1988-072CITY OF SOUTHLAKE, TEXAS
RESOLUTION NO. 88-72
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SOUTHLAKE, TEXAS, AUTHORIZING AND
APPROVING THE OBTAINING OF A SHORT-TERM LOAN
FROM TEXAS NATIONAL BANK, SOUTHLAKE, TEXAS,
IN AN AMOUNT NOT TO EXCEED $175,000, TO BE
USED TO PAY CURRENT ORDINARY EXPENDITURES OF
THE CITY; DECLARING AN EFFECTIVE DATE
WHEREAS, the current fiscal year of the City of
Southlake, Texas (the "City"), commenced on October 1, 1987 and
ends on September 30, 1988; and
WHEREAS, the City has heretofore levied an ad valorem
property tax against all of the taxable property within the
City for the tax year 1987 sufficient to meet all of the City's
operating and maintenance needs, including the payments on all
outstanding debt, for the fiscal year 1987-1988 described
above; and
WHEREAS, it is reasonably contemplated that the City will
receive tax and other current revenues sufficient to pay the
City's current obligations within said fiscal year; and
WHEREAS, due to periodic shortfalls in the cash flow from
the current revenues of the City, the City Council of the City
hereby finds and determines that it is necessary and in the
best interest of the City and its citizens to obtain a
short-term loan in an amount not to exceed One Hundred
Seventy -Five Thousand Dollars ($175,000), to be used to pay
current ordinary expenditures of the City; and
WHEREAS, the City is authorized by Section 9.34 of the
Home -Rule Charter to borrow money in anticipation of the
collection of the property tax for the same year whether levied
or to be levied, provided that the loan is retired by the end
of the budget year in which it is entered into;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SOUTHLAKE, TEXAS:
Section 1. That all of the above premises are found to
be true and correct and are incorporated into the body of this
Resolution as if copied in their entirety.
Section 2. That the City Manager (or Acting City
Manager) is hereby authorized and directed to obtain on behalf
of the City a short-term loan from Texas National Bank,
Southlake, Texas, in the form of the Note attached hereto.
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Section 3. The Note which is approved herein is hereby
designated as a "Qualified Tax Exempt Obligation" for purposes
of Section 265 of the Internal Revenue Code of 1986, as
amended. Neither the City nor any of its subordinate entities,
if any, reasonably expect to issue in excess of $10,000,000
aggregate amount of Qualified Tax Exempt Obligations during the
calendar year in which the Note is given, and the City hereby
covenants not to designate more than $10,000,000 aggregate
amount of Qualified Tax Exempt Obligations during this calendar
year in which the Note is given.
Section 4. That this Resolution shall take effect from
and after its passage.
PASSED AND APPROVED this
ATTEST:
41 Xa4 1,
City Secretary
City of Southlake, T
SEAL]
APPROVED:
City Attorney
City of Southlake, Texas
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f
Ma:or 6hn i H. Westerholm
Ciiy f Southlake, Texas
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John F. Boyle, Jr.
214) 754-8611
Hutchison Boyle Brooks & Dransfield
A PROFESSIONAL CORPORATION
ATTORNEYS AT LAW
3900 FIRST CITY CENTER
DALLAS, TEXAS 75201-4622
214) 754-8600
August 16, 1988
Honorable Johnny Westerholm
Members of the City Council
Acting City Manager William D. LeGrand
City of Southlake
667 North Carroll Avenue
Southlake, Texas 76092
AUSTIN OFFICE:
1000 SAN JACINTO CENTER TOWN LAKE
AUSTIN, TEXAS 78701-4039
512) 477-4121
DALLAS TELECOPY NUMBER
214) 754-0840
a*rs
A U U 16 10,88
OFFICE O
CITY SECRETARY
Re: Resolution No. 88-72 Authorizing the Obtaining
of a Short -Term Loan from Texas National Bank
Dear Mayor Westerholm, Members of the Council and Acting City
Manager LeGrand:
Since our transmittal to you last week of the
referenced Resolution, we have been provided with the form of
Note, which the bank proposes for execution. Therefore, we
have revised the Resolution to provide approval of the actual
Note in the form attached to the Resolution. It is our
opinion that the form of the Note attached to the Resolution
complies with the requirements of State law relating to the
borrowing of money by a city.
A new paragraph 3 was added to the Resolution in order
to allow the bank a greater interest expense deduction for
carrying the loan than would otherwise be allowed under the
Internal Revenue Code had the loan not be designated a
qualified tax exempt obligation."
If you should have any questions or comments, please do
not hesitate to call me.
Sincerely,
HUTCHISON BOYLE BR00_ & DRANSFIELD
n F. Boyle, J 7
JFB/tic/kb
Enclosure
25/1538T
cc: Mrs. Sandy LeGrand
City Secretary