Government Finance Officers Association
The United States Conference of Mayors
National School Boards Association
National League of Cities
National Community Development Association
National Association of Towns and Townships
National Association of State Treasurers
National Association of State Auditors Comptrollers and Treasurers
National Association of Regional Councils
National Association of Municipal Advisors
National Association of Counties
National Association of College and University Business Officers
National Association of Clean Water Agencies
National Association of Bond Lawyers
Large Public Power Council
International Public Management Association for Human Resources
International City County Management Association
Association of Metropolitan Water Agencies
American Water Works Association
American Society of Civil Engineers
American Public Works Association
American Public Transportation Association
American Public Power Association
American Planning Association
American Hospital Association
Airports Council International-North America
Dear Representative:
We the undersigned organizations of the Public Finance Network (PFN) write to express our appreciation to the more than one hundred members of Congress who signed on to the recently distributed letter to House Ways & Means leadership expressing strong support of the tax-exempt municipal bond. For more than a century, municipal bonds have been the primary method by which state and local governments and not-for-profits finance public capital improvements and infrastructure construction. The strong bipartisan support demonstrated in the letter highlights the utility of the municipal bond interest exemption and its impact on infrastructure.
But the support for financing tools that underpin our vibrant infrastructure network does not stop there. Our national organizations represent tens of thousands of public-sector and tax-exempt entities that issue debt to finance and build the infrastructure that contributes to strong economies at the state and local levels across the country. Together our collective memberships support legislation that would reinstate authority to advance refund tax-exempt municipal bonds, The Investing in Our Communities Act, H.R. 2772.
Before 2018, governmental bonds and 501(c)(3) bonds issued by state and local governments were permitted a single advance refunding. This allowed public issuers to take advantage of reductions in interest rates to realize billions of dollars in savings, which ultimately benefits taxpayers. In fact, the Government Finance Officers Association (GFOA) best practices recommended an advance refunding should produce a minimum savings threshold on a present value basis of 3-5 percent. In the 5-year period from 2013-2017, the advance refunding of municipal securities saved taxpayers at least $12 billion, a benefit to all of our shared constituencies.
We appreciate the efforts of Reps. Dutch Ruppersberger and Steve Stivers, the Co-Chairs of the bipartisan House Municipal Finance Caucus, for leading the municipal bond letter of support and for introducing a bill to restore advance refunding. If enacted, this critical piece of legislation would reinstate a financing tool that saves our country billions. We urge all members to support this legislation and we look forward to working with you and supporting the effort to help the public issuer community on this vital issue.
Sincerely,
Government Finance Officers Association, Emily Swenson Brock, 202-393-8467
The United States Conference of Mayors, Larry Jones, 202-861-6709
National School Board Association, Deborah Rigsby, 703-838-6208
National League of Cities, Brian Egan, 202-626-3107
National Community Development Association, Vicki Watson, 540-656-9552
National Association of Towns and Townships, Aindriu Colgan, 202-454-3947
National Association of State Treasurers, Shaun Snyder, 202-744-6663
National Association of Regional Councils, Leslie Wollack, 202-618-5696
National Association of Municipal Advisors, Susan Gaffney, 703-395-4896
National Association of Counties, Jack Peterson, 202-661-8805
National Association of College and University Business Officers, Elizabeth Clark, 202-861-2553
National Association of Clean Water Agencies, Kristina Surfus, 202-833-4655
National Association of Bond Lawyers, Jessica Giroux, 202-503-3300
National Assn of State Auditors, Comptrollers and Treasurers, Cornelia Chebinou, 202 624-5451
Large Public Power Council, John DeStasio, 512-707-1010
International Public Management Association for Human Resources, Neil Reichenberg, 703-549-7100
International City/County Management Association, Elizabeth Kellar, 202-962-3611
Association of Metropolitan Water Agencies, Dan Hartnett, 202-331-2820
American Water Works Association, G. Tracy Mehan, III, 202-326-6125
American Society of Civil Engineers, Joe Brady, 202-789-7852
American Public Works Association, Andrea Eales, 202-408-9541
American Public Transportation Association, Mark Hybner, 202-496-4897
American Public Power Association, John Godfrey, 202-467-2929
American Planning Association, Jason Jordan, 202-349-1005
American Hospital Association, Mike Rock, 202-638-1100
Airports Council International-North America, Annie Russo, 202-293-8500
