HomeMy WebLinkAboutR-1971-06
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RESOLUTION NO. 71- 06
WHEREAS, Senate Bill 630 proposes the creation of a Texas
Bond Bank which would intend to buy all bonds issued by a Texas
Political Subdivision and in turn issue bonds secured by the
collective issues purchased and charge an interest rate to the
municipality of an additional quarter of 1% for this service;
and
WHEREAS, the bands issued by the State would not be
general obligation bonds of the State, and consequently would
be no better than the collective credits purchased by the
State; and
WHEREAS, unquestionably this would penalize political
subdivisions. such as the City of La Porte for the benefit of
political subdivisions which have not established a good
marketable credit recognition; and
WHEREAS, the City Commission of the City of La Porte
deems the program envisioned by Senate Bill 630 to be of
doubtful value and without merit to cities such as the City
of La Porte, and potentially damaging to the credit of the
State of Texas:
NOW, THEREFORE, BE 'IT RESOLVED BY THE CITY OF LA PORTE,
TEXAS:
That Senate Bill 630, creating a public agency of the
State of Texas to be known as the State of Texas Municipal
Bond Bank is without merit; that the plan of operation described
in the Bill is not beneficial to the citizens of the City of
La Porte; and that the City Commission of the City of La Porte
opposes Senate Bill 630, and any other bill embodying its
principles.
PASSED AND APPROVED, this 3rd day of May, 1971.
By
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'C~ Y~r'k~
APPROVED: -d.
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City Attorney