HomeMy WebLinkAboutResolution - 072778I - Approval To Receive Bids On GO Bonds - 07_27_19787y 5 7- ---,gl - � -fir rs 7)
RESOLUTION
WHEREAS, the City Council of the City of Lubbock, Texas desires to receive
bids for the purchase of its $2, 420, 000 General Obligation Bonds, Series 1978; and
WHEREAS, First Southwest Company, Dallas, Texas, has been authorized and
requested to prepare a Notice of Sale and Bidding Instructions, Official Bid Form
and Official Statement containing financial, economic and other data necessary and
desirable to attract bids for said bonds;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE C
OF LUBBOCK, TEXAS:
That the attached Notice of Sale and Bidding Instructions, Official Bid Form
and Official Statement relative to $2, 420, 000 City of Lubbock, Texas General
Obligation Bonds, Series 1978, are hereby approved, both as to form and content,
and said First Southwest Company is authorized to distribute said Notice of Sale
and Bidding Instructions, Official Bid Form and Official Statement to prospective
bidders for, and purchasers of, the bonds.
PASSED AND APPROVED this the 27th day of July, 1978, by the City Council
of the City of Lubbock, Texas, convened in Regular session with a lawful quorum
present.
Passed by the City Council on this 27th day of July, 1978.
Mayor
:ATT
Mty:48epfetary
APPROVED AS TO FORM:
. 6enter, jr.,
NOTICE OF SALE
AND
;fin
BIDDING INSTRUCTIONS
/t
"
ON
S2,420,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
GENERAL OBLIGATION BONDS, SERIES 1978
Selling Thursday, August 24, 1978, at 10:30 AM, CDT
THE SALE
Bonds Offered for Sale at Competitive Bidding .. The City of Lubbock, Texas (the "City"), is
offering for sale its $2,420,000 General Obligation Bonds, Series 1978 (the "Bonds").
Address of Bids . Sealed bids, plainly marked "Bid for Bonds", should be addressed and
delivered to "Mrs. Evelyn E. Gaffga, City Secretary, City of Lubbock, Texas", prior to 10:30 AM,
CDT, on the date of the bid opening. All bids must be submitted on the Official Bid Form,
without alteration or interlineation.
Place and Time of Bid Opening ... The City Council will open and publicly read the bids for the
purchase of the Bonds at t e City+ Hall, Lubbock, Texas, at 10.30 AM, CDT, Thursday, August 24,
1978.
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
Descrri tion . The Bonds will be dated September 1, 1978, and interest coupons will be due on
March I, 1979, and each September 1 and March 1 thereafter until maturity. The Bonds and
interest coupons attached thereto will be payable at Citibank, N.A., New York, New York, or, at
the option of the holder, at Texas Commerce Bank, National Association, Lubbock, Texas. The
Bonds will mature serially on March 1 in each year as follows:
.Principal
Principal
Principal
Year
Amount
Year
Amount
Year
Amount
T4 §
,0 0
86
$120,000
T9 22
20,000
1980
120,000
1987
120,000
1993
120,000
1981
120,000
1988
120,000
1994
120,000
1982
120,000
1989
120,000
1995
125,000
1983
120,000
1990
120,000
1996
125,000
1984
120,000
1991
120.000
1997
125,000
1985
120,000
1998
125,000
The City reserves the right, at its option, to redeem Bonds maturing March 1, 1994 through March
1, 1998, both inclusive, in whole or any part thereof, on March 1, 1993, or any interest payment
date thereafter, at the par value thereof plus accrued interest to the date fixed for
redemption.
Source of Payment ... The Bonds are direct and voted general obligations payable out of the
receipts from an ad valorem tax levied, within the limits prescribed by law, on taxable property
located within the City.
CONDITIONS OF THE SALE
T es of Bids and Interest Rates . The Bonds will be sold in one block on an "All or None"
basis, and at a price of not ess than their par value plus accrued interest to the date of
delivery of the Bonds. Bidders are invited to name the rate(s) of interest to be borne by the
Bonds, provided that each rate bid must be in a multiple of 1/8 of 1% or 1/20 of 1% and must not
exceed 10%. The highest coupon rate bid may not exceed the lowest coupon rate bid by more than
2 112% in coupon rate. No limitation is imposed upon bidders as to the number of rates or
coupon changes which may be used. Al Bonds of one maturity must bear one and the same rate. No
bids involving supplemental coupons will be considered. Each bidder shall state in his bid the
total interest cost in dollars and the net effective interest rate determined thereby, which
shall be considered informative only and not as a part of the bid.
Basis for Award ... For the purpose of awarding the sale of the Bonds, the interest cost of each
bid will be computed by determining, at the rate or rates specified therein, the total dollar
cost of all interest on the Bonds from the date thereof to their respective maturities, using
the table of Bond Years herein, and deducting therefrom the premium bid, if any. Subject to the
City's right to reject any or all bids and to waive any irregularities except time of filing,
the Bonds will be awarded to the bidder (the "Purchaser") 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 $48,4UU.00, is required. Such Good Faith Deposit shall be in the form of a Cashier's
Check, or its equivalent, which is to be retained uncashed by the City pending the Purchaser's
compliance with the terms of his bid and the Notice of Sale and Bidding Instructions. The Good
Faith Deposit may accompany the Official Bid Form or it may be submitted separately. If
submitted separately, it shall be made available to the City prior to the opening of the bids,
and shall be accompanied by instructions from the bank on which drawn which authorize its use as
a Good Faith Deposit by the Purchaser who shall be named in such instructions. The Good Faith
Deposit of the Purchaser ►7ill 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 f the Mayor and Secretary of the City, and by the manual signature of the
Comptroller of Public Accounts of the State of Texas. fhe Bonds will be in coupon form without
privilege of registration as to principal or interest.
CUSIP Numbers . It is anticipated that CUSIP identification numbers will be printed on the
Bonds, but neither the failure to print such number on any Bond nor any error with respect
thereto shall constitute cause for a failure or refusal by the Purchaser to accept delivery of
and pay for the Bonds in accordance with the terms of this Notice of Sale and the terms of the
Official Bid Form. All expenses in relation to the printing of CUSIP numbers on the Bonds shall
be paid by the City; provided, however, that the CUSIP Service Bureau charge for the assignment
of the numbers shall be the responsibility of and shall be paid for by the Purchaser.
Delivery.The Bonds will be tendered for delivery to the Purchaser at any bank in Austin,
Tex —as, at the expense of the City. Payment for the Bonds must be made in immediately available
funds for unconditional credit to the City, or as otherwise directed by the City. The Purchaser
will be given five business days' notice of the time fixed for delivery of the Bonds. It is
anticipated that delivery can be made on or about September 28, 1978, and it is understood and
agreed that the Purchaser will accept delivery and make payment for the Bonds on September 28,
1978, or thereafter on the date the Bonds are tendered for delivery, up to and including October
12, 1978. If for any reason the City is unable to make delivery on or before October 12, 1978,
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 t e ur- chaser's receipt of (a) the legal opinion of Messrs. Dumas, Huguenin,
Boothman and Morrow, Dallas, Texas, Bond Counsel for the City ("Bond Counsel"), (b) the no -
litigation certificate, and (c) the certification as to the Official Statement, all as further
described in the Official Statement.
Legal Opinions . The Bonds are offered when, as and if issued, subject to the unqualified
legal opines of the Attorney General of the State of Texas, and Messrs. Dumas, Huguenin,
Boothman and Morrow (see Legal Opinions in Official Statement); the opinion of said firm will be
printed on the Bonds.
Certification of Official Statement ... At the time of payment for and delivery of the Bonds,
the City will execute and deliver to the Purchaser a certificate in the form set forth in the
Official Statement.
ii
Change in Tax Exem t Status . At any time before the Bonds are tendered for delivery, the
urc aser may withdraw his bid if the interest received by private holders from bonds of the
same type and character shall be declared to be taxable income under present Federal income tax
laws, either by ruling of the Internal Revenue Service or by a decision of any Federal court, or
shall be declared taxable or be required to be taken into account in computing any Federal
income taxes, by the terms of any Federal income tax law enacted subsequent to the date of this
Notice of Sale and Bidding Instructions.
GENERAL
Blue Sky Laws ... By submission of his bid, the Purchaser represents that the sale of the Bonds
n states other than Texas will be made only pursuant to exemptions from registration or, where
necessary, the Purchaser will register the Bonds in accordance with the securities law of the
states in which the Bonds are offered or sold. The City agrees to cooperate with the Purchaser,
at the Purchaser's written request and expense, in registering the Bonds or obtaining an
exemption from registration in any state where such action is necessary.
Not an Offer to Sell . This Notice of Sale does not alone constitute an offer to sell the
Bonds, but is mere y notice of the sale of the Bonds. The offer to sell the Bonds is being made
by means of the Notice of Sale and Bidding Instructions, the Official Bid Form and the Official
Statement. Prospective purchasers are urged to carefully examine the Official Statement to
determine the investment quality of the Bonds.
Issuance of Additional Bonds ... The City plans to sell additional General Obligation Bonds
over the next severa years (see "Estimated General Obligation Bond Program" in Official
Statement); the next sale will probably be sometime in the first half of 1979.
Ratings .The outstanding General Obligation Bonds of the City are rated "Aa" by Moody's
nI vestorsService, Inc. and "AA" by Standard & Poor's Corporation. Applications for contract
ratings on this issue have been made to both Moody's and Standard & Poor's. The results of
their determinations will be provided as soon as possible.
The Official Statement . The City will furnish to the Purchaser, without cost, 50 copies of
e Official Statement (and 50 copies of any addenda, supplement or amendment thereto),
complete except as to interest rates and other terms relating to the reoffering of the Bonds.
The Purchaser may arrange at his own expense to have the Official Statement reproduced and
printed if he requires more than 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 distribution
or delivery of any of these copies to any one other than the Purchaser.
Additional Co ies of Notice, Bid Form and Statement ... A limited number of additional copies of
This Notice of sale and Bidding Instructions, the Official Bid Form and the Official Statement,
as available over and above the normal mailing, may be obtained at the offices of First
Southwest Company, Investment Bankers, 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 27th day of July, 1978, 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.
DIRK WEST
Mayor
ATTEST
EVELYN E. GAFFGA
City Secretary
July 27, 1978
_
BOND YEARS
Accumulated
Year
Amount
Bond Years
Bond Years
Year
1979 f
120,000
60.0
60.0
1979
1980
120,000
180.0
240.0
1980
1981
120,000
300.0
540.0
1981
1982
120,000
420.0
960.0
1982
1983
120,000
540.0
1,500.0
1983
1984
120,000
660.0
2,160.0
1984
1985
120,000
780.0
2,940.0
1985
1986
120,000
900.0
3,840.0
1986
1987
120,000
1,020.0
4,860.0
1987
1988
120,000
1,140.0
6,000.0
1988
1989
120,000
1,260.0
7,260.0
1989
1990
120,000
1,380.0
8,640.0
1990
1991
120,000
1,500.0
10,140.0
1991
1992
120,000
1,620.0
11,760.0
1992
1993
120,000
1,740.0
13,500.0
1993
1994
120,000
1,860.0
15,360.0
1994
1995
125,000
2,062.5
17,422.5
1995
1996
125,000
2,187.5
19,610.0
1996
• 1997
125,000
2,312.5
21,922.5
1997
1998
125,000
2,437.5
24,360.0
1998
Average
Maturity
-----------------------
10.066
Years
- iv -
OFFICIAL BID FORM
Honorable Mayor and City Council August 24, 1978
City of Lubbock
Lubbock, Texas
Gentlemen:
Reference is made to your Official Statement and Notice of Sale and Bidding Instructions, dated
July 27, 1978, of $2,420.000 CITY OF LUBBOCK, TEXAS GENERAL OBLIGATION BONDS, SERIES 1978, 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
3-1-79
%
3-1-86
%
3-1-92
%
3-1-80
%
3-1-87
%
3-1-93
%
3-1-81
%
3-1-88
%
3-1-94
%
3-1-82
%
3-1-89
%
3-1-95
%
3-1-83
%
3-1-90
%
3-1-96
%
3-1-84
%
3-1-91
%
3-1-97
%
3-1-85
%
3-1-98
Our calculation (which is not a part
of this bid)
of the interest
cost from the above is:
Total Interest Cost
$
Less Premium
NET INTEREST COST S
EFFECTIVE INTEREST RATE %
Check of the Bank, in
the amount o 48, 00.00, which represents our Good Faith Deposit (is attach�he hereto) or (has
been made available to you prior to the opening of this bid), and is submitted in accordance
with the terms as set forth in the Official Statement and Notice of Sale and Bidding
Instructions.
We agree to accept delivery of and make payment for the Bonds at Bank,
Austin, Texas, on September 28, 1978, or thereafter on the date the Bonds are —tendered for
delivery, pursuant to the terms set forth in the Notice of Sale and Bidding Instructions.
Respectfully submitted,
By
Authorized Representative
ACCEPTANCE CLAUSE
The above and foregoing bid is hereby in all things accepted by the City of Lubbock, Texas, this
the 24th day of August, 1978.
ATTEST:
City Secretary
Mayor
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 27, 1978
INTEREST EXEMPT, IN THE OPINION OF BOND COUNSEL, FROM PRESENT FEDERAL INCOME
TAXES UNDER EXISTING STATUTES, REGULATIONS AND COURT DECISIONS
$2,420,000
CITY OF LUBBOCK. TEXAS
(Lubbock County)
GENERAL OBLIGATION BONDS, SERIES 1978
Dated: September 1, 1978 Denomination: $5,000
Principal and semi-annual interest (March 1 and September 1) payable at
' Citibank, N. A., New York, New York,
or, at the option of the holder, at
Texas Commerce Bank, National Association, Lubbock, Texas.
First interest coupon due March 1, 1979.
Coupon bearer bonds, not registrable.
These bonds (the "Bonds") were authorized at elections held on various dates, and constitute
direct and voted general obligations of the City of Lubbock, payable from an ad valorem tax
levied, within the limits prescribed by law, on taxable property located within the City.
MATURITY SCHEDULE
Amy
M3-1-7t Rate
Yield n6t0-6
Matures Rate Yield
120,000
3-1-80
12'
120,000
3-111-90
120,000
3-1-81
120,000
3-1-91
120,000
- 3-1-82
120,000
3-1-92
120,000
3-1-83
120,000
3-1-93
120,000
3-1-84
120.000
3-1-94*
120,000
3-1-85
125,000
3-1-95*
120,000
3-1-86
125,000
3-1-96*
120,000
3-1-87
125.000
3-1-97*
120,000
3-1-88
125,000
3-1-98*
* The City reserves the right, at its option, to redeem Bonds maturing March 1, 1994 through
March 1, 1998, both inclusive, in whole or any part thereof, on March 1, 1993, or any interest
payment date thereafter, at the par value thereof plus accrued interest to the date fixed for
redemption.
Payment Record The City has never defaulted.
ility: Attorney General of the State of Texas.
as. Texas.
Delivery: Anticipated on or about September 28, 1978.
TABLE OF CONTENTS
Page
Official Statement:
Description of the Bonds -------------------------------------------------------
1
ElectedOfficials--------------------------------------------------------------
3
AppointedOfficials------------------------------------------------------------
3
Consultants and Advisors-------------------------------------------------------
3
Introductory Statement---------------------------------------------------------
4
Valuation and Debt Information -------------------------------------------------
5
Other Liabilities--------------------------------------------------------------
6
Note Amortization Schedule -----------------------------------------------------
6
Valuation and Funded Debt History ----------------------------------------------
6/7
1977 Assessed Valuation - Classified -------------------------------------------
7
Taxable Assessed Valuation by Category ---------------------;-------------------
7/8
Estimated Taxable Assessed Valuations ------------------------------------------
8
Authorized General Obligation Bonds --------------------------------------------
8
Estimated General Obligation Bond Program --------------------------------------
8
Estimated Overlapping Funded Debt Payable From Ad Valorem Taxes ----------------
9
TaxData ----------- ------------------------------------------------------------
9
TaxRate Limitations-----------------------------------------------------------
9
1% Municipal Sales Tax ---------------------------------------------------------
10
TopTen Taxpayers--------------------------------------------------------------
10
Interest and Sinking Fund Management.Index-------------------------------------
10
Debt Service Requirements------------------------------------------------------
11
Computation of Self -Supporting Debt --------------------------------------------
12
PensionFunds------------------------------------------------------------------
12/13
Lubbock Power anti Light --------------------------------------------------------
13/14
Condensed Statement of Operations - Electrict Light and Power System -----------
14
The Waterworks System----------------------------------------------------------
15
Condensed Statement of Operations - Waterworks System --------------------------
16
Increase in Water Rates --------------------------------------------------------
16
AirportSystem-----------------------------------------------------------------
16/17
Condensed Statement of Operations - Airport System -----------------------------
17
General Information Regarding the City and Its Economy -------------------------
18/23
Ratings------------------------------------------------------------------------
24
TaxExemption------------------------------------------------------------------
24
Registration and Qualification of Bonds for Sale -------------------------------
24
Legal Investments in Texas -----------------------------------------------------
24
Legal Opinions and No -Litigation Certificate -----------------------------------
24
Authenticity of Financial Information ------------------------------------------
25
Potential Tax Legislation------------------------------------------------------
25
Certification of the Official Statement ----------------------------------------
25
Audited Financial Statements, September 30, 1977, examined by
Mason, Nickels & Warner, Certified Public Accountants ------------------------
Appendix
The cover page hereof, this page, the appendix included herein and any addenda, supplement or
amendment hereto, are part of the Official Statement.
_2_
ELECTED OFFICIALS
City Council Length of Service Ex ires Occupation
Dirt West ected Mayor April , ME, April 1980Owner, West Advertising Agency
Mayor served 4 years previously as
City Councilman including 2
years as Mayor Pro-Tem
Alan Henry 4 Years April 1982 Partner, The InsuPance Group
Mayor Pro-Tem Agency
Carolyn Jordan 6 Years April 198D Attorney -at -Law (Walters &
Councilwoman Associates)
M. J. Aderton Elected April 1978 April 1982 Retired Chairman of the Board,
Councilman Snook & Aderton, Inc.
Bill McAlister 2 Years April 1980 President and Co -Owner, KMCC
Councilman Television
APPOINTED OFFICIALS
Length of
Employment
Position and Length of
Time
With City
Name
In This Position
of Lubbock
Larry J. Cunningham
City Manager
Appointed
9- -76
wears
Sterling K. Miller
Director of Finance
for
13
Years
20 Years
John C. Ross, Jr.
City Attorney
Appointed
7- 3-78
Evelyn E. Gaffga
Secretary -Treasurer
Appointed
7- 3-78
Samuel W. Wahl
Director of Public Works
for
9
Years
25 Years
W. T. (Bill) Wood
Director of Utilities
for
7
Years
22 Years
James E. Bertram
Director of Planning
for
7
Years
9 Years
Jimmy W. Weston
Director of Community Facilities
for
2
Years
11 Years
Marvin W. Coffee
Director of Aviation
for
7
Years
7 Years
Denzel W. Percifull
Director of Public Services
for
1
Year
1 Year
John R. Brooks
Tax Assessor -Collector
for
9
Years
24 Years
CONSULTANTS AND ADVISORS
Auditors ----------------------------------------------------
Mason, Nickels & Warner, CPA's
Lubbock, Texas
Bond Counsel ------------------------------------------
Dumas, Huguenin, Boothman and Morrow
Dallas, Texas
Consultants and Engineers, Airport --------------------------------
Parkhill, Smith & Cooper
Lubbock, Texas
Engineers for Generator System -----------------------------------------------
Tippett & Gee
Abilene, Texas
Engineers for 50 Year Water Supply --------------------------------------
Freese and Nichols
Fort Worth, Texas
Engineers for Transmission Lines and Substations -------------------
Hicks & Ragland Company
Lubbock, Texas
Financial Advisors -------------------------------------------------
First Southwest Company
Dallas, Texas
Personnel Classification and Pay Plan ----------------------
Cresap, McCormick & Paget, Inc.
Washington, D. C.
Public Transportation Consultants --------------------------
Henningson, Durham & Richardson
Dallas, Texas
-3-
INTRODUCTORY STATEMENT
This Official Statement of the City of Lubbock, Texas, a political subdivision located in
Lubbock County (the "City"), is provided to furnish information in connection with the sale of
the City's $2,420,000 General Obligation Bonds, Series 1978 (the "Bonds").
The Official Statement was prepared to present for the purchaser of the Bonds information
concerning the Bonds, the revenues (ad valorem taxes) pledged to the Bonds, the description of
the revenue base, factors that may affect pledged revenues, and other pertinent data, all as
more fully described herein. See "Table of Contents".
Source of Payment .. The Bonds are direct and voted general obligations payable from an annual
add valorem tax levied on all taxable property located in the City within the limits prescribed
by law. See "Tax Rate Limitations".
Purpose ... Proceeds from the sale of the Bonds will be used for Waterworks System and Sewer
ystem improvements, street and drainage improvements, and fire station construction. See
"Authorized General Obligation Bonds".
Future Bond Issues ... The City plans to market substantially all of its remaining authorized
u uAissued $24,MO,000 General Obligation Bonds over the period 1979 through 1982. The next
installment of bonds will probably be sold during the period January -June, 1979. See
"Estimated General Obligation Bond Program".
Administration of the City ... The City operates under a dome Rule Charter which was approved
y the electorate December,Z7, 1917, and thereafter amended from time to time. The Charter
provides for the Council -Manager form of government for the City. Policy -making and super-
visory functions are the responsibility of and vested in the Mayor and City Council.
Declaratory Judgement Covering These Bonds ... The City originally anticipated that $2,720,000
on s would be sold at a public sale on August 25, 1977, but prior to the time of the sale, a
lawsuit was filed questioning the validity of the election held on May 21, 1977, at which the
bonds were authorized by the voters.
The City of Lubbock filed an action under Article 717m, V.A.T.C.S., (an in rem proceeding), in
the District Court of Lubbock County, Texas 99th Judicial District, asking for a Declaratory
Judgement validating and confirming the bonds and the proceedings taken or proposed to be taken
in connection with their authorization, issuance and delivery.
The trial court consolidated the other lawsuit into the lawsuit filed by the City of Lubbock (Ex
Parte, City of Lubbock, cause number 87,536 in the 99th District Court of Lubbock County), and,
on August 19, 1977, entered a judgement which, among other things, validated and confirmed the
$2,720,000 Bonds, and granted a permanent injunction against the initiation by any person of
any action or proceeding contesting the validity of these bonds.
The trial court's judgement was appealed to the Court of Civil Appeals for the 7th Supreme
Judicial District of Texas, which, by opinion dated April 24, 1978, upheld the decision of the
trial court in all particulars. No appeal from the Court of Civil Appeals was made and the
judgement of the Court of Civil Appeals is now final.
The judgement of the Court of Civil Appeals grants the City the right to revise and rearrange
the original details of the Bonds in compliance with applicable law. The City has, accordingly,
reduced the amount of bonds offered from $2,720,000 to $2,420,000, and has adjusted the date of
the bonds, maturity schedule, and other details.
4
1
VALUATION AND DEBT INFORMATION
January 1, 1977, Appraised Value of Property Included in
1977 Taxable Assessed Valuation (Source: Tax Assessor -
Collector, City of Lubbock) $1,847,513,183
1977 Taxable Assessed Valuation (60% of 1-1-77 Appraisal
Value) (See Notes 1, 2 and 3) $1,108,507,910
City Funded Debt Payable from Ad Valorem Taxes (As of
5-31-78) (See Notes 4 and 5)
General Purpose Bonds (including $1,520,000 of this issue) $34,615,381
Waterworks Bonds (includng $400,000 of this issue) 4,608,260
Sewer System Bonds (including $500,000 of this issue) 2,839,599
Electric Light Bonds 121,760
TOTAL FUNDED DEBT S 42,185,000
Interest and Sinking Fund (As of 5-31-78) S 906,911
Ratio Total Funded Debt to 1-1-77 Appraised Value ------------------------------------ 2.28%
Ratio Total Funded Debt to 1977 Taxable Assessed Valuation --------------------------- 3.81%
1978 Estimated Population - 175,250*
Per Capita Taxable Assessed Valuation - $6,325.30
Per Capita Total Debt - $240.71
Area - 86.87 Square Miles
* Source: City of Lubbock, Texas.
Note 1: (a) The Tax Assessor -Collector of the City of Lubbock certified the City's 1977 tax
roll on September 19, 1977, at $1,108,507,910. As of May 31, 1978, an additional $13,484,619
has been added to a 1977 Supplemental Roll representing 9 pieces of property that were under
litigation at the time the roll was certified. (b) On May 31, 1978, 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 1977 Supplemental Roll on these
properties will be no less than $7,307,310, which is the total of the last uncontested assessed
values on these properties. (c) No adjustment has been made for duplications and errors.
Note 2: Pursuant,to authority permitted by Section 1-b, Article VIII of the State Consti-
tution, which became effective January 1, 1973, the City, beginning in 1974, has granted an
exemption of $3.000 of assessed valuation to the residence homestead of property owners over 65
years of age. The 1977 Taxable Assessed Valuation does not include $14,159,830 assessed
valuation of properties exempted under this authority at the time the 1977 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 $16,000,000 for
1977.
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 1977,
Taxable Assessed Valuation does not include $1,646,220 assessed valuation of properties
exempted under this authority at the time the 1977 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 $2,500,000 for 1977.
Note 4: The above statement of indebtedness does not include the following presently out-
standing Revenue Bonds, as they are payable solely from the net revenues derived from the
Systems: $1,980,000 Waterworks System Revenue Bonds and $18,620,000 Electric Light and Power
System Revenue Bonds. The statement also does not include the following: $3,105,000 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.
4e
OTHER LIABILITIES
On September 1, 1976, the City purchased the land and buildings, owned by Auto Realty Company,
Inc., located immediately north of City Hall. For many years previously, this property was the
site of a Ford.Motor Company dealership. Included in the purchase were 81,250 square feet of
land and six buildings of various sizes totaling 52,614 square feet. A part of the property is
being used as a City Hall Annex and the balance is being converted to a Transit System
maintenance and storage facility.
Total purchase price was $389,820.00. Prior to purchase, the City obtained various appraisals
of the property which varied from a high of $1,432,095 to a low of $362,860. Of the $389,820
purchase price, the City paid $40,000 in cash at the time of closing and executed its note for
$349,820 for the balance. This note is classified as part of the City's General Long -Term Debt
and is payable from the General Fund. The outstanding balance on 9-30-77 was $334,306 which
matures in 13 equal annual installments of $40,000 each, September 1, 1978 through September 1,
1990, with interest calculated at 7%.
Fiscal
Year
Ending
9-30
—1-977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
NOTE AMORTIZATION SCHEDULE
Principal Interest Total
$ 16,598.40
17,760.80
19,003.60
20,334.00
21,757.20
23,280.40
24,910.00
26,653.60
28,519.60
30,515.60
32,652.00
34,937.60
37,383.20
$334,306:00
$ 23,401.60
22,239.20
20,996.40
19,666.00
18,242.80
16,719.60
15,090.00
13,346.40
11,480.40
9,484.40
7,348.00
5,062.40
2,616.80
$185,694.00
$ 40,000.00
40,000.00
40,000.00
40,000.00
40,000.00
40,000.00
40,000.00
40,000.00
40,000.00
40,000.00
40,000.00
40,000.00
40,000.00
$520,000.00
Outstanding
Balance
334,306.00
317,707.60
299,946.80
280,943.20
260,609.20
238,852.00
215,571.60
190,661.60
164,008.00
135,488.40
104,972.80
72,320.80
37,383.20
-0-
In order to provide for a majority of each annual installment on the note, the City Council
directed the investment of $399,324.00 of General Fund surplus cash in $384,000.00 par value of
U. S. Treasury Bonds, the interest earnings on these bonds to be applied to the annual
$40,000.00 installment on the note. Annual interest earnings on the bonds 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
Ending
Assessed
9-30
Valuation(l)
966-67
542,866,836(2)
1967-68
566,985,373(2)
1968-69
585,496,301(2)
1969-70
601,789,533(2)
1970-71
617,204,605(2)
1971-72
630,151,893(2)
1972-73
659,742,523(2)
1973-74
716,225,294(2)
1974-75
797,387,868(2)
1975-76
923,557,647(2)
1976-77
1,014,049,149(2)
1977-78
1,108,507,910
Funded Debt Out-
standin , Year End
27,130,000
29,007,000
30,098,000
30,862,000
35,344,000
44,459,000
47,266,000
53,440,000
50,546,000
47,763,000
43,682,000
Ratio Funded Debt
to Taxable
Assessed Valuation
5.00%
5.12%
5.14%
5.13%
5.73%
7.06%
7.16%
7.46%
6.34%
5.17%
4.38%
(1) For all years Taxable Assessed Valuations are net of any exemptions. Basis of assessment
for all years was 60% of appraised values.
-6-
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 1977-78. 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 1976-77 have been adjusted
for supplements and corrections to the tax rolls made subsequent to certification of the rolls.
1977 ASSESSED VALUATION - CLASSIFIED (1)
1977
Taxable
Assessed
Valuation
Real Estate:
(Residential and business land
and buildings) $ 761,704,740
Personal Property:
Business Personal
Mobile Homes
Boats
Oil Properties
Automobiles
% of
Taxable
Assessed
Valuation
68.72%
249,294,820
22.49%
1,761,205
0.16%
789,970
0.07%
44,590
0.00%
94,912,585
8.56%
�3 6, T,-M
$1,108,507,910
100.00%
(1) No adjustment for supplements and corrections has been made; however, please see Note 1,
"Valuation and Debt Information", which is applicable. The 1977 Taxable Assessed Valuation is
net after $14,159,830 "Over 65" Homestead Exemptions and $1,646,220 Disabled Veteran
Exemptions. Please see Note 3, "Taxable Assessed Valuation by Category".
TAXABLE ASSESSED VALUATION BY CATEGORY
Property
Assessment
-As % of
(1)
Appraised
Real
Year
Value
Estate
IW
���'—
T 4T,7/u
1967
60%
453,438,430
1968
60%
463,942,570
1969
60%
471,312,510
1970
60%
474,769,040
1971
60%
480,135,900
1972
60%
494,016,482
1973
60%
527,814,930
1974
60%
583,951,000
1975
60%
650,705,600
1976
60%
705,954,020
1977
60%
761,704,740
Notes:
Adjustments
(2)
For
(3)
Personal
Corrections
Taxable
Personal
Property:
And
Assessed
Property
Automobile
Supplements
Valuation
$91,727,950
98,651,910
$15,76 ,7W
15,992,300
(1,097,267)
$-342,866,.
566,985,373
106,344,440
15,825,400
( 616,109)
585,496,301
114,993,940
16,352,800
( 869,717)
601,789,533
124,971,050
17,501,800
( 37,285)
617,204,605
134,524,140
16.722,500
(1,230,647)
630,151,893
147,500,760
18,501,264
( 275,983)
659,742,523
158,183,100
28,166,355
2,060,909
716,225,294
179,961,580
37,971,470
(4,496,182)
797,387,868
189,955,610
51,291,080
31,605,357
923,557,647
223,968,871
68,042,430
16,083,828
1,014,049,149
251,890,585
94,912,585
1,108,507,910
(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 construc-
tion and development (see "Economic Indices"), a portion of the increase in these values stems
from this reappraisal program.
(Notes - Continued)
- 7 -
(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 other personal -property
so that comparatively few automobiles are included in Personal Property; and
3. A reappraisal program for automobile values was fully implemented`duing the years
1973 through 1976.
(3) Taxable Assessed Valuations for 1974-1977 are net after the following exemptions:
"Over 65" Disabled
Homestead Veteran
Year Exemptions Exemptions
I974 T-11,395,000 Not Effective
1975 13,323,150 Not Effective
1976 11,888,760 $ 1,307,240
1977 14,159,830* 1,646,220*
* As of 10-1-77. The Tax Assessor -Collector estimates that an additional $1,840,000 in "Over
65" and an additional $850,000 "Disabled Veteran" exemptions will finally be claimed during the
current tax year. Please see Notes 2 and 3, "Valuation and Debt Information".
ESTIMATED TAXABLE ASSESSED VALUATIONS (1)
(2)
Estimated
Taxable
Fiscal Assessed
Period Valuation
978-79 ,263,000,00
1979-80 1,389,000,000
1980-81 1,507,000,000
1981-82 1,628,000,000
1982-83 1,791,000,000
Notes:
(1) Source: Mr. John R. 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
aW terworks System
5-21-77
16,775,000
T -0-
T 4-00,000
16,375,000
Sewer System
5-21-77
3,303,000
-0-
500,000
2,803,000
Street Improvements
5-21-77
4,782,000
-0-
1,050,000
3,732,000
Storm Sewer and Drainage
11- 9-67
1,950,000
1,715,000
-0-
235,000
Storm Sewer and Drainage
5-21-77
473,000
-0-
100,000
373,000
Fire Station
5-21-77
792,000
-0-
370,000
422,000
Fire Station (for adjacent
areas, when annexed)
5-21-77
310,000
-0-
-0-
310,000
28,385,000
,715,000
2,420,000
24,250,000
ESTIMATED GENERAL OBLIGATION
BOND PROGRAM
Antic pa' 1� Issuance
1979
1980
1981
1982
Total
Waterworks System
66,,143,000
$6,280,000
$3,952,000
-0-
16,375,000
Sewer System
1,290,000
1,393,000
120,000
-0-
2,803,000
Street Improvements
1,528,000
750,000
1,454,000
-0-
3,732,000
Storm Sewer and Drainage
137,000
175,000
61,000
235,000
608,000
Fire Station
422,000
-0-
-0-
-0-
422,000
Fire Station (for adjacent
areas, when annexed)
-0-
9,520,0 0
310 000
T8,6M,6KG
-0-
$5,587POOO
-0-
$235,000
310 000
24,250:000
- 8 -
ESTIMATED OVERLAPPING FUNDED DEBT PAYABLE FROM AD VALOREM TAXES
Estimated
Total
%
Overlapping
Taxing Jurisdiction
Funded Debt
Applicable
Funded Debt
City of Lubbock
42,185,000
100.00%
$42,185,000
Lubbock Independent School District
10,895,000
99.25%
10,813,288
Lubbock County
-0-
80.00%
-0-
Lubbock County Hospital. District
2,305,000
80.00%
1,844,000
Lubbock County Water Control and
Improvement District No. 1
-0-
80.00%
-0-
Lubbock-Cooper Independent School District
1,564,000
3.17%
49,579
Frenship Independent School District
1,184,261
14.00%
165,796
Roosevelt Independent School District
740,000
0.09%
666
Idalou Independent School District
764,000
0.01%
76
TOTAL OVERLAPPING FUNDED DEBT
$55,058,405
Ratio Overlapping Funded Debt to 1977 Taxable Assessed
Valuation ---------------------
4.97%
Per Capita Overlapping Funded
Debt-.$314.17
TAX DATA
(Year ndT_n 9-30)
Distribution
(1)
Tax Tax General Board of City Interest and
(1)
% Current,
% Total
Year Rate Fund Development Sinking Fund
Tax Levy
Collections
Collections
1966-67 $1.18 -Tb.6T $0.05 $0.50
S 6,405,829
93.82%
97.86%
1967-68 1.18 0.61 0.05 0.52
6,690,427
94.25%
97.83%
1968-69 1.08 0.51 0.05 0.52
6,323,360
94.27%
97.40%
1969-70 1.08 0.49 0.05 0.54
6,499,327
93.76%
97.43%
1970-71 1.08 0.43 0.05 0.60
6,665,810
93.90%
97.82%
1971-72 1.14 0.37 0.05 0.72
7,183,732
94.06%
97.92%
1972-73 1.29 0.36 0.05 0.88
8,510,678
93.72%
96.41%
1973-74 1.36 0.46 0.05 0.85
9,740,664
93.18%
96.39%
1974-75 1.36 0.54 0.05 0.77
10,844,475
93.16%
97.26%
1975-76 1.36 0.70 0.05 0.61
12,560,384
93.43%
97.19%
1976-77 1.41 0.75 0.05 0.61
14,298,093
93.09%
97.09%
1977-78 - 1.41 0.86 0.05 0.50
15,630,013
91.32%*
92.81%*
* Collections for part year only, through 5-31-78.
(1) "Tax Levy" and "Percent Current Collections" for
Tax Years 1966-67
through
1976-77 have
been adjusted to reflect final corrections and supplements to the tax rolls as audited at the
end of each fiscal year.
Property within the City is assessed as of January 1 of
each year; taxes
become due
October 1 of
the same year, and become delinquent on January 31 of
the following
year. Split
payments are
not permitted. Discounts are not allowed.
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.
- 9 -
1% MUNICIPAL SALES TAX
rfective 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 City
Tax Levy
Tax Rate
Per Capita*
1968
990,000**
--
--
--
1969
2,421,055
38.29%
$0.414
$16.24
1970
2,596,398
39.95%
0.431
17.41
1971
2,964,736
44.48%
0.480
19.88
1972
3,086,164
42.96%
0.490
20.19
1973
3,780,338
44.42%
0.573
23.72
1974
4,537,048
46.58%
0.634
26.52
1975
4,763,912
43.93%
0.597
27.84
1976
5,690,591
45.31%
0.616
32.52
1977
5,957,492
41.67%
0.588
33.47
* Based on 1970 U. S. Census for 1969 through 1971, and on estimated population for 1972
through 1977.
** Collections for one quarter only.
Name of Taxpayer
3-outhwestern Bell Telephone Company
Texas Instruments Incorporated
Southwestern Public Service Company
First National Bank
Lubbock National Bank
American State Bank
Pioneer Natural Gas Company, a sub-
sidiary of Pioneer Corporation
Clark Equipment Company
Texas Commerce Bank, National Associa-
tion, a subsidiary of Texas
Commerce Bancshares, Inc.
International Business Machines (IBM)
TOP TEN TAXPAYERS
1977 % of 1977
Taxable
Taxable
Assessed
Assessed
Nature of Property
Valuation
Valuation
Telephone --Utility
66,728,070
2—.4-9-
Electronic Manufacturing
17,990,040
1.62%
Electric Utility
15,231,130
1.38%
Bank
12,922,150
1.17%
Bank
10,131,010
.91%
Bank
8,056,770
.73%
Gas Utility
6,434,300
.58%
Earth Hauling Equipment
5,957,800
.54%
Bank
5,008,730
.45%
Computer Equipment
4 459 190
.40%
112,919,190
10.19%
INTEREST AND SINKING FUND MANAGEMENT INDEX
General Obligation Debt Service Requirements for Fiscal Year Ending 9-30-78 ----- $5,845,698
Interest and Sinking Fund, All General Obligation Issues, 9-30-77 -- $ 460,422
1977 Interest and Sinking Fund Tax Levy @ 95% Collection ----------- 5,265,413
Estimated Income from Other Sources, as Budgeted ------------------- 727,137 6,452,972
Estimated Surplus--------------------------------------------------------------- $ 607,274
- 10 -
DEBT SERVICE REQUIREMENTS
GENERAL OBLIGATION BOND
Fiscal
Grand Total
Less:
Less:
Less:
Grand Total
Year
General Obli-
Waterworks
Electric
Sewer System
General Pur-
% of
Ending
Outstanding Bonds
The Bonds
gation Bond
Tax Bond
Tax Bond
Tax Bond
pose Bond
Principal'
9-30
Principal
Interest
Total
Interest
Total
Requirements
Requirements
Requirements
Requirements
Requirements
Retired
-918
3,995,000
$ 1,850,698
5,845,698
_Principal
5,845,698
810072
42,171
457,502
4,535,653
1979
3,721,000
1,679,856
5,400,856
$ 120,000
$ 135,700
$ 255,700
5,656,556
728,658
42,114
465,910
4,419,874
1980
3,670,000
1,521,668
5,191,668
120,000
128,800
248,800
5,440,468
693,468
42,033
447,141
4,257,826
1981
3,456,000-
1,372,315
4,828,315
120,000
121,900
241,900
5,070,215
661,937
42,233
411,751
3,954,294
1982
3,040,000
1,254,758
4,294,758
120,000
115,000
235,000
4,529,758
539,417
327,682
3,662,659
39.83%
1983
2,930,000
1,106,098
4,036,098
120,000
108,100
228,100
4,264,198
484,832
287,928
3,491,438
1984
2,930.,000
980,193
3,910,193
120,000
101,200
221,200
4,131,393
469,815
277,906
3,383,672
1985
2,780,000
854,920
3,634,920
120,000
94,300
214,300
3,849,220
405,441
243,218
3,200,561
1986
2,695,000
731,495
3,426,495
120,000
87,400
207,400
3,633,895
351,587
220,093
3,062,215
1987
2,545,000
610,440
3,155,440
120,000
80,500
200,500
3,355,940
281,687
211,045
2,863,208
71.24%
1988
2,420,000
492,742
2,912,742
120,000
73,600
193,600
3,106,342
238,163
180,812
2,687,367
1989
2,230,000
380,050
2,610,050.
120,000
66,700
186,700
2,796,750
189,870
173,368
2,433,512
1990
2,070,000
284,021
2,354,021
120,000
59,800
179,800
2,533,821
182,186
134,052
2,217,583
1991
1,920,000
195,345
2,115,345
120,000
52,900
172,900
2,288,245
175,073
60,553
2,052,619
1992
1,570,000
122,878
1,692,878
120,000
46,000
166,000
1,858,878
159,853
34,296
1',664,729
94.69%
1993
970,000
64,505
1,034,505
120,000
39,100
159,100
1,193,605
89,523
32,870
1,071,212
1994
580,000
25,220
605,220
120,000
32,200
152,200
757,420
44,890
31,445
681,085
1995
80,000
8,480
88,480
125,000
25,156
150,156
238,636
24,821
31,022
182,793
1996
80,000
4,240
84,240
125,000
17,969
142,969
227,209
23,633
29,537
174,039
1997
125,000
10,781
135,781
135,781
22,445
28,052
85,284
99.73%
1998
125,000
3,594
128,594
128,594
21,257
26,568
80,769
100.00%
$43,682,000
$13,539,922
$57,221,922
$2,420,000
$1,400,700
$3,820,700
$ 61,042,622
$6,598,928
$168,551
$4,112,751
$ 50,162,392
Note: Interest on the Bonds has been calculated at the rate of 5 3J4% for purposes of illustration.
TAX ADEQUACY
All General Obligation Bonds_(including the Bonds)
Maximum Principal and Interest Requirments, 1979 tafter issuance of the Bonds) ---------------------------- $5,656,556
$0.54 Tax Rate @ 95% Collection Produces (Based on 1977 Taxable Assessed Valuation) ----------------------- $5,686,646
COMPUTATION OF SELF-SUPPORTING DEBT it
(2)
(3)
Electric Light
Waterworks
Sewer
and Power
System
System
System
Net System Revenue Available for Fiscal Year
Ending 9-30-77
$1,032,940
$743,193
$5,827,306
Less: Revenue Bond Requirements, 1976-77
Fiscal Year
594,610
-0-
2,297,068
Balance Available for Other Purposes
System General Obligation Bond Requirements,
1976-77 Fiscal Year
Balance
Percentage of System General Obligation Bonds
Self -Supporting
$ 438,330 $743,193 $3,530,238
878,015 497,103 73,643
$ (439,685) $246,090 $3,456,595
49.92% 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.
(2) tffective October 1, 1977, water rates were increased. The City anticipates that gross
income from water sales will increase approximately 15% as a result of this rate increase. The
rate ordinance also provides that, unless otherwise amended, rates will increase 10% each
October 1, 1978 through 1980.
(3) Effective October 1, 1977, sewer service rates were increased approximately 15%; the rate
ordinance also provides that a further increase will take place on October 1, 1978.
PENSION FUNDS
Texas Municipal Retirement System ... All permanent, full-time City employees who are not
firemen and who were less than 50 years of age when employed by the City are covered by the
Texas Municipal Retirement System. The System is a contributory, annuity -purchase type plan
which is covered by a State statute and is administered by six trustees appointed by the
Governor of Texas. The System operates independently of its member cities.
The City of Lubbock joined the System in 1950 to supplement Social Security. Options offered
under the System, and adopted by the City, include current, prior and antecedent service
credits, 20 year vesting, updated service credit, and regular and supplemental disability
benefits. An employee who retires receives an annuity based on the amount of the employee's
contributions over -matched two for one by the City. Employee contribution rate is 5% of gross
salary. The City's contribution rate is calculated each year using actuarial techniques
applied to experience; the 1979 contribution rate is 6.54% of payroll. Enabling statutes
prohibit any member city from adopting options which impose liabilities that cannot be
amortized over 25 years within a specified statutory rate.
The actuarially computed unfunded prior service liability as of December 31, 1977, was
$5,120,169. 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, 1977, were $10,854,310 ($1,106,779 for
prior service liabilities and $9,747,531 for accrued current service liabilities). Unfunded
accrued current service liabilities totaled $203,583, and are being liquidated by a five year
amortization adjustment included in normal contribution rates.
Fireman's Relief and Retirement Fund ... City of Lubbock firemen are members of the locally
administered Lubbock Firemen's Relief and Retirement Fund, operating under an act passed in
1937 by the State Legislature and adopted by City firemen, by vote of the department, in 1941.
Firemen are not covered by Social Security.
The fund is governed by seven trustees, three firemen, two outside trustees (one appointed by
the firemen trustees and one appointed by the Mayor), the Mayor or his representative and the
Director of Finance of the City. Execution of the act is monitored by the Firemen's Pension
- Commissioner, who is appointed by the Governor.
12
Benefits of retired firemen are determined on a "formula" or a "final salary" plan. Actuarial
reviews are performed every three years, and the fund is audited annually. Firemen contribute
9% of full salary into the fund and the City must contribute a like amount; however, the City
contributes on a basis of the percentage of salary which is a ratio adjusted annually that bears
the same relationship to the firemen's contribution rate that the City's rate paid into the
Texas Municipal Retirement System and FICA bears to the rate other employees pay into the Texas
Municipal Retirement System and FICA. The City's 1978 contribution rate is 10.09%.
An actuarial evaluation was completed in December, 1977, by the firm of Rudd and, Wisdom, Inc.,
Austin, Texas. A revised benefit plan was subsequently adopted, and the valuation balance
sheet estimated unfunded liabilities of $2,918,966. The study concluded that the plan is
actuarially sound by maintaining a funding program which would completely amortize this
unfunded liability in approximately 20 years. Actual contributions at the current rate from
firemen and the City will amortize this unfunded liability in approximately 20 years, and pay
projected current service accumulation benefits.
LUBBOCK POWER AND LIGHT
Lubbock Power and Light was established in 1916, and is presently the largest municipal system
in the West Texas region and the third largest in the State of Texas. The municipal system
competes directly with a privately owned utility company within the corporate limits of the
City of Lubbock. Electric rates in the City are set by City Council Ordinance and are the same
for both power systems.
The private system, Southwestern Public Service Company, was granted a new 20-year franchise in
1964, which is subject to certain minor amendments each five year period thereafter. The
company pays the City a franchise tax of 2% of its gross receipts. At present, Southwestern
Public Service supplies power to approximately 50% of the customers in Lubbock.
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.
Generating Stations ... Total generating capacity is 233,150 KW. Gas turbines and I.C.
generators provide the system with 64,650 KW of ready reserve and quick -start generation for
emergency and peaking service. Generating units consist of the following:
Generator
Year
Capacity
Manufacturer
Installed
Station
Prime Mover
Fuel
in KW
Nordberg
1930
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
11,500
Westinghouse
1957
2
Steam Turbine
Gas
or Oil
22,000
Westinghouse
1958
2
Steam Turbine
Gas
or Oil
22,000
Westinghouse
1964
Holly
Gas Turbine
Gas
or Oil
12,500
General Electric.
1965
Holly
Steam Turbine
Gas
or Oil
44,000
General Electric
1978
Holly
Steam Turbine
Qas
or Oil
_50,000
233,150
Transmission and Distribution ... A 69,000 volt (69 KV) transmission loop system, 36 miles in
ength, provides bulk power to seven 20 MVA-69,000/12470 volt -substations. A second 69 KV
transmission loop system insulated for operation at 138 KV has been constructed and is
energized.
The distribution system includes approximately 600 miles of overhead distribution lines and
approximately 50 miles of underground distribution lines. There are thirteen 12,470/4160 volt
substations in the distribution system. Net system load for Fiscal Year Ending September 30,
1977 was 606,578,940 KWH with a peak demand of 125,500 KW.
- 13 -
Interconnection The Federal Power Commission has made a study of the feasibility of
nte� rconnecting 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 provide an alternative to construction of additional generating capacity in the
future.
Negotiations concerning an interconnection are presently in progress with Southwestern Public
Service Company. Southwestern operates in Lubbock under a franchise and serves an area
covering the Panhandle and South Plains of Texas and parts of Eastern New Mexico with an
integrated electric generating and distribution system.
Fuel Supply . Primary fuel supply is natural gas which is supplied by Pioneer Natural Gas
ompany, a division of Pioneer Corporation, Amarillo, Texas, under a long term contract.
Secondary fuel in the form of fuel oil is maintained in storage in the City.
Due to transmission system limitations, some brief curtailments of natural gas supply by
Pioneer have been experienced in the past few years, and Pioneer indicates that some 50% to 70%
short duration (48 hours or less) curtailments, during peak gas usage periods, may be
experienced in the future. No curtailments in excess of 70% are projected by Pioneer, nor will
total annual curtailment exceed 5% of annual volume.
The City's present storage capacity of fuel oil, for standby, secondary fuel, is over 3,750,000
gallons; June; 1978 inventory was 1,591,312 gallons.
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
50,000 KW steam -turbo generator 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.
CONDENSED STATEMENT OF OPERATIONS
ELECTRIC LIGHT AND POWER SYSTEM
Fiscal Year Ended
9-30-77
9-30-76
9-30-75
9-30-74
9-30-73
Income
0, 9,844
$16,712,303
Trl—,8-8-7-,IT4-
9,440,E 0
7,427,044
Expense
14,292,538
11,455,620
8,508,578
5,744,751
4,057,290
Net Revenue Available
for Debt Service
$ 5,827,306
$ 5,256,683
$ 3,378,566
$3,695,859
$3,369,754
Electric Connections
28,352
26,969
25,900
25,001
24,383
Note: Rate increase
effective 9-1-75.
Maximum Principal and Interest Requirements, Electric System
Revenue Bonds, Fiscal Year Ending 9-30-78------------------------------------ $ 2,460,618
Coverage by Net Income, F;scal Year Ended 9-30-77------------------------------ 2.37 Times
Electric Light and Power System Revenue Bonds Outstanding, 5-31-78------------- $18,620,000
Interest and Sinking Fund, Cash and Investments, 5-31-78----------------------- $ 1,087,464
Reserve Fund, Cash and Investments, 5-31-78------------------------------------ $ 1,298,773
- 14 -
THE WATERWORKS SYSTEM
WatSupply . Primary source of water for Lubbock is the Canadian River Municipal Water
ut ority which delivers water from its Lake Meredith reservoir, located on the Canadian River
about 30 miles north of Amarillo, to member cities through an underground aqueduct system.
Lubbock is one of eleven member cities of the Authority; other members are Amarillo, Pampa,
Borger, Plainview, Slaton, Levelland, Brownfield, Tahoka, O'Donnell and Lamesa. Lubbock
received 25.962 acre feet of water from the Authority in Calendar Year 1977, approximately 75%
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 37.058% of the available annual supply - 38,200 acre feet when yield reaches 103,000
acre feet. Cost of the Project is being repaid to the Bureau of Reclamation by the Authority
through a reimbursable loan maturing annually through 2018; debt requirements are paid from
revenues received by the Authority from sale of water to member cities. Member cities make
payments for water received from water revenues.
Other Water Supply Sources ... Part of the City's water supply is obtained from 209 water wells,
all producing from the Ogallala Formation, which underlies the High Plains of Texas. Combined
capacity of these wells is 44,000,000 gallons per day. Primary underground supply wells are
located in the "Sand Hills" tract area about 60 miles northwest of Lubbock in Lamb and Bailey
Counties, in which the City owns approximately 75,000 acres of water rights. 13,700 acres have
been developed with 92 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
ong term water supply sources. Freese and Nichols, Consulting Engineers, Fort Worth, Texas,
are conducting this investigation for the City, and have recommended consideration of a site on
the North Fork of the Double Mountain Fork of the Brazos River (the "Post Site") and a site on
the South Fork of the Double Mountain Fork of the Brazos River (the "Justiceburg Site"), about
35 and 50 miles southeast of Lubbock respectively, for the development of additional surface
supplies. Freese and Nichols are nearing completion of their investigation of stream -flow at
the Justiceburg Site, and it is anticipated, will make a final feasibility report to the City
within the next 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 implement 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.
The System ... Lubbock's Waterworks System is modern and efficient and .was valued at
3 ,350,6I6, after depreciation and including cost of construction work in progress, at
September 30, 1977. 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 32.2 million gallons in 1977.
Storage capacity consists of 13 ground storage reservoirs and 3 elevated steel storage tanks,
providing a total storage capacity of 49,350,000 gallons. Storage capacity is entirely
adequate for peak hour and fire protection requirements.
Water Treatment Facilities . A water treatment plant for the treatment of water purchased
from the Canadian River Municipal Authority was completed in 1967. Capacity of the plant is 56
MGD with a future capability of 70 MGD, when expanded. Maximum daily input is presently 42 MGD.
The plant also treats water for several other members of the Authority; the City of Lubbock is
fully reimbursed for these costs.
Waterworks Revenue Bonds ... There are no authorized but unissued Waterworks Revenue Bonds.
- 15 -
Fiscal Year Ended
Income
Expense*
Net Revenue Available
for Debt Service
Number of Customers
CONDENSED STATEMENT OF OPERATIONS
WATERWORKS SYSTEM
9-30-77 9-30-76 9-30-75 9-30-74 9-30-73
5,293,162 $5,271,396 $5,090,779 $5,571,387 $4,878,751
4,260,222 3,801,437 3,498,878 2,898,963 2,585,492
$1,032,940 $1,469,959 $1,591,901 $2,672,424 $2,293,259
50,442 48,777 47,526 46,468 45,508
* 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 9-30-78---------------------------------------------------- $ 579,200
Coverage Based on Net Income, Fiscal Year Ended 9-30-77------------------------- 1.78 Times
Waterworks System Revenue Bonds Outstanding, 5-31-78---------------------------- $1,980,000
Interest and Sinking Fund, 5-31-78---------------------------------------------- $1,813,825
Reserve Fund, Cash and Investments, 5-31-78------------------------------------- $ 800,000
INCREASE IN WATER RATES
Effective October 1, 1977, water rates were increased. The City estimates that gross income
from water sales will increase approximately 15% as a result of this rate increase. The rate
ordinance also provides that, unless otherwise amended, rates will increase 10% each October 1,
1978 through 1980.
Although Sewer System revenues are not pledged to Waterworks System Revenue. Bonds, sewer rates
were also increased on October 1, 1977, by approximately the same percentage as water rates; the
rate ordinance also provides that a further increase will take place on October 1, 1978.
AIRPORT SYSTEM
The City has owned and operated its airport since 1929, with scheduled airline service
beginning in 1946. Lubbock Regional Airport is -located six miles north of the central business
district and has an area of over 2,437 acres, of which approximately 1,500 acres is used for
farming and clear zones.
Scheduled Airline Service . Scheduled airline transportation is furnished by Braniff
International, Continental Airlines, Texas International Airlines, and Southwest Airlines with
35 scheduled flights per day; all flights are by jet aircraft. Non-stop service is provided to
Dallas -Fort Worth Regional Airport, Dallas Love Field, Houston, El Paso, Austin, Amarillo,
Midland -Odessa, and other cities. There are also two feeder airlines. 1977 passenger
enplanements, including feeder airlines, totaled 369,323, up from 253,510 in 1976. Air cargo
enplaned totaled 4,634,846 pounds in 1977.
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. Parking space at the terminal is being
expanded through construction of a new 2-level parking building. 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 - 11,500' x 150', north/south, primary runway with high intensity lighting and a FAA -operated
instrument system and other navigational aids;
1 - 8,500' 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.
- 16 -
r
Gerwr•ai Aviation Facilities ... A building designed for the use of private aviation is located
on t?& 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 two fixed base operators who provide hangars, aprons, fuel and other services
for private aviation. 100 T-Hangars house most of the approximately 200 private aircraft that
are based at the airport.
Warehouses and Land Rentals ... The airport has five 16,000 square foot warehouses and six other
warehouses for storage space rental.
CONDENSED STATEMENT OF OPERATIONS
ATRPO T S M
Fiscal Year Ended 9-30-77 9-30-76 9-30-75 9-30-74 9-30-73
ncome* ,653,58 $1 ,266,359 $1,335,111 $1,376,480 $874,903
Expense 1,183,938 1,004,674 712,007 597,656 419,727
Net Income $ 469,643 $ 261,685 $ 623,104 $ 778,824 $455,176
* Gross income includes interest revenue in each year as follows: 9-30-73, $244,051; 9-30-74,
$619,065; 9-30-75, $498,084; 9-30-76, $211,405; 9-30-77, $185,865.
Maximum Principal and Interest Requirements, Airport Revenue Bonds,
Fiscal Year Ending 9-30-79 (secured by Gross Income from System) -------------- $ 384,131
Coverage Based on Gross Income, Fiscal Year Ended 9-30-77----------------------- 4.30 Times
Airport Revenue Bonds Outstanding, 5-31-78-------------------------------------- $3,105,000
Interest and Sinking Fund, 5-31-78---------------------------------------------- $ 246,511
Reserve Fund, Cash and Investments, 5-31-78------------------------------------- $ 300,000
- 17 -
GENERAL INFORMATION REGARDING THE CITY AND ITS ECONOMY
0 The City of Lubbock, County Seat of Lubbock County, Texas, is located on the South Plains of
West Texas. Lubbock is the economic, educational, cultural and medical center of this area.
POPULATION ...
0 Lubbock is the eighth largest City in Texas:
City of Lubbock
(Corporate Limits)
1910 Census 1,938
1920 Census 4,051
1930 Census 20,520
1940 Census 31,853
1950 Census 71,390
1960 Census 128,691
1970 Census 149,101
1978 (Estimated) 175,250*
* Source: City of Lubbock, Texas
Standard Metropolitan Area (Lubbock County)
1970 Census 179,295
1976 (Estimated) 199,600*
1978 (Estimated) Over 200,000
* Source: U. S. Bureau of the Census
AGRICULTURE
0 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.
0 The Texas Department of Agriculture and the Statistical Reporting Service, U. S. Department
of Agriculture, in 1976 Texas County Statistics, report as follows:
0 Lubbock County's 1976 cotton production was 195,300 bales, and 1976 grain sorghum production
was 5,363,500 bushels.
6 On January 1, 1977, there were 80,000 head of cattle located on farms or in feed lots in
Lubbock County. 122,000 cattle were marketed from feed lots during 1976.
0 Lubbock County Cash Receipts from farm marketings, 1973/76, were:
1973 1974 1975 1976*
All Crops 79,583,000 6 , 78,000 $56,260,000 78,613,000
Livestock and Products 34,442,000 31,473,000 31,275,000 26,233,000
U. S. Government Payments _13,_807,000 4,133,000 4,615,000 _ 2,796,000
Total Cash Receipts $127,832,000 $96,784.000 $92,150,000 $107,642,000
* Preliminary - subject to revision.
0 1976 cotton production in a 23 county (including Lubbock County) area surrounding Lubbock
was 1,805,750 bales; 1976 grain sorghum production in this same area was 71,015,000 bushels;
and 1976 cash receipts from farm marketings were $1,416,418,000.
0 Three major vegetable oil plants located in Lubbock have a combined weekly capacity of over
2,400 tons of cottonseed and soybean oil.
0 Five major seed companies are headquartered in Lubbock.
- 18 -
BUSINESS AND INDUSTRY ...
Lubbock SMSA Labor Force Estimates
(Source: Texas Employment omission)
May
April
March
May
April
March
1978*
1978**
1978**
1977**
1977**
1977**
Civilian Labor Force
101,050
100,610
100,070
95,810
95,320
94,400
Total Employment
97,740
97,800
96,490
93,270
92,170
90,800
Unemployment
3,310
2,810
3,580
2,540
3,150
3,600
Percent Unemployed
3.3%
2.8%
3.6%
2.7%
3.3%
3.8%
* Preliminary.
** Revised.
1 The Texas Employment Commission reported in June, 1978,• that May, 1978, nonagricultural
employment in the Lubbock area totaled 84,960, up from 81,100 in May, 1977; of this total an
estimated 12,960 were employed in manufacturing, up from 11,570 in May, 1977.
1 Over 200 manufacturing plants in Lubbock produce such products as consumer products utiliz-
ing semi -conductor elements, vegetable oils, heavy earth -moving machinery, irrigation equip-
ment and pipe, farm equipment, electronic instruments, clothing, paperboard boxes, foodstuffs,
mobile and prefabricated homes, poultry and livestock feeds, boilers and pressure vessels and
automatic sprinkler system heads.
1 Some larger industries in Lubbock (with more than 100 employees) are:
Company
Texas Instruments, Inc.
Johnson Manufacturing Company (Division 'of
Eagle-Picher Industries)
Litton Data Systems, Guidance and Control
Systems Division, Litton Industries, Inc.
Plains Co-op Oil Mill
Levi Strauss & Company
Paymaste4. Oil Mill Company (Division of
Anderson, Clayton and Company)
Lubbock Avalanche -Journal Southwestern
Newspaper Corporation
Gifford -Hill and Company, Inc.
Clark Equipment Company (Hancock
Division)
Coca-Cola Bottling Company
Lubbock Manufacturing Company
Lubbock Cotton Oil Company
Goulds Pumps, Inc.
Devro Inc. (Subsidiary of Johnson and
Johnson)
Farm Pac Kitchens
Bell Dairy Products, Inc.
Grinnell Fire Protection Systems Company
(Subsidiary of Tyco Laboratories)
Frito-Lay, Inc. (Subsidiary of
Pepsico, Inc.)
Mrs. Baird's Bakeries
Rainbo Baking Company, Subdivision of
Campbell -Taggart Associated Bakeries, Inc.
Estimated
Employees
Product
1-1-78*
Consdmer Products with Semi -Conductor
3,500
Elements
Heavy Earth -Moving Machinery and
600
Farm Equipment
Navigational Equipment; Electronic
400
Computer Systems
Vegetable Oil Products, Cottonseed
350
Products
Men's Slacks, Women's Slacks
250
Vegetable Oil Products
250
Newspaper 200
Concrete Pipe; Agricultural Irrigation
200
Systems; Aluminum and Plastic Irri-
gation Pipe
Heavy Road and Earth -Moving
200
Machinery
Soft Drinks
180
Pressure Vessels
175
Cottonseed Oil and Other Cottonseed
170
Products, Soybean Oil
Vertical Turbine Pumps
170
Sausage Casings and Tannery
160
Meat Processing
140
Dairy Products
135
Automatic Sprinkler Heads
130
Potato and Corn Chips 125
Bread Products 120
Bread Products 100
* Source: Lubbock Chamber of Commerce.
- 19 -
I Texas Instruments, Inc., world leading developer and producer of semi -conductors and other
electronic products, commenced manufacturing operations in Lubbock in April, 1973. The company
employs over 3,000 in the manufacture of consumer products utilizing semi -conductor elements,
and the servicing of these products. Texas Instruments has moved most of its consumer products
operations to Lubbock.
0 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.
0 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.
0 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 & Marketing Management, Survey of Buying Power, reports Lubbock SMSA 1976 Retail Sales as
$688,664,000.
0 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
Deposits
1966
335,400,787
1967
359,745,173
1968
388,630,275
1969
412,459,082
1970
477,247,184
1971
527,314,293
EDUCATION ... TEXAS TECH UNIVERSITY ...
Year End Deposits
1972
$ 596,697,439
1973
723,327,701
1974
793,915,466
1975
878,164,171
1976
1,013,973,289
1977
1,104,602,863
0 Established in Lubbock in 1925, Texas Tech University is the third largest State-owned
University in Texas and had a Spring, 1978 enrollment of 20,280. Accredited by the Southern
Association of Colleges and Schools, the University is a co-educational, State -supported
institution with 46 academic departments offering the bachelor's degree in 96 major fields, the
master's degree in 66 major fields, the doctorate degree in 26 major fields, and the pro-
fessional degree in 2 major fields (law and medicine).
0 The University proper is situated on 451 acres of the 1,766 acre campus, and has 92 permanent
and 73 temporary buildings with additional construction in progress. 1977-78 faculty member-
ship is 1,410, and other full-time employees total 2,426, including 88 administrators. Not
including the Medical School, which is operated separately, the University's operating budget
for 1977-78 is over $75 million of which $49 million is from State appropriations; book value of
physical plant assets is $276 million.
0 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 122 for the Fall Semester, 1977.
OTHER EDUCATION INFORMATION ...
0 The Lubbock Independent School District, with an area of 87 square miles, includes over 95%
of the City of Lubbock. The District had a scholastic membership of 31,163 for the 1977-78
School Year, and there were 1,993 faculty and professional personnel and 1,279 other employees.
The District operates 5 senior high schools, 10 junior high schools, 37 elementary schools and
other educational programs.
- 20 -
SCHOLASTIC MEMBERSHIP HISTORY Q
Scholastic
Refined Average
School Year
Membership
Daily Attendance
966-67
32,630
32,063
1967-68
32,451
31,667
1968-69
32,501
31,358
1969-70
32,401
31,322
1970-71
32,648
31,477
1971-72
32,660
31,355
1972-73
32,063
30,716
1973-74
32,499
30,477
1974-75
32,209
30,255
1975-76
31,733
29,936
1976-77
31,502
29,683
1977-78
31,163
29,554
(1) Source: Superintendent's Office, Lubbock Independent School District.
0 Lubbock Christian College, a privately owned, co-educational senior college located in
Lubbock, has an enrollment of 1,077 academic students and 502 other students (Spring Semester,
1978), and offers 19 bachelor degree programs.
0 The State of Texas School for the Mentally Retarded, located on a 220 acre site in•Lubbock,
now consists of 35 buildings, constructed and equipped at a cost in excess of $7 million, with
accommodations for 552 students. The School's operating budget for 1977/78 is in excess of $7.5
million. The School is operating at 100% capacity, and has over 700 professional and other
employees.
TRANSPORTATION ...
0 Scheduled airline transportation is furnished by Braniff International, Continental Air-
lines, Texas International and Southwest Airlines, with 35 scheduled flights daily at Lubbock
International Airport. Two feeder airlines also furnish service. Non-stop service is provided
to Dallas -Fort Worth Regional Airport, Dallas Love Field, Houston, Amarillo, Austin, E1 Paso,
Midland -Odessa, and other cities. One -stop service to most major points is provided. 1977
passenger boardings totaled 369,323. Extensive private aviation services are located at the
airport. A new terminal building became operational in April, 1976.
0 Rail transportation is furnished by the Atchison, Topeka and Santa Fe Railway Company and
the Burlington -Northern, Inc., with through service to Dallas, Houston, Kansas City, Chicago,
Los Angeles, and San Francisco. Texas, New Mexico and Oklahoma Bus Lines, home office in
Lubbock, operates some 35 arrivals and departures daily. Headquarters for T.I.M.E.-DC, Inc., a
transcontinental motor carrier, are located in Lubbock, and 11 common carriers provide service.
0 Lubbock has a well developed highway network including 4 U. S. Highways, 1 State Highway, a
controlled -access outer loop and a county -wide system of paved farm -to -market roads. The U. S.
Department of Transportation is extending the Interstate Highway System to Lubbock through
construction of a 125 mile interstate highway (Interstate Highway 27) linking Lubbock to
Interstate 40 at Amarillo; first stage construction north of Lubbock is in progress.
GOVERNMENT AND MILITARY ...
0 Reese Air Force Base, located 5 miles west of Lubbock, is an undergraduate Jet Pilot Training
Base of the Air Training Command. The Base covers 2,862 acres and has over 2,500 military and
civilian personnel.
0 State of Texas ... More than 25 State of Texas departments, agencies and commissions have
offices in Lubbock; several of these offices have multiple divisions.
0 Federal Government ... 10 Federal departments, a Federal District Court, and various other
administration divisions have offices in Lubbock; several departmental offices have more than
one division.
- 21 -
HOSPITALS AND MEDICAL CARE
0 There are eight hospitals with a total of over 1,350 beds in the City, Methodist Hospital,
the largest, has 610 beds, and also operates an accredited nursing school. St. Mary of the
Plains Hospital has 173 beds plus additional ancillary facilities; University Hospital, Inc., a
subsidiary of Hospital Corporation of America, has a 109-bed hospital; West Texas Hospital has
a 125-bed hospital. Lubbock County Hospital District, created in 1967 with boundaries
contiguous with Lubbock County has completed and opened its 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.
0 Gas - Pioneer Natural Gas Company, a subsidiary of Pioneer Corporation.
0 Electric - City of Lubbock and Southwestern Public Service Company.
0 Telephone - Southwestern Bell Telephone Company.
MEDIA ...
0 Newspapers - 1 daily (morning and evening on weekdays); others bi-weekly or weekly.
0 Television - 3 network channels; 1 educational public service channel.
0 Radio - 8 AM stations;, 5 FM stations.
- 22 -
ECONOMIC INDICES Q
Lubbock
County
Bank
Building
Utility
Connections
Postal Motor
Vehicle
Year
Deposits
Permits Water
Gas
Electric
Telephone
Receipts Registrations
TRU
331,612,219 46,404,313 41, IF6
43,93
-47,937
90,8 2
3,008,178
7,126
1966
335,400,787
61,680,634 42,067
42,440
48,508
93,558
3,143,875
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
45,168
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
878,164,171
114,823,400 47,817
47,671
52,451
149,906
6,662,348
158,615
1976
1,013,973,289
91,904,380 49,933
48,809
56,008(2)
158,497
8,027,363
163,358
1977
1,104,602,863
131,951,646 50,825
50,062
60,077
172,966
10,778,787
172,966
Notes: (1) All data as
of 12-31, except Postal
Receipts
which are as
of 6-30 for 1966-76 and as of
12-31 for
1977.
(2) Electric connections include those of a privately
owned
utility
company. 12-31-76 electric
connections
reflect institution of
metering
of individual
apartment
units.
BUILDING PERMITS
BY CLASSIFICATION
Source: City of Lu oc , Texas
Residential
Permits
Commercial,
Single
Family
Duplexes
Apartments
Total Residential
Public
Total
No. Permits
No. Dwelling
and Other
Building
Year No. Units
Value (Units) Value No. Units
Value
Units
Value
Permits
Permits
TT6T -
1968 486
$10,44tl;2f - 56fII
11,117,825 11(
$I-,i ,2 b -
22) 228,000 210
956,000
1,461,800
742
718 12,807,625
30,991,904
S'30,467,949
43,799,529
1969 427
10,077,800 36(
72) 754,000
52
364,000
551
11,195,800
18,568,662
29,764,462
1970 485
10,942,391 15(
30) 429,700
633
5,966,400
1,148
17,338,491
22,697,277
40,035,768
1971 864
20,782,556 67(134) 2,297,700
894
10,079,491
1,892
33,159,747
36,049,611
69,209,358
1972 852
22,667,238 75(150) 3,008,650
1,171
11,315,898
2,173
36,991,786
27,286,253
64,278,039
1973 815
22,702,186 52(104) 2,317,050
949
9,121,400
1,868
34,140,636
44,704,143
78,844,779
1974 893
29,446,897 34(
68) 1,440,500
773
7,315,500
1,734
38,202,897
80,515,356
118,718,253
1975 1,002
37,766,603 23(
46) 1,165,450
734
5,592,000
1,782
44,524,053
70,299,347
114,823,400
1976 1,164
44,220,463 48(
96) 2,723,150
712
6,908,000
1,972
53,851,613
38,052,767
91,904,380
1977 1,713
72,055,014 72(144) 4,011,400
1,654
22,571,000
3,511
98,637,414
33,314,232
131,951,646
1978* 815
38,496,650 45(
90) 2,915,050
170
1,965,000
1,075
43,376,700
20,702,538
64,079,238
* Part year only, for period 1-1-78 through 6-30-78.
Note: (1) Data shown under "No. Units" is for each individual apartment dwelling unit, and is not for separate buildings.
RATINGS
Applications for contract ratings on this issue have been made to Moody's Investors Service,
Inc. and Standard & Poor's Corporation. An explanation of the significance of such ratings may
be obtained from the company furnishing the rating. The ratings reflect only the respective
views of such organizations and the City makes no representation as to the appropriateness of
the ratings. There is no assurance that such ratings will continue for any given period of time
or that they will not be revised downward or withdrawn entirely by either or both of such rating
companies, if in the judgment of either or both companies, circumstances so warrant. Any such
downward revision or withdrawal of such ratings, or either of them, may have an adverse effect
on the market price of the Bonds.
TAX EXEMPTION
The delivery of the Bonds is subject to an opinion of Messrs. Dumas, Huguenin, Boothman and
Morrow, Bond Counsel to the City ("Bond Counsel"), to the effect that interest on the Bonds is
exempt from all present Federal income taxes under existing statutes, rulings, regulations and
court decisions. The laws, regulations, court decisions and administrative regulations and
rulings upon which the conclusion stated in Bond Counsel's opinion will be based are subject to
change by the Congress, the Treasury Department and later judicial and administrative
decisions.
REGISTRATION AND QUALIFICATION OF BONDS FOR SALE
The sale of the Bonds has not been registered under the Federal Securities Act of 1933, as
amended, in reliance upon the exemption provided thereunder by Section 3(a) (2); and the Bonds
have not been qualified under the Securities Act of Texas in reliance upon various exemptions
contained therein; nor have the Bonds been qualified under the securities acts of any
jurisdiction. The City assumes no responsibility for qualification of the Bonds under the
securities laws of any jurisdiction in which the Bonds may be sold, assigned, pledged,
hypothecated or otherwise transferred. This disclaimer of responsibility for qualification for
sale or other disposition of the Bonds shall not be construed as an interpretation of any kind
with regard to the availability of any exemption from securities registration provisions.
LEGAL INVESTMENTS IN TEXAS
The Bonds are legal investments for sinking funds of Texas counties, cities and towns. They are
eligible to secure Texas state, county, city and school district funds and constitute legal
investments for insurance companies in the State of Texas. No review has been made of the laws
of states other than Texas to determine whether the Bonds are legal investments for various
institutions in those states.
LEGAL OPINIONS AND NO -LITIGATION CERTIFICATE
The City will furnish a complete transcript of proceedings had incident to the authorization
and issuance of the Bonds, including the unqualified approving legal opinion of the Attorney
General of the State of Texas, to the effect that the Bonds are valid and legally binding
obligations of the City, and based upon examination of such transcript of proceedings, the
unqualified approving legal opinion of Bond Counsel, to like effect and to the effect that the
interest on the Bonds is exempt from Federal income taxation under existing statutes,
regulations, rulings and court decisions. The customary closing papers, including a certifi-
cate 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
The financial data and other information contained herein have been obtained from the City's
records, audited financial statements and other sources which are believed to be reliable.
There is no guarantee that any of the assumptions or estimates contained herein will be
realized. All of the summaries of the statutes, documents and resolutions contained in this
Official Statement are made subject to all of the provisions of such statutes, documents and
resolutions. These summaries do not purport to be complete statements of such provisions and
reference is made to such documents for further information. Reference is made to original
documents in all respects.
POTENTIAL TAX LEGISLATION
On July 10, 1978, the Texas Legislature was convened in Special Session to consider enacting
legislation and proposing constitutional amendments to be voted on by the electorate of the
State which, among other things, may impose limitations upon spending and taxation by the State
of Texas and its political subdivisions, including the City. It is anticipated that a number of
bills will be introduced in the Special Session and the City is unable to predict the form,
content or effect, if any, on the City's finances, of any legislation or proposed constitu-
tional amendments which may result.
CERTIFICATION OF THE OFFICIAL STATEMENT
At the time of payment for and delivery of the Bonds, the Purchaser will be furnished a
certificate, executed by proper officers, acting in their official capacity, to the effect that
to the best of their knowledge and belief: (a) the descriptions and statements of or
pertaining to the City contained in its Official Statement, and any addenda, supplement or
amendment thereto, on the date of such Official Statement, on the date of sale of said Bonds and
the acceptance of the best bid therefor, and on the date of the delivery, were and are true and
correct in all material respects; (b) insofar as the City and its affairs, including its
financial affairs, are concerned, such Official Statement did not and does not contain an
untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading; (c) insofar as the descriptions and statements,
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 Council as of the date of the sale of the Bonds which will
approve the form and content of this Official Statement, and any addenda, supplement or
amendment thereto, and authorize its further use in the reoffering of the Bonds by the
Purchaser.
ATTEST:
EVELYN E. GAFFGA
City Secretary
!W*1E
DIRK WEST
Mayor
y
APPENDIX
The information contained in this Appendix has been reproduced
from the City of Lubbock, Texas Annual Audit Report for the
Fiscal Year Ended September 30, 1977. The information
presented represents only a part of the Annual Audit Report and
dogs 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.