1981-10-07 Regular Meeting - Laserfiche WebLink

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• C~ • Minutes, Regular Meeting, La Porte City Council October 7, 1981, Page 4 Ayes: Councilpersons Malone, Longley, Faris, Kibodeaux, Simons, Gay, Skelton, Westergren and Mayor Meza Nays: None 10. Council considered a resolution read by the City Attorney authorizing the City of La Porte to borrow the sum of forty- three thousand, seven hundred, sixty dollars and thirty-six cents, to be evidenced by a tax anticipation note, payable out of current taxes collected during the current fiscal year. A motion was made by Councilperson Faris to pass and approve Resolution No. 81-23 as read y the City Attorney. Question from the floor: Mayor, I would like to ask a ques- tion. I see that you are borrowing this money from the Bay- shore National Bank. Aren't you on the board. of directors of that bank, and isn't Mr. Askins on that board? Meza: Yes, sir. • Askins: Mr. Thomas, there is a state law that provides that an elected official of the City, School District or Water District may participate in the vote in a transaction such as this if they don't own more than 5 percent of the out- standing stock of the bank, which the Mayor does not own that amount of the stock and of course I am the legal advisor, I have no vote here at all. Thomas: I still think it is a conflict of interest. Mayor: You have heard the motion and comments. Do I have a second? Westergren: I second the motion. Mayor: Is there any further discussion? Simons: On this note, Mr. Mayor., can't we pay it off now? Since we have $200,000 in the Contingency Fund, why not? Meza: I'm sure we can if that's the wishes of the. Council. I think our financial advisor has advised us this note would put ~s in a better position. Am I correct, Jim, that we have been so advised by our financial advisor? Hudgens: Well, at 9 percent interest, that's pretty good • interest. The money is there if the Council wishes to pay for it. The intent was, when we did this thing last year, was to renew this thing every year and. to finance it through that period.