CC RESOLUTION 36123612
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF EL SEGUNDO, CALIFORNIA EXPRESSING ITS
OPPOSITION TO THE RECENT NATIONAL LEAGUE OF
CITIES' POSITION ON THE HOME MORTGAGE
INTEREST DEDUCTION.
WHEREAS, home ownership is of primary importance in
promoting neighborhood stability and enhancing participation in
community affairs; and
WHEREAS, an important factor which makes owning and
maintaining a home possible for many Americans is the ability to
deduct interest which is paid on home mortgages; and
WHEREAS, the original intent of the home mortgage interest
deduction, which was to encourage home ownership, home
improvement, and neighborhood stability is still valid today; and
WHEREAS, the National League of Cities has recently adopted
a Priorities Statement for the 1990 federal budget and programs,
which identifies as a possible revenue enhancement option three
• modifications to the home mortgage interest deduction; and
WHEREAS, it is this City Council's belief that any
modifications to the home mortgage interest deduction which would
limit the total amount of interest allowed to be deducted would
have a devastating impact on the residents of E1 Segundo, for the
following reasons:
o
It would discourage home ownership and improvement by
removing the tax benefits of investing in one's home.
o
In discouraging home ownership and improvement, it
would damage the stability of the City's neighborhoods
by encouraging the renting of homes and attracting a
more transient population with fewer roots in the
community.
o
It would have a disproportionate impact on the
residents of E1 Segundo, Southern California, and other
high -cost housing areas, since the value of mortgages
and the total amount of interest paid is greater than
other areas of the country.
o
It could have the effect of limiting the construction
of new housing in Southern California, as fewer people
would be qualified to purchase homes. In turn, this
would exacerbate the already severe housing shortage
which exists in the area and contribute to the
imbalance of jobs and housing, and would worsen
secondary effects such as traffic congestion and air
pollution.
NOW,
THEREFORE, THE CITY COUNCIL OF THE CITY OF EL SEGUNDO,
CALIFORNIA, DOES RESOLVE AS FOLLOWS:
SECTION 1. The City Council of the City of El Segundo in
and on behalf of its citizens expresses its firm opposition to
any modifications to the home mortgage interest deduction.
SECTION 2. The City Council of the City of E1 Segundo
calls upon the Executive Board of the National League of Cities
to amend its Priorities Statement to eliminate all reference to
modifications of the home mortgage interest deduction as a
potential revenue enhancement tool.
SECTION 3. The City of E1 Segundo calls upon the
leadership of the Los Angeles County Division of the National
League of Cities to adopt a similar position in opposition to any
modification of the home mortgage interest deduction.
SECTION 4. A copy of this resolution shall be
distributed to the mayors of all cities in Los Angeles County
encouraging them to express their opposition to the League's
position as it relates to the home mortgage interest deduction
SECTION 5. The Clerk shall certify to the passage and
adoption of this resolution; shall enter the same in the book of
original resolutions of said city; and shall make a minute of the
passage and adoption thereof in the records of the proceedings
of the City Council of said city, in the minutes of the meeting
at which the same is passed and adopted.Y�'Q
PASSED, APPROVED and ADOPTED this 3rd If O�ober, 1989.
11
ayor of �ty of E1 Segundo,
ifornia
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO
I, Ronald L. Hart, City Clerk of the City of El Segundo, California, DO HEREBY
CERTIFY that the whole number of members of the City Council of said City is five;
that the foregoing resolution, being Resolution No. 3612 was duly passed and adopted
by the said City Council, approved and signed by the Mayor of said City, and attested by
the City Clerk of said City, all at a regular meeting of the said Council held on the
3rd day of October, 1989 and that the same was so passed and adopted by the following
vote:
AYES: Councilmembers Clutter, Dannen,
West, Anderson and Mayor Jacobson
NOES: None
ABSENT: None
WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this 10th day of
October, 1989.
RONALD L. HART
City Clerk of the
City of El Segundo, California
(SEAL)