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1991 12 02 CC Minutes, SpecialMINUTES OF THE SPECIAL SESSION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN December 2, 1991 The City Council of the City of Baytown, Texas, met in special session on Monday, December 2, 1991, at 4:15 p.m. in the Council Chamber of the Baytown City Hall with the following attendance: Jimmy Johnson Ray Swofford Pete C. Alfaro Bobby J. Credille Rolland J. Pruett Emmett O. Hutto Bobby Rountree Norman Dykes Ignacio Ramirez Lynda Kilgore Absent: Mario Delgado Councilman Councilman Councilman Councilman Councilman Mayor City Manager Assistant City Manager City Attorney Deputy City Clerk Councilman The meeting was called to order with a quorum present, after which the following business was conducted: Consider Proposed Resolution Approving Issuance of Single Family Mortgage Revenue Bonds by the Southeast Texas Housing Finance Corporation Mr. Bill Eiland with the Southeast Texas Housing Finance Corporation presented a summary to Council of the three separate bond programs that the Corporation intends to implement in the coming months. The first program is the Single Family Mortgage Purchase Program. This will involve the issuance by the Corporation of a series of its single family mortgage revenue bonds in an aggregate principal amount not to exceed $30 million and two series of its single family mortgage revenue refunding bonds in aggregate principal amount not to exceed $7,950,000 and $12,790,000, respectively. Funds derived from the sale of these bonds will be used to provide below market interest rate mortgage loans to first time home buyers for owner - occupied residences located within the boundaries of the corporation's sponsoring governmental bodies, including this jurisdiction. PQ 911202 -2 Minutes of the Special Session - Dec. 2, 1991 The second program will entail the issuance by the Corporation of several series of its revenue refunding bonds in aggregate principal amounts not to exceed $80 million, $35 million and $40 million to refinance portions of its 1985, 1987 and 1988 single family mortgage bond issues, respectively. The refunding bonds to be issued by the Corporation in connection with this program will bear interest at much lower rates than the rates borne by the bonds to be refinanced. This program is expected to generate a substantial up -front interest cost savings for the Corporation. The Corporation proposed to utilize the funds generated by this savings to implement various programs designed to promote affordable housing for low and moderate income families within the boundaries of the Corporation's sponsoring political bodies, including this jurisdiction. The third program will involve the issuance by the Corporation of up to $100 million in aggregate original principal amount of its bonds, the purchase by the Corporation with the proceeds of the bonds of mortgage pass- through certificates guaranteed by the Government National Mortgage Association having a principal amount at least equal to 101% of the principal amount of the bonds and the pledge of these pass- through certificates to the payment of the Bonds. Because the bonds will be fully secured by GNMA pass- through certificates, which are fully guaranteed by the United States government, the bonds will involve virtually no credit risk to bondholders. Like the second program, the goal of this program also is to raise funds for various programs designed to promote affordable housing for low and moderate income families within the boundaries of the Corporation's sponsoring governmental bodies. The Corporation needs the cooperation of the City of Baytown to implement these programs. The Corporation would require approval of certain of the bonds for purposes of the federal income tax laws and the delivery of certain documents to the Texas Attorney General. Under the federal income tax laws, the bonds that the Corporation proposes to issue in connection with the first program described must be approved on behalf of this governmental unit before funds from those bonds my be used to benefit the residents of this jurisdiction. None of the above bonds will be issued until they have been approved by a legal opinion of the Texas Attorney General as to their legality and validity. Councilman Alfaro inquired as to how much of the money in the first program could be used in Baytown. Mr. Eiland responded that technically, all of it could be used in Baytown, as it is done on a "first come, first serve basis." The Corporation does not allocate a certain amount of money to be used by each city represented by the Corporation. 911202 -3 Minutes of the Special Session - Dec. 2, 1991 Councilman Credille inquired if there were records indicating how much money had been kept in Baytown in the past from previous sales. Mr. Eiland referred council to a report showing these figures for the last few years. Councilman Johnson made a motion to approve the resolution. Councilman Alfaro seconded the motion. The vote follows: Ayes: Council members Johnson, Swofford, Alfaro, Credille and Pruett Mayor Hutto Nays: None Resolution No. 1133 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, APPROVING ISSUANCE OF SINGLE FAMILY MORTGAGE REVENUE BONDS AND REVENUE REFUNDING BONDS BY THE SOUTHEAST TEXAS HOUSING FINANCE CORPORATION. City Manager's Report Low Income Housing Tax Credit Apartments - At the last council meeting council inquired about the low income tax credit apartments. The city manager talked to a representative of the developer and discussed some of the concerns of council. They are taking a very careful look at this and will not do anything to adversely impact the remaining property or the mall area property. The only way to get the tax breaks is to rent to those individuals meeting the low income guidelines for this area. Under this program the guidelines will be established by the owner's of the apartment. They will not be choosing from a waiting list as the housing authority does. They will set their own criteria, interview prospective residents and control those who qualify for this program. There are enough safeguards built in to the agreement to insure a good operation. Some mall employees should be able to qualify for the program. Americans With Disabilities Act - Examples of job descriptions for Americans With Disabilities that were compiled in conjunction with other cities have been received. They will be reviewed by various department heads to make sure they meet our criteria. 911202 -4 Minutes of the Special Session - Dec. 2, 1991 Community Rating System - A copy of our Community Rating System had been placed at the council places. Last year Council approved the administration to work on an application to reduce the home flood insurance rate. This was done and there was a percent decrease. This is a continuation of that. There is a possibility of another five percent premium improvement which would get us down to Class 8. This will be on the next agenda for your approval. Light at IH -10 and Garth - In response to an inquiry from Councilman Johnson regarding the light at IH -10 and Garth, the light was found to be out of sinc. It has now been repaired. Light at Garth and Scenic Dr. - In response to an inquiry from Councilman Alfaro, the City Manager reported that we have not yet received the parts for this light. Odor on Fortinberry - A point repair has been made at this location. Because of all the rain recently it has not been determined whether this problem has been corrected or not. Retirement Party - Invitations have been put at the council places for a retirement party for Fletcher Hickerson. Adjourn. There being no further business to be transacted, the meeting was adjourned. lam./ L nda Kilgore Deputy City Cler 3.2.45 MINUTES OF THE SPECIAL SESSION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN December 2, 1991 The City Council of the City of Baytown, Texas, met in special session on Monday, December 2, 1991, at 4:00 p.m. in the Conference Room of the Baytown City Hall with the following attendance: Jimmy Johnson Ray Swofford Pete C. Alfaro Bobby J. Credille Rolland J. Pruett Emmett O. Hutto Bobby Rountree Norman Dykes Ignacio Ramirez Lynda Kilgore Absent: Mario Delgado Councilman Councilman Councilman Councilman Councilman Mayor City Manager Assistant City Manager City Attorney Deputy City Clerk Councilman The meeting was called to order with a quorum present, after which the following business was conducted: Recess Into Executive Session to Discuss Pending Litigation a. Baytown Housing Finance Corporation Bonds. Mayor Hutto recessed the open meeting into executive session to discuss pending litigation. When the open meeting reconvened, Mayor Hutto announced that no action was necessary as a result of the executive session. Adjourn There being no further business to be transacted, the meeting was adjourned. nda Kilgore eputy City Cle 3.2.44