SPECIAL MEETING

CITY COMMISSION                                                                                                                                                  HARLINGEN, TEXAS     
                                                                                                 
                                                                                                   APRIL 14, 2004  2004

A Special Meeting of the Harlingen Elective Commission was held on Wednesday, April 14, 2004 at 11:30 a.m. in Town Hall, City Hall, 118 E. Tyler Street, Harlingen, Texas. Those in attendance were:

Mayor and City Commission
C. Connie de la Garza
J. J. Gonzalez
Jay Meade
Frank Puente, Jr.
Chris Boswell
Rick Rodriguez

Staff Present:
Tommy Gonzalez City Manager
Gabriel Gonzalez Asst. City Manager
Sylvia R. Trevino City Secretary

Other Interested Parties:
Ken Mitchell Director of Finance
Roel Gutierrez
Ann Berger Entrekin First Southwest (financial advisor)

Mayor de la Garza called the meeting to order and stated that notice of the meeting had been duly posted according to law.

DISCUSSION HELD WITH FIRST SOUTHWEST REGARDING BOND RATING AGENCIES AND OPTIONS

Ann Berger Entrekin, financial advisor with First Southwest, explained the City of Harlingen has always had both Standard and Poor’s and Moody’s as their bond rating companies. Efforts to get a better rating from Moody’s have been unsuccessful. The purpose of this meeting is to discuss having a third company, Fitch Investor Services, do our bond ratings.

She indicated that the City of Brownsville gets rated by all three companies. Ms. Entrekin stated that Fitch has a shadow rating process whereby the benefit is only to the issuer for an approximate cost of $4,000. If Fitch produces a better rating to the City, then for an additional $3,000, the rating gets published. The City has the opportunity to have three rating agencies or keep Standard and Poor’s and drop Moody’s. There will be no negative impact to the City.

Ms. Entrekin commented that the City of McAllen was also considering going with Fitch for their rating. She stated that Moody’s only looks at per capita wealth. Somehow, they look at all cities along the border differently than other cities. As the City of Harlingen continues to grow, it would be very beneficial to the City to have superior ratings from whatever companies it chooses to retain.

Mayor de la Garza stated that based on the information that has been provided by Ms. Entrekin, it would be to the citizens’ advantage to try to obtain a better rating. Fitch Investor Services is considered to be one of the top three rating agencies.

It was the consensus of the Commission to direct the Finance Director, through the City Manager, to proceed to do what is necessary to obtain a shadow rating from Fitch.

Ms. Entrekin stated that since McAllen is considering doing the same, it is possible that Fitch would consider doing an on-site visit to both cities.

BOARD APPOINTMENTS

Commissioner Gonzalez appointed Luis Perez to the Zoning Board of Adjustments (replaces Robert Leftwich whose term expired).

Commissioner Puente appointed Tito Resendez to the Planning and Zoning Commission to fill the unexpired term of Raul Resendez.

Commissioner Meade made a motion to approve both appointments. Commissioner Gonzalez seconded the motion and it carried unanimously.

There being no further business, the meeting adjourned at 11:50 a.m.


                                                                                                                                         ________________________
                                                                                                                                         C. Connie de la Garza, Mayor


Attest:

__________________________
Sylvia R. Trevino, City Secretary

City Secretary     Minutes