HomeMy WebLinkAboutR-1984-04
~ RESOLUTION 84-4 4It
CONCERNING BANKING INSTITUTIONS
WHEREAS, the governing bodies of municipalities within the
4it State of Texas are custodians of the revenues derived from taxing
of their citizens and their taxpayers, and
WHEREAS, our recent experience with rampant inflation has
reemphasized the need for good money management to combat the
devastating effects of such inflation, and
WHEREAS, the need and demand to maximize the return on its
.
cash deposits is frequently critical to the balancing of the
bUdget and maintaining the financial stability of the
municipality, and
WHEREAS, by the use of the vehicle of bank holding
companies branch banking is an accomplished fact in the State of
. Texas, thus further reducing the number of independent banks
within any given municipality, and
WHEREAS, the legislature of the State
years by its legislative acts determined the
limitations upon the kinds and places of
municipal funds, and
of Texas has over
boundaries, rules
depositories of
the
and
the
WHEREAS, such statutes have from time to time been amended
to meet the ongoing needs of the municipalities and its taxpayers,
and
WHEREAS, Article 2559 V.A.C.S. as amended in 1971, now
provides that a city that has two or more banking institutions
..e doing business within a city shall receive and consider
. \
applications to become a depository of said municipality only from
such banks within the city, and
WHEREAS, since the legislative adoption of this restrictive
proviso in 1971, there has been, and will be in the
.
.
future, instances where a municipality may not receive an
application from two or more banks located within the city to
accept the funds of such municipality on any terms, thus making it
impossible for such municipality to comply with the present law,
e and
WHEREAS, the end result of the application
restrictive statutory provisions is to reduce municipal
thus penalizing the citizens and taxpayers of the State
and
of such
revenues,
of Texas,
WHEREAS, to insure a more competitive procedure and to give
the citizens and taxpayers a better return of their tax monies,
the proviso and restriction of Article 2559, which limits the
right of a city having two or more banking institutions within the
city from having a depository other than one or two of such banks
should be amended or, in the alternative, repealed, now therefore.
~ BE IT RESOLVED by the Harris County Mayors and Councils
Association and the Mayor and Council of the City of La Porte,
duly assembled that to rekindle and reinstate the competitive
bidding for the rights of a bank to be a municipal depository, the
following portion of Article 2559 should be amended by repealing:
". . . provided, however, that if any city has
two or more banking institutions doing business
within the city, the city shall consider bids
and applications from only those institutions."
PASSED AND APPROVED by the Mayor and City Council of the City, of
La Porte, this the I ~ of April, 1984.
,
APPROVED
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