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11021987 Special Meeting
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11021987 Special Meeting
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City Clerk
City Clerk - Document
Minutes
City Clerk - Type
Special Meeting
Date
11/2/1987
Volume Book
89
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<br />-4- <br /> <br />with <br /> <br />knowing <br /> <br />what is legally co~~ect, ~athe~ they p~efe~ to rleal with <br /> <br />this matte~ in the <br /> <br />political <br /> <br />a~ena. <br /> <br />Their <br /> <br />effo~ts <br /> <br />have <br /> <br />included <br /> <br />attempts <br /> <br />to secure Congressman Pickle's support fo~ thei~ position and <br /> <br />to arouse public opposition to the <br /> <br />Council's <br /> <br />action <br /> <br />among <br /> <br />the <br /> <br />San <br /> <br />Marcos <br /> <br />citizenry. <br /> <br />Their efforts have resulted in the introduction <br /> <br />of <br /> <br />legislation <br /> <br />by <br /> <br />Congressman <br /> <br />Rostenkowski, with <br /> <br />Congressman <br /> <br />Pickle's <br /> <br />knowledge, <br /> <br />that <br /> <br />would <br /> <br />forever deny any surplus CTHEA monies to the <br /> <br />citizens of San Marcos. <br /> <br />The actions of Congressman Rostenkowski and others are intended to <br /> <br />leave the Ci ty <br /> <br />Council with <br /> <br />one of two options: either CTHEA will be <br /> <br />allowed <br /> <br />to <br /> <br />continue <br /> <br />in <br /> <br />its <br /> <br />present form <br /> <br />virtually forever issuing <br /> <br />tax-exempt <br /> <br />bonds, <br /> <br />with <br /> <br />no <br /> <br />real benefit <br /> <br />to the <br /> <br />citizens of <br /> <br />San <br /> <br />Marcos, o~ CTHEA will be eliminated and <br /> <br />its surplus <br /> <br />funds will <br /> <br />be <br /> <br />turned <br /> <br />over <br /> <br />to <br /> <br />the <br /> <br />federa 1 <br /> <br />Treasury for the exclusive use of the <br /> <br />federal government. The Council believes that this is a <br />Hobson's choice because it yields nothing which will directly <br />benefit San Marcos taxpayers, the group whose interests are <br />primary to the Counci 1. In addition, it could result in the <br /> <br />further issuance of <br /> <br />tax-exempt <br /> <br />bonds by <br /> <br />CTH EA , <br /> <br />bonds which <br /> <br />compete <br /> <br />for <br /> <br />bond-buyers with bonds issued by the City. <br /> <br />After several months' work, the <br /> <br />CTHEA <br /> <br />Board, <br /> <br />through <br /> <br />its <br /> <br />bond <br /> <br />attorneys, <br /> <br />sent <br /> <br />a draft of a request for a legal ruling from the IRS <br /> <br />to the City for its review. <br /> <br />The draft of <br /> <br />the ruling <br /> <br />request <br /> <br />was <br /> <br />so <br /> <br />slanted, <br /> <br />biased and antagonistic <br /> <br />to the City Council's position, that <br /> <br />the <br /> <br />document <br /> <br />could <br /> <br />not be <br /> <br />used <br /> <br />for <br /> <br />its <br /> <br />intended <br /> <br />purpose if <br /> <br />the <br /> <br />City hoped to achieve <br /> <br />a favorable result with the IRS. <br /> <br />This blatantly <br /> <br />unfriendly <br /> <br />document <br /> <br />was <br /> <br />further <br /> <br />evidence that the CTHEA <br /> <br />Board, <br />
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