HomeMy Public PortalAbout002-1999COMMON COUNCIL
CITY OF RICHMOND, INDIANA
RESOLUTION NO. 2 -1999
A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF
RICHMOND, INDIANA SUPPORTING THE BIPARTISAN BOND FAIRNESS
AND PROTECTION ACT OF 1999
WHEREAS, every state, county, city or town in America should have the right to
decide whether it wants to provide electric service to its businesses and
residents; and
WHEREAS, the consumers of municipal utilities should have a direct say in and
maintain local control over their own electric utility operations and
policies; and
WHEREAS, Richmond established a community owned electric utility in 1902 and its
citizens have benefited from this action for decades; and
WHEREAS, a municipal owned utility, as a unit of state or local government, has the
right to issue tax -free municipal bonds for local infrastructure needs,
including electric service; and
WHEREAS, there currently exist federal restrictions on municipal bonds used to
develop community -owned electric utilities that prevent these utilities
from selling power under many circumstances, and these restrictions will
make it difficult, if not impossible, for many of these utilities to operate in
the more competitive environment being fostered or mandated by new
federal and state laws; and
WHEREAS, certain bipartisan legislation, namely the Bond Fairness and Protection
Act, has been introduced in the Senate (S. 386) by Senators Slade Gorton
(R -WA) and Bob Kerrey (D -NE), and in the House of Representatives
(H.R. 72 1) by Representative Hayworth (R -AZ) and Matsui (D -CA) to
reconcile these restrictions with the changing character of the electric
utility industry in a way that protects the right of local control over a
municipal's own affairs; and
WHEREAS, some private power companies oppose this legislation because it is in their
self interest to limit the ability of community -owned utilities to operate in
this new environment; and
WHEREAS, opponents of S. 386 and H.R. 721 are urging Congress to impose a federal
income tax on certain revenues from sales by municipal owned electric
utilities; and
WHEREAS, municipal owned utilities, including Richmond Power and Light, operate
on a not - for - profit basis, and are not and should not be taxed by the federal
government.
NOW, THEREFORE, BE IT RESOLVED: that the Common Council of the City
of Richmond, Indiana calls on Senators Bayh and Lugar and Representative McIntosh,
and all others to support the bipartisan Bond Fairness and Protection Act of 1999, and to
vigorously oppose any new federal tax Qn municipal owned electric utilities.
Passed and adopted this ! _►�= day o 1999, by the Common Council of
the City of Richmond, Indiana.
h eneva Allen, Vice President
E-m'A. ww"
Sarah L. Hutton Etta Lundy
Parker_ Bruce Wissel
ATTE City Clerk
(Norma chroeder)
LL
'jPRE E NTED to the Mayor of the City of Richmond, Indiana, this � day of
1999, at 9:00 a.m.
,City Clerk
(Nor a Schroeder)
Robert Dickman
APPROVED y e, Dennis Andrews, Mayor of the City of Richm d, ana, this
day of , 1999, at 9:05 aur'
Mayor
City Clerk