Laserfiche WebLink
<br />115 <br /> <br />STATEMENT OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS <br />CONCERNING THE REMOVAL OF CTHEA ROARD MEMBERS <br />NOVEMBER 2, 1987 <br /> <br />The San Marcos City Council has voted unanimously to remove <br />members of the Central Texas Higher Education Authority (CTHEA) <br />Board. This action was taken <br /> <br />after nearly five months of effort <br /> <br />by <br /> <br />the <br /> <br />City Council to <br /> <br />secure <br /> <br />the <br /> <br />full <br /> <br />cooperation <br /> <br />of <br /> <br />the board to <br /> <br />determine whether <br /> <br />or <br /> <br />not <br /> <br />the citizens of San Marcos are entitled <br /> <br />to <br /> <br />CTHEA's surplus funds. <br /> <br />CTH EA <br /> <br />was <br /> <br />created by the City <br /> <br />of San Marcos in 1977 to purchase <br /> <br />guaranteed student <br /> <br />loans <br /> <br />from <br /> <br />various <br /> <br />financial <br /> <br />ins ti tu tions <br /> <br />with <br /> <br />monies <br /> <br />derived <br /> <br />from tax-exempt bonds <br /> <br />issued by <br /> <br />the <br /> <br />Authority. <br /> <br />As <br /> <br />CTHEA IS <br /> <br />sponsor, <br /> <br />the <br /> <br />City, <br /> <br />through <br /> <br />the <br /> <br />City <br /> <br />Council, <br /> <br />is <br /> <br />responsible for appointing <br /> <br />CTHEA <br /> <br />Board <br /> <br />Members <br /> <br />and <br /> <br />removing <br /> <br />them, <br /> <br />if that becomes <br /> <br />necessary. <br /> <br />CTHEA <br /> <br />was <br /> <br />crea ted <br /> <br />with <br /> <br />the <br /> <br />written <br /> <br />understanding, found in the Authority's articles of incorporation <br />and by-laws, that the Ci ty would be the bene fic iary of the <br />Authority's surplus funds. The federal tax law amendments of <br /> <br />1986 <br /> <br />threa ten <br /> <br />this <br /> <br />beneficiary <br /> <br />relationship <br /> <br />and have led to <br /> <br />the <br /> <br />present on-going research into the program's activities. <br /> <br />Throughout <br /> <br />this <br /> <br />research <br /> <br />period, <br /> <br />the <br /> <br />City <br /> <br />Council <br /> <br />has <br /> <br />been <br /> <br />motivated <br /> <br />by the duty to <br /> <br />act <br /> <br />in <br /> <br />the best interest of the entire San <br /> <br />Marcos community and by <br /> <br />the <br /> <br />desire <br /> <br />to <br /> <br />find <br /> <br />some <br /> <br />relief <br /> <br />for <br /> <br />the <br /> <br />enormous <br /> <br />pressures <br /> <br />felt by <br /> <br />local <br /> <br />taxpayers, <br /> <br />caused <br /> <br />in <br /> <br />part, <br /> <br />by <br /> <br />the considerable amount of tax- exempt <br /> <br />properties <br /> <br />found in <br /> <br />San <br />