Laserfiche WebLink
Page 2 <br /> <br />"sunset" proposal would prohibit cities from selling bonds which require any phased <br />financing. This rules out any staged development projects. It would also force <br />cities to rush into the market to beat the "sunset" time since they wouldn't be able <br />to sell bonds as of July 1, 1981. This would force interest rates up as more cities <br />hurry into the market to be ahead of the deadline. <br /> <br />A second proposal establishes an interest limit of 9% on July 1, 1981 (called a "sunrise" <br />pro¥isionl for industrial development revenue bonds. Currently, industrial development <br />revenue bonds sell for 12 - 15% interest and have no statutorily established interest <br />ceiling° The "sunrise" provision would mean that such bonds couldn't be sold after July <br />1, 198i~ <br /> <br />These proposals are aimed at forcing a legislative interim study of bonds, both indus- <br />-trial and general obligation and revenue, and the development of a new bill to regulate <br />all municipal bonds. <br /> <br />The t. eague Board reviewed carefully this situation and reaffirmed the following long- <br />standing League policy: <br /> <br />1o The interest rates for municipal bonds should be determined in the market <br /> with no artificial limits or ceilings. <br /> <br />2o No July 1, 1981 "sunset" provision. <br /> <br />3. No "sunrise" provision regulating the interest rates of industrial development <br /> revenue bonds at 9% as of July 1, 1981. <br /> <br />The Senate has reported a bill to the floor(S.F. 2201 by Senator Stumpf)which needs <br />amendments to eliminate the "sUnrise'' and "sunset" provisions and allow the market <br />to ~$~ou.ish municipal bond interest rates <br /> <br />'the House Taxes Committee is considering H.F. 2214 (Schrieber, Casserly, Sieben, <br />Dempsey, Co Johnson) which needs the same kind of amendments. <br /> <br />WE NEED TO GET A BILL THROUGH THE SENATE AS SOON AS POSSIBLE IN AS GOOD A SHAPE AS <br />POSSIBLE~ <br /> <br />WE URGENTLY ASK YOU TO CONTACT YOUR SENATORS AND URGE THEM TO SUPPORT S.F. 2201 WITH <br />AMENDMENTS WHICH WE HoPE SENATOR STUMPF WILL OFFER° <br /> <br />WE FURTHER REQUEST YOU TO URGE YOUR SENATOR TO OPPOSE ANY AMENDMENTS WHICH WOULD DE- <br />SIGNATE THE ATTORNEY GENERAL AS BOND COUNSEL FOR POLITICAL SUBDIVISIONS OR WHICH <br />WOULD MANDATE THE UTILIZATION OF THE STATE INVESTMENT BOARD FOR THE MARKETING OF <br />MUNICIPAL BONDS~ <br /> <br />DS:glb <br /> <br /> <br />