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35:
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<br /> WHEREAS, by resolution adopted August 9, 1967, and amended by Amendment No. 1, dated August 13, 1968, the
<br /> ouncll of the City of Portsmouth approved a Redevelopment Plan for the Crawford Urban Renewal Project, de-
<br />signated as Project VA R~S$. '
<br />
<br /> IfltEREAS, in accordance with Section F of the ~aid Plan, it so provides that said Redevelopment Plan may be
<br />amended by the Portsmouth Redevelopment and Housing AuthOrity with the consent of the City Council; and
<br />
<br /> P~EREAS, the Portsmouth Redevelonment~mn~ ltonsinM A~.~A~i;t~ in undertaking the execution of Project No.
<br />VA R-S3 has found it necessary to mak~ minor changes to said Redevelopment P' ·
<br /> · lan. and
<br />
<br /> WHEREAS, the Portsmouth Redevelppmentand Housing Authority has approved the changes to the Redevelopment
<br />Plan by resolution which Plan dated February, 1969, together with said resolution has' been referred to City
<br />Council for review and approval and the City Council has duly considered said Redevelopment Plan;
<br />
<br /> NOW, THEREFORE, BE IT RESOLVED BY TH~ CITY COUNCIL OF THE gITY COUNCIL OF THE CITY OF PORTSMOUTH,
<br />VIRGINIA, as follows:
<br />
<br /> 1. That said Redevelopment Plan, as amended, dated February, 1969, for the Project aforementioned,
<br />having been duly reviewed and considered is hereby approved. ~
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<br /> 2. That the City Clerk be' and'is hereby directed to file said copy of said Redevelopment Plan with the
<br />minutes of this meeting."
<br />
<br /> 69-143 - "I submit the attached resolution and recommend its adoption. This opposes the removal of the
<br />tax-ex~mptstatus of municipal bonds. At the present time, there is a strong move by the Federal Government to
<br />place some type of tax restriction on all municipal bonds.
<br />
<br /> From an economic standpoint, the taxation of muncipal bonds could have serious effects on the cost of local
<br />~overnment. Taxation of bond interest would substantially raise, perhaps as much as two or three percentage
<br />points, tho cost of municipal borrowing. Cities would have to incre~s~es already strained tax rates on the re-
<br />gressive property tax to meet the additional cost, and the diversion of scarce local funds to finance capital
<br />needs would result in a severe shortage of funds to finance Other essential local services.
<br />
<br /> The National League of Cities is urging all City Officials to strongly express their views on the taxation
<br />of municipal 'bonds to their Congressmen, and I reco~anend that this resolution be forwarded to the Senators and
<br />Congressmenfrom Virginia."
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<br />On motion of Mr. Turner, the following resolution was adopted, without dissenting vote:
<br />"RESOLUTION OPPOSING THE TAXATION OF 5fdNICIPAL BONDS,
<br />
<br /> WHEREAS, Congress is being urged to i~pose federal income taxes on the interest paid on municipal bonds;
<br />and
<br />
<br /> WHEREAS, the iraposition of such a tax could have dire consequences on the financial affairs of a
<br />municipality; and
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<br /> WHEREAS, it is important that Congress be fully informed in this matter before taking action that would
<br />adversely affect local government throughout the nation.
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<br /> NOW, THEREFORE, BE IT ']~SOLYED by the Council of theCity of Portsmouth that it hereby most strongly urges
<br />the Congress of the United States of ~erica not to enact any law imposing federal income taxes on municipal
<br />bonds for the following reasons:
<br />
<br />Such an act would be of doubtful consit~tionality, mud this would virtually create a
<br />moratorium on borrowing by municipalities pending the final outcome of the necessary
<br />litigation to resolve this question.
<br />
<br />2. Some investors would be compelled to unload large holdings of municipal bonds, thereby
<br /> flooding the bond market and adve~ely affecting the interest rates on manicipal bonds.
<br />
<br />3. Subjecting municipal bonds to taxation would olace such bonds in direct comnetition with
<br /> private corporate issues for t~e limited amount of funds available for investment.
<br />
<br />If the income from m~micipal bonds is subject to taxation, they would have to bear higher
<br />interest rates in order to give the investor the same y~eld he would receive from them
<br />under their present tax exempt status. This would force municipalities to either raise
<br />taxes to pay the higher interest rates or to defer needed local improvement~ and projects.
<br />
<br /> BE IT FURTHER RESOLVED that the City Clerk is hereby directed to forward a copy of this resolution
<br />to each member of ~ongress from Virginia, to each member of the House Ways and Means Committee, and to each
<br />member of the Senate Finance Committee."
<br />
<br /> 69-144 - "Bids were opened on April 22, 1969, for the sale of surplus City-owned property located at the
<br />intersection of Sixth and Washington Streets. One bid was received from Mrs. Betty Thompson in the amount of
<br />$2,050. I recommend that the property be sold to Mrs. Thompson."
<br />
<br /> Motion of Mr. Eastes to concur in the recommendation oftheCity Manager was adopted, without dissenting
<br />vote.
<br />
<br /> 69-145 - "I recommend that taxes be relieved on five parcels of property located on Henry Street. The
<br />taxes amount to $2,179.65 and the property has been donated to the City fdr the amount of the delinquent taxes."
<br />
<br /> Motion of ~{r. Johnson to concur in the recommendation of the City 'Manager was adopted, without dissenting
<br />vote.
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