Item 10 - Citizen Request for Resolution in Support of Sovereignty Organization Tax Movement
- -
(( AGENDA REPORT
CITY OF POW A Y
TO: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Man~
INITIATED BY: Peggy Stewart. Director of Administra~ve Services
Peter Moote, Senior Management Analys. f'/
DATE: July 16, 1991
SUBJECT: Citizen Request for Resolution in Support of the
Sovereignty Organization Tax Movement
ABSTRACT
During public oral communication at the June 18, 1991 City Council meeting,
Alan Herridge of San Diego addressed the Council on behalf of the Sovereignty
Organization and Tax Movement. It is recommended that the City Council receive
and file this report and direct staff to monitor the Sovereignty proposal if
addressed by the League of California Cities.
BACKGROUND
The Sovereignty organization's purpose is to generate support for a petition
requesting that Congress enact legislation under which the U.S. Treasury would
have authority to issue no-interest loans to tax-supported entities for voter-
approved capital projects. The goal of this legislation is to reduce interest
payments made by local, state, and federal agencies in the hope of reducing
income and property tax requirements. Funds for the no-interest loans would be
made available by creating new money in the amount of the loans and removing the
money from circulation as the loans are repaid.
FINDINGS
While municipalities would benefit from no-interest loans for capital projects,
potential negative economic impacts include increased inflation and reduced
investment opportunities in government securities. Currently, staff relies on
the League of California Cities for assistance with analysis of proposed
legislation.
A
~
ACTION:
l ~
1 of 2 llEM 10
.IlIL 16 1991
Agenda Report
July 16. 1991
Page 2
RECOMMENDATION
It is recommended that the City Council direct staff to monitor the Sovereignty
organization's proposal through the League of California Cities.
JLB:PS:PM:eg
6-5/A/CITIZENl-2
2 uf 2 JUL 1 G 1991 iTEM 10