. MAR� � �,�c��S1 :
i , �i� ,� � �: C���'Y Ai�GRs��FY
� � � � �r��� s� � � -�'� �'� ��������;
I�ate: 11, 19 1 � _ ����
�. 1
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T0: MAYOR GEORGE LATIMER �`�������
FR: Gary B. Norstiem, Dep't. of Finaaee sitd Mga�t. Sezvices :
�g; ' COQ�CIL 1tESt'I�LUTION OPPOSI� IAS REVE� Rt�,�i1G DZSAt.L0Trt3�� �I��CT'�QN �
, BY �� Ft� IN?S�ST OH PUBLIC �I�1D�.
,
, ACTION REQUES3'ED;
Th� pa�sag� af tha attached resolution aill pravid� s seaa,a of ,
exprsesi�g e�ur oppositLon to tbe pro�osed Tr�as�ry ruling.
'i'... � .. . . .
PURPt)SE AND RA�tf3+1AI.E FOR THIS ACTION: -
Bank,� have been aisable invasrors in �tunicipal-Bonda for �aay x�a�tt.;-:
In aanq ease�, Chese bonds ara pTedged as �ollatsral to prat�e�t �I,ie ;
_ ti�e' and damaad d�posits. Thia iR8 ruling cauid csuse banics �o �i�s�r"
int�rest in pu�ccl�asiag mueEicipal bonds Mhich could have the at�fe�t
of inareasimg the is�terest rates on the bv�tcl�. In acldition, this �u1d
red�ca the amot�at of collat�rsl availabla for public ftind int�rast
bwtriag ct�pasita and result in low�r rates for Ctty cerCificste of .
deposft investments. The Ktm�;cip�l Fin�ace tlfficera Assc�cist�au a�d
the L�agne of Gitiea are pr�ssntly la►bbying agai�►st the ZRS ruling
ahich ia 'scheduled to take effect on l�iay 31, 1981.
.
ATT�£�1TS•
Proposed Council Resolution.