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Orrville council backs preservation of federal tax exemption for municipal bonds
Summary
Council adopted Resolution 07‑25 supporting the federal tax exemption for municipal bonds, with Utilities Director Brediger saying tax-exempt financing has funded joint generation and infrastructure projects totaling "a little over $4 billion" and saves customers millions annually; council voted unanimously to suspend rules and adopt the resolution.
Orrville City Council on Feb. 17 adopted a resolution urging preservation of the federal tax exemption for municipal bonds.
Council member Squirrell introduced Resolution 07‑25, a proposal from the Ohio Municipal League that encourages municipalities to oppose eliminating tax-exempt municipal bonds. Utilities Director Brediger told council that Orrville and partner municipalities have used tax-exempt financing for jointly owned generation projects — including hydros, Prairie State, Fremont and solar projects — and that the mechanism has supported "a little over $4 billion" in projects collectively. "It saves our customers millions of dollars every year," Brediger said.
Council suspended the three-reading rule on a motion from Squirrell, seconded by Carr, and then adopted the resolution on a subsequent unanimous vote (Davies seconded the adoption). The mayor and council noted the measure is intended to protect a financing tool commonly used for local infrastructure.
The resolution is a formal expression of support; it does not itself change local taxing or borrowing authority. Council members did not propose amendments and took final action the same night.
