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t ELK RIVER MUNICIPAL UTILITIES <br /> 322 King Avenue <br /> Elk River,Minnesota 55330 <br /> Phone (612)441-2020 <br /> Fax (612)441-8099 <br /> Resolution <br /> WHEREAS,every state,county,city or town in America should have the right to decide <br /> whether it wants to provide electric service to its businesses and residents. <br /> WHEREAS,the consumer-owners of these utilities should have a direct say in and maintain <br /> local control over their own electric utility operations and policies. <br /> WHEREAS, Elk River MN,established its community owned electric utility in 1947 and <br /> our citizens have benefited from this action for decades. <br /> WHEREAS,these community-owned utilities,as units of state or local government,have the <br /> right to issue tax-free municipal bonds for local infrastructure needs, including electric <br /> service. <br /> WHEREAS, there currently exist federal restrictions on municipal bonds used to develop <br /> community-owned electric utilities that prevent these utilities from selling power <br /> under many circumstances,and these restrictions will make it difficult, if not <br /> impossible, for many of these utilities to operate in the more competitive <br /> environment being fostered or mandated by new federal and state laws. <br /> WHEREAS,bipartisan legislation, the Bond Fairness and Protection Act,has been introduced <br /> in the Senate(S.386)by Senators Slade Gorton(R-WA)and Bob Kerrey(D-NE),and in <br /> the House of Representatives(H.R. 721)by Representatives Hayworth(R-AZ)and <br /> Matsui (D-CA)to reconcile these restrictions with the changing character of the <br /> electric utility industry in a way that protects our right of local control over our own <br /> affairs. <br /> WHEREAS,some private power companies oppose this legislation precisely because it is in their <br /> self interest to limit the ability of community-owned utilities to operate in this <br /> new environment. <br /> WHEREAS,opponents of S.386 and H.R. 721 are urging Congress to impose a federal <br /> income tax on certain revenues from sales of community-owned electric utilities. <br /> WHEREAS,community-owned utilities such as Elk River Municipal Utilities,as units of state and local <br /> government operating on a not-for-profit basis,are not and should not be taxed by the federal <br /> government <br /> NOW,THEREFORE, BE IT RESOLVED: that Elk River Municipal Utilities Commission call on <br /> Senators Wellstone and Grams and Representative Oberstar to support the bipartisan Bond <br /> Fairness and Protection Act of 1999,and to vigorously oppose any federal tax on <br /> community-owned electric utilities. <br /> Elk River Municipal Utilities Commission <br /> James Tralle <br /> John Deitz <br /> George Zabee <br />