HomeMy WebLinkAboutResolution 39-R-25 Municipal Bond Tax Exemption Resolution4/14/2025
39-R-25
A RESOLUTION
DECLARING SUPPORT FOR THE PRESERVATION OF THE FEDERAL
TAX EXEMPTION OF MUNICIPAL BONDS
WHEREAS, the tax-exempt municipal bond market is a widely used source
of capital for states, local governments, tribes, territories, and non-profit borrowers that
finances a tremendous share of the nation’s public infrastructure; and
WHEREAS, state and local governments finance about three-quarters of
the public infrastructure in the United States and use tax-exempt bonds to do so, with the
federal government providing only about one-quarter of the investment; and
WHEREAS, federal tax exemption for municipal bonds, dating back to the
1800s and incorporated into the modern tax code in 1913, has been crucial for state and
local governments to affordably finance critical infrastructure projects; and
WHEREAS, tax-exempt bonds offer borrowers to achieve a multiplier effect
of 2.11, meaning that for every dollar, borrowers achieve $2.11 in borrowing cost savings
thereby demonstrating the efficiency and effectiveness of this exemption in facilitating
infrastructure investment; and
WHEREAS, tax-exempt bonds provide for essential infrastructure projects,
such as roads, bridges, utilities, broadband, water and sewer systems, and hospitals,
which are vital to the health and well-being of our community such that without such
bonds, the cost of borrowing would be more expensive thereby causing an increase in
taxes and fees that would place an undue burden on taxpayers; and
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39-R-25
WHEREAS, the City of Evanston finds and determines that tax-exempt
municipal bonds provide an opportunity for economic development along its path, better
facilitate the movement of agriculture products, equipment, and other goods, and increase
safety.
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND THE CITY
COUNCIL OF THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS IN THE
EXERCISE OF ITS HOME RULE POWERS AND AUTHORITY:
SECTION 1: That the foregoing recitals are hereby found as fact and
incorporated herein by reference.
SECTION 2: That the City of Evanston hereby encourages the Illinois]
Congressional Delegation to assist the City of Evanston in preserving the tax-exempt
status of municipal bonds by supporting and ensuring the protection of the federal tax
exemption of municipal bonds.
SECTION 3: That copies of this Resolution shall be furnished to all
members of the Illinois Congressional Delegation.
SECTION 4. Resolution 39-R-25 shall be in full force and effect from and
after its passage and approval in the manner provided by law.
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39-R-25
_______________________________
Daniel Biss, Mayor
Attest:
______________________________
Stephanie Mendoza, City Clerk
Adopted: __________________, 2025
Approved as to form:
_______________________________
Alexandra B. Ruggie, Corporation Counsel
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