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RESOLUTION 84-4 • <br />f <br />i ~ CONCERNING BANKING INSTITUTIONS <br />• WHEREAS, the governing bodies of municipalities within the <br />State of Texas are custodians of the revenues derived from taxing <br />of their citizens and their taxpayers, and <br />WHEREAS, our recent experience with rampant inflation has <br />reemphasized the need for good money management to combat the <br />devastating effects of such inflation, and <br />WHEREAS, the need and demand to maximize the return on its <br />cash deposits is frequently critical to the balancing of the <br />budget and maintaining the financial stability of the <br />municipality, and <br />WHEREAS, by the use of the vehicle of bank holding <br />companies branch banking is an accomplished fact in the State of <br />Texas, thus further reducing the number of independent banks <br />• within any given municipality, and <br />WHEREAS, the legislature of the State of Texas has over the <br />years by its legislative acts determined the boundaries, rules and <br />limitations upon the kinds and places of depositories of the <br />municipal funds, and . <br />WHEREAS, such statutes have from time to time been amended <br />to meet the ongoing needs of the municipalities and its taxpayers, <br />and <br />WHEREAS, Article 2559 V.A.C.S. as amended in 1971, now <br />provides that a city that has two or more banking institutions <br />doing business within a city shall receive and consider <br />applications to become a depository of said municipality only from <br />such banks within the city, and <br />• WHEREAS, since the legislative adoption of this restrictive <br />proviso in 1971, there has been, and will be in the <br />