Executive Committee approves resolution backing tax-exempt municipal bonds, forwards to full board

The Marathon County Executive Committee voted to forward a resolution to the full County Board supporting continued availability of tax-exempt municipal bonds, after staff summarized federal budget proposals that could eliminate the exemption and increase local borrowing costs.

Committee members were told the House budget guidelines under consideration in Washington include proposals that could end tax-exempt municipal bonds and raise federal revenue. A presenter told the committee that if the exemption were eliminated it could raise federal receipts but increase borrowing costs for municipalities — citing Marathon County’s roughly $80,000,000 renovation for North Central Health Care as an example of a project financed with tax-exempt bonds.

Why it matters: Local officials and the National Association of Counties (NACo) argue rescinding the exemption would shift borrowing costs to counties and municipalities and, ultimately, to taxpayers. The packet before the committee included a proposed resolution that mirrors NACo’s federal advocacy asking Congress to preserve the tax-exempt status for municipal debt.

Discussion and vote: Vice Chair Dickinson said he did not think a resolution was necessary, calling the threat recurring under previous administrations and ‘‘a procedural thing’’ unlikely to pass easily. Supervisor Robinson urged the committee to register a formal stance because of the direct impact on county financing and taxpayers, saying the resolution would signal the county’s interest to its federal delegation. Supervisor Fiffrick moved to approve the resolution; Supervisor Masc seconded the motion. The chair called for the ayes; members approved forwarding the resolution to the County Board. The motion carried but was not unanimous.

Next steps: The committee’s motion directs the resolution to the full County Board for consideration; NACo staff and committee members recommended follow-up outreach to the county’s federal delegation to quantify specific local impacts if the exemption is changed.

Ending: The Executive Committee’s action places the issue on the full board’s agenda; the resolution packet will accompany staff requests for more detailed cost estimates for projects now financed with municipal bonds.