HomeMy WebLinkAboutIR 7103 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7103
04 fQRT� To the Mayor and Members of the City Council March 25 , 1986
us
X 4. Subject: TEXAS HIGHER EDUCATION AUTHORITY, INC.
tell
In November 1985, the City of University Park created a nonprofit
corporation, Texas Higher Education Authority, Inc. , in accordance with
provisions of the Texas Education Code. This corporation was organized
for the purpose of aiding nonprofit institutions of higher education
located within the City of University Park and other municipalities, and
among others, has the power to issue revenue bonds and use the proceeds
to finance the cost of facilities for higher education institutions.
In December 1985 the Authority issued $175,000,000 of educational
facilities revenue bonds. The proceeds are now available for the
Authority to loan to nonprofit institutions of higher education in the
State of Texas. In order for such institutions to participate in this
program, the governing body of the City in which an institution is
located must authorize Texas Higher Education Authority, Inc. to act on
its behalf.
Texas Wesleyan College of Fort Worth is requesting that the City adopt a
resolution which would enable them-to participate in this program.
$5,000,000 has been reserved for the use of TWC if the City Council
desires to join with other Texas cities in designating Texas Higher
Education Authority, Inc. to act on its behalf.
The resolution and supporting documentation submitted by TWC has been
reviewed by the City's Bond Counsel who recommend that, should the
Council desire to act upon the resolution, certain amendments be
incorporated to better define the City's position. The recommended
amendments address the following areas:
1. Appointment of Board - the Articles of Incorporation of Texas Higher
Education Authority, Inc. provide for a board of directors of not less
than seven nor more than eleven, as fixed by the bylaws of the
Corporation, appointed by University Park. The initial seven directors
have been appointed. Under provisions of the Texas Education Code any
cities entering into the type of arrangement herein described may appoint
an equal number of directors or may mutually agree upon another method of
board appointments. If the City Council wishes to participate in the
Texas Higher Education Authority with the board as currently established,
it is recommended that the resolution make a specific statement on this
point.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7103--P2
To the Mayor and Members of the City Council March 25, 1986
�rtxa�.
Subject: TEXAS HIGHER EDUCATION AUTHORITY , INC.
2. The Indenture of Trust covering the bonds issued by the Authority
provides that any participating higher education authority applying for a
loan of the board proceeds must first be accepted by the insurer of the
bonds. It is recommended the resolution be amended to include a
statement providing that if for any reason TWC is not accepted by the
bond insurer, the City of Fort Worth's resolution shall be voided and the
City shall not be considered a participant in the Texas Higher Education
Authority.
If it is the Council's desire to act upon the request of Texas Wesleyan
College and authorize participation in the Texas Higher Education
Authority, the appropriate resolution will be placed on the Council
agenda for April 1, 1986.
uglas Harman
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS