HomeMy WebLinkAboutResolution - 3844 - Notice Of Intent To Issue Certificates Of Obligation, WTP Improvements - 03_26_1992Resolution No. 3844
March 26, 1992
Item #20
A RESOLUTION by the City Council of the City of
Lubbock, Texas, approving and authorizing
publication of notice of intention to issue
certificates of obligation.
WHEREAS, the City Council of the City of Lubbock,
Texas, has determined that certificates of obligation should be
issued in accordance with the provisions of V.T.C.A., Local
Government Code, Subchapter C of Chapter 271, for the purpose
of paying contractual obligations to be incurred for (i)
constructing improvements and extensions to the City's
Wastewater Treatment System, to wit: one new activated sludge
treatment plant; headworks facilities, solids handling
facilities digester rehabilitation; administration maintenance
building, and (ii) professional services rendered in connection
therewith; and
WHEREAS, prior to the issuance of said certificates of
obligation, this Council is required to give notice of its
intention to issue the same in the manner and time provided by
law; now, therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK, TEXAS:
Section 1: That the City Secretary is hereby
authorized and directed to cause notice to be published of this
Council's intention to issue certificates of obligation in the
principal amount not to exceed $34,520,000 for the purpose of
paying contractual obligations to be incurred for (i)
constructing improvements and extensions to the City's
Wastewater Treatment System, to wit: one new activated sludge
treatment plant; headworks facilities, solids handling
facilities digester rehabilitation; administration maintenance
building, and (ii) professional services rendered in connection
therewith, such certificates to be payable from ad valorem
taxes and a lien on and a pledge of the net revenues of the
City's Sewer System. The notice hereby approved and authorized
to be given shall read substantially in the form and content of
Exhibit A hereto attached and incorporated herein by reference
as a part of this resolution for all purposes.
Section 2: That such notice shall be published once a
week for two consecutive weeks in a newspaper having general
circulation in the City of Lubbock, Texas, the date of the
first publication of such notice to be at least fifteen (15)
days prior to the date stated therein for the passage of the
ordinance authorizing the issuance of the certificates of
obligation.
PASSED AND APPROVED, this the 26th day of March, 1992.
ayor, Cit of Lubbock, Texas
B. C. McMinn
=city cretary
Ranette Boyd
(SEAL)
-2-
J L 0 9 E
9
eta
CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS §
§
COUNTY OF LUBBOCK §
§
CITY OF LUBBOCK §
I, the undersigned, City Secretary of the City of
Lubbock, Texas, DO HEREBY CERTIFY as follows:
1. That on the 26th day of March, 1992, the City
Council of the City of Lubbock, Texas, convened in regular
session at its regular meeting place in the City Hall of said
City; the duly constituted members of the Council being as
follows:
B. C. MCMINN
T. J. PATTERSON
BILL MALOY
JOAN BAKER
MAGGIE TREJO
M.J. ADERTON
14 1 x1fal 7
MAYOR PRO TEM
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
all of said persons were present at said meeting, except the
following: Gary Phillips, Resigned Among other
business considered at said meeting, the attached resolution
entitled:
"A RESOLUTION by the City Council of the City of
Lubbock, Texas, approving and authorizing
publication of notice of intention to issue
certificates of obligation."
was introduced and submitted to the Council for passage and
adoption. After presentation and due consideration of the
resolution, and upon a motion made by Councilmember
Joan Baker and seconded by Councilmember Maggie Trejo
the resolution was finally passed and adopted by the Council by
the following vote:
6 voted "For" 0 voted "Against" o _abstained
all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
2. That the attached resolution is a true and
correct copy of the original on file in the official records of
the City; the duly qualified and acting members of the City
Council of the City on the date of the aforesaid meeting are
those persons shown above and, according to the records of my
office, each member of the Council was given actual notice of
time, place and purpose of the meeting and had actual notice
that the matter would be considered; 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 Article
6252-17, Section 3A, V.A.T.C.S.
IN WITNESS WHEREOF, I have hereunto signed my name
officially and affixed the seal of said City, this the 26th day
of March, 1992.
Cit'4:::Oecreta BoydSSecretary Ran tt
City of Lubbock, Texas
(City Seal).
-2-
7 1 0 8 E
NOTICE OF INTENTION TO ISSUE
CITY OF LUBBOCK, TEXAS, CERTIFICATES OF OBLIGATION
NOTICE IS HEREBY GIVEN that the City Council of the
City of Lubbock, Texas, will convene at its regular meeting
place in the City Hall of Lubbock, Texas at 9:00 o'clock A.M.
on the 23rd day of April, 1992, and, during such meeting, the
City Council will consider the passage of an ordinance
authorizing the issuance of certificates of obligation in an
amount not to exceed THIRTY FOUR MILLION FIVE HUNDRED TWENTY
THOUSAND DOLLARS ($34,520,000) for the purpose of paying
contractual obligations to be incurred for (i) the construction
of improvements and extensions to the City's Wastewater
Treatment System, to wit: one new activated sludge treatment
plant; headworks facilities, solids handling facilities
digester rehabilitation; administration maintenance building,
and (ii) professional services rendered in connection
therewith, such certificates to be payable from ad valorem
taxes and a lien on and pledge of the net revenues derived from
the operation of the City's Sewer System. The Certificates are
to be issued and this notice is given, under and pursuant to
the provisions of V.T.C.A., Local Government Code, Subchapter C
of Chapter 271.
City ecretary, City o
Lubbo , Texas
Ranette Boyd
7 1 1 GE
THE STATE OF TEXAS_ §
COUNTY OF LUBBOCK §
CITY OF LUBBOCK §
BEFORE ME, the undersigned authority, on this day
personally appeared , who, after being
by me duly sworn, deposes and says that (s)he is the
of the Lubbock Avalanche -Journal, which is a
newspaper published and having general circulation in the City
of Lubbock, Texas, and that a true and correct copy of the
"NOTICE OF INTENTION TO ISSUE CITY OF LUBBOCK, TEXAS,
CERTIFICATES OF OBLIGATION" hereto attached, was published in
said paper on the following dates:
March 29, 1992; and
April 5, 1992
the date of the first publication of said notice being at least
fifteen (15) days prior to the date stated therein for the
passage of the ordinance authorizing the issuance. of the
certificates of obligation.
SWORN TO AND SUBSCRIBED BEFORE ME, this the day
of , 1992.
Notary Public, State of Texas
My Commission Expires:
(Notary Seal)
7 1 1 1 E
I Certificate of Insurance
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON YOU THE CERTIFICATE HOLDER, THIS CERTIFICATE IS NOT AN INSURANCE
POLICY AND DOES NOT AMEND, EXTEND, OR ALTER THE COVERAGE AFFORDED BY THE POLICIES LISTED BELOW.
Black & Veatch, etal
P.O. Box 8405
Kansas City, Missouri 64114
Name and LIBERTY
Address of MUTUAL
Insured k,
Is, at the date of this certificate, insured by the Company under the policy(iss) listed below. The insurance afforded by the listed policy(ies) is
subject to all their terms, exclusions and conditions and is not altered by any requirement, term or condition of any contract or other document
with resoect to which this certificate may be issued.
CERTIFICATE EXP. DATE
TYPE OF POLICY
'CONTINUOUS
r-�EXTENDEp
POLICY NUMBER
LIMIT OF LIABILITY
POLICY TERM
WORKERS
COMPENSATION
Includes Other
6100193
States Endorsement
6/30/93
WC7-141-072023-.172
WCE-141-072023-202
COVERAGE AFFORDED UNDER
WC LAW OF THE FOLLOWING
STATES. AZ,CO,CT,DC,FL
A,HI,IA,IL,IN,KS,iKY,
,MA,MD,MI,MN,M3,NC
J,NM,NY,OK,OR,PA,SC,
N,TX,VA,WI rAT.T'FOMTA f
EMPLOYERS LIABILITY
Wily injury By Accident Each
50O 000 Accident
Bodiry injury By cease Policy
4500,000 Limit
Bodily Injury By Disease Each
1500,000 Person
General Aggregate - Other Clan Products/Completed Operations
GENERAL UABIUTY
6/30/93
TB1-141-072023-072
02,000,000
ProductwCompieted Operations Aggregate
[:]CLAM MADE
8110001000
Bodily Injury and Property Damage Liability Per
81, 000, 000 Occurrence
RETRO DATE
®OCCURRENCE
Personal and Advertising Injury Per Persow
41, 000, 000 Organization
Oftr:
OCter.
AUTOMOBILE LIABILITY
6/30/93
AS1-141-072023-:092
Each Accident - Single Limit -
01, 000, 000 B.I. and P.D. Combined
®OWNED
Each Person
® NON -OWNED
Each Accident or Occurrence
HIRED
Each Accident or Occurrence
OTHER UMBRELLA
6/30/93
TH1-141-072023-082
$5,000,000 EACH OCCURRENCE .
EXCESS LIABI
ITY
$5,000,000 AGGREGATE
ADDITIONAL COMMENTS
B&V PROJECT 17578
ADDITIONAL INSURED: CITY OF LUBBOCK
* IF THE CERTIFICATE EXPIRATION DATE IS CONTINUOUS OR EXTENDED TERM, YOU WILL BE NOTIFIED IF COVERAGE IS TERMINATED OR REDUCED BEFORE THE
CERTIFICATE EXPIRATION DATE. HOWEVER, YOU WILL NOT BE NOTIFIED ANNUALLY OF THE CONTINUATION OF COVERAGE,
SPECIAL NOTICE • OHIO: ANY PERSON WHO, WlrH INTENT TO DEFRAUD OR KNOWING THAT HE IS FACILITATING A FRAUD AGAINST AN INSURER, SUBMITS AN
APPLICATION OR FILES A CLAIM CONTAINING A FALSE OR DECEPTIVE STATEMENT IS GUILTY OF INSURANCE FRAUD.
NOTICE OF CANCELLATION: (NOT APPLICABLE UNLESS A NUMBER OF DAYS IS
ENTERED BELOW.) BEFORE THE STATED EXPIRATION DATE THE COMPANY WILL NOT
CANCEL OR REDUCE THE INSURANCE AFFORDED UNDER THE ABOVE POLICIES UNTIL
AT LEAST —30 — DAYS NOTICE OF SUCH CANCELLATION HAS BEEN MAILED TO:
CITY OF LUBBOCK
CERTIFICATE PO BOX 2000
HOLDER LUBBOCK TX 79408
Liberty Mutual
Insurance Group
r •
AUTHORIZED REPRESS A
6/30/92 _OVERLAND PARR, KS
----DATMsUED OFFICE
This certificate is executed by LIBERTY MUTUAL INSURANCE GROUP as respects such insurance as is afforded by Those Companies BS 772R6
No Text
Q39Y4
FULBRIGHT & JAWORSKI
2200 Ross AVENUE
SUITE 2600
DALLAs,TEXAS 75201
TELEPHONE: 214/855-8000
FACSIMILE: 214/85S-8200
WRITERS DIRECT DIAL NUMBER:
March 17, 1992
VIA FEDERAL EXPRESS
Ms. Ranette Boyd
City Secretary
1625 13th Street
Lubbock, Texas 79457
RE: City of Lubbock, Texas, Certificates of Obligation
Dear Ranette:
HOUSTON
WASHINGTON, D.C.
AUSTIN
SAN ANTONIO
DALLAS
NEW YORK
LOS ANGELES
LONDON
ZURICH
HONG KONG
We have prepared and are enclosing herewith the
following proceedings relating to the giving of notice of
intention to issue certificates of obligation, to wit:
1. One Notice of Meeting to be posted in accordance
with the attached memorandum.
2. Five copies of the Certificate of City Secretary
relating to the Resolution approving and authorizing
publication of notice of intention to issue certificates of
obligation. After completion and execution, one copy is for
the City's records and four copies are to be returned to us.
3. Two copies of the Resolution approving and
authorizing publication of notice of intention to issue
certificates of obligation. After completion and execution,
one copy is for the City's records and one copy is to be
returned to us.
4. One copy of the "Notice of Intention to Issue City
of Lubbock, Texas, Certificates of Obligation" for execution.
�L- i This notice is to be published once a week for two consecutive
weeks in a newspaper having general circulation in the City,
the date of the first publication to be at least fifteen (15)
days prior to the date stated therein for the passage of the
ordinance authorizing the issuance of the certificates of
obligation.
Mr. Ranette Boyd
March 17, 1992
Page 2
5. Five copies of an Affidavit of Publication to be
completed and executed by an official of the newspaper after
the notice has been published two times as aforesaid. To each
affidavit should be attached a clipping of the notice as it
actually appeared in the newspaper. Four copies are to be
returned to us and one copy is for the City's files.
If you have any questions, please call.
Very truly yours,
Mark S. Westergard
MSW/lc
Enclosures
cc: Mr. Joe W. Smith (w/encls.)
7 1 0 6 E
F'IRST COMPANY
I NVES I'MENT BANKERS
P.O. BOX 2754-79604
402 CYPRESS, SUITE 103
ABILENE, TEXAS 79601
JOE W. SMITH April 3, 1991 (915) 672-8432
SENIOR VICE PRESIDENT
Ms. Charlotte Brigham
Texas Water Development Board
Room 516, Stephen F. Austin Building
1700 North Congress Avenue
Austin, Texas 78701
Re: City of Lubbock (Lubbock County), Texas
Application for Loan Assistance
from the State Water Pollution
Control Revolving Fund for a
Wastewater System Project
Dear Charlotte:
Enclosed are 40 copies of page 5 of the City of Lubbock Application which I will
appreciate your substituting for page 5 of the 40 copiedsent to you yesterday.
ry_,xCuly,
Jo W. Smith
JWS:gc
Enclosures
FIRST gOa&UUC t COMPANY
cc: Mr. Larry J. Cunningham
City Manager
City of Lubbock
P. O. Box 2000
Lubbock, Texas 79457
Mr. J. Robert Massengale
Assistant City Manager for Financial Services
City of Lubbock
Mr. Carroll McDonald
Assistant City Manager for Utilities
City of Lubbock
Mr. Dan A. Hawkins, P.E.
Director of Water Utilities
City of Lubbock
Ms. Ranette Boyd
Secretary -Treasurer
City of Lubbock
Mr. William E. Carroll, P.E.
Black & Veatch
5728 LBJ Freeway
Dallas, Texas 75240
Mr. Mark S. Westergard
Fulbright & Jaworski
2200 Ross Avenue, Suite 2800
Dallas, Texas 75201
FIRST COMPANY
INVESTMENT BANKERS
JOE W. SMITH
SENIOR VICE PRESIDENT
Mr. Larry J. Cunningham
Mr. J. Robert Massengale
Mr. Carroll McDonald
Mr. Dan A. Hawkins
Ms. Ranette Boyd
Mr. William E. Carroll, P.E.
Mr. Mark A. W estergard
P.O. BOX 2754-79604
402 CYPRESS, SUITE 103
ABILENE, TEXAS 79601
April 3, 1991 (915) 672-8432
RE: City of Lubbock SRF Application
Ladies and Gentlemen:
Please replace page S in your copy of the Application sent yesterday with the
attached.
Also, please note that the Application sent to you yesterday ends with page A-10 of
the Offering Memorandum (the Texas Water Development Board requested their 40
copies in this manner).
Exhibits #149 are not included. If you wish to discard your earlier Application,
please retain Exhibits # 149.
JWS:gc
TABLE OF CONTENTS
Pages 1 - 38*; A-1 - A-10 Application including Appendix A
*Includes an SRF-37, SRF Estimated Project Cost for Project A, Project B and Project C and a SRF-37
demonstrating the estimated combined cost of the Wastewater Project.
Also includes Projection of Revenues, Expenses, Net Revenues and Debt Service Coverage, Sewer System.
Exhibits
O1
02
03
04
03
06
87
88
09
#10
Oit
012
013
Certified Copy of Resolution Requesting Financial Assistance Under the State Revolving Fund
Loan Program.
Certificate of Compliance and Affidavit of Authorized Representative
Preaward Compliance Review Report for Wastewater Treatment Construction Grants (EPA
Form 4700-4)
Certificate Regarding Debarment, Suspension and Other Responsibility Matters (EPA Form
5700-49)
State Revolving Fund - Assurances (SRF-33)
Project Schedules (SRF-34):
86a. Project A.
06b. Project B.
f6c. Project C.
SRF Payment Schedules (SRF-35):
Va. Project A.
07b. Project B.
Vc. Project C
Vd. Combined, Projects A, B and C.
Affirmative Action Plan for Meeting SRF MWBE Participation Goal (SRF-10T)
Calculation of Interest Due Based on Drawdown Schedule From SRF-35, SRF Project Schedule:
89a. Project A
89b. Project B
89c. Project C
Agreement with Bond Counsel, 1 copy.
Financial Advisory Agreement, 1 copy.
Agreement for Engineering Services, 1 copy.
Contract between the Canadian River Authority and the City of Lubbock, Texas, including:
The Contract, January 9, 1961;
Supplemental Contract, June 19, 1963;
Modification, December 5, 1963;
Supplemental Contract, January 23, 1964;
Supplemental Contract, June 23, 1966;
Amendment, June 26, 1969;
one copy each
Table of Contents - page 2
# 14 Water Supply Agreement By And Between Brazos River Authority And City of Lubbock, May
11, 1989; 1 copy
# 13 May 1, 1968, City Council Minutes Concerning the Sale of Sewage Effluent to Southwestern
Public Service Company; 1 copy
#16 Water Supply Contract between the City of Lubbock and Lubbock County Water Control and
Improvement District No. 1
# 17 Water Supply Contract between the City of Lubbock and the Town of Ransom Canyon
#18 Water Supply Contract between the City of Lubbock and Reese Air Force Base
#19 Water Treatment Contracts between the City of Lubbock and:
19a. The City of Brownfield
19b. The City of Lamesa
19c. The City of Levelland
19d. The City of O'Donnell
19e. The City of Slaton
19f. The City of Tahoka
#20 Comprehensive Annual Financial Report for Fiscal Year Ending September 30, 1990; City of
Lubbock, Texas; 1 copy
Previously Filed Documents:
City of Lubbock, Texas, Engineering Plan for Wastewater Treatment and Disposal Facilities;
Black do Veatch, Dallas, Texas.
Environmental Information Document for Wastewater Treatment
Texas.
Infiltration/Inflow Analysis.
Note: It is estimated In SRF 34, Project Schedule, Project A, that the final Water Conservatlon Plan
will be submitted around September 1, 1991. A draft Water Conservation Plan has been filed
with the Texas Water Development Board.
Original, manually signed copies of SRF-37; Projection of Revenues, Expenses, Net Revenues
and Debt Service Coverage, SewerSystem; and Exhibits #Iv 2, 3, 4, #3 and #8 are
77
contained in Application 1.
One copy each of Exhibits 010, # 11, # 12, # 13, 014, # 1S, # 16, 017, # 18, 019 and # 20 are
enclosed with Applcation # 1.
CITY OF LUBBOCK. TEXAS
APPLICATION FOR LOAN ASSISTANCE FROM THE STATE WATER POLLUTION CONTROL
REVOLVING FUND ("SRF")
Prefatory Statement
The City's Wastewater Treatment and Disposal Improvement and Expansion Project is divided Into three
separated Projects - A, B and C - as explained in Project Description, below, with a total estimated cost
of $50,600,000.
These separate projects have differing estimated time schedules for planning, construction bidding and
construction.
As a result each of the separate projects will be funded with a series of Combination Tax and Sewer
System Subordinate Lien Revenue Certificates of Obligation:
Loan
Evidenced By
Estimated
Certificates
SRF
of
Loan
Obligation
Project
Amount
Series
Project A
l,655,000
1991
Project
39,125,000
1992
Project C
9,820,000
50,600,000
1993
The following application demonstrates each of these series of Certificates with combined totals used in
debt service schedules, the projection of debt service coverage and other elements to provide essential
information relative to the total Wastewater Project as well as each of the separate projects.
-1-
OFFERING MEMORANDUM
Dated February 28, 1991
In the opinion of Bond Counsel, interest on the Certificates will be excludable from gross Income for
federal income tax purposes under existing law, subject to the matters described under "Tax Exemption"
herein, including the alternative minimum tax on corporations.
$1,655,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
COMBINATION TAX AND SEWER SYSTEM SUBORDINATE LIEN
REVENUE CERTIFICATES OF OBLIGATION, SERIES 1991
Dated: September 13, 1991
Due: February 13, as shown below
The City of Lubbock, Texas (the "City") Combination Tax and Sewer System Subordinate Lien Revenue
Certificates of Obligation, Series 1991, (the "Series 1991 Certificates" or the "Certificates") will be
delivered in installments as construction of the City's Wastewater Project A progresses; interest on each
installment will accrue from delivery to the purchaser and will be payable February 13 and August 13 of
each year, commencing August 13, 1992, and will be calculated on the basis of a 360-day year of twelve
30-day months. The definitive Certificates will be issued only as fully registered certificates in the
denomination of $5,000 or any integral multiple thereof.
These Certificates constitute direct obligations of the City of Lubbock, payable, both as to principal and
interest, from the proceeds of an ad valorem tax levied, within the limitations prescribed by law, upon all
taxable property in the City and are additionally payable from and secured by a lien on and pledge of the
Net Revenues derived from the ownership and operation of the City's Sewer System (the "System"), such
lien and pledge, however, being subordinate to the lien and pledge of the Net Revenues of the System
securing the payment of any Prior Lien Revenue Obligations hereinafter Issued that are payable from and
secured by a first lien on and pledge of the Net Revenues as provided in the ordinance authorizing the
Certificates (the "Ordinance") (see "Authority for Issuance", "Security for Certificates" and "Source of
Payment").
The Initial Paying Agent/Registrar shall be Ameritrust Texas National Association, Austin, Texas (see
"Paying Agent/Registrar,).
Proceeds from the sale of the Certificates will be used to construct a 36" effluent pipeline from the City's
Southeast Water Reclamation Plant to the City's Land Application site east of the treatment plant; the
36" line will replace an existing 30" pipeline (Project A).
MATURITY SCHEDULE
Interest
Amount Maturity Rate
Interest
Amount Maturity Rate
80,000
1993
5.30%
$ 85,000
2003
5.30%
80,000
1994
5.30%
85,000
2004
5.30%
80,000
1995
5.50%
85,000
2005
5.50%
80,000
1996
3.30%
85,000
2006
5.30%
80,000
1997
3.30%
83,000
2007
3.30%
80,000
1998
3.30%
85,000
2008
3.30%
80,000
1999
5.30%
83,000
2009
3.50%
80,000
2000
5.30%
83,000
2010
5.30%
80,000
2001
5.50%
83,000
2011
5.30%
85,000
2002
5.50%
95,000
2012
5.50%
The City reserves the right, at its option, to redeem Certificates having stated maturities on and after
February 13, 2003, in whole or in part , and, If in part, in inverse annual maturity, in principal amounts of
$5,000 or any integral multiple thereof, on February 13, 2002, or any date thereafter, at the par value
thereof plus accrued interest to the date fixed for redemption (see "Redemption of Certificates").
The Certificates are offered for delivery when, as and if issued and received by the purchaser(s) and
subject to the approving opinion of the Attorney General of the State of Texas and of Fulbright &
Jaworski, Bond Counsel, Dallas, Texas.
-2-
OFFERING MEMORANDUM
Dated February 28, 1991
In the opinion of Bond Counsel, Interest on the Certificates will be excludable from gross income for
federal income tax purposes under existing law, subject to the matters described under "Tax Exemption"
herein, including the alternative minimum tax on corporations.
$39,125,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
COMBINATION TAX AND SEWER SYSTEM SUBORDINATE LIEN
REVENUE CERTIFICATES OF OBLIGATION, SERIES 1992
Dated: April 13, 1992
Duel February 13, as shown below
The City of Lubbock, Texas (the "City") Combination Tax and Waterworks and Sewer System Subordinate
Lien Revenue Certificates of Obligation (the "Series 1992 Certificates" or the "Certificates") will be
delivered in Installments as construction of the City's Wastewater Project B progresses; Interest on each
Installment will accrue from delivery to the purchaser and will be payable February 13 and August 13 of
each year, commencing February 13, 1993, and will be calculated on the basis of a 360-day year of twelve
30-day months. The definitive Certificates will be issued only as fully registered certificates In the
denomination of $3,000 or any Integral multiple thereof.
These Certificates constitute direct obligations of the City of Lubbock, payable, both as to principal and
Interest, from the proceeds of an ad valorem tax levied, within the limitations prescribed by law, upon all
taxable property in the City, and are additionally payable from and secured by a lien on and pledge of the
Net Revenues derived from the ownership and operation of the City's Sewer System (the "System"), such
lien and pledge, however, being subordinate to the lien and pledge of the Net Revenues of the System
securing the payment of any Prior Lien Revenue Obligations hereinafter issued that are payable from and
secured by a first lien on and pledge of the Net Revenues, as provided in the ordinance authorizing the
Certificates (the "Ordinance") (see "Authority for Issuance", "Security for Certificates" and "Source of
Payment").
The initial Paring Agent/Registrar shall be Ameritrust Texas National Association, Austin, Texas (see
"Paying Agent/Registrar").
Proceeds from the sale of the Certificates will be used for construction of an administration and
maintenance building, an activated sludge plant, headworks facilities, solids handling facilities; anaerobic
digester rehabilitation and an effluent discharge pipeline to the North Fork Double Mountain Fork Brazos
River with associated dechlorinatlon/reaeration facility (Project B).
MATURITY SCHEDULE
interest
Amount Maturity Rate
Interest
Amount Maturity Rate
$1033,000
1993
1,933,000
2003
1,933,000
1996
1,933,000
2006
1,933,000
1997
1,933,000
2007
1,933,000
1999
1,933,000
2009
1,933,000
1999
1,933,000
2009
1,933,000
2000
1,960,000
2010
1,933,000
2001
1,960,000
2011
1,933,000
2002
1,960,000
2012
1,953,000
2003
1,960,000
2013
1,953,000
2004
1,960,000
2014
*The Certificates will bear Interest at rates established by the Texas Rater Development Board and no
estimate has been made for this page. For purposes of debt service schedules and projections interest on
the Series 1992 Certificates has been calculated at 6.73%.
The City reserves the right, at Its option, to redeem Certificates having stated maturities on and after
February 13, 2003, in whole or In part , and, If In part, In inverse annual maturity, In principal amounts of
$3,000 or any Integral multiple thereof, on February 13, 2004, or any date thereafter. at the par value
thereof plus accrued Interest to the date fixed for redemption (see "Redemption of Certificates").
The Certificates are offered for delivery when, as and if Issued and received by the purchaser(s) and
subject to the approving opinion of the Attorney General of the State of Texas and of Fulbright do
3aworski, Bond Counsel, Dallas, Texas.
-3-
OFFERING MEMORANDUM
Dated February 28, 1991
In the opinion of Bond Counsel, Interest on the Certificates will be excludable from gross Income for
federal income tax purposes under existing law, subject to the matters described under "Tax Exemption"
herein, including the alternative minimum tax on corporations.
$9,820,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
COMBINATION TAX AND SEWER SYSTEM SUBORDINATE LIEN
REVENUE CERTIFICATES OF OBLIGATION, SERIES 1993
Dated: April 13, 1993
Due: February 13, as shown below
The City of Lubbock, Texas (the "City") Combination Tax and Waterworks and Sewer System Subordinate
Lien Revenue Certificates of Obligation, Series 1993 (the "Series 1993 Certificates" or the "Certificates")
will be delivered in installments as construction of the City's Wastewater Project C progresses; Interest
on each Installment will accrue from delivery to the purchaser and will be payable February 13 and
August 13 of each year, commencing February 13, 1994, and will be calculated on the basis of a 360-day
year of twelve 30-day months. The definitive Certificates will be issued only as fully registered
certificates in the denomination of $3,000 or any Integral multiple thereof.
These Certificates constitute direct obligations of the City of Lubbock, payable, both as to principal and
Interest, from the proceeds of an ad valorem tax levied, within the limitations prescribed by law, upon all
taxable property In the City, and are additionally payable from and secured by a lien on and pledge of the
Net Revenues derived from the ownership and operation of the City's Sewer System (the "System"), such
lien and pledge, however, being subordinate to the lien and pledge of the Net Revenues of the System
securing the payment of any Prior Lien Revenue Obligations hereinafter Issued that are payable from and
secured by a first lien on and pledge of the Net Revenues, as provided In the ordinance authorizing the
Certificates (the "Ordinance") (see "Authority for Issuance", "Security for Certificates" and "Source of
Payment").
The Initial Paying Agent/Registrar shall be Ameritrust Texas National Association, Austin, Texas (see
"Paying Agent/Registrar").
Proceeds from the sale of the Certificates will be used to renovate and upgrade two existing wastewater
treatment plants and to convert the existing administration building into a laboratory (Project Q.
MATURITY SCHEDULE
Interest
Amount Maturity Rate *
Interest
Amount Maturity Rate *
490,000
1996
490,000
2006
490,000
1997
490,000
2007
490,000
1998
490,000
2008
490,000
1999
490,000
2009
490,000
2000
490,000
2010
490,000
2001
490,000
2011
490,000
2002
493,000
2012
490,000
2003
493,000
2013
490,000
2004
493,000
2014
490,000
2003
493,000
2013
*The Certificates will bear interest at rates established by the Texas Water Development Board and no
estimate has been made for this page. For purposes of debt service schedules and projections Interest on
the Series 1992 Certificates has been calculated at 6.73%.
The City reserves the right, at Its option, to redeem Certificates having stated maturities on and after
February 13, 2006, In whole or In part , and, If In part, In inverse annual maturity, in principal amounts of
$3,000 or any integral multiple thereof, on February 13, 2003, or any date thereafter, at the par value
thereof plus accrued interest to the date fixed for redemption (see "Redemption of Certificates").
The Certificates are offered for delivery when, as and If Issued and received by the purchaser(s) and
subject to the approving opinion of the Attorney General of the State of Texas and of Fulbright do
3aworskl, Bond Counsel, Dallas, Texas.
-4-
CITY ADMINISTRATION
Elected Officials
Length Term
City Council
of Service Expires Occupation
B.C. McMinn
3 Years May, 1992 Retired; Investments
Mayor
T. J. Patterson
7 Years May, 1992 Co -Publisher, SouthWest Digest
Mayor Pro -Tern
Joan Baker
11 Years May, 1992 Homemaker
Councilwoman
M. J. Aderton
1 Year May, 1994 Retired
Councilman
Maggie Trejo
7 Years May, 1994 Homemaker
Councilwoman
Bill Maloy
3 Years May, 1992 President, Sentry Property Management, Inc.
Councilman
Gary D. Phillips
3 Years May, 1994 Phillips do Associates
- Real Estate Appraisal
Councilman
Appointed Officials
Length of
Length of
Employment
Time in
With City
Name
Position
This Position
of Lubbock
Larry J. Cunningham*
City Manager
14 Years
24 Years
Bob Cass
Deputy City Manager
6 Years
13 Years
John C. Ross, Jr.
City Attorney
12 Years
12 Years
Ranette Boyd
Secretary -Treasurer
7 Years
17 Years
J. Robert Massengale
Assistant City Manager for Financial Services
8 Years
11 Years
Rita P. Harmon
Assistant City Manager for Public Safety
8 Years
13 Years
and Services
James E. Bertram
Assistant City Manager for Development Services
8 Years
21 Years
Carroll McDonald
Assistant City Manager for Utilities
2 Years
12 Years
Dan A. Hawkins
Director of Water Utilities
2 Years
3 Years
*Authorized Representative ------------ Mr. Larry J. Cunningham
City Manager
City of Lubbock
P. O. Box 2000
Lubbock, Texas 79457
tel. (806) 767-2000
Consultants and Advisors
Consulting Engineers for Wastewater Project ---------------------------- William E. Carroll, P.E.
Black do Veatch
3728 LBJ Freeway
Dallas, Texas 75240
(214) 770-1300
Auditors--------------------------------------------------------------- John Burdette, C.P.A.
Coopers do Lybrand
Certified Public Accountants
First National Bank Building, 13th Floor
Lubbock, Texas 79401
(306) 744-3333
BondCounsel------------------------------------------------------------ Mark S. Westergard
Fulbright do Jaworski
2200 Ross Avenue, Suite 2800
Dallas, Texas 75201
(214) 885-3002
Financial Advisor-------------------------------------------------------------- Joe W.Smith
Senior Vice President
First Southwest Company
P. O. Box 2734
Abilene, Texas 79604-2754
(913) 672-8432
-5-
SELECTED DATA FROM THE OFFICIAL STATEMENT
The selected data on this page is subject in all respects to the more complete information and definitions
contained or incorporated in this Offering Memorandum. This data page was prepared to present the
purchasers of the Certificates information concerning the Certificates, the revenues pledged to payment
of the Certificates, the description of the revenue base and other pertinent data, all as more fully
described herein.
The Issuer-------------- The City of Lubbock, Texas is a political subdivision located in Lubbock
County operating as a home -rule city under the laws of the State of Texas and
a charter approved by the voters in December 27, 1917 and amended from
time to time. The Charter provides for the Council -Manager form of
government for the City. The Mayor is elected at -large for two year terms
ending in even years. Each of the six members of the City Council resides in a
separate single -member district and is elected by the qualified voters of that
district for a four year term. The terms of three members of the City Council
expire each even year. The Council formulates operating policy for the City
while the City Manager is the chief administrative officer.
Lubbock is the County Seat of Lubbock County, Texas, and is located on the
South Plains of West Texas approximately 320 miles west of Dallas. The City's
1990 US. Census population is 186,206 (1980 U.S. Census - 177,317). The City
is approximately 104 square miles in area. Texas Tech University, a major
State institution, is located in Lubbock.
The Certificates -------- The three series of Certificates:
Estimated
Principal
Series Amount
1991 1,655,000
1992 39,125,000
1993 9,820,000
totaling $50,600,000, will be issued pursuant to the general laws of the State
of Texas, particularly Subchapter C of Chapter 271, Texas Local Government
Code (the Certificate of Obligation Act of 1971), as amended, and Ordinances
passed by the City Council of the City (see "Authority for Issuance"), as
evidence of SRF loans requested in this Application.
Security for the
Certificates ---------- The Certificates of each series will consitute direct obligations of the City of
Lubbock, payable, both as to principal and interest, from the proceeds of an ad
valorem tax levied, within the limitations prescribed by law, upon all taxable
property in the City and are additionally payable from and secured by a lien on
and pledge of the Net Revenues derived from the ownership and operation of
the City's Sewer System (the "System"), such lien and pledge, however, being
subordinate to the lien and pledge of the Net Revenues of the System securing
the payment of any Prior Lien Revenue Obligations hereinafter issued that are
payable from and secured b� a first lien on and pledge of the Net Revenues, as
provided in the Ordinance (the "Ordinance") authorizing the Certificates (the
"Certificates") (see "Authority for Issuance").
Optional Redemption ---- The City reserves the right, at Its option, to redeem Certificates of each
Series in whole or in part, and, if in part, in inverse annual maturity, in
principal amounts of $5,000 or any integral multiple thereof at the par value
thereof plus accrued interest to the date fixed for redemption as follows:
First Redemption
Certificate
Maturities
Date Or Any
Series
On and After
Date Thereafter
1991
February 15,2003
February 15, 2002
1992
February 13,2005
February 15,2004
1993
February 15, 2006
February 15,2005
Tax Exemption---------- In the opinion of Bond Counsel, the interest on each Series of Certificates will
be excludable from gross income for purposes of federal income taxation under
existing law, subject to the matters described under "Tax Exemption" herein,
including the alternative minimum tax on corporations.
-6-
Use of Certificate
Proceeds ------------- The Certificate proceeds will. be used for a major, wastewater treatment and
disposal improvement and expansion project extending from 1991 through
1995-1996. The proceeds of each issue of Certificates are planned to be used
for:
$1,633.000 Series 1991 Ceritifcates (Project A)
Proceeds from the sale of the Certificates will be used to construct a 36"
effluent pipeline from the City's Southeast Water Reclamation Plant to the
City's Land Application site east of the treatment plant; the 36" line will
replace an existing 30" pipeline.
$39,125,000 Series 1992 Certificates (Project B)
Proceeds from the sale of the Certificates will be used for construction of an
administration and maintenance building, an activated sludge plant, headworks
facilities, solids handling facilities; anaerobic digester rehabilitation and an
effluent discharge pipeline to the North Fork Double Mountain Fork Brazos
River with associated dechlorination/reaeration facility.
$9,820,000 Series 1993 Certificates (Project C)
Proceeds from the sale of the Certificates will be used to renovate and
upgrade two existing wastewater treatment plants and to convert the existing
administration building into a laboratory.
Payment Record -------- The City has never defaulted.
Selected Issuer Indices
Fiscal Per Capita
Year Estimated Taxable Taxable
Ended City Assessed Assessed
9/30 Population Valuation Valuation
1987 188,694(2) 4,408,323,399 23,362
1999 190,017(2) 4,476,572,269 23,358
1989 191,403(2) 4,567,387,737 23,863
1990 186,206(3) 4,645,914,710 24,950
1991 186,206(3) 4,725,708,214 25,379
Ratio
General
Per Capita
Purpose
General
General
Funded
Purpose
Purpose
Debt to
Funded
Funded
Taxable
% of
Tax
Tax
Assessed
Total Tax
Debt 1)
Debt
Valuation
Collections
37,540,011
199
0.85%
99.84%
39,670,291
209
0.89%
99.94%
43,066,999
225
0.94%
99.98%
39,179,057
210
0.84%
99.10%
42,474,916(4) 228
0.90%
93.48%(3)
(1) Excludes se -supporting general obligation debt (see "Valuations, Exemptions and Debt Obligations";
"Valuation and Funded Debt History" and "Computation of Self -Supporting Debt").
(2) Source: Estimates by City of Lubbock, Texas.
(3) 1990 U.S. Census.
(4) Anticipated.
(5) Collections for part year only, through 2-28-91.
-7-
CERTIFICATE INFORMATION
Authority for Issuance
The Certificates of each Series will be issued pursuant to the Constitution and general laws of the State
of Texas, particularly Subchapter C of Chapter 271, Texas Local Government Code (the Certificate of
Obligation Act of 1971), as amended and an Ordinance to be passed by the City Council.
Security for Certificates and Source of Payment
The Certificates of each Series are of equal rank and dignity and on a parity in all respects, are direct
obligations of the City payable from the proceeds of an ad valorem tax levied, within the limitations
prescribed by the Constitution of the State of Texas (the "Constitution"), upon all taxable property in the
City and are additionally payable from and secured by a lien on and pledge of the Net Revenues (as
defined in the Ordinances) of the City's Sewer System (the "System"), such pledge of and lien on Net
Revenues being subordinate to the lien on and pledge of the Net Revenues securing the payment of Prior
Lien Revenue Obligations (as defined in the Ordinances) and such pledge will be on a parity with the lien
and pledge with respect to Similarly Secured Obliggations including the City's outstanding Combination Tax
and Sewer System Subordinate Lien Revenue (1) Refunding Bonds, Series 1988, and (2) Certificates of
Obligation, Series 1988.
The City operates under a home -rule charter as authorized by Article XI, Section 3 of the Constitution;
the charter adopts the Constitutional maximum tax rate of $2.50 per $100 of Assessed Valuation for all
City purposes.
As defined in the Ordinances:
"System" shall mean the City's sanitary sewer system, being all sanitary sewage collection system, ground
storage facilities, effluent disposal and treatment facilities and/or other works and equipment.
"Net Revenues" shall mean, with respect to any period, all income, revenues and receipts received from
the ownership and operations of the System less Maintenance and Operation Expenses of the System
during such period.
"Maintenance and Operation Expenses" shall mean all reasonable and necessary costs and expenses
directly related and attributable to the operation and maintenance of the System including, but not
limited to, the cost of insurance, the purchase and carrying of stores, materials, and supplied, the
payment of salaries, labor and other expenses reasonably and properly charged, under generally accepted
accounting principles, to the operation and maintenance of the System. Depreciation charges on
equipment, machinery, buildings and other facilities and expenditures classified under generally accepted
accounting principles as capital expenditures shall not be considered as "Maintenance and Operation
Expenses" for purposes of determining "Net Revenues".
"Prior Lien Revenue Obligations" shall mean all bonds or other obligations hereafter issued by the City of
Lubbock which, by the ordinance authorizing the issuance thereof, are payable from and secured by a first
lien on and pledge of the Net Revenues.
In the Ordinances the City will reserve the right to hereafter Issue Prior Lien Revenue Obligations, and
also, expressly reserves the right to hereafter Issue Additional Obligations payable from and secured by a
lien on and pledge of the Net Revenues of equal rank and dignity, and on a parity in all respects, with the
lien thereon and pledge thereof securing the payment of the Certificates.
Redemption of Certificates
The Series 1991 Certificates
The City reserves the right, at its option, to redeem Certificates having stated maturities on and after
February 13, 2003, in whole or in part, and, if in part, In inverse annual maturity, in principal amounts of
$5,000 or any integral multiple thereof, on February 13, 2002, or any date threafter, at the par value
thereof plus accrued interest to the date fixed for redemption.
The Series 1992 Certificates
The City reserves the right, at its option, to redeem Certificates having stated maturities on and after
February 15, 2005, in whole or in part, and, if in part, In Inverse annual maturity, in principal amounts of
$5,000 or any integral multiple thereof, on February 15, 2004, or any date threafter, at the par value
thereof plus accrued interest to the date fixed for redemption.
The Series 1993 Certificates
The City reserves the right, at its option, to redeem Certificates having stated maturities on and after
February 15, 2006, in whole or in part, and, if in part, in inverse annual maturity, in principal amounts of
$5,000 or any integral multiple thereof, on February 15, 2005, or any date threafter, at the par value
thereof plus accrued interest to the date fixed for redemption (see "Redemption of Certificates").
Not less than 30 days prior to a redemption date for the Certificates, the City shall cause a notice of
redemption to be sent by United States mail, first class, postage repaid, to each registered owner of a
Certificate to be redeemed, in whole or in part, at the address oftheregistered owner appearing on the
registration books of the Paying Agent/Registrar at the close of business on the business day next
preceding the date of mailing such notice. Any notice of redemption so mailed shall be conclusively
presumed to have been duly given irrespective of whether received by the certificateholder.
Paying Agent/Registrar
The initial Paying Agent/Registrar for each Series of Certificates is Ameritrust Texas National
Association, Austin, Texas, In the Ordinance the City retains the right to replace the Paying
Agent/Registrar. The City covenants to maintain and provide a Paying Agent/Registrar at all times while
the Certificates are outstanding and any successor Paying Agent/Registrar shall be a commercial bank or
trust company organized under the laws of the State of Texas or other entity duly qualified and legally
authorized to serve as and perform the duties and services of Paying Agent/Registrar for the Certificates.
Upon any change in the Paying Agent/Registrar for the Certificates, the City agrees to promptly cause a
written notice thereof to be sent to each registered owner of the Certificates by United States mall, first
class, postage prepaid, which notice shall also give the address of the new Paying Agent/Registrar.
Principal of the Certificates will be payable to the registered owner at maturity or prior redemption upon
presentation at the principal office of the Paying Agent/Registrar. Interest on the Certificates will be
payable by check, dated as of the interest payment date, and mailed by the Paying Agent/Registrar to
registered owners as shown on the records of the Paying Agent/Registrar on the Record Date (see "Record
Date for Interest Payment" herein), or by such other method, acceptable to the Paying Agent/Registrar,
requested by, and at the risk and expense of, the registered owner. if the date for the payment of the
principal of or interest on the Certificates shall be a Saturday, Sunday, legal holiday, or day on which
banking institutions in the city where the Paying Agent/Registrar is located are authorized by law or
executive order to close, then the date for such payment shall be the next succeeding day which is not
such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to close; and
payment on such date shall have the same force and effect as if made on the original date payment was
due.
Transfer. Exchange and Registration
The Certificates may be transferred and exchanged on the registration books of the Paying
Agent/Registrar only upon presentation and surrender thereof to the Paying Agent/Registrar and such
transfer or exchange shall be without expense or service charge to the registered owner, except for any
tax or other governmental charges required to be paid with respect to such registration, exchange and
transfer. A Certificate may be assigned by the execution of an assignment form on the Certificate or by
other instrument of transfer and assignment acceptable to the Paying Agent/Registrar. A new
Certificate or Certificates will be delivered by the Paying Agent/Registrar, in lieu of the Certificate
being transferred or exchanged, at the principal office of the Paying Agent/ Registrar, or sent by United
States mail, first class, postage prepaid, to the new registered owner or his designee. To the extent
possible, new Certificates issued in an exchange or transfer of Certificates will be delivered to the
registered owner or assignee of the registered owner in not more than three business days after the
receipt of the Certificates to be cancelled, and the written instrument of transfer or request for exchange
duly executed by the registered owner or his duly authorized agent, in form satisfactory to the Paying
Agent/Registrar. New Certificates registered and delivered in an exchange or transfer shall be in any
integral multiple of $5,000 for any one maturity and for a like aggregate principal amount as the
Certificate or Certificates surrendered for exchange or transfer.
Limitation on Transfer of Certificates Called for Redemption
Neither the City nor the Paying Agent/Registrar shall be required to transfer or exchange to an assignee
of the owner of the Certificates any Certificate called for redemption, in whole or in part, within 05 days
of the date fixed for redemption; provided, however, such limitation of transfer shall not be applicable to
an exchange by the registered owner of the uncalled balance of a Certificate.
-9-
Record Date for interest Payment
The record date ("Record Date") for the interest payable on any interest payment date means the close of
business on the last business day of the preceding month.
In the event of a non-payment of interest on a scheduled payment date, and for 30 days thereafter, a new
record date for such interest payment (a "Special Record Date") will be established by the Paying
Agent/Registrar, if and when funds for the payment of such interest have been received from the City.
Notice of the Special Record Date and of the scheduled payment date of the past due interest ("Special
Payment Date", which shall be 13 days after the Special Record Date) shall be sent at least five business
days prior to the Special Record Date by United States mail, first class postage prepaid, to the address of
each Holder of a Certificate appearing on the registration books of the Paying Agent/Registrar at the
close of business on the last business day next preceding the date of mailing of such notice.
Use of Certificate Proceeds
The Series 1991 Certificates
Proceeds from the sale of the Certificates will be used to construct a 36" effluent pipeline from the City's
Southeast Water Reclamation Plant to the City's Land Application site east of the treatment plant; the
36" line will replace an existing 30" pipeline (Project A).
The Series 1992 Certificates
Proceeds from the sale of the Certificates will be used for construction of an administration and
maintenance building, an activated sludge plant, headworks facilities, solids handling facilities; anaerobic
digester rehabilitation and an effluent discharge pipeline to the North Fork Double Mountain Fork Brazos
River with associated dechlorination/reaeration facility (Project B).
The Series 1993 Certificates
Proceeds from the sale of the Certificates will be used to renovate and upgrade two existing wastewater
treatment plants and to convert the existing administration building into a laboratory (Project C).
See "Project Description" and "SRF 37, SRF Estimated Project Cost" for Project A, Project B, Project C,
and the Combined Wastewater Project, below.
-10-
- <°
PROJECT DESCRIPTION
Sources: City of Lubbock, Texas, Engineering Plan for Wastewater Treatment and Disposal Facilities;
Black do Veatch, Dallas, Texas.
City of Lubbock, Texas, Environmental Information Document for Wastewater Treatment
Disposal Facilities; Black do Veatch, Dallas, Texas in association with Alan Plummer
Associates, Inc., Austin, Texas.
Infiltration/Inflow Analysis
Location
The City of Lubbock is located on the South Plains of West Texas, In Lubbock County, Texas,
approximately 320 miles west of Dallas. The facilities planning area coincides with the City limits a$
indicated on Figure 4-1 of the Engineering Plan, below. The City of Lubbock's 1990 U.S. Census
population was 196,206.
Statement of Project Need
The City of Lubbock operates a municipal wastewater treatment facility under State Permit No.
10333-02. The permit allows for the use of treated effluent for irrigation of non-food crops and its sale
to a local power utility, Southwestern Public Service ("SPS"), for power plant cooling water. No discharge
of treated effluent is currently allowed to the waters of the State of Texas. For several years, the City's
wastewater treatment plant has been unable to consistently satisfy the treatment requirements set forth
In the State permit. This is primarily due to the age and condition of the treatment facilities and heavy
industrial loadings entering the treatment plant. The City recently adopted a formal industrial
pretreatment program with enforcement capabilities to address influent loadings.
A. Existing Wastewater Treatment and Disposal Facilities
The City's wastewater treatment facility has been in operation since the 1940's. Since then, the plant has
been expanded and upgraded in several stages. The treatment facility consists of three distinct treatment
trains (Plants One, Two and Three) as indicated on Figure 4-5 of the Engineering plan, below. Plants One
and Two are trickling filter plants. Plant Three is an activated sludge plant.
Combined effluent from the three treatment trains is discharged to two land application sites for
irrigation purposes; the City of Lubbock Land Application site and a privately owned site approximately
13 miles southeast from the City of Lubbock. A portion of treated effluent from the activated sludge
plant is discharged to electric utility, SPS, for power plant cooling water. A general description of the
existing treatment plant and irrigation sites is provided below.
1. Collection System. The City of Lubbock's collection system consists of 730 miles of main sewer
lines with sizes ranging from 6 to 42 inches.
2. Treatment Plant. The total plant is currently permitted to treat a maximum 30-day flow of 23
million ga ons per day ("mgd").
a. Plant One. Constructed in the 1940's, the plant is rated at 3 mgd. The plant consists of a
headworks structure with screens and a vortex type grit removal basin, five rectangular
primary clarifiers, four trickling filters, and six rectangular secondary clarifiers.
b. Plant Two. Constructed in 1962, the plant is rated at 7 mgd but is reported to have an organic
loading limitation of 4.8 mgd. The plant consists of a headworks structure with screens and a
vortex type grit removal basin, two circular primary clarifiers, two trickling filters, and two
circular secondary clarifiers.
C. Plant Three. Constructed in 1970, the plant is rated at 11.3 mgd and is reported to have a
limiting hydraulic capacity of 11.3 mgd. The plant consists of a headworks structure with
screens and a vortex type grit removal basin, two circular primary clarifiers, three rectangular
aeration basins, two circular secondary clarifiers, and a chlorine contact basin.
-11-
QMV
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PLANNING AREA
LU890CK.TEXAS
FIGURE 4-1
"I "I"
LEGEND
NEW PLANT
i i.ve,00a �r'1 1 �/. `•\ ��� �`— �. _ �` •.�\ PLANT >I
- KLIN TER O—PLANT 0
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COMMON FACILITY
1�, ( W* � ,_ � AS AERATION /ABIM
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_ ' 1 `\ ( r�
/PS � j -,\ � � � �� I S L E►B EFFLUENT PUMP STATION
F/ FLOW S►LITTER STRUCTURE
PC PRIMARY CLARIFIER
PPS PRIMARY SLUDGE PUMP STATION
/ PH 0 SC SECONDARY CLARIFIER
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2.0 SN/ SLUDGE MOLDING BASIN
r by
36TH ST. J BPS SECONDARY /LODGE PUMP STATION
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ER BOIUQNIt
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GENERAL LAYOUT
RECOMMENDED PROJECT
LU890CK, TEXAS
FIGURE 8-3
d. Sludge Facilities. Nine anaerobic digesters have been constructed over the past SO years.
Currently, only two digesters are operable. They were constructed in 1980. Sludge is digested
then dried on rectangular drying beds. Dried sludge is then hauled for final disposal to the
municipal landfill.
e. Personnel, Laboratory, and Maintenance Facilities. These facilities are combined In a single
one-story facility. Essentially, no space has been allotted for either maintenance or storage
purposes.
3. Land Application Sites. The City of Lubbock owns approximately 6,000 acres of agricultural land
east of the City the "Lubbock Land Application Site"). Approximately 4,800 acres are under
cultivation, with 3,033 acres Irrigated by center pivot irrigation units. The cropping system,
developed by private consultants to ensure total water utilization and maximize nitrate uptake,
consists mainly of double cropping with corn and wheat and alfalfa. Currently, a 1,260 acre-feet
storage reservoir and additional Irrigation pumping are being constructed at the site.
The privately owned site ("Hancock Site"), consists of approximately 4,000 acres with approximately
2,590 acres irrigated by center pivot Irrigation units. Most of the land is used to grow cotton, but
several pivots of alfalfa are planted and rotated.
A detailed evaluation of the existing facilities is discussed in the Engineering Plan. A detailed evaluation
of infiltration/inflow is discussed in the Infiltration/inflow Analysis. The analysis indicates that
infiltration/inflow to the system is non -excessive. Due to the age and extreme deterioration of Plant
One, the plan recommends that it be abandoned and be replaced with a new treatment plant. In addition,
the report recommends: substantial upgrade for Plants Two and Three; construction of a new
Administration and Maintenance Building; and conversion of the existing Administration Building to a
laboratory. The existing plant improvements and addition of a new treatment train are needed to
consistently satisfy the State permit requirements for effluent BOD5.
B. Wastewater Treatment Plant Improvements
A detailed evaluation of treatment plant improvement alternatives is presented in the Engineering Plan.
Each of the alternatives evaluated would enable the City to comply with permit requirements and provide
treatment capacity to the design year of 2010.
Seven treatment and disposal alternatives were evaluated in the Engineering Plan. Each alternative
provided for abandoning Plant One, upgrading the treatment components for Plants Two and Three, and
constructing a new plant for additional treatment capacity. The alternatives covered a broad range of
treatment and disposal methods, including: total land application, combination of land application and
stream discharge, total stream discharge, total reuse, and combination of land application and reuse. The
combination land application and reuse alternative was selected.
Plant improvements consist of construction of unified headworks and solids processing facilities; upgrade
of anaerobic digesters; replacement of process equipment in clarifiers, trickling filters, and sludge
pumping for Plant Two; and replacement of aeration equipment and process equipment in clarifiers for
Plant Three. The new 9 mgd treatment plant addition will be equipped with an intermediate lift station,
primary clarifiers, aeration basins, blowers, secondary clarifiers, chlorine contact, effluent filters, and
effluent pumping. A discharge pipeline will also be constructed to the North Fork Double Mountain Fork
Brazos River Q'NFDMF Brazos River") for the City's contingency discharge plan If the water cannot be
stored and reused due to prolonged inclement weather conditions. A dechlorination and reaeration facility
will be constructed at the pipeline discharge point. improvements to the effluent pipeline facilities to the
Lubbock Land Application Site nclude replacement of an existing 30 inch pipeline with a new 36 inch
pipeline.
Plants Two and Three will parlmarily discharge to the Lubbock Land Application Site. The new plant will
primarily discharge to the privately owned Hancock Site, SPS for power plant cooling water, and reuse
customers as they are developed. Discharge of effluent to the NFDMF Brazos River will only be needed
when and to the extent the users cannot accept the effluent.
C. Basis for Selection
The combination land application and reuse alternative was selected over the other alternatives based on
several factors. These factors included total cost, public acceptance, environmental concerns, beneficial
use, and permit requirements. The recommended alternative will provide the City with the flexibility to
develop additional reuse options in the future. This would include reuse of effluent for industries, golf
courses, parks, municipal green belt areas, or irrigation of private farms (by formal lease agreement).
-12-
D. Conclusion
The City of Lubbock proposes to finance the construction of the wastewater treatment and disposal
Improvements and expansion described above through the SRF loan program.
E. Estimated Cost of the Project
The project will be subdivided into three subprojects for financing purposes:
• Project A will consist of constructing the 36 inch effluent pipeline to the Lubbock Land
Application Site as shown on Figure AD2-1, below.
Project B will consist of constructing the Administration and Maintenance building, new
activated sludge plant, headworks facilities, solids handling facilities, anaerobic digester
rehabilitation, and effluent discharge pipeline to the NFDMF Brazos River, with associated
dechlorination/reaeration facility.
* Project C will consist of renovating and upgrading existing Plants Two and Three and the
conversion of the existing Administration Building to a laboratory.
The plant facilities for Project B and Project C are shown on Figure E-3 of the Engineering Plan, below.
Following is a separate Form SRF-37, SRF Estimated Project Cost for Project A, Project B and Project C
and a Form SRF-37 demonstrating the estimated combined cost of the Wastewater Project.
-13-
o Well
3157
SuUstafim
o
"T
iip.
gs
Eff M alm
0 T'
EXISTING SOUTHEAST
WATER RECLAMATION PLANT
mom
V
slid 0
1000 600 0
ri SCALE
TERMINAL
STORAGE
RESERVOIR
1000
.......... .......... I ............. ....... ..... ... . ..... ......... ........ I ........ ......... .................... . ..... ............. r ......................
. . .................
PROPOSED ROUTE OF
........... ........... . 36-INCH EFFLUENT PIPELINE
.. ..............................
....................... . .....
...........
. . . . ....................... .
. .. ........... . . . ......
ROUTE OF 36-INCH
EFFLUENT PIPELINE
ROAD
Ilk
0
LUBBOCK, TEXAS
A% 42
FIGURE AD 2-1
53ZF ESTIMATED PWXCT COST
FOR PROJECT "A"
$41.37
(04-11.90)
A. Construction Cost:
M* Effluent Pipeline
1/1
Major Sewer Rehabilitation
Interceptor$
Collection System
Contingency
Allowance For Inflation
TOTAL CONSTRUCTION COST
S. Engineering:
s 633,000
64
67 000
: 764,000
Planning Phase (EID, EP, I/I, WCP)
700,000
Design Phase
82,000
Construction Phase
Basic
32,000
Construction Layout
-
Inspect ion
40,000
Testing
—
0 t M Marva l
User Charge
20,000
Total Engineering :
874.000
C. Financial
D. Legal
E. Right -of -Way (Mot SRF Eligible)
• F. Lard (Mot SRF Eligible)
G. other (Est. Cost of I ssuance)
h TOTAL ESTIMATED PROJECT COST
10,000
5,000
2,000
= 1,655,000
This estimate, prepared by Black b Veatch Engineers a, 1 /22/91
(name of firm) (date)
was made using the cost current information available, and in our opinion represents the closest estimate to the actisal
construction costs. This estimate was made with the expectation that construction bids would be taken by
August, 1991 " should be updated if bidding is delayed beyond that date.
CERTIFIED BT: Larry J. Cunningham .
Authorized ese tative o Jty of -Lubbock
(Loan A6t i )
IAAK-41
(Date
(City Seal)
Wi l�l i)am�E.. Carroll, P.E., Black L Veatch
(Consulting Engineer)
911?61 l
(Date)
O: T ."'^A,,
(Seal) ��'�•".A...
• land that will be an integral part of the treatment proctss is eligible.
to Tout Project Cost should be rounded up to the nearest IL000 increment.
WILLIAM E. CARROLL
•,o�. 38888
I
SRI-37
S1tF ESTIFKTiID PROJECT COST (04-11-90)
FOR PROJECT "B"
A. Construction Cost:
STP
1/1
Kajor Sewer Rehabilitation
Interceptors
Collection System
Contingency
Allowance For Inflation
TOTAL CONSTRUCTION COST
t. Engineering:
Planning Phase
Design Phase
Construction Phase
Basic
Construction layout
inspection
Testing
0 i x manual
Project Certification
Total Engineering
C. Financial
D. Legal
E. Right-cf•vay (Not SRF Eligible)
* F. Land (Not SRF Eligible)
G. Other (Est. Cost of 1 ssuance)
** TOTAL ESTIMATED PROJECT COST
It 28,878,000
t
100-000
S 34,817.000
2,419,000
1,428,000
240,000
128,000
= 4,248,000
32,000
24,115
3,885
= 39,125,000
This estimate, prepared b/ Black b Veatch Engineers on 1 /22/91
(name of firm) (date)
was made using the most current information available, and in our opinion represents the closest estimate to the actilal
construction costs. This estimate was made with the expectation that construction bids would be taken ty
March, 1992 and ,should be updated if bidding is delayed beyond that date.
,CERTIFIED S Larry J. Cunningham,
Authorizedrase Utive of City. of Lubbock
(loan i ant)
.4-t
(Date)
(City Seal)
William
illiam E. Carroll, P.E.,, Black & Veatch
(Consulting Engineer)
3Z26 f s/
(Date)
�E OF r;tt,,
(Seat) i 4j'��r••r'
�y •, u
* land that will be an integral part of the treatment process is eligible.
** Total Project Cost should be rounded up to the nearest SS•000 increment.
1 E. CARROLL
38888
SRF ESTIMA"M PRWECT COST
FOR PROJECT "C"
SRF-37
(04-11.90)
A. Construction Cost.
$IF
= 6,874,000
1/1
—
Major Sewer Rehabilitation
—
Interceptors
—
Collection System
—
Cont i ngen cy
695,000
Allowance For Inflation
738,815
TOTAL CONSTRUCTION COST
= 6,307,815
8.
Engineering:
Planning Phase
—
Design Phase
896,000
Construction Phase
las is
340.000
Construction layout
inspection
220,000
Testing
—
0 i M Manual
23,000
Project Certification
17,000
Total Engineering
t 1,496,000
C.
Financial
8,000
0.
Legal
6,185
E.
Right -of -Way (Mot SRF Eligible)
—
• F.
land (Mot SRF Eligible)
—
G. other (Est. Cost of I ssuance) 2,000
•* TOTAL ESTIMATED PROJECT COST S 9,820,000
This estimate, prepared by Black & Veatch Engineers an 1 /22/91
(name of firm) (date)
was made using the mast current information available, and in our opinion represents the closest estimate to the actsell
construction costs. This estiaate was made with the expectation that construction bids would be taken Dv.
March. 1993 and should be updated if bidding is delayed beyond that date.
TIFIED T• Larry J. Cunninggham, William E. Carroll. P.E., Black d Veatch
Authorized resen Stive f City of Lubbock
(loan icant) U (Consulting Engineer)
.3 /0,
(Date) (Date)
OF T�t�
(City Seal) (Seal) .�;�P'; '•''�:4,�i.
•
WII.LIAM E. CARROLL
• Land that will be on Integral part of the treatrent process is eligible. 3$$$$ _o .
•• Total Project Cost should be rounded tv to the nearest £5.000 increment.
SRF ES71MATO PROJECT CXT
(Combined - All Projects)
sit f-37
(04-11.90)
A. Construction Cost:
STP
1/1
Major Sever Rehabilitation
Interceptors
Collection System
Contirven:y
Allowance For Inflation
TOTAL CONSTRUCTION COST
S. Engineering:
User Charge
Flaming Phase
Design Phase
Construction Phase
Basic
Construction layout
Inspection
Testing
0 [ N Manua
Project Certification
Total Engineering
C. Financial
D. legal
E. Right -of -Way (Not SRF Eligible)
s 36,385,000
3,598,000
3,905,815
= 43,888,815
20,000
700,000
3,397,000
1,800.000
500,000
151,000
50,000
s 6,618,000
50,000
35,300
• F. land (Not SRF Eligible) —
c. other (Est. Cost of Issuance) 7,885
•' TOTAL ESTIMATED PROJECT COST i 50,600,000
This estimate, prepared by Black & Veatch Engineers a, 1 /22/91
(Warne of firm) (date)
was made using the most current information available, and in our opinion represents the closest estimate to the actigl
construction costs. This estimate was made with the expectation that construction bids would be taken by
and should be updated if bidding is delayed beyond that date.
RTIFIED BY: Larry J. Cunningham
Authorized s t o City of ubbock
(loan i t)
(Date)
(City Seal)
William E. Carroll, P.E., Black Veatch
(Consulting Engineer)
(Date)
OF %`1t
(Seal ) i �,�4-�,..•�.A.:.J ,}-� l_,
I WILLIAM E. C1
' land that mill be an integral part of the treatment process is eligible. t 38888
•• Total Project Cost should be rounded up to the nearest ILDD00 increment. ay$ "� ��
TAX INFORMATION
Ad Valorem Tax Law
The appraisal of property within the City is the responsibility of the Lubbock Central Appraisal District.
Excluding agricultural and open -space land, which may be taxed on the basis of productive capacity, the
Appraisal District is required under the Property Tax Code to appraise all property within the Appraisal
District on the basis of 100% of its market value and is prohibited from applying any assessment ratios.
The value placed upon property within the Appraisal District is subject to review by an Appraisal Review
Board, consisting of three members appointed by the Board of Directors of the Appraisal District. The
Appraisal District is required to review the value of property within the Appraisal District at least every
four years. The City may require annual review at its own expense, and is entitled to challenge the
determination of appraised value of property within the City by petition filed with the Appraisal Review
Board.
Reference Is made to the VTCA, Property Tax Code, for identification of property subject to taxation;
property exempt or which may be exempted from taxation, if claimed; the appraisal of property for ad
valorem taxation purposes; and the procedures and limitations applicable to the levy and collection of ad
valorem taxes.
Article Vlll of the State Constitution ("Article Vlll") and State law provide for certain exemptions from
property taxes, the valuation of agricultural and open -space lands at productivity value, and the
exemption of certain personal property from ad valorem taxation.
Under Section 1-b, Article Vlll, and State law, the governing body of a political subdivision, at its option,
may grant:
(1) An exemption of not less than $3,000 of the market value of the residence homestead of persons
65 years of age or older and the disabled from all ad valorem taxes thereafter levied by the political
subdivision;
(2) An exemption of up to 20% of the market value of residence homesteads; minimum exemption
$ 5,000.
State law and Section 2, Article Vlll, mandate an additional property tax exemption for disabled veterans
or the surviving spouse or children of a deceased veteran who died while on active duty in the armed
forces; the exemption applies to either real or rsonal property with the amount of assessed valuation
exempted ranging from $1,500 to a maximum of $3,000.
Article Vill provides that eligible owners of both agricultural land (Section 1-d) and open -space land
(Section 1-d-1), including open -space land devoted to farm or ranch purposes or open -space land devoted
to timber production, may elect to have such property appraised for property taxation on the basis of its
productive capacity. The same land may not be qualified under both Section 1-d and 1-d-1.
Nonbusiness vehicles, such as automobiles or light trucks, are exempt from ad valorem taxation unless the
governing body of a political subdivision elects to tax this property. Boats owned as nonbusiness property
are exempt from ad valorem taxation.
Article VQI, Section 1-j of the Texas Constitution, provides for "freeport property" to be exempted from
ad valorem taxation. Freeport property is defined as goods detained in Texas for 173 days or less for the
purpose of assembly, storage, manufacturing, processing or fabrication. The exemption became effective
for the 1990-91 fiscal year and thereafter unless action to tax such property has been taken prior to
April 1, 1990. Decisions to continue to tax may be reversed in the futurei decisions to exempt Freeport
property are not subject to reversal. The City has taken action to tax freeport property.
The City grants an exemption to the market value of the residence homestead of persons 65 years of age
or older of $16,700; the disabled are granted an exemption of $10,000.
The City has not granted an additional exemption of 20% of the market value of residence homesteads;
minimum exemption of $5,000.
The City does not tax nonbusiness vehicles; and the Lubbock Central Appraisal District collects taxes for
the City of Lubbock.
-14-
Valuation, Exemptions and Debt Obligations
Market Valuation Established by Lubbock Central
Appraisal District ("LCAD")
Less Exemptions/Reductions at Market Value:
Residence Homestead (Over 63 or Disabled)
Disabled Veterans Exemptions
Open -Space Land Use
Value lost because property is exempted from taxation under
the Property Redevelopment and Tax Abatement Act
Value of property in a Reinvestment Zone created under the
Tax Increment Financing Act(1)
Taxable Assessed Valuation
City Funded Debt Payable From Ad Valorem Taxes M
General Obligation Debt
The Series 1991 Certificates (SRF Loan)
The Series 1992 Certificates(SRF Loan)
The Series 1993 Certificates (SRF Loan)
Funded Debt Payable From Ad Valorem Taxes
Less: Self -Supporting Debt (3k
Waterworks System General Obligation Debt
Sewer System General Obligation Debt (4)
Golf Course General Obligation Debt
Solid Waste Disposal System General Obligation Debt
Total Self -Supporting Debt
General Purpose Funded Debt Payable
From Ad Valorem Taxes
$4,931,021,795
161,405,526
3,322,291
34,569,789
5,034,673
981.312 203,313,581
$4,723,709,214
Anticipated
Anticipated
As Of
As Of
As Of
2-13-1991
4-13-1992
4-13-1993
95,793,732
5 99,763,752
$119,703,752
1,655,000
39,123,000
9,920,000
$ 97,439,752 $127,988,752 $129,523,752
37,615,432 $ 34,321,094 $ 31,243,476
15,533,404 53,447,949 61,996,673
670,000 635,000 595,000
1.145.000 1.095.000 1.025.000
$ 54,963,936 $ 99,489,042 $ 94,860,149
$ 42,474,916 $ 39,399,710 $ 34,663,603
Interest and Sinking Fund (as of 2-13-1991) $2,042,182
Ratio Total Funded Debt to 1990 Taxable Assessed Valuation (as of 2-13-1991)--------------- 1.69%
Ratio General Purpose Funded Debt to 1990 Taxable Assessed Valuation (as of 2-13-1991) ----- 0.90%
1990 U.S. Census Population - 186,206
Per Capita 1990 Taxable Assessed Valuation - $25,379.93
Per Capita General Purpose Funded Debt (as of 2-13-1991) - $227.34
Area - 104. Square Miles
(1) Tax Increment District ("TID") created in 1986 that covers a .71 square mile area including part of the
central business district. The tax base of the T1D on 1-1-1987 was $91,919,040; the 1990 Assessed
Valuation is $92,900,352, resulting in an Increment of $981,312.
(2) The statement of indebtedness includes $2,000,000 General Obligation Bonds, Series 1991 (the
"Bonds"); $16,120,000 Combination Tax and Waterworks System Certificates of Obligation, Series 1991
(the "Waterworks Certificates"); $1,145,000 Combination Tax and Solid Taste Disposal System
Certificates of Obligation, Series 1991 (the "Solid Waste Certificates"); $4,030,000 Combination Tax and
Exhibition Hall/Auditorium (Limited Pledge) Revenue Certificates of Obligation, Series 1991 (the
"Exhibition HaIJ/Auditorium Certificates"); and $1,085,000 Public Property Finance Contractual
Obligations, Taxable Series 1991 (the "Contractual Obligations"); all selling April 23, 1991. The statement
excludes outstanding $39,005,000 Electric Light and Power System Revenue Bonds and $7,500,000 Electric
Light and Power System Revenue Bonds selling April 23, 1991, as these bonds are payable solely from the
net revenues derived from the System. The statement also does not include outstanding $710,000 Airport
Revenue Bonds, as these bonds are payable solely from gross revenues derived from the City of Lubbock
Airport. The Waterworks System and the Sewer System are unencumbered with Revenue Bond Debt.
After sale and issuance of the Bonds the City will nave $8,012,000 authorized but unissued general
obligation bonds; the City has no present plans for the sale of these bonds and these bonds are not included
in any of the above calculations. The City may sell any or all of these bonds in 1992 or later years; see
"Authorized General Obligation Bonds".
(3) See "COPPutation of Self -Supporting Debt".
(4) Includes The Series 1991 Certificates, the Series 1992 Certificates and the Series 1993 Certificates.
Debt service on the Series 1991 Certificates, the Series 1992 Certificates and the Series 1993 Certificates
will be provided for from Net Revenues of the Sewer System (see "Projection of Revenues, Expense, Net
Revenues and Debt Service Coverage, Sewer System").
-13-
Taxable Assessed Valuations by Category
A
CategorX
Amount
Total
Amount
Total
Amount
ea esi ntia ,Single -Family
,413,925,206
48.95%
2,383,736,852
49.17% ,346,063,915
,
Real, Residential, Multi -Family
313,170,381
6.35%
319,554,804
6.59%
331,959,071
Real, Vacant Lots/Tracts
117,839,348
2.39%
114,489,842
2.36%
100,449,123
Real, Acreage (Land Only)
52,453,590
1.06%
49,704,917
1.02%
68,423,836
Real, Farm and Ranch Improvements
13,608,943
0.28%
21,391,576
0.44%
15,765,945
Real, Commercial and Industrial
1,076,715,771
21.83%
1,063,031,842
21.93% 1,024,709,193
Real, Oil, Gas and Other Mineral Reserves
22,182,456
0.45%
17,009,395
0.35%
13,059,266
Real and Tangible Personal, Utilities
153,608,032
3.12%
153,052,116
3.16%
147,145,068
Tangible Personal, Commercial and Industrial
737,020,743
15.12%
696,846,104
14.37%
680,408,987
Tangible Personal, Other
6,360,698
0.13%
9,805,356
0.20%
12,548,767
Real Property, Inventory (1)
Total Appraised Value Before Exemptions
15,746,173
4,931,021,795
0.32%
100.00%
19,736,977
4,849,359,791
0.41% 18,277,912
100.00%
4,758,811,083
Lesst Total Exemptions/Reductions
Net Taxable Assessed Valuation
205 313 581
54,725,708 214
202 445 071
4 645 914 710
191.423,346
4,567,387,737
Taxable Appraised
Value For Fiscal
Year Ended September 30,
1988
1987
% of
% or--
CategarX
Amount
Total
Amount
Total
a ea, Residential,Single-Family
2,311,452,929
49.59% 2,276,202,096
49.62%
' Real, Residential, Multi -Family
349,669,150
7.50%
363,811,180
7.93%
Real, Vacant Lots/Tracts
104,432,370
2.24%
94,789,630
2.07%
Real, Acreage (Land Only)
63,791,046
1.37%
72,565,374
1.58%
Real, Farm and Ranch Improvements
18,862,566
0.40%
16,309,030
0.36%
Real, Commercial and Industrial
1,008,946,758
21.64% 1,012,045,109
22.06%
Real, Oil, Gas and Other Mineral
Reserves
9,096,810
0.20%
7,340,010
0.16%
Real and Tangible Personal, Utilities
137,318,274
2.95%
131,044,689
2.86%
Tangible Personal, Commercial and Industrial
638,050,142
13.69%
592,190,179
12.91%
Tangible Personal, Other
19,785,495
0.42%
20,754,776
0.45%
Real Property, Inventory (1)
-0-
0.00%
-0-
0.00%
Total Appraised Value Before Exemptions 4,661,405,540
100.00% 4,387,052,067
100.00%
Less: Total Exemptions/Reductions 184 833,.272
Net Taxable Assessed Valuation 476 268
178.726,668
4
572
4,408,325,399
Total
49.30%
6.98%
2.11%
1.44%
0.33%
21.54%
0.27%
3.09%
14.30%
0.26%
0.38%
100.00%
1 es: entirinventory properties in the hands of developers or builders; each group of properties in this
category is appraised on the basis of its value as a whole as a sale to another developer or builder. This
category initiated in 1988.
Note: Basis of assessment for all years is 100% of appraised (market) value. Taxable properties are revalued
each year.
Valuation and Funded Debt History
Ratio
General General
Purpose Purpose
Funded Funded
Fiscal Taxable Tax Debt Debt to
Year Taxable Assessed Outstanding Taxable Funded
Ended Estimated Assessed Valuation
at End Assessed Debt
9-30 Population Valuation (1) Per Capita of Year 3 Valuation Per Capita
1982 178,282
,682,330,67E 513,045
$36,177,773 1.35% 203
1993 181,300 3,224,289,000 -
17,763 46,633,736 1.43% 257
1984 182,103 3,233,722,496
17,738 47,257,744 1.46% 260
1983 187,629 3,764,763,644
20,063 43,320,601 1.13% 231
1986 188,283 4,012,901,33E
21,313 39,848,682 0.99% 212
1987 188,694 4,408,323,399
23,362 37,340,011 0.93% 199
198E 190,017 4,476,572,268
23,35E 39,670,291 0.39% 209
1989 191,403 4,567,337,737
23,863 43,066,998 0.94% 223
1990 186,206(2) 4,643,914,710
24,930 39,179,037 0.94% 210
1991 186,206(2) 4,725,703,214
25,379 42,474,916(4) 0.90% 223
(1) basis of assessment for all years 100% of
market value. Since 1982 all taxable property has been
revalued each year.
(2) 1990 U.S. Census population.
(3) Funded Tax Debt less Self -Supporting Funded Tax Debt. Derivation of General Purpose Funded Tax
Debt is:
General
Purpose
Funded
Funded
Fiscal Tax Debt
Less: Tax Debt
Year Outstanding
Self -Supporting Outstanding
Ending at End
Funded Tax at End
9-30 of Year
Debt of Year
1982 $67,900,000
$31,722,222 $36,177,773
1933 81,300,000
34,846,244 46,633,736
1984 39,180,000
41,932,256 47,247,744
1983 82,335,000
39,214,399 43,320,601
1986 79,889,070
40,040,38E 39,848,682
1987 79,279,070
40,739,039 37,340,011
199E 82,939,732
43,288,461 39,670,291
1989 $6,898,752
43,831,754 43,066,99E
1990 79,039,732
39,909,693 39,179,037
1991(4) 97,438,732
34,963,936 42,474,916
Note: For all years Self -Supporting Debt includes Waterworks System and Sewer System General
Obligation Debt. 198E-1991 includes Golf Course General Obligation debt. 1991 includes Solid Waste
Disposal System General Obligation Debt and the Series 1991 Certificates (see "Valuation, Exemptions and
Debt Obligations").
(4) Anticipated; includes the Bonds, the Waterworks Certificates, the Solid Waste Certificates, the
Exhibition Hall/Auditorium Certificates, the Contractual Obligations, all selling April 25, 1991, and the
Series 1991 Certificates.
Tax Rate, Levy and Collections History
Fiscal
Year Distribution
Ended Tax General Board of City
interest and % Current % Total
9-30 Rate Fund Development
1992 TO.66 50.3223 - $0.03
Si'nkiny Fund Tax Levy (11 Collections Collections
0.2875 $17,703,332 93.55% 98.97%
1933 0.61 0.2791 0.05
0.2909 19,168,137 93.05% 97.41%
1994 0.61 0.2230 0.05
0.3370 19,725,707 93.32% 97.94%
1993 0.61 0.2105 0.03
0.3493 22,963,03E 93.77% 95.93%
1986 0.60 0.2553 0.03
0.2947 24,077,40E 94.16% 96.60%
1987 0.60 0.2762 0.03
0.2738 26,449,952 95.74 % 99.84%
198E 0.61 0.2767 0.03
0.2833 27,307,091 95.93% 99.94%
1989 0.64 0.3171 0.05
0.2729 29,231,292 96.01% 99.98%
1990 0.64 0.3314 0.05
0.2386 29,733,934 96.15 % 99.10%
1991 0.64 0.376E 0.00
0.2632 30,244,533 94.10% (2) 95.48%(2)
(1) Fiscal years 9-30-32 through 9-30-90 have been corrected for errors and adjustments.
(2) Collections for part year only, through 2-28-1991.
.17-
y
Property within the City Is assessed as of January 1 of each year; taxes become due October 1 of the
same year, and become delinquent on February 1 of the following year. Split payments are not permitted.
Discounts are not allowed.
Charges for penalty and interest on the unpaid balance of delinquent taxes are made as follows:
Month
Penalty
Interest
Total
February
6%
1%
7%
March
7%
2%
9%
April
8%
3%
11%
May
9%
4%
13%
June
10%
3%
13%
July
12%
6%
19%
After July pens ty remains at 12%, and interest increases as the rate of 1% each month. In addition, if an
account Is delinquent in July, a 13% attorney's collection fee is added to the total tax penalty and interest
charge.
Ten Largest Taxpayers
Name of Taxoaver
Texas Instruments incorporated
South Plains Mall
Southwestern Bell Telephone Company
Southwestern Public Service Company
Furr's incorporated
Plains Co-op Oil Mill
Farmers Co-op Compress
First National Bank at Lubbock
Flemming Company
Sentry Savings Association (1)
I990
% of Total
Taxable
Taxable
Assessed
Assessed
Nature of Property
Valuation
Valuation
Electronics Manufacturer
89,851,906
1.90%
Regional Shopping Mall
71,320,087
1.31%
Telephone Utility
71,004,114
1.30%
Electric Utility
39,893,026
0.84%
Retail Groceries
36,828,694
0.78%
Agricultural Processing
23,183,122
0.49%
Cotton Compress
20,106,439
0.43%
Bank
19,575,019
0.43%
Grocers Supplier
17, 269,140
0.37%
Savings and Loan; Residential/
Commercial Properties
16,577,249
0_33%
403 600 793
8.38%
1 Now Consolidated Federal Savings Bank.
Tax Rate Limitation
All taxable property within the City is subject to the assessment, levy and collection by the City of a
continuing, direct annual ad valorem tax sufficient to provide for the payment of principal of and interest
on all ad valorem tax debt within the limits prescribed by law. Article XI, Section 3, of the Texas
Constitution is applicable to the City, and limits its maximum ad valorem tax rate to $2.30 per $100
Assessed Valuation for all City purposes. The City operates under a Home Rule Charter which adopts the
constitutional provisions.
By each September 1 or as soon thereafter as practicable, the City Council adopts a tax rate per $100
taxable value for the current year. The tax rate consists of two components: (1) a rate for funding of
maintenance and operation expenditures, and (2) a rate for debt service.
Under the Tax Code:
The City must annually calculate and publicize its "effective tax rate" and "rollback tax rate". The City
Council may not adopt a tax rate that exceeds the lower of the rollback tax rate or 103% of the effective
tax rate until it has held a public hearing on the proposed increase following notice to the taxpayers and
otherwise complied with the Tax Code. If the adopted tax rate exceeds the rollback tax rate the qualified
voters of the City by petition may require that an election be held to determine whether or not to reduce
the tax rate adopted for the current year to the rollback tax rate.
"Effective tax rate" means the rate that will produce last year's total tax levy (adjusted) from this year's
total taxable values (adjusted). "Adjusted" means lost values are not included in the calculation of last
year's taxes and new values are not Included in this year's taxable values.
"Rollback tax rate" means the rate that will produce last year's maintenance and operation tax levy
(adjusted) from this year's values (adjusted) multiplied by 1.08 plus a rate that will produce this year's debt
service from this year's values (unadjusted) divided by the anticipated tax collection rate.
Reference is made to the Tax Code for definitive requirements for the levy and collection of ad valorem
taxes and the calculation of the various defined tax rates.
-18-
Assessed Valuations, Tax Rates, Outstanding Debt and Authorized But Unissued Bonds of Overlapping
Taxing Jurisdictions
Taxing Jurisdiction
Lubbock Independent School District
Lubbock County
Lubbock County Hospital District
High Plains Underground Water
Conservation District No. I
Lubbock -Cooper Independent School District
Frenship Independent School District
Roosevelt Independent School District
Idalou Independent School District
New Deal Independent School District
1990 Outstanding Authorized
Taxable 1990 Tax Supported But Unissued
Assessed Tax Debt As of Debt As of
Valuation Rate 2-13-91 2-13-91
4,339,186,138 1.20000 49,024,989 $15,600,000
3,659,377,325 0.17630 6,473,000 -0-
3,630,201,098 0.10950 -0- -0-
5,630,201,098 0.00720 -0- -0-
130,718,978 1.19000 3,310,000 -0-
414,082,263 0.90000 27,435,000 -0-
104,484,821 1.03500 -0- -0-
113,444,435 0.99680 966,000 -0-
81,471,333 0.95229 -0- -0-
Sources: Lubbock Central Appraisal District and "Texas Municipal Reports" published by the Municipal
Advisory Council of Texas.
-19-
Debt Service Requirements (General Obligation Basis)
Fiscal
Year
-
Ending
Outstanding Debt (1)
9-30
Principal
Interest
Total
1991 5
7, 85, 0
,5 9, 0
13,204,770
1992
8,675,000
7,065,663
15,740,663
1993
8,185,000
5,996,666
14,181,666
1994
7,920,000
5,386,224
13,306,224
1"5
7,455,000
4,798,446
12,253,446
1996
7,555,000
4,219,929
11,774,929
1997
7,364,434
3,799,424
11,163,858
1998
7,365,076
3,252,344
10,617,420
1999
7,251,493
2,703,532
9,953,025
2000
4,789,986
4,219,804
9,009,790
2001
4,414,442
3,464,450
7,878,892
2002
4,008,639
2,508,732
6,317,371
2003
3,844,682
1,786,124
5,630,806
2004
2,705,000
1,083,961
3,788,961
2005
2,705,000
894,143
3,599,143
2006
2,710,000
706,075
3,416,075
2007
2,710,000
517,658
3,227,659
2008
2,065,000
352,353
2,417,553
2009
1,730,000
223,430
1,953,450
c 2010
1,165,000
123,900
1,288,900
2011
1,165,000
41,300
1,206,300
2012
2013
2014
2013
Series 1991
Series
1992
Certificates
Certificates
(Project
A)
(Project B)
ri$
nt� t
�1 �nnci
Interest
64,820(2)
80,000
88,826
1,559,925(3)
80,000
84,426
2,501,522(3)
80,000
80,026
1,955,000
2,574,963
80,000
75,626
1,935,000
2,443,000
80,000
71,226
1,955,000
2,311,037
80,000
66,826
1,955,000
2,179,074
80,000
62,426
1,955,000
2,047,111
80,000
58,026
1,955,000
1,915,148
80,000
53,626
1,955,000
1,783,185
85,000
49,088
1,953,000
1,651,222
85,000
44,413
1,955,000
1,519,259
85,000
39,738
1,955,000
1,387,296
85,000
35,063
1,955,000
1,255,333
85,000
30,388
1,955,000
1,123,370
85,000
25,713
1,955,000
991,407
85,000
21,038
1,955,000
859,444
85,000
16,363
1,955,000
727,481
85,000
11,688
1,960,000
595,350
85,000
7,013
1,960,000
463,050
85,000
2,338
1,960,000
330,750
1,960,000
198,450
1,960,000
66,150
Series 1993
Certificates
(Project C)
r1J nt� crest
490,000
490,000
490,000
490,000
490,000
490,000
490,000
490,000
490,000
490,000
490,000
490,000
490,000
490,000
490,000
490,000
495,000
495,000
493,000
495,000
412,298(4)
637,805(4)
646,314
613,329
580,164
547,089
514,014
480,939
447,864
414,789
381,714
348,639
315,564
282,489
249,414
216,339
183,264
150,189
116,945
83,332
50,119
16,706
Combined
Requirements
$ 13,204,770
15,805,483
15,910,417
16,384,470
17,381,240
17,464,869
16,684,360
15,968,484
15,136,651
14,021,978
12,721,642
11,195,545
10,139,267
8,127,709
7,768,178
7,415,397
7,057,267
6,077,449
5,443,633
4,614,202
4,361,552
2,990,033
2,736,982
2,371,269
511,706
$103,468,752 $58,664,148 $162,132,900 $1,655,000 $ 988,697 $39,125,000 $30,483,527 $9,820,000 $7,689,429 $251,894,553
Interest on the Series 1991 Certificates has been calculated at 5.50%; interest on the Series 1992 and Series 1993 Certificates has been calculated
at 6.75% for purposes of illustration.
(1) Includes $2,000,000 General Obligation Bonds, Series 1991; $1,145,000 Combination Tax and Solid Waste Disposal System Revenue Certificates
of Obligation, Series I"l; $4,030,000 Combination Tax and Exhibition Hall/Auditorium (Limited Pledge) Revenue Certificates of Obligation,
Series 1991; $1,085,000 Public Property Finance Contractual Obligations, Series 1991 and $16,120,000 Combination Tax and Waterworks System
Subordinate Lien Revenue Certificates of Obligation, Series 1991 to be offered for sale April 25, 1991. Interest on the Bonds and the three series
of Certificates of Obligation has been calculated at 7.00% and interest on the Contractual Obligations has been calculated at 9.10% for purposes
of illustration.
(2) Interest based on drawdown schedule as estimated in SRF-35 (Project A). See Exhibit 9a.
(3) Interest based on drawdown schedule as estimated in SRF-35 (Project a). See Exhibit 9b.
(4) Interest based on drawdown schedule as estimated in SRF-35 (Project C). See Exhibit 9c.
Tax Adequacy
1990 Taxable Assessed Valuation-------------------------------------------------------------------------------- $4,723,708,214
Maximum Principal and Interest Requirements, 1995--------------------------------------------------------------- $ 17,581,240
$0.3917 Tax Rate @ 93 % Collection Produces-------------------------------------------------------------------- $ 17,585,069
% of
Principal
Retired
27.34%
57.81%
77.49%
9?.44%
100.00%
Division of General Obligation Debt Service Reouirements
Less:
Less:
Less:
Less:
Solid Waste
Waterworks
Sewer
Golf Course
Disposal
General
Fiscal
System
System
Facilities
System
Purpose
Year
General
General
General
General
General
Ending
Combined
Obligation
Obligation
Obligation
Obligation
Obligation
9-30
Requirements
Requirements
Requirements
Requirements
Requirements
Requirements
1991
13,204,770
4,309,742
2,221,415
97,167
i
6,586,446
1992
15,805,483
6,179,780
2,193,177
84,018
213,088
7,135,420
1993
15,910,417
5,442,579
3,731,148
95,642
183,073
6,447,974
1994
16,384,470
5,077,411
3,053,432
82,043
175,023
3,994,339
1995
17,381,240
4,672,435
7,163,283
83,218
166,975
3,493,309
1996
17,464,869
4,462,853
7,526,204
84,224
138,925
5,232,662
1997
16,684,360
4,226,521
7,282,330
85,302
150,975
4,939,332
1998
15,968,484
4,022,080
7,041,074
81,425
142,823
4,681,080
1999
15,136,651
3,771,596
6,782,234
82,400
134,775
4,365,646
2000
14,021,978
3,411,436
6,482,134
83,025
126,725
3,918,638
2001
12,721,642
3,110,072
5,965,142
83,300
113,850
3,549,279
2002
11,195,345
2,629,664
5,524,380
93,225
2,958,076
2003
10,139,267
2,297,133
3,230,772
82,800
2,538,562
2004
8,127,709
1,698,182
4,963,678
1,465,949
2005
7,768,178
1,616,334
4,758,283
1,393,561
2006
7,415,397
1,536,124
4,352,764
1,326,509
2007
7,037,267
1,455,914
4,347,070
1,254,283
2008
6,077,449
1,154,075
3,798,052
1,125,322
2009
5,443,633
1,054,836
3,602,141
786,656
2010
4,614,202
895,050
3,325,302
393,830
2011
4,361,552
838,350
3,155,252
367,950
2012
2,290,033
2,290,033
2013
2,736,982
2,736,982
2014
2,571,269
2,571,269
2013
511,706
311,706
$251,894,533
$ 63,832,186
$113,433,477
$1,087,799
$1,566,138
$ 71,954,963
-21-
Estimated Direct and Overlapping Funded, Debt Payable FrontAdValorem Taxes (As of 2-15-1991)
Expenditures of the various taxing bodies within the territory of the City are paid out of ad valorem taxes
levied by these taxing bodies on properties within the City. These political taxing bodies are independent
of the City and may incur borrowings to finance their expenditures. The following statement of direct
and estimated overlapping ad valorem tax bonds was developed from information contained in "Texas
Municipal Reports" published by the Municipal Advisory Council of Texas and from data furnished by the
Lubbock Central Appraisal District. Except for the amounts relating to the City, the City has not
independently verified the accuracy or completeness of such information, and no person should rely upon
such information as being accurate or complete. Furthermore, certain of the entities listed below may
have issued additional bonds since the date stated in the table, and such entities may have programs
requiring the issuance of substantial amounts of additional bonds the amount of which cannot be
determined. The following table reflects the estimated share of overlapping funded debt of these various
taxing bodies.
Estimated
Total
%
Overlapping
Taxing Jurisdiction
Funded Debt
Applicable
Funded Debt
City of Lubbock
42,474,916(1)
100.00%
$42,474,916
Lubbock Independent School District
49,024,999
98.19%
48,137,637
Lubbock County
6,473,000(2)
96.55%
3,604,113
Lubbock County Hospital District
-0-
86.69%
-0-
Lubbock-Cooper Independent School District
3,310,000
14.17%
752,427
Frenship Independent School District
27,455,000
63.29%
17,376,270
Roosevelt Independent School District
-0-
4.67%
-0-
New Deal Independent School District
-0.
0.0296
-0-
Idalou Independent School District
966,000
0.73%
7,425
Total Direct and Overlapping Funded Debt
$114,352,609
Ratio of Direct and Overlapping Funded Debt to Taxable Assessed Valuation -----------------
2.42%
Per Capita Overlapping Funded Debt ---------------------------------------------------
$614.12
1 General purpose funded debt.
(2) Includes $4,000,000 Certificates of Obligation to be sold
on May 13, 1991,
to finance
the construction
of a community correctional center.
Interest and Sinking Fund Budget Projection
General Obligation Debt Service Requirements
for Fiscal Year Ending 9-30-91----------------------------------------------
$13,204,770
Plus: Fiscal Agent, Tax Collection and Other Fees --------------------------------
139,602
13,344,372
Sources of Funds:
Interest and Sinking Fund, All General Obligation Issues, 9-30-90--------$
639,570
1990 Interest and Sinking Fund Tax Levy at 98% Collection -------------
12,174,920
Estimated Interest Earned and Transfers From Other
City Funds, as budgeted-------------------------------------------
667,015
13,491,503
Estimated Balance at 9-30-91-------------------------------------- S 137.133
-22-
Computation of Self -Supporting Debt
Waterworks System (1)
Net System Revenue Available
Less: Revenue Bond Requirements
Balance Available for Other Purposes
System General Obligation Debt Requirements
Balance
Percentage of System General Obligation Debt
Self -Supporting
Fiscal Year Fiscal Year
Ended Ended
9-30-89 9-30-90
9,979,399 $12,948,112
-0- -0-
$ 3,979,899 $12,849,112
4,383,353 4,362,964
$ 4,293,346 $ 8,283,14E
100% 100%
1 it is the ity's policy each Fiscal Year to transfer from Water Enterprise Fund surplus to the General
Fund an amount at least equivalent to debt service requirements on Waterworks System General
Obligation Bonds. The City has no outstanding revenue bonds payable from a lien on the net revenues of
the Waterworks System.
Debt service requirements on the $16,120,000 Waterworks Certificates will be provided by direct deposit
into the Waterworks Certificates Interest and Sinking Fund from Water Enterprise Fund net revenue.
In Fiscal Year Ended 9-30-83 the City Council established a "Rate Stabilization Fund' within the Water
Enterprise Fund to be accumulated from System net revenues. At 9-30-90 the balance in the rate
stabilization account was $4,993,038.
Sewer System (1)
Net System Revenue Available
Less: Revenue Bond Requirements
Balance Available for Other Purposes
System General Obligation Debt Requirements
Balance
Percentage of System General Obligation Debt
Self -Supporting
Fiscal Year Fiscal Year
Ended Ended
9-30-89 9-30-90
$4,972,520 $6,290,565
-0- -0-
$4,972,520 $6,280,565
2,047,830 2,311,728
2 924 690 $3,969,937
100.00% 100.00%
1 It is the ity's policy each Fiscal Year to transfer from Sewer Revenue Fund surplus to the General
Fund an amount at least equivalent to debt service requirements on Sewer System General Obligation
debt; and this policy will continue for outstanding Sewer System General Obligation Debt.
Debt service requirements on the Series 1991, Series 1992 and Series 1993 Certificates will be provided by
direct deposit into the respective Interest and Sinking Funds from Sewer Enterprise Fund net revenue.
The City has no outstanding revenue bonds payable from a lien on the net revenues of the Sewer System.
In Fiscal Year Ended 9-30-90 the City Council established a "Rate Stabilization Fund' within the Sewer
Enterprise Fund to be accumulated from System net revenues. At 9-30-90 the balance in the rate
stabilization account was $933,499.
-23-
Solid Waste Disposal System (1)
Net System Revenue Available
Less: Revenue Bond Requirements
Balance Available for Other Purposes
System General Obligation Debt Requirements
Balance
Percentage of System General Obligation
Debt Self -Supporting
Fiscal Fiscal
Year Year
Ended Ended
9-30-99 9-30-90
$823,680 $1,448,149
-0- -0-
$823,690 $1,448,149
-0- -0-
$823,690 $1,449,149
N.A. N.A.
1 It is the City's intention to transfer each year from Solid Waste Enterprise Fund to the General Fund
an amount at least equivalent to debt service requirements on Solid Waste Disposal System General
Obligation debt, currently anticipated to be the Solid Waste Certificates. Although there has been no
Solid Waste Disposal System General Obligation debt, estimated maximum annual debt service of $158,089
(1992) on the Solid Waste Certificates would have historically been self -supported.
Golf Course Facilities (1)
Net System Revenue Available
Less: Revenue Bond Requirements
Balance Available for Other Purposes
System General Obligation Debt Requirements
Balance
Percentage of System General Obligation
Debt Self -Supporting
Fiscal
Fiscal
Fiscal
Year
Year
Year
Ending
Ending
Ending
9-30-91
9-30-89
9-30-90
(Budget)
$ 73,611 $ 8,980 $183,362
-0- -0- -0-
$ 73,611 $ 8,980 $183,362
86,366 95,093 97,167
02 933) 76,113 96,195
83.03% 10.33% 100.00%
1 It is the City's policy each Fiscal Year to transfer from Golf Course Enterprise Fund surplus to the
General Fund an amount at least equivalent to debt service requirements on Golf Course Facilities
General Obligation debt. This transfer was made in Fiscal Year Ended 9-30-89 in the amount of $91,906;
golf course facilities general obligation debt service was $96,366. This transfer was made In Fiscal Year
Ended 9-30-90 in the amount of $93,602; golf course facilities general obligation debt service was $93,093.
The City has no outstanding revenue bonds payable from a lien on the net revenues of the Golf Course
Facilities. A subordinate lien on Net Revenues is held by outstanding Combination Tax and Golf Course
Revenue Certificates of Obligation, Series 1988; debt service on this Issue Is Included in "Golf Course
Facilities General Obligation Requirements" in the schedule of Debt Service Requirements.
Primarily because of major renovations and upgrading of golf course facilities, Including equipment, net
revenue was below the level of Golf Course Facilities General Obligation debt service requirements in
Fiscal Years Ended 9-30-89 and 9-30-90.
-24-
In addition to an increase in green fees and other charges effective 10-1-90, the recent improvements are
expected to enhance use of the golf course. Operating revenues for Fiscal Year Ending 9-30-1991 are
budgeted to increase 10.73% above those for Fiscal Year Ended 9-30-1990. Budgeted Net Revenues are
projected to fully provide for debt service.
As a result of the transfers to the General Fund that were made in Fiscal Years Ended 9-30-89 and
9-30-90 and budgeted Net Revenues and the debt service transfer that will be made in Fiscal Year Ending
9-30-91, Golf Course Facilities General Obligation Debt is treated as fully self-supporting.
Authorized General Obligation Bonds
Amount
Amount Being
Date Heretofore Issued Unissued
Purpose Authorized Authorized Issued 4-23-1991 Balance
Waterworks System 11-21-81 3,226,000 3,000,000 -0- 226,000
Waterworks System 10-17-87 2,910,000 200,000 -0- 2,61,0,000
Sewer System 3-21-77 3,303,000 2,173,000 -0- 1,129,000
Sewer System 10-17-87 2,333,000 2,533,000 -0- -0-
Street Improvements 10-17-87 13,273.000 7,227,000 2,000,000 41049,000
27,149,000 $17,137,000 $2,000,000 $8,012,000
Anticipated Issuance of Authorized General Obligation Bonds and Other Obligations
On April 23, 1991, the City plans to offer at advertised sale the following:
$ 2,000,000 General Obligation Bonds;
$ 1,1451000 Combination Tax and Solid Waste Disposal System Revenue Certificates of
Obligation;
$16,120,000 Combination Tax and Waterworks System Subordinate Lien Revenue Certificates of
Obligation;
$ 4,030,000 Combination Tax and Exhibition Hall/Auditorium (Limited Pledge) Revenue
Certificates of Obligation; and
$ 1,085,000 Public Property Finance Contractual Obligations, Taxable Series 1991.
Principal and interest (at an assumed rate of 7% on the Bonds and the three series of Certificates of
Obligation and 9.10% on the Contractual Obligations) of the above obligations have been included in the
calculation of "Debt Service Requirements (General Obligation Basis)", above.
The City has no present plans for the sale and issuance of the remaining $8,012,000 authorized but
unissued general obligation bonds, but may sell and issue these bonds in 1992 or later years.
Citizens Advisory Committee
A City Council appointed Citizens Advisory Committee Is studying a three year (1992-1994) capital
improvements program and will report to the City Council in late Spring, 1991. The City anticipates that
an election for the authorization of bonds for various purposes will be held in the Fall, 1991.
Funded Debt Limitation
There is no direct debt limitation in the City Charter or under State Law. The City operates under a
Home Rule Charter that limits the maximum tax rate, for all City purposes, to $2.30 per $100 Assessed
Valuation. Administratively, the Attorney General of the State of Texas will permit allocation of $1.30 of
the $2.50 maximum tax rate for general obligation debt service.
Other Obggatlons
(1) The City has entered into lease agreements for the purpose of acquiring certain properties and
equipment. As of February 15, 1991, capital leases were as follows:
-23-
Balance
Payable From 1991 1992 1993 1994 1995 1996 Interest Outstanding
General Government
Telephone Equipment $ 38,021 $ 65,177 $ 65,177 $ 65,177 $ 21,726 $ -0- $(38,548) $ 216,730
Enterorise Fund
Sewer -Sprinkler Equipment$ 3,49E $ 3,99E $ -0-
$ -0- $ -0- $ -0- $ (303) $ 7,193
Golf -Golf Equipment 33,78E 16,894 -0-
-0- -0- -0- (2,913) 47,767
Solid Waste -Scraper 39,019 66,990 66,990
66,990 66,990 11,14E (32,027) 263,700
Total Enterprise 76,303 S 97,792 S 66,890
S 66,990 S 66,990 S ll 14E 05 245) $ 320,660
Combined Requirements $114,326 $132,939 $132,067
$132,067 $ $8,916 $ 11,14E $(93,793) $ 337,390
(2) AQuisltlon and Renovation of Sears Building ...
On October 15, 1982, the City of Lubbock entered
into an agreement with the American State Bank, Lubbock Q'American") to purchase the 96,810 square
foot "Sears" building located in downtown Lubbock.
Originally constructed by Sears, Roebuck & Co., the
building and site were sold to the adjacent American State Bank following Sears construction of new
facilities in South Plains Mall, Lubbock, several years ago. The City also acquired 3 additional sites near
the Sears site for parking expansion in the future.
The City has renovated and remodeled approximately 55,000 square feet of the Sears building to house
administrative and City Council functions, and this building is now the main Municipal Complex with
parking space for 205 vehicles and a future expanded parking capability of 450 vehicles.
Budget for the project was $3,600,000:
Acquisition of Sears building/site
$ 751,000
Purchase of additional property
302,923
Renovation of 55,000 square feet
2,201,949
Contingencies and other costs
Total Cost
344,226
$3,600,000
Shown below is the "Sears Building Finance Schedule", which was prepared by the City of Lubbock.
Salient elements of the City's agreement with "American" and the "Finance Schedule" includes:
(1) Advance Balance. Acquisition and remodeling cost of the Sears property was financed by
advances rom merican . Net advance balances are shown on a quarterly basis; actual balances to
1-15-1991. $3,310,000 of the budgeted project cost of $3,600,000 was financed through the advance
process. The $290,000 balance was allocated from Revenue Sharing Funds.
(2) Total Payment. Actual and future quarterly payments to "American" including interest quarterly
at an annual rate of 12 3/4%. Final payment, 1-15-94, $2,917,1118.
(3) Additional Site Acquisition. The City acquired 3 additional, adjacent sites for future parking
expansion, paying $159,000 in cash and assuming payments on 3 notes. Payment of the $159,000 and
combined payments on the 3 notes are demonstrated.
(4) Escrow Deposits. The City has deposited funds into an "Escrow Account" at "American" from
which payments will be made to "American" as referred to In (2), above, and on the notes referred to
In (3) above. Deposits totaled $3,288,000 and the "Escrow Account" is funded.
(5) Escrow Interest Earnings. "American" pays the City Interest quarterly on the balance in the
"Escrow Account" at the annual rate of 12 1/2%.
(6) Escrow Balance. The Escrow Balance at the end of any quarter will always exceed the Advance
Balance.
(7) In the opinion of the City Attorney the financial arrangement with "American" described above
does not constitute a legal debt of the City since funds will be pledged at all times and placed in the
"Escrow Account" In amounts that, with interest earned, will exceed the outstanding Advance Balance
throughout the life of the agreement.
-26-
Sears Building
Finance Schedule
Additional
Escrow
Minimum
A dyance
Total
Site
Escrow
interest
Escrow
Year
Month
Balance
Payment
Acquisition
Deposits
Earnings
Balance
1982-83
10-15
$ 751,000
$159,000
$1,073,000
$ 914,000
1-15
751,000
$ 23,938
5,331
$ 28,563
913,294
4-15
1,251,000
23,933
5,331
475,000
28,540
1,387,563
7-15
1,751,000
39,976
5,331
475,000
43,361
1,860,719
1983-84
10-13
2,251,000
53,913
5,331
525,000
59,147
2,392,723
1-15
2,924,001
93,730
5,331
573,000
74,460
2,933,102
4-15
2,920,266
93,730
5,331
91,659
2,923,690
7-13
2,916,412
93,730
3,331
91,42E
2,919,027
1994-93
10-15
2,912,433
93,730
5,331
91,13E
2,910,134
1-15
2,903,331
93,730
3,331
125,000
90,942
3,026,993
4-13
2,902,125
93,730
3,331
94,394
3,022,507
7-15
2,900,990
93,750
5,331
94,453
3,017,990
1985-96
10-15
2,899,596
93,730
3,331
94,309
3,013,109
1-13
2,899,270
93,730
5,331
94,160
3,008,136
4-13
2,896,903
93,730
5,331
94,006
3,003,111
7-15
2,995,491
93,730
3,331
93,847
2,997,977
1996-87
10-15
2,894,033
93,750
5,331
93,684
2,992,490
1-13
2,892,532
93,750
5,331
93,313
2,986,914
4-13
2,890,992
93,730
3,331
93,341
2,991,174
7-15
2,999,392
93,730
3,331
93,162
2,973,253
1987-93
10-15
2,887,731
93,730
5,331
92,977
2,969,150
1-13
2,886,027
93,730
5,331
92,796
2,962,935
4-13
2,994,270
93,730
3,331
92,599
2,956,363
7-15
2,892,436
93,750
5,331
92,396
2,949,669
1989-99
10-13
2,880,594
93,730
3,331
40,000
92,177
2,992,765
1-13
2,979,633
93,730
3,331
93,211
2,976,993
4-13
2,976,660
93,750
3,331
93,029
2,970,942
7-13
2,874,603
93,730
3,331
92,939
2,964,600
1999-90
10-13
2,972,481
93,750
5,331
92,644
2,958,163
1-13
2,870,291
93,730
3,331
92,443
2,931,525
4-13
2,868,032
93,750
3,331
92,233
2,944,679
7-13
2,865,700
93,750
5,331
92,021
2,937,619
1990-91
10-13
2,863,295
93,750
3,331
91,801
2,930,339
1-15
2,860,912
93,730
3,331
91,573
2,922,831
4-13
2,858,251
93,730
5,331
91,333
2,915,09E
7-13
2,853,607
93,750
3,331
91,097
2,907,104
1991-92
10-13
2,852,890
93,730
3,331
90,947
2,993,970
1-15
2,930,063
93,750
3,331
90,590
2,990,373.
4-13
2,947,161
93,750
5,331
90,324
2,931,622
7-15
2,944,164
93,750
3,331
90,031
2,372,591
1992-93
10-13
2,941,072
93,750
4,637
89,763
2,963,973
1-13
2,E37,881
93,750
670
99,499
2,939,052
4-15
2,834,399
93,750
670
39,343
2,853,977
7-15
2,831,191
93,750
670
89,197
2,343,744
1993-94
10-15
2,927,686
93,750
670
99,023
2,943,347
1-15
2,E27,686
2 917 ,131E
6 E11 383
670
$374,896
3 288 000
EE,E53
3 9l1 993
13,714
-27-
Pension Fund
Texas Municipal Retirement System ... All permanent, full-time City employees who are not firemen
are covered by the Texas Municipal Retirement System. The System is a contributory, annuity -purchase
type plan which is covered by a State statute and is administered by six trustees appointed by the
Governor of Texas. The System operates independently of its member cities.
The City of Lubbock Joined the System in 1950 to supplement Social Security. All City employees except
firemen are covered by Social Security. Options offered under the System, and adopted by the City,
include current, prior and antecedent service credits, 20 year vesting, updated service credit,
occupational disability benefits and survivor benefits for the spouse of a vested employee. An employee
who retires receives an annuity based on the amount of the employees contributions over -matched two for
one by the City. Employee contribution rate is 6% of gross salary. The City's contribution rate Is
calculated each year using actuarial techniques applied to experience. The 1991 contribution rate is
11.31%. Enabling statutes prohibit any member city from adopting options which impose liabilities that
cannot be amortized over 25 years within a specified statutory rate.
On December 31, 1989, assets held by the System, not including those of the Supplemental Disability
Benefits Fund which is "pooled" for the City of Lubbock were $59,340,355. Unfunded accrued liabilities
on December 31, 1989, were �17,302,189, which is being amortized over the period 1989 through
2012. Total contributions by the City to the System in Fiscal Year Ending 9-30-90 were $3,348,997.
Firemen's Relief and Retirement Fund ... City of Lubbock firemen are members of the locally
administered Lubbock Firemen's Relief and Retirement Fund, operating under an act passed in 1937 by the
State Legislature and adopted by City firemen, by vote of the department, in 1941. Firemen are not
covered by Social Security.
The fund is governed by seven trustees, three firemen, two outside trustees (appointed by the other
trustees), the Mayor or his representative and the Assistant City Manager for Financial Services of the
City. Execution of the act is monitored by the Firemen's Pension Commissioner, who is appointed by the
Governor.
Benefits of retired firemen are determined on a "formula" or a "final salary" plan. Actuarial reviews are
performed every three years, and the fund Is audited annually. Firemen contribute 11% of full salary into
the fund and the City must contribute a like amount; however, the City contributes on a basis of the
percentage of salary which is a ratio adjusted annually that bears the same relationship to the firemen's
contribution rate that the City's rate paid into the Texas Municipal Retirement System and FICA bears to
the rate other employees pay into the Texas Municipal Retirement System and FICA. The City's present
contribution rate is 14.13%.
As of December 31, 1989, unfunded liabilities were $9,903,035, and are being amortized over a 27 year
period beginning October, 1989.
The City contributed $1,139,214 to the Fund during Fiscal Year ended 9-30-90.
•Sources: exas Municipal Retirement System, Comprehensive Annual Financial Report for Year Ended
December 31, 1999.
City of Lubbock, Texas.
-28-
FINANCIAL INFORMATION
General Fund Revenues and Expenditures
Budget ,
Fiscal Years Ended
Revenues
1990191
9-30-90
9-30-89
9-30-88
9-30-87
9-30-86
Ad Valorem Taxes
$16,039,069
14,911385
14,329,641
12,538,368
$12,044,707
$10,554,750
Sales Taxes
15,598,330
15,530:468
15,059,072
13,960,077
12,563,905
12,953,236
Franchise Taxes
3,529,528
3,377,870
3,077,372
3,108,228
3,111,362
2,970,720
Miscellaneous Taxes
686,736
712,203
629,320
669,292
646,777
474,172
Licenses and Permits
611,718
719,979
613,668
579,369
628,144
985,118
Intergovernmental
1,497,366
1,511,791
1,179,271
1,124,237
1,104,385
1,132,721
Charges for Services
2,209,265
2,243,428
2,091,277
2,058,402
1,885,450
2,297,414
Fines and Forfeits
2,925,500
2,489,471
2,365,787
2,063,207
1,581,702
1,946,281
Miscellaneous
3,236,788
3,222,731
3,802,560
2,694,897
2,836,814
2,946,185
Transfer from Other Funds and
Other Financing Sources
14,241,546
13,175,352
12,173,142
12,319,367
12,308,945
10,354,498
Total Revenues and Transfers (From)
$60,575,846
$57,994,678
$55,321,110
$51,115,444
$48,712,391
$46,615,095
Expenditures
enera overnment
$ 2,532,772
$ 3,056,633
$ 2,433,374
$ 2,056,093
$ 2,444,659
$ 2,308,491
Financial Services
1,871,693
1,815,589
1,751,968
1,671,752
1,507,961
1,487,064
Management Services
2,387,917
2,500,229
2,113,725
2,202,132
2,031,032
2,264,031
Development Services
7,084,112
5,831,381
5,522,932
5,312,624
5,282,956
6,019,109
Publlc Safety and Services
43,623,309
39,968,471
37,432,994
34,111,129
33,088,839
32,659,988
Non -Departmental
-0-
265,108
16,761
52,602
38,439
231,731
Transfer to Other Funds
2.333.770
3.720.260
5.941.416
4.809.466
3.402.501
2.039.289
Total Expenditures and Transfers (To) $60,033.573 57,157,671 $53,213,170 50,215.799 47,796,386 $47,009,703
Excess of Revenues and Transfers (From)
Over Expenditures (To)
$ 542,273
$ 737,007
$ 107,940
$ 899,645
$ 916,005
$ (394,608)
Adjustments
-0-
-0-
292,597
-0-
-0-
25,530
Fund Balance at Beginning of Year
9,343,076
8,606,069
8,205,532
7,305,887
6,339,882
6,758,960
Fund Balance at End of Year
$ 9,885,349
$ 9,343,076
$ 8,606,069
$ 8,205,532
$ 7,305,887
$ 6,399,882
Less: Reserves and Designations
N.A.
1 945 213)
(1 694 805)
1 829 358)
1 381 549)
1 494 300)
Undesignated Fund Balance
N.A.
5 7,397,863
6:911:264
5 6,376,174
5 3,924,338
5 4,995,582
Municipal Sales Tax History
The City has adopted the Municipal Sales and Use Tax Act, VTCA, Tax Code, Chapter 321, which
grants the City the power to impose and levy a 1% Local Sales and Use Tax within the City, the proceeds
are credited to the General Fund and are not pledged to the payment of the Bonds. Collections and
enforcements are effected through the offices of the Comptroller of Public Accounts, State of Texas,
who remits the proceeds of the tax, after deduction of a 2% service fee, to the City monthly. Revenue
from this source, for the years shown, has been:
Fiscal
Year
% of
Equivalent of
Ended
Total
Ad Valorem
Ad Valorem
Per
9-30
Collected
Tax Levy
Tax Rate
Ca lta*
1981
9,791,566
5E.69%
$0.646
55.41
1992
10,939,663
61.79%
0.40E
61.36
1993
11,333,581
59.17%
0.361
62.57
1994
12,490,746
63.27%
0.396
69.54
1995
13,310,103
57.93%
0.341
70.94
1996
12,933,236
33.90%
0.323
68.80
1997
12,563,903
47.30%
0.285
66.3E
198E
13,960,077
51.14%
0.312
73.47
1999
15,039,072
51.32%
0.330
78.6E
1990
13,330,46E
32.23%
0.334
93.40
• Based on estimated (or U. S. Census) population for all years.
Financial Policies
Basis of Accounting ... The City's policy is to adhere to accounting principles as established by the
Governmental Accounting Standards Board. For governmental funds, this is the modified accrual basis
and for proprietary funds the accrual basis of accounting.
General Fund Balance ... The City's objective is to achieve and maintain a General Fund balance
equivalent to two months operating cost of the General Fund Budget. This should be sufficient to provide
financing for necessary projects, unanticipated contingencies, and fluctuations in anticipated revenues.
Debt Service Fund Balance ... A reasonable debt service fund balance is maintained in order to
compensate for unexpected contingencies.
Use of Bond Proceeds, Grants, etc.... The City's policy is to use bond proceeds, revenue sharing or other
non -recurring revenues for capital expenditures and non -recurring expenses only. Such revenues are not
used to fund normal City operations.
Budgetary Procedures ... The City follows these procedures In establishing operating budgets.
1) Prior to August 1, the City Manager submits to the City Council a proposed operating budget for
the fiscal year commencing the following October 1. The operating budget includes proposed
expenditures and the means of financing them.
2) Public hearings are conducted to obtain taxpayer comments.
3) Prior to October I, the budget is legally enacted through passage of an ordinance.
4) The City Manager is authorized to transfer budgeted amounts between departments and funds.
Expenditures may not legally exceed budgeted appropriations at the fund level.
3) Formal budgetary integration is employed as a management control device during the year for
the General, Revenue Sharing, Board of City Development, Convention and Tourism, Criminal
Investigation, and Capital Projects Funds. Budgets are adopted on an annual basis. Formal
budgetary Integration is not employed for Debt Service Funds because effective budgetary control is
alternatively achieved through general obligation bond indenture and other contract provisions.
6) Budgets for General, Revenue Sharing, Board of City Development, Convention and Tourism,
Criminal Investigation, and Capital Projects Funds are adopted on a basis consistent with generally
accepted accounting principles (GAAP).
-30-
7) Appropriations for the General Fund and Board of City Development lapse at year end.
Unencumbered balances for the Revenue Sharing and Capital Projects Funds continue as authority
for subsequent period expenditures.
9) Budgetary comparisons are presented for the General Fund, Special Revenue Funds, and Capital
Projects Funds in the combined financial statement sections of the Comprehensive Annual Financial
Report.
Fund Investments ... The City's investment policy parallels State law which governs investment of public
funds. The City generally restricts investments to direct obligations of the United States Government and
insured or fully collateralized investments.
Insurance ... Except for Airport liability insurance, the City Is self -insured for liability, workers'
compensation, and health benefits coverage. Insurance policies are maintained with large deductibles for
fire and extended coverage and boiler coverage. An Insurance Fund has been established in the Internal
Service Fund to account for insurance programs and budgeted transfers are made to this fund based upon
estimated payments for claim losses.
The resrve for self-insurance for health benefits was $1,306,439 on 9-30-90. The reserve for self-
insurance for liability and workers' compensation was $2,034,723 on 9-30-90.
At 2-13-91 the reserves had the following balances:
Reserve for self-insurance - health $1,462,276
Reserve for self-insurance - other than health 2,301,239
-31-
The Sewer System
The Sewer System is operated as a separate enterprise fund and is not combined with the Waterworks
System.
The Collection System ... The sanitary sewage collection system, handled separately from the storm
drainage system, includes approximately 730 miles of trunk mains and collection lines with trunk malns
installed for future expansion of the collection system.
Water Reclamation Facilities ... Treatment facilities consist of the Southeast Water Reclamation Plant,
the City's major wastewater treatment facility, which consists of three treatment plants currently
permitted to treat a maximum 30-day flow of 23 million gallons per day ("mgd"), and the Northwest Plant,
with an average daily flow design capacity of 0.73 mgd. The Southeast Plant is in need of upgrade and
expansion as it is unable to consistently satisfy State permit treatment requirments.
Wastewater Flows ...
Southeast
Water
Northwest
Reclamation
Calendar
Plant
Plant
Year
(mgd)
(mgd)
1986
0.367
17.32
1987
0.424
17.36
1999
0.435
17.40
1999
0.399
18.33
1990
0.399
19.50
Effluent Disposal... Treated effluent is used for beneficial purposes; no effluent is discharged into
streams. Treated effluent from the Northwest Plant is used to irrigate approximately 1,060 acres of farm
land at Texas Tech University for agricultural research. Treated effluent from the Southeast Plant is
used to irrigate two land -application sites:
(1) A site located adjacent to the City on the southeast, consisting of 6,000 acres owned by the
City, currently being upgraded.
(2) A 3,400 acre privately owned farmland site near Wilson, Texas, approximately 13 miles
southeast of Lubbock. There is storage capacity of 780 million gallons at this site for effluent
pending its use for irrigation.
Southwestern Public Service Company has a contract with the City to use treated effluent from the
Southeast Plant for cooling purposes in Southwestern Public Service Company's 312,000 kilowatt electric
generating plant near Lubbock when the plant is in use.
Wastewater Treatment and Disposal Improvement and Expansion Project ... The City Is planning a
comprehensive wastewater treatment and effluent disposal program that will upgrade and expand the
Southeast Water Reclamation Plant, the City's major wastewater treatment facility. This program will
enable the Plant to consistently comply with Texas Water Commission and United States Environmental
Protection Agency permit requirements and provide treatment capacity to the design year 2010.
Effluent will continue to be disposed of through an enhanced land application system with alternative
effluent discharges to the North Fork Double Mountain Fork, Brazos River, ("NFDMF Brazos River")
below the plant.
See "Project Description", above, for a discussion of wastewater treatment problems and the wastewater
treatment plant improvement program.
-32-
CONDENSED STATEMENT OF OPERATIONS
SEWER SYSTEM
Budget
Fiscal Year Ended
Revenues
9-30-1991
9-30-1990
9-30-1989 2
9-30-1988 l
9-30-1997
9-30-1996
Operating Revenues
Charges for Service
$8,111,930
$ 8,533,893
$7,520,841
$4,599,994
$4,217,723
$3,433,423(3)
Effluent Water Sales
633,000
561,032
636,527
699,539
73,312
N.A.
Commodity Sales
Total Operating Revenues
555 000
9,301:930
456,332
5 9,571,277
360 696
9,318:034
781 320
6,070:743
199 446
4,491:683
N.A.
53,433,423
Non -Operating Revenues
Gross Revenues
114 277(4)
9,417,207
763 549
$10,334jgR
379 026
9,097:090
300 024
6,370:167
520 311
5,001:994
760 663
40194,086
Operating Expenses (3)
Personal Services $1,357,279 $ 1,009,313 $ 934,699 $ 331,603 $ 539,331 $ 583,364
Supplies 494,598 376,693 331,639 123,293 81,969 102,392
Maintenance 602,799 395,107 642,294 341,212 359,958 397,668
Collection Expense 217,743 224,284 204,807 171,011 240,352 129,340
Other Charges 1�,729�923 l85�870 2 l�l6l 3 034 319 2 0271627 870051
Total Operating Expense $41402,344 4,034,261 4 12V Shp V 201 440 3 24 237 2 O83 013013
Net Revenues $5,014,863 $ 6,290,363 J4 972 S20 2 169 327 1 7S3 757 2 l09 071
Sewer Meters (Estimated) N.A. 62,119 62,631 61,629 60,991 60,751
(1) Rate increase effective 8-1-98.
(2) Rate increase effective 1-1-89.
(3) Includes "Effluent Water Sales" and "Commodity Sales".
(4) Excludes interest earned on capital projects fund.
(3) Defined as "Maintenance and Operation Expenses" in the Ordinances; excludes
depreciation and capital expenditures.
Sewer Rates (Monthly)
Rates for sewer service shall be reviewed annually to ensure the adquacy of the rates to cover the total
cost of operation, maintenance, and capital costs. These rates shall be examined by the assistant city
manager for financial services and the assistant city manager for financial services shall make such
recommendations for adjustments and changes in such rates to the City Council as deemed necessary
after each annual review for consideration by the City Council. (Ord. No. 9294, 1, 8-10-89 sec City of
Lubbock Codes of Ordinances Section 28-96).
Residential
Present Rates Previous Rates
(Effective 1-1-89)(Effective 8-1-89)
First 3,000 gallons $3.60 Minimum First 3,000 gallons $4.60 Minimum
Next 7,000 gallons 0.68/M gallons Next 7,000 gallons 0.33/M gallons
Over 10,000 gallons No additional charge Over 10,000 gallons No Additional Charge
(Maximum Monthly Charge - $10.36) (Maximum Monthly Charge - $6.91)
Individually metered residential units shall pay the above service charge based on a calculated estimate of
sewer flow determined from water consumption records for individual customers. Water consumption
information for months of typically low irrigation usage will be examined to establish a "bask" for sewer
service charges. Sewer charges will be levied based on water consumption up to the maximum determined
by the "basis". The basis for new customers shall be six thousand (6,000) gallons until adequate historical
information is available.
Commercial/industrial W (2)
First 3,000 gallons $3.60 (Minimum) (3) First 3,000 gallons $4.60 (Minimum) (3)
Over 3,000 gallons 0.68/M gallons Over 3,000 gallons 0.33/M gallons
(1) Includes universities, schools, geriatric institutions, orphan homes, public or private institutions,
public schools, churches, multi -family residential and all other sewer service customers except
individually metered residents.
(2) Industrial waste that exceeds allowable limits is subject to surcharges; surcharges for treating
biochemical oxygen demand (B.O.D.) and grease and suspended solids (S.S.) are:
B.O.D. and Grease $0.1076/lb. $0.0800/lb.
S.S. $0.0918/lb. $0.0683/lb.
(3) Based on 5/9" or 3/4" meter; higher minimums for larger meters up to a maximum charge for a 10"
meter of:
$766.33 $473.36
-33-
BILLINGS
Customers of Lubbock's water, sewer, and sanitation systems are billed simultaneously on one statement;
if 'the customer is connected to the City's electric system, electric charges are also Included. All
customers who do not pay their bill within 22 days of the date it is mailed to them are charged a 5% late
payment penalty. if the bill has not been paid on the next billing date, a statement is mailed showing the
past due bill together with the current bill. If the bill remains delinquent 7 days after the date of the
second statement, a reminder/cut-off notice Is mailed. The cut-off notice specifies that service will be
discontinued in 7 days if payment in full Is not made. At the end of the 7 day period, a field collector
calls on the customer and If he Is unable to collect payment, service is cut off. The reconnection charge,
Including electric service if the customer Is connected to the City's electric system, Is $13.00 before 3:00
p.m. and $23.00 after 3:00 p.m. and during weekends and holidays.
Note: The City owns and operates a Waterworks System, an Electric Light and Power System and an
Airport System (Lubbock International Airport).
The Waterworks System is described In Appendix A, below.
Discussion of Projected Sewer Rates
Sources: City of Lubbock, Texas
Ernst do Young, Denver, Colorado
The City's present sewer rate structure is a modified user charge system based on water usage and
surcharges for excessive strength contributions to the wastewater system (see "Sewer Rates", above).
As part of the Wastewater Project to be financed with SRF loans the City will adopt a formal User
Charge System by ordinance with rates and regulations in accordance with Federal regulations. The
estimated date for submission of the User Charge System is October 1, 1991 (see Exhibit 06a, SRF-34,
Project Schedule, Project A).
The User Charge System is now under development by the City and its rate consultants, Ernst do Young,
Denver, Colorado, but is not yet at a stage that will permit a definitive descriptive analysis.
With reference to Ernst do Young, the City realized the need to make substantial and long-term
improvements to its wastewater treatment and disposal facilities in 1989 and that this program would
require a sewer rate structure that would be equitable to all customer classes. As an effective water
conservation plan is also mandatory, the City requested proposals for a comprehensive water and
wastewater rate study from a nationally recognized engineering and accounting firm. The City retained
Ernst do Young in spring, 1990, to prepare a study of the City's rate structures and develop a new water
and sewer structure which would ensure that the City would meet all debt service requirements, maintain
operations of existing and proposed facilities, to meet all federal and state regulations and promote water
conservation. The final report from Ernst do Young is expected to be available for City Council
consideration in late spring, 1991.
This report will provide a basis for the development of the formal User Charge System as well as for
future water rate structures.
Whether the final User Charge System structure is in place or not a sewer rate increase of approximately
18.9% will be implemented effective 10-1-1991, the beginning of the City's Fiscal Year 1991-1992; this
rate increase Is designed to initially anticipate and provide for the additional debt service requirements
incurred under the proposed SRF loan program. Further successive annual sewer rate increases of
approximately 6.9% each to provide for Increasing levels of debt service through Fiscal Year Ending
9-30-1996 are projected to be required each October 1, 1992 through 1993.
Average Residential Sewer Customer Impact
The current monthly sewer rate for an average Lubbock residential customer, based on an average
sanitary sewer discharge of 3,000 gallons, is $6.96.
-34-
Projected monthly residential sewer customer rates following each of the anticipated sewer rate increases
are:
Projected
Approximate
Average
Residential
Sewer
Customer
Rate
Monthly
Effective
%
Sewer
Date
Increase
Bill
10-1-1991
18.9%
9.27
10-1-1992
6.9%
8.94
10-1-1993
6.9%
9.44
10-1-1994
6.9%
10.10
10-1-1993
6.9%
10.90
These Increases applied to present sewer rates result in the following:
Sewer Rates Monthly
Residential
First 3,000 gallons (Minimum)
Next 7,000 gallons
Over 10,000 gallons
Maximum Monthly Charge
Commercial/Industrial (1)
First 3,000 gallons (Minimum)
Over 3,000 gallons
(1) Industrial waste surcharges:
B.O.D. and grease
S.S.
Present
Rates
19.8%
6.9%
6.9%
6.9%
6.9%
(Effective
Increase
Increase
Increase
Increase
Increase
1-1-99)
10-1-91
10-1-92
10-1-93
10-1-94
10-1-95
$5.60
$6.63
$7.10
$7.59
$8.10
$8.66
0.68/M gals.
0.81/M gallons
0.87/M gals.
0.93/M gals.
1.00/M gals.
1.07/M gals.
No charge
No charge
No charge
No charge
No charge
No charge
$10.36
$12.32
$13.19
$14.09
$15.10
$16.15
$5.60
$6.65
$7.10
$7.58
$15.10
$16.15
0.68/M gals.
0.81/M gals.
0.87/M gals.
0.93/M gals.
1.00/M gals.
1.07/M gals.
$0.1076/lb. $0.1278/lb. $0.1366/lb.
0.091E/lb. 0.1091/lb. 0.1166/1b.
$0.1460/lb. $0.1561/lb. $0.1669/lb.
0.1246/lb. 0.1332/lb. 0.1424/lb.
The Projection of Revenues, Expenses, Net Revenues and Debt Service Cover
above discussion. Also integrally incorporated in the Prolecuon is -the Ci
Department recommendation that an average sewer customer account grow
should be anticipated.
-33-
following reflects the
of Lubbocles Planning
factor of 196 per year
aw.
Debt Service Requirements (Revenue Basis)
Fiscal
Year
Ending
9-30
1991
1"2
1993
1994
1995
1996
1997
199E
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2013
50.600.000 Proposed Certificates (SRF Loans) (2
Series 1991
Series 1992
Series 1993
Certificates
Certificates
Certificates
Outstanding Debt(1)
(Project
A)
(Project
B)
(Project
B)
t
Interest
Principal
Interest
Principal
Interest crest
Principal
f ernt�ect
1,217,4
' 11-
$
5
1,210,456
917,901
2,128,357
64,820(3)
1,191,275
831,122
2,022,397
80,000
88,826
1,559,925(4)
1,234,471
742,716
1,977,187
80,000
84,426
2,501,522(4)
412,298(5
1,183,960
653,529
1,837,489
80,000
80,026
1,955,000
2,574,963
637,803(5
1,274,679
561,385
1,836,264
80,000
75,626
1,955,000
2,443,000
490,000
646,314
1,134,328
627,499
1,761,827
80,000
71,226
1,953,000
2,311,037
490,000
613,239
1,122,12E
567,892
1,690,010
80,000
66,826
1,955,000
2,179,074
490,000
580,164
1,093,436
507,172
1,600,608
80,000
62,426
1,955,000
2,047,111
490,000
547,089
727,535
742,431
1,469,966
80,000
58,026
1,955,000
1,915,148
490,000
514,014
546,940
475,452
1,022,392
80,000
53,626
1,955,000
1,783,185
490,000
480,939
503,655
342,751
846,406
85,000
49,08E
1,955,000
1,631,222
490,000
447,864
479,341
242,970
722,311
85,000
44,413
1,955,000
1,519,259
490,000
414,789
484,960
139,970
624,930
85,000
39,738
1,955,000
1,387,296
490,000
381,714
484,960
104,288
589,248
85,000
35,063
1,953,000
1,235,333
490,000
348,639
484,960
68,482
553,442
85,000
30,388
1,955,000
1,123,370
490,000
315,564
484,960
32,301
517,461
85,000
25,713
1,955,000
991,407
490,000
282,489
127,662
10,494
138,156
85,000
21,038
1,955,000
859,444
490,000
249,414
108,697
3,261
111,958
85,000
16,363
1,955,000
727,481
490,000
216,339
85,000
11,688
1,960,000
595,350
490,000
193,264
85,000
7,013
1,960,000
463,050
490,000
150,189
85,000
2,33E
1,960,000
330,750
495,000
116,945
1,960,000
198,450
495,000
83,532
1,960,000
66,150
495,000
50,119
495,000
16,706
$15,095,627 $ 9,576,197 $23,671,824 $1,655,000 $ 988,697 $39,125,000 $30,493,527 $9,920,000 $7,689,429
Grand Total
Requirements
Proposed
Certificates
64,820
1,729,731
3,078,246
3,327,794
5,689,940
5,520,502
5,351,064
3,181,626
3,012,138
4,842,730
4,678,174
4,509,461
4,339,748
4,169,035
3,999,322
3.829,609
3,659,896
3,490,183
3,325,302
3,153,232
2,990,033
2,736,982
2.571,269
511,706
$ 89,761,653
Note: Interest on the Series 1991 Certificates has been calculated at 5.50%; interest on the Series 1992 and Series 1993 Certificates has been
calculated at 6.75% for purposes of illustration.
(1) Outstanding debt consists of the sewer system portion of various issues of general obligation bonds and outstanding:
$2,334,682 Combination Tax and Sewer System Subordinate Lien Revenue Refunding Bonds, Series 1988; and
$4,900,000 Combination Tax and Sewer System Subordinate Lien Revenue Certificates of Obligation, Series 1988.
Debt service on these obligations is provided for from net revenues of the Sewer System each year by transfer to the General Fund.
The Sewer System has no revenue bond bonded debt.
(2) Annual debt service on these proposed Certificates will be provided from net revenues of the Sewer System by direct transfer to the
appropriate Interest and Sinking Fund.
(3) Interest based on drawdown schedule as estimated in SRF-35 (Project A). See Exhibit 9a.
(4) Interest based on drawdown schedule as estimated in SRF-35 (Project B). See Exhibit 9b.
(5) Interest based on drawdown schedule as estimated in SRF-35 (Project Q. See Exhibit 9c.
Combined
Requirements
$ 2,221,415
2,193,177
3,731,14E
5,053,433
7,163,283
7,326,204
7,282,329
7,041,074
6,782,234
6,482,154
3,865,142
5,324,850
5,230,772
4,963,678
4,738,293
4,552,764
4,347,070
3,798,052
3,602,141
3,325,302 `
3,135,252
2,990,033
2,736,982
2.571,269
511,706
$113,433,477
CITY OF
LUBBOCK, TEXAS
PROJECTION OF REVENUES. EXPENSES, NET REVENUES. AND
DEBT SERVICE COVERAGE
SEWER
SYSTEM
PROJECTED
COMBINED
FISCAL
PROJECTED
PRESENT SEWER
SYSTEM GENERAL
REOUIREMENTS
PROJECTED
YEAR
CONNECTIONS
PROJECTED
PROJECTED
PROJECTED
OBLIGATION
CE RIIFICATES OF
COMBINED
COVERAGE
ENDING
SEWER Poor-
GROSS
OPERATING
NET
DEBT
OBLIGATION SERIES
REQUIREMENTS
ALL DEBT
SEPT 30
(@*I%NR)
worts
REVENUES
EXPENSES
REVENUE
REQUIREMENTS
(SRF LOAN)
ALL DEBT
SERVICE
1991
1992
1993
1991
6ZO46
$9,417,207
$4,402,344
$5,014,863
$2.221,415
$2,221,415
2.26 X
1992
62.666
(1)
11,300,648
4.622,461
6,678.187
2.128.357
$64,820
2,193,177
3.04 X
1993
63,293
(2)
12,204,191
4,853.584
7,350,607
2,022.397
168,826
$1,559.925
3.751.148
1.96 X
1994
63.926
(3)
13,181,473
5,169,067
8,012,411
1,977,187
164,426
2.501,522
$412,298
5,055.433
1.58 X
1995
64,565
(4)
14,233,614
5,546,409
8,687,405
1.837.489
160,026
4,529.963
637,805
7.165,283
1.21
1996
65,210
(5)
15.373,904
5,823,730
9,550.174
1,836.264
155,626
4,398.000
1,136,314
7,526,204
_X
1.27 X
1997
65.863
(6)
15,529,686
6.114.916
9,414.770
1.761.827
151,226
4,266.037
1,103,239
7,282,329
1.29 X
1998
66.521
15,687,254
6,420,662
9,266,592
1,690,010
146,826
4,134,074
1,070,164
7,041.074
1.32 X
1999
67,186
15.845.056
6,741.695
9.103,361
1,600.608
142.426
4,002,111
1.037.089
6.782.234
1.34 X
2000
67,858
16,003.507
7,078,780
8,924,727
1.469,966
138,026
3,870.148
1.004.014
6,482.154
1.38 X
2001
68.637
16.163,542
7.432.719
8,730,823
1,022,392
133,626
3,738.185
970,939
5,865.142
1.49 X
2002
69.222
16,325,177
7.804.355
8.520.822
846.406
134.088
3.606.222
937,864
5,524,580
1.54 X
2003
69,914
16,488,429
8,194,573
8.293,856
722,311
129,413
3,474,259
904,789
5,230,772
1.59 X
2004
70.614
16.653,313
8,604.301
8.049,012
624,930
124.738
3.342.296
871,714
4.963,678
1.62 X
2005
71.320
16.819,846
9,034,516
7,785,330
589,248
120.063
3,210,333
838.639
4,758.283
1.64 X
2006
72.033
16,988,045
9,486.242
7.501,803
553.442
115.388
3,078.370
805,564
4.562.764
1.65 X
2007
72,763
17.157,925
9.960,554
7,197.371
517.461
110.713
2.946.407
772,489
4,347,070
1.66 X
2008
73.481
17,329,504
10.458,582
6,870,922
138,156
106,038
2,814,444
739.414
3,798,052
1.81 X
2009
74.216
17,502,799
10,981.511
6,521,288
111.958
101.363
2.682.481
706.339
3.602.141
1.81 X
2010
74,968
17,677,827
11,530,586
6,147,241
96.688
2,555,350
673.264
3,325,302
1.85 X
2011
75.707
17.854.606
12.107,116
5,747.490
92.013
2,423.050
640.189
3.155.252
1.82 X
2012
76.464
18,033.152
12.712,472
5,320.680
87,338
2,290,750
611,945
2,990.033
1.78 X
2013
77.229
18,213,483
13,348,095
4,865,388
2,158,450
578.532
2.736.982
1.78 X
2014
78.001
18,395,618
14,015.500
4.380,118
2,026.150
545.119
2,571.269
1.70 X
2015
78.781
18,579,574
14,716.275
3,863,299
511,706
A 511,706
, 7.55 X
(1) Projected Sewer Rate Increase Effective 10-1-91
(2) Projected Sewer Rate Increase Effective 10-1-92
(3) Projected Sewer Rate Increase Effective 10-1-93
(4) Projected Sewer Rate Increase Effective 10-1-94
(5) Projected Sewer Rate Increase Effective 10-1-95
(6) Additional capital projects and/or increases
in operating and maintenance expenses beyond
projections will be covered by rate increases
as necessary
Reviewed & Approved March 27. 1991
Prepared March 27. 1991
J. Robert Massengale tDan A. Hawkins, P.E.
Assistant City Manager ctor Water Utilities #
for Finance Services City of Lubbock, Texas
City of Lubbock. Texas
(
Lal J unningh Ity 64nager
A Au RW presentative, Citypf Lubbock, Texas
Reviewed 8 Approved March 29, 1991 L r07e r
Joe W. Smith
First Southwest Company, Abilene, Texas
OTHER RELEVANT INFORMATION
Tax Exemption
The delivery of the Certificates is subject to the opinion of Bond Counsel to the effect that interest on
the Certificates for federal income tax purposes (1) will be excludable from gross income, as defined in
section 61 of the Internal Revenue Code of 1986, as amended to the date of such opinion (the "Code"),
pursuant to section 103 of the Code and existing regulations, published rulings, and court decisions, and (2)
will not be included in computing the alternative minimum taxable Income of the owners thereof who are
individuals or, except as hereinafter described, corporations. The statute, regulations, rulings, and court
decisions on which such opinion is based are subject to change.
Interest on all tax-exempt obligations, including the Certificates, owned by a corporation will be included
in such corporation's adjusted net book income for the 1989 tax year, or adjusted current earnings, for tax
years beginning after 1989, for purposes of calculating the alternative minimum taxable income of such
corporation, other than an S corporation, a qualified mutual fund, a real estate Investment trust (REIT), or
a real estate mortgage investment conduit (REM1C). A corporation's alternative minimum taxable income
is the basis on which the alternative minimum tax Imposed by the Tax Reform Act of 1986 and the
environmental tax imposed by the Superfund Revenue Act of 1986 will be computed.
In rendering the foregoing opinions, Bond Counsel will rely upon representations and certifications of the
City made in a certificate dated the date of delivery of the Certificates pertaining to the use,
expenditure, and investment of the proceeds of the Certificates and will assume continuing compliance by
the City with the provisions of the Ordinance subsequent to the issuance of the Certificates. The
Ordinance contains covenants by the City with respect to, among other matters, the use of the proceeds
of the Certificates and the facilities financed therewith by persons other than state or local governmental
units, the manner in which the proceeds of the Certificates are to be invested, and the reporting of
certain information to the United States Treasury. Failure to comply with any of these covenants would
cause interest on the Certificates to be includable in the gross income of the owners thereof from date of
the issuance of the Certificates.
Except as described above, Bond Counsel expresses no other opinion with respect to any other federal,
state or local tax consequences under present law, or proposed legislation, resulting from the receipt or
accrual of interest on, or the acquisition or disposition of, the Certificates. Prospective purchasers of the
Certificates should be aware that the ownership of tax-exempt obligations such as the Certificates may
result in collateral federal tax consequences to, among others, financial institutions, life insurance
companies, property and casualty insurance companies, certain foreign corporations doing business in the
United States, S corporations with subchapter C earnings and profits, individual recipients of Social
Security or Railroad Retirement benefits, and taxpayers who may be deemed to have incurred or
continued indebtedness to purchase or carry, or who have paid or incurred certain expenses allocable to,
tax-exempt obligations. Prospective purchasers should consult their own tax advisors as to the
applicability of these consequences to their particular circumstances.
Litigation
It is the opinion of the City Attorney and City Staff that there is no pending litigation against the City
that would have a material adverse financial impact upon the City or its operations.
Legal Opinions and No -Litigation Certificate
The City will furnish a complete transcript of proceedings had incident to the authorization and issuance
of the Certificates, including the unqualified approving legal opinion of the Attorney General of Texas
approving the Initial Certificate and to the effect that the Certificates are valid and legally binding
obligations of the City, and based upon examination of such transcript of proceedings, the approving legal
opinion of Bond Counsel, to like effect and to the effect that the interest on the Certificates will be
excludable from gross income for federal income tax purposes under Section 103(a) of the Code, subject to
the matters described under "Tax Exemption" herein, Including the alternative minimum tax on
corporations. The customary closing papers, including a certificate to the effect that no litigation of any
nature has been filed or is then pending to restrain the issuance and delivery of the Certificates, or which
would affect the provision made for their payment or security, or in any manner questioning the validity
of said Certificates will also be furnished. Bond Counsel was not requested to participate, and did not
take part, in the preparation of the Notice of Sale and Bidding Instructions, the Official Bid Form and the
Official Statement, and such firm has not assumed any responsibility with respect thereto or undertaken
independently to verify any of the information contained therein, except that, In its capacity as Bond
Counsel, such firm has reviewed the Information describing the Certificates in the Official Statement to
verify that such description conforms to the provisions of the Ordinance. The legal fee to be paid Bond
Counsel for services rendered in connection with the issuance of the Certificates is contingent on the sale
and delivery of the Certificates. The legal opinion will be printed on the Certificates.
-37-
Authenticity of Financial Data and Other Information
The financial data and other information contained herein have been obtained from the City's records,
audited financial statements and other sources which are believed to be reliable. There is no guarantee
that any of the assumptions or estimates contained herein will be realized. All of the summaries of the
statutes, documents and resolutions contained in this Official Statement are made subject to all of the
provisions of such statutes, documents and resolutions. These summaries do not purport to be complete
statements of such provisions and reference is made to such documents for further information.
Reference is made to original documents in all respects.
-38-
The following information concerning the Waterworks System is for general information purposes only.
THE WATERWORKS SYSTEM
Water Supply ... Currently, the primary source of water for Lubbock is the Canadian River Municipal
Water Authority C'CRMWA") which delivers raw water from its Lake Meredith reservoir, located on the
Canadian River about 50 miles north of Amarillo, to member cities through an underground aqueduct
system. Lubbock is one of eleven member cities of CRMWA; other members are Amarillo, Pampa,
Borger, Plainview, Slaton, Levelland, Brownfield, Tahoka, O'Donnell and Lamesa. Lubbock received
31,160 acre feet of water from CRMWA in Calendar Year 1990, approximately 80% of the City's total
consumption. Cost of the project is being repaid to the Bureau of Reclamation by CRMWA through a
reimbursable loan maturing annually throu&h 2019; debt requirements are paid from revenues received by
CRMWA from sale of water to member cities. Member cities make payments for water received from
revenues derived from operation of their respective waterworks systems.
Other Water Supply Sources ... Part of the City's water supply Is obtained from 239 potable water wells,
all producing from the Ogallala Acquifer, which underlies the High Plains of Texas. Combined capacity of
these wells is over 45 million gallons per day ("mgd" ). Primary wells are located in the "Sand Hills" area
about 60 miles northwest of Lubbock in Lamb and Bailey Counties In which the City owns approximately
80,000 acres of water rights; the City has also contracted for the annual purchase of 1,260 acre feet of
water from private sources adjacent to the Sand Hills tract. These ground water sources are used
primarily for peaking purposes.
Lake Alan Henry ... The Brazos River Authority ("BRA") on behalf of the City of Lubbock (the "City") is
constructing a dam and reservoir on the South Fork of the Double Mountain Fork of the Brazos River
("Lake Alan Henry") about 50 miles southeast of Lubbock to enhance provision of long term water supply
needs. The Texas Water Commission has granted a permit for impoundment at the reservoir site.
Future population and water demand estimates for Lubbock, projected by the Texas Water Development
Board in 1999, show a 60 to 78 percent increase in the City's population by the year 2040. As a result of
population growth, Lubbock's water use in high -use years is expected to increase 51.7 mgd assuming low
population growth.
Although historical population increases have not been as great as the Texas Department of Water
Resources (TDWR) 1980 population estimates (which projected a 25 percent Increase between 1975 and
1990), increased population and decreasing water supplies have required the City to pursue new sources of
supply.
Findings of a 1978 report by Freese and Nichols estimated that Lake Alan Henry would have a firm yield
of 26,100 acre-feet per year when the lake is first constructed, and 20,600 acre-feet per year after 50
years of operation. If the reservoir is operated with a variable rate of demand, an estimated average
yield of 30,200 acre-feet per year could be withdrawn initially. After 30 years of operation, the variable
demand yield would decrease to 27,000 acre-feet per year. This would provide Lubbock with a reliable
water supply of 23.3 mgd and an average water supply of 26.9 mgd. Assuming a worst case scenario of: a
65 percent allocation from CRMWA (22.1 mgd), an average withdrawal from the Sand Hills Field (8.9
mgd), and a firm yield from Lake Alan Henry (23.3 mgd), Lubbock would have a reliable supply of 54.3
mgd which would be sufficient to meet projected normal water demands through about the year 2040.
Based on the results of the water quality monitoring program by the United States Geological Survey and
Lubbock, it was concluded that water In Lake Alan Henry would be of better quality than water from Lake
Meredith.
The City has contracted with BRA to construct a dam and water supply reservoir at the Lake Alan Henry
site (the "Project"). The Project will provide Lubbock with an average of 26.9 mgd of municipal water
supply. It Is estimated that the Project will require two years to construct and three years to fill, based
on average runoff conditions. At conservation storage the reservoir will contain 115,937 acre-feet of
water; mean depth at conservation storage will be approximately 40 feet; maximum depth will be
approximately 100 feet near the dam. The contributing drainage area is an estimated 394 square miles.
The Contract further provides for the City to acquire all of the land for the Project, upon which BRA will
be granted an easement to construct and operate the facilities, and to obtain all of the required permits.
All such permits have been obtained. Currently, all land for the construction of the dam and all but less
than 2% of the land to be Inundated has been acquired.
-A-1-
APPENDIX A
INFORMATIONREGARDING THE WATERWORKS SYSTEM AND
GENERAL INFORMATION REGARDING THE CITY OF LUBBOCK
Water Consumption ...
Average
Maximum
Daily
Consumption
Calendar
Consum tion
Day/Year
Year
(mAX
(mgd)-
1996
31.621
63.707
1997
31.990
37.007
198E
34.981
60.399
1999
36.367
69.124
1990
36.40E
79.003
*The City has water sales contracts for the sale of treated water to Reese Air Force Base, the Town of
Ransom Canyon and Lubbock County Water Control and Improvement District No. 1 (Buffalo Springs
Lake). Deliveries to these entities are included In the above calculations of water consumption; 1990
water consumption was:
Calendar
1990
Average
Daily
Consumption
(mgd)
Reese Air Force Base 0.392
Town of Ransom Canyon 0.170
Buffalo Springs Lake 1.433 million gallons total in 1990.
Water Treatment Facilities ... The water treatment plant for the treatment of raw water received from
CRMWA has a design capacity of 61.4 mgd and a maximum hydraulic capacity of 73 mgd. The plant has a
1,200 acre-feet open storage reservoir which permits storage of raw water during "off-peak" periods, and
2.0 million gallons ("mg") clearwell storage for treated water.
The plant also treats.CRMWA raw water deliveries for the Cities of Brownfield, Lamesa, Levelland,
O'Donnell, Slaton and Tahoka prior to CRMWA delivery to those cities. Under contractual agreements
with these cities Lubbock is fully reimbursed for all costs of this treatment including capital costs and
debt servicel percentage of participation in treatment plant costs as specified in the contracts are:
City
Participation
Brownfield
4.72%
Lamesa
4.70%
Levelland
3.99%
O'Donnell
0.39%
Slaton
3.38%
Tahoka
0.97%
20.34%
Lubbock 79.66%
100.00%
Calendar 1990
Water Deliveries
From the Lubbock
1990
Water Treatment Plant
U.S. Census
(million gallons)
9,360
413.33
10,E09
438.74
13,986
767.13
1,102
41.7E
6,07E
280.04
2,86E
104.94
44,403
2,04E.20
196,206
10,710.65
230,609
12,759.85
Note: Lubbock's ground water supply does not require treatment (other than the addition of chlorine)
before introduction into the distribution system.
Water Treatment Plant improvement Program
$16,120,000 Combination Tax and Waterworks System Subordinate Lien Revenue Certificates of
Obligation, Series 1991 (the "Waterworks Certificates") are being sold on April 23, 1991, to provide major
funding for upgrading and Improving the water treatment plant.
Objectives of the program are to (1) enable the plant to comply with the Safe Drinking Water Act of 1996
(" SDWA") and (2) upgrade the plant for safety, maintenance and repair.
The City's Consulting Engineers for the treatment plant program, HDR Engineering, Inc., Dallas, Texas,
have estimated cost of the project as:
-A-3-
Construction bids were received by BRA on December 6, 1990. Estimated costs of the Project are as
follows:
Dam Construction Costs
$29,317,871
Contingencies @ 10%
2,931,787
Total Dam Cost
$32,249,659
Access Road
$ 543,640
Petroleum Conflicts
3,921,265
Pipeline Relocation
305,000
M & O Facilities
600,000
Total Construction Cost
$37,719,563
Development, Permitting and Land Cost
$11,350,000
Final Engineering (Design & Construction)
3,143,000
Oil/Gas Evaluation
100,000
Water Quality Control Plan
250,000
Contingencies and Management Fees
2 074 437
TOTAL
Sa 639 Q00
BRA has issued $36,655,000 Special Facilities (Lake Alan Henry) Revenue Bonds: $16,970,000 - Series 1999
and $39,685,000 - Series 1991 to provide funds for construction and establishment of reserve and repair
and replacement funds. The Special Facilities Revenue Bonds are payable from net revenues derived from
the operation and ownership of Lake Alan Henry, including payments to be made under the Contract to
BRA.
Under the Contract Lubbock will buy and pay for the entire amount of water which can be supplied by the
Project whether used or not. Payments to BRA during each Fiscal Year (beginning October 1 and ending
September 30) shall equal the sum of:
(i) Capital costs (debt service) payable during such Fiscal Year; plus
GO Maintenance and Operation Costs as adjusted, which, by the Authority's estimates
made prior to the beginning of such Fiscal Year, will be incurred during such Fiscal
Year; plus
(iii) Management Fees for such Fiscal Year.
Payments under the Contract constitute operating expenses of the City's Waterworks System, payable
from gross revenues of the Waterworks System.
Additional facilities, which may be financed by the City directly or by BRA as Additional Special Facility
Revenue Bonds, will be required to transport and treat the water from Lake Alan Henry. Such facilities
are not included in the costs shown above.
The System ... Lubbock's Waterworks System is modern and efficient; property, plant and equipment are
valued at $78,144,418, after depreciation and including cost of construction work in progress, at
September 30, 1990. Equipment includes remote control and communication facilities with centralized
operation and direction of the water supply system. The distribution system extends throughout the City
and is designed for expansion. Present pumping capacity is 106 mgd.
Storage capacity includes a 1,200 acre-foot open storage reservoir near the water treatment plant, which
permits the storage of surplus water received from the "CRMWA" in off-peak periods. In addition, 14
ground storage reservoirs and 4 elevated steel storage tanks provide storage capacity of 61,350,000
gallons, entirely adequate for peak hour and fire protection requirements.
-A-2-
CONDENSED STATEMENT OF OPERATIONS
WATERWORKS SYSTEM
Operating Revenues 519,669,087 $16,660,193 $13,381,353 13,713,01E 13,9 33,284
Non -Operating Income 1 b80 943 626,042 978,583 903 l67 1 328 939
Gross income $21,549,032 $0,296,235 $16,360,133 $14,316,1931 $15,312,223
Operating Expense
(excluding depreciation)(1) 8 100 920 b___,401,336 9 4�94,'l0E 91,963.218 10,341t.979
Net Revenue 12 b4b 112 88 878 899t99 6,966030 4652,967 4763,244
Water Meters 62,119 62,631 61,628 60,981 60,731
(I) Operating expense Includes construction repayment costs and operating and maintenance charges paid
to CRMWA and to BRA.
Note: The City currently has no outstanding or authorized Waterworks System Revenue Bonds, however,
the City does have $21,493,432 general obligation debt outstanding which was issued for waterworks
system purposes and which Is supported by revenues of the System.
Water Rates (Monthly)
Present Rates Previous Rates
Effective Effective
Water Consumption October 1 1990 (1) _October 1 1989 (1)
first 1,000 Gallons Minimum 7.31 $6.76
Next 49,000 Gallons (per thousand) 1.53 1.28
Next 200,000 Gallons (per thousand) 1.37 1.12
All Over 250,000 Gallons (per thousand) 1.31 1.06
(1) The water rate Increase effective October 1, 1999, and the subsequent increase effective October 1,
1990, have been designed to provide increased revenues to provide for debt service on, financing for and
maintenance and operation costs of Lake Alan Henry and other projected Waterworks System costs. The
water rate increase effective October 1, 1999, provided estimated increased gross revenues in excess of
$2,000,000 during Fiscal Year Ended September 30, 1990. The subsequent water rate Increase effective
October 1, 1990, will provide additional estimated increased gross revenues in excess of $3,000,000 during
Fiscal Year Ended September 30, 1991, or an estimated combined annual increase In excess of $5,000,000.
The City is evaluating the need for a water rate increase effective 10-1-1991 to ensure the availability of
Waterworks System net revenues for debt service on the $16,120,000 Waterworks Certificates as debt
service will be directly provided from these net revenues. Factors entering into the evaluation will
include reimbursements the City will receive from Brownfield, Lamesa, Levelland, O'Donnell, Slaton and
Tahoka under their CRMWA water treatment contracts with Lubbock and the Waterworks Enterprise Fund
Rate Stabilization Reserve Account which had a balance of $4,993,058 at 9-30-1990.
Ernst do Young are preparing a report which will contain recommendations as to the City's future water
rate structure; the final report Is expected to be available for City Council consideration In late spring,
1991.
-A-3-
Estimated
Cost
Safe Drinking Water Act
6.0 mg additional clearwell storage
$ 2,300,000
Filter modifications
1,230,000
Disinfection facilities
1,361,000
Various other Improvements, including:
Flow Split, Rapid Mix,
Sludge Piping, Polymer Feed,
Laboratory, Controls
1 839 000
Sub -Total, SDWA
6:770:000
Safety (includes chlorine/ammonia systems) $ 607,000
Emergency Structural
$ 70,000
Maintenance and Repair
Powdered activated carbon
$ 392,000
Flocculators
1,973,000
Clarifiers
320,000
Electrical
575,000
Other
279,000
Sub -Total, Maintenance and Repair
$ 3,941,000
Miscellaneous
$ 630,000
Total Estimated Construction Cost
$12,018,000
Contingency
2,040,000
En ineering and Allied Costs
2,106,000
nflation to Construction Midpoint
906,000
Total Estimated Proiect Cost
$17,070,000
Sources of Funds for financing the project are estimated to be:
Proceeds of the Waterworks Certificates
$16,120,000
Other Available Funds
930,000
Total
$17,070,000
Water Rates ... The City will provide for debt service on the Waterworks Certificates by direct transfer
To the interest and Sinking Fund from net revenues of the Waterworks System; the Waterworks
Certificates will be self-supporting. As a result, the City is evaluating the need for a water rate increase
effective 10-1-1991 to provide for this debt service.
This evaluation will take into account the following factors:
1. 20.34% of annual debt service on the Waterworks Certificates and other capital costs associated
with the treatment plant improvement program will be reimbursed the City under the contracts for
treatment of CRMWA water with Brownfield, Lamesa, Levelland, O'Donnell, Slaton and Tahoka, as
will an equal percent of any increased operation and maintenance expense.
2. The City has established a Rate Stabilization Reserve In the Water Enterprise Fund. At 9-30-1990
this reserve had a balance of $4,993,053 with a budgeted increase of $163,642 for Fiscal Year Ending
9-30-1991.
Ernst & Young are preparing a report containing recommendations as to future water rate structure; the
final report is expected to be available in late Spring, 1991. See "Discussion of Projected Sewer Rates,
the Sewer System", above.
-A-4-
Some larger industries in Lubbock (with 300 employees or more) are:
Company
Texas Tech University
Lubbock Independent School District
Methodist Hospital
Reese Air Force Base
City of Lubbock
St. Mary's Hospital
University Medical Hospital
Texas Instruments, Incorporated
Furr's Incorporated
United Supermarkets
Lubbock State School
U.S. Postal Service
Furr's Cafeterias
Southwestern Bell Telephone Company
Flemming Company
ARA Food Services
Eagle Picher
Southwestern Public Service Company
Marriott Corporation
McCrory's
* Full and part time.
Education ... Texas Tech University ...
Estimated
Employees
September,
Product
1990
State University
6,713*
Public Schools
3,000
Hospital
2,900
U.S. Military Installation
2,034
City Government
2,034
Hospital
1,697
Hospital
1,627
Electronics Manufacturer
1,314
Retail Groceries
1,300
Retail Groceries
1,070
School for Mentally Retarded
979
Post Office
730
Cafeterias
623
Telephone Utility
340
Grocers Supplier
449*
Food Broker
423
Earth Moving Equipment
379
Electric Utility
363
Hotel/Housekeeping and Hotel Management
355*
Wholesale Distribution
349
Established in Lubbock in 1923, Texas Tech University is the fifth largest State-owned University in Texas
and had a Fall 1990 enrollment of approximately 25,363. Accredited by the Southern Association of
Colleges and Schools, the University is a co-educational, State -supported institution offering the
bachelor's degree in 138 major fields, the master's degree In 106 major fields, the doctorate degree in 61
major fields, and the professional degree in 2 major fields (law and medicine).
The University proper is situated on 431 acres of the 1,829 acre campus, and has over 160 permanent
buildings with additional construction in progress. Fall 1990 faculty membership is 969 full-time and 797
part-time. Including the Health Science Center, the University's operating budget for 1990-91 is $209.9
million of which $110.4 million is from State appropriations; book value of physical plant assets, Including
the Health Science Center, is in excess of $300 million.
The medical school had an enrollment of 389 for the Fall Semester, 1990, not including residents; there
were 36 graduate students. The School of Nursingg had a Fall Semester, 1990, enrollment of 326 including
the Permian Basin Program, located in Midland/Odessa; there were 12 graduate students. The Allied
Health School had a Fall Semester, 1990, enrollment of 142.
Other Education Information
The Lubbock Independent School District, with an area of $7.3 square miles, Includes over 90% of the City
of Lubbock. September, 1990, enrollment was approximately 30,6941 there were approximately 2,950
total employees, Including 2,30E certified (professional) personnel and 342 other employees. The District
operates five senior high schools, nine junior high schools, 44 elementary schools and other educational
programs.
Scholastic Membershio Histor
Refined
Average
School
Student
Daily
Year
Membership
Attendance
1981-92
28,942
26,993
1992-93
28,647
27,039
1983-94
29,424
27,133
1984-83
29,223
26,833
1983-86
29,209
27,321
1936-87
29,490
27,937
1987-98
30,933
28,194
1988-E9
30,032
28,637
1999-90
30,684
29,328
* Sources Superintendent's Office, Lubbock Independent School District.
-A-7-
GENERAL INFORMATION REGARDING THE CITY OF LUBBOCK, TEXAS
Location and Area
The City of Lubbock, County Seat of Lubbock County, Texas, is located on the South Plains of West
Texas. Lubbock is the economic, educational, cultural and medical center of the area.
Population
Lubbock is the ninth largest City in Texas:
City of Lubbock
(Corporate Limits)
1910
Census
1,938
1920
Census
4,031
1930
Census
20,320
1940
Census
31,333
1930
Census
71,390
1960
Census
128,691
1970
Census
149,101
1980
Census
173,979
1990
Census
186,206
Metropolitan Statistical Area NMSA") (Lubbock County)
1970 Census 179,295
1930 Census 211,631
1990 Census 222,636
Agriculture
Lubbock is the center of a highly mechanized agricultural area with a majority of the crops irrigated with
water from underground sources. Principal crops are cotton and grain sorghums with livestock a major
additional source of agricultural income. The estimated 1990 cotton crop in the 25-county area around
Lubbock was approximately 2,655,000 bales; 1989 official production was 1,608,200 bales (source: Plains
Cotton Growers, Inc., Lubbock, Texas). Three major vegetable oil plants located in Lubbock have a
combined weekly capacity of over 1,869 tons of cottonseed and soybean oil. Several major seed
companies are headquartered in Lubbock.
Over 204 manufacturing plants in Lubbock produce such products as semi -conductor products, vegetable
oils, heavy earth -moving machinery, irrigation equipment and pipe, farm equipment, paperboard boxes,
foodstuffs, mobile and prefabricated homes, poultry and livestock feeds, boilers and pressure vessels,
automatic sprinkler system heads, structural steel fabrication and soft drinks.
Lubbock MSA Labor Force Estimates
(Source: Texas Employment Commission)
December November October December November October
1990* 1990 1990 1999 1989 1939
Civilian Labor Force 116,500 116,900 115,200 113.400 116,000 113,200
Total Employment 111,100 110,700 110,300 110,400 -110,600 110,500
Unemployment 5,400 6,100 4,900 5,000 3,400 4,700
Percent Unemployed 4.6% 3.2% 4.3% 4.3% 4.7% 4.1%
• Subject to revision.
Estimated non-agricultural wage and salaried jobs in various catagories as of December, 1990, were:
Manufacturing
7,100
Mining
200
Construction
3,300
Transportation
6,000
Trade
29,200
Finance, Insurance and Real Estate
3,200
Services
23,900
Government
24,000
Total
98,800
-A-6-
The City of Lubbock has developed a 36 square block area of approximately 100 acres adjacent to
downtown Lubbock under the Lubbock Memorial Civic Center program. Approximately 50 acres contain
the 300,000 square foot Lubbock Memorial CivicCenter, the main City library building and State
Department of Public Safety Offices; a 30 acre peripheral area has been redeveloped privately with office
buildings, hotels and motels, a hospital and other facilities.
Available to residents are Texas Tech University programs and events, Texas Tech University Museum,
Planetarium and Ranch Heritage Center exhibits and programs, Lubbock Memorial Civic Center and its
events, Lubbock Symphony Orchestra programs, Lubbock Theatre Center, Lubbock Civic Ballet, Municipal
Auditorium and Coliseum programs and events, the library and its branches, the annual Panhandle -South
Plains Fair, college and high school football, basketball and other sporting events; modern movie theatres.
Churches
Lubbock has approximately 223 churches representing more than 23 denominations.
Utility Services
Water and Sewer - City of Lubbock.
Gas - Energas Company.
Electric - City of Lubbock (Lubbock Power do Light) and Southwestern Public Service Company; and, In a
small area, South Plains Electric Co-operative.
Economic Indices (1)
Utility Connections
Building
Electric
Year
Permits
Water
Gas (LP&L
Only) (2)
1991
106,757,064
55,527
33,783
33,716
1982
130,720,599
36,172
54,650
34,987
1983
230,440,777
38,034
54,927
37,292
1984
212,353,170
39,262
56,540
39,037
1993
168,740,229
60,031
56,600
40,306
1986
139,317,252
60,731
56,900
41,739
1987
100,046,309
61,027
37,266
42,696
1989
103,159,525
61,629
57,886
43,781
1989
105,363,072
61,837
60,312
44,313
1990
140,853,719
60,176(3)
45,114
(1) All data as of 12-31 unless otherwise noted; Sources: City of Lubbock; Lubbock Board of City
Development.
(2) Electric connections are those of City of Lubbock owned Lubbock Power and Light ("LP&L") and do
not include those of Southwestern Public Service Company or South Plains Electric Cooperative.
(3) As of 11-30-90.
-A-9-
Lubbock Christian University, a privately owned, co-educational senior college located in Lubbock, had an
enrollment of 1,003 for the Fall Semester, 1990.
South Plains College, Levelland, Texas (South Plains Junior College District) operates a major off -campus
learning center in a downtown Lubbock, 7-story building owned by the College. Course offerings cover
technical/vocational subjects, and Fall Semester, 1990, enrollment was 1,203. The College also operates a
major off -campus learning center at Reese Air Force Base; course offerings are in primarily academic
subjects and Winter Session, 1990, enrollment was approximately 754.
The State of Texas School for the Mentally Retarded, located on a 226-acre site in Lubbock, now consists
of 40 buildings with accommodations for 483 students. The School's operating budget for 1999/90 was In
excess of $18.0 million. The School is operating at 100% capacity, and has approximately 979 professional
and other employees.
Transportation
Scheduled airline transportation at Lubbock International Airport is furnished by American Airlines, Delta
Airlines, Southwest Airlines, Continental Express and American Eagle. Non-stop scheduled service is
provided to Dallas -Fort Worth International Airport, Dallas Love Field, El Paso, Austin, Amarillo,
Midland -Odessa and Albuquerque. 1990 passenger enplanements totaled 615,639; 1989 enplanements were
615,154.
Rail transportation is furnished by the Atchison, Topeka and Santa Fe Railway Company and the
Burlington -Northern, Inc., with through service to Dallas, Houston, Kansas City, Chicago, Los Angeles,
and San Francisco. Short -haul rail service is also furnished by the Seagraves, Whiteface and Lubbock
Railroad. Texas, New Mexico and Oklahoma Bus Lines, a subsidiary of Greyhound Corporation, provides
bus service. Several motor freight common carriers provide service.
Lubbock has a well developed highway network including Interstate 27 (Lubbock -Amarillo), 4 U.S.
Highways, 1 State Highway, a controlled -access outer loop and a county -wide system of paved
farm -to -market roads.
Government and Military
Reese Air Force Base, located 3 miles west of Lubbock, is an undergraduate Jet Pilot Training Base of the
Air Training Command. The Base covers over 3,000 acres and has approximately 1,643 military and
approximately 391 civilian personnel.
State of Texas ... More than 23 State of Texas boards, departments, agencies and commissions have
offices in Lubbock; several of these offices have multiple units or offices.
Federal Government ... Several Federal departments and various other administrations and agencies have
offices in Lubbock; a Federal District Court is located in the City.
Hospitals and Medical Care
There are eight hospitals in the City with approximately 1,744 beds. Methodist Hospital is the largest and
also operates an accredited nursing school. Lubbock County Hospital District, with boundaries contiguous
with Lubbock County, owns the University Medical Center which it operates as a teaching hospital for the
Texas Tech University Medical School. There are numerous clinics and over 400 practicing physicians and
surgeons (M.D.) plus the Texas Tech University Medical School Staff, and over 90 dentists. A radiology
center for the treatment of malignant diseases is located in the City.
Recreation and Entertainment
Lubbocles Mackenzie State Park and over 63 City parks and playgrounds provide recreation centers,
shelter buildings, a garden and art center, swimming pools, a golf course, tennis and volley ball courts,
baseball diamonds and picnic areas, including the Yellowhouse Canyon Lakes system of four lakes and 300
acres of adjacent parkland extending from northwest to southeast Lubbock along the Yellowhouse Canyon.
There are several privately -owned public swimming pools and golf courses, and country clubs.
-A-B-
Building Permits by Classification
Residential Permits
Commercial,
►nR a
Family
Duplexes
Apartments(I
Total Residential
Public
Total
o.Permits
No. Dwelling
and Other
Building
Year No. Units
Value
(Units)
Value
No. Units
Value
Units
Value
Permits
Permits
1981 633
47,760,310
13 23 '
1,389,500
748
20,415,532
1,426
69,565,362
37,191,552
106,757,064
1982 733
56,023,000
34( 69)
2,442,250
860
18,304,660
1,661
76,969,910
53,750,689
130,720,599
1983 1,166
88,830,733
135(270)
11,796,500
2,520
59,356,596
3,956
159,973,841
70,466,936
230,440,777
1984 919
63,815,113
360 12)
6,068,300
645
16,546,000
1,676
88,429,613
123,923,555
212,353,170
1985 601
30,100,350
33( 66)
2,586,300
96
2,664,000
763
33,330,630
113,399,579
168,740,229,
1986 599
49,329,236
7( 14)
566,000
-0-
-0-
613
49,993,236
89,422,016
`' 139,317,252
1987 509
44,466,937
-0-
-0-
-0-
-0-
309
44,466,937
35,579,372
._ 100,046,309
1989 414
35,599,945
-0-
-0-
-0-
-0-
414
35,589,945
69,570,580
105,159,525
1999 368
31,345,373
6
440,800
-0-
-0-
374
31,786,173
73,576,997
> 105,363,072
1990 368
33,632,140
-0-
-0-
8
416,000
376
36,068,140
104,787,579
140,955,719
0
1 ata shown under "No. Units"
is for each
individual apartment dwelling
unit, and is not for separate buildings; includes
triplex
and quadruple
permits.
* As reported by City.
Sources City of Lubbock, Texas.
MAR 1991
etcFivFo
SECRETARY
CITY OF LUBBOCK, TEXAS
APPLICATION TO TEXAS WATER DEVELOPMENT BOARD
For Loan Assistance
From the State Water Pollution Control Revolving Fund
$50,600,000 COMBINATION TAX AND SEWER SYSTEM SUBORDINATE LIEN REVENUE
CERTIFICATES OF OBLIGATION:
$ 1,633,000 Series 1991 (Project A)
39,125,000 Series 1992 (Project B)
91820,000 Series 1993 (Project C)
$50,600,000 Total
(Wastewater Treatment and Disposal Improvement and Expansion Project)
h'IRST O&U&UVE4t COMPANY
INVESTMENT BANKERS
P.O. BOX 2754-79604
402 CYPRESS, SUITE 103
ABILENE, TEXAS 79601
JOEwsMfTH April 2, 1991 (915)6724432
SENIOR VICE PRESIDENT
Ms. Charlotte Brigham
Texas Water Development Board
Room 516, Stephen F. Austin Building
1700 North Congress Avenue
Austin, Texas 78701
Re: City of Lubbock (Lubbock County), Texas
Application for Loan Assistance
from the State Water Pollution
Control Revolving Fund for a
Wastewater System Project
Dear Charlotte:
As we discussed I am enclosing 40 copies of the Application for loan assistance
from the State Water Pollution Control Revolving Fund in connection with the City
of Lubbock's wastewater treatment and disposal imps vement and expansion
program.
J WS:gc
Enclosures
_. _
FIRST GOM PAxy
cc: Mr. Larry J. Cunningham
City Manager
City of Lubbock
P. O. Box 2000
Lubbock, Texas 79457
Mr. J. Robert Massengale
Assistant City Manager for Financial Services
City of Lubbock
Mr. Carroll McDonald
Assistant City Manager for Utilities
City of Lubbock
Mr. Dan A. Hawkins, P.E.
Director of Water Utilities
City of Lubbock
Ms. Ranette Boyd
Secretary -Treasurer
City of Lubbock
Mr. William E. Carroll, P.E.
Black do Veatch
5728 LBJ Freeway
Dallas, Texas 75240
Mr. Mark S. Westergard
Fulbright do Jaworski
2200 Ross Avenue, Suite 2800
Dallas, Texas 75201
JOE W. SMITH
SENIOR VICE PRESIDENT
FIRST � COMPANY
I NVES I'MENT BANKERS
P.O. BOX 2754-79604
402 CYPRESS, SUITE 103
ABILENE, TEXAS 79601
March 29, 1991
Ms. Charlotte Brigham
Texas Water Development Board
Room 516, Stephen F. Austin Building
1700 North Congress Avenue
Austin, Texas 78701
Re: City of Lubbock (Lubbock County), Texas
Application for Loan Assistance
from the State Water Pollution
Control Revolving Fund for a
Wastewater System Project
Dear Charlotte:
Enclosed are:
(915) 672-M2
1. One each of four original, manually signed copies of the following SRF-
37s ("SRF Estimated Project Cost"):
SRF-37, Project "A"
SRF-37, Project "B"
SRF-37, Project "C"
SRF-37, Combined - All Projects.
I will appreciate your replacing the four signed SRF-37s that were included in
Application No. 1 with these.
Also enclosed are seven (7) additional sets of copies of these SRF-37s for
replacement of the copies that were included in the balance of the Applications.
Please insert these new, corrected SRF-37s in the Applications following page 13
and Figures AD2-1 and 8-3 (immediately in front of page 14).
11
FIRST E0at1UVe4t COMPANY
2. For inclusion in Application No. 1 I am also enclosing a set of pages as
follows:
(1) Replacement pages 20/21 (double -sided page);
(2) Replacement page 36 (single -sided page); and
(3) Replacement original, manually signed "Projection of
Revenues, Expenses, Net Revenues and Debt Service Coverage
-Sewer System" to be inserted in Application No. I immediately
following page 36.
Also enclosed are seven (7) copies of
Replacement pages 20/21 (double -sided);
Replacement page 36/unnumbered (double -sided)
for insertion in the other copies of the Application.
Replacement pa&es 20/21 replace "Debt Service Requirements (General Obligation
Basis") (page 20 and "Division of General Obligation Debt Service Requirements"
(page 21). The replacement is to correct the calculation of debt service on Series
1991 Certificates (Project A) and the resulting "Combined Requirements" and
"Sewer System General Obligation Requirements".
Please note that we have added a calculation of "Tax Adequacy" for projected
"Maximum Principal and Interest Requirements" at the bottom of page 20.
The replacement of page 36 and the projection are to correct "Debt Service
Requirements (Revenue Basis)" (page 36) as to the debt service requirements of
"Series 1991 Certificates (Project A)", "Grand Total Requirements Proposed
Certificates" and "Combined Requirements" and to revise the "Projection of
Revenues, Expense, Net Revenues and Debt Service Coverage -Sewer System" to
reflect the corrected debt service described above and recalculate coverage.
Please call me if you have any
JWS:gc
Enclosures
FIRST COMPANY
cc:
Mr. Larry J. Cunningham
City Manager
City of Lubbock
P. O. Box 2000
Lubbock, Texas 79457
Mr. J. Robert Massengale
Assistant City Manager for Financial Services
City of Lubbock
Mr. Carroll McDonald
Assistant City Manager for Utilities
City of Lubbock
Mr. Dan A. Hawkins, P.E.
Director of Water Utilities
City of Lubbock
Ms. Ranette Boyd
Secretary -Treasurer
City of Lubbock
Mr. William E. Carroll, P.E.
Black do Veatch
5728 LBJ Freeway
Dallas, Texas 75240
Mr. Mark S. Westergard
Fulbright do Jaworski
2200 Ross Avenue, Suite 2800
Dallas, Texas 75201
FIRST,17oathwe<4t COMPAxy
INVESTMENT BANKERS
JOE W. SMITH
SENIOR VICE PRESIDENT
Mr. Larry J. Cunningham
Mr. J. Robert Massengale
Mr. Carroll McDonald
Mr. Dan A. Hawkins
Ms. Ranette Boyd
Mr. William E. Carroll, P.E.
Mr. Mark A. Westergard
P.O. BOX 2754-79604
402 CYPRESS, SUITE 103
ABILENE, TEXAS 70601
March 28, 1991
RE: City of Lubbock SRF Application
Ladies and Gentlemen:
Enclosed are:
(915) 6724432
1. One copy each of 4 forms SRF-37. Please insert these in your copy of
the Application following page 13 and Figures AD2-1 and 8-3
(immediately in front of page 14) and discard the originals.
2. Pages 20/21 and 36/unnumbered (both double -sided). Please insert in
your Application and discard the originals.
Explanation of these replacements is contaiWin the attached letter.
y 3101y,
Job. Smith
JWS:gc f
A. Construction Cost:
STP
1/1
Major Sewer Rehabilitation
Interceptors
Collection System
Contingency
Allowance For Inflation
TOTAL CONSTRUCTION COST
d. Engineering:
Planning Phase
Design Phase
Construction Phase
Basic
Construction layout
Inspection
Testing
O i M Manual
Project Certification
Total Engineering
C. Financial
D. legal
E. Right-of-Vay (Not SRF Eligible)
' F. land (Not SRF Eligible)
G. Other
•� TOTAL ESTIMATED PROJECT COST
SRF•37
SRF ESTIMATED PROJECT COST (OG 11 40)
FOR PROJECT "B"
p�
: 28,878,000�
2,83 ,000
3.100,000
S 34,817,000
1 ,000
1,428,000
0,0 00
128,000
,000
= 4,248,000
32,000
24,115
2,500
S 39,125,000
This estimate, prepared by Black A Veatch Engineers on 1/22/91
(name of firm) (date)
was made using the arost current information available, and in our opinion represents the closest estimate to the actiyl
construction costs. This estimate was made with the expectation that construction bids would be taken Dy
March, 1992 and should be updated if bidding Is delayed beyond that date.
Autho CERTIFIED BY: t ve of�C tymock
(Loan ant)
date)
(City Seal)
W.E.
Carroll, P.E.,. BUwk A�Veeaatch
(Consulting Engineer)
Z�Zo�9/
(Date)
• land that will be an Integral part of the treatment process is eligible.
to Total Project Cost should be rounded up to the nearest $5.000 increment.
(Seat)
SRF•37
0�0 SRF ESTIMATED PROJECT COST (04-11.90)
FOR PROJECT "C"
A. Construction Cost:
STP
1/1
Kajor Sewer Rehabilitation
Interceptors
Collection System
Contingency
Allowance For Inflation
TOTAL CONSTRUCTION COST
It. Engineering:
Planning Phase
Design Phase
Construction Phase
Basic
Construction layout
Inspection
Testing
0 t N KanuaI
Project Certification
Total Engineering
C. Finaneial
0. Legal
E. Right -of -Way (Not SRF Eligible)
• F. Land (Not SRF Eligible)
G. Other
'* TOTAL ESTIMATED PROJECT COST
f 6,874,000
0,0 00
_ 8,309,000
220,000
23,000
17,000
s 1,496,000
8,000
6,185
2,000
= 9,820,000
This estimate, prepared by Black & Veatch Engineers on 1/22/91
(name of firm) (date)
was wade using the most current information available, and in our opinion represents the closest estimate to the actiyl
construction costs. This esthete was made with the expectation that construction bids would be taken ty
March, 1993 and should be updated if bidding is delayed beyond that date.
RT f1iED BY: La J cunnii m
Autho Representairia of City of
(Loan App i t)
3 —
Dat A
(City Seal)
W.E. �Carroll, Pam.. E.., 'B1'ack & Veatch
(Consulting Engineer)
of (Date)
• Land that will be an integral part of the treatsent process is eligible.
•' Total Project Cost should be rounded up to the nearest $000 increment.,
(Seal)
SRF-37
—` SRF ESTI1ATED PROJECT CDST (04-11.90)
A. Construction Cost:
STP
1/I
Major Sewer Rehabilitation
Interceptors
Collection System
Contingency
Allowance For Inflation
TOTAL CONSTRIFCT ION COST
!. Engineering:
User Charge
Plaming Phase
Design Phase
Construction Phase
Basle
Construction Layout
inspection
Testing
0 i M Manual
Project Certification
Total Engineering
C. Financial
D. Legal
E. Right•af•Yay (Not SRF Eligible)
* F. land (Not SRF Eligible)
6. Other
** TOTAL ESTIMATED PROJECT COST
= 36,385,000
3,5 8,00
3,908,000
= 43,891,000
20,000
700,000
3,397,000
1,800,000
500,000
150,000
50,000
S 6,617,000
50,000
35,300
6,500
= 50,600,000
This estimate, prepared by Black Veatch Engineers on 1/22/91
(name of firm) (date)
was made using the most current information available, and in our opinion represents the closest estimate to the actiyl
construction costs. This estimate was made with the expectation that construction bids would be taken law
and should be updated if bidding is delayed beyond that date.
Autho tretf I ED�itatiVi` J �boc k
(loan t t)
(Date)
(City Seal)
W.E. Carroll, P.EE.',, Black.
& Veatch
(Consulting Engineer)
(Date)
* Land that will be an Integral part of the treatment process Is eligible.
•' Total Project Cost should be rounded up to the nearest SS.000 increment.
*** Refer to SRF-37 for Projects A, B, C
(Seal)
N
a
Debt Service Requirements (General Obligation Basis)
Fiscal
Year
Ending
9-30
199
1992
1993
1994
1993
1996
1"7
1998
19"
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Outstanding Debt (1)
Principal
Interest
Total
7,685,000
pia
13,204,770
8,675,000
7,065,663
15,740,663
8,185,000
5,996,666
14,181,666
7,920,000
5,386,224
13,306,224
7,455,000
4,798,446
12,253,446
7,555,000
4,219,929
11,774,929
7,364,434
3,799,424
11,163,859
7,365,076
3,252,344
10,617,420
7,251,493
2,703,532
9,955,025
4,789,986
4,219,804
9,009,790
4,414,442
3,464,450
7,878,892
4,008,639
2,508,732
6,517,371
3,844,682
1,786,124
5,630,806
2,705,000
1,083,961
3,788,961
2,703,000
894,143
3,599,143
2,710,000
706,075
3,416,075
2,710,000
517,658
3,227,658
2,065,000
352,553
2,417,553
1,730,000
223,450
1,953,450
1,165,000
123,900
1,288,900
1,165,000
41,300
1,206,300
Series
1991
Series
1992
Certificates
Certificates
(Project A)
(Project B)
Principal
Interest
Principal
Interest
64,820(2)
80,000
134,337
1,359,925(3)
80,000
129,938
2,501,522(3)
80,000
125,538
1,955,000
2,574,956
80,000
121,137
1,955,000
2,442,994
80,000
115,737
1,955,000
2,311,031
80,000
112,337
1,955,000
2,179,069
80,000
107,938
1,955,000
2,047,106
80,000
103,538
1,955,000
1,915,144
80,000
99,138
1,955,000
1,783,181
85,000
94,600
1,935,000
1,651,219
85,000
89,925
1,955,000
1,519,256
85,000
85,250
1,955,000
1,387,294
85,000
80,575
1,955,000
1,253,331
85,000
75,900
1,955,000
1,123,369
85,000
71,223
1,955,000
991,406
85,000
66,550
1,955,000
859,444
85,000
61,875
1,955,000
727,481
85,000
57,200
1,960,000
595,350
85,000
52,525
1,960,000
463,050
85,000
47,850
1,960,000
330,750
1,960,000
198,450
1,960,000
66,150
Series 1993
Certificates
(Project C)
Principal Interest
490,000
490,000
490,000
490,000
490,000
490,000
490,000
490,000
490,000
490,000
490,000
490,000
490,000
490,000
490,000
490,000
493,000
495,000
495,000
495,000
412,298(4)
637,805(4)
646,312
613,238
580,162
547,087
514,012
490,937
447,862
414,788
381,713
348,638
315,562
282,488
249,412
216,338
183,263
150,188
116,944
83,531
50,119
16,706
Combined
Reauirements
$ 13,204,770
15,805,483
13,995,928
16,429,982
17,626,745
17,510,372
16,729,864
16,013,988
15,192,156
14,067,484
12,767,148
11,241,052
10,184,775
8,173,218
7,813,687
7.476,906
7,102,777
6,122,959
5,489,144
4,659,713
4,407,063
3,035,544
2,736,981
2,571,269
511,706
$103,468,752 $58,664,148 $162,132,900 $1,655,000 $1,898,933 $39,125,000 $30,483,478 $9,820,000 $7,689,403 $252,804,714
Interest on the Series 1991 Certificates has been calculated at 5.50%; interest on the Series 1992 and Series 1993 Certificates has been calculated
at 6.75% for purposes of illustration.
(1) Includes $2,000,000 General Obligation Bonds, Series 1991; $1,143,000 Combination Tax and Solid Waste Disposal System Revenue Certificates
of Obligation, Series 1991; $4,030,000 Combination Tax and Exhibition Hall/Auditorium (Limited Pledge) Revenue Certificates of Obligation,
Series 1991; $1,085,000 Public Property Finance Contractual Obligations, Series 1991 and $16,120,000 Combination Tax and waterworla System
Subordinate Lien Revenue Certificates of Obligation, Series 1991 to be offered for sale April 25, 1991. Interest on the Bonds and the three series
of Certificates of Obligatlon has been calculated at 7.00% and interest on the Contractual Obligations has been calculated at 9.10% for purposes
of illustration.
(2) Interest based on drawdown schedule as estimated in SRF-33 (Project A). See Exhibit 9a.
(3) Interest based on drawdown schedule as estimated in SRF-35 (Project B). See Exhibit 9b.
(4) Interest based on drawdown schedule as estimated in SRF-35 (Project C). See Exhibit 9c.
% of
Principal
Retired
27.34%
57.81%
77.49%
92.44%
100.00%
Division
of General Obligation
Debt Service
Requirements
Less:
Less:
Less:
Less:
Solid Waste
Waterworks
Sewer
Golf Course
Disposal
General
Fiscal
System
System
Facilities
System
Purpose
Year
General
General
General
General
General
Ending
Combined
Obligation
Obligation
Obligation
Obligation
Obligation
9-30
Requirements cements
Requirements
Requirements
Requirements
Requirements
Requirements
1991
1991
5 13,204,770
$ 4,309,742
5 2,221,415
87,167
��
6,�586,44�6
1992
13,905,493
6,179,790
2,193,177
84,01E
213,08E
7,135,420
1993
13,933,92E
5,442,578
3,796,659
85,642
183,073
6,447,974
1994
16,429,992
5,077,411
5,100,944
92,043
175,025
3,994,559
1993
17,626,743
4,672,433
7,210,793
83,21E
166,973
5,493,309
1996
17,310,372
4,462,833
7,571,708
84,224
138,923
5,232,662
1997
16,729,964
4,226,521
7,327,933
$5,302
150,975
4,939,333
199E
16,013,98E
4,022,090
7,086,579
91,423
142,923
4,691,080
1999
15,182,136
3,771,596
6,827,739
82,400
134,775
4,363,646
2000
14,067,494
3,411,436
6,527,660
$3,023
126,723
3,919,639
2001
12,767,14E
3,110,072
3,910,64E
93,300
113,950
3,349,279
2002
11,241,032
2,629,664
5,370,087
83,223
2,959,076
2003
10,194,775
2,287,133
5,276,290
82,900
2,339,562
2004
8,173,218
1,699,192
5,009,196
1,463,E50
2003
7,813,687
1,616,334
4,803,792
1,393,561
2006
7,460,906
1,536,124
4,599,273
1,326,509
2007
7,102,777
1,453,914
4,392,590
1,254,293
2008
6,122,939
1,154,075
3,843,562
1,123,322
2009
5,489,144
1,054,836
3,647,633
796,655
2010
4,659,713
895,030
3,370,913
393,850
2011
4,407,063
838,330
3,200,763
367,950
2012
3,035,544
3,035,544
2013
2,736,991
2,736,981
2014
2,571,269
2,371,269
2015
311,706
311.706
$232,804,714
$ 63,852,186
$114,343,638
$1,087,789
$1,566,138
$ 71,954,963
-21-
Debt Service Requirements (Revenue Basis)
Fiscal
Year
Ending
Outstandin Debt (1)
9-30
Principal
Interest
Total
1991
$ 1,217,224
$ 1,004,191
5 2,221,415
1"2
1,210,456
917,901
2,128,357
1993
1,191,275
831,122
2,022,397
1994
1,234,471
742,716
1,977,187
1995
1,183,960
653,529
1,837,489
1996
1,274,679
561,585
1,836,264
1997
1,134,328
627,499
1,761,827
1998
1,122,128
567,882
1,690,010
1"9
1,093,436
507,172
1,600,608
2000
727,535
742,431
1,469,966
2001
546,940
475,452
1,022,392
2002
503,655
342,751
846,406
2003
479,341
242,970
722,311
2004
484,960
139,970
624,930
2005
484,960
104,288
589,248
2006
484,960
68,482
553,442
2007
484,960
32,501
517,461
2008
127,662
10,494
138,156
2009
108,697
3,261
111,958
2010
2011
2012
2013
2014
2015
$50,600,000
Proposed Certificates (SRF Loans) (2)
Series
1991
Series
1992
Series
1993
Grand Total
Certificates
Certificates
Certificates
Requirements
(Project A)
(Project B)
(Project B)
Proposed
Combined
Principal
Interest
Principal
Interest Principal
Interest
Certificates
Requirements
$
$
$
$ $
$
$
S 2,221,415
64,820(3)
64,820
2,193,177
80,000
134,337
1,559,925(4)
1,774,262
3,796,659
80,000
129,938
2,501,522(4)
412,298(5)
3,123,758
5,100,945
80,000
125,538
1,955,000
2,574,956
637,805(5)
5,373,299
7,210,788
80,000
121,137
1,955,000
2,442,994
490,000
646,313
5,735,443
7,571,707
80,000
116,737
1,955,000
2,311,031
490,000
613,238
5,566,006
7,327,833
80,000
112,337
1,955,000
2,179,069
490,000
580,162
5,396,568
7,086,578
80,000
107,938
1,955,000
2,047,106
490,000
547,087
5,227,131
6,827,739
80,000
103,538
1,955,000
1,915,144
490,000
514,012
5,057,694
6,527,660
80,000
99,138
1,955,000
1,783,181
490,000
480,937
4,888,256
5,910,648
85,000
94,600
1,955,000
1,651,219
490,000
447,862
4,723,681
5,570,087
85,000
89,925
1,955,000
1,519,256
490,000
414,788
4,553,969
5,276,280
85,000
85,250
1,955,000
1,397,294
490,000
381,713
4,384,257
5,009,187
85,000
80,575
1,955,000
1,255,331
490,000
348,638
4,214,544
4,803,792
85,000
75,900
1,955,000
1,123,369
490,000
315,562
4,044,831
4,598,273
85,000
71,225
1,955,000
991,406
490,000
282,488
3,875,119
4,392,580
85,000
66,550
1,955,000
859,444
490,000
249,412
3,705,406
3,843,562
85,000
61,875
1,955,000
727,491
490,000
216,338
3,535,694
3,647,652
85,000
57,200
1,960,000
595,350
490,000
183,263
3,370,813
3,370,813
85,000
52,525
1,960,000
463,050
490,000
150,188
3,200,763
3,200,763
85,000
47,850
1,960,000
330,750
495,000
116,944
3,035,544
3,035,544
1,960,000
198,450
495,000
83,531
2,736,981
2,736,981
1,960,000
66,150
495,000
50,119
2,571,269
2,571,269
495,000
16,706
511,706
511,706
$15,095,629 $ 9,576,196 $23,671,924 $1,655,000 $1,898,933 $39,125,000 $30,483,478 $9,820,000 $7,689,403 $ 90,671,814 $114,343,638
Note: Interest on the Series 1991 Certificates has been calculated at 5.50%; interest on the Series 1992 and Series 1993 Certificates has been
calculated at 6.75% for purposes of illustration.
(1) Outstanding debt consists of the sewer system portion of various issues of general obligation bonds and outstanding:
$2,334,682 Combination Tax and Sewer System Subordinate Lien Revenue Refunding Bonds, Series 1988; and
$4,900,000 Combination Tax and Sewer System Subordinate Lien Revenue Certificates of Obligation, Series 1988.
Debt service on these obligations is provided for from net revenues of the Sewer System each year by transfer to the General Fund.
The Sewer System has no revenue bond bonded debt.
(2) Annual debt service on these proposed Certificates will be provided from net revenues of the Sewer System by direct transfer to the
appropriate Interest and Sinking Fund.
(3) Interest based on drawdown schedule as estimated in SRF-35 (Project A). See Exhibit 9a.
(4) Interest based on drawdown schedule as estimated In SRF-35 (Project B). See Exhibit 9b.
(5) Interest based on drawdown schedule as estimated in SRF-35 (Project C). See Exhibit 9c.
CITY OF LUBBOCK. TEXAS
PROJECTION OF REVENUES, F.?WENSFS,
NET REVENUES, AND
DEBT SERVICE COVERAGE
SEWER SYSTEM
PROJECTED
PRESENT SEVER
CObf8M4E71
FISCAL
PROJECTED
SYUrEM GENERAL
REOIRREMENT'S
PROJECTED
YEAR
CONNECTIONS
PROJECTED
PROJECTED
PROJECTED
OBLIGATION
CEF;TfFlCATr=S OF
COMBINED
COVERAGE
ENDeMG
SEWER
roar- GROSS
OPERATING
NET
DEBT
OBLIGATION SERIES
REOUtPaDAENTS
ALL DEBT
SEPT 30
(@.I%NM
Mote REVENUES
EXPENSES
REVENM
REQUIREMENTS
(SRF LOAN)
ALLDE9T
SERVICE
1991
1992
1993
1991
62.046
$9.417.207
$4.402.344
$5,014.863
S2,221,415
$2.221,415
2.26 X
1992
62.666
(1) 11.300.648
4,622.461
6.678,187
2,128,357
$64,820
2,193,177
3.04 X
1993
63,293
(2) 12,204,191
4,853,584
7.350,607
2,022,396
214,338
$1,559,925
3.796.659
1.94 X
1994
63,926
(3) 13.181.478
5.169.067
8.012,411
1.977,186
209.938
2,501,522
$412.298
5.100.944
1.57 X
1995
64,565
(4) 14,233,614
5.546.409
8,687,2D5
1.837.489
205.538
4.529,956
637.805
7,210,788
1.20 X
1996
65,210
(5) 15,373,904
5,823.730
9.550,174
1,936,264
201,138
4,397.994
1,136.313
7,571,709
1.26 X
1997
65.863
(6) 15.529.686
6.114.916
9.414.770
1,761,827
196,738
4,266.031
1,103,238
7,327.834
1.28 X
1998
66.621
15.687.254
6.420.662
9.266.592
1,690,009
192,338
4.134.069
1,070,163
7,086.579
1.31 X
19"
67,186
15,845,056
6.741,695
9.103.361
1,600,608
187.938
4,002.106
1,037,088
6.927.740
1.33 X
2000
67,858
16,003,507
7,078.780
8.924.727
1.469,986
183.638
3.870.144
1,004,013
6.527.661
1.37 X
2001
68.537
16.163.542
7,432.719
8,730.823
1.022,392
179.138
3.738.181
970,938
5,910,649
1.48 X
2002
69.222
16,325.177
7.804.355
8,520,822
846,406
179,600
3,606.219
937,863
51570,088
1.53 X
2003
69,914
16,488,429
8,194,5M
8.293,856
722.311
174,925
3,474,256
904,788
5,276,280
1.57 X
2004
70,614
16.653,313
8.604.301
8.049.012
624.930
170.250
3,3422M
871,713
5,009.187
1.61 X
2005
71.320
16,819,846
9,034,516
7,785,330
589,248
165,575
3.210,331
838,638
4,803,792
1.62 X
2006
72,033
16,988.045
9,486.242
7.501.803
553,442
160,900
3.078.369
805.563
4,598,274
1.63 X
2007_
72,753
17,157.925
9.960.554
7.197.371
517,461
156.225
2.946,406
772,488
4.392.580
1.64 X
2008
73.481
17,329,504
10.458.582
6.870,922
138,156
151,550
2,814,444
739,413
3,843.50
1.79 X
2009
74.216
17.502,799
10,981.511
6,521.288
111,958
146.875
2.682.481
706.338
3.647,652
1.79 X
2010
74,958
17,677.827
11,530,586
6.147.241
142,200
2,555.350
673.263
3.370.813
1.82 X
2011
75,707
17,854,606
12,107.116
5.747.490
137,525
2.423,060
640,188
3,2M.763
1.80 X
2012
76.464
18.033.152
12,712,472
5,320.680
132,850
2,290.760
611.944
3,035.544
1.75 X
2013
77.229
18.213.483
13,348.095
4.865.388
2.158.450
578,531
2.736.981
1.78 X
2014
78,001
18,395,618
14,015,500
4,380,118
2,026,150
545,119
2.571,269
1.70 X
2015
78.781
18,579.574
14,716.275
3,863,299
511,706
511.706
7.66 X
(1) Projected
Sewer Rate Increase Effective 10-1-91
a.A(
(2) Projected
Sewer Rate Increase Effective 10-1-92
(3) Projected Sewer Rate Increase Effective 10-1-93
Prepared
March 11, 1991
(4) Projected Sewer Rate Increase Effective 10-1-94
J. Robert Me
ate
Dan A. Hawkins,
P.E.
(5) Projected
Sewer Rate Increase Effective 10-1-95
Assistant City Manager
Director Water Utilities
(6) Additional capital projects and/or increases
for Finance Services
City of Lubbock, Texas
in operating and maintenance expenses beyond
City of Lubbock. Texas
projections will be Covered by rate Increases
as necessary
Reviewed
& Approved March 13,
1991
La unningha 1ty Manager
0.6 Auttt five, City of Lubbock, Texas
Reviewed
& Approved March 15,1991
Joe W. Smith
First Southwest Company,
Abilene. Texas
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By Robert Massengale
R769
1 S 2 9
R�n44 ✓
PIRST ej COMPANY
I NVESTMENT BANKERS
P.O. BOX 2754-79604
402 CYPRESS, SUITE 103
ABILENE, TEXAS 79601
JOE W. SMITH March 20, 1991
SENIOR VICE GRESIOENT
Ms. Charlotte Brigham
Texas Water Development Board
Room 516, Stephen F. Austin Building
1700 North Congress Avenue
Austin, Texas 78701
Re: City of Lubbock (Lubbock County), Texas
Application for Loan Assistance
from the State Water Pollution
Control Revolving Fund for a
Wastewater System Project
Dear Charlotte:
(915) 672-6432
Enclosed are eight copies of page 34/35 (a double -sided page) which I will
appreciate your inserting in the application in place of those pages originally
included.
As we discussed by telephone we have corrected the next -to -last paragraph of page
34 so that the final sentence reads "Further successive annual sewer rate increases
of approximately 6.9% each to provide for increasing levels of debt service through
Fiscal Year Ending 9-30-1996 are projected to be required each October 1, 1992
through 1995". �% _
J . Smith
J WS:gc
Enclosures
FIRST <E COMPANY
cc:
Mr. Larry J. Cunningham
City Manager
City of Lubbock
P. O. Box 2000
Lubbock, Texas 79457
Mr. J. Robert Massengale
Assistant City Manager for Financial Services
City of Lubbock
Mr. Carroll McDonald
Assistant City Manager for Utilities
City of Lubbock
Mr. Dan A. Hawkins, P.E.
Director of Water Utilities
City of Lubbock
Ms. Ranette Boyd
Secretary -Treasurer
City of Lubbock
Mr. William E. Carroll, P.E.
Black be Veatch
5728 LBJ Freeway
Dallas, Texas 75240
Mr. Mark S. Westergard
Fulbright be Jaworski
2200 Ross Avenue, Suite 2800
Dallas, Texas 75201
F111RST COMPANY
INVESTMENT BANKERS
P.O. BOX 2754-79604
402 CYPRESS, SUITE 103
ABILENE, TEXAS 79601
March 20, 1991
JOE W. SMITH (915) 672-6432
SENIOR VICE PRESIDENT
Mr. Larry J. Cunningham
Mr. J. Robert Massengale
Mr. Carroll McDonald
Mr. Dan A. Hawkins
Ms. Ranette Boyd
Mr. William E. Carroll, P.E.
Mr. Mark A. Westergard
RE: City of Lubbock SRF Application
Ladies and Gentlemen:
Enclosed is a double -sided corrected page, 34/35, which I will appreciate your
inserting in your copy of the Application. The correction is noted in the attached
letter.
Yqw-s-ro�Ytruly,
yG. Smith
J WS:gc /
BILLINGS
Customers of Lubbock's water, sewer, and sanitation systems are billed simultaneously on one statement;
if the customer is connected to the City's electric system, electric charges are also Included. All
customers who do not pay their bill within 22 days of the date it is mailed to them are charged a 3% late
payment penalty. if the bill has not been paid on the next billing date, a statement is mailed showing the
past due bill together with the current bill. If the bill remains delinquent 7 days after the date of the
second statement, a reminder/cut-off notice is mailed. The cut-off notice specifies that service will be
discontinued in 7 days if payment in full is not made. At the end of the 7 day period, a field collector
calls on the customer and if he is unable to collect payment, service is cut off. The reconnection charge,
Including electric service if the customer is connected to the City's electric system, is $13.00 before 3:00
p.m. and $23.00 after 3:00 p.m. and during weekends and holidays.
Note: The City owns and operates a Waterworks System, an Electric Light and Power System and an
Airport System (Lubbock international Airport).
The Waterworks System Is described In Appendix A, below.
Discussion of Projected Sewer Rates
Sources: City of Lubbock, Texas
Ernst & Young, Denver, Colorado
The City's present sewer rate structure is a modified user charge system based on water usage and
surcharges for excessive strength contributions to the wastewater system (see'tSewer Rates", above).
As part of the Wastewater Project to be financed with SRF loans the City will adopt a formal User
Charge System by ordinance with rates and regulations in accordance with Federal regulations. The
estimated date for submission of the User Charge System is October 1, 1991 (see Exhibit d6a, SRF-34,
Project Schedule, Project A).
The User Charge System is now under development by the City and its rate consultants, Ernst do Young,
Denver, Colorado, but is not yet at a stage that will permit a definitive descriptive analysis.
With reference to Ernst do Young, the City realized the need to make substantial and long-term
improvements to its wastewater treatment and disposal facilities in 1989 and that this program would
require a sewer rate structure that would be equitable to all customer classes. As an effective water
conservation plan is also mandatory, the City requested proposals for a comprehensive water and
wastewater rate study from a nationally recognized engineering and accounting firm. The City retained
Ernst & Young in spring, 1990, to prepare a study of the City's rate structures and develop a new water
and sewer structure which would ensure that the City would meet all debt service requirements, maintain
operations of existing and proposed facilities, to meet all federal and state regulations and promote water
conservation. The final report from Ernst do Young is expected to be available for City Council
consideration in late spring, 1991.
This report will provide a basis for the development of the formal User Charge System as well as for
future water rate structures.
Whether the final User Charge System structure is in place or not a sewer rate increase of approximately
18.9% will be implemented effective 10-1-1991, the beginning of the City's Fiscal Year 1991-1992i this
rate Increase Is designed to initially anticipate and provide for the additional debt service requirements
incurred under the proposed SRF loan program. Further successive annual sewer rate increases of
approximately 6.9% each to provide for increasing levels of debt service through Fiscal Year Ending
9-30-1986 are projected to be required each October 1, 1992 through 1993.
Average Residential Sewer Customer Impact
The current monthly sewer rate for an average Lubbock residential customer, based on an average
sanitary sewer discharge of 3,000 gallons, Is $6.96.
-34-
Projected monthly residential sewer customer rates following each of the anticipated sewer rate increases
are:
Projected
Approximate
Average
Residential
Sewer Customer
Rate Monthly
Effective % Sewer
Date increase Bill
10-1-1991 18.84W 8.27
10-1-1992 6.9% 8.84
10-1-1993 6.9% 9.44
10-1-1994 6.9% 10.10
10-1-1993 6.9% 10.80
These increases applied to present sewer rates result in the following:
Sewer Rates Monthly
Present
Rates 18.8% 6.9% 6.9%
6.9%
6.9%
(Effective Increase Increase Increase
Increase
Increase
1-1-89) 10-1-91 10-1-92 10-1-93
10-1-94
10-1-93
Residential
First 3,000 gallons (Minimum)
$3.60 $6.63 $7.10 $7.38
$8.10
$8.66
Next 7,000 gallons
0.68/M gals. 0.81/M gallons 0.87/M gals. 0.93/M gals.
1.00/M gals.
1.07/M gals.
Over 10,000 gallons
No charge No charge No charge No charge
No charge
No charge
Maximum Monthly Charge
$10.36 $12.32 $13.19 $14.09
$13.10
$16.13
Commercial/Industrial (1)
First 3,000 gallons (Minimum)
$5.60 $6.63 $7.10 $7.38
$13.10
$16.13
Over 3,000 gallons
0.68/M gals. 0.81/M gals. 0.87/M gals. 0.93/M gals.
1.00/M gals.
1.07/M gals.
(1) industrial waste surcharges:
B.O.D. and grease
$0.1076/lb. $0.1278/lb. $0.1366/lb. $0.1460/lb.
$0.1361/lb.
$0.1669/lb.
S.S.
0.0918/Ib. 0.1091/lb. 0.1 166/1b. 0.1246/1b.
0.133211b.
0.1424/lb.
The Projection of
Revenues, Expenses, Net Revenues and Debt Service Coverage following reflects the
above discussion.
Also integrally incorporated in the Projection is the City of Lubbocles
Planning
Department recommendation that an average sewer customer account growth factor of 1% per year
should be anticipated.
-33-
JOE W. SMITH
SENIOR VICE PRESIDENT
FIRST ej COMPANY
I NVES7'MENT BANKERS
P.O. BOX 2754-79604
402 CYPRESS, SUITE 103
ABILENE, TEXAS 79601
March 19, 1991
Mr. Larry J. Cunningham
Mr. J. Robert Massengale
Mr. Carroll McDonald
Mr. Dan A. Hawkins
Ms. Ranette Boyd
Mr. William E. Carroll, P.E.
Mr. Mark A. Westergard
(915) 672-8432
RE: City of Lubbock SRF Application
Ladies and Gentlemen:
Enclosed is a double -sided corrected page, A-4/A-5, Appendix A, which I will
appreciate your inserting in your copy of the Application. As noted in the attached
letter, two of the line items on page A-4 have bee corrected.
Yours ver truly,
J WS:gc
Estimated
Cost
Safe Drinking Water Act
6.0 mg additional clearwell storage
$ 2,300,000
Filter modifications
1,250,000
Disinfection facilities
1,361,000
Various other improvements, including:
Flow Split, Rapid Mix,
Sludge Piping, Polymer Feed,
Laboratory, Controls
Sub SDWA
1 959 000
6:470:000
-Total,
Safety (includes chlorine/ammonia systems)
$ 607,000
Emerxency Structural
$ 70,000
Maintenance and Repair
o�red activated carbon
$ 592,000
Flocculators
1,975,000
Clarifiers
520,000
Electrical
375,000
Other
279,000
Sub -Total, Maintenance and Repair
$ 3,941,000
Miscellaneous
$ 630,000
Total Estimated Construction Cost
$11,719,000
Contingency
2,040,000
Engineering and Allied Costs
2,106,000
Inflation to Construction Midpoint
906,000
Total Estimated Project Cost
$17,070,000
Sources of Funds for financing the project are estimated to be:
Proceeds of the Waterworks Certificates
$16,120,000
Other Available Funds
950,000
Total
$17,070,000
Water Rates ... The City will provide for debt service on the Waterworks Certificates by direct transfer
to the Interest and Sinking Fund from net revenues of the Waterworks System; the Waterworks
Certificates will be self-supporting. As a result, the City is evaluating the need for a water rate increase
effective 10-1-1991 to provide for this debt service.
This evaluation will take into account the following factors:
1. 20.34% of annual debt service on the Waterworks Certificates and other capital costs associated
with the treatment plant improvement program will be reimbursed the City under the contracts for
treatment of CRMWA water with Brownfield, Lamesa, Levelland, O'Donnell, Slaton and Tahoka, as
will an equal percent of any increased operation and maintenance expense.
2. The City has established a Rate Stabilization Reserve In the Water Enterprise Fund. At 9-30-1990
this reserve had a balance of $4,993,059 with a budgeted increase of $165,642 for Fiscal Year Ending
9-30-1991.
Ernst do Young are preparing a report containing recommendations as to future water rate structure; the
final report is expected to be available in late Spring, 1991. See "Discussion of Projected Sewer Rates,
the Sewer System", above.
-A-4-
CONDENSED STATEMENT OF OPERATIONS
WATERWORKS SYSTEM
Fiscal Year Ended
9-30-90
9-30-89
9-30-99
9-30-97
9-30-86
Operating Revenues
$19,668,087
16,660,193
15,381,553
13,7 33,018
$13,983,284
Non -Operating Income
Gross Income
1 880 945
$21,549,032
626,042
$17,296,233
979,593
516,360,139
803,167
514,316,1351
1 328 939
15:312:223
Operating Expense
(excluding depreciationXl)
Net Revenue
8 700 920
12 E48 112
8 407 336
8 878 899899
914941
6,866,030
9,963.219
632 967
4,652,967
10,54E 9_79
4,763,244
Water Meters
62,119
62,631
61,628
60,981
60,751
(1) Operating expense includes construction repayment costs and operating and maintenance charges paid
to CRMWA and to BRA.
Note: The City currently has no outstanding or authorized Waterworks System Revenue Bonds, however,
the City does have $21,495,432 general obligation debt outstanding which was issued for waterworks
system purposes and which is supported by revenues of the System.
Water Rates (Monthly)
Present Rates Previous Rates
Effective Effective
Water Consumption _October 1 1990 1) October 1 1989 (1)
First 1,000 Gallons Minimum 7.31 $6.76
Next 49,000 Gallons (per thousand) 1.53 1.28
Next 200,000 Gallons (per thousand) 1.37 1.12
All Over 250,000 Gallons (per thousand) 1.31 1.06
(1) The water rate increase effective October 1, 1989, and the subsequent increase effective October 1,
1990, have been designed to provide increased revenues to provide for debt service on, financing for and
maintenance and operation costs of Lake Alan Henry and other projected Waterworks System costs. The
water rate increase effective October 1, 1989, provided estimated increased gross revenues in excess of
$2,000,000 during Fiscal Year Ended September 30, 1990. The subsequent water rate increase effective
October 1, 1990, will provide additional estimated increased gross revenues in excess of $3,000,000 during
Fiscal Year Ended September 30, 1991, or an estimated combined annual increase in excess of $5,000,000.
The City is evaluating the need for a water rate increase effective 10-1-1991 to ensure the availability of
Waterworks System net revenues for debt service on the $16,120,000 Waterworks Certificates as debt
service will be directly provided from these net revenues. Factors enteringg into the evaluation will
include reimbursements the City will receive from Brownfield, Lamesa, Levelland, O'Donnell, Slaton and
Tahoka under their CRMWA water treatment contracts with Lubbock and the Waterworks Enterprise Fund
Rate Stabilization Reserve Account which had a balance of $4,993,059 at 9-30-1990.
Ernst do Young are preparing a report which will contain recommendations as to the City's future water
rate structure; the final report is expected to be available for City Council consideration in late spring,
1991.
-A-3-
`a
FIRST
COMPANY
INVESTMENT BANKERS
JOE W. SMITH
SENIOR VICE PRESIDENT
Mr. Larry J. Cunningham
Mr. J. Robert Massengale
Mr. Carroll McDonald
Mr. Dan A. Hawkins
Ms. Ranette Boyd
Mr. William E. Carroll, P.E.
Mr. Mark A. Westergard
P.O. BOX 2754-79604
402 CYPRESS, SUITE 103
ABILENE, TEXAS 79601
March 18, 1991
RE: City of Lubbock SRF Application
(915) 67249M
Ladies and Gentlemen:
Please replace pages 3 and 4 of your copy of the SRF application in order to make f
the correction demonstrated in the attached letter. ArV
J WS:gc
1-0IRST E&a&UVC4t C0MPANY
INVES'I'.IENT RANKERS
P.O. BOX 2754-79604
402 CYPRESS, SUITE 103
ABILENE, TEXAS 79601
JOE W. SMrTH March 19, 1991
SENIOR VICE PRESIDENT
Mr. Kevin Ward
Finance Section Chief
Texas Water Development Board
Room 516, Stephen F. Austin Building
1700 North Congress Avenue
Austin, Texas 78701
Re: City of Lubbock (Lubbock County), Texas
Application for Loan Assistance
from the State Water Pollution
Control Revolving Fund for a
Wastewater System Project
Dear Kevin:
(915) 672-8432
We have corrected two of the line item numbers on page A-4, Appendix A, of the
Application. The corrections apply to the Wastewater Treatment Improvement
Program estimated cost summary.
Enclosed are eight copies of pages A-4/A-5 (a double -sided page) which I will
appreciate your inserting in the Application in place of those pages originally
included.
J WS:gc
Enclosures
FIRST ,6oatitwe t GOMPAN-Y
cc: Mr. Larry J. Cunningham
City Manager
City of Lubbock
P. O. Box 2000
Lubbock, Texas 79457
Mr. J. Robert Massengale
Assistant City Manager for Financial Services
City of Lubbock
Mr. Carroll McDonald
Assistant City Manager for Utilities
City of Lubbock
Mr. Dan A. Hawkins, P.E.
Director of Water Utilities
City of Lubbock
Ms. Ranette Boyd
Secretary -Treasurer
City of Lubbock
Mr. William E. Carroll, P.E.
Black do Veatch
5728 LBJ Freeway
Dallas, Texas 75240
Mr. Mark S. Westergard
Fulbright do Jaworski
2200 Ross Avenue, Suite 2800
Dallas, Texas 75201
FIRST c6OGG&1!lW'It COMPANY
INVESTMENT BANKERS
P.O. BOX 2754-79604
402 CYPRESS, SUITE 103
ABILENE, TEXAS 79601
March 18, 1991
JOE W. SMITH (915) 672.8432
SENIOR VICE PRESIDENT
Mr. Kevin Ward
Finance Section Chief
Texas Water Development Board
Room 516, Stephen F. Austin Building
1700 North Congress Avenue
Austin, Texas 78701
Re: City of Lubbock (Lubbock County), Texas
Application for Loan Assistance
from the State Water Pollution
Control Revolving Fund for a
Wastewater System Project
Dear Kevin:
As I reported to you by telephone today, the title of the Series 1992 and the Series
1993 Certificates of Obligation is incorrectly written on page 3 ("Offering
Memorandum", $39,125,000 Certificates of Obligation, Series 1992) and page 4
("Offering Memorandum", $9,820,000 Certificates of Obligation, Series 1993).
The title in both cases should read "COMBINATION TAX AND SEWER SYSTEM
SUBORDINATE LIEN REVENUE CERTIFICATES OF OBLIGATION",
rather than
"COMBINATION TAX AND WATERWORKS AND SEWER SYSTEM SUBORDINATE
LIEN REVENUE CERTIFICATES OF OBLIGATION".
Enclosed are 8 copies each of corrected pages 3 and 4 which I will appreciate your
inserting in the Application in place of those pages originally included.
Thanks very much for your
JWS:gc
Enclosures
FIRST 6&abOMVedt COMPANY
cc: Mr. Larry J. Cunningham
City Manager
City of Lubbock
P. O. Box 2000
Lubbock, Texas 79457
Mr. J. Robert Massengale
Assistant City Manager for Financial Services
City of Lubbock
Mr. Carroll McDonald
Assistant City Manager for Utilities
City of Lubbock
Mr. Dan A. Hawkins, P.E.
Director of Water Utilities
City of Lubbock
Ms. Ranette Boyd
Secretary -Treasurer
City of Lubbock
Mr. William E. Carroll, P.E.
Black & Veatch
5728 LBJ Freeway
Dallas, Texas 75240
Mr. Mark S. Westergard
Fulbright & Jaworski
2200 Ross Avenue, Suite 2800
Dallas, Texas 75201
FIRST <50a&MMO COMPANY
I NVESI'.MENT BANKERS
P.O. BOX 2754-79604
402 CYPRESS, SUITE 103
ABILENE, TEXAS 79601
March 15, 1991
JQE W. SMITH (915) 672.8432
SENIOR VICE PRESOENT
tip✓ �
Mrs. Sue M. Brookmole tiIq
Development Fund Manager Rf�9799,
Texas Room 516 er Development BoardSteephen F. Austin Building
q Sf��E Rf!°
1700 North Congress Avenue
Austin, Texas 78701 S�
Re: City of Lubbock (Lubbock County), Texas
Application for Loan Assistance
from the State Water Pollution
Control Revolving Fund for a
Wastewater System Project
Dear Mrs. Brookmole:
At the request of Mr. Larry J. Cunningham, City Manager and Authorized
Representative of the City of Lubbock, Texas, I am enclosing eight copies of
Application to the Texas Water Development Board for loan assistance from the
State Water Pollution Control Revolving Fund ("SRF") in connection with the City's
Wastewater Treatment and Disposal Improvement and Expansion Project.
The first copy of the Application, designated Application No. 1, contains original,
manually signed copies of
1. SRF-37, Estimated Project Cost, Project A, Project B and Project C
and Combined (following page 13);
2. Projection of Revenues, Expense, Net Revenues and Debt Service
Coverage, Sewer System (following page 36);
3. Certificate and Resolution Requesting Financial Assistance From the
Texas Water Development Board Under The State Revolving Fund Loan
Program (Exhibit #I).
4. Certificate of Compliance and Affidavit of Authorized Representative
(Exhibit #2);
I
FIRST ,6OZGt'MW,Jt COMPANY
5. EPA Form 4700-4, Preaward Compliance Review Report (Exhibit #3);
6. EPA Form 5700-49, Certification Regarding Disbarment, Suspension
and Other Responsibility Matters (Exhibit #4);
7. SRF-33, State Revolving Fund - Assurances (Exhibit #5); and
8. SRF-10TEXAS, Affirmative Action Plan for Meeting SRF MWBE
Participation Goal (Exhibit #8);
and copies of Exhibits #6 (Project Schedules, SRF-34); #7 (SRF Payment Schedules,
SRF-35) and #9 (Calculation of Interest Due Based on Drawdown Schedule), all as
listed in the Table of Contents.
The remaining seven copies of the Application contain xerox copies of all the above
listed documents.
One copy each of Exhibits #10 through #20, inclusive, as listed in the Table of
Contents, are enclosed with Application No. 1.
A list of previously filed documents will be found in the Table of Contents.
I understand that I will be advised as to the filing of 40 additional copies of the
Application and the Exhibits that are to be included in these copies.
The City respectfully requests that this Application for SRF Loan Assistance be
considered by the Texas Water Development Board at its meeting on April 18,
1991.
Please let me know if I can furnish additional information.
J WS:gc
Enclosures
FIEST 3*(, th&w,4t compANY
cc: Mr. Larry J. Cunningham
City Manager
City of Lubbock
P. O. Box 2000
Lubbock, Texas 79457
Mr. J. Robert Massengale
Assistance City Manager for Financial Services
City of Lubbock
Mr. Carroll McDonald
Assistant City Manager for Utilities
City of Lubbock
Mr. Dan A. Hawkins, P.E.
Director of Water Utilities
City of Lubbock
Ms. Ranette Boyd
Secretary -Treasurer
City of Lubbock
Mr. William E. Carroll, P.E.
Black & Veatch
5728 LBJ Freeway
Dallas, Texas 75240
Mr. Mark S. Westergard
Fulbright & Jaworski
2200 Ross Avenue, Suite 2800
Dallas, Texas 75201
Ii'IRST �j COMPANY
INVESTMENT BANKERS
JOE W. SMITH
SENIOR VICE PRESIDENT
Mr. Larry J. Cunningham
Mr. J. Robert Massengale
Mr. Carroll McDonald
Mr. Dan A. Hawkins
Ms. Ranette Boyd
Mr. William E. Carroll, P.E.
Mr. Mark A. Westergard
P.O. BOX 2754-79604
402 CYPRESS, SUITE 103
ABILENE, TEXAS 70601
March 15, 1991
RE: City of Lubbock SRF Application
Ladies and Gentlemen:
4
MAR 1991
MEIYED
11C*EFij1r
(915)672-8432
All of the copies of the SRF Application received by you and others on the copy list
contain xerox copies of SRF-37, the Projection, and Exhibits #149. Exhibit #10-
#20 were provided only to the Water Development Board.
None of the Applications are stapled so that substitutions can be made if requested
by the Water Development Board or become otherwise necessary.
This initial filing will be followed by 40 copies upon advice from TWDB; these will
include only the sections requested by TWDB and may be only the Application
without Exhibits.
I will advise.
JWS:gc
P. S. Robert and Ranett
Revised calendar of the
JWS
CITY ADMINISTRATION
Elected Officials
Length Term
City Council
of Service Expires Occupation
B.C. McMinn
3 Years May, 1992 Retired; Investments
Mayor
T. J. Patterson
7 Years May, 1992 Co -Publisher, Southwest Digest
Mayor Pro-Tem
Joan Baker
11 Years May, 1992 Homemaker
Councilwoman
M. J. Aderton
I Year May, 1994 Retired
Councilman
Maggie Trejo
7 Years May, 1994 Homemaker
Councilwoman
Bill Maloy
3 Years May, 1992 President, Sentry Property Management, Inc.
Councilman
Gary D. Phillips
3 Years May, 1994 Phillips do Associates - Real Estate Appraisal
Councilman
i
Appointed Officials
Length of
Length of
Employment
Time in
With City
Name
Position This Position
of Lubbock
Larry J. Cunningham •
City Manager 14 Years
24 Years
Bob Cass
Deputy City Manager 6 Years
13 Years
John C. Ross, Jr.
City Attorney 12 Years
12 Years
Ranette Boyd
Secretary -Treasurer 7 Years
17 Years
J. Robert Massengale
Assistant City Manager for Financial Services i E Years
11 Years
Rita P. Harmon
Assistant City Manager for Public Safety 8 Years
IS Years
and Services
James E. Bertram
Assistant City Manager for Development Services] 11 Years
21 Years
Carroll McDonald
Assistant City Manager for Utilities 1 2 Years
12 Years
Dan A. Hawkins
Director of water Utilities 2 Years
3 Years
"Authorized Representative ------------ Mr. Larry J. Cunningham
City Manager
City of Lubbock
P. O. Box 2000
Lubbock, Texas 79437
•.i_ 12n41 7c7_'5nnn
Consultants and Advisors
Consulting Engineers for Wastewater Project --------------------------+- William E. Carroll, P.E.
black & Veatch
372E L53 Freeway, Suite 300
Dallas, Texas 73240
(214)770-1300
Auditors--------------------------------------------------------------- John Eurdette, C.P.A.
Coopers be Lybrand
Certified Public Accountants
First National Bank Building, 13th Floor
Lubbock, Texas 79401
(E06) 744-3333
Bond Counsel----------------------------------------------------------- Mark S. Westergard
Fulbright & Jaworski
2200 Ross Avenue, Suite 2900
Dallas, Texas 75201
(214) E83-9002
----------------------------------------------------------
Financial Advisor -- - Joe W. SmIth
Senior Vice President
j First Southwest Company
P. O. Box 2734
Abilene, Texas 79604-2734
(913) 672-3432
-3-
No Text
CITY OF LUBBOCK, TEXAS
PROTECTION OIL REVENUES, EXPENSES. NET REVENUES, AND
DEBT SERVICE COVERAGE
SEWER SYSTEM
FISCAL
PROJECTED
PRESENT SEINER
SYSTEM GENERAL
YEAR
CONNECTIONS PROJECTED
PROJECTED PROJECTED OBLIGATION
ENDING
SEWER root- GROSS
OPERATING NET , DEBT
SEPT30
(@*I NYR) wow REVENUES
EXPENSES REVENUE REQUIREMENTB
1991
62,046
$9,417,207 I
$4,402,344
1992
62,666
(1) 11,300,648
4,622,461
1993
63,293
(2) 12,204,191
4,853,584
1994
63.926
(3) 13,181,478
5,169,067
1995
64,565
(4) 14,233,614
5,546.409
1996
65,210
(5) 15,373,904
5,823,730
1997
65,863
(6) 15,529,686
6.114.916
1998
66,521
15.687,254
6.420,662
1999
67,186
15,845,056
6,741,695
2000
67,858
16,003,507
7,078,780
2001
68,537
16,163,542
7,432,719
2002
69,222
16,325.177
7,804,355
2003
69.914
16.488,429
8,194,573
2004
70,614
16,653.313
8,604.301
2005
71,320
16,819,846
9,034,516
2006
72,033
16,988,045
9,486,242
2007
72,753
17,157,925
9,960,554
2008
73,481
17,329,504
10.458,582
2009
74,216
17,502,799
10,981,511
2010
74,958
17,677,827
11,530,586
2011
75.707
17,854,606
12,107.116
2012
76,464
18,033,152
12.712,472
2013
77,229
18.213,483
13.348,095
2014
78.001
18,395,618
14.015,500
2015
78,781
18,579,574
14.716,275
(1) Projected
Sewer Rate Increase Effective 10-1-91
(2) Projected
Sewer Rate Increase Effective 10-1-92
(3) Projected
Sewer Rate Increase Effective 10-1-93
(4) Projected
Sewer Rate Increase Effective 10-1-94
(5) Projected
Sewer Rate Increase Effective 10-1-95
(6) Additional
capital projects and/or increases
in operating
and
maintenance expenses beyond
projections will be covered by rate increases
as necessary
$5,014.863
6.678,187
7,350,607
8,012,411
8,687.205
9,550,174
9.414.770
9,266,592
9,103,361
8,924,727
8,730.823
8,520,822
8,293,856
8,049,012
7,785,330
7,501,803
7,197,371
6,870,922
6,521.288
6,147,241
5,747,490
5.320,680
4,865,388
4,380,118
3,863,299
$2,221,415
2,128.357
2,022,397
1,977,187
1.837,489
1,836,264
1,761.827
1,690,010
1,600,608
1.469,966
1,022.392
846,406
722,311
624.930
589,248
553,442
517.461
138,156
111,958
Prepared March 27,1991
PROJECTED
COMBINED
REQUIREMENTS
CERTIFICATES OF
OBLGATION SERIES
(SW LOAN)
1991 1992
$64,820
168,826
164,426
160,026
155,626
151,226
146,826
142,426
138.026
133,626
134,088
129,413
124,738
120,063
115,388
110,713
106,038
101.363
96,688
92,013
87,338
$1,559,925
2,501.522
4.529,963
4,398,000
4.266,037
4,134.074
4,002,111
3,870,148
3,738.185
3,606,222
3,474,259
3.342,296
3,210,333
3,078,370
2,946,407
2,814,444
2,682,481
2.555,350
2.423,050
2,290,750
2,158,450
2,026,150
PROJECTED
COMBINED COVERAGE
REQUIREMENTS ALL DEBT
ALL DEBT SERVICE
1993
$412.298
637,805
1,136,314
1,103.239
1.070,164
1,037,089
1,004,014
970,939
937.864
904,789
871,714
838,639
805,564
772.489
739,414
706.339
673,264
640,189
611,945
578,532
645,119
511,706
V J. Robert Massengale '
Assistant City Manager
for Finance Services
City of Lubbock, Texas
Reviewed'& Approved March-27,1991
Reviewed & Approved March 29 V 991
$2.221,415
2.193,177
3,751,148
5.055,433
7,165,283
7,526,204
7,282,329
7,041,074
6,782,234
6,482,154
5,865,142
5,524.580
5,230,772
4,963,678
4.758,283
4,552,764
4,347.070
3,798.052
3,602,141
3,325,302
3,155,252
2,990.033
2.736,982
2,571,269
1 511.706
2.26 X
3.04 X
1.96 X
1.58 X
1.21 X
1.27 X
1.29 X
1.32 X
1.34 X
1.38 X
1.49 X
1.54 X
1.59 X
1.62 X
1.64 X
1.65 X
1.66 X
1.81 X
1.81 X
1.85 X
1.82 X
1.78 X
1.78 X
1.70 X
7.55 X
U;
Dan A. Hawkins, P.E.
girector water Utilities
City of Lubbock, Texas
Lary unningham, Cit M nager
& Authorized Representative, City of Lubbock, Texas
L�
Joe W. Smith
First Southwest Company, Abilene, Texas
SRf ES71YATEO PMACT COST
FOR PROJECT "A"
A. Construction Cost:
sax Effluent Pipeline s 633,000
1/i "
sRr•37
ca-tT•so)
Major Sewer Rehabilitation
'
Interceptors
"
Collection System
Contingency
fig _ f)o0
• Allowance For Inflation
67,000
TOTAL CONSTRUCTION COST !
764,000
5. Engineering:
Planning Phase (E ID, EP, I / I , WCP)
700.000
Design Phase
62,000
Construction Phase
Basic
32,000
Construction Layout
"
inspection
40,000
Testing
,.
User Charge
20,000
Total Engineering !
874,000
C. financial
10,000
0. Legal
5,000
E. Right -of -Way CNot SRF Eligible)
'
' F. Land (Not SRF Eligible)
'
G. Other (Est. Cost of Issuance)
2,000
•* TOTAL ESTIMATED PROJECT COST ! 1,655,000
This estimate, prepared by Black Veatch Engineers
a, 1 /22/91
(name of firm)
(date)
was made using the most current information available, and in our opinion represents the closest estimate to the act,Net
construction costs. This estimate was made with the expectation
that construction bids would be taken ty `
August, 1991 and should be updated if bidding is delayed beyond that date.
CERTIFIED !T: Larry J. Cunningham .
William E. Carroll, P . E. , Black b Veatch .
Authorized se tat i ve City �f Lubbock
�
,. Ctoan Q'(i t)
,o
CConsutting Engineer)
(Dite
yy'
(Date)
►� '� , 1tCity Seal)
� P�E,Q
(Seat) V'
WILLIAM�E. CARROLL
' Land that will be an integral part of the treatment process Is eligible. �do ;�,p 388$$ gyp• w�i
00 Total Project Cost should be roundedup to the nearest $5 00
increment.
•
SRF-37
SRF ESTUNITED
PQ JECT COST (04-11-90)
R
FOR PROJECT
"B"
A. construction Cost:
STP :
28.878 , 000
Major Sever Rehabilitation
Interceptors
Collection System
cons ingeri-y
0
Allowance For Inflation
3.100,000
TOTAL CONSTRUCTION COST S
34,817,000
t. Engineering:
Planning Phan
Design Phase
2,419,000
Construction Phase
Basic
1-428,000
Construction layout
Inspection
240,000
Testing
—
o 9 M MarvAt
128,000
Project Certification
Total Engineering :
4,248,000
t C. Financial
32.000
D. legal
24,115
E. Right-of-Yay (Mot SRF Eligible)
• F. land (tot SRF Eligible)
G. other (Est. Cost of issuance)
3,885
•* TOTAL ESTIMATED PROJECT COST S
39,125,000
This estimate, prepared by-- Black .b Veatch Engineers
on 1 /22/91
(name of firm)
(date)
was crude using the most current information available, and in our opinion represents the closest estimate to the act+gt
construction costs. This estivate was made with the expectation
that construction bids would be taken by
March, ' 1992 and should be updated if bidding is delayed beyond that date.
ttF1ED e : Larry J . Cunningham.
TatiVe City Lubbock
William E. Carroll, P.E. , Black Veatch
Authorized A ese of of
(Loan t ant3
(Consulting Engineer)
+ !Date)
'�,
(Date)
~••.�'4�g,1`
►, ? 1(C i ty Seal)
(Seat) s�'�
W►LL1AA1•E. CARRO
,
Lord that will be an integral part of the treatment process is eligible. 38888 `i
�• �p�
�F�ts�t �:••,�:,:1
•' Total Project Cost should be rounded up to the nearest SS.000
increment.
SRF ESTIMAT» PROJECT C=
FOR PROJECT "C"
SRF-37
A. Construction Costr
SIP
I/I
Major Sewer Rehabilitation
Interceptors
Collection System
Cant i ngen cy
Allowance For Inflation
TOTAL CONSTRUCTION COST
I. Engineering:
Planning Phase
Design Phase
Construction Phase
Us is
Construction Layout
Inspection
Testing
O i M Manual
Project Certification
Total Engineering
C. Financial
D. Legal
s 6,874,000
695,000
738,815
s 8,307,815
896,000
340,000
220,000
23,000
17,000
: 1,496,000
8,000
6,185
E. Right -of -Way (Not SRF Eligible)
• F..Land (Mot SRF Eligible)
«
G. Other (Est. Cost of I ssuance)
2,000
•* TOTAL ESTIMATED PROJECT COST ><
9,820,000
This estimate, prepared by B I ack & Veatch Engineers
on 1 /22/91
'(name of f irm)
(date)
was made using the most current information available, and in our opinion represents the closest estimate to the actiwl
construction costs. This estimate was made with the expectation
that construction bids would be taken by
Ma rch. 1993 and should be updated if bidding is delayed beyond that date.
nclED Y• Larry J. Cunningham,
City, Lubbock
William E. Carroll, P.E., Black & Veatch
Authorized resenYbitive of of
(Loan ant)
(Consulting Engineer)
A/
;(Date)
(Date)
(C.itty Sea I )
_
OF �Z`\
(seal) �p`.•�'..«...y TL
►, �'',,,,,,
1
.......................1.«!/
WILLIAM E. CARROLL .�
• Land that will be an Integral part of the treatment process is
eligible. at 38888 .o _//
•• Total Project Cost should be rounded up to the nearest 15_DW increment.
SRF-37
SRF ESTIMATED PWACT LOST (04-11-9O)
(Combined - All Projects)
t A. Construction Cost:
STP
1/1
Major Sewer Rehabilitation
Interceptors
Collection System
Contingem-y
Allowance For Inflation
TOTAL CONSTRUCTION COST
B. Engineering:
User Charge
Ptaming Phase
Design Phase
Construction Phase
Basic
Construction Layout
Inspection
Testing
OiMMA-kal
Project Certification
Total Engineering
C. Financial
O. Legal
E. Right-cf-Way (Mot SRF Eligible)
• F. lard (Not SRF Eligible)
G. other (Est. Cost of Issuance)
s 36,385,000
3,598,000
3,905,815
: 43,888.815
20,000
700,000
3,397,000
11800,000
500,000
151,000
50,000
s 6,618,000
50,000
35.300
7,885
** TOTAL ESTIMATED PROJECT COST f 50,600,000
This estimate, prepared by Black & Veatch Engineers o, 1 /22/91
(name of firm) (date)
was made using the most current information available, and in our opinion represents the closest estimate to the acti%i
construction costs. This estimate was made with the expectation that construction bids would be taken t-Y
k.ard should be updated if bidding is delayed beyond that date.
A
RTIFIED BY: Larry J. Cunningham William E. �Carroll, P.E.. Black & Veatch
Authorized se tat ive pJ City o Lubbock'
0 '.. Gl/
'iLaan ant) (Consulting Engineer)
— (Date) ' (Date)
�Ih
", ,'.► ,(City Seal) (Seat) r ,�p0oe
�
1
W1tt1AM E. CARROLI- 3
* land that will be an integral part of the treatment process is eligible. {� .. 0c
e1 a 38888.0,..'
'• Total Project Cost should be rounded up to the nearest S5.000 increment.
R3�q-K
CITY OF LUBBOCK, TEXAS
APPLICATION TO TEXAS WATER DEVELOPMENT BOARD
For Loan Assistance
From the State Water Pollution Control Revolving Fund
$50,600,000 COMBINATION TAX AND SEWER SYSTEM SUBORDINATE LIEN REVENUE
CERTIFICATES OF OBLIGATION:
$ 1,633,000 Series 1991 (Project A)
39,125,000 Series 1992 (Project B)
9,920,000 Series 1993 (Project C)
$30,600,000 Total
(Wastewater Treatment and Disposal Improvement and Expansion Project)
(THIS PAGE LEFT INTENTIONALLY BLANK)
TABLE OF CONTENTS
Pages 1 - 330; A-1 - A-10 Application including Appendix A
•Includes an SRF-37. SRF Estimated Project Cost for Project A, Project B and Project C and a SRF-31
demonstrating the estimated combined cost of the Wastewater Project.
Also includes Projection of Revenues, Expenses, Net Revenues and Debt Service Coverage, Sewer System.
Exhibits
/1 Certified Copy of Resolution Requesting Financial Assistance Under the State Revolving Fund
Loan Program.
02 Certificate of Compliance and Affidavit of Authorized Representative
03 Preaward Compliance Review Report for Wastewater Treatment Construction Grants (EPA
Form 4700-4)
04 Certificate Regarding Debarment, Suspension and Other Responsibility Matters (EPA Form
3700-49)
OS State Revolving Fund - Assurances (SRF-33)
06 Project Schedules (SRF-30
06a. Project A.
06b. Project B.
06c. Project C.
07 SRF Payment Schedules (SRF-33):
07a. Project A.
07b. Project B.
07c. Project C
07d. Combined, Projects A, B and C.
09 Affirmative Action Plan for Meeting SRF MWBE Participation Goal (SRF-10T)
09 Calculation of Interest Due Based on Drawdown Schedule From SRF-33, SRF Project Schedule:
09a. Project A
09b. Project B
09c. Project C
010 Agreement with Bond Counsel, 1 copy.
011 Financial Advisory Agreement, I copy.
012 Agreement for Engineering Services, 1 copy.
113 Contract between the Canadian River Authority and the City of Lubbock, Texas, Including:
The Contract, 7anuary 9, 1961;
Supplemental Contract, Tune 13, 1963;
Modification, December 3, 1963;
Supplemental Contract, January 23, 1944;
Supplemental Contract, June 23, 1966;
Amendment, Tune 26, 1969;
one copy each
(THIS PAGE LEFT INTENTIONALLY BLANK)
Table of Contents - page 2
114 Water Supply Agreement By And Between Brazos River Authority And City of Lubbock, May
11, 1999; 1 copy
115 May 1, 196E, City Council Minutes Concerning the Sale of Sewage Effluent to Southwestern
Public Service Company; 1 copy
116 Water Supply Contract between the City of Lubbock and Lubbock County Water Control and
Improvement District No. 1
f 17 Water Supply Contract between the City of Lubbock and the Town of Ransom Canyon
018 Water Supply Contract between the City of Lubbock and Reese Air Force Base
019 Water Treatment Contracts between the City of Lubbock and:
19a. The City of Brownfield
19b. The City of Lamesa
19c. The City of Levelland
19d. The City of O'Donnell
19e. The City of Slaton
19f. The City of Tahoka
020 Comprehensive Annual Financial Report for Fiscal Year Ending September 30, 1990; City of
Lubbock, Texas; I copy
Previously Filed Documents:
City of Lubbock, Texas, Engineering Plan for Wastewater Treatment and Disposal Facilities;
Black do Veatch, Dallas, Texas.
City of Lubbock, Texas, Environmental Information Document for Wastewater Treatment and
Disposal Facilities; Black do Veatch, Dallas, Texas, in association with Alan Plummer &
Associates, Inc., Austin, Texas.
Infiltration/Inflow Analysis.
Note: It is estimated In SRF 34, Project Schedule, Project A, that the final Water Conservatlon Plan
will be submitted around September 1, 1991. A draft Water Conservation Plan has been filed
with the Texas Water Development Board.
Original, manually signed copies of SRF-371 Projection of Revenues Expenses, Net Revenues
and Debt Service Coverage, Sewer stem; and Exhlbits fl, 02, f3, f4, f3 and #8 are
contained in Application 0 1.
One copy each of Exhibits f 10, f 11, f 12, f 13, f 14, 013, 016, 017, f 18, f 19 and f 20 are
enclosed with Applcation f 1.
-li-
(THIS PAGE LEFT INTENTIONALLY BLANK)
CITY OF LUBBOCK. TEXAS
APPLICATION FOR LOAN ASSISTANCE FROM THE STATE WATER POLLUTION CONTROL
REVOLVING FUND 'SRF"
Prefatory Statement
The City's Wastewater Treatment and Disposal Improvement and Expansion Project is divided into three
separated Projects - A, B and C - as explained in Project Description, below, with a total estimated cost
Of $30,600,000.
These separate projects have differing estimated time schedules for planning, construction bidding and
construction.
As a result each of the separate projects will be funded with a series of Combination Tax and Sewer
System Subordinate Lien Revenue Certificates of Obligation:
Loan
Evidenced By
Estimated
Certificates
SRF
of
Loan
Obligation
Project
Amount
Series
Project A
5 1,655,000
1991
Project B
39,125,000
1992
Project C
91920,000
50,600,000
1993
The following application demonstrates each of these series of Certificates with combined totals used in
debt service schedules, the projection of debt service coverage and other elements to provide essential
information relative to the total Wastewater Project as well as each of the separate projects.
(THIS PAGE LEFT INTENTIONALLY BLANK)
OFFERING MEMORANDUM
Dated February 28, 1991
In the opinion of Bond Counsel, interest on the Certificates will be excludable from gross Income for
federal income tax purposes under existing law, subject to the matters described under "Tax Exemption"
herein, including the alternative minimum tax on corporations.
$ l ,6 3 3,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
COMBINATION TAX AND SEWER SYSTEM SUBORDINATE LIEN
REVENUE CERTIFICATES OF OBLIGATION, SERIES 1991
Dated: September 13, 1991
Due: February 13, as shown below
The City of Lubbock, Texas (the "City") Combination Tax and Sewer System Subordinate Lien Revenue
Certificates of Obligation, Series 1991, (the "Series 1991 Certificates" or the "Certificates") will be
delivered in installments as construction of the City's Wastewater Project A progresses; Interest on each
installment will accrue from delivery to the purchaser and will be payable February 13 and August 13 of
each year, commencing August 13, 1992, and will be calculated on the basis of a 360-day year of twelve
30•day months. The definitive Certificates will be issued only as fully registered certificates in the
denomination of $3,000 or any integral multiple thereof.
These Certificates constitute direct obligations of the City of Lubbock, payable, both as to principal and
interest, from the proceeds of an ad valorem tax levied, within the limitations prescribed by law, upon all
taxable property in the City and are additionally payable from and secured by a lien on and pledge of the
Net Revenues derived from the ownership and operation of the City's Sewer System (the "System"), such
lien and pledge, however, being subordinate to the lien and pledge of the Net Revenues of the System
securing the payment of any Prior Lien Revenue Obligations hereinafter issued that are payable from and
secured by a first lien on and pledge of the Net Revenues as provided in the ordinance authorizing the
Certificates (the "Ordinance") (see "Authority for Issuance", "Security for Certificates" and "Source of
Payment").
The initial Paying Agent/Registrar shall be Ameritrust Texas National Association, Austin, Texas (see
"Paying Agent/Registrar").
Proceeds from the sale of the Certificates will be used to construct a 36" effluent pipeline from the City's
Southeast 'Water Reclamation Plant to the City's Land Application site east of the treatment plant; the
36" line will replace an existing 30" pipeline (Project A).
MATURITY SCHEDULE
Interest
Amount Maturity_ Rate
Interest
Amount Maturity Rate
80,000
1993
3.30%
$ $3,000
2003
3.30%
80,000
1994
3.30%
83,000
2004
3.30%
80,000
1993
3.30%
83,000
2003
3.30%
80,000
1996
3.30%
$3,000
2006
3.30%
80,000
1997
3.30%
83,000
2007
3.30%
g0,000
199E
3.30%
$5,000
200E
3.30%
30,000
1999
3.30%
$3,000
2009
3.30%
30.000
2000
3.30%
83,000
2010
3.30%
30,000
2001
3.30%
S3,000
2011
3.30%
83,000
2002
3.30%
83,000
2012
3.30%
The City reserves the right, at its option, to redeem Certificates having stated maturities on and after
February 13, 2003, in whole or in part , and, if In part, In Inverse annual maturity, in principal amounts of
$3,000 or any integral multiple thereof, on February 13, 2002, or any date thereafter, at the par value
thereof plus accrued interest to the date fixed for redemption (see "Redemption of Certificates").
The Cec ..Iicates are offered for delivery when, as and If Issued and received by the purchaser(s) and
subject to the approving opinion of the Attorney General of the State of Texas and of Fulbright &
3aworski, Bond Counsel, Dallas, Texas.
_2.
(THIS PAGE LEFT INTENTIONALLY BLANK)
OFFERING MEMORANDUM
Dated February 28, 1991
In the opinion of Bond Counsel, interest on the Certificates will be excludable from gross income for
federal income tax purposes under existing law, subject to the matters described under "Tax Exemption"
herein, including the alternative minimum tax on corporations.
$ 39,123,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
COMBINATION TAX AND SEWER SYSTEM SUBORDINATE LIEN
REVENUE CERTIFICATES OF OBLIGATION, SERIES 1992
Dated: April 15, 1992
Due: February 15, as shown below
The City of Lubbock, Texas (the "City") Combination Tax and Waterworks and Sewer System Subordinate
Lien Revenue Certificates of Obligation (the "Series 1992 Certificates" or the "Certificates") will be
delivered in installments as construction of the City's Wastewater Project B progresses; interest on each
Installment will accrue from delivery to the purchaser and will be payable February 13 and August 13 of
each year, commencing February 13, 1993, and will be calculated on the basis of a 360-day year of twelve
30-day months. The definitive Certificates will be issued only as fully registered certificates in the
denomination of $3,000 or any integral multiple thereof.
These Certificates constitute direct obligations of the City of Lubbock, payable, both as to principal and
Interest, from the proceeds of an ad valorem tax levied, within the limitations prescribed by law, upon all
taxable property in the City, and are additionally payable from and secured by a lien on and pledge of the
Net Revenues derived from the ownership and operation of the City's Sewer System (the "System"), such
lien and pledge, however, being subordinate to the lien and pledge of the Net Revenues of the System
securing the payment of any Prior Lien Revenue Obligations hereinafter issued that are payable from and
secured by a first lien on and pledge of the Net Revenues, as provided in the ordinance authorizing the
Certificates (the "Ordinance") (see "Authority for Issuance", "Security for Certificates" and "Source of
Payment").
The Initial Paying Agent/Registrar shall be Ameritrust Texas National Association, Austin, Texas (see
"Paying AgenVRegistrar").
Proceeds from the sale of the Certificates will be used for construction of an administration and
maintenance building, an activated sludge plant, headworks facilities, solids handling facilities; anaerobic
digester rehabilitation and an effluent discharge pipeline to the North Fork Double Mountain Fork Brazos
River with associated dechlorination/reaeration facility (Project B).
MATURITY SCHEDULE
Interest
Amount Maturity Rate •
Interest
Amount Maturity Rate •
$1,933,000
1993
1,933,000
2003
1,933,000
1996
1,933,000
2006
1,933,000
1997
1,933,000
2007
1,935,000
199E
1,933,000
2008
1,933,000
1999
1,933,000
2009
1,933,000
2000
1,960,000
2010
1,935,000
2001
1,960,000
2011
1,933,000
2002
1,960,000
2012
1,933,000
2003
1,960,000
2013
1,933,000
2004
1,960,000
2014
*The Certificates will bear Interest at rates established by the Texas Water Development Board and no
estimate has been made for this page. For purposes of debt service schedules and projections Interest on
the Series 1992 Certificates has been calculated at 6.73%.
The City reserves the right, at Its option, to redeem Certificates having stated maturities on and after
February 13, 2003, in whole or in part , and, if In part, In Inverse annual maturity, In principal amounts of
$3,000 or any Integral multiple thereof, on February 13, 2M. or any date thereafter. at the par value
thereof plus accrued Interest to the date fixed for redemption (see "Redemption of Certificates").
The Certificates are offered for delivery when, as and U Issued and received by the purchaser(:) and
subject to the approving opinion of the Attorney General of the State of Texas and of Fulbright be
3aworskl, Bond Counsel, Dallas, Texas.
-1-
(THIS PAGE LEFT INTENTIONALLY BLANK)
OFFCRING MEMORANDUM
Dated February 28, 1991
In the opinion of Bond Counsel, interest on the Certificates will be excludable from gross income for
federal income tax purposes under existing law, subject to the matters described under "Tax Exemption"
herein, including the alternative minimum tax on corporations.
$9,S 20,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
COMBINATION TAX AND SEWER SYSTEM SUBORDINATE LIEN
REVENUE CERTIFICATES OF OBLIGATION, SERIES 1993
Dated: April 13, 1993
Duet February 13, as shown Wow
The City of Lubbock, Texas (the "City") Combination Tax and Waterworks and Sewer System Subordinate
Lien Revenue Certificates of Obligation, Series 1993 (the "Series 1993 Certificates" or the "Certificates")
will be delivered in installments as construction of the City's Wastewater Project C progresses; Interest
on each installment will accrue from delivery to the purchaser and will be payable February 13 and
August IS of each year, commencing February 13, 1994, and will be calculated on the basis of a 360-day
year of twelve 30-day months. The definitive Certificates will be issued only as fully registered
certificates in the denomination of $3,000 or any Integral multiple thereof.
These Certificates constitute direct obligations of the City of Lubbock, payable, both as to principal and
interest, from the proceeds of an ad valorem tax levied, within the limitations prescribed by law, upon all
taxable property in the City, and are additionally payable from and secured by a lien on and pledge of the
Net Revenues derived from the ownership and operation of the City's Sewer System (the "System"), such
lien and pledge, however, being subordinate to the lien and pledge of the Net Revenues of the System
securing the payment of any Prior Lien Revenue Obligations hereinafter issued that are payable from and
secured by a first lien on and pledge of the Net Revenues, as provided in the ordnance authorizing the
Certificates (the "Ordinance") (see "Authority for Issuance", "Security for Certificates" and "Source of
Payment").
The Initial Paying Agent/Registrar shall be Ameritrust Texas National Association, Austin, Texas (see
"Paying Agent/Registrar").
Proceeds from the sale of the Certificates will be used to renovate and upgrade two existing wastewater
treatment plants and to convert the existing administration building into a laboratory (Project C).
MATURITY SCHEDULE
Interest
Amount Maturity Rate •
Interest
Amount Maturity Rate"
$ 490,000
1996
490,000
2006
490,000
1997
490,000
2007
490,000
199E
490,000
200E
490,000
1999
490,000
2009
490,000
2000
490,000
2010
490,000
2001
490,000
2011
490,000
2002
495,000
2012
490,000
2003
493,000
2013
490,000
2004
493,000
2014
490,000
2003
493,000
2013
IThe Certificates will bear Interest at rates established by the Texas Water Development Board and no
estimate has been made for this page. For purposes of debt service schedules and projections interest on
the Series 1992 Certificates has been calculated at 6.73%.
The City reserves the right, at Its option, to redeem Certificates having stated maturities on and after
February 13, 2006, In whole or In part , and, If in part, in Inverse annual maturity, In principal amounts of
$3,000 or any integral multiple thereof, on February 13, 2003 or any date thereafter, at the r value
thereo' plus accrued interest to the date fixed for redemption isee "Redemption of CertlficatesPr
The Certificates are offered for delivery when, as and If issued and received by the chaser(s) and
subject to the approving opinion of the Attorney General of the State of Texas and of Fulbright do
3aworskl, Bond Counsel, Dallas, Texas.
(THIS PAGE LEFT INTENTIONALLY BLANK)
CITY ADMINISTRATION
Elected Officials
Length Term
City Council
of Service Expires Occupation
McMinn
sari May, 1992 Retired; Investments
Mayor
T. 3. Patterson
7 Years May, 1992 Co -Publisher, SouthWest
Digest
Mayor Pro-Tem
3oan Baker
11 Years May, 1992 Homemaker
Councilwoman
M. 3. Aderton
1 Year May, 1994 Retired
Councilman
Maggle Trejo
7 Years May, 1994 Homemaker
Councilwoman
Bill Malay
3 Years May, 1992 President, Sentry Property Management, Inc.
Councilman
Gary D. Phillips
3 Years May, 1994 Phillips do Associates - Real
Estate Appraisal
Councilman
Appointed Officials
Length of
Length of
Employment
Time In
With City
Name
Position
This Position
of Lubbock
Larry 3. Cunningham*
City Manager
14 Years
24 Years
Bob Cass
Deputy City Manager
6 Years
13 Years
Sohn C. Ross, 3r.
City Attorney
12 Years
12 Years
Ranette Boyd
Secretary -Treasurer
7 Years
17 Years
J. Robert Massengale
Assistant City Manager for Financial Services
3 Years
11 Years
Rita P. Harmon
Assistant City Manager for Public Safety
3 Years
13 Years
and Services
3ames E. Bertram
Assistant City Manager for Development Services
3 Years
21 Years
Carroll McDonald
Assistant City Manager for Utilities
2 Years
12 Years
Dan A. Hawkins
Director of Water Utilities
2 Years
3 Years
•Authorized Representative ------------ Mr. Larry 3. Cunningham
City Manager
City of Lubbock
P. O. Box 2000
Lubbock, Texas 79437
tel. (306) 747.2000
Consultants and Advisors
Consulting Engineers for Wastewater Project ---------------------------- William E. Carroll, P.C.
Black & Veatch
372E L63 Fteevay, Suite 300
Dallas, Texas 73240
(214) 270-IM
Auditors ------------------------------------------ --------------------- 3ohn Burdette, C.P.A.
Coopers do Lybrand
Certified Public Accountants
First National bank Building, I3th Floor
Lubbock, Texas 79401
(806) 744-3333
Bond Counsel ------------------------------------- ----------------------- Mark S. Westergard
Futbrlght do 3aworskl
2200 Ross Avenue, Suite 2800
Dallas, Texas 73201
(214) 88"002
Financial Advisor ----------------------------- ------- -------------------------- Toe W.Smith
Senior Vice President
First Southwest Company
P. O. Box VJ4
Abilene, Texas 79604-VS4
(9IS) 672-8432
-3-
No Text
SELECTED DATA FROM THE OFFICIAL STATEMENT
The selected data on this page is subject In all respects to the more complete information and definitions
contained or incorporated in this Offering Memorandum. This data page was prepared to present the
purchasers of the Certificates information concerning the Certificates, the revenues pledged to payment
of the Certificates, the description of the revenue base and other pertinent data, all as more fully
described herein.
The Issuer-------------- The City of Lubbock, Texas is a political subdivision located in Lubbock
County operating as a home -rule city under the laws of the State of Texas and
a charter approved by the voters in December 27, 1917 and amended from
time to time. The Charter provides for the Council -Manager form of
government for the City. The Mayor 1s elected at -large for two year terms
ending in even years. Each of the six members of the City Council resides in a
separate single -member district and is elected by the qualified voters of that
district for a four year term. The terms of three members of the City Council
expire each even year. The Council formulates operating policy for the City
while the City Manager is the chief administrative officer.
Lubbock is the County Seat of Lubbock County, Texas, and is located on the
South Plains of West Texas approximately 320 miles west of Dallas. The City's
1990 U.S. Census population is 196,206 (1980 U.S. Census - 177,517). The City
is approximately 104 square miles in area. Texas Tech University, a major
State institution, is located In Lubbock.
The Certificates -------- The three series of Certificates:
Estimated
Principal
Series Amount
1991 1,655,000
1992 39,125,000
1993 9,820,000
totaling $50,600,000, will be issued pursuant to the general laws of the State
of Texas, particularly Subchapter C of Chapter 271, Texas Local Government
Code (the Certificate of Obligation Act of 1971), as amended, and Ordinances
passed by the City Council of the City (see "Authority for Issuance"), as
evidence of SRF loans requested in this Application.
Security for the
Certificates ---------- The Certificates of each series will consitute direct obligations of the City of
Lubbock, payable, both as to principal and interest, from the proceeds of an ad
valorem tax levied, within the limitations prescribed by law, upon all taxable
property in the City and are additionally payable from and secured by a lien on
and pledge of the Net Revenues derived from the ownership and operation of
the City's Sewer System (the "System"), such lien and pledge, however, being
subordinate to the lien and pledge of the Net Revenues of the System securing
the payment of any Prior Lien Revenue Obligations hereinafter issued that are
payable from and secured by a first lien on and pledge of the Net Revenues as
provided in the Ordinance (the "Ordinance") authorizing the Certificates ?the
"Certificates") (see "Authority for issuance").
Optional Redemption ---- The City reserves the right, at its option, to redeem Certificates of each
Series in whole or In part, and, if in part, in inverse annual maturity, in
principal amounts of $5,000 or any Integral multiple thereof at the par value
thereof plus accrued interest to the date fixed for redemption as follows:
First Redemption
Certificate
Maturities
Date Or Any
Series
On and After
Date Thereafter
1991
February 13,2003
February 15, 2002
1992
February 15,2005
February 15, 2004
1993
February 13,2006
February 15, 2005
Tax Exemption---------- In the opinion of Bond Counsel, the interest on each Series of Certificates will
be excludable from gross income for purposes of federal income taxation under
existing law, subject to the matters described under "Tax Exemption" herein,
including the alternative minimum tax on corporations.
-6-
Use of Certificate
Proceeds ------------- The Certificate proceeds will be used for a major wastewater treatment and
disposal improvement and expansion project extending from 1991 through
1995-1996. The proceeds of each issue of Certificates are planned to be used
for;
1,655,000_Series 1991 Ceritifcates (Project A)
Proceeds from the sale of the Certificates will be used to construct a 36"
effluent pipeline from the City's Southeast Water Reclamation Plant to the
City's Land Application site east of the treatment plant; the 36" line will
replace an existing 30" pipeline.
$39,125,000 Series 1992 Certificates (Project B)
Proceeds from the sale of the Certificates will be used for construction of an
administration and maintenance building, an activated sludge plant, headworks
facilities, solids handling facilities; anaerobic digester rehabilitation and an
effluent discharge pipeline to the North Fork Double Mountain Fork Brazos
River with associated dechlorination/reaeration facility.
$9,820,000 Series 1993 Certificates (Project C)
Proceeds from the sale of the Certificates will be used to renovate and
upgrade two existing wastewater treatment plants and to convert the existing
administration building into a laboratory.
Payment Record -------- The City has never defaulted.
Selected Issuer Indices
Ratio
General
Per Capita
Purpose
General
General
Funded
Fiscal
Per Capita
Purpose
Purpose
Debt to
Year Estimated Taxable
Taxable
Funded
Funded
Taxable
% of
Ended City Assessed
Assessed
Tax
Tax
Assessed
Total Tax
9/30 Population Valuation
Valuation
Debt (1)
Debt
Valuation
Collections
1987 198,694 2)54,408,325,399
23,362
37,540,011
199
0.85%
98.84%
1988 190,017(2) 4,476,572,268
23,558
39,670,291
209
0.89%
98.94%
1989 191,403(2) 4,567,387,737
23,863
43,066,998
225
0.94%
98.98%
1990 186,206(3) 4,645,914,710
24,950
39,179,106
210
0.84%
99.10%
1991 186,206(3) 4,725,708,214
25,379
42,474,916(4) 228
0.90%
95.4896(5)
1 Excludes self-supporting general
obligation debt (see "Valuations, Exemptions and Debt
Obligations";
"Valuation and Funded Debt History"
and "Computation of Self -Supporting Debt").
(2) Source: Estimates by City of Lubbock,
Texas.
(3) 1990 U.S. Census.
(4) Anticipated.
(5) Collections for part year only, through
2-28-91.
-7-
CERTIFICATE INFORMATION
Authority for Issuance
The Certificates of each Series will be issued pursuant to the Constitution and general laws of the State
of Texas, particularly Subchapter C of Chapter 271, Texas Local Government Code (the Certificate of
Obligation Act of 1971), as amended and an Ordinance to be passed by the City Council.
Security for Certificates and Source of Payment
The Certificates of each Series are of equal rank and dignity and on a parity in all respects, are direct
obligations of the City payable from the proceeds of an ad valorem tax levied, within the limitations
prescribed by the Constitution of the State of Texas (the "Constitution"), upon all taxable property in the
City and are additionally payable from and secured by a lien on and pledge of the Net Revenues (as
defined in the Ordinances) of the City's Sewer System (the "System"), such pledge of and lien on Net
Revenues being subordinate to the lien on and pledge of the Net Revenues securing the payment of Prior
Lien Revenue Obligations (as defined in the Ordinances) and such pledge will be on a parity with the lien
and pledge with respect to Similarly Secured Obliggations including the City's outstanding Combination Tax
and Sewer System Subordinate Lien Revenue (1) Refunding Bonds, Series 1988, and (2) Certificates of
Obligation, Series 1988.
The City operates under a home -rule charter as authorized by Article XI, Section 3 of the Constitution;
the charter adopts the Constitutional maximum tax rate of $2.30 per $100 of Assessed Valuation for all
City purposes.
As defined in the Ordinances:
"System" shall mean the City's sanitary sewer system, being all sanitary sewage collection system, ground
storage facilities, effluent disposal and treatment facilities and/or other works and equipment.
"Net Revenues" shall mean, with respect to any period, all income, revenues and receipts received from
the ownership and operations of the System less Maintenance and Operation Expenses of the System
during such period.
"Maintenance and Operation Expenses" shall mean all reasonable and necessary costs and expenses
directly related and attributable to the operation and maintenance of the System including, but not
limited to, the cost of insurance, the purchase and carrying of stores, materials, and supplied, the
payment of salaries, labor and other expenses reasonably and properly charged, under generally accepted
accounting principles, to the operation and maintenance of the System. Depreciation charges on
equipment, machinery, buildings and other facilities and expenditures classified under generally accepted
accounting principles as capital expenditures shall not be considered as "Maintenance and Operation
Expenses" for purposes of determining "Net Revenues".
"Prior Lien Revenue Obligations" shall mean all bonds or other obligations hereafter issued by the City of
Lubbock which, by the ordinance authorizing the issuance thereof, are payable from and secured by a first
lien on and pledge of the Net Revenues.
In the Ordinances the City will reserve the right to hereafter issue Prior Lien Revenue Obligations, and
also expressly reserves the right to hereafter issue Additional Obligations payable from and secured by a
lien on and pledge of the Net Revenues of equal rank and dignity, and on a parity in all respects, with the
lien thereon and pledge thereof securing the payment of the Certificates.
Redemption of Certificates
The Series 1991 Certificates
The City reserves the right, at its option, to redeem Certificates having stated maturities on and after
February 13, 2003, In whole or in part, and, it in part, In Inverse annual maturity, in principal amounts of
$3,000 or any Integral multiple thereof, on February 13, 2002, or any date threafter, at the par value
thereof plus accrued interest to the date fixed for redemption.
The Series 1992 Certificates
The City reserves the right, at its option, to redeem Certificates having stated maturities on and after
February 13, 2003, in whole or in part, and, if in part, In inverse annual maturity, in principal amounts of
$3,000 or any integral multiple thereof, on February 13, 2004, or any date threafter, at the par value
thereof plus accrued interest to the date fixed for redemption.
-9-
The Series 1993 Certificates
The City reserves the right, at its option, to redeem Certificates having stated maturities on and after
February 13, 2006, in whole or in part, and, if in part, in inverse annual maturity, in principal amounts of
$3,000 or any integral multiple thereof, on February 13, 2003, or any date threafter, at the par value
thereof plus accrued interest to the date fixed for redemption (see "Redemption of Certificates").
Not less than 30 days prior to a redemption date for the Certificates, the City shall cause a notice of
redemption to be sent by United States mail, first class, postage prepaid, to each registered owner of a
Certificate to be redeemed, in whole or in part, at the address of the registered owner appearing on the
registration "books of the Paying Agent/Registrar at the close of business on the business day next
preceding the date of mailing such notice. Any notice of redemption so mailed shall be conclusively
presumed to have been duly given irrespective of whether received by the certificateholder.
Paying Agent/Registrar
The Initial Paying Agent/Registrar for each Series of Certificates is Ameritrust Texas National
Association, Austin, Texas. In the Ordinance the City retains the right to replace the Paying
Agent/Registrar. The City covenants to maintain and provide a' Paying Agent/Registrar at all times while
the Certificates are outstanding and any successor Paying Agent/Registrar shall be a commercial bank or
trust company organized under the laws of the State of Texas or other entity duly qualified and legally
authorized to serve as and perform the duties and services of Paying Agent/Registrar for the Certificates.
Upon any change In the Paying Agent/Registrar for the Certificates, the City agrees to promptly cause a
written notice thereof to be sent to each registered owner of the Certificates by United States mail, first
class, postage prepaid, which notice shall also give the address of the new Paying Agent/Registrar.
Principal of the Certificates will be payable to the registered owner at maturity or prior redemption upon
presentation at the principal office of the Paying Agent/Registrar. Interest on the Certificates will be
payable by check, dated as of the interest payment date, and mailed by the Paying Agent/Registrar to
registered owners as shown on the records of the Paying Agent/Registrar on the Record Date (see "Record
Date for Interest Payment" herein), or by such other method, acceptable to the Paying Agent/Registrar,
requested by, and at the risk and expense of, the registered owner. If the date for the payment of the
principal of or interest on the Certificates shall be a Saturday, Sunday, legal holiday, or day on which
banking institutions in the city where the Paying Agent/Registrar is located are authorized by law or
executive order to close, then the date for such payment shall be the next succeeding day which is not
such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to close; and
payment on such date shall have the same force and effect as if made on the original date payment was
due.
Transfer. Exchange and Registration
The Certificates may be transferred and exchanged on the registration books of the Paying
Agent/Registrar only upon presentation and surrender thereof to the Paying Agent/Registrar and such
transfer or exchange shall be without expense or service charge to the registered owner, except for any
tax or other governmental charges required to be paid with respect to 'such registration, exchange and
transfer. A Certificate may be assigned by the execution of an assignment form on the Certificate or by
other instrument of transfer and assignment acceptable to the Paying Agent/Registrar. A new
Certificate or Certificates will be delivered by the Paying Agent/Registrar, in lieu of the Certificate
being transferred or exchanged, at the principal office of the Paying Agent/Registrar, or sent by United
States mail, first class, postage prepaid, to the new registered owner or his designee. To the extent
possible, new Certificates issued in an exchange or transfer of Certificates will be delivered to the
registered owner or assignee of the registered owner in not more than three business days after the
receipt of the Certificates to be cancelled, and the written instrument of transfer or request for exchange
duly executed by the registered owner or his duly authorized agent, in form satisfactory to the Paying
Agent/Registrar. New Certificates registered and delivered in an exchange or transfer shall be in any
integral multiple of $3,000 for any one maturity and for a like aggregate principal amount as the
Certificate or Certificates surrendered for exchange or transfer.
Limitation on Transfer of Certificates Called for Redemption
Neither the City nor the Paying Agent/Registrar shall be required to transfer or exchange to an assignee
of the owner of the Certificates any Certificate called for redemption, in whole or in part, within 43 days
of the date fixed for redemption; provided, however, such limitation of transfer shall not be applicable to
an exchange by the registered owner of the uncalled balance of a Certificate.
-9-
Record Date for Interest Payment
The record date ("Record Date'+) for the'interesi payable on any interest payment date means the close of
business on the last business day of the preceding month.
In the event of a non-payment of interest on a scheduled payment date, and for 30 days thereafter, a new
record date for such interest payment (a "Special Record Date") will be established by the Paying
Agent/Registrar, if and when funds for the payment of such interest have been received from the City.
Notice of the Special Record Date and of the scheduled payment date of the past due interest C'Special
Payment Date", which shall be IS days after the Special Record Date) shall be sent at least five business
days prior to the Special Record Date by United States mail, first class postage prepaid, to the address of
each Holder of a Certificate appearing on the registration books of the Paying Agent/Registrar at the
close of business on the last business day next preceding the date of mailing of such notice.
Use of Certificate Proceeds
The Series 1991 Certificates
Proceeds from the sale of the Certificates will be used to construct a 36" effluent pipeline from the City's
Southeast Water Reclamation Plant to the City's Land Application site east of the treatment plant; the
36" line will replace an existing 30" pipeline (Project A).
The Series 1992 Certificates
Proceeds from the sale of the Certificates will be used for construction of an administration and
maintenance building, an activated sludge plant, headworks facilities, solids handling facilities; anaerobic
digester rehabilitation and an effluent discharge pipeline to the North Fork Double Mountain Fork Brazos
River with associated dechlorination/reaeration facility (Project B).
The Series 1993 Certificates
Proceeds from the sale of the Certificates will be used to renovate and upgrade two existing wastewater
treatment plants and to convert the existing administration building into a laboratory (Project C).
See "Project Description" and "SRF 37, SRF Estimated Project Cost" for Project A, Project B, Project C,
and the Combined Wastewater Project, below.
-10-
PROJECT DESCRIPTION
Sources: City of Lubbock, Texas, Engineering Plan for Wastewater Treatment and Disposal Facilities;
Black do Veatch, Dallas, Texas.
City of Lubbock, Texas, Environmental Information Document for Wastewater Treatment and
Disposal Facilities; Black do Veatch, Dallas, Texas in association with Alan Plummer &
Associates, Inc., Austin, Texas.
Infiltration/Inflow Analysis
Location
The City of Lubbock is located on the South Plains of West Texas, In Lubbock County, Texas,
approximately 320 miles west of Dallas. The facilities planning area coincides with the City limits as
indicated on Figure 4-1 of the Engineering Plan, below. The City of Lubbocies 1990 U.S. Census
population was 196,206.
Statement of Project Need
The City of Lubbock operates a municipal wastewater treatment facility under State Permit No.
10353-02. The permit allows for the use of treated effluent for irrigation of non-food crops and its sale
to a local power utility, Southwestern Public Service C'SPS"), for power plant cooling water. No discharge
of treated effluent is currently allowed to the waters of the State of Texas. For several years, the City's
wastewater treatment plant has been unable to consistently satisfy the treatment requirements set forth
In the State permit. This is primarily due to the age and condition of the treatment facilities and heavy
industrial loadings entering the treatment plant. The City recently adopted a formal industrial
pretreatment program with enforcement capabilities to address influent loadings.
A. Existing Wastewater Treatment and Disposal Facilities
The City's wastewater treatment facility has been in operation since the 1940's. Since then, the plant has
been expanded and upgraded in several stages. The treatment facility consists of three distinct treatment
trains (Plants One, Two and Three) as indicated on Figure 4-5 of the Engineering plan, below. Plants One
and Two are trickling filter plants. Plant Three is an activated sludge plant.
Combined effluent from the three treatment trains is discharged to two land application sites for
irrigation purposes; the City of Lubbock Land Application site and a privately owned site approximately
15 miles southeast from the City of Lubbock. A portion of treated effluent from the activated sludge
plant is discharged to electric utility, SPS, for power plant cooling water. A general description of the
existing treatment plant and irrigation sites is provided below.
1. Collection System. The City of Lubbock's collection system consists of 750 miles of main sewer
lines with sizes ranging from 6 to 42 inches.
2. Treatment Plant. The total plant is currently permitted to treat a maximum 30-day flow of 25
million gal ons per day C'mgd').
a. Plant One. Constructed in the 1940's, the plant is rated at 5 mgd. The plant consists of a
headworks structure with screens and a vortex type grit removal basin, five rectangular
primary clarifiers, four trickling filters, and six rectangular secondary clarifiers.
b. Plant Two. Constructed in 1962, the plant is rated at 7 mgd but is reported to have an organic
loading limitation of 4.8 mgd. The plant consists of a headworks structure with screens and a
vortex type grit removal basin, two circular primary clarifiers, two trickling filters, and two
circular secondary clarifiers.
C. Plant Three. Constructed in 1970, the plant is rated at 11.5 mgd and is reported to have a
limiting hydraulic capacity of 11.5 mgd. The plant consists of a headworks structure with
screens and a vortex type grit removal basin, two circular primary clarifiers, three rectangular
aeration basins, two circular secondary clarifiers, and a chlorine contact basin.
-11-
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PLANNING AREA
LUBDOCK,TEXAS
FIGURE A-1
C
LEGEND
� FLANT 1
— PLANT a
r FLANT a
� SOLIDS HANDLING
�CGMMGH FACILITY
L
A ABANDONED
AB AERATION BASINS
AO ANAEROBIC DIGESTERS
BB BLOWER BUILDING
CB CONTROL BUILDING
\gyp
CCB CHLORINE CONTACT BASIN
EFS EFFLUENT PUMP STATION
OR GRIT 019MOVAL
1
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SC SECONDARY CLARIFIER
SDB SLUDGE DRYING BEDS
C
TF TRICKLING FILTER
^\
CIA
EXISTING SITE LAYOUT
SOUTHEAST WATER RECLAMATION PLANT
LUBBOCK,TEXAS
FIGURE 4-5
d. Sludge Facilities. Nine anaerobic digesters have been constructed over the past SO years.
Currently, only two digesters are operable. They were constructed in 1990. Sludge is digested
then dried on rectangular drying beds. Dried sludge is then hauled for final disposal to the
municipal landfill.
e. Personnel, Laboratory, and Maintenance Facilities. These facilities are combined in a single
one-story facility. Essentially, no space has been allotted for either maintenance or storage
purposes.
3. Land Application Sites. The City of Lubbock owns approximately 6,000 acres of agricultural land
east of the City the "Lubbock Land Application Site"). Approximately 4,800 acres are under
cultivation, with 3,033 acres irrigated by center pivot Irrigation units. The cropping system,
developed by private consultants to ensure total water utilization and maximize nitrate uptake,
consists mainly of double cropping with corn and wheat and alfalfa. Currently, a 1,260 acre-feet
storage reservoir and additional Irrigation pumping are being constructed at the site.
The privately owned site ("Hancock Site"), consists of approximately 4,000 acres with approximately
2,390 acres irrigated by center pivot irrigation units. Most of the land is used to grow cotton, but
several pivots of alfalfa are planted and rotated.
A detailed evaluation of the existing facilities is discussed in the Engineering Plan. A detailed evaluation
of infiltration/inflow Is discussed In the Infiltration/Inflow Analysis. The analysis Indicates that
infiltration/inflow to the system is non -excessive. Due to the age and extreme deterioration of Plant
One, the plan recommends that it be abandoned and be replaced with a new treatment plant. In addition,
the report recommends: substantial upgrade for Plants Two and Three; construction of a new
Administration and Maintenance Building; and conversion of the existing Administration Building to a
laboratory. The existing plant improvements and addition of a new treatment train are needed to
consistently satisfy the State permit requirements for effluent BOD5.
B. Wastewater Treatment Plant Improvements
A detailed evaluation of treatment plant improvement alternatives is presented in the Engineering Plan.
Each of the alternatives evaluated would enable the City to comply with permit requirements and provide
treatment capacity to the design year of 2010.
Seven treatment and disposal alternatives were evaluated in the Engineering Plan. Each alternative
provided for abandoning Plant One, upgrading the treatment components for Plants Two and Three, and
constructing a new plant for additional treatment capacity. The alternatives covered a broad range of
treatment and disposal methods, including: total land application, combination of land application and
stream discharge, total stream discharge, total reuse, and combination of land application and reuse. The
combination land application and reuse alternative was selected.
Plant improvements consist of construction of unified headworks and solids processing facilities; upgrade
of anaerobic digesters; replacement of process equipment in clarifiers, trickling filters, and sludge
pumping for Plant Two; and replacement of aeration equipment and process equipment in clarifiers for
Plant Three. The new 9 mgd treatment plant addition will be equipped with an intermediate lift station,
primary clarifiers, aeration basins, blowers, secondary clarifiers, chlorine contact, effluent filters, and
effluent pumping. A discharge pipeline will also be constructed to the North Fork Double Mountain Fork
Brazos River ("NFDMF Brazos River") for the City's contingency discharge plan if the water cannot be
stored and reused due to prolonged inclement weather conditions. A dechlorination and reaeration facility
will be constructed at the pipeline discharge point. Improvements to the effluent pipeline facilities to the
Lubbock Land Application Site nclude replacement of an existing 30 inch pipeline with a new 36 inch
pipeline.
Plants Two and Three will parlmarily discharge to the Lubbock Land Application Site. The new plant will
primarily discharge to the privately owned Hancock Site, SPS for power plant cooling water, and reuse
customers as they are developed. Discharge of effluent to the NFDMF Brazos River will only be needed
when and to the extent the users cannot accept the effluent.
C. Basis for Selection
The combination land application and reuse alternative was selected over the other alternatives based on
several factors. These factors Included total cost, public acceptance, environmental concerns, beneficial
use, and permit requirements. The recommended alternative will provide the City with the flexibility to
develop additional reuse options in the future. This would include reuse of effluent for industries, golf
courses, parks, municipal green belt areas, or irrigation of private farms (by formal lease agreement).
-12-
D. Conclusion
The City of Lubbock proposes to finance the construction of the wastewater treatment and disposal
improvements and expansion described above through the SRF loan program.
E. Estimated Cost of the Project
The project will be subdivided into three subprojects for financing purposes:
+ Project A will consist of constructing the 36 inch effluent pipeline to the Lubbock Land
Application Site as shown on Figure AD2-1, below—,
+ Project B will consist of constructing the Administration and Maintenance building, new
activated sludge plant, headworks facilities, solids handling facilities, anaerobic digester
rehabilitation, and effluent discharge pipeline to the NFDMF Brazos River, with associated
dechlorination/reaeration facility.
+ Project C will consist of renovating and upgradingexisting Plants Two and Three and the
conversion of the existing Administration Building to a laboratory.
The plant facilities for Project B and Project C are shown on Figure 8-3 of the Engineering Plan, below.
Following is a separate Form SRF-37, SRF Estimated Project Cost for Project A, Project B and Project C
and a Form SRF-37 demonstrating the estimated combined cost of the Wastewater Project.
-13-
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PROPOSED ROUTE OF
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ROUTE OF 36-INCH
EFFLUENT PIPELINE
F AO ROAD
`;� �'+ ►l LUBBOCK, TEXAS
FIGURE AD 2-1
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NEW PLANT
PLANT E
PLANT 7
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COMMON FACILITY
AS - AERATION BASIN
ANAEROBIC DIGESTER
COB CHLORINE STONA0E BUILDING
BPS EFFLUENT PUMP STATION
FS FLOW SFLITTER STRUCTURE
►C PRIMARY CLARIFIER
1111 eNf PPS PRIMARY SLUDGE PUMP STATION
T
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BDB SLUDGE DRYING BEDS
2.8 SHE SLUDGE HOLDING BASIN
BPS SECONDARY SLUDGE PUMP STATION
TIN TRICKLING FILTER
-- DEMOTE! FUTURE EXPANSION
GENERAL LAYOUT
RECOMMENDED PROJECT
LUBBOCK. TEXAS
FIGURE 8-3
A. Construction Cost:
sax Effluent Pipeline
1/1
Major Sewer Rehabilitation
interceptors
Collection System
Allowance For Inflation
TOTAL CCKSTKKTIOM COST
E. Engineering:
ur !
SRF ESTIMtM PMACT 000
FOR PROJECT "A"
>< 633.000
- 64�00Q
67,000
764,000
Planning Phase (EID. EP, I/I. WCP) 700,000
Design Phase 82.000
Construction Phase
Basic 32,000
ConstMAC tIon layout
inspect ion 40.000
Testing
0 t N xanual
User Charge 20,000
Total Engineering s< 874,000
C. Finarxlal
0. legal
E. Right-of-way (Mot SRF Eligible)
• F. lard (Mot SRF Eligible)
i. Other (Est. Cost Of Issuance)
" TOTAL ES11MATE0 PROJECT COST
10,000
5,000
2,000
$ 1,655,000
This est foute, prepared by Black & Veatch Engineers on 1 /22/91
(mire of Firm) (data)
was made using the most current infatuation available, and in our opinion represents the closest estimate to the ac a nl
corstruction costs. this estiestt was s+ade with the expectation that constmxtion bids would be taken by
August, 1991 and should be updated If bidding is delayed beyond that date.
CE*IIFiED By: Larry J. Cunningham ,
Authorized ese tative o ty of.Lu bock
(loan UV)
(nett
(City seal)
Wil�li)am E. Carroll, P.E., Black b Veatch
(Consulting Engineer)
9 961V
(Date)
(seal) '� "�•�
• land that will be an integral part of the tresteent process Is eligible.
AE.G
38888
at total Project Cost should be rovded W to the nearest JS.00O Increment.
(THIS PAGE LEFT INTENTIONALLY BLANK)
SRr ESTIMAI-13D MOXC1 CWT
FOR PROJECT "B"
A. Cautructfon cost:
SIP
f 28.876, 000
t/l
'
Major Sewer Rehabilitation
'
interceptors
—
Collection System
'
Contingency
2 $39.440
Allowance For Inflation
3,
TOTAL COWST"T ION COST
= 34.817 , 000
�. Engir+certnp:
►laming Phase
'
oestgn Phase
�2,419,000
Construction Phase
1asfc
1,428,000
Construction layout
Inspect ton
240,000
Testing
-
O a N Manual
128 000
Project Certification
,
Total Engineering
S. 4,248,000
C. rinanctat
32,000
o. tevat
24,115
E. Right•of•Yay (Not SRf Eligible) '
• F. lard (Not SRr Eli'ibte) '
C. Other (Est. Cost of Issuance) 3,885
•• TOTAL ESTIMATED PROJECT COST s 39,125.000
this estimate, prepared by , Black a Veatch Engineers on 1/22/91
(rwm of fire) (date)
was made using the swat current inforatiation available, and In our opinion represents the closest estimate to the actlrl
construction Costs. this estimate was made with the expectation that construction bids would be taken t•y
March. 1992 and should be updated if bidding is delayed berord that date.
-CERTIFIED 9 Larry J. Cunningham.
Authorizedp seative of City. of Lubbock
l�(loan i ant)
(Date)
(City Seal)
sai-3)
(Da-11-90
William E. Carroll. P.E., Black & Veatch
(Consulting Engineer)
.5ylZoA-Z
(Date)
e land that Vitt be an integral pert of the treataent process la atigibIC
OF
(Seal)
WILLIA1i E. CA?ROLL
�04
e1 Total Orojtct Cost should to rounded %P to the nearest 11,M increft, -
(THIS PAGE LEFT INTENTIONALLY BLANK)
A. Construction cost:
sit
lil
ttajor Sewer Rehabilitation
Interceptors
coltectlon System
cent Irgen~,r
Allowance For Inflation
TOTAL CCtisbil XT TOM cost
8. Engireertng:
►tanning phase
Design Phase
Construction Phase
Basic
Construction Layout
inspection
Testing
O t x Manua t
Project Certification
Total Engineering
C. Firwxiel
D. Legal
E. Right•or•w y (Mot SRF Eligible)
• F. Lard (Mot SRF Eligible)
c. other (Est. Cost of Issuance)
" TOTAL ESTIIWTED PROJECT COST
SRF ESTINATEM PROJECT O T
FOR PROJECT "C"
6,874.000
695.000
738,815
t 8.307,815
896,000
340,000
220,000
23,000
17,000
1,496,000
8,000
6,185
2,000
t 9,820.000
This estimate. prepared by Black d Veatch Engineers on 1/22/91
(rwm of f ins) (date)
was node using the cost current inforsation available, and in our opinion represents the closest estimate to at sc a yt
construction costs. This estimate Pas radt with the expectation that construction bids would be taken t•r
__ Marsh. 1993 " should be updated if bidding is delayed beyond that dote.
T(F ED ,r• Larry J. Cunningham,
Authorized rRThV3tive Pf City of Lubbock
s—)
(loan i ant)
(Date)
(City Seal)
Sal•))
M-it.90
William E. Carroll. P.E.. Black & Veatch
(Consultirq Engineer)
3 /zb/si
(Date)
• land that rill be an integral pert of the treatartnt process is eligible.
as total Project Cost should be rounded to to the nearest JIM Increment.
(seat)
No Text
S7if ESr (1s M PfaMCt OM
(Combined - All Projects)
A. Construxtion Cost:
srP
ttajor Sewer tehabilitatlon
interceptor•
Collection System
Cant irg"vy
Allowance for Inflation
TOTAL CONST"11101d COST
S. Engineering:
User Charge
Planning Phase
Design Phase
Construction Phase
Basic
Construction tayout
inspection
Testing
o t K Marxat
Project Certification
Total Engineering
C. Financial
D. legal
E. tight•cf•Vay (Mot Stf Eligible)
• F. lend (Not Sti Eligible)
G. other (Est. Cost of Issuance)
" TOTAL ESTr1(ATED PROJECT COST
36,385.000
3,5980000
3,905,815
43.888,815
20,000
700,000
3,397,000
1,800,000
500,000
151,000
50,000
s 6,618.000
50,000
35.300
7,885
s 50,600.000
This estivate, prepared by Black d Veatch Engineers on 1/22/91
(rw a of firs) (date)
was made using the nast current information available, and in our opinion represents the closest estimate to tee act,vl
construction costs. This esthete was vade with the expectation that construction bids would be taker t-V
aE at at and should be updated if bidding is delayed beyond that date.
ttlrim my. Larry J. Cunningham
Authorized s t o Clty of ubbock
(loan t)
Ili l
(Date)
(City Seal)
ul.3;
(Dc-11 a
William E. Carroll, P.E., Black & Veatch
00
/(Consulting Engineer)
&I
(Date)
a lard that mill be an Integral part of the trcatnent process It eligible.
" Total Project Cost should be rounded tp to the nearest fSM incratent.
(seat )
No Text
TAX INFORMATION
Ad Valorem Tax Law
The appraisal of property within the City is the responsibility of the Lubbock Central Appraisal District.
Excluding agricultural and open -space land, which may be taxed on the basis of productive capacity, the
Appraisal District is required under the Property Tax Code to appraise all property within the Appraisal
District on the basis of 100% of its market value and is prohibited from applying any assessment ratios.
The value placed upon property within the Appraisal District is subject to review by an Appraisal Review
Board, consisting of three members appointed by the Board of Directors of the Appraisal District. The
Appraisal District is required to review the value of property within the Appraisal District at least every
four years. The City may require annual review at its own expense, and is entitled to challenge the
determination of appraised value of property within the City by petition filed with the Appraisal Review
Board.
Reference is made to the VTCA, Property Tax Code, for identification of property subject to taxation;
property exempt or which may be exempted from taxation, if claimed; the appraisal of property for ad
valorem taxation purposes; and the procedures and limitations applicable to the levy and collection of ad
valorem taxes.
Article Vlll of the State Constitution ("Article Vlll") and State law provide for certain exemptions from
property taxes, the valuation of agricultural and open -space lands at productivity value, and the
exemption of certain personal property from ad valorem taxation.
Under Section 1-b, Article VIII,-and State law, the governing body of a political subdivision, at its option,
may grant:
(1) An exemption of not less than $3,000 of the market value of the residence homestead of persons
63 years of age or older and the disabled from all ad valorem taxes thereafter levied by the political
subdivision;
(2) An exemption of up to 20% of the market value of residence homesteads; minimum exemption
$3,000.
State law and Section 2,'Article ViIl, mandate an additional property tax exemption for disabled veterans
or the surviving spouse or children of a deceased veteran who died while on active duty In the armed
forces; the exemption applies to either real or personal property with the amount of assessed valuation
exempted ranging from $1,300 to a maximum of $3,000.
Article Vlll provides that eligible owners of both agricultural land (Section 1-d) and open -space land
(Section 1-d-1), including open -space land devoted to farm or ranch purposes or open -space land devoted
to timber production, may elect to have such property appraised for property taxation on the basis of its
productive capacity. The same land may not be qualified under both Section 1-d and 1-d-1.
Nonbusiness vehicles, such as automobiles or light trucks, are exempt from ad valorem taxation unless the
governing body of a political subdivision elects to tax this property. Boats owned as nonbusiness property
are exempt from ad valorem taxation.
Article Vlll, Section 1-j of the Texas Constitution, provides for "freeport property" to be exempted from
ad valorem taxation. Freeport property is defined as goods detained in Texas for 179 days or less for the
purpose of assembly, storage, manufacturing, processing or fabrication. The exemption became effective
for the 1990-91 fiscal year and thereafter unless action to tax such property has been taken prior to
April 1, 1990. Decisions to continue to tax may be reversed in the future; decisions to exempt freeport
property are not subject to reversal. The City has taken action to tax Freeport property.
The City grants an exemption to the market value of the residence homestead of persons 63 years of age
or older of $16,700; the disabled are granted an exemption of $10,000.
The City has not granted an additional exemption of 20% of the market value of residence homesteads;
minimum exemption of $5,000.
The City does not tax nonbusiness vehicles; and the Lubbock Central Appraisal District collects taxes for
the City of Lubbock.
-lK-
Valuation, Exemptions and Debt Obligations
Market Valuation Established by Lubbock Central
Appraisal District ("LCAD")
Less Exemptions/Reductions at Market Value:
Residence Homestead (Over 63 or Disabled)
Disabled Veterans Exemptions
Open -Space Land Use
Value lost because property is exempted from taxation under
the Property Redevelopment and Tax Abatement Act
Value of property in a Reinvestment Zone created under the
Tax Increment Financing Act(!)
Taxable Assessed Valuation
City Funded Debt Payable From Ad Valorem Taxes M
General Obligation Debt
The Series 1991 Certificates (SRF Loan)
The Series 1992 Certificates(SRF Loan)
The Series 1993 Certificates (SRF Loan)
Funded Debt Payable From Ad Valorem Taxes
$4,931,021,795
161,403,326
3,322,281
34,569,789
5,034,673
991,312 205,313,591
$4,723,708,214
Anticipated Anticipated
As Of As Of As Of
2-13-1991 4-0-1992 4-13-1993
95,783,752 88,763,732 $119,703,732
1,655,000
39,125,000
9,820,000
$ 97.439,732 $127,999,732 $129,323,752
Less: Self -Supporting Debt M
Waterworks System General Obligation Debt
37,613,432
$ 34,321,094
$ 31,243,476
Sewer System General Obligation Debt (4)
15,333,404
33,447,948
61,996,673
Golf Course General Obligation Debt
670,000
633,000
393,000
Solid Waste Disposal System General Obligation Debt
11143,000
11093,000
1,025,000
Total Self -Supporting Debt
$ 34,963,336
$ 99,499,042
$ 94,960,149
General Purpose Funded Debt Payable
From Ad Valorem Taxes
$ 42,474,916
$ 38,399,710
$ 34,663,603
Interest and Sinking Fund (as of 2-13-1991) $2,042,182
Ratio Total Funded Debt to 1990 Taxable Assessed Valuation (as of 2-13-1991)--------------- 1.69%
Ratio General Purpose Funded Debt to 1990 Taxable Assessed Valuation (as of 2-13-1991) ----- 0.90%
1990 U.S. Census Population - 196,206
Per Capita 1990 Taxable Assessed Valuation - $23,379.93
Per Capita General Purpose Funded Debt (as of 2-13-1991) - $227.84
Area - 104. Square Miles
(1) Tax Increment District MID") created in 1996 that covers a .71 square mile area including part of the
central business district. The tax base of the TID on 1-1-1987 was $91,919,040; the 1990 Assessed
Valuation is $92,900,332, resulting in an increment of $981,312.
(2) The statement of indebtedness includes $2,000,000 General Obligation Bonds, Series 1991 (the
"Bonds"); $16,120,000 Combination Tax and Waterworks System Subordinate Lien Revenue Certificates of
Obligation, Series 1991 (the "Waterworks Certificates"); $1,143,000 Combination Tax and Solid Waste
Disposal System Revenue Certificates of Obligation, Series 1991 (the "Solid Waste Certificates");
$4,030,000 Combination Tax and Exhibition Hall/Auditorium (Limited Pledge) Revenue Certificates of
Obligation, Series 1991 (the "Exhibition Hall/Auditorium Certificates"); and $1,083,000 Public Property
Finance Contractual Obligations, Taxable Series 1991 (the "Contractual Obligations"} all selling April 23,
1991. The statement excludes outstanding $39,003,000 Electric Light and Power System Revenue Bonds
and $7,300,000 Electric Light and Power System Revenue Bonds selling April 23, 1991, as these bonds are
payable solely from the net revenues derived from the System. The statement also does not include
outstanding $710,000 Airport Revenue Bonds, as these bonds are payable solely from gross revenues
derived from the City of Lubbock Airport. The Waterworks System and the Sewer System are
unencumbered with Revenue Bond Debt.
After sale and Issuance of the Bonds the City will nave $8,012,000 authorized but unissued general
obligation bonds; the City has no present plans for the sale of these bonds and these bonds are not included
In any of the above calculations. The City may sell any or all of these bonds in 1992 or later years; see
"Authorized General Obligation Bonds".
(3) See 'Co Y. utatlon of Self -Supporting Debt".
(4) Includes The Series 1991 Certificates, the Series 1992 Certificates and the Series 1993 Certificates.
Debt service on the Series 1991 Certificates, the Serles 1992 Certificates and the Serles 1993 Certiflcates
will be provided for from Net Revenues of the Sewer System (see "Projection of Revenues, Expense, Net
Revenues and Debt Service Coverage, Sewer System").
-13-
Taxable Assessed Valuations by Category
Fiscal Year
Category Amount
Total
Amount
Total
Amount
Total
ea Residentia , mi y g e- am . 2,413,925, 0
48.95%
2,393,736,852
49.17% 2,346,063, 15
49.30%
,
Real, Residential, Multi -Family 313,170,381
6.35%
319,554,804
6.59%
331,959,071
6.98%
Real, Vacant Lots/Tracts 117,339,348
2.39%
114,489,842
2.36%
100,449,123
2.11%
Real, Acreage (Land Only) 52,453,590
1.06%
49,704,917
1.02%
68,423,336
1.44%
Real, Farm and Ranch Improvements 13,609,943
0.28%
21,391,376
0.44%
15,765,945
0.33%
Real, Commercial and Industrial 1,076,715,771
21.83%
1,063,031,842
21-93% 1,024,709,193
21.54%
Real, Oil, Gas and Other Mineral Reserves 22,192,456
0.43%
17,009,395
0.35%
13,059,266
0.27%
Real and Tangible Personal, Utilities 153,608,032
3.12%
153,052,116
3.16%
147,145,063
3.09%
Tangible Personal, Commercial and Industrial 737,020,743
15.12%
696,846,104
14.37%
680,408,997
14.30%
Tangible Personal, Other 6,360,69E
0.13%
9,805,356
0.20%
12,548,767
0.26%
Real Property, Inventory (1) 15,746.173
Value Before Exemptions 4,931,021,795
0.32%
100.00%
19,736,977
4,848,339,781
0.41% 18.277.912
100.00% 4,738,811,083
0.38%
100.00%
Total Appraised
Less: Total Exemptions/Reductions 205 313,381
Net Taxable Assessed Valuation 4 725 708 214
202 445.071
4 645 914 710
191 423 346
4 567
.387.737
Taxable Appraised Value For Fiscal
Year Ended September
30,
1988
1997
%of
% or--
CategorX
Amount
Total
Amount
Total
aReal, Residential,Single-Family 2,3 1,452,929
49.59% 2,276,202,095
49.62%
' Real, Residential, Multi -Family
349,669,150
7.50%
363,911,190
7.93%
Real, Vacant Lots/Tracts
104,432, 370
2.24%
94,789,630
2.07%
Real, Acreage (Land Only)
63,791,046
1.37%
72,565,374
1.58%
Real, Farm and Ranch Improvements
18,862,566
0.40%
16,309,030
0.36%
Real, Commercial and Industrial 1,008,946,758
21.64% 1,012,045,109
22.06%
Real, Oil, Gas and Other Mineral Reserves
9,096,810
0.20%
7,340,010
0.16%
Real and Tangible Personal, Utilities
137.318,274
2.95%
131,044,689
2.86%
Tangible Personal, Commercial and Industrial
638,050,142
13.69%
592,190,179
12.91%
Tangible Personal, Other
19,785,495
0.42%
20,734,776
0.43%
Real Property, Inventory (1)
-0-
0.00%
-0-
0.00%
Total Appraised Value Before Exemptions 4,661,4 3,540
100.00% 4,587,052,067
100.00%
Less: Total Exemptions/Reductions 184.833,272
Net Taxable Assessed Valuation 4,476.572.268
178 726,668
4 408 325 399
1 esi entia inventory properties
in the hands of developers or builders; each group of properties in this
category is appraised on the basis of its value as
a whole as a sale
to another developer or builder. This
category initiated in 1988.
Note: Basis of assessment for all years is 100% of
appraised (market) value. Taxable properties are
revalued
each year.
Valuation and Funded Debt History
Ratio
General Central
Purpose Purpose
Funded Funded
Fiscal
Taxable Tax Debt Debt to
Year
Taxable Assessed Outstanding Taxable Funded
Ended
Estimated Assessed Valuation
at End Assessed Debt
9-30
1982
Population Valuation (1) Per Capita of Year 3) Valuation Per Ca its
178,232 ,682,330,673 13,043 36,177,77E 1.35% 203
1983
1E1,300 3,224,289,000
17,763 46,653,736 1.43% 237
1994
192,103 3,233,722,496
11,73E 47,237,744 1.44% 240
1913
1E7,629 3,764,763,644
20,063 43,320,601 1.13% 231
1936
199,223 4,012,901,33E
21,313 39,348,632 0.99% 212
1997
133,694 4,40E,323,399
23,362 37,540,011 0.93% 199
199E
190,017 4,476,372,26E
23,33E 39,670,291 0.E9% 209
19E9
191,403 4,367,337,737
23,863 43,066,99E 0.94% 223
1990
1E6,206(2) 41645,914,710
24,930 39,179,106 0.94% 210
1991
196,206(2) 4,725,703,214
23,379 42,474,916(4) 0.90% 223
(1) Basis of assessment for all years 100% of
market value. Since 1982 all taxable property has been
revalued each
year.
(2) 1990 U.S. Census population.
(3) Funded Tax Debt less Self -Supporting Funded Tax Debt. Derivation of General Purpose Funded Tax
Debt is:
General
Purpose
Funded
Funded
Fiscal Tax Debt
Less: Tax Debt
Year Outstanding
Self -Supporting Outstanding
Ending at End
Funded Tax at End
9-30 of Year
Debt of Year
1992 $67,900,000
$31,722,222 $36,177,773
1993 21,300,000
34,846,244 46,653,736
1994 19,180,000
41,932,256 47,247,744
1933 42,533,000
39,214,399 43,320,601
1986 79,EE9,070
40,040,33E 39,843,682
1917 79,279,070
40,739,039 37,340.011
193E $2,933,732
43,219,461 39,470.291
1999 $6,399,732
43,831,754 43,066,99E
1990 79,098,752
39,909,646 39,179,106
1991(4) 97,433,752
34,963,936 42,474,916
Notes For
all years Self -Supporting Debt Includes Vaterworks System and Sever System General
Obligation
Debt. 199E-1991 includes Colt Course General Obligation debt. 1991 Includes Solid Waste
Disposal System
General Obligation. Debt and the Series 1991 Certificates (see *Valuation, Exemptions and
Debt Obligations").
(4) Anticipated; includes the Bonds, the Waterworks Certificates, the Solid Waste Certificates, the
Exhibition Hall/Auditorium Certificates, the Contractual Obligations, all selling April 23, 1991, and the
Series 1991
Certificates.
Tax Rate,
Levy and Collections History
Fiscal
Year
Distribution
Ended
. Tax General Board of City
Interest and % Current % Total
9-30
1932
Rate Fund Development_
0.66 0. 2223 $0.03
Sinkint Fund Tax Lev 1 Collections Collections
0.2E73 17,703,3E2 93.33% 99.97%
1933
0.61 0.2791 0.03
0.2E09 19,148,157 93.03% 97.41%
1934
0.61 0.2230 0.03
0.3370 19,725,707 93.32% 97.94%
1933
0.61 0.2103 0.03
0.3493 22,963,03E 93.77% 93.93%
1996
0.60 0.2333 0.03
0.2947 24,077,40E 94.14% 96.60%
1997
0.60 0.2762 0.03
0.273E 26,449,952 93.74% 99.94%
199E
0.61 0.2767 0.03
0.2333 27,307,091 93.93% 93.94%
1939
0.64 0.3171 0.03
0.2729 29,231,232 96.01% 99.99%
1990
0.64 0.3314 0.03
0.2396 29,733,E34 94.13% 99.10%
1991
0.64 0.376E 0.00
0.2632 30,244,333 94.10% (2) 93.49%(2)
(1) Fiscal years 9-30-E2 through 9-30-90 have been corrected for errors and adjustments.
(2) Collections for part year only, through 2-2E-1991.
-17-
Property within the City Is assessed as of January „1 of each year; taxes become due October 1 of the
same year, and become delinquent on February 'I of the folfowing year. Split payments are not permitted.
Discounts are not allowed.
Charges for penalty and interest on the unpaid balance of delinquent taxes are made as follows:
Month
Penalty
Interest
Total
February
6%
1%
7%
March
7%
2%
9%
April
8%
3%
11%
May
9%
4%
13%
June
10%
5%
15%
July
12%
6%
18%
After July pens ty remains at 12%, and interest increases as the rate of 1% each month. In addition, If an
account is delinquent in July, a 15% attorney's collection fee Is added to the total tax penalty and interest
charge.
Ten Largest Taxpayers
Name of Taxpayer
Texas Instruments Incorporated
South Plains Mall
Southwestern Bell Telephone Company
Southwestern Public Service Company
Furr's Incorporated
Plains Co-op Oil Mill
Farmers Co-op Compress
First National Bank at Lubbock
Flemming Company
Sentry Savings Association (1)
1990
% of Total
Taxable
Taxable
Assessed
Assessed
Nature of Property
Valuation
Valuation
Electronics Manufacturer
89,851,906
1.90%
Regional Shopping Mall
71, 320, 087
1.31 %
Telephone Utility
71,004,114
1.50%
Electric Utility
39,983,026
0.84%
Retail Groceries
36,928,694
0.79%
Agricultural Processing
23,185,122
0.49%
Cotton Compress
20,106,438
0.43%
Bank
19,575,019
0.43%
Grocers Supplier
17,269,140
0.37%
Savings and Loan; Residential/
Commercial Properties
16,577,249
0_35%
405 600 795
9.58%
1 Now Conso�Fidated Federal Savings Bank.
Tax Rate Limitation
All taxable property within the City is subject to the assessment, levy and collection by the City of a
continuing, direct annual ad valorem tax sufficient to provide for the payment of principal of and interest
on all ad valorem tax debt within the limits prescribed by law. Article XI, Section 5, of the Texas
Constitution is applicable to the City, and limits its maximum ad valorem tax rate to $2.30 per $100
Assessed Valuation for all City purposes. The City operates under a Nome Rule Charter which adopts the
constitutional provisions.
By each September 1 or as soon thereafter as practicable, the City Council adopts a tax rate per $100
taxable value for the current year. The tax rate consists of two components: (1) a rate for funding of
maintenance and operation expenditures, and (2) a rate for debt service.
Under the Tax Code:
The City must annually calculate and publicize Its "effective tax rate" and "rollback tax rate". The City
Council may not adopt a tax rate that exceeds the lower of the rollback tax rate or 103% of the effective
tax rate until It has held a public hearing on the proposed Increase following notice to the taxpayers and
otherwise complied with the Tax Code. if the adopted tax rate exceeds the rollback tax rate the qualified
voters of the City by petition may require that an election be held to determine whether or not to reduce
the tax rate adopted for the current year to the rollback tax rate.
"Effective tax rate" means the rate that will produce last year's total tax levy (adjusted) from this year's
total taxable values (adjusted). "Adjusted" means lost values are not included In the calculation of last
year's taxes and new values are not included in this year's taxable values.
"Rollback tax rate" means the rate that will produce last year's maintenance and operation tax levy
(adjusted) from this year's values (adjusted) multiplied by 1.08 plus a rate that will produce this year's debt
service from this year's values (unadjusted) divided by the anticipated tax collection rate.
Reference is made to the Tax Code for definitive requirements for the levy and collection of ad valorem
taxes and the calculation of the various defined tax rates.
-IB-
Assessed Valuations, Tax Rates, Outstanding Debt and Authorized But Unissued Bonds of Overlapping
Taxing Jurisdictions
1990
Outstanding
Authorized
Taxable
1990
Tax Supported
But Unissued
Assessed
Tax
Debt As of
Debt As of
Taxing Jurisdiction
Valuation
Rate
2-13-91
2-13-91
Lubbock Independent School District
4,339,186,138
$1.20000
49,024,989
13,600,000
Lubbock County
3,639,377,323
0.17630
6,473,000
-0-
Lubbock County Hospital District
3,650,201,099
0.10950
-0-
-0-
High Plains Underground Water
Conservation District No. 1
3,630,20I,099
0.00720
-0-
-0-
Lubbock-Cooper Independent School District
150,718,978
1.19000
3,310,000
-0-
FrenshipIndependent School District
414,082,263
0.90000
27,433,000
-0-
Roosevelt Independent School District
104,484,821
1.03500
-0-
-0-
IdalouIndependent School District
113,444,483
0.99680
966,000
-0-
New Deal Independent School District
91,471,333
0.95229
-0-
-0-
Sources: Lubbock Central Appraisal District and "Texas Municipal Reports" published by the ,4luniclpal
Advisory Council of Texas.
-19-
Debt Service Reauirements (General Obligation Bass)
Fiscal
Year
Ending
Outstanding Debt (1)
9-30
191
Principal
7,685,006
Interest
$ 5,519,770
Total
13,2 4,770
1"2
8,675,000
7,065,663
15,740,663
1"3
8,185,000
5,996,666
14,181,666
1994
7,920,000
5,386,224
13,306,224
1995
7,455,000
4,799,446
12,253,446
1"6
7,555,000
4,219,929
11,774,929
1"7
7,364,434
3,799,424
11,163,858
1998
7,365,076
3,252,344
10,617,420
1999
7,251,493
2,703,532
9,955,025
2000
4,789,986
4,219,804
9,009,790
2001
4,414,442
3,464,450
7,878,892
2002
4,008,639
2,508,732
6,317,371
2003
3,844,692
1,796,124
5,630,806
2004
2,705,000
1,083,961
3,788,961
2005
2,705,000
894,143
3,599,143
2006
2,710,000
706,075
3,416,075
2007
2,710,000
517,658
3,227,658
2008
2,065,000
352,553
2,417,553
2009
1,730,000
223,450
1,953,450
c 2010
1,163,000
123,900
1,288,900
2011
1,165,000
41,300
1,206,300
2012
2013
2014
2015
Series 1991
Series 1992
Certificates
Certificates
(Project
A)
(Project
B)
Principal
Interest
n� nciea�1Ilnt�
crest
64,820(2)
80,000
88,826
1,559,925(3)
80,000
84,426
2,501,522(3)
80,000
80,026
1,955,000
2,574,963
80,000
75,626
1,955,000
2,443,000
80,000
71,226
1,955,000
2,311,037
80,000
66,826
1,955,000
2,179,074
80,000
62,426
1,955,000
2,047,111
80,000
58,026
1,955,000
1,915,148
80,000
53,626
1,955,000
1,793,195
85,000
49,088
1,955,000
1,651,222
85,000
44,413
1,955,000
1,519,259
85,000
39,738
1,955,000
1,387,296
85,000
35,063
1,935,000
1,255,333
85,000
30,398
1,955,000
1,123,370
85,000
25,713
1,955,000
991,407
85,000
21,038
1,955,000
859,444
85,000
16,363
1,955,000
727,481
85,000
11,688
1,960,000
595,350
85,000
7,013
1,960,000
463,050
85,000
2,338
1,960,000
330,750
1,960,000
198,450
1,960,000
66,150
Series 1993
Certificates
(Project C)
nnc�a' I Interest
490,000
490,000
490,000
490,000
490,000
490,000
490,000
490,000
490,000
490,000
490,000
490,000
490,000
490,000
490,000
490,000
495,000
495,000
495,000
495,000
412,298(4)
637,805(4)
646,314
613,329
580,164
547,089
514,014
480,939
447,864
414,789
381,714
348,639
315,564
282,489
249,414
216,339
183,264
150,189
116,945
83,532
50,119
16,706
$103,468,752 $58,664,148 $162,132,900 $1,655,000 $ 988,697 $39,125,000 $30,483,527 $9,920,000 $7,689,429
Combined
Reauirements
$ 13,204,770
15,805,483
15,910,417
16,384,470
17,591,240
17,464,869
16,684360
15,968,484
15,136,651
14,021,978
12,721,642
11,195,545
10,139,267
9,127,709
7,768,178
7,415,397
7,057,267
6,077,449
5,443,633
4,614,202
4,361,552
2,990,033
2,736,982
2,571,269
511,706
$251,894,553
Interest on the Series 1991 Certificates has been calculated at 5.50%; interest on the Series 1992 and Series 1993 Certificates has been calculated
at 6.75% for purposes of illustration.
(1) Includes $2,000,000 General Obligation Bonds, Series 1991; $1,145,000 Combination Tax and Solid Waste Disposal System Revenue Certificates
of Obligation, Series 1991; $4,030,000 Combination Tax and Exhibition Hall/Auditorium (Limited Pledge) Revenue Certificates of Obligation,
Series 1991; $1,085,000 Public Property Finance Contractual Obligations, Series 1991 and $16,120,000 Combination Tax and Waterworks System
Subordinate Lien Revenue Certificates of Obligation, Series 1991 to be offered for sale April 25, 1991. Interest on the Bonds and the three series
of Certificates of Obligation has been calculated at 7.00% and interest on the Contractual Obligations has been calculated at 9.10% for purposes
of Illustration.
(2) Interest based on drawdown schedule as estimated in SRF-35 (Project A). See Exhibit 9a.
(3) Interest based on drawdown schedule as estimated in SRF-35 (Project B). See Exhibit 9b.
(4) Interest based on drawdown schedule as estimated in SRF-35 (Project Q. See Exhibit 9c.
Tax Adequacy
1990 Taxable Assessed Valuation-------------------------------------------------------------------------------- $4,725,708,214
Maximum Principal and Interest Requirements, 1995--------------------------------------------------------------- $ 17,581,240
$0.3917 Tax Rate @ 95 % Collection Produces-------------------------------------------------------------------- $ 17,395,069
% of
Principal
Retired
27.34%
57.81%
77.49%
92.44%
100.00%
Division of General Obligation Debt Service Requirements
Fiscal
Year
Ending
9-30
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Combined
Requirements
13,204,770
15,805,483
15,910,417
16,384,470
17,581,240
17,464,969
16,684,360
15,968,484
15,136,651
14,021,978
12,721,642
11,195,545
10,139,267
8,127,709
7,768,178
7,415,397
7,057,267
6,077,449
5,443,633
4,614,202
4,361,532
2,290,033
2,736,982
2,571,269
511,706
Less:
Waterworks
System
General
Obligation
Requirements
4,309,742
6,179,780
5,442,578
5,077,411
4,672,455
4,462,853
4,226,521
4,022,080
3,771,596
3,411,436
3,110,072
2,629,664
2,297,133
1,698,182
1,616,334
1,536,124
1,455,914
1,154,075
1,054,836
895,050
838,350
$251,894,533 $ 63,932,186
Less:
Sewer
System
G ene ral
Obligation
Requirements
2,221,415
2,193,177
3,751,148
5,055,432
7,165,283
7,526,204
7,282,330
7,041,074,
6,782,234
6,482,154
5,865,142
5,524,380
5,230,772
4,963,678
4,758,283
4,552,764
4,347,070
3,798,032
3,602,141
3,325,302
3,155,252
2,290,033
2,736,982
2,571,269
511.706
$113,433,477
Less:
Golf Course
Facilities
General
Obligation
Requirements
87,167
94,018
85,642
82,043
83,218
84,224
85,302
81,425
82,400
83,025
83,300
83,225
82,800
$1,087,789
Less:
Solid Waste
Disposal
System
General
Obligation
Requirements
213,088
183,075
175,025
166,975
159,925
150,875
142,925
134,775
126,725
113,850
General
Purpose
General
Obligation
Requirements
6,586,446
7,135,420
6,447,974
5,994,559
5,493,309
5,232,662
4,939,332
4,681,080
4,365,646
3,918,638
3,549,278
2,958,076
2,538,562
1,465,849
1,393,361
1,326,509
1,254,283
1,125,322
786,656
393,850
367,950
$1,566,138 $ 71,954,963
-21-
Estimated Direct and Overlapping Funded Debt Payable From Ad Valorem Taxes (As of 2-15-1991)
Expenditures of the various taxing bodies within the territory of the City are paid out of ad valorem taxes
levied by these taxing bodies on properties within the City. These political taxing bodies- are independent
of the City and may incur borrowings to finance their expenditures. The following statement of direct
and estimated overlapping ad valorem tax bonds was developed from information contained in "Texas
Municipal Reports" published by the Municipal Advisory Council of Texas and from data furnished by the
Lubbock Central Appraisal District. Except for the amounts relating to the City, the City has not
independently verified the accuracy or completeness of such information, and no person should rely upon
such information as being accurate or complete. Furthermore, certain of the entities listed below may
have issued additional bonds since the date stated in the table, and such entitles may have programs
requiring the issuance of substantial amounts of additional bonds the amount of which cannot be
determined. The following table reflects the estimated share of overlapping funded debt of these various
taxing bodies.
Taxinit jurisdiction
City of Lubbock
Lubbock Independent School District
Lubbock County
Lubbock County Hospital District
Lubbock -Cooper Independent School District
Frenship Independent School District
Roosevelt Independent School District
New Deal Independent School District
Idalou Independent School District
Total Direct and Overlapping Funded Debt
Estimated
Total
%
Overlapping
Funded Debt
Applicable
Funded Debt
42,45,916(1)
100.0096
$42,474,916
49,024,939
99.19%
43,137,637
6,473,000(2)
86.33%
3,604,113
.0-
96.69%
.0-
3,310,000
14.17%
732,427
27,453,000
63.29%
17,376,270
.0-
4.67%
-0-
-0-
0.02%
-0-
966,000
0.73%
_ _ 7,423
$114,352,608
Ratio of Direct and Overlapping Funded Debt to Taxable Assessed Valuation ----------------- 2.42%
Per Capita Overlapping Funded Debt --------------------------------------------------- $614.12
IGeneral purpose funded debt.
(2) Includes a preliminary amount of $4,000,000 Certificates of Obligation to be sold on May 28, 1991
(sale date tentative), to finance the construction of a community correctional facility and to provide
partial funding for courthouse remodeling and Improvements.
Interest and Sinking Fund Budget Projection
General Obligation Debt Service Requirements
for Fiscal Year Ending 9-30-91------------------------------------------•---
Plus: Fiscal Agent, Tax Collection and Other Fees --------------------------------
Sources of Funds:
Interest and Sinking Fund, All General Obligation Issues, 9-30-90 - -----$ 639,370
1990 Interest and Sinking Fund Tax Levy at 98% Collection ------------- 12,174,920
Estimated Interest Earned and Transfers From Other
City Funds, as budgeted ------------------------------------------- 667,013
Estimated Balance at9-30-91 -----------------------------------
-22.
$13,204,770
139 602
13,344:372
13.481,303
137 3
Computation of Self -Supporting Debt
Waterworks System (1)
Net System Revenue Available
Less: Revenue Bond Requirements
Balance Available for Other Purposes
System General Obligation Debt Requirements
Balance
Percentage of System General Obligation Debt
Self -Supporting
Fiscal Year Fiscal Year
Ended Ended
9-30-89 9-30-90
8,879,999 $12,949,112
-0- -0-
$ 9,979,999 $12,948,112
4,383,333 4,562,964
$ 4,293,346 $ 8,283,148
100% 100%
1 it is the ity's policy each Fiscal Year to transfer from Water Enterprise Fund surplus to the General
Fund an amount at least equivalent to debt service requirements on Waterworks System General
Obligation Bonds. The City has no outstanding revenue bonds payable from a lien on the net revenues of
the Waterworks System.
Debt service requirements on the $16,120,000 Waterworks Certificates will be provided by direct deposit
into the Waterworks Certificates Interest and Sinking Fund from Water Enterprise Fund net revenue.
In Fiscal Year Ended 9-30-83 the City Council established a "Rate Stabilization Fund' within the Water
Enterprise Fund to be accumulated from System net revenues. At 9-30-90 the balance in the rate
stabilization account was $4,993,038.
Sewer System (1)
Net System Revenue Available
Less: Revenue Bond Requirements
Balance Available for Other Purposes
System General Obligation Debt Requirements
Balance
Percentage of System General Obligation Debt
Self -Supporting
Fiscal Year Fiscal Year
Ended Ended
9-30-89 9-30-90
$4,972,320 $6,280,363
-0- -0-
$4,972,320 $6,290,565
2,047,830 2,311,728
2 924 690 $3,969,937
100.00% 100.00%
(1) t is the ity's policy each Fiscal Year to transfer from Sewer Revenue Fund surplus to the General
Fund an amount at least equivalent to debt service requirements on Sewer System General Obligation
debt; and this policy will continue for outstanding Sewer System General Obligation Debt.
Debt service requirements on the Series 1991, Series 1992 and Series 1993 Certificates will be provided by
direct deposit into the respective Interest and Sinking Funds from Sewer Enterprise Fund net revenue.
The City has no outstanding revenue bonds payable from a lien on'the net revenues of the Sewer System.
In Fiscal Year Ended 9-30-90 the City Council established a "Rate Stabilization Fund" within the Sewer
Enterprise Fund to be accumulated from System net revenues. At 9-30-90 the balance in the rate
stabilization account was $933,489.
-23-
Solid Waste'Disposal System (1)
Net System Revenue Available
Less: Revenue Bond Requirements
Balance Available for Other Purposes
System General Obligation Debt Requirements
Balance
Percentage of System General Obligation
Debt Self -Supporting
Fiscal
Fiscal
Year
Year
Ended
Ended
9-30-39
9-30-90
$923,690
$1,449,149
-0-
-0-
$823,680 $1,448,149
-0- -0-
$823,680 $1,448,149
N.A. N.A.
1 It is the City's intention to transfer each year from Solid Waste Enterprise Fund to the General Fund
an amount at least equivalent to debt service requirements on Solid Waste Disposal System General
Obligation debt, currently anticipated to be the Solid Waste Certificates. Although there has been no
Solid Waste Disposal System General Obligation debt, estimated maximum annual debt service of $158,088
(1992) on the Solid Waste Certificates would have historically been self -supported.
Golf Course Facilities (1)
Net System Revenue Available
Less: Revenue Bond Requirements
Balance Available for Other Purposes
System General Obligation Debt Requirements
Balance
Percentage of System General Obligation
Debt Self -Supporting
Fiscal
Fiscal
Fiscal
Year
Year
Year
Ending
Ending
Ending
9-30-91
9-30-89
9-30-90
(Budget)
$ 73,611
$ 8,990
$183,362
-0-
-0-
-0-
$ 73,611 $ 8,990 $183,362
86,366 35,093 $79167
502,955) S 76,11 96,195
83.03% 10.55% 100.00%
It is the City-s policy each Fiscal Year to transfer from Golf Course Enterprise Fund surplus to the
General Fund an amount at least equivalent to debt service requirements on Golf Course Facilities
General Obligation debt. This transfer was made in Fiscal Year Ended 9-30-89 in the amount of $91,906;
golf course facilities general obligation debt service was $96,566. This transfer was made in Fiscal Year
Ended 9-30-90 in the amount of $95,602; golf course facilities general obligation debt service was $95,093.
The City has no outstanding revenue bonds payable from a lien on the net revenues of the Golf Course
Facilities. A subordinate lien on Net Revenues is held by outstanding Combination Tax and Golf Course
Revenue Certificates of Obligation, Series 1988; debt service on this issue is included in "Golf Course
Facilities General Obligation Requirements" In the schedule of Debt Service Requirements.
Primarily because of major renovations and upgrading of golf course facilities, including equipment, net
revenue was below the level of Golf Course Facilities General Obligation debt service requirements In
Fiscal Years Ended 9-30-89 and 9-30-90.'
-24-
In addition to an increase in green fees and other charges effective 10-1-90, the recent improvements are
expected to enhance use of the golf course. Operating revenues for Fiscal Year Ending 9-30-1991 are
budgeted to increase 10.73% above those for Fiscal Year Ended 9-30-1990. Budgeted Net Revenues are
projected to fully provide for debt service.
As a result of the transfers to the General Fund that were made in Fiscal Years Ended 9-30-89 and
9-30-90 and budgeted Net Revenues and the debt service transfer that will be made in Fiscal Year Ending
9-30-91, Golf Course Facilities General Obligation Debt is treated as fully self-supporting.
Authorized General Obligation Bonds
Amount
Amount Being
Date Heretofore Issued Unissued
Purpose Authorized Authorized Issued 4-25-1991 Balance
Waterworks System 11-21-81 3,226,000 3,000,000 T'-0- V 226,000
Waterworks System 10-17-97 2,910,000 200,000 -0- 2,610,000
Sewer System 3-21-77 3,303,000 2,175,000 -0- 1,129,000
Sewer System 10-17-97 2,535,000 2,535,000 -0- -0-
Street Improvements 10-17-97 13,275,000 7,227,000 2,000,000 4,04g.000
27,149,000 $17,137,000 $2,000,000 $9,012,000
Anticipated Issuance of Authorized General Obligation Bonds and Other Obligations
On April 25, 1991, the City plans to offer at advertised sale the following:
$ 2,000,000 General Obligation Bonds;
$ 1,145,000 Combination Tax and Solid Waste Disposal System Revenue Certificates of
Obligation;
$169120,000 Combination Tax and Waterworks System Subordinate Lien Revenue Certificates of
Obligation;
$ 4,030,000 Combination Tax and Exhibition Hall/Auditorium (Limited Pledge) Revenue
Certificates of Obligation; and
$ 1,093,000 Public Property Finance Contractual Obligations, Taxable Series 1991.
Principal and interest (at an assumed rate of 7% on the Bonds and the three series of Certificates of
Obligation and 9.10% on the Contractual Obligations) of the above obligations have been included in the
calculation of "Debt Service Requirements (General Obligation Basis)", above.
The City has no present plans for the sale and issuance of the remaining $9,012,000 authorized but
unissued general obligation bonds, but may sell and issue these bonds in 1992 or later years.
Citizens Advisory Committee
A City Council appointed Citizens Advisory Committee is studying a three Year (1992-1994) capital
improvements program and will report to the City Council in late Spring, 1991. The CIty anticipates that
an election for the authorization of bonds for various purposes will be held in the Fall, 1991.
Funded Debt Limitation
There is no direct debt limitation in the City Charter or under State Law. The City operates under a
Home Rule Charter that limits the maximum tax rate, for all City purposes, to $2.50 per $100 Assessed
Valuation. Administratively, the Attorney General of the State of Texas will permit allocation of $1.30 of
the $2.50 maximum tax rate for general obligation debt service.
Other Obligations
(1) The City has entered into lease agreements for the purpose of acquiring certain properties and
equipment. As of February 13, 1991, capital leases were as follows:
-25-
Balance
Payable From 1991 1992 1993 1994 1995 1996 Interest Outstanding
General Government
Telephone Equipment $ 38,021 $ 65,177 $ 65,177 $ 63,177 $ 21,726 $ -0- $(38,348) $
216,730
Enterprise Fund
Sewer -Sprinkler Equipment$ 3,498 $ 3,999 $ -0- $ -0- $ -0- $ -0- $ (303) $
7,193
Golf -Golf Equipment 33,78E 16,894 -0- -0- -0- -0- (2,913)
47,767
Solid Waste -Scraper 39,019 66,990 66,890 66,990 66,890 11,14E (32,027)
263,700
Total Enterprise 76,303 S 87,782 S 66,890 66,890 66,890 11,149 SS 245) $ 320,660
Combined Requirements $114,326 $152,939 $132,067 $132,067 $ 99,816 $ 11,148 $(93,793) $
537,390
(2) A uisition and Renovation of Sears Building On October 138 1982, the City of Lubbock entered
into an agreement with the American State Bank, Lubbock ("American") to purchase the 96,810 square
foot "Sears" building located In downtown Lubbock. Originally constructed by Sears, Roebuck & Co., the
building and site were sold to the adjacent American State Bank following Sears construction of new
facilities in South Plains Mall, Lubbock, several years ago. The City also acquired 3 additional sites near
the Sears site for parking expansion in the future.
The City has renovated and remodeled approximately 53,000 square feet of the Sears building to house
administrative and City Council functions, and this building is now the main Municipal Complex with
parking space for 205 vehicles and a future expanded parking capability of 430 vehicles.
Budget for the project was $3,600,000:
Acquisition of Sears building/site $ 731,000
Purchase of additional property 302,923
Renovation of 55,000 square feet 2,201,949
Contingencies and other costs 344,226
Total Cost $3,600,000
Shown below is the "Sears Building Finance Schedule", which was prepared by the City of Lubbock.
Salient elements of the City's agreement with ".American" and the "Finance Schedule" includes:
(1) Advance Balance. Acquisition and remodeling cost of the Sears property was financed by
advances from "American". Net advance balances are shown on a quarterly basis; actual balances to
1-15-1991. $3,310,000 of the budgeted project cost of $3,600,000 was financed through the advance
process. The $290,000 balance was allocated from Revenue Sharing Funds.
(2) Total Payment. Actual and future quarterly payments to "American" including interest quarterly
at an annual rate of 12 3/4%. Final payment, 1-13-94, $2,917,819.
(3) Additional Site Acquisition. The City acquired 3 additional, adjacent sites for future parking
expansion, paying $159,000 in cash and assuming payments on 3 notes. Payment of the $139,000 and
combined payments on the 3 notes are demonstrated.
(4) Escrow Deposits. The City has deposited funds into an "Escrow Account" at "American" from
which payments wl 9be made to "American" as referred to In (2), above, and on the notes referred to
In (3) above. Deposits totaled $3,299,000 and the "Escrow Account" is funded.
(3) Escrow Interest Earnings. "American" pays the City Interest quarterly on the balance in the
"Escrow Account" at the annual rate of 12 1/2%.
(6) Escrow Balance. The Escrow Balance at the end of any quarter will always exceed the Advance
Balance.
(7) In the opinion of the City Attorney the financial arrangement with "American" described above
does not constitute a legal debt of the City since funds will be pledged at all times and placed In the
"Escrow Account" In amounts that, with interest earned, will exceed the outstanding Advance Balance
throughout the life of the agreement.
-26-
Sears Building
Finance Schedule
Additional
Advance
Total
Site
Year
Month
Balance
Payment
Acquisition
1982-83
10-15
$ 751000
$159,000
1-15
751:000
$ 23,938
5,331
4-15
1,231,000
23,939
5,331
7-15
1,751,000
39,876
5,331
1983-84
10-15
2,251,000
55,813
5,331
1-13
2,924,001
93,750
5,331
4-15
2,820,266
93,730
5,331
7-15
2,816,412
93,750
5,331
1984-85
10-13
2,812,433
93,730
5,331
1-13
2,903,331
93,750
5,331
4-13
2,902,125
93,730
5,331
7-15
2,900,980
93,730
5,331
1985-86
10-13
2,999,396
93,750
5,331
1-15
2,898,270
93,730
5,331
4-15
2,996,903
93,730
5,331
7-15
2,895,491
93,730
5,331
1986-87
10-15
2,994,035
93,730
5,331
1-15
2,892,532
93,730
5,331
4-13
2,990,992
93,730
5,331
7-15
2,889,392
93,730
5,331
1987-98
10-13
2,887,731
93,730
5,331
1-15
2,986,027
93,730
5,331
4-13
2,884,270
93,750
5,331
7-13
2,982,436
93,730
3,331
1989-89
10-15
2,980,594
93,730
5,331
1-13
2,978,633
93,750
5,331
4-15
2,976,660
93,730
5,331
7-13
2,974,603
93,730
3,331
1989-90
10-15
2,972,491
93,750
5,331
1-15
2,870,291
93,730
3,331
4-15
2,969,032
93,750
3,331
7-13
2,965,700
93,730
3,331
1990-91
10-15
2,863,295
93,750
3,331
1-13
2,960,812
93,730
3,331
4-13
2,858,231
93,730
3,331
7-15
2,853,607
93,750
5,331
1991-92
10-13
2,952,880
93,730
3,331
1-15
2,950,065
93,750
5,331
4-15
2,947,161
93,730
3,331
7-13
2,944,164
93,730
5,331
1992-93
10-15
2,841,072
93,730
4,637
1-13
2,937,881
93,730
670
4-15
2,934,599
93,750
670
7-13
2,931,191
93,730
670
1993-94
10-15
2,827,6W
93,730
670
1-13
2,927,696
2 917 818
6 811 383
670
374 896
-27-
Escrow
Minimum
Escrow
Anterest
Escrow
Deposits
Earnings
Balance
$1,073,000
$ 914,000
$ 28,363
913,294
473,000
29,540
1,387,565
475,000
43,361
1,960,719
525,000
38,147
2,382,723
575,000
74,460
2,933,102
91,659
2,925,690
91,428
2,919,027
91,188
2,910,134
125,000
90,942
3,026,993
94,394
3,022,507
94,453
3,017,990
94,309
3,013,108
94,160
3,009,196
94,006
3,003,111
93,847
2,997,877
93,694
2,992,490
93,313
2,986,914
93,341
2,991,174
93,162
2,973,255
92,977
2,969,150
92,786
2,962,935
92,399
2,956,363
92,396
2,949,669
40,000
92,177
2,982,763
93,211
2,976,995
93,028
2,970,942
92;839
2,964,600
92,644
2,959,163
92,443
2,951,525
92,235
2,944,679
92,021
2,937,619
91,801
2,930,339
91,373
2,922,931
91,338
2,913,088
91,097
2,907,104
90,947
2,998,870
90,590
2,990,379
90,324
2,991,622
90,051
2,872,591
89,768
2,963,973
89,499
2,859,032
89,345
2,953,977
89,197
2,949,744
89,023
2,943,347
88 853
3 288 00053,911,99
13,714
Pension Fund
a.
Texas Municipal Retirement System ... All permanent, full-time City employees who are not firemen
are covered by the Texas Municipal Retirement System. The System is a contributory, annuity -purchase
type plan which is covered by a State statute and is administered by six trustees appointed by the
Governor of Texas. The System operates independently of its member cities.
The City of Lubbock joined the System in 1950 to supplement Social Security. All City employees except
firemen are covered by Social Security. Options offered under the System, and adopted by the City,
include current, prior and antecedent service credits, 20 year vesting, updated service credit,
occupational disability benefits and survivor benefits for the spouse of a vested employee. An employee
who retires receives an annuity based on the amount of the employees contributions over -matched two for
one by the City. Employee contribution rate is 6% of gross salary. The City's contribution rate is
calculated each year using actuarial techniques applied to experience. The 1991 contribution rate Is
11.31%. Enabling statutes prohibit any member city from adopting options which Impose liabilities that
cannot be amortized over 23 years within a specified statutory rate.
On December 31, 1989, assets held by the System, not including those of the Supplemental Disability
Benefits Fund which is "pooled" for the City of Lubbock were $39,340,333. Unfunded accrued liabilities
on December 31, 1989, were �17,302,189, which is being amortized over the period 1999 through
2012. Total contributions by the City to the System in Fiscal Year Ending 9-30-90 were $3,349,997.
Firemen's Relief and Retirement Fund ... City of Lubbock firemen are members of the locally
administered Lubbock Firemen's Relief and Retirement Fund, operating under an act passed In 1937 by the
State Legislature and adopted by City firemen, by vote of the department, in 1941. Firemen are not
covered by Social Security.
The fund is governed by seven trustees, three firemen, two outside trustees (appointed by the other
trustees), the Mayor or his representative and the Assistant City Manager for Financial Services of the
City. Execution of the act is monitored by the Firemen's Pension Commissioner, who is appointed by the
Governor.
Benefits of retired firemen are determined on a "formula" or a "final salary" plan. Actuarial reviews are
performed every three years, and the fund Is audited annually. Firemen contribute 11% of full salary into
the fund and the City must contribute a like amount; however, the City contributes on a basis of the
percentage of salary which is a ratio adjusted annually that bears the same relationship to the firemen's
contribution rate that the City's rate paid into the Texas Municipal Retirement System and FICA bears to
the rate other employees pay into the Texas Municipal Retirement System and FICA. The City's present
contribution rate is 14.13%.
As of December 31, 1989, unfunded liabilities were $9,903,033, and are being amortized over a 27 year
period beginning October, 1999.
The City contributed $1,139,214 to the Fund during Fiscal Year ended 9-30-90.
* Sources: Texas Municipal Retirement System, Comprehensive Annual Financial Report for Year Ended
December 31, 1999.
City of Lubbock, Texas.
.28-
If
General Fund Revenues and Expenditures
Revenues
Ad Valorem Taxes
Sales Taxes
Franchise Taxes
Miscellaneous Taxes
Licenses and Permits
Intergovernmental
Charges for Services
Fines and Forfeits
Miscellaneous
Transfer from Other Funds and
Other Financing Sources
Total Revenues and Transfers (From)
Expenditures
enera overnment
Financial Services
Management Services
Development Services
Public Safety and Services
Non -Departmental
Transfer to Other Funds
Total Expenditures and Transfers (To)
Excess of Revenues and Transfers (From)
Over Expenditures (To)
Adjustments
Fund Balance at Beginning of Year
Fund Balance at End of Year
Less: Reserves and Designations
Undesignated Fund Balance
FINANCIAL INFORMATION
Budget
Fiscal Years Ended
1990/91
9-30-90
9-30-89
9-30-88
9-30-87
9-30-86
16,039,069
514,911,385
14,329,641
12,538,368
$12,044,707
10,354,750
15,598,330
15,530,468
15,059,072
13,960,077
12,563,905
12,953,236
3,529,528
3,377,870
3,077,372
3,108,228
3,111,362
2,970,720
686,736
712,203
629,320
669,292
646,777
474,172
611,718
719,979
613,668
579,369
628,144
983,118
1,497,366
1,511,791
1,179,271
1,124,237
1,104,585
1,132,721
2,209,265
2,243,429
2,091,277
2,058,402
1,883,450
2,297,414
2,925,500
2,489,471
2,365,787
2,063,207
1,581,702
1,946,291
3,236,788
3,222,731
3,802,560
2,694,897
2,836,814
2,946,195
14.241.546
13.175.352
12.173.142
12.319.367
12.308.945
10.354.498
$60,575,846 $57,894,678 $55,321,110 $51,115,444 $48,712,391 $46,615,095
$ 2,532,772 $ 3,056,633 $ 2,433,374 $ 2,056,095 $ 2,444,659 $ 2,308,491
1,871,693
1,815,389
1,751,968
1,671,752
1,507,961
1,487,064
2,387,917
2,500,229
2,113,725
2,202,132
2,031,032
2,264,031
7,084,112
5,831,381
5,522,932
5,312,624
5,292,956
6,019,109
43,623,309
39,968,471
37,432,994
34,111,128
33,088,839
32,659,988
-0-
265,108
16,761
52,602
39,438
231,731
2.533.770
3.720.260
5.941.416
4.909.466
3.402.501
2.039.289
$60,033,573 ,57,157,671 $55,213,170 $50,215,799 $47,796,386 $47,009,703
$ 542,273 $ 737,007 $ 107,940 $ 899,645 $ 916,005 $ (394,608)
-0- -0- 292,597 -0- -0- 25,530
9,343,076 8,606,069 8,205,532 7,305,887 6,399,882 6,759,960
$ 9,885,349 $ 9,343,076 $ 8,606,069 $ 9,205,532 $ 7,305,987 $ 6,389,882
N.A. 1 94S 213) (1 694 805) i 829 358) 1 381 549) 1 494 300)
NT-5 7,397,863 5 6,911,264 5 6,376,174 5 5,924,338 5 4,995,582
Municipal Sales Tax History
The City has adopted the Municipal Sales and Use Tax Act, VTCA, Tax Code, Chapter 321, which
grants the City the power to impose and levy a 1% Local Sales and Use Tax within the City, the proceeds
are credited to the General Fund and are not pledged to the payment of the Bonds. Collections and
enforcements are effected through the offices of the Comptroller of Public Accounts, State of Texas,
who remits the proceeds of the tax, after deduction of a 2% service fee, to the City monthly. Revenue
from this source, for the years shown, has been:
Fiscal
Year
% of
Equivalent of
Ended
Total
Ad Valorem
Ad Valorem
Per
9-30
Collected
Tax Levy
Tax Rate
Capita,
1911
9,791,566
98.69%
$0.646
33.41
1982
10,939,663
61.79%
0.408
61.36
1983
11,333,331
59.17%
0.361
42.57
1984
12,480,746
63.27%
0.386
68.34
1983
13,310,105
37.93%
0.341
70.94
1986
12,953,236
53.80%
0.323
68.80
1987
12,563,903
47.30%
0.295
66.38
1988
13,960,077
51.14%
0.312
73.47
1999
15,059,072
31.32%
0.330
78.68
1990
15,530,468
52.23%
0.334
83.40
+ Based on estimated (or U. S. Census) population for all years.
Financial Policies
Basis of Accounting ... The City's policy is to adhere to accounting principles as established by the
Governmental Accounting Standards Board. For governmental funds, this is the modified accrual basis
and for proprietary funds the accrual basis of accounting.
General Fund Balance ... The City's objective is to achieve and maintain a General Fund balance
equivalent to two months operating cost of the General Fund Budget. This should be sufficient to provide
financing for necessary projects, unanticipated contingencies, and fluctuations in anticipated revenues.
Debt Service Fund Balance ... A reasonable debt service fund balance is maintained in order to
compensate for unexpected contingencies.
Use of Bond Proceeds, Grants, etc.... The City's policy is to use bond proceeds, revenue sharing or other
non -recurring revenues for capital expenditures and non -recurring expenses only. Such revenues are not
used to fund normal City operations.
Budgetary Procedures ... The City follows these procedures in establishing operating budgets.
1) Prior to August 1, the City Manager submits to the City Council a proposed operating budget for
the fiscal year commencing the following October 1. The operating budget includes proposed
expenditures and the means of financing them.
2) Public hearings are conducted to obtain taxpayer comments.
3) Prior to October 1, the budget is legally enacted through passage of an ordinance.
4) The City Manager is authorized to transfer budgeted amounts between departments and funds.
Expenditures may not legally exceed budgeted appropriations at the fund level.
5) Formal budgetary integration is employed as a management control device during the year for
the General, Revenue Sharing, Board of City Development, Convention and Tourism, Criminal
Investigation, and Capital Projects Funds. Budgets are adopted on an annual basis. Formal
budgetary Integration Is not employed for Debt Service Funds because effective budgetary control is
alternatively achieved through general obligation bond indenture and other contract provisions.
6) Budgets for General, Revenue Sharing, Board of City Development, Convention and Tourism,
Criminal investigation, and Capital Projects Funds are adopted on a basis consistent with generally
accepted accounting principles (GAAP).
-30-
7) Appropriations for the General Fund and Board of City Development lapse at year end.
Unencumbered balances for the Revenue Sharing and Capital Projects Funds continue as authority
for subsequent period expenditures.
9) Budgetary comparisons are presented for the General Fund, Special Revenue Funds, and Capital
Projects Funds in the combined financial statement sections of the Comprehensive Annual Financial
Report.
Fund Investments ... The City's investment policy parallels State law which governs investment of public
funds. The City generally restricts investments to direct obligations of the United States Government and
insured or fully collateralized investments.
Insurance ... Except for Airport liability insurance, the City is self -insured for liability, workers'
compensation, and health benefits coverage. Insurance policies are maintained with large deductibles for
fire and extended coverage and boiler coverage. An Insurance Fund has been established In the Internal
Service Fund to account for insurance programs and budgeted transfers are made to this fund based upon
estimated payments for claim losses.
The reserve for self-insurance for health benefits was $1,306,439 on 9-30-90. The reserve for self-
insurance for liability and workers' compensation was $2,034,723 on 9-30-90.
At 2-13-91 the reserves had the following balances:
Reserve for self-insurance - health $1,462,276
Reserve for self-insurance - other than health 2,301,239
-31-
The Sewer System
The Sewer System is operated as a separate enterprise fund and Is not combined with the Waterworks
System.
The Collection System ... The sanitary sewage collection system, handled separately from the storm
drainage system, includes approximately 750 miles of trunk mains and collection lines with trunk mains
installed for future expansion of the collection system.
Water Reclamation Facilities ... Treatment facilities consist of the Southeast Water Reclamation Plant,
the City's major wastewater treatment facility, which consists of three treatment plants currently
permitted to treat a maximum 30-day flow of 25 million gallons per day ("mgd'), and the Northwest Plant,
with an average daily flow design capacity of 0.75 mgd. The Southeast Plant is in need of upgrade and
expansion as it is unable to consistently satisfy State permit treatment requirments.
Wastewater Flows ...
Southeast
Water
Northwest
Reclamation
Calendar
Plant
Plant
Year
(mgd)
(mgd)
1986
0.367
17.52
1987
0.424
17.36
1988
0.453
17.40
1989
0.389
18.35
1990
0.399
18.50
Effluent Disposal ... Treated effluent is used for beneficial purposes; no effluent is discharged into
streams. Treated effluent from the Northwest Plant is used to irrigate approximately 1,060 acres of farm
land at Texas Tech University for agricultural research. Treated effluent from the Southeast Plant is
used to irrigate two land -application sites:
(1) A site located adjacent to the City on the southeast, consisting of 6,000 acres owned by the
City, currently being upgraded.
(2) A 3,400 acre privately owned farmland site near Wilson, Texas, approximately 15 miles
southeast of Lubbock. There is storage capacity of 780 million gallons at this site for effluent
pending its use for irrigation.
Southwestern Public Service Company has a contract with the City to use treated effluent from the
Southeast Plant for cooling purposes in Southwestern Public Service Company's 312,000 kilowatt electric
generating plant near Lubbock when the plant is in use.
Wastewater Treatment and Disposal Improvement and Expansion Project ... The City is planning a
comprehensive wastewater treatment and effluent disposal program that will upgrade and expand the
Southeast Water Reclamation Plant, the City's major wastewater treatment facility. This program will
enable the Plant to consistently comply with Texas Water Commission and United States Environmental
Protection Agency permit requirements and provide treatment capacity to the design year 2010.
Effluent will continue to be disposed of through an enhanced land application system with alternative
effluent discharges to the North Fork Double Mountain Fork, Brazos River, ("NFDMF Brazos River")
below the plant.
See "Project Description", above, for a discussion of wastewater treatment problems and the wastewater
treatment plant improvement program.
-32_
CONDENSED STATEMENT OF OPERATIONS
SEWER SYSTEM
Budget
Fiscal Year Ended
Revenues
9-30-1991
9-30-1990
9-30-1989 (2)
9-30-1989 (1)
9-30-1987
9-30-1986
Operating Revenues
Charges for Service
$8,111,930
$ 9,333,993
$7,520,841
$4,599,994
$4,217,723
$3,433,423(3)
Effluent Water Sales
635,000
561,032
636,527
689,539
75,512
N.A.
Commodity Sales
Total Operating Revenues
SSS 000
$9,301,930
456,332
5 9,571,277
360 686
8,518:034
781 320
6,070:743
188 446
4,491:68
N.A.
$3,433,423
Non -Operating Revenues
Gross Revenues
114 277(4)
$9,417j207
763 549
10,334,826
579 026
9,097,080
300 024
6,370:167
320 311
3,001:994
760 663
4,194:086
Operating Expenses (5)
Personal Services $1,357,279 $ 1,009,315 $ 934,689 $ 531,605 $ 339,331 $ 593,564
Supplies 494,599 376,695 331,639 123,293 91,969 102,392
Maintenance 602,799 593,107 642,294 341,212 359,959 397,669
Collection Expense 217,745 224,294 204,807 171,O11 240,352 129,340
Other Charges 1_ 17291924 1,8i4�E70 2 111,'l21 3 O' 01,4434 9 2 0' 49,23727 627 095,051
15
Total Operating Expense 4 402 344344 4 O�S4 26l 4 124 360 4 20l 440 3 248 231 2 O8�S O1S'
Net Revenues $5,014,863 $ 6,290,365 J4, 972 520 2 169 327 l 753 751 JLIq9,071
Sewer Meters (Estimated) N.A. 62,119 62,631 61,629 60,991 60,731
(1) Rate increase effective 8-1-89.
(2) Rate increase effective 1-1-89,
(3) includes "Effluent Water Sales" and "Commodity Sales".
(4) Excludes interest earned on capital projects fund.
(5) Defined as "Maintenance and Operation Expenses" in the Ordinances; excludes
depreciation and capital expenditures.
:Sewer Rates (Monthly)
Rates for sewer service shall be reviewed annually to ensure the adquacy of the rates to cover the total
cost of operation, maintenance, and capital costs. These rates shall be examined by the assistant city
manager for financial services and the assistant city manager for financial services shall make such
recommendations for adjustments and changes in such rates to the City Council as deemed necessary
after each annual review for consideration by the City Council. (Ord. No. 9294, 1, 8-10-89 sec City of
Lubbock Codes of Ordinances Section 28-86).
Residential
Present Rates Previous Rates
Effective 1-1-99 (Effective 8-1-88)
first 3,000 gallons 5.60 Minimum First 3,000 gallons 4.60 Minimum
Next 7,000 gallons 0.68/M gallons Next 7,000 gallons 0.33/M gallons
Over 10,000 gallons No additional charge Over .10,000 gallons No Additional Charge
(Maximum Monthly Charge - $10.36) (Maximum Monthly Charge - $6.91)
Individually metered residential units shall pay the above service charge based on a calculated estimate of
sewer flow determined from water consumption records for individual customers. Water consumption
information for months of typically low irrigation usage will be examined to establish a "basis" for sewer
service charges. Sewer charges will be levied based on water consumption up to the maximum determined
by the "basis". The basis for new customers shall be six thousand (6,000) gallons until adequate historical
information is available.
Commercial/Industrial (1) (2)
First 3,000 gallons $3.60 (Minimum) (3) First 3,000 gallons $4.60 (Minimum) (3)
Over 3,000 gallons 0.68/M gallons Over 3,000 gallons 0.33/M gallons
(1) Includes universities, schools, geriatric institutions, orphan homes, public or private institutions,
public schools, churches, multi -family residential and all other sewer service customers except
individually metered residents.
(2) Industrial waste that exceeds allowable limits is subject to surcharges; surcharges for treating
biochemical oxygen demand (B.O.D.) and grease and suspended solids (SS.) are:
B.O.D. and Grease $0.1076/lb. $0.0800/lb.
S.S. $0.0918/1b. $0.0683/lb.
(3) Based on 5/8" or 3/4" meterl higher minimums for larger meters up to a maximum charge for a to"
meter of:
$766.35 $478.36
-33-
Customers of Lubbock's water, sewer, and sanitation systems are billed simultaneously on one statement;
if the customer Is connected to the City's electric system, electric charges are also included. All
customers who do not pay their bill within 22 days of the date it is mailed to them are charged a 3% late
payment penalty. If the bill has not been paid on the next billing date, a statement is mailed showing the
past due bill together with the current bill. If the bill remains delinquent 7 days after the date of the
second statement, a reminder/cut-off notice is mailed. The cut-off notice specifies that service will be
discontinued in 7 days if payment in full is not made. At the end of the 7 day period, a field collector
calls on the customer and if he is unable to collect payment, service is cut off. The reconnection charge,
including electric service if the customer is connected to the City's electric system, is $13.00 before 3:00
p.m. and $23.00 after 3:00 p.m. and during weekends and holidays.
Note: The City owns and operates a Waterworks System, an Electric Light and Power System and an
Airport System (Lubbock International Airport).
The Waterworks System is described in Appendix A, below.
Discussion of Projected Sewer Rates
Sources: City of Lubbock, Texas
Ernst do Young, Denver, Colorado
The City's present sewer rate structure is a modified user charge system based on water usage and
surcharges for excessive strength contributions to the wastewater system (see "Sewer Rates", above).
As part of the Wastewater Project to be financed with SRF loans the City will adopt a formal User
Charge System by ordinance with rates and regulations in accordance with Federal regulations. The
estimated date for submission of the User Charge System is October 1, 1991 (see Exhibit f6a, SRF-34,
Project Schedule, Project A).
The User Charge System is now under development by the City and its rate consultants, Ernst do Young,
Denver, Colorado, but is not yet at a stage that will permit a definitive descriptive analysis.
With reference to Ernst do Young, the City realized the need to make substantial and Jong -term
improvements to its wastewater treatment and disposal facilities in 1999 and that this program would
require a sewer rate structure that would be equitable to all customer classes. As an effective water
conservation plan is also mandatory, the City requested proposals for a comprehensive water and
wastewater rate study from a nationally recognized engineering and accounting firm. The City retained
Ernst do Young in spring, 1990, to prepare a study of the City's rate structures and develop a new water
and sewer structure which would ensure that the City would meet all debt service requirements, maintain
operations of existing and proposed facilities, to meet all federal and state regulations and promote water
conservation. The final report from Ernst do Young is expected to be available for City Council
consideration in late spring, 1991.
This report will provide a basis for the development of the formal User Charge System as well as for
future water rate structures.
Whether the final User Charge System structure is in place or not a sewer rate increase of approximately
18.8% will be implemented effective 10-1-1991, the beginning of the City's Fiscal Year 1991-1992; this
rate Increase is designed to initially anticipate and provide for the additional debt service requirements
incurred under the proposed SRF loan program. Further successive annual sewer rate increases of
approximately 6.9% each to provide for Increasing levels of debt service through Fiscal Year Ending
9-30-1996 are projected to be required each October 1, 1992 through 1995.
Average Residential Sewer Customer Impact
The current monthly sewer rate for an average Lubbock residential customer, based on an average
sanitary sewer discharge of 3,000 gallons, is $6.96.
-34-
Projected monthly residential sewer customer rates following each of the anticipated sewer rate increases
are:
Projected
Approximate
Average
Residential
Sewer
Customer
Rate
Monthly
Effective %
Sewer
Date Increase
Bill
10-1-1991 18.8%
8.27
10-1-1992 6.9%
8.94
10-1-1993 6.9%
9.44
10-1-1994 6.9%
10.10
10-1-1995 6.9%
10.90
These increases applied to present sewer rates result in
the following:
Sewer Rates Monthly
Present
Rates 18.9%
6.9% 6.9%
6.9%
6.9%
(Effective Increase
Increase Increase
Increase
Increase
1-1-99) 10-1-91
10-1-92 10-1-93
10-1-94
10-1-95
Residential
First 3,000 gallons (Minimum)
$3.60 $6.63
$7.10 $7.38
$8.10
$8.66
Next 7,000 gallons
0.68/M gals. 0.81/M gallons
0.87/M gals. 0.93/M gals.
1.00/M gals.
1.07/M gals.
Over 10,000 gallons
No charge No charge
No charge No charge
No charge
No charge
Maximum Monthly Charge
$10.36 $12.32
$13.19 $14.09
$15.10
$I6.15
Commercial/Industrial (1)
First 3,000 gallons (Minimum)
$5.60 $6.65
$7.10 $7.59
$15.10
$16.15
Over 3,000 gallons
0.68/M gals. 0.81/M gals.
0.87/M gals. 0.931M gals.
1.00/M gals.
1.07/M gals.
(1) Industrial waste surcharges:
B.O.D. and grease
$0.1076/lb. $0.1278/lb.
$0.1366/lb. $0.1460/lb.
$0.1561/1b.
$0.1669/lb.
S.S.
0.0918/lb. 0.1091/lb.
0.1166/lb. 0.1246/lb.
0.1332/1b.
0.1424/lb.
The Projection of Revenues, Expenses, Net Revenues and Debt Service Coverage following reflects the
above discussion. Also integrally incorporated in the Projection is the City of Lubbock's Planning
Department recommendation that an average sewer customer account growth factor of 1% per year
should be anticipated.
-35-
M
k1
Debt Service Renuirements (Revenue Basis)
Fiscal
Year
Ending
9-30
IT91
1"2
1993
1994
1993
1"6
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2013
Outstandine Debt (1
Principal
Interest
Total
1,217, 24
1,004,191
,22 ,415
1,210,456
917,901
2,128,337
1,191,273
831,122
2,022,397
1,234,471
742,716
1,977,187
1,183,960
-633,529
1,937,499
1,274,679
361,583
1,836,264
1,134,329
627,499
1,761,827
1,122,128
367,882
1,690,010
1,093,436
507,172
1,600,608
727,333
742,431
1,469,966
346,940
475,452
1,022,392
303,633
342,731
846,406
479,341
242,970
722,311
484,960
139,970
624,930
484,960
104,288
389,248
484,960
68,482
333,442
484,960
32,301
317,461
127,662
10,494
139,156
108,697
3,261
111,958
50.600.000 Proposed Certificates (SRF Loans) (2)
Series 1991
Series
1992
Series 1993
Certificates
Certificates
Certificates
(Project
A)
(Project B)
Proms
B)
Principal
interest
Principal
interest
Principal_
nt$eT�rest
64,8200)
$
80,000
88,826
1,559,923 (4)
80,000
84,426
2,501,522(4)
412,298(5)
80,000
80,026
1,935,000
2,574,963
637,805(5)
80,000
75,626
1,955,000
2,443,000
490,000
646,314
80,000
71,226
1,935,000
2,311,037
490,000
613,239
80,000
66,826
1,935,000
2,179,074
490,000
380,164
80,000
62,426
1,935,000
2,047,111
490,000
347089
80,000
58,026
1,955,000
1,913,148
490,000
314,014'
80,000
33,626
1,955,000
1,793,195
490,000
480,939
83,000
49,088
1,955,000
1.631,222
490,000
447,964
83,000
44,413
1,953,000
1,519,259
490,000
414,789
85,000
39,738
1,953,000
1,387,296
490,000
381,714
83,000
33,063
1,955,000
1,255,333
490,000
348,639
85,000
30,388
1,955,000
1,123,370
490,000
315,564
83,000
23,713
1,935,000
991,407
490,000
282,489
85,000
21,038
1,955,000
859,444
490,000
- 249,414
83,000
16,363
1,955,000
727,481
490,000
216,339
85,000
11,688
1,960,000
595,350
490,000
183,264
83,000
7,013
1,960,000
463,050
490,000
130,189
85,000
2,338
1,960,000
330,750
495,000
116,945
1,960,000 198,450 493,000 83,332
1,960,000 66,150 495,000 50,119
493,000 16,706
$15,095,627 $ 8,376,197 $23,671,924 $1,635,000 $ 988,697 $39,123,000 $30,483,327 $9,820,000 $7,699,429
Grand Total
Requirements
Proposed
Certificates
64,820
1,728,731
3,079,246
3,327,794
5,699,940
5,520,302
5,331.064
3,181,626
5,012,198
4,842,730
4,678,174
4,508,461
4,338,748
4,169,033
3,999,322
3,829,609
3,659,896
3,490,193
3,323,302
3,155,252
2,990,033
2,736,982
2.371,269
511r706
$ 89,761,653
Notes Interest on the Series 1991 Certificates has been calculated at 3.30%; interest on the Series 1992 and Series 1993 Certificates has been
calculated at 6.73% for purposes of illustration.
(1) Outstanding debt consists of the sewer system portion of various issues of general obligation bonds and outstanding:
$2,334,682 Combination Tax and Sewer System Subordinate Lien Revenue Refunding Bonds, Series 1989; and
$4,900,000 Combination Tax and Sewer System Subordinate Lien Revenue Certificates of Obligation, Series 1988.
Debt service on these obligations is provided for from net revenues of the Sewer System each year by transfer to the General Fund.
The Sewer System has no revenue bond bonded debt.
(2) Annual debt service on these proposed Certificates will be provided from net revenues of the Sewer System by direct transfer to the
appropriate Interest and Sinking Fund.
(3) Interest based on drawdown schedule as estimated in SRF-35 (Project A). See Exhibit 9a.
(4) Interest based on drawdown schedule as estimated in SRF-35 (Project B). See Exhibit 9b.
(3) Interest based on drawdown schedule as estimated in SRF-33 (Project Q. See Exhibit 9c.
Combined
Requirements
2,221,415
2,193,177
3,731,148
5,055,433
7,165,283
7,526,204
7,282,329
7,041,074
6,782,234
6,482,134
3,965,142
5,324,830
5,230,772
4,963,67E
4,759: 283
4,332 764
4,347;070
3,798:032
3,602141
3,323,302
3,155,252
2,990,033
2,736'0982
2,371,269
311,706
$113,433,477
CITY OF LUBBOCK, TEXAS
PROJECTION OF REVENUES, EXPENSES. NET REVENUES. AND
DEBT SERVICE COVERAGE
SEWER SYSTEM
FISCAL
PROJECTED
YEAR
CONNECTIONS
PROJECTED
PROJECTED
ENDING
SEWER pmr
GROSS
OPERATING
SEFr30
(@*l%NR) rarer
REVENUES
EXPENSES
1"Il
62,046
$9.417,207
S4,402,344
1992
62,666 (1)
11,300,648
4.622,461
1993
63,293 (2)
12,204.191
4,853.584
1994
63,926 (3)
13,181,478
5.169,067
1995
64,565 (4)
14,233,614
5,546,409
1996
65.210 (5)
15,373.NM
5,823.730
1997
65,863 (6)
15,529,686
6,114.916
1998
66.521
15,687,254
6.420,662
19"
67.186
15,845.056
6,741,695
2000
67,858
16.003.507
71078.780
2001
68.537
16.163.542
7.432.719
2002
69,222
16.325,177
7,804.355
2003
69,914
16,488,429
8,194,573
2004
70,614
16,653,313
8,604,301
2005
71,320
16,819,846
9.034,516
2006
72,033
16,988,045
9,486,242
2007
72,753
17,157,925
9,960,564
2008
73,481
17,329504
10,458,582
2009
74.216
17.502.799
10.981,511
2010
74.958
17.677,827
11,530.586
2011
75.707
17.854.606
12.107.116
2012
76,464
18,033,152
12,712,472
2013
77,229
18.213,483
13,348,095
2014
78,001
18,395.618
14.015,500
2015
78.781
18,579,574
14,716.275
(1) Projected Sewer Rate Increase Effective 10-1-91
(2) Projected Sewer Rate Increase Effective 10-1-92
(3) Projected Sewer Rate Increase Effective 10-1-93
(4) Projected Sewer Rate Increase Effective 10-1-94
(5) Projected Sewer Rate Increase Effective 10-1-95
(6) Additional capital projects
and/or increases
in operating and maintenance expenses beyond
projections will be covered by rate irnxeases
as
necessary
PRESENT SEWER
SYSTEM GENERAL
PROJECTED OBLIGATION
NET DEBT
REVENUE REQUIREMENTS
$5.014.863
6,678,187
7,350,607
8,012,411
8.687.205
9.550,174
9,414,770
9,266,592
9,103,361
8,924,727
8,730.823
8,520,822
8,293,856
8,049,012
7,785.330
7,501,803
7,197,371
6,870.922
6,52108
6.147,241
5,747.490
5,320,680
4,865,388
4.380,118
3,863.299
$2.221.415
2,128,357
2.022.397
1.977,187
1,837,489
1.836,264
1.761.827
1.690.010
1,600,608
1,469,966
1.022,392
846,406
722,311
624,930
589,248
553,442
517,461
138,156
111,958
Prepared March 27, 1991
PROJECTED
COMBINED
REQUIREMENTS
CERTIFICATES OF
OBLIGATION SERIES
(SRF LOAN)
1991 1992 1993
$64,820
168.826
164,426
160,026
155.626
151,226
146.826
142.426
138,026
133,626
134,088
129,413
124,738
120,063
115,388
110,713
106,038
101,363
96.688
92.013
87,338
Reviewed 6 Approved March 27.1991
$1.659,925
2.501,522
4,529,963
4,398,000
4,266,037
4.134,074
4,002.111
3,870,148
3,738,185
3,606.222
3.474.259
3,342,296
3,210,333
3,078.370
2.946,407
2,814,444
2,682.481
2,555,350
2.423,050
2,290.750
2,168.450
2,026,150
$412,298
637,805
1,136,314
1.103,239
1.070,164
1,037.089
1,004,014
970,939
937,864
904,789
871.714
838,639
805,564
772,489
739,414
706,339
673,264
640,189
611.945
578,532
545,119
511,706
J. Robert Massengale
Assistant City Manager
for Finance Services
City of Lubbock, Texas
PROJECTED
COMBINED COVERAGE
REQUIREMENTS ALL DEBT
ALL DEBT SERVICE
$2,221,415
2.193,177
3,751.148
5,055.433
7,165,283
7,526.204
7,282,329
7.041,074
6,782,234
6.482.154
5,865,142
5,524,580
5.230,772
4,963.678
4,758,283
4,552,764
4,347,070
3,798,062
3,602.141
3,325,302
3,155,252
2,990,033
2.736,982
2,571.269
/ 1 511,706
2.26 X
3.04 X
1.96 X
1.58 X
1.21 _X
1.27 X
1.29 X
1.32 X
1.34 X
1.38 X
1.49 X
1.54 X
1.59 X
1.62 X
1.64 X
1.65 X
1.66 X
1.81 X
1.81 X
1.85 X
1.82 X
1.78 X
1.78 X
1.70 X
7.55 X
Dan A. Hawkins, P.E.
Director Water Utilities
City of Lubbock, Texas
' Q Zriesentative, Ci f Lubbock, Texas
Reviewed & Approved March 29.1991�
Joe W. Smith
First Southwest Company, Abilene, Texas
r
OTHER RELEVANT INFORMATION
Tax Exemption
The delivery of the Certificates Is subject to the opinion of Bond Counsel to the effect that interest on
the Certificates for federal income tax purposes (1) will be excludable from gross income, as defined in
section 61 of the internal Revenue Code of 1986, as amended to the date of such opinion (the "Code"),
pursuant to section 103 of the Code and existing regulations, published rulings, and court decisions, and (2)
will not be included in computing the alternative minimum taxable Income of the owners thereof who are
individuals or, except as hereinafter described, corporations. The statute, regulations, rulings, and court
decisions on which such opinion is based are subject to change.
Interest on all tax-exempt obligations, including the Certificates, owned by a corporation will be included
in such corporation's adjusted net book Income for the 1989 tax year, or adjusted current earnings, for tax
years beginning after 1999, for purposes of calculating the alternative minimum taxable Income of such
corporation, other than an S corporation, a qualified mutual fund, a real estate investment trust (REIT), or
a real estate mortgage Investment conduit (REMIC). A corporation's alternative minimum taxable income
is the basis on which the alternative minimum tax imposed by the Tax Reform Act of 1986 and the
environmental tax imposed by the Superfund Revenue Act of 1986 will be computed.
In rendering the foregoing opinions, Bond Counsel will rely upon representations and certifications of the
City made in a certificate dated the date of delivery of the Certificates pertaining to the use,
expenditure, and investment of the proceeds of the Certificates and will assume continuing compliance by
the City with the provisions of the Ordinance subsequent to the issuance of the Certificates. The
Ordinance contains covenants by the City with respect to, among other matters, the use of the proceeds
of the Certificates and the facilities financed therewith by persons other than state or local governmental
units, the manner in which the proceeds of the Certificates are to be invested, and the reporting of
certain information to the United States Treasury. Failure to comply with any of these covenants would
cause interest on the Certificates to be includable in the gross income of the owners thereof from date of
the issuance of the Certificates.
Except as described above, Bond Counsel expresses no other opinion with respect to any other federal,
state or local tax consequences under present law, or proposed legislation, resulting from the receipt or
accrual of interest on, or the acquisition or disposition of, the Certificates. Prospective purchasers of the
Certificates should be aware that the ownership of tax-exempt obligations such as the Certificates may
result in collateral federal tax consequences to, among others, financial institutions, life insurance
companies, property and casualty insurance companies, certain foreign corporations doing business in the
United States, S corporations with subchapter C earnings and profits, Individual recipients of Social
Security or Railroad Retirement benefits, and taxpayers who may be deemed to have incurred or
continued indebtedness to purchase or carry, or who have paid or incurred certain expenses allocable to,
tax-exempt obligations. Prospective purchasers should consult their own tax advisors as to the
applicability of these consequences to their particular circumstances.
Litigation
It Is the opinion of the City Attorney and City Staff that there is no pending litigation against the City
that would have a material adverse financial impact upon the City or its operations.
Legal Opinions and No -Litigation Certificate
The City will furnish a complete transcript of proceedings had incident to the authorisation and issuance
of the Certificates, including the unqualified approving legal opinion of the Attorney General of Texas
approving the initial Certificate and to the effect that the Certificates are valid and legally binding
obligations of the City, and based upon examination of such transcript of proceedings, the approving legal
opinion of Bond Counsel, to like effect and to the effect that the interest on the Certificates will be
excludable from gross income for federal income tax purposes under Section 103(a) of the Code, subject to
the matters described under "Tax Exemption" herein, including the alternative minimum tax on
corporations. The customary closing papers, including a certificate to the effect that no litigation of any
nature has been filed or Is then pending to restrain the issuance and delivery of the Certificates, or which
would affect the provision made for their payment or security, or in any manner questioning the validity
of said Certificates will also be furnished. Bond Counsel was not requested to participate, and did not
take part, in the preparation of the Notice of Sale and Bidding Instructions, the Official Bid Form and the
Official Statement, and such firm has not assumed any responsibility with respect thereto or undertaken
independently to verify any of the information contained therein, except that, In its capacity as Bond
Counsel, such firm has reviewed the Information describing the Certificates in the Official Statement to
verify that such description conforms to the provisions of the Ordinance. The legal fee to be paid Bond
Counsel for services rendered In connection with the issuance of the Certificates is contingent on the safe
and delivery of the Certificates. The legal opinion will be printed on the Certificates.
-37-
Authenticity of Financial Data and Other Information
The financial data and other information contained herein have been obtained from the City's records,
audited financial statements and other sources which are believed to be reliable. There is no guarantee
that any of the assumptions,or estimates contained herein will be realized. All of the summaries of the
statutes, documents and resolutions contained in this Official Statement are made subject to all of the
provisions of such statutes, documents.and resolutions. These summaries do not purport to be complete
statements of such provisions and reference is made to such documents for further information.
Reference is made to original documents in all respects.
-39-
APPENDIX A
INFORMATION'REGARDING THE WATERWORKS SYSTEM AND
GENERAL INFORMATION REGARDING THE CITY OF LUBBOCK
The following information concerning the Waterworks System is for general information purposes only.
THE WATERWORKS SYSTEM
Water Supply ... Currently, the primary source of water for Lubbock is the Canadian River Municipal
Water Authority Q'CRMWA") which delivers raw water from its Lake Meredith reservoir, located on the
Canadian River about 30 miles north of Amarillo, to member cities through an underground aqueduct
system. Lubbock is one of eleven member cities of CRMWA; other members are Amarillo, Pampa,
Borger, Plainview, Slaton, Levelland, Brownfield, Tahoka, O'Donnell and Lamesa. Lubbock received
31,160 acre feet of water from CRMWA in Calendar Year 1990, approximately 80% of the City's total
consumption. Cost of the project is being repaid to the Bureau of Reclamation by CRMWA through a
reimbursable loan maturing annually through 2019; debt requirements are paid from revenues received by
CRMWA from sale of water to member cities. Member cities make payments for water received from
revenues derived from operation of their respective waterworks systems.
Other Water Supply Sources ... Part of the City's water supply is obtained from 238 potable water wells,
all producing from the Ogallala Acquifer, which underlies the High Plains of Texas. Combined capacity of
these wells is over 43 million gallons per day ("mgd"). Primary wells are located in the "Sand Hills" area
about 60 miles northwest of Lubbock in Lamb and Bailey Counties in which the City owns approximately
80,000 acres of water rights; the City has also contracted for the annual purchase of 1,260 acre feet of
water from private sources adjacent to the Sand Hills tract. These ground water sources are used
primarily for peaking purposes.
Lake Alan Henry ... The Brazos River Authority Q'BRA") on behalf of the City of Lubbock (the "City") is
constructing a dam and reservoir on the South Fork of the Double Mountain Fork of the Brazos River
("Lake Alan Henry") about 30 miles southeast of Lubbock to enhance provision of long term water supply
needs. The Texas Water Commission has granted a permit for impoundment at the reservoir site.
Future population and water demand estimates for Lubbock, projected by the Texas Water Development
Board in 1988, show a 60 to 78 percent increase in the City's population by the year 2040. As a result of
population growth, Lubbock's water use in high -use years is expected to increase 31.7 mgd assuming low
population growth.
Although historical population increases have not been as great as the Texas Department of Water
Resources (TDWR) 1980 population estimates (which projected a 23 percent increase between 1973 and
1990), increased population and ,decreasing water supplies have required the City to pursue new sources of
supply.
Findings of a 1978 report by Freese and Nichols estimated that Lake Alan Henry would have a firm yield
of 26,100 acre-feet per year when the lake is first constructed, and 20,600 acre-feet per year after 30
years of operation. if the reservoir is operated with a variable rate of demand, an estimated average
yield of 30,200 acre-feet per year could be withdrawn initially. After SO years of operation, the variable
demand yield would decrease to 27,000 acre-feet per year. This would provide Lubbock with a reliable
water supply of 23.3 mgd and an average water supply of 26.9 mgd. Assuming a worst case scenario of: a
63 percent allocation from CRMWA (22.1 mgd), an average withdrawal from the Sand Hills Field (8.9
mgd), and a firm yield from Lake Alan Henry (23.3 mgd), Lubbock would have a reliable supply of 34.3
mgd which would be sufficient to meet projected normal water demands through about the year 2040.
Based on the results of the water quality monitoring program by the United States Geological Survey and
Lubbock, it was concluded that water in Lake Alan Henry would be of better quality than water from Lake
Meredith.
The City has contracted with BRA to construct a dam and water supply reservoir at the Lake Alan Henry
site (the "Project"). The Project will provide Lubbock with an average of 26.9 mgd of municipal water
supply. It is estimated that the Project will require two years to construct and three years to fill, based
on average runoff conditions. At conservation storage the reservoir will contain 115,937 acre-feet of
water; mean depth at conservation storage will be approximately 40 feet; maximum depth will be
approximately 100 feet near the dam. The contributing drainage area is an estimated 394 square miles.
The Contract further provides for the City to acquire all of the land for the Project, upon which BRA will
be granted an easement to construct and operate the facilities, and to obtain all of the required permits.
All such permits have been obtained. Currently, all land for the construction of the dam and all but less
than 2% of the land to be inundated has been acquired.
-A-1-
Construction bids were received by BRA on December 6, 1990. Estimated costs of the Project are as
follows:
Dam Construction Costs $29,317,971
Contingencies @ 10% 2,931,737
Total Dam Cost $32,249,639
Access Road $ 343,640
Petroleum Conflicts 3,821,263
Pipeline Relocation 505,000
M do O Facilities 600,000
Total Construction Cost $37,719,563
Development, Permitting and Land Cost $11,350,000
Final Engineering (Design do Construction) 3,143,000
Oil/Gas Evaluation 100,000
Water Quality Control Plan 250,000
Contingencies and Management Fees 2 074 437
TOTAL 54 634 000
BRA has issued $56,655,000 Special Facilities (Lake Alan Henry) Revenue Bonds: $16,970,000 - Series 1999
and $39,685,000 - Series 1991 to provide funds for construction and establishment of reserve and repair
and replacement funds. The Special Facilities Revenue Bonds are payable from net revenues derived from
the operation and ownership of Lake Alan Henry, including payments to be made under the Contract to
BRA.
Under the Contract Lubbock will buy and pay for the entire amount of water which can be supplied by the
Project whether used or not. Payments to BRA during each Fiscal Year (beginning October 1 and ending
September 30) shall equal the sum of:
(i) Capital costs (debt service) payable during such Fiscal Year; plus
00 Maintenance and Operation Costs as adjusted, which, by the Authority's estimates
made prior to the beginning of such Fiscal Year, will be incurred during such Fiscal
Year; plus
(III) Management Fees for such Fiscal Year.
Payments under the Contract constitute operating expenses of the City's Waterworks System, payable
from gross revenues of the Waterworks System.
Additional facilities, which may be financed by the City directly or by BRA as Additional Special Facility
Revenue Bonds, will be required to transport and treat the water from Lake Alan Henry. Such facilities
are not included in the costs shown above.
The System ... Lubbocles Waterworks System is modern and efficient; property, plant and equipment are
va ul ed at $79,144,419, after depreciation and including cost of construction work in progress, at
September 30, 1990. Equipment includes remote control and communication facilities with centralized
operation and direction of the water supply system. The distribution system extends throughout the City
and Is designed for expansion. Present pumping capacity is 106 mgd.
Storage capacity includes a 1,200 acre-foot open storage reservoir near the water treatment plant, which
permits the storage of surplus water received from the "CRMWA" In off-peak periods. In addition, 14
ground storage reservoirs and 4 elevated steel storage tanks provide storage capacity of 61,350,000
gallons, entirely adequate for peak hour and fire protection requirements.
-A-2-
Water Consumption .. .
Average
Daily
Calendar
Consumpption
Year
1996
31.621
1997
31.990
1999
34.981
1989
36.367
1990
36.408
Maximum
Consumption
Day/Year
(mgd)*
65.707
57.007
60.399
69.124
79.003
*The City has water sales contracts for the sale of treated water to Reese Air Force Base, the Town of
Ransom Canyon and Lubbock County Water Control and Improvement District No. 1 (Buffalo Springs
Lake). Deliveries to these entities are included in the above calculations of water consumption; 1990
water consumption was:
Calendar
1990
Average
Daily
Consumption
(mgd)
Reese Air Force Base 0.592
Town of Ransom Canyon 0.170
Buffalo Springs Lake 1.435 million gallons total in 1990.
Water Treatment Facilities ... The water treatment plant for the treatment of raw water received from
CRMWA has a design capacity of 61.4 mgd and a maximum hydraulic capacity of 75 mgd. The plant has a
1,200 acre-feet open storage reservoir which permits storage of raw water during "off-peak" periods, and
2.0 million gallons ("mg") clearwell storage for treated water.
The plant also treats CRMWA raw water deliveries for the Cities of Brownfield, Lamesa, Levelland,
O'Donnell, Slaton and Tahoka prior to CRMWA delivery to those cities. Under contractual agreements
with these cities Lubbock is fully reimbursed for all costs of this treatment including capital costs and
debt service; percentage of participation in treatment plant costs as specified in the contracts are:
%
City
Participation
Brownfield
4.72%
Lamesa
4.70%
Levelland
5.98%
O'Donnell
0.59%
Slaton
3.38%
Tahoka
0.97%
20.34%
Lubbock 79.66%
100.00%
Calendar 1990
Water Deliveries
From the Lubbock
1990
Water Treatment Plant
U.S. Census
(million gallons)
9,560
415.55
10,809
438.74
13,986
767.15
1,102
41.78
6,079
290.04
2,868
104.94
44,403
2,048.20
186,206
10,710.65
230,609
12,759.95
Note: Lubbock's ground water supply does not require treatment (other than the addition of chlorine)
before introduction into the distribution system.
Water Treatment Plant Improvement Program
$16,120,000 Combination Tax and Waterworks System Subordinate Lien Revenue Certificates of
Obligation, Series 1991 (the "Waterworks Certificates") are being sold on April 23, 1991, to provide major
funding for upgrading and improving the water treatment plant.
Objectives of the program are to (1) enable the plant to comply with the Safe Drinking Water Act of 1996
("SDWA") and (2) upgrade the plant for safety, maintenance and repair.
The City's Consulting Engineers for the treatment plant program, HDR Engineering, Inc., Dallas, Texas,
have estimated cost of the project as:
-A-3-
Estimated
Safe Drinking Water Act
Cost
6.0 mg additional clearwell storage
$ 2,300,000
Filter modifications
1,250,000
Disinfection facilities
1,361,000
Various other Improvements, including:
Flow Split, Rapid Mix,
Sludge Piping, Polymer Feed,
Laboratory, Controls
Sub SDWA
1 839 000
-Total, .
6,770,000
Safety (includes chlorine/ammonia systems)
$ 607,000
Emergency Structural
$ 70,000
Maintenance and Repair
'-Powdered activated carbon
$ 392,000
Flocculators
1,973,000
Clarifiers
320,000
Electrical
373,000
Other
279,000
Sub -Total, Maintenance and Repair
$ 3,941,000
Miscellaneous
$ 630,000
Total Estimated Construction Cost
$12,018,000
Contingencx
2,040,000
n ineeringaand Allied Costs
2,106,000
Inflation to Construction Midpoint
906,000
Total Estimated Project Cost
$17,070,000
Sources of Funds for financing the project are estimated to be:
Proceeds of the Waterworks Certificates $16,120,000
Other Available Funds 950,000
Total $17,070,000
Water Rates ... The City will provide for debt service on the Waterworks Certificates by direct transfer
to the Interest and Sinking Fund from net revenues of the Waterworks System; the Waterworks
Certificates will be self-supporting. As a result, the City is evaluating the need for a water rate increase
effective 10-1-1991 to provide for this debt service.
This evaluation will take into account the following factors:
1. 20.34% of annual debt service on the Waterworks Certificates and other capital costs associated
with the treatment plant improvement program will be reimbursed the City under the contracts for
treatment of CRMWA water with Brownfield, Lamesa, Levelland, O'Donnell, Slaton and Tahoka, as
will an equal percent of any increased operation and maintenance expense.
2. The City has established a Rate Stabilization Reserve In the Water Enterprise Fund. At 9-30-1990
this reserve had a balance of $4,993,039 with a budgeted increase of $163,642 for Fiscal Year Ending
9-30-1991.
Ernst $ Young are preparing a report containing recommendations as to future water rate structure; the
final report is expected to be available in late Spring, 1991. See "Discussion of Projected Sewer Rates,
the Sewer System", above.
-A-4-
CONDENSED STATEMENT OF OPERATIONS
WATERWORKS SYSTEM
Operating Revenues $19,668,087 516,660,193 $15,391,553 $13,713,018 $13,993,294
Non -Operating Income 1 880 945 626.042 978,583 903 167 11 328 939
Gross income $21,549,032 $17,286,235 $16,360,139 $14,516pI951 13:312:223
Operating Expense
(excluding depreciation)(l) 8 700 920 8.407 336 9 494 108 9,963,219 10,348,979
Net Revenue 12 848 112 1 8,879,999 6,866,030 4,652,967 4,763,244
Water Meters 62,119 62,631 61,629 60,991 60,751
(1) Operating expense includes construction repayment costs and operating and maintenance charges paid
to CRMWA and to BRA.
Note: The City currently has no outstanding or authorized Waterworks System Revenue Bonds, however,
the City, does have $21,495,432 general obligation debt outstanding which was issued for waterworks
system purposes and which is supported by revenues of the System.
Water Rates (Monthly)
Present Rates Previous Rates
Effective Effective
Water Consumption October 1 1990 (1) October 1 1989 (1)
First 1,000 Gallons Minimum 7.31 6.76
Next 49,000 Gallons (per thousand) 1.53 1.28
Next 200,000 Gallons (per thousand) 1.37 1.12
All Over 250,000 Gallons (per thousand) 1.31 1.06
(1) The water rate increase effective October 1, 1989, and the subsequent increase effective October 1,
1990, have been designed to provide increased revenues to provide for debt service on, financing for and
maintenance and operation costs of Lake Alan Henry and other projected Waterworks System costs. The
water rate increase effective October 1, 1989, provided estimated increased gross revenues in excess of
$2,000,000 during Fiscal Year Ended September 30, 1990. The subsequent water rate increase effective
October 1, 1990, will provide additional estimated increased gross revenues in excess of $3,000,000 during
Fiscal Year Ended September 30, 1991, or an estimated combined annual increase in excess of $3,000,000.
The City is evaluating the need for a water rate increase effective 10-1-1991 to ensure the availability of
Waterworks System net revenues for debt service on the $16,120,000 Waterworks Certificates as debt
service will be directly provided from these net revenues. Factors enteringg into the evaluation will
include reimbursements the City will receive from Brownfield, Lamesa, Levelland, O'Donnell, Slaton and
Tahoka under their CRMWA water treatment contracts with Lubbock and the Waterworks Enterprise Fund
Rate Stabilization Reserve Account which had a balance of $4,993,058 at 9-30-1990.
Ernst do Young are preparing a report which will contain recommendations as to the City's future water
rate structure; the final report is expected to be available for City Council consideration in late spring,
1991.
s
-A-S-
Location and Area
The City of Lubbock, County Seat of Lubbock County, Texas, is located on the South Plains of West
Texas. Lubbock is the economic, educational, cultural and medical center of the area.
Population
Lubbock is the ninth largest City in Texas:
City of Lubbock
(Corporate Limits)
1910 Census
1,918
1920 Census
4,031
1930 Census
20,520
1940 Census
31,03
1930 Census
11,390
196E Census
128,491
1970 Census
149,101
19:0 Census
173,979
1990 Census
186,206
Metropolitan Statistical Area ("MSA") (Lubbock County)
1970 Census 179,295
1910 Census 211,631
199D Census 222,636
Agriculture
Lubbock is the center of a highly mechanized agricultural area with a majority of the crops irrigated with
water from underground sources. Principal crops are cotton and grain sorghums with livestock a major
additional source of agricultural income. The estimated 1990 cotton crop in the 23-county area around
Lubbock was approximately 2,653,000 bates; 1999 official production was 1,6011,200 bales (source: Plains
Cotton Growers, Inc., Lubbock, Texas). Three major vegetable oil plants located in Lubbock have a
combined weekly capacity of over 1,969 tons of cottonseed and soybean oil. Several major seed
companies are headquartered in Lubbock.
Over 204 manufacturing plants in Lubbock produce such products as semi -conductor products, vegetable
oils, heavy earth -moving machinery, irrigation equipment and pipe, farm equipment, paperboard boxes,
foodstuffs, mobile and prefabricated homes, poultry and livestock fads, boilers and pressure vessels,
automatic sprinkler system heads, structural steel fabrication and soft drinks.
Lubbock NSA Labor Force Estimates
(Source. Texas Employment Commissian)
February 3anuary December February 3anuary December
1991* 1991 1990 1991 1991 1990
Civilian Labor Force 115,000 113,900 116,900 113,200 113,200 113,400
Total Employment 109,700 107,900 111,400 107,800 103,300 110,400
Unemployment 3,300 6,000 3,300 3,400 4,900 31000
Percent Unemployed 4.6% 3.3% 4.1% 4.11% 4.)% 4.3%
• Subject to revision.
Estimated non-agricultural wage and salaried jobs In various catagories as of 3anuary, 1991, were:
Manufacturing 7,200
Mining 200
Construction 3,200
Transportation 5,300
Trade 28,300
Finance, Insurance and Real Estate 5,700
Services 23,300
Government 23,400
Total 98,600
A-6
Some larger industries in Lvbbock (with 300 employees or more) are:
Company
Texas Tech University
Lubbock Independent School District
Methodist Hospital
Reese Air Force base
City of Lubbock
St. Mary's Hospital
University Medical Hospital
Texas Instruments, Incorporated
Furr's Incorporated
United Supermarkets
Lubbock State School
U.S. Postal Service
Furr's Cafeterias
Southwestern bell Telephone Company
Fleming Companies, Inc.
ARA Food Services
Eagle Picher Industries
Southwestern Public Service Company
Marriott Corporation
McCrory's Stores
United Parcel Service
Lubbock Regional Mental Health
and Mental Retardation Center
Lubbock Avalanche -3ournal'
Energas Company
Texas Department of Human Services
Coca Cola -Dr. Pepper
Seven -Up bottling Company
• Full and part time.
•• Solitary and Civilian.
Education ... Texas Tech University .. .
Estimated
Employees
February,
Product
1991
rate University
607130
Public Schools
2,230
Hospital
2,800
U.S. Military Installation
1,99304
City Government
2,022
Hospital
1,647
Hospital
1,427
Electronics Manufacturer
1,314
Retail Groceries
1,300
Retail Groceries
1,070•
School for Mentally Retarded
979
Post Office
730
Cafeterias
623
Telephone Utility
340
Wholesale Groceries
4499
Food broker
423
Earth Moving Equipment
319
Electric Utility
363
Hotel/Housekeeping and Hotel Management
333•
Wholesale Distribution
349
Express Delivery Service
344
State of Texas Agency
3340
Daily Newspaper
330
Natural Gas Utility
322
State of Texas Agency
300
Soft Drink bottling 300•
Established in Lubbock in 1923, Texas Tech University is the fifth largest State-owned University in Texas
and had a Spring 1991 enrollment of 23,443. Accredited by the Southern Association of Colleges and
Schools, the University is a cc -educational, State -supported institution offering the bachelor's degree in
13E major fields, the master's degree in 106 major fields, the doctorate degree in 61 major fields, and the
professional degree in 2 major fields (law and medicine).
The University proper is situated on 431 acres of the 1,929 acre campus, and has over 160 permanent
buildings with additional construction in progress. Spring, 1991, faculty membership is 968 full-time and
712 part-time. Including the Health Science Center, the University's operating budget for 1990-91 is
$209.9 million of which $110.4 million is from State appropriations, book value of physical plant assets,
including the Health Science Center, is in excess of $300 million.
The medical school had an enrollment of 333 for the Spring Semester, 1991, not including residents; there
are 36 graduate students. The School of Nursing has a Spring Semester, 1991, enrollment of 270 including
the Permian Basin Program, located in Midland/Odessa; there were 42 graduate students. The Allied
Health School has a Spring Semester, 1991, enrollment of 120.
A-7
Other Education Information
The Lubbock Independent School District, with an area of 87.3 square miles, includes over 90% of the City
of Lubbock. September, 1990, enrollment was 30,684; there were approximately 2,830 total employees,
including 2,)08 certified (professional) personnel and 142,other employees. The District operates five
senior high schools, nine junior high schools, 40 elementary schools and other educational programs.
Scholastic Membership History'
Refined
Average
School
Student
Daily
Year
Membership
Attendance
1981-92
28,942
26,095
1942-93
2t,647
27,039
1923-84
28,424
27,133
198443
29,223
26,333
1935 -E6
29,209
27,321
1936-97
29,490
27,837
1927-98
30,933
2S,194
198E-89
30,92$
211,159
1999-90
30,361
28,37)
1990-91
30,694
NA.
'Source: uperintendent's Office, Lubbock Independent School District.
Lubbock Christian University, a privately owned, co-educational senior college located in Lubbock, has an
enrollment of 944 for the Spring Semester, 1991.
South Plains College, Levelland, Texas (South Plains Junior College District) operates a major off -campus
learning center in a downtown Lubbock, 7-story building owned by the College. Course offerings cover
technical/vocational subjects, and Spring Semester, 1991, enrollment is 1,272. The College also operates
a major off -campus learning center at Reese Air Force Base; course offerings are in primarily academic
subjects and Spring Session, 1991, enrollment is 39).
The State of Texas School for the Mentally Retarded, located on a 226-acre site in Lubbock, now consists
of 40 buildings with bed -capacity for 440 students; 439 students were in residence in March, 1991. The
School's operating budget for 1990/91 is in excess of $20.0 million; there are 979 professional and other
employees.
Transportation
Scheduled airline transportation at Lubbock International Airport is furnished by American Airlines, Delta
Airlines, Southwest Airlines, America West Airlines, Continental Express and American EA It-, non-stop
service is provided to Dallas -Fort Worth International Airport, Dallas Love Field, El Paso, Austin,
Amarillo, Midland -Odessa, Albuquerque and Phoenix. 1990 passenger boardings totaled 615,639.
Extensive private aviation services are located at the airport.
Rail transportation is furnished by the Atchison, Topeka and Santa Fe Railway Company and the
Burlington -Northern, Inc., with through service to Dallas, Houston, Kansas City, Chicago, Los Angeles,
and San Francisco. Short -haul rail service is also furnished by the Seagraves, Whiteface and Lubbock
Railroad. Texas, New Mexico and Oklahoma Bus Lines, a subsidiary of Greyhound Corporation, provides
bus service. Several motor freight common carriers provide service.
Lubbock has a well developed highway network Including Interstate 27 (Lubbock -Amarillo), 4 U.S.
Highways, 1 State Highway, a controlled -access outer loop and a county -vide system of paved
farm -to -market roads.
Government and Military
Reese Air Force Base, located 3 miles west of Lubbock, is an undergraduate Jet Pilot Tralning Base of the
Air Training Command. The Base covers over 3,000'acres and has approximately 1,614 military and
approximately 379 civilian personnel
State of Texas ... More than 25 State of Texas boards, departments, agencies and commissions have
offices in Lubbock; several of these offices have multiple units or offices.
Federal Government ... Several Federal departments and various other administrations and agencies have
offices in Lubbock; a Federal District Court is located in the City.
A -a
Hospitals and Medical Care
There are eight hospitals in the City with approximately 1,930 beds. Methodist Hospital is the largest and
also operates an accredited nursing school. Lubbock County Hospital District, with boundaries contiguous
with Lubbock County, owns the University Medical Center which it operates as a teaching hospital for the
Texas Tech University Medical School. There are numerous clinics and over 400 practicing physicians and
surgeons (M.D.) plus the Texas Tech University Medical School Staff, and over 90 dentists. A radiology
center for the treatment of malignant diseases is located in the City.
Recreation and Entertainment
Lubbock's Mackenzie State Park and over 63 City parks and playgrounds provide recreation centers,
shelter buildings, a garden and art center, swimming pools, a golf course, tennis and volley ball courts,
baseball diamonds and picnic areas, including the Yellowhouse Canyon Lakes system of four lakes and 300
acres of adjacent parkland extending from northwest to southeast Lubbock along the Yellowhouse Canyon.
There are several privately -owned public swimming pools and golf courses, and country clubs.
The City of Lubbock has developed a 36 square block area of approximately 100 acres adjacent to
downtown Lubbock under the Lubbock Memorial Civic Center program. Approximately 30 acres contain
the 300,000 square foot Lubbock Memorial Civic Center, the main City library building and State
Department of Public Safety Offices; a SO acre peripheral area has been redeveloped privately with office
buildings, hotels and motels, a hospital and other facilities.
Available to residents are Texas Tech University programs and events, Texas Tech University Museum,
Planetarium and Ranch Heritage Center exhibits and programs, Lubbock Memorial Civic Center and its
events, Lubbock Symphony Orchestra programs, Lubbock Theatre Center, Lubbock Civic Ballet, Municipal
Auditorium and Coliseum programs and events, the library and its branches, the annual Panhandle -South
Plains Fair, college and high school football, basketball and other sporting events; modern movie theatres.
Churches
Lubbock has approximately 223 churches representing more than 23 denominations.
Utility Services
Water and Sewer - City of Lubbock.
Gas - Energas Company.
Electric - City of Lubbock (Lubbock Power do Light) and Southwestern Public Service Company; and, in a
small area, South Plains Electric Co-operative.
Economic Indices (1)
Utility Connections
Building
Electric
Year
Permits
Water
Gas (LP&L
Only) (2)
1991
106,757,064
33,327
33,70
33,716
1992
130,720,399
36,172
34,630
)4,9i7
19:3
230,440,777
5E,034
34,927
37,2112
1984
212,333,170
39,262
36,340
39,037
1985
161,740,229
60,031
36,600
40,306
1986
139,317,232
60,731
36,900
41,739
1997
100,046,309
61,027
37,266
42,696
19:9
105.159,325
61,628
37,&36
43,791
1999
103,363,072-
61,357
60,312
44,31:
1990
140,855,719
62,17:
60,176(3)
43,301
(1) All data as of 12-31 unless otherwise noted; Sources: City of Lubbock; Lubbock Board of City
Development.
(2) Electric connections are those of City of Lubbock owned Lubbock Power and Light VLP&L") and do
not include those of Southwestern Public Service Company or South Plains Electric Cooperative.
(3) As of 11-30-90.
A-9
Building Permits by Classification
Residential Permits
Commercial,
inR a
Family
Duplexes
Apartments 1Total
Residential
Public
Total
No. Permits
No. Dwelling
and Other
Building
Year No. Units
Value
Units
Value
No. Units
Value
Units
Value
Permits
Permits
1981
655
47,760,510
13 23 •
1,389,500
749
20,415,552
1,426
69,365,562
37,191,502
106,757,064
1982
733
56,023,000
34( 68)
2,442,250
360
18,504,660
1,661
76,969,910
33,750,689
130,720,599
1983
1,166
88,830,735
133(270)
11,786,500
2,320
59,336,586
3,956
139,973,841
70,466,936
230,440,777
1984
919
65,815,113
360 12)
6,068,500
643
16,546,000
1,676
$8,429,613
123,923,533
212,353,170
1985
601
30,100,350
33( 66)
2,586,300
96
2,664,000
763
55,350,630
113,389,579
163,740,229
1986
3"
49,329,236
7( 14)
366,000
-0-
-0-
613
49,893,236
89,422,016
139,317,252
1937
308
44,466,937
-0-
-0-
-0-
-0-
508
44,466,937
55,379,372
100,046,309 h
1988
414
35,588,943
-0-
-0-
-0-
-0-
414
35,598,945
69,570,380
103,139,325 `
1989
368
31,345,373
6
440,800
-0-
-0-
374
31,786,175
73,376,897
105,363,072
1990
368
35,652,140
-0-
-0-
8
416,000
376
36,068,140
104,787,379
140,SSS,7l9
o
1Data s own under "No. Units"
is for each
individual apartment
dwelling
unit, and is not for separate
buildings; includes triplex
and quadruple
permits.
• As reported by City.
Source:
City of Lubbock, Texas.
EXHIBIT it
CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS §
§
COUNTY OF LUBBOCK §
§
CITY OF LUBBOCK §
I, the undersigned, City Secretary of the City of
Lubbock, Texas, DO HEREBY CERTIFY as follows:
1. That on the 28th day of February, 1991, a regular
meeting of the City Council of the City of Lubbock, Texas was
held at a meeting place within the City; the duly constituted
members of the Council being as follows:
B. C. MCMINN
T. J. PATTERSON
BILL MALOY
GARY D. PHILLIPS
JOAN BAKER
MAGGIE TREJO
M.J. ADERTON
MAYOR
MAYOR PRO TEM
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCIL14EMBER
all of said persons were present at said meeting, except the
following: none Among other
business considered at said meeting, the attached resolution
entitled:
"A RESOLUTION requesting financial assistance from the
Texas Water Development Board under the State
Revolving Fund loan program; authorizing the
filing of an application for assistance; and
making certain findings in connection therewith."
was introduced and submitted to the Council for passage and
adoption. After presentation and due consideration of the
resolution, and upon a motion being made by Councilman Maloy and
seconded by Councilman Aderton , the resolution was finally
passed and adopted by the Council to be effective: immediately
by the following vote:
voted "For" 0 voted "Against" 0 abstained
all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
2. That the attached resolution is a true and
correct copy of the original on file in the official records of
the City; the duly qualified and acting members of the Council
of the City on the date of the aforesaid meeting are those
persons shown above and, according to the records of my office,
advance notice of the time, place and purpose of the meeting
was given to each member of the Council; and that said meeting,
and the deliberation of the aforesaid public business, was open
to the public and written notice of said meeting, including the
subject of the above entitled resolution, was posted and given
in advance thereof in compliance with the provisions of Article
6252-17, Section 3A, V.A.T.C.S.
IN WITNESS WHEREOF, I have hereunto signed my name
officially and affixed the seal of said City, this the 28th day
of February, 1991.
Cit Secretary, Crof
Lub ock, Texas
(City Seal)
-2-
S ! 3 1 E
Resolution No. 3553
February 28, 1991
Item #21
A RESOLUTION requesting financial assistance from
the Texas Water Development Board under the
State Revolving Fund loan program;
authorizing the filing of an application for
assistance; and making certain findings in
connection therewith.
WHEREAS, the City Council of the City of Lubbock, Texas
hereby finds and determines that there is an urgent need for
the City to make certain capital improvements to the City's
wastewater facilities, and deems it necessary to apply to the
Texas Water Development Board for financial assistance under
the State Water Pollution Control Revolving Fund (the "SRF")
and;
WHEREAS, in accordance with the rules and regulations of
the Texas Water Development Board as set forth in State
Revolving Loan Fund Permanent Rules, Chapter 375, the governing
body of the City is required to adopt a resolution to accompany
such application; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK, TEXAS:
SECTION 1: That an application is hereby approved and
authorized to be filed with the Texas Water Development Board
seeking financial assistance under the SRF in the amount of
$50,600,000 to finance the costs of certain improvements and
extensions to the City's wastewater facilities (the "Project").
SECTION 2: That the City Manager of the City, Larry J.
Cunningham, is hereby designated the Authorized Representative
of the City and is hereby authorized to execute and submit to
the Texas Water Development Board the application for such
financial assistance; and said City Manager, together with bond
counsel, financial advisor, and consulting engineers named in
such application, is hereby authorized to appear before the
Texas Water Development Board in support of such application
and Project.
SECTION 3: That said City Manager as Authorized
Representative, is further specifically authorized to make the
required assurances to the Texas Water Development Board in
accordance with the rules, regulations, and policies of the
Texas Water Development Board.
SECTION 4: That a certified copy of this Resolution
shall be attached to the application for financial assistance
herein authorized to be prepared and submitted to the Texas
Water Development Board.
J
PASSED AND ADOPTED, this the 28th day of February, 1991.
CITY OF LUBBOCK, TEXAS
c
:Mayo
City Secretary
APPROVED AS TO FORM:
(City Seal) `
S-{ City Attorney
-2-
59326
EXHIBIT #2
CERTIFICATE OF COMPLIANCE
AND AFFIDAVIT OF AUTHORIZED REPRESENTATIVE
THE STATE OF TEXAS §
COUNTY OF LUBBOCK §
§
CITY OF LUBBOCK §
BEFORE ME, the undersigned Notary Public in and for the
State of Texas, on this day CAME AND PERSONALLY APPEARED, Larry
J. Cunningham, City Manager and Authorized Representative of
the City of Lubbock, Texas (the "City"), acting for and in
behalf of the City, pursuant to and by virtue of the provisions
of a Resolution adopted by the City Council of the City on the
28th day of February, 1991 (the "Resolution"), who, having by
me been duly sworn, says upon oath that in accordance with the
said Resolution and pursuant thereto, he, the said City Manager
and Authorized Representative, has assured and does hereby
assure the Texas Water Development Board that the City is
authorized and empowered to comply with the required conditions
for financial assistance from the Texas Water Development Board
under the State Water Pollution Control Revolving Fund for the
purpose of improving and extending the City's Sewer
(Wastewater) System (the "Project"), which Project will provide
benefits to the residents of the City, the State of Texas, and
other interests, and that the City will participate in the said
Project in accordance with all laws of the State of Texas, and
all rules, regulations, and published policies of the Texas
Water Development Board, and specifically further assures the
Texas Water Development Board that:
(1) the facts and representations set forth in the
application for financial assistance authorized by the
Resolution (the "application") are and will be true and
correct, to the best of his knowledge and belief;
(2) if such financial assistance is granted, the City
will cause the Project to be constructed in accordance with the
representations made to the Texas Water Development Board in
said application and accompanying exhibits; and
(3) the City will hold and save the State of Texas
harmless from any damages due to construction and maintenance
of the Project.
Larr Cunni0ham
City Manager
City of Lubbock, Texas
SUBSCRIBED AND SWORN TO BEFORE ME THIS 28TH DAY OF
FEBRUARY, 1991.
C ��
Not y Public in and fo the
State of Texas
.
NOTARY PUBLIC SEAL
My Commission Expires:
-2-
6 0 2 0 E
EXHIBIT 13
United States Environmental Notection Agency
Washington. DC 20460
Form Approved.
Preaward Compliance Review Report For
(FMB No. 2090-0014.
Wastewater Treatment Construction Grant
Expires 8.31.89
Read Instructions on ReveMe Beforem l in Form,
I. A. Applicant (Name and State)
B. EPA Project No.
City of Lubbock, Texas
SRF #3104
11. A. Are any civil rights lawsuits or complaints pending against applicant? Yes ❑x No
If "Yes,' list those complaints and the disposition of each complaint.
11. S. Have any civil rights compliance reviews been conducted during the two years YesQ No
prior to this application for activities which would receive EPA assistance?
if'Yes,' list those compliance reviews and status of each review.
Ill,/y Population Characteristics
Number of Pep le
t. A. Population of Entire Service Area
186,206
B. Minority Population of Entire Service Area
59,586
2. A. Population cuffentty served
1 ,1 1
S. Minocty Population Currently Being Served
58,707
3. A. Population to be served by project
186,206
Minority population to be served by project
4. A. Population to remain without service
0
9. Minority population to remain without service
0
S. 0 entire community under the applicant's jurisdiction is not served under the existing facilities
or will not be served under the proposed plan, give reasons why.
Areas not served by the existing wastewater system are areas either recently annexed or
sparsely populated. These areas will be served as development warrants or by citizen
request.. The wastewater treatment facilities to be constructed by SRF monies will be
designed to serve the population of the entire service area.
C. Give the schedule for future construction by which treatment system service will be provided to all inhabitants
within applicant's jurisdiction. ff there is no schedule, explain why.
Future construction of wastewater collection system mains will be as development
warrants, by citizen request, or as required by annexation policies.
D. Is another Federal Agency being asked or already providing financial assistance to any Yeso No
El
construction associated with this project?
6 wYes; list :tie other federal Agency(s), describe the associated work and the dollar amount of assistance.
E. Will all new facilities or alterations to existing facilities financed by this grant be YeS KNo
designed and constructed to be readily accessible and useable by handica pped persons?
E'No.' explain how a regulatory exception (40 CFR 7.70) applies.
Because of the intended use of the treatment components of the new facilities and
alterations to existing facilities, accessibility to these components by physically
handicapped persons will not be included in the design.
IV. Certification
I certify that the information given above is true and correct to the best of my knowledge or belief.
7 r fatse' t C., i
Signature of Authorized Official
8. Title of Authorized Officiai
C. Date
3
City Minagerningham
r7i
GM of Lubbock Texas
3
For he U.S. Environmental Protection Agency
Regional Director Of Civil Rights
Date
(] Approved [] Disapproved
,___]
EPA Form 47004 (Rev. 11.86) Previous editions are obsolete.
EXHIBIT 14
vEPA
UAW SW" &Mronrswnw Prowcwn Ae",
W"nown. oc 2Weo
SRF #3104
EPA Projeat Control Nimber
Certification Regarding
Debarment, Suspension, and Other Responsibility. Matters
The prospective participant m f*s to the best or Its knowledge and belief that It and its principals:
(a) Are rwt presently debarred. suspended, proposed for debamseM dedared Ineligible, or voluntarily
exduded from covered transactions by any Federal department or agency.
(b) gave not wtthhin a three year period preceding this proposal been convicted of or had a civil judgement
r"ered against them for commission of fraud or a criminal offense in connection with obtaining.
attempting to obtain, or performing a public (Federal, State, or Iooaf) transaction or contract under a
public transaction; violation or Federal or State anUtrW statutes or commission of ernbenfement,
theft, forgery, bribery, falsification or destruction d records. mak V false statements, or receiving
stolen property;
(c) Are not presenly Indicted for or otherwise atminally or dAy ctmrged by a governmem otly (Federal,
State. or Local) wtth oormllssi n yr any of the offenses enumerated in paragraph (1)(b) of this
mWication: and
(d) �c not
(Fi� a�thr�� local) terminated terrmi�ed for ing cause orrddeWA had one or more public
understand that a false statement on this certlgcatfon may be Grounds for rejection of this proposal or
termination of the award. In addition, under 18 USC Sec. 1001. a false statement may resat In a fine d up
to $10.000 or Imprisorunent for up to 5 years, or both
Larry J. Cunningham, City Manager, City of Lubbock, Texas
Typed N"" t Titse or hAhoiu►d Npr"W"tho
❑ I am unable to cerI4 to the above statements. My explanation Is attached.
EPA Form $700-49 (11-af
hAHIbIT f5
State Revolving Fund -- ASSURANCES
As authorized representative of City of Lubbock, Texas
I certify that
(name of legal entity)
City of Lubbock, Texas
(name of legal entity)
agrees to comply with the laws, regulations, policies and conditions relating to SRF assistance for
this project. I also certify that City of Lubbock, Texas
(name of legal
Administrative Requirements
1. Has the legal, institutional, managerial and fuiancial capability
to ensure adequate construction and operation and maintenance
(including replacement) of the wastewater treatment works, and
has analyzed the local share of the costs of the proposed waste-
water treatment facilities, including the financial impact on each
community and the residents of the service area.
2. Will give the Texas Water Development Board (TWDB), through
any authorized representative, access to and the right to examine
all records, books, papers, or documents related to the loan; and
will maintain an accounting system in accordance with standards
set forth by the Goverrimental Accounting Standards Board, will retain all
construction records for three years following the submittal of the final
funds requisition.
3. Will not dispose of, modify the use of, or change the terms of
the real property title, or other interest in the site and facilities
without permission and instructions from TWDB, until all financial
obligations to the state have been discharged.
4. Will include a covenant in the title of real property acquired with
SRF funds to assure nondiscrimination during the useful life of the
wastewater treatment works as required by the Civil Rights Act of
1964 (PL 88-352).
5. Will establish safeguards to prohibit employees from cuing their
positions for a purpose that constitutes or gives the appearance of personal
or organizational conflict of interest
6. Has not violated any Federal. State, or local law pertaining to
fraud. bribery, graft or collusion
Programmatic Requirements
7. Will require the facility to be designed to comply with the
'American National Specifications for Making Buildings and Facili-
ties Accessible to, and Usable by. the Physically Handicapped."
Number A117-1-196; and the Rehabilitation Act of.1973. PL 93-
112 (including Executive Orders 11914 and 11250).
8. Will obtain approval by TWDB of the final design drawings and
specifications before the project is advertised for bidding. Will
complete the project in accordance with the application, approved
facility plat. and approved plans and specifications. Will submit to
TWDB for prior approval project changes specified in 31 TAC
375.94.
9. Will provide and maintain competent and adequate engineer-
ing supervision and inspection. as approved by the Texas Water
Development Board, at the construction site to ensure that the
completed work conforms with the approved plans and specifica-
tions and will furnish progress reports and such other information
as TWDB may require.
10. Will operate and maintain the publicly -owned treatment works
in accordance with the minimum standards as required by the cognizant
Federal. State and local agencies for the maintenance and operation of
such facilities; and in accordance with the National Pollutant Discharge
Elimination Systems (NPDES) permit.
11. Will initiate procurement action for building all significant
elements of the project in accordance with the schedule approved
by the Texas Water Development Board upon receipt of a loan
commitment for a construction project. Will diligently pursue com-
pletion of the project. For design/construction projects, will meet
the date for design submittal to be established as a special loan
condition.
12. Will assure the treatment works for which this application is
requesting funds are made operational according to the project
schedule submitted herewith.
13. Will assure that, if assistance is for a new collection system
which is eligible under Section 211 of the Federal Water Pollution
Control Act. as amended, the existing population will connect to the
collection system as provided in a sewer use ordinance approved
by the Texas Water Development Board.
Statutory Requirements
14. Will comply with the provisions of Executive Order 11998
relating to evaluation of potential effects of any actions in a
floodplain and Executive Order 11990 relating to minimizing harm
to wetlands.
15. Will comply with Title VI of the Civil Rights Act of 1964 (PL 88-
352r and the Age Discrimination Act. PL 94-135.
16. Will comply, or have already complied, with the requirements
of Titles II and III of the Uniform Relocation Act of 1987 which provides
SRF-33 (4fMM) Page 1
for far and equitable treatment of persons displaced or whose property is
acquired as a result of Federal and federally assisted programs. These re-
quirements apply to all interests in real property acquired for project
purposes regardless of Federal participation in purchases.
17. Will comply with the provisions of the Davis -Bacon Act. the
Copeland Act. the Contract Work Hours and Safety Standards Act
regarding labor standards for federally assisted construction
subagreements.
19. WiD comply with the Clean Air Act. 42 U.S.C. 7506(c); the
Coastal Barrier Resources Act. 16 U.S.C. 3501 et seq.; the Coastal
Zone Management Act of 1972. PL 92-593. as amended; the
Endangered Species Act, 16 U.S.C. 1531 et seq.; the Farmland
Protection Policy Act, 7 U.S.C. 4201 et seq.; the Fish and Wildlife
Coordination Act, PL 85-624, as amended; the Safe Drinking
Water Act, section 1424(e), PL 92-523. as amended; the Wild and
Scenic Rivers Act. PL 90-542, as amended; and the Single Audit
Act of 1994, PL 98-502.
19. Will comply with the Demonstration Cities and Metropolitan
Development Act of 1966, PL 89-754. as amended.
20. Will comply with Section 306 of the Clean Air Act and Section
508 of the Clean Water Act, including Executive Order 11738,
Administration of the Clean Air Act and the Federal Water Pollution
Control Act with respect to Federal Contracts, Grants, or Loans.
21. Willin conjunction with TWDB assure compliance with Section 106
of the National Historic Preservation Act of 1966, as amended (16 U.S.C.
470), Executive Order 11593 relating to Protection and Enhancement of
the Cultural Environment, and the Archaeological and Historic Preserva-
tion Act of 1974 (16 U.S.C. 469a-1 et seq.); the Historic Sites Act.
22. Will comply with Section 13 of the Federal Water Pollution Control
Act of 1972, which provides that no person in the United States shall, on
the basis of sex, be excluded from participation in, be denied the benefits
of, or be otherwise subjected to discrimination in any program under the
Act.
23. Will comply with all applicable requirements of all other state
and federal laws, executive orders, policies and regulations gov.
erning this program, including 31 TAC 375 et seq.
24. Will report to TWDB if services of any individual, organization
or unit of government whose name appears on the muter list of
debarments, suspensions, and voluntary exclusions have been
used for any portion of the work on the project. (See: 40 CFR Part
32. Debarment and Suspension Under EPA Assistance Programs;
and Executive Order 12549.)
25. Will comply with Executive order 11246, Equal Employment
Opportunity; and Executive orders 11625 and 12138, Women's
and Minority Business Enterprises.
26. Will develop and submit for TWDB approval a system of user
charges which assures that each recipient of waste treatment
services within the loan recipient's jurisdiction will pay its propor-
tionate share of operation and maintenance (including replace-
ment) costs, in accordance with Section 204(bxl) of the Federal
Water Pollution Control Act; will adopt and implement the user charge
System prior to placing the treatment works in operation.
27. 1n accordance with Section 204(d)(2) of the Federal Water
Pollution Control Act, will certify to TWDB on the date one year after
initiation of operation of the project whether the project meets the
performance standards.
CERTIFICATION
I certify that I am a duly authorized representative of the within -named legal entity, and that
I have read and understand these requirements and assurances.
Name of Legal Entity
Name and Title of Duly Authorized Rcpreseivative
City of Lubbock, Texas
Larry J. Cunningham
City Manager
Signature
Date
a *__ —I, a �
1 3/-S/-g/
SRF-33 (V2QI9t)) Page 2
EXHIBIT 16a SRF-34
(05/10/90)
ERWBCP SCHEOUIE
FOR PROJECT "A"
A. Loan Ooamitment
B. Submit Plans and Specifications
C. Submit UE rr Charge System
D. Submit Water Conservation Man
E. Acquire Sites/Easements
F. Contir,genrt Award of Construction Contract
G. Start Construction
H. Ccxzplete Construction
I. Project Duration from start of
Design to Erd of Construction
J. Certification of Project Performance
Loan Applicant: City of Lubbock, Texas
lEstimated Date
April 18,1991
April 22, 1991
October 01, 1991
September 01, 1991
N/A
October 16, 1991
November 13, 1991
May 01, 1992
557 Days
May 01, 1993
To estimate dates when project milestones will be reached, assure that a loan cc mitment
will be made 120 days after submittal of the Final Engineering Plan and Final E.I.D. and
that a total of 210 days will be required fmn submittal of plans and specifications to
authorization to award construction contracts (See Attachment). The loan mast be closed
before the start of construction. If there is a lapse of more than 270 days from loan
commitment to loan closing you will be required to request an extension of time.
EXHIBIT 16b
SRF-34
(05/10/90)
FOR PROJECT
Estimated Date
A.
Loan CbtmAtmnt
April 18, 1991
B.
Submit Plans and Specifications
October 22, 1991
C.
Submit Us= Charge System
October 01, 1991
D.
Submit Water Conservation Plan
September 01, 1991
E.
Acquire Sites/Easements
February 07, 1992
F.
Conths4ent Award of Construction Contract
May 19, 1992
G.
Start Construction
June 16, 1992
H.
Clete Construction
July 01, 1994
I.
Project Duration frrxn start of
Design to Erd of Construction
1,348 nays
J.
Certification of Project PerfonnarKm
July 01, 1995
Loan Applicant: City of Lubbock, Texas
To estimate dates when project milestones Will be reached, assma that a loan commitment
will be made 120 days after submittal of the Final Engineering Plan and Final E.I.D. and
that a total of 210 days will be required from submittal of plans and specifications to
authorization to award constriction contracts (See Attachment). The loan mast be closed
before the start of construction. If there is a lapse of more than 270 days from loan
Commitment to loan closing you will be required to request an extension of time.
EXHIBIT 16c SRF-34
(05/10/90)
FOR PROJECT "C"
Estimated Date
A.
Loom Commitment
April 18, 1991
B.
Submit Plans and Specifications
October 22, 1992
C.
Submit Uz= Charge System
October 01, 1991
D.
Submit Water Conservation flan
September 01, 1991
E.
Acquire Sites/Easements
N/A
F.
Contiryent Award of Construction Contract
May 18, 1993
G.
Start Construction
June 15, 1993
H.
Complete Construction
May 01, 1995
I.
Project Duration fran start of
Design to End of Construction
1,287 Days
J.
Certification of Project Performanoe
May 01, 1996
Loan Applicant: City of Lubbock, Texas
To estimate dates when project milestones will be reached, assume that a loan oarmitment
will be made 120 days after submittal of the Final Engineering Plan and Final E.I.D. and
that a total of 210 days will be required from submittal of plans and specifications to
authorization to award construction contracts (See Attachment). The loan mist be closed
before the start of construction. If there is a lapse of more than 270 days from loan
coundtment to loan closing you will be required to request an extension of time.
EXHIBIT Va SRF-35
SRF PA)MENT SQ EOUIR (05/10/90)
FOR PROJECT "A"
Name City of Lubbock, Texas SRF No. 3104
Loan Connitment Date April 18, 1991 loan Closing Date November 01, 1991
Contract Award Date October 16, 1991 Start Construction November 13, 1991
To estimate the dates when you will request loan payments, assume that a loan commitment
will be made 120 days after the submittal of the Final Engineering Plan and Final E.I.D
and that a total of 210* days will be required from submittal of plans and
specifications to authorization to award construction contract-;. (If this results in a
lapse of more than 270 days from loan commitment to closing it will be neoessa for you
to request an extension of time.) Zse first payment may be requested after loan
closing.
Payments may be requested only for costs which have been inaur+ed. The first request
may include reimbursement for approved SRF expenses incurred prior to loan closing
(preparation of engineering report, project design, etc.). Subsequent payment requests
should be for construction costs as they are incurred.
Jan
Feb
Mar
Apr
May
June
July
IM
Sept
19
- SEE ATTACHED -
Complete Contraction
Payment Schedule
May 01, 1992
19
19
* Please Refer to "Optin n Schedule Timing Criteria" attack--,d. Lo the SRF-34
LUBBOCK, TEXAS
MONTHLY BREAK -DOWN OF PROJECT COSTS
SUBSTITUTE FOR FORM SRF 35
JAN 22, 1991
PROJECT A
MONTH
Nov 91
DEC
JAN 92
FEB
MAR
APR
ESTIMATED DRAW
$1,035,000
215,000
110,000
110,000
110,000
75,000
TOTAL PROJECT A COST $1,655,000
EXHIBIT t7b SR.r-35
S'RF FAYMER ' SCHEEMB (05/10/90)
FOR PROJECT "B"
Name City of Lubbock, Texas SRF No. 3104
L en Commitment Date April 18, 1991 Loan Closing Date June 01, 1992
Contract Award Date
May 19, 1992
Start Construction June 16, 1992
to estimate the dates when you will r+eque:t loan payments, assume that a loan ca mtment
will be made 120 days after the submittal of the Final Engineering Plan and Final E.I.D
and that a total of 210* days will be required frnrn submittal of plans and
..?ecifications to authorization to award construction contracts. (If this results in a
lapse of more than 270 days from loan ccmitmart to closing it will be neoessary for you
to request an extension of time.) The first payment may be requested after loan
closing.
Payments may be requested only for costs which have been incurred. The first request
may include refor approved SRF expenses incurred prior to loan closing
(preparation of engineering report, project design, etc.) . Subsequent payment requests
should be for construction costs as they are incurred.
Jan
Feb
Mar
Apr
may
June
July
Aug
Sept
Oct
Nov
Payment Schedule
19 19
- SEE ATTACHED -
Complete Clorztniction July 01, 1994
19
* Please Refer to "c►ptin n Schedule Timing Criteria't attad:ad Lo the SRF-34
LUBBOCK, TEXAS
MONTHLY BREAK -DOWN OF PROJECT COSTS
SUBSTITUTE FOR FORM SRF 35
JAN 22, 1991
PROJECT B
MONTH
NOV 91
DEC
JAN 92
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN 93
FEB
MAR
APR
HAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN 94
FEB
MAR
APR
MAY
JUN
ESTIMATED DRAW
0
0
0
0
0
0
0
2,480,000
1,915,000
1,355,000
1,650,000
3,080,000
2,730,000
3,115,000
2,695,000
2,260,000
3,810,000
3,225,000
3,130,000
2,140,000
590,000
340,000
465,000
295,000
345;000
345:000
305,000
305,000
300,000
155,000
155,000
1,940,000
TOTAL PROJECT B COST $39,125,000
EXHIBIT 17c SRF-35
SRF PAYMU SCEOL7ULE (05/10/90)
FOR PROJECT "C"
Name City of Lubbock, Texas SRF No. 3104
Loan C+cmrdtment Date April 18, 1991 Loan Closing Date June 01, 1993
Contract Award Date Hav 18. 1993 Start Oonstnxtion June 15, 1993
Zb estimate the dates when you will request loan payments, asszune that a loan cormdtment
will be made 120 days after the submittal of the Final Engineering Plan and Final E.I.D
and that a total of 210* days will be required from submittal of plans and
specifications to authorization to award construction contracts. (If this results in a
lapse of more than 270 days frrrn loan eoamitme*dt to closing it will be necessary for you
to request an extension of time.) M-te first payment may be requested after loan
closing.
Payments may be requested only for costs which have been inairred. The first
may include reimbursement for approved SRF expenses incurred prior to loan closing
(preparation of engineering report, project design, etc.). Subsequent payment requests
should be for construction costs as they are incurred.
�ayment Schedule
19 19 19
Jan - SEE ATTACHED -
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
Ccplete Construction May 01, 1995
* Please Refer to "OptiYnra Schedule Timing C�riteria'l attacb3d Lo the SRF-34
LUBBOCK, TEXAS
MONTHLY BREAK -DOWN OF PROJECT COSTS
SUBSTITUTE FOR FORM SRF 35
JAN 22, 1991
PROJECT C
MONTH
NOV 91
DEC
JAN 92
FEB
MAR
APR
HAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN 93
FEB
MAR
APR
HAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN 94
FEB
MAR
APR
HAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN 95
FEB
MAR
APR
ESTIMATED DRAW
0
0
0
0
0
0
0
0
0
0
0
0,
0
0
0
0
0
0
0
910,000
470,000
325,000
400,000
775,000
685,000
785,000
675,000
565,000
965,000
815,000
785,000
525,000
130,000
65,000
95,000
55,000
65,000
65,000
55,000
55,000
60,000
495,000
TOTAL PROJECT C COST $9,820,000
EXHIBIT Vd
SRF-35
(05/10/90)
FOR PROJECTS "A", "B" AND "C" COMBINED
Name Cites of Lubbock. Texas SRF No. 3104
Loan Commitment Date April 18, 1991 Iran Closing Date
Contract Award Date
Start Construction
To estimate the dates when you will request loan payments, assm'e that a loan commitment
will be made 120 days after the submittal of the Final Engineerirg Plan and Final E.I.D
and that a total of 210* days will be required from submittal of plans and
specifications to authorization to award construction contracts. (If this results in a
lapse of more than 270 days frcxn loan ooamitment to closing it will be necessary for you
to request an extension of time.) Mie first payment may be rested after loan
closing.
Payments may be requested only for costs which have been incurred. The first request
may include reimbursez=t for approved SRF expenses incurred prior to loan closing
(preparation of engineering report, project design, etc.). Subsequent payment requests
should be for construction costs as they are incurred.
Payment Schedule
19 19
Jan - SEE ATTACHED -
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
Complete Construction may 01, 1995
19
* Please .Refer to "Optimum Schedule Timing cx'iterial' attach3d Lo the SRF-34
LUBBOCK, TEXAS
MONTHLY BREAK -DOWN OF PROJECT COSTS
SUBSTITUTE FOR FORM SRF 35
JAN 22, 1991
MONTH TOTAL ALL
PROJECTS
NOV
91
1,035,000
DEC
215,000
JAN
92
110,000
FEB
110,000
MAR
110,000
APR
75,000
HAY
0
JUN
2,480,000
JUL
1,915,000
AUG
1,355,000
SEP
1,650,000
OCT
3,080,000
NOV
2,730,000
DEC
3,115,000
JAN
93
2,695,000
FEB
2,260,000
MAR
3,81.0,000
APR
3,225,000
MAY
3,130,000
JUN
3,050,000
JUL
1,060,000
AUG
665,000
SEP
865,000
OCT
1,070,000
NOV
1,030,000
DEC
1,130,000
JAN
94
980,000
FEB
870,000
MAR
1,265,000
APR
970,000
MAY
940,000
JUN
2,465,000
JUL
130,000
AUG
65,000
SEP
95,000
OCT
55,000
NOV
65,000
DEC
65,000
JAN
95
55,000
FEB
55,000
MAR
60,000
APR
495,000
TOTAL $50,600,000
EXHIBIT f8
SRF-10Tc2ss (6+'V")
Affirmative Action Plan
for
Meeting SRF MWBE Participation Goal
Loan Applicant: City of Lubbock, Texas
Address: P. 0. Box 2000
Project Number: 3014
City: Lubbock State: Texas Zip: 79457 Phone: (806 ) 767-3000
understand that it is City of Lubbock, Texas responsibility to comply
an applicant
with all state and federal regulations and guidance In meeting the 8% MWBE participation
goal.
A. Total Project cost: $ 50,600,000
B. Total SRF loan amount: $ 50.600,000 X 8% _ $ 4,048,000 (total MWBE _)
C. The 8% MWBE participation amount will be met through the following: (check the ap-
propriate box and indicate the total project dollar amount from that category that will go
toward meeting the 8% MWBE particapation goal.)
1. Legal
MWBE Contract Amount $
2. Administrative
MWBE Contract Amount $
3. Engineering
MWBE Contract Amount $
x 4. Construction
MWBE Contract Amount $ 4 048,000
5. Other:
MWBE Contract Amount $
Total (should match line B.) $ 4,048,000
❑ Executed contracts for MWBE services are attached.
❑ Proposed contracts for MWBE services are attached.
M7A/
4S.S.'. v(Avd%ur1zeVR pVdentstivc Date 7
Larry J. Cunningham, City Manager
(Type) Audiorized Repreaentative/rid e
FXHIRIT /9a
CITY OF LU8B0(7(, TEXAS
PROJECT A
$1,655,000 PROPOSED TAX AND SEWER SYSTEM SUBORDINATE
LIEN REVENUE CERTIFICATES OF OBLIGATION, SERIES 1991;
DATED SEPTEMBER 15, 1991
CALCULATION OF INTEREST DOE BASED ON 5.501 (360 DAY YEAR)
AND THE DRAfNDO# SCSEDOLE FIN SRF 35 (PROJECT 1)
DAYS TIL INT.
PAYABLE
NOV 91
30
285
1,035,000
45,065.63
DEC 91
30
255
215,000
8,376.04
JAN 92
30
225
110,000
3,781.25
FEB 92
30
195
110,000
3,277.08
MAR 92
30
165
110,000
2,772.92
APR 92
30
135
75,000
1,546.E8
MAY 92
30
JUN 92
30
JUL 92
30
LUG 92
15
1,655,000.00
64,319.79
PROJECT B
$39,125,000 PROPOSED TAX AND SEWER SYSM SM2DIMATE
UZ IREVENOE CERTIFICATES OF OBLIGATION, SERIES 1992
DATED APRIL 15, 1992
CALCMATION OF INTE = DUE BASED ON 6.751 (360 DAY YEAR)
AID TEE DRAWM SCSEDULE FROM SRF 35 (PROJECT B)
DAYS TIL INT.
y"THLY
PAYABLE
DRAW
JOY 92
30
255
2,480,000
113,575.00
JUL 92
30
225
1,915,000
90,799.06
AM 92
30
195
1,355,000
49,542.19
SEP 92
30
165
1,650,000
51,046.8E
OCT 92
30
135
3,080,000
77,962.50
NOV 92
30
105
2,730,000
53,746.83
DEC 92
30
75
3,115,000
43,804.69
JAM 93
30
45
2,695,000
22,739.06
FEB 93
15
15
2,260,000
21,290,000
6,356.25
M 93
15
180
2,260,000
76,275.00
X11 93
30
150
3,910,000
107,156.25
AM 93
30
120
3,225,000
72,562.50
MY 93
30
90
3,130,000
52,$18.75
JU 93
30
60
2,140,000
24,075.00
JM 93
30
30
590,000
3,313.75
AM 93
15
15
340,000
34,515,000
956.25
AUG 93
15
190
340,000
11,475.00
SEP 93
30
165
465,000
14,395.94
OCT 93
30
135
295,000
7,467.19
N09 93
30
105
345,000
6,792.19
DEC 93
30
75
345,000
4,851.56
JAN 94
30
45
305,000
2,573.44
FEB 94
15
15
305,000
36,575,000
857.31
FEB 94
15
180
305,000
10,293.75
EAR 94
30
165
300,000
9,231.25
APR 94
30
135
155,000
3,923.44
EAY 94
30
105
155,000
3,051.56
JUN 94
30
75
1,%D,000
39,13,000
27,231.25
JOL 94
30
45
AM %
15
15
504,562.50 INT. DOE 2-1"3
1,055,362.50 INT. DOE 3-15-93 1,559,925.00 M DUE FIB 9-30-93
1,213,284.3E INT. DOE 2-15-94
1,233,237.50 W. DOE 3-15-94 2,501,521.38 W DOT M 9-30-94
%&.AOW
PROJECT C
$9,320,000 PYOP06BD TAX AND SBfiEit SYSTEK SO®ORDUM
Ua ABVM CERTIFICATES OF OBLIGATION, SUM 1993;
DATED APBIL 15, 1993
CW=10K OF IiTO= DOE LM 016.751 (360 DAY TW)
AND ME DBAMM SME M MX SBF 35 (PgOJECP C)
HAYS TIL in.
PAYABLE
JOT 93
30
255
JUL 93
30
225
ADG 93
30
195
SEP 93
30
165
OCT 93
30
135
NOV 93
30
105
DEC 93
30
75
JAX 94
30
45
FES 94
15
15
m 94
15
180
w 94
30
150
APB 94
30
120
MY 94
30
90
JUN 94
30
60
JUL 94
30
30
AOG 94
15
15
At1G 94
15
180
SEEP %
30
165
OCT %
30
135
NOV 94
30
105
DEC 94
30
75
JAY 95
30
45
FED 95
15
15
FES 95
15
180
XAY 95
30
165
APB 95
30
135
XAY 95
30
105
JOT 95
30
75
JUL 95
30
45
AM 95
15
15
ra1TBLY
DRAW
910,000
470,000
325,000
400,000
775,000
685,000
795,000
675,000
565,000
$65,000
%5,000
815,000
785,000
525,000
130,000
65,000
65,000
95f 00D
55,000
65,000
65,000
55,000
55,000
55,000
60,000
495,000
5,590,000
9,975,000
9,265,000
9,520,000
43,509.3E
19,528.13
11,SS2.S1
12,375.00
19,617.19
13,495.94
11,039.06
5,695.31
1,589.06
19,063.75
27,140.63
18,337.50
13,246.SS
5,906.25
731.25
182.51
2,193.75
2,939.06
1,392.19
1,279.69
914.06
464.06
154.69
1,856.25
1,356.25
12,529.69
0.00
0.00
139,021.58 W. DOE 2-15-%
273,276.56 IN'!. = S-15-% 412,298.44 IU DOE FIE 9-30-94
308,S6S.75 IV. DOB 2-15.95
328,935.94 DR. DOE 3-15-0 637,SO4.69 W DOE M 9-30-%