HomeMy WebLinkAboutR-2025-068 Declaring Support for the Preservation of the Federal Tax Exemption of Municipal Bonds
RESOLUTION R-2025-068
RESOLUTION OF THE BOARD OF ALDERMEN OF THE CITY OF RIVERSIDE,
MISSOURI 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, the Board of Aldermen of the City of Riverside, Missouri, 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 BOARD OF ALDERMEN OF
THE CITY OF RIVERSIDE,MISSOURI,AS FOLLOWS:
THAT the Board of Aldermen hereby encourages the Missouri Congressional Delegation
to assist the City of Riverside, Missouri by preserving the tax-exempt status of municipal bonds
by supporting and ensuring the protection of the federal tax exemption of municipal bonds; and
FURTHER THAT that copies of this Resolution shall be furnished to all members of the
Missouri Congressional Delegation.
RESOLUTION R-2025-068
PASSED AND ADOPTED by the Board of Aldermen of the City of Riverside, Missouri, the 6th
day of May 2025.
Kathleen L. Rose, Mayor
ATTEST:
Robin Kincaid, City Clerk