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