CC Resolution No. 999 1778
RESOLUTION NO. 999
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, ESTABLISHING A POLICY OF MAINTAINING A MINIMUM
FUND BALANCE IN THE GENERAL OBLIGATION INTEREST AND
SINKING FUND; AND PROVIDING FOR THE EFFECTIVE DATE
THEREOF .
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WHEREAS, the General Obligation Interest and Sinking Fund is
a special account set up to hold payments that will be coming due
on the bonded indebtedness of the City of Baytown; and
WHEREAS, the size of this fund balance is regarded by bond
rating agencies as one indication of the financial integrity of a
municipality, and maintaining too low a fund balance can result
in low bond ratings and higher interest rates that must be paid
by a municipality; and
WHEREAS, it is the desire of the City Council of the City of
Baytown to maintain a balance in the General Obligation Interest
and Sinking Fund of sufficient amount to reflect the prudence
with which the City Council and the City Administration manage
the City of Baytown budget; NOW THEREFORE,
BE IT RESOLVED BY CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: That it is the intent of the City Council of the
City of Baytown that the balance of the General Obligation
Interest and Sinking Fund shall be at least SEVEN HUNDRED
THOUSAND ($700, 000.00) DOLLARS by September 30, 1988.
Section 2 : It is the intent and shall be the policy of the
City Council of the City of Baytown that for the fiscal year
ending September 30, 1989, the balance in the General Obligation
Interest and Sinking Fund shall be at least ONE MILLION TWO
HUNDRED THOUSAND AND N0/100 ($1, 200, 000. 00) DOLLARS. For
subsequent years, it shall be the policy of the City Council that
the balance in the General Obligation Interest and Sinking Fund
shall be a minimum of five per cent of the total City of Baytown
budget. Such minimum fund balance shall be considered as a
reserve and shall not be reduced without approval of City Council
of the City of Baytown.
Section 3: This resolution shall take effect immediately
from and after its passage.
1779
INTRODUCED, READ and PASSED by the affirmative vote of the
City Council of the City of Baytown, this the 22nd day of
October , 1987.
�
ETT O. HUTTO, Mayor
ATTEST:
EILEEN P. HALL, City Clerk
'RANDALL B. STRONG, Cit torney
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