Resolution Number 06-09-19-01RESOLUTION NO. 06-09-19-01
' RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN JUAN CAPISTRANO, CALIFORNIA, ADOPTING A
POLICY OF NEUTRALITY REGARDING THE APPROVAL
OF TAX-EXEMPT PRIVATE ACTIVITY BONDS
PURSUANT TO SECTION 147(f) OF THE INTERNAL
REVENUE CODE
WHEREAS, the City of San Juan Capistrano (the "City") is a municipal
corporation, organized and existing under the laws of the State of California; an
WHEREAS, the City has been asked on more than one occasion in the to
provide the approval of a local "host' government agency for the issuance of to -exempt
bonds for the benefit of various private entities, to satisfy the public approval
requirement of Section 147(f) of the Internal Revenue Code of 1986, as amended (the
"Code"), in order to qualify the interest on tax-exempt revenue bonds (the "B nds") for
me
exclusion from the gross income of the owners thereof for federal incotax urposes
pursuant to the applicable provisions of the Code; and
WHEREAS, the City considers education, affordable housing, economic
development, local employment opportunities, economic vitality of local businesses, as
well as schools, hospitals, and recreational and other facilities for which federally tax-
exempt bond financing is available to be beneficial to the community and the City
wishes to promote the availability of federally tax-exempt financing for such beneficial
uses; and
WHEREAS, the City believes approval pursuant to Section 147 f) of the
Code should be available, where appropriate, to all institutions for which fed rally tax
exempt bond financing is available on an equal, non-discriminatory basis and such
consideration should be available on a neutral and equal basis to all organizatons and
institutions; and
WHEREAS, the City wishes to adopt a policy of neutrality regard ng such
approvals, stating that the City will consider providing approvals under Section 47(f) of
the Code for all institutions and organizations on an equal basis, and that the City shall
base its decision whether to approve federally tax-exempt financing on an eval ation of
the public benefit that will be provided to the community by the project and the oposed
federally tax-exempt financing of such project.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
San Juan Capistrano as follows:
1. The City hereby adopts a policy of neutrality regarding requests for
' approval of federally tax-exempt financing under Section 147(f) of the Code.
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2. When the City is requested to provide an approval of federally tax-
exempt financing under Section 147(f) of the Code, it shall hereby be the City's policy to
consider such request on a non-discriminatory basis, and to provide such consideration
on a neutral and equal basis to all organizations and institutions.
3. The entity requesting the consideration to provide an approval of
federally tax-exempt financing under Section 147(f) of the Code, shall be required to
reimburse the City for all costs associated with the request, including staff time.
4. That this Resolution shall take effect upon adoption.
PASSED, APPROVED AND ADOPTED, this 19th day of September 2006,
by the following vote:
i
DAVID SW RDLIN, MAYOR
ATTEST:
R. MONAHAN, CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF SAN JUAN CAPISTRANO )
I, MARGARET R. MONAHAN, appointed City Clerk of the City of San Juan Capistrano, do hereby certify
that the foregoing Resolution No. 06-09-19-01 was duly adopted by the City Council of the City of San Juan
Capistrano at a Regular meeting thereof, held the 19'" day of September 2006, by the following vote:
AYES:
COUNCIL MEMBERS:
Bathgate, Soto, Mayor Swerdlin
NOES:
COUNCIL MEMBER:
None
ABSENT:
COUNCIL MEMBER:
Hart, Allevato
R. MONAHAN, Glty GIerK
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