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Mount Clemens commission urges congressional protection of municipal bond tax exemption
Summary
The Mount Clemens City Commission adopted a resolution asking Michigan's congressional delegation to preserve the federal tax exemption for municipal bonds, which city staff said is critical for funding schools, hospitals, roads and utilities.
The Mount Clemens City Commission voted to adopt a resolution urging Michigan's congressional delegation to preserve the federal tax exemption for municipal bonds.
City Manager Mr. Shipman told the commission that "local governments of all sizes rely on tax exempt municipal bonds as a critical tool to finance infrastructure projects and essential public services," and that those bonds fund "everything from schools and hospitals to roads and utilities." He said the National League of Cities and the Government Finance Officers Association are running a "Built By Bonds" campaign to highlight the role of tax-exempt bonds and asked the commission to join other communities in urging federal protection for the exemption.
An unnamed commissioner moved to adopt the resolution as presented; the motion was supported and a roll call produced affirmative responses. The commission approved the resolution on the record.
Why it matters: Municipal bonds are a principal financing tool cities use for large capital projects that exceed annual budgets. Losing the federal tax exemption for those bonds would raise borrowing costs for local governments, city staff said.
What happens next: The resolution asks Mount Clemens' congressional delegation to work to protect the exemption; the resolution does not itself change local policy or commit local funds.
