2003 Adopted Resolutions
71st Annual Meeting

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WHEREAS, under current law, municipalities and other state and local tax-exempt bond issuers are prohibited from advance refunding most bonds more than once; and

WHEREAS, under current law tax-exempt municipal bonds originally issued after 1985 may only be advance refunded once while bonds issued before 1986 may be advance refunded twice; and

WHEREAS, if a bond has been advance refunded once and interest rates fall to the point where a state or local government would benefit from an additional advance refunding, the issuer would be precluded from taking advantage of the lower rates; and

WHEREAS, state and local governments nation-wide have issued hundreds of billions of dollars in tax-exempt bonds to fund a wide variety of capital infrastructure projects such as public power systems, schools, roads and highways, bridges, water and sewer systems, airports and parks; and

WHEREAS, state and local access to capital at the lowest possible cost is critical during this period of fiscal crisis and vital to the nation's long-term economic growth; and

WHEREAS, legislation has been introduced in Congress, the Municipal Debt Refinancing Act (S.271), which would permit municipalities and other issuers of tax-exempt bonds an additional opportunity to advance refund outstanding tax-exempt bonds,

NOW, THEREFORE, BE IT RESOLVED that The United States Conference of Mayors urges Congress to enact the Municipal Debt Refinancing Act to allow state and local governments to advance refinance outstanding tax-exempt bonds one additional time.