HomeMy WebLinkAboutR2003-041A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF DENTON RELATING TO
THE ISSUANCE OF BONDS BY NORTH TEXAS HIGHER EDUCATION AUTHORITY,
INC.; APPROVING THE ISSUANCE OF SUCH BONDS AND THE USE OF THE
PROCEEDS OF SUCH BONDS; AND MAKING CERTAIN FINDINGS IN CONNECTION
THEREWITH; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the North Texas Higher Education Authority, Inc. (the "Authority") was
established as a non-profit corporation, pursuant to the Texas Non-Profit Corporation Act, for the
purpose of furthering educational opportunities of students by providing funds for the acquisition
of student loans; and
WHEREAS, the City of Denton and the City of Arlington have requested the Authority
to exercise the powers provided for in Section 53.47 of the Texas Education Code, as amended,
for and on their behalf; and
WHEREAS, pursuant to such request, the Authority has issued student loan revenue
bonds or otherwise borrowed money to obta'm funds to purchase student loans which are
guaranteed under the provisions of the Higher Education Act of 1965, as amended, and
additional funds are now needed to continue the program; and
WHEREAS, pursuant to Section 147(0 of the Interal Revenue Code of 1986, as
amended, a public hearing was conducted, following reasonable public notice, with respect to the
issuance of those student loan revenue bonds of the Authority which are tax-exempt; and
WlqEREAS, the Authority requests that the City approve the Authority's issuance of
bonds, to be issued in one or more series, as needed, to augment the Authority's student loan
program; and
WHEREAS, the City wishes to approve the issuance of the Authority's bonds provided
that City is not responsible in any way for such bonds, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION 1. That the City Council of the City of Denton, Texas, hereby grants its
approval to the North Texas Higher Education Authority, Inc. to issue and deliver (1) taxable
student loan revenue bonds or other obligations, in one or more series in an amount not to exceed
150,000,000, during the fourth quarter of calendar year 2003, and (2) student loan revenue
bonds or other obligations, in one ore more series in an amount not to exceed $45,000,000,
during the first six months of calendar year 2004, for the purposes of obt~ming funds to purchase
student or parent loan notes which are guaranteed under the Higher Education Act of 1965, as
amended; refunding outstanding obligations of the Authority, setting aside the amount the
Authority determines is necessary for a reserve and for operating costs, and paying the cost of
issuing such obligations in accordance with the laws of the State of Texas, including Chapter 53,
Texas Education Code.
SECTION 2. The City of Denton, Texas requests that the Authority exercise the powers
enumerated and provided for in Section 53.47, Texas Education Code, as amended, and that such
non-profit corporation shall, in this connection, exercise such powers for and on behalf of the
City of Denton, Texas and the State of Texas, as contemplated by Section 53.47(e), (f) and (g),
Texas Education Code, as amended.
SECTION 3. The City of Denton, Texas does not agree to assume any responsibility in
connection with the administration of the Authority's student loan program. Sole responsibility
for the administration of the Authority's student loan program is assumed by the Authority.
SECTION 4. Further, it is recognized by the City of Denton, Texas that the instruments
which authorize the issuance of bonds, notes, or obligations by the Authority will specifically
state that the City of Denton, Texas is not obligated to pay the principal of or interest on the
bonds, notes, or obligations proposed to be issued by the Authority. Nothing in this resolution
shall be construed as an indication by the City of Denton, Texas that it will pay or provide for the
payment of any obligations of said Authority whether theretofore or hereafter incurred; and in
this connection, attention is called to the Constitution of the State of Texas, wherein it is
provided that a city may incur no indebtedness without having made provisions for its payment,
and the City Council of the City of Denton, Texas hereby specifically refuses to set aside any
present or future funds, assets or money for the payment of any indebtedness or obligation ofthe
Authority.
SECTION 5. It is hereby officially found and determined that the meeting at which this
resolution is passed is open to the public, as required by law, and that public notice of the time,
place and purpose of said meeting was posted, as required by law.
SECTION 6. This resolution shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the /¢~ dayof ~'j~4~.d/JT~., ,2003.
EULINE BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
HERBER~ORNEY
BY: (il O'
Page2 of 2
CERTIFICATE OF SECRETARY
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
I, the undersigned, Secretary of the City of Denton, Texas do hereby certify the
following:
1. On the /¢L~ day of ~/~-~,~.,t~. , 2003, the City Council
of the City of Denton, Texas convened in regular session at its regular meeting place in City
Hall, with the duly constituted members of the City Council being as follows:
Euline Brock
Mark Burroughs
Raymond Redmon
Pete Kamp
Jack Thomson
Perry McNeil
Bob Montgomery
Mayor
Council Member and Mayor Pro Tem
Council Member, District 1
Council Member, District 2
Council Member, District 3
Council Member, District 4
Council Member, At Large
and all Council Members were present at said meeting, except the following:
resolution, entitled:
Among other business considered at said meeting, thc attached
A RESOLUTION BY THE CITY COI_rNCIL OF THE
CITY OF DENTON RELATING TO THE
ISSUANCE OF BONDS BY THE
NORTH TEXAS HIGHER EDUCATION AUTHORITY, INC.;
APPROVING THE ISSUANCE OF SUCH BONDS AND
THE USE OF THE PROCEEDS OF SUCH BONDS; AND
MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH
was introduced and submitted to the Council for approval and passage. After
presentation ~and due consideration of the resolution, and upon a motion by
D,/,~J ~~.] , seconded by ~/-)g~ ~/r/~t9 , the
r~s[]~tion was duly pa~sed and adopted by the City Council, to b~ ~ffe-ctt[ve immediately,
by the following vote:
voted"For" t~ voted"Against" /O abstained
all as stated in the official Minutes of the City Council for the meet'rog held on the
aforesaid date.
2. The attached resolution is a tree and correct copy of the original
resolution on file in the official records of the City of Denton, Texas. The duly qualified
and acting members of the City Council of the City of Denton, Texas, on the date of the
aforesaid Council meeting are those persons above named; and according to the records
of my office, each member of the City Council was given advance notice of the time,
place and propose of the meeting, and that said meeting and deliberation of the aforesaid
public business was open to the public, and written notice of said meeting, including the
subject of the entitled resolution, was posted and given in advance thereof, in compliance
with the provisions of Chapter 551, Texas Government Code.
IN WITNESS THEREOF, I h. ave hereunto, signed rqy name officially and
affixed the seal of said City, thisthe /~.~ dayof ~/~')'/~ ,2003.
len~fer Wa~ters-, City Secretary
City of Denton, Texas
Seal)
Page 2 of 2