HomeMy WebLinkAboutResolution - 072877F - Notice Of Bond Sale And Bidding Instructions - First Southwest Company - 07_28_1977t
672 877 F
R E S O L U T I O N
WHEREAS, the City Council of the City of Lubbock, Texas
desires to receive bids for the purchase of its $2,720,000 General
Obligation Bonds, Series 1977; and
WHEREAS, First Southwest Company, Dallas, Texas, has been author-
ized and requested to prepare a Notice of Bond Sale and Bidding In-
structions, Official Bid Form and Official Statement containing fi-
nancial, economic and other data necessary and desirable to attract
bids for said bonds;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF LUBBOCK, LUBBOCK, TEXAS:
That the attached Notice of Bond Sale and Bidding Instructions,
Official Bid Form and Official Statement relative to $2,720,000 City
of Lubbock, Texas General Obligation Bonds, Series 1977, are hereby
approved, both as to form and content, and said First Southwest Company
is authorized to distribute said Notice of Bond Sale and Bidding In-
structions, Official Bid Form and Official Statement to prospective
bidders for, and purchasers of, the bonds.
PASSED AND APPROVED this the 28th day of July, 1977, by the City
Council of the City of Lubbock, Lubbock, Texas, convened in regular
session with a lawful quorum present.
3% ��n
Roy Bass
Mayor, City of Lubbock, Texas
ATTEST:
Treva Phill s
City Secretary, City of Lubbock, Texas
APPROVED AS TO FORM:
I y.
Fred 0. Senter, Jr.
City Attorney
City of Lubbock, Texas
R E S O L U T I O N
WHEREAS, the City Council of the City of Lubbock, Texas
desires to receive bids for the purchase of its $2,720,000 Gm eral
Obligation Bonds, Series 1977; and
WHEREAS, First Southwest Company, Dallas, Texas, has been author-
ized and requested to prepare a Notice of Bond Sale and Bidding In-
structions, Official Bid Form and Official Statement containing fi-
nancial, economic and other data necessary and desirable to attract
bids for said bonds;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF LUBBOCK, LUBBOCK, TEXAS:
That the attached Notice of Bond Sale and Bidding Instructions,
Official Bid Form aid Official Statement relative to $2,720,000 City
of Lubbock, Texas General Obligation Bonds, Series 1977, are hereby
approved, both as to form and content, and said First Southwest Company
is authorized to distribute said Notice of Bond Sale and Bidding In-
structions, Official Bid Form and Official Statement to prospective
bidders for, and purchasers of, the bonds.
PASSED AND APPROVED this the 28th day of July, 1977, by the City
Council of the City of Lubbock, Lubbock, Texas, convened in regular
session with a lawful quorum present.
Roy Bass
Mayor, City of Lubbock, Texas
ATTEST:
Treva Phillips
City Secretary, City of Lubbock, Texas
APPROVED AS TO FORM:
Fred 0. Senter, Jr.
City Attorney
City of Lubbock, Texas
� r
1
NOTICE OF SALE
AND
BIDDING INSTRUCTIONS
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 etitive Biddin ... The City of Lubbock, Texas (the "City"), is offering for
sale its Generaligatwn n s, Series 1977 (the 'Bonds").
Address of Bids ... Sealed bids, plainly marked "Bid for Bonds", should be addressed and delivered to "Mrs.
rev'f�a Phillips, City Secretary, City of Lubbock, Texas", prior to 10:30 AM, CDT, 6n the date of the bid
opening. All bids must be submitted on the Official Bid Form, without alteration or interlineation.
Place and Time of Bid O enin ... The City Council will open and publicly read the bids for the purchase
o t Bon at AM, CDT, Thursday, September 29, 1977.
Award of the Bonds ... The City Council will take action to award the Bonds (or reject all bids) promptly
after the opening of bids, and adopt an Ordinance authorizing the Bonds (the "Ordinance") and pass a
Resolution adopting the Official Statement.
THE BONDS
Descri tion ... The Bonds will be dated September 1, 1977, and interest coupons will be due on March 1,
an each September I and March I 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
- TM
Myw
rw
53, Om
1979
135,000
1989
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
turn an a valorem tax levied, within the limits prescribed
by law,
on taxable property located within the
` City.
_1_
CONDITIONS OF THE SALE
MTypes of Rids and Interest Rates... The Bonds will be sold in one block on an "All or None"basis, and at a
:xice o not ess than
n ttTeir ppar value plus accrued interest to the date of delivery of'the Bonds. Bidders
are Invited to name the rates) 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 101X. The highest coupon rate bid may not
-xeeed the lowest coupon rate bid by more than 2 1/2% in coupon rate. No limitation is imposed upon
andders as to the number of rates or coupon changes which may be used. All Bonds of one maturity must
near 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
cobe'mput a�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 May3F 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 ra-Mtxe to print such number on any Bond nor any error with respect thereto shall constitute
cause for a failure or -refusal by the Purchaser to accept delivery of and pay for the Bonds in accordance
with the terms of this Notice of Sale and the terms of the Official Bid Form. All expenses in relation to
the printing of CUSIP numbers on the Bonds shall be paid by the City; provided, however, that the CUSIP
Service Bureau charge for the assignment of the numbers shall be the responsibility of and shall be paid
for by the Purchaser.
Delivery ... The Bonds will be tendered for delivery to the Purchaser at any bank in Austin, Texas; at the
expense of the City. Payment for the Bonds must be made in immediately available funds for 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 Delivery ... The obligation of the Purchaser to take up and pay for the Bonds is subject to
fife rc asers 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.
,Leal O miom ... The Bonds are offered when; as and If issued, subject to the unqualified legal opinion of
t ttorney Lieneral 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
will execute and deliver tote 175-r-chaser a certificate in the form set forth in the Official Statement.
Change ,ln Tax Exempt Status ... At any time before the Bonds are tendered for delivery, the Purchaser
may wit raw is i t 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 S Laws ... By submission of his bid, the Purchaser represents that the sale of the Bonds in states
of r t n exas 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 We does not alone constitute an offer to sell the Bonds, but is
merely notice of the sale of the Bonds. The offer to sell the Bonds is being made by means of the Notice
of Sale and Bidding Instructions, the Official Bid Form and the Official Statement. Prospective
purchasers are urged to carefully examine the Official Statement to determine the investment quality of
the Bonds.
Issuance of Additional Bonds ... The City does not plan to sell any additional General Obligation Bonds
until see"General igation Bond Program" in Official Statement).
U... The outstanding General Obligation Bonds of the City are rated "Aa" by Moody's Investors
i e, Inc. and "AA" by Standard h Poor's Corporation. Applications for contract ratings on this issue
have been made to both Moody's and Standard do PoorS. 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 an 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 50 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
otice o e an mg nstructions, the Official Bid Form and the Official Statement, as available
over and above the normal mailing, may be obtained at the offices of First Southwest Company, 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.
ATTEST:
TREYA PHILLIPS
City Secretary
July 28, 1977
ROY BASS
Mayor
BOND YEARS
Accumulated
Year Amount Bond Years Bond Years Year
1978 $135,000 67.5 67.5 1978
1979 135,000 202.5. 270.0 1979
1980 135,000 337.5 607.5 1980
1991 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 1984
1985 135,000 1,012.5 4,320.0 1985
1986 135,000 1,147.5 5,467.5 1986
1937 135,000 1,282.5 6,750.0 1987
1988 135,000 1,417.5 8,167.5 1988
1989 135,000 1,552.5 9,720.0 1989
1990 135,000 1,687.5 11,407.5 1990
1991 135,000 1,822.5 13,230.0 1991
1992 135,000 1,957.5 15,187.5 1992
1993 135,000 2,092.5 17,280.0 1993
1994 140,000 2,310.0 19,590.0 1994
1995 140,000 2,450.0 22,040.0 1995
1996 140,000 2,590.0 24,630.0 1996
1997 140,000 2,730.0 27,360.0 1997
Average Maturity ------------------- 10.059 Years
moo
OFFICIAL BID FORM
Honorable Mayor and City Council September 29, 1977
City of Lubbock _
Lubbock, Texas
Gentlemen:
Reference is made to your Official Statement and Notice of Sale and Bidding Instructions, dated 3uly 28,
1977, of $2,720,000 CITY OF LUBBOCK, TEXAS GENERAL OBLIGATION BONDS, SERIES 1977, both of
which constitute a part hereof.
For your legally issued Bonds, as described in said Notice of Sale and Bidding Instructions and Official
Statement, we will pay you par and accrued interest from date of issue to date of delivery to us, plus a
cash premium of $ for Bonds maturing and bearing interest as follows:
Interest Interest Interest
Maturity Rate Maturity Rate Maturity Rate
3-1-78 % 3-1-95 % 3-1-91 %
3-1-79 % 3-1-96 % 3-1-92 %
3-1-90 % 3-1-87 % 3-1-93 % _-
3-1-91 % 3-1-99 % 3-1-94 %
3-1-82 % 3-1-99 % 3-1-95 %
•3-1-93 % 3-1-90 % 3-1-96 %
3-1-94 % 3-1-97 %
Our calculation (which is not a part of this bid) of the interest cost from the above is:
Total Interest Cost $
Less Premium
NET INTEREST COST $
EFFECTIVE INTEREST RATE %
Check of the Bank, in the
amount o which represents our Goo atth Deposit is attached hereto or has been
made available to you prior to the opening of this bid), and is submitted in accordance with the terms as set
forth in the Official Statement and Notice of We and Bidding Instructions.
We agree to accept delivery of and make payment for the Bonds at Bank;
Austin, Texas, on November 2, 1977, or thereafter on the date the Bons are ten ere or a rvery, pur-
suant to the terms set forth in the Notice of Sale and Bidding Instructions.
Respectfully submitted,
By
Authorized Representative
ACCEPTANCE CLAUSE
The above and foregoing bid is hereby in all things accepted by the City of Lubbock, Texas, this the 29th
day of September, 1977.
Mayor
ATTEST -
City Secretary
Return of Good Faith Deposit is hereby acknowledged:
By
This Official Statement does not constitute an offer to sell Bonds in any jurisdiction to any person to whom It is unlawful to
make such offer in such jurisdiction. No dealer, salesman, or any other person has been authorized to give any information or
make any representation, other than those contained herein, in connection with the offering of these Bonds, and if given or
made, such information or representation must not be relied upon. The information and expressions of opinion herein are
subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under
_ any circumstances, create any implication that there has been no change in the affairs of the City since the date hereof.
OFFICIAL STATEMENT
Dated 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 I 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 _M_at�unt� Rate Yield Amount M�aturit Rate Yield
,000 3-1-78 S,Odb 3-1-88
135,000 3-1-79 135,000 3-1-89
135,000 3-1-80 135,000 3-1-90
135,000 3-1-91 135,000 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 3-1-86 140,000 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: Attorne General of the State of Texas and
Messrs. Dumas Hu uenin Boot rnan an Morrow Attorneys, Dallas Texas.
Opinion Pnnte on the Bon s; See Legal Opinions.
Delivery: Anticipated on or about November 2, 1977.
No Text
ELECTED OFFICIALS
Length of Term
City Council Service Expires
Occu ation
Roy Bass 3 Years April 1978
Attorney -At -Law Bass do 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 1979
Partner, The Insurance Group Agency
Councilman
Bill McAlister l 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 City of Lubbock --- - --
Larry J. Cunningham City Manager
Appointed 9-1-76 10 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 Years
Jimmy W. Weston Director of Community Facilities
Appointed 4-9-76 10 Years
Marvin W. Coffee Director of Aviation
for 6 Years 6 Years .
Denzel W. Percifull Director of Public Services
Appointed 4-18-77
John R. Brooks Tax Assessor -Collector
for 8 Years 23 Years
CONSULTANTS AND ADVISORS
Auditors-----=----------------------------------------------------- Mason, Nickels & 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 & Gee
Abilene, Texas
Engineers for SO 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, Inc.
Washington, D. C.
Reappraisers of Shopping Center -------------------------------------- Marshall & Stevens, Inc.
Los Angeles, California
- 3 -
VALUATION AND DEBT INFORMATION
January L, 1976, Appraised Value of Property Included in
1976 Taxable Assessed Valuation (Source: Tax Assessor=
Collector, City of Lubbock) $1,663,275,535
1976 Taxable Assessed Valuation (60% of 1-1-76 Appraisal
Value) (See Notes L, 2 and 3)
$ 997,965,321
City Funded Debt Payable from Ad Valorem Taxes (As of
4-30-77) (See Notes 4 and 5)
General Purpose Bonds (including $L,820,000 of this Issue)
$37,889,972
Waterworks Bonds (including $400,006 of this issue)
5.282,441
Sewer System Bonds (including $500,000 of this issue)
3,209,513
Electric Light Bonds
L91,074
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 Valuation ------------------------------ 4.67%
1977 Estimated Population - 175,000
Per Capita Taxable Assessed Valuation- $5,702.66
Per Capita Total Debt - $266.13
Area - 83.81 Square Miles
Note 1: (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 3anuary 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 $1,580,000 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 $399,820 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 note 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
T977 15,512.80 24,437.20 40,000.00 334,306.00
1979 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 19,242.80 40,000.00 238,952.00
1993 23,280.40 16,719.60 40,000.00 215,571.60
1984 24,910.00 15,090.00 40,000.00 190,661.60
1985 26,653.60 137346.40 40,000.00 164,008.00
1986 28,519.60 11,480.40 40,000.00 135,488.40
1987 30,515.60 9,484.40 40,000.00 104,972.80
1988 32,652.00 7,349.00 40,000.00 72,320.80
1989 34,937.60 57062.40 40,000.00 37,383.20
1990 37,383.20 2,616.80 40,000.00 -0-
$349,818.80 $210,181.20 $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(1)
standing_, Year End
Assess
ed sed Valuation
- 9 0
35U,866,936(2)
W 7'1 0,� 006
5.00%
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)
30,962,000
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
716,223,294(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 from 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 1974-75 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)
Real Estate:
(Residential and business land
and buildings)
Personal Property:
1976 % of
Taxable Taxable
Assessed Assessed
Valuation Valuation
$705,954,020 70.74%
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%
1,30 29.2�%
$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
,888,760 "Over 6 " 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 ert Automobile Su lements Valuation
T99 --To 4 5,947, 70 91,727,950 15,760,700 $ 569,nt4 S542,966,536
1967 60% 453,439,430 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% 490,135,900 134,524,140 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% 527,814,930 158,183,100 23,166,355 2,060,909 716,225,294
1974 60% 583,951,000 179,961,580 37,971,470 (4,496,182) 797,387,868
1975 60% 650,705,600 189,955,610 51,291,080 31,605,357 923,557,647
1976 60% 705,954,020 223,968,871 68,042,430 997,965,321
- 6 -
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"), 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 compara-
tively 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 L975 Taxable Assessed Valuation includes $23,473,235 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 En tions Exemptions
9 4 11,395,900 Not Effective
1975 13,323,150 Not Effective
1976 11,888,760* $ 1,307,240*
• As of 16-1-76. -The Tax Assessor -Collector estimates that an additional $3,000,000 in "Over 65" and an
additional $350,000 "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
T577-7$$r,057,OTO,60
1979-79 1,130,000,000
1979-80 1,203,000,000
1980-81 1,280,000,000
1981-92 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 5-21-77 L ,775,000 -0-- 400,000 1 , 75,000
Sewer System 5-21-77 3,303,000 -0- 500,000 2,803,000
Street Improvements 5-21-77 4,792,000 -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
$28,395,000 $1,715,000 $2,720,000 $23,950,000
7 _
ESTIMATED GENERAL OBLIGATION BOND PROGRAM
Anticipated issuance
1982 or
1978 1979 1980 1981 Later Total
Waterworks System 3,905,000 3,245,000 6,280,000 2,945,000 5 -0- 16,3 55,000
Sewer System 1,153,000 1,330,000 -0- 120,000 . -0- 2,903,000
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 of 4- - 7
Estimated
Total
%
Taxing Jurisdiction
Funded Debt
AA licable
ity of Lu c
4 , 2,000
100.00%
Lubbock Independent School District
13,100,000
99.34 %
Lubbock County
-0-
80.00%
Lubbock County Hospital District
2,815,000
80.00%
Lubbock County Water Control and
Improvement District No. 1
100,000
80.00%
Lubbock -Cooper Independent School District
934,000
3.83%
Frenship Independent School District
961,273.
18.52%
Roosevelt Independent School District
798,000
0.14%
Idalou Independent School District
818,000
0.01%
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)
Overlapping
Funded Debt
4 , 2,00
13,013,540
-0-
2,252,000
80,000
35,772
178,023
1,117
82
$62,132,539
------ 6.23%
Distribution
(1)
(2)
Tax
Tax
General
Boardof City
Interest an
(1)
% Current
% Total
Year
Rate
Fund
De if ment
Sinking Fund
Tax Lev
Collections
Collections
67
.18
0.63
0.03
0.50
6,405,829
93.82%
97.86%
1967-68
1.18
0.61
0.05
0.52
6,690,427
94.25%
97.93%
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
6,665,910
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
12,560,394
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
History , page 4,the 1975 Assessed Valuation represented by this levy is $23,478,2 5. In the City's opinion,
these 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 l of each year; taxes become due October 1 of the
same year, and become delinquent on January 31 of the following year. Split payments are not
permitted. Discounts are not allowed.
TAX RATE LIMITATIONS
All taxable property within the City is subject to the assessment, levy and collection by the City of a
continuing, direct annual ad valorem tax sufficient to provide for the payment of principal of and
interest on all types of tax obligations of the City within the limits prescribed by law. Article XI,
Section 5, of the Texas Constitution is applicable to the City of Lubbock, and limits its maximum ad
valorem tax rate to $2.50 per $100 assessed valuation (for all city purposes). The City operates under a
Home Rule Charter which adopts the 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 Ci, Tax Levy Tax Rate Per Capita■
1969 2,421,053 38.29% $0.414 $16.24
1970 2,596,398 39.95% 0.431 17.41
1971 2,964,736 44.48% 0.480 19.88
1972 3,086,164 42.96% 0.490 20.19
1973 3,790,338 44.42% 0.573 23.72
1974 4,537,048 46.58% 0.634 26.52
1975 4,763,912 43.93% 0.597 27.84
1976 5,690,591 45.31% 0.616 32.52
* Based an 1970 U. S. Census for 1969 through 1971, and on estimated population for 1972 through 1976.
•* Collections for one quarter only.
TOP TEN TAXPAYERS
1976 % of 1976
Taxable Taxable
Assessed Assessed
Name ofTTNature of oerty Valuation Valuation
nBll eUtilP
Southwester Company Telehoty
22,0 2,490 2.21%
Southwestern Public Service Company Electric Utility 13,539,290 1.36% -
First National Bank Bank 11,568,310 1.16%
Texas Instruments Incorporated Electronic Manufacturing 11,299,160 1.13%
Lubbock National Bank Bank 9,272,860 0.93%
American State Bank Bank 7,190,850 0.72%
Clark Equipment Company Earth Hauling Equipment 6,345,050 0.64%
Plains Co-op Oil Mill Cotton Oil Mill 5,704,190 0.57%
Pioneer Natural Gas Company, a
subsidiary of Pioneer Corporation Gas Utility 5,648,550 0.57%
Texas Commerce Bank, N. A., a
_ subsidiary of Texas Commerce
Bancshares, Inc. Bank 4,772,870 0.48%
9 402 20 -9-.T7—%
- 9 -
INTEREST AND SINKING FUND MANAGEMENT INDEX
General Obligation Debt Service Requirements for Fiscal Year Ending 9-30-77-------- $6,117,408
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
6,366,689
Estimated Surplus-----------------------------=----------------------------------
$ 449,281
COMPUTATION OF SELF-SUPPORTING DEBT (1)
Electric Llght
Waterworks Sewer
and Power
System System
System
Net System Revenue Available for Fiscal
Year Ending 9-30-76 $1,469,959 $767,109
$5,256,683
Less: Revenue Bond Requirements, 1976-77
Fiscal Year 594,610 -0-
2,297,068
Balance Available for Other Purposes $ 975,349 $767,108
$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-SuAporting 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.
i
SERVICE REQUIREMENTS
=
7D.EBT
bENERAL OBLIGATION BOND
(B)
(B)
Fiscal
Grand Total
Less;
Less:
Less;
Grand Total
Year
(A)
General Obli.
Waterworks
Electric
Sewer System
General Pur-
% of
Ending
Outstandin Bonds
These
$2,720.000
Bonds
ation Bond
Tax Bond
Tax Bond
Tax Bond
pose Bond
Principal
9-30
rinn a
Total
Principa
Interest
Tota
Re irements
u
Re uirements
�,
Requirements
Re ulrements
Re uirements
Retired
75M4,
,0
�Intge�rest �
a L'VJVIIVAi
ram$+
, d$
J /),6V3
.4 , 0
4, , 4
1978
3,995,000
1,850,698
5,845,698
$ 133,000
$ 143,987
$ 290,987
6,126,585
951,690
42,171
509,129
4,723,595
1979
3,721,000
1,679,856
3,400,856
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
5,457,703
691,473
42,033
444,637
4,279,560
1981
3,456,000
1,372,315
4,828,313
135,000
123,613
238,613
5,086,928
659,993
42,233
409,307
3,975,395
38.55%
1982
3,040,000
1,254,738
4,294,758
135,000
116,187
251,187
4,545,945
337,521
325,299
3,693,125
1983
2,930,000
1,106s098
.4,036,098
135,000
108,763
243,763
4,279,861
482,985
283,607
3,311,269
1984
2,930,000
980,193
i3,910,193
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
3,963,833
403,693
241,019
3,219,122
1986
2,695,000
731,495
3,426,495
135,000
86,487
221,497
3,647,982
349,885
217,933
3,080,144
68.37%
1987 -
2,545,000
610,440
3,133,440
133,000
79,063
214,063
3,369,503
280,033
208,967
2,880,503
1938
2,420,000
492,742
2,912,742
133,000
71,637
206,637
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
2,334,021
135,000
56,787.
191,787
2,545,808
180,677
132,153
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
1,692,878
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
31,156
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
11,530
151,350
235,790
22,293
27,855
195,642 .
99.72%
1997
140,000
3,850
143,830
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
$ 67,364,130
$7,466,849
$242,194
$4,597,013
$ 55,259,072
(A) Interest
an 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 Requirements, (after issuance of these Bonds) ----------------------------
$6,126,385
$0.65 Tax Rate @ 95% Collection Produces (Based on
.
1976 Taxable Assessed Valuation) ------------------------
$6,162,436
i
i
PENSION FUNDS
Texas Munici al Retirement S stem ... All permanent, full time City employees who are not firemen and
wno were less t n 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 1 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
$3,070,663. 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 ------------------------ $ 952,466
Accrued current service liabilities -------------- 8,426,203
Unfunded accrued current service liabilities* --------- 117,567
Total Assets --------------------------------------- $9,496,236
* 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% 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..
Summgarof Pension Fund Costs ... City contributions to these funds during the past 2 fiscal years, as
ar chto operations, were:
Fiscal Year Ending
9-30-76
9-30-75
General Fund
5 823,464
7 ,1
Electric Revenue Fund
138,927
124,022
Water Revenue Fund
36,985
35,821
Intragovernmental Service Fund
29,116
23,991
Municipal Airport Fund
19,087
14,723
Sanitation Revenue Fund
67,924
59,080
Sewer Revenue Fund
22,326
19,618
Trust and Agency Fund - Community Service
2,066
919
, 8
3
- 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. generators provide
t e system with 64,63U 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
or berg 1 �— Diesel Diesel 900 -- ----
Nordberg 1933 1 Diesel Dual Fuel 1,000
Nordberg 1937 1. Diesel Dual Fuel 1,250
Nordberg 1938 1 Diesel Dual Fuel 1,500
Nordberg 1940 1 Diesel Dual Fuel 2,250
Nordberg 1942 1 Diesel Dual Fuel 2,250
Nordberg 1946 2 Diesel Dual Fuel 2,500
Nordberg 1947 2 Diesel Dual Fuel 2,500
DeLavel 1949 2 Steam Turbine Gas or Oil 7,500
Westinghouse 1952 2 Steam Turbine Gas or Oil 11,500
Westinghouse 1953 2 Steam Turbine Gas or Oil 11,5n0
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
T$3,150
Transmission and Distribution A 69,000 volt (69 KV) transmission loop system, 36 miles in length,
provides bulk power to seven 20 MVA-69,000/12470 volt -substations. A second 69 KV transmission loop
system insulated for operation at 138 KV 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 12,470/41.60 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 $18,800,000 Revenue Bond issue for the construction and expansion of
production and distribution facilities was approved at an election on May 12, 1973. This construction
program included:
Estimated
Cost
Generating Facilities
one 20,000 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-eonductoring 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
b00
* Including estimated contract escalation and engineering fees.
interconnection ... The Federal Power Commission has made a study of the feasibility of interconnecting
Lubbock 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 providd 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.
Fuel Suppl ... Primary fuel supply is natural gas which is supplied by Pioneer Natural Gas Company, a
rvisd 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, 1981, 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.
7 LIE
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+ 511,887,144+ 9,440,610+ 7,U7-,044+ 6,665,910+
Expense 11,455,620 8,508,578 5,744,751 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 5%
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,$880,859.
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-------------- $21,180,000
Interest and Sinking Fund, Cash and Investments, 9-30-76------------------------- $ 1,199,233
Reserve Fund, Cash and Investments, 9-30-76------------------------------------ $ 1,109,273
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 92I,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 $84,605,000, the Canadian River Project
will eventually yield 103,000 acre feet of water annually. Lubbock is entitled to receive 37.053% of the
available annual supply - 38,200 acre feet when yield reaches t03,000 acre feet. Cost of the Project is
being repaid to the Bureau of Reclamation by the Authority through a reimbursable loan maturing andually
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
pro ucmg 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 Bills"
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 61 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.
- 15 -
�The ��Syys�tem__ ... Lubbock's Waterworks System is modern and efficient and was valued at $30,175,811,
as teeciation 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 165,000,000
gallons per day. Average daily water consumption was 29.8 million gallons in 076. '
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
!,tture capability of 70 MGD, when expanded. Maximum daily input is presently 42 MGD. The plant also
-:,eats water for several other members of the Authority; the City of Lubbock is fully reimbursed for these
costs.
Waterworks Revenue Bonds ... There are no authorized but unissued Waterworks Revenue Bonds.
CONDENSED STATEMENT OF OPERATIONS
WATERWORKS SYSTEM
Fiscal Year Ended 9-30-76 9-30-75 9-30-74 9-30-73 9-30-72
Income 5,271,396 5,o90,779 3 5,5 71,38 4,a7,,751 4,7 5,74 -- -
Expense• 3,801,437 3,498,878 2,898,963 2,585,492 2,446,169
Net Revenue Available
for Debt Service $1,469,959 $1,591,901 $2,672,424 $2,293,259 $2,269,572
Number of Customers 49,777 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--------- $2,0309304
INCREASE IN WATER RATES
The City Council has passed, on second and final reading, an ordinance
increasing water rates for billings rendered on and after October 1,
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 Council also increased sewer rates, effective for billings
rendered on and after October 1, 1977, by approximately the same percentage
as water rates.
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 234,405 in 1975.
Lubbock Regional Airport Terminal ... A new terminal building was completed in April, 1976. Containing
approximately 144,000 square feet, the terminal houses airport administrative offices, airline offices and
ticket counters, the baggage claim area, car rental offices, a restaurant and inflight meal preparation
kitchen, and meeting and press rooms, and provides 6 gates for airline use; 5 gates are jetway. equipped. 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 - 9,500' x 150', 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 - 9,500' x 1501, east/west, cross -wind runway, with high intensity lighting and VASI-4;
1 - 2,800' x 150' general aviation runway; and a taxiway system connecting the runways with aprons,
the 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 Development ... The Airport Master Plan, dated June, 1969, and updated in September, 1971,
will be completed by January, 1979, 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 1976177 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
Income
,26 ,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
$ 261,685
$ 623,104
$ 779,824
455,176
$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 $20,629,962 cost of construction work in
progress), 9-30-76------------------------------------------------------------ $24,955,276
GENERAL INFORMATION REGARDING THE CITY AND ITS ECONOMY
O 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 .. .
O Lubbock is the eighth largest City in Texas:
City of Lubbock
(Corporate Limits)
1910 Census
,
1920 Census
4,051
1930 Census
20,520
1940 Census
31,953
1950 Census
71,390
1960 Census
129,691
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.
• She 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 3,000 W5
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 4,133,000 4,615,000
Total Cash Receipts $71,970,000 $127,932,000 $96,794,000 '$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 pproduction in this same area was 115,337,500 bushels; and 1975 cash
--- - - -receipts from farm market ings were $1,174,549,000.
• 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.
BUSINESS AND INDUSTRY ...
Lubbock SMSA Labor Force Estimates
(Source; Texas EmploymentCommission)
April March February April March February
1977* 1977— 1977++ 1976— 1976++ 1976--
Civilian Labor Force VrW 96,130 —57,M 92,160 R 70 6
Total Employment 94,890 92,970 91,370 88,820 86,250 95,160
Unemployment 2,990 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.
• The Texas Employment Commission reported In May, 1977, that April, 1976, nonagricultural
employment in the Lubbock area totaled 80,320, 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.
0 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
Product
5-1-77+
Texas nstruments, Inc.Consumer
Products with mt-Con uctor
b, Sb-•
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 do Company
Men's Slacks, Women's Slacks
350
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 -
O 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.
O Lubbock is operation headquarters for the following nationally known concerns:
Furr's Cafeterias
Furr's Supermarkets
Plains Co-op Cotton Marketing Association
Plains Co-op Oil Mill
T.I.M.E.-DC, Inc.
O 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.
O 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. --
O 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 DK Year End D�,sit7s-,4 5
1967 359,745,173 1973 723,327,701
1968 339,630,275 1974 793,915,466
1969 412,459,082 1975 978,164,171
1970 477,247,184 1976 1,013,973,289
1971 527,314,293
EDUCATION ... TEXAS TECH UNIVERSITY ...
O 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 51 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).
O 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.
O 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...
O 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.
-20-
STUDENT MEMBERSHIP HISTORY(1)
Student
Refined Average
School I-�
Memberhsi
Dail A
0dance
1967-69
32,451
32,
31,667
196E-69
32,501
31,358
1969-70
32,401
31,322
1970-71
32,649
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.
O 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...
O 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.
O 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,
•ind San Francisco. Texas, New Mexico and Oklahoma Bus Lines, home office in Lubbock, operates some
15 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.
O 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 ...
O 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
O State of Texas ... More than 25 State of Texas departments, agencies and commissions have offices in
Lubbock; several of these offices have multiple divisions.
3 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.
OHM
HOSPITALS AND MEDICAL CARE ...
0 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 plus 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 125-bed hospital, replacing an older facility.
0 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.
0 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...
0 Lubbock's Mackenzie State Park and 52 City parks provide recreation centers, playgrounds, shelter
buildings, a garden and art center, swimming pools, a golf course, tennis and volley ball courts, baseball
diamonds and picnic areas. The City owns 2,650 acres of park sites of which 1,300 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.
0 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.
0 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...
0 Lubbock has over 150 churches representing more than 25 denominations.
UTILITY SERVICES...
0 Water and Sewer - City of Lubbock.
• Gas - Pioneer Natural Gas Company, a subsidiary of Pioneer Corporation.
• F'ectrie - 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; l educational public service channel.
• Radio - 8 AM stations; 5 FM stations.
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ECONOMIC INDICES (1)
Lubbock
County
Motor
Vehicle
Bank Building Utility Connections Postal Regis -
Year Die osits Permits ater as E ectrnc Tel one Receipts trations
TTO 1$ 33 , SIP,219 77C, +,3P3 7, 67i 44,hiI- �3i- �6$, T2- 53,008,178 TT , I'F�
1966 335,400,787 61,680,634 42,067 42,440 48,508 93,358 3,143,873 118,826
1967 359,745,173 30,467,949 42,123 42,675 48,795 98,433 3,404,088 120,622
1968 388,630,275 43,799,529 42,351 42,567 48,808 103,005 3,592,659 123,114
1969 412,459,082 29,764,462 42,293 42,948 49,171 109,488 3,986,118 123,935
1970 477,247,184 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 64,278,038 44,331 45,169 50,717 128,288 5,241,799 142,604
1973 723,327,701 78,844,779 45,565 45,650 50,994 135,344 5,317,985 150,901
1974 793,915,466 118,718,253 46,745 45,971 51,739 141,942 5,737,352 153,639
1975 879,164,171 114,823,400 47,817 47,671 52,451 149,906 6,662,348 158,615
1976 1,013,973,289 91,804,380 49,933 48,809 56,008(2) 158,497 8,027,363 163,358
' Notes: (1) All data as of 12-31, except Postal Receipts which are as of 6-30.
(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 PERMITS(SOURCE: 1 0 L OCK, TEXAS)
Year
No. Units
Value
(Units)
Value
No. Units
Value
Units
Value
T 6
494
,440, 9
56012)
TF,, 0
--=
T__T�6, b
77-0-
37,7E , 4
1968
486
11,117,825
11( 22)
228,000
210
1,461,800 .
718
12,807,625
1969
427
10,077,800
36( 72)
754,000
52
364,000
551
11,195,800
1970
485
10,942,391
15( 30)
429,700
633
5,966,400
1,148
17,338,491
1971
864
20,782,556
670 34)
2,297,700
894
10,079,491
1,892
33,159,747
1972
852
22,667,238
750 50)
3,008,650
1,171
11,315,898
2,173
36,991,786
1973
815
22,702,186
52(104)
2,317,050
949
9,121,400
.1,868
34,140,636
1974
893
29,446,897
34( 68)
1,440,500
773
7,315,500
1,734
38,202,897
1975
1,002
37,766,603
23( 46)
1,165,450
734
5,592,000
1,782
44,524,053
1976
1,164
44,220,463
48( 96)
2,723,150
712
6,908,000
1,972
53,85I,613
Note. (1) Data shown under "No. Units" is for each individual apartment dwelling unit, and is not for separate buildings,
Commercial,
Public
and Other
Permits
1�3b,Tb7
30,991,904
18,568,662
22,697,277
36,049,611
27,286,253
44,704,143
80,515,356
70,299,347
38,052,767
Total
Building
Permits
Tn_1 qT1,9T
43,799,529
29,764,462
40,035,768
69,209,358
64)278,039
78,844,779
118,718,253
114,823,400
91,904,380
RATINGS
Applications for contract ratings on this issue have been made to Moody's Investors Service, Inc.. and
Standard & Poor's Corporation. An explanation of the significance of such ratings may be obtained from
the company furnishing the rating. The ratings reflect only the respective views of such organizations and
the City makes no representation as to the appropriateness of the ratings. There is no assurance that such
ratings will continue for any given period of time or that they will not be revised downward or withdrawn
entirely by either or both of such rating companies, if in the judgment of either or both companies,
circumstances so warrant. Any such downward revision or withdrawal of such ratings, or either of them,
may have an adverse effect on the market price of the Bonds.
TAX EXEMPTION
The delivery of the Bonds is subject to an opinion of 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 effert 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 -
AUTHENTICITY OF FINANCIAL INFORMATION
—i-r financial data and other information contained herein have been obtained from the City's records,
.gaited 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, gcting 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.
ROY BASS
Mayor
ATTEST:
TREVA PHILLIPS
City Secretary
- 25 -
APPENDIX
The information contained in this Appendix has been reproduced from
Audited Financial Statements of the General Fund of the City of
Lubbock, Texas, for the Fiscal Year Ended September 30, 1976. The
Information presented represents only a part of the Annual Audit
Report and does not purport to be a complete statement of the City's
financial condition. Reference is made to the complete Annual Audit
Report for further information.