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HomeMy WebLinkAboutResolution - 1017 - Sale Procedures - General Obligation Bonds, Series 1982 - 01_28_1982�I RESOLUTION 1017 - 1/28/82 CITY SECRETARY -TREASURER JPB:js RESOLUTION A RESOLUTION by the City Council of the City of Lubbock, Texas, relating to procedures to be followed in the sale of $10,950,000 City of Lubbock, Texas, General Obligation Bonds, Series 1982, dated June 1, 1982 (being to the extent of $235,000 thereof an installment out of bonds authorized at an election of November 9, 1967, and being to the extent of $10,715,000 thereof an install- ment out of bonds authorized at an election of November 21, 1981); providing the forms of procedures and in substantial form all instruments for said Series 1982 Bonds; stating the intent and desire of the City Council to proceed with such Series 1982 expeditiously and.as appropriate within their discretion; re- serving the right to make corrections and insubstantial and immaterial changes and modifications in all such Series 1982 instruments to reflect the true facts, circumstances and dates at time of ultimate execution, resolving other matters incident and related to such purpose, including the filing of an action under the provisions of Vernon's Ann.Civ.St., art. 717m-1; and providing an effective date for this Resolution. WHEREAS, this City Council has determined and does hereby determine that: (1) It should proceed with the authorization of bonds to be known as "City of Lubbock, Texas, General Obligation Bonds, Series, 1982", dated June 1, 1982; and, (2) That it is necessary and expedient that the instruments and proce- dures necessary to the accomplishment of such purpose be now defined so that same may be subjected to judicial consideration, reserving the right to make all corrections, modifications and changes necessary so that said instruments at the time ultimately enacted, executed or delivered shall accurately reflect conditions at the time of such enactment, execution or delivery, provided such corrections, modifications and changes shall not substantially or materially effect the substance of the proposed instruments; and, (3) That a clear and concise declaration of the intentions and desires of the City Council as to such proposed General Obligation Bonds should be of record; and, (4) That form of the Ordinance to be hereafter enacted setting all terms and conditions of the Series 1982 General Obligation Bonds be provided; as well as prescribing the form of notice to be published in accordance with Article VIII, Section 5 of the City Charter and the form of notice of sale to be distributed to proposed bidders, as well as all further instruments neces- sary to the sale and delivery of said Series 1982; and, (5) It should institute an action under Vernon's Ann.Civ.St., art. 717m-1 in order that all matters possible arising in connection with the issuance of Series 1982 Bonds may be validated and confirmed; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1. That the recitals and determinations made in the preamble hereof are found to be true and are adopted as the findings of this governing body. SECTION 2. That this Council proposes to proceed as quickly as pos- sible, subject to the Judicial procedures contemplated hereby, with the sale and delivery of $10,950,000 City of Lubbock, Texas, General Obligation Bonds, Series 1982, dated June 1, 1982. SECTION 3. That the City Attorney is directed to institute and file an appropriate action, under the provisions of Vernon's Ann.Civ.St., art. 717m-1, to approve and validate the bonds now sought to be issued and obtain appropriate relief against the institution of suits which would or might pre- vent the carrying out of the wishes of the electorate, all in the manner pro- vided by said law. SECTION 4. That this Council proposes to enact at the soonest possible and appropriate date, in substantially the form hereafter set forth, an Ordi- nance authorizing the issuance of $10,950,000 City of Lubbock, Texas, General Obligation Bonds, Series 1982; said Ordinance being attached as Exhibit R-1 to this Resolution and to which attachment reference is here made for all pur- poses. SECTION 5. That the enactment of said aforesaid Ordinance shall be re- flected upon the minutes of the City Council of the City of Lubbock, Texas,' substantially in the form and manner set forth in the minutes being attached as Exhibit R-2 to this Resolution and to which attachment reference is here made for all purposes. SECTION 6. That there shall be after enactment of said aforesaid Ordinance, attached to each copy of said Ordinance submitted subsequently in the bond approval process, and where required, a certificate substantially in the form attached as Exhibit R-3 to this Resolution and to which attachment reference is here made for all purposes. Similar certificates as appropriate may be attached by the City Secretary to other Ordinances, resolutions, minutes or other documents hereinafter described, as appropriate. SECTION 7. That this Council in compliance with charter requirements proposes thereafter to issue and approve a notice of sale, which except for the date and time of sale shall be in substantially the form attached as Exhibit R-4 to this Resolution and to which attachment reference is here made for all purposes. That such notice is the format of the notice which the City proposes to use in meeting the requirement of Article VIII, Section 5 of the City Charter, in that such notice would be published (after being completed) once each week for a period of thirty days in the Lubbock Avalanche -Journal, a newspaper of general circulation in and published in the City of Lubbock. That the date and time to be set in such notice for the receipt of bids would be not less than 30 days following the date of the first publication; that the time of day established for the sale shall be between the hours of 9 A.M. and 4 P.M.; that the City Council proposes to convene in open session, after notice thereof has been given in compliance with Article 6252-17, V.A.T.C.S. for the purpose of opening and considering bids or proposals for the purchase of such bonds. SECTION 8. That additionally this Council proposes to cause to be distributed an Official Statement, Notice of Sale and bidding documents in substantially the form attached as Exhibit R-5 to this Resolution and to which attachment reference is here made for all purposes. The Council reserves the right to cause such instrument to be modified and amended to reflect at time of distribution current information as to all matters included, but no changes of a substantial or material nature at law are contemplated. That said documents shall be distributed to investment bankers and others who would normally submit proposals for the purchase of bonds of the kind and character to be offered for sale and the City proposes to cause such distri- bution to be made. That prior to the distribution of said Notice of Sale and Bidding In- structions, Official Bid Form and Official Statement, all as contained in said instrument attached as Exhibit R-5, the Council will by resolution approve the form and content of the above and authorize First Southwest Company, Dallas, Texas, to distribute these said instruments to prospective bidders for and purchaser of the Series 1982 general obligation bonds which are the subject of this Resolution. The form of said Resolution shall be substantially as reflected by the instrument attached hereto as Exhibit R-6 to this Resolution and to which attachment reference is here made for all purposes. SECTION 9. That subsequent to the final enactment of the Ordinance attached to this Resolution as Exhibit R-1, the Council hereby authorizes and approves the execution by the officer indicated of a General Certificate substantially in the form attached hereto as Exhibit R-7 to this Resolution and to which attachment reference is here made for all purposes. SECTION 10. That the Council directs, authorizes and approves the execution, issuance and delivery at the appropriate time or times of a Debt Service Requirement Schedule substantially in the form attached hereto is Exhibit R-8 to this Resolution and to which attachment reference is here made for all purposes. SECTION 11. That the Council after receipt of bids, opening thereof and acceptance of the best bid received, subject to the authority of the Council to reject any or all bids, shall upon acceptance enact an ordinance substantially in the form reflected by Exhibit R-9 to this Resolution and to ',which attachment reference is here made for all purposes. It is by this instrument that the Council shall adopt and specify the interest rates the bonds are to bear (as established in the bid documents). SECTION 12. That the minutes reflecting passage upon first reading of the ordinance immediately above described shall be substantially as reflected by Exhibit R-10 to this Resolution and to which attachment reference is here made for all purposes. SECTION 13. That the minutes reflecting passage upon second and final reading of the ordinance immediately above described shall be substantially as reflected by Exhibit R-11 to this Resolution and to which attachment reference is here made for all purposes. SECTION 14. That as of the date of sale of said bonds the Council shall enact a Resolution approving the form and content of the Official Statement, which Resolution shall be substantially as reflected by instrument attached to this Resolution as Exhibit R-12 and to which attachment reference is here made for all purposes. SECTION 15. That the Council authorizes and directs that at the appro- priate time a Certificate as to Official Statement by the officer named there- on substantially in the form reflected by instrument attached to this Resolu- tion as Exhibit R-13 and to which attachment reference is here made for all purposes. SECTION 16. That the Council further proposes, during the procedures leading to ultimate sale and delivery of the $16,750,000.00 City of Lubbock, Texas, General Obligation Bonds, Series 1982, to utilize the additional in- struments in'substantially the forms attached (which shall be current as of the date of execution) as follows: (1) Treasurer's Receipt attached to this Resolution as Exhibit R-14 and to which attachment reference is here made for all purposes; and, (2) Signature and No -Litigation Certificate attached to this Resolution as Exhibit R-15 and to which attachment reference is here made for all purposes. SECTION 17. That the language of each instrument proposed to be uti- lized as included in this Resolution, is in each instance adopted as part of this Resolution and as the findings and determinations hereof. The Council reserves the right to make appropriate corrections and insubstantial and im- material changes and modifications in all such instruments so that each will reflect the true facts, circumstances and dates at the time of ultimate exe- cution. SECTION 18. The City Secretary -Treasurer of the City of Lubbock, Texas, is authorized and directed to prepare, execute and deliver, such certificates as to the authenticity as may be subsequently required or appropriate upon passage of this Resolution, or thereafter, of copies of this Resolution or of any -instrument attached as an exhibit to this Resolution — SECTION 19. That as to all documents and instruments above proposed to be executed, submitted or delivered as set forth hereinabove, the Council here reserves the right to complete the blanks provided therein, correct clerical errors as may be discovered therein, and make such other insubstantial and immaterial changes as may be necessary to reflect changes of conditions not affecting the validity of the instruments, prior to execution, submission or delivery, respectively. Council also reserves the right to make such further and additional changes in said instruments as may be suggested or required by the Attorney General of the State of Texas, and such changes and modifications, if any, as may be required or allowed by the eventual Judgment in the art. 717m-1 proceeding authorized by this Resolution. SECTION 20. passage. PASSED BY THE CITY C( ATTEST: velyn Ga fga, CityAl APPROVED AS TO FORM: L oUfi C. Ross, Jr., Ci ity of Lubbock, Texz i 1 AN ORDINANCE by the City Council of the City of Lubbock, Texas, authorizing the issuance of $10,950,000 "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1982" dated June 1, 1982, for the purpose.of making permanent public improvements, to wit: $812,000 for constructing, improving and expanding the City's Airport Terminal facilities, and including terminal apron improvements; $1,090,000 for constructing improvements and extensions to the City's sanitary sewer system; $3,280,000 for constructing street improvements in and for said City, including lighting; $4,283,000 for improving, extending and equipping the City's traffic signalization system; $250,000 for constructing, improving, and equipping fire station buildings in and for said City and the purchase of necessary sites therefor; $1,000,000 for constructing, improving or expanding health facilities, including the purchase of necessary sites therefor; $235,000 for constructing, enlarging, extending and installing storm sewers, drains and gutters, and other improvements incidental thereto, including acquisition of land for drainage purposes and drainage area modifications for mosquito control; prescribing the form of the bonds and the form of the interest coupons; levying a continuing direct annual ad valorem tax on all taxable property within the limits of said City to pay the interest on said bonds and to create a sinking fund for the redemption thereof and providing for the assessment and collection of such taxes; enacting provisions incident and relating to - the subject and purpose of this ordinance; and declaring an emergency and providing an effective date. WHEREAS, pursuant to elections held in the City of Lubbock, Texas, on the 9th day of November, 1967, and the 21st day of November, 1981, this City Council became authorized and empowered to issue general obligation bonds of the City to mature serially over a period of years not to exceed forty (40) years from their date for the purpose of making certain permanent public improve- ments; and WHEREAS, this City Council now deems is advisable and to the best interest of the City that of the bonds voted at the elections held November 9, 1967, and November 21, 1981, the following should now be issued, all as reflected by the following table: AMOUNT AMOUNT DATE OF AMOUNT PREVIOUSLY BEING UNISSUED ELECTION PURPOSE AUTHORIZED ISSUED ISSUED BALANCE Storm sewers, 11- 9- 67 drains, gutters $ 1,950,000 $ 1,715,000 $ 235,000 - 0 - 11-21-81 Airport Fac. 12,854,000 -0- 812,000 $12,042,000 11-21-81 SSS Imp & Ex 7,892,000 -0- 1,090,000 6,802,000 11-21-81 St Imp,Lighting 9,495,000 -0- 3,280,000 6,215,000 11-21-81 Traf Signalization 4,283,000 -0- 4,283,000 - 0 - i1-21-81 Fire Sta Imp 877,OOU -0- 250,000 627,000 11-21-81 Health Fac 1,U00,000 -0- 1,000,000 - 0 - AND, WHEREAS, the City Council has found and hereby declares that there is an urgent public necessity that it proceed with the issuance of such bonds for the purpose of conducting the program of improvements to which the bonds relate at the earliest possible date and this ordinance constitutes an emergency measure for the immediate preservation of the public peace, property, health and safety of the City and its inhabitants; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1: That the bonds of said City, to be known as "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1982," be and the same are hereby ordered to be issued under and by virtue of the Constitution and laws of the State of Texas, including Article 1175, R.C.S. of Texas, 1925, as amended, and pursuant to the Charter of said City, for the purpose of making permanent public improvements, to wit: $812,000 for constructing, improving and expanding the City's Airport Terminal facilities, and including terminal apron improvements; $1,090,000 for constructing improve- ments and extensions to the City's sanitary sewer system; $3,280,000 for constructing street improvements in and for said City, including lighting; $4,283,000 for improving, extending, and equipping the City's traffic signalization system; $250,000 for constructing, improving, and equipping fire station buildings in and for said City and the purchase of necessary sites therefor; $1,000,000 for constructing, improving or expanding health facilities, including the purchase of necessary sites therefor; $235,000 for constructing, enlarging, extending and installing storm sewers, drains and gutters, and other improvements incidental thereto, including acquisition of land for drainage purposes and drainage area modifications for mosquito control, aggregating altogether the principal sum of TEN MILLION NINE HUNDRED FIFTY THOUSAND DOLLARS ($10,950,000). SECTION 2: Said bonds shall be numbered consecutively from One (1) through Two Thousand One Hundred Ninety (2190). shall each be in the denomination of Five Thousand Dollars ($5,000), aggregating in principal amount TEN MILLION NINE HUNDRED FIFTY THOUSAND DOLLARS ($10,950,000); shall be dated June 1, 1982, and shall become due and payable serially on February 1 in each of.the years in accordance with the following schedule: BOND NUMBERS (All Inclusive) MATURITY AMOUNT 1 to 105 1983 $525,000 106 to 210 1984 525,000 211 to 320 1985 550,000 321 to 430 1986 550,000 431 to 540 1987 550,000 541 to 650 1988 550,000 651 to 760 1989 550,000 '761 to 870 1990 550,000 871 to 980 1991 550,000 981 to 1090 1992 550,000 1091 to 1200 1993 550,000 1201 to 1310 1994 550,000 1311 to 1420 1995 550,000 1421 to 1530 1996 550,000 1531 to 1640 1997 550,000 1641 to 1750 1998 550,000 1751 to 1860 1999 550,000 1861 to 1970 2000 550,000 1971 to 2080 2001 550,000 2081 to 2190 2002 550,000 PROVIDED, HOWEVER, that the City reserves the right to redeem the bonds of said series maturing on February 1, 1992, and subse- quent, in whole or any part thereof, on February 1, 1991, or on any interest payment date thereafter, at the price of par and accrued interest to the date fixed for redemption; PROVIDED, FURTHER, that at least thirty (30) days prior to any interest payment date upon which any of said bonds are to be redeemed, a notice of redemption, signed by the City Secretary (specifying the serial numbers and amount of bonds to be redeemed) shall have been filed with the CITIBANK, N.A., New York, New York, and the TEXAS COMMERCE BANK, NATIONAL ASSOCIATION, Lubbock, Texas (the paying agents named in each of said bonds); and if by the date so fixed for redemption the City shall have made available funds in amounts sufficient to pay the bonds to be redeemed and accrued interest thereon, any bond or bonds not presented for redemption pursuant to such notice shall cease to bear interest from and after the date so fixed for redemption. SECTION 3: The bonds herein authorized to be issued shall bear interest from date to maturity at per annum rates to be established at the time said bonds are sold (but in no event shall any bonds of this series bear interest at a rate in,excess of 15% per annum), such interest to be evidenced by proper coupons attached to each of said bonds and said interest shall be payable on February 1, 1983, and semiannually thereafter on August 1 and February 1 in each year. SECTION 4: Both principal of and interest on said bonds shall be payable in lawful money of the United States of America, without exchange or collection charges to the owner or holder, at the CITIBANK, N.A., New York, New York, or, at the option of the holder, at the TEXAS COMMERCE BANK, NATIONAL ASSOCIATION, Lubbock, Texas, upon presentation and surrender of bonds or proper coupons. SECTION 5: The seal of said City may be impressed on each of said bonds, or, in the alternative, a facsimile of such seal may be printed on each of said bonds. The bonds and interest coupons appurtenant thereto may be executed by the imprinted facsimile signatures of the Mayor and City Secretary of the City, and execution in such manner shall have the same effect as if such bonds and coupons had been signed by the Mayor and City Secretary in person by their manual signatures. Inasmuch as such bonds are required to be registered by the Comptroller of Public Accounts of the State of Texas, only his signature (or that of a deputy designated in writing to act for the Comptroller) shall be•required to be manually subscribed to such bonds in connection with his registration certificate to appear thereon, as hereinafter provided; all in accordance with the provisions of Article 717j-1, V.A.T.C.S. SECTION 6: The form of said bonds shall be substantially as follows: NO. UNITED STATES OF AMERICA $5,000 STATE OF TEXAS COUNTY OF LUBBOCK CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BOND, SERIES 1982 The CITY OF LUBBOCK, a municipal corporation of the State of Texas, acknowledges itself indebted to and, FOR VALUE RECEIVED, hereby promises to pay to bearer the sum of FIVE THOUSAND DOLLARS n r'1 ($5,000), in lawful money of the United States of America, on the 1st day of February, , with interest thereon from the date hereof to maturity at the rate of PER CENTUM ( %) per annum, payable on February 1, 1983, and semiannually thereafter on August 1 and February 1 in each year, and interest falling due on or prior to maturity hereof is payable only upon presentation and surrender of the interest coupons hereto attached as they severally become due. BOTH PRINCIPAL OF and interest on this bond are hereby made payable at the CITIBANK, N.A., New York, New York, or, at the option of the holder, at the TEXAS COMMERCE BANK, NATIONAL ASSOCIATION, Lubbock, Texas, without exchange or collection charges to the owner or holder, and for the prompt payment of this bond and the interest thereon at maturity, the full faith, credit and resources of the City of Lubbock, Texas, are hereby irrevocably pledged. THIS BOND is one of a series of Two Thousand One Hundred Ninety (2190) serial bonds, numbered consecutively from One (1) through Two Thousand One Hundred Ninety (2190), each in denomina- tion of Five Thousand Dollars ($5,000), aggregating TEN MILLION NINE HUNDRED FIFTY THOUSAND DOLLARS ($10,950,000), issued for the purpose of making permanent public improvements,•to wit: $812,000 for constructing, improving and expanding the City's airport terminal facilities, and including -terminal apron improvements; $1,090,000 for constructing improvements and extensions to the City's sanitary sewer system; $3,280,000 for construcing street improvements in and for said City, including lighting; $4,263,000 for improving, extending and equipping the City's traffic signalization system; $250,000 for constructing, improving and equipping fire station buildings in and for said City and the purchase of necessary sites therefor; $1,000,000 for constructing, improving or expanding health facilities, including the purchase of necessary sites therefor; $235,000 for constructing, enlarging, extending and installing storm sewers, drains and gutters, and other improvements incidental thereto, including acquisition of land for drainage purposes and drainage area modifications for mosquito control, under authority of the Constitution and laws of the State of Texas', including Article 1175, R.C.S. of Texas, 1925, as amended, and pursuant to the Charter of said City of Lubbock, elections duly called and held in said City on the 9th day of November, 1967, and the 21st day of November, 1981, and an ordinance duly adopted by the City Council of the City of Lubbock, Texas, and recorded in the Ordinance Records of said City. AS SPECIFIED in the ordinance hereinabove mentioned, the City reserves the right to redeem the bonds of this series . maturing on February 1, 1992, and subsequent, in whole or any part thereof, on February 1, 1991, or on any interest payment date thereafter, at the price of par and accrued interest to the date fixed for redemption; PROVIDED, HOWEVER, that at least thirty (30) days prior to any interest payment date upon which any of said bonds are to be redeemed, a notice of redemption, signed by the City Secretary (specifying the serial numbers and amount of bonds to be redeemed) shall have been filed with the CITIBANK, N.A., New York, New York, and the TEXAS COMMERCE BANK, NATIONAL ASSOCIATION, Lubbock, Texas; and if by the date so fixed for redemption the City shall have made available funds in amounts sufficient to pay the bonds to be redeemed and accrued interest thereon, any bond or bonds not presented for redemption pursuant to such notice shall cease to bear interest from and after the date so fixed for redemption. THE DATE of this bond, in conformity with the ordinance above mentioned, is June 1, 1982— e"111 (1-11 IT IS HEREBY CERTIFIED, RECITED AND REPRESENTED that all acts, conditions and things required by the Constitution and laws of the State of Texas, and the Charter of said City, to be done precedent to and in the issuance of this bond and said series of bonds, have been done, happened and been performed in regular and due time, form and manner as required by law; that proper provisions have been made for the•levy and collection annually of taxes upon all taxable property in said City of Lubbock, Texas, sufficient to pay the interest on this series of bonds as due and to provide for the payment of each installment of principal as same matures; that when so collected, such taxes shall be appropriated exclusively to such purposes; and that the total indebtedness of the City of Lubbock, Texas, including this bond and the series of which it is one, does not exceed any statutory or Constitutional limitation. IN TESTIMONY WHEREOF, the City Council of the City of Lubbock, Texas, in accordance with the provisions of Article 717j-1, V.A.T.C.S. has caused the seal of said City to be impressed or a facsimile thereto to be printed hereon, and this bond and its appurtenant coupons to be executed with the imprinted facsimile signatures of the Mayor and City Secretary of said City; the date of this bond, in conformity with the ordinance above referred to,'being the first day of June, 1982. Mayor, City of Lubbock, Texas COUNTERSIGNED: City Secretary, City of Lubbock,Texas SECTION 7: The form of the interest coupons attached to each of said bonds shall be substantially as follows: *(unless the bond to which this coupon pertains has been properly called for redemption in On the 1st day of accordance with its terms,) the CITY OF , LUBBOCK, a municipal corporation of the State of Texas, hereby promises to pay to bearer the amount shown hereon in NO. $ lawful money of the United States of America, without exchange or collection SERIES 1982 charges to the owner or holder hereof; upon presentation and surrender of this BOND NO. coupon, at the CITIBANK, N.A.,New York, New York,'or, at the option of the holder, at the TEXAS COMMERCE BANK, NATIONAL ASSOCIATION, Lubbock, Texas, said sum being months' interest due that day on "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BOND, SERIES 1982" dated June 1, 1982. City Secretary Mayor SECTION 8: The following certificate shall be printed on the back or each bond: OFFICE OF COMPTROLLER REGISTER NO. STATE OF TEXAS I HEREBY CERTIFY that there is on file and of record in my office a certificate of the Attorney General of the State of Texas to the effect that'this bond has been examined by him as *NOTE TU PRINTER: The expression in parentheses to be included only in coupons maturing August 1, 1991, and subsequent, pertaining to optional bonds maturing in the years 1992 through 2002. f� required by law, that he with the Constitution and it is a valid and binding Texas, and said bond has finds it has been issued in conformity laws of the State of Texas, and that obligation upon said City of Lubbock, this day been registered by me. WITNESS MY HAND AND SEAL OF OFFICE as of Comptroller of Public Accounts of the State of Texas SECTION a: To provide for the payment of the debt service requirements on said bonds, being (i) the interest on said bonds and (ii) a sinking fund for their redemption at maturity or a sinking fund of 2% (whichever amount shall be greater), there shall be and there is hereby levied for the current year and each succeeding year thereafter while said bonds or interest thereon shall remain outstanding and unpaid, a sufficient tax on each one hundred dollars' valuation of taxable property in said City adequate to pay such debt service requirements, full allowance being made for delinquencies and costs of collection; said tax shall be assessed and collected each year and applied to the payment of said debt service requirements, and the same shall not be diverted to any other purpose. The taxes so levied shall be paid into a fund known as "SPECIAL GENERAL OBLIGATION BOND FUND, SERIES 1982" which is hereby established for the payment of the obligations herein authorized. The City Council hereby declares its purpose and intent to provide and levy a tax legally and fully sufficient for such bonds, it having been determined that the existing and available taxing authority of the City for such purpose is adequate to permit a legally sufficient tax inconsideration of all other outstanding obligations. SECTION 10: The Mayor of said City shall be and he is hereby authorized to take and have charge of all necessary orders and records pending investigation by the Attorney General of the State,of Texas, and shall take and have charge and control of the bonds herein authorized pending their approval by the Attorney General and their registration by the Comptroller of Public Accounts. SECTION 11: The purchasers' obligation to accept delivery of the bonds herein authorized is subject to their being furnished a final opinion of Messrs. Dumas, Huguenin, Boothman and Morrow, Attorneys, Dallas, Texas, approving such bonds as to their validity, said opinion to be dated and delivered as of the date of delivery and payment for such bonds. Printing of a true and correct copy of said opinion on the reverse side of each of such bonds, with appropriate certificate pertaining thereto executed by facsimile signature of the City Secretary of the City of Lubbock, Texas, is hereby approved and authorized. SECTION 12: The City certifies that based on facts, estimates and circumstances expected to exist on the date of the issue of the Series 1982 Bonds it is not reasonable to anticipate that the proceeds thereof will be used in a manner which would cause them to be "arbitrage bonds" within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, or regulations thereunder applicable thereto, and the officers of the City charged with responsibilities in the issuance of bonds are authorized and directed to make, execute and deliver certifications as to facts, estimates and circumstances in existence as of the date of the issue of said bonds and stating whether there are any facts, estimates or circumstances which would materially change the City's present expectations. The covenants herein made and the certifications herein authorized are for the benefit of the holders from time to time of said Series 1982 Bonds and the coupons appertaining thereto and may be relied upon by said holders and by bond counsel for the City. SECTION 13: CUSIP Numbers may be printed on the bonds herein authorized. It is expressly provided, however, that the presence or absence of CUSIP Numbers on the bonds shall be of no significance or effect as regards the legally thereof and neither the City nor attorneys approving said bonds as to legality are to be held responsible for CUSIP numbers incorrectly printed on the bonds. SECTION 14: The public importance of this measure and the fact that -it is to best interest of the City of Lubbock to provide funds for the purpose of conducting the program of improvements to which the bonds herein authorized relate at the earliest possible date for the immediate preservation of the public peace, property, health and safety of the citizens of said City constitute and create an emergency and an.urgent public necessity requiring that this ordinance be passed as an emergency measure and this ordinance is accordingly passed as an emergency measure and shall take effect and be in force immediately from and after its passage, and it is so ordained. PASSED AND APPROVED, this the day of , 1982. Mayor, City of Lubbock, Texas ATTEST: City Secretary, City of Lubbock, Texas (City Seall APPROVED as to form: City Attorney, City of Lubbock,Texas e 1, 6 r^ n MINUTES PERTAINING TO PASSAGE OF AN ORDINANCE AUTHORIZING THE ISSUANCE OF $10,950,000 "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1982" DATED JUNE 1, 1982 THE STATE OF TEXAS § § COUNTY OF LUBBOCK § § CITY OF LUBBOCK § ON THIS, the day of , 1982, the City Council of the City -oY Lubbock, Texas, convened in session at the regular meeting place thereof in the City Hall, the meeting being open to the public and notice of said meeting having been given as prescribed by Article 6252-17, Section 3A, V.A.T.C.S., with all members of said Council being present and in attendance, to wit: BILL MC ALISTER MAYOR ALAN HENRY COUNCILMAN M.J. ADERTON COUNCILMAN E. JACK BROWN COUNCILMAN JOAN BAKER COUNCILWOMAN and LARRY J. CUNNINGHAM CITY MANAGER and EVELYN GAFFGA CITY SECRETARY also being present; and, among other business considered at said meeting, an ordinance was submitted for reading and passage, such ordinance being entitled as follows: "AN ORDINANCE by the City Council of the City of Lubbock, Texas, authorizing the issuance of $10,950,000 'CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1982" dated June 1, 1982, for the purpose of making permanent public improvements, to wit: $812,000 for constructing, improving and expanding the City's Airport Terminal facilities, and including terminal apron improvements; $1,090,000 for constructing improvements and extensions to the City's sanitary sewer system; $3,280,000 for constructing street improvements in and for said City, including lighting; $4,283,000 for improving, extending and equipping the City's traffic signalization system; $250,000 for constructing, improving, and equipping fire station buildings in and for said City and the purchase of necessary sites therefor; $1,000,000 for constructing, improving or expanding health facilities, including the purchase of necessary sites therefor; $235,000 for constructing, enlarging, extending and installing storm sewers, drains and gutters, and other improvements incidental thereto, including acquisition of land for drainage purposes and drainage area modifications for mosquito control; prescribing the form of the bonds and the form of the interest coupons; levying a•continuing direct annual ad valorem tax on all taxable property within the limits of said City to pay the interest on said bonds and to create a sinking fund for the redemption thereof and providing for the assessment and collection of such taxes; enacting provisions incident and relating to the subject and purpose of this ordinance; an6 declaring an emercency and providing an,. �__`=ec-_.•e ?eye. � 7 U?pn full consideration of the ordinance, -: moved that it be declared an emergency measure within the meaning of Sections 16, 17 and 18 of Chapter One, Article IX, of the City's Charter. The motion was seconded by and carried by the following vote: YEAS: Mayor McAlister, Councilmen Henry, Aderton, and Brown, and Councilwoman Baker. NAYS: None. then moved that the ordinance (NO. } be passed as an emergency measure to take effect immediately from and after its passage. The motion was seconded by and carried by the following vote: YEAS: Mayor McAlister, Councilmen Henry, Aderton and Brown, and Councilwoman Baker. NAYS: None The Mayor then announced the final passage and immediate effect of the ordinance as an emergency measure. APPROVED, this the day of , 1982. Mayor, City of Lubbock, Texas ATTEST: City Secretary, City of Lubbock, Texas (City Seal) (0*1� CERTIFICATE OF CITY SECRETARY THE STATE OF TEXAS § COUNTY OF LUBBOCK § § CITY OF LUBBOCK § I, the undersigned, City Secretary of the City of Lubbock, Texas, DO HEREBY CERTIFY that the above and foregoing is a true and correct copy of Ordinance No. providing for the issuance of $10,950,000 "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1982" (and minutes pertaining to its adoption) finally passed and adopted by the City Council of said City on the day of , 1982, which ordinance is duly recorded in the Minutes of said City Council. I FURTHER CERTIFY that the said ordinance was finally passed at a meeting open to the public and notice of such meeting was given in advance thereof in such manner as to'be in compliance with the provisions of Article 6252-17, Section 3A, V.A.T.C.S. IN WITNESS WHEREOF, I have hereunto signed my name officially, and affixed the seal of said City, this the day of , 1982. (City Seal) City Secretary, City of Lubbock,Texas Fxrt�e�r- � 3 NOTICE OF SALE CITY OF LUBBOCK, TEXAS The City Council of the City of Lubbock, Texas, will receive sealed bids at the City Hall, Lubbock, Texas until M., Central Time, 1982, for the following described bonds; $10,950,000 City of Lubbock, Texas, General Obligation Bonds, Series 1982 Dated June 1, 1982; maturing $525,000 each year February 1, 1983 and 1984, and $550,000 each year February 1, 1985 through 2002. Denomination $5,000. Optional at par and accrued interest on February 1, 1992, or any interest payment date thereafter. Further information may be obtained from the Division of Finance, City of Lubbock, Texas, P. 0. Box 2000, Lubbock, Texas 79457; or from First Southwest Company, 800 Hercantile Dallas Building, Dallas, Texas 75201, Financial Consultants to the City. City Secretary -Treasurer City of Lubbock, Texas (City Seal) r E�F}�BtT R'-7 NOTICE OF SALE n AND BIDDING INSTRUCTIONS ON $10,950,000 CITY OF LUBBOCK, TEXAS (Lubbock County) GENERAL OBLIGATION BONDS, SERIES 1982 Selling 19_, at _ THE SALE Bonds Offered for Sale at Com etit1:2 Biddin ... The City of Lubbock, Texas (the "City"), is offering for sale its ,950, Genera bligation Bonds, Series 1982 (the "Bonds"). Address of Bids . Sealed bids, plainly marked "Bid for Bonds", should be addressed and e ivered to "Mrs. Evelyn E. Gaffga, City Secretary, City of Lubbock, Texas", prior to , on the date of the bid opening. All bids must be submitted on the Official Bi orm, withou 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 _ Award of the Bonds ... The City Council will take action to award the Bonds (or reject all bids) promptly a ter the opening of bids, and adopt an Ordinance authorizing the Bonds (the "Ordi- nance") and approving the Official Statement. THE BONDS Description The Bonds will be dated June 1, 1982, and interest coupons will be due on e ruary , 1983, 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: Principal Principal Principal Year Amount Year Amount Year Amount I§§3 $525,000 19-99 ' M5_,U66 9 6 ,000 1984 525,000 1991 550,000 1997 550,000 1985 550,000 1992 550,000 1998 550,000 1986 550,000 1993 550,000 1999 550,000 1987 550,000 1994 550,000 2000 550,000 1988 550,000 1995 550,000 2001 550,000 1989 550,000 2002 550,000 The City reserves the right, at its option, to redeem Bonds maturing February 1, 1993, through February 1, 2002, both inclusive, in whole or any part thereof, on February 1..1992, 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 T es of Bids and Interest Rates . The Bonds will be sold in one block on an "All or None" as s, an at a price of not ess 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 15%. 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 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 UR wi a 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 irreg9ularities 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 Deposit ... A Good Faith Deposit, payable to the "City of Lubbock, Texas", in the amount of $219.000.00, is required. Such Good Faith Deposit shall be in the form of a Cashier's Check, or its equivalent, which is to be retained uncashed by the City pending the Purchaser's compliance with the terms of his bid and the Notice of Sale and Bidding Instructions. The Good Faith Deposit may accompany the Official Bid Form or it may be submitted separately. If submitted separately, it shall be made available to the City prior to the opening of the bids, and shall be accompanied by instructions from the bank on which drawn which authorize its use as a Good Faith Deposit by the Purchaser who shall be named in such instructions. The Good Faith Deposit of the Purchaser will be applied on the purchase price on the date of delivery of the Bonds. No interest will be allowed on the Good Faith Deposit. In the event the Purchaser should fail or refuse to take up and pay for the Bonds in accordance with his bid, then said check shall be cashed and accepted by the City as full and complete liquidated damages. The checks accompanying bids other than the winning bid will be returned immediately after the bids are opened, and an award of the Bonds has been made. DELIVERY OF THE BONDS AND ACCOMPANYING DOCUMENTS Printed Bonds ... The City will furnish printed Bonds which will be executed by the facsimile signatures of the Mayor and Secretary of the City, and by the manual signature of the Comptroll- er of Public Accounts of the State of Texas. The Bonds will be in coupon form without privilege of registration as to principal or interest. CUSIP Numbers . It is anticipated that CUSIP identification numbers will be printed on the Bonds, but neither the failure to print such number on any Bond nor any error with respect thereto shall constitute cause for a failure or refusal by the Purchaser to accept delivery of and pay for the Bonds in accordance with the terms of this Notice of Sale and the terms of the Official Bid Form. All expenses in relation to the printing of CUSIP numbers on the Bonds shall be paid by the City; provided, however, that the CUSIP Service Bureau charge for the assignment of the numbers shall be the responsibility of and shall be paid for by the Purchaser. 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 six business days' notice of the time fixed for delivery of the Bonds. It is anticipated that delivery can be made on or about , 19 , and it is understood and agreed that the Purchaser will accept delivery and ma— a payment for the Bonds by 10:00 AM, C T, on , 19 or thereafter on the date the Bonds are tendered for delivery, up to and inc u il—d ng , 19 If for any reason the City is unable to make delivery on or before Y9 , tFen tFe- City shall immediately contact the Purchaser and offer to allow the urc aser to extend his offer for an additional thirty days. If the Purchaser does not elect to extend his offer within six 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 sou Oect to t e 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. Le al 0 inions . The Bonds are offered when, as and if issued, subject to the unqualified ego op pion of the Attorney General of the State of Texas, and Messrs. Dumas, Huguenin, Boothman & Morrow (see Legal Opinions in Official Statement); the opinion of said firm will be printed on the Bonds. Certification of Official Statement ... At the time of payment for and delivery of the Bonds, the City will execute and de fiver 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 urchaser may withdraw h� 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 Financial Advisor's R1 ht to Bid . First Southwest Company, the City's Financial Advisor, reserves the right to bi on the Bonds. Blue_Sky Laws ... By submission of his bid, the Purchaser represents that the sale of the Bonds n 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 on s, ut 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). Ratin s . The outstanding General Obligation Bonds of the City are rated "Aa" by Moody's nvestors 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, 100 copies of the official Statement (and 100 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 100 copies, and may also arrange, at his total expense and responsibil- ity, for completion and perfection of the first or cover page of the Official Statement so as to reflect interest rates and other terms and information related to the reoffering of the Bonds. The City assumes no responsibility or obligation for the distribution or delivery of any of these copies to any one other than the Purchaser. Additional Co ies of Notice, Bid Form and Statement ... A limited number of additional copies o t �s Notice o 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, 800 Mercantile Dallas Building, Dallas, Texas 75201, Financial Advisor to the City. The City reserves the right to reject any and all bids and to waive irregularities, except time of filing. The City Council, by resolution adopted this day of 19 approved the form and content of the Notice of Sale and Bidding Instructions, t— i O ficiaT Bid Form and Official Statement, and has authorized the use thereof in its initial offering of the Bonds. On the date of the sale, the City Council will, in the ordinance authorizing the Bonds, reconfirm its approval of the form and content of the Official Statement, and any addenda, supplement or amendment thereto, and authorize its further use in the reoffering of the Bonds by the Purchaser. BILL MCALISTER Mayor ATTEST: EYELYN E. GAFFGA City Secretary , 19 i BOND YEARS Accumulated Year Amount Bond Years Bond Years Year 1983 i 525,000 350.000 350.000 1983 1984 525,000 875.000 1,225.000 1984 1985 550,000 1,466.666 2,691.666 1985 1986 550,000 2,016.666 4,708.332 1986 1987 550,000 2,566.666 7,274.998 1987 1988 550,000 3,116.666 10,391.664 1988 1989 550,000 3,666.666 14,058.330 1989 1990 550,000 4,216.666 18,274.996 1990 1991 550,000 4,766.666 23,041.662 1991 1992 550,000 5,316.666 28,358.328 1992 1993 550,000 5,866.666 34,224.994 1993 1994 550,000 6,416.666 40.641.660 1994 1995 550.000 6,966.666 47,608.326 1995 1996 550,000 7,516.666 55,124.992 1996 1997 550,000 8,066.666 63,191.658 1997 1998 550,000 8,616.666 71,808.324 1998 1999 550,000 9,166.666 80,974.990 1999 2000 550.000 9.716.666 90,691.656 2000 2001 550,000 10,266.666 100,958.322 2001 2002 550.000 10.816.666 111,774.988 2002 Average Maturity -------------------------------- 10.208 Years - iv - OFFICIAL BID FORM Honorable Mayor and City Council City of Lubbock Lubbock, Texas Members of the Council: 19 Reference is made to your Official Statement and Notice of Sale and Bidding Instructions, dated 19 , of $10,950,000 CITY OF LUBBOCK, TEXAS GENERAL OBLIGATION BONDS, SERIES 1982, 0 o w ich 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 2-1-1983 % 2-1-1990 % 2-1-1996 % 2-1-1984 % 2-1-1991 X 2-1-1997 % 2-1-1985 % 2-1-1992 % 2-1-1998 % 2-1-1986 % 2-1-1993 % 2-1-1999 % 2-1-1987 % 2-1-1994 % 2-1-2000 % 2-1-1988 % 2-1-1995 % 2-1-2001 X 2-1-1989 % 2-1-2002 % Our calculation (which is not a part of this bid) of the interest cost from the above is: Total Interest Cost $ Less Premium NET INTEREST COST S EFFECTIVE INTEREST RATE % Check of the Bank, n the amount of ,000.00, which represents our Good Faith leposit (is attache 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, not later than , C T, on , 19 , or thereafter on the date the Bonds are tendered for delivery, pursuant to fFe terms set Wirth in the Notice of Sale and Bidding Instructions. Respectfully submitted, By Authorized Representative ACCEPTANCE CLAUSE The above and foregoing bid is hereby in all things accepted by the City of Lubbock, Texas, this the _ day of , 19_. Mayor ATTEST: City Secretary Return of Good Faith Deposit is hereby acknowledged: 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 , 19 INTEREST EXEMPT, IN THE OPINION OF BOND COUNSEL, FROM PRESENT FEDERAL INCOME TAXES UNDER EXISTING STATUTES, REGULATIONS AND COURT DECISIONS $10,950,000 CITY OF LUBBOCK, TEXAS (Lubbock County) GENERAL OBLIGATION BONDS, SERIES 1982 Dated: June 1, 1982 Denomination: $5,000 Principal and semi-annual interest (February 1 and August 1) payable at Citibank, N. A., New York, New York, or, at the option of the holder, at Texas Commerce Bank, National Association, Lubbock, Texas. First interest coupon due February 1, 1983. Coupon bearer bonds, not registrable. These bonds (the "Bonds") were authorized at elections held on various dates, and constitute direct and voted general obligations of the City of Lubbock, payable from an ad valorem tax levied, within the limits prescribed by law, on taxable property located within the City. MATURITY SCHEDULE Am5523=, Mate Rate Yield Am56u661f Mat . Rate Yield 525,000 2-1-1984 550,000 2-1-1994* 550,000 2-1-1985 550,000 2-1-1995* 550,000 2-1-1986 550,000 2-1-1996* 550,000 2-1-1987 550,000 2-1-1997* 550,000 2-1-1988 550,000 2-1-1998* 550,000 2-1-1989 550,000 2-1-1999* 550,000 2-1-1990 550,000 2-1-2000* 550,000 2-1-1991 550,000 2-1-2001* 550,000 2-1-1992 550.000 2-1-2002* * The City reserves the right, at its option, to redeem Bonds maturing February 1, 1993, through February 1, 2002, both inclusive, in whole or any part thereof, on February 1, 1992, 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. Le alit : Attorne General of the State of Texas, and Messrs. umas, Hu uen�n, Boot man orrow, Attorneys, Da as Texas. inion Printe on the Bonds; See Legal inions. Delivery: Anticipated on or about 19 . TABLE OF CONTENTS Page Official Statement: Description of the Bonds ------------------------------------------------------- 1 ElectedOfficials-------------------------------------------------------------- 3 Appointed Officials------------------------------------------------------------ 3 Consultantsand Advisors------------------------------------------------------- 3 Introductory Statement--------------------------------------------------------- 4/5 Valuation and Debt Information ------------------------------------------------- 5/6 AdValorem Taxation------------------------------------------------------------ 6/7 OtherLiabilities-------------------------------------------------------------- 8 FundedDebt Limitation--------------------------------------------------------- 8 Valuation and Funded Debt History ---------------------------------------------- 9 Taxable Assessed Valuations by Category ---------------------------------------- 9 Estimated Taxable Assessed Valuations ------------------------------------------ 10 Authorized General Obligation Bonds -------------------------------------------- 10 Estimated General Obligation Bond Program -------------------------------------- 10 Authorized But Unissued General Obligation Bonds of Overlapping Subdivisions --- 10 Estimated Overlapping Funded Debt Payable From Ad Valorem Taxes ---------------- 11 TaxData----------------------------------------------------------------------- 11 TaxRate Limitations----------------=------------------------------------------ 12 1% Municipal Sales Tax --------------------------------------------------------- 12 Estimated 1981-82 Tax Year Overlapping Taxes ----------------------------------- 12 Top Ten Taxpayers-------------------------------------------------------------- 13 Interest and Sinking Fund Management Index ------------------------------------- 13 Computation of Self -Supporting Debt -------------------------------------------- 13 Debt Service Requirements - General Obligation Bonds --------------------------- 14 TaxAdequacy------------------------------------------------------------------- 14 PensionFunds------------------------------------------------------------------ 15 Lubbock Power and Light -------------------------------------------------------- 16/17 Condensed Statement of Operations - Electric Light and Power System ------------ 17 The Waterworks System---------------------------------------------------------- 18/19 Condensed Statement of Operations - Waterworks System -------------------------- 19 Increase in Water Rates -------------------------------------------------------- 19 TheSewer System--------------------------------------------------------------- 19 Condensed Statement of Operations - Sewer System ------------------------------- 20 Airport System----------------------------------------------------------------- 20/21 Condensed Statement of Operations --Airport System ----------------------------- 21 General Information Regarding the City and Its Economy ------------------------- 21/27 Ratings------------------------------------------------------------------------ 28 TaxExemption------------------------------------------------------------------ 28 Registration and Qualification of Bonds for Sale ------------------------------- 28 Legal Investments in Texas ----------------------------------------------------- 28 Legal Opinions and No -Litigation Certificate ----------------------------------- 28 Authenticity of Financial Information ------------------------------------------ 29 Financial Advisor-------------------------------------------------------------- 29 Certification of the Official Statement ---------------------------------------- 29 Audited Financial Statements, September 30, 19BO, examined by Mason, Nickels & Warner, Certified Public Accountants ------------------------ Appendix The cover page hereof, this page, the appendix included herein and any addenda, supplement or amendment hereto, are part of the Official Statement. - 2 - ELECTED OFFICIALS Term Cit Council Len th of Service �Ex iI Occu ation McAlister ecte Mayor Apri ; pA ril 1982 rest en an o- wner, - served 4 years previously as City Councilman Alan Henry 7 Years April 1982 Partner, The Insurance Group Mayor Pro-Tem Agency Joan Baker 1 Year April 1984 Homemaker Councilwoman M. J. Aderton 3 Years April 1982 Retired Chairman of the Board, Councilman Snook & Aderton, Inc. E. Jack Brown 1 Year 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 City Manager Appointed 9- -76 J. Robert Massengale Director of Finance Appointed 2-25-80 2 Years John C. Ross, Jr. City Attorney Appointed 8- 3-78 3 Years Evelyn E. Gaffga Secretary -Treasurer Appointed 7- 3-78 3 Years Samuel W. Wahl Director of Water Utilities for 12 Years 29 Years Carroll McDonald Director of Electric Utilities Appointed 1- 8-79 3 Years James E. Bertram Director of Planning for 10 Years 13 Years Jimmy W. Weston Director of Community Facilities for 5 Years 15 Years Marvin W. Coffee Director of Aviation for 10 Years 11 Years Denzel W. Percifull Director of Public Services for 4 Years 5 Years Rita P. Harmon Director of Personnel Appointed 5-16-81 6 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 Advisor -------------------------------------------------- First Southwest Company Dallas, Texas - 3 - INTRODUCTORY STATEMENT This Official Statement of the City of Lubbock, Texas, a political subdivision located in Lubbock County (the "City"), is provided to furnish information in connection with the sale of the City's $10,950,000 General Obligation Bonds, Series 1982 (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 la��++nnent.. The Bonds are direct and voted general obligations payable from an annual a vvi rem a�vied on all taxable property located in the City within the limits prescribed by law. See "Tax Rate Limitations". Purpose ... Proceeds from the sale of the Bonds will be used for Waterworks System and street and drainage improvements. See "Authorized General Obligation Bonds". Future Bond Issues . The City plans to market substantially all of its remaining authorized but unissue 07,000 General Obligation Bonds over the period 1983 through 1984. See 'Estimated General Obligation Bond Program". Administration of the City ... The City operates under a Home Rule Charter which was approved y tee ectorate eb ceem er 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 Concernin the Bonds . The City of Lubbock has filed an action under Vernon's Annotated CivilStatutes, Article 717m-1 (an in rem proceeding) in the District Court of Lubbock County, Texas, asking for a Declaratory Judgement validating and confirming the Bonds, and the proceedings taken or proposed to be taken in connection with their author- ization, issuance and delivery. Petitions Affectin the Tax Rate, Assessed Valuation and Tax Lev ... On July 12, 1979, three petitTons calling for an election to amend the City's Home Rue Charter in relation to ad valorem taxes were filed with the City Council. These petitions, separately, ask for the following amendments: (1) limitation of the City's maximum tax rate to $1.12 per $100 Assessed Valuation; (2) limitation of the ratio at which property can be assessed for ad valorem taxes to 60% of fair market value; and (3) provide that, "The annual ad valorem taxes levied by the governing authority of the City government shall not be increased on the basis of an increase in the rate of evaluation of taxable property now on the assessed valuation of property subject to tax, from the preceding tax year, without first securing approval of said increase at an election submitting said proposed increase to the voters of the City of Lubbock. Said in- crease, if any, requiring a majority vote for its approval."* * Text of the 3rd petition quoted verbatim. On July 26, 1979, the City Attorney reported to the City Council that, in his opinion, the provisions of the petitions, if incorporated into the City Charter, would contravene provisions of the Texas Constitution (the Tax Relief Amendment) and general laws recently enacted by the Texas Legislature and recommended that no charter amendment election be called at this time. The City Council authorized the City Attorney to file a declaratory judgment action in the District Court of Lubbock County to determine whether the Council, under such circumstances, would be required to call such an election and to determine the rights of the petitioners, other citizens and the City Council in the premises. Such lawsuit was filed July 26, 1979, in the 140th Judicial District Court of Lubbock County, and upon rendition of a final judgment, the Council will proceed in the manner directed by the Court. On June 10, 1980, the Court entertained motions for summary judgment filed by both parties. On June 27, 1980, the Court, by summary judgment, ruled in favor of the City in all respects, finding that the City was under no legal duty to call an election for the submission of the 3 proposed charter amendments and that all 3 proposed charter amendments have been withdrawn from the field in which the initiatory process is operative by the Constitution and the general law of this State and the property tax code (SB 621). The defendants appealed to the Court of Civil Appeals for the Seventh Supreme Judicial District of Texas (Amarillo, Texas), which reversed and remanded the District Court - 4 - fn n judgement. The City has filed a motion for rehearing, and, if this 1s unsuccessful, applica- tion for writ of error will be made to the Supreme court of Texas. No representation can be made at this time as to the ultimate result of the case on appeal or when any Judgment will become final. Other Considerations . Nevertheless, in the opinion of the City Attorney and Bond Counsel, any charter amen ment 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. VALUATION AND DEBT INFORMATION 1981 Market (Appraised) Valuation Less: Local Exemptions at Market (Appraised) Value (1) Over 65 Disabled Veterans Disabled 1981 Taxable Assessed Valuation (100% of 1981 Net Appraised Valuation) (2) City Funded Debt Payable From Ad Valorem Taxes (As of 11-30-81) (See Notes 3, 4 and 5): General Purpose Bonds Waterworks Bonds Sewer System Bonds The Series 1932 Bonds Total Funded Debt Payable from Ad Valorem Taxes Less Self-supporting Debt: Waterworks Bonds Sewer System Bonds (including $1,090,000 of this issue) $2,807,601,557 $99,248,070 2,072,270 4,720,090 106,040,430 $29,563,197 4$33.3 $2,701,561,127 S 28,879,788 29,563,197 3;267,015 10.950.000 $ 72,660,000 Total General Purpose General Obligation Debt $ 38,739,788 Interest and Sinking Fund, All General Obligation Bonds, As of 11-30-81 S 1,466,061 Ratio Total Funded Debt to Taxable Assessed Valuation -------------------------------- 2.69% Ratio Total General Purpose General Obligation Debt to Taxable Assessed Valuation ---- 1.44% 1982 Estimated Population - 178,282* Per Capita 1981 Taxable Assessed Valuation - $15,153.30 Per Capita Total General Purpose General Obligation Debt - $217.30 Area - 91.1 Square Miles * Source - City of Lubbock, Texas. Note 1: These exemptions apply to either real or personal property assessments to a maximum of: (1) $16,700 market value of a residence homestead for those 65 years of age or older; (2) $3,000 Assessed Valuation for disabled veterans; and (3) $10,000 market value of a residence homestead for the disabled. These exemptions may be declared when taxes are paid, and the City's Tax Assessor -Collector estimates that some additional exemptions will be recorded. - 5 - Note 2: Assessed values of the capital shares of 10 banks, which are under litigation, are not included in the 1981 Taxable Assessed Valuation. Note 3: The City of Lubbock transfers to the General Fund each fiscal year: (1) from Water Revenue Fund surplus, an amount at least equivalent to debt service requirements on Waterworks System General Obligation Bonds, and (2) from Sewer Revenue Fund surplus, an amount at least equivalent to debt service requirements on Sewer System General Obligation Bonds. Since both Waterworks and Sewer General Obligation Bonds are self-supporting, due to these transfers, the City's General Purpose General Obligation Debt has been calculated as shown. Note 4: As of 11-30-81 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: $140,000 Waterworks System Revenue Bonds and $23,225,000 Electric Light and Power System Revenue Bonds. The statement also does not include the following: S2,475,000 Airport Revenue Bonds, presently outstanding, as these bonds are payable solely from the gross revenues derived from the City of Lubbock Airport. Note 5: The City's last General Obligation Bond sale was April 23, 1981, when $16,750,000 General Obligation Bonds, Series 1981, were offered and sold. AD VALOREM TAXATION The Bonds are payable from ad valorem taxes levied upon all taxable property within the City. The "Property Tax Code" (V.T.C.A., Tax Code), adopted in 1979, is a codification of Texas law as to ad valorem taxation and reference is hereby made thereto for identification of property subject to taxation; property exempt from taxation and other exemptions granted and allowed, if claimed; the appraisal of property for purposes of taxation and the procedures to be followed and limitations applicable to the levy and collection of ad valorem taxes. Among other features, the Property Tax Code provides for: 1. A single Appraisal District in each County of the State to appraise property for purposes of taxation for all taxing units located wholly or partly within the County beginning January 1, 1982. 2. All property to be assessed at 100% of its appraised value and prohibits the assess- ment of property for taxation on the basis of a percentage of its appraised value. 3. An increase in the effective tax rate of a taxing unit to be limited to not more than 5% except by a referendum vote. In calculating the effective tax rate, taxes for bonds or other contractual obligations are excluded. Recent amendments (Chapter 13, Acts of the 67th Legislature, First Called Session, 1981) to the Property Tax Code (designed to clarify and remedy technical flaws experienced in implementing various provisions thereof) provide for: 1. Postponement of full implementation of an Appraisal District's operations, on a local option basis, until 1983 or 1934. 2. Mandatory county participation in the Appraisal District. 3. Changes the provisions relating to an effective annual tax increase being subject to a referendum election by: a. Raising the amount of the annual tax increase necessary to trigger a referendum election to 8%; b. Reducing the number of qualified voters necessary to petition for a referendum election to 10%; c. Extending the period available to collect signatures on a petition for a refer- endum election to 90 days; d. Eliminating the requirement that a minimum of 25% of the qualified voters must vote in a referendum election to be valid. - 6 - 4. The State Property Tax Board to conduct an annual ratio study in each Appraisal District to determine the degree of uniformity of appraisals and the weighted average level of appraisals within each major kind of property (effective 1-1-84). 5. An increase in penalties for delinquent taxes. The new penalties are: a. 6% - First month 1% - Additional penalty each month through June 12% - All delinquencies on July 1 regardless of delinquency period; b. A taxing unit may add an additional penalty to a maximum of 15% of taxes, penalty and interest due in order to defray costs of tax attorneys. 6. An increase in interest charged on delinquent taxes. The new interest charges are: a. 1% - First month; and b. An additional 1% increase each month thereafter. 7. Property within the Appraisal District to be reappraised at least once every 4 years (effective 1-1-84). B. The establishment and application of uniform discovery and appraisal procedures on all types of business inventories without regard to the nature of the property comprising the inventory. 9. An increase for the first time in the appraised value of property above its 1981 assessed value in any year from 1982 through 1985, which may be, at the option of the local taxing unit, limited to 1 112 times the percentage of increase in the value of all other property on the unit's tax rolls. 10. Changes in the composition and selection of board members, the allocation of Appraisal District costs, the size of the Appraisal Review Board and the financial account- ability of Appraisal District. 11. Local taxing units to challenge the Appraisal Review Board's appraisals and judicial review of challenges, and authorizes local taxing units of an Appraisal District to overturn and veto actions of the Board of Directors of the Appraisal District. 12. Changes in the procedures and requirements pertaining to tax increases by local taxing units. The Property Tax Code as Applied to the City of Lubbock 1. Beginning January 1, 1982, the Lubbock County Appraisal District has assumed respons- ibility for appraising property in the City of Lubbock, as well as the other taxing units in the Appraisal District. The Lubbock County Appraisal District is governed by a board of five directors appointed by voters of the governing bodies of Lubbock County, the City of Lubbock, Lubbock Independent School District and the other cities, towns and school districts in the District with votes weighted by relative tax levy. 2. The Lubbock County Appraisal District has contracted with the City of Lubbock to collect city ad valorem taxes, beginning in 1982. 3. The City of Lubbock does not tax personal automobiles. 4. Since a program of on -going reappraisal of real property has been maintained by the City of Lubbock for many years, the City of Lubbock is of the opinion that major reappraisals of all property in the City will not be necessary. 5. The City Council of the City of Lubbock has not acted to grant the exemption of up to 40% of market value of a residence homestead from ad valorem taxation beginning in 1982 as per- mitted under a Constitutional Amendment authorized in November, 1981. - 7 - OTHER LIABILITIES On September 1, 1976, the City purchased the land and buildings, owned by Auto Realty Company, Inc., located immediately north of City Hall. For many years previously, this property was the site of a Ford Motor Company dealership. Included in the purchase were 81,250 square feet of land and six buildings of various sizes totaling 52,614 square feet. A part of the property is being used as a City Hall Annex and the balance is being converted to a Transit System maintenance and storage facility. Total purchase price was $389,820.00. Prior to purchase, the City obtained various appraisals of the property which varied 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 9-30-81 was $260,609.20 which matures in 9 annual installments, September 1, 1982, through September 1, 1990, with interest calculated at 7%. Note Amortization Schedule Fiscal Year Ending Outstanding 9-30 Principal Interest Total Balance -1-981— Tgu�669 L6 1982 E 21,757.20 ; 18.242.80 $ 40,000.00 238,852.00 1983 23,280.40 16.719.60 40,000.00 215,571.60 1984 24,910.00 15,090.00 40,000.00 190,661.60 1985 26,653.60 13,346.40 40,000.00 164,008.00 1986 28,519.60 11,480.40 40,000.00 135,488.40 1987 30,515.60 9,484.40 40,000.00 104,972.80 1988 32,652.00 7,348.00 40,000.00 72,320.80 1989 34,937.60 5,062.40 40,000.00 37,383.20 1990 37.383.20 2.616.80 40.000.00 -0- $260,609.20 E 99,390.80 $360,000.00 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 total $30,990.00, leaving a balance of $9,010.00 to be budgeted from the General Fund each year. FUNDED DEBT LIMITATION There is no direct debt limitation in the City Charter or under State Law. The City operates under a Home Rule Charter that limits the maximum tax rate, for all City purposes, to $2.50 per $100 Assessed Valuation. Administratively, the Attorney General of the State of Texas will permit allocation of $1.50 of the $2.50 maximum tax rate for general obligation debt service. See "Tax Adequacy". - 8 - VALUATION AND FUNDED DEBT HISTORY Fiscal Period Taxable Basis Ratio Funded Debt Ending Assessed of Funded Debt Out- to Taxable 9-30 Valuation 1 Assessment standin Year End Assessed Valuation T976�L (2) �— —��- 1971-72 630,151,893(2) 60% 44,459,000 7.06% 1972-73 659,742,523(2) 60% 47,266,000 7.16% 1973-74 716,225,294 2) 60% 53,440,000 7.46% 1974-75 797,387,868 2) 60% 50,5469000 6.34% 1975-76 923,557,647(2) 60% 47,763,000 5.17% 1976-77 1,014,049,149(2) 60% 43,682,000 4.31% 1977-78 1,104,591,631(2) 60% 42,107,000 3.81% 1978-79 1,298,016,250(2) 60% 47,086,000 3.63% 1979-80 1,403,475,893(2) 60% 49,301.000 3.51% 1980-81 1,565,733,545(2) 60% 61,710,000 3.94% 1981-82 2,701,561,127 100% 67,900,000(3) 2.51% (1) For all years Taxable Assessed Valuations are net of any exemptions. 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. (2) Taxable Assessed Valuations for Fiscal Periods 1970-71 through 1980-81 have been adjusted for supplements and corrections to the tax rolls made subsequent to certification of the rolls. (3) Anticipated. TAXABLE ASSESSED VALUATIONS BY CATEGORY Property Adjustments Assessment For (2) As % of (1) Personal Corrections Taxable Appraised Real Personal Property: And Assessed Year Value Estate Prot Automobile Suu lements Valuation TM __MC_�d 7�T€�0�6 ,er, 05 n 5� b1,0U $ (2�5 ) �61T,�64�ia5 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 1589183,100 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 9239557,647 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 2749932,421 93.108,472 (11,227,483) 1,298,016,250 1979 60% 1,105,749,615 299,1179144 10,609,830(3) (12,000,696) 1,403,475,893 1980 60% 1,195,978,655 323,734,323 9,981,770 36,038,797 1,565,733,545 1981 100% 2,106,697,370 576,327,753 18,536,004 N.A. 2,701,561,127 (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. (2) Taxable Assessed Valuations for 1974-1980 are net after the following exemptions (in terms of Assessed Valuation): Over 65 Disabled Homestead Veteran Disabled Year Exem tions Exem tionsive NoExemptions IM No 95,00 t ffectt Effective 1975 13,323,150 Not Effective Not Effective 1976 11,888,760 $1,307,240 Not Effective 1977 14,159,830 1,646,220 Not Effective 1978 34,991,600* 1,5499890* Not Effective 1979 49,793,340* 1,9289450* Not Effective 1980 52,926,900* 2,147,280* Not Effective 1981 99,248,070* 2,072,270 $4,720,090* • As of 10-1 each year. (3) Personal automobiles became exempt from ad valorem taxes in 1979. - 9 - n ESTIMJITED TAXABLE ASSESSED VALUATIONS (1) Estimated Taxable Fiscal Assessed Period Valuation T48 -M Tr28T,7gb 1983-84 3,628,248,460 1984-85 4,188,557,620 (1) All estimates are net after estimated exemptions at 100% of net appraised value. Source: Lubbock County Appraisal District. AUTHORIZED GENERAL OBLIGATION BONDS Amount Amount Date Amount Heretofore Being Unissued PPur� os-e Authorized Authorized Issued Issued Balance atll erworks System 7% $16,175,000 Waterworks System 8- 9-80 21,000,000 16,200,000 -O- 4,800,000 Waterworks System 11-21-81 5,226,000 -0- -0- 5,226,000 Sewer System 5-21-77 3,303,000 2,0309000 -0- 1,273,000 Sewer System 11-21-81 7,892,000 -0- 19090,000 6,802,000 Street Improvements 5-21-77 49782,000 3,693,000 -O- 1,089,000 Street Improvements 11-21-81 9,495,000 -0- 3,280,000 6,215,000 Storm Sewer and Drainage 11- 9-67 1,950,000 1.715,000 235,000 -0- Storm Sewer and Drainage 5-21-77 473,000 100,000 -0- 373,000 Fire Station (for adjacent areas, when annexed) 5-21-77 3109000 -0- -0- 310,000 Health Department 11-21-81 1,000,000 -0- 1,000,000 -0- Airport 11-21-81 129854,000 -0- 812,000 12,042,000 Traffic 11-21-81 4.283,000 -0- 4,283,000 -0- Fire Department 11-21-81 877 000 -0- 250,000 627,000 ESTIMATED GENERAL OBLIGATION BOND PROGRAM nticipate ssuance 1982 1983 1984 Total Waterworks System TT6,6T6,-OM No S -0- Trg" Ebb Sewer System 1,423,000 5,352,000 1,300,000 8,075,000 Street Improvements 3,164,000 49065,000 75,000 7,304,000 Storm Sewer and Drainage -0- 373,000 -0- 373,000 Fire Station (for adjacent areas, when annexed) -0- 310,000 627,000 937,000 Airport 10 353 000 1 689,000 -0- 12,042,000 3f4. SbEi, 66b $Ib ; 43-9;�60 $2-,062•, 60� 666 AUTHORIZED BUT UNISSUED GENERAL OBLIGATION BONDS OF OVERLAPPING SUBDIVISIONS The Lubbock Independent School District has $100,000 authorized but unissued School Building Unlimited Tax Bonds; these bonds were authorized in 1959 for stadium purposes. The District does not anticipate ever issuing these bonds. Lubbock County has $500,000 unissued Unlimited Tax Road Bonds, authorized in 1961, but has no plans to issue these bonds. - 10 - n ESTIMATED OVERLAPPING FUNDED DEBT PAYABLE FROM AD VALOREM TAXES As o - 0-8 Estimated Total % Overlapping Taxin Jurisdiction Funded Debt Funded Debt yZ`flo Lf ock $38.739,788(1) _Applicable 700.UMC $38,735788 Lubbock Independent School District 17,235,000(2) 96.53% 16,636,946 Lubbock County -0- 93.16% -0- Lubbock County Hospital District 620,000 93.16% 577,592 Lubbock County Water Control and Improvement District No. 1 -0- 93.16% -0- Lubbock-Cooper Independent School District 1,337,000 2.34% 31,286 Frenship Independent School District 3,912,792 24.52% 959,417 Roosevelt Independent School District 553,000 0.13% 719 Idalou Independent School District 623,000 0.01% 62 TOTAL OVERLAPPING FUNDED DEBT $56.945.810 Ratio Overlapping Funded Debt to Taxable Assessed Valuation -------------------------- 2.11% Per Capita Overlapping Funded Debt - $319.41 (1) General Purpose General Obligation Debt, including the Bonds. (2) Includes $11,900,000 Bonds sold 1-21-82. TAX DATA (Yearending 9-30) Distribution (1) Tax Tax General Board of City Interest and (1) % Current % Total Year Rate Fund De�velmmen�t Sinkin Fund Tax Levi Collections Collections 1TAM W09 TFWU 30.05 $ hx 6M0 -.5TP -TFT2%- 1971-72 1.14 0.3700 0.05 0.7200 7.183,732 94.06% 97.92% 1972-73 1.29 0.3600 0.05 0.8800 8,510.678 93.72% 96.41% 1973-74 1.36 0.4600 0.05 0.8500 9,7409664 93.18% 96.39% 1974-75 1.36 0.5400 0.05 0.7700 10,844,475 93.16% 97.26% 1975-76 1.36 0.7000 0.05 0.6100 12,560,384 93.43% 97.19% 1976-77 1.41 0.7500 0.05 0.6100 14,298,093 93.09% 95.76% 1977-78 1.41 0.8600 0.05 0.5000 15,574,742 93.84% 96.41% 1978-79 1.12 0.7500 0.05 0.3200 14,537782 92.75% 95.39% 1979-80 1.12 0.6800 0.05 0.3900 15,718:930 94.50% 98.68% 1980-81 1.10 0.6800 0.05 0.3700 17,223,069 94.00% 98.51% 1981-82 0.66 0.3225 0.05 0.2875 17,830,303 In Process of Collection (1) "Tax Levy" and "Percent Current Collections" for Tax Years 1970-71 through 1980-81 have been adjusted to reflect final corrections and supplements to the tax rolls as audited at the end of each fiscal year. 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. Penalty and interest charges for late payment are: Month Paid lEgnalt Interest Totes e ruary March 7% 2% 9% April 8% 3% 11% May 9% 4% 13% June 10% 5% 15% July 12% 6% 18% After July penalty remains at 12%; interest increases 1% each month. TAX RATE LIMITATIONS All taxable property within the City is subject to the assessment, levy and collection by the City of a continuing, direct annual ad valorem tax sufficient to provide for the payment of principal of and interest on all types of tax obligations of the City within the limits prescribed by law. Article XI, Section 5, of the Texas Constitution is applicable to the City of Lubbock, and limits its maximum ad valorem tax rate to $2.50 per $100 assessed valuation (for all city purposes). The City operates under a Home Rule Charter which adopts the Constitu- tional provisions. 1% MUNICIPAL SALES TAX (Effective4-1-68) 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 for the periods shown have been: Fiscal Net Estimated Year Collections % of Equivalent Net Ended Remitted Ad Valorem Ad Valorem Collections 979-37� to City 3,0Ta_ x Lem_ Tax Rate Per Capita 1972 52,98846,,1164 44.49 442.4986%% 0.490 -- 1973 3,780,338 44,42% 0.573 -- 1974 4,537,048 46.58% 0.634 -- 1975 4,763,912 43.93% 0.597 -- 1976 5,690,591 45.31% 0.616 -- 1977 6,806,680 47.61% 0.671 -- 1978 7,421,615 47.65% 0.672 -- 1979 8,160,916 56.14% 0.629 -- 1980 8,722,450 55.49% 0.621 $50.08* 1981 9,791,566 56.85% 0.625 * Based on Preliminary U.S. Census, 1980, of 174,157. ESTIMATED 1981-82 TAX YEAR OVERLAPPING TAXES Set forth below is an estimate of all 1981-82 Tax Year taxes levied on an average $50,000 single-family residence by the shown taxing jurisdictions, assuming appraisals are as shown. Basis of assessment in all cases is 100% of appraisal value. 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: - Estimated Appraised 1981 Estimated and Assessed Tax 1981 Taxes Taxin Jurisdictionc Value Rate Levied rty o Lu oc — 0 * $6 3M Lubbock Independent School District 45,000** 0.99000 445.50 Lubbock County 30,000 0.31000 93.00 Lubbock County Hospital District 30,000 0.28314 84.94 High Plains Underground Water Con- servation District No. 1 30,000 0.0100 3.00 Estimated Total 1981-82 Ad Valorem Taxes 5956.44 * Market value. ** After $5,000 market value residence homestead exemption. - 12 - 1 TOP TEN TAXPAYERS 1981 % of 1981 Taxable Taxable Assessed Assessed Name of Taxpayer Nature of Property Valuation Valuation Texas Instruments Incorporate ectronics anu acturer �75;57�d2tf �TS� Southwestern Bell Telephone Company Telephone Utility 65,551,390 2.42% Southwestern Public Service Company Electric Utility 30,603,540 1.13% Furr's, Inc. Retail Groceries 22,427,812 0.83% South Plains Mall Regional Shopping Center 20,145,810 0.74% Energas Company (a division of Pioneer Corporation) Gas Utility 14,281,180 0.52% Plains Co-op Oil Mill Oil Mill 13,200,710 0.49% Farmers Cc -Op Compress Cotton Compress 129809,540 0.47% International Business Machines Computers, Business Machines 9,777,260 0.36% Waples-Platter West Wholesale Groceries 8 100,290 0.30% I�6b% $272;�[T�9bz INTEREST AND SINKING FUND MANAGEMENT INDEX General Obligation Debt Service Requirements for Fiscal Year Ending 9-30-82 ----- $8,955.282 Interest and Sinking Fund, All General Obligation Issues, 9-30-81 -- E 904,102 1981 Interest and Sinking Fund Tax Levy @ 95% Collection------------------------------------------------------- 7,378,639 Estimated Delinquent Tax Collections, as budgeted ------------------ 261,258 Estimated Income from Other Sources, as Budgeted ------------------- 978,125 9,522,124 Estimated Surplus--------------------------------------------------------------- b 566,842 COMPUTATION OF SELF-SUPPORTING DEBT Waterworks Sewer System System Net System Revenue Available for Fiscal Year Ending 9-30-81 $6,964,101 $1,047,306 Less: Revenue Bond Requirements, 1981-82 Fiscal Year 144,760 -0- Balance Available for Other Purposes $6,819,341 $1,047,306 System General Obligation Bond Requirements, 1981-82 Fiscal Year 4,458,926 489,031 Balance $2,360,415 $ 558,275 Percentage of System General Obligation Bonds Self -Supporting 100.00% 100.00% - 13 - DEBT SERVICE REQUIREMENTS GEM RAL OBLGA11UN B ND Fiscal Grand Total Less: Less: Grand Total Year General Obli- Waterworks Sewer System General Pur- % of Ending Outstanding Bonds -'Fr-incipal The Bonds gation Bond Tax Bond Tax Bond pose Bond Principal 9-30 Principal Interest Tot Interest Tota Requirements Requirements Requirements Reuir0em Retired T82 60, 0 95, 82 ,9 S 8,�955,282 4458,92 ,0735 1983 4,650,000 3,500.274 8,150,274 S 525,000 E 1,564,063 E 2,089,063 10,239,337 3,894,490 651,871 5,692,976 1984 4,645,000 3,234,915 7,879,915 525,000 1,270,313 1,795,313 9,675,228 3,758,663 607,203 5,309,362 1985 4,495,000 2,971,232 7,466,232 550,000 1,203,125 1,753,125 9,219,357 3,577,210 563,512 5,078,635 1986 4,410,000 2,709,337 7,119,337 550,000 1,134,375 1,684,375 8,803,712 3,406,268 528,727 4,868,717 34.56% 1987 4,260,000 2,449,752 6.709,752 550,000 1,065,625 1,615,625 8,325,377 3,219,268 508,011 4,598,098 1988 4,135,000 2,193,464 6,328,464 550,000 996,875 1,546,875 7,875,339 3,058,635 466,094 4,350,610 1989 3,945,000 1,942,122 5,887,122 550,000 928,125 1,478,125 7,365,247 2,893,223 446,955 4,025,069 1990 3,785,000 1,707,413 5,492,413 550,000 859,375 1,409,375 62901,788 2,768,416 395,937 3,737,435 1991 3,640,000 1,480,297 5,120,297 550,000 790,625 1,340,625 6,460,922 2,648,346 311,382 3,501,194 65.55% 1992 3,295,000 1,271,005 4,566,005 550,000 721,875 1,271,875 5,837,880 2,522,329 273,673 3,041,878 1993 2,695,000 1,077,799 3,772,799 550,000 653,125 1,203,125 4,975,924 2,338,080 260,966 2,376,878 1994 2,305,000 905,653 3,210,653 550,000 584,375 1,134,375 4,345,028 2,181,570 248,187 1,915,271 1995 1,810,000 756,472 2,566,472 550,000 515,625 1,065,625 3,632,097 2,050,323 236,320 1,345.454 1996 1,810,000 618,211 2,428,211 550,000 446,875 996,875 3,425,086 1,936,744 223,307 1,265,035 85.73% 1997 1,730,000 478,498 2,208,498 550,000 378,125 , 928,125 3,136,623 1,821,947 210,208 1,104,468 1998 1,730,000 344,485 2,074,485 550,000 309,375 859,375 2,933,860 1,70% 032 197,411 1,028,417 1999 1,605,000 215,444 1,820,444 550o000 240,625 790,625 2,611,069 1,575,122 159,786 876,161 2000 1.165,000 109,738 1,274,738 550,000 171,875 721,875 1,996,613 1,173,052 113,235 710,326 ' 2001 840,000 33,600 873,600 550,000 103,125 653,125 1,526,725 844,946 64,986 616,793 99.24%. A 2002 550,000 34,375 584,375 584,375 58,145 526,230 100.00% $61,710,000 $32,194,993 $93,904,993 $10,950,000 $13,971,876 E24,921,876 $118,826,869 $51,835,590 E 7,014,947 $59,976,332 Note: Interest on the Bonds has been calculated at the rate of 12 1/2% for purposes of illustration. TAX ADEQUACY All General Obligation Bonds (including the Bonds) ... Max mu nc�pal and ntere equ�remeFts, 1983------------------------------------------------------ $10,239,337 $0.40 Tax Rate @ 95% Collection Produces --------- =----------------------------------------------------- $10,265,932 PENSION FUNDS Texas Municipal Retirement System ... All permanent, full-time City employees who are not firemen an who were ess t an bU 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 salary. The City's contribution rate is calculated each year using actuarial techniques applied to experience; the 1981 contribution rate is 7.51% of gross payroll and the 1982 contribution rate will be 6.73%. Enabling statutes prohibit any member city from adopting options which impose liabilities that cannot be amortized over 25 years within a specified statutory rate. The actuarially computed unfunded prior service liability as of December 31, 1979, was $9,348,364; this liability is being actuarially amortized annually through 2005. City of Lubbock assets held by the System on December 31, 1980, were $1,633,429 for prior service liabilities and $15,321,579 for accrued current service liabilities. Unfunded accrued current service liabilities totaled $528,348 on December 31, 1980, 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 Lubbockiremen'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 present contribution rate is 10.99%. An actuarial evaluation as of 3-31-80 was conducted by the firm of Rudd and Wisdom, Inc., Austin, Texas. The valuation balance sheet estimated unfunded liabilities of $5,336,161. The study found that the plan would be actuarially sound if a funding program is maintained which would completely amortize this unfunded liability in approximately 25 years, and concludes "Since your present funding period is approximately 19 years, we consider your plan, based on present levels of benefits and contributions, to be actuarially sound". LUBBOCK POWER AND LIGHT 4. 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. Lubbock Power and Light generates all of its power requirements and has two generating stations located within the City. These plants are geographically separated from one to seven miles and deliver bulk power to substations through a 69 KV transmission loop system. In December, 1981 the City commenced buying 10 MW of power through an interconnection with Southwestern Public Service Company. Generating Stations ... Total generating capacity is 216,500 KW. Gas turbines and I.C. generators provide the system with 55,500 KW of ready reserve and quick -start generation for emergency and peaking service. Generating units consist of the following: Generator Year Capacity Manufacturer Installed Station Prime Mover Fuel in KW Nor berg 2 DiesT ems- ua Fuel _,560 Nordberg 1947 2 Diesel Dual Fuel 2,500 Westinghouse 1952 2 Steam Turbine Gas or Oil 11,500 Westinghouse 1953 2 Steam Turbine Gas or Oil 11,500 Westinghouse 1957 2 Steam Turbine Gas or Oil 22,000 Westinghouse 1958 2 Steam Turbine Gas or Oil 22,000 Westinghouse 1964 Holly Gas Turbine Gas or Oil 12,500 General Electric 1965 Holly Steam Turbine Gas or Oil 44,000 Worthington 1971 Holly Gas Turbine Gas or Oil 18,000 General Electric 1974 Holly Gas Turbine Gas or Oil 20,000 General Electric 1978 Holly Steam Turbine Gas or Oil 50,000 -216,500 Since the completion of the interconnection with Southwestern Public Service Company, Station #2 has been kept on standby and will be used in the future for peak power purposes only. Transmission and Distribution ... A 69,000 volt (69 KV) transmission loop system, 36 miles in length, provides bulk power to six 20 MVA-69,000/12470 volt -substations. A second 69 KV transmission loop system insulated for operation at 115 KV is under construction. The distribution system includes approximately 680 miles of overhead distribution lines and approximately 110 miles of underground distribution lines. There are twelve 12,470/4160 volt substations in the distribution system. Net system load for Fiscal Year Ending September 30, 1981 was 681,584,750 KWH with a peak demand of 149,500 KW. Construction Pro ram A major transmission system and distribution system construction and mprovement program is under way utilizing proceeds of $9,000,000 Electric Light and Power System Revenue Bonds sold in August, 1981. Transmission System The transmission system program includes upgrading of 3 major sub- stations, extension of -a 69 KV transmission line, extension of a second circuit of an existing 115 KV transmission line, construction of a major substation in Northeast Lubbock, upgrading of computer capabilities, and installation of remotes in all major substations to fully coordinate relay and line switching capabilities. Distribution System . The program includes extension of and improvements to the existing ism ution system including additional distribution circuits for substations, extensions to new service areas, transformers, meter pedestals, poles and crossarms, regulators, capacitors, meters, service lines and other appurtenances. - 16 - Interconnection An interconnection with Southwestern Public Service Company has been completed and_tie City commenced buying power on December 1, 1981. Lubbock Power and Light has contracted with Southwestern Public Service Company for the purchase of 10 MW of power and, in addition, the contract calls for a total capacity of 100 MW upon proper notice. 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 generating and distribution system. Fuel Supply . Primary fuel supply for Lubbock's generating system is natural gas which is supplied by Westar Transmission 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 supplies have been experienced in the past few years, and Westar indicates that some 50% to 70% short duration (48 hours or less) curtailments, during peak gas usage periods, may be experienced in the future. No curtailments in excess of 70% are projected by Westar 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 1,500,000 gallons and an adequate supply of fuel oil for 10 days' operation at 50% natural gas curtailment is maintained in inventory at all times; with expected resupply, this period would be substant- ially extended. The newest Holly steam generator has a tri-fuel capability as it is designed to burn natural gas, fuel oil and crude oil. 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 Westar and other divisions of Pioneer Corporation. Carbon Dioxide Recovery ... The Carbon -Dioxide Technology Corporation, Houston, Texas, is constructing a carbon dioxide (CO2) recovery plant on a three acre site adjacent to the Holly Plant. CO2 will be recovered from the Holly Plant stack gasses for use in a tertiary -level oil recovery program in nearby Garza County fields. Estimated cost of the plan is $30,000,000; estimated annual revenues to Lubbock Power and Light include $360,000 from sale of CO2, and $150,000 from the sale of electric power. Completion is projected for September, 1982. CONDENSED STATEMENT OF OPERATIONS ELECTRIC LIGHT AND POWER SYSTEM a Fiscal Year Ended 9-30-81 9-30-80 9-30-79 9-30-78 9-30-77 Operating Revenues TP_,GUF,_72_9 9, 9,8 ,6 9, 2,4 ,7 B 4, 80 Non -Operating Income 690,388 731,676 826,106 624,791 945,564 Gross Income $34,693,116 $29,891,540 $24,445,824 $23,072,509 $20,119,844 Operating Expense (excluding depreciation) 30,393,827 24,870,851 20,077,479 17,355,243 14,292,538 Net Revenue $ 4,299,289 $ 5,020,689 $ 4,368,345 $ 5,717,266 $ 5,827,306 Electric Connections 33,370 32,051 30,390 29,204 28,352 Maximum Principal and Interest Requirements, Electric System Revenue Bonds, Fiscal Year Ending 9-30-83------------------------------------ S 3,734,017 Coverage by Net Income, Fiscal Year Ended 9-30-81------------------------------ 1.15 Times Electric Light and Power System Revenue Bonds Outstanding, 9-30-81--------=---- $23,450,000 Interest and Sinking Fund and Reserve Fund, Cash and Investments, 9-30-81---------------------------------------------------------------------- $ 3,044,158 - 17 - THE WATERWORKS SYSTEM Water Su 1 . Primary source of water for Lubbock is the Canadian River Municipal Water thor,ty 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 30,536 acre feet of water from the Authority in Calendar Year 1981, approximately 84% 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 Su 1 Sources ... Part of the City's water supply is obtained from 230 water wells, a producing from the Ogallala Formation, which underlies the High Plains of Texas. Combined capacity of these wells is over 40,000,000 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. 19,500 acres have been developed with 120 producing wells. The City has recently contracted for the annual purchase of a minimum of 1,350 acre feet of water from a private source adjacent to the Sand Hills tract. This water source is now used primarily for peaking purposes. 50 Year Water Supply Stud ... The City of Lubbock has conducted an investigation of additional long term water supply sources. Freese and Nichols, inc., Consulting Engineers, Fort Worth, Texas, who conducted this investigation for the City, have recommended consideration of a site on the North Fork of the Double Mountain Fork of the Brazos River (the "Post Site") and a site on the South Fork of the Double Mountain Fork of the Brazos River (the "Justiceburg Site"), about 35 and 50 miles southeast of Lubbock respectively, for the development of additional surface supplies. Freese and Nichols reported to the City that the quantity and quality of water available, particularly at the "Justiceburg Site", are suitable for development. Devel- opment of these supplies would provide the City with a dependable supply of approximately 29 million gallons per day. The City has submitted an application to the Texas Department of Water Resources for rights to the Justiceburg Reservoir site. ' The System . Lubbock's Waterworks System is modern and efficient and property, plant and equipment valued at $44,355,362, after depreciation and including cost of construction work in progress, at September 30, 1981. 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 36.0 million gallons in 1981. Storage capacity consists of 14 ground storage reservoirs and 3 elevated steel storage tanks, providing a total storage capacity of 59,350,000 gallons. Storage capacity is entirely ade- quate for peak hour and fire protection requirements. Water Treatment Facilities . A water treatment plant for the treatment of water -received from the Canadian River Municipal Water Authority ("CRMWA") was completed in 1967. Maximum daily input of "CRMWA" water is 42MGD under Lubbock's contract. Present capacity of the plant is 56MGD. The plant also treats "CRMWA" water for several other members of the Authority; the City of Lubbock is fully reimbursed for these costs. Water S stem Improvement Program ... A program of water treatment and supply expansion and istribution system improvements are in progress, including; construction of a 1,200 acre foot open storage reservoir near the City's present water treatment plant to permit the storage of surplus water received from the Canadian River Municipal Water Authority in off-peak periods. °CRMWA" deliveries are limited by contract to 42 MGD; the reservoir will permit storage of water when demand does not require full utilization of contract allocation . Water treatment plant expansion designed to increase the plant's treatment capability from 56 MGD to 75 MGD, permitting treatment of stored surplus water as well as delivered water during peak demand - 18 - periods ... Construction of an additional high service pump station at the treatment plant with associated transmission distribution mains into the distribution system to permit expanded delivery of treated water ... Development of 25 wells and collection system expansion at the Bailey County Well Field ... Distribution System Improvements include construction of a pump station and main lines. Waterworks Revenue Bonds ... There are no authorized but unissued Waterworks Revenue Bonds. CONDENSED STATEMENT OF OPERATIONS WATERWORKS YSTE Fiscal Year Ended 9-30-81 9-30-80 9-30-79 9-30-78 9-30-77 perating Revenues $TrT0_.M T-TT7FTj97 U-.MT. W T7,66=, 4� Non -Operating Income 3,058,647 1,213,711 841,414 480,397 277,718 Gross Income $14,247,801 $10,042,308 $7,660,112 $7,481,750 $5,293,162 Operating Expense (excluding depreciation)* 7,283,700 6,927,147 5,957,631 5,130,938 4,260,222 Net Revenue S 6,964,101 $ 3,115,161 $1,702,481 $2,350,812 E1,032,940 Water Meters 55,511 54,589 53,458 52,408 50,442 * 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 9-30-82 (final principal maturity 6-1-82)------------------ S 144,760 Coverage Based on Net Income, Fiscal Year Ended 9-30-81------------------------- 48.1 Times Waterworks System Revenue Bonds Outstanding, 9-30-81---------------------------- S 140,000 Interest and Sinking Fund and Reserve Fund, 9-30-81----------------------------- $1,338,541 INCREASE IN WATER RATES Effective October 9 1 Old Rates (Effective 10-1-80) New Rates (Effective 10-1-81) First ,000 gal ons .5 Minimum First 9a ons .95 Minimum Next 49,000 gallons 0.93/M gallons Next 49,000 gallons 1.03/M gallons Next 200,000 gallons 0.80/M gallons Next 200,000 gallons 0.88/M gallons All over 250,000 gallons 0.75/M gallons All over 250,000 gallons 0.83/M gallons THE SEWER SYSTEM The City owns and operates a modern sewage system, with sanitary sewage collection and treat- ment handled separately from storm water drainage. Treatment facilities consist of the South- east Plant, with an average daily flow capacity of 25 million gallons, and the Northwest Plant, with an average daily flow capacity of 0.75 million gallons. Treated effluent is used to irrigate approximately 3,000 acres of farm land, and Southwestern Public Service Company has a contract with the City to use part of the sewage effluent for cooling purposes in Southwestern Public Service Company's 512,000 KW Clifford B. Jones electric generating plant near Lubbock. No effluent is discharged into streams. The sanitary sewage collection system includes approximately 695 miles of trunk mains and collector lines with trunk mains installed for future expansion of the collection system. Average daily sewage flow in 1981 was 18.9 million gallons. There are no outstanding or authorized sewer revenue bonds. - 19 - CONDENSED STATEMENT OF OPERATIONS -FWFR SYSTFM Fiscal Year Ended 9-30-81 9-30-80 9-30-79 9-30-78 9-30-77 ncome 32,75T,-M ,6 ,80T 3T, 36E.-8-6W $2,262.644 31—,617-.W Expense 1,710,934 1,597,031 1,395,924 1,082,772 874,305 Net Income $12047,306 51,038,770 5 972,942 $1,179,872 3 743,193 Sewer Customers* 55,511 54,589 53,458 52,408 50,442 * Estimated. AIRPORT SYSTEM The City has owned and operated its airport since 1929, with scheduled airline service begin- ning in 1946. Lubbock International Airport is located six miles north of the central business district and has an area of over 2,632 acres, of which approximately 1,500 acres is used for farming and clear zones. Scheduled Airline Service . Scheduled airline transportation is furnished by American Air Lines, Braniff International, Continental Airlines, Texas International Airlines, and Southwest Airlines; all flights are by jet aircraft. Air Midwest, a Wichita, Kansas, based regional certificated air carrier, also serves the City. Non-stop service is provided to Dallas -Fort Worth Regional Airport, Dallas Love Field, Houston, E1 Paso, Austin, Amarillo and Midland -Odessa. 1981 passenger enplanements totaled 474,600, compared to 455,925 in 1980. Lubbock International Air ort Terminal . The terminal building, completed in April, 1976, contains approximate y 4 ,00 square feet; the terminal houses airport administrative of- fices, airline offices and ticket counters, the baggage claim area, car rental offices, a restaurant and inflight meal preparation kitchen, air freight tenants, 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 office space and houses a FAA General Aviation District Office and Airway Facilities Sector. A FAA -operated Flight Service Station is located adjacent to the old terminal. Federal Express services are available. 4� The FAA -operated control tower provides 24 hour service. 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 150', east/west, cross -wind runway, with high intensity lighting and a FAA operated instrument landing system; 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 west -side located 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. Terminal and Aron Improvement Pro ram ... $12,854,000 General Obligation Bonds for airport mprovement purposes were approve at t e election on November 21, 1981; $812,000 of these are included in the Bonds, the proceeds to be used for architectural/engineering services and purchase of a jetway for Gate 6 at the terminal. - 20 - An estimated $10,220,000 will be used to expand the present terminal with a 60,000 square foot addition which will include two additional gates equipped with jetways, baggage handling system, additional rent car areas and expanded airline lease space. $2,634,000 will be used for the City's share of the cost of terminal apron expansion; total estimated cost of terminal expansion is $11,246,040 of which the FAA's share is $8,612,040; included in the apron expan- sion is provision for the two new gates at the terminal and four additional, second phase, future gates. 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 9-30-81 9-30-80 9-30-79 9-30-78 9-30-77 Aerating Revenues ,270 ,9 0,7 ,86 ,06 ,8 ,7 M TrT6T,_M Non -Operating Revenue 396,976 279,961 413,953 257,945 185,865 Gross Income $2,607,246 $2,230,677 $2,277,015 $2,124,655 $1,653,581 Operating Expense (excluding depreciation) 1,972,780 1,732,584 1,467,720 1,191,964 1,183,939 Net Revenue $ 634,466 $498,093 $ 809,295 S 932.691 S 469,642 Maximum Principal and Interest Requirements, Airport Revenue Bonds, Fiscal Year Ending 9-30-82 (secured by Gross Income from System) -------------- S 345,146 Coverage Based on Gross Income, Fiscal Year Ended 9-30-81----------------------- 7.55 Times Airport Revenue Bond-s—Uutstanding, 9-30-81-------------------------------------- $2,475,000 Interest and Sinking Fund, 9-30-81---------------------------------------------- $ 760,888 Reserve Fund, Cash and Investments, 9-30-81------------------------------------- $ 300,000 GENERAL INFORMATION REGARDING THE CITY AND ITS ECONOMY LOCATION AND AREA ... The City of Lubbock, County Seat of Lubbock County, Texas, is located on the South Plains of West Texas. Lubbock is the economic, educational, cultural and medical center of the area. POPULATION ... Lubbock is the eighth largest City in Texas: City of Lubbock (Corporate Limits) 1910 Census — 1,938 1920 Census 4,051 1930 Census 20,520 1940 Census 31,853 1950 Census 71,390 1960 Census 128,691 1970 Census 149,101 1980 Census 173,979 Standard Metropolitan Area (Lubbock County) 1970 Census 179,295 1980 Census 211,651 - 21 - AGRICULTURE Lubbock is the center of a highly mechanized agricultural area with a majority of the crops irrigated with water from underground sources. Principal crops are cotton, grain sorghums and corn with livestock, sunflowers and soybeans as additional sources of agricultural income. The Texas Department of Agriculture and the Statistical Reporting Service, U.S. Department of Agriculture report as follows: Lubbock County's 1980 cotton production was 213,200 bales; grain sorghum production was 31,110,000 pounds; and corn production was 227,400 bushels. On January 1, 1981, there were an estimated 56,000 head of cattle and calves located on farms or in feed lots in Lubbock County. An estimated 108,000 cattle were marketed from feed lots during 1980. Lubbock County Cash Receipts from farm marketings, 1978/80, were: 1978 1979 1980* All Crops $ 72,057,0 I-74; M-,— 6 9, ,M Livestock and Products 27,053,000 39.255,000 33,771,000 U.S. Government Payments 6,498,000 5,971,000 6,434,000 Total Cash Receipts $105,608,000 $119,927,000 $130,050,000 * Preliminary - subject to revision. 1980 cotton production in a 23 county (including Lubbock County) area surrounding Lubbock was 2,001,700 bales; 1980 grain sorghum production in this same area was 844,150,000 pounds; and grain corn production was 66,237,400 bushels. Three major vegetable oil plants located in Lubbock have a combined weekly capacity of over 2.400 tons of cottonseed and soybean oil. Several major seed companies are headquartered in Lubbock. BUSINESS AND INDUSTRY ... Lubbock SMSA Labor Force Estimates (Source: Texas Employment Commission) 0 November October September November October September 1981* 1981 1981 1980 1980 1980 Civilian Labor Force -TU-.W M=, —M_6 —I6b,W I0,6S6 -M ,rR- Total Employment 97,600 98,050 97,500 96,050 96,800 97,450 Unemployment 5,200 4,200 4,500 4,350 3,850 3,660 Percent Unemployed 5.1% 4.1% 4.4% 4.3% 3.8% 3.6% * Subject to revision. The Texas Employment Commission reported in December, 1981, that November, 1981, nonagricul- tural employment in the Lubbock area totaled 90,550, up from 90,150 in November, 1980; of this total an estimated 11,700 were employed in manufacturing compared to 12,800 in November, 1980. Over 240 manufacturing plants in Lubbock produce such products as consumer products utilizing semi -conductor elements, vegetable oils, heavy earth -moving machinery, irr.igation equipment 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. - 22 - Some larger industries in Lubbock (with more than 100 employees) are: Estimated Employees December, Company Product 1981* Texas Instruments, Inc. Consumer Products with Semi - on uctor 3,500+ Elements Johnson Manufacturing Company (Division of Heavy Earth -Moving Machinery and 250+ Eagle-Picher Industries) Farm Equipment Lubbock Avalanche -Journal Southwestern Newspaper 350+ Newspaper Corporation Litton Data Systems, Guidance and Control Navigational Equipment; Electronic 325+ Systems Division, Litton Industries, Inc. Computer Systems Plains Co-op Oil Mill Vegetable Oil Products, Cottonseed 325+ Products Evans Transportation Company (Division of Evans Products Company) Pressure Vessels for Rail Cars 300+ Frito-Lay, Inc. (Subsidiary of Potato and Corn Chips 300+ Pepsico, Inc.) Goulds Pumps, Inc. Vertical Turbine Pumps 250+ Mrs. Baird's Bakeries Bread Products 175+ Coca-Cola Bottling Company Soft Drinks 175+ Bush Hog -Husky Company (Subsidiary of Structural Steel Fabrication, Irriga- 150+ Allied Products, Inc.) tion Equipment, Pollution Equipment Grinnell Fire Protection Systems Company Automatic Sprinkler Heads 150+ (Subsidiary of Tyco Laboratories) Rainbo Baking Company, subdivision of Bread Products 130+ Cambell-Taggart Associated Bakeries, Inc. Bell Dairy Products, Inc. Dairy Products 100+ Hall Foundries & Manufacturing, Inc. Aluminum and Brass Castings, Wooden 100+ Foundry Patterns Lubbock Cotton Oil Company Cottonseed Oil and Other Cottonseed 100+ Products, Soyean Oil Dr. Pepper -Seven Up Bottling Company Soft Drinks 100+ Nubro Corporation Reground Ball Bearings, Formed Wire 100+ Coils, Starter Armatures * Source: Lubbock Chamber of Commerce. 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. 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. The U.S. Bureau of the Census, Census of Business, 1977, estimated Lubbock County (Lubbock Standard Metropolitan Area) retail trade at $866 million in 1977. Sales & Market'n Mana - ement, Survey of Buying Power, estimates Lubbock County 1980 retail sa es at , 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 D 7 4os s Y7976nd De osits 1971 84 527,314,293 1977 289- 1,104,602,863 1972 596,697,439 1978 1,104,896,188 1973 723,327,701 1979 1,219,990,000 1974 793,915,466 1980 1,369,037,000 1975 878,164,171 1981 1,500,177,000 -23- EDUCATION ... TEXAS TECH UNIVERSITY ... Established in Lubbock in 1925, Texas Tech University is the third largest State-owned Univer- sity in Texas and had a Fall, 1981 enrollment of 22,968. Accredited by the Southern Association of Colleges and Schools, the University is a co-educational, State -supported institution offer- ing the bachelor's degree in 87 major fields, the master's degree in 69 major fields, the doctorate degree in 32 major fields, and the professional degree in 2 major fields (law and medicine). The University proper is situated on 451 acres of the 1,829 acre campus, and has over 90 permanent buildings with additional construction in progress. 1981-82 faculty membership is 1,517, and over 5,000 other full and part-time employees including professional and administra- tive staff. Including the Medical School, the University's operating budget for 1981-82 is over $153.7 million of which $110.3 million is from State appropriations; book value of physical plant assets, including the Medical School, is $305.7 million. In 1969, the State Legislature authorized the establishment of a medical school at the Univer- sity. Construction of Pod A of the school is complete, and construction on Pods B and C is near completion. The medical school opened in 1972, and had an enrollment of 336 for the Fall Semester, 1981, not including residents. There are 46 graduate students. The School of Nursing admitted its first class in Fall 1981 - enrollment 65. The Allied Health School will admit its first class in Fall, 1982. OTHER EDUCATION INFORMATION ... The Lubbock Independent School District, with an area of 87.5 square miles, includes over 95% of the City of Lubbock. Fall, 1981, enrollment was 28,754; there were 1,983 faculty and professional personnel and 1,193 other employees. The District operates 5 senior high schools, 8 junior high schools, 35 elementary schools and other educational programs. The District is planning the construction of 3 new elementary schools. SCHOLASTIC MEMBERSHIP HISTORY* Refined Average School Student Daily MembershiQ Attenc�e 9Ya�r 6,7 1973-74 32,499 30,477 1974-75 32,209 30,255 1975-76 31,733 29,888 1976-77 31,502 29,683 1977-78 31,163 29,554 1978-79 29,877 28,284 1979-80 29,377 27,257 1980-81 28,828 27,044 1981-82 28,754** 27,331** * Source: Superintendent's Office, Lubbock Independent School District. ** As of end of first six weeks period. Lubbock Christian College, a privately owned, co-educational senior college located in Lubbock, had an enrollment of 1,151 for the Fall Semester, 1981, and offers 23 bachelor degree programs. South Plains College, Levelland, Texas (South Plains Junior College District) operates a major off -campus learning center in a downtown Lubbock, 7-story building ownedby the College. Course offerings cover technical/vocational subjects, and Fall, 1981, enrollment was 850. The College also operates a major off -campus learning center at Reese Air Force Base; course offerings are in primarily academic subjects and Fall, 1981 enrollment was 350. 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 556 students. The School's operating budget for 1981/82 is in excess of $11.5 million. The School is operating at 100% capacity, and has over 700 professional and other employees. - 24 - TRANSPORTATION ... Scheduled airline transportation at Lubbock International Airport is furnished by American Airlines, Braniff International, Continental Airlines, Texas International, Southwest Airlines and Air Midwest. Non-stop service is provided to Dallas -Fort Worth Regional Airport, Dallas Love Field, Houston, Amarillo, Austin, El Paso and Midland -Odessa. 1981 passenger boardings totaled 474,600. Extensive private aviation services are located at the airport. Federal Express services are available. 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 Grey- hound Corporation, provides bus service. Headquarters for T.I.M.E.-DC, Inc., a transcon- tinental motor carrier, are located in Lubbock, and 14 motor freight common carriers provide service. 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; construction is in progress. GOVERNMENT AND MILITARY ... 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 has approximately 2,800 military and 600 civilian personnel. State of Texas ... More than 25 State of Texas boards, departments, agencies and commissions have offices in Lubbock; several of these offices have multiple units or offices. Federal Government . Several Federal departments and various other administrations and agen- cies have offices in Lubbock; a Federal District Court is located in the City. HOSPITALS AND MEDICAL CARE ... There are seven hospitals with a November, 1931 total of 1,495 licensed beds. Methodist Hospital, the largest, employs 509 of its licensed 549 beds, and also operates an accredited nursing school; St. Mary's of the Plains Hospital utilizes 179 beds of 'its licensed 209 beds. Others include West Texas Hospital with 166 beds, Highland Hospital with 123 beds, University Hospital, Inc. with 99 beds and Community Hospital of Lubbock with 76 beds. Lubbock County Hospital District, with boundaries contiguous with Lubbock County, owns the Lubbock General Hospital which it operates as a teaching hospital for the Texas Tech University Medical School, utilizing 203 of its licensed 273 beds. Lubbock has over 200 practicing physicians and surgeons (M.D.) plus the Texas Tech University Medical School Staff, and over 80 dentists. A radiology center for the treatment of malignant diseases is located in the City. RECREATION AND ENTERTAINMENT Lubbock's Mackenzie State Park and 60 City parks and playgrounds provide recreation centers, shelter buildings, a garden and art center, swimming pools, a golf course, tennis and volley ball courts, baseball diamonds and picnic areas, including the Yellowhouse Canyon Lakes system of four lakes and 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, the main City library building and State Department of Public Safety Offices. The west and south periphery, about 50 acres, is being redeveloped privately with office buildings, hotels and motels, a hospital and other facilities. - 25 - n Available to residents are Texas Tech University programs and events, Texas Tech University Museum, Planetarium and Ranch Heritage Center exhibits and programs, Lubbock Memorial Civic Center and its events, Lubbock Symphony Orchestra programs, Lubbock Theatre Center, Lubbock Civic Ballet, Municipal Auditorium and Coliseum programs and events, the library and its branches, the annual Panhandle -South Plains Fair, college and high school football, basketball and other sporting events; modern movie theatres. CHURCHES ... Lubbock has approximately 200 churches representing more than 25 denominations. UTILITY SERVICES ... Water and Sewer - City of Lubbock. Gas - Energas Company (a division of Pioneer Corporation). Electric - City of Lubbock (Lubbock Power & Light) and Southwestern Public Service Company. Telephone - Southwestern Bell Telephone Company. MEDIA ... Newspapers - 1 daily (morning and evening); others semi -weekly and weekly. Television and Radio - 3 network TV channels and 1 educational public service TV channel; cable TV services; AM and FM radio stations. ECONOMIC INDICES (1) Bank Building Utility Connections Postal Year De osits Permits ater as ectric leie�� Recei is 1 S 82 9,76�46f '£9� T2 9a$ �9ZT� 169,458- �_8 8 1970 477,247,184 40,035,768 42,460 43,456 48,966 115,047 4,043,407 1971 527,314,293 69,209,358 43,012 44,039 49,970 121,545 4,323,582 1972 596,697.439 64,278,038 44,331 45,168 50,717 128,288 5,241,799 1973 723,327,701 78,844,779 45,565 45,650 50,994 135,344 5,317,985 1974 793,915,466 118,718,253 46,745 45,971 51,739 141,942 5,737,352 1975 878,164,171 114,823,400 47,817 47,671 52,451 f49,906 6,662,348 40. 1976 1,013,973,289 91,904,380 49,933 48,809 56,008(2) 158,497 8o027,363 1977 1,104,602,863 131,951,646 50,825 50,062 60,077 161,860 10,778,787 1978 1,104,896,188 132,600,657 52,629 51,266 63,123 168,273 11,006,891 1979 1,219,990,000 104,883,750 53,705 54,878 65,294 171,609 11,758,260 1980 1,369,037,000 88.829,331 549788 55,768 66,885 174,110 12,882,061 1981(3) 1,500,177,000 106,757,064 55,511 N.A. 68,339 176,111 N.A. Notes: (1) All data 1969-1980 as of 12-31, except Postal Receipts which are as of 6-30 for 1967-76 and as of 12-31 for 1977/80. (2) Electric connections include those of a privately owned utility company. 12-31-76 electric connections reflect institution of metering of individual apartment units. (3) 1981 data as of: water, electric and telephone connections as of 10-31; bank deposits and building permits as of 12-31-81. - 26 - BUILDING PERMITS BY CLASSIFICATION (Source: City of Lubbock.Texas) Residential Permits Commercial, Single Family Duplexes A artmen s Total ResidenfTa-r—Public Total o. Permits No. Dwelling and Other Building Year No. Units Value (Units)� Value No. Units Value Units Value Permits Permits TW �$6— 31T.T ,$�5 -ii( 2) Ub ---= TTT6FW ---7rT — $PF,MTT9 ,9 ,9 1969 427 10,077,800 36( 72) 754,000 52 364,000 551 11,195,800 18,568,662 29,764,462 1.970 485 10,942,391 15( 30) 429,700 633 5,966,400 1,148 17,338,491 22,697,277 40,035,768 1971 864 20,782,556 67(134) 2,297,700 894 10,079,491 1,892 33,159,747 36,049,611 69,209,358 1972 852 22,667,238 75(150) 3,008,650 1,171 11,315,898 2,173 36,991,786 27,286,253 64,278,039 1973 815 22,702,186 52(104) 2,317,050 949 9,121,400 1,868 34,140,636 44,704,143 78,844,779 1974 893 29,446,897 34( 68) 1,440,500 773 7,315,500 1,734 38,202,897 80,515,356 118,718,253 1975 1,002 37,766,603 23( 46) 1,165,450 734 5,592,000 1,782 44,524,053 70,299,347 114,823,400 1976 1,164 44,220,463 48( 96) 2,723,150 712 6,908,000 1,972 53,851,613 38,052,767 91,904,380 1977 1,713 72,055,014 72(144) 4,011,400 1,654 22,571,000 3,511 98,637,414 33.314,232 131,951,646 1978 1,276 62,785,400 80(160) 5,074,550 636 9,479,000 2,072 77,338,950 55,261,707 132,600,657 1979 935 50,207,289 16( 32) 897,000 300 5,144,680 1,267 56,248,969 48,634,781 104,883,750 1980 895 50,943,410 36( 72) 2,293,900 216 3,535,500 1,183 56,772,810 32,056,521 88,829,331 1981 655 47,760,510 13( 23)* 1,389,500 748 20,415,552 1,426 69,565,562 - 37,191,502 106,757,064 Notes: (1) Data shown under "No. Units" is for each individual apartment dwelling unit, and is not for separate buildings. * As reported by City. 11. 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. - 28 - 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. FINANCIAL ADVISOR First Southwest Company is employed as Financial Advisor to the City in connection with the issuance of the Bonds. The Financial Advisor's fee for services rendered with respect to the sale of the Bonds is contingent upon the issuance and delivery of the Bonds. First Southwest Company may submit a bid for the Bonds, either independently or as a member of a syndicate organized to submit a bid for the Bonds. 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 District will furnish the Purchaser, as a part of the transcript of proceedings, a certi- fied copy of a resolution of the City Council as of the date of the sale of the Bonds which will approve the form and content of this Official Statement, and any addenda, supplement or amendment thereto, and authorize its further use in the reoffering of the Bonds by the Pur- chaser. BILL McALISTER Mayor ATTEST: EVELYN E. GAFFGA City Secretary 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, 1980. The information pre- sented represents only a part of the Annual Audit Report and does not purport to be a complete statement of the City's financial condition. Reference is made to the complete Annual Audit Report for further information. - AUDITED FINANCIAL STATEMENTS GENERAL FUND AND DEBT SERVICE FUND CITY OF LUBBOCK, TEXAS September 30, 1980 � n CONTENTS Accountants' Report Page 3 General Fund Balance Sheet 4 Statement of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual 6 Debt Service Fund Balance Sheet 7 Statement of Revenues, Expenditures and Changes in Fund Balance g Notes to Financial Statements 9 1 MASON. NICKELS & WARNER CERTIFIED PUBLIC ACCOUNTANTH SLATE 460I TOWER OF THE PLAINS 15010 UNIVERSITY AVENUE I P.O. BOX 3670I LUBBOCK, TEXAS 79452I 1BOB7 797-32N Honorable Bill McAlister, Mayor Members of the City Council City of Lubbock, Texas We have examined the financial statements of the General Fund and Debt Service Fund of the City of Lubbock, Texas, as of and for the years ended September 30, 1980 and September 30, 1979, as listed in the table of contents. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The financial statements presented are only for the General Fund and Debt Service Fund and are not 'intended to present fairly the financial position of the City of Lubbock, Texas, at September 30, 1980 and September 30, 1979, or the results of its operations and the changes in the financial position of its proprietary fund types for the years then ended, in conformity with generally accepted accounting principles. In our opinion, the financial statements referred to above present fairly the financial position of the General Fund and Debt Service Fund of the City of Lubbock, Texas, at September 30, 1980 and September 30, 1979, and the results, of its operations and the changes in its fund balance for the years then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. January 15, 1981 Lubbock, Texas 4uo't'-, I ca y- dat4� 3 MLMDKAU I AMERICAN INSTITUTE of CERTIFIED PUBLIC ACCOUNTANTS I TEXAS sOCIETY OF CERTIFIED PUOUC ACCOUNTANTS GENERAL FUND BALANCE SHEET CITY OF LUBBOCK, TEXAS September 30 September 30 1980 1979 ASSETS Cash and investments $ 1,837,757 $ 96,844 Delinquent taxes receivable, less estimated uncollectible taxes (1980 — $2,923,881; 1979 — $2,817,068) 368,051 354,840 Taxes in litigation — Note B 197,394 156,244 City sales tax receivable 1,899,145 2,208,102 Hotel/motel tax receivable 141,900 141,900 Paving assessments, less estimated uncollectible accounts (1980 — $259,146; 1979 — $258,612) 437,460 528,995 Other accounts receivable, less estimated uncollectible .accounts (1980 — $219849; 1979 — $21,908) 181,711 188,009 Due from other funds 7,340,580 7,420,846 Due from federal government 44,386 135,475 Due from county government 3,870 Due from Civic Lubbock, Inc. 75,544 148,554 Due from school district 68,515 147,155 Prepaid expense 156,647 480,537 Insurance deposit 252,236 Stores inventory 248,732 177,679 Advance to electric fund 4,506,635 3,650,635 Advances to other funds 150,000 Advance to urban renewal 25.000 $ 17,679,457 $ 16,091,921 4 September 30 September 30 1980 1979 LIABILITIES AND FUND EQUITY LIABILITIES: Accounts payable $ 931,487 $ 2,184,488 Accrued liabilities 585,507 436,065 Due to other funds 5,668,504 5,763,134 Due to BCD 18,310 Due to other agencies 1,899 27,191 Revenue collected in advance 185 4,229 Advance from other funds 4,100,000 1,000,000 11,287,582 9,433,417 FUND EQUITY Reserved for encumbrances 191,858 424,891 Reserved for inventory of supplies 177,679 177,679 Reserved for capital improvement 400,000 Reserved for cemetery perpetual care 22,767 22,767 Reserved for special projects 17,269 Reserved for arts 52,308 Unreserved: Designated for receivables 590,014 390,014 Designated for advance to electric revenue" fund loan 500,000 300,000 Undesignated 4,909,557 4,873,576 Total Fund Equity 6,391,875 6,658,504 COMMITMENTS.AND CONTINGENCIES —Notes B, C & D s , 17,679,457 $ 16,091,921 z See notes to financial statements. 5 GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL CITY OF LUBBOCK, TEXAS Revenues: Taxes Licenses and permits In to rgove rnmen to 1 Charges for services Fines and forfeit Miscellaneous Total Revenues Expenditures General government Community relations Finance Tax Management information system Administrative services Personnel , Purchasing Planning division Community facilities Public services Public work Public safety Street lighting Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources: Transfers from other funds Transfers to other funds Year Ended September 30, 198OPrior Fiscal Budget Actual Year Actual $ 21,924,431 $ 21,554,027 $ 20,227,210 336,566 384,213 353,360 544,770 766,884 2,205,597 1,764,393 1,485,653 1,504,545 1,513,000 1,266,261 1,152,254 1,016,070 1,065,094 1,331,057 27,099,230 26,522,132 26,774,023 1,170,925 93,407 639,928 1,078,315 226,556 488,358 241,844 104,408 1,753,911 4,928,595 1,881,997 2,163,391 12,808,651 1,016,630 28,596,916 1,334,878 91,995 611,286 1,025,736 202,458 561,076 252,679 103,157 1,657,867 4,958,489 1,846,260 2,009,338 12,842,568 1,076,474 28 ,574, 261 956,329 97,087 609,923 886,160 176,600 499,136 192,814 92,672 1,600,720 4,997,895 2,189,826 2,294,420 12,241,675 851,954 27,687,211 (1,497,686) (2,052,129) (913,188) 2,598,034 3,490,137 815,686 1,279,658 1,782,348 2,210,479 EXCESS OF REVENUES AND TRANSFERS OVER EXPENDITURES 284,662 Fund Balance At Beginning of Year 6,658,504 Changes in reserves Prior year encumbrances FUND BALANCE AT END OF YEAR $ 6,943,166 See notes to financial statements. 6 158,350 6,658,504 (424,979) $ 6,391,8875 3,011,054 1,967,926 1,043,128 129,940 8,612,298 2,083,734 $ 6,658,504 DEBT SERVICE FUND BALANCE SHEET CITY OF LUBBOCK, TEXAS September 30 September 30 1980 1979 ASSETS Cash and investments - Note B $ 809,003 $ 209,587 Taxes in litigation - Note C 82,563 87,938 Delinquent taxes receivable, less allowance for uncollectible taxes (1980 - $2,180,719; 1979 - $2,133,253) 297,371 290,898. Due from other funds 369,524 474,866 $ 1,558,461 $ 1,063,289 LIABILITIES AND FUND BALANCE Due to general fund Fund balance See notes to financial statements. 7 $ $ 132,133 .1,558,461 931,156 $ 1,558,461 $ 1,063,289 DEBT SERVICE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE CITY OF LUBBOCK, TEXAS Revenue Current tax revenues Less: estimated uncollectible taxes Net Tax Revenues Interest on investments Hotel/motel tax Interest on bond sale Transfer from Electric Revenue Fund Transfer from Water Revenue Fund Total Revenue Expenditures Bond retirement Interest on bonds Fiscal agent's fees Total Expenditures EXCESS REVENUES OVER (UNDER) EXPENDITURES Fund balance at beginning of year FUND BALANCE AT END OF YEAR See notes to financial statements. 8 Year Ended September 30 1980 1979 $ 5,469,394 $ 4,130,468 59,789 106,791 5,409,605 4,023,677 673,655 436,212 260,086 260,212 53,200 210,656 291,358 299,992 311,586 6,999,490 5,230,749 4,235,000 3,841,000 2,134,196 1,804,583 2,989 2,692 6,372,185 5,648,275- 627,305 (417,526) 931,156 1,348,682 1 1,558,461 $ 931,156 NOTES TO FINANCIAL STATEMENTS GENERAL FUND CITY OF LUBBOCK, TEXAS September 30, 1980 Note A — Summary of Significant Accounting Policies Basis of Accounting — The accounting records of the General Fund are maintained on a modified accrual basis. Revenues are recorded on a cash basis except for taxes levied, interest on investments, paving assessments and some miscellaneous charges for services. Expenditures are recorded at the time fund liabilities are incurred. Investments — Investments are carried at par value net of any unamortized premium or discount. Investment earnings and the related interest receivable are recorded in the fund holding the investment, except in the cases of the Internal Service Fund and the Special Assessment Funds, for which the General Fund accounts for the interest receivable and investment earnings. Inventories — Inventories are valued at cost, determined by the average cost method. Note B — Contingencies The city is defendent in various lawsuits alleging damages of approximately $585,000. The lawsuits allege damage from flooding of property caused by improper drainage from City improvements; from fire and explosion; from improper use of City facilities; from civil rights violations; from zoning; employee mis—treatment and other causes. The City Legal Department has advised that the settlement value of these cases will probably be much less than the alleged damages. However, the actual amount of the loss was not reasonably estimable as of September 30, 1980. Beginning with 1975 tax roll certain taxpayers filed suit against the City of Lubbock because of the assessed value placed on their property. The original values as assessed.by the Tax Office and adjusted by the Board of Equalization would generate taxes in the amount of $435,627, of which the taxpayers have agreed to pay $358,235. The difference of $77,392 is being litigated as of September 30, 1980. Note C — Contracts and Commitments The City has a lease agreement with the Lubbock Industrial Foundation dated June 13, 1968, providing for the lease of land to that organization and including an option to sell the land or a portion of such land for $495 per acre. No land has been sold under this option. 9 NOTES TO FINANCIAL STATEMENTS - Continued GENERAL FUND CITY OF LUBBOCK, TEXAS September 30, 1980 Note D - Pension Plans Eligible City employees are covered by the Texas Municipal Retirement System, a state-wide plan. Contributions by the City are based on percentages of salaries and wages. The City's policy is to fund pension costs accrued. The actuarially computed value of vested benefits as of December 31, 1979, exceeded pension fund assets by approximately $9,997,315. City firemen are covered by the Lubbock Firemen's Relief and Retirement Fund, a single employer plan. The City's policy is to fund pension costs accrued. The actuarially computed value of vested benefits as of March 31, 1980, exceeded pension fund assets by approximately $5,336,161. The study concluded that the plan is actuarially sound due to amortizing the unfunded liability in 20 years. City contributions to the retirement funds, charged to operations during the fiscal year for the General Fund were $1,265,756. 10 RESOLUTION WHEREAS, the City Council of the City of Lubbock, Texas desires to receive bids for the purchase of its $10,950,000 General Obligation Bonds, Series 1982; and WHEREAS, First Southwest Company, Dallas, Texas, has been authorized and requested to prepare a Notice of Sale and Bidding Instructions, Official Bid Form and Official Statement containing financial, economic and other data necessary and desirable to attract bids for said bonds; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS: That the attached Notice of Sale and Bidding Instructions, Official Bid Form and Official Statement relative to $10,950,000 City of Lubbock, Texas, General Obligation Bonds, Series 1982, are hereby approved, both as to form and content, and said First Southwest Company is authorized to distribute said Notice of Sale and Bidding Instructions, Official Bid Form and Official Statement to prospective bidders for, and purchasers of, the bonds. PASSED AND APPROVED this the day of , 19 , by the City Council of the City Lubbock, Texas, convened in session with a lawful quorum present. MAYOR ATTEST: Evelyn Gaffga, City Secretary -Treasurer APPROVED AS TO FORM: John C. Ross, Jr., City Attorney Ex1flgl R-6 GENERAL CERTIFICATE THE STATE OF TEXAS § COUNTY OF LUBBOCK § CITY OF LUBBOCK § WE, the undersigned, Mayor and City Secretary -Treasurer, respectively, of the City of Lubbock, Texas, DO HEREBY CERTIFY as follows: 1. This certificate is for the benefit of the Attorney General of the State of Texas, other examining attorneys and holders of the $10,950,000 "City of Lubbock, Texas, General Obligation Bonds, Series 1982", dated June 1, 1982. 2. The following are the duly qualified and acting officers of the City of Lubbock: BILL McALISTER ALAN HENRY M. J. ADERTON E. JACK BROWN JOAN BAKER LARRY J. CUNNINGHAM EVELYN GAFFGA JOHN C. ROSS, JR. JAMES KILCHENSTIEN MAYOR COUNCILMAN COUNCILMAN COUNCILMAN COUNCILWOMAN CITY MANAGER CITY SECRETARY -CITY TREASURER CITY ATTORNEY TAX ASSESSOR -COLLECTOR 3. The City of Lubbock, Texas, is operating under its Home Rule Charter, last amended at an election held January 24, 1967. 4. Ordinance No. and minutes pertaining thereto contained herein are true and correct copies of such instruments as adopted and entered by the City Council of the City of Lubbock, Texas, on the day of , 1982, said ordinance being correctly recorded in the Ordinance Records of said City. 5. The aforesaid ordinance was passed at a meeting held after written notice thereof stating the date, hour, place and subject had been posted for more than 72 hours preceding the day of the meeting at the City Hall on a bulletin board located at a place convenient to the public, all in compliance with the provisions of Section 3A, Article 6252-17, V.A.T.C.S. 6. The assessed value of property for the purpose of taxation in said City of Lubbock as shown by its official tax rolls for the year 1981, being its latest approved official assessment rolls, is and the City's Tax Assessor has duly verified the tax rolls reflecting such amount, which does not include the amount of any exemptions to which property otherwise subject to taxation was entitled pursuant to applicable provisions of the Con- stitution and laws of the State of Texas. WITNESS OUR OFFICIAL SIGNATURES AND THE SEAL OF THE CITY OF LUBBOCK, TEXAS, this the day of , 1982. Mayor, City of Lubbock, Texas City Secretary -Treasurer, (City Seal) City of Lubbock, Texas _x 1/3Ir R-7 DEBT SERVICE REQUIREMENT SCHEDULE THE STATE OF TEXAS § § COUNTY OF LUBBOCK § § CITY OF LUBBOCK § WE, the undersigned, Mayor and City Secretary -Treasurer, respectively, of the City of Lubbock, Texas, DO HEREBY CERTIFY that a "Debt Service Requirement Schedule", showing the amount required for the payment of principal of and interest on all presently outstanding tax obligations of the issuer which become due and payable in the fiscal years as shown (including current year's payments made to date), and the amount estimated to be required in each fiscal year as shown for the payment of principal of and interest on the proposed series of obligations, is attached hereto. WITNESS OUR OFFICIAL SIGNATURES AND THE SEAL OF THE CITY OF LUBBOCK, TEXAS, this the day of , 1982. (City Seal) Mayor, City of Lubbock, Texas City Secretary -Treasurer City of Lubbock, Texas _'1ZX4_1 DEBT SERVICE REQUIREMENTS GENERA OBLIGATION BONDS Fiscal Grand Total Less: Less: Grand Total Year General Obli- Waterworks Sewer System General Pur- % of Ending Outstanding Bonds The Bonds gation Bond Tax Bond Tax Bond pose Bond Principal 9-30 Principal Interest Tota Princ__T__r Interest Total Re uirements Requirements Re uirements Re uirements Retired 1982 4,760,000 4,195,282 8,955,282 ,955,282 4,4 88,926 489,63 4,007,325 1983 4,650,000 3,500,274 8,150,274 $ 525,000 $ 1,564,063 $ 2,089,063 10,239,337 3,894,490 651,871 5,692,976 1984 4,645,000 3,234,915 7,879,915 525,000 1,270,313 1,795,313 9,675,228 3,758,663 607,203 5,309,362 1935 4,495,000 2,971,232 7,466,232 550,000 1,203.125 1,753,125 9,219,357 3,577,210 563.512 5,078,635 1986 4,410,000 2,709,337 7,119,337 550,000 1,134,375 1,684,375 8,803,712 3,406,268 528,727 4,868,717 34.56% 1987 4,260,000 2,449,752 6,709,752 550,000 1,065,625 1,615,625 8,325.377 3,219,268 508,011 4,598,098 1988 4,135,000 2,193.464 6,320,164 550,000 996,875 1,546,875 7,875,339 3,058,635 466,094 4,350,610 1989 3,945,000 1,942,122 5,807,122 550,000 928,125 1,478,125 7,365,247 2,893,223 446,955 4,025,069 1990 3,785,000 1,707,413 5,492,413 550,000 859,375 1,409.375 6,901,788 2,768,416 395.937 3,737,435 1991 3,640,D00 1,480,297 5,120,297 550,000 790,625 1.340,625 6.460,922 2,648,346 311,382 3,501,194 65.55% 1992 3,295,000 1,271,005 4,566,005 550,000 721,875 1,271,875 5,837,890 2,522,329 273,673 3,041,878 1993 2,695,000 1,077,799 3,772,799 550,000 653,125 1,203,125 4,975,924 2,338,080 260,966 2,376,878 1994 2,305,000 905,653 3,210,653 550,000 584,375 1,134,375 4,345,028 2,181,570 248,187 1,915,271 1995 1,810,000 756,472 2,566,472 550,000 515,625 1,065,625 3,632,097 2,050,323 236,320 1,345,454 1996 1,810,000 618,211 2,428,211 550,000 446,875 996,875 3,425,086 1,936,744 223,307 1,265,035 85.73% 1997 1,730,000 478,498 2,208,498 550,000 378,125 928,125 3,136,623 1,821,947 210,208 1,304,468 1998 1,730.000 344,485 2,074,485 550,000 309,375 859,375 2,933,860 1,708,032 197,411 1,028,417 1999 1,605,000 215,444 1,820,444 550,000 240,625 790,625 2,611,069 1,575,122 159,786 876,161 2000 1,165,000 109,738 1,274,738 550,000 171,875 721,875 1,996,613 1,173,052 113,235 710,326 2001 840,000 33,600 873,600 550,000 103,125 653,125 1,526,725 844,946 64,986 616,793 99.24% 2002 550,000 34,375 584,375 584,375 58,145 526,230 100.00% $61,710,000 $32,194,993 $93,904,993 $10,950,000 $13,971,876 $24,921.876 $118,826,869 $51,835,590 E 7,014,947 E59,976,332 Note: Interest on the Bonds has been calculated at the rate of 12 1/2% for purposes of illustration. TAX ADEQUACY All General Obligation Bonds (including the Bonds) ... Maximum Principa amend-fntereSt Requirements, 19B3--------r--------------------------------------------- $10,239,337 $0.40 Tax Rate @ 95% Collection Produces--------------------------------------------------------------- $10,265,932 ORDINANCE NO. AN ORDINANCE by the City Council of the City of Lubbock, Texas, relating to $10,950,000 "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1982", dated June 1, 1982, providing for the sale of the bonds and establishing interest rates for said bonds, enacting pro- visions incident and related to the purpose and subject of this ordinance and providing an effective date. WHEREAS, on the day of , 1982, the City Council of the City of Lubbock, Texas, duly passed and adopted an Ordinance authorizing the issuance of $10,950,000 "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1982" (the "Bonds"); and WHEREAS, by Notice of Sale and Official Statement dated , this City Council duly offered the Bonds for sale at Competitive Bidding, said bids to be opened and sale awarded on the day of 1928, at o'clock ,M.; and WHEREAS, pursuant to said Notice of Sale, bids for the purchase of the Bonds have been received by the City Council and publicly opened, read aloud and tabulated; and WHEREAS, it is hereby found and determined that the bid of for the purchase of the Bonds was the best bid received, that said bid was duly submitted and should be accepted and the Bonds sold to said bidder; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1: That the bid of for the purchase of the $10,950,000 "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1982", dated June 1, 1982, at par plus accrued interest and a premium of $ (so as to provide an effective interest rate of $) is hereby accepted and said Bonds are hereby sold t— o d bidder at such price. .SECTION 2: That as provided in the bid accepted by the City'— Council for the purchase of the $10,950,000 "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1982", dated June 1, 19.82, the bonds of said series shall bear interest at the following rates per annum, to wit: BOND NUMBERS MATURITY COUPON (All Inclusive) February l AMOUNT RATE 1 to 105 1983 $525,000 % 106 to 210 1984 525,000 % 211 to 320 1985 550,000 % 321 to 430 1986 550,000 % 431 to 540 1987 550,000 % 541 to 650 1988 550,000 % 651 to 760 1989 550,000 % 761 to 870 1990 550,000 % 871 to 980 1991 550,000 % 981 to 1090 1992 550,000 % 1091 to 1200 1993 550,000 % 1201 to 1310 1994 550,000 % 1311 to 1420 1995 550,000 % 1421 to 1530 1996 550,000 % 1531 to 1640 .1997 550,000 % 1641 to 1750 1998 550,000 % 1751 to 1860 1999 550,000 % 1861 to 1970 2000 550,000 % 1971 to 2080 2001 550,000 % 2081 to 2190 2002 550,000 % SECTION 3: This ordinance shall take effect and be in force immediately from and after its final passage, and it is so ordained. PASSED AND APPROVED on first reading the day of , 1982. PASSED AND APPROVED on second and final reading this the _ day of , 1982. Mayor, City of Lubbock, Texas ATTEST: City Secretary, City of Lubbock, Texas (City Seal) MINUTES PERTAINING TO PASSAGE AND ADOPTION OF AN ORDINANCE AUTHORIZING THE SALE OF AND ESTABLISHING INTEREST RATES FOR THE $10,950,000 "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1982", DATED JUNE 1, 1982 THE STATE OF TEXAS § § COUNTY OF LUBBOCK § CITY OF LUBBOCK § ON THIS, the day of , 1982, the City Council of the City of Lubbock, Texas, convened in session at the regular meeting place thereof in the City Hall, the meeting being open to the public and notice of said meeting having been given as prescribed by Article 6252-17, Section 3A, V.A.T.C.S., with the following members being present and in attendance, to wit: BILL McALISTER MAYOR ALAN HENRY COUNCILMAN M. J. ADERTON COUNCILMAN E. JACK BROWN COUNCILMAN JOAN BAKER COUNCILWOMAN' and LARRY CUNNINGHAM CITY MANAGER and EVELYN GAFFGA CITY SECRETARY also being present; and with the following absent: , constituting a quorum; and among other business considered at said meeting, an ordinance was submitted for reading and passage, such ordinance being entitled as follows "AN ORDINANCE by the City Council of the City of Lubbock, Texas, relating to $10,950,000 "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1982', dated June 1, 1982, providing for the sale of the bonds and establishing interest rates for said bonds, enacting provisions incident and relating to the purpose and subject of this ordinance and providing an effective date. Councilmember then moved that the ordinance be passed on its first reading to take effect immediately from and after its final passage. The motion was seconded by Councilmember and carried by the following vote: YEAS: Mayor McAlister and Councilmembers Henry, Aderton, Brown and Baker. NAYS: None. The Presiding Officer then announced the passage of the ordinance on first reading. MINUTES APPROVED, this the day of , 1982. Mayor, City of Lubbock, Texas ATTEST: City Secretary, City of Lubbock, Texas (City Seal) c eIT P-10 CERTIFICATE OF CITY SECRETARY THE STATE OF TEXAS § COUNTY OF LUBBOCK § § CITY OF LUBBOCK § I, -the undersigned, City Secretary of the City of Lubbock, Texas, DO HEREBY CERTIFY that the above and foregoing is a true and correct copy of the Minutes pertaining to the first reading of Ordinance No. providing for the sale of $10,950,000 "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1982" and establishing interest rates therefor, passed on first reading by the City Council of said City on the day of , 1982, which ordinance is duly recorded in the Minutes of said City Council. I FURTHER CERTIFY that the meeting at which said ordinance was passed on first reading was open to the public and notice of such meeting was given in advance thereof in such manner as to be in compliance with the provisions of Article 6252-17, Section 3A, V.A.T.C.S. IN WITNESS WHEREOF, I have hereunto signed my name officially and affixed the seal of said City, this the day of , 1982. City Secretary, City of Lubbock, Texas (City Seal) MINUTES PERTAINING TO PASSAGE AND ADOPTION OF AN ORDINANCE AUTHORIZING THE SALE OF AND ESTABLISHING INTEREST RATES FOR THE $10,950,000 "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1982", DATED JUNE 1, 1982 THE STATE OF TEXAS § § COUNTY OF LUBBOCK § § CITY OF LUBBOCK § ON THIS, the day of , 1982, the City Council of the City of Lubbock, Texas, convened in session at the regular meeting place thereof in the City Hall, the meeting being open to the public and notice of said meeting having been given as prescribed by Article 6252-17, Section 3A, V.A.T.C.S., with the following members being present and in attendance, to wit: BILL MCALISTER MAYOR ALAN HENRY COUNCILMAN M. J. ADERTON COUNCILMAN E. JACK BROWN COUNCILMAN JOAN BAKER COUNCILWOMAN and LARRY CUNNINGHAM CITY MANAGER and EVELYN GAFFGA CITY SECRETARY also being present; and with the following absent: , constituting a quorum; and among other business considered at said meeting, an ordinance was submitted for second reading and final passage, such ordinance being entitled as follows: "AN ORDINANCE by the City Council of the City of Lubbock, Texas, relating to $10,950,000 "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1982', dated June 1, 1982, providing for the sale of the bonds and establishing interest rates for said bonds, enacting provisions incident and relating to the purpose and subject of this ordinance and providing an effective date." Councilmember then moved that the ordinance be passed on its second and final reading to take effect immediately from and after its final passage. The motion was seconded by Councilmember and carried by the following vote: YEAS:- Mayor McAlister and Councilmembers Henry, Aderton, Brown and Baker. NAYS: None. The Presiding Officer then announced that the above ordinance had been passed on first reading on the day of , 1982,-and-has been passed now on i— t -second and final reading on the date shown below. MINUTES APPROVED, this the day of , 1982. Mayor, City of Lubbock, Texas ATTEST: City Secretary, City of Lubbock, Texas (City Seal) CERTIFICATE OF CITY SECRETARY THE STATE OF TEXAS § COUNTY OF LUBBOCK § CITY OF LUBBOCK § I, the undersigned, City Secretary of the City of Lubbock, Texas, DO HEREBY CERTIFY that the above and foregoing is a true and correct copy of Ordinance No. providing for the sale of $10,950,000 "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1982" and establishing the interest rates therefor (and Minutes pertaining to its second and final reading), finally passed and adopted by the City Council of said City on the day of , 1982, which ordinance is duly recorded in the Minutes of said City Council. I FURTHER CERTIFY that the said ordinance was finally passed at a meeting open to the public and notice of such meeting was given in advance thereof in such manner as to be in compliance with the provisions of Article 6252-17, Section 3A, V.A.T.C.S. IN WITNESS WHEREOF, I have hereunto signed my name officially and affixed the seal of said City, this the day of 1982. City Secretary, City of Lubbock, Texas (City Seal) RESOLUTION APPROVING FORM AND CONTENT OF OFFICIAL STATEMENT THE STATE OF TEXAS § COUNTY OF LUBBOCK § CITY OF LUBBOCK § ON THIS, the day of , 1982, the City Council of the City of Lubbock, Texas, convened in session at the regular meeting place thereof in the City Hall, the meeting being open to the public and notice of said meeting having been given as prescribed by Article 6252-17, Section 3A, V.A.T.C.S., with the following members being present and in attendance, to wit: BILL McALISTER MAYOR ALAN HENRY COUNCILMAN M. J. ADERTON COUNCILMAN E. JACK BROWN COUNCILMAN JOAN BAKER COUNCILWOMAN and LARRY CUNNINGHAM CITY MANAGER and EVELYN GAFFGA CITY SECRETARY also being present; and with the. following absent: , constituting a quorum; and among other business considered at said meeting, a resolution was submitted to the City Council for passage and adoption, such resolution being as follows: WHEREAS, it is provided in the Official Statement dated 1982, concerning the sale of $10,950,000 CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1982", dated June 1, 1982, 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 the Official Statement, and any addenda, supplement or amendment thereto, and authorize its further use in the reoffering of the bonds by the Purchaser;- now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: That the Official Statement dated , 1982, prepared in connection with the issuance and sale of $10,950,000 "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1982% dated June 1, 1982, is hereby approved as to form and content_ by this Council and this governing body hereby authorizes the further use of said Official Statement in the reoffering of the bonds by the Purchaser. Councilmember the made a motion that the resolution be finally passed and adopted. The motion was seconded by Councilmember and carried by the following vote: YEAS: Mayor McAlister and Councilmembers Henry, Aderton, Brown and Baker. NAYS: None. Cix� (?- 1 1 The Presiding Officer then announced that the resolution had been finally passed and adopted. PASSED AND APPROVED, this the day of 1982. Mayor, City of Lubbock, Texas ATTEST: City Secretary, City of Lubbock, Texas (City Seal) CERTIFICATE OF CITY SECRETARY THE STATE OF TEXAS § § COUNTY OF LUBBOCK § § CITY OF LUBBOCK § I, the undersigned, City Secretary of the City of Lubbock, Texas, DO HEREBY CERTIFY that the above and foregoing is a true and correct copy of a resolution approving the Official Statement prepared in connection with the issuance and sale of $10,950,000 "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1982" (and Minutes pertaining to its adoption), passed by the City.Council of said City on the day of 1982, and duly recorded in the Minutes of said City Council. I FURTHER CERTIFY that said resolution was passed at a meeting open to the public and notice of said meeting was given in advance thereof in such manner as to be in compliance with the provisions of Article 6252-17, Section 3A, V.A.T.C.S. IN WITNESS WHEREOF, I have hereunto signed my name officially and affixed the seal of said City, this the day of _ 1982. City Secretary, City of Lubbock, Texas (City Seal) (`` (01 CERTIFICATE AS TO OFFICIAL STATEMENT THE STATE OF TEXAS § § COUNTY OF LUBBOCK § CITY OF LUBBOCK § WE, the undersigned, Mayor and City Secretary of the City of Lubbock, Lubbock County, Texas, DO HEREBY CERTIFY that to the best of our knowledge and belief: (a) The descriptions and statements of or pertaining to the City contained in its Official Statement dated , 1982, and any addenda, supplement or amendment thereto, for its $10,950,000 General Obligation Bonds, Series 1982, on the date of such Official Statement, on the date of sale ct 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 mis- leading; (c) Insofar as the descriptions and statements, including financial data, of or pertaining to entities, other than the City, and their activities contained in such Official Statement are concerned, such statements and data have been obtained from sources which the City believes to be reliable and that the City has no reason to believe that they are untrue in any material respect; and (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. TO CERTIFY WHICH, witness our hands and the seal of said City as of the day of , 1982, same being the date of delivery of the bonds herein described. (City Seal) Mayor, City of Lubbock, Texas City Secretary, City of Lubbock, Texas �Xtf 161T �3 TREASURER'S RECEIPT THE STATE OF TEXAS COUNTY OF LUBBOCK THE UNDERSIGNED HEREBY CERTIFIES as follows: (1) That this certificate is executed and delivered Lvith respect to the following described bonds: "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1982" dated June 1, 1982 in the aggregate principal amount of $ 10, 950, 000 (2) That on the date shown below as the date of execution and delivery of this instrument, the said bonds were delivered to the purchaser thereof, namely: (3) That all of said bonds have been paid for in full by the purchaser concurrently with the deliv- ery of this certificate, and the issuer of said bonds has received the agreed purchase price for the said bonds, as follows: PRINCIPAL AMOUNT...............................................................$ 10,950,000.00 ACCRUED INTEREST..............................................................8 PLUSPREMIUM........................................................................$ TOTAL AMOUNT RECEIVED ON DELIVERY OF BONDS.. $ (4) At the time of such delivery there were no matured coupons attached to said bonds and all un- matured coupons were attached to said bonds. (5) That the undersigned has executed this certificate in the capacity hereinafter shown for and on behalf of the said issuer of bonds. EXECUTEDAND DELIVERED this ............ ........................................................................... ....... City Treasurer City of Lubbock, Texas The foregoing signature of the foregoing designated official of the issuer is hereby certified as genuine. (BANK SEAL) (Bank) LAW OFFICES D�unas, liugu—iu, Boothman and Dior 1212 l'nited National 11ank Building Dallas, Texas 75201 (0*? SIGNATURE AND NO•LITIGATION CERTIFICATE THE STATE OF TEXAS COUNTY OF LUBBOCK WE, the undersigned, hereby certify as follows: (1) That this certificate is executed and delivered with refezence to the following described bonds: "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1982" dated June 1, 1982 in the aggregate principal amount of $ 10,950, 000 (2) That the undersigned officially executed and signed or countersigned said bonds and the inter- est coupons attached thereto by causing their facsimile signatures to be placed on each of said bonds and interest coupons and they hereby adopt said facsimile signatures as their own and declare that the same constitute their signatures the salve as if they had manually signed each of said bonds and interest coupons. (3) That on the date of such execution in such manner and on the date hereof, we were the duly chosen, qualified and acting officers indicated therein and authorized to execute the same. (4) That the legally adopted proper and only official corporate seal of the issuer is impressed, im- printed or lithographed on all of said bonds and impressed on this certificate. (5) We further certify that no litigation of any nature is now pending or, to our knowledge, threat- ened restraining or enjoining the issuance and delivery of said bonds or the levy and collection of taxes to pay the principal and interest, or in any manner questioning the proceedings and authority under which the same is made or affecting the validity of the bonds thereunder; that neither the corporate ex- istence or boundaries nor the title of the present officers to their respective offices is being contested, and that no authority or proceedings for the issuance of said bonds have been repealed, revoked or rescinded. (6) That no petition or other request has been filed with or presented to any official of the issuer of these bonds requesting that any proceedings authorizing the same be submitted to a referendum or other election. EXECUTED AND DELIVERED this............ (ISSUER'S SEAL) SIGNATURE (BANK SEAL) By LAW OFFICES Dumas. Enguenin, Boothman and Morrow 1212 United National Bank Building Dallas, Texas 752o1 OFFICIAL TITLE Mayor.,_.. C ty.,of _Lubbq k,._._T.-as__._.,_... City Secretary, City of Lubbock, Texas ..............._...._........._..................................................... The signatures of the officers subscribed above are hereby certified to be true and genuine. Bank Authorized Officer �TQ �1 /017 THE STATE OF TEXAS COUNTY OF LUBBOCK Before me _-8ie-64GCee a Notary Public in and for Lubbock County, Texas on this day personally appeared —T-"4-4 Fo. em laof the Southwestern Newspa- Sail pers Corporation, publishers of the Lubbock Avanche- ournal — Morning, Evening and Sunday, who being by me duly sworn did depose and say that said newspaper has been published continuously for more than fifty-two weeks prior to the first insertion of this VOVA-,$818•Q4 No: 526145 at Lubbock County, Texas and the attached print- ed copy of the Notice is a true copy of the original and was printed in the Lubbock Avalanche -Journal on the following dates: F-hrO■r" 45—& 22t 4982. K225 Y` `/gP�GIl1 nf/ ny mu Order be further on notice CCOYiit Nanage '4g and IlMalhng ^^ xWan, that the date of hearing above de• drains and apfters, and other im- wovements Incidental thereto, fit. fined Is specifically decreed to be LUBBOCK AVALANCHE -JOURNAL coding acquisition of land for of tp &0m of p oI1k the 99,hq M n tDistrict he Courrt f- dralnag! WrpOxs end drainage arm modific°tions for mosquito Lubbock County, Texas In theLub- Southwestern Newspapers Cor oration P control; the eing more ParPetition ;hock' County Courthouse,. v01 described in fie Lubbock,Petlllon of the Broatlway, In the City of Lubbock, said City o1 ock'Texas, on file Lubbock County, Texas. Be further M the aforemenlloned caux. This on nOti[e that al such time. place Wbeeedinv is flied ai a class action and tlate the Court WIII proceetl Subscribed •apd, sworn ll& before me this—22nday of against the taxpayers, pro If" uoon full arW final hearing upon the owners, and residersls. i1 any, of the merih W all matters and prayers eaitl public a9enCY, antl ail rN)nre5f- within /he Petlllon of the City of J dents. If any, owninv property Lubbock,.Texas, then still gentling. • `t` therein, and/or all others having or and all other relevant matters as to 's Claiming any right, title, or interest the validity of the bond vrocedures v - AMA a an any Properly or funds to be al. an validhy thereof then before the W1$ C, W)TAI PUBLIC fected by the proceedings a tl/o' court by way at consolitletion, in. �f I y Alstj n).R ,; i•ic_ r� r v ; 2 —;r a �y,ys the issuance of me securities. or in- teryentloh orotherwix, if any. tt}} far ssfetl or afteaed in any way The Clerk oP this Crt is hereby Rt•f! CQ�J' Gil �f� e�e etYerw�ent /b�thls 1' clue�e' Offor ecrioniandr.e exgpenci- ear b eetn eitinedin the Of this tibo Ic FORM SSIe c " aroceediry ara hereby WrMer nmf• I Nrts of /untls, taken or made - Avalanche-Jgurnah which is a fBleadil that at the date. time antl elate annin. .,.., _ - r�r I`'— CITATI01 THE TO: All 1 ars and ty of L agm Y, and. 0 and/o ' inenv or affected in any Way i y, or by the Proceedings. rro an actionc end exPentli- of funds, takenor made propoxtl to be Taken or in Connection with or affeci- 1e securities. in general and without narrdng them, e Attorney Cederal of Tax - after the the date Court se