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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 . **************************************************************** 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 C :1:30 :15