HomeMy WebLinkAboutResolution - 1339 - Notice Of Sale - FSC - Texas General Obligation Bonds Bids - 03_10_1983A, r- RESOLUTION 1339 - 3/10/83
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RESOLUTION
WHEREAS, the City Council of the City of Lubbock, Texas desires to
receive bids for the purchase of its $18,775,000 General Obligation Bonds,
Series 1983; 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 $18,775,000 City of Lubbock,
Texas General Obligation Bonds, Series 1983, 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 loth day of March, 1983, by the City
Council of the City of Lubbock, Texas, convened in regular session with a
lawful quorum present.
ATTEST:
Ci y Secret r
NOTICE OF SALE
AND
BIDDING INSTRUCTIONS
ON
$18,775,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
GENERAL OBLIGATION BONDS, SERIES 1983
Selling Thursday, April 28, 1983, at 10:30 AM, CDT
THE SALE
Bonds Offered for Sale at Competitive Bidding_... The City of Lubbock, Texas (the "City"), is
offering or sae Its benera-FW igation Bonds, Series 1983 (the "Bonds").
Address of Bids.. Sealed bids, plainly marked "Bid for Bonds", should be addressed and
delivered to "Mrs. Evelyn E. Gaffga, City Secretary, City of Lubbock, Texas", prior to 10:30
AM, CDT, on the date of the bid opening. All bids must be submitted on the Official Bid Form,
without alteration or interlineation.
Place and Time of Bid Opening . The City Council will open and publicly read the bids for the
purchase of t e on s— s at the City Hall, Lubbock, Texas, at 10:30 AM, CDT, Thursday, April 28,
1983.
Award of the Bonds ... The City Council will take action to award the Bonds (or reject all bids)
promptly after t e opening of bids, and adopt an Ordinance authorizing the Bonds and approving
the Official Statement (the "Ordinance").
THE BONDS
Description The Bonds will be dated May 15, 1983, and interest coupons will be due on
e rFT uary 15, 1984, and each August 15 and February 15 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 15 in each
year as follows:
Principal
Principal
Principal
Year
Amount
Year
Amount
Year
Amount
TW
-STZFW
TW
a
T%7
5956,050
1985
925,000
1992
925,000
1998
950.000
1986
925,000
1993
950,000
1999
950,000
1987
925,000
1994
950,000
2000
950,000
1988
. 925,000
1995
950,000
2001
950,000
1989
925,000
1996
950,000
2002
950,000
1990
925,000
2003
950.000
The City reserves the right, at its option, to redeem Bonds maturing February 15, 1994. through
February 15, 2003, both inclusive, in whole or any part thereof, on February 15, 1993, 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"
asis, and 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 3% 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.
- i -
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Basis for Award For the purpose of awarding the sale of the Bonds, the interest cost of each
bid will be computed by determining, at the rate or rates specified therein, the total dollar
cost of all interest on the Bonds from the date thereof to their respective maturities, using
the table of Bond Years herein, and deducting therefrom the premium bid, if any. Subject to the
City's right to reject any or all bids and to waive any irregularities except time of filing,
the Bonds will be awarded to the bidder (the "Purchaser"j 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 o .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 o 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.
ex�Deliver The Bonds will be tendered for delivery to the Purchaser at any bank in Austin,
t�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 June 2, 1983, and it is understood and agreed
that the Purchaser will accept delivery and make payment for the Bonds by 10:00 AM, CDT, on June
2, 1983, or thereafter on the date the Bonds are tendered for delivery, up to and including June
16, 1983. If for any reason the City is unable to make delivery on or before June 16, 1983,
then the City shall immediately contact the Purchaser and offer to allow the Purchaser to
extend his offer for an additional thirty days. If the Purchaser does not elect to extend his
offer within 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 Deliver ... The obligation of the Purchaser to take up and pay for the Bonds is
subject o e urc aser's receipt of (a) the legal opinion of Messrs. Dumas, Huguenin,
Boothman & Morrow, Dallas, Texas, Bond Counsel for the City ("Bond Counsel"), (b) the no -
litigation certificate,, and (c) the certification as to the Official Statement, all as further
described in the Official Statement.
Legal Opinions ... The Bonds are offered when, as and if issued, subject to the unqualified
legs opinion of the Attorney General of the State of Texas, and Messrs. Dumas, Huguenin,
Boothman & Morrow (see Legal Opinions in Official Statement); the opinion of said firm will be
printed on the Bonds.
Certification of Official Statement ... At the time of payment for and delivery of the Bonds,
the City will execute and deliver to the Purchaser a certificate in the form set forth in the
Official Statement.
Ch n e in Tax Exempt Status .. At any time before the Bonds are tendered for delivery, the
Purchaser maywithdraw his bid if the interest received by private holders from bonds of the
same type and character shall be declared to'be taxable income under present Federal income tax
laws, either by ruling of the Internal Revenue Service or by a decision of any Federal court, or
shall be declared taxable or be required, :to be taken into account in computing any Federal
income taxes, by the terms of any Federal income tax lair enacted subsequent to the date of this
Notice of Sale and Bidding Instructions.
GENERAL
Financial Advisor's Right to Bid ... First Southwest Company, the City's Financial Advisor,
reserves the right to bid on the Bonds.
Blue _Sky Lawwss ... By submission of his bid, the Purchaser represents that the sale of the Bonds
in states other than Texas will be made only pursuant to exemptions from registration or, where
necessary, the Purchaser will register the Bonds in accordance with the securities law of the
states in which the Bonds are offered or sold. The City agrees to cooperate with the Purchaser,
at the Purchaser's written request and expense, in registering the Bonds or obtaining an
exemption from registration in any state where such action is necessary.
Not an Offer to Sell ... This Notice of Sale does not alone constitute an offer to sell the
Bonds, but is mere y notice of the sale of the Bonds. The offer to sell the Bonds is being made
by means of the Notice of Sale and Bidding Instructions, the Official Bid Form and the Official
Statement. Prospective purchasers are urged to carefully examine the Official Statement to
determine the investment quality of the Bonds.
Issuance of Additional Bonds ... The City plans to sell additional General Obligation Bonds
over the next severs 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.
Municipal Bond Insurance ... In the event these Bonds are qualified for municipal bond insur-
ance, and the Purchaser desires to purchase such insurance, the cost therefor will be paid by
the Purchaser.
The Official Statement ... The City will furnish to the Purchaser, without cost, 100 copies of
e 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 Copies of Notice Bid Form and Statement ... A limited number of additional copies
6771is Notice of Sale and Bidding instructions, the Official Bid Form and the Official
Statement, as available over and above the normal mailing, may be obtained at the offices of
First Southwest Company, Investment Bankers, 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 waiveirregularities, except time
of filing.
The City Council, by resolution adopted this loth day of March, 1983, approved the form and
content of the Notice of Sale and Bidding Instructions, the Official Bid Form and Official
Statement, and has authorized the use thereof in its initial offering of the Bonds. On the date
of the sale, the City Council will, in the ordinance authorizing the Bonds, reconfirm its
approval of the form and content of the Official Statement, and any addenda, supplement or
amendment thereto, and authorize its further use in the reoffering of the Bonds by the
Purchaser.
BILL McALISTER
Mayor
ATTEST:
EVELYN E. GAFFGA
City Secretary
March 10. 1983
BOND YEARS
Accumulated
Year
Amount
Bond Years
Bond Years
Year
1984 $
925,000
693.75
693.75
1984
1985
925,000
1.618.75
2,312.60
1985
1986
925,000
2,543.75
4,856.25
1986
1987
925,000
3,468.75
8,325.00
1987
1988
925,000
4.393.75
12,718.75
1988
1989
925,000
5,318.75
18,037.50
1989
1990
925,000
6,243.75
24,281.25
1990
1991
925,000
7,168.75
31,450.00
1991
1992
925,000
8,093.75
39,643.75
1992
1993
950,000
9,262.50
48,806.25
1993
1994
950,000
10,212.50
59,018.75
1994
1995
950,000
11,162.50
70,181.25
1995
1996
950.000
12,112.50
82,293.75
1996
1997
950,000
13,062.50
95,356.25
1997
1998
950,000
14,012.50
109,368.75
1998
1999
950,000
24,962.50
124,331.25
1999
2000
950.000
15,912.50
140,243.75
2000
2001
950.000
16,862.50
157,106.25
2001
2002
950,000
17,812.50
174,918.75
2002;
2003
950.000
19,762.50
193,681.25
2003
Average Maturity -------------------------------- 10.316 Years
r OFFICIAL
BID FORM
Honorable Mayor and City Council
April 28, 1983
City of Lubbock
Lubbock, Texas
Members of the Council:
Reference is made to your Official *Statement and
Notice of Sale
and Bidding Instructions, dated
March 10, 1983. of $18,775,000 CITY OF LUBBOCK,
TEXAS GENERAL
OBLIGATION BONDS, SERIES 1983,
both of which constitute a part hereof.
For your legally issued Bonds, as described in said Notice of Sale and Bidding Instructions and
Official Statement, we will pay you par and accrued
interest
from date of issue to date of
delivery to us, plus a cash premium of S
for Bonds maturing and bearing interest
as follows:
Interest
Interest
Interest
Maturity Rate Maturity
Rate
Maturity Rate
2-15-1984 % 2-15-1991
%
2-15-1997 %
2-15-1985 % 2-15-1992
%
2-15-1998 %
2-15-1986 % 2-15-1993
%
2-15-1999 %
2-15-1987 % 2-15-1994
%
2-15-2000 %
2-15-1988 2-15-1995
%
2-15-2001 %
2-15-19B9 % 2-15-1996
%
2-15-2002 %
2-15-1990 %
2-15-2003 %
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 % -
We are having the bonds insured by
Check of the Bank, ,
n the amount of $375,500.00, which represents our Good Fait Deposit (is attache ereto 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 10:00 AM, CDT, on June 2. 1983, or thereafter on the date the
Bonds are tendered for delivery, pursuant to the terms set forth in the Notice of Sale and
Bidding Instructions.
Respectfully submitted,'
By
Authorized Representative
ACCEPTANCE CLAUSE
The above and foregoing bid is hereby in all things accepted by the City of Lubbock, Texas, this
the 28th day of April, 1983.
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 March 10, 1983
INTEREST EXEMPT, IN THE OPINION OF BOND COUNSEL, FROM PRESENT FEDERAL INCOME
TAXES UNDER EXISTING STATUTES, REGULATIONS AND COURT DECISIONS
$18,775,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
GENERAL OBLIGATION BONDS, SERIES 1983
Dated: May 15, 1983 Denomination: $5,000
Principal and semi-annual interest (February 15 and August 15) 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 15, 1984.
Coupon bearer bonds, not registrable.
These bonds (the "Bonds") were authorized at elections held on various dates, and constitute
direct and voted general obligations of the City of Lubbock, payable from an ad valorem tax
levied, within the limits prescribed by law, on taxable property located within the City.
MATURITY SCHEDULE
Amount
Maturitx Rate Yield
Amount
Maturity Rate Yield
925,000
2-15-1985
950,000
2-15-1995*
925,000
2-15-1986
950,000
2-15-1996*
925,000
2-15-1987
950,000
2-15-1997*
925,000
2-15-1988
950,000
2-15-1998*
925,000
2-15-1989
950,000
2-15-1999*
925,000
2-15-1990
950,000
2-15-2000*
925,000
2-15-1991
950,000
2-15-2001*
925,000
2-15-1992
950,000
2-15-2002*
950,000
2-15-1993
950,000
2-15-2003*
* The City reserves the right, at its option, to redeem Bonds maturing February 15, 1994,
through February 15, 2003, both inclusive, in whole or any part thereof, on February 15, 1993,
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.
a
Texas.
Delivery: Anticipated on or about June 2, 1983.
TABLE OF CONTENTS
Page
Official Statement:
Descriptionof the Bonds -------------------------------------------------------
1
ElectedOfficials -------------------------------- ----------------------------
3
AppointedOfficials------------------------------------------------------------
3
Consultantsand Advisors-------------------------------------------------------
3
IntroductoryStatement---------------------------------------------------------
4/5
Valuation and Debt Information -------------------------------------------------
6/7
AdValorem Taxation-----------------------------------------------------------
7/8
Other Liabilities--------------------------------------------------------------
9/11
Funded Debt Limitation---------------------------------------------------------
12
Valuation and Funded Debt History ----------------------------------------------
12
Taxable Assessed Valuations by Category ----------------------------------------
12/13
Estimated Taxable Assessed Valuations ------------------------------------------
13
Authorized General Obligation Bonds --------------------------------------------
13
Estimated General Obligation Bond Program --------------------------------------
13-
Authorized But Unissued General Obligation Bonds of Overlapping Subdivisions ---
14
Estimated Overlapping Funded Debt Payable From Ad Valorem Taxes ----------------
14
TaxData-----------------------------------------------------------------------
14/15
Tax Rate Limitations-----------------------------------------------------------
15
1% Municipal Sales Tax ---------------------------------------------------------
15
Estimated 1982-83 Tax Year Overlapping Taxes -----------------------------------
16
TopTen Taxpayers--------------------------------------------------------------
16
Interest and Sinking Fund Management Index -------------------------------------
16
Debt Service Requirements - General Obligation Bonds ---------------------------
17
TaxAdequacy-------------------------------------------------------------------
17
Computation of Self -Supporting Debt --------------------------------------------
18
PensionFunds------------------------------------------------------------------
18/20
General Fund Revenues and Expenditures -----------------------------------------
1 21
Lubbock Power and Light --------------------------------------------------------
22/23
Condensed Statement of Operations - Electric Light and Power System ------------
24
The Waterworks System----------------------------------------------------------
24/25
Condensed Statement of Operations - Waterworks System --------------------------
25
Increasein Water Rates -------------------------------- ------------------------
25
TheSewer System---------------------------------------------------------------
26
Condensed Statement of Operations - Sewer System -------------------------------
26
AirportSystem-----------------------------------------------------------------
26/27
Condensed Statement of Operations - Airport System -----------------------------
27
General Information Regarding the City and Its Economy ----------------------=--
28/34
Ratings------------------------------------------------------------------------
35
TaxExemption------------------------------------------------------------------
35
Registration and Qualification of Bonds for Sale -------------------------------
35
Legal Investments in Texas -----------------------------------------------------
35
Legal Opinions and No -Litigation Certificate -----------------------------------
35
Authenticity of Financial Information ------------------------------------------
36
FinancialAdvisor--------------------------------------------------------------
36
Certification of the Official Statement ----------------------------------------
36
Audited Financial Statements, September 30, 1982, Mason, Nickels
& Warner, Certified Public Accountants --------------------------------------- Enclosure
The cover page hereof, this page, the Financial Statements and any addenda, supplement or
amendment hereto, are part of the Official Statement.
- 2 -
'
ELECTED OFFICIALS
Term
CitX Council Len
th of Service Expires
Occupation
Bill McAlister Elected Mayor
April ; April 1984
President an co-owner,
YAM -
served 4
years previously as
City Councilman
Alan Henry
9 Years April 1986
Partner, The Insurance
Group
Mayor Pro-Tem
Agency
Joan Baker
3 Years April 1984
Homemaker
Councilwoman
M. J. Aderton
5 Years April 1986
Retired Chairman
of the Board,
Councilman
Snook & Aderton, Inc.
E. Jack Brown
3 Years April 1984
President, Brown
McKee, Inc.
Councilman
APPOINTED OFFICIALS
Length of
Employment
Length of Time
With City
Name
Position
In This Position
of Lubbock
arry J. Cunningham
ty Manager
--6 Years
16Years
Jim C. Blagg
Deputy City Manager
Appointed 10/82
6 Years
John C. Ross, Jr.
City Attorney
4 Years
4 Years
Evelyn E. Gaffga
Secretary -Treasurer
4 Years
4 Years
J. Robert Massengale
Assistant City Manager for
Appointed 10/82
3 Years
Financial Services
Rita P. Harmon
Assistant City Manager for
Appointed 10/82
7 Years
Management Services
James E. Bertram
Assistant City Manager for
Appointed 10/82
14 Years
Development Services
Bob Cass
Assistant City Manager for
Appointed 10/82
7 Years
Public Safety and Services
Samuel W. Wahl
Director of Water Utilities
13 Years
30 Years
Carroll McDonald
Director of Electric Utilities
4 Years
4 Years
Thomas J. Nichols
Chief of Police
Appointed 2/83
Appointed
2/83
CONSULTANTS AND ADVISORS
Auditors ----------------------------------------------------- Mason, Nickels & Warner, CPA's
Lubbock, Texas
BondCounsel ------ ---------------------------------------- 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, Inc.
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 $18,775,000 General Obligation Bonds, Series 1983 (the "Bonds").
The Official Statement was prepared to present for the purchaser of the Bonds information
concerning the Bonds, the revenues (ad valorem taxes) pledged to the Bonds, the description of
the revenue base, factors that may affect pledged revenues, and other pertinent data, all as
more fully described herein. See "Table of Contents".
Source of Payment ... The Bonds are direct and voted general obligations payable from an annual
ad va orem tax ivied 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, street and
Airport System improvements. See "Authorized General Obligation Bonds".
Future Bond Issues ... The City plans to market substantially all of its remaining authorized
but unissue , 32,000 General Obligation Bonds in 1984 and 1985. See "Estimated General
Obligation Bond Program".
Administration of the City ... The City operates under a Home Rule Charter which was approved
y tie electorate December 27, 1917, and thereafter amended from time to time. The Charter
provides for the Council -Manager form of government for the City. Policy -making and super-
visory functions are the responsibility of and vested in the Mayor and City Council.
Liti ation Concerning the At -Large System for the Election of City Council Members ... Since
1917, under the provisions of the City of Lubbock's Hone Rule Charter, the four members of the
City Council and the Mayor have been elected at -large, majority vote required, for each
position.
On January 20, 1983, in Civil Action No. CA-5-76-34, Rev. Roy Jones, et al., City of Lubbock,
Texas, Plantiffs v. City of Lubbock, Texas, the United States District Court for the Northern
District of Texas, Lubbock Division (Halbert 0. Woodward, Chief Judge, Northern District of
Texas) ruled that the at -large system for the election of City Council members in the City of
Lubbock violates the Fifteenth Amendment of the Constitution of the United States and the
Voting Rights Act of 1965, as amended on June 29, 1982.
The Court prepared and attached to the Order two proposed plans for creating single member
districts for election of City Council members: (1) a four -member plan, and (2) a six -member
plan, both prepared by the Court from stipulated statistics and evidence, with the Mayor, under
both plans, elected at large.
The Court also proposed to order that elections be for staggered terms with one-half of the City
Council members elected every two years with initial terms to be determined by lot; any
candidate for the City Council would be required to reside within the District from which he
seeks election. The Mayor would be elected at -large for a two year term. A majority vote would
be required for election to all offices.
The Court has requested the attorneys for the plaintiffs and defendants to submit any sugges-
tions or alterations to the proposed plans or to point out any other problems. The Court based
its proposed plans on Supplemental Stipulated Ex. "SS-4" because it is based on present voting
precincts and seems to comply with the "one man - one vote" requirement, but states that it is
willing to entertain a plan that would split one of the voting precincts in order to equalize
the number of voters in each district if the attorneys feel that there is improper variation.
The City filed its recommendations with the Court on March 1, 1983, without waiving its right of
appeal; no representation can be made at this time as to whether the case will be appealed or,
if not appealed, which of the proposed plans may be adopted by the Court, or whether alterations
to the proposed plan may be included, or when any final judgment will be entered.
- 4 -
Petitions Affectin the Tax Rate Assessed Valuation and Tax Lev • Election January 15 1983
n July 12, 1979, three petitions calling for an a ect on to amend the ty's Hone Rule
Charter in relation to ad valorem taxes were filed with the City Council. These petitions,
separately, asked 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) 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 increase, 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 that time.
The City Council then 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 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 had been withdrawn from the field in which the initiatory process
is operative by the Constitution and the general law of the 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 judgment.
The City filed a motion for rehearing which was denied by the Court of Civil Appeals, Amarillo.
The City filed an application for writ of error with the Supreme Court of Texas, which was
denied.
Subsequently, the City Council ordered an election on all 3 propositions to be held January 15,
1983. All 3 propositions were submitted to the voters at the January 15, 1983. election and
were defeated.
The maximum tax rate of the City of Lubbock remains at $2.50 per $100 Assessed Valuation with
taxable property assessed at 100% of appraised value. Tax levies are limited only by the
procedures and limitations in the "Property Tax Code" (V.T.C.A.,-Tax Code) (See Ad Valorem
Taxation, page 7 & 8).
- 5 -
VALUATION AND DEBT INFORMATION
1982 Market (Appraised) Valuation $3,345,160.027
Less Reductions and Exemptions at Market (Appraised) Value(1):
Agricultural/Open-Space Reductions $ 10,090,967
Over 65 104,433,990
Disabled Veterans 2,183,380
Disabled 4,181,680 120,890,017
19B2 Taxable Assessed Valuation (100% of
1982 Net Appraised Valuation) (2)
City Funded Debt Payable From Ad Valorem Taxes
(as of 2-1-83)(see Notes 3, 4 and 5):
General Purpose Bonds
Waterworks Bonds
Sewer System Bonds
The Series 1982 Bonds
Total Funded Debt Payable from Ad Valorem Taxes
Less Self -Supporting Debt(3):
Waterworks Bonds (including $5,200,000 of this Issue)
Sewer System Bonds
Total General Purpose General Obligation Debt
$31,589,090
3 780 803
$35 3
$3,224,270,010
$35,130,107
26,389,090
3,780,803
18,775,000
$84,075,000
$48,705,107
Interest and Sinking Fund, All General Obligation Bonds (as of 2-1-83) $ 3,079,439
Ratio Total Funded Debt to Taxable Assessed Valuation -------------------------------- 2.61%
Ratio Total General Purpose General Obligation Debt to Taxable Assessed Valuation ---- 1.51%
1983 Estimated Population - 181,500*
Per Capita 1982 Taxable Assessed Valuation - $17,764.57
Per Capita Total General Purpose General Obligation Debt - $268.35
Area - 91.5 Square Miles
* Source: City of Lubbock, Texas.
Note 1: Agricultural/Open-space reductions granted to owners of productive lands under
Sections 1-d and 1-d-1, Article VIII of the State Constitution.
The 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. The above home stead exemptions must be declared between January 1 and April
30 of the tax year, but, since delays in filing are permissable, some additional exemptions are
anticipated.
Note 2: Assessed values of the capital shares of 10 banks (1982 Taxable Assessed Valuation -
$93,942,590), which are under litigation, and certain other litigated 1982 Assessed Values
($3,223,290) are included in the 1982 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.
- 6 -
Note 4: As of February 1, 1983 the above statement of indebtedness does not include
outstanding $21.835,000 Electric Light and Power System Revenue Bonds, as these bonds are
payable solely from the net revenues derived from the System. The statement also does not
include outstanding $2.265,000 Airport Revenue Bonds, as these bonds are payable solely from
gross revenues derived from the City of Lubbock Airport. In addition, $2,600,000 General
Obligations Bonds, due February 1, 1983, have been deducted from outstanding General Obligation
Debt. The Waterworks System and the Sewer System are unencumbered with Revenue Bond Debt.
Note 5: The City's last General Obligation Bond sale was May 27, 1982, when $10,950,000
General Obligation Bonds, Series 1982, 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
3% unless a public hearing is held. 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 1984.
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.
- 7 -
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. The statute purports to provide 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 1/2 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 assumed responsibility
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 votes 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. The Lubbock County Appraisal District will conduct a reappraisal of all taxable property
in Lubbock County, including the City of Lubbock, each year.
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.
- 8 -
OTHER LIABILITIES
(1) 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 September 30, 1982
was $238,852 which matures in 9 annual installments, September 1, 1983 through September 1,
1990, with interest calculated at 7%.
Note Amortization
Schedule
Fiscal
Year
Ending
9-30
-TEr
Principal
Interest
Total
1983
S 23,280.40
S 16,719.60
$ 40,000.00
1984
24,910.00
15,090.00
40,000.00
1985
26,653.60
13,346.40
40,000.00
1986
28,519.60
11,480.40
40,000.00
1987
30,515.60
9,484.40
40,000.00
1988
32,652.00
7,348.00
40,000.00
1989
34,937.60
5,062.40
40,000.00
1990
37.383.20
2.616.80
40.000.00
$238,852.00 $ 81,148.00 $320,000.00
Outstanding
Balance
215.571.60
190,661.60
164,008.00
135,488.40
104.972.80
72,320.80
37,383.20
-0-
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.
(2) Leases Payable ... On September 30, 1982, the City had an outstanding balance of $159,857
on two ease-purc ase contracts covering the acquisition of computers. The balance of one
lease, $126,775, was paid off on December 15. 1982. The second lease, payable in 16 monthly
installments of $1,946 and 1 final monthly installment of $1,940, from October, 1982 through
February, 1984. will have a balance of $9,725 on September 30, 1983.
(3) Acquisition and Renovation of Sears Building .. On October 15, 1982. the City of Lubbock
entered Into an agreement with the American State Bank, Lubbock ('American"), to purchase the
96,810 square foot "Sears" building located in downtown Lubbock. Originally constructed bj
Sears, Roebuck & Co., the building and site were sold to the adjacent American State Bank
following Sears construction of new facilities in South Plains Mall, Lubbock, several years
ago. The City also acquired 3 additional sites near the Sears site for parking expansion in the
future.
The City is 1n the process of renovating and remodeling approximately 55,000 square feet of the
Sears building to house administrative and City Council functions. The Sears site will provide
parking space for 205 vehicles; later expansion will expand parking capability to 450 vehicles.
- 9 -
Estimated cost of the entire completed project is $3,250,000:
Acquisition of Sears building/site $ 751,000
Purchase of additional property 302,925
Renovation of 55,000 square feet 1,800,000
Other cost 396,075
Total Estimated Cost $3,250,U0U
Shown below is the "Sears Building Finance Schedule", which was prepared by the City of
Lubbock. Salient elements of the City's agreement with "American" and the "Finance Schedule"
includes:
(1) Advance Balance. Acquisition and remodeling cost of the Sears property is being
financed by advances from "American". Net advance balances are shown on a quarterly basis;
actual balances to 1-15-83; projected thereafter.
(2) Total Payment. 1-15-83 actual and future quarterly payments thereafter to
"American" including interestterest quarterly at an annual rate of 12 3/4%. Final payment, 1-15-94,
$2,917,818.
(3) Additional Site Ac uisition. The City acquired 3 additional, adjacent sites for
future par ing expansion, paying $159,000 in cash and assuming payments on 3 notes. Payment of
the $159,000 and combined payments on the 3 notes are demonstrated.
(4) Escrow Deposits. The City has deposited and will continue to deposit funds for
Revenue sharing g Into an "Escrow Account" at "American" from which payments will be made to
"American" as referred to in (3), above, and on the notes referred to in (4) above. Deposits
will total $3,123,000 by 1-15-84; except for 2, subsequent, minor deposits, the "Escrow
Account" is essentially funded by 1-15-84.
The City anticipates that Revenue Sharing entitlements for fiscal years ending 9-31-83 and
9-30-84 will be fully adequate for deposits required through 1-15-84, and plans to make the 2,
minor future deposits from Revenue Sharing entitlements. Anticipated Revenue Sharing
entitlements (receipts) for fiscal year ending 9-30-83 are $2,880,918 plus available earned and
unallocated interest of $454,762, a total of $3,335,680. If Revenue Sharing Funds are not
available for any of these deposits, they will be made from General or other funds legally
available to the City.
(5) Escrow Interest Earnings. "American" will pay the City interest quarterly on ;the
balance in the "Escrow Account" at the annual rate of 12 1/2%.
(6) Escrow Balance. "Escrow Account" actual balances on 10-15-83 and 1-15783; projected
quarterly balances therea ter. The Escrow Balance at the end of any quarter will always exceed
the Advance Balance.
(7) In the opinion of the City Attorney the financial arrangement with "American"
described above does not constitute a legal debt of the City since funds will be pledged at all
times and placed in the "Escrow Account" in amounts that, with interest earned, will exceed the
outstanding Advance Balance throughout the life of the agreement.
- 10 -
Sears Building
Fn3ance
5Chedule
Additional
Escrow
Advance
Total
Site
Escrow
Interest
Escrow
Year
Month
Balance
Payment
Acquisition
Deposits
Earnings
Balance
Tmm-
10-15
S 751,000
S 159,000
$1,073.000
$ 914,000
1-15
751,000
S 23,938
5,331
$ 28,563
913,294
4-15
1,251,000
23,938
5,331
475,000
28,540
1,387.565
7-15
1,751,000
39,876
5,331
475,000
43,361
1,860,719
1983-84
10-15
2,251,000
55,813
5,331
525,000
58,147
2,382,723
1-15
2,824.001
93,750
5,331
575,000
74,460
2,933,102
4-15
2,820,266
93,750
5,331
91,659
2,925,680
7-15
2,816,412
93,750
5,331
91,428
2,918,027
1984-85
10-15
2,812,435
93,750
5,331
91,188
2,910.134
1-15
2,903,331
93,750
5,331
125,000
90,942
3,026,995
4-15
2,902,125
93,750
5,331
94,594
3,022,507
7-15
2,900,880
93.750
5,331
94,453
3.017,880
1985-86
10-15
2,899,596
93,750
5,331
94.309
3,013,108
1-15
2,898,270
93.750
5,331
94,160
3,008,186
4-15
2,896,903
93,750
5,331
94,006
3,003,111
7-15
2,895,491
93,750
5,331
93,847
2,997,877
1986-87
10-15
2,894,035
93.750
5,331
93,684
2,992,480
1-15
2,892,532
93,750
5,331
93,515
2,986.914
4-15
2,890,982
93,750
5,331
93,341
2,981,174
7-15
2,889,382
93,750
5,331
93,162
2,975,255
1987-88
10-15
2,887,731
93,750
5,331
92,977
2,969,150
1-15
2,886,027
93,750
5.331
92,786
2,962,855
4-15
2,884,270
93,750
5,331
92,589
2,956,363
1-15
2,882,456
93,750
5,331
92,386
2,949,669
1988-89
10-15
2,880,584
93,750
5,331
40,000
92,177
2,982,765
1-15
2,878,653
93,750
5,331
93,211
2,976,895
4-15
2,876,660
93,750
5,331
93,028
. 2,970,842
7-15
2,874,603
93.750
5,331
92,839
2,964,600
1989-90
10-15
2,872,481
93,750
5,331
92,644
2,958,163
1-15
2.870,291
93,750
5,331
92,443
2,951,525
4-15
2,868,032
93,750
5,331
92,235
2,944,679
7-15
2,865,700
93.750
5,331
92,021
2,937,619
1990-91
10-15
2,863,295
93,750
5,331
91,801
2,930,339
1-15
2-,860,812
93,750
5,331
91,573
2,922,831
4-15
2,858.251
93,750
5,331
91,338
2,915,088
7-15
2,855,607
93,750
5,331
91.097
2,907,104
1991-92
10-15
2.852,880
93,750
5,331
90,847
2,898,870
1-15
2,850.065
93,750
5,331
90,590
2,890,378
4-15
2,847,161
93,750
5,331
90,324
2,881.622
7-15 -
2,844,164
93,750
5,331
90,051
2,872,591
1992-93
10-15
2,8416'072
93,750
4,637
89,768
2,863,973
1-15
2,837,881
93,750
670
89,499
2.859.052
4-15
2,834,589
93,750
670
89,345
2,853,977
7-15
2,831,191
93,750
670
89,187
2,848,744
1993-94
10-15
2,827,686
93,750
670
89,023
2.843,347
1-15
2,827,686
2,917,818
670
88,855
13,714
4-15
7-15
6
- 11 -
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".
VALUATION AND FUNDED DEBT HISTORY
Fiscal
Period
Taxable
Basis
Total Funded
Ending
Assessed
of
Debt Outstanding
9-30
Valuation 1
Assessment
Year End
19972-73
1973-74
659,74Z,523(2)
716,225,294(2)
-
60%
$47,296,000-
53,440,000
1974-75
797,387.868(2)
60%
50,546,000
1975-76
900,079,412(2)
60%
47,763,000
1976-77
997,553,829(2)
60%
43,682,000
1977-78
1,097,536,312(2)
60%
42,107.000
1978-79
1,290,998,036(2)
60%
47,086,000
1979-80
1,397,872,411(2)
60%
49,301.000
1980-81
1,516 565 090(2j
60%
61,710,000
1981-82
2,682:330:673 2
100%
67,900,000
1982-83
3,224,270,010
100%
75,725,000(3)
Ratio
Total Funded
Debt to Taxable
Assessed Valuation
7.46%
6.34%
5.31%
4.38%
3.84%
3.65%
3.53%
4.07%
2.53%
2.35%
(1) For all years Taxable Assessed Valuations are net of any exemptions. The City's Tax
Assessor -Collector maintained an on -going reappraisal of Real Property in the City during the
period 1972-73 through 1981-82, reappraising approximately 1/4 of the City each year. The
Lubbock County Appraisal District reappraised all property in the City for 1982-83.
(2) Taxable Assessed Valuations for Fiscal Periods 1972-73 through 1981-82 have been adjusted
for supplements and corrections to the tax rolls made subsequent to certification.of the rolls.
(3) Anticipated.
Year
TM
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
TAXABLE ASSESSED VALUATIONS BY CATEGORY
Property
Real Property
(1)
Personal Property
Assessment
(2)
As % of
Taxable
Taxable
Taxable
Appraised
Assessed
% of
Assessed
% of
Assessed
Value
Valuation
Total
Valuation
Total
Valuation
60%
$ 495, 6I4_,'AT
75.12%
$164,128,167
N_- M
$ 659.742,52Y
60%
524,133,396
73.18%
192,091,898
26.82%
716,225,294
60%
579,454,818
72.67%
217,933,050
27.33%
797,387,868
60%
649,869,048
72.20% '
250,210,364
27.80%
900,079,412
60%
709,585,566
71.13%
287,968,263
28.87%
997,553,629
60%
769,976,300
70.16%
327.560,012
29.84%
1,097.536,312
60%
932,343.503
72.22%
358,654,533
27.78%
1,290,998,036
60%
1,098,254,972
78.57%
299,617,439(3)
21.43%
1,397,872,411
60%
1.187,443,564
78.30%
329,121,526
21.70%
1,516,565 090
100%
2,094,621,612
78.09%
587,709,061
21.91%
2,682,330673
100%
2,440,381,790
75.69%
783,888,220
24.31%
3,224,270,010
(1) The City's Tax Assessor -Collector maintained an on -going reappraisal program of real
property during the period 1972-1981, reappraising approximately 1/4 of real property in the
City each year. The Lubbock County Appraisal District reappraised all property in the City for
1982.
- 12 -
(2) Taxable Assessed Valuations for 1974-1982 are net after the following exemptions and
reductions (in terms of Assessed Valuation);
Over 65
Homestead
Year
Exem tions
1975
13,323,150
1976
11,888,760
1977
14,159,830
1978
34,991,600*
1979
49,793,340*
1980
52,926,900*
1981
99,248,070*
1982
104,433,990*
* As of 10-1 each year.
Agricultural/
Disabled
Open -Space
Veteran
Disabled
Land
Exemptions
Exemptions
Reductions
Not Effective
Not
Effective
�—
Not Effective
Not
Effective
-0-
S 1,307,240
Not
Effective
-0-
1,646,220
Not
Effective
-0-
1,549,890*
Not
Effective
-0-
1,928,450*
Not
Effective
-0-
2,147,280*
Not
Effective
-0-
2,072,270*
$
4,720,090*
-0-
2,183,380* 4,181,680* E 10,090,967
(3) Personal automobiles became exempt from ad valorem taxes in 1979.
ESTIMATED TAXABLE ASSESSED VALUATIONS (1)
Estimated
Taxable
Fiscal Assessed
Period Valuation
1983-84 ,
1984-85 3,850,000,000
(1) All estimates are net after estimated exemptions at 100% of net appraised value.
Source: Lubbock County Appraisal District.
Purpose
atrks System
Waterworks System
Waterworks System
Sewer System
Sewer System
Street Improvements
Street Improvements
Storm Sewer and Drainage
Fire Station (for adjacen
areas, when annexed)
Airport
Fire Department
AUTHORIZED GENERAL OBLIGATION BONDS
t
Amount
Amount
Date
Amount
Heretofore
Being
Unissued
Authorized
-
Authorized
Issued
Issued
Balance
5-2T=77
8- 9-80
TiT5 ,tea
t; , 7
21,000,000
3`) a
16,200,000
$"40
4,800,ODO
-0-
11-21-81
5,226,000
-0-
-0-
5.226,000
5-21-77
3,303,000
2,030,000
-0- '
1,273,000
11-21-81
7,892.000
1,090,000
-0-
6,802,000
5-21-77
4,782,000
3,693,000
-0-
1,089,000
11-21-81
9,495,000
3,280,000
2,025,000
4,190,000
5-21-77
473,000
100,000
-0-
373,000
5-21-77
310,000
-0-
-0-
310,000
11-21-81
12,854,000
812,000
11,550,000
492,000
11-21-81
877.000
250.000
-0-
627.000
ESTIMATED GENERAL OBLIGATION BOND PROGRAM
Anticipated ssuance
1984
1985
Total
Waterworks System
Sewer System
S 9,976,000
5,000,000
S -0-
3,075,000
$ 4,976,DOU
8,075,000
Street Improvements
2,279,000
3,000,000
5.279,000
Storm Sewer and Drainage
373,000
-0-
373,000
Fire Station (for adjacent
areas, when annexed)
937,000
-0-
937,000
Airport
492,
�923b0UU
- 13 -
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.
ESTIMATED OVERLAPPING FUNDED DEBT PAYABLE FROM AD VALOREM TAXES
so2-1-83)
Estimated
Total
%
Overlapping
Taxing Jurisdiction
Funded Debt 1
Applicable
Funded Debt
City of Lubbock
Lubbock Independent School District
u,
14,865,000
98.99%
T48,WW
14,714,854
Lubbock County
-0-
81.29%
-0-
Lubbock County Hospital District
-0-
81.29%
-0-
Lubbock County Water Control and
Improvement District No. 1
-O-
81.29%
-0-
Lubbock-Cooper Independent School District 1,191,000
12.65%
150,662
Frenship Independent School District
3,626.441
43.56%
1.579.678
Roosevelt Independent School District
453.000
17.29%
78,324
Idalou Independent School District
1,213.000
5.24%
63,561
TOTAL OVERLAPPING FUNDED DEBT
$65,292,196
Ratio Overlapping Funded Debt to Taxable
Assessed Valuation --------------------------
2.03%
Per Capita Overlapping
Funded Debt - $359.74
(1) In each case, 2-1-83 principal, if
any, has been deducted.
(2) General Purpose General Obligation
Debt, including the Bonds.
TAX DATA
(Year-1ndi
g 9-30)
Distribution
{1)
Tax- Tax General Board of City
Interest an (1)
% Current
% Total
Year Rate Fund Develo ment
Sinkin Fund Tax Levx
Collections
Collections
1972-73 UM. b $ ub
$U.bduu b,blU,b/b
-
- FTII -
1973-74 1.36 0.4600 0.05
0.8500 9,740,664
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 12,241,080
93.28%
97.15%
1976-77 1.41 0.7500 0.05
0.6100 14,065,509
92.95%
95.67%
1977-78 1.41 0.8600 0.05
0.5000 15,475,262
93.59%
96.17%
1978-79 1.12 0.7500 0.05
0.3200 14,459,178
92.71%
95.37%
1979-80 1.12 0.6800 0,05
0.3900 15,656,171
94.48%
98.67%
1980-81 1.10 0.6800 0.05
0.3700 16,682,216
93.80%
98.46%
1981-82 0.66 0.3225 0.05
0.2875 17,703,382
95.55%
98.97%
1982-83 0.61 0.2791 0.05
0.2809 19,668,047
In Process
of Collection.
(1) "Tax Levy" and "Percent Current Collections" for Tax Years 1972-73 through 1981-82 have
been adjusted to reflect final corrections and supplements to the tax rolls as audited at the
end of each fiscal year.
- 14 -
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
Penalty
Interest
eFr6ruary
�%—
—
- —7Y
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
(Effective -
The City has adopted the provisions of Article 1066e, V.A.T.C.S., and levies a 1% Sales and Use
Tax within the City. This tax is collected and enforced by the State of Texas Comptroller of
Public Accounts, who remits the proceeds, less a service fee, to the City monthly. Revenues
from this source for the periods shown have been:
Fiscal
Net
Year
Collections
% of
Equivalent
Ended
Remitted
Ad Valorem
Ad Valorem
9-30
to Ciit.�t
Tax Levy
Tax Rate
1974
4,537,048
44.42%
46.58%
$0.b73—'
0.634
1975
4,763,912
43.93%
0.597
1976
5,690,591
46.49%
0.632
1977
6.806,680
48.39%
0.682
1978
7,421,615
47.96%
0.671
1979
8,160.916
56.44%
0.632
1980
8,722,450
55.71%
0.624
1981
9.791,566
58.69%
0.646
1982
10,939,663
61.79%
0.408
* Based on U.S. Census, 1980, of 173,979.
- 15 -
Estimated
Net
Collections
Per Capita
E50.14*
ESTIMATED 1982-83 TAX YEAR OVERLAPPING TAXES
Set forth below is an estimate of all 1982-83 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
1982
Estimated
and Assessed
Tax
1982 Taxes
Taxing Jurisdiction
Value
Rate
Levied
City of Lu oc
—
i67T66b'
716570u—
Lubbock Independent School District
45,000**
1.00000
450.00
Lubbock County
50,000*
0.15000
75.00
Lubbock County Hospital District
50,000*
0.13000
65.00
High Plains Underground Water Con-
servation District No. 1
50,000*
0.00725
3.63
Estimated Total 1982-83 Ad Valorem Taxes
$898.63
* Market value.
** After $5,000 market value residence homestead exemption.
Name of Taxoaver
Texas Instruments Incorporated
Southwestern Bell Telephone Company
Southwestern Public Service Company
Furr's, Inc
South Plains Mall
Eagle Picher Industries
Plains Co-op Oil Mill
Farmers Co-op Compress
Energas Company (a division of
Pioneer Corporation)
International Business Machines
TOP TEN TAXPAYERS
Nature of Property
Electronics Manufacturer
Telephone Utility
Electric Utility
Retail Groceries
Regional Shopping Center
Earth Moving Machinery; Farm
Equipment
Oil Mill
Cotton Compress
Gas Utility
Computers, Business Machines
INTEREST AND SINKING FUND MANAGEMENT INDEX
1982
Taxable
Assessed
Valuation
66,777,960
31,069.770
27,586,463
22,878,678
14,273,650
13,397,428
12,580,700
12,456,898
11 242 Z90
% of 1982
Taxable
Assessed
Valuation
2.07%
0.96%
0.86%
0.71%
0.44%
0.41%
0.39%
0.39%
0M%
General Obligation Debt Service Requirements for Fiscal Year Ending 9-30-83 ----- $10,052,284
Interest and Sinking Fund, All General Obligation Issues, 9-30-82 -- $1.541,495
1982 Interest and Sinking Fund Tax Levy @ 95% Collection ----------- 8,604,125
Estimated Income from Other Sources, as budgeted ------------------- 838,480 10,984,100
EstimatedSurplus--------------------------------------------------------------- E 931,816
- 16 -
r
v
DEBT SERVICE REQUIREMENTS
Less:
Fiscal
Grand Total
Waterworks
Less:
Grand Total
Year
General Obli-
System
Sewer System
General Pur-
Ending
Outstanding Bonds
The Bonds
gation Bond
Tax Bond
Tax Bond
pose Bond
9-30
Principal
Interest
Total
r nc pa
interest
Total
Requirements
Requirements
Requirements
Requirements
�3
1984
5,170,000
4,347,708
9,517,708
925,000
S 2,070,563
S 2,995,563
12,513,271
19
4,588,422
$6I9,U56
577,760
$ 5,533,755
7,347,089
1985
5,045,000
4,019,525
9,064,525
925,000
1,564,875
2,489,875
11,554.400
4,266,892
534,793
6,752,715
1986
4,960,000
3,691.630
8,651,630
925.000
1,481,625
2,406,625
11,058,255
4,072,890
500,750
6,484,615
1987
4,810,000
3,366,045
8,176,045
925,000
1,398,375
2,323,375
10.499,420
3,862,841
480,786
6,155,793
1988
4,685,000
3,043,757
7,728,757
925,000
1,315,125
2,240.125
9,968,882
3,679,141
439.624
5,850,117
1989
4,495,000
2,726,420
7,221,420
925,000
1,231,875
2,156,875
9,378,295
3,490,669
421,242
5,466,384
1990
4,335,000
2,425,705
6,760,705
925,000
1,148,625
2,073,625
8,834,330
3,342,797
370,898
5,120,635
1991
4,190,000
2,133,690
6,323,690
925,000
1,065,375
1,990,375
8,314,065
3,199,670
287,044
4,827,351
1992
3,845,000
1,864,998
5,709,998
925,000
982,125
1.907,125
7,617,123
3,050,595
260,927
4,305,601
1993
3,245,000
1,616.106
4,861,106
950,000
897,750
1,847,750
6,708,856
2,849,900
249,521
3,609,435
1994
2,855,000
1,387,173
4,242,173
950,000
812,250
1,762,250
6,004,423
2,669,708
237,930
3,096,785
1995
2,360,ODO
1,180,243
3,540,243
950,000
726,750
1,676,750
5,216,993
2,514,778
227,159
2,475,056
1996
2,360,000
983,271
3,343,271
950,000
641,250
1,591,250
4,934,521
2,377,515
215,146
2,341.860
1997
2,280,000
783,745
3,063,745
950,000
555,750
1,505,750
4,569,495
2,239,035
202,939
2,127.521
1998
2,280,000
591,983
2,871,983
950.000
470,250
1,420,250
4,292,233
2,101,438
191,236
1,999,559
1999
2,155,000
407,943
2,562,943
950.000
384,750
1,334,750
3,897,693
1,944,844
154,981
1.797,868
2000
1,715,000
247,238
1,962,238
950,000
299,250
1,249,250
3,211,488
1,519,092
109,814
1,582,582
2001
1,390,000
116,100
1,506,100
950,000
213,750
1,163,750
2,669.850
1,167,304
62,933
1,439,613
2002
550,000
27,500
577,500
950,000
128,250
1,078,250
1,655,750
298,675
57,461
1,299,614
2003
950.000
42.750
992.750
992.750
274.992
717.758
S 6,790,000 $39,838,064 $107,738,064 $18,775,000 $17,431,313 $36,206,313 S143,944,377 S 57,405,677 S 6,201 `94 $ 80,336,706
Note: Interest on the Bonds has been calculated at the rate of 9% for purposes of illustration.
All General Obligation Bonds (including the Bonds) ...
Maximum Principal an Interest Requ r-i� ements, 1984 _-------
$0.41 Tax Rate @ 95% Collection Produces --
TAX ADEQUACY
---------------------------------------------------------- $12,513,271
---------------------------------------------------------- $12,558,531
% of
Principal
Retired
33.30%
63.50%
84.09%
98.90%
100.00%
COMPUTATION OF SELF-SUPPORTING DEBT
Waterworks Sewer
System* System*
Net System Revenue Available for Fiscal Year
Ending 9-30-82 $6,290,676 f 920,322
Less: Revenue Bond Requirements, 1982-83
Fiscal Year -0- -0-
Balance Available for Other Purposes $6,290,676 E 920,322
System General Obligation Bond Requirements,
1982-83 Fiscal Year 3,894,479 619,050
Balance $2,396,197 E 301,272
Percentage of System General Obligation Bonds
Self -Supporting 100.00% 100.00%
* 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.
PENSION FUNDS
Texas Municipal Retirement System ... All permanent, full-time City employees who are not
firemen and who were less than 5U years of age when employed by the City are covered by the
Texas Municipal Retirement System. The System is a contributory, annuity -purchase type plan
which is covered by a State statute and is administered by six trustees appointed by the
Governor of Texas. The System operates independently of its member cities.
The City of Lubbock joined the System in 1950 to supplement Social Security. Options offered
under the System, and adopted by the City, include current, prior and antecedent service
credits, 20 year vesting, updated service credit, and regular and supplemental disability
benefits. An employee who retires receives an annuity based on the amount of the employee's
contributions over -matched two for one by the City. Employee contribution rate is 5% of gross
salary. The City's contribution rate is calculated each year using actuarial techniques
applied to experience; the 1983 contribution rate is 7.30%. Enabling statutes prohibit any
member city from adopting options which impose liabilities that cannot be amortized over 25
years within a specified statutory rate.
On 9-30-82 assets .held by the System, not including those of the Supplemental Disability
Benefits Fund which is "pooled", were:
City $12,036,804
Employees 8,912,810
Total payments by the City for the year ended 9-30-82, not including contributions to the
Supplemental Disability Benefits Fund which are "pooled", were $1,677,152.
The following has been furnished by the Texas Municipal Retirement System:
- 18 -
TEXAS MUNICIPAL RETIREMENT SYSTEM
City of Lubbock
Actuarial Information
1. Valuation Date - The date of the most recent actuarial valuation is December 31, 1981,
The valuation was based on the plan of benefits in effect on January 1, 1982.
2. Actuarial Cost Method - The actuarial cost method used was the Unit Credit Actuarial
Cost Method. The unfunded accrued liability is being amortized with a level per-
centage of payroll over a period of 25 years which began 1/80 .
3. Actuarial Cost for 1981 (as a percent of payroll)
Normal cost contribution rate 5.30%
Prior service contribution rate 2.16
Total retirement contribution rate 7.46X
December 31, December 31,
4. Actuarial Present Value of Accrued Benefits 1981 1980
Vested
a. Annuitants $ 3,792,747 $ 3,302,907
b. Nonretired members 18,024,040 16,300,234
Nonvested ,7i4 -R9-4 7,228,578
Total 529,531,681 •$26,831,719
S. Total Assets (book value) $19,865,090 $16.955,007
6. Unfunded Accrued Liability $ 9,666,591 $ 9,876,712
7. Actuarial Assumptions - There have been no changes in the actuarial cost method
since the previous valuation; however, the interest rate and annuitant mortality
assumptions have been changed. The impact of the change as of the valuation date
was to increasethe unfunded accrued liability by $97,575 and to increase the
1983 prior service contribution rate by 0,02X-
8. Benefit Changes - There have been no changes in benefits since the previous valuation.
9. Exclusion of Employees - All employees who were members of the System on the valua-
tion date have been included in the valuation.
10. Gains and Losses - Since the System is of the money -purchase type, the interest
earned by the System and realized investment gains and losses are distributed an-
nually to the accounts of the members and the municipalities. Gains (losses) from.
other sources decrease (increase) the unfunded accrued liability and are thus amor-
tized using a spread method. There has been no change in the treatment of actuarial
gains and losses since the previous valuation.
11. Interest Rate - Because of the money -purchase nature of the System, there is no
need for an interest rate assumption in valuing the actuarial present value of accrued
benefits for nonretired members. For annuitants, the.actuarial present value of
benefits is calculated using a 5% interest rate assumption. The 5$ assumption is
also used in calculating the prior service contribution rate.
RUDD AND WISDOM, INC.
Mark R. Fenlaw
Fellow, Society of Actuaries
- 19 -
Fireman's Relief and Retirement Fund ... City of Lubbock firemen are members of the locally
administered LubbockFiremen's Re ie 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
10% 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 11.97%. '
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".
- 20 -
GENERAL FUND REVENUES AND EXPENDITURES
Budgeted
Fiscal Years Ended
1982-83
- -
- -
- -
- -9-30-78
Revenues
Td-Torem Taxes
S 9,127,036
S 9,062,429
$10.133,720
S 9,431,523
S 9.285.106
S 9,127,301
Sales Taxes
11,938,229
10039,663
9,791.566
8,722,450
8,160,916
7,421,615
Franchise Taxes
3,817.908
4.020,350
3,266,775
2,872,000
2,280,190
2,112,872
Miscellaneous Taxes
204.000
309,285
220,853
528,054
500,998
473,998
Licenses and Permits
682,763
555,496
452,184
384,213
353,360
313,631
Intergovernmental
987,015
1.221,151
1,397,716
766,884
2,205,597
1,253.092
Charges for Services
1,965,766
1,728,679
1,543,201
1,485,653
1,504,545
1.360.646
Fines and Forfeits
1,473,000
1,292,728
1.227,338
1,266,261
1,152,254
834,784
Miscellaneous
2,922.622
1,332,843
1,108,054
1,065,094
1,331,057
1,341,497
Transfer from Other Funds
7,560,536
7,586,099
5,248,563
3,490,137
3,011,054
2,049,938
Total Revenues and
Transfers rom
$40,678,875
$38,048,723
$34.397,970
$30,012,269
$29,785,077
$26,289,374
Expenditures
General Government
$ 1,169,042
$ 1,868,553
$ 1,542,971
$ 1,334,878
$ 956,329
$ 1,046,554
Community Relations
132,127
129.526
102,248
91,995
97,087
89,614
Finance
1,188,051
1,154,275
1,861,818
611,286
609,923
496,730
Tax
-0-
-0-
-0-
1,025,736
886.160
749,702
Management Information
-0.
296,086
266,134
202.458
176,600
235,567
Administrative Services
911.508
776,435
670,569
561.076
499,136
411.351
Personnel
455.598
326,216
261,873
252,679
192.814
206,786
Purchasing
146,925
118,940
118.847
103,157
92,672
94.343
Planning
2,599,987
2,182,218
1,920,563
1,657.867
1,600.720
1,271,880
Community Facilities
7,875,554
7,259,860
6,220,721
4,958,489
4,997,895
4,441,727
Public Services
5,611.448
6,315,209
5,424,563
1,846,260
2.189,826
2,006,587
Public Works
-0-
-0-
-0-
2,009,338
2,294,420
1,973,848
Public Safety
19,056,594
16,411,275
14,680,164
12,842,568
12,241,675
10,272,383
Street Lighting
-0-
-0-
-0-
1,076,474
851.954
921,525
Non -Departmental
904,313
191,226
-0-
-0-
-0-
-0-
Transfer to Other Funds
-0-
920,766
1,248,940
1,279,658
1,967,926
1,158,735
Total Expenditures and
rans ers o -
$40,051,147
$37,950,585
$34,3252411
$29,853,919
$29,655,137
$25,377,332
Excess of Revenues and Transfers
Over Expenditures
$ 627,728
$ 98,138
$ 72,559
$ 158,350
$ 129,940
$ 912,042
Adjustments
N.A.
(4,609)
(524,670)
(424.979)
(2.083,734)** (387,467)
Fund Balance at Beginning of Year
Fund Balance End Year
6 033 293
6:661:021***
5 939 764
$��
6 391 875
$`(5,�5,�4
6 658 504
8 612 298
$ 6,bb8,3U
8 087 723
8,61Z. �
at of
Less: Reserves and Designations
$
N.A.
(1,521,145)
1 525 754)(1,482,318)
$
1 784 928)
s
3 806 212)
Undesignated Fund Balance
N.A.
$.4,512,148
$ 4,414,010
$ 4,909,557
S4,873,576
$ 42 806,086
* Restated; based on comparisons
in audit for fiscal year ending
9-30-82.
** Reflects write-off of $1,394,000 "Reserve for
Advance to Electric Revenue
Fund - Loan"
and $925,823 "Reserve for
Advance to Electric Revenue Fund - Inventory".
*** Projected.
LUBBOCK POWER AND LIGHT
Lubbock Power and Light was established in 1916, and is presently the largest municipal system
in the West Texas region and the third largest in the State of Texas. The municipal system
competes directly with a privately owned utility company within the corporate limits of the
City of Lubbock. Electric rates in the City are set by City Council Ordinance and are the same
for both power systems.
The private system, Southwestern Public Service Company, was granted a new 20-year franchise in
1964, which is subject to certain minor amendments each five year period thereafter. The
company pays the City a franchise tax of 2% of its gross receipts. At present. Southwestern
Public Service supplies power to approximately 50% of the customers in Lubbock.
Lubbock Power and Light generates part of its power requirements and has two generating sta-
tions 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. In February, 1982 this was increased to 15 MW.
Generating Stations ... Total generating capacity is 216,500 KW. Gas turbines and I.C. gene-
rators 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— rdberg`
'-1946
___7-
teasel-
Dual Fuel
2.500
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,D00
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.ODO
General Electric
1978
Holly
Steam Turbine
Gas
or
Oil
so 000
216.500
* The 1957 Westinghouse unit was damaged in a recent explosion and is not presently available
for service.
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, 38.25 miles
n 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. As of
January, 1983, 13.94 miles of 115 KV insulated transmission line have been constructed. A 3.3
mile 230 KV transmission line ties Lubbock Power and Light to Southwestern Public Service.
The distribution system includes approximately 639 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,
1982 was 708,070,860 KWH with a peak demand of 151,000 KW.
Construction Program :. A major transmission system and distribution system construction and
improvement program is under way utilizing proceeds of $9,000,000 Electric Light and Power
System Revenue Bonds sold in August, 1981:
- 22 -
Transmission System ... The transmission system program includes upgrading of 3 major
subsstat onss, 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. The upgrading
of the substations and the extension of the 69 KV transmission line was completed in
September, 1982. The remainder of the items are still under construction.
Distribution S stem . The program includes extension of and improvements to the
ex -Ming distribution system including additional distribution circuits for substa-
tions, extensions to new service areas, transformers, meter pedestals, poles and
crossarms, regulators, capacitors, meters, service lines and other appurtenances.
Interconnection ... An interconnection with
been completed -and the City commenced buyii
Power and Light has contracted with South
purchase of 10 MW of power. In February, 191
15 MW. The contract allows purchase of up to
operates in Lubbock under a franchise and se
South Plains of Texas and parts of Eastern
generating and distribution system.
Southwestern Public Service Company has
ig power on December 1, 1981. Lubbock
western Public Service Company for the
12, the purchase amount was increased -to
100 MW upon proper notice. Southwestern
rves an area covering the Panhandle and
New Mexico with an integrated electric
Fuel Supply Primary fuel supply for Lubbock's generating system is natural gas
which s 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 7D% 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 i.n inventory at all times; with expected
resupply, this period would be substantially 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, has constructed a carbon dioxide (CO2) recovery plant on a three acre site
adjacent to the Holly Plant. CO2 is being recovered from Holly Plant stack gasses
for use in a tertiary -level oil recovery program in nearby Garza County fields.
Estimated cost of the plant was S30,000,ODO; estimated annual revenues to Lubbock
Power and Light include $360,000 from sale of CO2, and $150,000 from the sale of
electric power. The Project was completed and began operations in December, 1982.
- 23 -
CONDENSED STATEMENT OF OPERATIONS
ELECTRIC LIGHT AND POWER SYSTEM
Fiscal Year Ended
9-30-82
9-30-81
9-30-80
99
9-30-78
Aerating Revenues
TWOU'$ff3
TJ4_11'SM
iNT5 1
.
,
Non -Operating Income
1,798,852
690,388
731,676
826,106
624,791
Gross Income
$41,689,735
$34,693,116
$29,891,540
$24,445,824
$23.072,509
Operating Expense
(excluding depreciation)
33,332,824
30,393,827
24,870,851
20,077,479
17,355,243
Net Revenue
S 8,356,911
$ 4,299,289
$ 5,020,689
S 4,368,345
S 5,717,266
Electric Connections
34,610
33,370
32,051
30,390
29,204
Maximum Principal and Interest Requirements, Electric System
Revenue Bonds, Fiscal Year Ending 9-30-83----------------------------------=- $ 3,734.006
Coverage by Net Income, Fiscal Year Ended 9-30-82------------------------------ 2.24 Times
Electric Light and Power System Revenue Bonds Outstanding, 9-30-82------------- $22,060,000
Interest and Sinking Fund and Reserve Fund, Cash and Investments, 9-30-82 ------ $ 3,289,804
THE WATERWORKS SYSTEM
Water Su 1 Primary source of water for Lubbock is the Canadian River Municipal Water
Aut ority 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 29,537 acre feet of water from the Authority in Calendar Year 1982, approximately 82% of
the City's total consumption.
Financed through the Federal Bureau of Reclamation at a cost of $83,358,280, the Canadian River
Project will eventually yield 103,000 acre feet of water annually. Lubbock is entitled to
receive 37.058% of the available annual supply - 38,200 acre feet when yield reaches 103,000
acre feet. Cost of the Project is being repaid to the Bureau of Reclamation by the Authority
through a reimbursable loan maturing annually through 2018; debt requirements are paid from
revenues received by the Authority from sale of water to member cities. Member cities make
payments for water received from water revenues.
Other Water Supply Sources ... Part of the City's water supply is obtained from 257 water wells,
a pro ucing 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 145 producing wells. The City has 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
on tterm 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 S stem .. Lubbock's Waterworks System is modern and efficient and property, plant and
equ pmint valued at $57,659,943, after depreciation and including cost of construction work in
progress, at September 30, 1982. 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 32.0 million gallons in 1982.
- 24 -
' 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 MuniciFal 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 75
MGD. The plant also treats "CRMWA" water for several other members of the Authority; the City
of Lubbock is fully reimbursed for these costs.
Water System Improvement Program ... The City is completing a program of water treatment and
supp y expansion and distribution system improvements, all of which will be on -stream for the
summer of 1963; included are 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 in-
crease 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 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 Sandhills Well Field ...
Distribution System Improvements include construction of a pump station and main lines.
CONDENSED STATEMENT OF OPERATIONS
Fiscal Year Ended 9-30-82 9-30-81 9-30-80 9-30-79 9-30-78
operating Revenues iT477,121 $11,189,I5T W$29_,W
Non -Operating Income 2,679,891 3,056,647 1,213,711 841,414 480,397
Gross Income $14,157,012 $14,247,801 $10,042,308 $7.660,112 $7.481.750
Operating Expense
(excluding depreciation)* 7,866,336 7,283,700 6,927,147 5,957,631 5,130,938
Net Revenue 3 6.290,676 $ 6,964,101 $3,115,161 $1,702,481 $2,350 812.
Water Meters 55,844 55,511 64,589 53,458 52,408
* Operating expense includes construction repayment costs and operating and maintenance
charges paid to the Canadian River Municipal Water Authority.
Note: The City has no outstanding, or authorized Waterworks System Revenue Bonds.
INCREASE IN WATER RATES
(Effective tober , 2)
Old Rates Effective 10-1-81 New Rates Effective 10-1-82
rs1,000 gallons (Minimum) rst 1.000 gallons $5.20 (Minimum
Next 49,000 gallons 1.03/M gallons Next 49,000 gallons 1.08/M gallons
Next 200,000 gallons 0.88/M gallons Next 200,000 gallons 0.92/M gallons
All over 250,000 gallons 0.83/M gallons All over 250,000 gallons 0.87/M gallons
- 25 -
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 705 miles of trunk mains and
collector lines with trunk mains installed for future expansion of the collection system.
Average daily sewage flow in 1982 was 16.7 million gallons.
There are no outstanding or authorized sewer revenue bonds.
CONDENSED STATEMENT OF OPERATIONS .
SEWER SYSTEM
Fiscal Year Ended 9-30-82 9-30-81 9-30-80
9-30-79
66 9-30-78
ncome 3't?sbi,b35 �;TS�'f4b ,
Expense 2,041,333 12710,934 1,597,031 1,395,924 1,082,772
Net Income S 92O 322 $1.047,306 S1,038,770 S 972,942 $1,179,872
Sewer Customers* 55,844 55,511 54,589 53,458 52,408
* 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
Ines, Delta A r roes, Continental Airlines, and Southwest. Airlines; all flights are by jet
aircraft. Trans Central, an Oklahoma City, Oklahoma, 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. 1982 passenger
enplanements totaled 505,871, compared to 474,600 in 1981.
Lubbock International Airport Terminal ... The terminal building, completed in April, 1976,
contains approximately 144,000 square feet; the terminal houses airport administrative of-
fices, airline offices and ticket counters, the baggage claim area, car rental offices, a
restaurant and infIight 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.
The FAA -operated control tower provides 24 hour service.
Runway System ... The runway system consists of:
1 - 11,5001 x 1501, north/south, primary runway with high intensity lighting and a FAA -operated
instrument landing system and other navigational aids;
1 - 8,000' x 1501, east/west, cross -wind runway, with high intensity lighting and 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.
- 26 -
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 Apron Improvement Program ... S12,854,000 General Obligation Bonds for airport
improvement purposes were approved at the election on November 21, 1981; $11,550,000 of these
are included in the Bonds. The proceeds will be used for terminal and terminal apron expansion.
The terminal expansion program will add approximately 60,000 square feet of space and includes
space for airline ticket counters, public use, baggage facilities. rental car agencies
concessions plus 3 passenger loading bridges, 2 new passenger gates and street modification.
Terminal apron expansion is being accomplished by phased contruction as FAA grants are
received; eventually the project will provide space for 6 additional aircraft parking
positions.
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
SYSTEMAIRPORT
Fiscal Year Ended
9-30-82
9-30-81
9-3040
9-30-79
9-30-78
Operafing Revenues
$2,664,784
$2,210,270
$1,950,716
Tr,-&TW
$1.865,710
Non -Operating Revenue
334,365
396,976
279,961
413,953
257,945
Gross Income
$2,999,150
$2,607,246
$2,230,677
$2.277,015
$2,124,655
Operating Expense
(excluding depreciation)
2,258,552
1,972,780
1,732,584
1,467,720
1,191,964
Net Revenue
S 740,598
$ 634,466
S 498.093
$ 809,295
S 932.691
Maximum Principal and Interest Requirements, Airport Revenue Bonds,
Fiscal Year Ending 9-30-83 (secured by Gross Income from System) -------------- S 332,081
Coverage Based on Gross Income, Fiscal Year Ended 9-30-82----------------------- 9.03 Times
Airport Revenue Bon-s—Uutstanding, 9-30-82------------------------------------- $2,265,0DO
Interest and Sinking Fund, 9-30-82-------------------------------------- »------ $1,729,916
Reserve Fund Cash and Investments 9-30-82 ------------------------------------
- S 300.000
- 27 -
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
1920
Census
Census
11938
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
1983
Estimate
181,500*
Standard Metropolitan
Area (Lubbock County)
1970
Census
179,295
1980
Census
211,651
* Source: City of Lubbock, Texas.
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 1981 cotton production was 275,400 bales; grain sorghum production ryas
30,490,000 pounds; and corn production was 140,000 bushels.
On January 1, 1982, there were an estimated 63,000 head of cattle and calves located on farms or
in feed lots in Lubbock County.
Lubbock County Cash Receipts from farm marketings, 1979/81, were:
1979 1980 1981*
All Crops $ 74,70rM TTFTT5—,W $'76�29 000
Livestock and Products 39,255.000 33,771,000 33.902,000
U.S. Government Payments 5,971,000 6,434,000 N.A.
Total Cash Receipts $119,927,000 $130,050,000 $ N.A.
* Preliminary - subject to revision.
1981 cotton production in a 23 county (including Lubbock County) area surrounding Lubbock was
2,840,700 bales; 1981 grain sorghum production in this same area was 1,357,640,000 pounds; and
grain corn production was 57,141,300 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.
- 28 -
• BUSINESS AND INDUSTRY ...
Lubbock SMSA Labor Force Estimates
(Source: Texas Employment -Commission)
December November October December November
October
1982* 1982 1982 1981 1981
1981
Civilian Labor Force 111,079 116.66 TUF;W 103750 T 7;M
Total Employment 106,072 105,100 103,250 102,950 101,650
I06,20
101,850
Unemployment 5,007 5,500 5,550 3,800 5,450
4,350
Percent Unemployed 4.5% 5.0% 5.11% 3.7% 5.1%
4.1%
* Subject to revision.
The Texas Employment Commission reported in February, 1983, that December, 1982,
nonagricultural employment in the Lubbock area totaled 91,150, up from 69,260 in
February,
1981; of this total an estimated 11,000 were employed in manufacturing compared to
12,060 in
February, 1981.
Over 240 manufacturing plants in Lubbock produce such products as consumer products
utilizing
semi -conductor elements, vegetable oils, heavy earth -moving machinery, irrigation
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.
Some larger industries in Lubbock (with 100 employees or more) are:
Estimated
Employees
January
Company Product
1983*
Texas Instruments, Inc. Consumer Products w1th Semi-ConductoF
Elements
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
Frito-Lay, Inc. (Subsidiary of Potato and Corn Chips
300
Pepslco, Inc.)
Evans Transportation Can any (Division of '
Evans Products Company Pressure Vessels for Rail Cars
250
Goulds Pumps, Inc. Vertical Turbine Pumps
200
Coca-Cola Bottling Company Soft Drinks
175
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.
Mrs. Baird's Bakeries Bread Products
125
Johnson Manufacturing Company (Division of Heavy Earth -Moving Machinery and
125
Eagle-Picher Industries) Farm Equipment
Bell Dairy Products, Inc. Dairy Products
100
Lubbock Cotton Oil Company Cottonseed Oil and Other Cottonseed
100
Products, Soyean Oil
Dr. Pepper -Seven Up Bottling Company Soft Drinks
100
* Source: Lubbock Chamber of Commerce.
- 29 -
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 approximately 5,000 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 b Marketin Manage-
ment, Survey of Buying Power, estimates Lubbock County 1981 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 b 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 19Deposits
71,M
1972 596,697,439
1973 723,327,701
1974 793.915,466
1975 878.164,171
1976 1.013.973,289
EDUCATION ... TEXAS TECH UNIVERSITY ...
Year End
�De o�slts
1977`
1978
$1, IU4, 60Z,853
1,104,896,188
1979
1,219,990,000
1980
1,369,037,000
1981
1,500,160,DDO
1982
1,586,469,DOO
Established in Lubbock in 1925, Texas Tech University is the third largest State-owned Univer-
sity in Texas and had a Spring, 1983 enrollment of 21,226. Accredited by the Southern
Association of Colleges and Schools, the University is a co-educational, State -supported insti-
tution offering the bachelor's degree in 109 major fields, the master's degree in 73 major
fields, the doctorate degree in 59 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. 1982-83 faculty=membership is
over 1,500, and there are over 4,500 other full and part-time employees including professional
and administrative staff. Including the Medical School, the University's operating budget for
1982-83 is over $176.1 million of which $118.3 million is from State appropriations; book value
of physical plant assets, including the Medical School, 1s $321.9 million.
In 1969, the State Legislature authorized the establishment of a medical school at the Univer-
sity. Construction. of Pods A and B of the school is complete, and construction on Pod C is near
completion. The medical school opened in 1972, and had an enrollment of 366 for the Spring
Semester, 1983. not including residents. There are 47 graduate students. The School of
Nursing admitted its first class in Fall, 1981 and had a Spring Semester, 1983 enrollment of
108. The Allied Health School admitted its first class in Fa11, 1982, and Spring Semester, 1983
enrollment, is 7 physical therapy students.
OTHER EDUCATION INFORMATION
The Lubbock Independent School District, with an area of 87.5 square miles. includes over 95%
of the City of Lubbock. October, 1982, enrollment was 28,825; there were 1,977 faculty and
professional personnel and 1,238 other employees. The District operates 5 senior high schools,
8 junior high schools, 35 elementary schools and other educational programs. The District
currently has under construction 3 new elementary schools and expects these to be completed and
in use for the Fall, 1983 semester.
- 30 -
SCHOLASTIC MEMBERSHIP HISTORY*
Refined
Average
School
Student
Daily
Year
Membership
Att e
92-73
1973-74
00
32.499
�� ,716
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
28,942
26,995
1982-83
28,825**
* Source: Superintendent's Office, Lubbock Independent School District.
** As of October, 1982 (end of first six weeks period).
Lubbock Christian College, a privately owned, co-educational senior college located in Lubbock,
had an enrollment of approximately 860 for the Spring Semester, 1983, 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 owned by the College.
Course offerings cover technical/vocational subjects, and Spring, 19M enrollment was
approximately 1,020. The College also operates a major off -campus learning center at Reese Air
Force Base; course offerings are in primarily academic subjects and Spring, 1983 enrollment was
411.
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 1982/83 is in excess of.S12.0 million. The School is operating at 100% capacity, and -has
over 800 professional and other employees.
TRANSPORTATION ...
Scheduled airline transportation at Lubbock International Airport is furnished by American
Airlines, Delta Airlines. Continental Airlines, and Southwest Airlines. Non-stop service is
provided to Dallas -Fort Worth Regional Airport, Dallas Love Field, Houston, Amarillo, Austin,
E1 Paso and Midland -Odessa. 1982 passenger boardings totaled 505,871. 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 several 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.
- 31 -
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 2,634 military and
568 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 January, 1283 total of 1,508 licensed beds. Methodist
Hospital, the largest, employs 533 of its licensed 549 beds, and also operates an accredited
nursing school; St. Mary's of the Plains Hospital utilizes 203 beds of its licensed 222 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 210 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 90 dentists. A radiology center for the treatment of malignant
diseases is located in the City.
RECREATION AND ENTERTAINMENT ...
Lubbock's Mackenzie State Park and 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.
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.
- 32 -
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 a 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 UtilitX Connections
Postal
Year
Permits ater sas Electric
e e one
Receipts
1971
�Deposits
S 47 7, Z41 184 $ U, U3S W 7tE M XT, ebb
527,314,293 69,209,358 43,012 44,421 49,970
N.A.
�'� 3. W
4,323,582
1972
596,697,439 64,278.038 44,331 45,168 50,717
N.A.
5,241,799
1973
723,327,701 78,844,779 45.565 45.650 50,994
N.A.
5,317,985
1974
793,915,466 118,718,253 46,745 46,548 51,739
N.A.
5,737,352
1975
878,164,171 114,923,400 47,817 47,671 52,451
N.A.
6.662.348
1976
1,013,973,289 91.904.380 49.933 48,809 56,008(3)
N.A.
8.027.363
1977
1,104,602,863 131,951.646 50,825 50,062 60,077
83,646
10,778,787
1978
1,104,896,188 132,600,657 52,629 51.266 63,123
87,159
11,006.891
1979
1,219,990,000 104,883,750 53,705 52,199 65,294
89,873
11.75B.260
1980
1,369,037,000 88,829,331 54.788 53,083 66,885
91,546
12,882,061
1981
1,500,160.000 106,757.064 55,527 53,785 74,224
93,860
13,867,490
1982
1,586,469,000 130,720,599 56,172 54,650 75,975
96.950
15,875,810
Notes:
(1) All data 1970-1982 as of 12-31, except Postal Receipts which are as of 6-30 for
1967-76 and as of 12-31 for 1977/82.
(2) Total mains plus equivalent mains - count of telephone
lines of
all types to
residences and businesses; not a count of telephone instruments.
(3) Electric connections include those of a privately owned
utility company. 12-31-76
electric connections reflect institution of metering
of individual apartment
units.
- 33 -
BUILDING PERMITS BY CLASSIFICATION
(Source: City of Lu oc exas
Residential Permits
Single
Family
Duplexes
ar
en s
Total es
en a
No. Permits
No. Dwelling
Year
No. Units
Value
Units
Value
No. Units
Value
Units
Value
Mg
1970
427
485
3Ia—'677' 800
10.942.391
-15
30
T 75d`,=
429,700
52
633
S 364,UUU
5,966,400
551
1,148
$I1,I ,I06
17,338,491
1971
864
20,782,556
67
134
2.297,700
894
10,079,491
1,892
33,159,747
1972
852
22,667,238
75
150
3,008,650
1,171
11.315,898
2,173
36,991,786
1973
815
22,702,186
52
104
2,317,050
949
9,121,400
1,868
34,140,636
1974
893
29,446,897
34
68
1.440,500
773
7,315,500
1,734
38,202,897
1975
1,002
37,766,603
23
46
1,165,450
734
5,592,000
1,782
44.524,053
1976
1,164
44,220,463
48(
96)
2.723,150
712
6,908,000
1,972
53.851,613
1977
1,713 -
72,055,014
72(144)
4,011,400
1,654
22,571,000
3,511
98,637,414
1978
1,276
62,785,400
80
160j)
5,074,550
636
9,479,000
2,072
77,338,950
1979
935
50.207,289
16
32
897.000
300
5.144,680
1,267
56,248,969
1980
895
50,943,410
36
72)
2,293,900
216
3,535,500
1,183
56,772,810
1981
655
47,760,510
13(
23
*
1,389,500
748
20,415,552
1,426
69,565,562
1982
733
56,023,000
34(
68
2,442,250
860
18,504,660
1,661
76,969,910
Commercial,
Public
Total
and Other
Building
Permits
Permits
W; 7b
22,697,277
40,035,768
36,049,611
69,209,358
27,286,253
64,278,039
44,704,143
78,844,779
80,515,356
118.718,253
70,299,347
114,823,400
38,052,767
91,904,380
33.314,232
131,951,646
55,261.707
132,600,657
48,634,781
104,883,750
32,056,521
88,829,331
37,191,502
106,757,064
53,750,689
130,720,599
Notes: (1) Data shown under "No. Units" is for each individual apartment dwelling unit, and is not for separate buildings.
* As reported by City.
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 ND -LITIGATION CERTIFICATE i
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 ordinance. 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.
- 35 -
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 Ordinance authorizing the issuance of the Bonds will also 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 Purchaser.,
ATTEST:
EVELYN E. GAFFGA
City Secretary
IV,
- 36 -
BILL 14CALISTER
Mayor
r - • n`A
_yam �Q1"eel
TELEPHONE: 214/855-S000
FACSIMILE: 214/855-8200
WRITERS DIRECT DIAL NUMBER:
214/655-8002
FULBRIGHT & JAWORSKI
Mr. Joe W. Smith
First Southwest Company
402 Cypress, Suite 103
Abilene, Texas 79601
Ms. Ranette Boyd
City of Lubbock, Texas
1625 13th Street
Lubbock, Texas 79401
Gentlemen and Ms. Boyd:
2200 Ross AVENUE
SUITE 2800
HOUSTON
DALLAS, TEXAS 75201 WASHINGTON. D.C.
AUSTIN
SAN ANTONIO
DALLAS
NEW YORK
LOS ANGELES
LONDON
ZURICH
HONG KONG
July 23, 1992
The Depository Trust Company
55 Water Street, 49th Floor
New York, New York 10041
Attn: General Counsel's Office
Texas Commerce Bank National Association
1314 Avenue K
Lubbock, Texas 79401
Enclosed please find an affidavit of publication relating to the notice of
redemption published with respect to the bonds specified in such notice. Each of you
should secure the affidavit of publication and the attached notice of redemption in your
permanent records.
Very truly yours, %
l t • l,NA71117�
Mark S. Westergard
MSW:lc
Enclosure
.r.
V\
Min
Copy
City and County of New York, ss.:-
of Joanne Ruvolo, being duly sworn, says that she is the Advertis-
ing Clerk of THE BOND BUYER, a daily and weekly newspaper
printed and published at One State Street Plaza, in the City of New
Advertisement York, County of New York, State of New York; and the notice, of
which the annexed is a print d c y, was regularly published in
said THE BOND BUYER on d o2 /
Advertising Clerk
992
ALICIA PADILLA
Notary Public, State of New York
No. 01-4955198
Qualified In IKings County
Commission Expires August 28, 1993
Notice of Bond Redemption
NOTICE IS HEREBY GIVEN that the City of Lubbock, Texas
t (the ."City"), ' through its governing body and by ordinance duly
passed, has called for redemption certain outstanding bonds of -
those series of bonds of the City described as follows:
City of Lubbock, Texas, General Obligation Bonds, Series 1983.
dated May 15, 1983, maturing on February15, 1994 through
February 15, 2003. being bonds numbered 1856 through and
including 3755, agregattng In principal amount of $9,500.000
(the "Series 1983 fonds"): and
City of Lubbock. Texas, General Obligation Refunding Bonds.
Series 1985, dated November 15, 1985, maturing on February
15. 1996 through February 15. 1999. and atin in princi-
pal amount of $13,515,000 (the "Series 1Bonds').
THE FIFTEENTH DAY OF FEBRUARY, 1993. Is the date fixed
.ve rcdc-.rpticn of the Series 1983 Bonds and THE FIFTEENTH DAY
OF FEBRUARY, 1995, is the date fixed for redemption of the Series
1985 Bonds, as prescribed In the aforesaid ordinance, and you are
hereby notified that such bonds should be presented for redemption
at Texas Commerce Bank National Association on or immediately be-
fore the respective dates of redemption, that Interest on all such
bonds shall cease to accrue from and after the respective redemption
dates, and that on the respective. dates of redemption such interest
will become due and payable on each of such bonds together with the
redemption price of 100% of par thereof and accrued interest to the
respective dates of redemption.
NOTICE OF ISSUANCE OF REFUNDING FONDS
NOTICE to Holders of Commonwealth of Pennsylvania
General Obligation Bands, Second Series S of 19A
First Series of 19K Third Series of W4,
Second Series or 1985, Third Series of 1985,
and Second Series A of 1988
NOTICE IS HEREBY GIVEN that the Commonwealth of Pennsylvania on July 14.
1992 issued its $405,426.408.35 General Obligation Bonds, Second Series of 1992 (the
`Boods'l. In part for the purpose of refunding in advance of maturity the Commonwealth
of Pennsylvania general obligation bonds set forth below: ,
Maturities Redemption
Designation Date of Bonds Refunded Date
Second Series S June 1, 1993 December 1, June 1, 1993
of 1993 1995 to 2002
First Series April 1. 1984 October 1. April I. M4
of 1984 1995 to 2003
Third Series December IS. 1%4 June 15. December M 0%
of 1984 1996 to 2004
Second Series Jute 1. 1985 December I, June I, 1995
Of 1985 1996 to 2004
Third Series 985 October 15. IApril 15. October M 1995
of 1985 1998 to 2005
Second Series A May I5, 1988 May M May M 1999
Of 1998 1999 to 2008
A portion of the proceeds of the Bonds has been irrevocably deposited with the State
Treasurer so be held solely for the benefit of the holden of those portions of the Second
Series S of 1983 Bonds, the First Soria of 1994 Bonds, the Third Series of 1984 Bands,
die Second Series of 1985 Bonds. the Third Series of 1985 Bonds and the Second Series
A of 1999 Bonds (collectively. the "Prior Boods'l being refunded and has been invested
in certain direct obligations of the United States of America as will assure sufficient mrnrneys
for the payment of interest on said portions of Prior Bonds being refunded as the same
WWI become due to and including the redemption dam and for the Payment of the prin-
cipal land redemption premium thereon, if any, on their redemption date, all as set farth
In I Certification of the State 199
Treasurer, dared July 14, 2. The refunded maturities of
said Prior Bonds hove been irrevocably called for redemption on die data listed in the
table above.
tATHERINE BAKER KNOLL
State Treasurer
Commonwealth of Pennsylvania