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HomeMy WebLinkAboutResolution - 655 - Notice Of Sale, Etc. - General Obligation Bonds - Series 1981 - 11/13/1980' JPB:bs RESOLUTION #-655 - 11/13/80 OV 1 RESOLUTION A RESOLUTION by the City Council of the City of Lubbock, Texas, relating to procedures to be followed in the sale of $16,750,000.00 City of Lubbock, Texas, General Obligation Bonds, Series 1981, dated March 1, 1981 (being to the extent of $550,000.00 thereof an installment out of bonds authorized at an election of May 21, 1977, and being to the extent of $16,200,000.00 thereof an installment out of bonds authorized at an election of August 9, 1980); providing the forms of procedures and in substantial form all instruments for said Series 1981 Bonds; stating the intent and desire of the City Council to proceed with such Series 1981 expeditiously and as appropriate within their discretion; reserving the right to make corrections and insubstantial and immaterial changes and modifications in all such Series 1981 instruments to reflect the true facts, circumstances and dates at time of ultimate execution, resolving other matters incident and related to such purpose, including the filing of an action under the provisions of Vernon's Ann.Civ.St., art. 717m- 1; and providing an effective date for this Resolution. WHEREAS, this City Council has determined and does hereby determine that: (1) It should proceed with the authorization of bonds to be known as "City of Lubbock, Texas, General Obligation Bonds, Series 1981", dated March 1, 1981; and, (2) That it is necessary and expedient that the instruments and proce- dures necessary to the accomplishment of such purpose be now defined so that same may be subjected to judicial consideration, reserving the right to make all corrections, modifications and changes necessary so that said instruments at the time ultimately enacted, executed or delivered shall accurately reflect conditions at the time of such enactment, execution or delivery, provided such corrections, modifications and changes shall not substantially or material effect the substance of the proposed instruments; and, (3) That a clear and concise declaration of the intentions and desires of the City Council as to such proposed General Obligation Bonds should be of record; and, (4) That form of the Ordinance to be hereafter enacted setting all terms and conditions of the Series 1981 General Obligation Bonds be provided; as well as prescribing the form of notice to be published in accordance with Article VIII, Section 5 of the City Charter and the form of notice of sale to be distributed to proposed bidders, as well as all further instruments neces- sary to the sale and delivery of said Series 1981; and, (5) It should institute an action under Vernon's Ann.Civ.St., art. 717m-1, in order that all matters possible arising in connection with the issuance of Series 1981 Bonds may be validated and confirmed; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1. That the recitals and determinations made in the preamble hereof are found to be true and are adopted as the findings of this governing body. SECTION 2. That this Council proposes to proceed as quickly as pos- sible, subject to the Judicial procedures contemplated hereby, with the sale and delivery of $16,750,000.00 City of Lubbock, Texas, General Obligation Bonds, Series 1981, dated March 1, 1981. SECTION 3 That the City Attorney is dixected to institute and file an appropriate action, under the provisions of Vernon's Ann.Civ.St., art. 717m-1, to approve and validate the bonds now sought to be issued and obtain appropriate relief against the institution of suits which would or might pre- vent the carrying out of the wishes of the electorate, all in the manner pro- vided by said law. SECTION 4.. That this Council proposes to enact at the soonest possible and appropriate date, in substantially the form hereafter set forth, an Ordi- nance authorizing the issuance of $16,750,000.00 City of Lubbock, Texas, General Obligation Bonds, Series 1981; said Ordinance being attached as Exhibit R-1 to this Resolution and to which attachment reference is here made for all purposes. SECTION 5. That the enactment of said aforesaid Ordinance upon first reading shall be reflected upon the minutes of the City Council of the City of Lubbock, Texas, substantially in the form and manner set forth in the minutes being attached as Exhibit R-2 to this Resolution and to which attachment reference is here made for all purposes. SECTION 6. That the enactment of said aforesaid Ordinance upon second and final reading shall be reflected upon the minutes of the City Council of the City of Lubbock, Texas, substantially in the form and manner set forth in the minutes being attached as Exhibit R-3 to this Resolution and to which attachment reference is here made for all purposes. SECTION 7. That this Council in compliance with charter requirements proposes thereafter to issue and approve a notice of sale, which except for the date and time of sale shall be in substantially the form attached as Exhibit R-4 to this Resolution and to which attachment reference is here made for all purposes. That such notice is the format of the notice which the City proposes to use in meeting the requirement of Article VIII, Section 5 of the City Charter, in that such notice would be published (after being completed) once each week for a period of thirty days in the Lubbock Avalanche -Journal, a newspaper of general circulation in and published in the City of Lubbock. That the date and time to be set in such notice for the receipt of bids would be not less than 30 days following the date of the first publication; that the time of day established for the sale shall be between the hours of 9 A.M. and 4 P.M.; that the City Council proposes to convene in open session, after notice thereof has been given in compliance with Article 6252-17, V.A.T.C.S. for the purpose of opening and considering bids or proposals for the purchase of such bonds. SECTION 8. That additionally this Council proposes to cause to be distributed an Official Statement, Notice of Sale and bidding documents in substantially the form attached as Exhibit R-5 to this Resolution and to which attachment reference is here made for all purposes. The Council reserves the right to cause such instrument to be modified and amended to reflect at time of distribution current information as to all matters included, but no changes of.a substantial or material nature at law are contemplated. That said documents shall be distributed to investment bankers and others who would normally submit proposals for the purchase of bonds of the kind and character to be offered for sale and the City proposes to cause such distri- bution to be made. That prior to the distribution of said Notice of Sale and Bidding In- structions, Official Bid Form and Official Statement, all as contained in said instrument attached as Exhibit R-5, the Council will by resolution approve the form and content of the above and authorize First Southwest Company, Dallas, Texas, to distribute these said instruments to prospective bidders for and purchaser of the Series 1981 general obligation bonds which are the subject of this Resolution. The form of said Resolution shall be substantially as reflected by the instrument attached hereto as Exhibit R-6 to this Resolution and to which attachment reference is here made for all purposes. SECTION 9. That subsequent to the final enactment of the Ordinance attached .to this Resolution as Exhibit R-1, the Council hereby authorizes and approves the execution by the officer indicated of a General Certificate substantially in the form attached hereto as Exhibit R-7 to this Resolution and to which attachment reference is here made for all purposes. SECTION 10: That the Council directs, authorizes and approves the execution, issuance and delivery at the appropriate time or times of a Debt Service Requirement Schedule substantially in the form attached hereto as Exhibit R-8 to this Resolution and to which attachment reference is here made for all purposes. SECTION 11. That the Council after receipt of bids, opening thereof and acceptance of the best bid received, subject to the authority of the Council to reject any or all bids, shall upon acceptance enact an ordinance substantially in the form reflected by Exhibit R-9 to this Resolution and to which attachment reference is here made for all purposes. It is by this instrument that the Council shall adopt and 'specify the interest rates the bonds are to bear (as established in the bid documents). SECTION 12. That the minutes reflecting passage upon first reading of the ordinance immediately above described shall be substantially as reflecte by Exhibit R-10 to this Resolution and to which attachment reference is here made for all purposes. SECTION 13. That the minutes reflecting passage upon second and final reading of the ordinance immediately above described shall be substantially as reflected by Exhibit R-11 to this Resolution and to which attachment reference is here made for all purposes. SECTION 14. That as of the date of sale of said.bonds the Council shall enact a Resolution approving the form and content of the Official Statement, which Resolution shall be substantially as reflected by instrument attached to this Resolution .as Exhibit R-12 and to which attachment reference is here made for all purposes. SECTION 15. That the Council authorizes and directs that at the appro- priate time a Certificate as to Official Statement by the officer named there- on substantially in the form reflected by instrument attached to this Resolution as Exhibit R-13 and to which attachment reference is here made for all purposes. E 1 SECTION 16.' That the Council further proposes, during the procedures } leading to ultimate sale and delivery of the $16,750,000.00 City of Lubbock, " Texas, General Obligation Bonds, Series 1981, to utilize the additional instruments in substantially the forms attached (which shall be current as of the date of execution) as follows: (1) Treasurer's Receipt attached to this Resolution as Exhibit R-14 and to which attachment reference is here -made for allpurposes; and, (2) Signature and No -Litigation Certificate attached to this Resolution as Exhibit R-15 and to which attachment reference is here made for all purposes SECTION 17. That the language of each instrument proposed to be utilize as included in this Resolution, is in each instance adopted as part of this Resolution and as the findings and determinations hereof. The Council reserves the right to make appropriate corrections and insubstantial and immaterial changes and modifications in all such instruments so that each will reflect the true facts, circumstances and dates at the time of ultimate execution. SECTION 18. The City Secretary -Treasurer of the',City of Lubbock, Texas, is authorized and directed to prepare, execute and deliver, such certificates as to the authenticity as may be subsequently required or appropriate upon passage of this Resolution, or thereafter, of copies of this Resolution or of any instrument attached as an exhibit to this Resolution. SECTION 19. That as to all documents and instruments above proposed to be executed, submitted or delivered as set forth hereinabove, the Council here reserves the right to complete the blanks provided therein, correct clerical errors as may be discovered therein, and make such other insubstantial and immaterial changes as may be necessary to reflect changes of conditions not affecting the validity of the instruments, prior to execution, submission or delivery, respectively. Council also reserves the right to make such further and additional changes in said instruments as may be suggested or required by the Attorney General of the State of Texas, and such changes and modifications, if any, as may be required or allowed by the eventual Judgment in the art. 717m-1 proceeding authorized by this Resolution. SECTION 20. This Resolution shall be effective from and after its passage. E PASSED BY THE CITY COUNCIL THIS 13TH DAY OF OVEMBER, 1980. c r i B LL McALISTER, MAYO i ATTEST: i Evelyn Ga fga, City ec ry-Treasurer APPROVED AS TO FORM: 'U' c `- , "� 1 C` -Ross, Jr., Citf Attorney, City Lubbock, Texas 0 ORDINANCE NO. 8104 i AN ORDINANCE by the City Council of the City of Lubbock, Texas, authorizing the issuance of "CITY OF LUBBOCK, TEXAS, GENNERAL `OBLIGATION BONDS, SERIES 1981", dated March 1, 1981, for the purpose of making permanent public improvements, to wit: $16,200,000 ror construct- ing improvements and extensions to the City's Water- works system and $550,000 for constructing street improvements in and for said City; prescribing the form of the bonds and the form of the interest coupons; levying a continuing direct annual ad valorem tax on all taxable property within the limits of said City - to pay the interest on said bonds and to create a sinking fund for the redemption thereof and providing for the assessment and collection of such taxes; enacting provisions incident and relating to the subject and purpose of this ordinance, and providing an effective date. WHEREAS, pursuant.to elections held withing the City of Lubbock, Texas this City Council has become authorized and empowered to issue general obligation bonds of the City to mature serially over a period of years not to exceed forty (40) years from their date, for the purpose of making certain permanent improve= -eats, and W=' AS, this City Council now deems it advisable and to the best interest of the City that certain of the bonds heretoforal approved at such elections should now be issued, all as reflectedI by the following table NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS SECTION 1: That the bonds of said City, to be known as "CITY OF LUBE K, TEXAS, GENERAL OBLIGATION BONDS, SERIES 198111, be and the same- are hereby ordered to be issued in the principal sum of SIXTEEN MILLION SEVEN HUNDRED FIFTY THOUSAND DOLLARS ($16,750,00QZ for the purpose of making permanent public improve- ments, to wit: $16,200,000 for constructingrovements and extensions to the City's Waterworks system andd,550,000 for con- structing street improvements. in and for said City; under and by virtue of the Constitution and laws of the State of Texas. SECTION 2: That said bonds shall be numbered -consecutively from One . ) Ehrough Three Thousand Three Hundred Fifty (3,350) , shall each be in the denomination of Five Thousand Dollars ($5,0 aggregating in principal amount SIXTEEN MILLION SEVEN HUNDRED FIFTY THOUSAND DOLLARS ($16,750,000) ; shall be dated Marcia 1, 1981, and shall become due and payable serially, on March 1 in' each of the years in accordance with the following schedule: DATE PURPOSE 1 AUTHORIZED Tnaterworks�System 5-21-77 WaterworkD System 8- 9-80 Sewer System 5-21-77 Street Improvements 5-21-77 Storm Sewe and Drainage 11- 9-67 Storm Sew and Drainage 5-21-77 Fire Stat u (for adjacent 21,000,000 areas, en annexed) 5-21-77 NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS SECTION 1: That the bonds of said City, to be known as "CITY OF LUBE K, TEXAS, GENERAL OBLIGATION BONDS, SERIES 198111, be and the same- are hereby ordered to be issued in the principal sum of SIXTEEN MILLION SEVEN HUNDRED FIFTY THOUSAND DOLLARS ($16,750,00QZ for the purpose of making permanent public improve- ments, to wit: $16,200,000 for constructingrovements and extensions to the City's Waterworks system andd,550,000 for con- structing street improvements. in and for said City; under and by virtue of the Constitution and laws of the State of Texas. SECTION 2: That said bonds shall be numbered -consecutively from One . ) Ehrough Three Thousand Three Hundred Fifty (3,350) , shall each be in the denomination of Five Thousand Dollars ($5,0 aggregating in principal amount SIXTEEN MILLION SEVEN HUNDRED FIFTY THOUSAND DOLLARS ($16,750,000) ; shall be dated Marcia 1, 1981, and shall become due and payable serially, on March 1 in' each of the years in accordance with the following schedule: AMOUNT AMOUNT AMOUNT HERETOFORE BEING UNISSUED AUTHORIZED ISSUED ISSUED BAIJkNI CE $16,775,000 $11,625,000 $ -0- $ 5,150,000 21,000,000 -0- 16,200,000 4,800,000 3,303,000 2,030,000 -0- 1,273,000 4,782,000 3,143,000 550,000 1,089,0OO 1,950,0r,O 1,715,000 -0- 235,000. 473,000 100,000 -0- 373,000 310,000 -0- -0- 310,000 NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS SECTION 1: That the bonds of said City, to be known as "CITY OF LUBE K, TEXAS, GENERAL OBLIGATION BONDS, SERIES 198111, be and the same- are hereby ordered to be issued in the principal sum of SIXTEEN MILLION SEVEN HUNDRED FIFTY THOUSAND DOLLARS ($16,750,00QZ for the purpose of making permanent public improve- ments, to wit: $16,200,000 for constructingrovements and extensions to the City's Waterworks system andd,550,000 for con- structing street improvements. in and for said City; under and by virtue of the Constitution and laws of the State of Texas. SECTION 2: That said bonds shall be numbered -consecutively from One . ) Ehrough Three Thousand Three Hundred Fifty (3,350) , shall each be in the denomination of Five Thousand Dollars ($5,0 aggregating in principal amount SIXTEEN MILLION SEVEN HUNDRED FIFTY THOUSAND DOLLARS ($16,750,000) ; shall be dated Marcia 1, 1981, and shall become due and payable serially, on March 1 in' each of the years in accordance with the following schedule: it BOND NUMBERS (All Inclusive) MATURITY AMOUNT i' 1 to 167 1982 $ 835,000 i 168 to 334 1983 835,000 335 to 501 1984 835,000 502 to 668 1985 835,000 669 to 835 1986 8351000 836 to 1002 1987 835,000 1003 to 1169 1988 835,000 1170 to 1336 1989 835,000 1337 to 1503 1990 835,000 1504 to 1670 1991 835,000 1671 to 1838 1992 840,000 1839 to 2006 1993 840,000 2007 to 2174 1994 840,000 2175 to 2342 1995 840,000 2343 to 2510 1996 840,000 2511 to 2678 1997 8401,000 2679 to 2846 1998 840,000 2847 to 3014 1999 840,000 3015 to 3182 2000 8402000 3183 to 3350 2001 840,000 PROVIDED, HOWEVER, that the City reserves the right.to redeem the bonds of this series maturing on March 1, 1992, and subsequent, in whole or any part thereof, on March 1, 1991, or on any interest payment date thereafter, at the price of par and accrued interest to the -date fixed for"redemption; PROVIDED, FURTHER, that at least thirty- (30) days prior to a date any of said bonds are to be redeemed, a notice of redemption signed by the City Secretary (specifying the serial numbers and amount of bonds to be redeemed) shall have been filed with'the CITIBANK, N.A. New York, N.Y. and the TERAS COMMERCE BANK, NATIONAL ASSOCIATION, Lubbock Texas (the paying agents name in each of said bonds); and if by the date so fixed for redemption the City shall have made available funds in amounts sufficient to pay the bonds to be redeemed and accrued interest thereon, any bond or bonds not presented for redemption pursuant to such notice shall cease to bear interest from and after the date so fixed for redemption. SECTION 3: The blinds herein authorized to be issued shall ! bear interest from date to maturity at per annum rates to be established at the time said bonds are sold (but in no event shall any bonds of this series bear interest at a rate in excess of 10% per annum), such interest to be evidenced by proper coupons attached to each of said bonds and said interest shall be payable on March. 1, 1982, and semiannually thereafter on September 1 and March 1 in each. year. j SECTION 4: That both principal of and interest on said bonds! shall- be payable in lawful money of the United States of America, without exchange or collection charges to the owner or holder, at the CITIBANK, N.A., New York, New York, or, at the option of the holder, -at the TEXAS COMMERCE BANK, NATIONAL ASSOCIATION, Lubbock, Texas, upon presentation and surrender of bonds or proper coupons. fi SECTION 5: That the seal of said City may be impressed`"on each of saidFronds or, in the alternative, a facsimile of.. such. seal may be printed on the said bonds. The bonds and interest coupons appurtenant thereto may be executed by the imprinted facsimile signatures of the Mayor and City Secretary of the City, and execution in such runner shall have the same effect as if such bonds and coupons had been signed by the Mayor and City Secretary in person by their manual signatures. Inasmuch as such bonds are required to be registered by the Comptroller of Public Accounts of the State of Texas, only his signature (or that of a deputy designated in writing to act for the Comptroller) shall be require to be manually subscribed to such bonds in connection with his registration certificate to appear thereon, as hereinafter provide, all in,accorda-,•.:e with the provisions of Article 717j-1, V.A.T.C.S. SECTION 6: That the form of said bonds shall be siubstantiallyo as follows: ws :-- NO. UNITED STATES OF AMERICA $5,000 STATE OF TEXAS COUNTY OF LUBBOCK CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BOND, SERIES 1981 The CITY OF LUBBOCK, a municipal corporation of the State of Texas, acknowledges itself indebted to and, FOR VALUE RECEIVED, hereby promises to pay to bearer the:;sum of FIVE THOUSAND DOLLARS ($5,000), in lawful money of the United States of America, on the lst day of March 19 , with interest thereon from the date hereo to maturity at the rate of PER CENTUM ( %) per annum, payable on March 1, 1982, and semiannually therea ter on September 1 and March 1 in each year, and interest falling due on or prior to maturity hereof is payable only upon presentation and surrender of the interest coupons hereto attached as they severally become due. BOTH PRINCIPAL OF and interest on this bond are hereby made payable at the CITIBANK, N.A., New York, New York, or, at the option of the holder, at the TEXAS COMMERCE BANK, NATIONAL ASSOCIATION, Lubbock, Texas, without exchange or collection charge to the owner or holder, and for the prompt payment of this bond and the interest thereon at maturity, the full faith, credit and resources of the City of Lubbock, Texas, are hereby irrevocably pledged, THIS BOND is one of a series of Three Thousand Three Hundred Fifty (3,350) serial bonds, numbered consecutivel from One (1) through. Three Thousand Three Hundred Fifty (3,350f, each. in the denomination of Five Thousand Dollars ($5,000), aggregating SIXTEEB MILLION SEVEN HUNDRED FIFTY THOUSAND DOLLARS x$16,750,000), issued for the purpose of making permanent public improvements, to wit: $16,200,000 for constructing improvements and extensions -to the City's Waterworks system and $550,000 for constructing street improvements in and for said City; under authority of the Con- stitution and laws of the State of Texas, and pursuant to an ordinance duly adopted by the City Council of the City of Liibbock, Texas and recorded in the Minutes of said City Council. AS SPECIFIED in the ordinance hereinabove mentioned, the Cityl reserves the right to redeem the bonds of said series maturing on March.l, 1992, and subsequent, in whole or any part thereof, on March_1,.1991, or on any interest payment date thereafter, at the ; price of par and accrued interest to the date fixed for redemption;- PROVIDED, HOWEVER, that at least thirty (30) days prior to date any of said bonds are to be redeemed, a notice of redemption, signed b the City Secretary (specifying the serial numbers and amount of bonds to be redeemed) shall have been filed with the CITIBANK, N.A., New York, New York and the TEXAS COMMERCE BANK, NATIONAL ASSOC- IATION, Lubbock, Texas; and if by the date so fixed for redemption;j the City shall have made available funds in amounts sufficient to pay the bonds to be redeemed and accrued interest thereon, any bond or bonds not presented for redemption pursuant to such- notice;; shall cease to bear interest from and after the date so fixed for y redemption. L IT IS HEREBY CERTIFIED, RECITED AND REPRESENTED that the I' issuance of this bond and the series of which it is a part is f duly authorized by law and by authority expressly conferred at elections held for that purpose within said City; that all acts conditi.ons;and things required to be done precedent to and in the issuance of this series of bonds and of this bond, have been properly done and performed and have happened in regular and due time, form and manner as required by law; that sufficient and proper provision has been made for the levy and collection of taxes which, when collected, shall be appropriated exclusively to the payment of this bond and the series of which it is a part, and to the payment of the interest coupons thereto annexed, as the same shall become due; and that the total indebtedness of the City of Lubbock, Texas, including the entire series of bonds of which this is one, does not exceed any constitutional or statu- tory limitation. IN TESTIMONY WHEREOF, the City Council of the City of Lubbock, Texas, in accordance with the provisions of Article 717j-1, V.A.T. a C.S., has caused the seal of said City to be impressed or a fac- simile thereof to be printed hereon, and this bond and its appur- tenant coupons to be executed with the imprinted facsimile signatures of the Mayor and City Secretary of said City; the date of this bond, in conformity with the ordinance above referred to, being the first day of March, 1981. Mayor, City o Texas COUNTERSIGNED: q City Secretary, City of Lubbock-. Texas SECTION 7: That the form of interest coupons attached ed to each o sai onds shall be substantially as follows: *(unless the bonds to which this coupon pertains On the 1st day has been properly called for redemption in Accordance with its terms,) the CITY OF LUBBOCK, A municipal corporation of the State of Texas, hereby promises to pay to bearer the amount 110. $ shown hereon in lawful money of the United States of America upon presentaion and surren- SERIES 1981 der of this coupon, at the CITIBANK, N.A., New York, New York, or, at the option of the. Bond holder, -at the. TEXAS COMMERCE BANK, NATIONAL No. ASSOCIATION, Lubbock, Texas, without exchange or collection charges,said sum being interest due that day on "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BOND, SERIES 1981," dated March 1, 1981. City Secretary -19y -or SECTION 8: That the following certificate shall be printed on th back each bond: OFFICE: OF COMPTROLLER § REGISTER NO. STATE OF TEXAS I HEREBY. CEIRTM that there is on file and of record in my office a certificate.of the. Attorney General of the. State of.Texas to the effect that this bond has been examined by him as required by law, and that he. finds that it has been issued in conformity *NOTE TO PRINTER: The expression in parenthesis to be included only I in coupons maturing September 1, 1991, and subsequent, pertaining t optional bonds maturing in the years 1992 and subsequent. G h with the Constitution and laws of the State of.Texap, and that it is a valid and binding obligation upon said City of Lubbock, Texas, and said bond has this day been registered by me. WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas, Comptroller of Public Accounts of t el State of Texas SECTION 9: That to.provide for the payment of the debt servic requirements on the said bonds, being (i) the interest on said bonds and (ii) a sinking fund for their redemption at maturity or a sinking fund of 2% (whichever amount shall be greater), there shall be and there is hereby levied for the current year and each succeeding year thereafter while said bonds or interest thereon shall remain outstanding and -unpaid, a sufficient tax on each one hundred dollars' valuation of taxable property in said City, ade- quate to pay such debt'service requirements, full allowance being made for delinquencies, shall be assessed and collected each year and applied to the payment cf the said debt service requirements, and the same shall not be diverted' to any other purpose. The taxes so levied shall be paid into a fund known as "SPECIAL GENERAL OBLI- GATION BOND FUND, SERIES 1981," which is hereby established for the; payment of obligations herein authorized. The City Council hereby declares its purpose and intent to provide and levy a tax legally and fully sufficient for.such bonds, it having been determined that the existing and available taxing authority of the City for such purpose is adequate to permit a legally sufficient tax in con sideration of all other outstanding obligations. SECTION 10: That the Mayor of said City shall be and he is hereby aut razed to take and have charge of all necessary orders and records pending investigation by the Attorney General of ,the State of Texas, and shall take and have charge and control of the bonds herein authorized pending their approval by the Attorney General and their registration by the Comptroller of Public Accounts.. SECTION 11: That the purchasers' obligation to accept de- livery of t e fonds herein authorized is subject to their being furnished a final opinion of Messrs. Dumas, Huguenin, Boothman and Morrow, Attorneys, Dallas, Texas, approving such bonds as to their validity, said opinion to be dated and delivered as of the date of delivery and payment for such bonds. Printing of a true and correct copy of said opinion on the reverse side of each of such bonds, with appropriate certificate pertaining thereto exe- cuted by facsimile signature of the City Secretary of the City of Lubbock, Texas, is hereby approved and authorized. SECTION 12: That the City hereby covenants that the proceeds from t e.sa a of said bonds will be used as soon as practicable for the purpose for which said bonds are issued; that such proceeds will not be invested in any securities or obligations except for the temporary period pending such use; and that such proceeds will hot be used directly or indirectly so as to cause all or -any part of said bonds to be or become "arbitrage bonds" within the -meaning of Section 103 (c) of the Internal Revenue Code. of 1954, as amended, or any regulation or rulings prescribed or made pursuant thereto. SECTION 13: CUSIP numbers may be printed on the bonds herein authorized. IT is expressly provided, however, that the presence or absence of CUSIP numbers on the bonds shall be of no significant or effect as regards to the legality thereof and neither the City nor attorneys approving said bonds as to legality are to be held responsible for CUSIP numbers incorrectly printed on the bonds. I I; SECTION 14: This ordinance shall take effect and be in force immediately from and after its final passage, and it is so ordained. PASSED AND APPROVED on first reading this the day of 1980. PASSED AND APPROVED on second and final reading this the day of 1980. y Mayor, City of Lubbock, Texas ATTEST: City Secretary, City of Lubbock," Texas - (City Sear APPROVED as to form City Attorney, City of Lubbock,Texas a 4 i MINUTES PERTAINING TO PASSAGE OF. AN ORDINANCE AUTHORIZING THE ISSUANCE OF $16,750,000 "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1581," DATED MARCH 1, 1981 THE STATE OF TEXAS COUNTY OF LUBBOCK CITY OF LUBBOCK ON THIS., the day of 211980, the City Council of the City of ubbock, Texas, convened in session at the regular meeting place thereof in the City Hall, the meeting being open to the public and notice of said meeting, giving the date, hour, place and subject thereof, having been given -as prescribed by Article 6252-17, Section 3A, V.A.T.C.S., the.following members being present and in attendance, to wit: BILL McALISTER MAYOR ALLEN HENRY MAYOR PRO -TEM JOAN BAKER ) COU11CILMEMBERS M. J . ADDERTON ) E. JACK BROWN ) EVELYN GAFFG4 CITY SECRETARY AND LARRY CUNNINGHAM CITY MANAGER also being present; and with the following absent: constituting a quorum; among of er usiness considered at saii meeting, a ordinance was submitted to the City Council for adoption and passage, such ordinance being entitled as follows: "AN ORDINANCE by the %pity Council of the City of Lubbock, Texas, authorizing the issuance of "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1981 dated March 1, 1981, for the purpose of making permanent. public improvements, to wit: $16,200,000 for construct- ing improvements and extensions to the City's Water- works system and $550,000 for constructing street improvements in and for said City; prescribing the form of the:�bonds and the form of the interest coupons; levying a continuing direct annual ad valorem tax on all taxable property within the limits of said City to pay the interest on said bonds and to create a sinking fund for the redemption thereof and providing for the assessment and collection of such taxes; enacting provisions incident and relating to the subject and purpose of this ordinance. and providing an effective date." Upon consideration of the ordinance, Council- -- membermoved that the ordinance be passed on the first rea ing. T e motion was seconded by Councilmemb er. and carried by the following vote: YEA: Mayor McAlister and Councilmembers Henry, Baker Adderton and Brown. NAY: None. 2v The Mayor then announced the ordinance had been passed on the first reading. ADOPTED, on the first reading, this the day of 1980. Mayor, City o Lu oc , Texas ATTEST: City Secretary, City o Lu oc , Texas (.City Seal) NOTICE OF SALE CITY OF LUBBOCK, TEXAS The City Council of the City of Lubbock, Texas, will receive sealed bids at the City Hall, Lubbock, Texas, until M., Central Standard Time, 1981, for the following described bonds: $16,750,000 City of Lubbock, Texas General Obligation Bonds, Series 1981 Dated March 1, 1981; maturing $835,000 each year March 1, 1982 through 1991, and $840,000 each year Marsh 1, 1992 through 2001. Denomination $5,000. Optional at par and accrued interest on March 1, 1991, or any interest payment date thereafter. Further information may be obtained from the Division of Finance, City of Lubbock, Texas, P. 0. Box 2000, Lubbock, Texas 79457; or from First Southwest Company, Mercantile Bank Building, Dallas, Texas 75201, Financial Consultants to the City. City Secretary -Treasurer City of Lubbock, Texas (City Sea]) -. (/sem.. .*. .. ._ .. ... ._.. .. _....�...... ......�....�.. ._.....__._ r.. ._ .. ` f NOTICE OF SALE AND BIDDING INSTRUCTIONS ON $16,750,000 CITY OF LUBBOCK, TEXAS (Lubbock County) GENERAL OBLIGATION BONDS, SERIES 1981 Selling 19_, at _ THE SALE Bonds Offered for Sale at Competitive Biddin .. The City of Lubbock, Texas (the "City"), is offering for sale its $16,750,000 General Obligation Bonds, Series 1981 (the "Bonds"). Address of Bids.. Sealed bids,, plainly marked "Bid for Bonds", should be addressed and delivered to "Mrs. Evelyn E. Gaffga, City Secretary, City of Lubbock, Texas", prior to _, on the date of the bid opening. All bids must be submitted on the Official Bid orm, without on or interlineation. Place and Time of Bid Opening ... The City Council will open and publicly read the bids for the purchase of the Bonds at the City Hall, Lubbock, Texas, at 19 Award of the Bonds ... The City Council will take action to award the Bonds (or reject all bids) promptly after the opening of bids, and adopt an Ordinance authorizing the Bonds (the "Ordi- nance") and approving the Official Statement. THE BONDS Description ... The Bonds will be dated March 1, 1981, and interest coupons will be due on March 171982, and each September 1 and March 1 thereafter until the earlier of maturity or prior redemption. The Bonds and interest coupons attached thereto will be payable at Citibank, N.A., New York, New York, or, at the option of the holder, at Texas Commerce Bank, National Association, Lubbock, Texas. The Bonds will mature serially on March 1 in each year as follows: Principal Principal Principal Year Amount Year Amount Year Amount 982 835,000 �9 835,000995 840,000 1983 835,000 1990 835,000 1996 840,000 1984 835,000 1991 835,000 1997 840,000 1985 835,000 1992- 840,000 1998 840,000 1986 835,000 1993 840,000 1999 840,000 1987 835,000 1994 840,000 2000 840,000 1988 835,000 2001 840,000 The City reserves the right, at its option, to redeem Bonds maturing March 1, 1992, through March 1, 2001, both inclusive, in whole or any part thereof, on March 1, 1991, or any interest payment date thereafter, at the par value thereof plus accrued interest to the date fixed for redemption. Source of Patent . The Bonds are direct and voted general obligations payable out of the receipts from an ad valorem tax levied, within the limits prescribed by law, on taxable property located within the City. CONDITIONS OF THE SALE Tomes of Bids and Interest Rates Bids and Interest Rates ... The Bonds will be sold in one block on an "All or None" basis, and at a price of not less than their par value plus accrued interest to the date of delivery of the Bonds. Bidders are invited to name the rate(s) of interest to be borne by the Bonds, provided that each rate bid must be in a multiple of 1/8 of 1% or 1/2p of 1% and the effective interest rate must not exceed 10%. The highest coupon rate bid may not exceed the lowest coupon rate bid by more than 2% in coupon rate. No limitation is imposed upon bidders as to the number of rates'or coupon changes which may be used. All Bonds of one ma Writy must bear one and the same rate. No bids involving supplemental coupons will be considered. Each bidder shall state in his bid the total interest cost in dallars and the net effective interest rate determined thereby, which shall be considered informative only and not as a part of the bid. Basis for Award ... For the purpose of awarding the sale of the Bonds, the interest cost of each bid will be computed by determining, at the rate or rates specified therein, the total dollar cost of all interest on the Bonds from the date thereof to their respective maturities, using the table of Bond Years herein, and deducting therefrom the premium bid, if any. Subject to the City's right to reject any or all bids and to waive any irreularities except time of filing, the Bonds will be awarded to the bidder (the "Purchaser"}q whose bid based on the above computation produces the lowest net effective interest cost to the City. Good Faith Deposit . A Good Faith Deposit, payable to the "City of Lubbock, .Texas", in the amount of�.00, is required. Such Good Faith Deposit shall be in the form of a Cashier's Check, or its equivalent, which is to be retained uncashed by the City pending the Purchaser's compliance with the terms of his bid and the Notice of Sale and Bidding Instructions. The Good Faith Deposit may accompany the Official Bid Form or it may be submitted separately. If submitted separately, it shall be made available to the City prior to the opening of the bids, and shall be accompanied by instructions from the bank on which drawn which authorize its use as a Good Faith Deposit by the Purchaser who shall be named in such instructions. The Good Faith Deposit of the Purchaser will be applied on the purchase price on the date of delivery of the Bonds. No interest will be allowed on the Good Faith Deposit. In the event the Purchaser should fail or refuse to take up and pay for the Bonds in accordance with his bid,. then said check shall be cashed and accepted by the City as full and complete liquidated damages. The checks accompanying bids other than the winning bid will be returned immediately after the bids are opened, and an award of the Bonds has been made. DELIVERY OF THE BONDS AND ACCOMPANYING DOCUMENTS Printed Bonds . The City will furnish printed Bonds which will be executed by the facsimile signatures of the Mayor and Secretary of the City, and by the manual signature of the Comptroll- er of Public Accounts of the State of Texas. The Bonds will be in coupon form without privilege of registration as to principal or interest. CUSIP Numbers . It is anticipated that CUSIP identification numbers will be printed on the Bonds, but neither the failure to print such number on any Bond nor any error with respect thereto shall constitute cause for a failure or refusal by the Purchaser to accept delivery of and pay for the Bonds in accordance with the terms of this Notice of Sale and the terms of the Official Bid Form. All expenses in relation to the printing of CUSIP numbers on the Bonds shall be paid by the City; provided, however, that the CUSIP Service Bureau charge for the assignment of the numbers shall be the responsibility of and shall be paid for by the Purchaser. Deliver .. The Bonds will be tendered for delivery to the Purchaser at any bank in Austin, ext the expense of the City. Payment for the Bonds must be made in immediately available funds for unconditional credit to the City, or as otherwise directed by the City. The Purchaser will be given five business days' notice of the time fixed for delivery of the Bonds. It is anticipated that delivery can be made on or about , 19 , and it is understood and agreed that the Purchaser will accept delivery artd make payment for the Bonds on , 19_, or thereafter on the date the Bonds are tendered for delivery, up to and inc udT ing , 19 . If for any reason the City is unable to make delivery on or before , T then the City shall immediately contact the Purchaser and offer to allow the Purchaser to extend his offer for an additional thirty days. If the Purchaser does not elect to extend his offer within five days thereafter, then his Good Faith Deposit will be returned, and both the City and the Purchaser shall be relieved of any further obligation. In no event shall the City be liable for any damages by reason of its failure to deliver the Bonds, provided such failure is due to circumstances beyond the City's reasonable control. Conditions to Delivery ... The obligation of the Purchaser to take up and pay for the Bonds is subject to the Purchaser's receipt of (a) the legal opinion of Messrs. Dumas, Huguenin, Boothman & Morrow, Dallas,' Texas, Bond Counsel for the City ("Bond Counsel"), (b) the no - litigation certificate, and (c) the certification as to the Official Statement, all as further described in the Official Statement. Legal pinions.. The Bonds are offered when, as and if issued, subject to the unqualified legal opinion of the Attorney General of the State of Texas, and Messrs. Dumas, Huguenin, Boothman & Morrow (see Legal Opinions in Official Statement); the opinion of said firm will be printed on the Bonds. Certification of Official Statement ... At the time of payment for and delivery of the Bonds, the City will execute and deliver to the Purchaser a certificate in the form set forth in the Official Statement. ii j Change in Tax Exempt Status.. At any time before the Bonds are tendered for delivery, the urc aser may witharaw.nis Didif the interest received by private holders from bonds of the same type and character shall be declared to be taxable income under present Federal income tax laws, either by ruling of the Internal Revenue Service or by a decision of any Federal court, or shall be declared taxable or be required to be taken into account in computing any Federal income taxes, by the terms of any Federal income tax law enacted subsequent to the date of this Notice of Sale and Bidding Instructions. GENERAL Blue Sky Laws ... By submission of his bid, the Purchaser represents that the sale of the Bonds in states other than Texas will be made only pursuant to exemptions from registration or, where necessary, the Purchaser will register the Bonds in accordance with the securities law of the states in which the Bonds are offered or sold. The City agrees to cooperate with the Purchaser, at the Purchaser's written request and expense, in registering the Bonds or obtaining an exemption from registration in any state where such action is necessary. Not an Offer to Sell ... This Notice of Sale does not alone constitute an offer to sell the Bonds, but is mere y notice of the sale of the Bonds. The offer to sell the Bonds is being made by means of the Notice of Sale and Bidding Instructions, the Official Bid Form and the Official Statement. Prospective purchasers are urged to carefully examine the Official Statement to determine the investment quality of the Bonds. Issuance of Additional Bonds . The City plans to sell additional General Obligation Bonds over the next several years (see "Estimated General Obligation Bond Program" in Official Statement). Ratings ... The outstanding General Obligation Bonds of the City are rated "Aa" by Moody's Investors Service, Inc. and "AA" by Standard & Poor's Corporation. Applications for contract ratings on this issue have been made to both Moody's and Standard & Poor's. The results of their determinations will be provided as soon as possible. The Official Statement ... The City will furnish to the Purchaser, without cost, 50 copies of the Official Statement (and 50 copies of any addenda, supplement or amendment thereto), com- plete except as to interest rates and other terms relating to the reoffering of the Bonds. The Purchaser may arrange at his own expense to have the Official Statement reproduced and printed if he requires more than 50 copies, and may also arrange, at his total expense and responsibil- ity, for completion and perfection of the first or cover page of the Official Statement so as to reflect interest rates and other terms and information related to the reoffering of the Bonds. The City assumes no responsibility or obligation for the distribution or delivery of any of these copies to any one other than the Purchaser. Additional Copies of Notice Bid Form and Statement ... A limited number of additional copies this Notice of Sae and Bidding Instructions, the Official Bid Form and the Official Statement, as available over and above the normal mailing, may be obtained at the offices of First Southwest Company, Investment Bankers, 900 Mercantile Bank Building, Dallas, Texas 75201, Financial Advisors to the City. The City reserves the right to reject any and all bids and to waive irregularities, except time of filing. The City Council, by resolution adopted this day of 19 , approved the form and content of the Notice of Sale and Bidding Instructions, the Official Bid Form and Official Statement, and has authorized the use thereof in its initial. offering of the Bonds. On the date of the sale, the City Council will, in the ordinance authorizing the Bonds, reconfirm its approval of the form and content of the Official Statement, and any addenda, supplement or amendment thereto, and authorize its further use in the reoffering of the Bonds by the Purchaser. ATTEST: EVELYN E. GAFFGA. City Secretary , 1980 BILL McALISTER Mayor BOND YEARS -iv- Accumulated Year Amount Bond Years Bond Years. Year 1982 $ 835,000 835 835 1982 1983 835,000 1,670 2,505 1983 1984 835,000 2,505 5,010 1984 1985 835,000 3,340 8,350 1985 1986 835,000 4,175 12,525 1986 1987 835,000 5,010 17,535 1987 1988 835,000 5,845 23,380 1988 1989 835,000 6,680 30,060 1989 1990 835,000 7,515 37,575 1990 1991 835,000 8,350 45,925 1991 1992 840,000 9,240 55,165 1992 1993 840,000 10,080 65,245 1993 1994 840,000 10,920 76,165 1994 1995 840,000 11,760 87,925 1995 1996 840,000 12,600 100,525 1996 1997 840,000 13,440 113,965 1997 1998 840,000 14,280 128,245 1998 1999 840,000 15,120 143,365 1999 2000 840,000 15,960 159,325 2000 2001 840,000 16,800 176;125 2001 Average Maturity ----------------------- 10.515 Years -iv- OFFICIAL BID FORM Honorable Mayor and City Council 1981 City of Lubbock Lubbock, Texas Gentlemen: Reference is made to your Official Statement and Notice of Sale and Bidding Instructions, dated ww ii, 1980, of $16,750,000 CITY OF LUBBOCK, TEXAS GENERAL OBLIGATION BONDS, SERIES 1981, both ch constitute a part hereof.. For your legally issued Bonds, as described in said Notice of Sale and Bidding Instructions and Official Statement, we will pay you par and accrued interest from date of issue to date of delivery to us, plus a cash premium of $ for Bonds maturing and bearing interest as follows: Interest Interest Interest Maturity Rate Maturity Rate Maturity Rate 3-1-1982 % 3-1-1989 % 3-1-1995 % 3-1-1983 % 3-1-1990 % 3-1-1996 % 3-1-1984 % 3-1-1991 % 3-1-1997 % 3-1-1985 % 3-1-1992 % 3-1-1998 % 3-1-1986 . % 3-1-1993 % 3-1-1999 % 3-1-1987 % 3-1-1994 % 3-1-2000 % 3-1-1988 % 3-1-2001 % Our calculation (which is not a part of this bid) of the interest cost from the above is: Total Interest Cost $ Less Premium NET INTERST COST $ EFFECTIVE INTEREST RATE % Check of the Bank, , in the amount of 335,000.00, which represents our Good Faith eposit (is attached hereto or (has been made available to you prior to the opening of this bid), and is submitted in accordance with the terms as set forth in the Official Statement and Notice of Sale and Bidding Instructions. We agree to accept delivery of and make payment for the Bonds at Bank, Austin, Texas, on , 1981, or thereafter on the date the Bonds are tendered for delivery, pursuant to the terms set forth in the Notice of Sale and Bidding Instructions. Respectfully submitted, By Authorized Representative ACCEPTANCE CLAUSE The above and foregoing bid is hereby in all things accepted by the City of Lubbock, Texas, this the day of 1981. Mayor ATTEST: City Secretary Return of Good Faith Deposit is hereby acknowledged: Rv a J This Official Statement does not constitute an offer t6 sell Bonds in any jurisdiction to any person to whom it is unlawful to make such offer in such jurisdiction. No dealer, salesman, or any other person has been authorized to give any information or make any representation, other than those contained herein; in connection with the offering of these Bonds, and if given or made, such information or representation must not be relied upon. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City since the date hereof. OFFICIAL STATEMENT Dated 1980 INTEREST EXEMPT, IN THE OPINION OF BOND COUNSEL, FROM PRESENT FEDERAL INCOME TAXES UNDER EXISTING STATUTES, REGULATIONS AND COURT DECISIONS $16,750,000 CITY OF LUBBOCK, TEXAS • (Lubbock County) GENERAL OBLIGATION BONDS, SERIES 1981 Dated: March 1, 1981 Denomination: $5,000 Principal and semi-annual interest (March 1 and September 1) payable at Citibank, N. A., New York, New York, or, at the option of the holder, at Texas Commerce Bank, National Association, Lubbock, Texas. First interest coupon due March 1, 1982. Coupon bearer bonds, not registrable. These bonds (the "Bonds") were authorized at elections held on various dates, and constitute direct and voted general obligations of the City of Lubbock, payable from an ad valorem tax levied, within the limits prescribed by law, on taxable property located within the City. MATURITY SCHEDULE Amount Maturity Rate Yield Amount Maturity Rate Yield 835,000 3-1-1982 8402000 3-1-1992* 835,000 3-1-1983 8402000 3-1-1993* 835,000 3-1-1984 8402000 3-1-1994* 835,000 3-1-1985 840,000 3-1-1995* 835,000 3-1-1986 840,000 3-1-1996* 835,000 3-1-1987 840,000 3-1-1997* 835,000 3-1-1988 840,000 3-1-1998* 835,000 3-1-1989 840,000 3-1-1999* 8352000 3-1-1990 840,000 3-1-2000* 8352000 3-1-1991 840,000 3-1-2001* * The City reserves the right, at its option, to redeem Bonds maturing March 1, 1992, through March 1, 2001, both inclusive, in whole or any part thereof, on March 1, 1991, or any interest payment date thereafter, at the par value thereof plus accrued interest to the date fixed for redemption. Patent Record: The City has never. defaulted Record: The City has never. defaulted. Legality: Attorney General of the State of Texas and Messrs. Dumas Huguenin, Boothman & Morrow, Attorneys, Da las Texas. (Opinion Printed on the Bonds; See Legal Opinions.) Delivery: Anticipated on or about 1981. "I TABLE OF CONTENTS Page Official Statement: Description of the Bonds ------------------------------------------------------- -----------------------------------------------------Elected ElectedOfficials---=---------------------------------------------------------- 3 Appointed Officials------------------------------------------------------------ 3 Consultants and Advisors------------------------------------------------------- 3 Introductory Statement--------------------------------------------------------- 4/5 Valuation and Debt Information -r----------------------------------------------- 6/7 AdValorem Tax Legislation----------------------------------------------------- 7 OtherLiabilities-------------------------------------------------------------- 8 Note Amortization Schedule ----------------------------------------------------- 8 Funded Debt Limitation--------------------------------------------------------- 8 Valuation and Funded Debt History ---------------------------------------------- 9 Taxable Assessed Valuation by Category ----------------------------------------- 9/10 Estimated Taxable Assessed Valuations ------------------------------------------ 10 Authorized General Obligation Bonds -------------------------------------------- 10 Estimated General Obligation Bond Program -------------------------------------- 10. Authorized But Unissued General Obligation Bonds of Overlapping Subdivisions --- it Estimated Overlapping Funded Debt Payable From Ad Valorem Taxes ----------------- 11 TaxData----------------------------------------------------------------------- 11 Tax Rate Limitations----------------------------------------------------------- 12 1% Municipal Sales Tax --------------------------------------------------------- 12 Estimated 1979-80 Tax Year Overlapping Taxes ----------------------------------- 12 Top.Ten Taxpayers-------------------------------------------------------------- 13 Interest and Sinking Fund Management Index ------------------------------------- 13 Computation of Self -Supporting Debt -------------------------------------------- 13 Debt Service Requirements------------------------------------------------------ 14 TaxAdequacy------------------------------------------------------------------- 14 PensionFunds--------------------------------------------------------=--------- 15 Lubbock Power and Light -------------------------------------------------------- 15/17 Condensed Statement of Operations - Electric Light and Power System ------------ 17 The Waterworks System---------------------------------------------------------- 17/19 Condensed Statement of Operations - Waterworks System -------------------------- 19 Increase in Water Rates -------------------------------------------------------- 19 AirportSystem----------------------------------------------------------------- 19/20 Condensed Statement of Operations - Airport System ----------------------------- 20 General Information Regarding the City and Its Economy ------------------------- 21/26 Ratings---------------------=-------------------------------------------------- 27 TaxExemption------------------------------------------------------------------ 27 Registration and Qualification of Bonds for Sale ------------------------------- 27 Legal Investments in Texas ----------------------------------------------------- 27 Legal Opinions and No -Litigation Certificate ----------------------------------- 27 Authenticity of Financial Information ------------------------------------------ 28 Certification of the Official Statement ---------------------------------------- 28 Audited Financial Statements, September 30, 1979, examined by Mason, Nickels & Warner, Certified Public Accountants ------------------------ Appendix The cover page hereof, this page, the appendix included herein and any addenda, supplement or amendment hereto, are part of the Official Statement. - 2 - ELECTED OFFICIALS Term Cit Council Len th of Service Expires Occupation Bill McAlister Elected Mayor April 5, 1980; April 1982 President and Co -Owner, KAMC-TV served.4 years previously as City Councilman Alan Henry 6 Years April 1982 Partner, The Insurance Group Mayor Pro -Tem Agency Joan Baker Elected 4-29-80 April 1984 Homemaker Councilwoman M. J. Aderton 2 Years April 1982 Retired Chairman of the Board, Councilman Snook & Aderton, Inc. E. Jack Brown Elected 4-5-80 April 1984 President, Brown McKee, Inc. Councilman APPOINTED OFFICIALS Length of Employment - 3 - Position and Length of Time With City Name In This Position of Lubbock Larry J. Cunningham City Manager Appointed 9- 1-76 3 -Years J. Robert Massengale Director of Finance Appointed 2-25-80 John C. Ross, Jr. City -Attorney Appointed 8- 3-78 2 Years Evelyn E. Gaffga Secretary -Treasurer Appointed 7- 3-78 2 Years Samuel W. Wahl Director of Water Utilities for 11 Years 27 Years W. T. (Bill) Wood Director of Electric Utility Planning, Development and Production for 9 Years 24 Years Carroll McDonald Director of Utility Sales and Service Appointed 1- 8-79 1 Year James E. Bertram Director of Planning for 9 Years 11 Years Jimmy W. Weston Director of Community Facilities for 4 Years 13 Years Marvin W. Coffee Director of Aviation for 9 Years 9 Years Denzel W. Percifull Director of Public Services for 3 Years 3 Years James J. Kilchenstein Tax Assessor -Collector Appointed 6-13-80 24 Years CONSULTANTS AND ADVISORS Auditors ---------------------------------------------------- Mason, Nickels & Warner, CPA's Lubbock, Texas Bond Counsel -------------------------------------------- Dumas, Huguenin, Boothman & Morrow Dallas, Texas Consultants and Engineers, Water -Treatment Plant Expansion and Airport ------------------------------------------- Parkhill, Smith & Cooper Lubbock, Texas Engineers for Generator System ----------------------------------------------- Tippett & Gee Abilene, Texas Engineers for 50 Year Water. Supply -------------------------------------- Freese and Nichols Fort Worth, Texas Engineers for Transmission Lines and Substations ------------------- Hicks & Ragland Company Lubbock, Texas Financial Advisors ------------------------------------------------- First Southwest Company -- Dallas, Texas - 3 - INTRODUCTORY STATEMENT This Official Statement of the City of Lubbock, Texas, a political subdivision located in Lubbock County (the "City"), is provided to furnish information in connection with the sale of the City's $16,750,000 General Obligation Bonds, Series 1981 (the "Bonds"). The Official Statement was prepared to present for the purchaser of the Bonds information concerning the Bonds, the revenues (ad valorem taxes) pledged to the Bonds, the description of the revenue base, factors that may affect pledged revenues, and other pertinent data, all as more fully described herein. See "Table of Contents". Source of Payment ... The Bonds are direct and voted general obligations payable from an annual a 'va orem tax levied on all taxable property located in the City within the limits prescribed by law. See "Tax Rate Limitations". Purpose ... Proceeds from -the sale of the Bonds will be used for Waterworks System and street and drainage improvements. See "Authorized General Obligation Bonds". Future Bond Issues ... The City plans to market substantially all of its remaining authorized but unissued $13,230,000 General Obligation Bonds over the period 1982 through 1983. See "Estimated General Obligation Bond Program". Administration of the City ... The City operates under a Home Rule Charter which was approved by the electorate December 27, 1917, and thereafter amended from time to time. The Charter provides for the Council -Manager form of government for the City. Policy-making and super- visory functions are the responsibility of and vested in the Mayor and City Council. Litigation Concerning the Bonds ... On the 15th day of August, 1977, (Consolidated Judgment in aures Numbered 87,536 and 87,390) the 99th District Court, Lubbock County, entered a judgment in an action filed under Article 717m, V.A.T.C.S., which validated the election proceedin s of May 21, 1977 (when $26,435,000 in general obligation bonds were approved by the electorate? and the first installment of $2,420,000 bonds (Series 1978) sought to be issued pursuant to said election. The trial court's judgment was affirmed in Taxpayers Association of Lubbock Texas and James G. Marshall v. City of Lubbock Texas et a 565 S.W. 2d 578 Tex. Civ. App. - Amarillo, 978 no writ history. These $Z,42U,000 bonds were sold on August 24, 1978 and were delivered to the purchasers. On September 1, 1978, the City of Lubbock filed a validation suit under Article 717m styled Ex Parte City of Lubbock Texas, (Cause Number 92,070 in the 137th Judicial District Court, u bock County). The City sought to validate the authorization of the second series of bonds out of those approved at the election held on May 21, 1977. James Marshall and Robert Isom intervened. The trial court entered judgment upholding the validity of the bonds and the provision made for their payment by judgment entered December 19, 1978. No appeal was taken. The foregoing suits (being in rem proceedings) resulted in declaratory judgments validating the election proceedings and all actions taken or proposed to be taken in connection with the authorization, issuance, sale and delivery of the bonds approved at the aforesaid election. The judgments enjoined the institution of any suit or action questioning the validity of the proceedings validated. In James G. Marshall v. City of. Lubbock Texas (Cause Number 90,307 in the 237th Judicial District Court, Lubbock County, Texas) the validity of the "City of Lubbock, Texas, Airport Revenue Bonds, Series 1978" was questioned, but was dismissed at the request of the plaintiff on May 3, 1978. No appeal was taken. Cause No. 94,796 (James Marshall and Robert Isom v. City of Lubbock, Texas) was filed May 7, 1979, which according to its terms is "in the nature of a bill of review". Among other things, it was alleged that (i) Cause No. 92,070 should have been consolidated with Cause No. 90,307 (relating to the Airport Revenue Bonds) and (ii) the judgment in Cause No. 92,070 is "void in all respects", but does not state any reasons for the conclusions. Alternatively, the petition alleges that (i) by reason of the motion in limine filed in Cause Number 92,070 (which prevented consideration of matters disposed of in Causes Numbered 87,536 and 87,390) certain issues were not litigated in Cause No. 92,070 and (ii) that matters "pending" in Cause No. 90,307 do not go to the validity of the bonds, such as the segregation and accounting for airport funds, and (iii) there is no challenge to the validity of the bonds, but only to "the validity of the repayment plan". Plaintiff seeks relief from the injunctive provisions of the prior judgment in Cause No. 92,070 and from the payment of costs taxed against them. The judgment in Cause Number 92,070 validated $9;520,000 in principal amount of general obliga- tion bonds, and granted the City the right to revise and rearrange the original details. The City reduced the number of bonds issued and changed the date, maturity schedule and similar details, and sold $8,820,000, Series 1979 general obligation bonds on August 21, 1979, and delivered the bonds to the purchasers. On June 28, 1979, the trial court dismissed Cause Number 94,796 and one plaintiff (Isom) appealed to the Court of Civil Appeals in Amarillo, which appeal has now been transferred to the Court of Civi.l Appeals for the Eleventh Judicial District, Eastland, Texas and the case has been set for oral argument on September 30, 1980. The appeal is predicated on the contention that (i) an'evidentary hearing was required, rather than on the pleadings, and (ii) the court should have granted leave to amend the pleadings. In the opinion of the City Attorney, the plaintiffs have failed to allege or prove any of the facts or circumstances which would be required to sustain a bill of review. On March 17, 1980, the City of Lubbock filed a validation suit under Article 717m-1, styled Ex Parte City of Lubbock, Texas, (Cause Number 98,215 in the 237th Judicial District Court, Lubbock County) in which the City sought to validate the authorization and issuance of a third series of bonds in the amount of $6,450,000 out of those approved at the election held on May 21, 1977. No interventions were filed and the Court entered judgment upholding the validity of the bonds and the provision made for their payment by judgment entered April 14, 1980. No appeal was taken. These $6,450,000 bonds were sold on June 22, 1980, and were delivered to the purchasers. The City of Lubbock has filed an action under Vernon's Annotated Civil Statutes, Article 717m-1 (an in rem proceeding) in the District Court of Lubbock County, Texas asking for a Declaratory Judgment validating an�conTfirming the Bonds, and the proceedings taken or proposed to be taken in connection with their authorization, issuance and delivery. Petitions Affecting the Tax Rate, Assessed Valuation and Tax Lev .. On July 12, 1979, three petitions calling for an election to amend the City's Home Rue Charter in relation to ad valorem taxes were filed with the City Council. These petitions, separately, ask for the following amendments: (1) limitation of the City's maximum tax rate to $1.12 per $100 Assessed Valuation; (2) limitation of the ratio at which property can be assessed for ad valorem taxes to 60% of fair market value; and (3) provide that, "The annual ad valorem taxes levied by the governing authority of the City government shall not be increased on the basis of an increase in the rate of evaluation of taxable property now on the assessed valuation of property subject to tax, from the preceding tax year, without first securing approval of said increase at an election submitting said proposed increase to the voters of the City of Lubbock. Said in- crease, if any, requiring a majority vote for its approval."* * Text of the 3rd petition quoted verbatim. On July 26, 1979, the City Attorney reported to the City Council that, in his opinion, the provisions of the petitions, if incorporated into the City Charter, would contravene provisions of the Texas Constitution (the Tax Relief Amendment) and general laws recently enacted by the Texas Legislature and recommended that no charter amendment election be called at this time. The City Council authorized the City Attorney to file a declaratory judgment action in the District Court of Lubbock County to determine whether the Council, under such circumstances, would be required to call such an election and to determine the rights of the petitioners, other citizens and the City Council in the premises. Such lawsuit was filed July 26, 1979, in the 140th Judicial District Court of. Lubbock County, and upon rendition of a final judgment, the Council will proceed in the manner directed by the Court. On June 10, 1980, the Court entertained motions for summary judgment filed by both parties. On June 27, 1980, the Court, by summary judgment, ruled in favor of the City in all respects, finding that the City was under no legal duty to call an election for the submission of the 3 proposed charter amendments and that all 3 proposed charter amendments have been withdrawn from the field in which the initiatory process is operative by the Constitution and the general law of this State and the property tax code (S8 621). The City has been advised that the defendants have filed an appeal bond and given notice of appeal to the Court of Civil Appeals, Amarillo, Texas. No representation can be made at this time as to the ultimate result of the case on appeal or when any judgment will become final. Other Considerations ... Nevertheless, in the opinion of the City Attorney and Bond Counsel, any charter amendment which would prevent the payment of outstanding bonds (and interest thereon) issued prior to the adoption of the amendment by reducing the maximum tax rate or limit or the assessed valuation of taxable property (by changing the basis or manner of assessing property) would be an impairment of the contractual obligation with holders of the outstanding bonds and therefore not applicable thereto. -5- 1980 Estimated Population - 175,250* Per Capita 1980 Taxable Assessed Valuation - $8,728.64 Per Capita Total Debt - $376.90 Area - 86.87 Square Miles * Source: City of Lubbock, Texas. Note 1: The Tax Assessor -Collector of the City of Lubbock certified the City's 1979 tax roll on September 26, 1979, at $1,415,476,589. On October 1, 1979, assessed values on 15 pieces of property were under litigation; these values are not included in the certified tax roll, but, in the opinion of the City's Tax Assessor -Collector, the final assessed values that may be added to the 1979 Supplemental Roll on these properties will be no less than $9,350,000, which is the approximate total uncontested assessed values on these properties. In addition, on October 1, 1979, assessed values of nine banks were under litigation; in the opinion of the City's Tax Assessor -Collector, the final assessed values that may be added to the 1979 Supple- mental Roll on these banks will be no less than $22,400,000, which is the approximate total assessed values at which the banks rendered their values. Assessed values of various properties under litigation, including those of 9 banks, are not included in the 1980 Taxable Assessed Valuation. Note 2: These exemptions apply to either real or personal property assessments to a maximum of: (1) $16,667 per market value declared homestead for those 65 years of age or older, and (2) $5,000 per market value exemption for disabled veterans. The exemptions may be declared when 'taxes are paid, and the City's Tax Assessor -Collector estimates that some additional exemptions will be recorded. Note 3: As of 7-31-80 the above statement of indebtedness does not include the following presently outstanding Revenue Bonds, as they are payable solely from the net revenues derived from the Systems: $580,000 Waterworks System Revenue Bonds and $16,065,000 Electric Light and Power System Revenue Bonds. The statement also does not include the following: $2,770,000 Airport Revenue Bonds, presently outstanding, as these bonds are payable solely from the gross revenues derived from the City of Lubbock Airport. - 6 - VALUAI.16N AND DEBT INFORMATION 1979- 1980 January 1, Appraised Value of Taxable Property (Source: Tax Assessor -Collector, City of Lubbock) $2,445,330,632 $2,641,281,547 Less Local Exemptions at Market (Appraised) Value (2): Over 65 $ 82,988,900 $ 88,211,500 Disabled Veterans 3,214,083 3 578 800 Total 91,796 January 1, Net Appraised Value $2,359,127,649 $2,549,491,247 Taxable Assessed Valuation (60% of Net Appraised Value) (See Notes 1 and 2) $1,415,476,589 $1,529,694,748 City Funded Debt Payable From Ad Valorem Taxes (As of 7-31-80) (See Notes 3 and 4) General Purpose Bonds (including $550,000 of this issue) $ 31,755,128 Waterworks Bonds (including $16,200,000 of this issue) 30,620,859. Sewer System Bonds 3,633,302 Electric Light Bonds 41,711 TOTAL FUNDED DEBT $ 66,051,000 Interest and Sinking Fund (As of 7-31-80) $ 1,392,803 Ratio Total Funded Debt to 1979 Net Appraised Value ---------------------------------- 2.80% Ratio Total Funded Debt to 1980 Net Appraised Value ---------------------------------- 2.59% Ratio Total Funded Debt to 1979 Taxable Assessed Valuation --------------------------- 4.67% Ratio Total Funded Debt to 1980 Taxable Assessed Valuation -------------=------------- 4.32% 1980 Estimated Population - 175,250* Per Capita 1980 Taxable Assessed Valuation - $8,728.64 Per Capita Total Debt - $376.90 Area - 86.87 Square Miles * Source: City of Lubbock, Texas. Note 1: The Tax Assessor -Collector of the City of Lubbock certified the City's 1979 tax roll on September 26, 1979, at $1,415,476,589. On October 1, 1979, assessed values on 15 pieces of property were under litigation; these values are not included in the certified tax roll, but, in the opinion of the City's Tax Assessor -Collector, the final assessed values that may be added to the 1979 Supplemental Roll on these properties will be no less than $9,350,000, which is the approximate total uncontested assessed values on these properties. In addition, on October 1, 1979, assessed values of nine banks were under litigation; in the opinion of the City's Tax Assessor -Collector, the final assessed values that may be added to the 1979 Supple- mental Roll on these banks will be no less than $22,400,000, which is the approximate total assessed values at which the banks rendered their values. Assessed values of various properties under litigation, including those of 9 banks, are not included in the 1980 Taxable Assessed Valuation. Note 2: These exemptions apply to either real or personal property assessments to a maximum of: (1) $16,667 per market value declared homestead for those 65 years of age or older, and (2) $5,000 per market value exemption for disabled veterans. The exemptions may be declared when 'taxes are paid, and the City's Tax Assessor -Collector estimates that some additional exemptions will be recorded. Note 3: As of 7-31-80 the above statement of indebtedness does not include the following presently outstanding Revenue Bonds, as they are payable solely from the net revenues derived from the Systems: $580,000 Waterworks System Revenue Bonds and $16,065,000 Electric Light and Power System Revenue Bonds. The statement also does not include the following: $2,770,000 Airport Revenue Bonds, presently outstanding, as these bonds are payable solely from the gross revenues derived from the City of Lubbock Airport. - 6 - Note 4: The City's last General Obligation Bond sale was June 26, 1980, when $6,450,000 General Obligation Bonds, Series 1980, were offered and sold. AD VALOREM TAX LEGISLATION The Texas Legislature has recently passed two bills, which have been signed by the Governor, and which will affect the way property is assessed and taxes are collected in the City. Such bills are H.B. 1060, which implements the Texas Constitutional provisions of the "Tax Relief Amendments", and S.B. 621 creating a new "Property Tax Code." H.B. 1060, implementing the "Tax Relief Amendment", provides that an eligible owner of agricul- tural land and timberland may apply to have such properties appraised on the basis of produc- ti4ity value or on the basis of market value, whichever is less. However, eligible timberland may not be appraised at a value lower than it was appraised on the 1978 tax rolls. In addition, the City may postpone such appraisal methods until the 1980 tax year if it officially pre- scribes that the provisions do not apply to 1979 taxes, which was done by the City of Lubbock. H.B. 1060 also provides, with certain exceptions, that intangible personal property is exempt from ad valorem taxes levied by the City. Also exempt are household goods and personal effects. Family-owned automobiles are exempt unless the City takes official action to tax them; these automobiles are exempt in Lubbock. S.B. 621, creating a "Property Tax Code", provides, among other things, for the establishment of county -wide Appraisal Districts and for a state property tax board (the "Board") with authority to adopt rules establishing minimum standards for administration and operation of Appraisal Districts and county assessor/collector offices. The Board, to be appointed by the Governor, will commence operation on January 1, 1980. The Appraisal Districts for each county will also commence operation at that time. The Lubbock County Appraisal District will be responsible for appraising property of each taxing unit that imposes ad valorem taxes in the Appraisal District. The Lubbock County Appraisal District is governed by a board of 5 directors appointed by votes of the governing bodies of Lubbock County, the City of Lubbock, Lubbock Independent School District, and other cities, towns, and school districts in the District with votes weighted by relative tax levy. Beginning in 1982, the appraisal of property within the City will be the responsibility of the Lubbock County Appraisal District, which will be required under the Property Tax Code to assess all property within the Appraisal District on the basis of 100% of its fair market value and is prohibited from applying any assessment ratios. The values placed upon property within the Appraisal District are subject to review by the 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 every five years. A taxing unit such as the City may require annual review at its own expense. In addition, the City is entitled to challenge the termination of appraised value of property within the City by petition filed with the Appraisal Review Board. The Lubbock County Appraisal District has contracted with the City of Lubbock to appraise property within the Appraisal District, commencing in 1982. All taxpaying entities are required to assess on a basis of 100% of appraised value in 1981, with the Appraisal District assuming its responsibilities in 1982. S.B. 621 also provides that by each August 1, or as soon as possible thereafter, the City must adopt a tax rate for the current year. If the effective tax rate, excluding tax rates for bonds and other contractual obligations and adjusted for new improvements, exceeds the rate for the previous year by more than 5%, qualified voters of the City may petition for an election to determine whether to limit the tax rate to no more than 5% above that of the previous year. In addition to providing for a new method of appraisal by the Appraisal District rather than by the City, the Property Tax'Code also provides that the Appraisal District can be required to collect property taxes within the Appraisal District as well as appraising such property if such collecting function is approved by the qualified voters in the Appraisal District after a petition signed by at least 10% of the number of qualified voters, or 10,000 qualified voters, whichever is less, has been presented to the Appraisal District. - 7 - OTHER LIABILITIES On September 1, 1976, the City purchased the land and buildings, owned by Auto Realty Company, Inc., located immediately north of City Hall. For many years previously, this property was the site of a Ford Motor Company dealership. Included in the purchase were 81,250 square feet of land and six buildings of various sizes totaling 52,614 square feet. A part of the property is being used as a City -Hall Annex and the balance is being converted to a Transit System maintenance and storage facility. Total purchase price was $389,820.00. Prior to purchase, the City obtained various appraisals of the property which varied froma high of $1,432,095 to a.low of $362,860. Of the $389,820 purchase price, the City paid $40,000 in cash at the time of closing and executed its note for $349,820 for the balance. This note is classified as part of the City's General Long -Term Debt and is payable from the General Fund. The outstanding principal balance on 9-30-79 was $299,946.80 which matures in 11 annual installments, September 1, 1980, through September 1, 1990, with interest calculated at 7%. NOTE AMORTIZATION SCHEDULE Fiscal Year Ending Outstanding 9-30 Principal Interest Total Balance 299,946.80 1980 $ 19,003.60 $ 20,996.40 $ 40,000.00 280,943.20 1981 20,334.00 19,666.00 40,000.00 260,609.20 1982 21,757.20 18,242.80 40,000.00 238,852.00 1983 23,280.40 16,719.60 40,000.00 215,571.60 1984 24,910.00 15,090.00 40,000.00 190,661.60 1985 26,653.60 13,346.40 40,000.00 164,008.00 1986 28,519.60 11,480.40 40,000.00 135,488.40 1987 30$15.60 9,484.40 40,000.00 104,972.80 1988 32,652.00 7,348.00 40,000.00 72,320.80 1989 34,937.60 5,062.40 40,000.00 37,383.20 1990 37,383.20 2,616.80 40,000.00 -0- $299,946.80 $140,053.20 $440,000.00 In order to provide for a majority of each annual installment on the note, the City Council directed the investment of $399,324.00 of General Fund surplus cash in $384,000.00 par value of U. S. Treasury Bonds, the interest earnings on these bonds to be applied to the annual $40,000.00 installment on the note. Annual interest earnings on the bonds will total $30,990.00, leaving a balance of $9,010.00 to be budgeted from the General Fund each year. 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 $1.50 of the $2.50 maximum tax rate for general obligation debt service. See "Tax Adequacy". -8 -a VALUATION.AND FUNDED DEBT HISTORY TAXABLE ASSESSED VALUATION BY CATEGORY Fiscal Adjustments Period Taxable Assessment Ratio Funded Debt Ending Assessed Funded Debt Out- .to Taxable As % of 9-30 Valuation(l) standing, Year End Assessed Valuation Taxable 388769 5858 ,49(2)--$736,098,000 Real Personal Property: 1969-70 601,789,533(2) 30,862,000 5.13% Estate 1970-71 617,204,605(2) 35,344,000 5.73% 39_16U 1971-72 630,151,893(2) 44,459,000 7.06% 616,10) 1972-73 659,742,523(2) 47,266,000 7.16% 114,993,940 1973-74 716,225,294(2) 53,440,000 7.46% 60% 1974-75 797,387,868(2) 50,546,000 6.34%' 617,204,605 1975-76 923,557,647(2) 47,763,000 5.17% 16,722,500 1976-77 1,014,049,149(2) 43,682,000 4.31% 494,016,482 1977-78 1,104,591,631(2) 42,107,000 3.81% 1973 1978-79 1,298,016,250(2) 47,086,000 3.63% 2,060,909 1979-80 1,415,476,589 49,301,000 3.48% 179,961,580 1980-81 1,529,694,748 61,710,000(3) 4.03% (1) For all years Taxable Assessed Valuations are net of any exemptions. Basis of assessment for all years was 60% of market values. 1976 60% The City's Tax Assessor -Collector maintains an on-going reappraisal of Real Property in the City, reappraising approximately 1/4 of the City each year. In addition, a reappraisal program for automobiles was fully implemented during the period 1973-74 through 1976-77. (2) Taxable Assessed Valuations for Fiscal Periods 1968-69 through 1978-79 have been adjusted for supplements and corrections to the tax rolls made subsequent to certification of the rolls. (3) Anticipated. 1,298,016,250 1979 60% TAXABLE ASSESSED VALUATION BY CATEGORY - 9 - Property Adjustments Assessment For (2) As % of (1) Personal Corrections Taxable Appraised Real Personal Property: And Assessed Year Value Estate Automobile Supplements Valuation 39_16U ___6_0T_463,94$106,344,44U,825,400 �Propert 616,10) 585,496,30 1969 60% 471,312,510 114,993,940 16,352,800 ( 869,717) 601,789,533 1970 60% 474,769,040 124,971,050 17,501,800 ( 37,285) 617,204,605 1971 60% 480,135,900 134,524,140 16,722,500 (1,230,647) 630,151,893 1972 60% 494,016,482 147,500,760 18,501,264 ( 275,983) 659,742,523 1973 60% 527,814,930 158,183,100 28,166,355 2,060,909 716,225,294 1974 60% 583,951,000 179,961,580 37,971,470 (4,496,182) 797,387,868 1975 60% 650,705,600 189,955,-610 51,291,080 31,605,357 923,557,647 1976 60% 705,954,020 223,968,871 68,042,430 16,083,828 1,014,049,149 1977 60% 761,704,740 251,890,585 94,912,585 (3,916,279) 1,104,591,631 1978 60% 941,202,840 274,932,421 93,108,472 (11,227,483) 1,298,016,250 1979 60% 1,105,749,615. 299,117,144 10,609,830(3) N.A. 1,415,476,589 1980 60% 1,195,978,655 323,734,323 9,981,770 N.A. 1,529,694,748 (1} The City's Tax Assessor -Collector maintains an on-going reappraisal program of real property, reappraising approximately 1/4 of real property in the City each year. In addition, a reappraisal program for automobiles was fully implemented during the period 1973-74 to 1976-77. (2) Taxable Assessed Valuations for 1974-1980 are net after the following exemptions (in terms of Assessed Valuation): - 9 - Over 65 Disabled Homestead Veteran Year Exemptions Exemptions 1-974 $ 11,395,000 Not Effective 1975 13,323,150 Not Effective 1976 11,888,760 $ 1,307,240 1977 14,159,830 1,646,220 1978 34,991,600* 1,549,890* 1979 49,793,340** 1,928,450** 1980 52,926,900*** 2,147,280*** * As of 10-1-78. ** As of 10-1-79. *** As of 8-31-80. (3) Personal automobiles -became exempt from ad valorem taxes in 1979. ESTIMATED TAXABLE ASSESSED VALUATIONS (1) Estimated Estimated Taxable Taxable Fiscal Assessed Fiscal Assessed Period Valuation Period Valuation MZ -AT 9,694,748(2) Y9$�$- $ . 0 , 0 (3) 1981-82 2,625,000,000(3) 1983-84 3,000,000,000(3) (1) All estimates are net after estimated exemptions. (2) At 60% of net appraised value. 3) At 100% of net appraised value. See "Ad Valorem Tax Legislation", above. Source: John R. Brooks, Tax Assessor -Collector, City of Lubbock, Texas. AUTHORIZED GENERAL OBLIGATION BONDS Amount Amount Date Amount Heretofore Being Unissued Purpose Authorized Authorized Issued Issued Balance at,+erworks System __5_-_2T--77_$6;775,000 T r F,62 7,00 -0- 50,000 Waterworks System 8- 9-80 21,000,000 -0- 16,200,000* 4,800,000 Sewer System 5-21-77 3,303,000 2,030,000 -0- 1,273,000 Street Improvements 5-21-77 4,782,000 3,143,000 550,000 1,089,000 Storm Sewer and Drainage 11- 9-67 1,950,000 1,715,000 -0- 235,000 Storm Sewer and Drainage 5-21-77 473,000 100,000 -0- 373,000 Fire Station (for adjacent areas, when annexed) 5-21-77 310 000 -0- -0- 310,000 8,593,0008, 613,000 $16,750,000 T13,230,000 * See The Waterworks System, page 17, for an outline of the use of the proceeds of these $16,200,000 Waterworks System Bonds. ESTIMATED GENERAL OBLIGATION BOND PROGRAM Anticipated Issuance Waterworks System Sewer System Street Improvements Storm Sewer and Drainage Fire Station (for adjacent areas, when annexed) - 10 - 1983 1982 or Later Total ,8 0,000 5, 0,000 9,950,000 1,273,000 -0- 1,273,000 1,089,000 -0- 1,089,000 238,000 370,000 608,000 -0- 310 000 310,000 $7,400,000 33ji6666 $13,230,00 d AUTHORIZED BUT UNISSUED GENERAL OBLIGATION BONDS OF OVERLAPPING SUBDIVISIONS The Lubbock Independent School District has $12,000,000 in authorized but unissued School Building Unlimited Tax Bonds. The District does not anticipate issuing $100,000 of these bonds authorized in 1959 for stadium purposes. $11,900,000 of the bonds were authorized in 1977 for various school building purposes; however, due to Federal Court litigation concerning integra- tion, the District has been unable to issue any of these bonds. The District is unable to estimate at this time when the litigation will be resolved or when any of these bonds might be issued. Lubbock County has $500,000 unissued Unlimited Tax Road Bonds, authorized in 1961, but has no plans to issue these bonds. ESTIMATED OVERLAPPING FUNDED DEBT PAYABLE FROM AD VALOREM TAXES As of 7- -80 Estimated Total % Overlapping Taxing Jurisdiction Funded Debt Applicable Funded Debt ity of Lubbock* $66,051,00 100.00% $66,051,000 Lubbock Independent School District 6,770,000 99.53% 6,738,181 Lubbock County -0- 81.18% -0- Lubbock County Hospital District 1,210,000 81.18% 982,278 Lubbock County Water Control and Improvement District No. 1 -0- 81.18% -0- Lubbock -Cooper Independent School District 1,417,000 2.78% 39,393 Frenship Independent School District 4,010,414 16.80% 673,750 Roosevelt Independent School District 616,000 0.51% 3,142 Idalou Independent School District 666,000 0.01% 67 TOTAL OVERLAPPING FUNDED DEBT $74,487,811 Ratio Overlapping Funded Debt to 1979 Taxable Assessed Valuation --------------------- 5.26% Ratio Overlapping Funded Debt to 1980 Taxable Assessed Valuation --------------------- 4.87% Per Capita Overlapping Funded Debt - $425.04 * Includes these $16,750,000 Bonds. TAX DATA (Year Ending 9-30) Distribution (1) Tax Tax General Board of City Interest and (1) % Current % Total Year Rate Fund Development �Fund Tax Levy Collections Collections �_S_inking -$b�9 -$ $U.54 �,499,3�T 6.1 �- 1970-71 1.08 0.43 0.05 0.60 6,665,810 93.90% 97.82% 1971-72 1.14 0.37 0.05 0.72 7,183,732 94.06% 97.92% 1972-73 1.29 0.36 0.05 0.88 8,510,678 93.72% 96.41% 1973-74 1.36 0.46 0.05 0.85 9,740,664 93.18% 96.39% 1974-75 1.36 0.54 0.05 0.77 10,844,475 93.16% 97.26% 1975-76 1.36 0.70 0.05 0.61 12,560,384 93.43% 97.19% 1976-77 1.41 0.75 0.05 0.61 14,298,093 93.09% 95.76% 1977-78 1.41 0.86 0.05 0.50 15,574,742 93.84% 96.41% 1978-79 1.12 '0.75 0.05 0.32 14,537,782 92.75% 95.39% 1979-80 1.12 0.68 0.05 0.39 15,852,487 93.31%* 96.10%* 1980-81 1.10 0.68 0.05 0.37 16,826,642 ** ** (1) "Tax Levy" and "Percent Current Collections" for Tax Years 1969-70 through 1978-79 have been adjusted to reflect final corrections and supplements to the tax rolls as audited at the end of each fiscal year. * Collections for part year only, through 7-31-80. ** Collections begin 10-1-80. 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 January 31 of the following year. Split payments are not permitted. Discounts are not allowed. - 11 - TAX RATE LIMITATIONS 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 types of tax obligations of the City within the limits prescribed by law. Article XI, Section 5, of the Texas Constitution is applicable to the City of Lubbock, and limits its maximum ad valorem tax rate to $2.50 per $100 assessed valuation (for all city purposes). The City operates under a Home Rule Charter which adopts the Constitu- tional provisions. 1% MUNICIPAL SALES TAX (Effective --8 The City has adopted the provisions of Article 1066e, V.A.T.C.S., and levies a 1% Sales and Use Tax within the City. This tax is collected and enforced by the State of Texas Comptroller of Public Accounts, who remits the proceeds, less a service fee, to the City monthly. Revenues from this source have been: Fiscal Net Estimated Year Collections % of Equivalent Net Ended Remitted Ad Valorem Ad Valorem Collections 9-30 to "I_T Tax Levy Tax Rate Per Capita* 1969 2,421,055 38.29% $0.414 . $16.24 1970 2,596,398 39.95% 0.431 17.41 1971 2,964,736 44.48% 0.480 19.88 1972 3,086,164 42.96% 0.490 20.19 1973 3,780,338 44.42% 0.573 23.72 1974 4,537,048 46.58% 0.634 26.52 1975 4,763,912 43.93% 0.597 27.84 1976 5,690,591 45.31% 0.616 32.52 1977 6,806,680 47.61% 0.671 38.90 1978 7,421,615 47.65% 0.672 42.35 1979 8,160,916 56.14% 0.629 44.84 * Based on 1970 U. S. Census for 1969 through 1971, and on estimated population for 1972 through 1979. ** Collections for one quarter only. ESTIMATED 1979-80 TAX YEAR OVERLAPPING TAXES Set forth below is an estimate of all 1979-80 Tax Year taxes levied on an average $50,000 single-family residence by the shown taxing jurisdictions, assuming appraisals are as shown and assessments are made at the estimated basis of assessment. Actual tax billings will vary according to each jurisdiction's assessing procedures and the following does not purport to bean exact computation of such tax levies: Estimated Estimated Estimated 1979 Estimated Appraised Basis of Assessed Tax 1979 Taxes Taxing Juri�sdiction Value Assessment Valuation Rate Levied My o L— ubbock 7WOW 3=. Lubbock Independent School District 45,000** 60% 27,000 1.360 367.20 Lubbock County 25,000 40% 10,000 0.780 78.00 Lubbock County Hospital District 25,000 40% 10,000 0.750 75.00 High Plains Underground Water Con- servation District No. 1 25,000 40% 10,000 0.045 4.50 State of Texas 25,000 40% 7,000*** 0.100 7.00 Estimated Total 1979-80 Ad Valorem Taxes $867.70 * Market value. ** After $5,000 market value residence homestead exemption. *** State ad valorem taxes are levied and collected by each county on each county's basis of assessment; on residence homesteads the tax is calculated after the deduction of $3,000 of Assessed Valuation as a homestead exemption. 12 - TOP TEN TAXPAYERS N 1979 • % of 1979 COMPUTATION OF SELF-SUPPORTING DEBT Net System Revenue Available for Fiscal Year Ending 9-30-79 Less: Revenue Bond Requirements, 1979-80 Fiscal Year Balance Available for Other Purposes System General Obligation Bond Requirements, 1979-80 Fiscal Year Balance Percentage of System General Obligation Bonds Self -Supporting - 13 - Electric Light Waterworks Sewer and Power System System System $1,702,481 $972,942 $4,368,345 470,780 -0- 2,319,280 $1,231,701 $972,942 $2,049,065 1,345,959 522,723 42,033 $ (114,258) $450,219 $2,007,032 91.51% 100.00% 100.00% Taxable Taxable Assessed Assessed Name of Taxpayer Nature of Property Valuation Valuation Southwestern bell Telephone Company Telephone Uti ity. 33,36O, -3-8T 2.36% Texas Instruments Incorporated Electronic Manufacturing 31,248,720 2.21% Southwestern Public Service Company Electric Utility 18,795,680 1.33% South Plains Mall Regional Shopping Center 12,375,400 0.87% Pioneer Natural Gas Company, a sub- sidiary of Pioneer Corporation Gas Utility 7,477,440 0.53% Furr's, Inc. Retail Grocery Company 6,799,750 0.481% Plains Co-op Oil Mill Cotton Oil Mill 6,667,860 0.47% International Business Machines Computers, Business Machines 4,608,600 0.33% Clark Equipment Company Earth Moving Equipment 4,538,200 0.32% Manufacturing Waples-Platter Wholesale Groceries 4 416 480 0.31% $130:288!510-9—.2-N INTEREST AND SINKING FUND MANAGEMENT INDEX General Obligation Debt Service Requirements for Fiscal Year Ending 9-30-80 ----- $6,369,190 Interest and Sinking Fund, All General Obligation Issues, 9-30-79 -- $ 552,320 1979 Interest and Sinking Fund Tax Levy @ 95% Collection ----------- 5,244,341 Estimated Income from Other Sources, as Budgeted ------------------- 1,157,940 6,954,601 Estimated -Surplus --------------------------------------------------------------- $ 585,411 COMPUTATION OF SELF-SUPPORTING DEBT Net System Revenue Available for Fiscal Year Ending 9-30-79 Less: Revenue Bond Requirements, 1979-80 Fiscal Year Balance Available for Other Purposes System General Obligation Bond Requirements, 1979-80 Fiscal Year Balance Percentage of System General Obligation Bonds Self -Supporting - 13 - Electric Light Waterworks Sewer and Power System System System $1,702,481 $972,942 $4,368,345 470,780 -0- 2,319,280 $1,231,701 $972,942 $2,049,065 1,345,959 522,723 42,033 $ (114,258) $450,219 $2,007,032 91.51% 100.00% 100.00% - 14 - b,n to Ln to cnC CL � 0 O O u.i ^ t0 f•� r N M t0 00 001 O U CC 1-4 n w- 1 0N1-4dC>-4mOhMhNt W-4 etr4wm1.4OV' et L Y NCO. -I at OD 101 Ol 1-r u'f ODMNCYMI�c}'h. to O O� C OMCO to 1-10101 OO to 010 etNhto V'h01N t0 t0 h 091- t 0) w w w« w w w« w w w w w w w w« w ~••-m E Cor- M-�r(IjLnko -100 MOiCn C-/MLnp, MMO 00 O d 00 co 01�M Ln O NO co 0101010 tG to Ln to to N L 0) O O to et "1 1-101 t0 C" 0 N O m M N N1•-1 co to b w 10 O� V• f1') M M M en N N N C%j-4 -r or Qw Rr N !h N O C9 p O V• VO• N to r! 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N O)•D 1 0101010101010101010101010101010 CA 010100 •r !- C (IN 1-1 rA .4 1•4 e•i 1-1 1--1 .•i -4 1•4 1-1 1-1 1-4 1-i 1-4 1-4 -i .-4 r/ N N LL. W Y O Z - 14 - PENSION FUNDS Texas Municipal Retirement System ... All permanent, full-time City employees who are not firemen.and who were less than 5U years of age when employed by the City 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. Options offered under the System, and adopted by the City, include current, prior and antecedent service credits, 20 year vesting, updated service credit, and regular and supplemental disability benefits. An employee who retires receives an annuity based on the amount of the employee's contributions over -matched two for one by the City. Employee contribution rate is 5% of gross covered salary. The City's contribution rate is calculated each year using actuarial tech- niques applied to experience; the 1980 contribution rate is 7.46% of gross covered payroll and the 1981 contribution rate will be 7.51%. Enabling statutes prohibit any member city from adopting options which impose liabilities that cannot be amortized over 25 years within a specified statutory rate. The actuarially computed unfunded prior service liability as of December 31, 1979, was $9,474,018; this liability is being actuarially amortized annually. City of Lubbock assets held by the System on December 31, 1979, were $1,385,743 for prior service liabilities and $13,315,993 for accrued current service liabilities. Unfunded accrued current service liabilities totaled $523,297, and are being liquidated by a five year amortiza- tion adjustment included in normal contribution rates. Fireman'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 (one appointed by the firemen trustees and one appointed by the Mayor), the Mayor or his representative and the Director of Finance 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 9% 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 1980 contribution rate is 10.99%. An actuarial evaluation was completed in December, 1977, by the firm of Rudd and Wisdom, Inc., Austin, Texas. A revised benefit plan was subsequently adopted, and the valuation balance sheet estimated unfunded liabilities of $2,918,966. The study concluded that the plan is actuarially sound by maintaining a funding program which would completely amortize this unfund- ed liability in approximately 20 years. Actual contributions at the current rate from firemen and the City will amortize this unfunded liability in approximately 20 years, and pay projected current service accumulation benefits. LUBBOCK POWER AND LIGHT Lubbock Power and Light was established in 1916, and is presently the largest municipal system in the West Texas region and the third largest in the State of Texas. The municipal system competes directly with a privately owned utility company within the corporate limits of the City of Lubbock. Electric rates in the City are set by City Council Ordinance and are the same for both power systems. The private system, Southwestern Public Service Company, was granted a new 20 -year franchise in 1964, which is subject to certain minor amendments each five year period thereafter. The company pays the City a franchise tax of 2% of its gross receipts. At present, Southwestern Public Service supplies power to approximately 50% of the customers in Lubbock. - 15 - Lubbock Power and Light generates all of its power requirements without purchased power supple- ments, and has three generating stations located within the City. These plants are geograph- ically separated from one to seven miles and deliver bulk power to substations through a 69 KV transmission loop system. Generating ... Total generating capacity is 233,150 KW. Gas turbines and I.C. genera- tors provide the system with 64,650 KW of ready reserve and quick -start generation for emergen- cy and peaking service. Generating units consist of the following: Generator Year Capacity Manufacturer Installed Station Prime Mover Fuel in KW Nordberg —930 --i� D�eseT— 900 Nordberg 1933 1 Diesel Dual Fuel 1,000 Nordberg 1937 1 Diesel Dual Fuel 1,250 Nordberg 1938 1 Diesel Dual Fuel 1,500 Nordberg 1940 1 Diesel Dual Fuel 2,250 Nordberg 1942 1 Diesel Dual Fuel 2,250 Nordberg 1946 2 Diesel Dual Fuel 2,500 Nordberg 1947 2 Diesel Dual Fuel 2,500 DeLavel 1949 2 Steam Turbine Gas or Oil 7,500 Westinghouse 1952 2 Steam Turbine Gas or Oil 11,500. Westinghouse 1953 2 Steam Turbine Gas or Oil 11,500 Westinghouse 1957 2 Steam Turbine Gas or Oil 22,000 Westinghouse 1958 2. Steam Turbine Gas or Oil 22,000 Westinghouse 1964 Holly Gas Turbine Gas or Oil 12,500 General Electric 1965 Holly Steam Turbine Gas or Oil 44,000 Worthington 1971 Holly Gas Turbine Gas or Oil 18,000 General Electric 1974 Holly Gas Turbine Gas or Oil 20,000 General Electric 1978 Holly Steam Turbine Gas or Oil 50 000 333:150 Transmission and Distribution ... A 69,000 volt (69 KV) transmission loop system, 36 miles in ength, provides bulk power to seven 20 MVA -69,000/12470 volt -substations. A second 69 KV transmission loop system insulated for operation at 138 KV has been constructed and is ener- gized. The distribution system includes approximately 600 miles of overhead distribution lines and approximately 50 miles of underground distribution lines. There are thirteen 12,470/4160 volt substations in the distribution system. Net system load for Fiscal Year Ending September 30, 1979 was 637,988,480 KWH with a,peak demand of 131,500 KW. Interconnection . The Federal Power Commission made a study of the feasibility of inter- connecting Lubbock Power and Light with another power company, and recommended on May 11, 1977 that the System be interconnected with Southwestern Public Service Company. In 1979, the City contracted with Southwestern for initial delivery of 10 MW of power, and is constructing the necessary interconnect and transmission line. The interconnect will have a capacity of 100 MW. Anticipated date of initial power delivery is mid -1982. Southwestern operates in Lubbock under a franchise and serves an area covering the Panhandle and South Plains of Texas and parts of Eastern New Mexico with an integrated electric genera- ting and distribution system. Fuel .. Primary fuel supply for Lubbock's generating system is natural gas which is supplied by Pioneer Natural Gas Company, a division of Pioneer Corporation, Amarillo, Texas, under a long term contract. Secondary fuel in the form of fuel oil is maintained in storage in the City. Due to transmission system limitations, some brief curtailments of natural gas supply by Pioneer have been experienced in the past few years, and Pioneer indicates that some 50% to 70% short duration (48 hours or less) curtailments, during peak gas usage periods, may be experi- enced in the future. No curtailments in excess of 70% are projected by Pioneer, nor will total annual curtailment exceed 5% of annual volume. The City's present storage capacity of fuel oil, for standby, secondary fuel, is over 3,750,000 gallons; March, 1980 inventory was 1,600,000 gallons. - 16 - In the City's opinion, its fuel supply is favorably positioned due to the long term natural gas reserves presently owned, contracted for and under development by Pioneer Natural Gas Company. CONDENSED STATEMENT OF OPERATIONS ELECTRIC LIGHT ANO P WEER SYSTEM Fiscal Year Ended 9-30-79 9-30-78 9-30-77 9-30-76 9-30-75 Aerating evenues _,6_I9_,M $ff,_44T,-M9$�17428U T,_5F TIT,692=, Non -Operating Income 826,106 624,791 945,564 944,718 805,067 Gross Income $24,445,824 $23,072,509 $20,119,844 $16,712,303 $11,887,144 Operating Expense (excluding depreciation) 20,077,479 17,355,243 14,292,538 11,455,620 8,508,578 Net Revenue $ 4,368,345 $ 5,717,266 $ 5,827,306 $ 5,256,683 $ 3,378,566 Electric Connections 30,390 29,204 28,352 26,969 25,900 Maximum Principal and Interest Requirements, Electric System Revenue Bonds, Fiscal Year Ending 9-30-80 ---------------=-------------------- $ 2,319,280 Coverage by Net Income, Fiscal Year Ended 9-30-79 ------------------------------ 1.88 Times Electric Light and Power System Revenue Bonds Outstanding, 9-30-79 ------------- $17,230,000 Interest and Sinking Fund and Reserve Fund, Cash and Investments, 9-30-79---------------------------------------------------------------------- $ 4,273,711 THE WATERWORKS SYSTEM Water Supply . Primary source of water for Lubbock is the Canadian River Municipal Water Authority which delivers 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 the Authority; other members are Amarillo, Pampa, Borger, Plainview, Slaton, Levelland, Brownfield, Tahoka, O'Donnell and Lamesa. Lubbock re- ceived 33,541 acre feet of water from the Authority in Calendar Year 1979, approximately 89% of the City's total consumption. Financed through the Federal Bureau of Reclamation at a cost of $83,358,280, the Canadian River Project will eventually yield 103,000 acre feet of water annually. Lubbock is entitled to receive 37.058% of the available annual supply - 38,200 acre feet when yield reaches 103,000 acre feet. Cost of the Project is being repaid to the Bureau of Reclamation by the Authority through a reimbursable loan maturing annually through 2018; debt requirements are paid from revenues received by the Authority from sale of water to member cities. Member cities make payments for water received from water revenues. Other Water Supply Sources ... Part of the City's water supply is obtained from 218 water wells, all producing from the Ogallala Formation, which underlies the High Plains of Texas. Combined capacity of these wells is 45,400,000 galldns per day. Primary underground supply wells are located in the "Sand Hills" tract area about 60 miles northwest of Lubbock in Lamb and Bailey Counties, in which the City owns approximately 75,000 acres of water rights. 18,000 acres have been developed with 108 producing wells. This water source is now used primarily for peaking purposes. 50 Year Water Supply Study... The City of Lubbock has conducted an investigation of additional To -ng term water supply sources. Freese and Nichols, Inc.,. Consulting Engineers, Fort Worth, Texas, who conducted this investigation for the City, have recommended consideration of a site on the North Fork of the Double Mountain Fork of the Brazos River (the "Post Site") and a site on the South Fork of the Double Mountain Fork of the Brazos River (the "Justiceburg Site"), about 35 and 50 miles southeast of Lubbock respectively, for the development of additional surface supplies. Freese and Nichols reported to the City that the quantity and quality of water available, particularly at the "Justiceburg Site", are suitable for development. Devel- opment.of these supplies would provide the City with a dependable supply of approximately 29 million gallons per day. The City has submitted an application to the Texas Department of Water Resources for rights to the Justiceburg Reservoir site. $5,250,000 of the $16,775,000 Water- works System Bonds approved at the election on May 21, 1977, were included to finance prelimi- nary costs of a third water source. - 17 - equi�The S stem .. Lubbock's Waterworks System is modern and efficient and property, plant and valued at $34,042,397, after depreciation and including cost of construction work in progress, at September 30, 1979. Equipment includes remote control and.communication facili- ties 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 165,000,000 gallons per day. Average daily water consumption was 33.8 million gallons in 1979. Storage capacity consists of 13 ground storage reservoirs and 3 elevated steel storage tanks, providing a total storage capacity of 49,350,000 gallons. Storage capacity is entirely ade- quate for peak hour and fire protection requirements. A new 10,000,000 gallon storage reser- voir and pump station will be completed during the summer of 1980. Water Treatment Facilities ... A water treatment plant for the treatment of water received from the Canadian River Municipal Water Authority ("CRMWA") was completed in 1967. Maximum daily input of "CRMWA" water is 42MGD under Lubbock's contract. Present capacity of the plant is 56MGD. The plant also treats "CRMWA" water for several other members of the Authority; the City of Lubbock is fully reimbursed for these costs. Proceeds of the $16,200,000 Waterworks System Bonds ... Proceeds of these Waterworks System Bonds will be used as follows: Estimated Allocation Purpose of Funds Water Treatment Plant and Supply Expansion $ 8,285,000* Bailey County Well Field Expansion (25 wells and Collection System expansion) 5,200,000 Distribution System Pump Station 585,000 Distribution System Main Lines 2,055,000 Storage Building at Bailey County Well Field 75 000 * Water treatment plant and supply expansion consists of 3 increments: 1. Construction of a 1,200 acre foot open storage reservoir near the City's present water treatment plant to permit the storage of surplus water received from the Canadian River Municipal Water Authority in off-peak periods. "CRMWA" deliveries are limited by contract to 42MGD; the reservoir will permit storage of water when demand does not require full utilization of contract allocation. 2. Water treatment plant expansion is designed to increase the plant's treatment capability for 56MGD to 75MGD, permitting treatment of stored surplus water as well as delivered water during peak demand periods. 3. Construction of an additional high service pump station at the treatment plant with associated transmission distribution mains into the distribution system to permit expanded delivery of treated water. Estimated Cost of Expansion Program 1,200 Acre Foot Reservoir $ 8,915,000 Treatment Plant Expansion 2,655,000 Pump Station and Lines 2,285,000 Total $13,855,000 Sources of Funds Estimated Allocation from the Bonds $ 8,285,000 Funds on Hand 5,570,000 Total $13,855,000 -18- (71 Waterworks Revenue Bonds ... There are no authorized but unissued Waterworks Revenue Bonds. CONDENSED STATEMENT OF OPERATIONS WATERWORKS SYSTEM Fiscal Year Ended 9-30-79 9-30-78 9-30-77 9-30-76 9-30-75 Aerating Revenues 9$ $7,001,353. ,0 , $4,966,645 ,6 ,8 19 Non -Operating Income 841,414 480,397 277,718 304,751 427,944 Gross Income $7,660,112 $7,481,750 $5,293,162 $5,271,396 $5,090,779 Operating Expense (excluding depreciation)* 5,957,631 5,1309938 4,260,222 398019437 3,498,878 Net Revenue $1,702,481 $2,350,812 $1,032,940 $1,469,959 $1,591,901 Water Meters 53,458 52,408 50,442 .48,777 47,526 * Operating expense includes construction repayment costs and operating and maintenance charges paid to the Canadian River Municipal Water Authority. Maximum Principal and Interest Requirements, Waterworks Revenue Bonds, Fiscal Year Ending 9-30-80 ---------------------------------------------------- $ 470,780' Coverage Based on Net Income, Fiscal Year Ended 9-30-79 ------------------------- 3.62 Times Waterworks System Revenue Bonds Outstanding, 9-30-79 ---------------------------- $1,020,000 Interest and Sinking Fund and Reserve Fund, 9-30-79 ----------------------------- $1,906,665 INCREASE IN WATER RATES Effective October 1, 1977, water rates were increased approximately 15%, and on October 1, 1978 and October 1, 1979, were again increased 10%. On June 4, 1980, monthly water rates will be increased as follows: Old Rates Effective 10-1-79 New Rates (Effective 6-4-80) First — ,000 gallons $3.1200 (Min_i_m__umT First 1,000 gallons $3.75 Minimum] Next 24,000 gallons 0.7018/M gallons Next 49,000 gallons 0.77/M gallons Next 225,000 gallons 0.5445/M gallons Next 200,000 gallons 0.66/M gallons All Over 250,000 gallons 0.4840/M gallons All Over 250,000 gallons 0.62/M gallons On October 1, 1980, rates will again be increased by approximately 20%: First 1,000 gallons $4.50(Minimum) Next 49,000 gallons 0.93/M gallons Next 200,000 gallons 0.80/M gallons All Over 250,000 gallons 0.75/M gallons AIRPORT SYSTEM The City has owned and operated its airport since 1929, with scheduled airline service beginn- ing in 1946. Lubbock Regional Airport is located six miles north of the central business district and has an area of over. 2,437 acres, of which approximately 1,500 acres is used for farming and clear zones. Scheduled Airline Service .. Scheduled airline transportation is furnished by Braniff Inter- national, Continental Airlines, Texas International Airlines, and Southwest Airlines; ' all flights are by jet aircraft. Air Midwest, a Wichita, Kansas, based regional certificated air carrier, also serves the City. There is 1 commuter airline, Permian Airways. Non-stop service is provided to Dallas -Fort Worth Regional Airport, Dallas Love Field, Houston, El Paso, Austin, Amarillo, Midland -Odessa, *and Albuquerque. 1979 passenger enplanements, including feeder airlines, totaled 490,451, up from 482,825 in 1978. Lubbock International Airport Terminal ... The terminal building, completed in April, 1976' contains approximately 144,OTO square feet, the terminal houses airport administrative offices, airline offices and ticket counters, the baggage claim area, car rental offices, a restaurant and inflight meal preparation kitchen, and meeting and press rooms, and provides 6 gates for airline use; 5 gates are jetway equipped. Parking space at the terminal has been a 4 expanded through construction of a new 2 -level 740 space parking building, which gives the Airport a total parking capacity of 1,820, including 140 employees. A new FAA control tower became operational in March, 1977. The old terminal building has been converted to government and commercial office space and houses a FAA General Aviation District Office. A FAA -operated Flight Service Station is located adjacent to the old terminal, Federal Express services are available. Runway System ... The runway system consists of: 1 - 11,500' x 150', north/south, primary runway with high intensity lighting and a FAA -operated instrument landing system and other navigational aids; 1 - 8,000' x 150', east/west, cross -wind runway, with high intensity lighting and VASI-4; 1 _ 2,800' x 150' general aviation runway; and a taxiway system connecting the runways with aprons, the terminal and other facilities. The airport also has a non -directional radio beacon (BOq-272). General Aviation Facilities ... A building designed for the use of private aviation is located on the east side of the airport. This 8,779 square foot building still houses some general aviation services, a National Weather Service office and a U. S. Customs office. General aviation services are mainly available from two major fixed base operators who provide hangars, aprons, fuel sales and other services for private aviation. 100 T -Hangars house most of the approximately 200 private aircraft that are based at the airport. Warehouses and Land Rentals ... The airport has five 16,000 square foot warehouses and six other warehouses for storage space rental. CONDENSED STATEMENT OF OPERATIONS A P T YS M Fiscal Year Ended 9-30-79 9-30-78 9-30-77 9-30-76 9-30-75 Operating Revenues $1,863,062 $1,866,710 ,467,7 6 $1,049,010 T 837,027 Non -Operating Revenue 413,953 257,945 185,865 217,349 498,084 Gross Income $2,277,015 $2,124,655 $1,653,581 $1,266,359 $1,335,111 Operating Expense (excluding depreciation) 1,467,720 1,191,964 1,183,939 1,004,674 712,007 Net Revenue $ 809,295 $ 932,691 $ 469,642 $__261,685 $ 623,104 Maximum Principal and Interest Requirements, Airport Revenue Bonds, Fiscal Year Ending 9-30-80 (secured by Gross Income from System) -------------- $ 371,181 Coverage Based on Gross Income, Fiscal Year Ended 9-30-79 ----------------------- 6.13 Times Airport Revenue Bond—s-Outstanding, 9-30-79 -------------------------------------- $2,895,000 Interest and Sinking Fund, 9-30-79 ---------------------------------------------- $ 416,963 Reserve Fund, Cash and Investments, 9-30-79 ------------------------------------ $ 300,000 - 20 - GENERAL INFORMATION REGARDING THE CITY AND ITS ECONOMY 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 this area. POPULATION ... Lubbock is the eighth largest City in Texas: City of Lubbock (Corporate -Limits) 1910 Census 1,938 1920 Census 4,051 1930 Census 20,520 1940 Census 31,853 1950 Census 71,390 1960 Census 128,691 1970 Census 149,101 1980 (Estimated) 175,250* * Source: City of Lubbock, Texas Standard Metropolitan Area (Lubbock County) 1970 Census 179,295 1980 (Estimated) Over 200,000 AGRICULTURE ... I 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, grain sorghums and corn with livestock, sunflowers and soybeans as additional sources of agricultural income. I The Texas Department of Agriculture and the Statistical Reporting Service, U. S. Department of Agriculture, in 1978 Texas County Statistics, report as follows: 0 Lubbock County's 1978 cotton production was 228,000 bales, and grain sorghum production was 1,006,300 bushels, and corn production was 805,900 bushels. • On January 1, 1979, there were an estimated 65,000 head of cattle located on farms or in feed lots in Lubbock County. An estimated 127,000 cattle were marketed from feed lots during 1978. 0 Lubbock County Cash Receipts from farm marketings, 1975/78, were: 1975 1976 19771978* All Crops $56,260,0a6 $ 7$,163,0 Livestock and Products 31,275,000 26,374,000 27,455,000 27,233,000 U. S. Government Payments 4,615,000 2,796,000 1,153,000 6,498,000 Total Cash Receipts $92,150,000 $104,630,000 $106,122,000 $111,914,000 * Preliminary - subject to revision. 1 1978 cotton production in a 23 county (including Lubbock County) area surrounding Lubbock was 1,986,500 bales; 1978 grain sorghum production in this same area was 30,116,100 bushels and grain corn production was 79,658,000 bushels; and 1978 cash receipts from farm marketings were 51,534,113,000. Three major vegetable oil plants located in Lubbock have a combined weekly capacity of over 2,400 tons of cottonseed and soybean oil. I Several major seed companies are headquartered in Lubbock. 0 Several major seed companies are headquartered in Lubbock. - 21 BUSINESS AND INDUSTRY Lubbock SMSA Labor Force Estimates (Source: Texas Emp oymentomn�n) May April March May April March 1980 1980 1980 1979 1979 1979 Civilian Labor Force0_0,34 101,0�6� 98-,M 102,530 TUG,37U Total Employment 96,340 97,390 96,250 94,410 99,320 97,240 Unemployment 4,090 3,900 4,020 3,700 3,210 3,130 Percent Unemployed 4.1% 3.9% 4.0% 3.8% 3.1% 3.1% 0 -The Texas Employment Commission reported in June, 1980, that May, 1980, nonagricultural employment in the Lubbock area totaled 89,230, up from 87,560 in May, 1979; of this total an estimated 12,980 were employed in manufacturing compared to 12,570 in May, 1979. Over 240 manufacturing plants in Lubbock produce such products as consumer products utiliz- ing semi -conductor elements, vegetable oils, heavy earth -moving machinery, irrigation equip- ment and pipe, farm equipment, electronic instruments, 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. Some larger industries in Lubbock (with more than 100 employees) are: Estimated Employees January, Company Product 1980* Texas Instruments, Inc. Consumer Products with Semi -Conductor' 3,500+ Elements Johnson Manufacturing Company (Division of Heavy Earth -Moving Machinery and 725+ Eagle-Picher Industries) Farm Equipment Lubbock Avalanche -Journal Southwestern Newspaper 382+ Newspaper Corporation Litton Data Systems, Guidance and Control Navigational Equipment; Electronic 350+ Systems Division, Litton Industries, Inc. Computer Systems Plains Co-op Oil Mill Vegetable Oil Products, Cottonseed 350+ Products Lubbock Manufacturing Company Pressure Vessels 322+ Frito-Lay, Inc. (Subsidiary of Potato and Corn Chips 303+ Pepsico, Inc.) Clark Equipment Company (Hancock Heavy Road and Earth -Moving 290+ Division) Machinery Goulds Pumps, Inc. Vertical Turbine Pumps 240+ Devro Inc. (Subsidiary of Johnson and Sausage Casings and Tannery 187+ Johnson) Mrs. Baird's Bakeries Coca-Cola Bottling Company Bush Hog -Husky Company (Subsidiary of Allied Products, Inc.) Horn & Gladden, Inc. Grinnell Fire Protection Systems Company (Subsidiary of Tyco Laboratories) Rainbo Baking Company, subdivision of Cambell -Taggart Associated Bakeries, Inc Bell Dairy Products, Inc. Hall Foundries & Manufacturing, Inc. Lubbock Cotton Oil Company . Dr. Pepper -Seven Up Bottling Company Farm Pac Kitchens Nubro Corporation * Source: Lubbock Chamber of Commerce. Bread Products 180+ Soft Drinks 179+ Structural Steel Fabrication, Irriga- 155+ tion Equipment, Pollution Equipment Steel Fabrication 153+ Automatic Sprinkler Heads 150+ Bread Products 130+ Dairy Products 126+ Aluminum and Brass Castings, Wooden 125+ Foundry Patterns Cottonseed Oil and Other Cottonseed 125+ Products, Soyean Oil Soft Drinks 100+ Meat Processing 100+ Reground Ball Bearings, Formed Wire 100+ Coils, Starter Armatures - 22 - i 0 Texas Instruments, Inc., world leading developer and producer of semi -conductors and other electronic products, commenced manufacturing operations in Lubbock in April, 1973. The company employs over 3,000 in the manufacture of consumer products utilizing semi -conductor elements, and the servicing of these products. The Company's Consumer Products Division headquarters is located in Lubbock, and automated watch manufacturing has been moved to Lubbock. 0 Michelin Tire Corporation, Manufacturing Division, is constructing a tire manufacturing plant on a 510 acre site in northeast Lubbock; completion is scheduled in 1982 and projected employment is 800 - 1,000. 0 Wholesale distribution represents a major sector of the Lubbock eonomy, with hundreds of outlets serving a 54 county area in West Texas and New Mexico. 0 The U. S. Bureau of the Census, Census of Business, 1972, estimated Lubbock County (Lubbock Standard Metropolitan Area) retail trade at $481 million in 1972. Sales & Marketing Management, Survey of Buying Power, estimates Lubbock County 1978 retail sales at $818,428,000. 0 There are ten banks in the City ... American State Bank, established 1948; Texas Commerce Bank (formerly Citizens National Bank), established 1906; First National Bank, established 1901; Lubbock National Bank, established 1917; The Plains National Bank, established 1955; • Security National Bank, established 1963; Bank of the West, established 1973; Texas Bank & Trust Co., established 1973; Southwest Lubbock National Bank, established 1978; and Liberty State Bank, established 1979. There are six savings and loan associations in the City. Combined Bank Statistics Year End Deposits Year End Deposits X968 T388,630,275 1974 $� 793,915,466 1969 412,459,082 1975 878,164,171 1970 477,247,184 1976 1,013,973,289 1971 527,314,293 1977 1,104,602,863 1972 596,697,439 1978 1,104,896,188 1973 723,327,701 1979 1,220,257,982 EDUCATION ... TEXAS TECH UNIVERSITY ... 0 Established in Lubbock in 1925, Texas Tech University is the third largest State-owned University in Texas and had a Spring, 1980 enrollment of 21,169. Accredited by the Southern Association of Colleges and Schools, the University is a co-educational, State -supported insti- tution offering the bachelor's degree in 75 major fields, the master's degree in 62 major fields, the doctorate degree in 33 major fields, and the professional degree in 2 major fields (law and medicine). 0 The University proper is situated on 451 acres of the 1,766 acre campus, and has over 90 permanent buildings with additional construction in progress. 1979-80 faculty membership is 1,467, and over 3,000 other full and part-time employees including professional and administra- tive staff. Including the Medical School, the University's operating budget for 1979-80 is over $106.6 million of which $82.6 million is from State appropriations; book value of physical plant assets, including the Medical School, is $274 million. 0 In 1969, the State Legislature authorized the establishment of a medical school at the University. Construction of Pod A of the school is complete, and construction on Pods B and C is approximately 60% complete. The medical school opened in 1972, and had an enrollment of 220 for the Spring Semester, 1980, not including residents. OTHER EDUCATION INFORMATION ... 0 The Lubbock Independent School District, with an area of 87 square miles, includes over 95% of the City of Lubbock. August, 1980 opening enrollment for the 1980-81 school year was 27,613; there were 2,021 faculty and professional personnel and 1,224 other employees. The District operates 5 senior high schools, 8 junior high schools, 35 elementary schools and other educational programs. - 23 - SCHOLASTIC MEMBERSHIP HISTORY (1) Scholastic Refined Average School Year Membership Daily Attendance 1968-69 2,5Ui 3I;3bB 1969-70 32,401 31,322 1970-71 32,648 31,477 1971-72 32,660 31,355 1972-73 32,063 30,716 1973-74 32,499 30,477 1974-75 32,209 30;255 1975-76 31,733 29,936 1976-77 31,502 29,683 1977-78 31,163 29,554 1978-79 29,877 28,284 1979-80 28,751 27,257 (1) Source: Superintendent's Office, Lubbock Independent School District. 0 Lubbock Christian College, a privately owned, co-educational senior college located in Lubbock, had an enrollment of 1,188 for the Spring Semester, 1980, and offers 23 bachelor degree programs. 0 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, 1980, enrollment was 512. The College also operates a major off -campus learning center at Reese Air Force Base; course offerings are in primarily academic subjects and Spring, 1980 enrollment was 356. 0 The State of Texas School for the Mentally Retarded, located on a 220 acre site in Lubbock, now consists of 37 buildings with accommodations for 605 students. The School's operating budget for 1979/80 is in excess of $8.5 million. The School is operating at 100% capacity, and has over 700 professional and other employees. TRANSPORTATION ... 0 Scheduled airline transportation is furnished by Braniff International, Continental Air- lines, Texas International, Southwest Airlines, Air Midwest and a commuter airline. Non-stop service is provided to Dallas -Fort Worth Regional Airport, Dallas Love Field, Houston, Amarillo, Austin, El Paso, Midland -Odessa and Albuquerque. 1979 passenger boardings totaled 490,451. Extensive private aviation services are located at the airport. Federal Express services are available. 0 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. Texas, New Mexico and Oklahoma Bus Lines, a subsidiary of Greyhound Corporation, provides bus service. Headquarters for T.I.M.E.-DC, Inc., a trans- continental motor carrier, are located in Lubbock, and 14 motor freight common carriers provide service. 0 Lubbock has a well developed highway network including 4 U. S. Highways, 1 State Highway, a controlled -access outer loop and a county -wide system of paved farm -to -market roads. The U. S. Department of Transportation is extending the Interstate Highway System to Lubbock through construction of a 125 mile interstate highway (Interstate Highway 27) linking Lubbock to Interstate 40 at Amarillo; first stage construction north of Lubbock is in progress. GOVERNMENT AND MILITARY ... 0 Reese Air Force Base, located 5 miles west of Lubbock, is an undergraduate Jet Pilot Training Base of the Air Training Command. The Base covers over 3,000 acres and in May, 1980, had 2,805 military and approximately 600 civilian personnel. 0 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. 0 Federal Government ... 11 Federal departments, a Federal District Court, and various other administrations and agencies have offices in Lubbock; several departmental and administration offices have more than one division. -24- HOSPITALS AND MEDICAL CARE 6 There are seven hospitals with a May, 1980 total of 1,279 beds. Methodist Hospital, the largest, employs 522 of its licensed 549 beds, and also operates an accredited nursing school. St. Mary's of the Plains Hospital utilizes 175 beds of its licensed 220 beds; West Texas Hospital has 134 beds; Highland Hospital has 123 beds; University Hospital, Inc. has 80 beds and Community Hospital of Lubbock has 60 beds. Lubbock County Hospital District, with boundaries contiguous with Lubbock County, owns the Health Sciences Center Hospital which it operates as a teaching hospital for the Texas Tech University Medical School, utilizing 185 of its licensed 273 beds. 0 Lubbock has over 200 practicing physicians and surgeons (M.D.) plus the Texas Tech Univers- ity Medical School Staff, and over 80 dentists. A radiology center for the treatment of malignant diseases is located in the City. RECREATION AND ENTERTAINMENT ... 0 Lubbock's Mackenzie State Park and 50 City parks provide recreation centers, playgrounds, 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 500 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 2 country clubs, each with a golf course, swimming pool and tennis courts. 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 Civic Center, a new convention and civic center completed in March, 1977, and the main City library building. The west and south periphery, about 50 acres, is being redeveloped privately with an office building, motels, a hospital, and other facilities. 0 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 ... O Lubbock has approximately 200 churches representing more than 25 denominations. UTILITY SERVICES ... • Water and Sewer - City of Lubbock. 0 Gas - Pioneer Natural Gas Company, a subsidiary of Pioneer Corporation. ® Electric - City of Lubbock and Southwestern Public Service Company. Telephone - Southwestern Be11,Telephone Company. MEDIA ... Newspapers - 1 daily; others bi-weekly, weekly or monthly. 0 Television - 3 network channels; 1 educational public service channel. I Radio - Combined total of 16 AM and FM stations. -25- t0 0h NC1 Ln N0 M hwyO #Z .� V1 .-•/ O 001 0 In tt tD 001 t0 M r•4� rn lChOhOIMM MhON t0 1 to "t0 MMe-1hhN h Oto 0 )1 1N•1 C 0� NC}'. -IM LO N hOLn h N T O U 01 0 /+') N C% % w t0 E p- "M -it qr LO Ln Ln t0 0 O •-1 .-n .-1>1 L c 10 o nro LI- O r O)C. C 0 h In 0 d• N tO h O M O1 M U O 0 et tt 0-cr 001 to h 0 1 >1� '' O Ln NM O1 Cn V' 0 % t0 4-+•r r > N 01 in 1•4 -4 Ln .-i 01 n %D 0o .- h i 4_ O••4 N " f•Y vLn tO to O 1--� N .•-1 .-1 w•4 1--L w -n r/ r1 wy w -i r/ .-4 +� c to •� b N 0 N d d O • 4-1 r•1 tOOh d' 01 r/ 0hM tt It7 O c U L•h tO h.M O1 M LL•) O h" 01 L N 41 0r40101h 01httOO1-1N U �L C ! 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An explanation of the significance of such ratings may be obtained from the company furnishing the rating. The ratings reflect only the respective views of such organizations and the City makes no representation as to the appropriateness of the ratings. There is no assurance that such ratings will continue for any given period of time or that they will not be revised downward or withdrawn entirely by either or both of such rating companies, if in the judgment of either or both companies, circumstances so warrant. Any such downward revision or withdrawal of such ratings, or either of them, may have an adverse effect on the market price of the Bonds. TAX EXEMPTION The delivery of the Bonds is subject to an opinion of Messrs. Dumas, Huguenin, Boothman & Morrow, Bond Counsel to the City ("Bond Counsel"), to the effect that interest on the Bonds is exempt from all present Federal income taxes under existing statutes, rulings, regulations and court decisions. The laws, regulations, court decisions and administrative regulations and rulings upon which the conclusion stated in Bond Counsel's opinion will be based are subject to change by the Congress, the Treasury Department and later judicial and administrative decisions. REGISTRATION AND QUALIFICATION OF BONDS FOR SALE The sale of the Bonds has not been registered under the Federal Securities Act of 1933, as amended, in reliance upon the exemption provided thereunder by Section 3(a) (2); and the Bonds have not been qualified under the Securities Act of Texas in reliance upon various exemptions contained therein; nor have the Bonds been qualified under the securities acts of any juris- diction. • The City assumes no responsibility for qualification of the Bonds under the securi- ties laws of any jurisdiction in which the Bonds may be sold, assigned, pledged, hypothecated or.otherwise transferred. This disclaimer of responsibility for qualification for sale or other disposition of the Bonds shall not be construed as an interpretation of any kind with regard to the availability of any exemption from securities registration provisions. LEGAL INVESTMENTS IN TEXAS The Bonds are legal investments for sinking funds of Texas counties, cities and towns. They are eligible to secure Texas state, county, city and school district funds and constitute legal investments for insurance companies in the State of Texas. No review has been made of the laws of states other than Texas to determine whether the Bonds are legal investments for various institutions in those states. LEGAL OPINIONS AND NO -LITIGATION CERTIFICATE The City will furnish a complete transcript of proceedings had incident to the authorization and issuance of the Bonds, including the unqualified approving legal opinion of the Attorney General of the State of Texas, to the effect that the Bonds are valid and legally binding obligations of the City, and based upon examination of such transcript of proceedings, the unqualified approving legal opinion of Bond Counsel, to like effect and to the effect that the interest on the Bonds is exempt from Federal income taxation under existing statutes, regula- tions, rulings and court decisions. 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 Bonds, or which would affect the provision made for their payment or security, or in any manner questioning the validity of said Bonds or the coupons appertain- ing thereto, 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 Bonds in the Official Statement to verify that such description conforms to the provisions of the bond resolution. The legal fees to be paid Bond Counsel for services rendered in connection with the issuance of the Bonds are contingent on the sale and delivery of the Bonds. The legal opinion will be printed on the Bonds. - 27 - (71 AUTHENTICITY OF FINANCIAL 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. CERTIFICATION OF THE OFFICIAL STATEMENT At the time of payment for and delivery of the Bonds, the Purchaser will be furnished a certificate, executed by proper officers, acting in their official capacity, to the effect that to the best of their knowledge and belief: (a) the descriptions and statements of or pertain- ing to the City contained in its Official Statement, and any addenda, supplement or amendment thereto, on the date of such Official Statement, on the date of sale of said Bonds and the acceptance of the best bid therefor, and on the date of the delivery, were and are true and correct in all material respects; (b) insofar as the City and its affairs, including its financial affairs, are concerned, such Offici.al Statement did not and does not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; (c) insofar as the descriptions and statements, includ- ing financial data, of or pertaining to entities, other than the City, and their activities contained in such Official Statement are concerned, such statements and data have been obtained from sources which the City believes to be reliable and that the City has no reason to believe that they are untrue in any material respect; and (d) there has been no material adverse change in the financial condition of the City since the date of the last audited financial statements of the City. The City will furnish the Purchaser, as a part of the transcript of proceedings, a certified copy of a resolution of the City Council as of the date of the sale of the Bonds which will approve the form and content of this Official Statement, and any addenda, supplement or amendment thereto, and authorize its further use in the reoffering of the Bonds by the Pur- chaser. BILL McALISTER Mayor ATTEST: EVELYN E. GAFFGA City Secretary - 28 - APPENDIX The information contained in this Appendix has been reproduced from the City of Lubbock, Texas Annual Audit Report for the Fiscal Year Ended September 30, 1979. The information pre- sented represents only a part of the Annual Audit Report and does not purport to be a complete statement of the City's financial condition. Reference is made to the complete Annual Audit Report for further information. AUDITED FINANCIAL STATEMENTS GENERAL FUND AND DEBT SERVICE FUND CITY OF LUBBOCK, TEXAS September 30, 1979 i CONTENTS Accountants' Report Page 3 General Fund Balance Sheet 4 Statement of Changes in Fund Balance 6 Statement of Revenues 7 Detail Statement of Appropriations, Expenditures and Encumbrances 11 Debt Service Fund Balance Sheet 13 Statement of Revenues, Expenditures and Fund Balance 14 Notes to Financial Statements 1g MASON, NICKELS & WARNER 0 El CHRTIFIHD PUBLIC ACCOUNTANTS SU'TE 4601 TOWER OF T1_E PLAINS 1600 UNVERSITY AVENUE i PO. BOX 36701 LL1690CK, TEXAS 794521 g808) 797-3251 Honorable Dirk West, Mayor Members of the City Council City of Lubbock, Texas We have examined the balance sheets of the General Fund and the Debt Service Fund of the City of Lubbock, Texas as of September 30, 1979, and September 309 1978, and the related statements of changes in fund balance, revenue, and appropriations expenditures and encumbrances for the years then ended. Our examinations were made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the financial statements referred to above present fairly the financial position of the General Fund and the Debt Service Fund of the City of Lubbock, Texas as of September 30, 1979, and September 30, 1978, and the results of their operations and changes in fund balance for the years then ended in conformity with generally accepted accounting principles applied on a consistent basis. / I / Lubbock, Texas January 25, 1980 3 EAE I AMERICAN INSTITUTE OF CERTIRIEO PUBLIC ACCOUNTANT® I TE%AB aoaETV OF pRTpIEp Puwuq A �iiW'4`XF, GENERAL FUND The General Fund is used to account for all revenues and expenditures of the City which are not accounted for in other City funds. It receives a greater variety and number of taxes and other general revenues than any of the other City Funds. The fund's resources also finance a wider range of activities than any other funds. GENERAL FUND BALANCE SHEET CITY OF LUBBOCK, TEXAS September 30 September 30 1979 1978 ASSETS Cash and investments - Note B $ 96,844 $ 3,113,203 Delinquent taxes receivable, less estimated uncollectible taxes (1979 - $2,817,068; 1978 - $2,359,980) 354,840 296,771 Taxes in litigation - Note C 156,244 131,463 City sales tax receivable 2,208,102 1,978,390 Hotel/motel tax receivable 141,900 112,126 Paving assessments, less estimated uncollectible accounts (1979 - $258,612; 1978 - $257,834) 528,995 273,014 Other accounts receivable, less estimated uncollectible accounts (1979 - $21,908; 1978 - $20,965) 188,009 2179434 Due from other funds 79420,846 5,219,103 Due from federal government - Note D Due from 1359475 399,992 county government 3,870 Due from Cirfc Lubbock, Inc. 148,554 41,366 Due from school district 147,155 Prepaid expense Insurance deposit 480,537 380,672 Stores inventory 252,236 177,679 338,228 255,582 Advance to electric fund 3,650,635 3,532,823 Advances to other funds 378,950 16.091.921 2 16.669.117 4 - LIABILITIES AND FUND EQUITY LIABILITIES: Accounts payable Accrued liabilities Due to other funds Due to BCD Due to other agencies Revenue collected in -advance Sculpture fund Advance from sewer fund FUND EQUITY September 30 . September 30 1979 1978 $ 2,184,488 $ 2,105,771 436,065 370,913 59763,134 4,036,954 18,310 37,084 27,191 400,000 4,229 6,047 50 1,000,000 1,500,000 9,433,417 8,056,819 Reserved for encumbrances 424,891 57,177 Reserved for inventory of supplies 177,679 255,582 Reserved for long—term investment 400,000 400,000 Reserved for cemetery perpetual care 22,767 22,767 Reserved for special projects 17,269 10,141 Reserved for arts 52,308 50,708 Unreserved: Designated for receivables 390,014 390,014 Designated for advance to electric revenue fund loan 300,000 1,694,000 Designated for advance to electric revenue fund inventory 925,823 Undesignated — Note G 4,873,576 4,806,086 Total Fund Equity 6,658,504 8,612,298 COMKITMENTS AND CONTINGENCIES —Notes C, F, G & H 16,091,921 1_1§,,669,117 5 GENERAL FUND STATEMENT OF CHANCES IN FUND EQUITY CITY OF LUBBOCK, TEXAS Fund equity at beginning of year Excess of revenues over expenditures and encumbrances Revenues Expenditures Encumbrances Transfers in/(out) of Fund Equity: Reserved for inventory of supplies Reserved for encumbrances Reserved for advance to electric revenue fund—loan Reserved for advance to electric revenue fund—inventory Reserved for special projects Reserved for arts FUND EQUITY AT END OF YEAR 6 Year Ended September 30 1979 1978 $ 8,612,298 $ 8,0879723 29,785,077 26,289,374 (29,230,246) (25,320,155) (424,891) (57,177). 129,940 912,042 (77,903) 367,714 (3870467 ) (1,394,000) (925,825) (3,280) (50,442) (2,083,734) (387.467) 3 6.658.504 $ 8.612.298 Taxes General property taxes - current Estimated uncollectible taxes - general property taxes Penalties and interest on delinquent taxes - general property City sales taxes Franchise taxes Hotel and motel taxes Mixed beverage taxes Total Taxes Business licenses and permits Mixed alcoholic beverages Dairy permits Septic tank permits Cafe permits Swimming pool permits Chauffeurs' licenses Occupational taxes Electricians' licenses Building permits Electrical permits Plumbing permits Mechanical permits Dog licenses Loading zone permits Street and curb permits Massage permits Miscellaneous permits Total Business Licenses and Permits Intergovernmental revenues Federal grants Civil defense Community services act Summer youth Drug Enforcement Administration Immunization Nutrition 7 Year Ended September 30, 1979 Prior Fiscal Estimated Actual Year Actual $ 99576,915 $ 9,382,942 $ 90320,602 97,836 193,301 9,576,915 9,285,106 9,127,301 73,860 1060415 105,752 7,428,286 8,160,916 7,421,615 19985,000 2,280,190 2,112,872 98,393 156,127 152,124 230,000 238,456 216,122 190392,454 20,227,210 19,135,786 12,000 149380 10,525 6,000 124 6,019 13,686 7,303 11,158 26,749 33,918 6,957 8,000 3,110 1,700 426 423 473 10,250 10,951 9,645 90000 8,806 8,505 1049456 126,410 102,210 40,746 399713 379332 47,065 43,012 55,673 29,924 28,865 31,715 35,000 23,546 20,456 2,950 2,842 1,463 4,000 5,562 3,520 1,500 4,200 5,900 245 195 380 351,997 353,360 313,631 11,102 13,467 321,050 10,260 28,846 13,395 15,000 149,001 GENERAL FUND STATEMENT OF REVENUES - Continued CITY OF LUBBOCK, TEXAS Iutergovernment revenues - cont. Federal grants - continued Department of Transportation Comprehensive planning assistance Bureau of Census Transportation studies Transportation assistance State grants Border patrol Summer food service FDCA Personnel Act STEP traffic grant Texas Program for Older Texans Highways and streets Traffic safety projects Library. County revenues Library Health Civic Lubbock, Inc. Total Intergovernmental Revenues Charges for services General government Zoning fees Zoning miscellaneous Sale of maps and.ordinances Blueline and xerox printing City hall parking 8 Year Ended _ September 30, 1979 Prior Fiscal Estimated Actual Year Actual $ $ 2,385 $ 52,724 1,500 613 5,123 28,977 945.957 (440) 1,158,914 - 046 21,957 24,225 29,120 27,379 18,000 153,625 19,201 6,120 28,313 4,728 _ 292 164 5 9,108 286,981 362,705 312,037 306,749 295,859 81,046 67,560 76.928 393,083 374,309 3720787 50,000 123,266 77.554 50,000 443,083 123,266 2,205,597 77,554 1,253,092 45,100 44,412 51,762 1,000 1,524 1,594 3,630 3,260 3,387 18,845 18,044 20,439 6,500 6,512 6,293 f GENERAL FUND STATEMENT OF REVENUES - Continued CITY OF LUBBOCK, TEXAS Charges for services - continued General government - continued Customer list service Tax certificates Outside work Tax office rental Tax office expense recovered Other charges Public safety Police accident reports Car storage and towing Miscellaneous Health Vital statistics Health certificates Animal shelter receipts Culture - recreation Meadowbrook Golf Course Tennis center Swimming pools Mackenzie Park Auditorium - coliseum rent Civic center rent Miscellaneous recreation Cemetery Lot sales Grave services Miscellaneous Total Charges for Services Fines Municipal court Library Total Fines 9 Year Ended September 30, 1979 Prior Fiscal Estimated Actual Year Actual $ 2,200 $ 1,440 $ 2,400 13,340 13,665 19,695 66,072 22,107 10,088 10,088 451,351 479,820 398,994 60t268 612,322 9,179 6,450 643,928 543,209 190334 20,369 18,877 500 1,844 487 23,352 25,955 31,648 439186 48,168 51,012 360492 34,328 26,092 9,000 2,311 8,240 40,650 35,943 28,241 86,142 72,582 62,573 2249498 1890142 196,290 240054 16,775 22,812 61,000 56,935 509211 201410 12,533 15,629 155,000 134,137 117,901 205,000 252,160 1969349 1,000 1,274 9,903 690,962 662,956 609,095 35,000 38,224 549740 35,000 33,760 35,149 5,000 4,927 4,868 75,000 76,911 94,757 1,507,612 1,504,545 1,360,646 8989354 1,141,004 825,938 9,372 11,250 8,846 907,726 1,152,254 8342784 GENERAL FUND STATEMENT OF REVENUES - Continued CITY OF LUBBOCK, TEXAS 10 Year Ended September 30, 1979 Prior Fiscal Estimated Actual Year Actual Miscellaneous revenue Interest earnings Interest on investments $ 200,000 $ 595,064 $ 429,090 Interest on accounts, notes contracts and paving certificates 10,000 42,236 210,000 637,300 429,090 Rents Land, buildings and equipment 80,122 97,507 84,902 Recoveries of expenditures Airport fire station 2490602 245,126 106,457 Insurance refunds 75,638 120,855 Other 133,150 382,752 155,256 381,410 476,020 6089722 Sale of land, equipment and buildings 22,304 131,560 Property damage claims 70,000 86,347 69,881 Contribution from developers 6,275 Other 2,250 5,304 17,342 72,250 120,230 218,783 Total Miscellaneaous Revenue 745,124 1,331,057 1,341,497 Contributions from other funds Capital projects funds 1729197 Revenue sharing funds 1,000,000 1,000,000 75,985 Electric revenue fund 1,421,766 1,350,738 1,796,349 Water revenue fund 197,200 Sever revenue fund 722.719 463,116 177,604 3,316,682 3,011,054 2,049,933 TOTAL REVENUE 26,664,678 1--29,785,077 2374 10 GENERAL FUND DETAIL STATEMENT OF APPROPRIATIONS, EXPENDITURES AND ENCUMBRANCES CITY OF LUBBOCK, TEXAS 11 . Prior Fiscal Year Ended September 30, 1979 Year Expenditures Expenditures and and Appropriations Encumbrances Encumbrances General government City Council $ 73,983 $ 68,345 $ 51,233 City Manager 184,173 189,049 167,088 City Secretary 74,523 68,943 81,315 Microfilm 29,838 32,577 34,617 Legal 294,212 286,131 253,140 General Multipurpose 306_,107 311,284 459,161 962,836 956,329 1,046,554 Community Relations Human relations 209003 15,799 17,087 Public information 74.139 81,288 72,527 94,142 970087 89,614 Finance Finance 293,301 3070919 216,214 Municipal court 311,476 302,004 280,516 6049777 609,923 496,730 Tax 963,497 886,160 749,702 Management Information Systems 544,060 176,600 235,567 Administrative Services Communications 150,894 158,519 136,171 Building maintenance 374,490 340,617 275,180 525,384 499,136 411,351 Personnel 224,367 192,814 206,786 Purchasing 96,883 92,672 94,343 Planning Division Planning 1960991 195,777 183,055 Zoning and environment 411,772 344,267 286,931 Traffic engineering 744,241 759,219 559,479 Building inspection �31� 301,457 242,415 1,663,866 1,60 ,720 1,271,880 11 GENERAL FUND DETAIL STATEMENT OF APPROPRIATIONS, EXPENDITURES AND ENCUMBRANCES - Continued CITY OF LUBBOCK, TEXAS j Prior Fiscal Year Ended September 30, 1979 Year Expenditures Expenditures and and Appropriations Encumbrances Encumbrances Community Facilities Parks and recreation $ 2,520,481 $ 2,580,846 $ 2,127,998 Library 1,141,231 1,085,421 1,015,630 Cemetery 163,618 165,673 126,497 Golf 2819347 221,578 198,436 Swimming pools 106,249 7,871 120,514 Civic centers 919,883 878,339 799,344 Community facilities 57,613 58,167 53,308 5,190,422 4,997,895 49441,727 Public Services Public service administration 60,875 62,934 40,773 f Health 1,055,989 1,064,418 760,423 Property management _ 480961 48,880 46,087 Animal shelter 2029246 201,384 195,426 Community services 306,032 Transit _. 748,460 812,210 657,846 2,116,531 2,189,826 2,006,587 Public Works Public works administration 529,931 472,062 613,381 Street 1,961,496 1,822,358 1,360,467 29491,427 2,294,420 1,973,848 Public Safety Police 69306,712 6,744,408 5,450,343 Fire department 5,515,923 5,497,267 4,822,040 11,8229635 12,241,675 100272,383 Street Lighting 974,989 851,954 921,525 Transfer to Other Funds Capital projects 325,000 Sanitation 1,493,642 1,066,982 Convention and tourism bureau 939676 91,753 Grants fund 55,608 1,967,926 1,158,735 28,275,816 $ 29.655.137 S 25,377,332 12 t DEBT SERVICE FUND The Debt Service Fund, also known as the Interest and Sinking Fund, accounts for the payment of interest and prinicipal on all general obligation debt of the City. DEBT SERVICE FUND BALANCE SHEET CITY OF LUBBOCK, TEXAS ASSETS Cash and investments — Note B Taxes in litigation — Note C Delinquent taxes receivable, less allowance for uncollectible taxes (1979 — $2,133,253; 1978 — $2,008,260) Due from other funds LIABILITIES AND FUND BALANCE Due to general fund Fund balance. See notes to financial statements. 13 September 30 September 30 1979 1978 209,587 721,013 87,938 87,925 290,898 273,854 474,866 373.920 „1.063,289 $ 1,456,712 $ 132,133 $ 108,030 931,156 1,348,682 -1,063,289 $ 1.456,712 (71 DEBT SERVICE FUND STATEMENT OF REVENUES, EXPENDITURES AND FUND BALANCE CITY OF LUBBOCK, TEXAS September 30 September 30 1979 1978 Revenue Current tax revenues $ 4,130,468 $ 5,620,5.36 Less: estimated uncollectible taxes 106,791 1531241 Net Tax Revenues 4,023,677 5,467,295 Interest on investments 436,212 284,556 Rotel/motel tax 260,212 253,541 Interest on bond sale 2103,656 9,819 Transfer from Electric Revenue Fund 299,992 307,611 Total Revenue 5,230,34 — 6,322,822 Expenditures Bond retirement 3,841,000 3,995,000 Interest on bonds 1,804,583 1,850,693 Fiscal agent's fees 2,692 2,019 Total Expenditures 5,648,275 5,847,712 Excess (417,526) 475,110 Fund balance at beginning of year 1,348,682 873,572 FUND BALANCE AT END OF YEAR $---.-931,156 $1.348,682 See notes to financial statements. 14 September 30, 1979 Note A - Summary of Significant Accounting Principles Basis of Accounting - The accounting records of the General Fund and the Debt Service Fund are maintained on a modified accrual basis. Revenues are recorded on a cash basis except for taxes levied, interest on investments, paving assessments and some miscellaneous charges for services. Expenditures are recorded at the time liabilities are incurred. Investments - Investments are carried at par value net of any unamortized premium or discount. The General Fund accounts for the interest receivable and the investment earnings of the Internal Service Fund and the Special Assessment Fund. The Debt Service Fund accounts for the interest receivable and the investment earnings of the Capital Projects Fund. Inventories - Inventories are valued at cost, determined by the average cost method. Encumbrances - Encumbrances outstanding at year end represent the estimated amount of the expenditures ultimately to result if unpreformed contracts in process at year end are completed. While appropriations lapse at year end, the City intends to honor outstanding encumbrances and has reserved the respective fund balances accordingly. For budgetary purposes, the outstanding encumbrances have been grouped with current year's expenditures. However, the encumbrances outstanding at year end do not constitute expenditures or liabilities of the current period. Note B - Cash and Investments Securities pledged by the depository bank to secure the City's deposits were in excess of deposits at September 30,-1979. Certificates of Deposit bear Interest at rates ranging from 9.00% to 10.00%. . Note C - Contingencies Beginning with the 1975 tax roll, certain taxpayers filed suit against the City of Lubbock because of the assessed value placed on their property. The orginal values as assessed by the Tax Office and adjusted by the Board of Equalization would generate taxes in the amount of $485,287, of which the taxpayers have agreed to pay $360,665. The difference of $124,622 is being litigated as of September 30, 1979. Note D - Due From Federal Government The amount due from the federal government in the General Fund is: Transit Grants 15 S 135.475 In the Long -Term Debt Group of Accounts during the fiscal year ended September 30, 1979, there were additional new debts of $9,397,827 with retirement of $3,857,677, leaving a balance of $47,963,774. The annual requirements to amortize all debts outstanding as of September 30, 1979, including interest payaments of $24,908,555 on bonds carrying interest rates of .25% to 7.5% are as follows: The City has a lease agreement with the Lubbock Industrial Foundation dated June 13, 1968, providing for the lease of land to that organization and Including an option to sell the land or a portion of such land for $495 per acre. No land has been sold under this option. Note G - Fund Balance Commitments As of September 30,1979, there were several unfinished projects in the General Fund which were approved to be carried over into the current year's budget. The amount of the fund balance designated for these projects at September 30, 1979, was $117,962. Note H - Pension Plans Eligible City employees are covered be the Texas Municipal Retirement System, a state-wide plan. Contributions by the City are based on percentages of salaries and wages. The City's policy is to fund pension costs accrued. The actuarially computed value of vested benefits as of December 31, 1978, exceeded pension fund assets by approximately $5,334,862. The General Fund contribution to.the fund was $1,131,610 during the fiscal year. 16 General Year Ending Obligation Revenue September 30 Tax Bonds Bonds Total 1980 $ 6,369,186 $ 3,161,240 $ 9,530,426 1981 5,972,208 3,064,180 9,036,388 1982 5,383,898 2,666,620 8,050,518 1983 5,113,036 2,436,860 7,549,896 1984 4,950,176 2,201,510 7,151,686 1985-89 20,474,725 8,616,179 291090,904 1990-99 14,998,150 7,731,587 22,729,737 ,$63,261 29,878,176 S 93.139,555 Note F - Contracts and Commitments The City has a lease agreement with the Lubbock Industrial Foundation dated June 13, 1968, providing for the lease of land to that organization and Including an option to sell the land or a portion of such land for $495 per acre. No land has been sold under this option. Note G - Fund Balance Commitments As of September 30,1979, there were several unfinished projects in the General Fund which were approved to be carried over into the current year's budget. The amount of the fund balance designated for these projects at September 30, 1979, was $117,962. Note H - Pension Plans Eligible City employees are covered be the Texas Municipal Retirement System, a state-wide plan. Contributions by the City are based on percentages of salaries and wages. The City's policy is to fund pension costs accrued. The actuarially computed value of vested benefits as of December 31, 1978, exceeded pension fund assets by approximately $5,334,862. The General Fund contribution to.the fund was $1,131,610 during the fiscal year. 16 DrcnI IIT 1 nm WHEREAS, the City Council of the City of Lubbock, Texas desires to receive bids for the purchase of its $16,750,000 General Obligation Bonds, Series 1981; and WHEREAS, First Southwest Company, Dallas, Texas, has been authorized and requested to prepare a Notice of Sale and Bidding Instructions, Official Bid Form and Official Statement containing financial, economic and other data necessary and desirable to attract bids for said bonds; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS: That the attached Notice of Sale and Bidding Instructions, Official Bid Form and Official Statement relative to $16,750,000 City of Lubbock, Texas General Obligation Bonds, Series 1981, are hereby approved, both as to form and content, and said First Southwest Company is authorized to distribute said Notice of Sale and Bidding Instructions, Official Bid Form and Official Statement to prospective bidders for, and purchasers of, the bonds. PASSED AND APPROVED this the day of 19 , by the City Council of the City of Lubbock, Texas, convened in session with a lawful quorum present. BILL MC ALISTER, MAYOR ATTEST: Evelyn Gaffga, City Secretary -Treasurer APPROVED AS TO FORM: John C. Ross, Jr., City Attorney (71 GENERAL CERTIFICATE THE STATE OF TEXAS § g I COUNTY OF LUBBOCK § CITY OF LUBBOCK § WE, the undersigned, Mayor and City Secretary -Treasurer, respectively of the City of Lubbock, Texas, DO HEREBY CERTIFY as follows: 1. This certificate is for the benefit of the Attorney General of the State of Texas, other examining attorneys and holders of the $16,750,000 "City of Lubbock, Texas, General Obligation Bonds, Series 1981", dated March 1, 1981. 2. The following areth.e.'duly qualified and acting officers of the City of Lubbock: BULL McALISTER MAYOR ALAN HENRY MAYOR PRO -TEM X. J. ADERTON E., JACK BROWN COUIICIIM14BFRS JOAN BAKER EVELYN GAFFGA � CITY SECRETARY CITY TREASURER LARRY J. CUNNINGHAM CITY MANAGER JOHN C. ROSS, JR CITY ATTORNEY JAMES J. KILCHENSTIEN CITY ASSESSOR -COLLECTOR 3. The City of Lubbock, Texas, is operating under its Rome Rule Charter, last amended at an election held January- 24, anuary24, 1967. 4. Ordinance No. and minutes pertaining thereto contained Herein are true -an-U—correct correct copies of such. instruments as passed and entered by the City Council of the City of Lubbock, Texas, on th.e day of -1980, said ordinance being correctly recorded int e r inane. Records of said City. 5. The aforesaid ordinance was passed at two meetings,each of which was held after written notice thereof stating the date, hour, place and subject had been posted for more than 72 hours preceding the day of the meeting at the,.City Hall on a bulletin board located at a place convenient to the public, all in compliance with the provisions of Section 3A, Article -6252-17, V.A.T.C.S. 6. The total outstanding principal amount of tax -supported indebtedness of the''City of Lubbock, upon issuance of the Series 1981 Bonds, -grill be - 7. The assessed.value of property for the purpose of taxation in said City of Lubbock as shown by its offical tax rolls for the year 1980, being its latest approved official asses ment rolls, is �' i i and the City's -Tax Assessor has duly verified the tax rolls reflecting such amount, which does not include the amount s of any exemptions to which property otherwise subject to taxation was entitled pursuant to applicable provisions of the Constitution and laws of the State of Texas. WITNESS OUR OFFICIAL SIGNATURES AND THE SEAL OF THE CITY OF } LUBBOCK, TEXAS, this the day of 1980. L. Mayor, City of Lubbock, Texas i City Secretary - Treasurer l City of Lubbock, Texas (City Seal 1 I i i 1 i I i II i j i' is Ci n to .-4 d• W W 01 co W N 4q N O 01 m a N 4441 Y N o E o� C a Y N H fU � L 1O ,r n O C ij[W r_ X D) 1 a 1 N 1 N 1 v+ I w 1 tU I 41 1 N 1N 1 N 1. H t 1 1 a 1I x i x 1v i ON 1 1 1 CO i 01 1 O1 1 wy 1 w-1 1 c 1 c 1 O O N 0) a O a a U a U Av bo' �W-•L co —L ca' a c 0 C - W u COW Y Ct fL ll'w dON h _r lO rd' O d O tO 2E .-1 aC N OM1 d' OM1 In @J 44 m 64 a 4-. a 4- 4.2 fu ao c c K c Xr X•�? M Y f0 Y to CO - M tO 1>0 44 1.4 Milral Amwoj a o se st st oCL � ul �S c.l rL K Y y M co CO O LC 010 w"1 d 1 N wad•0-1 ONWhMh Nto W-1 d'. -•I W MwNW LAY WNd'O.-IQ WLo h M1 Ln Co M NetCW) hcthtn tO C C c OM WlO w-1 O1 OtO tD O1O d'Nh tO ONNb h ^ m E CO ^ M d• NH1 to . -1 co P] O1 M O -4m to r\ gn rMO W O 4) OO co O1 Or en Ln Co told 010101 co to to Ln tD%ON A a L Ci O W tO C Mw -1 O1 tO Q N W N CO M MN N-1 i co .0 R C) p Od'd• MMMMMNNNNr-I-4L. 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O1 O1 O) mO) Ot O1 O1 O1 O101 O100 w .. a •- !- a 01 -1 - .-1 .--1 --i .--1 .-4 r --I '-1 n-1 -1 1-1 .--1 '-1 w w-1 '-1 -1 -4 N N W W Y p � Ci n to .-4 d• W W 01 co W N 4q N O 01 m a N 4441 Y N o E o� C a Y N H fU � L 1O ,r n O C ij[W r_ X D) 1 a 1 N 1 N 1 v+ I w 1 tU I 41 1 N 1N 1 N 1. H t 1 1 a 1I x i x 1v i ON 1 1 1 CO i 01 1 O1 1 wy 1 w-1 1 c 1 c 1 O O N 0) a O a a U a U Av bo' �W-•L co —L ca' a c 0 C - W u COW Y Ct fL ll'w dON h _r lO rd' O d O tO 2E .-1 aC N OM1 d' OM1 In @J 44 m 64 a 4-. a 4- 4.2 fu ao c c K c Xr X•�? M Y f0 Y to CO - M tO 1>0 44 1.4 Milral Amwoj ORDINANCE NO. AN ORDINANCE by the City Council of the City of Lubbock, u Texas, relating to $16.750,000 "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1981" dated March 1, 1981, providing for the sale of u the bonds and establishing interest rates for said bonds, enacting provisions incident and relating to the purpose and subject of this ordinance and providing an effective date. WHEREAS, on the day of 1980, on second and final reading, th—e-City Councirl o tFi Cie p of Lubbock, Texas, duly assed and approved an ordinance authorizing the k issuance of V6,750,000 'CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1981" (the "Bonds"); and WHEREAS,'by Notice of Sale and Official Statement dated this City Council duly offered the Bons for sae at competitive bidding, said bids to be opened and sale awarded on the day of 1980, at 1' o'clock .M.; and I WHEREAS pursuant. to said Notice of Sale, bids for the I' purchase of the Bonds have been received by the City Council and publicly opened, read aloud and tabulated; and WHEREAS, it is hereby found and determined that the bid of for tie- purchase of the Bons waste best bid received, that said bid was duly submitted and should be accepted and the Bonds f sold to said bidder; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK*. SECTION 1: That the bid of I for the purch a of the $16,750,00V 'CITY OF LUBBOCK, GENERAL OBLIGATION BONDS, SERIES 1981" dated March 1, 1981, r at par plus accrued interest and a premium of $ (so as to provide an effective interest rate ofhereby I accepted and said Bonds are hereby sold to -said iT ec-rr at such price. SECTION 2: That as provided in the bid accepted by the City Council or tie purchase of the $16,750,000 "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES -1981" dated March 1, 1481, the. Bonds of said series shall bear interest at the following rates per annum, to wit: ERS MATURITY COUPON BOND NUMB (All Inclusive) March 1 AMOUNT. RATE j 1 to 167 1982 $835,000 168 to 334 1983 835,000 335 to 501 1984 835,000 —�% 502 to 668 1985 835,000 !o 669 to 835 1986 835,000 ro 836 to 1002 1987 835,000 76 1003 to 1169 1988. 835,000 !A 1170 to 1336 1989 - 835,000 a 1337 to 1503 1990 835,000 —� 1504 to 1670 1991 835,000 1671 to 1838 1992 840,000 o i 1839 to 2006 1993 840,000 2007 to 2174 1994 840,000 2175 to 2342 1995 - 840,000 • 2343 to 2510- 1996 840,000 2511 to 2678 1997 840,000 267 to 2846 1998 840,000 !o, 9 2847 to 3014 1999 840,000 3015 to 3182 2000 840,00076 3183 to 3350 2001 840,000 _ 76 II SECTION 3:. That, in"referenee to -the Official Statement prepared the initial offering and =:ale of the Bonds, the City Council ratifies and confirms its prior approval of the form and content thereof and hereby approves the form and content of any adddndas, supplements and amendments thereto; the use of such Official Statement in the reoffering of the Bonds by the above named purchasers) is hereby approved and authorized; and the proper officials of the City are hereby authorized to execute and deliver a certificate pertaining to said Official Statement as prescribed therein, dated as of the date of payment for and delivery of the Bonds. I. j.. SECTION 4: This ordinance shall take effect and be in force mutely from and after its final passage, and it is so ordained. PASSED AND APPROVED on first reading this the day j of 1980. PASSED AND APPROVED on second and final reading this the day of 1980. �I Mayor, City of Lubbock, Texas ATTEST:. "City Secretary, City o Lubbock, Texan (City Seal) 'i • 1 °s i I CERTIFICATE OF CITY SECRETARY THE STATE OF TEXAS § ;I § COUNTY OF LUBBOCK § CITY OF LUBBOCK § i I, the undersigned, City Secretary of the City of Lubbock, Texas, DO HEREBY CERTIFY that the above and foregoing is a •d• .true and correct copy of Ordinance N0. providing for the sale of general obligation bonds of the City in the aggregate amount of $16,750,000 and establishing interest rates therefor (and Minutes pertaining -to the first and !' i second readings thereof) passed by the City Council of said j City on the day of 1980, which ordinance is duly recorded in the Minutes of said City Council. I FURTHER CERTIFY that the said ordinance was passed at a meeting,open to the public and notice of said meeting was gven in advance thereof in such manner as to be in compliance with the provisions of Article 6252-17, Section 3A,.V.A.T.C.S. I' IN WITNESS WHEREOF, I have hereunto signed my name officially and affixed the seal of said City, this the day of 1980. 1i 'City Secretary, City of Lubbock, Texas- (CITY exas(CITY SEAL) { Z a; MINUTES PERTAINING TO PASSAGE AND ADOPTION OF AN ORDINANCE AUTHORIZING THE SALE OF AND ESTABLISHING INTEREST RATES FOR THE $16,750,000 "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1981" DATED MARCH 1, 1981 THE STATE OF TEXAS § § COUNTY OF LUBBOCK § CITY.OF LUBBOCK § ON THIS, the day of 1980, the City Council of the City�Lubbock, Texas, convened in session at the regular meeting place thereof in the City Ram, the meeting being open to the public and notice of said meeting having been given as prescribed by Article 6252-17, Section 3A, V.A.T.C.S, with the following members present and in attendance, to wit: BILL McALISTER MAYOR ALLEN HENRY MAYOR PRO -TEM I JOAN BAKER ) M.J. ADDERTON ) COUNCILMEMBERS E.JACK BROWN ) EVELYN GAFFGA CITY SECRETARY hi AND f LARRY CUNNINGHAM CITY MANAGER E � also being present, and with the following absent: yconstituting a quorum; among other business consider at said meeting, an ordinance was submitted for consideration and adoption, such ordinance being entitled as follows: .VAN ORDINANCE by the City Council. of the City of Lubbock, 4 Texas, relating to $16,750,000 `CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1981' dated March. 1, 1981, providing for the sale of the. bonds and establishing interest rates for said bonds ,.enacting provisions incident and relating to the purpose and subject of this ordinance and providing aneffective date." Upon consideration of the ordinance, Councilmember moved that the ordinance be passed on -the first rea----Zing. a motion was seconded by Councilmember and carried by the following vote YEA: Mayor McAlister and Councilmembers Henry, Baker, Adderton and Brown NAY: None. 4 The Mayor then announced the ordinance had been passed on the first reading. ADOPTED on the first reading, this the day of , 1980- Mayor, qty of Lubbock,Texas ATTEST: City Secretary, -City o Lubbock, Texas 1 (City Seal) is I MINUTES PERTAINING TO PASSAGE AND ADOPTION OF AN ORDINANCE AUTHORIZING THE SALE OF AND ESTABLISHING INTEREST RATES FOR THE $16.750,000 "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1981" j DA' ED MARCH 1, 1981 THE STATE OF TEXAS § COUNTY OF LUBBOCK § CITY OF LUBBOCK § ON THIS, the day of 1980, the City Council of the City -off' -Lubbock, Texas, convened in session at the regular meeting place thereof in the City Ha=, the meeting being open to the public and notice of said meeting having been given as prescribed by Article 6252-17, Section 3A, V.A.T.C.S., with the following members being present and in attendance, to wit: BILL McALISTER MAYOR ALLEN HENRY MAYOR PRO -TEM JOAN BAKER ) M..J. ADDERTON ) COUNCILMEMBERS E... JACK BROWN ) EVELYN GAFFGA CITY SECRETARY AND 3 LARRY CUNNINGHAM CITY MANAGER also being present; and with the following absent: constituting a quorum; among of er us ness considered at salU meeeting, an ordinance was submitted for consideration and adoption, such ordinance being entitled as follows: "AN ORDINANCE by the City Council of. the City of Lubbock, Texas, relating to $16.750,000 'CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1981' dated March 1, 1981, providing for the sale of the bonds and establishing -interest rates for said bonds, enacting provisions incident and relating to the purpose and subject of this ordinance and providing an effective-date."i Upon consideration of the ordinance, Councilmember moved that the ordinance be passed on the a secon—anTfinal reading. The motion was seconded by Councilmemher and carried by the following vote: YEA: Mayor McAlister and Councilmembers Henry, Baker, Adderton and Brown. I NAY: None, The Magor then announced the ordinance had been passed on the second and final reading. ADOPTED, on the second and final reading, this the day of 1980. f a Mayor, City of LubbocE,Texas ATTEST: s y fi City Secretary, City of Lubbock, Texas p CITY SEALS RESOLUTION APPROVING FORM AND CONTENT OF OFFICIAL STATEMENT THE STATE OF TEXAS § COUNTY OF LUBBOCK § § CITY OF LUBBOCK § ON THIS,'the day of 1980, the City Council of the�ity of Lubbock, Texas, convened in session at the regular meeting place thereof in the City Hall, the meeting being.open to the public and notice of said meeting giving the date, hour, place and subject thereof, having been given as prescribed by Article 6252-17, Section 3A, V.A.T.C.S., the following members being present and in attendance, to wit: BILL McALISTER MAYOR ALLEN HENRY MAYOR PRO -TEM JOAN BAKER ) M.J. ADDERTON ) COUNCILMEMBERS` E. JACK BROWN ) EVELYN GAFFGA CITY SECRETARY AND LARRY CUNNINGHAM CITY MANAGER also being present;.and with the following absent: constituting a quorum; among other business considered at said meeting, a•resolution was submitted to the • City Council for passage and adoption, such resolution being r as follows: WHEREAS, it is provided in the Official Statement dated concerning the sale of the $16,750,000 "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1981" dated March 1, 1981, the City will furnish to the Purchaser, as a part of the transcript of proceedings, a certified copy of a resolution of the City Council as of the date of the sale of the bonds which will approve the form and content of the Official Statement, and any addenda, supplement or amendment thereto, and authorize its further use in the reoffering of the bonds by the Purchaser; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: That the Official Statement dated , Prepared in connection with the issuance an sae o ,000 'CITY OF LUBBOCK, TEXAS, GENERAL.OBLIGATION BONDS, SERIES 19811' dated March 1, 1981, is.hereby approved as to form and content _by this Council. This governing body hereby authorizes the further use of said Official Statement in the reoffering of the bonds by the Purchaser No Text 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 that the above and foregoing is a true and correct copy of a resolution approving the Official Statement as of the date of sale of $16,750,000 "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1981" dated March 1, 1981, (and Minutes pertaining to its adoption) passed by the City_ Council of said City on the day of , 1980, and duly recorded in the Minutes of said City Council I DO FURTHER CERTIFY that said resolution was passed at a meeting open to the public and notice of such meeting was given in advance thereof.in such manner as to be 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 day of 1980. City Secretary, City o Lubbock, Texas (City Seal) f CERTIFICATE AS TO OFFICIAL STATEMENT - THE STATE OF TEXAS § COUNTY OF LUBBOCK § CITY OF LUBBOCK § WE, the undersigned, Mayor and City Secretary of the City of Lubbock, Lubbock.County, Texas, DO HEREBY CERTIFY that to the best of our knowledge and belief: (a) The descriptions and statements of or pertaining to the City contained -in its Official Statement dated and any addenda, supplement or amendment thereto, for is $16,750,000 "City of Lubbock, Texas, General Obligation Bonds, Series 1981" on the date of such Official Statement, on the date of said bonds and the acceptance of the best bid therefor, and on the date of the delivery, were and are true and correct -in all material respects; (b) Insofar as the City and its affairs, including its financial affairs, are concerned, such Official Statement did not and does not- contain an untrue statement of a taterial fact or omit - to state a material fact required to be stated therein or necessary to .make the statements therein, in the light of the circumstances under which they were made, not misleading; (c) Insofar as the descriptions and statements including financial data, of:or pertaining to entities, other than the City,.and their activities contained in such Official Statement are concerned, such statements and data have been obtained from sources which the City believes to be reliable and that the City has no reason to believe that they are untrue in any material respect; and l (d) There has been no material adverse change in the financial conditions of the City since the date of the last audited financial statements of the City. TO CERTIFY WHICH, witness our hands and the seal of said City as of the day of 1980, same being the date of delivery oT the bons herein describW Mayor, City of Lubbock, Texas city- ecretar3 ,-ty o _ ---- Lubbock, Texas _..._ _ CCity Seal) TREASURER'S RECEIPT' i j THF STATE OF TEXAS j COUNTY OF LUBBOCK i THE UNDERSIGNED HEREBY CERTIFIES as follows: i (l) That this certificate is executed and delivered with respect to the following described bonds: I "CITY OF LUBBOCK, TEXAS, GENERAL'`OBLIGATION BONDS, SERIES 198111 dated March 1, 1981 in the aggregate principal amount of $ 16,750.1000 (2) That on the date shown below as the date of execution and delivery of this instrument. the said bonds were delivered to the purchaser thereof, namely: g (3) That all of said bonds have been paid for in full by the purchaser concurrently with the deliv- ery.of this certificate, and the issuer of said bonds has received the agreed purchase price for the said bonds, as follows: i PRINCIPAL AMOUNT..................................................•--------.-- ffi ACCRUED INTEREST.-•----......-•---•---•...................._............._....$ PLUS PREMIUM....--•......................•------•---------------------------------- $ TOTAL AMOUNT RECEIVED ON DELIVERY OF BONDS.. $ (4) At the time of such delivery there were no matured coupons attached to said bonds and all un- matured coupons were attached to said bonds. (5) Than the undersigned has executed this certificate in the capacity hereinafter shown for and on behalf of the said issuer of bonds. EXECUTED AND DELIVERED this......... ........_............................_ ....._.......__..._ .-.------ i.................».»--....»...__._. ........ Treasurer The foregoing signature of the foregoing designated official of the issuer is hereby certified as genuine. I .............. l (BANK SEAL) ............................»-----..__.»._..---......._»....---_»-------................. » (Bank) ...................»»_..---..._----»......____-........»--------._ ........ .»..».... »»....... ... LAW OFFICES Dumas, Huguenin, Boothman and Morrow 1212 United National Bank Building Dallas, Texas 75201 SIGNATURE AND NO -LITIGATION CERTIFICATE THE STATE OF TEXAS COUNTY OF LUBBOCK WE, the undersigned, hereby certify as follows: (1) That this certificate is executed and delivered with reference to the following described bonds: "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1981" dated March 1, 1981 in the aggregate principal amount of $ 16 , 750 , 000 (2) That the undersigned officially executed and signed or countersigned said bonds and the inter- est coupons attached thereto by causing their facsimile signatures to be placed on each of said bonds and interest coupons and they hereby adopt said facsimile signatures as their own and declare that the same constitute their signatures the same as if they had manually signed each of said bonds and interest coupons. (3) That on the date of such execution in such manner and on the date hereof, we were the duly chosen, qualified and acting officers indicated therein and authorized to execute the same. (4) That the legally adopted proper and only official corporate seal of the issuer is impressed, im- printed or lithographed on all of said bonds and impressed on this certificate. (5) We further certify that no litigation of any nature is now pending or, to our knowledge, threat- ened restraining or enjoining the issuance and delivery of said bonds or the levy and collection of taxes to pay the principal and interest, or in any manner questioning the proceedings and authority under which the same is made or affecting the validity of the bonds thereunder; that neither the corporate ex- istence or boundaries nor the title of the present officers to their respective offices is being contested, and that no authority or proceedings for the issuance of said bonds have been repealed, revoked or rescinded. (6) That no petition or other request has been filed with or presented to any official of the issuer of these bonds requesting that any proceedings authorizing the same be submitted to a referendum or other election. EXECUTED AND DELIVERED this (ISSUER'S SEAL) SIGNATURE OFFICIAL TITLE Mayor, City of Lubbock, Texas .............................................................................................--•---........---.............------...............-----.............----------...--------• City Secretary, City of Lubbock, Texas ----•.....................................................................................................................-----............------------------.....--------....----...... The signatures of the officers subscribed above are hereby certified to be true and genuine. (BANK SEAL) ............................................•-•----------------•-------------------......------ Bank By-------------------------------------- -----------...... LAW OFFICES Authorized Officer Dumas, Huguenin, Boothman and Morrow 1212 United National Bank Building Dallas, Texas 75201