HomeMy WebLinkAboutORD 358 - ORD athorizing the Borrowing for Current Operating Expenses
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ORDINANCE '3rJ8
AN ORDINANCE AUTHORIZING THE BORROWING OF $20,000 TO PAY NECESSARY
CURRENT OPERATTNG EXPENSES AND TO CARRY ON ESSENTIAL FUNCTIONS OF
GOVERNMENT; AUTHORIZING THE EXECUTION OF THE NOTES OF THE CITY TO
EVIDENCE SAID OBLIGATION; AND MAKING PRGVISION FOR THE PAYMENT OF
SAID NOTES.
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WHEREAS, the cash balance in the general fund of the City of West Univer-
si ty Place, Texas, has been substantially depleted and there are not sufficient
funds on hand to pay the current operating expenses of the city and to carry
on the essential functions of the government of the city; and
WHEREAS, the City Cormnission has heretofore adopted an ordinm ce levy-
ing taxes for the current year at a total rate for general purposes of tL..Q2
on each $100 valuation of taxable property within said city but substantially
none of s aid taxes have been collected; and
WHEREAS, the City Cormnission has determined and hereby finds as a fact
that the sums reasonably anticipated to be col1ected from said taxes during
the remainder of the current fiscal year for the account of the city's general
fund is ~876.54 and additional funds from other sources are reasonably
expected to come in the general fund of said city during the current fiscal
year; and
WHEREAS, the City Commission of said city has heretofore duly adopted
the annual budget of the city for the current fiscal year, which said budget
indludes items which have come due and will come due prior to the time that
is anticipated that adequate funds to pay same wil1 have been received into
the city's general fund and it is therefore necessary and desirable to borrow
the sum of $20,000 mID. order to pay said budgeted items of expenses necessary
to the operation of the essential functions of the govermnent. of said city; and
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WHEREAS, the City Commission has heretofore adopted an ordinance making
an appropriation of funds to each of the several departments' of government and
the expenses to be paid out of such borrowed funds come within the limits of
said appropriation and fully comply with the terms and provisions of said
appropriation ordinance; and
WHEREAS, the City Commission is authorized by Article xrv, Section 20,
of the City Charter to issue promissory notes in anticipation of the collection
of taxes: Therefore
BE IT ORDAINED by the City Commission of the City of West University Place,
Taxas :
1. Th~t bhere shall be borrowed from the City National Bank of Houston,
Houston, Texas, the sum of $20,000 for the purpose of paying the current operat.-
ing expenses of the City of West University Place, Texas, and to carry on the
essential functions of the govermnent of said city in keeping with the annual
budget for the current year heretofore duly adopted by the City Connnission.
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2. That $10,000 of said sum shall be borrowed immediately and the
remaining $10,000 shall be borrowed approximately thirty d~ s from the date
of the adoption of this ordinance.
3. That the Mayor and City Secreta:ry are hereby authorized to execute
for and on behalf of the City of West University Place, Texas, two promissory
notes of said city in tJ:e principal sum of $10,000 each, bearing interest at
the rate of 2% per annum from date until finally paid, maturing on or before
December 31, 1947 and payable to the City National Bank of Houston, Houston,
Texas, such promissory notes to be executed in the u:s.ual and customary form.
4. That for the purpose of paying the principal of, and interest on,
said notes as they severally come due, there is hereby appropriated, allotted,
and set aside out of the taxes heretofore levied for the current year and out
pf tg.e other f1lllds coming into the general fund of the city during the current
year the s1I!lI of $20,066, or so much thereof as may be necessary, and to secure
the payment of said notes, both as to principal and interest as they severally
become due, there is hereby created and established a firstlien on all pro-
ceeds of taxes heretofore levied for the general fimd of said city and said
sums so collected shall be applied to the pcvment of principal of, and interest
on, said notes.
ADOPI'ED this 27th day of October, 1947.
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'MAYOR
ATTEST:
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