The District of Columbia Council tomorrow is expected to approve a bill that would give officials the authority to issue income-tax bonds, sources said.
Jeff Coudriet, clerk for the finance committee, said after he completes a few “technical” amendments to refine the bill, he expects it to pass tomorrow, after which the legislative body takes a three-month summer hiatus,
The bill was introduced last month by councilman Jack Evans at chief financial officer Natwar Gandhi’s request.
The measure would allow the district to issue income-tax bonds as an alternative to general obligation bonds in an attempt to achieve higher ratings and lower borrowing costs, officials have said. The income tax bonds would also create a new district credit that officials hope investors will want to buy in order to diversify their portfolios.
The city’s GOs are backed by real property taxes and are currently rated A1 by Moody’s Investors Service and A-plus by Standard & Poor’s and Fitch Ratings.
District Treasurer Lasana Mack has said he and other finance officials think income tax bonds would save the district money and grab higher ratings.