2012-13 OFFICERS AND
BOARD OF DIRECTORS
PRESIDENT
February 6, 2013
STEVE DIELS
REDONDO BEACH
VICE PRESIDENT
The Honorable Karen Bass
U.S. House of Representatives, 37th District
408 Cannon House Office Building
Washington, D.C. 20515
LING LING CHANG
Via FAX: 202-225-2422
DIAMOND BAR
SECRETARY
STEVEN LY
ROSEMEAD
TREASURER
JOSUÉ BARRIOS
RE: Maintaining the Tax-Exempt Status of Municipal Bonds
CUDAHY
STATE LEAGUE DIRECTOR
OWEN NEWCOMER
WHITTIER
The Honorable Karen Bass,
REGIONAL DIRECTORS
On behalf of the Board of Directors for the League of California Cities’ Los Angeles County
Division, representing 86 cities in the county, I to urge you to maintain the tax exemption on
municipal bonds and oppose efforts to place a cap on the interest of bonds issued by state
and local governments. Moving forward with these proposals would have profoundly
negative impacts on local infrastructure development in our city and state.
ARROYO VERDUGO CITIES
LAURA FRIEDMAN
GLENDALE
CITY OF LOS ANGELES
JOHN WICKHAM
LOS ANGELES
State and local government bonds have been issued since the mid-1800s, and the federal tax
exemption was included in the country’s income tax code since its promulgation in 1913.
Through the tax-exemption, the federal government continues to provide critical support for
the development and maintenance of essential facilities and services, which it cannot
practically replicate by other means. Three-quarters of the total U.S. investment in
infrastructure is accomplished with tax-exempt bonds, which are issued by over 50,000 state
and local governments and authorities representing a three trillion dollar industry.
Tax-exempt bonds are a critical, core resource of public finance, and are used to help build
roads, bridges, sewers, dams, schools, hospitals, and affordable housing across the country.
Nearly four million miles of roadways, 500,000 bridges, 1,000 mass transit systems, 16,000
airports, 25,000 miles of intercoastal waterways, 70,000 dams, 900,000 miles of pipe in water
systems and 15,000 waste water treatment plants have been financed through tax-exempt
municipal bonds. Municipal bonds are also a safe and reliable investment option. Over 60
percent of tax-exempt bonds are held by individuals either directly or through mutual funds,
with 50 percent of all tax-exempts owned by individuals with an adjusted gross income of
under $200,000 annually. All grades of governmental tax-exempt bonds have proven to be
safer investments than AAA corporate bonds.
Without the tax-exemption, state and local governments would pay more to raise capital.
This cost would ultimately be borne by our taxpayers, through reduced infrastructure
spending, decreased economic development, higher taxes or higher user fees. Proposals to
reduce the tax benefit for municipal bond investors from 35 percent to 28 percent would also
be similarly harmful to California cities. While we agree that reforms are necessary to reduce
1
GATEWAY CITIES COG
LARRY FORESTER
SIGNAL HILL
LAS VIRGENES-MALIBU COG
MARK RUTHERFORD
WESTLAKE VILLAGE
SAN GABRIEL VALLEY COG
SAM PEDROZA
CLAREMONT
SAN FERNANDO VALLEY COG
JESS TALAMANTES
BURBANK
SOUTH BAY CITIES COG
JIM GOODHART
PALOS VERDES ESTATES
WESTSIDE CITIES COG
MICHEÁL O’LEARY
CULVER CITY
EXECUTIVE DIRECTOR
ROBB KORINKE
the federal deficit, eliminating the tax exemption on municipal bonds or reducing the tax
benefit for investors in municipal securities will not achieve sufficient reductions, and will
instead only further stagnate national economic growth.
Thank you for your attention to our concerns on this important economic development issue.
Please contact Kristine Guerrero, Los Angeles County Division Legislative Director, at
(626)716-0076 if you have any questions or need any additional information.
Sincerely,
Steve Diels
President, Los Angeles Division, League of California Cities
Council Member, City of Redondo Beach
cc:
Los Angeles County Congressional Delegation
Jennifer Whiting, League of California Cities, Fax: (916) 658-8240
2012-13 OFFICERS AND
BOARD OF DIRECTORS
PRESIDENT
February 6, 2013
STEVE DIELS
REDONDO BEACH
VICE PRESIDENT
The Honorable Xavier Becerra
U.S. House of Representatives, 34th District
1226 Longworth House Office Building
Washington, D.C., 20515
LING LING CHANG
Via FAX: 202-225-2202
DIAMOND BAR
SECRETARY
STEVEN LY
ROSEMEAD
TREASURER
JOSUÉ BARRIOS
RE: Maintaining the Tax-Exempt Status of Municipal Bonds
CUDAHY
STATE LEAGUE DIRECTOR
OWEN NEWCOMER
WHITTIER
The Honorable Xavier Becerra,
REGIONAL DIRECTORS
On behalf of the Board of Directors for the League of California Cities’ Los Angeles County
Division, representing 86 cities in the county, I to urge you to maintain the tax exemption on
municipal bonds and oppose efforts to place a cap on the interest of bonds issued by state
and local governments. Moving forward with these proposals would have profoundly
negative impacts on local infrastructure development in our city and state.
ARROYO VERDUGO CITIES
LAURA FRIEDMAN
GLENDALE
CITY OF LOS ANGELES
JOHN WICKHAM
LOS ANGELES
State and local government bonds have been issued since the mid-1800s, and the federal tax
exemption was included in the country’s income tax code since its promulgation in 1913.
Through the tax-exemption, the federal government continues to provide critical support for
the development and maintenance of essential facilities and services, which it cannot
practically replicate by other means. Three-quarters of the total U.S. investment in
infrastructure is accomplished with tax-exempt bonds, which are issued by over 50,000 state
and local governments and authorities representing a three trillion dollar industry.
Tax-exempt bonds are a critical, core resource of public finance, and are used to help build
roads, bridges, sewers, dams, schools, hospitals, and affordable housing across the country.
Nearly four million miles of roadways, 500,000 bridges, 1,000 mass transit systems, 16,000
airports, 25,000 miles of intercoastal waterways, 70,000 dams, 900,000 miles of pipe in water
systems and 15,000 waste water treatment plants have been financed through tax-exempt
municipal bonds. Municipal bonds are also a safe and reliable investment option. Over 60
percent of tax-exempt bonds are held by individuals either directly or through mutual funds,
with 50 percent of all tax-exempts owned by individuals with an adjusted gross income of
under $200,000 annually. All grades of governmental tax-exempt bonds have proven to be
safer investments than AAA corporate bonds.
Without the tax-exemption, state and local governments would pay more to raise capital.
This cost would ultimately be borne by our taxpayers, through reduced infrastructure
spending, decreased economic development, higher taxes or higher user fees. Proposals to
reduce the tax benefit for municipal bond investors from 35 percent to 28 percent would also
be similarly harmful to California cities. While we agree that reforms are necessary to reduce
1
GATEWAY CITIES COG
LARRY FORESTER
SIGNAL HILL
LAS VIRGENES-MALIBU COG
MARK RUTHERFORD
WESTLAKE VILLAGE
SAN GABRIEL VALLEY COG
SAM PEDROZA
CLAREMONT
SAN FERNANDO VALLEY COG
JESS TALAMANTES
BURBANK
SOUTH BAY CITIES COG
JIM GOODHART
PALOS VERDES ESTATES
WESTSIDE CITIES COG
MICHEÁL O’LEARY
CULVER CITY
EXECUTIVE DIRECTOR
ROBB KORINKE
the federal deficit, eliminating the tax exemption on municipal bonds or reducing the tax
benefit for investors in municipal securities will not achieve sufficient reductions, and will
instead only further stagnate national economic growth.
Thank you for your attention to our concerns on this important economic development issue.
Please contact Kristine Guerrero, Los Angeles County Division Legislative Director, at
(626)716-0076 if you have any questions or need any additional information.
Sincerely,
Steve Diels
President, Los Angeles Division, League of California Cities
Council Member, City of Redondo Beach
cc:
Los Angeles County Congressional Delegation
Jennifer Whiting, League of California Cities, Fax: (916) 658-8240
2012-13 OFFICERS AND
BOARD OF DIRECTORS
PRESIDENT
February 6, 2013
STEVE DIELS
REDONDO BEACH
VICE PRESIDENT
The Honorable Julia Brownley
U.S. House of Representatives, 26th District
1019 Longworth House Office Building
Washington, D.C., 20510
LING LING CHANG
Via FAX: 202-225-1100
DIAMOND BAR
SECRETARY
STEVEN LY
ROSEMEAD
TREASURER
JOSUÉ BARRIOS
RE: Maintaining the Tax-Exempt Status of Municipal Bonds
CUDAHY
STATE LEAGUE DIRECTOR
OWEN NEWCOMER
WHITTIER
The Honorable Julia Brownley,
REGIONAL DIRECTORS
On behalf of the Board of Directors for the League of California Cities’ Los Angeles County
Division, representing 86 cities in the county, I to urge you to maintain the tax exemption on
municipal bonds and oppose efforts to place a cap on the interest of bonds issued by state
and local governments. Moving forward with these proposals would have profoundly
negative impacts on local infrastructure development in our city and state.
ARROYO VERDUGO CITIES
LAURA FRIEDMAN
GLENDALE
CITY OF LOS ANGELES
JOHN WICKHAM
LOS ANGELES
State and local government bonds have been issued since the mid-1800s, and the federal tax
exemption was included in the country’s income tax code since its promulgation in 1913.
Through the tax-exemption, the federal government continues to provide critical support for
the development and maintenance of essential facilities and services, which it cannot
practically replicate by other means. Three-quarters of the total U.S. investment in
infrastructure is accomplished with tax-exempt bonds, which are issued by over 50,000 state
and local governments and authorities representing a three trillion dollar industry.
Tax-exempt bonds are a critical, core resource of public finance, and are used to help build
roads, bridges, sewers, dams, schools, hospitals, and affordable housing across the country.
Nearly four million miles of roadways, 500,000 bridges, 1,000 mass transit systems, 16,000
airports, 25,000 miles of intercoastal waterways, 70,000 dams, 900,000 miles of pipe in water
systems and 15,000 waste water treatment plants have been financed through tax-exempt
municipal bonds. Municipal bonds are also a safe and reliable investment option. Over 60
percent of tax-exempt bonds are held by individuals either directly or through mutual funds,
with 50 percent of all tax-exempts owned by individuals with an adjusted gross income of
under $200,000 annually. All grades of governmental tax-exempt bonds have proven to be
safer investments than AAA corporate bonds.
Without the tax-exemption, state and local governments would pay more to raise capital.
This cost would ultimately be borne by our taxpayers, through reduced infrastructure
spending, decreased economic development, higher taxes or higher user fees. Proposals to
reduce the tax benefit for municipal bond investors from 35 percent to 28 percent would also
be similarly harmful to California cities. While we agree that reforms are necessary to reduce
1
GATEWAY CITIES COG
LARRY FORESTER
SIGNAL HILL
LAS VIRGENES-MALIBU COG
MARK RUTHERFORD
WESTLAKE VILLAGE
SAN GABRIEL VALLEY COG
SAM PEDROZA
CLAREMONT
SAN FERNANDO VALLEY COG
JESS TALAMANTES
BURBANK
SOUTH BAY CITIES COG
JIM GOODHART
PALOS VERDES ESTATES
WESTSIDE CITIES COG
MICHEÁL O’LEARY
CULVER CITY
EXECUTIVE DIRECTOR
ROBB KORINKE
the federal deficit, eliminating the tax exemption on municipal bonds or reducing the tax
benefit for investors in municipal securities will not achieve sufficient reductions, and will
instead only further stagnate national economic growth.
Thank you for your attention to our concerns on this important economic development issue.
Please contact Kristine Guerrero, Los Angeles County Division Legislative Director, at
(626)716-0076 if you have any questions or need any additional information.
Sincerely,
Steve Diels
President, Los Angeles Division, League of California Cities
Council Member, City of Redondo Beach
cc:
Los Angeles County Congressional Delegation
Jennifer Whiting, League of California Cities, Fax: (916) 658-8240
2012-13 OFFICERS AND
BOARD OF DIRECTORS
PRESIDENT
February 6, 2013
STEVE DIELS
REDONDO BEACH
VICE PRESIDENT
The Honorable Tony Cardenas
U.S. House of Representatives, 29th District
1508 Longworth House Office Building
Washington, D.C., 20515
LING LING CHANG
Via FAX: 202-225-0819
DIAMOND BAR
SECRETARY
STEVEN LY
ROSEMEAD
TREASURER
JOSUÉ BARRIOS
RE: Maintaining the Tax-Exempt Status of Municipal Bonds
CUDAHY
STATE LEAGUE DIRECTOR
OWEN NEWCOMER
WHITTIER
The Honorable Tony Cardenas,
REGIONAL DIRECTORS
On behalf of the Board of Directors for the League of California Cities’ Los Angeles County
Division, representing 86 cities in the county, I to urge you to maintain the tax exemption on
municipal bonds and oppose efforts to place a cap on the interest of bonds issued by state
and local governments. Moving forward with these proposals would have profoundly
negative impacts on local infrastructure development in our city and state.
ARROYO VERDUGO CITIES
LAURA FRIEDMAN
GLENDALE
CITY OF LOS ANGELES
JOHN WICKHAM
LOS ANGELES
State and local government bonds have been issued since the mid-1800s, and the federal tax
exemption was included in the country’s income tax code since its promulgation in 1913.
Through the tax-exemption, the federal government continues to provide critical support for
the development and maintenance of essential facilities and services, which it cannot
practically replicate by other means. Three-quarters of the total U.S. investment in
infrastructure is accomplished with tax-exempt bonds, which are issued by over 50,000 state
and local governments and authorities representing a three trillion dollar industry.
Tax-exempt bonds are a critical, core resource of public finance, and are used to help build
roads, bridges, sewers, dams, schools, hospitals, and affordable housing across the country.
Nearly four million miles of roadways, 500,000 bridges, 1,000 mass transit systems, 16,000
airports, 25,000 miles of intercoastal waterways, 70,000 dams, 900,000 miles of pipe in water
systems and 15,000 waste water treatment plants have been financed through tax-exempt
municipal bonds. Municipal bonds are also a safe and reliable investment option. Over 60
percent of tax-exempt bonds are held by individuals either directly or through mutual funds,
with 50 percent of all tax-exempts owned by individuals with an adjusted gross income of
under $200,000 annually. All grades of governmental tax-exempt bonds have proven to be
safer investments than AAA corporate bonds.
Without the tax-exemption, state and local governments would pay more to raise capital.
This cost would ultimately be borne by our taxpayers, through reduced infrastructure
spending, decreased economic development, higher taxes or higher user fees. Proposals to
reduce the tax benefit for municipal bond investors from 35 percent to 28 percent would also
be similarly harmful to California cities. While we agree that reforms are necessary to reduce
1
GATEWAY CITIES COG
LARRY FORESTER
SIGNAL HILL
LAS VIRGENES-MALIBU COG
MARK RUTHERFORD
WESTLAKE VILLAGE
SAN GABRIEL VALLEY COG
SAM PEDROZA
CLAREMONT
SAN FERNANDO VALLEY COG
JESS TALAMANTES
BURBANK
SOUTH BAY CITIES COG
JIM GOODHART
PALOS VERDES ESTATES
WESTSIDE CITIES COG
MICHEÁL O’LEARY
CULVER CITY
EXECUTIVE DIRECTOR
ROBB KORINKE
the federal deficit, eliminating the tax exemption on municipal bonds or reducing the tax
benefit for investors in municipal securities will not achieve sufficient reductions, and will
instead only further stagnate national economic growth.
Thank you for your attention to our concerns on this important economic development issue.
Please contact Kristine Guerrero, Los Angeles County Division Legislative Director, at
(626)716-0076 if you have any questions or need any additional information.
Sincerely,
Steve Diels
President, Los Angeles Division, League of California Cities
Council Member, City of Redondo Beach
cc:
Los Angeles County Congressional Delegation
Jennifer Whiting, League of California Cities, Fax: (916) 658-8240
2012-13 OFFICERS AND
BOARD OF DIRECTORS
PRESIDENT
February 6, 2013
STEVE DIELS
REDONDO BEACH
VICE PRESIDENT
The Honorable Judy Chu
U.S. House of Representatives, 27th District
1520 Longworth House Office Building
Washington, D.C., 20515
LING LING CHANG
Via FAX: 202-225-4567
DIAMOND BAR
SECRETARY
STEVEN LY
ROSEMEAD
TREASURER
JOSUÉ BARRIOS
RE: Maintaining the Tax-Exempt Status of Municipal Bonds
CUDAHY
STATE LEAGUE DIRECTOR
OWEN NEWCOMER
WHITTIER
The Honorable Judy Chu,
REGIONAL DIRECTORS
On behalf of the Board of Directors for the League of California Cities’ Los Angeles County
Division, representing 86 cities in the county, I to urge you to maintain the tax exemption on
municipal bonds and oppose efforts to place a cap on the interest of bonds issued by state
and local governments. Moving forward with these proposals would have profoundly
negative impacts on local infrastructure development in our city and state.
ARROYO VERDUGO CITIES
LAURA FRIEDMAN
GLENDALE
CITY OF LOS ANGELES
JOHN WICKHAM
LOS ANGELES
State and local government bonds have been issued since the mid-1800s, and the federal tax
exemption was included in the country’s income tax code since its promulgation in 1913.
Through the tax-exemption, the federal government continues to provide critical support for
the development and maintenance of essential facilities and services, which it cannot
practically replicate by other means. Three-quarters of the total U.S. investment in
infrastructure is accomplished with tax-exempt bonds, which are issued by over 50,000 state
and local governments and authorities representing a three trillion dollar industry.
Tax-exempt bonds are a critical, core resource of public finance, and are used to help build
roads, bridges, sewers, dams, schools, hospitals, and affordable housing across the country.
Nearly four million miles of roadways, 500,000 bridges, 1,000 mass transit systems, 16,000
airports, 25,000 miles of intercoastal waterways, 70,000 dams, 900,000 miles of pipe in water
systems and 15,000 waste water treatment plants have been financed through tax-exempt
municipal bonds. Municipal bonds are also a safe and reliable investment option. Over 60
percent of tax-exempt bonds are held by individuals either directly or through mutual funds,
with 50 percent of all tax-exempts owned by individuals with an adjusted gross income of
under $200,000 annually. All grades of governmental tax-exempt bonds have proven to be
safer investments than AAA corporate bonds.
Without the tax-exemption, state and local governments would pay more to raise capital.
This cost would ultimately be borne by our taxpayers, through reduced infrastructure
spending, decreased economic development, higher taxes or higher user fees. Proposals to
reduce the tax benefit for municipal bond investors from 35 percent to 28 percent would also
be similarly harmful to California cities. While we agree that reforms are necessary to reduce
1
GATEWAY CITIES COG
LARRY FORESTER
SIGNAL HILL
LAS VIRGENES-MALIBU COG
MARK RUTHERFORD
WESTLAKE VILLAGE
SAN GABRIEL VALLEY COG
SAM PEDROZA
CLAREMONT
SAN FERNANDO VALLEY COG
JESS TALAMANTES
BURBANK
SOUTH BAY CITIES COG
JIM GOODHART
PALOS VERDES ESTATES
WESTSIDE CITIES COG
MICHEÁL O’LEARY
CULVER CITY
EXECUTIVE DIRECTOR
ROBB KORINKE
the federal deficit, eliminating the tax exemption on municipal bonds or reducing the tax
benefit for investors in municipal securities will not achieve sufficient reductions, and will
instead only further stagnate national economic growth.
Thank you for your attention to our concerns on this important economic development issue.
Please contact Kristine Guerrero, Los Angeles County Division Legislative Director, at
(626)716-0076 if you have any questions or need any additional information.
Sincerely,
Steve Diels
President, Los Angeles Division, League of California Cities
Council Member, City of Redondo Beach
cc:
Los Angeles County Congressional Delegation
Jennifer Whiting, League of California Cities, Fax: (916) 658-8240
2012-13 OFFICERS AND
BOARD OF DIRECTORS
PRESIDENT
February 6, 2013
STEVE DIELS
REDONDO BEACH
VICE PRESIDENT
The Honorable Janice Hahn
U.S. House of Representatives, 44th District
404 Cannon House Office Building
Washington, D.C., 20515
LING LING CHANG
Via FAX: 202-226-7290
DIAMOND BAR
SECRETARY
STEVEN LY
ROSEMEAD
TREASURER
JOSUÉ BARRIOS
RE: Maintaining the Tax-Exempt Status of Municipal Bonds
CUDAHY
STATE LEAGUE DIRECTOR
OWEN NEWCOMER
WHITTIER
The Honorable Janice Hahn,
REGIONAL DIRECTORS
On behalf of the Board of Directors for the League of California Cities’ Los Angeles County
Division, representing 86 cities in the county, I to urge you to maintain the tax exemption on
municipal bonds and oppose efforts to place a cap on the interest of bonds issued by state
and local governments. Moving forward with these proposals would have profoundly
negative impacts on local infrastructure development in our city and state.
ARROYO VERDUGO CITIES
LAURA FRIEDMAN
GLENDALE
CITY OF LOS ANGELES
JOHN WICKHAM
LOS ANGELES
State and local government bonds have been issued since the mid-1800s, and the federal tax
exemption was included in the country’s income tax code since its promulgation in 1913.
Through the tax-exemption, the federal government continues to provide critical support for
the development and maintenance of essential facilities and services, which it cannot
practically replicate by other means. Three-quarters of the total U.S. investment in
infrastructure is accomplished with tax-exempt bonds, which are issued by over 50,000 state
and local governments and authorities representing a three trillion dollar industry.
Tax-exempt bonds are a critical, core resource of public finance, and are used to help build
roads, bridges, sewers, dams, schools, hospitals, and affordable housing across the country.
Nearly four million miles of roadways, 500,000 bridges, 1,000 mass transit systems, 16,000
airports, 25,000 miles of intercoastal waterways, 70,000 dams, 900,000 miles of pipe in water
systems and 15,000 waste water treatment plants have been financed through tax-exempt
municipal bonds. Municipal bonds are also a safe and reliable investment option. Over 60
percent of tax-exempt bonds are held by individuals either directly or through mutual funds,
with 50 percent of all tax-exempts owned by individuals with an adjusted gross income of
under $200,000 annually. All grades of governmental tax-exempt bonds have proven to be
safer investments than AAA corporate bonds.
Without the tax-exemption, state and local governments would pay more to raise capital.
This cost would ultimately be borne by our taxpayers, through reduced infrastructure
spending, decreased economic development, higher taxes or higher user fees. Proposals to
reduce the tax benefit for municipal bond investors from 35 percent to 28 percent would also
be similarly harmful to California cities. While we agree that reforms are necessary to reduce
1
GATEWAY CITIES COG
LARRY FORESTER
SIGNAL HILL
LAS VIRGENES-MALIBU COG
MARK RUTHERFORD
WESTLAKE VILLAGE
SAN GABRIEL VALLEY COG
SAM PEDROZA
CLAREMONT
SAN FERNANDO VALLEY COG
JESS TALAMANTES
BURBANK
SOUTH BAY CITIES COG
JIM GOODHART
PALOS VERDES ESTATES
WESTSIDE CITIES COG
MICHEÁL O’LEARY
CULVER CITY
EXECUTIVE DIRECTOR
ROBB KORINKE
the federal deficit, eliminating the tax exemption on municipal bonds or reducing the tax
benefit for investors in municipal securities will not achieve sufficient reductions, and will
instead only further stagnate national economic growth.
Thank you for your attention to our concerns on this important economic development issue.
Please contact Kristine Guerrero, Los Angeles County Division Legislative Director, at
(626)716-0076 if you have any questions or need any additional information.
Sincerely,
Steve Diels
President, Los Angeles Division, League of California Cities
Council Member, City of Redondo Beach
cc:
Los Angeles County Congressional Delegation
Jennifer Whiting, League of California Cities, Fax: (916) 658-8240
2012-13 OFFICERS AND
BOARD OF DIRECTORS
PRESIDENT
February 6, 2013
STEVE DIELS
REDONDO BEACH
VICE PRESIDENT
The Honorable Alan Lowenthal
U.S. House of Representatives, 47th District
515 Cannon House Office Building
Washington, D.C., 20515
LING LING CHANG
Via FAX: 202-225-7926
DIAMOND BAR
SECRETARY
STEVEN LY
ROSEMEAD
TREASURER
JOSUÉ BARRIOS
RE: Maintaining the Tax-Exempt Status of Municipal Bonds
CUDAHY
STATE LEAGUE DIRECTOR
OWEN NEWCOMER
WHITTIER
The Honorable Alan Lowenthal,
REGIONAL DIRECTORS
On behalf of the Board of Directors for the League of California Cities’ Los Angeles County
Division, representing 86 cities in the county, I to urge you to maintain the tax exemption on
municipal bonds and oppose efforts to place a cap on the interest of bonds issued by state
and local governments. Moving forward with these proposals would have profoundly
negative impacts on local infrastructure development in our city and state.
ARROYO VERDUGO CITIES
LAURA FRIEDMAN
GLENDALE
CITY OF LOS ANGELES
JOHN WICKHAM
LOS ANGELES
State and local government bonds have been issued since the mid-1800s, and the federal tax
exemption was included in the country’s income tax code since its promulgation in 1913.
Through the tax-exemption, the federal government continues to provide critical support for
the development and maintenance of essential facilities and services, which it cannot
practically replicate by other means. Three-quarters of the total U.S. investment in
infrastructure is accomplished with tax-exempt bonds, which are issued by over 50,000 state
and local governments and authorities representing a three trillion dollar industry.
Tax-exempt bonds are a critical, core resource of public finance, and are used to help build
roads, bridges, sewers, dams, schools, hospitals, and affordable housing across the country.
Nearly four million miles of roadways, 500,000 bridges, 1,000 mass transit systems, 16,000
airports, 25,000 miles of intercoastal waterways, 70,000 dams, 900,000 miles of pipe in water
systems and 15,000 waste water treatment plants have been financed through tax-exempt
municipal bonds. Municipal bonds are also a safe and reliable investment option. Over 60
percent of tax-exempt bonds are held by individuals either directly or through mutual funds,
with 50 percent of all tax-exempts owned by individuals with an adjusted gross income of
under $200,000 annually. All grades of governmental tax-exempt bonds have proven to be
safer investments than AAA corporate bonds.
Without the tax-exemption, state and local governments would pay more to raise capital.
This cost would ultimately be borne by our taxpayers, through reduced infrastructure
spending, decreased economic development, higher taxes or higher user fees. Proposals to
reduce the tax benefit for municipal bond investors from 35 percent to 28 percent would also
be similarly harmful to California cities. While we agree that reforms are necessary to reduce
1
GATEWAY CITIES COG
LARRY FORESTER
SIGNAL HILL
LAS VIRGENES-MALIBU COG
MARK RUTHERFORD
WESTLAKE VILLAGE
SAN GABRIEL VALLEY COG
SAM PEDROZA
CLAREMONT
SAN FERNANDO VALLEY COG
JESS TALAMANTES
BURBANK
SOUTH BAY CITIES COG
JIM GOODHART
PALOS VERDES ESTATES
WESTSIDE CITIES COG
MICHEÁL O’LEARY
CULVER CITY
EXECUTIVE DIRECTOR
ROBB KORINKE
the federal deficit, eliminating the tax exemption on municipal bonds or reducing the tax
benefit for investors in municipal securities will not achieve sufficient reductions, and will
instead only further stagnate national economic growth.
Thank you for your attention to our concerns on this important economic development issue.
Please contact Kristine Guerrero, Los Angeles County Division Legislative Director, at
(626)716-0076 if you have any questions or need any additional information.
Sincerely,
Steve Diels
President, Los Angeles Division, League of California Cities
Council Member, City of Redondo Beach
cc:
Los Angeles County Congressional Delegation
Jennifer Whiting, League of California Cities, Fax: (916) 658-8240
2012-13 OFFICERS AND
BOARD OF DIRECTORS
PRESIDENT
February 6, 2013
STEVE DIELS
REDONDO BEACH
VICE PRESIDENT
The Honorable Kevin McCarthy
U.S. House of Representatives, 23rd District
2421 Rayburn House Office Building
Washington, D.C., 20515
LING LING CHANG
Via FAX: 202-225-2908
DIAMOND BAR
SECRETARY
STEVEN LY
ROSEMEAD
TREASURER
JOSUÉ BARRIOS
RE: Maintaining the Tax-Exempt Status of Municipal Bonds
CUDAHY
STATE LEAGUE DIRECTOR
OWEN NEWCOMER
WHITTIER
The Honorable Kevin McCarthy,
REGIONAL DIRECTORS
On behalf of the Board of Directors for the League of California Cities’ Los Angeles County
Division, representing 86 cities in the county, I to urge you to maintain the tax exemption on
municipal bonds and oppose efforts to place a cap on the interest of bonds issued by state
and local governments. Moving forward with these proposals would have profoundly
negative impacts on local infrastructure development in our city and state.
ARROYO VERDUGO CITIES
LAURA FRIEDMAN
GLENDALE
CITY OF LOS ANGELES
JOHN WICKHAM
LOS ANGELES
State and local government bonds have been issued since the mid-1800s, and the federal tax
exemption was included in the country’s income tax code since its promulgation in 1913.
Through the tax-exemption, the federal government continues to provide critical support for
the development and maintenance of essential facilities and services, which it cannot
practically replicate by other means. Three-quarters of the total U.S. investment in
infrastructure is accomplished with tax-exempt bonds, which are issued by over 50,000 state
and local governments and authorities representing a three trillion dollar industry.
Tax-exempt bonds are a critical, core resource of public finance, and are used to help build
roads, bridges, sewers, dams, schools, hospitals, and affordable housing across the country.
Nearly four million miles of roadways, 500,000 bridges, 1,000 mass transit systems, 16,000
airports, 25,000 miles of intercoastal waterways, 70,000 dams, 900,000 miles of pipe in water
systems and 15,000 waste water treatment plants have been financed through tax-exempt
municipal bonds. Municipal bonds are also a safe and reliable investment option. Over 60
percent of tax-exempt bonds are held by individuals either directly or through mutual funds,
with 50 percent of all tax-exempts owned by individuals with an adjusted gross income of
under $200,000 annually. All grades of governmental tax-exempt bonds have proven to be
safer investments than AAA corporate bonds.
Without the tax-exemption, state and local governments would pay more to raise capital.
This cost would ultimately be borne by our taxpayers, through reduced infrastructure
spending, decreased economic development, higher taxes or higher user fees. Proposals to
reduce the tax benefit for municipal bond investors from 35 percent to 28 percent would also
be similarly harmful to California cities. While we agree that reforms are necessary to reduce
1
GATEWAY CITIES COG
LARRY FORESTER
SIGNAL HILL
LAS VIRGENES-MALIBU COG
MARK RUTHERFORD
WESTLAKE VILLAGE
SAN GABRIEL VALLEY COG
SAM PEDROZA
CLAREMONT
SAN FERNANDO VALLEY COG
JESS TALAMANTES
BURBANK
SOUTH BAY CITIES COG
JIM GOODHART
PALOS VERDES ESTATES
WESTSIDE CITIES COG
MICHEÁL O’LEARY
CULVER CITY
EXECUTIVE DIRECTOR
ROBB KORINKE
the federal deficit, eliminating the tax exemption on municipal bonds or reducing the tax
benefit for investors in municipal securities will not achieve sufficient reductions, and will
instead only further stagnate national economic growth.
Thank you for your attention to our concerns on this important economic development issue.
Please contact Kristine Guerrero, Los Angeles County Division Legislative Director, at
(626)716-0076 if you have any questions or need any additional information.
Sincerely,
Steve Diels
President, Los Angeles Division, League of California Cities
Council Member, City of Redondo Beach
cc:
Los Angeles County Congressional Delegation
Jennifer Whiting, League of California Cities, Fax: (916) 658-8240
2012-13 OFFICERS AND
BOARD OF DIRECTORS
PRESIDENT
February 6, 2013
STEVE DIELS
REDONDO BEACH
VICE PRESIDENT
The Honorable Howard P. McKeon
0683
U.S. House of Representatives, 25th District
2310 Rayburn House Office Building
Washington, D.C., 20515
LING LING CHANG
Via FAX: 202-226-
DIAMOND BAR
SECRETARY
STEVEN LY
ROSEMEAD
TREASURER
JOSUÉ BARRIOS
CUDAHY
RE: Maintaining the Tax-Exempt Status of Municipal Bonds
STATE LEAGUE DIRECTOR
OWEN NEWCOMER
WHITTIER
The Honorable Howard P. McKeon,
REGIONAL DIRECTORS
ARROYO VERDUGO CITIES
LAURA FRIEDMAN
GLENDALE
On behalf of the Board of Directors for the League of California Cities’ Los Angeles County
Division, representing 86 cities in the county, I to urge you to maintain the tax exemption on
municipal bonds and oppose efforts to place a cap on the interest of bonds issued by state
and local governments. Moving forward with these proposals would have profoundly
negative impacts on local infrastructure development in our city and state.
CITY OF LOS ANGELES
JOHN WICKHAM
LOS ANGELES
GATEWAY CITIES COG
State and local government bonds have been issued since the mid-1800s, and the federal tax
exemption was included in the country’s income tax code since its promulgation in 1913.
Through the tax-exemption, the federal government continues to provide critical support for
the development and maintenance of essential facilities and services, which it cannot
practically replicate by other means. Three-quarters of the total U.S. investment in
infrastructure is accomplished with tax-exempt bonds, which are issued by over 50,000 state
and local governments and authorities representing a three trillion dollar industry.
Tax-exempt bonds are a critical, core resource of public finance, and are used to help build
roads, bridges, sewers, dams, schools, hospitals, and affordable housing across the country.
Nearly four million miles of roadways, 500,000 bridges, 1,000 mass transit systems, 16,000
airports, 25,000 miles of intercoastal waterways, 70,000 dams, 900,000 miles of pipe in water
systems and 15,000 waste water treatment plants have been financed through tax-exempt
municipal bonds. Municipal bonds are also a safe and reliable investment option. Over 60
percent of tax-exempt bonds are held by individuals either directly or through mutual funds,
with 50 percent of all tax-exempts owned by individuals with an adjusted gross income of
under $200,000 annually. All grades of governmental tax-exempt bonds have proven to be
safer investments than AAA corporate bonds.
Without the tax-exemption, state and local governments would pay more to raise capital.
This cost would ultimately be borne by our taxpayers, through reduced infrastructure
spending, decreased economic development, higher taxes or higher user fees. Proposals to
reduce the tax benefit for municipal bond investors from 35 percent to 28 percent would also
1
LARRY FORESTER
SIGNAL HILL
LAS VIRGENES-MALIBU COG
MARK RUTHERFORD
WESTLAKE VILLAGE
SAN GABRIEL VALLEY COG
SAM PEDROZA
CLAREMONT
SAN FERNANDO VALLEY COG
JESS TALAMANTES
BURBANK
SOUTH BAY CITIES COG
JIM GOODHART
PALOS VERDES ESTATES
WESTSIDE CITIES COG
MICHEÁL O’LEARY
CULVER CITY
EXECUTIVE DIRECTOR
ROBB KORINKE
be similarly harmful to California cities. While we agree that reforms are necessary to reduce
the federal deficit, eliminating the tax exemption on municipal bonds or reducing the tax
benefit for investors in municipal securities will not achieve sufficient reductions, and will
instead only further stagnate national economic growth.
Thank you for your attention to our concerns on this important economic development issue.
Please contact Kristine Guerrero, Los Angeles County Division Legislative Director, at
(626)716-0076 if you have any questions or need any additional information.
Sincerely,
Steve Diels
President, Los Angeles Division, League of California Cities
Council Member, City of Redondo Beach
cc:
Los Angeles County Congressional Delegation
Jennifer Whiting, League of California Cities, Fax: (916) 658-8240
2012-13 OFFICERS AND
BOARD OF DIRECTORS
PRESIDENT
February 6, 2013
STEVE DIELS
REDONDO BEACH
VICE PRESIDENT
The Honorable Grace F. Napolitano
U.S. House of Representatives, 32nd District
1610 Longworth House Office Building
Washington, D.C., 20515
LING LING CHANG
Via FAX: 202-225-0027
DIAMOND BAR
SECRETARY
STEVEN LY
ROSEMEAD
TREASURER
JOSUÉ BARRIOS
RE: Maintaining the Tax-Exempt Status of Municipal Bonds
CUDAHY
STATE LEAGUE DIRECTOR
OWEN NEWCOMER
WHITTIER
The Honorable Grace F. Napolitano,
REGIONAL DIRECTORS
On behalf of the Board of Directors for the League of California Cities’ Los Angeles County
Division, representing 86 cities in the county, I to urge you to maintain the tax exemption on
municipal bonds and oppose efforts to place a cap on the interest of bonds issued by state
and local governments. Moving forward with these proposals would have profoundly
negative impacts on local infrastructure development in our city and state.
ARROYO VERDUGO CITIES
LAURA FRIEDMAN
GLENDALE
CITY OF LOS ANGELES
JOHN WICKHAM
LOS ANGELES
State and local government bonds have been issued since the mid-1800s, and the federal tax
exemption was included in the country’s income tax code since its promulgation in 1913.
Through the tax-exemption, the federal government continues to provide critical support for
the development and maintenance of essential facilities and services, which it cannot
practically replicate by other means. Three-quarters of the total U.S. investment in
infrastructure is accomplished with tax-exempt bonds, which are issued by over 50,000 state
and local governments and authorities representing a three trillion dollar industry.
Tax-exempt bonds are a critical, core resource of public finance, and are used to help build
roads, bridges, sewers, dams, schools, hospitals, and affordable housing across the country.
Nearly four million miles of roadways, 500,000 bridges, 1,000 mass transit systems, 16,000
airports, 25,000 miles of intercoastal waterways, 70,000 dams, 900,000 miles of pipe in water
systems and 15,000 waste water treatment plants have been financed through tax-exempt
municipal bonds. Municipal bonds are also a safe and reliable investment option. Over 60
percent of tax-exempt bonds are held by individuals either directly or through mutual funds,
with 50 percent of all tax-exempts owned by individuals with an adjusted gross income of
under $200,000 annually. All grades of governmental tax-exempt bonds have proven to be
safer investments than AAA corporate bonds.
Without the tax-exemption, state and local governments would pay more to raise capital.
This cost would ultimately be borne by our taxpayers, through reduced infrastructure
spending, decreased economic development, higher taxes or higher user fees. Proposals to
reduce the tax benefit for municipal bond investors from 35 percent to 28 percent would also
be similarly harmful to California cities. While we agree that reforms are necessary to reduce
1
GATEWAY CITIES COG
LARRY FORESTER
SIGNAL HILL
LAS VIRGENES-MALIBU COG
MARK RUTHERFORD
WESTLAKE VILLAGE
SAN GABRIEL VALLEY COG
SAM PEDROZA
CLAREMONT
SAN FERNANDO VALLEY COG
JESS TALAMANTES
BURBANK
SOUTH BAY CITIES COG
JIM GOODHART
PALOS VERDES ESTATES
WESTSIDE CITIES COG
MICHEÁL O’LEARY
CULVER CITY
EXECUTIVE DIRECTOR
ROBB KORINKE
the federal deficit, eliminating the tax exemption on municipal bonds or reducing the tax
benefit for investors in municipal securities will not achieve sufficient reductions, and will
instead only further stagnate national economic growth.
Thank you for your attention to our concerns on this important economic development issue.
Please contact Kristine Guerrero, Los Angeles County Division Legislative Director, at
(626)716-0076 if you have any questions or need any additional information.
Sincerely,
Steve Diels
President, Los Angeles Division, League of California Cities
Council Member, City of Redondo Beach
cc:
Los Angeles County Congressional Delegation
Jennifer Whiting, League of California Cities, Fax: (916) 658-8240
2012-13 OFFICERS AND
BOARD OF DIRECTORS
PRESIDENT
February 6, 2013
STEVE DIELS
REDONDO BEACH
VICE PRESIDENT
The Honorable Gloria Negrete McLeod
U.S. House of Representatives, 35th District
1641 Longworth House Office Building
Washington, D.C., 20515
LING LING CHANG
Via FAX: 202-226-2646
DIAMOND BAR
SECRETARY
STEVEN LY
ROSEMEAD
TREASURER
JOSUÉ BARRIOS
RE: Maintaining the Tax-Exempt Status of Municipal Bonds
CUDAHY
STATE LEAGUE DIRECTOR
OWEN NEWCOMER
WHITTIER
The Honorable Gloria Negrete McLeod,
REGIONAL DIRECTORS
On behalf of the Board of Directors for the League of California Cities’ Los Angeles County
Division, representing 86 cities in the county, I to urge you to maintain the tax exemption on
municipal bonds and oppose efforts to place a cap on the interest of bonds issued by state
and local governments. Moving forward with these proposals would have profoundly
negative impacts on local infrastructure development in our city and state.
ARROYO VERDUGO CITIES
LAURA FRIEDMAN
GLENDALE
CITY OF LOS ANGELES
JOHN WICKHAM
LOS ANGELES
State and local government bonds have been issued since the mid-1800s, and the federal tax
exemption was included in the country’s income tax code since its promulgation in 1913.
Through the tax-exemption, the federal government continues to provide critical support for
the development and maintenance of essential facilities and services, which it cannot
practically replicate by other means. Three-quarters of the total U.S. investment in
infrastructure is accomplished with tax-exempt bonds, which are issued by over 50,000 state
and local governments and authorities representing a three trillion dollar industry.
Tax-exempt bonds are a critical, core resource of public finance, and are used to help build
roads, bridges, sewers, dams, schools, hospitals, and affordable housing across the country.
Nearly four million miles of roadways, 500,000 bridges, 1,000 mass transit systems, 16,000
airports, 25,000 miles of intercoastal waterways, 70,000 dams, 900,000 miles of pipe in water
systems and 15,000 waste water treatment plants have been financed through tax-exempt
municipal bonds. Municipal bonds are also a safe and reliable investment option. Over 60
percent of tax-exempt bonds are held by individuals either directly or through mutual funds,
with 50 percent of all tax-exempts owned by individuals with an adjusted gross income of
under $200,000 annually. All grades of governmental tax-exempt bonds have proven to be
safer investments than AAA corporate bonds.
Without the tax-exemption, state and local governments would pay more to raise capital.
This cost would ultimately be borne by our taxpayers, through reduced infrastructure
spending, decreased economic development, higher taxes or higher user fees. Proposals to
reduce the tax benefit for municipal bond investors from 35 percent to 28 percent would also
be similarly harmful to California cities. While we agree that reforms are necessary to reduce
1
GATEWAY CITIES COG
LARRY FORESTER
SIGNAL HILL
LAS VIRGENES-MALIBU COG
MARK RUTHERFORD
WESTLAKE VILLAGE
SAN GABRIEL VALLEY COG
SAM PEDROZA
CLAREMONT
SAN FERNANDO VALLEY COG
JESS TALAMANTES
BURBANK
SOUTH BAY CITIES COG
JIM GOODHART
PALOS VERDES ESTATES
WESTSIDE CITIES COG
MICHEÁL O’LEARY
CULVER CITY
EXECUTIVE DIRECTOR
ROBB KORINKE
the federal deficit, eliminating the tax exemption on municipal bonds or reducing the tax
benefit for investors in municipal securities will not achieve sufficient reductions, and will
instead only further stagnate national economic growth.
Thank you for your attention to our concerns on this important economic development issue.
Please contact Kristine Guerrero, Los Angeles County Division Legislative Director, at
(626)716-0076 if you have any questions or need any additional information.
Sincerely,
Steve Diels
President, Los Angeles Division, League of California Cities
Council Member, City of Redondo Beach
cc:
Los Angeles County Congressional Delegation
Jennifer Whiting, League of California Cities, Fax: (916) 658-8240
2012-13 OFFICERS AND
BOARD OF DIRECTORS
PRESIDENT
February 6, 2013
STEVE DIELS
REDONDO BEACH
VICE PRESIDENT
The Honorable Lucille Roybal-Allard
U.S. House of Representatives, 40th District
2330 Rayburn House Office Building
Washington, D.C., 20515
LING LING CHANG
Via FAX: 202-226-0350
DIAMOND BAR
SECRETARY
STEVEN LY
ROSEMEAD
TREASURER
JOSUÉ BARRIOS
RE: Maintaining the Tax-Exempt Status of Municipal Bonds
CUDAHY
STATE LEAGUE DIRECTOR
OWEN NEWCOMER
WHITTIER
The Honorable Lucille Roybal-Allard,
REGIONAL DIRECTORS
On behalf of the Board of Directors for the League of California Cities’ Los Angeles County
Division, representing 86 cities in the county, I to urge you to maintain the tax exemption on
municipal bonds and oppose efforts to place a cap on the interest of bonds issued by state
and local governments. Moving forward with these proposals would have profoundly
negative impacts on local infrastructure development in our city and state.
ARROYO VERDUGO CITIES
LAURA FRIEDMAN
GLENDALE
CITY OF LOS ANGELES
JOHN WICKHAM
LOS ANGELES
State and local government bonds have been issued since the mid-1800s, and the federal tax
exemption was included in the country’s income tax code since its promulgation in 1913.
Through the tax-exemption, the federal government continues to provide critical support for
the development and maintenance of essential facilities and services, which it cannot
practically replicate by other means. Three-quarters of the total U.S. investment in
infrastructure is accomplished with tax-exempt bonds, which are issued by over 50,000 state
and local governments and authorities representing a three trillion dollar industry.
Tax-exempt bonds are a critical, core resource of public finance, and are used to help build
roads, bridges, sewers, dams, schools, hospitals, and affordable housing across the country.
Nearly four million miles of roadways, 500,000 bridges, 1,000 mass transit systems, 16,000
airports, 25,000 miles of intercoastal waterways, 70,000 dams, 900,000 miles of pipe in water
systems and 15,000 waste water treatment plants have been financed through tax-exempt
municipal bonds. Municipal bonds are also a safe and reliable investment option. Over 60
percent of tax-exempt bonds are held by individuals either directly or through mutual funds,
with 50 percent of all tax-exempts owned by individuals with an adjusted gross income of
under $200,000 annually. All grades of governmental tax-exempt bonds have proven to be
safer investments than AAA corporate bonds.
Without the tax-exemption, state and local governments would pay more to raise capital.
This cost would ultimately be borne by our taxpayers, through reduced infrastructure
spending, decreased economic development, higher taxes or higher user fees. Proposals to
reduce the tax benefit for municipal bond investors from 35 percent to 28 percent would also
be similarly harmful to California cities. While we agree that reforms are necessary to reduce
1
GATEWAY CITIES COG
LARRY FORESTER
SIGNAL HILL
LAS VIRGENES-MALIBU COG
MARK RUTHERFORD
WESTLAKE VILLAGE
SAN GABRIEL VALLEY COG
SAM PEDROZA
CLAREMONT
SAN FERNANDO VALLEY COG
JESS TALAMANTES
BURBANK
SOUTH BAY CITIES COG
JIM GOODHART
PALOS VERDES ESTATES
WESTSIDE CITIES COG
MICHEÁL O’LEARY
CULVER CITY
EXECUTIVE DIRECTOR
ROBB KORINKE
the federal deficit, eliminating the tax exemption on municipal bonds or reducing the tax
benefit for investors in municipal securities will not achieve sufficient reductions, and will
instead only further stagnate national economic growth.
Thank you for your attention to our concerns on this important economic development issue.
Please contact Kristine Guerrero, Los Angeles County Division Legislative Director, at
(626)716-0076 if you have any questions or need any additional information.
Sincerely,
Steve Diels
President, Los Angeles Division, League of California Cities
Council Member, City of Redondo Beach
cc:
Los Angeles County Congressional Delegation
Jennifer Whiting, League of California Cities, Fax: (916) 658-8240
2012-13 OFFICERS AND
BOARD OF DIRECTORS
PRESIDENT
February 6, 2013
STEVE DIELS
REDONDO BEACH
VICE PRESIDENT
The Honorable Ed Royce
U.S. House of Representatives, 39th District
2185 Rayburn House Office Building
Washington, D.C., 20515
LING LING CHANG
Via FAX: 202-226-0335
DIAMOND BAR
SECRETARY
STEVEN LY
ROSEMEAD
TREASURER
JOSUÉ BARRIOS
RE: Maintaining the Tax-Exempt Status of Municipal Bonds
CUDAHY
STATE LEAGUE DIRECTOR
OWEN NEWCOMER
WHITTIER
The Honorable Ed Royce,
REGIONAL DIRECTORS
On behalf of the Board of Directors for the League of California Cities’ Los Angeles County
Division, representing 86 cities in the county, I to urge you to maintain the tax exemption on
municipal bonds and oppose efforts to place a cap on the interest of bonds issued by state
and local governments. Moving forward with these proposals would have profoundly
negative impacts on local infrastructure development in our city and state.
ARROYO VERDUGO CITIES
LAURA FRIEDMAN
GLENDALE
CITY OF LOS ANGELES
JOHN WICKHAM
LOS ANGELES
State and local government bonds have been issued since the mid-1800s, and the federal tax
exemption was included in the country’s income tax code since its promulgation in 1913.
Through the tax-exemption, the federal government continues to provide critical support for
the development and maintenance of essential facilities and services, which it cannot
practically replicate by other means. Three-quarters of the total U.S. investment in
infrastructure is accomplished with tax-exempt bonds, which are issued by over 50,000 state
and local governments and authorities representing a three trillion dollar industry.
Tax-exempt bonds are a critical, core resource of public finance, and are used to help build
roads, bridges, sewers, dams, schools, hospitals, and affordable housing across the country.
Nearly four million miles of roadways, 500,000 bridges, 1,000 mass transit systems, 16,000
airports, 25,000 miles of intercoastal waterways, 70,000 dams, 900,000 miles of pipe in water
systems and 15,000 waste water treatment plants have been financed through tax-exempt
municipal bonds. Municipal bonds are also a safe and reliable investment option. Over 60
percent of tax-exempt bonds are held by individuals either directly or through mutual funds,
with 50 percent of all tax-exempts owned by individuals with an adjusted gross income of
under $200,000 annually. All grades of governmental tax-exempt bonds have proven to be
safer investments than AAA corporate bonds.
Without the tax-exemption, state and local governments would pay more to raise capital.
This cost would ultimately be borne by our taxpayers, through reduced infrastructure
spending, decreased economic development, higher taxes or higher user fees. Proposals to
reduce the tax benefit for municipal bond investors from 35 percent to 28 percent would also
be similarly harmful to California cities. While we agree that reforms are necessary to reduce
1
GATEWAY CITIES COG
LARRY FORESTER
SIGNAL HILL
LAS VIRGENES-MALIBU COG
MARK RUTHERFORD
WESTLAKE VILLAGE
SAN GABRIEL VALLEY COG
SAM PEDROZA
CLAREMONT
SAN FERNANDO VALLEY COG
JESS TALAMANTES
BURBANK
SOUTH BAY CITIES COG
JIM GOODHART
PALOS VERDES ESTATES
WESTSIDE CITIES COG
MICHEÁL O’LEARY
CULVER CITY
EXECUTIVE DIRECTOR
ROBB KORINKE
the federal deficit, eliminating the tax exemption on municipal bonds or reducing the tax
benefit for investors in municipal securities will not achieve sufficient reductions, and will
instead only further stagnate national economic growth.
Thank you for your attention to our concerns on this important economic development issue.
Please contact Kristine Guerrero, Los Angeles County Division Legislative Director, at
(626)716-0076 if you have any questions or need any additional information.
Sincerely,
Steve Diels
President, Los Angeles Division, League of California Cities
Council Member, City of Redondo Beach
cc:
Los Angeles County Congressional Delegation
Jennifer Whiting, League of California Cities, Fax: (916) 658-8240
2012-13 OFFICERS AND
BOARD OF DIRECTORS
PRESIDENT
February 6, 2013
STEVE DIELS
REDONDO BEACH
VICE PRESIDENT
The Honorable Linda Sanchez
U.S. House of Representatives, 38th District
2453 Rayburn House Office Building
Washington, D.C., 20515
LING LING CHANG
Via FAX: 202-226-1012
DIAMOND BAR
SECRETARY
STEVEN LY
ROSEMEAD
TREASURER
JOSUÉ BARRIOS
RE: Maintaining the Tax-Exempt Status of Municipal Bonds
CUDAHY
STATE LEAGUE DIRECTOR
OWEN NEWCOMER
WHITTIER
The Honorable Linda Sanchez,
REGIONAL DIRECTORS
On behalf of the Board of Directors for the League of California Cities’ Los Angeles County
Division, representing 86 cities in the county, I to urge you to maintain the tax exemption on
municipal bonds and oppose efforts to place a cap on the interest of bonds issued by state
and local governments. Moving forward with these proposals would have profoundly
negative impacts on local infrastructure development in our city and state.
ARROYO VERDUGO CITIES
LAURA FRIEDMAN
GLENDALE
CITY OF LOS ANGELES
JOHN WICKHAM
LOS ANGELES
State and local government bonds have been issued since the mid-1800s, and the federal tax
exemption was included in the country’s income tax code since its promulgation in 1913.
Through the tax-exemption, the federal government continues to provide critical support for
the development and maintenance of essential facilities and services, which it cannot
practically replicate by other means. Three-quarters of the total U.S. investment in
infrastructure is accomplished with tax-exempt bonds, which are issued by over 50,000 state
and local governments and authorities representing a three trillion dollar industry.
Tax-exempt bonds are a critical, core resource of public finance, and are used to help build
roads, bridges, sewers, dams, schools, hospitals, and affordable housing across the country.
Nearly four million miles of roadways, 500,000 bridges, 1,000 mass transit systems, 16,000
airports, 25,000 miles of intercoastal waterways, 70,000 dams, 900,000 miles of pipe in water
systems and 15,000 waste water treatment plants have been financed through tax-exempt
municipal bonds. Municipal bonds are also a safe and reliable investment option. Over 60
percent of tax-exempt bonds are held by individuals either directly or through mutual funds,
with 50 percent of all tax-exempts owned by individuals with an adjusted gross income of
under $200,000 annually. All grades of governmental tax-exempt bonds have proven to be
safer investments than AAA corporate bonds.
Without the tax-exemption, state and local governments would pay more to raise capital.
This cost would ultimately be borne by our taxpayers, through reduced infrastructure
spending, decreased economic development, higher taxes or higher user fees. Proposals to
reduce the tax benefit for municipal bond investors from 35 percent to 28 percent would also
be similarly harmful to California cities. While we agree that reforms are necessary to reduce
1
GATEWAY CITIES COG
LARRY FORESTER
SIGNAL HILL
LAS VIRGENES-MALIBU COG
MARK RUTHERFORD
WESTLAKE VILLAGE
SAN GABRIEL VALLEY COG
SAM PEDROZA
CLAREMONT
SAN FERNANDO VALLEY COG
JESS TALAMANTES
BURBANK
SOUTH BAY CITIES COG
JIM GOODHART
PALOS VERDES ESTATES
WESTSIDE CITIES COG
MICHEÁL O’LEARY
CULVER CITY
EXECUTIVE DIRECTOR
ROBB KORINKE
the federal deficit, eliminating the tax exemption on municipal bonds or reducing the tax
benefit for investors in municipal securities will not achieve sufficient reductions, and will
instead only further stagnate national economic growth.
Thank you for your attention to our concerns on this important economic development issue.
Please contact Kristine Guerrero, Los Angeles County Division Legislative Director, at
(626)716-0076 if you have any questions or need any additional information.
Sincerely,
Steve Diels
President, Los Angeles Division, League of California Cities
Council Member, City of Redondo Beach
cc:
Los Angeles County Congressional Delegation
Jennifer Whiting, League of California Cities, Fax: (916) 658-8240
2012-13 OFFICERS AND
BOARD OF DIRECTORS
PRESIDENT
February 6, 2013
STEVE DIELS
REDONDO BEACH
VICE PRESIDENT
The Honorable Adam Schiff
U.S. House of Representatives, 28th District
2411 Rayburn House Office Building
Washington, D.C., 20515
LING LING CHANG
Via FAX: 202-225-5828
DIAMOND BAR
SECRETARY
STEVEN LY
ROSEMEAD
TREASURER
JOSUÉ BARRIOS
RE: Maintaining the Tax-Exempt Status of Municipal Bonds
CUDAHY
STATE LEAGUE DIRECTOR
OWEN NEWCOMER
WHITTIER
The Honorable Adam Schiff,
REGIONAL DIRECTORS
On behalf of the Board of Directors for the League of California Cities’ Los Angeles County
Division, representing 86 cities in the county, I to urge you to maintain the tax exemption on
municipal bonds and oppose efforts to place a cap on the interest of bonds issued by state
and local governments. Moving forward with these proposals would have profoundly
negative impacts on local infrastructure development in our city and state.
ARROYO VERDUGO CITIES
LAURA FRIEDMAN
GLENDALE
CITY OF LOS ANGELES
JOHN WICKHAM
LOS ANGELES
State and local government bonds have been issued since the mid-1800s, and the federal tax
exemption was included in the country’s income tax code since its promulgation in 1913.
Through the tax-exemption, the federal government continues to provide critical support for
the development and maintenance of essential facilities and services, which it cannot
practically replicate by other means. Three-quarters of the total U.S. investment in
infrastructure is accomplished with tax-exempt bonds, which are issued by over 50,000 state
and local governments and authorities representing a three trillion dollar industry.
Tax-exempt bonds are a critical, core resource of public finance, and are used to help build
roads, bridges, sewers, dams, schools, hospitals, and affordable housing across the country.
Nearly four million miles of roadways, 500,000 bridges, 1,000 mass transit systems, 16,000
airports, 25,000 miles of intercoastal waterways, 70,000 dams, 900,000 miles of pipe in water
systems and 15,000 waste water treatment plants have been financed through tax-exempt
municipal bonds. Municipal bonds are also a safe and reliable investment option. Over 60
percent of tax-exempt bonds are held by individuals either directly or through mutual funds,
with 50 percent of all tax-exempts owned by individuals with an adjusted gross income of
under $200,000 annually. All grades of governmental tax-exempt bonds have proven to be
safer investments than AAA corporate bonds.
Without the tax-exemption, state and local governments would pay more to raise capital.
This cost would ultimately be borne by our taxpayers, through reduced infrastructure
spending, decreased economic development, higher taxes or higher user fees. Proposals to
reduce the tax benefit for municipal bond investors from 35 percent to 28 percent would also
be similarly harmful to California cities. While we agree that reforms are necessary to reduce
1
GATEWAY CITIES COG
LARRY FORESTER
SIGNAL HILL
LAS VIRGENES-MALIBU COG
MARK RUTHERFORD
WESTLAKE VILLAGE
SAN GABRIEL VALLEY COG
SAM PEDROZA
CLAREMONT
SAN FERNANDO VALLEY COG
JESS TALAMANTES
BURBANK
SOUTH BAY CITIES COG
JIM GOODHART
PALOS VERDES ESTATES
WESTSIDE CITIES COG
MICHEÁL O’LEARY
CULVER CITY
EXECUTIVE DIRECTOR
ROBB KORINKE
the federal deficit, eliminating the tax exemption on municipal bonds or reducing the tax
benefit for investors in municipal securities will not achieve sufficient reductions, and will
instead only further stagnate national economic growth.
Thank you for your attention to our concerns on this important economic development issue.
Please contact Kristine Guerrero, Los Angeles County Division Legislative Director, at
(626)716-0076 if you have any questions or need any additional information.
Sincerely,
Steve Diels
President, Los Angeles Division, League of California Cities
Council Member, City of Redondo Beach
cc:
Los Angeles County Congressional Delegation
Jennifer Whiting, League of California Cities, Fax: (916) 658-8240
2012-13 OFFICERS AND
BOARD OF DIRECTORS
PRESIDENT
February 6, 2013
STEVE DIELS
REDONDO BEACH
VICE PRESIDENT
The Honorable Brad Sherman
U.S. House of Representatives, 30th District
2242 Rayburn House Office Building
Washington, D.C., 20515
LING LING CHANG
Via FAX: 202-225-5879
DIAMOND BAR
SECRETARY
STEVEN LY
ROSEMEAD
TREASURER
JOSUÉ BARRIOS
RE: Maintaining the Tax-Exempt Status of Municipal Bonds
CUDAHY
STATE LEAGUE DIRECTOR
OWEN NEWCOMER
WHITTIER
The Honorable Brad Sherman,
REGIONAL DIRECTORS
On behalf of the Board of Directors for the League of California Cities’ Los Angeles County
Division, representing 86 cities in the county, I to urge you to maintain the tax exemption on
municipal bonds and oppose efforts to place a cap on the interest of bonds issued by state
and local governments. Moving forward with these proposals would have profoundly
negative impacts on local infrastructure development in our city and state.
ARROYO VERDUGO CITIES
LAURA FRIEDMAN
GLENDALE
CITY OF LOS ANGELES
JOHN WICKHAM
LOS ANGELES
State and local government bonds have been issued since the mid-1800s, and the federal tax
exemption was included in the country’s income tax code since its promulgation in 1913.
Through the tax-exemption, the federal government continues to provide critical support for
the development and maintenance of essential facilities and services, which it cannot
practically replicate by other means. Three-quarters of the total U.S. investment in
infrastructure is accomplished with tax-exempt bonds, which are issued by over 50,000 state
and local governments and authorities representing a three trillion dollar industry.
Tax-exempt bonds are a critical, core resource of public finance, and are used to help build
roads, bridges, sewers, dams, schools, hospitals, and affordable housing across the country.
Nearly four million miles of roadways, 500,000 bridges, 1,000 mass transit systems, 16,000
airports, 25,000 miles of intercoastal waterways, 70,000 dams, 900,000 miles of pipe in water
systems and 15,000 waste water treatment plants have been financed through tax-exempt
municipal bonds. Municipal bonds are also a safe and reliable investment option. Over 60
percent of tax-exempt bonds are held by individuals either directly or through mutual funds,
with 50 percent of all tax-exempts owned by individuals with an adjusted gross income of
under $200,000 annually. All grades of governmental tax-exempt bonds have proven to be
safer investments than AAA corporate bonds.
Without the tax-exemption, state and local governments would pay more to raise capital.
This cost would ultimately be borne by our taxpayers, through reduced infrastructure
spending, decreased economic development, higher taxes or higher user fees. Proposals to
reduce the tax benefit for municipal bond investors from 35 percent to 28 percent would also
be similarly harmful to California cities. While we agree that reforms are necessary to reduce
1
GATEWAY CITIES COG
LARRY FORESTER
SIGNAL HILL
LAS VIRGENES-MALIBU COG
MARK RUTHERFORD
WESTLAKE VILLAGE
SAN GABRIEL VALLEY COG
SAM PEDROZA
CLAREMONT
SAN FERNANDO VALLEY COG
JESS TALAMANTES
BURBANK
SOUTH BAY CITIES COG
JIM GOODHART
PALOS VERDES ESTATES
WESTSIDE CITIES COG
MICHEÁL O’LEARY
CULVER CITY
EXECUTIVE DIRECTOR
ROBB KORINKE
the federal deficit, eliminating the tax exemption on municipal bonds or reducing the tax
benefit for investors in municipal securities will not achieve sufficient reductions, and will
instead only further stagnate national economic growth.
Thank you for your attention to our concerns on this important economic development issue.
Please contact Kristine Guerrero, Los Angeles County Division Legislative Director, at
(626)716-0076 if you have any questions or need any additional information.
Sincerely,
Steve Diels
President, Los Angeles Division, League of California Cities
Council Member, City of Redondo Beach
cc:
Los Angeles County Congressional Delegation
Jennifer Whiting, League of California Cities, Fax: (916) 658-8240
2012-13 OFFICERS AND
BOARD OF DIRECTORS
PRESIDENT
February 6, 2013
STEVE DIELS
REDONDO BEACH
VICE PRESIDENT
The Honorable Maxine Waters
U.S. House of Representatives, 43rd District
2221 Rayburn House Office Building
Washington, D.C., 20515
LING LING CHANG
Via FAX: 202-225-7854
DIAMOND BAR
SECRETARY
STEVEN LY
ROSEMEAD
TREASURER
JOSUÉ BARRIOS
RE: Maintaining the Tax-Exempt Status of Municipal Bonds
CUDAHY
STATE LEAGUE DIRECTOR
OWEN NEWCOMER
WHITTIER
The Honorable Maxine Waters,
REGIONAL DIRECTORS
On behalf of the Board of Directors for the League of California Cities’ Los Angeles County
Division, representing 86 cities in the county, I to urge you to maintain the tax exemption on
municipal bonds and oppose efforts to place a cap on the interest of bonds issued by state
and local governments. Moving forward with these proposals would have profoundly
negative impacts on local infrastructure development in our city and state.
ARROYO VERDUGO CITIES
LAURA FRIEDMAN
GLENDALE
CITY OF LOS ANGELES
JOHN WICKHAM
LOS ANGELES
State and local government bonds have been issued since the mid-1800s, and the federal tax
exemption was included in the country’s income tax code since its promulgation in 1913.
Through the tax-exemption, the federal government continues to provide critical support for
the development and maintenance of essential facilities and services, which it cannot
practically replicate by other means. Three-quarters of the total U.S. investment in
infrastructure is accomplished with tax-exempt bonds, which are issued by over 50,000 state
and local governments and authorities representing a three trillion dollar industry.
Tax-exempt bonds are a critical, core resource of public finance, and are used to help build
roads, bridges, sewers, dams, schools, hospitals, and affordable housing across the country.
Nearly four million miles of roadways, 500,000 bridges, 1,000 mass transit systems, 16,000
airports, 25,000 miles of intercoastal waterways, 70,000 dams, 900,000 miles of pipe in water
systems and 15,000 waste water treatment plants have been financed through tax-exempt
municipal bonds. Municipal bonds are also a safe and reliable investment option. Over 60
percent of tax-exempt bonds are held by individuals either directly or through mutual funds,
with 50 percent of all tax-exempts owned by individuals with an adjusted gross income of
under $200,000 annually. All grades of governmental tax-exempt bonds have proven to be
safer investments than AAA corporate bonds.
Without the tax-exemption, state and local governments would pay more to raise capital.
This cost would ultimately be borne by our taxpayers, through reduced infrastructure
spending, decreased economic development, higher taxes or higher user fees. Proposals to
reduce the tax benefit for municipal bond investors from 35 percent to 28 percent would also
be similarly harmful to California cities. While we agree that reforms are necessary to reduce
1
GATEWAY CITIES COG
LARRY FORESTER
SIGNAL HILL
LAS VIRGENES-MALIBU COG
MARK RUTHERFORD
WESTLAKE VILLAGE
SAN GABRIEL VALLEY COG
SAM PEDROZA
CLAREMONT
SAN FERNANDO VALLEY COG
JESS TALAMANTES
BURBANK
SOUTH BAY CITIES COG
JIM GOODHART
PALOS VERDES ESTATES
WESTSIDE CITIES COG
MICHEÁL O’LEARY
CULVER CITY
EXECUTIVE DIRECTOR
ROBB KORINKE
the federal deficit, eliminating the tax exemption on municipal bonds or reducing the tax
benefit for investors in municipal securities will not achieve sufficient reductions, and will
instead only further stagnate national economic growth.
Thank you for your attention to our concerns on this important economic development issue.
Please contact Kristine Guerrero, Los Angeles County Division Legislative Director, at
(626)716-0076 if you have any questions or need any additional information.
Sincerely,
Steve Diels
President, Los Angeles Division, League of California Cities
Council Member, City of Redondo Beach
cc:
Los Angeles County Congressional Delegation
Jennifer Whiting, League of California Cities, Fax: (916) 658-8240
2012-13 OFFICERS AND
BOARD OF DIRECTORS
PRESIDENT
February 6, 2013
STEVE DIELS
REDONDO BEACH
VICE PRESIDENT
The Honorable Henry Waxman
U.S. House of Representatives, 33rd District
2204 Rayburn House Office Building
Washington, D.C., 20515
LING LING CHANG
Via FAX: 202-225-4099
DIAMOND BAR
SECRETARY
STEVEN LY
ROSEMEAD
TREASURER
JOSUÉ BARRIOS
RE: Maintaining the Tax-Exempt Status of Municipal Bonds
CUDAHY
STATE LEAGUE DIRECTOR
OWEN NEWCOMER
WHITTIER
The Honorable Henry Waxman,
REGIONAL DIRECTORS
On behalf of the Board of Directors for the League of California Cities’ Los Angeles County
Division, representing 86 cities in the county, I to urge you to maintain the tax exemption on
municipal bonds and oppose efforts to place a cap on the interest of bonds issued by state
and local governments. Moving forward with these proposals would have profoundly
negative impacts on local infrastructure development in our city and state.
ARROYO VERDUGO CITIES
LAURA FRIEDMAN
GLENDALE
CITY OF LOS ANGELES
JOHN WICKHAM
LOS ANGELES
State and local government bonds have been issued since the mid-1800s, and the federal tax
exemption was included in the country’s income tax code since its promulgation in 1913.
Through the tax-exemption, the federal government continues to provide critical support for
the development and maintenance of essential facilities and services, which it cannot
practically replicate by other means. Three-quarters of the total U.S. investment in
infrastructure is accomplished with tax-exempt bonds, which are issued by over 50,000 state
and local governments and authorities representing a three trillion dollar industry.
Tax-exempt bonds are a critical, core resource of public finance, and are used to help build
roads, bridges, sewers, dams, schools, hospitals, and affordable housing across the country.
Nearly four million miles of roadways, 500,000 bridges, 1,000 mass transit systems, 16,000
airports, 25,000 miles of intercoastal waterways, 70,000 dams, 900,000 miles of pipe in water
systems and 15,000 waste water treatment plants have been financed through tax-exempt
municipal bonds. Municipal bonds are also a safe and reliable investment option. Over 60
percent of tax-exempt bonds are held by individuals either directly or through mutual funds,
with 50 percent of all tax-exempts owned by individuals with an adjusted gross income of
under $200,000 annually. All grades of governmental tax-exempt bonds have proven to be
safer investments than AAA corporate bonds.
Without the tax-exemption, state and local governments would pay more to raise capital.
This cost would ultimately be borne by our taxpayers, through reduced infrastructure
spending, decreased economic development, higher taxes or higher user fees. Proposals to
reduce the tax benefit for municipal bond investors from 35 percent to 28 percent would also
be similarly harmful to California cities. While we agree that reforms are necessary to reduce
1
GATEWAY CITIES COG
LARRY FORESTER
SIGNAL HILL
LAS VIRGENES-MALIBU COG
MARK RUTHERFORD
WESTLAKE VILLAGE
SAN GABRIEL VALLEY COG
SAM PEDROZA
CLAREMONT
SAN FERNANDO VALLEY COG
JESS TALAMANTES
BURBANK
SOUTH BAY CITIES COG
JIM GOODHART
PALOS VERDES ESTATES
WESTSIDE CITIES COG
MICHEÁL O’LEARY
CULVER CITY
EXECUTIVE DIRECTOR
ROBB KORINKE
the federal deficit, eliminating the tax exemption on municipal bonds or reducing the tax
benefit for investors in municipal securities will not achieve sufficient reductions, and will
instead only further stagnate national economic growth.
Thank you for your attention to our concerns on this important economic development issue.
Please contact Kristine Guerrero, Los Angeles County Division Legislative Director, at
(626)716-0076 if you have any questions or need any additional information.
Sincerely,
Steve Diels
President, Los Angeles Division, League of California Cities
Council Member, City of Redondo Beach
cc:
Los Angeles County Congressional Delegation
Jennifer Whiting, League of California Cities, Fax: (916) 658-8240