HomeMy WebLinkAboutResolution 17-25RECORD OF RESOLUTIONS
01 BARRETT BROTHERS - DAYTON, OHIO Form 63
17-25 Resolution No. Passed ;
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
WHEREAS, Dublin City Council 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 City Council of the City of Dublin,
State of Ohio, _“/ _ of the elected members concurring, that:
Section 1. This Council hereby encourages the Ohio Congressional Delegation to assist the City of Dublin by preserving the tax-exempt status of municipal bonds
by supporting and ensuring the protection of the federal tax exemption of
municipal bonds.
Section 2. Copies of this Resolution shall be furnished to all members of the Ohio
Congressional Delegation.
Section 3. This Resolution shall take effect and be in force upon passage in
accordance with Section 4.04(a) of the Revised Charter.
Passed this aw day of , 2025.
2 A.
Mayor — Presiding Officer
Cong Lead Cleyk of Coyfncil
To: Members of Dublin City Council
From: Megan O’Callaghan, City Manager
Date: February 25, 2025
Initiated By: Jaime L. Hoffman, Director of Finance Operations
Re: Resolution No. 17-25 — Declaring Support for the Preservation of the Federal
Tax Exemption of Municipal Bonds
Summary
The federal tax exemption status of municipal bonds is set to expire in 2025 under the Tax Cuts and
Jobs Act (TCJA), which would significantly impact municipalities. This resolution expresses the City’s
support by encouraging the Ohio Congressional Delegation to help preserve the federal tax
exemption status of municipal bonds.
Tax-exempt municipal bonds are an essential source of capital for local governments, enabling
economic development opportunities. Federal tax exemption for municipal bonds was incorporated
into the modern tax code in 1913 and is crucial for state and local governments to finance critical
infrastructure projects affordably. Tax-exempt bonds offer borrowers 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. Without these bonds, the cost of borrowing would be more expensive, thereby limiting
municipalities’ ability to finance infrastructure projects and leading to an increase in taxes and fees
that would place an undue burden on taxpayers.
Recommendation
Staff recommends approval of Resolution 17-25 at the March 3, 2025, City Council meeting.
Office of the City Manager
5555 Perimeter Drive • Dublin, OH 43017
Phone: 614.410.4400 Memo