HomeMy WebLinkAboutAGENDA REPORT 1987 1123 CC ADJ ITEM 08H-
CLINT HARPER. Ph.D
Mayor
ELOISE 0ROWN
Mayor pro Tern
Tf lOMAS C FERGUSON
Councilmcmber
JOHN GALLOWAY
Council member
JOHN PATRICK LANE
Councilmcmber
MAUREEN W. WALL
City Clerk
TO:
FROM:
MOORPARK
M E M O R A N D U M
Honorable City Council
Steven Kueny, City Manager
November 18, 1987
ITEM _<2,,,_,_,_. H:....._. _
STEVEN KUENY
City Manager
CHERYL J. KANE
City Attorney
PATRICK RICHARDS. A.1.C.P
Director ol
Community Development
R DE:NNIS DELZEIT
City Engineer
JOHN V GILLESPIE
Chief of Police
THOMAS P GENOVESE
City Treasurer
DATE
SUBJECT: Letter in Support of HR 3250 for Exclusion of Contribution in Aid of Construction (CIAC)
The attached legislative bulletin explains the concerns with restoration of the exclusion of CIAC from taxable income for the utilities.
As you are aware, the imination of the exclusion caused increased costs for both the Princeton signal and Tierra Rejada Road bridge projects. While the City has not paid these funds, we have committed to the Edi son company for payment.
HR 3250 as recently introduced would restore the exclusion of CIAC from taxable income.
The current situation cost of the project.
St Recommendation:
CIAC not being exempt adds 37% to the
Authorize Mayor to send letter in support of HR 3250.
SK: j fd Attachment
799 Moorpark Avenue Moorpark, California 93021 (805)529-6864
be addressed to your local Congressional representatives and Congressman Matsui.
If you city is currently contemplating a project which will involve a contribution to a utility, we recommend the following:
1.Discuss the CIAC taxation issue with the public utility at an earlyplanning stage to determine the exact tax ccst involved.
2.If possible, avoid agreeing to make· a CIAC until 1988. The tax costshould be lower in 1988.
3.Consider signing a written agreement to pay any subsequently assessedtax on the CIAC rather than paying the tax up front. If a favorableIRS ruling is obtained, this could save the city from paying the taxcost.
Questions about this issue should be directed to Paul Valle-Riestra in the League's Sacramento office.
PV10�2M2.legal
-2 -