HomeMy WebLinkAboutResolution - 510 - Notice Of Sale - First SW Company - General Obligation Bonds, Series 1980 - 05/22/1980' RESOLUTION #510 - 5/22/80
RESOLUTION
WHEREAS, the City Council of the City of Lubbock, Texas desires to
receive bids for the purchase of its $6,450,000 General Obligation Bonds,
Series 1980; and
WHEREAS, First Southwest Company, Dallas, Texas, has been authorized
and requested to prepare a Notice of Sale and Bidding Instructions, Of-
ficial 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 $6,450,000 City of Lubbock,
Texas General Obligation Bonds, Series 1980, 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 22nd day of May, 1980, by the City
Council of the City of Lubbock, Texas, convened in regular session with a
lawful quorum present.
ATTEST: -
. City ecre r
CITY BBOCK, S
B (Bill McAlister)
Mayor
NOTICE OF SALE
AND
BIDDING INSTRUCTIONS
ON A90bb�
$6,450,000
CITY OF LUBBOCK, TEXAS
(Lubbock County) ��ll SECRY
GENERAL OBLIGATION BONDS, SERIES 1980 l GY
Selling Thursday, June 26, 1980, at 10:30 AM, CDT
THE SALE
Bonds Offered for Sale at Competitive Biddin .. The City of Lubbock, Texas (the "City"), is
offering for sale its 6,450,000 General Obligation Bonds, Series 1980 (the "Bonds").
Address of Bids.. Sealed bids, plainly. marked "Bid for Bonds", should be addressed and
delivered to "Pirs.Evelyn E. Gaffga, City Secretary, City of Lubbock, Texas", prior to 10:30
AM, CDT, on the date of the bid opening. All bids must be submitted on the Official Bid Form,
without alteration 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 10:30 AM, CDT, Thursday, June 26,
1980.
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 the Official Statement.
THE BONDS
Description . The Bonds will be dated July 1, 1980, and interest coupons will be due on
February 1, 1981, and each August 1 and February 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 February 1 in each year as
follows:
The City reserves the right, at its option, to redeem Bonds maturing February 1, 1991, through
February 1, 2000, both inclusive, in whole or any part thereof, on February 1, 1990, or any
interest payment date thereafter, at the par value thereof plus accrued interest to the date
fixed for redemption.
Source of Payment . 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 i
T es of Bids and Interest Rates . The Bonds will be sold in one block on an "All or None" r
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 1/20 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 maturity must bear
one and the same rate. No bids involving supplemental coupons will be considered. Each bidder
i
Principal
Principal
Principal
Year
Amount
Year
Amount
Year
Amount
19-8-1
$320,000
988
$320,000
19-9-4
325,000
1982
320,000
1989
320,000
1995
325,000
1983
320,000
1990
320,000
1996
325,000
1984
320,000
1991
325,000
1997
325,000
1985
320,000
1992
325,000
1998
325,000
1986
320,000
1993
325,000
1999
325,000
1987
320,000
2000
325,000
The City reserves the right, at its option, to redeem Bonds maturing February 1, 1991, through
February 1, 2000, both inclusive, in whole or any part thereof, on February 1, 1990, or any
interest payment date thereafter, at the par value thereof plus accrued interest to the date
fixed for redemption.
Source of Payment . 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 i
T es of Bids and Interest Rates . The Bonds will be sold in one block on an "All or None" r
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 1/20 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 maturity must bear
one and the same rate. No bids involving supplemental coupons will be considered. Each bidder
i
shall state in his bid the total interest cost in dollars 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
Mid 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"? whose bid based on the above
computation produces the lowest net effective interest cost to the City.
Good Faith De os it ... A Good Faith Deposit, payable to the "City of Lubbock, Texas", in the /
amount of 129 000.00, is required. Such Good Faith Deposit shall be in the form of a Cashier's v
Check, or its e� quiq v^Tent, 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.A000MPANYING 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 Forma 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.
Delivery ... The Bonds will be tendered for delivery to the Purchaser at any bank in Austin,
Texas, at 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 July 31, 1980, and it is understood and agreed
that the Purchaser will accept delivery and make payment for the Bonds on July 31, 1980, or
thereafter on the date the Bonds are tendered for delivery, up to and including August 14, 1980.
If for any reason the City is unable to make delivery on or before August 14, 1980, 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�0 Opinions . The Bonds are offered when, as and if issued, subject to the unqualified
e1 gal 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,
e City will execute and deliver to the Purchaser a certificate in the form set forth in the
Official Statement.
Change in Tax Exempt Status.. At any time before the Bonds are tendered for delivery, the
Purchaser may withdraw his bid if 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
TF 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 merely 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); the next sale will probably be sometime in the first half of 1981.
Ratings... The outstanding General Obligation Bonds of the City are rated "Aa" by Moody's
/
V
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. I
Additional Copies of Notice, Bid Form and Statement . A limited number of additional copies
Zf this Notice of Sae ana 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 22nd day of May, 1980, 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, by resolution, 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.
BILL McALISTER
Mayor
ATTEST:
EVELYN E. GAFFGA
City Secretary
May 22, 1980
i
L ,
BOND YEARS
Accumulated
Year
Amount
Bond Years
Bond Years
Year
1981 $
320,000
186.665
186.665
1981
1982
320,000
506.665
693.330
1982
1983
320,000
826.665
1,519.995
1983
1984
320,000
1,146.665
2,666.660
1984
1985
320,000
1,466.665
4,133.325
1985
1986
320,000
1,786.665
5,919.990
1986
1987
320,000
2,106.665
8,026.655
1987
1988
320,000
2,42b.665
10,453.320
1988
1989
320,000
2,746.665
13,199.985
1989
1990
320,000
3,066.665
16,266.650
1990
1991
325,000
3,439.582
19,706.232
1991
1992
325,000
3,764.582
23,470.814
1992
1993
325,000
4,089.582
27,560.396
1993
1994
325,000
4,414.582
31,974.978
1994
1995
325,000
4,739.582
36,714.560
1995
1996
325,000
5,064.582
41,779.142
1996
1997
325,000
5,389.582
47,168.724
1997
1998
325,000
5,714.582
52,883.306
1998
1999
325,000
6,039.582
58,922.888
1999
2000
325,000
6,364.582
65,287.470
2000
Average
Maturity
-----------------------
10.122
Years
- iv -
` 4
OFFICIAL BID FORM
Honorable Mayor and City Council June 26, 1980
City of Lubbock
Lubbock., Texas
Gentlemen:
Reference is made to your Official Statement and Notice of Sale and Bidding Instructions, dated
May 22, 1980, of $6,450,000 CITY OF LUBBOCK, TEXAS GENERAL OBLIGATION BONDS, SERIES 1980, both
of which 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
2-1-1981 % 2-1-1988 % 2-1-1994 %
2-1-1982 % 2-1-1989 % 2-1-1995 %
2-1-1983 % 2-1-1990 % 2-1-1996 %
2-1-1984 % 2-1-1991 % 2-1-1997 %
2-1-1985 % 2-1-1992 % 2-1-1998 %
2-1-1986 % 2-1-1993 % 2-1-1999 %
2-1-1987 % 2-1-2000 %
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 129,000.00, which represents our Good Faith Deposit (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 July 31, 1980, or thereafter on the date the Bonds are tendered -for-del ivery,
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 26th day of June, 1980.
Mayor
ATTEST:
City Secretary
• Return of Good Faith Deposit is hereby acknowledged:
By
This Official Statement does not constitute an offer to 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 May 22, 1980
INTEREST EXEMPT, IN THE OPINION OF BOND COUNSEL, FROM PRESENT FEDERAL INCOME
TAXES UNDER EXISTING STATUTES, REGULATIONS AND COURT DECISIONS
$6,450,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
GENERAL OBLIGATION BONDS, SERIES 1980
Dated: July 1, 1980 Denomination: $5,000
Principal and semi-annual interest (February 1 and August l) 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 February 1, 1981.
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.
* The City reserves the right, at its option, to redeem Bonds maturing February 1, 1991,
through February 1, 2000, both inclusive, in whole or any part thereof, on February 1, 1990, or
any interest payment date thereafter, at the par value thereof plus accrued interest to the
date fixed for redemption.
Payment Record: The City has never defaulted.
ality: Attorney General of the State of Texas, and
,,c_ Huouenin_ Raothman & Marrow. Attornevs. Dallas. Texas.
Delivery: Anticipated on or about July 31, 1980.
MATURITY SCHEDULE
Amount
Maturity
Rate Yield Amount
Maturity Rate Yield
320,000
2-1-1981
$325,000
2-1-1991-
320,000
2-1-1982
325,000
2-1-1992*
320,000
2-1-1983
325,000
2-1-1993*
320,000
2-1-1984
325,000
2-1-1994*
320,000
2-1-1985
325,000
2-1-1995*
320,000
2-1-1986
325,000
2-1-1996*
320,000
2-1-1987
325,000
2-1-1997*
320,000
2-1-1988
325,000
2-1-1998*
320,000
2-1-1989
325,000
2-1-1999*
320,000
2-1-1990
325,000
2-1-2000*
* The City reserves the right, at its option, to redeem Bonds maturing February 1, 1991,
through February 1, 2000, both inclusive, in whole or any part thereof, on February 1, 1990, or
any interest payment date thereafter, at the par value thereof plus accrued interest to the
date fixed for redemption.
Payment Record: The City has never defaulted.
ality: Attorney General of the State of Texas, and
,,c_ Huouenin_ Raothman & Marrow. Attornevs. Dallas. Texas.
Delivery: Anticipated on or about July 31, 1980.
TABLE OF CONTENTS
- 2 -
Page
Official Statement:
Description of the Bonds -------------------------------------------------------
1
ElectedOfficials--------------------------------------------------------------
3
Appointed Officials------------------------------------------------------------
3
Consultants and Advisors-------------------------------------------------------
3
Introductory Statement---------------------------------------------------------
4/6
Valuation and Debt Information -------------------------------------------------
7
Ad Valorem Tax Legislation-----------------------------------------------------
8
OtherLiabilities--------------------------------------------------------------
8/9
Note Amortization Schedule --------------------------------=--------------------
9
Funded Debt Limitation---------------------------------------------------------
9
Valuation and Funded Debt History ----------------------------------------------
9/10
Taxable Assessed Valuation by Category -----------------------------------------
10
Estimated Taxable Assessed Valuations ------------------------------------------
10
Authorized General Obligation Bonds --------------------------------------------
11
Estimated General Obligation Bond Program --------------------------------------
11
Authorized But Unissued General Obligation Bonds of Overlapping Subdivisions ---
11
Estimated Overlapping Funded Debt Payable From Ad Valorem Taxes ----------------
12
TaxData-----------------------------------------------------------------------
12
Tax Rate Limitations-----------------------------------------------------------
12
1% Municipal Sales Tax ---------------------------------------------------------
13
Estimated 1979-80 Tax Year Overlapping Taxes -----------------------------------
13
Top Ten Taxpayers--------------------------------------------------------------
14
Interest and Sinking Fund Management Index -------------------------------------
14
Computation of Self -Supporting Debt --------------------------------------------
14
DebtService Requirements ------------------------------------------------------15
TaxAdequacy-------------------------------------------------------------------15
PensionFunds------------------------------------------------------------------16
Lubbock Power and Light --------------------------------------------------------16/18
---------
Condensed Statement of Operations - Electric Light and Power System ------------
18
The Waterworks System----------------------------------------------------------
18/19
Condensed Statement of Operations -Waterworks System --------------------------
19
Increase in Water Rates --------------------------------------------------------
19
AirportSystem-----------------------------------------------------------------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-LitigationCertificate-----------------------------------
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
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
Ml!
Term
City Council
Len th of Service Expires
Occupation
Bill McAlister ElectedMayor April 5, 1980; Apr— 'l 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
Position and Length of
Time
With City
Name
In This Position
of Lubbock
Larry J. Cunningham
ity Manager
Appointe 9- -76
Years
John C. Ross, Jr.
City Attorney
Appointed 8- 3-78
1 Year
Evelyn E. Gaffga
Secretary -Treasurer
Appointed 7- 3-78
1 Year
Samuel W. Wahl
Director of Public Utilities
for 11 Years
27 Years
W. T. (Bill) Wood
Director of Electric Utility
Planning, Development and
Production
for 9 Years
14 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
John R. Brooks
T4x AssessorZC-ollector
for 11 Years
26 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
Ml!
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 $6,450,000 General Obligation Bonds, Series 1980 (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
ad valorem 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 Sewer
System improvements, 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 8,980,000 General Obligation Bonds over the period 1981 through 1982. The next j
installment of,bonds will probably be sold during the period January -June, 1981. See "Esti-V/
mated General Obligation Bond Program'
In addition, the City Council is �onsid , ing a bond election to authorize the issuance
of approximately $21,000,000 eneral'Obligaticaon Bo ds, the proceeds to be used to develop
additional ground water supplies, to expand water treatment and storage capacity for water
received from the Canadian River Municipal Water Authority and for distribution system improve-
ments.
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. It is the policy of the Attorney General of Texas not to
approve bonds while their validity.is being questioned by pending or threatened litigation, but
that rule is not applied where the litigation is "frivolous". It is anticipated that the bonds,
When submitted to the Attorney General, will be approved.
On the 15th day of August, 1977, (Consolidated Judgment in Causes 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 proceedings of May 21, 1977 (when $26,435,000 in
general obligation bonds were approved by the electorate) and the first installment of bonds
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 al,
565 S.W. 2d 578 Tex. Civ. App. - Amarillo, 978 no writ history.
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,
Lubbock 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,
including the Series 1980 Bonds to which this Official Statement pertains. 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.
- 4 -
Cause No. 94,796 (James Marshall' and Robert Isom v. City of Lubbock, Texas) was filed May 7,
1979, which according to its er�rmmssiis—"in l e nature of a biII of review' Among other things,
it was alleged that (i) Cause No. 92,070 (related to this series of bonds) 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 grants the City the right to revise and rearrange the original details. The
City reduced the number of bonds issued, the date, maturity schedule and similar details, and
issued and delivered the last series of general obligation bonds (Series 1979). On June 28,
1979, the trial court dismissed Cause Number 94,796 and one plaintiff (Isom) has appealed to
the Court of Civil Appeals in Amarillo. Although briefs of the parties have been on file since
December 6, 1979, the case has not yet been set for oral argument. 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 (this issue) 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 (on April 14, 1980) entered a
judgment upholding the validity of the bonds. The judgment reads in part:
"32. That this Judgment shall be forever binding and conclusive against the City of
Lubbock, Texas, and all other parties to this cause, including those before the Court
and all other parties irrespective of whether such parties are within the description
of parties in interest contained in the notices of this proceeding heretofore pub-
lished, and this Judgment shall constitute a permanent injunction against the insti-
tution by any person of any action or proceeding contesting the validity of said
election of May 21, 1977, or the procedures relating thereto, and from contesting the
validity of said $6,450,000.00 CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS,
SERIES 1980, or the validity of provisions made for their payment or the issuance,
sale or delivery of said bonds or the restraint or hindrance of any contract lawfully
entered into pursuant to the purposes for which said bonds were voted."
Petitions Affecting the Tax Rate, Assessed Valuation and Tax Levy ... On July 12, 1979, three
petitions calling for an election to amend the City's Home Rule 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.
- 5 -
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. No representation can be made at this
time as to when a judgment in that case will become final. ifh'e trial of the case was set for May
7, 1980, but the Court has indicated the trial will be postponed because of the serious injury
to the City Attorney in an automobile accident
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.
- 6 -
� , f
VALUATION AND DEBT INFORMATION
January 1, 1979, Appraised Value of TaxableProperty
(Source: Tax Assessor -Collector, City of Lubbock $2,445,330,632
Less Local Exemptions at Market (Appraised) Value:
Over.65 $82,988,900
Disabled Veterans 3,214,083 86,202,983
January 1, 1979, Net Appraised Value $2,359,127,649
1979 Taxable Assessed Valuation (60% of Net Appraised Value)
(See Notes 1 and 2) $1,415,476,589
City. Funded Debt Payable From Ad Valorem Taxes (As of
3-31-80) (See Notes 3 and 4)
General Purpose Bonds (including $568,000 of this issue) $31,517,972
Waterworks Bonds (including $5,082,000 of this issue) 14,459,847
Sewer System Bonds (including $800,000 of this issue) 3,706,470
Electric Light Bonds 41,711
TOTAL FUNDED DEBT $ 49,726,000
Interest and Sinking Fund (As of 3-31-80) $ 1,195,016
Ratio Total Funded Debt to 1-1-79 Net Appraised Value -------------------------------- 2.11%
Ratio Total Funded Debt to 1979 Taxable Assessed Valuation --------------------------- 3.51%
1980 Estimated Population - 185,000*
Per Capita Taxable Assessed Valuation - $7,651.22
Per Capita Total Debt - $268.79
Area - 86.87 Square Miles
* Source: Planning Department, 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.
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 they will finally amount
to approximately $92,000,000 and $4,200,000, respectively, in market value exemptions.
Note 3: As' of 3-31-80 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:. $1,020,000 Waterworks System Revenue Bonds and $17,005,000 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.
Note 4: The City's last General Obligation Bond sale was August 21, 1979, when $8,820,000
General Obligation Bonds, Series 1979, were offered and sold.
- 7 -
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-
tivity 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.
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.
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.
- 8 -
•' 1
Total purchase price was $389,820.00. Prior to purchase, the City obtained various appraisals
of the property which varied from a 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%.
Fiscal
Year
Ending
9-30
-979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
NOTE AMORTIZATION SCHEDULE
$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".
Fiscal
Period
Ending
9-30
968-69
1969-70
1970-71
1971-72
1972-73
1973-74
1974-75
1975-76
1976-77
1977-78
1978-79
1979-80*
VALUATION AND FUNDED DEBT HISTORY
Taxable
Assessed
Valuation(1
585,496,30 (2;
601,789,533(2;
617,204,605(2
630,151,893(2
659,742,523(2
716,225,294(2
797,387,868(2
923,557,647(2
1,014,049,149(2
1,104,591,631(2
1,298,016,250(2
1,415,476,589
Funded Debt Oui:-
standinq. Year. 'End
$30,098,000
30,862,000
35,344,000
44,459,000
47,266,000
53,440,000
50,546,000
47,763,000
43,682,000
42,107,000
47,086,000
49,301,000
Ratio Funded Debt
to Taxable
Assessed Valuation
5.14%
5.13%
5.73%
7..06%
7.16%
7.46%
6.34%
5.17%
4.31%
3.81%
3.63%
3.48%
(1) For all years Taxable Assessed Valuations are net of any exemptions. Basis of assessment
for all years was 60% of market values.
IMM
Outstanding
Principal
Interest
Total
Balance
S299,946.80
$ 19,003.60
$ 20,996.40
$ 40,000.00
280,943.20
20,334.00
19,666.00
40,000.00
260,609.20
21,757.20
18,242.80
40,000.00
238,852.00
23,280.40
16,719.60
40,000.00
215,571.60
24,910.00
15,090.00
40,000.00
190,661.60
26,653.60
13,346.40
40,000.00
164,008.00
28,519.60
11,480.40
, 40,000.00
135,488.40
30,515.60
9,484.40
40,000.00'
104,972.80
32,652.00
7,348.00
40,000.00
72,320.80
34,937.60
5,062.40
40,000.00
37,383.20
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".
Fiscal
Period
Ending
9-30
968-69
1969-70
1970-71
1971-72
1972-73
1973-74
1974-75
1975-76
1976-77
1977-78
1978-79
1979-80*
VALUATION AND FUNDED DEBT HISTORY
Taxable
Assessed
Valuation(1
585,496,30 (2;
601,789,533(2;
617,204,605(2
630,151,893(2
659,742,523(2
716,225,294(2
797,387,868(2
923,557,647(2
1,014,049,149(2
1,104,591,631(2
1,298,016,250(2
1,415,476,589
Funded Debt Oui:-
standinq. Year. 'End
$30,098,000
30,862,000
35,344,000
44,459,000
47,266,000
53,440,000
50,546,000
47,763,000
43,682,000
42,107,000
47,086,000
49,301,000
Ratio Funded Debt
to Taxable
Assessed Valuation
5.14%
5.13%
5.73%
7..06%
7.16%
7.46%
6.34%
5.17%
4.31%
3.81%
3.63%
3.48%
(1) For all years Taxable Assessed Valuations are net of any exemptions. Basis of assessment
for all years was 60% of market values.
IMM
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.'
* Anticipated.
Taxable
Fiscal
Assessed
Fiscal
Assessed
TAXABLE ASSESSED VALUATION BY CATEGORY
Valuation
Period
Property
190--81
,' 0, 0(2)
Adjustments
$2,970,000,OOU(3)
1981-82
Assessment
1983-84
3,208,000,000(3)
For
(2)
As % of
(1)
Personal Corrections
Taxable
Appraised
Real
Personal
Property: And
Assessed
Year
Value
Estate
Property
Automobile Supplements
Valuation
Y96$
----Off—
463,9 2,570
$106,344,44U
5,82 ,4 0 616,109)
585,496,3 -OT
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
(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 1974-1979 are net after the following exemptions
(in terms
of Assessed
Valuation):
Over 65
Disabled
Homestead
Veteran
Year
Exemptions
Exemptions
1974
$ 11,395,UUU
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**
* As of 10-1-78.
** As of 10-1-79.
(3) Personal automobiles became exempt from ad valorem taxes in 1979.
ESTIMATED TAXABLE ASSESSED VALUATIONS (1
(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.
- 10 -
Estimated
Estimated
Taxable
Taxable
Fiscal
Assessed
Fiscal
Assessed
Period
Valuation
Period
Valuation
190--81
,' 0, 0(2)
Mr -8-5
$2,970,000,OOU(3)
1981-82
2,750,000,000(3)
1983-84
3,208,000,000(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.
- 10 -
j
Purpose
ail terworks System
Sewer System
Street Improvements
Storm Sewer and Drainage
Storm Sewer and Drainage
Fire Station
Fire Station (for adjacent
areas, when annexed) 5-21-77 310 000 -0-
$28 $12,955,000
ESTIMATED GENERAL OBLIGATION BOND PROGRAM
Anticipate Issuance*
AUTHORIZED GENERAL OBLIGATION BONDS
Amount
Date
Amount
Heretofore
Authorized
Authorized
Issued
5-2r--7-7—
6,7 ,0 0
S 6,543,000
5-21-77
3,303,000
1,230,000
5-21-77
4,782,000
2,575,000
11- 9-67
1,950,000
1,715,000
5-21-77
473,000
100,000
5-21-77
792,000
792,000
Waterworks System
Sewer System
Street Improvements
Storm Sewer and Drainage
Fire Station (for adjacent
areas, when annexed)
Amount
1982
Being
Unissued
Issued
Balance
8 , 0
800,000
0
1,273,000
568,000
1,639,000
-0-
235,000
-0-
373,000
-0-
-0-
-0- 310 000
6,450,000 8,980,000
1981
1982
Total
,503,0
,6 ,0
5, 0,00
1,273,000
-0-
1,273,000
1,639,000
-0-
1,639,000
-0-
373,000
373,000
-0-
4 415,000
310,000
4,330,000
310,000
8,745,000
* The program does not anticipate that the $235,000 Storm Sewer and Drainage Bonds authorized
11-9-67 will be sold.
Note: The City Council is considering calling) a bond election to authorize the issuance of
approximately $21,000,00aterworks Improvement General Obligation Bonds; the proceeds would
be used to develop additional ground water supplies in the City's Bailey County Sandhills
Field, to expand water treatment and storage capacity for water received from the Canadian
River Municipal Water Authority and for distribution system improvements. If authorized, these
bonds would probably be sold in 1981 and 1982.
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 3-31-8
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.
- 12 -
Estimated
Total
%
Overlapping
Taxing Jurisdiction
Funded Debt
.AVpl.i..ca�ble
Funded Debt
City of Lubbock*
Lubbock Independent School District
b,W
6,770,000
100.00%
99.53%
, 6,0
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. l
-0-
81.18%
-0-
Lubbock-Cooper Independent School District
1,427,000
2.78%
39,671
Frenship Independent School District
4,024,142
16.80%
676,056
Roosevelt Independent•School District
616,000
0.51%
3,142
Idalou Independent School District
666,000
0.01%
67
TOTAL OVERLAPPING FUNDED DEBT
$58,165,395
Ratio Overlapping Funded Debt to 1979 Taxable Assessed
Valuation ---------------------
4.11%
Per Capita Overlapping Fuhded
Debt - $314.42
* Includes these $6,450,000 Bonds.
TAX DATA
(Year Ending 9-30)
Distribution
(1)
Tax Tax General Board of City Interest and
(1)
% Current
% Total
Year Rate Fund Development Sinking Fund
Tax Levy
Collections
-
Collections
T9_69-70 $I.0$ 0.49 $0.05 $0.94
6, 9 ,3-27
9- .4T3T__
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
90.46%*
92.00%*
(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 3-31-80.
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.
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.
- 12 -
1% MUNICIPAL SALES TAX
(Effective -
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
9-30to�CitX
Tax Levy
Tax Rate
Per Capita*
_T968
1969
$ 990,000**
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 TAXYEAROVERLAPPING TAXES
Set forth below is an estimate of all 1979-80 Tax Year taxes levied on 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 be
an exact computation of such tax levies:
Taxing Jurisdiction
City of Lubbock
Lubbock Independent School District
Lubbock County
Lubbock County Hospital District
High Plains Underground Water Con-
servation District No. 1
State of Texas
Estimated Estimated Estimated 1979 Estimated
Appraised Basis of Assessed Tax 1979 Taxes
Value Assessment Valuation Rate Levied
50,000* 60% 30,000 1. 12 0 336.00
45,000** 60% 27,000 1.360 367.20
25,000 40% 10,000 0.780 78.00
25,000 40% 10,000 0.750 75.00
25,000 40% 10,000 0.045 4.50
25,000 40% 7,000*** 0.100 7.00
Estimated Total 1979-80 Ad Valorem Taxes
* Market value.
** After $5,000 market value residence homestead exemption.
$867.70
*** 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.
- 13
Name of Taxpayer*
Southwestern Bell Telephone Company
Texas Instruments Incorporated
Southwestern Public Service Company
South Plains Mall
Pioneer Natural Gas Company, a sub-
sidiary of Pioneer Corporation
Furr's, Inc.
Plains Co-op Oil Mill
International Business Machines
Clark Equipment Company
Waples-Platter
TOP TEN TAXPAYERS
1979 % of 1979
INTEREST
Taxable
Taxable
and Power
Assessed
Assessed
Nature of Property
Valuation
Valuation
Telephone Uti ity
Electronic Manufacturing
3., ,8
31,248,720
2.36%
2.21%
Electric Utility
18,795,680
1.33%
Regional Shopping Center
12,375,400
0.87%
Gas Utility
7,477,440
0.53%
Retail Grocery Company
6,799,750
0.48%
Cotton Oil Mill
6,667,860
0.47%
Computers, Business Machines
4,608,600
0.33%
Earth Moving Equipment
4,538,200
0.32%
Manufacturing
522,723
42,033
Wholesale Groceries
4 416 480
X130:288 51U
0.31%
9.Z17-
.Zi7
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
Electric Light
- 14 -
Waterworks
Sewer
and Power
System
System
System
Net System Revenue Available for Fiscal Year
Ending 9-30-79
$1,702,481
$972,942
$4,368,345
Less: Revenue Bond Requirements, 1979-80
Fiscal Year
470,780
-0-
2,319,280
Balance Available for Other Purposes
$1,231,701
$972,942
$2,049,065
System General Obligation Bond Requirements,
1979-80 Fiscal Year
1,345,959
522,723
42,033
Balance
$ (114,258)
$450,219
$2,007,032
Percentage .of System General Obligation Bonds
Self -Supporting-
91.51%
100.00%
100.00%
- 14 -
- 15 -
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- 15 -
PENSION FUNDS
Texas Municipal Retirement System ... All permanent, full-time City employees who are not
firemen and who were less than 50 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.
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, 1978, was
$5,086,386. This liability is being amortized annually, and will be liquidated by December 31,
2000.
City of Lubbock assets held by the System on December 31, 1978, were $12,610,929 ($1,232,195
for prior service liabilities and $11,378,734 for accrued current service liabilities). Un-
funded accrued current service liabilities totaled $248,476, and are being liquidated by a five
year amortization 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.
- 16 -
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 Stations ... 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:
Transmission and Distribution ... A 69,000 volt (69 KV) transmission loop system, 36 miles in
length, 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
W.
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 Supply . 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.
- 17 -
Generator
Year
Capacity
Manufacturer
Installed
Station
Prime Mover
Fuel
in KW
Nordberg
1930—
---1'
Diesel—
0O est—
9oo
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
5000
Transmission and Distribution ... A 69,000 volt (69 KV) transmission loop system, 36 miles in
length, 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
W.
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 Supply . 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.
- 17 -
r
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
EL CTRIC LIGHT AND POWER SYSTEM
Fiscal Year Ended
9-30-79
9-30-78
9-30-77
9-30-76
9-30-75
Operating Revenues
9, 7 8 U
315,767,58582,0
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
Electric Connections
$ 4,368,345 $ 5,717,266 $ 5,827,306 $ 5,256,683 $ 3,378,566
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
Aut o� 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 gallons 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
'Tong term water sypply 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 this third water source.
- 18 -
The System . Lubbock's Waterworks System is modern and efficient and property, plant and
equipment 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 purchased
from the Canadian River Municipal Authority was completed in 1967. Capacity of the plant is 56
MGD with a future capability of 70 MGD, when expanded. Engineering contracts have been
approved for this expansion program; planning calls for construction contracts to be awarded in
1981. Maximum daily input is presently 42 MGD. The plant also treats water for several other
members of the Authority; the City of Lubbock is fully reimbursed for these costs.
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
Operating Revenues $6,818,698 $7,001,353 $5,015,444 $4,966,645 $4,662,835
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 5,130,938 4,260,222 3,801,437 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 1, 1980, monthly water rates will be
increased as follows:
Old Rates (Effective 10-1-79) New Rates (Effective 6-1-80)
First 1,000 gallons $3.1200 Minimum First 1,000 gallons $3.7400 Minimum
Next 24,000 gallons 0.7018/M gallons Next 49,000 gallons 0.7719/M gallons
Next 225,000 gallons 0.5445/M gallons Next 200,000 gallons 0.6638/M gallons
All Over 250,000 gallons 0.4840/M gallons All Over 250,000 gallons 0.6175/M gallons
- 19 -
ATRPnRT QVCTFM
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-
nationa ontinenta 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. 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 Air ort�Terminal . The terminal building, completed in April, 1976,
contains approximately -144,000 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
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 off ice,space and houses a FAA General Aviation District Office. A FAA -operated
Flight Service Station is located adjacent to the old terminal.
Runway System ... The runway system consists of:
1 - 11,500' x 1501, north/south, primary runway with high intensity lighting and a FAA -operated
instrument landing system and other navigational aids;
1 - 8,000' x 1501, east/west, cross -wind runway, with high intensity lighting and UASI-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
AIRPORT SYSTEM
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 11—,467,716 $1,049,010 3--8-37—,0-27
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 Bon�utstanding, 9-30-79 -------------------------------------- $2,895,000
Interest and Sinking Fund, 9-30-79 ---------------------------------------------- $ 416,963
Reserve Fund, Cash and Investments, 9-30-79 ------------------------------------- S 300,000
- 20 -
GENERAL INFORMATION REGARDING THE CITY AND ITS ECONOMY
0 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 ...
0 Lubbock is the eighth largest City in Texas:
1910 Census
1920 Census
1930 Census
1940 Census
1950 Census
1960 Census
1970 Census
1980 (Estimated)
City of Lubbock
Coraorate Limits
1,938
4,051
20,520
31,853
71,390
128,691
149,101
185,000*
* Source: City of Lubbock, Texas
Standard Metropolitan Area'(Lubbock County)
1970 Census 179,295
1976 (Estimated) 199,600*
1980 (Estimated) Over 200,000
* Source: U. S. Bureau of the Census
AGRICULTURE ...
1 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.
0 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.
0 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
All Crops $56,260,000
Livestock and Products 31,275,000
U. S. Government Payments 4,615,000
Total Cash Receipts $92,150,000
* Preliminary - subject to revision.
1976 1977 1978*
$75,460,000 17,T114,000 78,183,000
26,374,000 27,455,000 27,233,000
2.796,000 1,153,000 6,498,000
$104,630,000 $106,122,000 $111,914,000
0 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
$1,534,113,000.
0 Three major vegetable oil plants located in Lubbock have a combined weekly capacity of over
2,400 tons of cottonseed and soybean oil.
0 Several major seed companies are headquartered in Lubbock.
- 21 -
q
e
'
GENERAL INFORMATION REGARDING THE CITY AND ITS ECONOMY
0 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 ...
0 Lubbock is the eighth largest City in Texas:
1910 Census
1920 Census
1930 Census
1940 Census
1950 Census
1960 Census
1970 Census
1980 (Estimated)
City of Lubbock
Coraorate Limits
1,938
4,051
20,520
31,853
71,390
128,691
149,101
185,000*
* Source: City of Lubbock, Texas
Standard Metropolitan Area'(Lubbock County)
1970 Census 179,295
1976 (Estimated) 199,600*
1980 (Estimated) Over 200,000
* Source: U. S. Bureau of the Census
AGRICULTURE ...
1 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.
0 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.
0 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
All Crops $56,260,000
Livestock and Products 31,275,000
U. S. Government Payments 4,615,000
Total Cash Receipts $92,150,000
* Preliminary - subject to revision.
1976 1977 1978*
$75,460,000 17,T114,000 78,183,000
26,374,000 27,455,000 27,233,000
2.796,000 1,153,000 6,498,000
$104,630,000 $106,122,000 $111,914,000
0 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
$1,534,113,000.
0 Three major vegetable oil plants located in Lubbock have a combined weekly capacity of over
2,400 tons of cottonseed and soybean oil.
0 Several major seed companies are headquartered in Lubbock.
- 21 -
q
BUSINESS AND INDUSTRY
Lubbock SMSA Labor Force Estimates
(Source: Texas Employment Commission)
February January December February January December
1980* 1980** 1979** 1979** 1979** 1978**
Civilian Labor Force �m Ia2 o '6 7WW _TW;_5M 9 TRU _07;m
Total Employment 97,260 97,850 100,970 96,960 95,440 98,270
Unemployment 4,070 4,230 2,630 3,550 3,500 3,980
Percent Unemployed 4.0% 4.1% 2.5% 3.5% 3.5% 3.9%
* Preliminary.
** Revised.
0 The Texas Employment Commission reported in March, 1980, that February, 1980, nonagricul-
tural employment in the Lubbock area totaled 89,730, up from 87,510 in February, 1979; of this
total an estimated 13,060 were employed in manufacturing compared to 12,450 in February, 1979.
0 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.
0 Some larger industries in Lubbock (with more than 100 employees) are:
Company Product
Texas Instruments, Inc. Consumer Products with Semi -Conductor -
Elements
Johnson Manufacturing Company (Division of Heavy Earth -Moving Machinery and
Eagle-Picher Industries) Farm Equipment
Lubbock Avalanche -Journal Southwestern Newspaper
Newspaper Corporation
Litton Data Systems, Guidance and Control
Systems Division, Litton Industries, Inc.
Plains Co-op Oil Mill
Lubbock Manufacturing Company
Frito-Lay, Inc. (Subsidiary of
Pepsico, Inc.)
Clark Equipment Company (Hancock
Division)
Goulds Pumps, Inc.
Devro Inc. (Subsidiary of Johnson and
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.
Navigational Equipment; Electronic
Computer Systems
Vegetable Oil Products, Cottonseed
Products
Pressure Vessels
Potato and Corn Chips
Heavy Road and Earth -Moving
Machinery
Vertical Turbine Pumps
Sausage Casings and Tannery
Bread Products
Soft Drinks
Structural Steel Fabrication, Irriga-
tion Equipment, Pollution Equipment
Steel Fabrication
Automatic Sprinkler Heads
Bread Products
Dairy Products
Aluminum and Brass Castings, Wooden
Foundry Patterns
Cottonseed Oil and Other Cottonseed
Products, Soyean Oil
Soft Drinks
Meat Processing
Reground Ball Bearings, Formed Wire
Coils, Starter Armatures
- 22 -
Estimated
Employees
January,
1980*
,500+
725+
382+
350+
350+
322+
303+
290+
240+
187+
180+
179+
155+
153+
150+
130+
126+
125+
125+
100+
100+
100+
i 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.
• 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.
8 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 18, 8,000.
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
1968
3388,630,275
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 ...
I 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).
• 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 ...
The Lubbock Independent School District, with an area of 87 square miles, includes over 95%
of the City of Lubbock. As of February, 1980, the District had a scholastic membership of
29,386, and there were 2,079 faculty and professional personnel and 1,283 other employees. The
District operates 5 senior high schools, 9 junior high schools, 35 elementary schools and other
educational programs.
- 23 -
SCHOLASTIC MEMBERSHIP
HISTORY (1)
Scholastic
Refined Average
School Year
Membership
Dail Attendance
968-69
32�
3 ,, 358
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(2)
29,386
26,968
(1) Source: Superintendent's Office, Lubbock Independent School District.
(2) As of February,.1980.
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.
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.
- 24 -
9
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.
HOSPITALS AND MEDICAL CARE ...
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.
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 buildirigs, 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 bting redeveloped privately with an office building, motels, a
hospital, and other facilities.
Available to residents are Texas Tech University programs and events, Texas Tech University
Museum, Planetarium and Ranch Heritage Center exhibits and programs, Lubbock Memorial Civic
Center and its events, Lubbock Symphony Orchestra programs, Lubbock Theatre Center, Lubbock
Civic Ballet, Municipal Auditorium and Coliseum programs and events, the library and its
branches, the annual Panhandle -South Plains Fair, college and high school football, basketball
and other sporting events; modern movie theatres.
CHURCHES ...
0 Lubbock has approximately 200 churches representing more than 25 denominations.
UTILITY SERVICES ...
I 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.
0 Telephone - Southwestern Bell Telephone Company.
MEDIA ...
• Newspapers - 1 daily; others bi-weekly, weekly or monthly.
• Television - 3 network channels; 1 educational public service channel.
I Radio - Combined total of 16 AM and FM stations.
- 25 -
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- 26 -
RATINGS
Applications for contract ratings on this issue have been made to Moody's Investors Service,
Inc. and Standard & Poor's Corporation. 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-
f
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 Official 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.
ATTEST:
EVELYN E. GAFFGA
City Secretary
- 28 -
BILL McALISTER
Mayor
f
IF i 1
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.