CC - 1986-23 - Supporting Prop 46RESOLUTION NO. 86-23
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A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ROSEMEAD SUPPORTING PROPOSITION n46:
RESTORATION OF GENERAL OBLIGATION BOND AUTHORITY TO THE VOTERS
WHEREAS, General obligation bonds are the least expensive form of
borrowing available to local government agencies; and
WHEREAS, taxpayers can generally expect to save as much as 16.5
to 19 percent on the cost of raising capital when general obligation
bonds, rather than revenue bonds, are issued; and
WHEREAS, the Constitution of the State of California currently
prohibits the voters from approving the use of General obligation
bonds based on the property tax; and
WHEREAS, no matter how much the voters of a community want to
build new schools or parks or other public construction projects,
they are prohibited by the State Constitution from approving an
increase in their own property taxes to finance such construction;
and
WHEREAS, the voters should have the right to determine for
themselves whether a public construction project is worth paying for;
and
WHEREAS, the people should have the right to use the least
expensive form of financing available; and
WHEREAS, Proposition 46 would restore to the voters the right to
use General Obligation bonds; and
WHEREAS, Proposition 46 would permit the use of General
Obligation bonds only for the purchase and improvement of real
property, not for any other purpose; and
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NOW, THEREFORE, the City Council of the 'City of Rosemead
resolves as follows:
WHEREAS, Proposition 46 would require a two-thirds vote of
the people voting in a.subsequent election to approve any increase in
their local property taxes.
SECTION 1. The City Council of the City of Rosemead hereby
does support Proposition #46, which will put the people in charge of
determining any future increases in their local property taxes and
restore to them the opportunity to use the least expensive form of
financing available.
SECTION 2. The City Clerk shall certify to the adoption of
this Resolution and send a copy of this Resolution to the League of
California Cities, the California Contract Cities Association,
Senator Montoya and Assemblywoman Tanner.
APPROVED AND ADOPTED this 27 day of May, 1986.
MAYOR
ATTEST:
City Clerk