HomeMy WebLinkAboutResolution - 070177A - Procedures To Be Followed In Sale Of GO Bond - 07_01_1977JPB:hw
RESOLUTION
A RESOLUTION by the City Council of the City of Lubbock, Texas,
relating to procedures to be followed in the sale of $2, 720, 000. 00 City of
Lubbock, Texas, General Obligation Bonds, Series 1977, and subsequent
issuances of General Obligation Bonds in later Sb2-ies, all as authorized at
the election of May 21, 1977; providing the forms of procedures and in sub-
stantial form all instruments for said Series 1977 and subsequent series;
stating the intent and desire of the City Council to proceed with such Series
1977 expediciously and subsequent Series as appropriate within their dis-
cretion; reserving the right to make corrections and insubstantial and im-
material changes and modifications in all such Series 1977 instruments and
the instruments of subsequent Series so that each will reflect the true facts,
circumstances and dates at time of ultimate execution; resolving other matter
incident and related to the purpose, including the filing of an action under the
provisions of Vernon's Ann. Civ. St., art. 717m; and providing an effective
date for this Resolution.
WHEREAS, this City Council has determined and does hereby
determine that:
(1) It should proceed with the authorization of bonds to be known as
"City of Lubbock, Texas, General Obligation Bonds, Series 1977"; and,
(2) That it should at such times appropriate within its discretion
further proceed with subsequent Series of General Obligation Bonds, also
as authorized by the election of May 21, 1977; and,
(3) That it is necessary and expedient that the instruments and pro-
cedures necessary to the accomplishment of such purpose be now defined so
that same may be subjected to judicial consideration, reserving the right
to make all corrections, modifications and changes necessary so that said
instruments at the time ultimately enacted, executed or delivered shall
accurately reflect conditions at the time of such enactment, execution or
delivery, provided such corrections, modifications and changes shall not
substantially or materially effect the substance of the proposed instruments;
and,
(4) That a clear and concise declaration of the intentions and desires
as to such immediately proposed and subsequent General Obligation Bond
issuances be of record; and,
(5) That form of the Ordinance to be hereafter enacted setting all
terms and conditions of the Series 1977 of General Obligation Bonds be pro-
vided; as well as prescribing the form of notice to be published in accordance
with Article VIII, Section 5 of the City Charter and the form of n^}a -
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sale to be distributed to proposed bidders, as well as all further instruments
necessary to the sale and delivery of said Series 1977; and,
(6) It should institute an action under Vernon's Ann. Civ. St., art. 71
in order that all matters possible arising under the bond election of
May 21, 1977, and the issuance of Series 1977 Bonds and all subsequent
issuances thereunder may be validated and confirmed; NOW THEREFORE:
II BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1. THAT the recitals and determinations made in the
preamble hereof are found to be true and are adopted as the findings of this
governing body.
SECTION 2. THAT this Council proposes to proceed as quickly as
possible subject to the Oudicial procedures contemplated hereby, with the
sale and delivery of $2, 720, 000.00 City of Lubbock, Texas, General
Obligation Bonds, Series 1977.
SECTION 3. THAT this Council proposes to proceed as quickly and
appropriate thereafter in their discretion with procedures leading to sale
and delivery of additional Series of General Obligation Bonds, all as
authorized by the citizens at the election of May 21, 1977.
SECTION 4. THAT the City Attorney is directed to institute and file
an appropriate action, under the provisions of Vernon's Ann. Civ. St. ,
art. 717m, to approve and validate the bonds now sought to be issued and
obtain appropriate relief against the institution of suits which would or
might prevent the carrying out of the wishes of the electorate, all in the
manner provided by said law.
SECTION $?. THAT this Council proposes to enact at the soonest
possible and appropriate date, in substantially identical form, an Ordinance
authorizing the issuance of $2, 720, 000.00 City of Lubbock, Texas,
General Obligation Bonds, Series 1977, and setting all provisions to govern
same. That Ordinance, shall be shall be substantially in the following form: ✓
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SECTION 6. THAT this Council proposes thereafter to issue and
approve a notice of sale, which except for the date and time of sale, shall
be in substantially the following form:
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That such notice is the format of the notice which the City proposes to
use in meeting the requirement of Article VIII, Section 5 of the City
Charter, in that such notice would be published (after being completed) once
a week for four consecutive weeks in the Lubbock Avalanche -Journal, a new
paper of general circulation in and published in the City of Lubbock.
That the date and time to be set in such notice for the receipt of bids
would be not less than 30 days following the date of the first publication;
that the time of day established for the pale shall be between the hours of
9 A. M. and 4 P. M.; that the City Council proposes to convene in open
session, after notice thereof has been given in compliance with Article 6252-
17, V. A. T. C. S. for the purpose of opening and considering bids or proposals
for the purchase of such bonds.
SECTION 7. THAT additionally this Council proposes to approve and
cause to be distributed an official Statement and Notice of Sale in substan-
tially the following form:
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The Council reserves the right to cause such instrument to be mod-
ified and amended to reflect at time of distribution current information as to
all matters included, but not changes of a substantial or material nature at
law are contemplated.
That said documents shall be distributed to investment bankers and
others who would normally submit proposals for the purchase of bonds of
the kind and character to be offered for sale and the City proposes to cause
such distribution to be made.
SECTION 8. THE notices herein set forth are hereby approved as to
form so as to permit the bidders on such bonds to establish an interest
rate or rates that such bonds are to bear as specified therein. The form
of the Resolution which the City proposes to adopt awarding ultimately the
sale of bonds will be in substantially the following form:
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SECTION 9: JPHAT the Council further proposes during the procedures
leading to ultimate sale and delivery of the $2, 720, 000.00 City of Lubbock
Texas, General Obligation Bonds, Series 1977, and all subsequent Series
authorized by the election of May 21, 1977, to adopt and utilize the following
additional instruments in each Series substantially as follows:
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SECTION 10. THAT the language of each instrument proposed to be
utiliked as included in this Resolution, is in each instance adopted as a part
of this Resolution and as the findings and determinations hereof. The
Council reserves the right to make appropriate corrections and insubstantial
and immaterial changes and modifications in all such instruments so that
each will reflect the true facts, circumstances and dates at the time of
ultimate execution.
SECTION 11. IT is the intention of the Council to further utilize sub-
stantially identical procedures and instruments hereafter in proceedings for
the issuance of further Series of General Obligation Bonds under the
authority of the election of May 21, 1977.
SECTION 12. THIS Resolution shall be effective from and after its
passage.
Passed by the City Council this
R
11 ATTEST:
3 'day of 0':ilty , 1977.
Treva Phillips, City S cretary-Treasurer
APPROVED AS TO FORM:
MA
ORDINANCE NO.
AN ORDINANCE by the City Council of the City of
Lubbock, Texas, authorizing the issuance of
$2,720,000 "CITY OF LUBBOCK, TEXAS, GENERAL
OBLIGATION BONDS, SERIES 1977," dated Septem-
ber 1, 1977, for the purpose of making permanent
public improvements, to wit: $400,000 for con-
structing improvements and extensions to the
City's waterworks system; $500,000 for construc-
ting improvements and extensions to the City's
sanitary sewer system; $100,000 for constructing,
enlarging, extending and installing storm sewers,
drains and gutters and other improvements inci-
dental thereto, including the acquisition of land
for drainage purposes and drainage area modifica-
tions; $1,050,000 for constructing street improve-
ments in and for said City, including lighting and
signalization; and $670,000 for constructing, im-
proving and equipping fire station buildings in
and for said City and the purchase of necessary
sites therefor; prescribing the form of the bonds
and the form of the interest coupons; levying a
continuing direct annual ad valorem tax on all
taxable property within the limits of said City
to pay the interest on said bonds and to create
a sinking fund for the redemption thereof and
providing for the assessment and collection of
such taxes; enacting provisions incident and re-
lating to the subject and purpose of this ordi-
nance; and providing an effective date.
WHEREAS, pursuant to an election held in the City of Lubbock
on the 21st day of May, 1977, this City Council became authorized
and empowered to issue general obligation bonds of the City to ma-
ture serially over'a period of years not to exceed forty (40) years
from their date, for the purpose of making permanent public improve-
ments, to wit:
$16,775,000 for constructing improvements and extensions
to the City's waterworks system;
$ 3,303,000 for constructing improvements and extensions
to the City's sanitary sewer system;
$ 473,000 for constructing, enlarging, extending and
installing storm sewers, drains and gutters
and other improvements incidental thereto,
including the acquisition of land for drainage
purposes and drainage area modifications;
$ 4,782,000 for constructing street improvements in and
for said City, including lighting and signali-
zation;
$ 792,000 for constructing, improving and equipping fire
station buildings in and for said City and the
purchase of necessary sites therefor;
310,000 for constructing, improving, and equipping
fire station buildings in areas presently
adjoining the City and the purchase of nec�
essary sites therefor (at such time as the
areas are annexed to the City);
AND, WHEREAS, this City Council now deems it advisable and to
the best interest of the City that of the bonds voted at the election
held May 21, 1977, the following should now be issued, all as reflectec
by the following table:
AMOUNT
DATE AU- AMOUNT BEILG UNISSUED
THORIZED PURPOSE AUTHORIZED ISSUED BALANCE
5-21-77 WW Imp & Ext
5-21-77 SS Imp & Ext
5-21-77 Storm Sewer & Drainage
5-21-77 Str Imp, Ltng & Sigal
5-21-77 Fire Sta Bldgs & Sites
5-21-77 Fire Sta Bldgs & Sites
(Areas when annexed)
$16,775,000 $ 400,000 $16,375,000
3,303,000
500,000
2,803,000
473,000
100,000
373,000
4,782,000
1,050,000
3,732,000
792,000
670,000
i22,000
310,000
-0-
310,000
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE C!,"Y
OF LUBBOCK, TEXAS:
SECTION 1: That the bonds of said City, to be known as "CITY
OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1977," be and the
same are hereby ordered to be issued in the principal sum of TWO
MILLION SEVEN HUNDRED TWENTY THOUSAND DOLLARS ($2,720,000) for the
purpose of making permanent public improvements, to wit: $400,000
for constructing improvements and extensions to the City's waterworks
system; $500,000 for constructing improvements and extensions to the
City's sanitary sewer system; $100,000 for constructing, enlaring,
extending and installing storm sewers, drains and gutters and other
improvements incidental thereto, including the acquisition of land
for drainage purposes And drainage area modification; $1,050,000 for
constructing street improvements in and for said City, including
lighting and signalization; and $670,000 for constructing, improving
and equipping fire station buildings in and for said City and the
purchase of necessary sites therefor; under and by virtue of the
Constitution and laws of the State of Texas.
SECTION 2: That said bonds shall be numbered consecutively
from One (1) through Five Hundred Forty -Four (544), shall each be in
denomination of Five Thousand Dollars ($5,000), aggregating TWO
MILLION SEVEN HUNDRED TWENTY THOUSAND DOLLARS ($2,720,000);.shall
be dated September 1, 1977, and shall become due and payable serially,
without right of prior redemption, on March 1 in each of the years in
accordance with the following schedule:
BOND NUMBERS
(All Inclusive)
MATURITY
AMOUNT
1 to 27
1978
$ 135,000
28 to 54
1979
135,000
55 to 81
1980
135,000
82 to 108
1981
135,000
109 to 135
1982
135,000
136 to 162
1983
135,000
163 to 189
1984
135,000
190 to 216
1985
135,000
217 to 243
1986
135,000
244 to 270
1987
135,000
271 to 297
1988
135,000
298 to 324
1989
135,000
325 to 351
1990
135,000
352 to 378
1991
135,000
379 to 405
1992
135,000
406 to 432
1993
135,000
433 to 460
1994
140,000
461 to 488
1995
140,000
489 to 516
1996
140,000
517 to 544
1997
140,000
SECTION 3: The bonds herein authorized to be issued shall bear
interest from date to maturity at per annum rates to be established
at the time said bonds are sold (but in no event shall any bonds of
this series bear interest at a rate in excess of 10% per annum),
such interest to be evidenced by proper coupons attached to each of
said bonds and said interest shall be payable on March 1, 1978, and
semiannually thereafter on September 1 and March 1 in each year.
SECTION 4: That both principal of and interest on said bonds
shall be payable in lawful money of the United States of America,
without exchange or collection charges to the owner or holder, at
the FIRST NATIONAL CITY BANK, New York, New York, or, at the option
of the holder, at the TEXAS COMMERCE BANK, NATIONAL ASSOCIATION,
Lubbock, Texas,, upon presentation and surrender of bonds or proper
coupons.
SECTION 5: That the seal of said City may be impressed on
each of said bonds or, in the alternative, a facsimile of such
seal may be printed on the said bonds. The bonds and interest
coupons appurtenant thereto may be executed by the imprinted fac-
simile signatures of the Mayor and City Secretary of the City,
and execution in such manner shall have the same effect as if
such bonds and coupons had been signed by the Mayor and City
Secretary in person by their manual signatures. Inasmuch as
such bonds are required to be registered by the Comptroller of
Public Accounts for the State of Texas, only his signature (or
that of a deputy designated in writing to act for the Comptroller)
shall be required to be manually subscribed to such bonds in con-
nection with his registration certificate to appear thereon, as
hereinafter provided, all in accordance with the provisions of
Article 717j-1, V.A.T.C.S.
SECTION 6: That the form of said bonds shall be substantially
as follows:
NO. UNITED STATES OF AMERICA $5,000
STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION
BOND, SERIES 1977
The CITY OF LUBBOCK, a municipal corporation of the State of
Texas, acknowledges itself indebted to and, FOR VALUE RECEIVED,
hereby promises to pay to bearer, without right of prior redemp-
tion, the sum of
FIVE THOUSAND DOLLARS
($5,000), in lawful. money of the United States of America, on the
1st day of March, 19�, with interest thereon from the date hereof
to maturity at the rate of PER CENTUM
( '/) per annum, payable on March 1, 1978, and semiannually
thereafter on September 1 and March 1 in each year, and interest
falling due on of prior to maturity hereof is payable only upon
presentation and surrender of the interest coupons hereto attached
as they severally become due.
BOTH PRINCIPAL OF and interest on this bond are hereby made
payable at the FIRST NATIONAL CITY BANK, New York, New York, or,
at the option of the holder, at the TEXAS COMMERCE BANK, NATIONAL
ASSOCIATION, Lubbock, Texas, without exchange or collection charges
to the owner or holder, and for the prompt payment of this bond
and the interest thereon at maturity, the full faith, credit and
resources of the City of Lubbock, Texas, are hereby irrevocably
pledged.
THIS BOND is one of a series of Five Hundred Forty -Four (544)
serial bonds, numbered consecutively from One (1) through Five Hun-
dred Forty -Four (544), each in denomination of Five Thousand Dollars
($5,000), aggregating TWO MILLION SEVEN HUNDRED TWENTY THOUSAND
DOLLARS ($2,720,000), issued for the purpose of making permanent
public improvements, to wit: $400,000 for constructing improve-
ments and extensions to the City's waterworks system, $500,000 for
constructing improvements and extensions to the City Is sanitary
sewer system; $100,000 for constructing, enlarging, extending and
installing storm sewers, drains and gutters and other improvements
incidental thereto, including the acquisition of land for drainage
purposes and drainage area modifications; $1,050,000 for con-
structing street improvements in and for said City, including
lighting and signalization; and $670,000 for constructing, improv-
ing and equipping fire station buildings in and for said City and
the purchase of necessary sites therefor, under authority of the
Constitution and laws of the State of Texas, and pursuant to an
ordinance duly adopted by the City Council of the City of Lubbock,
Texas, and recorded in the Minutcs of said City Council.
IT.IS HEREBY CERTIFIED, RECITED AND REPRESENTED that the
issuance of this bond and the series of which it is a part is
duly authorized by law ead by authority expressly conferred at an
election held for that purpose within said City; that all acts,
conditions and things required to be done precedent to and in
the issuance of this series of bonds and of this bond, have been
properly done and performed and have happened in regular and due
time, form and manner as required by law; that sufficient and
proper provision has been made for the levy and collection of
taxes which, when collected, shall be appropriated exclusviely
to the payment of this bond and the series of which it is a part,
and to the payment of the interest coupons thereto annexed, as
the same shall become due; and that the total indebtedness of the
City of Lubbock, Texas, including the entire series of bonds of
which this is one, does not exceed any constitutional or statu-
tory limitation.
IN TESTIMONY WHEREOF, the City Council of the City of Lubbock,
Texas, in accordance with the provisions of Article 717j-1, V.A.T.
C.S., has caused the seal of said City to be impressed or a fac-
simile thereof to be printed hereon, and this bond and its appur-
tenant coupons to be executed with the imprinted facsimile
signatures of the Mayor and City Secretary of said City; the date.
of this bond, in conformity with the ordinance above referred to,
being the 1st day of September, 1977.
Mayor, City of Lubbock, Texas
COUNTERSIGNED:
City Secretary, City of Lubbock,
Texas
SECTION 7: That the form of interest coupons attached to
each of said bonds shall be substantially as follows:
The CITY OF LUBBOCK, a municipal corporation of on the 1st day of
the State of Texas, hereby promises to pay to ,
bearer, at the FIRST NATIONAL .CITY BANK, New
York, New York, or, at the option of the holder,.
at the TEXAS COMMERCE BANK, NATIONAL ASSOCIA- No. $_
TION, Lubbock, Texas, without exchange or col-
lecti.bn charges to the owner or holder, the sum SERIES 1977
of
DOLLARS ($ ._ ), Bond
in lawful money of the United States of Americ No.
said sum being months'. interest due that
day on "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGA
TION BOND, SERIES 1977," dated September 1,1977.
City Secretary
Mayor
SECTION 8: That the following certificate shall be printed
on the back of each bond:
OFFICE OF COMPTROLLER
REGISTER NO.
STATE OF TEXAS
I HEREBY CERTIFY that there is on file and of record in my
office a certificate of the Attorney General of the State of Texas
to the effect that this bond has beeci examined by him as required
by law, and that he finds that it has been issued in conformity
with the Constitution and laws of the State of Texas, and that
it is a valid uad binding obligation upon said City of Lubbock,
Texas, and said bond has this day been registered by me.
WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas,
Cu,,iptroller of Public Accounts
of the State of Texas
SECTION 9: That to provide for the payment of the debt serv-
ice requirements on the said bonds, being (i) the interest on said
bonds and (ii) a sinking fund for their redemption at maturity or
a sinking fund of 2% (whichever amount shall be greater), there
shall be and there is hereby levied for the current year and each
succeeding year thereafter while said bonds or interest thereon
shall remain outstanding and unpaid, a sufficient tax on each one
hundred dollars' valuation of taxable property in said City, ade-
quate to pay such debt service requirements, full allowance being
made for delinquencies and costs of coll@ttion; said tax shall be
assessed and collected each year and applied to the payment of the
said debt service requirements, and the same shall not be diverted
to any other purpose. The taxes so levied shall be paid into a
fund known as "SPECIAL GENERAL OBLIGATION BOND FUND, SERIES 1977,11
which is hereby established for the payment of the obligations herein
authorized. The City Council hereby declares its purpose and intent
to provide and levy a tax legally and fully sufficient for such bonds,
it having been determined that the existing and available taxing
authority of the City for such purpose is adequate to permit a
legally sufficient tax in consideration of all other outstanding
obligations.
SECTION 10: That the Mayor of said City shall be and he is
hereby authorized to take and have charge of all necessary orders
and records pending investigation by the Attorney General of the
State of Texas, and shall take and have charge and control of the
bonds herein authorized pending their approval by the Attorney
General and their registration by the Comptroller of Public Accounts.
SECTION 11: That the purchasers' obligation to accept de-
livery o_ the bonds herein authorized is subject to their being
furnished a final opinion of Messrs. Dumas, Huguenin, Boothman
and Morrow, Attorneys, Dallas, Texas, approving such bonds as to
their validity, said opinion to be dated and delivered as of the
date of delivery and payment for such bonds. Printing of a true
and correct copy of said opinion on the reverse side of each of
such bonds, with appropriate certificate pertaining thereto exe-
cuted by facsimile signature of the City Secretary of the City of
Lubbock, Texas, is hereby approved and authorized.
SECTION 12: That the City hereby covenants that the.proceeds
from the sale of said bonds will be used as soon as practicable for
the purpose for which said bonds are issued; that such proceeds
will not be invested in any securities or obligations except for
the temporary period pending such use; and that such proceeds will
not be used directly or indirectly so as to cause all or any part
of said bonds to be or become "arbitrage bonds" within the meaning
of Section 103(c) of the Internal Revenue Code of 1954, as amended,
or any regulations or rulings prescribed or made pursuant thereto.
SECTION 13: CUSIP numbers may be printed on the bonds herein
authorized. It is expressly provided, however, that the presence or
absence of CUSIP numbers on the bonds shall be of no significance
or effect as regards the legality thereof and neither the City nor
attorneys approving said bonds as to legality are to be held re-
sponsible for CUSIP numbers incorrectly printed on the bonds.
SECTION 14: This ordinance shall take effect and be in force
immediately from and after its final passage, and it is so ordained.
PASSED AND APPROVED on first reading this the day of
1977.
PASSED AND APPROVED on second and final reading this the
day of , 1977.
Mayor, City of Lubbock, Texas
ATTEST:
City Secretary, City of Lubbock,
Texas
(City Seal)
,
NOTICE OF SALE
CITY OF LUBBOCK, TEXAS
The City Council of the City of Lubbock, Texas, will receive sealed bids
at the City Hall, Lubbock, Texas, until M. , Daylight
Saving Time, 1977. for the following described
bonds:
$2, 720, 000. 00 City of Lubbock, Texas, General Obligation Bonds,
Series 1977
Dated September 1, 1977; maturing $135, 000 each
year March 1, 1978. through 1993, and $140, 000
each year .March 1, 1994, through 1997. Denomina-
tion $5, 000. Non -optional.
Further information may be obtained from Mr. Sterling K. Miller,
Director of Finance, City of Lubbock, Texas, P. O. Box 2000, Lubbock,
Texas 79457; or from First Southwest Company, Mercantile Bank Building,
Dallas, Texas 75201, Financial Consultants to the City.
(City Seal)
City Secretary -Treasurer
City of Lubbock, Texas
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NOTICE OF SALE
AND
BIDDING IRMUCT1ONS
ON
$2,720,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
GENERAL OBLIGATION BONDS, SERIES 1977
Selling Thursday, September 29, 1977, at 10:30 AM, CDT
THE SALE
Bonds Offered for Sale at Com titive Bidding ... The City of Lubbock, Texas (the "City"), Is offering for
s e its , ever igationbonds,Series 1977 (the "Bonds").
Address of Bids ... Sealed bids, plainly marked "Bid for Bonds", should be addressed and delivered to "Mrs.
reva ups, City Secretary, City of Lubbock, Texas", prior to 10:30 AM, CDT, on the date of the bid
opening. All bids must be submitted on the Official Bid Form, without alteration or intertineation.
Place and Time of Bid Opening ... The City Council will open and publicly read the bids for the purchase
o at AM, CDT, Thursday, September 29, 1977.
Award of the Bonds ... The City Council will take action to award the Bonds for reject all bids) promptly
ter the opening of bids, and adopt an Ordinance authorizing the Bonds (the "Ordinance") and pass a
Resolution adopting the Official Statement.
THE BONDS
Des�cri tio�n ... The Bonds will be dated September 1, 19771 and interest coupons will be due on March 1,
I5T$, ankh —each September 1 and March 1 thereafter until maturity. The Bonds and interest coupons
attached thereto will be payable at Citibank, N.A., New York, New York, or, at the option of the holder,
at Texas Commerce Bank, National Association, Lubbock, Texas. The Bonds will mature serially on March'
1 In each year as follows:
Principal
Principal
Year Amount
Year
Amount
TW $TT3 666
TRI
N 1979 135,000
1989
_5T35',b0
135,000
1980 135,000
1990
135,000
1981 135,000
1991
135,000
1982 135,000
1992
135,000
1983 135,000
1993
135,000
1984 135,000
1994
140,000
1985 135,000
1995
140,000
1986 135,000
1996
140,000.
1987 135,000
1997
140,000
The Bonds are not optional for prior payment.
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,
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CONDITIONS OF THE SALE
T s of Bids and Interest Rates ... The Bonds will be sold in one block on an "All or None" basis, and at a
Ice o not less thaan t eieur 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 1/9 of 1% or 1/20 of 1% and must not exceed 10%. The highest coupon rate bid may not
exceed the lowest coupon rate bid by more than 2 1/2% in coupon. rate. No limitation is imposed upon
bidders as to the number of rates or coupon changes which may be used. All Bonds of one maturity must
bear one and the same rate. No bids involving supplemental coupons will be considered. Each bidder shall
state in his bid the total interest cost in dollars and the net effective interest rate determined thereby,
which shall be considered informative only and not as a part of the bid.
Basis for Award ... For the purpose of awarding the sale of the Bonds, the interest cost of each bid will
comp�ut y 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")
whose bid based on the above computation produces the lowest net effective interest cost to the City.
Good Faith Deposit ... A Good Faith Deposit, payable to the "City of Lubbock, Texas", in the amount of
, 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 avail-
able to the City prior to the opening of the bids, and shall be accompanied by instructions from the bank
on which drawn which authorize its use as a Good Faith Deposit by the Purchaser who shall be named in
such Instructions. The Good Faith Deposit of the Purchaser will be applied on the purchase price on the
date of delivery of the Bonds. No interest will be allowed on the Good Faith Deposit. In the event the
Purchaser should fail or refuse to take up and pay for the Bonds in accordance with his bid, then said
check shall be cashed and accepted by the City as full and complete liquidated damages. The checks
accompanying bids other than the winning bid will be returned immediately after the bids are opened, and
an award of the Bonds has been made.
DELIVERY OF THE BONDS AND ACCOMPANYING DOCUMENTS
Printed Bonds ... The City will furnish printed Bonds which will be executed by the facsimile, signatures
of the May3r_ and Secretary of the City, and by the manual signature of the Comptroller 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 TaMtre to print such number on any Bond nor any error with respect thereto shall constitute
cause for a failure or refusal by the Purchaser to accept delivery of and pay for the Bonds in accordance
with the terms of this Notice of Sale and the terms of the Official Bid Form. All expenses in relation to
the printing of CUSIP numbers on the Bonds shall be paid by the City; provided, however, that the CUSIP
Service Bureau charge for the assignment of the numbers shall be the responsibility of and shall be paid
for by the Purchaser.
Deliver ... The Bonds will be tendered for delivery to the Purchaser at any bank In Austin, Texas, at the
expense of the City. Payment for the Bonds must be made in immediately available funds for uncondi-
tional credit to the City, or as otherwise directed by the City. The Purchaser will be given five business
days' notice of the time fixed for delivery of the Bonds. It is anticipated that delivery can be made on or
about November 2, 1977, and it is understood and agreed that the Purchaser will accept delivery and make
payment for the Bonds on November 2, 1977, or thereafter on the date the Bonds are tendered for
delivery, up to and including November 16, 1977. If for any reason the City is unable to make delivery on
or before November 16, 1977, then the City shall immediately contact the Purchaser and offer to allow
the Purchaser to extend his offer for an additional thirty days. If the Purchaser does not elect to extend
his offer within five days thereafter, then his Good Faith Deposit will be returned, and both the City and
the Purchaser shall be relieved of any further obligation. In no event shall the City be liable for any
damages by reason of its failure to deliver the Bonds, provided such failure is due to circumstances beyond
-the City's reasonable control.
Conditions to Deliver ... The obligation of the Purchaser to take up and pay for the Bonds is subject to
ePurchasers receipt of (a) the legal opinion of Messrs. Dumas, Huguenin, Boothman and Morrow, 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.
am
Le�a_l Opinions ... The Bonds are offered when, as and If Issued, subject to the unqualified legal opinlon of
{ire Attorney General of the State of Texas, and Messrs. Dumas, Huguenin, Boothman and 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
w execute aniver tot urc ser a certificate In the form set forth in the Official Statement.
Change In Tax Exempt Status ... At any time before the Bonds are tendered for delivery, the Purchaser
may wit raw s h t interest received by private holders from bonds of the same type and charac-
ter shall be declared to be taxable income under present Federal income tax laws, either by ruling -of the
Internal Revenue Service or by a decision of any Federal court, or shall be declared taxable or be required
to be taken into account in computing any Federal income taxes, by the terms of any Federal income tax
Law enacted subsequent to the date of this Notice of Sale and Bidding Instructions.
GENERAL
Blue Laws ... By submission of his bid, the Purchaser represents that the sale of the Bonds in states
of r t texas will be made only pursuant to exemptions from registration or, where necessary, the
Purchaser will register the Bonds in accordance with the securities law of the states in which the Bonds
are offered or sold. The City agrees to cooperate with the Purchaser, at the Purchaser's written request
and expense, in registering the Bonds or obtaining an exemption from registration in any state where such
action is necessary.
Not an Offer to Sell ... This Notice of Sale does not alone constitute an offer to sell the Bonds, but is
merely nott-c-e-5TIEF 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 does not plan to sell any additional General Obligation Bonds
until see"General ligation Bond Program" in Official Statement).
Ratin s ... The outstanding General Obligation Bonds of the City are rated "Aa" by Moody's Investors
ncei Inc. and "AA" by Standard do Poor's Corporation. Applications for contract ratings on this issue
have been made to both Moody's and Standard do Poor's. The results of their determinations will be pro-
vided as soon as possible.
The Official Statement ... The City will furnish to the Purchaser, without cost, 50 copies of the Official
Statement (and 50 copies of any addenda, supplement or amendment thereto), complete 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 30 copies,
and may also arrange, at his total expense and responsibility, 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 distri-
bution or delivery of any of these copies to any one other than the Purchaser.
Additional Co ies of Notice Bid Form and Statement ... A limited number of additional copies of this
Notice o e an h ng instructions, the MiciaTBid Form and the Official Statement, as available
over and above the normal mailing, may be obtained at the offices of First Southwest Company, invest-
ment Bankers, 900 Mercantile Bank Building, Dallas, Texas 75201, Financial Advisors to the City.
The City reserves the right to reject any and all bids and to waive irregularities, except time of filing.
The City Council, by resolution adopted this 28th day of July, 1977, approved the form and content of the
Notice of Sale and Bidding Instructions, the Official Bid Form and Official Statement, and has authorized
the use thereof in its initial offering of the Bonds. On the date of the sale, the City Council will, by
resolution, reconfirm its approval of the form and content of the Official Statement, and any addenda,
supplement or amendment thereto, and authorize its further use in the reoffering of the Bonds by the
Purchaser.
ROY BASS
ATTEST: Mayor
TREVA PHILLIPS
City Secretary
July 28, 1977
-lii-
BOND YEARS
Accumulated
Year Amount Bond Years Bond Years Year
1978 $133,000 67.5 67.3 1978
1979 135,000 202.5 270.0 1979
1980 135,000 337.3 607.5 1980
1981 135,000 472.5 1,080.0 1981
1982 135,000 607.5 1,687.5 1982
1983 135,000 742.5 2,430.0 1983
1984 135,000 877.5 3,307.5 1994
1985 135,000 1,012.5 4,320.0 1985
1986 135,000 1,147.5 5,467.5 1986
1997 135,000 1,282.5 6,750.0 1987
1988 135,000 1,417.5 8,167.5 1989
1989 135,000 1,552.5 9,720.0 1989
1990 135,000 1,697.5 11,407.5 1990
1991 135,000 1,822.5 13,230.0 1991
1992 135,000 1,957.5 15,197.5 1992
1993 135,000 2,092.5 17,290.0 1993
1994 140,000 2,310.0 19,590.0 1994
1995 140,000 2,450.0 22,040.0 1995
1996 140,000 2,390.0 24,630.0 1996
1997 140,000 2,730.0 27,360.0 1997
Average. Maturity ------------------- 10.059 Years
-1v-
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 July 28, 1977
INTEREST EXEMPT, IN THE OPINION OF BOND COUNSEL, FROM PRESENT FEDERAL INCOME
TAXES UNDER EXISTING STATUTES, REGULATIONS AND COURT DECISIONS
$2,720,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
GENERAL OBLIGATION BONDS, SERIES 1977
Dated: September 1, 1977 Denomination: $5,000
Principal and semi-annual interest (March 1 and September 1) payable at
Citibank, N. A., New York, New York,
or, at the option of the holder, at
Texas Commerce Bank, National Association, Lubbock, Texas.
First interest coupon due March 1, 1978.
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 ad valorem tax levied, within the limits
prescribed by law, on taxable property located within the City.
MATURITY SCHEDULE
Amount _Ma_t�ur.t Rate Yield Amount Maturit Rate Yield
,000 3 1-78C33 6, b�
135,000 3-1-79 135,000 3-1-89
135,000 3-1-80 133,000 3-1-90
135,000 3-1-81 135,000 3-1-91
135,000 3-1-82 135,000 3-1-92
135,000 3-1-83 135,000 3-1-93
135,000 3-1-84 140,000 3-1-94
135,000 3-1-85 140,000 3-1-95
135,000 3-1-96 140,000 3-1-96
135,000 3-1-87 140,000 3-1-97
The Bonds are not optional for prior payment.
Payment Record: The City has never defaulted.
Legality: Attorney General of the State of Texas, and
Messrs. Dumas Hu uenin, Boot man and Morrow Attorneys, Da las Texas.
Opinion Printed on the Bonds; See Legal Opinions.
Delivery: Anticipated on or about November 2, 1977.
ELECTED OFFICIALS
Length of
Term
City Council
Service
Expires
Occu ation
oy Bass
Yeazs
April 1978
Attorney -At -Law Bass Hobbs
Mayor
DIrk West
3 Years
April 1978
Owner, .West Advertising Agency
Mayor Pro-Tem
Carolyn Jordan
3 Years
April 1980
Homemaker
Councilwoman
Alan Henry
3 Years
April 1978
Partner, The 'Insurance Group Agency
Councilman
Bill McAlister
1 Year
April 1980
President and Co -Owner, KMCC Television
Councilman
APPOINTED OFFICIALS
Position and Length of Time
Length of Employment
Name
In This Position
With Cof Lubbock
Larry J. Cunningham
City Manager
Appointedit 9- -76
0 Years
Sterling K. Miller
Director of Finance
for 12 Years
19 Years
Fred O. Senter
City Attorney
for 17 Years
23 Years
Treva Phillips
Secretary -Treasurer
for 3 Years
8 Years
Samuel W. Wahl
Director of Public Works
for 8 Years
24 Years
W. T. (Bill) Wood
Director of Utilities
for 6 Years
21 Years
James E. Bertram
Director of Planning
for 6 Years
8 Year's
Jimmy W. Weston
Director of Community Facilities
Appointed 4-9-76
Marvin W. Coffee
Director of Aviation
for 6 Years
6 Years
Denzel W. Percifull
Director of Public Services
Apointed 4-18-77
John R. Brooks
Tax Assessor -Collector
for 8 Years
23 Years
CONSULTANTS AND ADVISORS
Auditors----------------------------------------------------------- Mason, Nickels h Warner
Lubbock, Texas
Bond Counsel ----------------------------------------= Dumas, Huguenin, Boothman do Morrow
Dallas, Texas
Consulting Engineers, Airport Expansion System ----------------------- Parkhill, Smith h Cooper
Lubbock, Texas
Engineers for Generator System ----------------------------------------------- Tippett do Gee
Abilene, Texas
Engineers for 30 Year Water Supply --------------------------------------- Freese and Nichols
Fort Worth, Texas
Engineers for Transmission Lines and Substations --------------------- Hicks do Ragland Company
Lubbock, Texas
Financial Advisors--------------------------------------------------- First Southwest Company
Dallas, Texas
Police Management Study Consultants and
Municipal Court Survey------------------------------------ Cresap, McCormick do Paget,lnc.
Washington, D. C.
Reappraisers of Shopping Center -------------------------------------- Marshall k Stevens, Inc.
Los Angeles, California
- 3 -
VALUATION AND DEBT INFORMATION
January F, 1976, Appraised Value of Property Included in
1976 Taxable Assessed Valuation (Source: Tax Assessor -
Collector, City of Lubbock) $I,663,275,335
1976 Taxable Assessed Valuation (60% of 1-1-76 Appraisal
Value) (See Notes 1, 2 and 3)
$ 997,963,321
City Funded Debt Payable from Ad Valorem Taxes (As of
4-30-77) (See Notes 4 and 5)
General Purpose Bonds (including $1,820,000 of this issue)
$37,988,972
Waterworks Bonds*(including $400,000 of this issue)
5,282,441
Sewer System Bonds (including $500,000 of this issue)
3,209,513
Electric Light Bonds
191,074
TOTAL FUNDED DEBT $ 46,572,000
Interest and Sinking Fund (As of 4-30-77) $ 1,018,232
Ratio Total Funded Debt to 1-1-76 Appraised Value -------------------------------------- 2.80%
Ratio Total Funded Debt to 1976 Taxable Assessed VaIuation------------------------------ 4.67%
1977 Estimated Population - 175,000
Per Capita Taxable Assessed Valuation - $5,702.66
Per Capita Total Debt - $266.13
Area - 83.91 Square Miles
Note l: (a) The Tax Assessor -Collector of the City of Lubbock certified the City's 1976 tax roll on
September 27, 1976, at $997,965,321. After the certification, an additional $4,917,611 was added to a
1976 Supplemental Roll representing 11 pieces of property that were under litigation at the time the roll
was certified. (b) On May 31, 1977, Assessed Values on another 17 pieces of property were still under
litigation. In the opinion of the City's Tax Assessor -Collector, the final assessed value to be added to the
1976 Supplemental Roll on these properties will be no less than their 1974 Valuation of $12,160,190.
(c) No adjustment has been made for duplications and errors.
Note 2: Pursuant to authority permitted by Section 1-b, Article Vill of the State Constitution, which
became effective January 1, 1973, the City, beginning in 1974, has granted an exemption of $3,000 of
assessed valuation to the residence homestead of property owners over 65 years of age. The 1976 Taxable
Assessed Valuation does not inclue $11,888,760 assessed valuation of properties exempted under this
authority at the time the 1976 tax roll was certified. These exemptions may be declared when taxes are
paid, and the City's Tax Assessor -Collector estimates that "over 65" exemptions will finally total
approximately $15,000,000 for 1976.
Note 3: The Legislature, pursuant to a constitutional amendment and Article 7150h, VATCS, mandated an
additional property tax exemption, beginning in 1976, for disabled veterans or the surviving spouse or
children of a deceased veteran who died while on active duty in the armed forces. The exemption from
taxation applies to either real or personal property with the amount of assessed valuation exempted
ranging from $1,500 to $3,000, dependent upon the amount of disability or whether the exemption is
applicable to a surviving spouse or children. In 1976, Taxable Assessed Valuation does not include
$1,307,240 assessed valuation of properties exempted under this authority at the time the 1976 tax roll
was certified. These exemptions may be declared when taxes are paid, and the City's Tax Assessor -
Collector estimates that "disabled veteran" exemptions will finally total approximately $1,650,000 for
1976.
Note 4: The above statement of indebtedness does not include the following presently outstanding
Revenue Bonds, as they are payable solely from the net revenues derived from the Systems: $2,500,000
Waterworks System Revenue Bonds and $20,010,000 Electric Light and Power System Revenue Bonds. The
statement also does not include the following: $1,500,000 Airport Revenue Bonds presently outstanding,
as these bonds are payable solely from the gross revenues derived from the City of Lubbock Airport.
Note 5: The City's last General Obligation Bond sale was April 8, 1976 when $1,590,000 General
Obligation Bonds, Series 1976, were offered and sold.
- 4 -
OTHER LIABILITIES
On September 1, 1976, the City purchased the land and buildings, owned by Auto Realty Company, Inc.,
located immediately north of City Hall. For many years previously, this property was the site of a Ford
Motor Company dealership. Included in the purchase were 81,250 square feet of land and six buildings of
various sizes totaling 52,614 square feet. A part of the property is being used as a CIty Hall Annex and
the balance is being converted to a Transit System maintenance and storage facility.
Total purchase price was $389,820.00. Prior to purchase, the City obtained various appraisals of the
property which varied from a high of $1,432,095 to a low of $362,860. Of the $389,820 purchase price, the
City paid $40,000 in cash at the time of closing and executed its note for $349,820 for the balance. This
note is classified as part of the City's General Long -Term Debt and is payable from the General Fund.
The tote matures in 14 equal annual installments of $40,000 each, September 1, 1977 through September
1, 1990, with interest calculated at 7%.
NOTE AMORTIZATION SCHEDULE
Fiscal
Year
Ending Outstanding
9-30 Princi al interest Total Balance
977 15,512.80 24,497.20 5 40,000.00 5334,306.00
1978 16,598.40 23,401.60 40,000.00 317,707.60
1979 17,760.80 22,239.20 40,000.00 299,946.80
1980 19,003.60 20,996.40 40,000.00 280,943.20
1981 20,334.00 19,666.00 40,000.00 260,609.20
1982 21,757.20 18,242.80 40,000.00 238,852.00
1983 23,280.40 16,719.60 40,000.00 215,571.60
1994 24,910.00 15,090.00 40,000.00 190,661.60
1995 26,653.60 13,346.40 40,000.00 164,008.00
1986 28,519.60 11,480.40 40,000.00 135,488.40
1937 30,515.60 9,484.40 40,000.00 104,972.80
1988 32,652.00 7,348.00 40,000.00 72,320.80
1989 34,937.60 5,062.40 40,000.00 37,383.20
1990 37,383.20 2,616.80 40,000.00 -0-
$349,818.80 $210,191.20 $560,000.00
In order to provide for a majority of each annual installment on the note, the City Council directed the
investment of $399,324.00 of General Fund surplus cash in $384,000.00 par value of U. S. Treasury Bonds,
the interest earnings on these bonds to be applied to the annual $40,000.00 installment on the note.
Annual interest earnings on the bonds will total $30,990.00,leaving a balance of $9,010.00 to be budgeted
from the General Fund each year.
VALUATION AND FUNDED DEBT HISTORY
Fiscal
Period
Taxable
Ratio . Funded Debt
Ending
Assessed
Funded Debt Out-
to Taxable
9-30
Valuation(I)
standin Year End
Assessed Valuation
T4�7
, 66,8 (2)
7, 0,000
1967-68
566,985,373(2)
29,007,000
5.12%
1968-69
585,496,301(2)
30,098,000
5.14%
1969-70
601,789,533(2)
30,862,000
5.13%
1970-71
617,204,605(2)
35,344,000
5.73%
1971-72
630,151,893(2)
44,459,000
7.06%
1972-73
659,742,523(2)
47,266,000
7.16%
1973-74
716,225,294(2)
53,440,000
7.46%
1974-75
797,387,868(2)
50,546,000
6.34%
1975-76
923,557,647(3)
47,763,000
5.17%
1976-77
997,965,321(4)
(1) For all years Taxable Assessed Valuations
are net of any exemptions. Basis of assessment for all years
was 60% of appraised values.
- 5 -
The City's Tax Assessor -Collector maintains an on -going reappraisal of Real Property in the City,
reappraising approximately 1/4 of the City each year. In addition, a reappraisal program for automobiles
was fully implemented during the period 1973-74 through 1976-77. These factors account for part of the
accelerated growth in Taxable Assessed Valuations during the period 1971-72 through 1976-77. Natural
Increase for new values also made a significant contribution to this growth. Please see Taxable Assessed
Valuation by Category, below.
(2) Taxable Assessed Valuations for Fiscal Periods 1966-67 through 1974-73 have been adjusted for
supplements and corrections to the tax rolls made subsequent to certification of the rolls.
(3) The 1975-76 Taxable Assessed Valuation has been adjusted for supplements and corrections to the tax
rolls made subsequent to certification, and also includes $23,478,235 in Assessed Valuation representing
"Current Taxes in Litigation", as audited.
(4) No adjustment for supplements or corrections has been made to the Fiscal Period 1976-77 Taxable
Assessed Valuation; however, please see Note 1, Valuation and Debt Information, page 4, which is
applicable.
1976 ASSESSED VALUATION - CLASSIFIED (1)
1976 % of
Taxable Taxable
Assessed Assessed
Valuation Valuation
Real Estate:
(Residential and business land
and buildings) $705,954,020 70.74%
Personal Property.
Business Personal 221,409,161 22.19%
Mobile Homes 1,905,930 0.18%
Boats 709,950 0.07%
Oil Properties 43,830 0.00%
Automobiles 68 042,430 6.82%
PH
„ o z9. z
$997,965,321 100.00%
(1) No adjustment for supplements and corrections has been made; however, please see Note 1, Valuation
and Debt Information, page 4, which is applicable. The 1976 Taxable Assessed Valuation is net after
$11,988,760 "over 65" Homestead Exemptions and $1,307,240 Disabled Veteran Exemptions. Please see
Note 4, Taxable Assessed Valuation by Category, page 7.
TAXABLE ASSESSED VALUATION BY CATEGORY
(3)
Property Adjustments
Assessment (2) For (4)
As % Of (1) Personal Corrections Taxable
Appraised Real Personal Property: And Assessed
Year Value Estate Pro rt Automobile Su lements Valuation
TW -% 4 ,947, 0 ,727,950 15,760,700 $ 569,884 542,866,536
1967 60% 453,438,430 98,651,910 15,992,300 (1,097,267) 566,985,373
1968 60% 463,942,570 106,344,440 15,825,400 ( 616,109) 585,496,301
1969 60% 471,312,510 114,993,940 16,352,800 ( 869,717) 601,789,533
1970 60% 474,769,040 124,971,050 17,501,800 ( 37,285) 617,204,605
1971 60% 480,135,900 134,524,140 16,722,500 (1,230,647) 630,151,893
1972 60% 494,016,482 147,500,760 19,501,264 ( 275,983) 659,742,523
1973 60% 327,914,930 158,183,100 28,166,355 2,060,909 716,225,294
1974 60% 583,951,000 179,961,580 37,971,470 (4,496,182) 797,387,869
1975 60% 650,705,600 189,955,610 51,291,080 31,605,357 923,557,647
1976 60% 703,954,020 223,969,871 69,042,430 997,965,321
- 6 -
I
� f
Notes
(1) The City's Tax Assessor -Collector maintains -an on -going reappraisal program' of real property,
reappraising approximately 1/4 of real property In the City each year. While significant growth in Real
Estate Valuations since 1971 has been generated from new construction and development (see "Economic
Indices", below), a portion of the increase in these values stems from this reappraisal program.
(2) The City's Tax Assessor -Collector attributes the growth In automobile values to 3 factors:
1. Normal growth in the numbers of automobiles on the tax rolls;
2. Practically all automobiles are now rendered separately from personal property so that
comparatively few automobiles are included in Personal Property; and
3. A reappraisal program for automobile values was fully implemented during the years 1973 through
1976.
(3) Adjustments to the 1975 Taxable Assessed Valuation includes $23,479,235 in Assessed Valuation
representing "Current Taxes in Litigation". No "Adjustment for Corrections and Supplements" has been
made to the 1976 Taxable Assessed Valuation; however, please see Note 1, Valuation and Debt
information, page 4, which is applicable.
(4) Taxable Assessed Valuations for 1974, 1975 and 1976 are net after the following exemptions:
"Over 65" Disabled
Homestead Veteran
Year Exem tions Exemptions
WT4 , 9 T5,900 Not Effective
1975 13,323,150 Not Effective
1976 11,888,760w $ 1,307,240•
w As of 10-1-76. The Tax Assessor -Collector estimates that an additional $3,000,000 in "over 65" and an
additional $350,006 "Disabled Veteran" exemptions will finally be claimed during the current tax year.
Please see Notes 2 and 3, Valuation and Debt Information, page 4.
ESTIMATED TAXABLE ASSESSED VALUATIONS (1)
(2)
Estimated
Taxable
Fiscal Assessed
Period Valuation
T§r—!$ 105 , 0,00
1978-79 1,130,000,000
1979-80 1,203,000,000
1980-81 1,230,000,000
1981-82 1,362,000,000
Notes:
(1) Source: Mr. John L. Brooks, Tax Assessor -Collector, City of Lubbock.
(2) All estimates are based on assessments of property at 60% of appraised value, and are net after
estimated exemptions.
AUTHORIZED GENERAL OBLIGATION BONDS
Amount Amount
Date Amount Heretofore Being Unissued
Purpose Authorized Authorized Issued Issued Balance
Waterworks System 372 -77 $16,775,000 $ _-0- 400,000 16,375,000
Sewer System 5-21-77 3,303,000 -0- 500,000 2,803,000
Street Improvements 5-21-77 4,782,000 -0- 1,050,000 3,732,000
Storm Sewer and Drainage 11- 9-67 1,950,000 1,715,000 -0- 235,000
Storm Sewer and Drainage 5-21-77 473,000 -0- 100,000 373,000
Fire Station 5-21-77 792,000 -0- 670,000 122,000
Fire Station (for adjacent
areas, when annexed) 5-21-77 310,000 -0- -0- 310,000
$29,385,000 $1,715,000 $2,720,000 $23,950,000
- 7 -
t
ESTIMATED GENERAL OBLIGATION BOND PROGRAM
Antiupate Issuance
1982 or
1978 1979 1980 1981 Later Total
Waterworks System ,905,000 3,245,000 6,280,000 2,945,000 � 0- 16, 75,006
Sewer System 1,153,000 1,530,000 -0- 120,000 -0- 2,803,000
Street Improvement 275,000 1,465,000 750,000 1,242,000 -0- 3,732,000
Storm Sewer and
Drainage 123,000 50,000 125,000 75,000 235,000 608,000
Fire Station 122,000 -0- -0- -0- -0- 122,000
Fire Station (for ad-
jacent areas, when
annexed) -0- -0- -0- 310,000 -0- 310,000
$5,578,000 $6,290,000 $7,155,000 $4,692,000 $235,000 $23,950,000
ESTIMATED OVERLAPPING FUNDED DEBT PAYABLE FROM AD VALOREM TAXES
As o 4-30-7
Estimated
Total
%
Taxin Jurisdiction
Funded Debt
Applicable
rty of Lu c oc
, 2, 0
Ol 0.00%
Lubbock Independent School District
13,100,000
99.34%
Lubbock County
-0-
80.00%
Lubbock County Hospital District
2,915,000
80.00%
Lubbock County Water Control and
Improvement District No. 1 100,000
Lubbock -Cooper Independent School District 934,000
Frenship Independent School District 961,273
Roosevelt Independent School District 798,000
Idalou Independent School District 818,000
TOTAL OVERLAPPING FUNDED DEBT
Ratio Overlapping Funded Debt to 1976 Taxable Assessed Valuation -----
Per Capita Overlapping Funded Debt - $355.04
TAX DATA
(Year En ing -30)
80.00%
3.83%
18.52%
0.14%
0.01 %
Overlapping
Funded Debt
4 , 2,000
13,013,540
- 0-
2,252,000
80,000
35,772
178,029
1,117
82
$62,132,539
-------------- 6.23%
Distribution
(1)
(2)
Tax
Tax
General
Board of City
Interest an
0 )
% Current
% Total
Year
Rate
Fund
Develo ment
Sinkin Fund
Ta L
Collections
Collections
T 6�
5 M.
0.63
0.05
0.50
$ 6,405,829
�3.ff%
97._6 Z_
1967-68
1.18
0.61
0.05
0.52
6:690,427
94.25%
97.83%
1968-69
1.08
0.51
0.05
0.52
6,323,360
94.27%
97.40%
1969-70
1.08
0.49
0.05
0.54
6,499,327
93.76%
97.43%
1970-71
1.08
0.43
0.05
0.60
6,665,810
93.90%
97.82%
1971-72
1.14
0.37
0.05
0.72
7,183,732
94.06%
97.92%
1972-73
1.29
0.36
0.05
0.88
8,510,678
93.72%
96.41%
1973-74
1.36
0.46
0.05
0.85
9,740,664
93.18%
96.39%
1974-75
1.36
0.54
0.05
0.77
10,844,475
93.16%
97.26%
1975-76
1.36
0.70
0.05
0.61
12,560,384
93.43%
97.19%
1976-77
1.41
0.75
0.05
0.61
14,071,374
92.25%*
93.84%-
• Collections for part
year
only, through 5-31-77.
Notes:
(1) "Tax
Levy" and
"Percent
Current Collections"
for Tax
Years 1966-67
through 1974-75 have been
adjusted
to reflect final
corrections
and supplements to the tax
rolls as audited
at the end
of each fiscal
year.
8
"Tax Levy" and "Percent Current Collections" for Tax Year 1975-76 have been adjusted to reflect final
corrections and supplements to the tax rolls as audited; in addition, "Tax Levy" includes $319,304 repre-
senting "Current Taxes in Litigation", and "Percent Current Collections" includes $316,308 deposited in
the registry of the District Court against this levy. As noted in Note 3, Valuation and Funded Debt
tt e�Histor ,page 4, the 1973 Assessed Valuation represented by this levy is $23,47 ,2 S. In t City s opinion,
taxes will be fully collectible when final judgement is rendered.
(2) Calculations of "Percent Total Collections" includes current collections plus delinquent collections,
but do not include' penalty and interest charges.
Property within the City is assessed as of January I of each year; taxes become due October 1 of the
same year, and become delinquent on January 31 of the following year. Split payments are not
permitted. Discounts are not allowed.
TAX RATE LIMITATIONS
All taxable property within the City is subject to the assessment, levy and collection by the City of a
continuing, direct annual ad valorem tax sufficient to provide for the payment of principal of and
interest on all types of tax obligations of the City within the limits prescribed by law. Article X1,
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 Constitutional provisions.
1% MUNICIPAL SALES TAX
Effective 4-1-68
The City has adopted the provisions of Article 1066e, V.A.T.C.S., and levies a 1% Sales and Use Tax
within the City. This tax is collected and enforced by the State of Texas Comptroller of Public
Accounts, who remits the proceeds, less a service fee, to the City monthly. Revenues from this source
have been;
Fiscal
Net
Estimated
Year
Collections
% of
Equivalent
Net
Ended
Remitted
Ad Valorem
Ad Valorem
Collections
9-30
to Cit
Tax Levy
Tax Rate
Per Capita
09F
,0 0"
--
--
--
1969
2,421,055
39.29%
$0.414
$16.24
1970
2,596,398
39.95%
0.431
17.41
1971
2,964,736
44.48%
0.480
19.88
1972
3,086,164
42.96%
0.490
20.19
1973
3,780,339
44.42%
0.573
23.72
1974
4,537,049
46.58%
0.634
26.52
1975
4,763,912
43.93%
0.597
27.84
,1976
5,690,591
45.31%
0.616
32.52
• Based on 1970 U. S. Census for 1969 through 1971, and on estimated population for 1972 through 1976.
•• Collections for one quarter only.
Name of Taxpayer
Southwestern Bell Telephone Company
Southwestern Public Service Company
First National Bank
Texas Instruments Incorporated
Lubbock National Bank
American State Bank
Clark Equipment Company
Plains Co-op Oil Mill
Pioneer Natural Gas Company, a
subsidiary of Pioneer Corporation
Texas Commerce Bank, N. A., a
subsidiary of Texas Commerce
Bancshares, Inc.
TOP TEN TAXPAYERS
1976
% of 1976
Taxable
Taxable
Assessed
Assessed
Nature of Property
Valuation
Valuation
Telephone Utility
522,062,490
2.21%
Electric Utility
13,538,290
1.36%
Bank
11,568,310
1.16%
Electronic Manufacturing
11,299,160
1.13%
Bank
9,272,860
0.93%
Bank
7,190,850
0.72%
Earth Hauling Equipment
6,345,050
0.64%
Cotton Oil Mill
5,704,190
0.57%
Gas Utility
5,648,550
0.57%
Bank
4,772,870
0.48%
$97,402,6To
9 7%
-9-
INTEREST AND SINKING FUND MANAGEMENT INDEX ,
General Obligatlon Debt Service Requirements for Fiscal Year Ending 9-30-77--------- $6,117,409
Interest and Sinking Fund, All General Obligation Issues, 9-30-76------ $ 311,729
1976 Interest and Sinking Fund Tax Levy @ 97% Collection ----------- 5,904,961
Estimated Income from Other Sources, as Budgeted ------------------- 350,000 6,566,689
Estimated Surplus---------------------------------------------------------------- $ 449,291
COMPUTATION OF SELF-SUPPORTING DEBT (1)
Electric Light
Waterworks Sewer and Power
System System System
Net System Revenue Available for Fiscal
Year Ending 9-30-76 $1,469,959 $767,108 $5,256,693
Less: Revenue Bond Requirements, 1976-77
Fiscal Year 594,610 -0- 2,297,068
Balance Available for Other Purposes $ 975,349 $767,109 $2,959,615
System General Obligation Bond Requirements,
1976-77 Fiscal Year 879,015 497,103 73,643
Balance $ (2,666) $270,005 $2,885,972
Percentage of System General Obligation Bonds
Self -Supporting 99.70% 100.00% 100.00%
(1) The City supports the General Obligation Interest and Sinking Fund from direct ad valorem tax levies;
therefore, these calculations are not intended to imply or demonstrate an actual flow of surplus System
funds to the General Obligation Interest and Sinking Fund.
- 10 -
DEBT SERVICE REQUIREMENTS
GENERAL OBLIGATION BONDS
(B)
(B)
Fiscal
Grand Total
Less:
Less:
Less:
Grand Total
+
Year
(A)
General Obli-
Waterworks
Electric
Sewer System
Gener Pur-
% of
Ending
Outstanding Bonds
These $2,720,000 Bonds
ation Bond
Tax Bond
Tax Bond
Tax Bond
pose Bond
Principal
9-30'
Princi al
Interest
Total
Principal
Interest
Total
Re uirements
Re uirements
R uirements
Re uirements
Re wrements
Retired
19 77
4,081,00
,036,408
6,117,408
6,11 ,408
878, 5
73, 4
i, Ms
4
1978
3,995,000
1,850,698
5,845,698
$ 135,000
$ 145,887 $
280,887
6,126,595
851,690
42,171
509,129
4,723,595
1979
3,721,000
1,679,856
5,400,856
135,000
138,463
273,463
5,674,319
726,617
42,114
463,345
4,442,243
1980
3,670,000
1,521,668
5,191,668
135,000
131,037
266,037
5,457,705
691,475
42,033
444,637
4,279,560
1981
3,456,000
1,372,315
4,828,315
135,000
123,613
258,613
5,086,928
659,993
42,233
409,307
3,975,395
38.55%
1982
3,040,000
1,254,758
4,294,758
135,000
116,187
251,187
4,545,943
537,521
325,299
3,683,125
1983
2,930,000
1,106,098
4,036,098
135,000
108,763
243,763
4,279,861
482,985
285,607
3,511,269
1984
2,930,000
980,193
3,910,193
135,000
101,337
236,337
4,146,530
468,016
275,645
3,402,869
1985
2,780,000
854,920
3,634,920
135,000
93,913
228,913
3,863,833
4039693
241,018
3,219,122
1986
2,695,000
731,495
3,426,495
135,000
86,487
221,487
3,647,982
349,885
217,953
3,080,144
68.37%
1987
2,545,000
610,440
3,155,440
135,000
799063
214,063
3,369,503
280,033
208,967
2,880,503
1988
2,420,000
492,742
2,912,742
135,000
71,637
2069637
3,119,379
236,557
178,794
2,704,028
1989
2,230,000
380,050
2,610,050
135,000
64,213
199,213
2,809,263
188,312
171,411
2,449,540
1990
2,070,000
284,021
2,354,021
135,000
36,787
191,787-
2,545,808
180,677
132,155
2,232,976
1991
1,920,000
195,345
2,115,345
135,000
49,363
184,363
2,299,708
173,613
58,718
2,067,377
91.86%
1992
1,570,000
122,878
1,692,978
135,000
41,937
176,937
1,869,815
158,440
32,521
1,678,854
1993
970,000
64,505
1,034,505
135,000
34,513
169,513
1,204,018
88,159
319156
1,084,703
1994
580,000
25,220
605,220
140,000
26,950
166,950
772,170
44,289
30,685
697,196
1995
80,000
8,480
88,480
140,000
19,250
159,250
247,730
23,426
29,270
195,034
1996
80,000
4,240
84,240
140,000
11,550
151,550
235,790
22,293
27,855
185,642
99.72%
1997
140,000
3,850
143,850
143,850
21,160
26,440
96,250
100.00%
$47,763,000 $15,576,330 $63,339,330 $2,720,000 $1,504,800 $4,224,800 $ 67,564,130 $7,4669849 $242,194 $4,597,015 $ 55,258,072
(A) Interest on these $2,720,000 Bonds now being offered for sale has been calculated at the rate of 5 1/2% for purposes of Illustration.
(B) Includes $400,000 and $500,000 Bonds now being sold for Waterworks Improvements and Sewer System Improvements.
TAX ADEQUACY
All General Obli ation Bonds (includin these bonds)
Maximum Principal an Interest m Requireents, (after issuance of these bonds)------------------------------ $6,126,585
$0.65 Tax Rate @ 95% Collection Produces (Based on 1976 Taxable Assessed Valuation)-------------------------- $6,162,436
PENSION FUNDS
Texas Municipal Retirement System ... All permanent, full time City employees who are not firemen and
w o were less than 50 years of age when employed by the City are covered by the Texas Municipal
Retirement System. The System is a contributory, annuity -purchase type plan which is covered by a State
statute and is administered by 6 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 2 for I 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 1977 contribution rate is 6.4% of payroll plus 0.25%
for supplemental disability benefits. Enabling statutes prohibit any member city from adopting options
which impose liabilities that cannot be amortized over 25 years within a specified statutory rate.
The actuarially computed present value of future prior service contributions as of December 31, 1976, was
$5,070,663. This liability is being amortized annually, and will be liquidated by December 31, 2000.
City of Lubbock assets held by the System on December 31, 1976, were:
Tangible assets for funding of:
Prior service liabilities ------------------------ $ 9520466
Accrued current service liabilities -------------- 8,426,203
Unfunded accrued current service liabilities~ --------- 117,567
Total Assets --------------------------------------- $99496,236
* To be liquidated by a 5 year amortization adjustment included in normal contribution rates.
Firemen's Relief and Retirement Fund ... City of Lubbock firemen are members of the locally admin-
istered Lubbock Firemen's Relief and Retirement Fund, operating under an act passed in 1937 by the State
Legislature and adopted by City firemen, by vote of the department, in 1941. Firemen are not covered by
social security.
The fund is governed by 7 trustees: 3 firemen, 2 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 3 years, and the fund is audited annually. Firemen contribute 9% of full salary into the
fund and the City must contribute a like amount; however, the City contributes on a basis of the
percentage of salary which is a ratio adjusted annually that bears the same relationship to the firemen's
contribution rate that the City's rate paid into the Texas Municipal Retirement System and FICA bears to
the rate other employees pay into the Texas Municipal Retirement System and FICA. The City's 1977
contribution rate is 10.3%.
An actuarial evaluation is currently in progress but is not yet available; however, any past service cost is
believed to be nominal.
Sum mar, of Pension Fund Costs ... City contributions to these funds during the past 2 fiscal years, as
c arge to operations, were:
Fiscal Year Ending
9-30-76
9-30-75
General Fun
28,4 4
571,161
Electric Revenue Fund
138,927
124,022
Water Revenue Fund
36,985
35,821
Intragovernmental Service Fund
29,116
23,891
Municipal Airport Fund
19,087
14,723
Sanitation Revenue Fund
67,924
59,080
Sewer Revenue Fund
22,326
18,619
Trust and Agency Fund - Community Service
919
�_2i0.6_6_
Tt , I;I 5
, 5
- 12 -
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 all of its power requirements without purchased power supplements,
and has three generating stations located within the City. These plants are geographically separated from
one to seven miles and deliver bulk power to substations through a 69 KV transmission loop system.
Generatin Stations ... Total generating capacity is 183,150 KW. Gas turbines and I.C. gener4tors provide
t e system wit 64,650 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
NorNor berg
9 0
--T-
Diesel
Diesel
____'§_00
Nordberg
1933
1
Diesel
Dual Fuel
i,000
Nordberg
1937
1
Diesel
Dual Fuel
1,250
Nordberg
1938
1
Diesel
Dual Fuel
1,500
Nordberg
1940
l
Diesel
Dual Fuel
2,250
Nordberg
1942
1
Diesel
Dual Fuel
2,250
Nordberg
1946
2
Diesel
Dual Fuel
2,500
Nordberg
1947
2
Diesel
Dual Fuel
2,500
DeLavel
1949
2
Steam Turbine
Gas or Oil
7,500
Westinghouse
1952
2
Steam Turbine
Gas or Oil
11,500
Westinghouse
1953
2
Steam Turbine
Gas or Oil
11,500
Westinghouse
1957
2
Steam Turbine
Gas or Oil
22,000
Westinghouse
1958
2 ,
Steam Turbine
Gas or Oil
22,000
Westinghouse
1964
Holly
Gas Turbine
Gas or Oil
12,500
General Electric
1965
Holly
Steam Turbine
Gas or Oil
44,000
Worthington .
1971
Holly
Gas Turbine
Gas or Oil
18,000
General Electric
1974
Holly
Gas Turbine
Gas or Oil
20 000
Transmission and Distribution . A 69,000 volt (69 KV) transmission loop system, 36 miles in length,
provides bulk power to seven 20 MVA-69,000f12470 volt -substations. A second 69 KV transmission loop
system insulated for operation at 138 KV is being constructed, and is approximately 50% completed, with
the completed section energized and connected to the existing loop.
The distribution system includes approximately 600 miles of overhead distribution lines and approximately
50 miles of underground distribution lines. There are thirteen 12,47014160 volt substations in the distri-
bution system. Net system load for Fiscal Year Ending September 30, 1976 was 568,976,780 KWH with a
peak demand of 116,000 KW.
Construction Program . An $18,900,000 Revenue Bond issue for the construction and expansion of
pro uction and distribution facilities was approved at an election on May 12, 1973. This construction
program Included:
- 13 -
Estimated
Cost
Generatin Facilities
One 0,000 KW gas turbine generator at Holly Avenue site
(construction completed and turbine on stream) --------------------------------- $ 1,926,319
One 44,000 KW steam -turbo generator, Including a 1,000,000 gallon
oil storage tank (scheduled to be on stream June 1, 1978)----------------------- 12,541,102+
Transmission Lines and Substation
Re-conductoring of certain sections of the present 69 KV transmission
loop, construction of additional bulk power transmission lines, and
construction of one 40 MVA substation ------------------------ =----------------- 3,732,579
ContingencIes------------------------------------------------------------------- 600
,000
000
t Including estimated contract escalation and engineering fees. 000
Interconnection ... The Federal Power Commission has made a study of the feasibility of interconnecting
u Power and Light with another power company, and recommended on May 11, 1977 that the
System be interconnected with Southwestern Public Service Company. Estimated cost of the
interconnection is $3.3 million. Present plans are to fund this cost from surplus revenues of the System.
An interconnection will protect against temporary loss of local generating facilities from natural disasters
or other conditions that could disrupt service, and would also provide an alternative to construction of
additional generating capacity in the future.
Negotiations concerning an interconnection are presently in progress with Southwestern Public Service
Company. Southwestern operates in Lubbock under a franchise and serves an area covering the Panhandle
and South Plains of Texas and parts of Eastern New Mexico with an integrated electric generating and
distribution system.
F %Iiiupp_1 ... Primary fuel supply is natural gas which is supplied by Pioneer Natural Gas Company, a
visdt ion of Pioneer Corporation, Amarillo, Texas, under a long term contract. Secondary fuel in the form
of fuel oil is maintained in storage in the City.
Due to transmission system limitations, some brief curtailments of natural gas supply by Pioneer have
been experienced in the past few years, and Pioneer indicates that some 50% to 70% short duration (48
hours or less) curtailments, during peak gas usage periods, may be experienced in the future. No cur-
tailments in excess of 70% are projected by Pioneer, nor will total annual curtailment exceed 5% of
annual volume.
The City's present storage capacity of fuel oil, for standby, secondary fuel, is over 2,750,000 gallons; June,
1977 inventory was 1,461,573 gallons. An additional 1,000,000 gallons storage has been installed in
conjunction with the construction of the new 44,000 KW steam -turbo generating plant at the Holly Avenue
Station, and will be tied into the existing Holly Avenue fuel system prior to January 1, 1978.
Pioneer Natural Gas made application to the Railroad Commission of Texas for an exception to that
Commission's order, Gas Utilities Docket #600, dated December 17, 1975, that natural gas be eliminated
as boiler fuel. The Commission granted its exception on February 19, 1976. Section 3, Gas Utilities
Docket #600, requires the reduction of gas deliveries on or before January 1, 1991, to all boiler fuel users
who consumed an average of 3,000 MCF/D, or more, during calendar 1974 or 1975 by 10% below that
user's level of consumption in calendar 1974 or 1975, whichever is higher; and the reduction of gas
deliveries on or before January 1, 1985, to such users by 25% below calendar 1974 or 1975 consumption,
whichever year is higher.
Pioneer Natural Gas Company and the City of Lubbock cannot now foresee any problems in gaining an
exception to Section 3, Gas Utilities Docket #600 prior to January 1, 1981, or January 1, 1985, as might be
necessary, since, in their joint opinion, Pioneer's present and projected gas supply will be entirely adequate
to provide service to the City of Lubbock. However, the new 44,000 KW steam -turbo generator now under
construction at the Holly Avenue Station has a design capability of full-time operation with fuel or crude
oil firing in the event of reduction of gas supply.
In the City's opinion, its fuel supply is favorably positioned due to the long term natural gas reserves
presently owned, contracted for and under development by Pioneer Natural Gas Company.
- 14 -
CONDENSED STATEMENT OF OPERATIONS
ELECTRIC LIGHT AND POWER SYSTEM
Fiscal Year Ended
9-30-76
9-30-75
9-30-74
9-30-73
9-30-72
Income
16,712,303*
$11,887,144*
9,440,610*
7,427,044*
6,665,910*
Expense
11,455,620
8,508,578
5,74.4,751
4,057,290
3,525,319
Net Revenue Available
for Debt Service
$ 5,256,683
$ 3,378,566
$3,695,859
$3,369,754
3 140 591
Electric Connections
26,969
25,900
25,001
24,383
24,063
Note: Rate increase effective
9-1-75.
• Income for Fiscal Year ended 9-30-76 does not include $341,154 premium received on $4,400,000
Electric Light and Power System Revenue Bonds, Series 1976, offered and sold on September 14, 1976.
Income for each of the years shown includes interest earned as follows: 9-30-72, $68,217; 9-30-73,
$151,420; 9-30-74,$660,325; 9-30-75, $713,198; 9-30-76, $880,959.
Average Annual Principal and interest Requirements, 1977/97---------------------- $ 1,514,970
Coverage by Net Income, Fiscal Year Ended 9-30-76------------------------------ 3.47 Times
Electric Light and Power System Revenue Bonds Outstanding, 9-30-76-------------- $21,190,000
Interest and Sinking Fund, Cash and Investments, 9-30-76------------------------- $ 1,199,233
Reserve Fund, Cash and investments, 9-30-76------------------------------------ $ 1,108,273
THE WATERWORKS SYSTEM
Water Supply ... Primary source of water for Lubbock is the Canadian River Municipal Water Authority
which delivers water from its Lake Meredith reservoir, located on the Canadian River about 30 miles
north of Amarillo, to member cities through an underground aqueduct system. Lubbock is one of eleven
member cities of the Authority; other members are Amarillo, Pampa, Borger, Plainview, Slaton,
Levelland, Brownfield, Tahoka, O'Donnell and Lamesa.
As of February, 1977, there were 315,400 acre feet of water in conservation storage in the reservoir;
storage capacity is 821,300 acre feet. Lubbock received 25,962 acre feet of water from the Authority in
Calendar Year 1976, approximately 77% of the City's total consumption.
Financed through the Federal Bureau of Reclamation at a cost of $84,6051000tthe Canadian River Project
will eventually yield 103,000 acre feet of water annually. Lubbock is entitled to receive 37.05896 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 202 water wells, all
producing from the Ogallala Formation, which underlies the High Plains of Texas. Combined capacity of
these wells is 44,000,000 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. 13,700 acres have been developed with 85 producing wells to
date. This water source is now used primarily for peaking purposes.
50 Year Water Supply Study ... The City of Lubbock is conducting an investigation of additional long
term water supply sources. Freese and Nichols, Consulting Engineers, Fort Worth, Texas, are conducting
this investigation for the City, and 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 are nearing
completion of their investigation of stream -flow at the Justiceburg Site, and it is anticipated, will make a
final feasibility report to the City within the next 8 to 12 months.
$5,250,000 of the $16,775,000 Waterworks System Bonds approved at the election on May 21, 1977, were
included to finance preliminary costs of this third water source, and will provide sufficient funds to im-
plement planning and work scheduled to be done by 1982, including some land and rights -of -way purchases.
In the event a reservoir at the Justiceburg Site does not prove feasible, the proposed Post Site reservoir
will also not be constructed, and these funds will be used for extensive development of the Sand Hills well
field and for securing other water supplies.
!0Jd .'
The S st
aem ... Lubbock's Waterworks System is modern and efficient and was valued at $30,175,911,
ter epreciation and including cost of construction work in progress, at 9-30-76. Equipment includes
remote control and communication facilities with centralized operation and direction of. the water supply
system. The distribution system extends throughout the City and is designed for expansion. Distribution
pump stations have been expanded or constructed as necessary. Present pumping capacity is 1659000,000
gallons per day. Average daily water consumption was 29.8 million gallons in 1976.
Storage capacity consists of 12 ground storage reservoirs and 3 elevated steel storage tanks, providing a
total storage capacity of 44,350,000 gallons. Storage capacity Is entirely adequate for peak hour and fire
protection requirements.
Water Treatment Facilities ... A water treatment plant for the treatment of water purchased from the
Canadian -River Municipal Authority was completed in 1967. Capacity of the plant is. 56 MGD with a
future capability of 70 MGD, when expanded. Maximum daily input is presently 42 MGD. The plant also
treats water for several other members of the Authority; the City of Lubbock is fully reimbursed for these
costs.
Waterworks Revenue Bonds ... There are no authorized but unissued Waterworks Revenue Bonds.
Fiscal Year Ended
Income
Expense*
Net Revenue Available
for Debt Service
Number of Customers
CONDENSED STATEMENT OF OPERATIONS
WATERWORKS SYSTEM
9-30-76 9-30-75 9-30-74 9-30-73 9-30-72
5, TTF, T9Z5,090,779 5,571,387 4,878,751 4,715,741
3,901,437 3,498,878 2,898,963 2,585,492 2,446,169
$1,469,959 $1,591,901 $2,672,424 $2,293,259 $2,269,572
48,777 47,526 46,468 45,508 43,932
* Operating expenses include construction repayment costs and operating and maintenance charges paid
to the Canadian River Municipal Water Authority.
Principal and Interest Requirements, Waterworks Revenue Bonds,
Fiscal Year Ending 9-30-77----------------------------------------------------- $ 594,610
Coverage Based on Net Income, Fiscal Year Ended 9-30-76------------------------- 2.47 Times
Waterworks System Revenue Bonds Outstanding, 9-30-76---------------------------- $2,500,000
Interest and Sinking Fund and Reserve Fund, Cash and Investments, 9-30-76--------- $2,030,304
INCREASE IN WATER RATES
The City Council passed, on first reading on June 23, 1977, an ordinance increasing water rates for
billings rendered on and after October 1, 1977; final passage is subject to a second reading of the
ordinance on July 14, 1977. The City estimates that gross income from water sales will increase
approximately 15% as a result of this rate increase.
Although Sewer System revenues are not pledged to Waterworks System Revenue Bonds, the City will also
increase sewer rates by approximately the same percentage as water rates.
AIRPORT SYSTEM
The City has owned and operated its airport since 1929, with scheduled airline service beginning in 1946.
Lubbock Regional Airport is located six miles north of the central business district and has an area of over
2,437 acres, of which approximately 1,500 acres is used for farming and clear zones.
Scheduled Airline Service . Scheduled airline transportation is furnished by Braniff International,
Continental Airlines, Texas International Airlines, Southwest Airlines and Chaparral Airlines with 32
flights in and 32 flights out daily (as of June 7, 1977). All but 2 flights in and 2 flights out are pure jet.
Non-stop service is provided to Dallas -Fort Worth Regional Airport, Dallas Love Field, El Paso, Austin,
Amarillo, Midland -Odessa, Abilene and other cities. 1976 passenger enplanements totaled 253,510, up
from 234,405in 1975.
- 16 -
Lubbock Re Tonal Air ort Terminal ... A new terminal building was completed in April, 1976. Containing
approximately 44,000 square feet, the terminal houses airport administrative offices, airline offices and
ticket counters, the baggage claim area, car rental offices, a restaurant and inflight meal preparation
kitchen, and meeting and press rooms, and provides 6 gates for airline use; 5 gates are je'tway equipped. A
new FAA control tower became operational in March, 1977. The old terminal building is being converted
to government and commercial office space, and houses area radar surveillance equipment and a FAA
General Aviation District Office. A FAA -operated Flight Service Station is located adjacent to the old
terminal.
Runway System ... The runway system consists of;
1 - 8,500' x 1501, north/south, primary runway with high intensity lighting, a FAA -operated instrument
system, and other navigational aids; this runway is being extended to 11,5001;
1 - 8,500' x 1501, east/west, cross -wind runway, with high intensity lighting and VA51-4;
1 - 2,800, x 150, general aviation runway; and a taxiway system connecting the runways with aprons,
the new terminal and other facilities.
The airport also has a non -directional radio beacon which is identified as BOQ-272.
General Aviation Facilities ... A building designed for the use of private aviation is located on the east
side of the airport. This 8,779 square foot building still houses some general aviation services and a
National Weather Service office. General aviation services are mainly available from seven fixed base
operators who provide hangars, aprons, fuel and other services for private aviation. 100 T-Hangars house
most of the 220 private aircraft that were based at the airport on June 7, 1977.
Warehouses and Land Rentals . The airport has five 16,000 square foot warehouses and six other
warehouses for storage space rental.
Master Plan en Develo mt ... The Airport Master Plan, dated June, 1969, and updated in September, 1971,
w e completed y January, 1978, with extension to 11,500, of the primary north/south runway.
1973/1975 completions included extensive new taxiway construction; rebuilding and strengthening of
taxiways; new high intensity lighting systems on the primary runways; a fire and rescue building with two
fire and rescue crash trucks; water and sewer utility extensions; concrete overlay of the east/west
runway; and land acquisition. The 1976/77 program included completion of the new terminal building with
aprons, parking taxiways, and extensive roadway system, and concrete overlay,and extension of the
primary north/south runway.
CONDENSED STATEMENT OF OPERATIONS
AIRPORT SYSTEM
Fiscal Year Ended 9-30-76 9-30-75
9-30-74
9-30-73
9-30-72
come $1,266,359* 1,335,111*
1,376,480*
874,903*
785,714*
Expense 1,004,674 712,007
597,656
419,727
333,604
Net Revenue Available
for Debt Service L161,685 $ 623,104
$ 778,824
435,176
$452,110
■ Gross income was increased by interest revenue in each year as follows: 9-30-72, $228,466; 9-30-73,
$244,051; 9-30-74, $619,065; 9-30-75, $498,084; 9-30-76, $211,405.
Principal and Interest Requirements, Airport Revenue Bonds, Fiscal
Year Ending 9-30-77 (secured by Gross Income from System) -------------------- $ 214,813
Coverage Based on Gross Income, Fiscal Year Ended 9-30-76---------------------- 5.90 Times
Airport Revenue Bonds Outstanding, 9-30-76-------------------------------------- $ 1,625,000
Interest and Sinking Fund and Reserve Fund (Cash and Investments), 9-30-76------- $ 488,504
Airport Revenue Fund (Cash and Investments; exclusive of bond proceeds),
9-30-76---------------------------------------------------------------------- $ 1,169,588
Valuation of Airport Fixed Property and Equipment (after provision for
depreciation and including $20,628,962 cost of construction work in
progress), 9-30-76------------------------------------------------------------ $24,855,276
- 17 -
t
GENERAL INFORMATION REGARDING THE CITY AND ITS ECONOMY
• The City of Lubbock, County Seat of Lubbock County, Texas, is located on the South Plains of West
Texas. Lubbock is the economic, educational, cultural and medical center of this area.
POPULATION ...
• Lubbock is the eighth largest City in Texas:
City of Lubbock
(Cor orate Limits))
1910 Census ,
1920 Census 4,051
1930 Census 20,520
1940 Census 31,953
1950 Census 71,390
1960 Census 128,691
1970 Census 149,101
1977 (Estimated) 175,000
Standard Metropolitan Area (Lubbock County)
1970 Census 179,295
1977 (Estimated) 200,000
AGRICULTURE ...
• Lubbock is the center of a highly mechanized agricultural area with a majority of the crops irrigated
with water from underground sources. Principal crops are cotton and grain sorghums with livestock, other
grains, and soybeans as additional sources of agricultural income.
e The Texas Department of Agriculture and the Statistical Reporting Service, U. S. Department of
Agriculture, in 1975 Texas County Statistics, report as follows:
• Lubbock County's 1975 cotton production was 136,700 bales, and 1975 grain sorghum production was
7,420,400 bushels.
• On January 1, 1976, there were 73,000 head of cattle located on farms or In feedlots in Lubbock Coun-
ty. 97,000 cattle were marketed from feedlots during 1975.
• Lubbock County Cash Receipts from farm marketings, 1972/75 were:
1972 1973 1974 1975*
All Crops $24-b, iU, 57T179TIEbb Fr19_160 $3�'l�,60tT
Livestock and Products 26,603,000 34,442,000 31,473,000 31,330,000
U. S. Government Payments 15,657,000 13,807,000 4,133,900 4,615,000
Total Cash Receipts $71,870,000 $127,932,000 $96,784,000 $91,621,000
* Preliminary - subject to revision.
• 1975 cotton production in a 23 county (including Lubbock County) area surrounding Lubbock was
1,270,700 bales; 1975 grain sorghum production in this same area was 115,337,500 bushels; and 1975 cash
receipts from farm marketings were $1,174,549,000.
e Three major vegetable oil plants located in Lubbock have a combined weekly capacity of over 2,400
tons of cottonseed and soybean oil.
• Five major seed companies are headquartered in Lubbock.
Lubbock SMSA Labor Force Estimates
(Source: Texas Employment ommuston)
April March February April March February
1977+ 1977++ 1977*+ 1976— 1976++ 1976++
Civilian Labor Force 57-,M Tg-,M —% b, 3a WW W,�b — -,W
Total Employment 94,880 92,970 91,370 88,820 86,250 85,160
Unemployment 2,980 3,160 3,260 3,340 3,950 3,800
Percent Unemployed 3.0% 3.3% 3.4% 3.6% 4.4% 4.3%
+ Preliminary.
++ Revised.
O The Texas Employment Commission reported in May, 1977, that April, 1976, nonagricultural
employment in the Lubbock area totaled 90,320, up from 75,980 in April, 1976; of this total an estimated
11,450 were employed in manufacturing, up from 10,120 in April, 1976.
O Over 200 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, clothing, paperboard boxes, foodstuffs, mobile and prefabricated
homes, poultry and livestock feeds, boilers and pressure vessels and automatic sprinkler system heads.
O Some larger industries in Lubbock (with more than 100 employees) are;
Estimated
Employees
Com an
Product
5-1-77+
Texas truments, nc.
Consumer Products with Semi- on uctor
_7J_,U0_
Elements
Johnson Manufacturing Company (Division of
Heavy Earth -Moving Machinery and
600
Eagle-Picher Industries)
Farm Equipment
Litton Data Systems, Guidance and Control
Navigational Equipment; Electronic
400
Systems Division, Litton Industries, Inc.
Computer Systems
Levi Strauss c& Company
Men's Slacks, Women's Slacks
330
Plains Co-op Oil Mill
Vegetable Oil Products, Cottonseed
350
Products
Paymaster Oil Mill Company (Division of
Vegetable Oil Products
250
Anderson, Clayton and Company)
Lubbock Avalanche -Journal Southwestern
Newspaper
200
Newspaper Corporation
Gifford -Hill and Company, Inc.
Concrete Pipe; Agricultural Irrigation
200
Systems; Aluminum and Plastic Irri-
gation Pipe
Clark Equipment Company (Hancock
Heavy Road and Earth -Moving
200
Division)
Machinery
Coca-Cola Bottling Company
Soft Drinks
180
Lubbock Manufacturing Company
Pressure Vessels
175
Lubbock Cotton Oil Company
Cottonseed Oil and Other Cottonseed
170
Products, Soybean Oil
Texas Meat Packers, Inc.
Meat Processing
150
Devro Inc. (Subsidiary of Johnson and
Sausage Casings and Tannery
160
Johnson)
Farm Pac Kitchens
Meat Processing
140
Bell Dairy Products, Inc.
Dairy Products
135
Grinnell Fire Protection Systems Company
-Automatic Sprinkler Heads
130
(Subsidiary of Tyco Laboratories)
Frito-Lay, Inc. (Subsidiary of Pepsico, Inc.)
Potato and Corn Chips
125
Mrs. Baird's Bakeries
Bread Products
120
Rainbo Baking Company, Subdivision of
Bread Products
100
Campbell -Taggart Associated Bakeries, Inc.
+ Source: Lubbock Chamber of Commerce.
- 19 -
0 Texas Instruments, Inc., world leading developer and producer of semi -conductors and other electronic
products,' commenced manufacturing operations in Lubbock in April, 1973. The company employs over
3,000 (as of May 1, 1977) in the manufacture of -consumer products utilizing semi -conductor elements, and
the servicing of these products. On March 7, 1977, Texas Instruments announced that it was moving most
of Its Dallas -based consumer products operations to Lubbock with about 200-300 technical and
administrative employees involved in the move, which is aimed at consolidating these operations.
0 Lubbock is operation headquarters for the following nationally known concerns:
Furr% Cafeterias
Furr's Supermarkets
Plains Co-op Cotton Marketing Association
Plains Co-op Oil Mill
T.LM.E.-DC, Inc.
• Wholesale distribution represents a major sector of the Lubbock eonomy, with more than 575 outlets
serving a 54 county area in West Texas and New Mexico. The U. S. Bureau of the Census, Census of
Business, 1972, estimated that 1972 wholesale sales totaled $875.9 million, ranking •the Lubbock Standard
Metropolitan statistical area fifth in the State.
The U. S. Bureau of the Census, Census of Business, 1972, estimated Lubbock County (Lubbock
Standard Metropolitan Area) retail trade at $481 million in 1972, with 2,100 retail outlets. Sales
Management Survey of Buying Power reports Lubbock SMSA 1975 Retail Sales as $648 million.
There are eight 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; and the Texas Bank, established 1973. There are
five savings and loan associations in the City.
Combined Bank Statistics
Year End DeDOs1t5 Year End Deposits
1967 359,745,173 1973 723,327,701
1969 398,630,275 1974 793,915,466
1-969 412,439,082 1975 978,164,171
1970 477,247,194 1976 1,013,973,289
1971 527,314,293
EDUCATION ... TEXAS TECH UNIVERSITY...
• Established in Lubbock in 1925, Texas Tech University is the third largest State-owned University in
Texas and had a Spring, 1977 enrollment of 20,290. Accredited by the Southern Association of Colleges
and Schools, the University is a co-educational, State -supported Institution with Sl academic departments
offering the bachelor's degree in 96 major fields, the master's degree in 70 major fields, the doctorate
degree in 31 major fields, and the professional degree in 2 major fields (law and medicine).
• The University proper is situated on 451 acres of the 1,766 acre campus, and has 92 permanent and 91
temporary buildings with additional construction in progress. 1976-77 faculty membership is 1,414, and
other full-time employees total 2,444, including 89 administrators. Not including the Medical School,
which is operated separately, the University's operating budget for 1976-77 is $71 million of which $43
million is from State appropriations; book value of physical plant assets is $229 million.
• In 1969, the State Legislature authorized the establishment of a medical school at the University. First
phase construction of the medical school has been completed and construction of .the second and third
phases is continuing. The medical school opened in 1972, and had an enrollment of 129 for the Spring
Semester, 1977.
OTHER EDUCATION INFORMATION .. .
• The Lubbock Independent School District, with an area of 87 square miles, includes over 95% of the
City of Lubbock. The District had a student membership of 31,106 on April 15, 1977. As of February,
1977, there were 2,026 faculty and professional personnel and 1,286 other employees. The District
operates 5 senior high schools, 10 junior high schools, 37 elementary schools and other educational
programs.
SKIM
n
1
STUDENT MEMBERSHIP
HISTORY(1)
Student
Refined Average
School Year
Mberhsp
Dail A
71
1967-69
32,451
31,667
1968-69
32,501
31,358
1969-70
32,401
31,322
1970-71
32,648
31,477
1971-72
32,660
31,355
1972-73
32,063
30,716
1973-74
32,499
30,477
1974-75
32,209
30,255
1975-76
31,733
29,936
1976-77
31,106*
29,027*
* As of 4-15-77.
(1) Source: Superintendent's Office, Lubbock Independent School District.
• Lubbock Christian College, a privately owned, co-educational senior college located in Lubbock, now
consists of 35 buildings, constructed and equipped at a cost in excess of $7 million, with accommodations
for 660 students. The School's operating budget for 1976-77 is in excess of $7 million. The School is
operating at 100% capacity, and has approximately 700 professional and other employees.
TRANSPORTATION ...
• Scheduled airline transportation, as of June, 1977, is furnished by Braniff International, Continental
Airlines, Texas International, Southwest Airlines and Chapparral Airlines, with 32 arrivals and 32
departures daily at Lubbock Regional Airport. Non-stop service is provided to Dallas -Fort Worth Regional
Airport, Dallas Love Field, Austin, El Paso, Amarillo, Midland -Odessa, Wichita Falls, Abilene, and
Albuquerque, with one -stop service to New York, Washington, Houston, Chicago, Los Angeles, Denver and
other major cities. All but two flights are pure jet. 1976 passenger boardings totaled 253,510, up from
$234,405 in 1975. Extensive private aviation services are located at the airport. A new terminal building
became operational in April, 1976.
• 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, home office in Lubbock, operates some
35 arrivals and departures daily. Headquarters for T.I.M.E-DC, Inc., a transcontinental motor carrier, are
located in Lubbock, and 11 common carriers provide service.
• Lubbock has a well developed highway network including 4 U. S. Highways,I State Highway, a
controlled -access outer loop and a county -wide system of paved farm -to -market roads. The U. S.
Department of Transportation is extending the Interstate Highway System to Lubbock through
construction of a 125 mile interstate highway (Interstate Highway 27) linking Lubbock to Interstate 40 at
Amarillo; first stage construction north of Lubbock is in progress.
GOVERNMENT AND MILITARY ...
• 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 2,962 acres and has over 2,500 military and civilian
personnel.
• State of Texas ... More than 25 State of Texas departments, agencies and commissions have offices in
Lubbock; several of these offices have multiple divisions.
• Federal Government . . . 10 Federal departments, a Federal District Court, and various other
administration divisions have offices in Lubbock; several departmental offices have more than one
division.
- 21 -
t
HOSPITALS AND MEDICAL CARE ...
• There are seven hospitals with a total of over 1,000 beds In the City. Methodist Hospital, the largest,
has 610 beds, and also operates an accredited nursing school. St. Mary of the Plains Hospital is expanding
Its present 143 bed hospital to 173 beds pits additional ancillary facilities. University Hospital, Inc., a
subsidiary of Hospital Corporation of America, has a $2.3 million, 109-bed hospital. West Texas Hospital
has completed construction of a new 123-bed hospital, replacing an older facility.
• Lubbock County Hospital District, created in 1967 with boundaries contiguous with Lubbock County, is
constructing a 350-bed teaching hospital for the Texas Tech University Medical School.
• Lubbock has over 170 practicing physicians and surgeons (M.D.) and over 70 dentists. A radiology.
center for the treatment of malignant diseases is located in the City.
RECREATION AND ENTERTAINMENT ...
I
• Lubbock's Mackenzie State Park and 52 City parks provide recreation centers, playgrounds, shelter
j buildings, a garden and art center, swimming pools, a golf course, tennis and volley ball courts, baseball
diamonds and picnic areas. The City owns 2,650 acres of park sites of which I,300 acres are highly
developed, including 8 recreation centers, 5 swimming pools and a 27-hole golf course. There are several
privately -owned public swimming pools and golf courses, and 2 country clubs, each with a golf course, and
swimming pool and tennis courts.
• The City of Lubbock has developed a 36 square block area of approximately 100 acres adjacent to
downtown Lubbock under the Lubbock Memorial Civic Center program. Approximately 50 acres contain
the 300,000 square foot Lubbock Memorial Civic Center, a new convention and civic center completed in
March, 1977, and a new library building. The west and south periphery, about 50 acres, is being
redeveloped privately with an office building, motels, a hospital, and other facilities.
• Available to residents are Texas Tech University programs and events, Texas Tech University Museum
and Planetarium exhibits and programs, Lubbock Memorial Civic Center and its events, Lubbock Symphony
Orchestra programs, Lubbock Theatre Center, Municipal Auditorium and Coliseum programs and events,
the library and its branches, the annual Panhandle -South Plains Fair, college and high school football,
basketball and other sporting events; modern movie theatres.
CHURCHES...
• Lubbock has over 150 churches representing more than 25 denominations.
UTILITY SERVICES.. .
• Water and Sewer - City of Lubbock.
• Gas - Pioneer, Natural Gas Company, a subsidiary of Pioneer Corporation.
• Electric - City of Lubbock and Southwestern Public Service Company.
• Telephone - Southwestern Bell Telephone Company.
MEDIA ...
• Newspapers - 1 daily (morning and evening on weekdays); others bi-weekly or weekly.
• Television - 3 network channels; 1 educational public service channel.
• Radio - 8 AM stations; 5 FM stations.
- 22-
ECONOMIC INDICES (1)
...
Lubbock
County
Motor
Vehicle
Ba�nk.
Building
UtilityConnections
Postal Regis -
Year
De osits
Permits
ater
as ectrtc
O
e�e one
Re�cei is trations
TTO
�3M.6iTTr9
, +,
TiT-1, 67
VT,-M 7 3i�
�30,
$3,008,178 Tl` 1;eb
1966
335,400,787
61,690,634
42,067
42,440 48,j08
93,558
3,143,875 118,926
1967
359,745,173
30,467,949
42,123
42,675 48,795
98,433
3,4D4,088 120,622
1968
388,630,275
43,799,529
42,351
42,567 48,808
103,005
3,592,659 123,114
1969
412,459,092
29,764,462
42,293
42,948 49,171
109,488
3,986,118 123,935
1970
477,247,194
40,035,768
42,460
43,456 48,966
115,047
4,043,407 127,991
1971
527,314,293
69,209,358
43,012
44,039 49,970
121,545
4,323,582 133,710
1972
596,697,439
649278,038
44,331
45,168 50,717
128,288
5,241,799 142,604
1973
723,327,701
78,944,779
45,565
45,650 50,994
135,344
5,317,985 150,901
1974
793,9159466
118,718,253
46,745
45,971 51,739
1419942
5,737,352 153.639
1975
879,164,171
114,823,400
47,817
47,671 32,451
149,906
6,662,348 158,613
1976
1,013,973,289
91,8D4,380
49,933
48,809 56,0D8(2)
158,497
8,027,363 163,)58
Notest
(1) All data as
of 12-31, except Postal
Receipts which are as o1 6-3D.
(2) Electric connections include those
of a privately owned
utility company. 12-
31-76 electric connections reflect
institution of metering
of individual
apart-
ment units.
BUILDING PERMITS BY CLASSIFICATION
RESIDENTIAL
K, TEXAS)
Residential
Permits
Commercial,
Si ng a Family
Duplexes
Apartments
Totalesi
entia Public
Total
o. Permits
No.
Dwelling and Other
Building
Year
No. Units Value
(Units)
Value
No. Units Value
Units
Value Permits
Permits
M
�i $fDVO=,
--Y6nT27- ST�36
-C3r-
7-93b � 6bII
---7U-
5tf; 4=, TrTMb,=
, WMT
1968
486 11,117,925
11( 22)
228,000
210
1,461,800
718
12,807,625 30,991,904
43,799,529
1969
427 10,077,800
36( 72)
754,000
52
364,000
551
11,195,800 18,568,662
29,764,462
1970
485 10,942,391
13( 30)
429,700
633
5,9669400
1,148
17,338,491 22,697,277
40,035,768
1971
964 20,782,556
67(134)
2,297,700
894
10,079,491
1,892
33,159,747 36,049,611
69,209,338
1972
852 22,667,239
75(150)
3,0089650
1,171
11,315,898
2,173
36,991,786 27,286,253
64,278,039
1973
815 22,702,186
52(104)
2,317,050
949
9,121,400
1,868
34,140,636 44,704,143
78,844,779
1974
893 29,446,897
34( 68)
1,440,500
773
7,315,500
1,734
38,202,897 80,515,336
118,718,233
1975
1,002 37,766,603
23( 46)
1,165,450
734
5,592,000
1,782
44,524,053 70,299,347
114,823,400
1976
1,164 44,220,463
48( 96)
2,723,150
712
6,908,000
1,972
53,851,613 38,052,767
91,904,380
Note: (I) Data shown under "No. Units" is for each individual apartment dwelling unit, and is not for separate buildings.
t . c
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 EMEMPTION
The delivery of the Bonds is subject to an opinion of Dumas, Huguenin, Boothman and Morrow, Bond Coun-
sel 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 jurisdiction. The City assumes no responsibility for
qualification of the Bonds under the securities laws of any jurisdiction in which the Bonds may be sold,
assigned, pledged, hypothecated or otherwise transferred. This disclaimer of responsibility for
qualification for sale or other disposition of the Bonds shall not be construed as an interpretation of any
kind with regard to the availability of any exemption from securities registration provisions.
LEGAL INVESTMENTS IN TEXAS
The Bonds are legal investments for sinking funds of Texas counties, cities and towns. They are eligible to
secure Texas state, county, city and school district funds and constitute legal investments for insurance
companies in the State of Texas. No review has been made of the laws of states other than Texas to
determine whether the Bonds are legal investments for various institutions in those states.
LEGAL OPINIONS AND NO -LITIGATION CERTIFICATE
The City will furnish a complete transcript of proceedings had incident to the authorization and issuance
of the Bonds, including the unqualified approving legal opinion of the Attorney General of the State of
Texas, to the effect that the Bonds are valid and legally binding obligations of the City, and based upon
examination of such transcript of proceedings, the unqualified approving legal opinion of Bond Counsel, to
like effect and to the effect that the interest on the Bonds is exempt from Federal income taxation under
existing statutes, regulations, 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 appertaining thereto, will
also be furnished. Bond Counsel was not requested to participate, and did not take part, in the preparation
of the Notice of Sale and Bidding Instructions, the Official Bid Form and the Official Statement, and such
firm has not assumed any responsibility with respect thereto or undertaken independently to verify any of
the information contained therein, except that, in its capacity as Bond Counsel, such firm has reviewed
the information describing the Bonds in the Official Statement to verify that such description conforms to
the provisions of the bond resolution. The legal fees to be paid Bond Counsel for services rendered in
connection with the issuance of the Bonds are contingent on the sale and delivery of the Bonds. The legal
opinion will be printed on the Bonds.
- 24 -
I . 0.
AUTHENTICITY OF FINANCIAL INFORMATION
The financial data and other information contained herein have been obtained from the City's records,
audited financial statements and other sources which are believed to be reliable. There is no guarantee
that any of the assumptions or estimates contained herein will be realized. All of the summaries of the
statutes, documents and resolutions contained in this Official Statement are made subject to all of the
provisions of such statutes, documents and resolutions. These summaries do not purport to be complete
statements of such provisions and reference is made to such documents for further information.
Reference is made to original documents in all respects.
CERTIFICATION OF THE OFFICIAL STATEMENT
At the time of payment for and delivery of the Bonds, the Purchaser will be furnished a certificate,
executed by proper officers, acting in their official capacity, to the effect that to the best of their
knowledge and belief. (a) the descriptions and statements of or pertaining to the City contained in its
Official Statement dated July 28, 1977, and any addenda, supplement or amendment thereto, for its
$2,720,000 General Obligation Bonds, Series 1977, 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, including financial data, of or pertaining to entities, other than
the City, and their activities contained in such Official Statement are concerned, such statements and
data have been obtained from sources which the City believes to be reliable and that the City has no
reason to believe that they are untrue in any material respect; and (d) there has been no material adverse
change in the financial condition of the City since the date of the last audited financial statements of the
City.
The City will furnish the Purchaser, as a part of the transcript of proceedings, a certified copy of a
resolution of the City as of the date of the sale of the Bonds which will approve the form and content of
this Official Statement, and any addenda, supplement or amendment thereto, and authorize its further use
in the reoffering of the Bonds by the Purchaser.
ATTEST:
TREVA PHILLIPS
City Secretary
-23-
ROY BASS
Mayor
MINUTES PERTAINING TO PASSAGE AND ADOPTION OF
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK, TEXAS, AWARDING THE SALE OF $2,720,000
"CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS,
SERIES 1977,"
THE STATE OF TEXAS §
5
COUNTY OF LUBBOCK 3
5
CITY OF LUBBOCK 4
ON THIS, the day of , 1977, the
City Council of tFe City of Lubbock, Texas, convened in
session at the regular meeting place thereof
in the City Hall, the meeting being open to the public and .
notice of said meeting having been given as prescribed by
Article 6252-17, Section 3A, V.A.T.C.S., the following members
being present and in attendance, to wit:
ROY BASS MAYOR
DIRK WEST MAYOR PRO TEM
CAROLYN JORDAN COUNCILWOMAN
BILL B. McALISTER COUNCILMAN
ALAN R. HENRY COUNCILMAN
and
TREVA PHILLIPS CITY SECRETARY -TREASURER
and
>LARR%Y CLiNNINGHXM_ � CITY MANAGER
also being present: and with the following absent:
constituting a quorum; at which time
the following, among other business was transacted, to wit:
Councilman introduced the following resolution:
"A RESOLUTION by the City Council of the City of
Lubbock, Texas, awarding the sale of $2,7201000
'CI.TY OF LUBBOCK, TEXAS, GENERAL OBLIGATION
BONDS, SERIES 1977,11'
Councilman then moved that the resolution be
finally passed to take effect immediately from and.after its
passage. The motion was seconded by Councilman
and carried by the following vote:
YEAS: Mayor Bass and Councilmen West, McAlister, Henry
and Councilwoman Jordan.
NAYS: None.
The Mayor then announced the final passage and immediate
effect of the resolution.
MINUTES APPROVED, this the day of 1977.
Mayor, City of Lubbock, Texas
ATTEST:
City Secretary, City. of Lubbock, Texas
(City Seal)
�ilfl�li ��
JPB:bsb
RESOLUTION
A RESOLUTION by the City Council of the City of Lubbock,
Texas, awarding the sale of $2,720,000 "CITY OF LUBBOCK, TEXAS,,
GENERAL OBLIGATION BONDS, SERIES 1977".
WHEREAS, the City Council of the City of Lubbock, Texas, ha"s
heretofore received sealed proposals for the purchase of bonds
proposed to be issued, i.e.: $2,720,000 CITY OF LUBBOCK, TEXAS,
GENERAL OBLIGATION BONDS, SERIES 1977, and it is now proper for
this City Council to award the sale of said bonds to the bidder
who submitted the highest and best bid for such bonds; NOW THERE-
FORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1. THAT the $2,720,000 CITY OF LUBBOCK, TEXAS,
GENERAL OBLIGATION BONDS, SERIES 1977,.are hereby sold to
for cash for the par value thereof and accrued interest thereon
to date of delivery, plus a premium of $ It is
hereby officially found, determined and declared that said
purchasers are the best bidders for said bonds as a -result of
invitations for competitive bids..
PASSED AND APPROVED this the day of .197
Mayor, City of Lubbock, Texas
ATTEST:
City Secretary, City of Lubbock, Texas
(City Seal)
STATEMENT OF TA-BLE VALUES
THE STATE OF TEXAS §
COUNTY OF LUBBOCK §
CITY OF LUBBOCK §
I, the undersigned, Assessor and Collector of Taxes for
the City of Lui..uock, Texas, DO HEREBY CERTIFY that the assessed
value of property for the purposes of taxation in said City
of Lubbock, Texas, as shown by the tax rolls of said City for
the year 1976, which have been duly approved and which is the
latest official assessment of said City is as follows:
TOTAL REAL AND PERSONAL PROPERTY ..........$ 997,965,321
WITNESS TIY HAND AND THE SEAL OF THE CITY OF LUBBOCK, TEXAS,
this the day of , 1977.
Assessor and Collector of Taxes
City of Lubbock, Texas
GENERAL CERTIFICATE
THE STATE OF TEXAS
§
COUNTY OF LUBBOCK
§
CITY OF LUBBOCK
§
WE, the undersigned, Mayor,
City Secretary
and City Treasurer,
respectively, of the
City of Lubbock, Texas, DO HEREBY CERTIFY as
follows:
1. That the following is a
true, full and
correct description
of the presently outstanding indebtedness of said
City, payable
from ad valorem taxation levied and collected by
said City, to wit:
Principal
Years of
Amount Now
Description of Issae
Date
Maturities
Outstanding
Storm Sewer
Series 1951
1-1-51
1978/81
$ 106,000
Park
1-1-51
1978/81
57,000
Fire Station
Series 1951
1-1-51
1973/81
35,000
Str. Lighting
Series 1951
1-1-51
1978/81
21,000
Equip. Storage
& Garage Bldg.
1-1-51
1978/81
329000
Water, Sewer
& Elec. Light
Series 1951
1-1-51
1998/81
523,000
Water, Sewer
& Elec. Light
Series 1952
6-1-52
1977.
1009000
Park
6-1-53
1978
20,000
Str. Lighting
6-1-53
1978
58,000
Gen. Oblig.
Series 1956
3-1-56
1978/81
400,000
Gen. Oblig.
Series 1958
3-1-58
1978
200,000
Gen. Oblig..
Series 1959
3-1-59
1978
70,000
�� ll
�617 J-�
Principal
Years of
Amount Now
Description of Issue
Date
Maturities
Outstanding
Park
Series 1959
3-1-59
1978/79
$ 30,000
Park
Series 1960
3-1-60
1978/79
50,000
Gen. Oblig.
Series 1960
3-1-60
1978/80
680,000
Gen. Oblig.
Series 1961
3-1-61
1978/81
460,000 .
Gen. Oblig,.
Series 1962
3-1-62
1978/82
475,000
Park
Series 1962
3-1-62
1978/82
75,000
Park
Series 1964
3-15-64
1978/84
35,000
Park Imp.
Series 1965
3-15-65
1978/85
95,000
Gen. Oblig.
Series 1964
3-15-64
1978/84
1,015,000
Gen. Oblig.
Series 1965
3-15-65
1978/85
585,000
Gen. Oblig.
Series 1966
3-15-66
0 78/86
1,350,000
Gen. Oblig.
Series 1967
3-15-67
1978/87
1,250,600
Gen. Oblig.
Series'1968
4-15-68
1978/88
20090,000
Geri. Oblig.
Series 1969
8-1-69
1978/89
1,935,000
Gen. Oblig.
Series.1970
4-15-70
1978/90
1,980,000
Gen. Oblig.
.Series 1971
3-1-71
1978/91
4,900,000
Gen. Oblig,
Series 1972
3-15-72
1978/92
9,000,000
Gen. Oblig.
Series 1973
8-1-73
1978/93
5,040,000
Principal
Years of Amount'Now
Description of Issue Date Maturities Outstanding
Gen. Oblig.
Series 1974 3-1-74 1978/94 $ 8,500,000
Gen. Oblig.
Series 1975 3-15-75 1978/93 1,210,000
Gen. Oblig.
Series 1976 4-15-76 1977/96 1,505,000
TOTAL TAX -SUPPORTED BOND INDEBTEDNESS $43,782,000
2. That a debt service requirement schedule, showing the
amount required for the payment of principal and interest on all
the bonds described in the preceding paragraph which become due
and payable in the fiscal years as shown (including current year's
payments made to date), is attached hereto.
3. That at the present time the following are the duly
qualified and acting officers of said City:
ROY BASS
DIRK WEST
CAROLYN JORDAN
BILL R. McALISTER
ALAN R. HENRY
TREVA PHILLIPS
LARRY J. CUNNINGHAM
JOHN R. BROOKS
MAYOR
MAYOR PRO TEM
COUNCILWOMAN
COUNCILMAN
COUNCILMAN
CITY SECRETARY -TREASURER
CITY MANAGER
TAX ASSESSOR -COLLECTOR
4, The City of Lubbock, Texas, is incorporated under the
General Laws of the State of Texas and is operating under the Home
Rule Amendment to the Texas Constitution, Section 5, Article XI,
as amended in 1912; the City Charter was originally adopted at an
election held December 27, 1917, and said Charter has not been
amended or revised in any respect since the 24th day of January,
1967, the date of the last Charter Amendment Election.
WITNESS OUR HANDS AND THE SEAL OF THE CITY OF LUBBOCK, TEXAS,
this the _ day ofM 19 77 .
Mayor, City of Lubbock, Texas
City Secretary, City of Lubbock,
Texas
(City Seal)
Fiscal
Year
Ending
9-30
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
Totals
CITY OF LUBBOCK, TEXAS
DEBT SERVICE REQUIREMENT SCHEDULE
GENERAL OBLIGATION BONDS
OUTSTANDING BONDS
Principal
Interest
Total
$ 4,081,000
$ 2,036,408
$ 6,117,408
3,995,000
1,850,698
5,845,698
3,721,000
1,679,856
5,400,856
3,670,000
1,521,668
5,191,668
3,456,000
1,372,315
4,828,315
3,040,000
1,254,758
4,294,758
2,930,000
1,106,098
4,036,098
2,930,000
980,193
3,910,193
2,780,000
854,920
3,634,920
2,695,000
731,495
3,426,495
2,545,000
610,440
3,155,440
2,420,000
492,742
22912,742
2,230,000
380,050
2,610,050
2,070,000
284,021
2,354,021
1,920,000
195,345
2,115,345
1,570.,000
122,878
1,692,878
970,000
64,505
1,034,505
580,000
25,220
605,220
80,000
8,480
88,480
80,000
4,240
84,240
$47,763,000 $15,576,330 $63,339,330
THESE_ $2,720,000 BONDS
Principal Interest Total
135,000
135,000
135,000
135,000
135,000
135,,000
135,000
135,000
135,000
135,000
135,000
135,000
135,000
1351000
135,000
135,000
140,000
140,000
140,000
140.000
$ 2,720,000
145,887
138,463
131,037
123,613
116,187
108,763
101,337
93,913
86,487
79 ,063
71,637
64,213
56,787
49,363
41,937
34,513
26,950
19,250
11,550
3.850
$ 1,504,800
280,887
273,463
266,037
258,613
251,187
243,763
236,337
228,913
221,487
214,063
206,637
199,213
191,787
184,363
176,937
169,513
166,950
159,250
151,550
143.850
$ 4,224,800
GRAND TOTAL
G.O. Bonds
$ 6,117,408
6,126,585
5,674,319
5,457,705
5,086,928
4,545,945
4,279,861
4,146,530
3,863,833
3,647,982
3,369,503
3,119,379
2,809,263
2,545,808
2,299,708
1,869,815
1,204,018
772,170
247,730
235,790
143.850
$67,564,130
Interest on the $2,720,000 bonds was calculated at the rate of 5-1/2% for purposes of illustration.
9
SIGNATURE AND NO -LITIGATION CERTIFICATE
THE STATE OF TEXAS
COUNTY OF LUBBOCK
WE,
the undersigned, hereby certify as follows:
(1) That this certificate is executed and delivered with reference to the following described bonds:
City of Lubbock, Texas, General Obligation Bonds, Series 1977,
dated September 1, 1977, in the aggregate principal amount of $ 2, 720,000.
(2) That the undersigned officially executed and signed or countersigned said bonds and the inter-
est coupons attached thereto by causing their facsimile signatures to be placed on each of said bonds and
interest coupons and they hereby adopt said facsimile signatures as tht•ir own and declare that the same
constitute their signatures the salve as if they had manually signed each of said bonds and interest
coupons.
(3) That on the date of such execution in such manner and on the date hereof, we were the duly
chosen, qualified and acting officers indicated therein and authorized to execute the same.
-
(4) That the legally adopted proper and only official corporate seal of the issuer is impressed, im-
printed or lithographed on all of said bonds and impressed on this certificate.
(5) We further certify that no litigation of any nafure is now pending or, to our knowledge, threat-
ened restraining or enjoining the issuance and delivery of said bonds or the levy and collection of taxes
_ to pay the principal and interest, or in any manner questioning the proceedings and authority under
which the same is made or affecting the validity of the bonds thereunder; that neither the corporate ex-
istence or boundaries nor the title of the present officers to their respective offices is being contested, and
that no authority or proceedings for the issuance of said bonds have been repealed, revoked or rescinded.
(6) That no petition or other request has been filed with or presented to any official of the issuer of
these bonds requesting that any proceedings authorizing the same be submitted to a referendum or other
election.
EXECUTED AND DELIVERED this......................................................................................
(ISSUER'S SEAL)
SIGNATURE
OFFICIAL TITLE
Ma�+or, .City of Lubbock. Texas
City - -Secretary..........._ ........ _..... _._. _.............
The signatures of the officers subscribed above
are hereby certified to be true and genuine.
(BANK SEAL) ................................ _.............................................................
Bank
By... . ....................................................................................
LAW OFFICES Authorized Officer
--
.Dumas, nu;tuenin, Bo tfiman and Mwmw
1212 United National Dank Building
Dallas, Texas 75201
(
Extff8' 1 J- 7 ��
TREASURER'S RECEIPT
TH r STATE OF TEXAS
COUNTY OF LUBBOCK
THE UNDERSIGNED HEREBY CERTIFIES as follows:
(1) That this certificate is executed and delivered with respect to the following described bonds:
City of Lubbock, Texas, General Obligation Bonds, Series 1977,
dated September 1, 1977, in the aggregate principal amount of $ 2, 720, 000,
(2) That on the date shown below as the date of execution and delivery of this instrument, the said
boi:ds were delivered to the purchaser thereof, namely:
(3) That all of said bonds have been paid for in full by the purchaser concurrently with the'deliv-
ery of this certificate, and the issuer of said bonds has rgeeived the agreed purchase price for the said
bonds, as follows:
PRINCIPAL AMOUNT .............................................................. 2,720,000.00
ACCRUED INTEREST..............................................................$
PLUS PREMIU'M...............................:........................................$
TOTAL AMOUNT" RECEIVED
ON DELIVERY OF BONDS.. $
(4) At the time of such delivery there were no matured coupons attached to said bonds and all un-
matured coupons were attached to said bonds.
(5) That the undersigned has executed this certificate in the capacity hereinafter shown for and on
behalf of the said issuer of bonds. -
EXECUTED AND DELIVERED this...............................................................................................
City Treasurer
City of Lubbock, Texas
The foregoing signature of the foregoing designated official of the issuer is hereby certified as
genuine.
(BANK SEAL)
(Bank)
LAW OFFICES
Wn—, Hugu-in, 13—thman and Tlorrow
1212 t%il u1 Natiwal hank Building
t)allas, Texus r5201
5
.. i►l- .r.J6
NO -ARBITRAGE CERTIFICATE
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK .
The undersigned, being the duly chosen and qualified
Mayor and City Secretary of Lubbock, Texas (the "City") hereby
certify with 'respect to that issue of "CITY OF LUBBOCK, TEXAS,
GENERAL OBLIGATION BONDS, SERIES 1977," dated September 1, 1977,
in the principal amount of .$2,720,000 (the "bonds"), as follows:
1. That we, along with other officers, are charged with the
.responsibility of issuing the bends.
2. That this certificate and'covenant are made pursuant
to Section 1.103-13 of the Income Tax Regulations (the "Regula-
tions") of the Internal Reve rnie Service with respect to arbitrage
bonds as described in Section 103(c) of the Internal Revenue
Code of 1954, as amended (the "Code"), and the words and phrases
used herein have the same meanings as defined and used in the Regu-
lations.
3. That this certificate is based on facts, estimates, and
circumstances in existence on the date of issue of the bonds, and
on such basis it is'reasonably expected that the following will
occur with respect to the bonds:
(a) That the. City has incurred, at the date of
issue of the bonds, or will incur, within six months
after the date of issue of the bonds, binding obliga-
tions to commence each of the projects, respectively,
to be financed by the bonds, either by entering into
contracts for the construction of such projects to be
financed by the bonds, or by entering into contracts
for architectural or engineering services for such
projects, with the amount to be paid under each.such
contract with respect to each such project to be in
excess of two and one-half percent of the part of the
proceeds of the bonds allocated to each such project,
respectively;
(b) That after entering into said contracts, work
on all of the projects will proceed with due diligence
to completion;
(c) That all of the spendable proceeds of the bonds
will be expended for project costs by the end of the
three-year period beginning on the date of issue of the
bonds;
(d) That none of the proceeds of the bonds will be
placed in a reserve or replacement fund, and none of
the proceeds of the bonds will be used to acquire any
obligations except during the temporary period''of three
years beginning on the date of issue;
(e) That none of the projects will be sold or
otherwise disposed of, in whole or in part, prior to
the last maturity of the bonds;
(f) That the original proceeds of the bonds will
not exceed by more than five percent -the amount neces-
sary for the purpose or purposes of the bonds.
4. That on the basis of the foregoing it is not expected
that the proceeds of the bonds will be used in any manner that
would cause such obligations to be arbitrage bonds under Section
103(c) of the Code and the Regulations prescribed under that
Section, and it is further specifically covenanted that the pro-
ceeds of the bonds will not be used directly or indirectly so
as to cause all or any part of the bonds to be or become arbitrage
bonds within the meaning of that Section or the Regulations pre-
scribed by that Section.
.5. That to our best knowledge and belief there are no other
facts, estimates, or circumstances that would materially change
the foregoing conclusions or statements.
6. That the City has never been listed in a Notice pub-
lished in the Intr. .aa1 Revenue Bulletin as described in Paragraph
(a)(2)(iii) of Sec Lon 1.103-13 of the Regulations, and has never
been advised that ach a listing is contemplated.
EXECU'. as f the day of 1977�
being the & of ..._livery of these bonds and.the date of issue
as provided the ;::egulations.
Mayor, City of Lubbock, Texas
City Secretary, City of Lub oc , Texas
(City Seal)
Based on my examination of law and review of the accom-
panying certificate, I am of the opinion that facts, estimates
and circumstances are sufficiently set forth in the certificate'
to.satisfy the criteria which are necessary under sections
1.103-13 and 1.103-.14 of the proposed regulations under section
103(c) of the Internal Revenue Code to support the conclusion
that"the bonds will not be arbitrage bonds. No matters have
come to my attention which make unreasonable or incorrect
the representations made in the certificate.
City Attorney