HomeMy WebLinkAboutOrdinance - 9805-1995 - General Obligation Bond, Tax And Hotel Occupancy, Airport Surplus Revenue - 04/27/1995..
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TRANSCRIPT OF PROCEEDINGS
RELATING TO
$4,690,000 ( th-rL=+t q7!)5) hJ-
CITY OF LUBBOCK, TEXAS
GENERAL OBLIGATION BONDS
SERIES 1995
$2,ooo,ooo ( Ori_-=~t (j~ D~) 4
CITY OF LUBBOCK, TEXAS
TAX AND HOTEL OCCUPANCY TAX
SURPLUS REVENUE
CERTIFICATES OF OBLIGATION
SERIES 1995
$9oo,ooo ( tkrl.:=fl-Cf2fB) 1-ur
CITY OF LUBBOCK, TEXAS
TAX AND AIRPORT SURPLUS REVENUE
CERTIFICATES OF OBLIGATION
SERIES 1995
DATED May 15, 1995
DELIVERED: JUNE 15, 1995
Fulbrigqt & Jaworski L.L.P.
2200 Ross Avenue, Suite 2800
Dallas, Texas 75201
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TELEPHONE: 214/855·8000 P'ACSIM ILE: 21-4/855-8200
MARK S. WESTERGARD
PARTNER
DIRECT DIAL! 214/855-8002
Mr. Mark Hindman
City of Lubbock
1625 13th Street
Lubbock, Texas 79401
FULBRIGHT & JAWORSKI
L.L.P.
A REGISTERED LIMITED LIABILITY PARTNERSHIP
2200 ROSS AVENUE
SUITE 2800
DALLAS, TEXAS 75201
August 30, 1995
HOUSTON
WASHINGTON, D.C.
AUSTIN
SAN ANTONIO
DALLAS
NEW YORK
LOS ANGELES
LONDON
HONG KONG
Re: $4,690,000 "City of Lubbock, Texas, General Obligation Bonds, Series
1995'', $2,000,000 "City of Lubbock, Texas, Tax and Hotel Occupancy Tax
Surplus Revenue Certificates of Obligation, Series 1995'' and $900,000
11City of Lubbock, Texas, Tax and Airport Surplus Revenue Certificates of
Obligation, Series 1995''
Dear Mark:
Enclosed herewith please find a copy of the Transcript of Proceedings
prepared in connection with the captioned issues. We trust everything was handled to
your satisfaction and look forward to working with you again in the future.
Please call if you have any questions.
MSW:da
Enclosure
Dl92439.pl
Very truly yours,
/f11~
Mark S. Westergard
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DOCUMENT
NUMBER
1.
TRANSCRIPT OF PROCEEDINGS
RELATING TO
$4,690,000
CnY OF WBBOCK, TEXAS
GENERAL OBUGATION BONDS
SERIES 1995
$2,000,000
CnY OF LUBBOCK, TEXAS
TAX AND HOTEL OCCUPANCY TAX
SUAPWS REVENUE CERTIFICATES OF OBUGATION
SERIES 1995
$900,000
CnY OF LUBBOCK, TEXAS
TAX AND AIRPORT SURPLUS REVENUE
CEATIACATES OF OBUGATION
SERIES 1995
DATED MAY 15, 1995
TABLE OF CONTENTS
DOCUMENT NAME
Certified copy of the Resolution Authorizing Notice of Intention to Issue
Certificates of Obligation
2. Affidavit of Publication relating to Notice of Intention ·to Issue Hotel
Certificates of Obligation
3. Affidavit of Publication relating to Notice of Intention to Issue Airport
Certificates of Obligation
4. Affidavit of Publication relating to Notice of Sale of General Obligation
Bonds
5. Affidavit of Publication relating to Notice of Sale of Hotel Certificates of
Obligation
6. Affidavit of Publication relating to Notice of Sale of Airport Certificates of
Obligation
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DOCUMENT
NUMBEB DOCUMENT NAME
7. Certified copy of Redemption Resolution
8. Certified copy of the Ordinance authorizing the $4,690,000 City of Lubbock,
Texas, General Obligation Bonds, Series 1995
9. Certified copy of the Ordinance authorizing the $2,000,000 City of Lubbock,
Texas, Tax and Hotel Occupancy Tax Surplus Revenue Certificates of
Obligation, Series 1995
10. Certified copy of the Ordinance authorizing the $900,000 City of Lubbock,
Texas, Tax and Airport Surplus Revenue Certificates of Obligation, Series
1995
11. Paying Agent/Registrar Agreement relating to the General Obligation Bonds
12. Paying Agent/Registrar Agreement relating to the Hotel Certificates of
Obligation
13. Paying Agent/Registrar Agreement relating to the Airport Certificates of
Obligation
14. General Certificate
15. Signature and No-Litigation Certificate
16. Winning Bid Form relating to General Obligation Bonds
17. Winning Bid Form relating to Hotel Certificates of Obligation
18. Winning Bid Form relating to Airport Certificates of Obligation
19. Certificate as to Official Statement
20. Official Statement relating to General Obligation Bonds and Hotel
Certificates of Obligation
21. Official Statement relating to Airport Certificates of Obligation
22. Instruction Letters
23. Attorney General's Opinion and Comptroller's Registration Certificate
relating to General Obligation Bonds
2
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DOCUMENT
NUMBER DOCUMENT NAME
24. Attorney General's Opinion and Comptroller's Registration Certificate
relating to Airport Certificates of Obligation
25. Attorney General's Opinion and Comptroller's Registration Certificate
relating to Hotel Certificates of Obligation
26. Certificate as to Tax Exemption relating to General Obligation Bonds and
""" Hotel Certificates of Obligation
27. Certificate as to Tax Exemption relating to Airport Certificates of Obligation
28. Receipt for Payment relating to General Obligation Bonds
29. Receipt for Payment relating to Hotel Certificates of Obligation
30. Receipt for Payment relating to Airport Certificates of Obligation
31. Issue Price Certificates
32. Opinion of Bond Counsel for General Obligation Bonds
33. Opinion of Bond Counsel for Hotel Certificates of Obligation
34. Opinion of Bond· Counsel for Airport Certificates of Obligation
35. Insurance Policy with Opinion of Counsel
36 . Letters of Representations relating to all three issues. respectively
...
37. 8038-G and 8038 Information Reports
3
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CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
s s s
§ s
I, the undersigned, City Secretary of the City of Lubbock,
Texas, DO HEREBY CERTIFY as follows:
1. That on the 23rd day of March, 1995, a regular
meeting of the City Council of the City of Lubbock, Texas, was
held at a meeting place within the City; the duly constituted
members of the Council being as follows:
DAVID R. LANGSTON
RANDY NEUGEBAUER
VICTOR HERNANDEZ
T.J. PATTERSON
MAX INCE
ALEX "TY" COOKE
WINDY SITTON
)
)
)
)
)
)
)
MAYOR
MAYOR PRO TEM AND COUNCILMEMBER
COUNCILMEMBERS
and all of said persons were present at said meeting, except the
following: None Absent • Among other business
considered at said meeting, the attached resolution entitled:
A RESOLUTION by the City Council of the City of
Lubbock,Texas, approving and authorizing publication of
notices of intention to issue certificates of
obligation, notices of sale with respect to such
certificates of obligation and with respect to general
obligation bonds, and a notice of public hearing.
was introduced and submitted to the Council for passage and
adoption. After presentation and due consideration of the
resolution, and upon a motion being made by Windy Sitton
and seconded by T.J. Patterson , the
resolution was finally·passed and adopted by the Council to be
effective immediately by the following vote:
__ 1_ voted "For" 0 voted "Against" __ o_ abstained
all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
•
951128JD253123
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2. That the attached resolution is a true and correct
copy of the original on file in the official records of the City;
the duly qualified and acting members of the city Council of said
City on the date of the aforesaid meeting are those persons shown
above and, according to the records of my office, advance notice
of the time, place and purpose of the meeting was given to each
member of the Council; and that said meeting and the deliberation
of the aforesaid public business was open to the public and
written notice of said meeting, including the subject of the above
entitled resolution, was posted and given in advance thereof in
compliance with the provisions of V.T.C.A., Government Code,
Chapter 551.
IN WITNESS WHEREOF, I have hereunto signed my name
officially and affixed the seal of said City, this the 23rd day of
March, 1995.
City of Lubbock, Texas
(City Seal)
951128/0253123 -2-
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A RESOLUTION by the City Council of the City of Lubbock,
Texas, approving and authorizing publication of
notices of intention to issue certificates of
obligation, notices of sale with respect to such
certificates of obligation and with respect to
general obligation bonds, and a notice of public
hearing.
WHEREAS, the City Council of the City of Lubbock, Texas, has
determined that certificates of obligation should be issued in
accordance with the provisions of V.T.C.A., Local Government Code,
Subchapter C of Chapter 271, for the purpose of paying contractual
obligations to be incurred for (i) civic Center improvements and
(ii) professional services rendered in connection therewith; and
WHEREAS, the City Council of the City of Lubbock, Texas, has
determined that certificates of obligation should be issued in
accordance with the provisions of V.T.C.A., Local Government Code,
Subchapter c of Chapter 271, for the purpose of paying contractual
obligations to be incurred for (i) apron improvements at the
freight development area at the City's airport and (ii)
professional services rendered in connection therewith; and
WHEREAS, the City Council of the City of Lubbock, Texas, has
determined that general obligation bonds should be issued in
accordance with the provisions of general law and the city's
charter for the purpose of paying contractual obligations to be
incurred for library facilities improvements, park improvements,
fire department emergency traffic control system, and costs of
issuing such bonds; and
WHEREAS, prior to the issuance of said certificates of
obligation, this Council is required to give notice of its
intention to issue the same in the manner and time provided by law
and deems it appropriate to publish a notice of sale with respect
to such bonds and certificates in accordance with the procedure set
forth in the City's charter; now, therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK,
TEXAS:
Section 1: That the City Secretary is hereby authorized and
directed to cause notice to be published of this Council's
intention to issue certificates of obligation in the principal
amount not to exceed $2,000,000 for the purpose of paying
contractual obligations to be incurred for (i) Civic Center
improvements and (ii) professional services rendered in connection
therewith, such certificates to be payable from ad valorem taxes
and a pledge of the surplus revenues of the City's hotel occupancy
tax. The notice hereby approved and authorized to be given shall
read substantially in the form and content of Exhibit A hereto
100831JD235990
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attached and incorporated herein by reference as a part of this
resolution for all purposes.
Section 2: That the City Secretary is hereby authorized and
directed to cause notice to be published of this council's
intention to issue certificates of obligation in the principal
amount not to exceed $900,000 for the purpose of paying contractual
obligations to be incurred for (i) apron improvements at the
freight development area at the City's airport and (ii)
professional services rendered in connection therewith, such
certificates to be payable from ad valorem taxes and a lien on and
a pledge of the surplus revenues of the City's Airport. The notice
hereby approved and authorized to be given shall read substantially
in the form and content of Exhibit B hereto attached and
incorporated herein by reference as a part of this resolution for
all purposes.
Section 3: That each such notice of intention to issue
certificates of obligation shall be published once a week for two
consecutive weeks in a newspaper having general circulation in the
City of Lubbock, Texas, the date of the first publication of such
notice to be at least fifteen (15) days prior to the date stated
therein for the passage of the ordinance authorizing the issuance
of the certificates of obligation.
Section 4: That the City Secretary is hereby authorized and
directed to cause a notice of sale to be published relating to the
sale of certificates of obligation and general obligation bonds.
The notice of sale hereby approved and authorized to be published
shall read substantially in the form and content of Exhibits c, D,
and E hereto attached and incorporated herein by reference as a
part of this resolution for all purposes.
Section 5: That the City Secretary is hereby authorized and
directed to cause the notices of sale approved in Section 4, above,
to be published once each week for a period of thirty days.
Section 6: That the City Secretary is hereby authorized and
directed to cause a notice of public hearing relating to the
certificates of obligation to be issued for airport purposes
(described in Section 2, above) to be published relating to the
public hearing to be held prior to the sale of such certificates.
The notice of public hearing hereby approved and authorized to be
published shall read substantially in the form and content of
Exhibit F hereto attached and incorporated herein by reference as
a part of this resolution for all purposes.
Section 7: That the City Secretary is hereby authorized and
directed to cause the notice of public hearing approved in Section
6, above, to be published once, with the date of publication to be
at least fourteen days prior to the date stated therein as the date
of the public hearing.
100831/0235990 -2-
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PASSED AND APPROVED, th s
ATTEST:
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(SEAL)
100831/0235990 -3-
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Exhibit A
NOTICE OF INTENTION TO ISSUE CITY OF
LUBBOCK, TEXAS, CERTIFICATES OF OBLIGATION
TAKE NOTICE that the City Council of the City of Lubbock,
Texas, shall convene at 10:00 o'clock A.M. on the 11th day of May,
1995, at 1625 13th Street, Lubbock, Texas, and, during such
meeting, the City Council will consider the passage of an ordinance
authorizing the issuance of certificates of obligation in an amount
not to exceed $2, 000, 000 for the purpose of paying contractual
obligations to be incurred for (i) Civic Center improvements and
(ii) professional services rendered in connection therewith, such
certificates to be payable from ad valorem taxes and a pledge of
the surplus revenues of the City's hotel occupancy tax. The
certificates are to be issued, and this notice is given, under and
pursuant to the provisions of V.T.C.A., Local Government Code,
SUbchapter c of Chapter 271. ))L ~~
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City of Lubbock, Texas
10083110235990 -4-
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Exhibit B
NOTICE OF INTENTION TO ISSUE CITY OF
LQBBOCK, TEXAS, CERTIFICATES OF OBLIGATION
TAKE NOTICE that the City Council of the City of Lubbock,
Texas, shall convene at 10:00 o'clock A.M. on the 11th day of May,
1995, at 1625 13th Street, Lubbock, Texas, and, during such
meeting, the City Council will consider the passage of an ordinance
authorizing the issuance of certificates of obligation in an amount
not to exceed $900, ooo for the purpose of paying contractual
obligations to be incurred for (i) apron improvements at the
freight development area at the City's airport and (ii)
professional services rendered in connection therewith, such
certificates to be payable from ad valorem taxes and a lien on and
a pledge of the surplus revenues of the City's Airport. The
certificates are to be issued, and this notice is given, under and
pursuant to the provisions of V.T.C.A., Local Government Code,
Subchapter C of Chapter 271.
City of Lubbock, Texas
100831/1)235990 -5-
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Exhibit C
NOTICE OF SALE
CITY OF LUBBOCK, TEXAS
The City Council of the City of Lubbock, Texas, will receive
sealed bids at the City Council Chambers, Municipal Complex, 1625
13th Street, Lubbock, Texas, until 11:00 A.M., May 11, 1995, for
the following described certificates of Obligation:
$2.000.000 City of Lubbock. Texas
Tax and Hotel Occupancy Tax
surplus Revenue Certificates of Obligation, Series 1995
Dated May 15, 1995; principal due February 15 of each
year as follows: 1996, $265,000; 1997, $310,000; 1998,
$330,000; 1999, $345,000; 2000, $365,000; and 2001,
$385,000; interest payable February 15, 1996, and each
August 15 and February 15 thereafter.
Further information may be obtained from the Division of
Finance, City of Lubbock, P.o. Box 2000, Lubbock, Texas 79457; or
from First southwest company, 1700 Pacific Avenue, Suite 500,
Dallas, Texas 75201, Financial consultants to the City.
ccity stia1)
100831JD235990 -6-
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Exhibit D
NOTICE OF SALE
CITY OF LUBBOCK. TEXAS
The City council of the City of Lubbock, Texas, will receive
sealed bids at the City Council Chambers, Municipal Complex, 1625
13th Street, Lubbock, Texas, until 11:00 A.M., May 11, 1995, for
the followinq described Certificates of Obliqation:
$900.000 City of Lubbock, Texas
Tax and Airport surplus
Revenue Certificates of Obligation. Series 1995
Dated May 15, 1995; principal due February 15 of each
year as follows: 1996, $150,000; 1997, $170,000; 1998,
$180,000; 1999, $195,000; and 2000, $205,000; interest
payable February 15, 1996, and each Auqust 15 and
February 15 thereafter.
Further information may be obtained from the Division of
Finance, city of Lubbock, P.o. Box 2000, Lubbock, Texas 79457; or
from First Southwest Company, 1700 Pacific Avenue, suite 500,
Dallas, Texas 75201, Financial Consultants to the City.
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City of Lubbock, Texas
(City Seal)
100831/0235990 -7-
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Exhibit E
NOTICE OF SALE
CITY OF LUBBOCK. TEXAS
The city council of the City of Lubbock, Texas, will receive
sealed bids at the City Council Chambers, Municipal complex, 1625
13th Street, Lubbock, Texas, until 11:00 A.M., May 11, 1995, for
the followinq described Bonds:
$4.690,000 City of Lubbock. Texas
General Obligation Bonds,
Series 1995
Dated May 15,. 1995; principal due February 15 of each
year as follows: 1996 and 1997, $230,000 each year; and
1998 throuqh and includinq 2015, $235,000 each year;
interest payable February 15, 1996 and each Auqust 15 and
February 15 thereafter. The City reserves the riqht, at
its option, to redeem Bonds maturinq on and· after
February 15, 2006, on February 15, 2005, or any date
thereafter, at the par value thereof plus accrued
interest to the date fixed for payment.
Further information may be obtained from the Division of
Finance, City of Lubbock, P.O. Box 2000, Lubbock, Texas 79457; or
from First southwest Company, 1700 Pacific Avenue, suite 500,
Dallas, Texas 75201, Financial Consultants to the City.
~cAt~
City of Lubbock, Texas
<city seai>
100831/0235990 -a-
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Exhibit F
PUBLIC NOTICE
NOTICE IS HEREBY GIVEN that the City of Lubbock, Texas
(the "City") will hold a public hearinq on April 24, 1995,
commencinq at 8:30 o'clock A.M. in the City Council Chambers, City
Hall, located at 1625 13th Street, Lubbock, Texas, to provide an
opportunity for all interested persons to be heard with respect to
the proposed issuance and sale in 1995 of the City's Tax and
Airport surplus Revenue Certificates of Obliqation in one or more
series in an aqqreqate principal amount not to exceed $900,000 (the
"Certificates").
The proceeds of the Certificates will be utilized by the
City for the purpose of payinq contractual obliqations to be
incurred for (i) apron improvements at the freiqht development area
at the City's airport and (ii) professional services rendered in
connection therewith, as provided and limited by the Internal
Revenue Code of 1986, as amended, and Subchapter C of Chapter 271
of the Texas Local Government Code, as amended. The improvements
to be constructed with the proceeds of the Certificates will be
owned by the City and will be located at the City's existinq City
Airport. The Certificates would be payable from ad valorem taxes
and a lien on and a pledqe of the surplus revenues of the City's
Airport.
All interested persons are invited to attend the hearinq
to express their views with respect to the issuance of the
Certificates. In lieu of attendance at the meetinq, written
comments may be submitted to the City addressed to the undersiqned:
10083110235990
CITY OF LUBBOCK, TEXAS
1625 13th Street
Lubbock, Texas 79401
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THE STATE OF TEXAS
COUNTYQ~
Beforem.~~~~~~~~~~--~~rt---?r
personally appeare of the Southwestern Newspa-
pers Corporation, publishers of the Lubbock Avalanche-Journal -Morning, and Sunday, who being by me duly
sworn did depose and say that said newspaper 1;1 b n published continuously for more than fifty-two weeks pri-
or to the rrrst insertion of this_.....~-""_,· :~··F ........ -:-:t-Jo::~~-,f•-:;;C::.::;:-.-------------------------r----,,..----f---,--+~-no./ tJ'{ ·~ at Lubbock County, Texas and the attached print-
-w"-'1.!!\-l~L--.JWI..'ioooL.f--ll!l\oe!..,;:BI!!!-~r--:...:-'·~ t ofth i 'nliJ and was printed in the Lubbock
NOTARY PUBLIC in and for the State of Texas
My Commission Expires .................. ___ _
LUBB K AVALANCHE-JOURNAL
Southwestern Newspaper Corporation
Subscribed and sworn to before me thi;o..s ___ ;(_.. . .___day of. j,{._a \./
FORMS8·10
~~~~~~~~~~
PATII TATE I
Notary Pullllc. State ol lexas §
""'J __ .,.w My Commts~·?n Exptres 6-30·96 Q
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~ . NOTI¢B QF IK'tENTION ~ .. ·· TO tS$U&.CtW C)f ·
LU8BCietti TEXAS. CI!RTIFICATES OF 08LIGATI.ON.
QM~.-~~.-.MO~l
,t TAKf! Nonce ·th<rt tnll cttv rcouncll of the Cllv of J.ubboek, • r, Texo1, shall con,.ne at 10: to
II'C:IOC!k A.M. on 1116 1111) diiY of
· , 1995. of 162513111 Str"'' Lub-eck, ;rua•. and, durtne sue:!\ l
meettne. 1116 cnv cour~en will con· skier the liOSS<IOtt of on ordinance autharlzlne the IMUanee of c:ertlfl· .ca~es .of oblloatlon In on amount not to exceed s1.aoo.aoo tor tile PUr· ,11011 of poYlne can111:1dual obliiiC!• tlons to be Incurred for . Ul C Me: een~er tmpr~Wements.ond nn pro-
,: fllutonol .... ~-ftfldered In con· } nec:tlon ttoerewllh. auc:h c:ertltlcates ".!~~a::=:~~-:~;:::::
1_,1181 of 1116 CIIY'S hole!IICCUPGIICY •toM. The -'lllcata are to lie 1!1-~ ond tttll notice h elven, un· 'der and 1111nuant to the provlalons
!llf v .T .C.A., Local Go. nrnmettt :cccte. Subchapter C of Chapter 271.
'I . 11/lltiiY M. Johnson { Cltvtecreto,.
atY of Lllbbot:lt. T•aa •• :zm·
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Subscribed and sworn to before me thi.,..s __ ..,(1_.~"-..---..uday of __ U"'-""~ ....;.q_.·"-'y'~-· ______ 19 fi f>.,..
if!JICOCC:IICO'-~~
FORI\l58-10
:. TAKE NOTICE! that the City ~ouncll or the City of Lubbock, ,.un, Sholl conv•n• at 10100 ro'clock A.M. on the lith day of iMav. ms. at 1ru 13111 street, ~ t·bock, Texas, and, 11ur1n1 1uch meeting, thl CIIY Councn will con-
alder the 110-of on ordlnonce
aulhorlzlno the luuonce of certlll· cote• of oblfllatlon In on amount not to •-d 1'100.000 tor the 1111r·
-Ol IIUYinll controctuol Dbllga. ·tiona to bl Incurred for (I) OllrOI'I
lmptowmllllll ot the frtloht dt¥tl· IPITII!It 11r10 at thl Cltv'• Olrpart 4llld fll> llrOiesslonot umces ren-.llenld In connection ~with. 'IUCh :ceriHicotes to bl payoblt from oct
volorem taxeil. and o lien ond o 'llltd118 Of the .urplus rr.renuea of the Cltv'a Aln>Ort. Thl cerllti.Cotea
•re to lw IPued. and this notice II flven, under .and Purauolll to the III'OYIIIOI'II of V.T.C.A., Locol Gov-ernment Code, SubcluJJ>ter c ol ~hoPier 271. '
. 1/V ··~· .Jd,~ Cftyofl.u~~=
PATTITATE § · 'i Notary Pul.lhc. State of Texas § ~~~" My Comm1s.•'?n Expnes 6·30-96 §
601:1~~
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Before m Notar Public in and for Lubbock County, Texas on this day
personally appeare ,-of the Southwestern Newspa~
pers Corporation, publishers of the Lubbock Avalanch~Journal-Morning, and Sunday, who being by me duly
sworn did depose and say that aid newspa a been published continuously for more than flfty.two weeks pri-
or to the first insertion of this --~\B"'---1"19s-J-A'~~'=--------------------
Ctm II
LUBBOCK AVALANCHE~JOURNAL
Southwestern Newspaper Corporation
Subscribed and sworn to before me this~--L.J.z./_----"day of
FORI\l58-10
MeL{ 1996 ..
~......:>""~ ..... 4
PATI'I TATE i
Notary PuiJirc. State of Texas §
My Commrs.•·!~n Exp1res 6·30-96 §
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LUBBOCK AVALANCHE-JOURNAL
Southwestern Newspaper Corporation
SubScribed and sworn to before me thi;)..s __ _,,J.-1,._· __ ,
FORl\158·10
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NOTA Y PUBLIC in and for the State of Texas
My Commission Expires .................. ___ _
.ICIIQCIQ'~,-19,9S
~ ' PATTI TATE ~
Notary Puuhc. State of Texas ~
My Commts~·'ln Exp1res 6·30·96 ~ 6M~~~~~~~~
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NOTA PUBL in and for the State of Texas
My Com1'T'Iission Expires .................. ___ _
Subscribed and sworn to before me thi .... s _ ..... J .... l ..... __ __,day o._f _ .... Mo._·...=.;. '-'.,../------19 (j!.:J-
FORJ\158-10
IPC~ICIO~...o"'..oco-"...o"~~
PATTI TATE ~
· • Notary Puuhc. State of Texas ~ ~:;r:JiS;f-'7· My Commts~·on Exp1res 6·30-96 j
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t NCttiCfl OF st.\J!
: tiTY OF I.UIIBOCK. T~AS
! ,..... Ctty tounc:ll ... "'• Cltv of ;LIIt)IJotll, fn:n. will rec:eiYe taeoled bids ot t~e City Cou!!<:ll ~C:hombere, Munlclool Complex;
''1625 13th Street. Lubbock. Texas. hmtll ll :00 A.M., Mev 11. 1995< tor
'''the follow! !Ill described tertlflc!lfes •~.ffObllllotton: · ' ' ... mo.ooo (:ltv ol.l.llbbock. T~os ,,. . ' .
r· • "round Aitl>ort suriilus ··
, • • . RIMIM<Jt ; · · · : ' t · ' C:itrtltlcates at Obllaotl!m. '. 1; : · Serles.lttS · · '
• " Dated Mai ts, 1995; prlncl~t .• chie' February 15. of eoch not oa
. tollowe: ""· •uo.ooo; ttt7 • •. $1,0,00.; ,, •• $110.000; lt99.
$195.0001· and 2000, $205,000; Inter• est paval!le l"ebruorv 15, \ft6, ond •. 'IC!Ii.h August 15 cmcl,ftbr,uory U JJI!Irmfter. · ..• ,
Further lntarrnatlan rnoy lie ·
,, oblolftecl 1rorn the Dlv1t1011 of Fl·, " nonce, City of Lubboci<.P.O. &ox: ,,,;2000, LUbbock, Te><os 79.CS7J 11r' ,, from Firat louthwest Cornpllny, ··
''·' woo Puclflc AvenUII. Suite 100. 001· , -loa; Texos75201, Flnonclo! Cor~.su!· .~ ~nts 1o lhe Cltv. : '
CIIY Secretory
City of Lubboc~• Texas
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LUBBOCK AVA NCHE-JOURNAL
Southwestern Newspaper Corporation
NOTARY PUBLIC in and for the State of Texas
My CommisSion Expires .................. ___ _
Subscribed and sworn to before me this. -----31""'-----day of· __./.A..:;....:"""-~A.c,...Jl'-l/:__ _____ l9 qs--Q -~, ~
FORI\158-10
."
-PUBLIC NOTIC8
NOTICE IS HEREBY GIWN ----------------~I ~= .. ~';,.~l'!,:'h;:a':~li~~ ---------------------------------------
lno on April 24, 1"5• commencing
at 1:30 o'clock A.M. In the cllv
Cclunc:ll Chambera. City Hall, local·· ..r at tru 13th Stnet, Lubbock.
Texas, ta prov_ld.t an OPI'Ortvnlfy for all l11ttrested persons to be heard wllh resi'KI to the 11r01101ed lssuonce and sole In 1995 al tho Cltv•s Tax 011d AirPOrt Suralua ReY!II1ue Certificates al ObiiiiCIIIOII
In -or mont serln In on aocrre-tlate prlnc:IIIOI amount nat ta ~tx· Clled 1'100.000 Ctl!e "Certificates"),
The proc:eeds ol the Certlfl·
coles will lie utilized bv the Cllv for the PUI'I>OI" al paying controctual
obiiiiQtlons to be Incurred tar (I) apron lmProvemltfttt at the frelllhl
development area at the Cltv'• olr· 110r1 and Ull professional ilervlees rendered In connection therewith.
01 provided and limited bv the In•
temal Rtvenue Code of 1986, os
amended. and Subchapter Cal
Chapter 271 af the Ttxat Local
Gover11ment Code, 01 amended.
The lmaravemenb ta be construd· ed with the proc:eedl Of the Certlfi· ' , cotes win be owned bv the Cllv ond
· will be located at tile CIIV's exist· lno Cltv Alrpart. The Certificates would be payable !ram ad valorem
toxes ond a lien on ond a pledlllt Of the surplus n!YIInues at the City's
Airport.
An lnierested Partin arelnvll·' ed ta attend the hearlno to exi>ress thel r views with respect ta tile lou· once al the Certlflt:otes. In lle11 al ·attendance at the meeting, wrllten comments mav be aubmltll!d ta the Cllv addressee! to the undersigned:
CITY OF LUBBoc:k, TEXAS. 1625 U1lt ltretrl -t.l.lllbock. Te1111 79~01
' IJ/B.tttY M. Joh-OtY heri!OrV
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CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS §
§
COUNTY OF LUBBOCK §
§
CITY OF LUBBOCK §
I, the undersigned, City secretary of the City of Lubbock,
Texas, DO HEREBY CERTIFY as follows:
1. That on the 11th day of May, 1995, the City Council of
the City of Lubbock, Texas, convened in regular session at its
regular meeting place in the City Hall of said City; the duly
constituted members of the council being as follows:
DAVID R. LANGSTON MAYOR
RANDY NEUGEBAUER
VICTOR HERNANDEZ
T. J. PATTERSON
MAX INCE
ALEX "TY" COOKE
WINDY SITTON
all of said persons
following:
business considered
entitled:
MAYOR PRO TEM AND COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
were present at said meeting, except the
None • Among other
at said meeting, the attached resolution
A RESOLUTION providing for the redemption of certain
outstanding bonds of the City; and resolving other
matters incident and related to the redemption of
such bonds.
was introduced and submitted to the Council for passage and
adoption. After presentation and due consideration of the
resolution, and upon a motion made by Alex "Ty" Cooke and seconded
by Victor Hernandez the resolution was duly passed and adopted by
the Council to be effective immediately by the following vote:
_..:.,.7_ voted "For" _,x.O_ voted "Against 11 0 abstained
all as shown in the official Minutes of the Council for the meeting
held on the aforesaid date.
2. That the attached resolution is a true and correct copy
of the original on file in the official records of the City; the
ll:l1128/0248217
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duly qualified and acting members of the City Council of the City
on the date of the aforesaid meeting are those perons shown above
and, accordinq to the records of my office, advance notice of the
time, place and purpose of the meeting was qiven to each member of
the Council; and that said meeting, includinq the subject of the
entitled resolution, was posted and given in advance thereof in
compliance with the provisions of Chapter 551 of the Texas
Government Code.
IN WITNESS WHEREOF, I have hereunto signed my name officially
and affixed the seal of said City, this the 11th day of May, 1995.
cltYSeretary
City of Lubbock, Texas
(City Seal)-
No Text
A RESOLUTION providing for the redemption of certain
outstanding bonds of the city; and resolving other
matters incident and related to the redemption of
such bonds.
WHEREAS, pursuant to an ordinance passed and adopted by the
City Council of the City of Lubbock, Texas, the following described
bonds were duly authorized to be issued and are currently
outstanding, to wit:
those bonds described as City of Lubbock,
Texas, Airport Revenue Bonds, Series 1978, and
originally scheduled to mature on September
15, 1996 through 1998, totalling in principal
amount $ 270,000
AND WHEREAS, the above identified bonds were authorized,
issued, sold and delivered subject to the right and authority of
the City to redeem the same prior to maturity, as provided in the
authorizing resolution and in said bonds; and
WHEREAS, the City Council hereby finds and determines that
bonds of the series identified above should be redeemed prior to
their maturity on the date and in the manner hereinafter provided
and in accordance with the requirements prescribed therefor and
notice of redemption of such obligations should be approved and
authorized to be given at this time by the Council; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK,
TEXAS:
SECTION 1: The bonds of that series known as 11 City of
Lubbock, Texas, Airport Revenue Bonds, series 1978", maturing in
the years 1996 through 1998 and aggregating in principal amount
$270,000, shall be redeemed and the same are hereby called for
redemption on September 15, 1995, at the price of par and accrued
interest to the date of redemption. The City Secretary is hereby
authorized and directed to file a copy of this resolution, together
with a suggested form of notice of redemption to be filed with
bondholders, with Norwest Bank Texas, National Association,
Lubbock, Texas, in accordance with the redemption provisions
applicable to such bonds; such suggested form of notice of
redemption being attached hereto as Exhibit A and incorporated
herein by reference as a part of this resolution for all purposes.
D246436!9l!ll28
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ATTEST:·
~R~ cifYSac;r:eta
(City S~al)
1J248.c36J9.51128 -2-
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EXHIBIT A
NOTICE OF REDEMPTION
CITY OF LUBBOCK, TEXAS
AIRPORT REVENUE BONDS
SERIES 1978
NOTICE IS HEREBY GIVEN that bonds of the above series
described below and aqqreqating in principal amount $270,000 have
been called for redemption on September 15, 1995, at the redemption
price of par and accrued interest to the date of redemption, such
bonds being identified as follows:
Bond Numbers
293 to 310
311 to 328
329 to 346
Maturity Dates
1996
1997
1998
AmOUnts
$90,000
$90,000
$90,000
Interest
5.50\
5.50\
4.50\
THE ABOVE DESCRIBED BONDS shall become due and payable on
September 15, 1995, and interest thereon shall cease to accrue from
and after said,redemption date and payment of the redemption price
of said bonds shall be paid to the owners of the bonds only upon
presentation and surrender of such bonds to the principal office of
Norwest Bank Texas, National Association, Lubbock, Texas.
THIS NOTICE is issued and given pursuant to the terms and
conditions prescribed for the redemption of said bonds and pursuant
to a resolution by the City council of the City of Lubbock.
~J}~
City of Lubbock, Texas
· The undersigned authorized officer of Norwest Bank Texas,
National Association hereby certifies that this Notice of
Redemption was filed with Norwest Bank Texas, National Association,
Lubbock, Texas, on , July 26 , 1995, such date
beinq before the 30th day prior to the date fixed for redemption of
such bonds. ~ ~
·a.-;.-f!e ~.0) ES~ANK TEXAS~ASSOCIATION
Lubbock, Texas
024917~1123
as Paying Agent/Reqistrar
Address: 1500 Broadway, 4th Floor
Lubbock, Texas 79401
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CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS S s COUNTY OF LUBBOCK S s
CITY OF LUBBOCK S
I, the undersigned, City Secretary of the City of Lubbock,
Texas, DO HEREBY CERTIFY as follows:
1. That on the 27th day of ApriL, 1995, the City Council of
the City of Lubbock, Texas, convened in regular session at its
regular meeting place in the City Hall of said City; the duly
constituted members of the Council being as follows:
DAVID R. LANGSTON
RANDY NEUGEBAUER
VICTOR HERNANDEZ
T. J. PATTERSON
MAX INCE
ALEX 11 TY" COOKE
WINDY SITTON
all of said persons were
following: None
MAYOR
MAYOR PRO TEM AND COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
present at said meeting, except the
business considered at said meeting,
entitled:
• Among other
the attached ordinances
ORDINANCE NO. 9804
AN ORDINANCE authorizing the issuance of "CITY OF
LUBBOCK, TEXAS 1 TAX AND HOTEL OCCUPANCY TAX SURPLUS
REVENUE CERTIFICATES OF OBLIGATION, SERIES 199511 ;
levying an ad valorem tax upon all taxable property
in the City and providing for a limited pledge of
the Net Revenues of the City's Waterworks system
for the payment of said Certificates; prescribing
the terms and details of such Certificates and
resolving other matters incident and related to the
issuance, sale, security, payment and delivery of
said Certificates, including the approval of a
Paying Agent/Registrar Agreement and the approval
and distribution of an Official Statement
pertaining thereto; and providing an effective
date.
No Text
'
AN
ORDINANCE NO. 9805
ORDINANCE authorizing the issuance of "CITY OF
LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS,
SERIES 199511 ; specifying the terms and
features of said bonds; levying a continuing
direct annual ad valorem tax for the payment
of said bonds; and resolving other matters
incident and related to the issuance, sale,
payment and delivery of said bonds, including
the approval of a Paying Agent/Registrar
Agreement and the approval and distribution
of an Official Statement pertaining thereto;
and providing an effective date.
ORDINANCE NO. 9803
AN ORDINANCE authorizing the issuance of "CITY OF
LUBBOCK 1 TEXAS 1 TAX AND AIRPORT SURPLUS
REVENUE CERTIFICATES OF OBLIGATION, SERIES
199511 ; levying an ad valorem tax upon all
taxable property in the City and providing for
a pledge of the Surplus Revenues of the City's
Airport for the payment of said Certificates;
prescribing the terms and details of such
Certificates and resolving other matters
incident and related to the issuance, sale,
security, payment and delivery of said
Certificates, including the approval of a
Paying Agent/Registrar Agreement and the
approval and distribution of an Official
Statement pertaining thereto; and providing an
effective date.
were introduced and submitted to the Council for passage and
adoption. After presentation and due consideration of the
ordinance, and upon a motion made by T. Cooke and seconded
by M. !nee the ordinance with respect to the Tax and
Hotel Occupancy Tax Surplus Revenue Certificates of Obligation was
duly passed and adopted by the Council on first reading by the
following vote:
7 voted "For" 0 voted 11 Against" 0 abstained
After presentation and due consideration of the ordinance, and
upon a motion made by T • Cooke and seconded by W. Sitton
_____ the ordinance with respect to the General Obligation Bonds
was duly passed and adopted by the Council on first reading by the
following vote:
95112810247638 -2-
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_7 __ voted "For" __ 0 __ voted "Against" _0 __ abstained
After presentation and due consideration of the ordinance, and
upon a motion made by T. Cooke and seconded by T. Patterson
____ the ordinance with respect to the Tax and Airport Surplus
Revenue Certificates of Obligation was duly passed and adopted by
the Council on first reading by the following vote:
_7"--_voted "For" _.:.r,o __ voted "Against 11 -.::.O __ abstained
all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
2. That the attached ordinances are true and correct
copies of the originals on file in the official records of the
city; the duly qualified and acting members of the City Council
of the City on the date of the aforesaid meeting are those persons
shown above and, according to the records of my office, advance
notice of the time, place and purpose of the meeting was given to
each member of the Council; and that said meeting, including the
subjects of the entitled ordinances, was posted and given in
advance thereof in compliance with the provisions of Chapter 551
of the Texas Government Code, as amended.
3. That on the 11th day of May, 1995, the City Council
of the City of Lubbock, Texas, convened in regular session at its
regular meeting place in the City Hall of said City; the duly
constituted members of the council being as follows:
DAVID R. LANGSTON
RANDY NEUGEBAUER
VICTOR HERNANDEZ
T. J. PATTERSON
MAX INCE
ALEX "TY" COOKE
WINDY SITTON
MAYOR
MAYOR PRO TEM AND COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
all of said persons were present at said meeting, except the
following: None • Among other
business considered at said meeting, the attached ordinances
entitled:
ORDINANCE NO. 9804
AN ORDINANCE authorizing the issuance of "CITY OF
LUBBOCK, TEXAS, TAX AND HOTEL OCCUPANCY TAX SURPLUS
REVENUE CERTIFICATES OF OBLIGATION, SERIES 199511 ;
levying an ad valorem tax upon all taxable property in
951128/0247638 -3-
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the City and providinq for a limited pledqe of the Net
Revenues of the City's Waterworks system for the payment
of said Certificates; prescribinq the terms and details
of such Certificates and resolvinq other matters
incident and related to the issuance, sale, security,
payment and delivery of said Certificates, includinq the
approval of a Payinq Aqent/Reqistrar Aqreement and the
approval and distribution of an Official Statement
pertaininq thereto; and providinq an effective date.
ORDINANCE NO. 9805
AN ORDINANCE authorizinq the issuance of "CITY OF
LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS,
SERIES 1995"; specifyinq the terms and
features of said bonds; levyinq a continuinq
direct annual ad valorem tax for the payment
of said bonds; and resol vinq other matters
incident and related to the issuance, sale,
payment and delivery of said bonds, includinq
the approval of a Payinq Aqent/Reqistrar
Aqreement and the approval and distribution
of an Official Statement pertaininq thereto;
and providinq an effective date.
ORDINANCE NO. 9803
AN ORDINANCE authorizinq the issuance of "CITY OF
LUBBOCK 1 TEXAS 1 TAX AND AIRPORT SURPLUS
REVENUE CERTIFICATES OF OBLIGATION, SERIES
199511 ; levyinq an ad valorem tax upon all
taxable property in the City and providinq for
a pledqe of the surplus Revenues of the City's
Airport for the payment of said Certificates;
prescr ibinq the terms and details of such
Certificates and resolvinq other matters
incident and related to the issuance, sale,
security, payment and deli very of said
Certificates, includinq the approval of a
Payinq Aqent/Reqistrar Aqreement and the
approval and distribution of an Official
Statement pertaininq thereto; and providinq an
effective date.
were introduced and submitted to the Council for passaqe and
adoption. After presentation and due consideration of the
ordinance, and upon a motion made by T.Cooke and seconded
by M. Ince the ordinance with respect to the Tax and
Hotel Occupancy Tax Surplus Revenue Certificates of Obliqation was
95112810247638 -4-
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duly passed and adopted by the Council on second reading by the
following vote:
7 voted "For" __ 0_voted 11 Against" _0 __ .abstained
After presentation and due consideration of the ordinance, and
upon a motion made by T. Cooke and seconded by W. Sitton
the ordinance with respect to the General Obligation Bonds
was duly passed and adopted by the Council on second reading by
the following vote:
---~.7 __ voted 11 For11 o voted "Against 11 ~o __ .abstained
After presentation and due consideration of the ordinance, and
upon a motion made by T. Cooke and seconded by T. Patterson
the ordinance with respect to the Tax and Airport surplus
Revenue Certificates of Obligation was duly passed and adopted by
the Council on second reading by the following vote:
7 voted "For" 0 voted "Against" 0 abstained
all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
4. That the attached ordinances are true and correct
copies of the originals on file in the official records of the
city; the duly qualified and acting members of the City Council
of the City on the date of the aforesaid meeting are those persons
shown above and, according to the records of my office, advance
notice of the time, place and purpose of the meeting was given to
each member of the Council; and that said meeting, including the
subjects of the entitled ordinances, was posted and given in
advance thereof in compliance with the provisions of Chapter 551
of the Texas Government Code, as amended.
951128JD247638 -5-
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IN WITNESS WHEREOF, I have hereunto signed my name
officially and affixed the seal of said City, this the 11th day of
May, 1995.
cifYSCretary
City of Lubbock, Texas
(City Seal)
951128/024 7638 -6-
No Text
Exhibit A
,.. PAYING AGENT/REGISTRAR AGREEMENT
[See Tab 12 or the Transcript or Proceedings}
No Text
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CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS § s COUNTY OF LUBBOCK § s CITY OF LUBBOCK S
I, the undersigned, City Secretary of the city of Lubbock,
Texas, DO HEREBY CERTIFY as follows:
1. That on the 27th day of April, 1995, the City council of
the City of Lubbock, Texas, convened in reqular session at its
reqular meeting place in the City Hall of said City; the duly
constituted members of the Council being as follows:
DAVID R. LANGSTON
RANDY NEUGEBAUER
VICTOR HERNANDEZ
T. J. PATTERSON
MAX INCE
ALEX "TY" COOKE
WINDY SITTON
MAYOR
MAYOR PRO TEM AND COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
all of said persons were present at said meeting, except the
following: --~~-N~on~e~----~~--~~----~--~--~· Among other business considered at said meeting, the attached ordinances
entitled:
ORDINANCE NO. 9804
AN ORDINANCE authorizing the issuance of "CITY OF
LUBBOCK, TEXAS, TAX AND HOTEL OCCUPANCY TAX SURPLUS
REVENUE CERTIFICATES OF OBLIGATION, SERIES 199511 ;
levying an ad valorem tax upon all taxable property
in the City and providing for a limited pledge of
the Net Revenues of the City's Waterworks system
for the payment of said Certificates; prescribing
the terms and details of such Certificates and
' resolving other matters incident and related to the
issuance, sale, security, payment and delivery of
said certificates, including the approval of a
Paying Agent/Registrar Agreement and the approval
and distribution of an Official Statement
pertaininq thereto; and providing an effective
date.
No Text
ORDINANCE NO. 9805
AN ORDINANCE authorizing the issuance of "CITY OF
LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS,
SERIES 1995"; specifying the terms and
features of said bonds; levying a continuing
direct annual ad valorem tax for the payment
of said bonds; and resolving other matters
incident and related to the issuance, sale,
payment and delivery of said bonds, including
the approval of a Paying Agent/Registrar
Agreement and the approval and distribution
of an Official statement pertaining thereto;
and providing an effective date.
ORDINANCE NO. 9803
AN ORDINANCE authorizing the issuance of "CITY OF
LUBBOCK, TEXAS, TAX AND AIRPORT SURPLUS
REVENUE CERTIFICATES OF OBLIGATION, SERIES
199511 ; levying an ad valorem tax upon all
taxable property in the City and providing for
a pledge of the Surplus Revenues of the City's
Airport for the payment of said Certificates;
prescribing the terms and details of such
Certificates and resolving other matters
incident and related to the issuance, sale,
security, payment and deli very of said
Certificates, including the approval of a
Paying Agent/Registrar Agreement and the
approval and distribution of an Official
statement pertaining thereto; and providing an
effective date.
were introduced and submitted to the Council for passage and
adoption. After presentation and due consideration of the
ordinance, and upon a motion made by T. Cooke and seconded
by M. I nee the ordinance with respect to the Tax and
Hotel Occupancy Tax Surplus Revenue Certificates of Obligation was
duly passed and adopted by the Council on first reading by the
following vote:
~7 ___ voted "For" 0 voted "Against" o abstained
After presentation and due consideration of the ordinance, and
upon a motion made by T. Cooke and seconded by W. Sitton
____ the ordinance with respect to the General Obligation Bonds
was duly passed and adopted by the Council on first reading by the
following vote: '
95112810247638 -2-
No Text
__ 7 ___ voted "For" __ 0_voted "Against" _0 __ abstained
After presentation and due consideration of the ordinance, and
upon a motion made by T. Cooke and seconded by T. Patterson
_____ the ordinance with respect to the Tax and Airport surplus
Revenue certificates of Obligation was duly passed and adopted by
the council on first reading by the following vote:
7 voted "For" -~0'--voted "Against" o abstained
all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
2. That the attached ordinances are true and correct
copies of the originals on file in the official records of the
City; the duly qualified and acting members of the City Council
of the City on the date of the aforesaid meeting are those persons
shown above and, according to the records of my office, advance
notice of the time, place and purpose of the meeting was given to
each member of the Council; and that said meeting, including the
subjects of the entitled ordinances, was posted and given in
advance thereof in compliance with the provisions of Chapter 551
of the Texas Government Code, as amended.
3. That on the 11th day of May, 1995, the City Council
of the City of Lubbock, Texas, convened in reqular session at its
reqular meeting place in the City Hall of said. City; the duly
constituted members of the Council beinq as follows:
DAVID R. LANGSTON
RANDY NEUGEBAUER
VICTOR HERNANDEZ
T. J. PATTERSON
MAX INCE
ALEX 11TY11 COOKE
WINDY SITTON
MAYOR
MAYOR PRO TEM AND COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
all of said persons were present at said meeting, except the
following: None • Among other
business considered at said meeting, the attached ordinances
entitled:
ORDINANCE NO. 9804
AN ORDINANCE authorizing the issuance of "CITY OF
LUBBOCK, TEXAS, TAX AND HOTEL OCCUPANCY TAX SURPLUS
REVENUE CERTIFICATES OF OBLIGATION, SERIES 199511 ;
levying an ad valorem tax upon all taxable property in
951128/0247638 -3-
No Text
the City and providing for a limited pledge of the Net
Revenues of the City's Waterworks System for the payment
of said Certificates; prescribing the terms and details
of such Certificates and resolving other matters
incident and related to the issuance, sale, security,
payment and delivery of said certificates, including the
approval of a Paying Agent/Registrar Agreement and the
approval and distribution of an Official Statement
~. pertaining thereto; and providing an effective date.
ORDINANCE NO. 9805
AN ORDINANCE authorizing the issuance of "CITY OF
LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS,
SERIES 1995"; specifying the terms and
features of said bonds; levying a continuing
direct annual ad valorem tax for the payment
of said bonds; and resolving other matters
incident and related to the issuance, sale,
payment and delivery of said bonds, including
the approval of a Paying Agent/Registrar
Agreement and the approval and distribution
of an Official statement pertaining thereto;
and providing an effective date.
ORDINANCE NO. 9803
AN ORDINANCE authorizing the issuance of "CITY OF
LUBBOCK, TEXAS, TAX AND AIRPORT SURPLUS
REVENUE CERTIFICATES OF OBLIGATION, SERIES
1995"; levying an ad valorem tax upon all
taxable property in the City and providing for
a pledge of the Surplus Revenues of the City's
Airport for the payment of said certificates;
prescribing the terms and details of such
Certificates and resolving other matters
incident and related to the issuance, sale,
security, payment and delivery of said
Certificates, including the approval of a
Paying Agent/Registrar Agreement and the
approval and distribution of an Official
statement pertaining thereto; and providing an
effective date.
were introduced and submitted to the Council for passage and
adoption. After presentation and due consideration of the
ordinance, and upon a motion made by T. Cooke and seconded
by M. Ince the ordinance with respect to the Tax and
Hotel Occupancy Tax Surplus Revenue Certificates of Obligation was
95112810247638 -4-
No Text
duly passed and adopted by the Council on second readinq by the
followinq vote:
~7 __ voted "For" o voted "Aqainst" o abstained
After presentation and due consideration of the ordinance, and
upon a motion made by T. Cooke and seconded by w. Sitton
---~ the ordinance with respect to the General Obliqation Bonds
was duly passed and adopted by the council on second readinq by
the followinq vote:
~7 __ voted "For" o voted "Aqainst" o abstained
After presentation and due consideration of the ordinance, and
upon a motion made by T. Cooke and seconded by T. Patterson
_____ the ordinance with respect to the Tax and Airport Surplus
Revenue certificates of Obliqation was duly passed and adopted by
the Council on second readinq by the followinq vote:
~7 __ voted "For" o voted "Aqainst" 0 abstained
all as shown in the official Minutes of the Council for the
meetinq held o~ the aforesaid date.
4. That the attached ordinances are true and correct
copies of the oriqinals on file in the official records of the
City; the duly qualified and actinq members of the City Council
of the City on the date of the aforesaid meetinq are those persons
shown above and, accordinq to the records of my office, advance
notice of the time, place and purpose of the meetinq was qiven to
each member of the council; and that said meetinq, includinq the
subjects of the entitled ordinances, was posted and qiven in
advance thereof in compliance with the provisions of Chapter 551
of the Texas Government Code, as amended.
951128/0247638 -5-
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IN WITNESS WHEREOF, I have hereunto siqned my name
officially and affixed the seal of said City, this the 11th day of
May, 1995.
City of Lubbock, Texas
(City Seal)
95112810247638 -6-
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. ' '' ,J -•• J. ------------·----------·--··-·-..;__.,.C. __ . ___ ~-·------''--J...----......C.-·----·----------~------
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t
Exhibit A
PAYING AGENT/REGISTRAR AGREEMENT
{See Tab 13 of the Transcript of Proceedings}
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CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS S s COUNTY OF LUBBOCK S s CITY OF LUBBOCK S
I, the undersigned, City Secretary of the City of Lubbock,
Texas, DO HEREBY CERTIFY as follows:
1. That on the 27th day of April, 1995, the City Council of
the City of Lubbock, Texas, convened in regular session at its
regular meeting place in the City Hall of said City; the duly
constituted members of the Council being as follows:
DAVID R. LANGSTON
RANDY NEUGEBAUER
VICTOR HERNANDEZ
T. J. PATTERSON
MAX INCE
ALEX "TY11 COOKE
WINDY SITTON
MAYOR
MAYOR PRO TEM AND COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
all of said persons were present at said meeting, except the
following: None • Among other
business considered at said meeting, the attached ordinances
entitled:
ORDINANCE NO. 9804
AN ORDINANCE authorizing the issuance of "CITY OF
LUBBOCK, TEXAS, TAX AND HOTEL OCCUPANCY TAX SURPLUS
REVENUE CERTIFICATES OF OBLIGATION, SERIES 199511 ;
levying an ad valorem tax upon all taxable property
in the City and providing for a limited pledge of
the Net Revenues of the City's Waterworks System
for the payment of said Certificates; prescribing
the terms and details of such Certificates and
resolving other matters incident and related to the
issuance, sale, security, payment and delivery of
said Certif !cates, including the approval of a
Paying Agent/Registrar Agreement and the approval
and distribution of an Official Statement
pertaining thereto; and providing an effective
date •
No Text
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ORDINANCE NO. 9805
AN ORDINANCE authorizing the issuance of "CITY OF
LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS,
SERIES 199511 ; specifying the terms and
features of said bonds; levying a continuing
direct annual ad valorem tax for the payment
of said bonds; and resolving other matters
incident and related to the issuance, sale,
payment and delivery of said bonds, including
the approval of a Paying Agent/Registrar
Agreement and the approval and distribution
of an Official Statement pertaining thereto;
and providing an effective date.
ORDINANCE NO. 9803
AN ORDINANCE authorizing the issuance of "CITY OF
LUBBOCK 1 TEXAS 1 TAX AND AIRPORT SURPLUS
REVENUE CERTIFICATES OF OBLIGATION 1 SERIES
1995"; levying an ad valorem tax upon all
taxable property in the City and providing for
a pledge of the Surplus Revenues of the City's
Airport for the payment of said certificates;
prescribing the terms and details of such
Certificates and resolving other matters
incident and related to the issuance, sale,
security, payment and delivery of said
certificates, including the approval of a
Paying Agent/Registrar Agreement and the
approval and distribution of an Official
statement pertaining thereto; and providing an
effective date.
were introduced and submitted to the Council for passage and
adoption. After presentation and due consideration of the
ordinance, and upon a motion made by T. Cooke and seconded
by M. Ince the ordinance with respect to the Tax and
Hotel occupancy Tax surplus Revenue Certificates of Obligation was
duly passed and adopted by the council on first reading by the
following vote:
_7 __ voted "For" 0 voted "Against" o abstained
After presentation and due consideration of the ordinance, and
upon a motion made by T • Cooke and seconded by w. Sitton
the ordinance with respect to the General Obligation Bonds
was duly passed and adopted by the Council on first reading by the
following vote: ·
951128/0247638 -2-
r,,
...
_7 __ voted "For" ____ 0 __ voted "Against" __ 0_.abstained
After presentation and due consideration of the ordinance, and
upon a motion made by T. Cooke and seconded by r. Patterson
_____ the ordinance with respect to the Tax and Airport Surplus
Revenue Certificates of Obligation was duly passed and adopted by
the Council on first reading by the following vote:
7 voted 11For" 0 voted 11Against" o abstained
all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
2. That the attached ordinances are true and correct
copies of the originals on file in the official records of the
City; the duly qualified and acting members of the City Council
of the City on the date of the aforesaid meeting are those persons
shown above and, according to the records of my office, advance
notice of the time, place and purpose of the meeting was given to
each member of the council; and that said meeting, including the
subjects of the entitled ordinances, was posted and given in
advance thereof in compliance with the provisions of Chapter 551
of the Texas Government Code, as amended.
3. That on the 11th day of May, 1995, the City council
of the City of Lubbock, Texas, convened in reqular session at its
reqular meeting place in the City Hall of said City; the duly
constituted members of the council being as follows:
DAVID R. LANGSTON
RANDY NEUGEBAUER
VICTOR HERNANDEZ
T. J. PATTERSON
MAX INCE
ALEX 11TY 11 COOKE
WINDY SITTON
all of said persons were
following: None
MAYOR
MAYOR PRO TEM AND COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
present at said meeting, except the
business considered at said meeting,
entitled:
• Among other
the attached ordinances
ORDINANCE NO. 9804
AN ORDINANCE authorizing the issuance of "CITY OF
LUBBOCK, TEXAS, TAX AND HOTEL OCCUPANCY TAX SURPLUS
REVENUE CERTIFICATES OF OBLIGATION, SERIES 1995";
levying an ad valorem tax upon all taxable property in
95112810247638 -3-
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...
the City and providinq for a limited pledqe of the Net
Revenues of the City's Waterworks System for the payment
of said Certificates; prescribinq the terms and details
of such Certificates and resolvinq other matters
incident and related to the issuance, sale, security,
payment and delivery of said certificates, includinq the
approval of a Payinq Aqent/Reqistrar Aqreement and the
approval and distribution of an Official Statement
pertaininq thereto; and providinq an effective date.
ORDINANCE NO. 9805
AN ORDINANCE authorizinq the issuance of "CITY OF
LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS,
SERIES 1995"; specifyinq the terms and
features of said bonds; levyinq a continuinq
direct annual ad valorem tax for the payment
of said bonds; and resolvinq other matters
incident and related to the issuance, sale,
payment and delivery of said bonds, includinq
the approval of a Payinq Aqent/Reqistrar
Aqreement and the approval and distribution
of an Official Statement pertaininq thereto;
and providinq an effective date.
ORDINANCE NO. 9803
AN ORDINANCE authorizinq the issuance of "CITY OF
LUBBOCK 1 TEXAS, TAX AND AIRPORT SURPLUS
REVENUE CERTIFICATES OF OBLIGATION, SERIES
1995"; levyinq an ad valorem tax upon all
taxable property in the City and providinq for
a pledqe of the surplus Revenues of the City's
Airport for the payment of said Certificates;
prescribinq the terms and details of such
certificates and resolvinq other matters
incident and related to the issuance, sale,
security, payment and delivery of said
Certificates, includinq the approval of a
Payinq Aqent/Reqistrar Aqreement and the
approval and distribution of an Official
Statement pertaininq thereto; and providinq an
effective date.
were introduced and submitted to the Council for passaqe and
adoption. After presentation and due consideration of the
ordinance, and upon a motion made by T. Cooke and seconded
by M. !nee the ordinance with respect to the Tax and
Hotel Occupancy Tax surplus Revenue Certificates of Obliqation was
951128/1)247638 -4-
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,....
...
duly passed and adopted by the Council on second readinq by the
followinq vote:
_7 __ voted "For" ___ 0 __ voted "Aqainst" _0 __ .abstained
After presentation and due consideration of the ordinance, and
upon a motion made by T. Cooke and seconded by w. Sitton
_____ the ordinance with respect to the General Obliqation Bonds
was duly passed and adopted by the Council on second readinq by
the followinq vote:
--:.? __ voted "For" o voted "Aqainst" o abstained
After presentation and due consideration of the ordinance, and
upon a motion made by T. Cooke and seconded by T. Patterson
_____ the ordinance with respect to the Tax and Airport Surplus
Revenue Certificates of Obliqation was duly passed and adopted by
the Council on second readinq by the followinq vote:
__ 7 ___ voted "For" o voted "Aqainst" o abstained
all as shown in the official Minutes of the Council for the
meetinq held on the aforesaid date.
4. That the attached ordinances are true and correct
copies of the oriqinals on file in the official records of the
City; the duly qualified and actinq members of the City Council
of the City on the date of the aforesaid meetinq are those persons
shown above and, accordinq to the records of my office, advance
notice of the time, place and purpose of the meetinq was qiven to
each member of the Council; and that said meetinq, includinq the
subjects of the entitled ordinances, was posted and qiven in
advance thereof in compliance with the provisions of Chapter 551
of the Texas Government Code, as amended.
951128/0247638 -5-
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IN WITNESS WHEREOF, I have hereunto siqned my name
officially and affixed the seal of said city, this the 11th day of
May, 1995.
City of Lubbock, Texas
(City seal)
951128/1)247638 -6-
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No Text
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1 -,...,
( .
PAYING AGENT/REGISTRAR AGREEMENT
THIS AGREEMENT entered into as of May 11, 1995 (this
"Agreement"), by and between the city of Lubbock, Texas (the
"Issuer"), Norwest Bank Texas, National Association, Lubbock, Texas
and Norwest Bank Minnesota, National Association, Minneapolis,
Minnesota, a banking association duly organized and existing under
the laws of the United States of America (the "Bank").
RECITALS
WHEREAS, the Issuer has duly authorized and provided for the
issuance of its "City of Lubbock, Texas, General Obligation Bonds,
series 1995" (the "Securities") in:the aggregate principal amount
of $4,690,000, such Securities to be issued in fully registered
form only as to the payment of principal thereof and interest
thereon; and
WHEREAS, the Securities are scheduled to be delivered to the
initial purchasers thereof on or about June 15, 1995; and
WHEREAS, the Issuer has selected the Bank to serve as Paying
Agent/Registrar and the Texas Bank to serve as co-Registrar in
connection with the payment of the principal of, premium, if any,
and interest on said securities and with respect to the
registration, transfer, and exchange thereof by the registered
owners thereof; and
WHEREAS, the Bank and the Texas Bank have agreed to serve in
such capacities for and on behalf of the Issuer and the Bank has
full power and authority to perform and serve as Paying
Agent/Registrar for the Securities and the Texas Bank has full
power and authority to perform and serve as co-Registrar for the
Securities;
NOW, THEREFORE, it is mutually agreed as follows:
ARTICLE ONE
APPOINTMENT OF BANK AS
PAYING AGENT AND REGISTRAR;
APPOINTMENT OF TEXAS BANK AS CO-REGISTRAR
Section 1.01. Appointment.
The Issuer hereby appoints the Bank to serve as Paying Agent
with respect to the Securities, and, as such Paying Agent, the Bank
shall be responsible for paying on behalf of the Issuer the
principal of, premium (if any), and interest on the Securities as
the same become due and payable to the registered owners thereof;
all in accordance with this Agreement and the "Bond Resolution"
(hereinafter defined). The Issuer hereby appoints the Bank as
Registrar with respect to the Securities and, as Registrar for the
Securities, the Bank shall keep and maintain for and on behalf of
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the Issuer books and records as to the ownership of said Securities
and with respect to the transfer and exchange thereof as provided
herein and in the "Bond Resolution". The Issuer hereby appoints
the Texas Bank as co-Registrar with respect to the Securities and,
as co-Registrar for the Securities the Texas Bank shall keep and
maintain a duplicate copy, in Texas, for an on behalf of the Issuer
books and records as to the ownership of said Securities and with
respect to the transfer and exchange thereof.
The Bank hereby accepts its appointment, and agrees to serve
as the Paying Agent and Registrar for the Securities. The Texas
Bank hereby accepts its appointment, and agrees to serve as co-
Registrar for the Securities.
section 1.02. Compensation.
As compensation for the Bank's services as Paying Agent/
Registrar, the Issuer hereby agrees to pay the Bank the fees and
amounts set forth in Annex A attached hereto for the first year of
this Agreement and thereafter the fees and amounts set forth in the
Bank's current fee schedule then in effect for services as Paying
Agent/Registrar for municipalities, which shall be supplied to the
Issuer on or before 90 days prior to the close of the Fiscal Year
of the Issuer, and shall be effective upon the first day of the
following Fiscal Year. The co-Registrar will not be entitled to
compensation.
In addition, the Issuer agrees to reimburse the Bank upon its
request for all reasonable expenses, disbursements, and advances
incurred or made by the Bank in accordance with any of the
provisions hereof (including the reasonable compensation and the
expenses and disbursements of its agents and counsel).
ARTICLE TWO
DEFINITIONS
Section 2.01. Definitions.
For all purposes of this Agreement, except as otherwise
expressly provided or unless the context otherwise requires:
"Acceleration Date" on any Security means the date on and
after which the principal or any or all installments of
interest, or both, are due and payable on any security which
has become accelerated pursuant to the terms of the Security.
"Bank Office" means the principal corporate trust office
of the Bank as indicated on page 12 hereof. The Bank will
notify the Issuer in writing of any change in location of the
Bank Office.
95112810247627.02 -2-
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"Bond Resolution" means the resolution, order, or
ordinance of the governing body of the Issuer pursuant to
which the Securities are issued, certified by the Secretary or
any other officer of the Issuer and delivered to the Bank.
"Fiscal Year" means the fiscal year of the Issuer, ending
September 30.
"Holder" and "Security Holder" each means the Person in
whose name a Security is registered in the Security Register.
"Issuer Request" and "Issuer Order11 means a written
request or order signed in the name of the Issuer by the
Mayor, City Secretary, City Manager, or Assistant City Manager
for Financial Services, any one or more of said officials, and
delivered to the Bank.
"Legal Holiday" means a day on which the Bank is required
or authorized to be closed.
"Person" means any individual, corporation, partnership,
joint venture, association, joint stock company, trust,
unincorporated organization, or government, or any agency or
political subdivision of a government.
11Predecessor Securities" of any particular Security means
every previous Security evidencing all or a portion of the
same obligation as that evidenced by such particular Security
(and, for the purposes of this definition, any mutilated,
lost, destroyed, or stolen Security for which a replacement
Security has been registered and delivered in lieu thereof
pursuant to Section 4.06 hereof and the Resolution).
"Redemption Date" when used with respect to any Bond to
be redeemed means the date fixed for such redemption pursuant
to the terms of the Bond Resolution.
"Responsible Officer" when used with respect to the Bank
means the Chairman or Vice-Chairman of the Board of Directors,
the Chairman or Vice-Chairman of the Executive Committee of
the Board of Directors, the President, any Vice President, the
Secretary, any Assistant Secretary, the Treasurer, any
Assistant Treasurer, the cashier, any Assistant cashier, any
Trust Officer or Assistant Trust Officer, or any other officer
of the Bank customarily performing functions similar to those
performed by any of the above designated officers and also
means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of
his knowledge of and familiarity with the particular subject.
951128/0247627 -3-
I
"Security Reqister11 means a reqister maintained by the
Bank, a duplicate of which is maintained in Texas by the Texas
Bank, on behalf of the Issuer providinq for the reqistration
and transfer of Securities.
"Stated Maturity" means the date specified in the Bond
Resolution the principal of a Security is scheduled to be due
and payable.
Section 2.02. Other Definitions.
The terms "Bank," "Texas Bank" and "Issuer," and "Securities
(Security)" have the meaninqs assiqned to them in the recital
paraqraphs of this Aqreement.
The term "Payinq Aqent/Reqistrar" refers to the Bank in the
performance of the duties and functions of this Aqreement.
ARTICLE THREE
PAYING AGENT
Section 3.01. puties of the Paying Agent.
As Payinq Aqent, the Bank shall, provided adequate collected
funds have been provided to it for such purpose by or on behalf of
the Issuer, pay on behalf of the Issuer the principal of each
Security at its Stated Maturity, Redemption Date, or Acceleration
Date, to the Holder upon surrender of the Security to the Bank at
the Bank Office. ·
As Payinq Aqent, the Bank shall, provided adequate collected
funds have been provided to it for such purpose by or on behalf of
the Issuer, pay on behalf of the Issuer the interest on each
security when due, by computinq the amount of interest to be paid
each Holder and makinq payment thereof to the Holders of the
Securities (or their Predecessor Securities) on the Record Date.
All payments of principal and/or interest on the Securities to the
reqistered owners shall be accomplished (1) by the issuance of
checks, payable to the reqistered owners, drawn on the fiduciary
account provided in Section 5. 05 hereof, sent by United States
mail, first class, postaqe prepaid, to the address appearinq on the
Security Reqister or (2) by such other method, acceptable to the
Bank, requested in writinq by the Holder at the Holder's risk and
expense.
Section 3.02. Payment pates.
The Issuer hereby instructs the Bank to pay the principal of
and interest on the Securities at the dates specified in the Bond
Resolution.
95112810247627 -4-
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ARTICLE FOUR
REGISTRAR
Section 4.01. Security Register-Transfers and Exchanges.
The Bank agrees to keep and maintain for and on behalf of the
Issuer at the Bank Office books and records (herein sometimes
referred to as the "Security Register") for recording the names and
addresses of the Holders of the Securities, the transfer, exchange,
and replacement of the Securities and the payment of the principal
of and interest on the securities to the Holders and containing
such other information as may be reasonably required by the Issuer
and subject to such reasonable regulations as the Issuer and the
Bank may prescribe. All transfers, exchanges, and replacements of
Securities shall be noted in the Security Register.
Every Security surrendered for transfer or exchange shall be
duly endorsed or be accompanied by a written instrument of
transfer, the signature on which has been guaranteed by an officer
of a federal or state bank or a member of the National Association
of Securities Dealers, such written instrument to be in a form
satisfactory to the Bank and duly executed by the Holder thereof or
his agent duly authorized in writing.
The Bank may request any supporting documentation it feels
necessary to effect a re-registration, transfer, or exchange of the
securities.
To the extent possible and under reasonable circumstances, the
Bank agrees that, in relation to an exchange or transfer of
Securities, the exchange or transfer by the Holders thereof will be
completed and new Securities delivered to the Holder or the
assignee of the Holder in not more than three (3) business days
after the receipt of the Securities to be canceled in an exchange
or transfer and the written instrument of transfer or request for
exchange duly executed by the Holder, or his duly authorized agent,
in form and manner satisfactory to the Paying Agent/Registrar.
The Texas Bank agrees to keep and maintain for and on behalf
of the Issuer, in Texas, a duplicate of the Security Register.
Section 4.02. Securities.
The Issuer shall provide an adequate inventory of printed
Securities to facilitate transfers or exchanges thereof. The Bank
covenants that the inventory of printed Securities will be kept in
safekeeping pending their use and reasonable care will be exercised
by the Bank in maintaining such Securities in safekeeping, which
shall be not less than the care maintained by the Bank for debt
95112810247627 -s-
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securities of other governments or corporations for which it serves
as registrar, or that is maintained for its own securities.
Section 4.03. Form of the Security Register.
The Bank, as Registrar, will maintain the Security Register
relating to the registration, payment, transfer, and exchange of
the Securities in accordance with the Bank's general practices and
procedures in effect from time to time. The Bank shall not be
obligated to maintain such Security Register in any form other than
those which the Bank has currently available and currently utilizes
at the time.
The security Register may be maintained in written form or in
any other form capable of being converted into written form within
a reasonable time.
Section 4.04. List of Security Holders.
The Bank will provide the Issuer at any time requested by the
Issuer, upon payment of the required fee, a copy of the information
contained in the Security Register. The Issuer may also inspect
the information contained in the Security Register at any time the
Bank is customarily open for business, provided that reasonable
time is allowed the Bank to provide an up-to-date listing or to
convert the information into written form.
The Bank will not release or disclose the contents of the
Security Register to any person other than to, or at the written
request of, an authorized officer or employee of the Issuer, except
upon receipt of a court order or as otherwise required by law.
Upon receipt of a court order and prior to the release or
disclosure of the contents of the Security Register, the Bank will
notify the Issuer so that the Issuer may contest the court order or
such release or disclosure of the contents of the security
Register.
section 4.05. Return of Canceled Securities.
The Bank will, at such reasonable intervals as it determines,
surrender to the Issuer, Securities in lieu of which or in exchange
for which other Securities have been issued, or which have been
paid.
Section 4.06. Mutilated, Destroyed,
Securities.
Lost, or Stolen
The Issuer hereby instructs the Bank, subject to the
provisions of the Bond Resolution, to deliver and issue Securities
951128/0247627 -6-
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in exchanqe for or in lieu of mutilated, destroyed, lost, or stolen
Securities as lonq as the same does not result in an overissuance.
In case any Security shall be mutilated, destroyed, lost, or
stolen, the Bank, in its discretion, may execute and deliver a
replacement Security of like form and tenor, and in the same
denomination and bearinq a number not contemporaneously
outstandinq, in exchanqe and substitution for such mutilated
Security, or in lieu of and in substitution for such destroyed,
lost, or stolen Security, only upon (i) the filinq by the Holder
thereof with the Bank of evidence satisfactory to the Bank of the
destruction, loss, or theft of such Security, and of the
authenticity of the ownership thereof and (ii) the furnishinq to
the Bank of indemnification in an amount satisfactory to hold the
Issuer and the Bank harmless. All expenses and charqes associated
with such indemnity and with the preparation, execution, and
delivery of a replacement Security shall be borne by the Holder of
the Security mutilated, destroyed, lost, or stolen.
Section 4.07. Transaction Information to the Issuer.
The Bank will, within a· reasonable time after receipt of
written request from the Issuer, furnish the Issuer information as
to the Securities it has paid pursuant to Section 3.01 hereof,
Securities it has delivered upon the transfer or exchanqe of any
Securities pursuant to Section 4.01 hereof, and Securities it has
delivered in exchanqe for or in lieu of mutilated, destroyed, lost,
or .stolen Securities pursuant to Section 4.06 hereof.
ARTICLE FIVE
THE BANK
Section 5.01. Duties of the Bank.
The Bank undertakes to perform the duties set forth herein and
aqrees to use reasonable care in the performance thereof.
Section 5.02. Reliance on the Documents. Etc.
(a) The Bank may conclusively rely, as to the truth of the
statements and correctness of the opinions expressed therein, on
certificates or opinions furnished to the Bank.
(b) The Bank shall not be liable for any error of judqment
made in qood faith by a Responsible Officer, unless it shall be
proved that the Bank was neqliqent in ascertaining the pertinent
facts.
(c) No provisions of this Aqreement shall require the Bank to
expend or risk its own funds or otherwise incur any financial
951128/D247627 -7-
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liability for performance of any of its duties hereunder, or in the
exercise of any of its riqhts or powers, if it shall have
reasonable grounds for believinq that repayment of such funds or
adequate indemnity satisfactory to it aqainst such risks or
liability is not assured to it.
(d) The Bank may rely and shall be protected in actinq or
refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent,
order, bond, note, security, or other paper or document believed by
it to be genuine and to have been siqned or presented by the proper
party or parties. Without limiting the generality of the foregoing
statement, the Bank need not examine the ownership of any
Securities, but is protected in actinq upon receipt of Securities
containing an endorsement or instruction of transfer or power of
transfer which appears on its face to be signed by the Holder or
an agent of the Holder. The Bank shall not be bound to make any
investigation into the facts or matters stated in a resolution,
certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, note, security, or other
paper or document supplied by Issuer.
(e) The Bank may consult with counsel, and the written advice
of such counsel or any opinion of counsel shall be full and
complete authorization and protection with respect to any action
taken, suffered, or omitted by it hereunder in good faith and in
reliance thereon.
(f) The Bank may exercise any of the powers hereunder and
perform any duties hereunder either directly or by or through
agents or attorneys of the Bank.
Section 5.03. Recitals of the Issuer.
The recitals contained herein with respect to the Issuer and
in the Securities shall be taken as the statements of the Issuer,
and the Bank assumes no responsibility for their correctness.
The Bank shall in no event be liable to the Issuer, any Holder
or Holders of any Security, or any other Person for any amount due
on any security from its own funds.
Section 5.04. May Hold Securities.
The Bank, in its individual or any other capacity, may become
the owner or pledqee of securities and may otherwise deal with the
Issuer with the same rights it would have if it were not the Paying
Agent/Registrar, or any other agent.
951128/0247627 -s-
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Section 5. 05. .,.M~o~nl.ll:e::.~Y:..::S~H.&.:e::..:l~~:,;~d::....Jbc:::..Y"'---t.=h~e-B~a .... n!..=.lk=--------==s~e=.~p~a~r~a~t~e Account/Collateralization.
A separate account shall at all times be kept and maintained
by the Bank for the receipt, safekeepinq and disbursement of moneys
received from the Issuer hereunder for the payment of the
Securities, and money deposited to the credit of such account until
paid to the Holders of the Securities shall be continuously
collateralized by securities or obliqations which qualify and are
eliqible under the laws of the state of Texas to secure and be
pledqed as collateral for accounts of the Issuer to the extent such
money is not insured by the Federal Deposit Insurance Corporation.
Payments made from such account shall be made by check drawn on
such account unless the owner of such Securities shall, at its own
expense and risk, request such other medium of payment.
The Bank shall be under no liability for interest on any money
received by it hereunder.
Subject to the applicable unclaimed property laws of the state
of Texas, any money deposited with the Bank for the payment of the
principal, premium (if any), or interest on any security and
remaininq unclaimed for four years after final maturity of the
Security has become due and payable will be paid by the Bank to the
Issuer, and the Holder of such Security shall thereafter look only
to the Issuer for payment thereof, and all liability of the Bank
with respect to such moneys shall thereupon cease.
Section 5.06. Indemnification.
To the extent permitted by law, the Issuer aqrees to indemnify
the Bank for, and hold it harmless aqainst, any loss, liability, or
expense incurred without neqliqence or bad faith on its part,
arisinq out of or in connection with its acceptance or
administration of its duties hereunder, includinq the cost and
expense aqainst any claim or liability in connection with the
exercise or performance of any of its powers or duties under this
Aqreement.
Section 5.07. Interpleader.
The Issuer and the Bank aqree that the Bank may seek
adjudication of any adverse claim, demand, or controversy over its
person as well as funds on deposit, in either a Federal or State
District Court located in the state and county where either the
Bank Office or the administrative office of the Issuer is located,
and aqree that service of process by certified or reqistered mail,
return receipt requested, to the address referred to in
Section 6.03 of this Aqreement shall constitute adequate service.
The Issuer and the Bank further agree that the Bank has the riqht
951128/0247627 -9-
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to file a Bill of Interpleader in any court of competent
jurisdiction to determine the rights of any Person claiming any
interest herein.
Section s.os. DT Services.
It is hereby represented and warranted that, in the event the
Securities are otherwise qualified and accepted for "Depository
Trust Company" services or equivalent depository trust services by
other organizations, the Bank has the capability and, to the extent
within its control, will comply with the "Operational Arrangements"
which establish requirements for securities to be eligible for such
type depository trust services, including, but not limited to,
requirements for the timeliness of payments and funds availability,
transfer turnaround time, and notification of redemptions and
calls.
ARTICLE SIX
MISCELLANEOUS PROVISIONS
section 6.01. Amendment.
This Agreement may be amended only by an agreement in writing
signed by both of the parties hereto.
Section 6.02. Assignment.
This Agreement may not be assigned by either party without the
prior written consent of the other.
Section 6.03. Notices.
Any request, demand, authorization, direction, notice,
consent, waiver, or other document provided or permitted hereby to
be given or furnished to the Issuer or the Bank shall be mailed or
delivered to the Issuer or the Bank, respectively, at the addresses
shown on page 12 of this Agreement.
Section 6.04. Effect of Headings.
The Article and Section headings herein are for convenience
only and shall not affect the construction hereof.
Section 6.05. successors and Assigns.
All covenants and agreements herein by the Issuer shall bind
its successors and assigns, whether so expressed or not.
Section 6.06. Severability.
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In case any provision herein shall be invalid, illegal, or
unenforceable, the validity, legality, and enforceability of the
remaining provisions shall not in any way be affected or impaired
thereby.
Section 6.07. Benefits of Agreement.
Nothing herein, express or implied, shall give to any Person,
other than the parties hereto and their successors hereunder, any
benefit or any legal or equitable right, remedy, or claim
hereunder.
Section 6.08. Entire Agreement.
This Agreement and the Bond Resolution constitute the entire
agreement between the parties hereto relative to the Bank acting as
Paying Agent/Registrar and if any conflict exists between this
Agreement and the Bond Resolution, the Bond Resolution shall
govern.
section 6.09. counterparts.
This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original and all of which shall
constitute one and the same Agreement.
section 6.10. Termination.
This Agreement will terminate (i) on the date of final payment
of the principal of and interest on the Securities to the Holders
thereof or (ii) may be earlier terminated by either party upon
sixty (60) days written notice; provided, however, an early
termination of this Agreement by either party shall not be
effective until (a) a successor Paying Agent/Registrar has been
appointed by the Issuer and such appointment accepted and (b)
notice given to the Holders of the Securities of the appointment of
a successor Paying Agent/Registrar. Furthermore, the Bank and the
Issuer mutually agree that the effective date of an early
termination of this Agreement shall not occur at any time which
would disrupt, delay, or otherwise adversely affect the payment of
the securities.
Upon an early termination of this Agreement, the Bank agrees
to promptly transfer and deliver the Security Register (or a copy
thereof), together with other pertinent books and records relating
to the Securities, to the successor Paying Agent/Registrar
designated and appointed by the Issuer.
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The provisions of Section 1. 02 and of Article Five shall
survive and remain in full force and effect following the
termination of this Agreement.
section 6.11. Governing Law.
This Agreement shall be construed in accordance with and
governed by the laws of the State of Texas.
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IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the day and year first above written.
[SEALJ._"
(SEAL)
ATTEST:
95112810247627
Address:
P. o. Box 2000
Lubbock, Texas 79457
NORWEST BANK MINNESOTA
NATIONAL ASSOCIATION
Minneapolis, Minnesota
Mailinq Address:
Norwest Center
Sixth and Marquette
Minneapolis, Minnesota 55479-0069
Delivery Address:
Norwest Center
Sixth and Marquette
Minneapolis, Minnesota 55479-0069
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NORWESI' Corp~rate Trust
SERVICES PROVIDED: ANNEX A
L Processing of registered/bearer bonds including: payment of principal aDd interest when clue; original registrations, authentication and delivcly of
the certificateS for closing; tax withholding and tax reporting (along with any other governmental rcportin&) IS n:quire4 under the 111les and
rqulations of the lntemal Revenue Service; transfer processing and re-registration or certificates, and compliance with applicable industry
staruiard.s; notification of and processing for early boncl redemption's; upon receipt of ~atisfactory bonds of indemnity is:si.Wlce on ntw bonds in
IUbltitution for bonds lost, stolen. or clcsttoyed; andsareteeping of bOl'ld certificate inventories.
2.. Retention and clcst:nu:tion of canceled and matured bonds/coupons including: adoption of an appropriate retention period; clest111ction of cancele4
and matured bonds/coupons upon expiration of the retention period; and certification IS to the destruction or the bonds/coupons to the issuer
upon requc.st.
3. On request by the issuer, reports relating to the processing or registered/bearer bonds including: holdem reports, amortization and debt scrv1ce
IChedllles.
4. Debt Service and Fee Billing statements to be delivered at least 25 days prior to the actual payment date.
S. Additional services IS appropriate to the account under the terms or the issue and IS agreed upon between the issuer and Norwest.
ISSUER DUTIES:
1. Norwl:st Bank is requiring receipt or immediately available funds by 10:00 A.M. (est) on payment date. The issuer is responsible for any and au
compensation claiJ:ns by bondboldeJS l'C5111ting from unavailability of funds to make timely payments to bondholclezs. Norwest will not make
payment to the bondbolcle111 untU funds~ been received and collected. ACH (Automatic Ocaring House) clirect clebit is an easy and efficient
method for transferring fund electronically and ~ have use or funds vntU payment date. Payments made by cbcc:t Will ~ to be received by
Norwest Bank fn.oe days prior to payment date or ~will be subject to a fee. Please can (612) 667-4907 for more information.
2.. To notify Norwest, in writing, at least 45 days in advance or any call for redemption whether by linking fund or an optional can on any part or an of
the bond issue.
SERVICE ASSUMPTIONS:
1. Norwest agrees to use Its best effort in providing prompt services. It further agrees to c.xercise care in the performance of these services. Norwest
assumes respoiiSI'bUity, however, only for its owa cross negligence or misconduct or that or its officers, employees or agents.. It expressly clisdaims
any responsibility for any loss arising out of any act or omission by the ~&suer, or any of Its officeJS, employees, or agents thereof.
Nosw=st will perform all or the services provided for and required by law in tbe State or Minnesota in accordance with aU applicable statues, rules
and regulations, or supervisory authorizes and other applicable law. It will mate available auy and an records, reports and information u required
to appropriate supervisory authorities.
3. Norwest may conclusively rely upon and shall be protected in acting upon any statement, certificate. notice request or other document reasonably
bdicvccl by it to be genuine or to bave been 1igned or presented by the pc1SOD or peJSOns reasonably believed to be authorized to sign, countctsign.
or execute the s:ame.
4. Norwest's appointment IS Registrar and Paying Agent may be terminated by either party by Jiving written notice of intention to terminate at least
ninety (90) da)'ll before the specified termination. date in or on an earlier date if mutually agreed upon.
PHYSICAL
ORIGINAL ISSUANCE: $400.00
(Issuance up to 200 certificates)
$1.50/ certificate in excess of 200 certificates
AN!'.TUAL FEE: $300.00
$3.00/year/bondholder in excess of 120 bondholders
$3.50/maturity bond payment
$4.50/early redemption bond payment
$ .45/coupon payment
BOOK ENTRY
ORIGINAL ISSUANCE: $200.00
ANNUAL FEE: $125.00
DERIVATIVE FEA TIJRES: Additional fees applicable.
...... ••••• NORWEST BANKS
XTRAORDINARY OUT-OF-POCKET EXPENSES ADDITIONAL
••••• .. ,.
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PAYING AGENT/REGISTRAR AGREEMENT
THIS AGREEMENT entered into as of May 11, 1995 (this
"Agreement"), by and between the City of Lubbock, Texas (the
"Issuer"), Norwest Bank Texas, National Association, Lubbock, Texas
and Norwest Bank Minnesota, National Association, Minneapolis,
Minnesota, a banking association duly organized and existing under
the laws of the United States of America (the "Bank").
RECITALS
WHEREAS, the Issuer has duly authorized and provided for the
issuance of its "City of Lubbock, Texas, Tax and Hotel Occupancy
Tax Surplus Revenue Certificates of Obligation, Series 1995" (the
"Securities") in the aggregate principal amount of $2,000,000, such
Securities to be issued in fully registered form only as to the
payment of principal thereof and interest thereon; and
WHEREAS, the Securities are scheduled to be delivered to the
initial purchasers thereof on or about June 15, 1995; and
WHEREAS, the Issuer has selected the Bank to serve as Paying
Agent/Registrar and the Texas Bank to serve as co-Registrar in
connection with the payment of the principal of, premium, if any,
and interest on said securities and with respect to the
registration, transfer, and exchange thereof by the registered
owners thereof; and
WHEREAS, the Bank and the Texas Bank have agreed to serve in
such capacities for and on behalf of the Issuer and the Bank has
full power and authority to perform and serve as Paying
Agent/Registrar for the securities and the Texas Bank has full
power and authority to perform and serve as co-Registrar for the
Securities;
NOW, THEREFORE, it is mutually agreed as follows:
ARTICLE ONE
APPOINTMENT OF BANK AS
PAYING AGENT AND REGISTRAR;
APPOINTMENT OF TEXAS BANK AS CO-REGISTRAR
Section 1.01. Appointment.
The Issuer hereby appoints the Bank to serve as Paying Agent
with respect to the Securities, and, as such Paying Agent, the Bank
shall be responsible for paying on behalf of the Issuer the
principal of, premium (if any), and interest on the Securities as
the same become due and payable to the registered owners thereof;
all in accordance with this Agreement and the "Bond Resolution"
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(hereinafter defined) • The Issuer hereby appoints the Bank as
Reqistrar with respect to the Securities and, as Reqistrar for the
securities, the Bank shall keep and maintain for and on behalf of
the Issuer books and records as to the ownership of said Securities
and with respect to the transfer and exchanqe thereof as provided
herein and in the "Bond Resolution". The Issuer hereby appoints
the Texas Bank as co-Reqistrar with respect to the Securities and,
as co-Reqistrar for the securities the Texas Bank shall keep and
maintain a duplicate copy, in Texas, for an on behalf of the Issuer
books and records as to the ownership of said Securities and with
respect to the transfer and exchanqe thereof.
The Bank hereby accepts its appointment, and aqrees to serve
as the Payinq Aqent and Reqistrar for the Securities. The Texas
Bank hereby accepts its appointment, and aqrees to serve as co-
Reqistrar for the securities.
Section 1.02. Compensation.
As compensation for the Bank's services as Payinq Aqent/
Reqistrar, the Issuer hereby aqrees to pay the Bank the fees and
amounts set forth in Annex A attached hereto for the first year of
this Aqreement and thereafter the fees and amounts set forth in the
Bank's current fee schedule then in effect for services as Payinq
Aqent/Reqistrar for municipalities, which shall be supplied to the
Issuer on or before 90 days prior to the close of the Fiscal Year
of the Issuer, and shall be effective upo~ the first day of the
followinq Fiscal Year. The co-Reqistrar will not be entitled to
compensation.
In addition, the Issuer aqrees to reimburse the Bank upon its
request for all reasonable expenses, disbursements, and advances
incurred or made by the Bank in accordance with any of the
provisions hereof (includinq the reasonable compensation and the
expenses and disbursements of its aqents and counsel).
ARTICLE TWO
DEFINITIONS
Section 2.01. Definitions.
For all purposes of this Aqreement, except as otherwise
expressly provided or unless the context otherwise requires:
"Acceleration Date" on any Security means the date on and
after which the principal or any or all installments of
interest, or both, are due and payable on any Security which
has become accelerated pursuant to the terms of the Security.
"Bank Office" means the principal corporate trust office
of the Bank as indicated on paqe 12 hereof. The Bank will
notify the Issuer in writinq of any chanqe in location of the
0247667$31128
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Bank Office.
"Bond Resolution" means the resolution, order, or
ordinance of· the governing body of the Issuer pursuant to
which the Securities are issued, certified by the Secretary or
any other officer of the Issuer and delivered to the Bank.
"Fiscal Year" means the fiscal year of the Issuer, ending
September 30.
"Holder" and "Security Holder" each means the Person in
whose name a Security is registered in the Security Register.
"Issuer Request" and "Issuer Order" means a written
request or order signed in the name of the Issuer by the
Mayor, City Secretary, City Manager, or Assistant city Manager
for Financial Services, any one or more of said officials, and
delivered to the Bank.
"Legal Holiday" means a day on which the Bank is required
or authorized to be closed.
"Person" means any individual, corporation, partnership,
joint venture, association, joint stock company, trust,
unincorporated organization, or government, or any agency or
political subdivision of a government.
"Predecessor Securities" of any particular Security means
every previous Security evidencing all or a portion of the
same obligation as that evidenced by such particular Security
(and, for the purposes of· this definition, any mutilated,
lost, destroyed, or stolen Security for which a replacement
Security has been registered and delivered in lieu thereof
pursuant to section 4.06 hereof and the Resolution).
"Redemption Date" when used with respect to any Bond to
be redeemed means the date fixed for such redemption pursuant
to the terms of the Bond Resolution.
"Responsible Officer" when used with respect to the Bank
means the Chairman or Vice-Chairman of the Board of Directors,
the Chairman or Vice-Chairman of the Executive committee of
the Board of Directors, the President, any Vice President, the
Secretary, any Assistant Secretary, the Treasurer, any
Assistant Treasurer, the Cashier, any Assistant cashier, any
Trust Officer or Assistant Trust Officer, or any other officer
of the Bank customarily performing functions similar to those
performed by any of. the above designated officers and also
means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of
his knowledge of and familiarity with the particular subject.
D247667N.ill28
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"Security Reqister" means a reqister maintained by the
Bank, a duplicate of which is maintained in Texas by the Texas
Bank, on behalf of the Issuer providinq for the reqistration
and transfer of Securities.
"Stated Maturity" means the date specified in the Bond
Resolution the principal of a Security is scheduled to be due
and payable.
Section 2.02. Other Definitions.
The terms "Bank," "Texas Bank", "Issuer," and "Securities
(Security)" have the meaninqs assiqned to them in the recital
paraqraphs of this Aqreement.
The term "Payinq Aqent/Reqistrar" refers to the Bank in the
performance of the duties and functions of this Aqreement.
ARTICLE THREE
PAYING AGENT
Section 3.01. puties of the Paying Agent.
As Payinq Aqent, the Bank shall, provided adequate collected
funds have been provided to it for such purpose by or on behalf of
the Issuer, pay on behalf of the Issuer the principal of each
Security at its stated Maturity, Redemption Date, or Acceleration
Date, to the Holder upon surrender of the Security to the Bank at
the Bank Office.
As Payinq Aqent, the Bank shall, provided adequate collected
funds have been provided to it for such purpose by or on behalf of
the Issuer, pay on behalf of the Issuer the interest on each
Security when due, by computinq the amount of interest to be paid
each Holder and makinq payment thereof to the Holders of the
Securities (or their Predecessor Securities) on the Record Date.
All payments of principal and/or interest on the Securities to the
reqistered owners shall be accomplished (1) by the issuance of
checks, payable to the reqistered owners, drawn on the fiduciary
account provided in Section 5. OS hereof, sent by United states
mail, first class, postaqe prepaid, to the address appearinq on the
Security Reqister or (2) by such other method, acceptable to the
Bank, requested in writinq by the Holder at the Holder's risk and
expense.
Section 3.02. Payment pates.
The Issuer hereby instructs the Bank to pay the principal of
and interest on the Securities at the dates specified in the Bond
Resolution.
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ARTICLE FOUR
REGISTRAR
Section 4.01. Security Register-Transfers and Exchanges.
The Bank agrees to keep and maintain for and on behalf of the
Issuer at the Bank Office books and records (herein sometimes
referred to as the "Security Register") for recording the names and
addresses of the Holders of the Securities, the transfer, exchange,
and replacement of the Securities and the payment of the principal
of and interest on the Securities to the Holders and containing
such other information as may be reasonably required by the Issuer
and subject to such reasonable regulations as the Issuer and the
Bank may prescribe. All transfers, exchanges, and replacements of
Securities shall be noted in the Security Register.
Every Security surrendered for transfer or exchange shall be
duly endorsed or be accompanied by a written instrument of
transfer, the signature on which has been guaranteed by an officer
of a federal or state bank or a member of the National Association
of Securities Dealers, such written instrument to be in a form
satisfactory to the Bank and duly executed by the Holder thereof or
his agent duly authorized in writing.
The Bank may request any supporting documentation it feels
necessary to effect a re-registration, transfer, or exchange of the
Securities.
To the extent possible and under reasonable circumstances, the
Bank agrees that, in relation to an exchange or transfer of
Securities, the exchange or transfer by the Holders thereof will be
completed and new Securities delivered to the Holder or the
assignee of the Holder in not more than three (3) business days
after the receipt of the Securities to be cancelled in an exchange
or transfer and the written instrument of transfer or request for
exchange duly executed by the Holder, or his duly authorized agent,
in form and manner satisfactory to the Paying Agent/Registrar.
The Texas Bank agrees to keep and maintain for and on behalf
of the Issuer, in Texas, a duplicate of the Security Register.
Section 4.02. Securities.
The Issuer shall provide an adequate inventory of printed
Securities to facilitate transfers or exchanges thereof. The Bank
covenants that the inventory of printed Securities will be kept in
safekeeping pending their use and reasonable care will be exercised
by the Bank in maintaining such Securities in safekeeping, which
shall be not less than the care maintained by the Bank for debt
securities of other governments or corporations for which it serves
as registrar, or that is maintained for its own securities.
02476671951128
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Section 4.03. Form of the security Register.
The Bank, as Registrar, will maintain the security Register
relating to the registration, payment, transfer, and exchange of
the Securities in accordance with the Bank's general practices and
procedures in effect from time to time. The Bank shall not be
obligated to maintain such Security Register in any form other than
those which the Bank has currently available and currently utilizes
at the time.
The security Register may be maintained in written form or in
any other form capable of being converted into written form within
a reasonable time.
Section 4.04. List of Security Holders.
The Bank will provide the Issuer at any time requested by the
Issuer, upon payment of the required fee, a copy of the information
contained in the Security Register. The Issuer may also inspect
the information contained in the Security Register at any time the
Bank is customarily open for business, provided that reasonable
time is allowed the Bank to provide an up-to-date listing or to
convert the information into written form.
The Bank will not release or disclose the contents of the
Security Register to any person other than to, or at the written
request of, an authorized officer or employee of the Issuer, except
upon receipt of a court order or as otherwise required by law.
Upon receipt of a court order and prior to the release or
disclosure of the contents of the Security Register, the Bank will
notify the Issuer so that the Issuer may contest the court order or
such release or disclosure of the contents of the Security
Register.
Section 4.05. Return of cancelled Securities.
The Bank will, at such reasonable intervals as it determines,
surrender to the Issuer, Securities in lieu of which or in exchange
for which other Securities have been issued, or which have been
paid.
Section 4.06. Mutilated, Destroyed,
c;ecurities.
Lost, or Stolen
The Issuer hereby instructs the Bank, subject to the
provisions of the Bond Resolution, to deliver and issue securities
in exchange for or in lieu of mutilated, destroyed, lost, or stolen
Securities as long as the same does not result in an overissuance.
In case any Security shall be mutilated, destroyed, lost, or
stolen, the Bank, in its discretion, may execute and deliver a
D247116719:il123
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replacement Security of like form and tenor, and in the same
denomination and bearinq a number not contemporaneously
outstanding, in exchanqe and substitution for such mutilated
Security, or in lieu of and in substitution for such destroyed,
lost, or stolen Security, only upon (i) the filinq by the Holder
thereof with the Bank of evidence satisfactory to the Bank of the
destruction, loss, or theft of such Security, and of the
authenticity of the ownership thereof and (ii) the furnishinq to
the Bank of indemnification in an amount satisfactory to hold the
Issuer and the Bank harmless. All expenses and charqes associated
with such indemnity and with the preparation, execution, and
delivery of a replacement Security shall be borne by the Holder of
the Security mutilated, destroyed, lost, or stolen.
Section 4.07. Transaction Information to the Issuer.
The Bank will, within a reasonable time after receipt of
written request from the Issuer, furnish the Issuer information as
to the Securities it has paid pursuant to Section 3. o 1 hereof,
securities it has delivered upon the transfer or exchanqe of any
Securities pursuant to section 4.01 hereof, and Securities it has
delivered in exchange for or in lieu of mutilated, destroyed, lost,
or stolen Securities pursuant to section 4.06 hereof.
ARTICLE FIVE
THE BANK
Section 5.01. Duties of the Bank.
The Bank undertakes to perform the duties set forth herein and
agrees to use reasonable care in the performance thereof.
Section 5.02. Reliance on the Documents, Etc.
(a) The Bank may conclusively rely, as to the truth of the
statements and correctness of the opinions expressed therein, on
certificates or opinions furnished to the Bank.
(b) The Bank shall not be liable for any error of judgment
made in qood faith by a Responsible Officer, unless it shall be
proved that the Bank was neqliqent in ascertaininq the pertinent
facts.
(c) No provisions of this Agreement shall require the Bank to
expend or risk its own funds or otherwise incur any financial
liability for performance of any of its duties hereunder, or in the
exercise of any of its riqhts or powers, if it shall have
reasonable grounds for believinq that repayment of such funds or
adequate indemnity satisfactory to it aqainst such risks or
liability is not assured to it.
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,...,
(d) The Bank may rely and shall be protected in actinq or
refraininq from actinq upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent,
order, bond, note, security, or other paper or document believed by
it to be qenuine and to have been siqned or presented by the proper
party or parties. Without limitinq the qenerality of the foreqoinq
statement, the Bank need not examine the ownership of any
Securities, but is protected in actinq upon receipt of Securities
containinq an endorsement or instruction of transfer or power of
transfer which appears on its face to be siqned by the Holder or
an aqent of the Holder. The Bank shall not be bound to make any
investiqation into the facts or matters stated in a resolution,
certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, note, security, or other
paper or document supplied by Issuer.
(e) The Bank may consult with counsel, and the written advice
of such counsel or any opinion of counsel shall be full and
complete authorization and protection with respect to any action
taken, suffered, or omitted by it hereunder in qood faith and in
reliance thereon.
(f) The Bank may exercise any of the powers hereunder and
perform any duties hereunder either directly or by or throuqh
aqents or attorneys of the Bank.
Section 5.03. Becitals of the Issuer.
The recitals contained herein with respect to the Issuer and
in the Securities shall be taken as the statements of the Issuer,
and the Bank assumes no responsibility for their correctness.
The Bank shall in no event be liable to the Issuer, any Holder
or Holders of any Security, or any other Person for any amount due
on any security from its own funds.
Section 5.04. May Hold securities.
The Bank, in its individual or any other capacity, may become
the owner or pledqee of Securities and may otherwise deal with the
Issuer with the same riqhts it would have if it were not the Payinq
Aqent/Reqistrar, or any other aqent.
Section 5.05. ~M~o~nue~v~s~H~e_.l~d~b~v~--~t=h~e=-.B~a~nKkL---------~s~e~p~a~r~a~t:e~ Account/Collateralization.
A separate account shall at all times be kept and maintained
by the Bank for the receipt, safekeepinq and disbursement of moneys
received from the Issuer hereunder for the payment of the
securities, and money deposited to the credit of such account until
paid to the Holders of the Securities shall be continuously
0247667.961128
,,
collateralized by securities or obligations which qualify and are
eligible under the laws of the State of Texas to secure and be
pledged as collateral for accounts of the Issuer to the extent such
money is not insured by the Federal Deposit Insurance Corporation.
Payments made from such account shall be made by check drawn on
such account unless the owner of such Securities shall, at its own
expense and risk, request such other medium of payment.
The Bank shall be under no liability for interest on any money
received by it hereunder.
Subject to the applicable unclaimed property laws of the state
of Texas, any money deposited with the Bank for the payment of the
principal, premium (if any), or interest on any Security and
remaining unclaimed for four years after final maturity of the
Security has become due and payable will be paid by the Bank to the
Issuer, and the Holder of such Security shall thereafter look only
to the Issuer for payment thereof, and all liability of the Bank
with respect to such moneys shall thereupon cease.
section 5.06. Indemnification.
To the extent permitted by law, the Issuer agrees to indemnify
the Bank for, and hold it harmless against, any loss, liability, or
expense incurred without negligence or bad faith on its part,
arising out of or in connection with its acceptance or
administration of its duties hereunder, including the cost and
expense against any claim or liability in connection with the
exercise or performance of any of its powers or duties under this
Agreement.
Section 5.07. Interpleader.
The Issuer and the Bank agree that the Bank may seek
adjudication of any adverse claim, demand, or controversy over its
person as well as funds on deposit, in either a Federal or state
District Court located in the state and county where either the
Bank Office or the administrative office of the Issuer is located,
and agree that service of process by certified or registered mail,
return receipt requested, to the address referred to in
Section 6.03 of this Agreement shall constitute adequate service.
The Issuer and the Bank further agree that the Bank has the right
to file a Bill of Interpleader in any court of competent
jurisdiction to determine the rights of any Person claiming any
interest herein.
Section 5.08. PT Services.
It is hereby represented and warranted that, in the event the
Securities are otherwise qualified and accepted for "Depository
Trust Company" services or equivalent depository trust services by
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other organizations, the Bank has the capability and, to the extent
within its control, will comply with the "Operational Arrangements"
which establishes requirements for securities to be eligible for
such type depository trust services, including, but not limited to,
requirements for the timeliness of payments and funds availability,
transfer turnaround time, and notification of redemptions and
calls.
ARTICLE SIX
MISCELLANEOUS PROVISIONS
section 6.01. Amendment.
This Agreement may be amended only by an agreement in writing
signed by both of the parties hereto.
section 6.02. Assignment.
This Agreement may not be assigned by either party without the
prior written consent of the other.
section 6.03. Notices.
Any request, demand, authorization, direction, notice,
consent, waiver, or other document provided or permitted hereby to
be given or furnished to the Issuer or the Bank shall be mailed or
delivered to the Issuer or the Bank, respectively, at the addresses
shown on page 12 of this Agreement.
Section 6.04. Effect of Headings.
The Article and Section headings herein are for convenience
only and shall not affect the construction hereof.
Section 6.05. Successors and Assigns.
All covenants and aqreements herein by the Issuer shall bind
its successors and assigns, whether so expressed or not.
section 6.06. severability.
In case any provision herein shall be invalid, illegal, or
unenforceable, the validity, legality, and enforceability of the
remaining provisions shall not in any way be affected or impaired
thereby.
Section 6.07. Benefits of Agreement.
Nothing herein, express or implied, shall give to any Person,
other than the parties hereto and their successors hereunder, any
benefit or any legal or equitable right, remedy, or claim
02476671001128
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hereunder.
Section 6.08. Entire Agreement.
This Agreement and the Bond Resolution constitute the entire
agreement between the parties hereto relative to the Bank acting as
Paying Agent/Registrar and if any conflict exists between this
Agreement and the Bond Resolution, the Bond Resolution shall
govern.
Section 6.09. counterparts.
This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original and all of which shall
constitute one and the same Agreement.
Section 6.10. Termination.
This Agreement will terminate (i) on the date of final payment
of the principal of and interest on the Securities to the Holders
thereof or (ii) may be earlier terminated by either party upon
sixty (60) days written notice; provided, however, an early
termination of this Agreement by either party shall not be
effective until (a) a successor Paying Agent/Registrar has been
appointed by the Issuer and such appointment accepted and (b)
notice given to the Holders of the Securities of the appointment of
a successor Paying Agent/Registrar. Furthermore, the Bank and the
Issuer mutually agree that the effective date of an early
termination of this Agreement shall not occur at any time which
would disrupt, delay, or otherwise adversely affect the payment of
the Securities.
Upon an early termination of this Agreement, the Bank agrees
to promptly transfer and deliver the Security Register (or a copy
thereof), together with other pertinent books and records relating
to the Securities, to the successor Paying Agent/Registrar
designated and appointed by the Issuer.
The provisions of Section 1. 02 and of Article Five shall
survive and remain in full force and effect following the
termination of this Agreement.
Section 6.11. Governing Law.
This Agreement shall be construed in accordance with and
governed by the laws of the State of Texas.
D247116719l51128
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r ..
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the day and year first above written.
(SEAL]
,., ... -
(SEAL)
ATTEST:
Title:
D24166719l11128
Address:
P. o. Box 2000
Lubbock, Texas 79457
NORWEST BANK MINNESOTA
NATIONAL ASSOCIATION
Minneapolis, Minnesota
BY __ ~~~~~~~~~~
Mailing
Norwest er
Sixth and Marquette
Minneapolis, Minnesota 55479-0069
Delivery Address:
Norwest Center
Sixth and Marquette
Minneapolis, Minnesota 55479-0069
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I • NORWEST Corporate Trust l
SERVICES PROVIDED: ANNEX A
1. Pxoccssing of zcgistcrcd,lbearcr bonds including: payment of principal and interest when due; originalzcgistrations, authentication and delivery of
the certificates for closing; tax withholding and tax reporting (along with any other governmental reporting) as required under tbc rules and
zcgulations of the Internal Revenue Service; tntnsfer processing and zc-rcgistration of certificates, and compliance with applicable industty
ltandards; notific:ation of and proc:cssing for early bond redemption's; upon J:Cceipt of satisfactoty bonds of indemnity issuance on ne-w bonds in
substitution for bond& lost, stolen, or destroyed; and safekeeping of bond certificate UM:ntories.
Retention and dcst:ruction of canceled and matured bonds/coupons including: adoption of an appropriate zctention period; destruction of canceled
and matured bonds/coupons upon expiration of the zctcntion period; and certification as to the destruction of the bonds/coupons to the issuer
upon request.
3. On request by the issuer, reports zclating to the processing of zcgistcrcdjbcarer bond& including: holders zcports, amortization and debt service
schedules.
4. Debt Scl'Yice and Fcc Billing statements to be delivered at least 25 days prior to the actual payment date.
S. Additional scl'Yiccs as appropriate to the account under the terms of the issue and as agreed upon between the issuer and No:twcst.
ISSUER DUTIES:
1. Norwcst Bank is requiring J:Cceipt of immediately available fund& by 10:00 A. M. (cat) on payment date. The issuer is responsible for any and an
compensation claims by bondholders resulting from unavailability of funds to make timely payments to bondholders. Norwest will not make
payment to the bondholders until funds have been J:Cceived and collected. ACH (Automatic Cearing House) direct debit is an easy and efficient
method for tntnsfcrring fund electronically and you haw use of funds until payment date. Payments made by check will have to be received by
NorM::st Bank five days prior to payment date or you will be subject to a fcc. Please c:all (612) 667-4907 for more information.
2. To notify Norwcst, in writing, at least 45 days in advance of any caU for redemption whether by sinking fund or an optional c:all on any part or aU of
the bond issue.
SERVICE ASSUMPTIONS:
1. Nol"Mi:St agrees to usc its best effort in providing prompt scl'Yiccs. Jt further agrees to exercise c:arc in the performance of these services. Norwcst
assumes responsibility, however, only for its own gross negligence or misconduct or that of its officers, employees or agents. It expressly disclaims
any responsibility for any loss arising out of any act or omission by the issuer, or any of its officers, employees, or agents thCJ:COf.
2. Nol"Mi:St will perform all of the services provided for and requ~ by law in the State of Minnesota in accordance with all applic:ablc statues, rules
and zcgulation.s, or supervisory authorizes and other applicable Jaw. It will make IMI11ablc any and aU ICCOfd&, reports and information as required
to appropriate supcl'Yiso:y authorities..
3. No1"Mi:St may conclusively zcly upon and shall be protected in acting upon any statement, certifacatc, notice request or other document reasonably
believed by it to be genuine or to haw been signed or presented by tbc person or persons reasonably believed to be authorized to sign, countersign,
or e:xccutc the same.
4. Norwest's appointment as Registrar and Paying Agent may be terminated by either party by giving written notice of intention to terminate at least
ninety (90) days before tbc specified termination date in or on an earlier date if mutuaUy agreed upon.
PHYSICAL
ORIGINAL ISSUANCE: $400.00
(Issuance up to 200 certificates)
$1.50/certificate in excess of 200 certificates
ANNUAL FEE: $300.00
$3.00/yearlbondholder in excess of 120 bondholders
$3 .50/maturity bond payment
$4.50/early redemption bond payment
$ .45/coupon payment
BOOK ENTRY
ORIGINAL ISSUANCE: $200.00
ANNUAL FEE: $125.00
DERIVATIVE FEATURES: Additional fees applicable.
• ..Itt.. •• ••••• NORWEST BANKS
XTRAORDINARY OUT-OF-POCKET EXPENSES ADDITIONAL
••••• .......
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...
•
PAXING AGENT/REGISTRAR AGREEMENT
THIS AGREEMENT entered into as of May 11, 1995 (this
11Aqreement11 ), by and between the City of Lubbock, Texas (the
"Issuer"), and Norwest Bank Texas, National Association, Lubbock,
Texas (the "Texas Bank") Norwest Bank Minnesota, National
Association, Minneapolis, Minnesota, a bankinq association duly
orqanized and existinq under the laws of the United States of
America (the "Bank").
RECITALS
WHEREAS, the Issuer has duly authorized and provided for the
issuance of its "City of Lubbock, Texas, Tax and Airport Surplus
Revenue certificates of Obliqation, Series 1995" (the "Securities")
in the aqqreqate principal amount of $900,000, such Securities to
be issued in fully reqistered form only as to the payment of
principal thereof and interest thereon; and
WHEREAS; the Securities are scheduled to be delivered to the
initial purchasers thereof on or about June 15, 1995; and
WHEREAS, the Issuer has selected the Bank to serve as Payinq
Aqent/Reqistrar and the Texas Bank to serve as co-Reqistrar in
connection with the payment of the principal of, premium, if any,
and interest on said Securities and with respect to the
reqistration, transfer, and exchanqe thereof by the reqistered
owners thereof; and
WHEREAS, the Bank and the Texas Bank have aqreed to serve in
such capacities for and on behalf of the Issuer and the Bank has
full power and authority to perform and serve as Payinq
Aqent/Reqistrar for the Securities and the Texas Bank has full
power and authority to perform and serve as co-Reqistrar for the
Securities;
NOW, THEREFORE, it is mutually aqreed as follows:
ARTICLE ONE
APPOINTMENT OF BANK AS
PAYING AGENT AND REGISTRAR;
APPOINTMENT OF TEXAS BANK AS CO-REGISTRAR
Section 1.01. Appointment.
The Issuer hereby appoints the Bank to serve as Payinq Aqent
with respect to the Securities, and, as such Payinq Aqent, the Bank
shall be responsible for payinq on behalf of the Issuer the
principal of, premium (if any), and interest on the Securities as
the same become due and payable to the reqistered owners thereof;
all in accordance with this Aqreement and the "Bond Resolution"
(hereinafter defined). The Issuer hereby appoints the Bank as
Reqistrar with respect to the Securities and, as Reqistrar for the
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Securities, the Bank shall keep and maintain for and on behalf of
the Issuer books and records as to the ownership of said Securities
and with respect to the transfer and exchange thereof as provided
herein and in the "Bond Resolution". The Issuer hereby appoints
the Texas Bank as co-Registrar with respect to the Securities and,
as co-Registrar for the Securities the Texas Bank shall keep and
maintain a duplicate copy, in Texas, for an on behalf of the Issuer
books and records as to the ownership of said Securities and with
respect to the transfer and exchange thereof.
The Bank hereby accepts its appointment, and agrees to serve
as the Paying Agent and Registrar for the Securities. The Texas
Bank hereby accepts its appointment, and agrees to serve as co-
Registrar for the Securities.
Section 1.02. Compensation.'
As compensation for the Bank's services as Paying Agent/
Registrar, the Issuer hereby agrees to pay the Bank the fees and
amounts set forth in Annex A attached hereto for the first year of
this Agreement and thereafter the fees and amounts set forth in the
Bank's current fee schedule then in effect for services as Paying
Agent/Registrar for municipalities, which shall be supplied to the
Issuer on or before 90 days prior to the close of the Fiscal Year
of the Issuer, and shall be effective upon the first day of the
following Fiscal Year. The co-Registrar will not be entitled to
compensation.
In addition, the Issuer agrees to reimburse the Bank upon its
request for all reasonable expenses, disbursements, and advances
incurred or made by the Bank in accordance with any of the
provisions hereof (including the reasonable compensation and the
expenses and disbursements of its agents and counsel).
ARTICLE TWO
DEFINITIONS
section 2.01. Definitions.
For all purposes of this Agreement, except as otherwise
expressly provided or unless the context otherwise requires:
"Acceleration Date" on any Security means the date on and
after which the principal or any or all installments of
interest, or both, are due and payable on any Security which
has become accelerated pursuant to the terms of the Security.
"Bank Office11 means the principal corporate trust office
of the Bank as indicated on page 12 hereof. The Bank will
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,....
"Bond Resolution" means the resolution, order, or
ordinance of the governing body of the Issuer pursuant to
which the Securities are issued, certified by the Secretary or
any other officer of the Issuer and delivered to the Bank.
"Fiscal Year" means the fiscal year of the Issuer, ending
September 30.
"Holder" and "Security Holder11 each means the Person in
whose name a Security is registered in the Security Register.
"Issuer Request" and "Issuer Order" means a written
request or order signed in the name of the Issuer by the
Mayor, City Secretary, City Manager, or Assistant City Manager
for Financial Services, any one or more of said officials, and
delivered to the Bank.
"Legal Holiday" means a day on which the Bank is required
or authorized to be closed.
"Person" means any individual, corporation, partnership,
joint venture, association, joint stock company, trust,
unincorporated organization, or government, or any agency or
political subdivision of a government.
"Predecessor securities•• of any particular Security means
every previous Security evidencing all or a portion of the
same obligation as that evidenced by such particular Security
(and, for the purposes of this definition, any mutilated,
lost, destroyed, or stolen Security for which a replacement
Security has been registered and delivered in lieu thereof
pursuant to Section 4.06 hereof and the Resolution).
"Redemption Date" when used with respect to any Bond to
be redeemed means the date fixed for such redemption pursuant
to the terms of the Bond Resolution.
"Responsible Officer" when used with respect to the Bank
means the Chairman or Vice-Chairman of the Board of Directors,
the Chairman or Vice-Chairman of the Executive Committee of
the Board of Directors, the President, any Vice President, the
Secretary, any Assistant Secretary, the Treasurer, any
Assistant Treasurer, the Cashier, any Assistant Cashier, any
Trust Officer or Assistant Trust Officer, or any other officer
of the Bank customarily performing functions similar to those
performed by any of the above designated officers and also
means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of
his knowledge of and familiarity with the particular subject.
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"Security Register" means a register maintained by the
Bank, a duplicate of which is maintained in Texas by the Texas
Bank, on behalf of the Issuer providing for the registration
and transfer of Securities.
"Stated Maturity" means the date specified in the Bond
Resolution the principal of a Security is scheduled to be due
and payable.
Section 2.02. Other Definitions.
The terms "Bank," "Texas Bank", "Issuer, 11 and "Securities
(Security) " have the meanings assigned to them in the recital
paragraphs of this Agreement.
The term "Paying Agent/Registrar" refers to the Bank in the
performance of the duties and functions of this Agreement.
ARTICLE THREE
PAYING AGENT
Section 3.01. Duties of the Paying Agent.
As Paying Agent, the Bank shall, provided adequate collected
funds have been provided to it for such purpose by or on behalf of
the Issuer, pay on behalf of the Issuer the principal .of each
security at its stated Maturity, Redemption Date, or Acceleration
Date, to the Holder upon surrender of the Security to the Bank at
the Bank Office.
As Paying Agent, the Bank shall, provided adequate collected
funds have been provided to it for such purpose by or on behalf of
the Issuer, pay on behalf of the Issuer the interest on each
Security when due, by computing the amount of interest to be paid
each Holder and making payment thereof to the Holders of the
Securities (or their Predecessor Securities) on the Record Date.
All payments of principal and/or interest on the Securities to the
registered owners shall be accomplished ( 1) by the issuance of
checks, payable to the registered owners, drawn on the fidicuary
account provided in Section 5. 05 hereof, sent by United States
mail, first class, postage prepaid, to the address appearing on the
Security Register or (2) by such other method, acceptable to the
Bank, requested in writing by the Holder at the Holder's risk and
expense.
Section 3.02. Payment pates.
The Issuer hereby instructs the Bank to pay the principal of
and interest on the Securities at the dates specified in the Bond
Resolution.
95112810247642
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ARTICLE FOUR
REGISTRAR
Section 4.01. Security Register-Transfers and Exchanges.
The Bank agrees to keep and maintain for and on behalf of the
Issuer at the Bank Off ice books and records (herein sometimes
referred to as the 11Security Register11 ) for recording the names and
addresses of the Holders of the Securities, the transfer, exchange,
and replacement of the Securities and the payment of the principal
of and interest on the Securities to the Holders and containing
such other information as may be reasonably required by the Issuer
and subject to such reasonable regulations as the Issuer and the
Bank may prescribe. All transfers, exchanges, and replacements of
Securities shall be noted in the Security Register.
Every Security surrendered for transfer or exchange shall be
duly endorsed or be accompanied by a written instrument of
transfer, the signature on which has been guaranteed by an officer
of a federal or state bank or a member of the National Association
of Securities Dealers, such written instrument to be in a form
satisfactory to the Bank and duly executed by the Holder thereof or
his agent duly authorized in writing.
The Bank may request any supporting documentation it feels
necessary to effect a re-registration, transfer, or exchange of the
Securities.
To the extent possible and under reasonable circumstances, the
Bank agrees that, in relation to an exchange or transfer of
Securities, the exchange or transfer by the Holders thereof will be
completed and new Securities delivered to the Holder or the
assignee of the Holder in not more than three (3) business days
after the receipt of the Securities to be cancelled in an exchange
or transfer and the written instrument of transfer or request for
exchange duly executed by the Holder, or his duly authorized agent,
in form and manner satisfactory to the Paying Agent/Registrar.
The Texas Bank agrees to keep and maintain for and on behalf
of the Issuer, in Texas, a duplicate of the Security Register.
Section 4.02. Securities.
The Issuer shall provide an adequate inventory of printed
Securities to facilitate transfers or exchanges thereof. The Bank
covenants that the inventory of printed Securities will be kept in
safekeeping pending their use and reasonable care will be exercised
by the Bank in maintaining such Securities in safekeeping, which
shall be not less than the care maintained by the Bank for debt
901l2810247642
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securities of other qovernments or corporations for which it serves
as reqistrar, or that is maintained for its own securities.
Section 4.03. Form of tbe Security Begister.
The Bank, as Reqistrar, will maintain the Security Reqister
relatinq to the reqistration, payment, transfer, and exchanqe of
the Securities in accordance with the Bank's qeneral practices and
procedures in effect from time to time. The Bank shall not be
obliqated to maintain such Security Reqister in any form other than
those which the Bank has currently available and currently utilizes
at the time.
The Security Reqister may be maintained in written form or in
any other form capable of beinq converted into written form within
a reasonable time.
Section 4.04. List of Security Holders.
The Bank will provide the Issuer at any time requested by the
Issuer, upon payment of the required fee, a copy of the information
contained in the Security Reqister. The Issuer may also inspect
the information contained in the Security Reqister at any time the
Bank is customarily open for business, provided that reasonable
time is allowed the Bank to provide an up-to-date listinq or to
convert the information into written form.
The Bank will not release or disclose the contents of the
Security Reqister to any person other than to, or at the written
request of, an authorized officer or employee of the Issuer, except
upon receipt of a court order or as otherwise required by law.
Upon receipt of a court order and prior to the release or
disclosure of the contents of the Security Reqister, the Bank will
notify the Issuer so that the Issuer may contest the court order or
such release or disclosure of the contents of the Security
Reqister.
Section 4.05. Return of cancelled Securities.
The Bank will, at such reasonable intervals as it determines,
surrender to the Issuer, Securities in lieu of which or in exchanqe
for which other Securities have been issued, or which have been
paid.
Section 4.06. Mutilated. Destroyed. Lost, or Stolen
Securities.
The Issuer hereby instructs the Bank, subject to the
provisions of the Bond Resolution, to deliver and issue Securities
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in exchange for or in lieu of mutilated, destroyed, lost, or stolen
Securities as long as the same does not result in an overissuance.
In case any Security shall be mutilated, destroyed, lost, or
stolen, the Bank, in its discretion, may execute and deliver a
replacement Security of like form and tenor, and in the same
denomination and bearing a number not contemporaneously
outstanding, in exchange and substitution for such mutilated
Security, or in lieu of and in substitution for such destroyed,
lost, or stolen Security, only upon (i) the filing by the Holder
thereof with the Bank of evidence satisfactory to the Bank of the
destruction, loss, or theft of such Security, and of the
authenticity of the ownership thereof and (ii) the furnishing to
the Bank of indemnification in an amount satisfactory to hold the
Issuer and the Bank harmless. All expenses and charges associated
with such indemnity and with the preparation, execution, and
delivery of a replacement Security shall be borne by the Holder of
the Security mutilated, destroyed, lost, or stolen.
Section 4.07. Transaction Information to the Issuer.
The Bank will, within a reasonable time after receipt of
written request from the Issuer, furnish the Issuer information as
to the Securities it has paid pursuant to Section 3.01 hereof,
Securities it has delivered upon the transfer or exchange of any
Securities pursuant to Section 4.01 hereof, and Securities it has
delivered in exchange for or in lieu of mutilated, destroyed, lost,
or stolen Securities pursuant to Section 4.06 hereof.
ARTICLE FIVE
THE BANK
Section 5.01. Duties of the Bank.
The Bank undertakes to perform the duties set forth herein and
agrees to use reasonable care in the performance thereof.
Section 5.02. Reliance on the Documents. Etc.
(a) The Bank may conclusively rely, as to the truth of the
statements and correctness of the opinions expressed therein, on
certificates or opinions furnished to the Bank.
(b) The Bank shall not be liable for any error of judgment
made in good faith by a Responsible Officer, unless it shall be
proved that the Bank was negligent in ascertaining the pertinent
facts.
(c) No provisions of this Agreement shall require the Bank to
expend or risk its own funds or otherwise incur any financial
1141128/0247842
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liability for performance of any of its duties hereunder, or in the
exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or
adequate indemnity satisfactory to it against such risks or
liability is not assured to it.
(d) The Bank may rely and shall be protected in acting or
refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent,
order, bond, note, security, or other paper or document believed by
it to be genuine and to have been signed or presented by the proper
party or parties. Without limiting the generality of the foregoing
statement, the Bank need not examine the ownership of any
Securities, but is protected in acting upon receipt of Securities
containing an endorsement or instruction of transfer or power of
transfer which appears on its face to be signed by the Holder or
an agent of the Holder. The Bank shall not be bound to make any
investigation into the facts or matters stated in a resolution,
certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, note, security, or other
paper or document supplied by Issuer.
(e) The Bank may consult with counsel, and the written advice
of such counsel or any opinion of counsel shall be full and
complete authorization and protection with respect to any action
taken, suffered, or omitted by it hereunder in good faith and in
reliance thereon.
(f) The Bank may exercise any of the powers hereunder and
perform any duties hereunder either directly or by or through
agents or attorneys of the Bank.
Section 5.03. Recitals of the Issuer.
The recitals contained herein with respect to the Issuer and
in the Securities shall be taken as the statements of the Issuer,
and the Bank assumes no responsibility for their correctness.
The Bank shall in no event be liable to the Issuer, any Holder
or Holders of any Security, or any other Person for any amount due
on any Security from its own funds.
Section 5.04. May Hold Securities.
The Bank, in its individual or any other capacity, may become
the owner or pledgee of Securities and may otherwise deal with the
Issuer with the same rights it would have if it were not the Paying
Agent/Registrar, or any other agent.
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section 5.05. ~M~o~n~e~v~s~H~e~l~d~b~v~---t~h==e~B~a~n=k~--------~s~e~p~a~rLa~t~e
Account/Collateralization.
A separate account shall at all times be kept and maintained
by the Bank for the receipt, safekeeping and disbursement of moneys
received from the Issuer hereunder for the payment of the
Securities, and money deposited to the credit of such account until
paid to the Holders of the Securities shall be continuously
collaterialized by securities or obligations which qualify and are
eligible under the laws of the State of Texas to secure and be
pledged as collateral for accounts of the Issuer to the extent such
money is not insured by the Federal Deposit Insurance Corporation.
Payments made from such account shall be made by check drawn on
such account unless the owner of such Securities shall, at its own
expense and risk, request such other medium of payment.
The Bank shall be under no liability for interest on any money
received by it hereunder.
Subject to the applicable unclaimed property laws of the state
of Texas, any money deposited with the Bank for the payment of the
principal, premium (if any), or interest on any Security and
remaining unclaimed for four years after final maturity of the
Security has become due and payable will be paid by the Bank to the
Issuer, and the Holder of such Security shall thereafter look only
to the Issuer for payment thereof, and all liability of the Bank
with respect to such moneys shall thereupon cease.
Section 5.06. Indemnification.
To the extent permitted by law, the Issuer agrees to indemnify
the Bank for, and hold it harmless against, any loss, liability, or
expense incurred without negligence or bad faith on its part,
arising out of or in connection with its acceptance or
administration of its duties hereunder, including the cost and
expense against any claim or liability in connection with the
exercise or performance of any of its powers or duties under this
Agreement.
Section 5.07. Interpleader.
The Issuer and the Bank agree that the Bank may seek
adjudication of any adverse claim, demand, or controversy over its
person as well as funds on deposit, in either a Federal or State
District Court located in the state and county where either the
Bank Office or the administrative office of the Issuer is located,
and agree that service of process by certified or registered mail,
return receipt requested, to the address referred to in
Section 6.03 of this Agreement shall constitute adequate service.
The Issuer and the Bank further agree that the Bank has the right
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to file a Bill of Interpleader in any court of competent
jurisdiction to determine the rights of any Person claiming any
interest herein.
Section 5.08. DT Services.
It is hereby represented and warranted that, in the event the
Securities are otherwise qualified and accepted for "Depository
Trust Company" services or equivalent depository trust services by
other organizations, the Bank has the capability and, to the extent
within its control, will comply with the "Operational Arrangements"
which establish requirements for securities to be eligible for such
type depository trust services, including, but not limited to,
requirements for the timeliness of payments and funds availability,
transfer turnaround time, and notification of redemptions and
calls.
ARTICLE SIX
MISCELLANEOUS PROVISIONS
Section 6.01. Amendment.
This Agreement may be amended only by an agreement in writing
signed by both of the parties hereto.
Section 6.02. Assignment.
This Agreement may not be assigned by either party without the
prior written consent of the other.
Section 6.03. Notices.
Any request, demand, authorization, direction, notice,
consent, waiver, or other document provided or permitted hereby to
be given or furnished to the Issuer or the Bank shall be mailed or
delivered to the Issuer or the Bank, respectively, at the addresses
shown on page 12 of this Agreement.
Section 6.04. Effect of Headings.
The Article and Section headings herein are for convenience
only and shall not affect the construction hereof.
Section 6.05. Successors and Assigns.
All covenants and agreements herein by the Issuer shall bind
its successors and assigns, whether so expressed or not.
section 6.06. severability.
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In case any provision herein shall be invalid, illegal, or
unenforceable, the validity, legality, and enforceability of the
remaining provisions shall not in any way be affected or impaired
thereby.
Section 6.07. Benefits of Agreement.
Nothing herein, express or implied, shall give to any Person,
other than the parties hereto and their successors hereunder, any
benefit or any legal or equitable right, remedy, or claim
hereunder.
Section 6.08. Entire Agreement.
This Agreement and the Bond Resolution constitute the entire
agreement between the parties hereto relative to the Bank acting as
Paying Agent/Registrar and if any conflict exists between this
Agreement and the Bond Resolution, the Bond Resolution shall
govern.
Section 6.09. Counterparts.
This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original and all of which shall
constitute one and the same Agreement.
Section 6.10. Termination.
This Agreement will terminate (i) on the date of final payment
of the principal of and interest on the Securities to the Holders
thereof or (ii) may be earlier terminated by either party upon
sixty (60) days written notice; provided, however, an early
termination of this Agreement by either party shall not be
effective until (a) a successor Paying Agent/Registrar has been
appointed by the Issuer and such appointment accepted and (b)
notice given to the Holders of the Securities of the appointment of
a successor Paying Agent/Registrar. Furthermore, the Bank and the
Issuer mutually agree that the effective date of an early
termination of this Agreement shall not occur at any time which
would disrupt, delay, or otherwise adversely affect the payment of
the Securities.
Upon an early termination of this Agreement, the Bank agrees
to promptly transfer and deliver the Security Register (or a copy
thereof), together with other pertinent books and records relating
to the Securities, to the successor Paying Agent/Registrar
designated and appointed by the Issuer.
0!11128/D247642
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,....
The provisions of Section 1. 02 and of Article Five shall
survive and remain in full force and effect following the
termination of this Agreement.
Section 6.11. Governing Law.
This Agreement shall be construed in accordance with and
governed by the laws of the State of Texas.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the day and year first above written.
[SEAL]
(SEAL)
ATTEST:
00112810247642
Address:
P. o. Box 2000
Lubbock, Texas 79457
NORWEST BANK MINNESOTA
NATIONAL ASSOCIATION
Minneapolis, Minnesota
~-'~~_L_JO; _/ BY ~~~~~~~~~~~~~~~~ Mail~
Norwest Center
Sixth and Marquette
Minneapolis, Minnesota 55479-0069
Delivery Address:
Norwest Center
Sixth and Marquette
Minneapolis, Minnesota 55479-0069
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I • NORWEST Corporate Trust l
,...,
SERVICES PROVIDED: ANNEX A
3.
4.
5.
Processing of registc:rcd/bcarer bonds including: payment of principal and intcrc:st when due; original registrations, authentication and delivery of
the certificates for closing; tax withholding and tax reporting (along lllith any other govemmental reportinl) as required under the rules and
regulations of the lntemal Revenue Service; tran.cf'er processing and re-registration of certificates, and compliance with applicable indusny
lta!ldal:ds; notifialtion of and processing for early bond redemption's; upon receipt of satisfactory bonds of mdemnity issuance on new bonds ill
aubstitution for bonds lost, stolen, or destroyed; and safekeeping of bond certificate inventories.
Retention and destruction of canceled and matured bonds/coupons including: adoption of an appropriate retention period; destruction of canceled
and matured bonds/coupons upon expiration of the retention period; and eertif"u::ation as to the destruction of the bonds/coupons to the issuer
upon request.
On request by the issuer, reports relating to the processing of registered/bearer bonds including: holders repons, amortization and debt ICJVice
schedules.
Debt Service and Fee Billing statements to be delivered at least 25 days prior to the actual payment date.
Additional services as appropriate to the account under the terms of the issue and as agreed upon between the issuer and NOIM:St.
ISSUER. DUTIES:
1. Norwest Bank is requiring receipt of immediately available funds by 10:00 A.M. (est) on payment date. 'Ibe issuer is rcspons~"ble for any and an
compensation claims by bondholders resulting fmm unavailability of funds to make timely payments to bondholders. Norwest will not make
payment to the bondholders until funds have been received and collected. ACH (Automatic Clearing House) direct debit is an easy and efficient
method for transferring fund dcctronicatly and you have use of funds until payment date. Payments made by check will have to be ~ by
Norwcst Bank five days prior to payment date or you will be subject to a fee. Please call (612) 667-4907 for more information.
1 To notify Norwest, in writing, at least 45 days in advance of any can for redemption whether by linking fund or an optional can on any part or an of
the bond issue.
SERVICE ASSUMPTIONS:
L Norwest agrees to usc its best effort in providing prompt services. It further agrees to exercise care in the performance of these scrvic:cs. Norwcst
assumes rcsponst"bility, however, only for its own gross negligence or misconduct or that of its officers, employees or agents. It expressly disclaims
atl)' responsibility for any loss arising out of any act or omission by the issuer, or any of its offiCers, employees, or agents thereof.
3.
NOJ'II/'CSt w:t11 perform all of the services provided for and required by law in the State of Minnesota in accordance with all applicable statues, rules
and regulations, or aupervi.sory authorizes and other applicable law. It will make available any and all records, reports and information as required
to appropriate supervisory authorities.
NOI'WCSt may conclusively rely upon and shall be protected in acting upon any statement, certificate, notice request or other document reasonably
beliCII'Cd by it to be genuine or to have been signed or presented by the person or peiSODS reasonably believed to be authorized to sign, countersign,
or execute the same.
4. Norwest's appointment as Registrar and Paying Agent may be terminated by either party by giving written notice of intention to terminate at least
ninety (90) days before the specified termination date in or on an earlier date if mutually agreed upon.
PHYSICAL
ORIGINAL ISSUANCE: $400.00
Ossuance up to 200 certificates)
$!.50/certificate in excess of 200 certificates
ANNUAL FEE: $300.00
$3.00/year/bondholder in excess of 120 bondholders
$3.50/maturity bond payment
$4.50/early redemption bond payment
$ .45/coupon payment
BOOK ENTRY
ORIGINAL ISSUANCE: $200.00
ANNUAL FEE: $125.00
DERIVATIVE PEA TURES: Additional fees applicable.
. . ..... ••••• NORWEsr BANKS
XTRAORDINARY OUT-OF-POCKET EXPENSES ADDITIONAL
••••• .. , ..
No Text
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•
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THE STATE OF TEXAS S
s COUNTY OF LUBBOCK S
s CITY OF LUBBOCK S
GENERAL CERTIFICATE
WE, the undersigned, Mayor and City Secretary, respectively,
of the City of Lubbock, Texas, DO HEREBY CERTIFY as follows:
1. That the total principal amount of indebtedness of the
City, including the proposed $4,690,000 "City of Lubbock, Texas,
General Obligation Bonds, Series 1995,11 $2,000,000 "City of
Lubbock, Texas, Tax and Hotel Occupancy Tax Surplus Revenue
Certificates of Obligation, Series 199511 , and $900,000 "City of
Lubbock, Texas, Tax and Airport surplus Revenue Certificates of
Obligation, Series 199511 , dated May 15, 1995, payable from ad
valorem taxes levied and collected by the City is as follows:
OUTSTANDING INDEBTEDNESS -----------------------
SERIES 1995 BONDS ------------------------------SERIES 1995 AIRPORT CERTIFICATES ---------------
SERIES 1995 HOTEL CERTIFICATES -----------------
$140,588,752
4,690,000
2,000,000
900.000
TOTAL INDEBTEDNESS -------------------------$148,178,752
2. That a debt service requirement schedule for the
City's above-described outstanding indebtedness as well as the
proposed $4,690,000 "City of Lubbock, Texas, General Obligation
Bonds, Series 1995,11 $2,000,000 "City of Lubbock, Texas, Tax and
Hotel Occupancy Tax Surplus Revenue Certificates of Obligation,
Series 199511 , and $900,000 "City of Lubbock, Texas, Tax and
Airport surplus Revenue Certificates of Obligation, Series 199511 ,
.dated May 15, 1995, is attached hereto as Exhibit A and made a
part of this certificate for all purposes.
3. That certain duly qualified and acting officers of
said City are as follows:
DAVID LANGSTON
BETTY M. JOHNSON
BOB N. CASS
MARK HINDMAN
MAYOR
CITY SECRETARY
CITY MANAGER
DIRECTOR OF SUPPORT SERVICES
CITY TREASURER
DIRECTOR OF FINANCE
4 • That said City is incorporated under the General
Laws of the State of Texas, and is operating under the Home Rule
Amendment to the Texas Constitution, Section 5, Article XI,
as amended in 1912; the City Charter was originally adopted at an
election held on December 27, 1917, and said Charter has not been
.~
amended or revised in any respect since May 7, 1988, the date of
the last Charter Amendment Election.
5. That the bond election held in the City on the 1st
day of May, 1993, was duly conducted and held in compliance with
the requirements of the Texas Election Code relating to bilingual
electton materials, instructions, supplies, etc., and the Federal
Voting Rights Act, as amended.
6. That the assessed value of all taxable property (net
of exemptions) in the City, as shown by the tax rolls for the year
1994, and which have been duly approved and are the latest
official assessment of taxable property in the City is as follows:
TOTAL ASSESSED TAXABLE VALUES OF
REAL AND PERSONAL PROPERTY-----------$5,087,312,020
7. Attached hereto as Exhibit B are true and correct
copies of Ordinance No. 5972, Ordinance No. 7533, Ordinance No.
8552, Ordinance No. 9120, Ordinance No. 9373, Ordinance No. 9689
and Ordinance No. 9722, which Ordinances relate to the
establishment and assessment by the City of a hotel occupancy tax,
as the same appear in the official records of the City, and a
schedule of the hotel occupancy taxes collected by the City for
the years shown is attached hereto as Exhibit c.
8. No valid petition of any kind or character, signed
by at least 5\ of the qualified electors of the City, has been
filed with or presented to the Mayor, City Secretary or any other
official of the city protestinq the issuance of the Certificates.
9. The City is not in default with respect to any
obliqation secured by Airport Revenue.
10. A schedule of the qross receipts, operatinq expenses
and net revenues of the city's Airport for the years stated is
attached hereto as Exhibit D.
95112810247635 -2-
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...
,..
,..,
WITNESS OUR HANDS
TEXAS, this the 11th day of
(City Seal)
951128/D247635
Texas
of
-3-
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EXHIBIT A
~
LUeM'IU ·i-n_,
CrrY 01' LUBBOCX. TEXAS
GENERAL OBLIOATION OESTSERVICE REQUIREM!Nn
NEW ISSUES
$2,000,000 TAX .AND $900,000
OtriSTANOING $4,690.000 HOTEL oa:tJP ANCY TAX SURPLUS REVENUE TAX AND AIRPORT SURPLUS REVENUE
FISCAL OENERAL GENERAL OBLIGATION BONDS. SERIES t99S CERTIFICATES 01' OBUOATION, SERIES t99S CERTIFICATES 01' OBUOATION, SERIES t99S
YEAR OBLIOATION DTO. 5 -l$-9$; PRINCIPAL DUE 2-U-9W OTO.S-15-95; PRINCIPAL OUEl-lS-90.01 OTO. 5 -!$ -9S; PRINCIPAL OUEl-15-96,4!0 COMBINED
ENDINO OEST INT. OUE2-IS-1996.ANO -u &l-IS INT. OUEl-lS-1996 AND EACH8-1S &:2-lS INT. OUE2-1S-1996.ANO EACHB-15 &2-15 REQUIREMENTS ORANDTOTALREQUIREM~
9-30 SERVICE PRINCIPAL INT. RATE I TOTAL PRINCIML INT. RATE INTEREST TOTAL PRINCIPAL INT. RATE INTEREST TOTAL NEW ISSUES PRINCIPAL INTEREST TOTAL
1995 19,SS1,$49 s s s s s s $ $ $ Sll.S 15.000 $8,1136,$49 S19,SS1,s.IS
!996 19,552,858 230.000 7.000% 335$64 • 50$,864 265.000 6.50% 119)19 • 384,219 1.50,000 6.500% $4,561 • 204,$67 t,IS4,6SI) l.UlO,DIJO 7,787~ l0,707,sa6
1997 18,699 ,6ol3 230.000 7.000% 2$0,981 480,981 310.000 6.40% 75,1l0 385,120 170.000 6.500% ll,l79 202.279 1,1168,380 1l.694,434 7,G73J89 19,768,023
1998 t7,736J61 llS,OOO 7.000% 234,706 469,706 330.000 4..SO'l& 57,175 387,775 180.000 4.$00% 22,704 202,704 1.o&O,I8S 12,445,(176 6.3!11.670 18,796,746
1999 16,869,196 llS,OOO 7.000% %18,256 4$3,256 345.000 4$% 42,415 387,415 19$,000 4.62$% 14,144 209,144 1,G49,815 12,106,493 5,652,$18 17,919.011
lOOO 15,697,622 llS,OOO 7.000% 201.806 436.806 3&5.000 4.70% 2$,903 390,903 :zospoo 4.700% 4,818 209,818 1,1m,$27 9,154,91!6 6,9!!0,163 16,13S,l49
2001 14,347,3ZS llS.OOO 7.000% 185.356 420,356 385,000 4.50% 8,663 393,663 814.019 9,1S4,442 6,G06$('11. 15,161,344
2002 12,182,1S2 llS,OOO 7.000% 168,906 403,906 403,906 8,328~ 4.857,419 13,186,0S8
2003 11,4132-10 llS,OOO 5.000% IS4$06 389.806 389,806 7,844,682 3,9$8.364 1UOJ,G46
2004 9,507,751 llS,OOO S.OOO% 143,056 378.056 378.056 6,79$.000 3IJ')O Jl(11 9;!8SJI(11
:zoos 9,154,110 l3S.OOO 5.125% 131.159 3&6,159 3&6,159 6,190.000 2,730,269 9,520,209
2006 8,187,694 llS.OOO 5.125% 119,116 354,116 3$4,116 6,175.000 2,306,810 9,141,810
l007 8,4!$,929 llS,OOO 5.2$0% 106,92$ 341,92$ l4U2S 6,155.000 2,00Z,8$4 8,757 ,ss.t
2008 7,437,798 llS,OOO 53'15,. 94,441 329,441 329,441 6,110.000 1,657.239 1,161;t39
l009 6.866,()83 llS,OOO 5.500'10 81,663 316,663 316,663 5,845,000 t.l31;746 7,182,74&·
2010 6,022,746 llS,OOO 5JOO% 68,138 303,138 303,138 5,285.000 1,1)41,484. 6,326,41J.t;
2011 5,166,263 llS,OOO 5.500% SS.Sll 2')0,813 2:90,813 SJ<JO.OOO 161,G16 6,GS7 ,G16
lOll 4,330,!1Jl llS,OOO 5.500'11> 42,888 277,888 277,888 41175.000 Slt,$21 4,608,$21'.
2013 4,116,769 235,000 S.SOO% 29,963 264,963 264,903 4,1145.000 l36Jll . 4.38t,nz:
2014 3,934,oo7 llS.OOO 5.000'10 17,615 252,62$ 252,62$ 4,1145.000 14TPlZ 4,186,631'
2015 741J13 l3S.OOO 5.000% 5.815 240.875 140.875 960.000 ZZ:.l88 98'2.1$8
$221,731242 S4,690,000 $2,647,943 S7 ,337 ,.943 $2,000,000 $329,095 $'2,329 ,09S $900,000 SllB.Sll S1,1J28,S12 S10,69S,SSO SlS9,693,7S2 m,7l3,1140 sm,m;m··
•IS MONTHS INTEREST •u MONn!S INTEREST •IS MONTHS INTEREST
INTEREST RATES ON .'\LL NEW ISSUES C.>d.CU!..ATED AT RATES ESTABLISHED AT SALE.
No Text
'""
LUB89SSI.S EXHIBIT A
s-tt-95 PAGE 2
CITY OF LUBBOCK, TEXAS
GENERAL OBLIGATION DEBT SERVICE REQUIREMENt'S
DIVISION OF DEBT SERVICE
LESS: LESS: LESS:
WATERWORKS SEWER SYSTEM SOLID WASTE
FISCAL SYSTEM SYSTEM SYSTEM TarAL
YEAR GENERAL GENERAL GENERAL GENERAL
ENDING GRAND Tar AL REQUIREMENTS OBLIGATION OBLIGATION OBLIGATION PURPOSE
9-30 PRINCIPAL INTEREST TarAL TOfAL REQUIREMENTS REQUIREMENTS REQUIREMENTS
1995 Sll,S15,000 $8,036,549 $19,551,549 $4,823,457 $6,376,959 $1SS,834 $1,595,299
1996 12,920,000 7,787,500 20,707,508 4,546,059 6,911,716 714,141 8,535,592
1997 12,694,434 7,073,SP!J 19,768,023 4,290,392 6,712,336 677$42 8,087,453
1998 12,445,076 6,351,670 18,796,746 4,066,121 6,513,377 484,895 7,732,353
1999 12,266,493 5,6S2,Sl8 17,919,011 3,795,326 6,284,61S 463,908 7,375,162
2000 9,754,986 6,980,163 16,735,149 3,419,488 6,037,00 445,703 6,832,311
2001 9,154,442 6,006,902 15,161,344 3,119,722 5,465,491 418,312 6,157,813
2001 8,328,639 4,857,419 13,186,058 2,639,351 5,162,9PfJ 287,662 5,096,056
2003 7$44,682 3,958,364 11,803,046 2,296,807 4,906,572 3,440 4,S96,2Z1
'2004 6,795,000 3,090,807 9,885,807 1,741,7S2 4,676,T3J 3,467,335
2005 6,790,000 2,730,269 9,520,269 1,675,860 4,508,914 3,335,495
•·2006 6,775,000 2,366,810 9,141,810 1,596,820 4,339,910 3,205,080
2007 6,155,000 2,00l,8S4 8,757,854 1,518,710 4,170,277 3,068,867
2008 6,110,000 1,657,239 7,767,239 1,216,791 3,655,924 2,894,524
2009 5,845,000 1,337,746 7,182,746 1,130,703 3,S07,33S 2,544,700
2010 5,285,000 1,041,484 6,326,484 977,024 3,259,616 2,089,844
2011 5,290,000 767,076 6,057,076 926,801 3,182,2SS 1,948,020
2012 4,075,000 533,521 4,608,521 90,6S2 2,883,024 1,634,845
2013 4,045,000 336,732 4,381,73Z 87,356 2,716,915 1,517,401
2014 4,045,000 141,632 4,186,63Z 84,059 2,645,514 1,451,059
201S 960.000 22.188 982,188 0 741,313 240,875
S1S9,693,7S2 $72,733,040 $232,426,792 $44,043,251 $94,719,485 $4,251,737 $89,412,319
No Text
EXHIBIT "B"
CITY OF LUBBOCK §
COUN1Y OF LUBBOCK §
STATE OF TEXAS §
AFFIDAVIT
Before me, the undersigned authority, personally appeared Betty M. Johnson.
who, being by me duly sworn, deposed as follows:
My name is Betty M. 1ohnson. I am of sound mind, capable of making this
affidavit, and personally acquainted with the facts herein stated:
I am the custodian of the records of the City Secretary's Office for the City of
Lubbock, Texas. Attached hereto is a copy of Ordinance No. 5972, dated November 19,
1970, from the official records of the City ofLubbock. These records are kept by me, the
City Secretary, in the regular course of business, and it was in the regular course of
business of the City Secretary of the City of Lubbock, Texas or an employee or
representatives of the City Secretary of the City of Lubbock, Texas, with knowledge of
the act, event, condition, opinion. or diagnosis, recorded to make the record or to transmit
information thereof to be included in such record; and the record was made at or near the
time or reasonably soon thereafter. The records attached hereto are the original or exact
duplicates of the original.
BEFORE ME, the undersigned authority, a Notary Public in and for said County,
Texas, on this day personally appeared Betty M. 1ohnson, known to me to be the person
whose name is subscribed to the foregoing mstrument and acknowledged to me that she
executed the same for the purposes and consideration therein expressed.
1995.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this lOth day of April,
LORI BETH WALKER J" lllllfr Nile. Slate of Texas IIJCIIM. &om 10.23·96
· ..
~·&rl_j~ Ntary Public, State of Texas
Commission Expires: 10/23/96
No Text
,. _, . ·-=:=#=========================== =
_ord. 5972 amended by Ord. 5998
ORDINANCE NO. 5972 ----------------
AN ORDINANCE AMENDING CHAPTER 30 OF THE CODE OF ORDINANC
OF THE CITY OF LUBBOCK, TEXAS, BY ADDING THERETO A NEW ARTICLE
TO BE KNOWN AS ARTICLE II, ENTITLED :~HOTEL OCCUPANCY TAX", PRO-
VIDING FOR THE ASSESSMENT AND COLLECTION OF A HOTEL OCCUPANCY
TAX; PROVIDING FOR EXEMPTIONS; PROVIDING FOR COLLECTION AND RE-
PORTS CONCERNING THE TAX; PROVIDING FOR THE MAKING OF RUJ_.ES ANI
REGULATIONS BY THE TAX ASSESSOR COLLECTOR; PROVIDING FOR A PEN-
ALTY; PROVIDING FOR AN EFFECTIVE DATE; PROVIDING A SAVINGS CLAUS:
AND PROVIDING FOR PUBLICATION.
WHEREAS~ the City Council finds that many of the public facilities of the
City of Lubbock, including the coliseum, auditoriums, civic center and conver-
tion buildings are enjoyed by visitors to Lubbock; and,
WHEREAS, the City Council desires to expand and improve the facilities
used by the public, especially the visitors; and,
WHEREAS, the City Council has determined that the expense of building,
maintaining and improving these public facilities should spread among the persons
for whom the facilities are provided; and,
WHEREAS, the City Council finds, that in order to provide the facilities
stated above, the issuance of revenue bonds will be necessary at a time and in the
amount to be determined by the City Council based upon the need for such financia
assistance; NOW THEREFORE:
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1. THAT Chapter 30 of the Code of Ordinances of the City of
Lubbock, Texas, be, and it is hereby amended by adding thereto a new Article
known as Article II, entitled "Hotel Occupancy Tax11, consisting of the following
sections~ which shall read as follows:
---~·····-
:rAR TICLE II, Hotel Occupancy Tax
Section 30-7 Definition of Terms:
The following words, terms and phrases are, for the purpose of this
Article, except where the context clearly indicates a different meaning,
defined as follows: ·
(a) 'Hotel' shall mean any building or build~ngs, in which the
public may, for a consideration, obta~n sleeping accommodations.
The term shall include hotels, motels, tourist homes, houses or
courts, lodging houses, inns, rooming houses, and all other facil-
ities where rooms or sleeping facilities or space are furnisht:d for
a consideration, but 'hotel' shall not be defined so as to inclw.le
---,...--------.--.-· --··
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hospitals, sanitariums or nursing homes or private residences
or apartments, unless such private residences or apartments
are rented on a nightly basis and not occupied by permanent
residents.
(b} 'Consideration' shall mean the cost of the room, sleeping
space, bed or dormitory space or other facilities in such hotel
and shall not include the cost of any food served or personal
services rendered to the occupant not related to cleaning and
readying such room or space for occupancy, and shall not in-
clude any tax assessed for occupancy thereof by any other govern-
mental agency.
(c) 'Occupancy' shall mean the use or possession, or the right
to the use or possession of any room, space or sleeping facility
in a hotel for any purpose.
(d) 'Occupant' shall mean anyone, who, for a consideration,
uses, possesses, or has a right to use or possess any room or
rooms, or sleeping space or facility in a hotel under any lease,
concession, permit, right of access, license6 contract or agree-
:rr..ent.
(e) 'Person' shall mean any individual, company, corporation,
or association owning, operating. managing or controlling any
hotel.
(f) 'Tax Assessor-Collector' shall mean the Tax Assessor-
Collector of the City of Lubbock.
(g) 'Quarterly Period' shall mean the regular calendar quarters
of the year, the first quarter being composed of the months of
January, February and March, the second quarter being the month
of April, May and June, the .third quarter being the months of
JulY,, August, and September, and the fourth quarter being the mon
of October, November, and December.
(h) 'Permanent resident' shall mean any occupant who has or
shall have the right to occupancy of any room or rooms or sleeping
space or facility in a hotel for at least thirty (30) consecutive days
during the current calendar year or preceding year.
Section 30-8. Levy of Tax; Rate; Use; Exceptions.
(a) There is hereby levied a tax upon the cost of occupancy of
any room or space furnished by any hotel where such.cost of
occupancy is at the rate of Two Dollars ($2. 00) or more per day~
such .tax to be equal to three percent (3o/o) of the consideration paid
by the occupant of such room .. space or facility to such hotel,
exclusive of other occupancy taxes imposed by other governmental
agencies.
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(b) In the event the City Council should in the future determine
that revenue bonds should be issued for the purposes stated in
Section 3(a) of Article 1269j-4. 1, Texas Revised Civil Statutes,
all or any part of the tax levied under subsection (a) above may
be pledged as security for revenue bonds issued pursuant to the
aforesaid statutes.
Unless otherwise directed by the City Council, the funds re-
ceived from the tax levied under subsection (a) above shall be
placed in the General Fund of the City of Lubbock.
(c) No tax shall be imposed hereunder upon a permanent
resident.
(d) No tax shall be imposed hereunder upon a corporation or
association organized and operated exclusively for religious,
charitable or educational purposes., no part of the net earnings
of which inures to the benefit of any private shareholder or
individual.
Section 30-9. Collection.
Every person owning, operating, managing or controlling any hotel shall
collect the tax imposed in Section 30-8 hereof for the City of Lubbock.
Section 30-10. Reports.
On the last day of the month following each quarterly period, every
person required in Section 44-36 hereof to collect the tax imposed here-
in, shall file a report with the Tax Assessor-Collector showing the con-
sideration paid for all room occupancies in the preceding quarter. the
amount of the tax collected on such occupancies, and any other informa-
tion as the Tax Assessor-Collector may reasonably require. Such
person shall pay the tax due on such occupancies at the time of filing
such report.
Section 30-11. Rules and Regulations.
The Tax Assessor-Collector shall have the power to make such rules
and regulations as are necessary to effectively collect the tax levied
herein, and shall upon reasonable notice have access to books and re-
cords necessary to enable him to determine the correctness of any rc-
port filed as required by this Article and the amount of taxes due undc r
the provisions of this Article.
Section 30-12. Penalties.
If any person shall fail to collect the tax imposed herein, or shall :·~ tl
to file a report as required herein, or shall fail to pay to the Tax
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Assessor-Collector the tax as imposed herein when said report for pay-
ment is due, or shall file a false report, then such person shall be
deemed guilty of a misdemeanor and upon conviction be punished by a
fine not to exceed Two Hundred Dollars ($200. 00). In addition such
person who fails to remit the tax imposed by this Article within the
time required shall forfeit five per cent (5o/o) of such tax. Provided,
however, that the penalty shall never be less than One Dollar {$1. 00).
Delinquent taxes shall draw interest at the rate of six per cent {6%)
per annum beginning sixty (60) days from the date due. 11
SECTION 2. This Ordinance. shall be and become effective upon and
after January 1 , 197 1 .•
SECTION 3. THAT should any section, paragraph, sentence, clause,
phrase or word of this Ordinance be declared unconstitutional or invalid for any
reason, the remainder of this Ordinance shall not be affected thereby.
SECTION 4. THAT the City Secretary is hereby authorized to cause pub-
lication of the descriptive caption of this Ordinance as an alternative method pro-
vided by law.
AND IT IS SO ORDERED.
--::~-O_c;;..t;....o;.,..b~e..;..r ___ , 19 7 o.
--~N~o;....ve~mb..;,.e;;..r;;__ ___ • 1970.
ATTEST:
~~~c_
Fred 0. Senter, Jr., Cit:( Attbrney
No Text
CITY OF LUBBOCK §
COUNTY OF LUBBOCK §
STATE OF TEXAS §
AFFIDAVIT
Before me, the undersigned authority, personally appeared Betty M. Johnson,
who, being by me duly sworn, deposed as follows:
My name is Betty M. Johnson, I am of sound mind, capable of making this
affidavit, and personally acquainted with the facts herein stated:
I am the custodian of the records of the City Secretary's Office for the City of
Lubbock, Texas. Attached hereto is a copy of Ordinance No. 7533, dated September 8,
1977, from the official records of the City ofLubbock. These records are kept by me, the
City Secretacy, in the regular course of business, and it was in the regular course of
business of the City Secretacy of the City of Lubbock, Texas or an employee or
representatives of the City Secreta!}' of the City of Lubbock, Texas, with knowledge of
the act, event, condition, opinion, or diagnosis, recorded to make the record or to transmit
information thereof to be included in such record; and the record was made at or near the
time or reasonably soon thereafter. The records attached hereto are the original or exact
duplicates of the original.
BEFORE ME, the undersigned authority, a Nota!}' Public in and for said County,
Texas, on this day personally appeared Betty M Johnson, known to me to be the person
whose name is subscribed to the foregoing mstrument and acknowledged to me that she
executed the same for the purposes and consideration therein expressed.
1995.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this lOth day of April,
LORI BETH WALKER
JlabrJ Pullllc, Stale of Texas .., Cam. Expires 18-23-96
~·&d~ ary%blic, State o exas
Commission Expires: 10/23/96
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:I ORDINANCE NO. 7533
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!1 AN ORDINANCE AMENDING SECTION 30-8 OF CHAPTER 30 OF THE
180DE OF ORDINANCES, CITY OF LUBBOCK, TEXAS, PROVIDING FOR THE
!LEVY OF A TAX UPON THE COST OF OCCUPANCY OF ANY HOTEL ROOM : l~R SPACE; PROVIDING A SAVINGS CLAUSE AND PROVIDING FOR PUBLICA-
IfTION. .
r: ~~ il WHEREAS. the City Council has determined that the increase in the ho-·
'ltel occupancy tax, as indicated below, would be in the best interest of the citi...:
l!zens of the City of Lubbock; NOW THEREFORE: .
liBE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: .
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l! SECTION 1. THAT Section 30-8 of Chapter 30 of the Code of Ordinancei.
jjcity of Lubbock, BE and is hereby amended by amending sub-section (a)
!!thereof to read as follows:
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Section 30-8. Levy of Tax; Rate;Use; Exceptions.
(a) There is hereby levied a tax upon the cost of occupancy of
any room or space furnished by any hotel where such cost of
occupancy is at the rate of Two Dollars ($2. 00) or more per
day, such tax to be equal to four percent (4o/o) of the considera-
tion paid by the occupant of such room, space or facility to
such hotel, exclusive of other occupancy taxes imposed by
other governmental agencies.
•1 SECTION 2. THAT should any section, paragraph, sentence, clause, ll phrase or word of this Ordinance be declared unconstitutional or invalid for
jj any reason. the remainder of this Ordinance shall not be affected thereby.
li SECTION 3. THAT the City Secretary is hereby authorized to cause
~~publication of the descriptive caption of this Ordinance as an alternative method
~ . H provided by law. . !
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AND IT IS SO ORDERED.
cretar..-Treasurer ' \ J-
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-~f~ept:UtiG.Iie~m.w.b.-..er~o.--_• 19 7 '1.
No Text
CI1Y OF LUBBOCK §
COUNTY OF LUBBOCK §
STATE OF TEXAS §
AFFIDAVIT
Before me, the undersigned authority, personally appeared Betty M. Johnson,
who, being by me duly sworn, deposed as follows:
My name is Betty M Johnson, I am of sound mind, capable of making this
affidavit, and personally acquainted with the facts herein stated:
I am the custodian of the records of the City Secretary's Office for the City of
Lubbock, Texas. Attached hereto is a copy of Ordinance No. 8SS2, dated February 23,
1984, from the official records of the City of Lubbock. These records are kept by me, the
City Secretary, in the regular course of business, and it was in the regular course of
business of the City Secretary of the City of Lubbock, Texas or an employee or
representatives of the City Secretary of the City of Lubbock, Texas, with knowledge of
the act, event, condition, opinion, or diagnosis, recorded to make the record or to transmit
information thereof to be included in such record; and the record was made at or near the
time or reasonably soon thereafter. The records attached hereto are the original or exact
duplicates of the original.
BEFORE ME, the undersigned authority, a Notary Public in and for said County,
Texas, on this day personally appeared Betty M. Johnson, known to me to be the person
whose name is subscribed to the foregoing mstrument and acknowledged to me that she
executed the same for the purposes and consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this lOth day of April,
1995.
~·&LtV~ ~bli~StateofTexas
Commission Expires: 10/23/96
LORI BETH WAlKER I
Natarr Putii'IC. State of Texas t
My Coram. Ezplres 10.23-!lF-' ~
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ORDINANCE NO. 8552
AN ORDINANCE AMENDING SECTION 26-22(a) OF THE CODE OF ORDINANCES OF
THE CITY OF LUBBOCK BY INCREASING THE TAX LEVIED IN THE ABOVE SECTION FROM
FOUR (4%) PERCENT TO SEVEN (7%) PERCENT; AND PROVIDING AN EFFECTIVE DATE
AND PROVIDING A SAVINGS CLAUSE:
WHEREAS, the Legislature of the State of Texas has amended Art. 1269j,
4.1 authorizing cities to increase the tax levied upon the occupancy of any
sleeping room furnished by any hotel where the cost of occupancy is at the
rate of two dollars or more per day, and
WHEREAS, Art. 1269j, 4.1 specifically provides that the monies raised
by said tax shall primarily be used to assist the convention and tourism
industry within the City, and
WHEREAS, the City Council deems it. is in the best interest of the
citizens of the City to allocate a portion, not to exceed two-thirds (66
2/J%) of the additional J% tax herein authorized, for convention and
tourism promotion and operations within the City, and
WHEREAS, the City Council deems it is in the best interest of the
citizens of the City to allocate a portion, not less than one-third (33
1/3%) of the add1tional 3~ tax herein authorized, for the acquisition,
construction, improvement, enlarging, equipping, repairing, operating and
maintenance of capital projects related to the tourism and convention
industry, and
WHEREAS, the City Council finds that the passage of this Ordinance
would be In the best interest of the City of Lubbock, NOW THEREFORE:
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1. THAT Section 26-22(a) of the Code of Ordinances of the
City of Lubbock, Texas BE and ~s hereby amended to read as follows:
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Section 26-22. LEVY OF TAX; RATE; USE.
(a) There is hereby levied a tax upon the cost of occupancy of any
sleeping room furnished by any hotel, where such cost of occu-
pancy is at the rate of two dollars ($2.00) or more per day, such
tax to be equal to seven (7~) percent of the consideration paid
by the occupant of such room to any hotel, exclusive of other
occupancy taxes imposed by other governmental agencies.
SECTION 2. THIS Ordinance shall become effective April 1, 1984.
SECTION 3. SHOULD any provision herein be found to be unconsti-
tutional, illegal, or unenforceable, or unauthorized, the same shall not be
construed as altering or repealing any other provisions of this Ordinance,
but all such other provisions shall remain in full force and effect as if
there had been no finding of defect herein •
velyn Gaffga,
APPROVED AS TO CONTENT:
APPROVED AS TO FORM:
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No Text
,.,
CITY OF LUBBOCK
COUNTY OF LUBBOCK
STATE OF TEXAS
§
§
§
AFFIDAVIT
Before me, the undersigned authority, personally appeared Betty· M. Johnson,
who, being by me duly sworn, deposed as follows:
My name is Betty M. Johnson, I am of sound mind, capable of making this
affidavit, and personally acquainted with the facts herein stated:
I am the custodian of the records of the City Secretary's Office for the City of
Lubbock, Texas. Attached hereto is a copy of Ordinance No. 9120, dated September 24,
1987, from the official records of the City ofLubbock. These records are kept by me, the
City Secretary, in the regular course of business, and it was in the regular course of
business of the City Secretary of the City of Lubbock, Texas or an employee or
representatives of the City Secretary of the City of Lubbock, Texas, with knowledge of
the act, event, condition, opinion, or diagnosis, recorded to make the record or to transmit
information thereof to be included in such record; and the record was made at or near the
time or reasonably soon thereafter. The records attached hereto are the original or exact
duplicates of the original.
BEFORE ME, the undersigned authority, a Notary Public in and for said County,
Texas, on this day personally appeared Betty M. Johnson, known to me to be the person
whose name is subscribed to the foregoing mstrument and acknowledged to me that she
executed the same for the purposes and consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this lOth day of April,
1995.
LORI BETH WALKER
IGbty Public, State ef Texas
U,Camm. Expires 10-23·96
~&d~ NOPUblic, State of Texas
Commission Expires: l 0/23/96
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First Reading
September 10, 1987
Agenda Item #30
Second Reading
September 24, 1987
Agenda Item #7
ORDINANCE NO. 9120
AN ORDINANCE AMENDING SECTION 26-22, PARAGRAPH (B), OF THE CODE OF
. ORDINANCES OF THE CITY OF LUBBOCK TO PROVIDE FOR THE ALLOCATION OF HOTEL 'I OCCUPANCY TAX REVENUES GENERATED WITHIN THE CITY OF LUBBOCK; PROVIDING AN I EFFECTIVE DATE AND PROVIDING A SAVINGS CLAUSE.
11 WHEREAS, Vernon's Ann.Civ.St., Article 1269j-4.1, Section 3c(a),
j authorizes the use of revenues derived from any hotel occupancy tax be used
1 only for:
111 (1) the acquisition, construction, improvement, equipping, opera-
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tion and maintenance of convention center facilities and cap-
ital projects related to the tourism and convention industry;
(2) for furnishing of facilities, personnel and material for the
registration of convention delegates;
(3) for general promotional and tourism advertising of the City and
its vicinity and for operating a program to attract conventions
and visitors;
(4)
(5)
for the encouragement, promotion and application of the arts;
and
for historical preservation and restoration projects for
facilities frequented by tourists and visitors; and
;1 WHEREAS, the City Council is committed to providing a balanced
I! program for attracting and encouraging convention and tourism business to
1 our community; and
I WHEREAS, the City Council recognizes the need to provide a comprehen-
1 sive program consisting of civic center/convention fac1l ities and activ-ll ities; direct convention and visitor promotional activities; programs and II services related to the arts; and provisions for future convention and II visitor capital improvements; NOW THEREFORE:
il BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
I I SECTION 1. THAT Section 26-22, paragraph (b) of the Code of I Ordinances of the City of Lubbock, Texas, BE and the same is hereby amended
1
to read as follows:
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(b) Issuance of bondsi use of funds.
(1) In the event the City Council should in the future
determine that revenue bonds should. be issued for the
purposes stated in section 3(a) of Article 1269j-4.1,
Texas Revised Civil Statutes, all or any part of the tax
levied under subsection (a) above may be pledged as
security for revenue bonds issued pursuant to the
aforesaid statutes.
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(2} Unless otherwise directed by amendment hereto, the funds
received from the tax levied under subsection {a) shall
be distributed as follows:
Reserve for Arts and Related Items .......... 1/2 cents
Debt Service for Convention Center
Facilities ..•..•.....•..•...•.•••.•..•••.. 2 1/4 cents
Convention and Tourism Activities ..••..••••• 3 cents
General Fund for Civic Center Operations .•.. 4/10 cents
Reserve for Special Projects ....•.•...••••.. 1/10 cents
Reserve for Convention and Tourism Capital
Projects .................................. 3/4 cents
SECTION 2. THIS Ordinance shall become effective October 1, 1987.
SECTION 3. SHOULD this provision herein be found to be unconstitu-
tional, illegal, unenforceable, or unauthorized, the same shall not be
lj construed as altering or repealing any other provisions of this Ordinance,
i but all such other provisions shall remain in full force and effect as if H there had been no finding of defect herein.
!! ll AND IT IS SO ORDERED.
II Passed by City Council on first reading thistatb day of September, 1987. ,,
!I Passed by City Council on second reading this 24th day of September, 1987.
I
il lf.Ccul-t.~~ :. I ATTEST~ -. --· c---) /,: --:G:e·A!C¥_~ . ~ ' ....,><...
Ranette Boyd, City Secretary
i APPRq,VED AS TO CONTENT: ;z;_?'l . ./. :e.: ~:lt. #!L-r--
Rita Harmon, Assistant City
Manager
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CITY OF LUBBOCK
COUN1Y OF LUBBOCK
STATE OF TEXAS
§
§
§
AFFIDAVIT
Before me, the undersigned authority, personally appeared Betty· M. Johnson,
who, being by me duly sworn, deposed as follows:
My name is Betty M. Johnson, I am of sound mind, capable of making this
affidavit, and personally acquainted with the facts herein stated:
I am the custodian of the records of the Ci~ Secreta:rYs Office for the City of
Lubbock, Texas. Attached hereto is a copy of Ordinance No. 9373, dated August 23,
1990, from the official records of the City ofLubbock. These records are kept by me, the
City Secretary, in the regular course of business, and it was in the regular course of
business of the City Secret8.1)' of· the City of Lubbock, Texas or an employee or
representatives of the City Secretary of the City of Lubbock, Texas, with knowledge of
the act, event, condition, opinion, or diagnosis, recorded to make the record or to transmit
infonnation thereof to be included in such record; and the record was made at or near the
time or reasonably soon thereafter. The records attached hereto are the original or exact
duplicates of the original.
BEFORE ME, the undersigned authority, a Not8.1)' Public in and for said County,
Texas, on this day personally appeared Betty M. Johnson, known to me to be the person
whose name .is subscribed to the foregoing instrument and acknowledged to me that she
executed the same for the purposes and consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this lOth day of April,
1995.
~·.&.t:fdJadu
OtPUblic, State of Texas
Commission Expires: 10/23/96
No Text
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First Reading
August 9, 1990
Item #Hi
Second Reading
August 23, 1990
Item #14
ORDINANCE NO. 9373
AN ORDINANCE AMENDING SECTION 26-22, SUBSECTION (b)(2) OF THE CODE OF ORDINANCES OF THE CITY OF LUBBOCK, TEXAS, WITH REGARD TO ALLOCATION OF HOTEL
OCCUPANCY TAX REVENUES; PROVIDING A SAVINGS CLAUSE; AND PROVIDING FOR
PUBLICATION.
WHEREAS, the City Council of the City of Lubbock deems 1t to be in the
best interest of the citizens of the City of lubbock to change the hotel
occupancy tax allocations as currently reflected in Section 26-22 of the
Code of Ordinances; NOW THEREFORE:
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1. THAT Subsection (b)(2) of Section 26-22 of the Code of
· Ordinances of the City of Lubbock, Texas, be amended to read as follows:
(2) The funds received from the tax levied under Subsection (a)
shall be distributed as follows:
Reserve for arts and related items • . • 1/2 cent
Debt service for convention center
facilities • . • . • • • • • • • • 2 1/4 cents
Convention and tourism activities •...•• 3 1/4 cents
~, General fund for civic center operations ••• 4/10 cent
Reserve for special projects . • • • • . • • • 1/10 cent
Reserve for convention and tourism
capital projects . • • • • . • • • • • • • 1/4 cent
Convention and tourism incentive • • • • • 1/4 cent
SECTION 2. THAT should any paragraph, sentence, clause, phrase or
word of this Ordinance be declared unconstitutional or invalid for any
:, reason, the remainder of this Ordinance shall not be affected thereby.
,. l .
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SECTION 3. THAT the City Secretary is hereby authorized and directed
to cause publication of the descriptive caption of this Ordinance as an al-
ternative method of publication provided by law.
AND IT IS SO ORDERED.
Passed by City Council on first reading this 9th day of __ A_.;u.....cgu~st __
1990. Passed by City Council on second reading this 23rd day of August
1990. -----
ATTEST:
c:~~~&ty~
APPROVED AS TO CONTENT:
lai:;~ng~j~·, ~tsf<stant City
Manager/Financial Services
APPROVED AS TO FORM:
. ---") \ k\.1 ~ ~~lver,Fl~
City Attorney
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No Text
, ...
CITY OF LUBBOCK §
COUN1Y OF LUBBOCK §
STATE OF TEXAS §
AFFIDAVIT
Before me, the undersigned authority, personally appeared Betty M. Johnson,
who, being by me duly sworn, deposed as follows:
My name is Betty M. Johnson, I am of sound mind, capable of making this
affidavit, and personally acquainted with the facts herein stated:
I am the custodian of the records of the City Secretary's Office for the City of
Lubbock, Texas. Attached hereto is a copy of Ordinance No. 9689, dated Aprill4, 1994,
from the official records of the City of Lubbock. These records are kept by me, the City
Secretary, in the regular course of business, and it was in the regular course of business of
the City Secretary of the City ofLubbock, Texas or an employee or representatives of the
City Secretary of the City ofLubbock, Texas, with knowledge of the act, event, condition,
opinion, or diagnosis, recorded to make the record or to transmit information thereof to be
included in such record; and the record was made at or near the time or reasonably soon
thereafter. The records attached hereto are the original or exact duplicates of the original.
BEFORE ME, the undersigned authority, a Notary Public in and for said County,
Texas, on this day personally appeared Betty M. Johnson, known to me to be the person
whose name is subscnoed to the foregoing mstrument and acknowledged to me that she
executed the same for the purposes and consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this lOth day of April.
1995.
(Se.al) ! ~ ~ t!l LORI BETH YIALKER
: {l ]Ill(,~ llaflrr Pllllr:, Slllullua .., 0111& f.xpha J0.23.t6 -·~tdz/laJ OtPUblic, stateOTexas
Commission Expires: 10/23/96
No Text
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First Reading
March 10. 1994
Item 1120
Second Reading
April 14, 1994
Item #36
ORDINANCE NO. . 9689
AN ORDINANCE AMENDING SECTION 26-22, SUBSECTION (b)(2) OF TilE
ODE OF ORDINANCES OF THE CITY OF LUBBOCK, TEXAS, WITH REGARD TO
LOCATION OF HOTEL OCCUPANCY TAX REVENUES; PROVIDING A SAVINGS
LAUSE; AND PROVIDING FOR PUBLICATION.
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WHEREAS, the present debt service payments for Civic Center improvements will be
ompleted in fiscal year 1993-94; and
WHEREAS, the Resolution No. 3869 of the City Council for the City of Lubbock
esolved that the excess portion of the hoteVmotel tax revenue allocated for debt service, which
s not necessary to retire the debt service, be allocated for Civic Center improvements; and
WHEREAS, $475,000.00 bas been allocated from Fund 1221 (Reserve for Convention
nd Tourism Capital Projects) for funding Phase Two of the Civic Center RoofProject; and
WHEREAS, the Civic Center continues to provide for the entertainment needs of the
itizens of Lubbock through events and activities which pr-omote culture and improve the quality
. flife; NOW THEREFORE:
~tE IT ORDAINED BY THE CITY COUNCll.. OF TilE CITY OF LUBBOCK:
I SECTION 1. THAT Subsection (b)(2) of Section 26-22 of the Code of Ordinances of
1 he City of Lubbock, Texas, be amended to read as follows:
" 'I <2> The funds received from the tax levied under Subsection (a) shall be
distributed as follows: I l
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Reserve for arts and related items
Debt service for convention center facilities
Convention and tourism activities
General Fund for civic center operations
Reserve for special projects
Reserve for convention and tourism
capital projects
Convention and tourism incentive
1/2 cent
2 114 cents*
3 1/4 cents
4/10 cent
1/10 cent
114 cent
l/4 cent
* any excess over the amount necessary to retire the debt service payments shall be
reallocated in the following manner:
a. Until October 1, 1994, any excess shall be allocated to Civic Center
improvements as provided in the 1993-1994 budget.
No Text
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b. After October I, 1994, the first $475,000.00 shall be allocated to the
"Reserve for Convention and Tourism Capital Projects"; and then any
additional funds shall be allocated to Civic Center improvements.
SECTION 2 .. 1HAT should any paragraph, sentence, clause, phrase or word of this
rdinance be declared unconstitutional or invalid for any reason, the remainder of this
dinance shall not be affected thereby.
SECTION 3. 1HAT the City Secretary is hereby authorized and directed to cause the
ublication of the descriptive caption of this Ordinance as an alternative method of publication
rovided by law.
AND IT IS SO ORDERED.
1994.
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CITY OF LUBBOCK §
COUN'IY OF LUBBOCK §
STATE OF TEXAS § .
AFFIDAVIT
Before me, the undersigned authority, personally appeared Betty M. Johnson,
who, being by me duly sworn, deposed as follows:
My name is Betty M. Johnson, I am of soWld mind, capable of making this·
affidavit, and personally acquainted with the facts herein stated:
I am the custodian of the records of the City Secretary's Office for the City of
Lubbock, Texas. Attached hereto is a copy of Ordinance No. 9722, dated October 13,
1994, from the official records of the City of Lubbock. These records are kept by me, the
City Secretary, in the regular course of business, and it was in the regular course of
business of the City Secretary of the City of Lubbock, Texas or an employee or
representatives of the City Secretary of the City of Lubbock, Texas, with knowledge of
the act, event, condition, opinion, or diagnosis, recorded to make the record or to transmit
information thereof to be included in such record; and the record was made at or near the
time or reasonably soon thereafter. The records attached hereto are the original or exact
duplicates of the original.
BEFORE ME, the undersigned authority, a Notary Public in and for said County,
Texas, on this day personally appeared Betty M. Johnson, known to me to be the person
whose name is subscribed to the foregoing instrument and acknowledged to me that she
executed the same for the purposes and consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this lOth day of April,
1995. .
~-~~ NOiifYP\iblic, stateOTexas
Commission Expires: 10/23/96
No Text
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First Reading
August 11 , 1994
Item #22
Second Reading
October 13, 1994
Item /16
ORDINANCE NO. 9722 -----
AN ORDINANCE AMENDING CHAPTER 26, SECTION 26-22 OF 1HE CODE OF
· ORDINANCES BY AMENDING SUBSECTION (c) WITH REGARD TO EXCEPTIONS FOR
HOTELIMOTEL TAXES; AND BY DELETING SUBSECTION (d); AND PROVIDING A
SAVINGS CLAUSE AND PROVIDING FOR PUBLICATION.
WHEREAS, the City Council of the City ofLubbock deems it to be in the best interest of
the citizens of the City of Lubbock to amend Chapter 26, Section 26-22, in order to bring it in
conformity with Chapter 351 of the Tax Code, which exempts only certain persons from paying
hotel/motel taxes; NOW nmREFORE:
BE IT ORDAINED BY TilE CITY COUNcn.. OF TilE CITY OF LUBBOCK:
SECTION 1. 1HAT Section 26-22 of the Code of Ordinances of the City of Lubbock,
T~ is hereby amended Subsection (c) to read as follows:
(c) No tax shaJl be imposed under this article when State law provides an
exemption from this tax.
SECTION 2. 1HAT Section 26-22 of the Code of Ordinances of the City ofLubbock.,
T~ is hereby amended by deleting therefrom subsection (d).
SECTION 3. 1HAT should any ~ph, sentence, clause, phrase or word of this
Ordinance be declared unconstitutional or invalid for any reason, the remainder of this Ordinance
shall not be affected thereby.
SECTION 4. 1HAT the City Secretary is hereby authorized and directed to cause
publication of the descriptive caption of this Ordinance as an alternative method of publication
· provided by law.
AND IT IS SO ORDERED
Passed by City Council on first reading this t 1 th
1 Passed by City Council on second reading s --'-'.1..1.1..--A~ ------------~·~· ·~~~~~-r-___,J 1994.
APPROVED AS TO CONTENT:
~~it"&rsupport SeMces
APPROVED AS TO FORM: /~~.z~~t;fu rtdio~andiver, tr5t Ass1StaiitCity
Attorney
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EXHIBIT "C"
Hotel Occupaner Tu
•Hotel Occ:upaDcy Tax• means die tax levied by die Cit.y upon lbe costs of occupucy of any lleepiq room furnished by any
hotel. wbealhe c:osr of occupucy is at die rate of $2.00 or more per day. The Hotel Occupancy Tax may not exceed 7S of
these costs; the City levies a Hotel Occupancy Tax of 7S of dlese costs. The City conuneac:edcoUectioa of a Hotel Occupancy
Tax on January I, 1971. The Cily lw no outstancfiq revenue bonds or other obqarioaa payable from a lien oa the Hotel
Occupancy Tax. ·
Historical Hotel OccupaDCJ Tu Receipts and (Pro Forma) Historical Pledged Hotel Tu Receipts
Pro Forma
Historical
F'uc:al Hotel Pledpd
Year Occupancy Hotel Tax
Eadiq Tax Receipts
9-30 c2geca2D! Gil
1290 $1,488,417 $425,279
1991 1,480,075 422,879
122Z 1.537,504 439,287
1993 1,634,.5251f.D 467,008
1994 l,618,48'J(D 479.561
(1) Fiscal Year Eadiftl 9-3o.93 iacludel and Fiscal Year Eadiq 9-3044 exclude~ a portion of bu:tb quarter Fiscal Year
Eadiq 9-3Q.93 receipt~ recorded iD Fiscal Year Eadiq 9-3044.
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EXHIBIT "D"
Airport Statement of Operations
Nt~te: The Swemeat of Operationa hal been conatruc:ted in acc•w"""'·e with lhe order of precedeace for dae Airport Fund u established
m lbe Certif'&eare Ordinance (HO •Cettiracate Information• and •s.:vrll)' for lhe Certificmea• thereunder).
Ett FilcaJ X!!!: E!!~ing I.!IU!l!IHE m.
Budaet
I!U 122! 1m 1m 1221 122!!
Qeerating Revegues
Landing Feos s 739,500 s 579,274 s 692,051 s W,653 s 615,719 s 639,634
Parkin& 1,442,200 1,393,640 1,285,199 1,194,966 1,233,432 1,201,143
Rentals 2,445,200 1,374,755 2,444,311 2,159,651 2,112.995 1,158,352
Conceuiou f:!.A, 216,1.1§ U~5,6~Z IJO,J!,g 1~.911 112,417
Total Operating Revenues $4,626,900 $4,134,455 $4,527,198 $4,130,467 $4,064,177 $3,110.316
Non O:eeratinc Reveguu 1t!l,243 309.929 )33,361 ZI,P98 266~237 298.66S
Oron Revenues $4,735,143 $4,444,384 $4,661,266 $4,208,565 $4,330,414 $4,011,981
Leu: Revenue Bood Debt
Service noa.m tii3~8SQ) UJI,71g) tiii.W> nn.m <127,140
Balance, Gtou Revet'lues $4,626,243 $4,330,534 $4,542,556 $4,090,307 $4,207,694 $3,891.841
Qeerating Ewn•
PeriOIUIJ Servic:w Sl,ll6,914 $1,371,167 $1,92.5.211 s 1.,641,432 s 1,761,615 s 1,464,061
Supplies 136,43% 104,761 l25.G35 114,260 161,542 51,145
Maint.eiWice 397,421 271,046 250,986 246,656 216,988 244,569
Other Services &Del Cbl.rpl 1.5911729 1.501.680 1.476.955 1.4§(),506 1.401.264 1.425;839
Total Operatina Ezpeases 13.2!91496 SJ~W ~3}! n.m~•fl 151461,154 13,§111409 131192,614
Surpl111 8e¥et'lues s 676I747 1110671119 I 764d6? s 627,453 s 5!9.2!5 s 699,227
(I) Escludes apital expeoditunll &Del, wbere.wlicable, deprecildoa.
Mu.imum Principal &Dcllmerest Requiremeara, Airport Reveaue Boacll,
Fascal Year EadinJf-30-95 I I •••••••••••• I ••••• I ••••••••• I ••••••• I •• I. I •••• I I I •• I I S 108.900
Covetl,se by Gtou ReveGues, Filcll Year Eiacled f.:J0.94 •• I •• I •• I I •••• I •• I I •• I ••••• I ••• I •••• 40.81 Times
Airpon Reveaue Booda Outal:aluSiDJ, 2·21-9.5 • • • • • • • . • • • • • • • • • • • • ••• I • • • • • • • • • • • • • • • • • • I • • • S 360 ,()()Oe
Interest and Sizlkinl Fuad, 2-21-9.5 •••••••• I ••••• I ••••••••••••••••••••••••• I • • • • • • • • • • S 201.145 .
Reserve Fuad, 2-21--95 • • • • • • • • • • • • • • I ••••••••••••••• I • • ••••••• I • I ••• I • • • • • • • • • • • • S 300.000
• The Alrpon Rev•ueBoaciiiDICIU'e $90,000September 15 eachJ~~~t 95198; the City plaalto all bonds maturiua9-IS.96198 f« rr-
redempdoll OD September 15, 1995.
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SIGNATURE AND NO-LITIGATION CERTIFICATE
THE STATE OF TEXAS §
§
COUNTY OF LUBBOCK §
§
CITY OF LUBBOCK §
WE, the undersigned, officials of the City of Lubbock, Texas
(the "Issuer"), do hereby certify as follows:
(1) That this Certificate is executed and delivered with
reference to the following described bonds: "CITY OF LUBBOCK,
TEXAS, GENERAL OBLIGATION BONDS, SERIES 1995," dated May 15, 1995
(the "Bond Date"), in the aggregate principal amount of $4,690,000
(the "Bonds").
(2) The Bonds have been duly and officially executed by the
undersigned with their manual or facsimile signatures in the same
manner appearing thereon, and the undersigned hereby adopt and
ratify their respective signatures in the manner appearing on each
of the Bonds whether in manual or facsimile form, as the case may
be, as their true, genuine, and official signatures.
(3) That on the Bond Date and on the date hereof, we were and
are the duly qualified and acting officers indicated therein and
authorized to execute the same.
(4) The legally adopted proper and official corporate seal of
the Issuer is impressed, imprinted, or lithographed on all of the
Bonds and impressed on this certificate.
(5) That this Certificate is executed and delivered with
reference to the following described certificates of obligation:
"CITY OF LUBBOCK, TEXAS, TAX AND HOTEL OCCUPANCY TAX SURPLUS
REVENUE CERTIFICATES OF OBLIGATION, SERIES 199511 , dated May 15,
1995 (the "Certificate Date"), in the aggregate principal amount of
$2,000,000 (the "Hotel Certificates").
(6) The Hotel Certificates have been duly and officially
executed by the undersigned with their manual or facsimile
signatures in the same manner appearing thereon, and the
undersigned hereby adopt and ratify their respective signatures in
the manner appearing on each of the Hotel Certificates whether in
manual or facsimile form, as the case may be, as their true,
genuine, and official signatures.
(7) That on the Certificate Date and on the date hereof, we
were and are the duly qualified and acting officers indicated
therein and authorized to execute the same.
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(8) The legally adopted proper and official corporate seal of
the Issuer is impressed, imprinted, or lithographed on all of the
Hotel Certificates and impressed on this certificate.
(9) That this certificate is executed and delivered with
reference to the following described certificates of obligation:
"CITY OF LUBBOCK, TEXAS, TAX AND AIRPORT SURPLUS REVENUE
CERTIFICATES OF OBLIGATION, SERIES 1995,11 dated May 15, 1995 (the
"Airport Certificate Date"), in the aggregate principal amount of
$900, ooo (the ••obligations") • ·
(10) The Obligations have been duly and officially executed by
the undersigned with their manual or facsimile signatures in the
same manner appearing thereon, and the undersigned hereby adopt and
ratify their respective signatures in the manner appearing on each
of the Obligations whether in manual or facsimile form, as the case
may be, as their true, genuine, and official signatures.
(11) That on the Airport Certificate Date and on the date
hereof, we were and are the duly qualified and acting officers
indicated therein and authorized to execute the same.
(12) The legally adopted proper and official corporate seal of
the Issuer is impressed, imprinted, or lithographed on all of the
Obligations and impressed on this certificate.
(13) No litigation of any nature is now pending before any
federal or state court, or administrative body, or to our knowledge
threatened, seeking to restrain or enjoin the issuance or delivery
of the Bonds or questioning the issuance or sale of the Bonds, the
authority or action of the governing body of the Issuer relating to
the issuance or sale of the Bonds, the levy of the tax or the
assessment and collection thereof to pay the principal of and
interest on the Bonds, or that would otherwise adversely affect in
a material manner the financial condition of the Issuer to pay the
principal of and interest on the Bonds; and that neither the
corporate existence or boundaries of the Issuer nor the right to
hold office of any member of the governing body of the Issuer or
any other elected or appointed official of the Issuer is being
contested or otherwise questioned.
(14) No authority or proceeding for the issuance, sale, or
delivery of the Bonds, passed and adopted by the governing body of
the Issuer, has been amended, repealed, revoked, rescinded, or
otherwise modified since the date of passage thereof, and all such
proceedings and authority relating to the issuance and sale of the
Bonds remain in full force and effect as of the date of this
certificate.
(15) No litigation of any nature is now pending before any
951128/0247629 -2-
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federal or state court, or administrative body, or to our knowledge
threatened, seeking to restrain or enjoin the issuance or delivery
of the Hotel Certificates or questioning the issuance or sale of
the Hotel Certificates, the authority or action of the governing
body of the Issuer relating to the issuance or sale of the Hotel
Certificates, the levy of the tax, or the assessment and collection
thereof, to pay the principal of and interest on the Hotel
Certificates, the assessment and collection of the portion of the
hotel occupancy tax pledged to pay the principal of and interest on
the Hotel Certificates or that would otherwise adversely affect in
a material manner the financial condition of the Issuer to pay the
principal of and interest on the Hotel Certificates; and that
neither the corporate existence or boundaries of the Issuer nor the
right to hold office of any member of the governing body of the
Issuer or any other elected or appointed official of the Issuer is
being contested or otherwise questioned.
(16) No valid petition has been filed with any official of the
Issuer requesting the proceedings authorizing the issuance of the
Hotel Certificates adopted by the governing body of the Issuer be
submitted to a referendum or other election; no authority or
proceeding for the issuance, sale or delivery of the Hotel
Certificates by the governing body of the Issuer has been amended,
repealed, revoked, rescinded or otherwise modified since the date
of passage thereof, and all such proceedings and authority relating
to the issuance and sale of the Hotel Certificates remain in full
force and effect as of the date of this Certificate.
(17) No litigation of any nature is now pending before any
federal or state court, or administrative body, or to our knowledge
threatened, seeking to restrain or enjoin the issuance or delivery
of the Obligations or questioning the issuance or sale of the
Obligations, the authority or action of the governing body of the
Issuer relating to the issuance or sale of the Obligations, the
levy of the tax or the assessment and collection thereof to pay the
principal of and interest on the Obligations, the collection of the
revenues of the city's Airport system (the "System") or the
imposition of rates and charges with respect to the system, pledged
to pay the principal of and interest on the Obligations, the
collection of the revenues of the City's Airport (the "Airport") or
the imposition of rates and charges with respect to the Airport,
pledged to pay the principal of and interest on the Obligations, or
that would otherwise adversely affect in a material manner the
financial condition of the Issuer to pay the principal of and
interest on the Obligations; and that neither the corporate
existence or boundaries of the Issuer nor the right to hold office
of any member of the governing body of the Issuer or any other
elected or appointed official of the Issuer is being contested or
otherwise questioned.
951128/0247629 -3-
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(18) That no petition or other request has been filed with or
presented to any official of the Issuer requesting any proceeding
authorizing the issuance of the Obligations adopted by the
governing body of the Issuer be submitted to a referendum or other
election; no authority or proceeding for the issuance, sale, or
delivery of the Obligations, passed and adopted by the governing
body of the Issuer, has been amended, repealed, revoked, rescinded,
or otherwise modified since the date of passage thereof, and all
such proceedings and authority relating to the issuance and sale of
the Obligations remain in full force and effect as of the date of
this certificate.
EXECUTED AND DELIVERED t •
fissuer's Sea1)
City of Lubbock
THE STATE OF TEXAS S
COUNTY OF LUBBOCK S
The undersigned, a Notary Public, hereby represents and
certifies David Langston and Betty Johnson are known to me to be
the Mayor and city secretary, respectively, of the City of Lubbock,
Texas, and in my presence executed this instrument before me in the
capacity represented and each of said person's siqnature appearing
above is genuine.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this //f~day of May,
1995.
e• , LORI BETH WALKER Notary Public, State of Texas
My eonun. Expires 10.23-96
(Notary",Seal)
951128/0247629
~--&-tL~ Noa:ry Public, State of Texas
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HOCIOf'lble Mayor IDII City CGuad1
City ofl.ubboet. Tuu
M...,_. of dle City Couodl:
OmCIAL BID FORM ,/
May II, 1995
R.r.r.ac. ilade to raurOftidalltatemaiDII Noca oflllltiDIIB~ fDICNctioal. .t.t.f April20, lftS, of$4,fi0,000CDT OF 1.UBBCX:K.
TEXAS GENERAL OBUOATION DOMDS, SER.D:B 1995, kdl of wbicla OOIIICibu·a put.....,.
PriDcipcl -....... Pria:lcipal .....
Maturity Amouat IS MaturitY Amouat ....
2-IS-1996 $230,000 ~ .. 2-15-2003 sm.ooo $ OD s
2-IS-1997 230.000 ..::1£s 2-IS-2004 235.000 J:'Q;? s
2-IS-1991 235,000 a._, 2-IS-2005 235.000 ~
2-IS-1999 235,GOO !Z.Gt.s 2-IS-2006 235,aoo .C/ U"'s
2-IS-2000 235,000 .!ZM.s 2-IS-2007 235,000 .J', l ~
2-lS-2001 235.000 /joe s 2-IS-2001 235 000 5: ]'/. s . -
2-IS-2002 235,000 ~ ..
O!.ll' calcuWioa (wbich il a a part ofdlillrid) ofdle lalenll CCII lam lbe llloM il:
Toeal ...... CCIIl
Ltai'Nmiulll
Priacipal ...._
MalllritY AIIKIUat IS
2-IS-2009 $235,000 s:.ro s
2·15-2010 235.000 ..r;_.ro s
2-IS-2011 235,000 f,f'o s
2-IS-2012 235.000 .r:J'iJ s
2-IS-2015 235.000 S:~s
2-lS-2014 235.000 S:Dt:'!Js
2·15-2015 235.000 ,!';U) s
-tJ-
NET INI'EitDT cosr s fl,i, V 1t flf2 ,If
EFFECI'IVB INTEREST RATE C(LftPIJ s
We _Ne .. ll.t..viaa ~ BoDIIa of tta. folowiq maturiciu ·1114 4 -2 t:JI' ("" is:ulured
by WftU1IJ!Iti..L. .,.'+f!St4NCY au pnmit1111 of I &4if.io • ilk • '± Mlllljl tpy., Pmi!M!r· AD1
._to be paid to dle r1tiaJ qeacillu a a.alt of llid ......._d .. pilil h .. City.
T1roe laitial BoDd lbaiJ be 1'IIIJiltered illlbe ...._of lat1onsBanc C&p1tll fllarli:ets 1 Inc. . W• will..,.... T1roe D1po1itocJ TIWit
Compuy ~DTc") of~ iaattuc:dallla .... e;; m CiiYI prior., ......... L IDit:iall:llliY.:y.
·.~~~"'+-!!!:!~ ~~~=-Bust. Austin. legs • illdle
IDIOUIIl of $93,100.00, wtsich &ifi&4IIICIID our ....,_. ....n.ble to JCU prior to the ..,.ailla ofdlil
bid), 1D11 il dmiued ill ~ widl dlellrllll u • farl:b iD dle Oftidal It•••• IDII NocM:. of W. ad Jidclbrllaltruc:tiolll.
We ape to ac:cept deliver)' of dle BoDdl udliziDa tbe Boot-Ealry-oaly IJileal tlaroqb DTC IDIIIDib JMl1llllll& for tbll failid 8oDd ill hzmwli....,
available 6mda Ia tbll Corporat. TIWit Divilioa. Norwelt But UitwwcU, Nllicaal AM cilll:im, MiaaMpnlia. Mi"""'*• a law tibia IO:CIO AM. CDT, oalw. 15, lftS, or........._ ..... ._ .. Boadlaa ....._.for ~~e&way,punuaa&to lbellrllll•bda iDtbeNocaofs.leaadlidcliDa
~-
Tiroellllldllnipld a.-to CCIIIIpilfll. ca.cuee,IDIIMWiriD tbe City, • llutlix ...-... 4qt prior to....,. oftbe BoDdl, a~~
to lbe ...... price' ofdle ........ fbrm ... ., .. .a'ect~tbe Nolice , ........... ~wid& IIICb c:f.taa&-.....,
.. .-y be__,..., .. ., .. a,.
We ...-• pnrillelll ........ flilill noll'el._,..__. ...... .....,. • ..,, te ... ..._.. ....... .,. ... c:laleflldae ._..._. ..,. ...............
l.elpecdldly lllf:lmilbl4.
llat1ons8anc capttll Markets. Inc.
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Hnnonble Mayor and Cicy C.lunc;li
Cirv of Lubbock. Texas
Members of dle City Council:
OmCIAL BID FOR..\C
May II. 1~95
Reference is made to your Officill Statement and Notice of Sale and Biddinr WtNctions, dlted April20, t99S, of S2.000,000CrrY OF LUBBOCK.
TEXAS TAX AND HOTEL OCCUPANCY TAX SURPLUS REVENUE CERTIFICATES OF OBUOAnON, SERIES 1995, boch of which
constiwte a part beteof.
For your lqally iuued Cenificates, u described in aid Notice of Sale and Biddiq ~ and Official Statement. we will pay you par and
ace Ned interest from dlte of iuue to dlte of delivary co ut, plua e cuh premium of S :J.,I • .1.5 for Certiticatll maturiq and bearinf interest
IS follow1:
Priac:ipal lllterac
Y•tud.U t.ms!!:!nt B•t•
2-15-1996 $265,000 ,,50 ..
2-15-1997 310,000 ~~~
2-15-1991 330,000 4.5 "
2-IS-1999 3•s.ooo· ~./p s
2-15-:ZOOO 365,000 'f.1 s
2-15-2001 315,000 ~~~
Our calculation (which il 1101 a part of dlil bid) of the interest colt from the above ia:
s .S.l9,0Cf~.75
.2.1. ~5
Totallaterest Cost
t.a. Premium
NET INTEREST COST
EFFECTIVE INTEREST RATE
s J..lct ,o1a.so
&1. '11'-o5.l
We ere baviq dle Cenitieata of the foUowina maturilia illSUred
by at • premium of S , pH !!PiP 10" Nid by tbe Purd!aser. Ally
feel 10 be paid to the tatiq apncies u a rault of aid illluranco pill be paid by tl!! CltJ.
Thelaitial Certificate lhaU be reptered in tbe name of First Southwest Company . WewilhdvileThe DepoaitoryTNa
Compaay ("DTC"') of n~Jistrstion imtNc:tionlaclult &ve buaiMu day• prior to the dale lit fix IDi.dal Delivery.
A biDit cuhier'l chec:t or Clrtified du:ct of the Hationsbanc Bant, Dallas . in the
amount of $40.000.00. which repraenu our Good Faidl Depoait (il attadled hereto) or (hu been made available to you prior 10 the opetliiiJ of this
bid), and ia aubmitted in accordance wid:! tbe tetma u let forth in the Ofticill Statemelll and Nocic:e of Sala and Biddinllmuuc:tions.
We apee 10 accept delivery of tbe Cenificatel utiliziq tbe Boot·&try..oaly Sylfllm throup DTC and mate pi)'IDtlnt fix tbe l.aitial Cartificat.e in
immediately available fi.lnd1 in the Corporate Trua Divilion, Norwest BIDit Milmeaoca, Nlli.onal ASioc:iation, Mim:lelplil, Minnesota, no! liter than
10:00 AM. CDT. on luna IS, 199$, or tbereafter on tbe date the Cenificatea ar. teodenlcl tbr Mlivery, pu.....-10 tba tetma lit forth in dle Notice
of Sale and Bidding llutructiOill.
The undeniped a,...ea to completa, execute, and deliver 10 tbe City, at lust six buainea dayt prior to delivery of the Certificatea. a certificate
relltiq 10 the "iaue price• of tbe Certiticatea in tbo tbrm and to tbe eft'ect accompaayiq the Nocic:e of Sale aDd Biddill( lastrudiou. with suc.ll
chaDJu tberelo 11 may be aec:epaable to tbe C"&ty.
We qne to protide ia. wridq die ililial noft'eriq prices llld echer terms. it' UJ, co lbe f'iuDdal Mrilo.r by lbe dale oflbe .m business
day alter tM award.
Rupec:tfi.d1y aubmilt.ed,
First Southwest Comany -Mgr
Stephens Inc. -Jt Mgr
The above and tbreroinl bid il hereby in alllhirlp accepted by the C"d)' of lubboc
Bidding lastnactiou, tbia dle ltd:! day of May, 1995.
I
} --............... ~ --ATTEST: ~(.d ... !-'-\ .. .1.. .! "',. \•
City'Secretaty
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Honorable Mayor &ad City Cou.acil
Caty of Lubboct, Tuu
Member~ of 1M C'sty COUDCU:
omciAL am FORM
May 11, 1995
Rllference ia made 10 your Oftic:ial Stttemealud Notice of Sale &ad Bid4iar laluuc:d.oal, dated Apri120, 1995, of $900,000 crrY OF LUBBOCK.
TEXAS TAX AND A.IRPORT SURPLUS REVE.NVE CERTIFICATES OF OBUGA110N, SERIES 1995, bolh of 'llhicb ~a part hereof.
For your leplly iuued Certificate~, u clelc:ribed irl uid Notic:e of Sale &ad Biddiq lnllruel:ioaa &ad Oftidal Statemeat, -will pay you par &ad
ac:c:rued interut from dabs of iaue 10 dabs of de!Nery 10 ua, plua a cash premium of S -0 -b Certificate~ tDiliiJriq &ad belrin.l iablrelt
u f'ollowa:
Prioc:ipal IDblreat
M•tu!itt Amount !!!!
1-15-1996 $150,000 (a.~
1·15-1997 110,000 ~
1·15-1991 1101000 c.l.s-Ott
2-15-1999 195,000 ct.~
2-15-2000 205,000 c..J.:"'IC.t;
Our ca1c:u1atioD ('fo'hicb ia DOt a part of diU bid) of the intenlat c:oat from lhe above ia:
Totallturut COlt
Leufnlmium
NE1' INTEREST COST
EFFEC11VE INTER.EST RATE
s 12't,su .s<-
-a -
s I Zl( :t-U • 'S"C.
4.9t-~1n<SS
We are baviq 1M Certificabla of lbe fOIJowiftl maeuritiea iuuTed
by at a premium of$ • gid ppiw to l!e lllillrr die Pmlaper. AsJ.y
feea eo be paid to lbe flltilla apDCiM u a .-It of laid iluluraDc:e 1!11 be Mid 1rr d!e Citr.
ne IDitia1 Certificabslhall be reaiJtenc1 irllbe ~~&~~»of National Finane ial Services Co~ willldvia n. Depoait.oryTruat
Compuy (•DTC") of ngilltaliou iallnlctiOIII at leut five buaiDeu day• prior eo lbe date til b IDitial Dlliveay.
A bank cu!Uer'• cbec:t or certified cbec:t of lhe Frost National BaDt. Austin, Texas irllbe
amount of $11,000.00, wbicb repreuata our<Jood FUll Depolit (1& attllcbad benlo) or (bu hem IDIICSeanillbleiO yau prior10 lhe opeaiuaofdiU
bid), &ad ia IUbmiued irl ac:c:onlaDce wi1h the bll'ml u t1t fOrlb iD lbe Oftidal Statemeacud Notice of Sale IIIII ~ laltmclioal.
We aaree 10 aCClllpt delivery of lbe Certific:abll utiliziq lbe Boot-Emry-Oaly S)'ltotm lbrouJh DTC I.D4 mate paym111t fbr lbe Jmtial Certific:abs ia
immediately availlble 6mda ill the Colporabs Truat Divilioa. Noi'Welt Bank Mii:IDMota, Nalioaal Alloc:iatiol1. Mjnneepolil. Mimletotl, DOt lablr than
10:00 AM, CDT, ou 111118 15, 1995, or ~iter on lbe datelbe Certificatu are teadered fOr delivery,~ 10 the 11tm1 t1t fOrth illlbe Notice
of Sale &ad 8id4iar ~Dstruc:tioaa.
111• UDdeniped IJNII 10 c:omplece, exec:ubl, &ad deliver to lbe C'aty, at leut lilt buaiDeu da)'l prior eo delivery of the Cerlitic:a1ea, a certifieabs
relatiD3 to the •jgue price• of lbe Certific:atM iD lbe b:m &ad ID the efrec:t ac:c:omparJ1iDIIbe Notice of Sale &ad 8iddiDI fllluuctiona, widlauch
dwJpa lberero u may be ac:c:lptl.ble to the City.
We qne co llft"ide • ........., d!elaitial no«erfllltc prbllllld odlert.e:IWI, if_,, to die ftallr:ial M'rilor., ... c.e eldle am llasiMss
..., .rter ...........
Relpec:tt\aUy IUbmilted.
Fidelity Capital Markets
l
No Text
No Text
No Text
I'
CERTIFICATE AS TO OFFICIAL STATEMENT
THE STATE OF TEXAS S s COUNTY OF LUBBOCK S s
CITY OF LUBBOCK S
RE: $4,690,000 "City of Lubbock, Texas, General Obliqation Bonds,
Series 1995", $2, ooo, 000 "City of Lubbock, Texas, Tax and
Hotel Occupancy Tax Surplus Revenue Certificates of
Obliqation, Series 1995"
WE, THE UNDERSIGNED, Mayor and City Secretary of the City of
Lubbock, Texas, DO HEREBY CERTIFY that to the best of our knowledqe
and belief:
(a) The descriptions and statements of
or pertaininq to the City contained in its
Official Statement, and any addenda, supplement
or amendment thereto, prepared in connection
with the issuance and sale of the above
referenced Bonds, 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,
includinq 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 liqht of the
circumstances under which they were made, not
misleadinq;
(c) Insofar as the descriptions and
statements, includinq financial data, of or
pertaininq 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 the City has no
reason to believe that they are untrue in any
material respect; and
(d) There has been no material adverse
chanqe in the financial condition of the City
since the date of the last audited financial
statements of the City.
No Text
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RE: $900,000 "City of Lubbock, Texas, Tax and Airport Surplus
Certificates of Obligation, Series 1995"
WE, THE UNDERSIGNED, Mayor and City Secretary of the City of
Lubbock, Texas, DO HEREBY CERTIFY that to the best of our knowledge
and belief:
(a) The descriptions and statements of
or pertaining to the City contained in its
Official statement, and any addenda, supplement
or amendment thereto, prepared in connection
with the issuance and sale of the above
referenced Obligations, on the date of such
Official Statement, on the date of sale of said
Obligations 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 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.
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I'
TO CERTIFY WHICH, witness my hands and the seal of the City,
this ·· .IIIN. 15 1995
(City seal)
115112810247143
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,,
CITY OF LUBBOCK, TEXAS
(Lubbock County)
$4,690,000
GENERAL OBLIGATION BONDS, SERIES 1995
and
$2,000,000
~ TAX AND HOTEL OCCUPANCY TAX SURPLUS REVENUE
CERTIFICATES OF OBLIGATION, SERIES 1995
Sealed Bids Due Thursday, May 11, 1995,
at 11:00 AM, CDT
• Amarillo
• UBBOCK
th• •Dallas Fort Wor
* Austin
• • San Anton1o
' ,....
~
Ratings: Moody's: 11 Aaa11
SUPPLEMENT TO
omciAL STATEMENT
relating to
$4,690,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
Standard & Poor's: 11 AAA 11
(Capital Guaranty Insured)
GENERAL OBLIGATION BONDS, SERIES 1995
On May 11, 1995, the above-captioned Bonds (the •Bonds•) were awarded to an underwriter or group of
underwriters managed by NationsBanc Capital Markets, Inc. (the •Purchasers•). The interest rate with
respect to each maturity of Bonds and the initial reoffering yield for each maturity are as follows:
MATURITY SCHEDULE
Initial Initial
Reoffering Reoffering
Amount Maturi!:f Rate :Xield Amount Maturi!:f R!te Yield
$230,000 2-15-1996 7.000% 4.20% $235,000 2-15-2006 5.125% 5.25%
230,000 2-15-1997 7.000% 4.45% 235,000 2-15-2007 5.250% 5.35%
235,000 2-15-1998 7.000% 4.55% 235,000 2-15-2008 5.315% 5.45%
235,000 2-15-1999 7.000% 4.65% 235,000 2-15-2009 5.500% 5.55%
235,000 2-15-2000 7.000% 4.15% 235,000 2-15-2010 5.500% 5.60%
235,000 2-15-2001 7.000% 4.85% 235,000 2-15-2011 5.500% 5.65%
235,000 2-15-2002 7.000% 4.95% 235,000 2-15-2012 5.500% 5.10%
235,000 2-15-2003 5.000% 5.00% 235,000 2-15-2013 5.500% 5.15%
235,000 2-15-2004 5.000% 5.10% 235,000 2-15-2014 5.000% 5.15%
235,000 2-15-2005 5.125% 5.15% 235,000 2-15-2015 5.000% 5.15%
The initial reoffering yields were supplied to the City by the Purchasers and such initial reoffering yields
for one or more maturities may be changed at any time and from time to time by the Purchasers and other
dealers.
As indicated on the Purchaser's bid form, payment of the principal of and interest on the Bonds as the same
become due and payable (other than by reason of acceleration) will be insured by a Municipal Bond
Guaranty Insurance Policy to be issued by Capital Guaranty Insurance Company simultaneously with
delivery of the Bonds.
The following pages contain information regarding such insurance and a specimen insurance policy.
Subject to circumstances occurring subsequent to the date hereof, this Supplement together with the Official
Statement noted above, dated April 20, 1995, constitute the •pinal Official Statement• within the meaning
of SEC Rule 15c2-12.
Dated: May 11, 1995
No Text
·"*"' •
,..
The information contained or referred to in this Supplement to Official Statement relating to the Insurer
and the Insurance Policy bas been provided by the Insurer. Such information bas not been independently
verified by the City br the Purchaser and is not guaranteed as to completeness or accuracy by the City or
the Purchaser and is not to be construed as a representation of the City or the Purchaser. Reference is made
to the specimen of the Insurer's policy attached hereto.
BOND INSURANCE
A Municipal Bond Guaranty Insurance Policy ("Insurance Policy") will be issued by Capital Guaranty
Insurance Company ("Capital Guaranty") simultaneously with the issuance and delivery of the Obligations
which provides for the full and complete payment of an amount equal to (i) the principal of (either at the
stated maturity or by any advancement of maturity pursuant to a mandatory sinking fund payment) and
interest on, the Obligations as such payments shall become due but shall not be so paid (except in the event
of any acceleration of the due date of such principal by reason of mandatory or optional redemption or
acceleration resulting from default or otherwise, other than any advancement of maturity pursuant to a
mandatory sinking fund payment, the payments guaranteed hereby shall be made in such amounts and at
such times as such payments of principal would have been due had there not been any such acceleration);
and (ii) the reimbursement of any such payment which is subsequently recovered from any owner pursuant
to a final judgment by a court of competent jurisdiction that such payment constitutes an avoidable
preference to such owner within the meaning of any applicable bankruptcy law.
For specific information on the coverage provided, reference should be made to the text of the Insurance
Policy, which bas been reproduced in specimen form in this document. The Insurance Policy does not
insure any payment to any investor to compensate for any loss or limitation of the tax exemption, either
past or future. Furthermore, the Jnsunuice Policy does not insure against nonpayment of principal or
interest caused by the insolvency or negligence of the Paying Agent.
Capital Guaranty Insurance Company is a monoline stock insurance company incorporated in the State of
Maryland, and is a wholly owned subsidiary of Capital Guaranty Corporation, a Maryland insurance
holding company. Capital Guaranty Corporation is a publicly owned company whose shares are traded on
the New York Stock Exchange. Other than their investment in Capital Guaranty Corporation, the investors
of Capital Guaranty Corporation are not obligated to pay the debts of, or the claims against, Capital
Guaranty Insurance Company.
The attached financial statement of Capital Guaranty is incorporated herein by reference and reflects certain
financial information prepared in accordance with statutory insurance accounting principles as was reported
by Capital Guaranty to the Insurance Department of the State of Maryland.
Neither Capital Guaranty nor its affiliates make any representation as to the contents of this Supplement
to Official Statement, the suitability of the Obligations for any investor, the feasibility or performance of
any project or compliance with any securities or tax laws and regulations.
Capital Guaranty's coverage is limited to that set forth in the Insurance Policy.
RATINGS
Standard & Poor's and Moody's Investors Service have assigned the Bonds the ratings of "AAA" and
"Aaa", respectively, with the understanding that upon delivery of the Bonds, a municipal bond guaranty
insurance policy will be issued by Capital Guaranty Insurance Company with respect to the Bonds. Such
ratings reflect only the respective views of the rating organizations. An explanation of the significance of
each such rating may be obtained from the rating agency furnishing the same. There is no assurance that
such ratings will continue for any given period of time or that either or both will not be revised downward
or withdrawn entirely by either or both of such rating agencies if, in their judgment, circumstances so
warrant. Any such downward revision or withdrawal of either or both of the ratings obtained may have
an adverse effect on the market price of the Bonds.
No Text
CAP.I!'AL GUARANTY .INSURANCE COMPANY
MUHJ:C.IPAL BOND GtJARAR!'Y l:RSURANCE POLJ:CY'
IN THE EVENT CAPITAL GUARANTY INSuRANcE COMPANY IS UNABLE !'0
FULFILL ITS CONTRACTUAL OBLIGAT.ION UNDER !'HIS POLICY OR CONTRACT
OR APPLICATION OR CERTIFICATE OR EVIDENCE OF COVERAGE, THE
POLICYHOLDER OR CERTIFICATEHOLDER IS NOT PROTECTED BY AN
INSURANCE GUARANTY FUND OR OTHER SOLVENCY PROTECTION ARRANGEMENT.
Policy No:
Capital Guaranty Insurance Company ("Capital Guaranty") in
consideration of the payment of the premium and subject to the
terms of this ~licy, hereby unconditionally and irrevocably
guarantees to any owner, as hereinafter defined, of the following
described Obligations, the full and complete payment required to
be made by or on behalf of the Issuer to:
~~ei~~i~~~~:~s~~ ~!~~.~"Pay~ing e ent" o~f 1\f!l~nto (i) advancement of maturi ~ nd
payment) and interest , ( \ defined
below) as such paymen b u ~ so paid
(except that in the ev en c era ion of the due date of
such principal by reason of mandatory or optional redemption or
acceleration resulting from default or otherwise, other than any
advancement of maturity pursuant to a mandatory sinking fund
payment, the payments guaranteed hereby shall be made in such
amounts and at such times as such payments of principal would have
been due had there not been any such acceleration): and (ii) the
reimbursement of any such payment which is subsequently recovered
from any owner pursuant to a final judgment by a court of
competent jurisdiction that such payment constitutes an avoidable
preference to such owner within the meaning of any applicable
bankruptcy law. The amounts referred to in clauses (i) and (ii)
of the preceding sentence shall be referred to herein collectively
as the "Insured Amounts." "Obligation" shall mean:
"' ISSUER:
ISSUE:
GUARANTIED MATURITIES:
DATED DATE:
No Text
Upon receipt of telephonic or telegraphic notice, such notice
subsequently confirmed in writing by registered or certified mail,
or upon receipt of written notice by registered or certified mail,
by the Cla~s Officer or its designee from the Paying Agent or any
owner of an Obligation the payment of an Insured Amount for which
is then due, that such required payment has not been made, Capital
Guaranty on the due· date of such payment or within one business
day after receipt of notice of such nonpayment, whichever is
later, will make a deposit of funds, in an account with its
Disbursing Agent or its successor, sufficient for the payment of
any such Insured Amounts which are then due. Upon presentment and
surrender of such Obligations or presentment of such other proof
of ownership of the Obligations, together with any appropriate
instruments of assignment to evidence the assignment of the
Insured Amounts due on the Obligations as are paid by Capital
Guaranty and appropriate instruments to effect the appointment of
Capital Guaranty as agent for such owners of the Obligations in
any legal proceeding relating to payment of Insured Amounts on the
Obligations, such instruments being in a form satisfactory to
Capital Guaranty, Capital Guaranty shall cause its Disbursing
Agent to disburse to such owners or the Paying Agent payment of
the Insured Amounts due~~Obligations, less any amo.unt held
by the Paying Agent for ~rE~I ured Amounts and legally available there s o · ~ainst
loss of any prepayment ~yable
with respect to any Obl · • t. f
' 1 ' . As used herein, the term "owner" shall mean the re~T~ered owner
of any Obligation as indicated in the books maintained by the
Paying Agent, the Issuer, or any designee of the Issuer for such
purpose. The term owner shall not include the Issuer or any party ..
whose agreement with the Issuer constitutes the underlying
security for the Obligations.
As used herein, the term "Disbursing Agent" means a bank or trust
company selected by Capital Guaranty or a successor Disbursing
Agent, designated to receive and remit funds on behalf of Capital
Guaranty.
This policy is non-cancellable for any reason. The premium on
this policy is not refundable for any reason including the payment
prior to maturity of the Obligations.
Any service of process on Capital Guaranty may be made to the
Secretary, Capital Guaranty Insurance Company, One Market, Steuart
Tower, 22nd Floor, San Francisco, California .94105-1413 and such
service of process shall be valid and binding.
No Text
In Witness Whereof, Capital Guaranty has caused this policy to be
,..., executed by its and as of the day
-
of , 19 __ •
CAPITAL GUARANTY INSURANCE COMPANY
By:
Title:
By:
Title:
Effective Date:
Resident Agent Countersignature
Agency:
Address:
By:
Date:
TX9-BS
No Text
•
,.., :
,....
..
CAPITAL GUARAN1Y INSURANCE CO:MPANY
Cash
Investments
Premimns Receivable
Accrued Interest
Other Assets
Total Assets
BALANCE SUIU!:T
(Statutory Basis)
March 31, 1995
ASSETS
$ 77,807
304,045,849
967,667
3,821,506
630.10S
$ 309.542.934
UABILlTIES AND POUCYHOLDERS' SURPLUS
Contingency Reserve $ 29,580,139
Unearned .Premiums 106,230,469
Other Liabilities 2,771,029
Policyholders' Sug>lus 170.961,297
Total Liabilities and Policyholders' Smplus $ lQ2.542.2l:!
• (*' .
. -
Ratings: Moody's: "Aa"
SUPPLEMENT TO
OmCIAL STATEMENT
relating to
$2.,000,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
Standard & Poor's: "AA"
T.AX AND HOTEL OCCUPANCY TAX SURPLUS REVENUE
CERTIFICATES OF OBLIGATION, SERIES 1995
On May 11, 1995, the above-captioned Certificates (the •Certificates•) were awarded to an underwriter
or group of underwriters managed by F1RST SOUTHWEST COMPANY (the •Purchasers•). 1he interest
rate with respect to each maturity of Certificates and the initialrcofferlng yield for each maturity are as
follows:
MATURITY SCHEDULE
An!ount
$265,000
310,000
330,000
345,000
365,000
385,000
Maturity
2-15-1996
2-15-1997
2-15-1998
2-15-1999
2-15-2000
2-15-2001
Rate
6.509(;
6.40%
4.50%
4.60%
4.70%
4.50%
Initial
Reofferlng
Yield
4.10%
4.30%
4.50%
4.60%
4.70%
4.80%
The initial reofferlng yields were supplied to the City by the Purchasers and such initialrcofferlng yields
for one or more maturities may be changed at any time and from time to time by the Purchasers and other
dealers.
Subject to circumstances occurring subsequent to the date hereof, this Supplement together with the Official
Statement noted above, dated Aprll20, 1995, constitute the •pinaJ Official Statement• within the meaning
of SEC Rule 15c2-12.
Dated: May 11, 1995
No Text
j .
NOTICE OF _SALE
AND
BIDDING INSTRUCTIONS
ON
$2,000,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
TAX AND HOTEL OCCUPANCY TAX SURPLUS
REVENUE CERTIFICATES OF OBLIGATION, SERIES 1995
Sealed Bids Due Thursday, May 11, 1995, at 11:00 AM, CDT
THE SALE
Certif'acates Offered for Sale at Competitive Bidding
The City of Lubbock, Texas, is offering for sale its $2,000,000 Tax and Hotel Occupancy Tax Surplus Revenue Certificates
of Obligation, Series 1995 (the "Certificates").
Address of Bids
Sealed bids, plainly marked "Bid for Certificates•, should be addressed and delivered to "Mayor and City Council, City of
Lubbock, Texas" and delivered to the City Secretary at the Municipal Complex, 1625 13th St., Lubbock, Texas, prior to
11:00 AM, CDT, on the date of the bid opening. All bids must be submitted on the Official Bid Form, without alteration or
interlineation.
Bids by Telephone or Facsimile
Bidders must submit SIGNED Official Bid Forms to JOE W. SMITH, FIRST SOUTHWEST COMPANY, 402 CYPRESS,
SUITE 103, ABILENE, TEXAS 79601, and submit their bid by telephone or facsimile (fax) on the date of the sale.
Telephone bids will be accepted at 806-767-3245, between 9:30AM, CDT and 10:30 AM, CDT.
Fax bids must be received between 9:30AM, CDT and 10:30 AM, CDT on the date of the sale at 806-762-3623, attention Joe
W. Smith.
First Southwest Company will not be responsible for submitting any bids received after the above deadlines.
First Southwest Company assumes no responsibility or liability with respect to any irregularities associated with the submission
of bids if telephone or fax options are exercised.
Place and Time of Bid Opening
The bids for the Certificates will be publicly opened and read in the City Council Chambers, Municipal Complex, at 11:00 AM,
CDT, Thursday, May 11, 1995.
Award of the Certif'acates
The City Council will take action to award the Certificates (or reject all bids) immediately following the bid opening and adopt
an ordinance authorizing the Certificates and approving the Official Statement (the "Ordinance").
-i-
TilE CERTIFICATES
Description
The Certificates will be dated May 15, 1995 (the "Certificate Date"), and interest will be due on February 15, 1996 and on each
February 15 and August 15 thereafter until the earlier of maturity or prior redemption .. The Certificates will be issued only in
fully registered form in any integral multiple of $5,000 for any one maturity. The Certificates will mature on February 15 in
each year as follows:
Year
1996
1997
1998
1999
2000
2001
Principal
Amount
$ 265,000
310,000
330,000
345,000
365,000
385,000
The City intends to utilize the Book-Entry..Qnly System of The Depository Trost Company ("DTC"). See "Bond and Certificate
Information-Book-Entry..Qnly System" in the Official Statement.
Redemption
The Certificates are not optional for prior redemption.
Paying Agent/Registrar
The initial Paying Agent/Registrar shall be Norwest Bank Minnesota, National Association, Minneapolis, Minnesota; Co-
Registrar shall be Norwest Bank Texas, National Association, Lubbock, Texas (see "Bond and Certificate Information -Paying
Agent/Registrar" in the Official Statement).
Source of Payment
The Certificates constitute direct general obligations of the City, payable from a combination of (i) the levy and collection of
a direct and continuing ad valorem tax, within the limits prescribed by law, on all taxable property within the City, and (ii) a
pledge of revenues derived from a Hotel Occupancy Tax.
Further details regarding the Certificates are set forth in the Official Statement.
CONDITIONS OF SALE
Type of Bids and Interest Rates
The Certificates will be sold in one block on an "All or None" basis, and at a price of not less than their par value plus accrued
interest to the date of delivery of the Certificates. Bidders are invited to name the rate(s) of interest to be borne by the
Certificates, provided that each rate bid must be in a multiple of 118 of 1 % or 1120 of 1 % and the effective interest rate must
not exceed 15%. The highest rate bid may not exceed the lowest rate bid by more than 2% in rate. No limitation is
imposed upon bidders as to the number of rates or changes which may be used. All Certificates of one maturity must bear one
and the same rate. No bids involving supplemental interest rates will be considered. Each bidder shall state in the bid the total
interest cost in dollars and the effective interest rate determined thereby (calculated in the manner prescribed by Article 717k-2,
V ATCS), 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 Certificates, 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 Certificates from the Certificate Date to their respective
maturities, using the table of Bond Years herein, and deducting therefrom the premium bid, if any (the "Net Interest Cost
Calculation"). Subject to the City's right to reject any or all bids on the Certificates and to waive any irregularities except time
of filing, the Bids will be awarded to the bidder or syndicate account manager whose name first appears on the respective
Official Bid Form (the "Purchaser") whose bid, based on the Net Interest Cost Calculation, produces the lowest net effective
interest cost to the City.
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Good Faith Deposit
A Good Faith Deposit, payable to the "City of Lubbock, Texas", in the amount of $40,000.00, is required. Such Good Faith
Deposit shall be a bank cashier's check or certified check, which is to be retained uncashed by _the City pending the Purchaser's
compliance with terms of the bid and the Notice of Sale and Bidding Instructions. The Good Faith Deposit may accOmpany the
Official Bid Form or it may be submitted separately. If submitted separately, it shall be made available to the City prior to the
oPening of the bids, and shall be accompanied by instructions from the bank on which drawn which authorize its use as a Good
Faith Deposit by the Purchaser who shall be named in such instructions. The Good Faith Deposit of the Purchaser will be
returned to the Purchaser upon payment for the Certi(JCates. 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 Certificates in accordance with the 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 Certificates has been made.
DELIVERY OF THE CERTIFICATES AND ACCOMPANYING DOCUMENTS
CUSIP Numbers
It is anticipated that CUSIP identification numbers will-appear on the Certificates, but neither the failure to print or type such
number on any Certificate 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 Certificates in accordance with the terms of this Notice of Sale and Bidding Instructions and
the terms of the Official Bid Form. All expenses in relation to the printing or typing of CUSIP numbers on the Certificates 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 of Certiracates
Initial Delivery will be accomplished by the issuance of one Initial Certificate (also called the "Certificate" or "Certificates")
either in typed or printed form, in the aggregate principal amount of $2,000,000, payable in Stated installments to the Purchaser,
signed by the Mayor and City Secretary, approved by the Attorney General, ·and registered and manUally signed by the
Comptroller of Public Accounts. Upon delivery of the Initial Certificate, it shall be immediately cancelled and one Certificate
for each maturity will be registered and delivered only to Cede & Co., and deposited with DTC in connection with DTC 's Book-
Entry-Only System. Initial Delivery will be at the principal office of the Paying Agent/Registrar. Payment for the Certificates
must be made in immediately available funds for unconditional credit to the City, or as otherwise directed by the City. The
Purchaser will be given six business days' notice of the time fixed for delivery of the Certificates. It is anticipated that delivery
of the Certificate(s) can be made on or about June 15, 1995, and it is understood and agreed that the Purchaser will accept.
delivery and make payment for the Certificates by 10:00 AM CDT, on June 15, 1995, or thereafter on the date the Certificate
is tendered for delivery, up to and including June 29, 1995. If for any reason the City is unable to make delivery on or before
June 29, 1995, the City shall immediately contact the Purchaser and offer to allow the Purchaser to extend its offer for an
additional thirty days. If the Purchaser does not elect to extend its offer within six days thereafter, then its 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 Certificates, 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 Certificates is subject to the Purchaser's receipt of (a) the legal
opinion of Fulbright & Jaworski L.L.P., 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.
In order to provide the City with information required to enable it to comply with certain conditions of the Internal Revenue
Code of 1986 relating to the exclusion of interest on the Certificates from the gross income of their owners, the Purchaser will
be required to complete, execute, and deliver to the City (on or before the 6th business day prior to the delivery of the
Certificate) a certification as to their "issue price" substantially in the form and to the effect attached hereto or accompanying
this Notice of Sale and Bidding Instructions. In the event the successful bidder will not reoffer the Certificates for sale, such
certificate may be modified in a manner approved by the City. In no event will the City fail to deliver the CertirJCates as a result of the Purchaser's inability to sell a substantial amount of Certi(JCates at a particular price prior to delivery. Each
bidder, by submitting its bid, agrees to complete, execute; and deliver such a certificate by the date of delivery of the
Certificates, if its bid is accepted by the City. It will be the responsibility of the Purchaser to institute such syndicate reporting
requirements to make such investigation, or otherwise to ascertain the facts necessary to enable it to make such certification with
reasonable certainty. Any questions concerning such certification should be directed to Bond Counsel.
-iii-
Legal Opinions
The Certificates are offered when, as and if issued, subject to the approval of the Attorney General of the State of Texas.
Delivery of and payment for the Certificates is subject to the receipt by the Purchaser of opinions of Bond Counsel, to the effect
that the Certificates are valid and binding obligations of the City and that the interest on the Certificates will be excludable from
gross income for federal income tax purposes under existing law, subject to the matters described under •Other Relevant
Information-Tax Exemption" in the Official Statement, including the alternative minimum tax on corporations.
Certirreation of Ofncial Statement
At the time of payment for and Initial Delivery of the Certificates, the City will execute and deliver to the Purchaser a certificate
in the form set forth in the Official Statement.
Change in Tax Exempt Status
At any time before the Certificates are tendered for delivery, the purchaser may withdraw its bid if the interest received by
private holders on bonds of the same type and character shall be declared to be taxable income under present federal income
tax laws, either by ruling of the Internal Revenue Service or by a decision of any Federal court, or shall be declared taxable
or be required to be taken into account in computing any federal income taxes, by the terms of any federal income tax law
enacted subsequent to the date of this Notice of Sale and Bidding Instructions.
GENERAL
Financial Advisor
First Southwest Company is employed as Financial Advisor to the City in connection with the issuance of the Certificates. The
Financial Advisor's fee for services rendered with respect to the sale of the Certificates is contingent upon the issuance and
delivery of the Certificates. First Southwest Company may submit a bid for the Certificates, either independently or as a
member of a syndicate organized to submit a bid for the Certificates. First Southwest Company, in its capacity as Financial
Advisor, has relied on the opinion of Bond Counsel and has not verified and does not assume any responsibility for the
information, covenants and representations contained in any of the legal documents with respect to the federal income tax status
of the Certificates, or the possible impact of any present, pending or future actions taken by any legislative or judicial bodies.
Blue Sky Laws
By submission of its bid, the Purchaser represents that the sale of the Certificates in states other than Texas will be made only
pursuant to exemptions from registration or, where necessary, the Purchaser will register the Certificates in accordance with
the securities law of the states in which the Certificates are offered or sold. The City agrees to cooperate with the Purchaser,
at the Purchaser's written request and expense, in registering the Certificates or obtaining an exemption from registration in any
state where such action is necessary, provided, however, that the City shall not be obligated to execute a general or special
consent to service of process in any such jurisdiction.
Not an Offer to Sen
This Notice of Sale and Bidding Instructions does not alone constitute an offer to sen the Certificates, but is merely notice of
the sale of the Certificates. . The offer to sell the Certificates 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 Certificates.
Issuance of Additional Debt
$4,960,000 General Obligation Bonds, Series 1995 and $900,000 Tax and Airport Surplus Revenue Certificates of Obligation,
Series 1995 are also being offered for sale on May 11 , 1995.
Following sale and issuance of the above Bonds and Certificates, the City will have $10,247,000 authorized but unissued general
obligation bonds. Of these the City's preliminary plans are to sell approximately $3,232,000 in.1996, $2,120,000 in 1997 and
$1,157,000 in 1998 totaling $6,509,000; there are no present plans to sell $3,738,000 of the authorized bonds. The City has
no other current plans for the issuance of general obligation debt.
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Ratings
The presently outstanding tax supported debt of the City is rated "Aa" by Moody's Investors Service, Inc. ("Moody's") and
• AA" by Standard & Poor's Corporation ("S&P"). Applications for contract ratings on this issue have been made to both
Moody's and S&P. The results of their determinations will be provided as soon as possible.
Municipal Bond Insurance
In the event the Certificates are qualified for municipal bond insurance, and the Purchaser desires to purchase such insurance,
the cost therefor will be paid by the Purehaser. Any fees to be paid to the rating agencies as a result of said insurance will
be paid by the City. It will be the responsibility of the Purchaser to disclose the existence of insurance, its terms and the effect
thereof with respect to the reoffering of the Certificates.
Tbe Off'~eial Statement and Compliance with SEC Rule 15c2-l2
The City has prepared the accompanying Official Statement and, for the limited purpose of complying with SEC Rule 15c2-12,
deems such Official Statement to be final as of its date within the meaning of such Rule for the purpose of review prior to
bidding. Representations made and to be made by the City concerning the absence of material misstatements and omissions in
the Official Statement are addressed elsewhere in this Notice of Sale and Bidding Instructions and in the Official Statement.
The City wi!l furnish to the Purchaser, or Purchasers, acting through a designated senior representative, in accordance with
instructions received from the Purchaser(s), within seven (7) business days from the sale date an aggregate of 100 copies of the
Official Statement including a like number of copies of a Supplement reflecting interest rates and other terms relating to the
initial reoffering of the Certificates. The cost of a reprinted Official Statement, if the Purchaser(s) shall so elect, and the cost
of any Official Statement in excess of the number specified shall be prepared and distributed at the cost of the Purchaser(s).
The Purchaser(s) shall be responsible for providing in writing the initial reoffering prices and other terms, if any, to the
Financial Advisor by the close of the next business day after the award. Except as noted above, the City assumes no
responsibility or obligation for the distribution or delivery of any copies of the Official Statement in connection with the offering
or reoffering of the subject securities.
Additional Copies 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, 1700 Pacific Avenue, Suite 500, Dallas, Texas 75201, Financial Advisor to the City.
On the date of the sale, the City Council will, in the Ordinance authorizing the issuance of the Certificates, confirm its approval
of the form and content of the Official Statement, and any addenda, supplement or amendment thereto, and authorize its use
in the reoffering of the Certificates by the Purchaser.
ATTEST:
BETTY M. JOHNSON
City Secretary
April 20, 1995
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DAVID R. LANGSTON
Mayor
City of Lubbock, Texas
No Text
BOND YEARS
1!": Accumulated
Year Amount Bond Years Bond Years Year
1996 $ 265,000 198.75 198.75 1996 •.
<,.. ... 1997 310,000 542.50 741.25 1997 ) '
1998 330,000 907.50 1,648.75 1998
1999 345,000 1,293.75 2,942.50 1999
("' 2000 365,000 1,733.75 4,676.25 2000
2001 385,000 2,213.75 6,890.00 2001
Average Maturity ---------------------------------3.445 Years
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Honorable Mayor and City Council
City of Lubbock, Texas
Members of the City Council:
OmCIAL BID FORM
May 11, 1995
Reference is made to your Official Statement and Notice of Sale and Bidding Instructions, dated April20, 1995, of $2,000,000CITY OF LUBBOCK,
TEXAS TAX AND HOTEL OCCUPANCY TAX SURPLUS REVENUE CERTIFICATES OF OBUGATION, SERIES 1995, both of which
constitute a part hereof.
For your legally issued Certificates, as described in said Notice of Sale and Bidding Instructions and Official Statement, we will pay you par and
accrued interest from date of issue to date of delivery to us, plus a cash premium of$ for Certificates maturing and bearing interest
as follows:
Principal Interest
Matum Amount Bate
2-lS-1996 $265,000 ---%
2-15-1997 310,000 __ $
2-tS-1998 330,000 __ %
2-15-1999 345,000 __ %
2-15-2000 365,000 __ %
2-15-2001 385,000 ---%
Our calculation (which is not a part of this bid) of the interest cost from the above is:
Total Interest Cost
Leas Premium
NET INTEREST COST
EFFECTIVE INTEREST RATE
$. _____ _
$:....,_ ____ _
______ %
We are having the Certificates of the following maturities--------:-::----:---:--....,.,:-::-----::,.--:-insured
by at a premium of$:.......-=-~-==--=--' said premium to be paid by the Purchaser. Any
fees to be paid to the rating agencies as a result of said insurance 1rill be paid by the City.
The Initial Certificate shall be registered in the name of • We will advise The Depository Trust
Company ("DTC") of registration instructions at least five business days prior to the date aet for Initial Delivery.
A bank cashier's check or certified check of the Bank, , in the
amount of $40,000.00, which represents our Good Faith Deposit (is attached hereto) or (has been made available to you prior to the opening of this
bid), and is submitted in accordance with the terms as set forth in the Official Statement and Notice of Sale and Bidding Instructions.
We agree to accept delivery of the Certificates utilizing the Book-Entry-Only System through DTC and make payment for the Initial Certificate in
immediately available funds in the Corporate Trust Division, Norwest Bank Minnesota, National Association, Minneaplis, Minnesota, not later than
10:00 AM, CDT, on June IS, 1995, or thereafter on the date the Certificates are tendered for delivery, pursuant to the terms set forth in the Notice
of Sale and Bidding Instructions.
The undersigned agrees to complete, execute, and deliver to the City, at least six business days prior to delivery of the Certificates, a certificate
relating to the "issue price• of the Certificates in the fonn and to the effect accompanying the Notice of Sale and Bidding Instructions, with such
changes thereto as may be acceptable to the City.
We agree to pronde in writing the initial reoffering prices and other terms, if any, to the F"manclal Advisor by the dose of the next business
day after the award.
Respectfully submitted,
~--------~~~----~-------Authorized Representative
ACCEPrANCECLAUSE
The above and foregoing bid is hereby in all things accepted by the City of Lubbock, Texas, subject to and in accordance with the Notice of Sale and
Bidding Instructions, this the II th day of May, 1995.
ATTEST: Mayor
City of Lubbock, Texas
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City Secretary
ISSUE PRICE CERTIFICATE
The undersigned hereby certifies with respect to the sale of $2,000,000 CITY OF LUBBOCK, TEXAS TAX AND HOTEL
OCCUPANCY TAX SURPLUS REVENUE CERTIFICATES OF OBLIGATION, SERIES 1995 (the "Certificates"):
1. The undersigned is the underwriter or the manager of the syndicate of underwriters which has purchased the Certificates from
City of Lubbock, Texas (the "Issuer•) at competitive sale.
2. The undersigned and/or one or more other members of the underwriting syndicate, if any, have made a bona fide offering
to the public of the Certificates of each maturity at the respective prices set forth below.
3. The initial offering price (expressed as a percentage of principal amount or yield and exclusive of accrued interest) for the
Certificates of each maturity at which a substantial amount of the Certificates of such maturity was sold to the public is as set
forth below:
Principal Offering
Amount Year of Price
Maturing Maturi!E U2lYield)
$ 265,000 1996 %
310,000 1997 %
330,000 1998 %
345,000 1999 %
365,000 2000 %
385,000 2001 %
4. The term "public," as used herein, means persons other than bondhouses, brokers, dealers, and similar persons or
organizations acting in the capacity of underwriters or wholesalers.
5. The offering prices described above reflect current market prices at the time of such sales.
6. The undersigned and/or one or more other members of the underwriting syndicate, as the case may be, (bave)(have not)
purchased bond insursnce for the Certificates. The bond insursnce, if any, bas been purchased from--------
(the •tnsurer") for a premium cost of$ (net of any nonguarantee cost, e.g., rating agency fees). The amount
of such cost is set forth in the Insurer's commitment and is separately stated from all other fees or charges payable to the
Insurer. The premium does not exceed a reasonsble charge for the transfer of credit risk taking into account payments charged
by guarantors in comparable transactions (including transactions in which a guarantor has no involvement other than as a
guarantor). The present value of the debt service savings expected to be realized as a result of such insurance, discounted at
a rate equal to the yield on the Certificates which results after recovery of the insursnce premium, exceeds the present value
of the bond insurance premium.
7. The undersigned understands that the statements made herein will be relied upon by the Issuer in its effort to comply with
the conditions imposed by the Internal Revenue Code of 1986, as amended, on the excludability of interest on the Certificates
from the gross income of their owners.
EXECUTED and DELIVERED this----day of------'' 1995.
(Name of Underwriter or Manager)
By:~-------------
Title
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No Text
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NOTICE OF SALE
AND
BIDDING INSTRUCTIONS
ON
$4,690,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
GENERAL OBLIGATION BONDS, SERIES 1995
Sealed Bids Due Thursday, May 11, 1995, at 11:00 AM, CDT
THE SALE
Bonds Offered ror Sale at Competitive Bidding
The City of Lubbock, Texas, is offering for sale its $4,690,000 General Obligation Bonds, Series 199S (the "Bonds").
Address of Bids
Sealed bids, plainly marked "Bid for Bonds", should be addressed and delivered to "Mayor and City Council, City of Lubbock,
Texas" and delivered to the City Secretary at the Municipal Complex, 1625 13th St., Lubbock, Texas, prior to 11:00 AM, COT,
on the date of the bid opening. All bids must be submitted on the Official Bid Form, without alteration or interlineation.
Bids by Telephone or Facsimile
Bidders must submit SIGNED Official Bid Forms to JOE W. SMITH, FIRST SOUTHWEST COMPANY, 402 CYPRESS,
SOITE 103, ABILENE, TEXAS 79601, and submit their bid by telephone or facsimile (fax) on the date of the sale. ·
Telephone bids will be accepted at 806-767-3245, between 9:30AM, COT and 10:30 AM, COT.
Fax bids must be received between 9:30AM, COT and 10:30 AM, COT on the date of the sale at 806-762-3623, attention Joe
w; Smith.
First Southwest Company will not be responsible ror submitting any bids received after the above deadlines.
First Southwest Company assumes no responsibility or liability with respect to any irregularities associated with the submission
of bids if telephone or fax options are exercised.
Place and Time of Bid Opening
The bids for the Bonds will be publicly opened and read in the City Council Chambers, Municipal Complex, at 11:00 AM,
COT, Thursday, May 11, 1995.
Award or the Bonds
The City Council will take action to award the Bonds (or reject all bids) immediately following the bid opening and adopt an
ordinance authorizing the Bonds and approving the Official Statement (the "Ordinance").
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THE BONDS
Description
The Bonds will be dated May 15, 1995 (the "Bond Date"), and interest will be due on February 15, 1996, and on each
August 15 and February 15 thereafter until the earlier of matu~ty or prior redemption. The Bonds will be issued only in fully
registered form in any integral multiple of $5,000 for any orie maturity. The Bonds will mature on February 15 in each year
as follows: ·
Principal Principal Principal
Year Amount ~ Amount ~ Amount
1996 $230,000 2003 $235,000 2009 ' $235,000
1997 230,000 2004 235,000 2010 235,000
1998 235,000 2005 235,000 2011 235,000
1999 235,000 2006 235,000 2012 235,000
2000 235,000 2007 235,000 2013 235,000
2001 235,000 2008 235,000 2014 235,000
2002 235,000 2015 235,000
Book-Entry-Only System
The City intends to utilize the Book-Entry-Only System of The Depository Trust Company ("DTC"). See "Bond Information -
Book-Entry-Only ~ystem". in the Official Statement.
Redemption
The City reservesthe right, at its option, to redeem Bonds having stated maturities on and after February 15, 2006, in whole
or m part in principal amounts of $5,000 or any integral multiple therrof, on February 15, 2005, or any date thereafter, at the
par value theredf plus accrued interest to the date· fixed for redemption.
Paying Agent/Registrar
The :Initial' Paying AgeritlRegistrar shall be Norwest Bank Minnesota, National Association, Minneapolis, Minnesota; Co-
Registrar shall be Norwest Bank Texas, National Association, Lubbock, Texas (see "Bond and Certificate Information -Paying
Agent/Registrar" in the Official Statement).
So,aarce ()f Pay~ent
The Bonds constitute direct and voted general obligations of the City, payable from the levy and collection of a direct and
continuing ad valorem tax, within the limits prescribed by law, on all taxable property within the City, as provided in the
Ordinance. · ·
F~rthe~ details regarding the Bonds are set forth in the Official Statement.
CONDITIONS OF SALE
Ty~;~e of Bids and Interest Rates
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The Bonds will be sold in one block on an "All or None" basis, and at a price of not less 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 1120 of 1 % and the effective interest rate must not exceed
15%. The highest rate bid may not exceed tbe lowest rate bid by more tban 2% in rate. No limitation is imposed upon
bidders as to the number of rates or changes which may be used. All Bonds of one maturity must bear one and the same rate.
No bids involving supplemental interest rates will be considered. Each bidder shall state in the bid the total interest cost in
dollars and the effective interest rate determined thereby (calculated in the manner prescribed by Article 717k-2, V ATCS), which
shall be considered informative only and not as a part of the bid. ·
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Basis for Award
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For the purpose of a~lll'di.ng 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 Bond l)ate to their respective maturities,
using the table of Bond Years herein, and deducting therefrom the premium bid, if any (the "Net Interest Cost Calculation").
Subject to the City's right to reject any or all bids on the Bonds and to waive &nJ' irregularities except time of filing, the Bids
will be awarded to the bidder or syndicate account manager whose name first appears on the respective Official Bid Form (the
"Purchaser") whose bid, based on the Net Interest Cost Calc~on, 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 $?3,800.00, is required •. Such Good Faith
Deposit shall be a bank cashier's check or certified check, which is to be retained uncashed by the City pending the Purchaser's
compliance with terms of the bid and the Notice of Sale and Bidding Instructions. The Good Faith Deposit may accompany Jhe
Official Bid Form or it may be submitted separately. If submitted separately, it shall be made available to the City prior to the
opening of the bids, and shall be accompanied by instructions from the bank on which drawn which authorize its use as a Good
Faith Deposit by the Purchaser who shall be named in such instructions. The Good Faith Deposit .of the Purchaser will be
returned to the Purchaser upon payment for 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 the 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 0~ THE BONDS AND ACCOMPANYING DOCUMENTS
CUSIP Numbers
It is anticipated that CUSIP identification numbers will appear on the Bonds, but neither the failure to print or type 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 Bidding Instructions and the terms of the
Official Bid Form. All expenses in relation to the printing or typing 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 shaD be the respoDSl"bility of and
shaD be paid for by the Purchaser.
Delivery of Bonds
Initial Delivery will be accomplished by the issuance of one Initial Bond (also called the "Bond" or "Bonds") either in ·rwed
or printed form, in the aggregate principal amount of $4,690,000, payable in stated installments to the Purchaser, signed by the
Mayor and City Secretary, approved by the Attorney General, and registered and manually signed by the Comptroller of Public
Accounts. Upon delivery of the Initial Bond, it shaD be immediately cancelled and one definitive Bond for each maturitY will
be registered and delivered only to Cede & Co., and deposited with DTC in connection with DTC's Book-Entry-Only System.
Initial Delivery will be at the principal office of the Paying Agent/Registrar. Payment for the Bonds must be made in ·
immediately available funds for unconditional credit to the City, or as otherwise directed by the City. The Purchaser will be
given six business days' notice of the time fixed for delivery of the Bonds. It is anticipated that delivery of the Bond(s) can be
made on or about June 15, 1995, and it is understood and agreed that the Purchaser will accept delivery and make payment for
the Bonds by 10:00 AM, COT, on June 15,1995, or thereafter on the date the Bond is tendered for delivery, up to and including
June 29, 1995. If for any reason the City is unable to make delivery on or before June 29, 1995, the City shaD immediately
contact the Purchaser and offer to allow the Purchaser to extend its offer for an additional thirty days. If the Purchaser does
not elect to extend its offer within six days thereafter, then its Good Faith Deposit will be returned, and both the City and the
Purchaser shaD be relieved of any further obligation. In no event shaD 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 the Purchaser's reCeipt of (a) the legal opinion
of Fulbright & Jaworski L.L.P ., 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.
In order to provide the City with information required to enable it to comply with certain conditions of the Internal Revenue
Code of 1986 relating to the exclusion of interest on the Bonds from the gross income of their owners, the· Purchaser will be
required to complete, execute, and deliver to the City (on or before the 6th business day prior to the delivery of the Bond) a
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inability to sen a substantial amount of Bonds at a particular price prior to delivery. Each bidder, by submitting its bid,
agrees to complete, execute, and deliver such a certificate by the date of delivery of the Bonds, if its bid is accepted by the City.
It will be the responsibility of the Purchaser to institute such syndicate reporting requirements to make such investigation, or
otherwise to ascertain the facts necessary to enable it to make such ·certification with reasonable certainty. Any questions
concerning such certification should be directed to Bond Counsel.
Legal Opinions
The Bonds are offered when, as and if issued, subject to the approval of the Attorney General of the State of Texas. Delivery
of and payment for the Bonds is subject to the receipt by the Purchaser of opinions of Bond Counsel, to the effect that the Bonds
are valid and binding obligations of the City and that the interest on the Bonds will be excludable from gross income for federal
income tax purposes under existing law, subject to the matters described under "Other Relevant Information -Tax Exemption"
in the Official Statement, including the alternative minimum tax on corporations.
CertiflC8tion of Ofrlcial Statement
At the time of payment for and Initial Delivery of the Bonds, the City will execute and deliver to the Purchaser a certificate in
the form set forth in the Official Statement.
Change in Tax Exempt Status
At any time before the Bo.nds. are tendered for delivery, the purchaser may withdraw its bid if the interest received by private
holders on bonds of the same type and character shall be declared to be taxable income under present federal income tax laws,
either by ruling of the Internal Revenue Service or by a decision of any Federal court, or shall be declared taxable or be required
to be taken into account in computing any federal income taxes, by the terms of any federal income tax law enacted subsequent
to the date of this Notice of Sale and Bidding Instructions.
GENERAL
Financial. Advisor
First Southwest Company is employed as Financial Advisor to the City in connection with the issuance of the Bonds. The
Financial Advisor's fee for services rendered with respect to the sale of the Bonds is contingent upon the issuance and delivery
of the Bonds. First Southwest Company may submit a bid for the Bonds, either independently or as a member of a syndicate
organized to. submit a !'id for the Bonds. First Southwest Company, in its capacity as Financial Advisor, bas relied on the
opblion of Bond Counsel and h~ not verified and does not assume any responsibility for the information, covenants and
rei)resentations contained in any of the legal documents with respect to the federal income tax status of the Bon&, or the j,ossible
i.rnPact !>fany present, pending or future actions taken by any legislative or judicial bodies.
B~ue Sky Laws
By submissi~n of its bid, the Purchaser represents that the sale of the Bonds in states other than Texas will be ma9e only
pursuant to exemptions from registration or, where necessary, the Purchaser will register the Bonds in accordance with the
securities law o~ 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 ~ctiop is necessary, provided~ however, that the city shall not be obligated to execute a general or special consent to servi~
of process in any such jurisdiction.
Not an Offer to Sell
This Notice of Sale and Bidding Instructions does not alone constitute an offer to sell the Bonds, but is merely·notice of the ,!!ale
of the Bonds. The offer to seD 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 Additiorutl Debt
$2,000,000 Tax and Hote• Occupancy Tax Surplus Revenue Certificates of Obligation, Series 1995, and $900,000 Tax and'
Airport Su.rplus Revenue Certificates of Obligation, Series 1995, are also being offered for sale May 11, 1995.
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Following sale and issuance of the above Bonds and Certificates, the City will have $10,247,000 authorized but unissued general
obligation bonds. Of these the City's preliminary plans are to seD approximately $3,232,000 in 1996, $2,120,000 in 1997 and
$1,157,000 in 1998 totaling $6,S09,000; there are no present plans to seD $3,738,000 of the authorized bonds. The City has
no other current plans for the issuance of general obligation debt.
Ratings
The presently outstanding tax supported debt of the City is rated "Aa" by Moody's Investors Service, Inc. ("Moody's") and
"AA • by Standard & Poor's Ratings Group, a division of McGraw Hill ("S&P"). Applications for contract ratings on this issue
have been made to both Moody's and S&P. The results of their determinations will be provided as soon as possible.
Municipal Bond Insurance .
In the event the Bonds are qualified for municipal bond insurance, and the Purchaser desires to purchase such insurance, the
cost therefor wiJI be paid by the Purchaser. Any fees to be paid .to the rating agencies as a result of said insurance will be
paid by the City. It will be the responsibility of the Purchaser to disclose the existence of insurance, its terms and the effect
thereof with respect to the reoffering of the Bonds. ·
The Off"lcial Statement and Compliance with SEC Rule IScl-12
The City has prepared the accompanying Official Statement and, for the limited purpose of complying with SEC Rule 1Sc2~12,
deems such Official Statement to be final as of its date within the meaning of such Rule for the purpose of review prior to
bidding. Representations made and to be made by the City concerning the absence of material misstatements and omissions in
the Official Statement are addressed elsewhere in this Notice of Sale and Bidding Instructions and in the Official Statement.
The City will furnish to the Purchaser, or Purchasers, acting through a designated senior representative, in accordance with
instructions received from the Purohaser(s), within seven (T) business days from the sale date an aggregate of 100 copies of the
Official Statement including a like number of copies of a Supplement reflecting interest rates and other terms relating to the
initial reoffering of the Bonds. The cost of a reprinted Official Statement, if the Purchaser(s) shall so elect, and the cost of any
Official Statement in excess of the number specified shall be prepared and distributed at the cost of the Purohaser(s). The
Purchaser(s) shaD be responsible for providing in writing the initial reoffering prices and other terms, if any, to the Finanoial
Advisor by the close of the next business day after the award. Except as noted above, the City assumes no responsibility or
obligation for the distribution or delivery of any copies of the Official Statement in connection with the offering or reoffering
of the subject securities.
Additional Copies 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 Offioial
Statement, as available over and above the normal mailing, may be obtained at the offices of First Southwest Company,
Investment Bankers, 1700 Pacific Avenue, Suite SOO, Dallas, Texas 7S201, Financial Advisor to the City.
On the date of the sale, the City Council will, in the Ordinance authorizing the issuance of the Bonds, confirm its approval of
the form and content of the Official Statement, and any addenda, supplement or amendment thereto, and authorize its use in the
reoffering of the Bonds by the Purchaser.
ATI'EST:
BETIY M. JOHNSON
City Secretary
April 20, 199S
-v-
DAVID R. LANGSTON
Mayor
City of Lubbock, Texas
No Text
BOND YEARS
Accumulated
Year Amount Bond Years Bond Years Year
1996 $ 230,000 172.50 172.50 1996 ""'
1997 230,000 402.50 575.00 1997
1998 235,000 646.25 1,221.25 1998
1999 235,000 881.25 2,102.50 1999
2000 235,000 1,116.25 3,218.75 2000
2001 235,000 1,351.25 4,570.00 2001
2002 235,000 1,586.25 6,156.25 2002
2003 235,000 1,821.25 7,977.50 2003
2004 235,000 2,056.25 10,033.75 2004
2005 235,000 2,291.25 12,325.00 2005
2006 235,000 2,526.25 14,851.25 2006
2007 235,000 2,761.25 17,612.50 2007
2008 235,000 2,996.25 20,608.75 2008
2009 235,000 3,231.25 23,840.00 2009
2010 235,000 3,466.25 27,306.25 2010
2011 235,000 3,701.25 31,007.50 2011
2012 235,000 3,936.25 34,943.75 2012
2013 235,000 4,171.25 39,115.00 2013
2014 235,000 4,406.25 43,521.25 2014 -2015 235,000 4,641.25 48,162.50 2015
Average Maturity ---------------------------------10.269 Years --
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Honorable Mayor and City Council
City of Lubbock, Texas
Membera of the City Council:
OmCIAL BID FORM
May 11, 1995
Reference is made to your Official Statement and Notice of Sale and Bidding Instructions, dated April20, 1995, of $4,690,000CrrY OF LUBBOCK,
TEXAS GENERAL OBUGATION BONDS, SERIES 1995, both of which constitute a part herenf.
For your legally iii5Ued Bonds, as descn"bed in aaid 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:
Principal Interest Principal Interest Principal Interest
Maturisx Amount Rate M;aturitt Amount J!!te Maturity Amount Rate
2-15-1996 $230,000 ---% 2-IS-2003 $235,000 ---% 2-IS-2009 $235,000 %
2-15-1997 230,000 __ % 2-15-2004 235,000 __ % 2-15-2010 235,000 %
2-15-1998 235,000 __ % 2-15-2005 235,000 __ % 2-15-2011 235,000 %
2-15-1999 235,000 ---% 2-15-2006 235,000 __ % 2-15-2012 235,000 %
2-15-2000 235,000 __ % 2-15-2007 235,000 __ % 2-15-2013 235,000 %
2-15-2001 235,000 ---% 2-15-2008 235,000 __ % 2-15-2014 235,000 %
2-15-2002 235,000 __ % 2-15-2015 235,000 %
Our calculation (which is not a part of this bid) of the interest cost from the above is:
Total Interest Cost $
Less Premium
NET INTEREST COST $
EFFECTIVE INTEREST RATE %
We are having the Bonds of the following maturities insured
by at a premium of$ ,Bid l!temium to J!e uaid bi d!e Purchaser. Any
fees to be paid to the rating agencies as a result of said insurance will be paid bi the City.
The Initial Bond shall be registered in the name of • We will advise The Depository Trust
Company ("DTC ") of registration instructions at least five business days prior to the date set for Initial Delivery.
A bank cashier's check or certified check of the Bank, , in the
amount of $93,800.00, which represents our Good Faith Deposit (is attached hereto) or (has been made available to you prior to the opening of this
bid), and is submitted in accordance with the terms as set forth in the Official Statement and Notice of Sale and Bidding Instructions.
We agree to accept delivery of the Bonds utilizing the Book.-Entry-Only System through DTC and make payment for the Initial Bond in immediately
available funds in the Corporate Trust Division, Norwest Bank Minnesota, National Association, Minneapolis, Minnesota, not later than 10:00 AM,
COT, on June IS, 1995, or therest\er on the date the Bondsare tendered for delivery, pursuant to the terma set forth in the Notice of Sale and Bidding
Instructions.
The undersigned agrees to complete, execute, and deliver to the City, at least six business days prior to delivery of the Bonds, a certificate relating
to the "issue price" of the Bonds in the form and to the effect accompanying the Notice of Sale and Bidding Instructions, with such changes thereto
as may be acceptable to the City.
We agree to prol'ide in writing the initial reofl'ering prices and other terms, if any, to the Ymancial Admor by the dose or the next business
day after the award.
Respectfully submitted,
BY--------~~~~----~---------Autborized Representative
ACCEPTANCE CLAUSE
The above and foregoing bid is hereby in all things accepted by the City of Lubbock, Texas, subject to and in accordance with the Notice of Sale and
Bidding Instructions, this the 11th day of May, 1995.
ATTEST: Mayor
City of Lubbock, Texas
C'tty Secretary
No Text
ISSUE PRICE CERTIFICATE
The undersigned hereby certifies with respect to the sale of $4,690,000 CITY OF LUBBOCK, TEXAS GENERAL
OBLIGATION BONDS, SERIES 1995 (the "Bonds"):
1. The undersigned is the underwriter or the manager of the syndicate of underwriters which bas purchased the Bonds from
City of Lubbock, Texas (the "Issuer") at competitive sale.
2. The undersigned and/or one or more other members of the underwriting syndicate, if any, have made a bona fide offering
to the public of the Bonds of each maturity at the respective prices set forth below.
3. The initial offering price (expressed as a percentage of principal amount or yield and exclusive of accrued interest) for the
Bonds of each maturity at which a substantial amount of the Bonds of such maturity was sold to the public is as set forth below:
Principal Offering Principal Offering
Amount Year of Price Amount Year of Price
Maturing Maturi~ (!!Nield} Maturing Maturi~ (!l/Yiel5!}
$230,000 1996 % $235,000 2006 %
230,000 1997 % 235,000 2007 %
235,000 1998 % 235,000 2008 %
235,000 1999 % 235,000 2009 %
235,000 2000 % 235,000 2010 %
235,000 2001 % 235,000 2011 %
235,000 2002 % 235,000 2012 %
235,000 2003 % 235,000 2013 %
235,000 2004 % 235,000 2014 %
235,000 2005 % 235,000 2015 %
4. The term "public," as used herein, means persons other than bondhouses, brokers, dealers, and similar persons or
organizations acting in the capacity of underwriters or wholesalers.
5. The offering prices described above reflect current market prices at the time of such sales.
6. The undersigned and/or one or more other members of the underwriting syndicate, as the case may be, (have)(have not)
purchased bond insurance for the Bonds. The bond insurance, if any, has been purchased from (the
"Insurer") for a premium cost of$ (net of any nonguarantee cost, e.g., rating agency fees). The amount
of such cost is set forth in the Insurer's commitment and is separately stated from all other fees or charges payable to the
Insurer. The premium does not exceed a reasonable charge for the transfer of credit risk taking into account payments charged
by guarantors in comparable transactions (including transactions in which a guarantor has no involvement other than as a
guarantor). The present value of the debt service savings expected to be realized as a result of such insurance, discounted at
a rate equal to the yield on the Bonds which results after recovery of the insurance premium, exceeds the present value of the
bond insurance premium.
7. The undersigned understands that the statements made herein will be relied upon by the Issuer in its effort to comply with
the conditions imposed by the Internal Revenue Code of 1986, as amended, on the excludability of interest on the Bonds from
the gross income of their owners.
EXECUTED and DELIVERED this-----day of------' 1995.
(Name of Underwriter or Manager)
By:'------------
Title
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OFFICIAL STATEMENT
Dated April 20, 1995
NEW ISSUE -Book-Entry-Only
In the opinion of Bond Counsel, interest on the Bonds will be excludable from gross income for federal income tax purposes
under existing law, subject to the matters described under "Other Relevant Information-Tax Exemption" herein, including the
alternative minimum tax on corporations.
Dated: May 15, 1995
$4,990,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
GENERAL OBLIGATION BONDS, SERIES 1995
Due: February 15, as shown below
Interest on the $4,690,000 City of Lubbock, Texas General Obligation Bonds, Series 1995 (the "Bonds") will accrue from the
dated date as shown above and will be payable February 15 and August 15 of each year, commencing February 15, 1996, and
will be calculated on the basis of a 360-day year of twelve 30-day months. The Bonds will be initially registered and delivered
only to Cede & Co., the nominee of The Depository Trust Company ("DTC ")pursuant to the Book-Entry-Only System described
herein. Beneficial ownership of the Bonds may be acquired in denominations of $5,000 or integral multiples thereof. No
physical delivery of the Bonds wiD be made to the owners thereof. Principal of, premium, if any, and interest on the Bonds
will be payable by the Paying Agent/Registrar to Cede & Co., which will make distribution of the amounts so paid to the
beneficial owners of the Bonds. See "Bond Information -Book-Entry-Only System".
These Bonds were authorized at an election held May 1, 1993, and are direct and voted general obligations of the City of
Lubbock, Texas (the "City"), payable from the levy and collection of an ad valorem tax, within the limits prescribed by law,
on all taxable property within the City, as provided in the ordinance authorizing the Bonds (the "Ordinance") (see "Bond and
Certificate Information-"Authority for Issuance-the Bonds" and "Security for Bonds").
The initial Paying Agent/Registrar shall be Norwest Bank Minnesota, National Association, Minneapolis, Minnesota; Co-
Registrar shall be Norwest Bank Texas, National Association, Lubbock, Texas (see "Bond and Certificate Information-Paying
Agent/Registrar").
Proceeds from the sale of the Bonds will be used for library facilities improvements, park improvements, Fire Department
Emergency Traffic Control System improvements and to pay costs of issuance.
MATURITY SCHEDULE
Price Price
or or
Amount Maturi!Y Rate Yield Amount Maturi!Y Rate Yield
$230,000 1996 $235,000 2006
230,000 1997 235,000 2007
235,000 1998 235,000 2008
235,000 1999 235,000 2009
235,000 2000 235,000 2010
235,000 2001 235,000 2011
235,000 2002 235,000 2012
235,000 2003 235,000 2013
235,000 2004 235,000 2014
235,000 2005 235,000 2015
The City reserves the right, at its option, to redeem Bonds having stated maturities on and after February 15, 2006, in whole
or in part in principal amounts of $5,000 or any integral multiple thereof, on February 15, 2005, or any date thereafter, at the
par value thereof plus accrued interest to the date fixed for redemption (see •Bond and Certificate Information -Redemption
of Bonds").
The presently outstanding tax supported debt of the City is rated "Aa" by Moody's Investors Service, Inc. ("Moody's") and
"AA • by Standard & Poor's Rating Group, a division of McGraw-Hill ("S&P"). Requests for rating for the Bonds have been
made to both rating services (see "Other Relevant Information-Ratings").
The Bonds are offered for delivery when, as and if issued and received by the purchaser(s) and subject to the approving opinion
of the Attorney General of the State of Texas and of Fulbright & Jaworski L.L.P., Bond Counsel, Dallas, Texas. The legal
opinion will be printed on or attached to the Bonds (see Appendix B, "Form of Bond Counsel's Opinion -The Bonds").
It is expected that the Bonds will be tendered for delivery to the initial purchaser(s) through The Depository Trust Company.
Delivery of the Bonds is anticipated on or about June 15, 1995.
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OFFICIAL STATEMENT
Dated April %0, 1995
NEW ISSUE -Book-Entry-Only
In the opinion of Bond Counsel, interest on the Certificates will be excludable from gross income for federal income tax
purposes under existing law, subject to the matters described under "Other Relevant Information-Tax Exemption" herein,
including the alternative minimum tax on corporations.
$2,000,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
TAX AND HOTEL OCCUPANCY TAX SURPLUS REVENUE CERTIFICATES OF OBLIGATION, SERIES 1995
Dated: May 15, 1995 Due: February 15, as shown below
Interest on the $2,000,000 City of Lubbock, Texas Tax and Hotel Occupancy Tax Surplus Revenue Certificates of Obligation,
Series 1995 (the "Certificates") will accrue from the dated date as shown above and will be payable Februacy 15 and August
15 of each year, commencing Februacy 15, 1996, and will be calculated on the basis of a 360-day year of twelve 30-day months.
The Certificates will be initially registered and delivered only to Cede & Co., the nominee of The Depository Trust Company
("DTC") pursuant to the Book-Entry-Only System descnbed herein. Beneficial ownership of the Bonds may be acquired in
denominations of $5,000 or integral multiples thereof. No physical delivery or the CertifiCates will be made to the owners
thereof. Principal of, premium, if any, and interest on the Certificates will be payable by the Paying Agent/Registrar to Cede
& Co., which will make distribution of the amounts so paid to the beneficial owners of the Certificates. See "Bond and
Certificate Information-Book-Entry-Only System".
The Certificates are issued pursuant to the Constitution and general laws of the State of Texas, particularly Subchapter C of
Chapter 271, Texas Local Government Code (The Certificate of Obligation Act of 1971), as amended, and are direct obligations
of the City of Lubbock, Texas (the "City"), payable from the levy and collection of an ad valorem tax, within the limits
prescribed by law, on all taxable property within the City. Additionally, the Certificates are payable from and secured by a
pledge of revenues derived from a Hotel Occupancy Tax, as provided in the ordinance authorizing the Certificates (the
"Ordinance") (see "Bond and Certificate Information, the Certificates-"Authority for Issuance" and "Security for Certificates").
The initial Paying Agent/Registrar shall be Norwest Bank Minnesota, Nation.al Association, Minneapolis, Minnesota; Co-
Registrar shall be Norwest Bank Texas, National Association, Lubbock, Texas (see "Bond and Certificate Information-Paying
Agent/Registrar").
Proceeds from the sale of the Certificates will be used to pay contractual obligations incurred for Civic Center improvements
and for professional services including costs of issuance.
MATURITY SCHEDULE
Amount
$265,000
310,000
330,000
345,000
365,000
385,000
The Certificates are not optional for prior redemption.
,Maturity
1996
1997
1998
1999
2000
2001
Price
or
Yield
The presently outstanding tax supported debt of the City is rated "Aa" by Moody's Investors Service, Inc. ("Moody's") and
"AA" by Standard & Poor's Rating Group, a division of McGraw-Hill ("S&P"). Requests for rating for the Certificates have
been made to both rating services (see "Other Relevant Information -Ratings").
The Certificates are offered for delivery when, as and if issued and received by the purcbaser(s) and subject to the approving
opinion of the Attorney General of the State of Texas and of Fulbright & Jaworski L.L.P., Bond Counsel, Dallas, Texas. The
legal opinion will be printed on or attached to the Certificates (see Appendix C, "Form of Bond Counsel's Opinion-The
Certificates").
It is expected that the Certificates will be tendered for delivery to the initial purchaser(s) through The Depository Trust
Company. Delivery of the Certificates is anticipated on or about June 15, 1995.
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No dealer, salesman, or any other person has been authorized to give any iriformation or make any representation, other than
those contained herein, in connection l'lith the offering of these Bonds and Certificates, and if given or mmle such information
or representation must not be relied upon. 'l1u! 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 Cily .since the tklte hereof.
TABLE OF CONTENTS.
OFFICIAL STATEMENT
Description of Bonds • • .. .. . • .. .. .. .. 1
Description of Certificates . • • . . • • • • . . • • 3
CITY ADMINISTRATION
Elected Officials • . . • • . • . • . . . . • . . . . . 6
Appointed Officials • . • . . . • • . • . • . . . . . . 6
Consultants and Advisors • • . . • • • • . • • • . • 7
SELECTED DATA FROM THE OFFICIAL
STATEMENT . . . . • . . . . • • • • • • . • • . • 8
BOND AND CERTIFICATE INFORMATION
The Bonds ; .•..•...........•...•
Authority for Issuance • . • . • . . • • • . . . • •
Security for the Bonds . . . • . • . . • . • . • • .
Redemption of the Bonds . . • . . . . • • • . . .
Authority for Issuance . . • • • . • • • . . . • . •
The Certificates . . • . . • • . . . . • • . . • • •
10
10
10
Security for the Certificates • . . . . . • . • . . .
Redemption of the Certificates . . . • • • . . • •
Book-Entry-Only System . • . . . • • • . . . • .
Paying Agent/Registrar ..• , .•.•..•...
Transfer, Exchange and Registration . • • • . • 13
Limitation on Transfer of Bonds and
10
10
10
10
12
12
13
Certificates Called for Redemption • • • . 14
Record Date for Interest Payment • • . . . • • •
Use of Bond Proceeds . • • • . • • . • • • • • . •
14
14
Sources and Uses of Funds-the Bonds . • • • 14
Use of Certificate Proceeds • . . • . • • . • . • . 14
Sources and Uses of Funds-the Certificates 14
TAX INFORMATION
Ad Valorem Tax Law 15
Valuation, Exemptions and Debt Obligations . 16
Taxable Assessed Valuations by Category . . • 18
Valuation and Funded Debt History . • • . . • • 19
Tax Rate, Levy and Collection History . . • • • 20
Levy of Hotel Occupancy Tax • • • . • • • . . • 21
Hotel Occupancy Tax • . . . • . • • . • • • • . • 21
Principal Hotel Occupancy Taxpayers . . • • • 21
Ten Largest Taxpayers • • . • • • • . . • • • . . 22
Tax Rate Limitation . • • • . . • • • • • • • • . . 22
DEBT INFORMATION
Debt Service Requirements (New Issues) 23
Combined Debt Service Requirements • . . • • 24
Division of Debt Service Requirements • • • • • 25
Assessed Valuations, Tax Rates, Direct and
Overlapping Funded Debt Payable from
Ad Valorem Taxes and Authorized But
Unissued Bonds of Overlapping Taxing
Jurisdictions . . • . • • . • • • . • . • • • . 26
s
Interest and Sinking Fund Budget Projection . • . • 27
Computation of Self-supporting Debt
The Waterworks System . • • • • • • . • • . . 27
The Sewer System . • . . . • . . . • . . • . . . 28
The Solid Waste Disposal System . • • . . • . 29
Authorized General Obligation Bonds . . . . • • . . 29
Anticipated Issuance of Authorized General Obligation
Bonds and Other Obligations . . • . . • . . • • 29
Funded Debt Limitation . • . . . . . . • . . . • • . • 29
Other Obligations • • . . . • . • . . . • • • . • . . • . 30
Pension Funds . . • . • . . . . . • . • . . . . • . . . • 30
FINANCIAL lNFORMA TION
General Fund Revenues and Expenditures 31
Municipal Sales Tax History • • • • • • • . • . • . . 32
Financial Policies . • • • . • • • • • • • . • • . . . • • 32
INVESTMENTS • • • . • • • • • . • . • • . • • • . . • • • • 33
OTHER RELEVANT INFORMATION
Ratings • . • • • . . • • • . . • • • . . . • . . . . • • • 36
Tax Exemption . • • • . • . . • . . • • . . . • • • . . • 36
Tax Accounting Treatment of Discount and Premium
on Certain Bonds and Certificates • . . . • • • 36
Litigation • • • . • • • • • . . • • . • • . • • . . • • • · • 37
Registration and Qualification of Bonds and Certificates
for Sale • . . . • . • . • • • • . . • • • • . . . • 37
Legal Investments and Eligibility to Secure Public
Funds in Texas • • • • . • • . . • • . . • • • . • 38
Legal Opinions and No-Litigation Certificate. . • . 38
Authenticity of Financial Data and Other Information 38
Financial Advisor . • • . . • • • • . . • • . . . . • • • 3 8
Certification of the Official Statement . • • • . . • • 39
APPENDICES
General Information Regarding the City • • • • . . • A
Form of Bond Counsel's Opinion -the Bonds B
Porm of Bond Counsel's Opinion· the Certificates C
EXCERPTS FROM THE COMPREHENSIVE ANNUAL
FINANCIAL REPORT • • • • • . . . . . • • • Enclosure
The cover page hereof, this page, the appendices included
herein, the Financial Statements, and any addenda,
supplement or amendment thereto, are part of the Official
Statement.
CITY ADMINISTRATION
Elected Officials
Citv Council
David R. Langston
Mayor
Randy Neugebauer
Mayor Pro Tem
and Councilmember
Victor Hernandez
Councilmember
T .J. ·Patterson
Councilmember
Windy Sitton
Councilmember
Max Ince
Councilmember
Alex "Ty" Cooke
Councilmember
Appointed Officials
Name
Bob Cass City Manager
John C. Ross, Jr. City Attorney
Betty M. Johnson City Secretary
Length
of Service
3 Years
3 Years
1 Year
11 Years
1 Year
3 Years
3 Years
Position
Gavino Sotelo First Assistant City Manager
Quentin Thomas Assistant City Manager
Debra Forte' Assistant City Manager
Carolyn Aliamus Director of Culture, Leisure and
Recreation
I. Robert Massengale Director ofElectric Utilities
Term
Em ires
May, 1996
May, 1998
May, 19.98
May, 1996
May, 1998
May, 1996
May, 1996
Doug Goodman Director of Health and Community
Services
Mary Andrews Director of Human Resources
Tom Tuning Director of Information and
Communication Services
Anna Mosqueda Director of Management Services
Jim Bertram Director of Strategic Planning ·
Mark Hindman Director of Support Services
Larry Hoffman Director of Transportation
Terry Ellerbrook Director of Water Utilities
Don Stevens Fire Chief
Ken Walker ~ Chief of Police
Betsy Wood, CPA Chief Accountant
6
Occ:~mation
Attorney-at-Law
Investments
Attorney-at-Law
Co-Publisher, SouthWest Digest
Businesswoman
~dent, Ince.Insurance Company
Investments
Length of
Length of Employment
Time in With City
This Position of Lubbock
Since September, 1992 Since April, 1976
Since August, 1978 Since August, 1978
Since March, 1993 Since April, 1990
Since March, 1995 Since March, 1995
Since May, 1994 Since May, 1994
Since January, 1995 Since January, 1995
Since March, 1994 Since March, 1994
Since December, 1994 Since February, 1980
Since August, 1993 Since June, 1980
Since March, 1994 Since August, 1988
Since October, 1993 Since October, 1989
Since December, 1994 Since November, 1989
Since November, 1993 Since September, 1970
Since November, 1993 Since May, 1987
Since November, 1993 Since September, 1982
Since November, 1994 Since March, 1982
Since August, 1986 Smce August; ·1986
Since March, 1994 Since March, 1994
Since February, 1993 Since Jainlary, 198~
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Consultants and Advisors
Consulting Engineers for Lake Alan Henry
Consulting Engineers for Wastewater Treatment and Disposal Project
Freese and Nichols, Inc.
Fort Worth, Texas
·········!>••··········· Black & Veatch
Dallas, Texas
Parkhill, Smith & Cooper, Inc.
Lubbock, Texas
·""" Consulting Engineers for Water Treatment , .••••.•••••...••.••..•..•. , . • • • . • . . . . . • HDR Engineers
Dallas, Texas
Parkhill, Smith & Cooper, Inc.
Lubbock, Texas
Auditors •••..••..•..•..•..•.•••..•.•...•..•.. , • . • . . • . Robinson Burdette Martin & Cowan, L.L.P.
Lubbock, Texas
Bond Counsel • • . • •. • . . • • . • . .. • • • • • • • . . • . . . . • • • • . . • • . • . . • . . . • • . . . • Fulbright & Jaworski L.L.P.
Dallas, Texas
Financial Advisor • •. • • . • • • • • . . . • . • • . . • • • . • . • • . • • • · . • • • • . . . • . • . . • . . . • First Southwest Company
!"'. Dallas and Abilene, Texas
!"'.
For additional infonnation regarding the City, please contact:
Mr. Mark Hindman
Director of Support Services
City of Lubbock.
P. 0. Box 2000
Lubbock, Texas 79457
(806) 767-2015
or
7
Mr. Joe W. Smith
First Southwest Company
P. 0. Box 2754
Abilene, Texas 79604-2754
(915) 672-8432
SELECTED DATA FROM mE OFFICIAL STATEMENT
The selected data on this page is subject in all respects to the more complete infonnation and detiriitions contained or
inco1p0rated in this Official Statement; The offering of the Bonds and the Certificates to potential investors is made only by
means of this entire Official Statement. No person is authorized to detach this data page from this Official Statement or to
otherwise use it without the entire Official Statement.
This data page was prepared to present the purchasers of the Bonds and the Certificates information concerning the Bonds and
the Certificates, revenues pledged to the Bonds and the Certificates, a description of the revenue base and other pertinent data,
all as more fully described herein.
The Issuer .. · ...•.•••.........•.•.
,.-;_
The Bonds ' -. -' II t II II II II II ,. • •• to • II • II a • * II II
The Certificates
Security for the Bonds • . • . . . . . • • • • .
Security for the CertifiCates
The City of Lubbock, Texas is a political subdivision located in Lubbock
County operating as a home-rule city under the laws of the State of Texas
and a charter awroved by the voters on December 27, 1911, and amended
from time to time. The Charter provides for the Council-Manager form of
government for the City. The Mayor is elected at-large for a two year term
ending in an even year. Bach of the six members of the City Council resides
in a separate single-member district and is elected by the qualified voters of
this district for a four year term. The terms of three members of the City
Council expire each even year. The Council formulates operating policy for
the City while the City Manager is the chief administrative officer.
Lubbock is the County Seat of Lubbock County, Texas, and is located on the
South Plains of West Texas approximately 320 miles west of Dallas. The
City's 1995 estimated population is 191,020. The City is approximately 104
square miles in area. Texas Tech University, a major State institution of
higher education, is located in Lubbock. · ·
The Bonds are being issued in the principal amount of $4,690,000 pursuant
to the general laws of the State of Texas, particularly Article 1175, V ATCS,
and an Ordinance passed by the City Council of the City (see "Bond and
Certificate Information • Authority for Issuance -the Bonds"). ·
The Certificates are being issued in the principal amount of $2,000,000
pursuant to the general laws of the State of Texas, particularly Subchapter
C of Chapter 271, Texas Local Government Code (The Certificate of
Obligation Act of 1971), as amended, and an Ordinance passed by the City
Council of the City (see "Bond and Certificate Information -Authority for
Issuance").
The Bonds constitute direct and voted obligations of the City payable from
a continuing ad valorem tax levied on all taxable property within the City in
an amount sufficient to provide for payment of principal and interest on all
ad valorem tax debt, within the limits prescribed by law (see "Bond and
Certificate lnfonnation-Security for the Bonds").
The Certificates constitute direct obligations of the City payable from a
combination of (i) the levy and collection of a direct and continuing ad
valorem tax, within the limits of the law, on all taxable property within the
City, and (ii) a pledge of revenues derived from the City's Hotel Occupancy
Tax as provided in the Ordinance (see "Bond and Certificate Information -
Security for Certificates").
Optional Redemption -the Bonds . . . • . . The City reserves the right, at its option, to redeem Bonds having stated
maturities on and after February 15, 2006, in whole or in part, on
February 15, 2005, or any date thereafter, at the par value thereof plus
accrued interest to the date fixed for redemption (see "Bond and Certificate
Infonnation -Redemption of the Bonds") .
. Optional Redemption -the CertifiCates The Certificates are not optional for prior redemption.
-
,...
,...
,...
,...
Tax Exemption • • . • . • • . . . • . • • . • • • . In the opinion of Bond Counsel, the interest on the Bonds and the
Certificates will be excludable from gross income for purposes of federal
income tax purposes under existing law, subject to the matters described
under "Other Relevant Information -Tax Exemption" herein, including the
_ alternative minimum tax on corporations.
Use of Bond ProCeeds . . • . . • . . • • -.· . • . Proceeds from the sale of the Bonds will be used for _library facilities
improvements, park improvements, Fire Department Emergency Traffic
Control System improvements and to pay costs of issuance.
Use of Certificate Proceeds ........ " .. Proceeds from the sale of the Certificates will be used to pay contractual
obligations incurred for Civic Center improvements and for professional
services including costs of issuance.
Payment Reeord •• * ................. The City has never defaulted.
Selected Issuer Indices
Ratio
General
Per Capita Purpose
General General Funded
Fiscal Per Capita Purpose Purpose Debt To
Year Estimated Taxable Taxable Funded Funded Taxable ~of
Ending City Assessed Assessed Tax Tax Assessed Total Tax
9-30 P2J;!ulation <ll Valuation Valuation Debt <2J Debt Valuation Collections
1989 191,403 $ 4,567,387,737 $23,863 $ 43,066,998 $225 0.94% 98.98%
1990 186,206 4,645,914,710 24,950 39,179,106 210 0.84~ 99.10~
1991 187,137 4, 718,788,593 25,216 43,144,916 231 0.91% 99.42%
1992 187,493 4,741,607,780 25,290 43,593,202 233 0.92~ 99.38%
1993 187,981 4,667,750,168 24,831 39,585,305 211 0.85% 99.72~
1994 190,038 4,910,763,048 25,841 55,909,058 294 1.14~ 100.64~
1995 191,020 5,087,312,020 26,632 58,085,015<3> 304(3) 1.14%(3) 96.82~(~
(1) Source: Estimates by City of Lubbock, Texas, except 1990 is the U.S. Census.
(2) Excludes self-supporting general obligation debt (see "Valuation, Exemptions and Debt Obligations"; "Valuation and Funded
Debt Histo.ry" and "Computation of Self-Supporting Debt").
(3) Anticipated.
(4) Part year only, through 2-28-95.
9
BOND AND CERDFICATE INFORMATION
Set forth herein and below is certain,information regarding the Bonds and the Certificates. Each of the series of obligations is
a sej,arate series. The obligations are authorized and secured by independent, separate and distinct ordinances. Although certain
similarities exist among the series of obligations, certain differences also exist. Prospective purchasers of any of the obligations
described herein should carefully examine the material and information as set forth herein to determine the applicability of such
materiai and information to each particular series of obligations. The obligations of the two separate series of obligations
described herein are not interchangeable.
The Bonds
Authority for Issuance
The Bonds were authorized at an election held ,May 1, 1993, and passed by a majority of the participating voters. The City is
authorized to incur debt by voter audiorization by Article 1175 of the general laws of the State of Texas and by Ordinance passed
by the City Council as authorized in1the City Charter.
Security for the Bonds
All taxable property within the City is subject to a continuing direct annual ad valorem tax levied, within the limits prescribed
by law, by the City . sufficient in amount to provide for the payment of principal and interest on the Bonds. The City operates
under a Home Rule Charter as authorized by Article XI, Section 5 of the Constitution of the State of Texas. The Constitution
permits the City to levy an ad valorem tax in an amount not to exceed $2.50 per $100 of assessed valuation on all taxable
property within the City· for all City purposes and the City Charter adopts these provisions. .
Redemption of the Bonds
The City reserves the right, at its option, to redeem Bonds having stated maturities on and after February 15, 2006, in whole
or in part in principal amounts of $5,000 or any integral multiple thereof, on February 15, 2005, or any date thereafter, at the
par value thereof plus accrued interest to the date fixed for redemption. If less than all of the Bonds are to be redeemed and
if less than 'all of a maturity is to be redeemed, the Paying AgentJRegistrsr shall determitie by lot the Bonds or portions thereof,
within such maturity .to be redeemed. If a Bond (or any portion of the principal sum thereof) shall have been called for
redemption and notice of such redemption shall have been given, such Bond (or the principal amount thereof to be redeemed)
shall become due and payable on such redemption date and interest thereon shall cease to accrue from and after the redemption
date provided funds for the payment of the redemption price and accrued interest thereon are held by the Paying Agent/Registrsr
on the redemption date.
Not less than 30 days prior to a redemption date for the Bonds, the City shall cause a notice of redemption to be sent by United
States mail, first class, postage prepaid, to each registered owner of a Bond to be redeemed, in whole or in part,· at the address
of the registered owner appearing on the registration books of the Paying Agent/Registrar at the close of business on the business
day next preceding the date of mailing such notice. Any notice of redemption so mailed shall be conclusively presumed to have
been duly given irrespective of whether received by the bondholder.
The Certificates
Authority for Issuance
The Certificates are being issued pursuant to the Constitution and general laws of the State of Texas, particularly Subchapter
C of Chapter 271, Texas Local Government Code (the Certificate of Obligation Act of 1971), as amended, and by Ordinance
passed by the City Council as authorized in the City Charter.
Security for the Certitlcates
All taxable property within the City is subject to a continuing direct annual ad valorem tax levied, within the limits prescribed
by law, by the City sufficient in amount to provide for the payment of principal of and interest on the Certificates. The City
operates under a Home Rule Charter as authorized by Article XI, Section 5 of the Constituti.on of the State of Texas. The
Constitution permits the City to levy an ad valorem tax in an amount not to exceed $2.50 per $100 of assessed valuation on all
taxable property within the City for all city purposes and the City Charter adopts these provisions.
Additionally, the Certificates are payable from certain Pledged Hotel Tax Receipts as provided in the ordinance authorizing the
Certificates (the "Certificate Ordinance").
10
As defined in the Certificate Ordinance:
The term "Hotel Occupancy Tax" shall mean the tax levied by the City upon the costs of occupancy of any sleeping room
furnished by any hotel, where the cost of occupancy is at the rate of $2 or more per day, under authority of V.T.C.A., Tax
Code, Chapter 351, as amended, and pursuant to an ordinance passed and adopted by the City Council.
Note: The City levies Hotel Occupancy Taxes at the rate of 7% of the consideration paid by the occupant of a sleeping room.
The term "Pledged Hotel Tax Receipts" shall mean the portion of the Hotel Occupancy Tax pledged to the payment of the
Certificates.
The term "Prior Lien Obligations" shall mean revenue bonds or other similar obligations hereafter issued dtat are payable from
revenues and receipts other than ad valorem taxes, including a prior lien on and pledge of the Pledged Hotel Tax Receipts.
The term "Additional Obligations" shall mean tax and revenue obligations hereafter issued under and pursuant to the provisions
of V.T.C.A., Local Government Code, Subchapter C of Chapter 271, or other law and payable from ad valorem taxes and
additionally payable from and equally and ratably secured with the Certificates by a parity lien on and pledge of the Pledged
Hotel Tax Receipts.
The Certificate Ordinance provides as follows:
"Pledge of Hotel Occupancy Tax Receipts. The City hereby covenants and agrees that, subject to. the prior lien on and pledge
of the Pledged Hotel Tax Receipts to the payment and security of Prior Lien Obligations, a portion of the receipts received from
the collection of the Hotel Occupancy Tax (equivalent in amount to a Hotel Occupancy Tax of 2% being levied under the law,
i.e., 2% of the consideration paid by an occupant of a sleeping room to the hotel -hereinafter called the "Pledged Hotel Tax
Receipts") shall be and are hereby irrevocably pledged to the payment of the principal of and interest on the Certificates, and
Additional Certificates, if issued, and the pledge of Pledged Hotel Tax Receipts herein made for the payment of the Certificates
shall constitute a lien on the Pledged Hotel Tax Receipts in accordance with the terms and provisions hereof and be valid and
binding without further action by the City and without any filing or recording except for the filing of this Ordinance in the
records of the City.
For purposes of satisfying the pledge of the Pledged Hotel Tax Receipts for the payment of dte Certificates, the City hereby
covenants and agrees that, during the period of time the Certificates are outstanding, the Pledged Hotel Tax Receipts shall be
deposited, as received and collected, into a special Fund designated the "City of Lubbock, Texas, Pledged Hotel Occupancy Tax
Fund", hereby created and to be maintained by the City at its depository bank, and all Pledged Hotel Tax Receipts deposited
therein shall be pledged and appropriated to the extent required for the following purposes and in the order of priority shown,
to wit:
.E!r.!!!:: To the payment of all amounts required to be deposited in the special Funds maintained for the payment, security.
and benefit of Prior Lien Obligations in accordance with the terms and provisions of any ordinance authorizing the
issuance of Prior Lien Obligations.
Second: To the payment, equally and ratably, of the amounts required to be deposited in the special funds and accounts
created and established for the payment of the Certificates (the Certificate Fund) as provided in Section 14 hereof and
any special fund or account maintained for the payment of Additional Certificates.
Any Pledged Hotel Tax Receipts remaining in the "City of Lubbock, Texas, Pledged Hotel Occupancy Tax Fund", after
satisfying the foregoing priority, or making adequate and sufficient provision therefor, may be appropriated and expended for
any purpoSes now or hereafter permitted by law.
Deposits to Certificate Fund. The City hereby covenants and agrees to cause to be deposited to the credit of the Certificate Fund
prior to each principal and interest payment date for the Certificates from the Pledged Hotel Tax Receipts, after the deduction
of all payments required to be made to the special Funds or accounts created for the payment and security of the Prior Lien
Obligations, an amount equal to one hundred percent (1 00 %) of the amount required to fully pay the interest and principal then
due and payable on the Certificates, and such deposits to pay maturing principal and accrued interest on the Certificates shall
be made in substantially equal quarterly installments on or before the last business day of each March, June, September and
December beginning the September next following the month the Certificates are delivered to the initial purchaser(s).
The quarterly deposits to be made to the credit of the Certificate Fund, as hereinabove provided, shall be made until such time
as such Fund contains an amount equal to pay the principal of and interest and premium, if any, on the Certificates to maturity.
Accrued interest and premium, if any, received from the purchaser of the Certificates deposited to the Certificate Fund and ad
11
valorem taxes levied, collected and deposited in the Certificate Fund for and on behalf of the Certificates may be taken into
consideration and reduce the amount of the deposits otherwise required to be deposited in the Certificate Fund from the Pledged
Hotel Tax Receipts. In addition, any surplus proceeds from the sale of the Certificates not expended for authorized purposes
shall be deposited in the Certificate.· Fund, and such amounts so deposited shall reduce the sums otherwise required to be
deposited in said Fund from ad valorem taxes and the Pledged Hotel Tax Receipts. ft ·
In the Certificate Ordinance the City will reserve the right to hereafter issue Prior Lien Obligations, and also expressly reserves
the right to hereafter issue Additional Obligations payable from ad valorem taxes and additionally payable from and secured by
a parity lien on and pledge of the Pledged Hotel Tax Receipts.
Redemption of the Certificates
The Certificates are not optional for prior payment.
Book-Entry-Only System
The Depository Trust Company ("DTC "), New York, New York, will act as securities depository for the Bonds and Certificates.
The Bonds and Certificates will be issued as fully-registered securities registered in the name of Cede & Co. (DTC 's partnership
nominee). One fully-registered certificate will be issued for each maturity of the Bonds and Certificates in the aggregate
principal amount of such maturity, and will be deposited with DTC.
DTC is a limited purpose trust company organized under the New York Banking Law, a "b8nking organization" within the
meaning of the New York Banking Law, a·member of the Federal Reserve System, a "clearing corporation" within the meaning
of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions nf Section 17 A of
the Securities Exchange Act of 1934. DTC holds securities that its participants ("Direct Participants") deposit with DTC. DTC
also facilitates the settlement among Participants of securities transactions, such as transfers and pledges, in deposited securities
through electronic computerized book-entry changes in Participants' accounts, thereby eliminating the need for physical
movement of securities certificates. Direct Participants include securities brokers and dealers, banks, trust companies, clearing
corporations, and certain other organizations. DTC is owned by a number of its Direct Participants and by the New York Stock
Exchange, Inc., the American Stock Exchange, Inc. and the National Association of Securities Dealers, Inc. Access to the DTC
system is also available to others such as securities brokers and dealers, banks, and trust companies that clear through or .
maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). The Rules
applicable to DTC and its Participants are on file with the Securities and Exchange Commission.
Purchases of Bonds and Certificates under the DTC system must be made by or through Direct Participants, which will. receive
a credit for the Bonds and Certificates on DTC's records. The ownership interest of each actual purchaser of each Bond
("Beneficial Owner") is in tum to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not
receive written confirmation from DTC of their purchase, but Beneficial Owners are expected to receive written confirmations
providing details of the transaction, as· well as periodic statements of their holdings, from lhe Direct or Indirect Participant
through which the Beneficial Owner entered into the transaction. Transfers of ownership interest in the Bonds and Certificates
are to be accomplished by entries made on the books of Participants acting on behalf of Beneficial Owners. ·Beneficial· Owners
will not receive certificates representing their ownership interests in the Bonds and Certificates, except in the event that use of
the book-entry system is discontinued.
To facilitate subsequent transfers, all Bonds and Certificates deposited by Direct Participants with DTC are registered in the
name of DTC's partnership nominee, Cede & Co. The deposit of Bonds and Certificates with DTC and their registration in
the name of Cede & Co. effect no change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of
the Bonds and Certificates; DTC's reeords reflect on1y the identity of the Direct Participants to whose accounts such Bonds and
Certificates are credited, which may or may not be the Beneficial Owners. The Participants will remain responsible for keeping
account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants,
and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements amorig them, subject
to any statutory or regulatory requirements as may be in effect from time to time.
Redemption notices shall be sent to Cede & Co. If less than all of the Bonds and Certificates within an issue are being
redeemed, DTC's practice is to determine by tot the amount of the interest of each Direct Participant in such issue to be
redeemed.
Neither DTC nor Cede & Co. Will consent or vote with respect to the Bonds and Certificates. Under its usual procedures, DTC
mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co;'s
12
consenting or voting rights to those Direct Participants to whose accounts the Bonds and Certificates are credited on the record
date (identified in a listing attached to the Omnibus Proxy). . .
Principal and interest payments on the Bonds and Certificates will be made to I>TC. DTC's practice is to credit Direct
Participants' accounts on payable date in accordance with their respective holdings shown on DTC's records unless DTC bas
reason to believe that it will not receive payment on payable date. Payments by. Participants to Beneficial Owners will be
governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in
bearer form or registered in "street name", and will be responsibility of such Participant and not of DTC, .the Paying
Agent/Registrar or the City, subject to any statutory or regulatory requirements as rnay be in effect from time to time. Payment
of principal and interest to DTC is the responsibility of the City, disbursement of such payments to Direct Participants shall be
the responsibility of DTC, and disbursement of such payments to the Beneficial Owners shall be the responsibility of Direct and
Indirect Participants.
DTC rnay discontinue providing its services as securities depository with respect to the Bonds and Certificates at any time by
giving reasonable notice to the City. Under such circumstances, in the event that a successor securities depository is not
obtained, Bonds and Certificates are required to be printed and delivered.
The City rnay decide to discontinue use of the system of book-entry transfers through DTC (or a successor securities depository).
In that event, Bonds and Certificates will be printed and delivered.
Use of Certain Terms in Other Sections of this Official Statement. In reading this Official Statement it should be understood
that while the Bonds and Certificates are in the Book-Entry..Only System, references in other sections of this Official Statement
to registered owners should be read to include the person for which the Participant acquires an interest in the Bonds and
Certificates, but (i) all rights of ownership must be exercised through DTC and the Book-Entry..Qnly System, and (ii) except
as described above, notices that are to be given to registered owners under the Ordinsnces will be given only to DTC.
Information concerning DTC and the Book-Entry-Only System has been obtained from DTC and is not guaranteed as to accuracy
or completeness by, and is not to be construed as a representation by the City or the Purchasers.
Paying Agent/Registrar
The initial Paying Agent/Registrar is Norwest Bank Minnesota, National Association, Minneapolis, Minnesota; Co-Registrar
shall be Norwest Bank Texas, National Association, Lubbock, Texas. In the Ordinances, the City retains the right to replace
the Paying Agent/Registrar. The City covenants to maintain and provide a Paying Agent/Registrar at all times while the Bonds
and Certificates are outstanding and any successor Paying Agent/Registrar shall be a commercial bank or trust company
organized under the laws of the State of Texas or other entity duly qualified and legally authorized to serve as and perform the
duties and services of Paying Agent/Registrar for the Bonds and Certificates. Upon any change in the Paying Agent/Registrar
for the Bonds and Certificates, the City agrees to promptly cause a written notice thereof to be sent to each registered owner
of the Bonds and Certificates by United States mail, first class, postage prepaid, which notice shall also give the address of the
new Paying Agent/Registrar.
Transfer, Exchange and Registration
In the event the Book-Entry ..Only System should be discontinued, the Bonds and Certificates rnay be transferred and exchanged
on the registration books of the Paying Agent/Registrar only upon presentation and suaender thereof to the Paying
Agent/Registrar and such transfer or exchange shall be without expense or service charge to the registered owner, except for
any tax or other governmental charges required to be paid with respect to such registration, exchange and transfer. A Bond may
be assigned by the execution of an assignment form on the Bond or by other instrument of transfer and assignment acceptable
to the Paying Agent/Registrar. A new Bond or Bonds and Certificates will be delivered by the Paying Agent/Registrar, in lieu
of the Bond being transferred or exchanged, at the principal office of the Paying Agent/Registrar, or sent by United States mail,
first class, postage prepaid, to the new registered owner or his designee. To the extent possible, new Bonds and Certificates
issued in an exchange or ,transfer of Bonds and Certificates will be delivered to the registered owner or assignee of the registered
owner in not more than three business days after the receipt of the Bonds and Certificates to be cancelled, and the written
instrument of transfer or request for exchange duly executed by the registered owner or his duly authorized agent, in form
satisfactory to the Paying Agent/Registrar. New Bonds and Certificates registered and delivered in an exchange or transfer shall
be in any integral multiple of $5,000 for any one maturity and for a like aggregate principal amount as the Bond or Bonds and
Certificates suaendered for exchange or transfer.
13
Limitation on Transfer or Bonds and Certirlcates CaUed for Redemption
Neither the City nor the Paying Agent/Registrar shall be required to transfer or exchange to an assignee of the owner of the
Bonds and Certificates any Bond or Certificate called for redemption, in whole or in part, Within 45 days of the date fixed for
redemption; provided, however, suclllimitation of lranSfer shall not be applicable to an exchange by the registered owner of
the uncalled balance of a Bond or a <!ertificate. ·
Record Date tor Interest Payment
The record date ("Record Date") for. the interest payable on any interest payment date means the close of business on the last
business day of the preceding month.
In the event of a non-payment of interest on a scheduled payment date, and for 30 days thereafter, a new record date for such
interest payment (a "Special Record Date") will be established by the Paying Agent!Regislrar, if and when funds for the payment
of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the
past due interest ("Special Payment Date", which shall be 15 days after the Special Record Date) shall be sent at leaSt five
business days prior to the Special Record Date by United States mail, first class postage prepaid, to the address of each Holder
of a Bond appearing on the registration boOks of the Paying Agent/Registrar at the close of business on the last business day
next preceding the date of mailing of' such notice.
Use or Bond Proceeds
Proceeds from the sale of the Bonds and Certificates will be used for library facilities improvements, park improvements, Fire
Department Emergency Traffic Control System improvements and to pay costs of issuance.
Sources and Uses or Funds -the Bonds
Sources:
Proceeds from sale of Bonds
Uses:
. Estimated cost of library facilities improvements
Estimated cost of park improvements
Estimated cost of Fire Department Emergency Traffic
Conlrol System improvements
Total Uses
* Includes costs of issuance.
Use of CertUJCate Proceeds
$4,690,000
$2,680,000
1,540,000
470.000
$4,690,000*
Proceeds from the sale of the Certificates will be used to pay conlractual obligations to be incurred for Civic Center
improvements and for professional services.
Sources and Uses of Funds -the CertifiCates
Sources:
Proceeds from sale of Certificates
Uses:·
Estimated cost of'Civic Center improvements ·
. Estimated costs of issuance
Total Uses
14
$2,000,000
$1,981,400
18,600
,...,
TAX INFORMATION
Ad Valorem Tax Law
The appraisal of property within the City is dle responsibility of dle Lubbock Central Appraisal District. Excluding agricultural
and open-space land, which may be taxed on the basis of productive capacity, dle Appraisal District is required under dle
Property Tax Code to appraise all property within dle Appraisal District on .dle basis of 100% of its market value and is
prohibited from applying any assessment ratios. The value placed upon property within dle Appraisal District is subject to
review by an Appraisal Review Board, consisting of dlree members appointed by dle Board of Directors of dle Appraisal
District. The Appraisal District is required to review the value of property within dle Appraisal District at least every d1ree
years. The City may require annual review at its own expense, and is entitled to challenge dle determination of appraised value
of property within the City by petition filed widl dle Appraisal Review Board.
Reference is made to dle VTCA, Property Tax Code, for identification of property subject to taxation; property exempt or which
may be exempted from taxation, if claimed; dle appraisal of property for ad valorem taxation putposes; and dle procedures and
limitations applicable to dle levy and 'collection of ad valorem taxes. ·
Article VIII of dle State Constitution ("Article VIII") and State law provide for certain exemptions from property taxes, dle
valuation of agricultural and open-space lands at productivity value, and dle exemption of certain personal property from ad
valorem taxation.
Under Section 1-b, Article Vlll, and State law, the governing body of a political subdivision, at its option, may grant: (1) an
exemption of not less than $3,000 of the market value of the residence homestead of persons 65 years of age or older and dle
disabled from all ad valorem taxes thereafter levied by dle political subdivision; (2) an exemption of up to 20% of dle market
value of residence homesteads; minimum exemption $5,000. The City grants an exemption to. dle market value of dle residence
homestead of persons 65 years of age or older of $16,700; the disabled are also granted an exemption of $10,000.
State law and Section 2, Article Vlll, mandate an additional property tax exemption for disabled veterans or dle surviving spouse
or children of a deceased veteran who died while on active duty in the armed forces; dle exemption applies to eidler real or
personal property with dle amount of assessed valuation exempted ranging from $1,500 to a maximum of $3,000.
Article VIII provides that eligible owners ofbodl agricultural land (Section 1-d) and open-space land (Section 1-d-1), including
open-space land devoted to farm or ranch putposes or open-space land devoted to timber production, may elect to have such
property appraised for property taxation on dle basis of its productive capacity. · The same land may not be qualified under bodl
Section 1-d and 1-d-1.
Nonbusiness personal property, such as automobiles or light trucks, are exempt from ad valorem taxation unless dle governing
body of a political subdivision elects to tax this property. Boats owned as nonbusiness property are exempted from ad valorem
taxation. The City does not tax nonbusiness personal property and dle Lubbock Central Appraisal District collects taxes for dle
City of Lubbock.
Article VIII, Section 1-j of dle Texas Constitution provides for "freeport property• to be exempted from ad valorem taxation.
Freeport property is defined as goods detained in Texas for 175 days or less for dle purpose of assembly, storage,
manufacturing, processing or fabrication. The exemption became effective for dle 1990-91 fiscal year and dlereafter unless
action to tax such property was taken prior to April 1, 1990. Decisions to continue dle tax may be reversed in dle future;
decisions to exempt freeport property are not subject to reversal. The City bas taken action to tax freeport property.
The City and the odler taxing bodies within its territory may agree to jointly create tax increment financing zones, under which
dle tax values on property in the zone are "frozen" at the value of the property at dle time of creation of dle zone. The City
also may enter into tax abatement agreements to encourage economic development. Under the agreements, a property owner
agrees to construct certain improvements on its property. The City in tum agrees not to levy a tax on all or part of dle increased
value attributable to dle improvements until dle expiration of dle agreement. The abatement agreement could last for a period
of up to 10 years. The City has adopted a tax abatement policy and has outstanding agreements that abate certain values for
1994 as described under "Valuation, Exemptions and Debt Obligations", following.
15
Valuation, Exemptions and Debt Obligations
1994 Market Valuation Established'by Lubbock Central Appraisal
District
Less Exemptions/Reductions at .1 00 ~ Market Value:
Residence Homestead (Over 65:or Disabled)
Disabled Veterans Exemptions
Agricultural/Open-Space Land Use Reductions
Value lost because property is exempted from taxation under the
Property Redevelopment and"Tax Abatement Act (t}
1994 Taxable Assessed Valuation.
City Funded Debt Payable From Ad Valorem Taxes: (2)
General Obligation Debt (as of 2::.28-95)
The Bonds
The Hotel Occupancy Tax Certificates
The Airport Certificates <3:1
Funded Debt Payable From Ad Valorem Taxes
Less Self-Supporting Debt: <4l
Waterworks System General Obligation Debt
Sewer System General Obligation Debt
$ 180,818,380
3,559,645
:n,766,396
10.324,437
$140,588,752
4,690,000
2,000,000
900,000
$ 27,333,157
59,773,539
$ 5,31~,780,878
226,468,858
$ 5,087,312,020
$ 148,178,752
Solid Waste Disposal System General Obligation Debt 2.987.041 90,093,737
General Purpose Funded Debt Payable From Ad Valorem Taxes
Interest and Sinking Fund (as of 2~28-95)
Ratio Total Funded Debt to Taxable Assessed Valuation
Ratio General Purpose Funded Debt to Taxable Assessed Valuation
1995 Estimated Population-191,020:5>
Per Capita 1994 Taxable Assessed Valuation-$26,632.36
Per Capita Total Funded Debt-$775.72
Per Capita General Purpose Funded Debt-$304.08
$ 58,085,015
$ 715,246
2.91%
1.14%
(1) Article 1066f, VTCA, permits granting of tax abatements for qualifying businesses; the City has entered into two such
agreements with McLane Foodservice-Lubbock, a division of McLane, Inc., Temple, Texas ("McLane"), an institutional
food service distributor. The first abatement agreement which began in the 1988 tax year covered McLane's improved real
property in the City; 1994 is the final year of this agreement; in 1995 the abated value of $4,800,284 will be added to the
tax rolls. The second agreement covering additional improved real property in the City began in 1994 with abated values
of $5,530,220 and will continue through 2001. For 1994 McLane's total real property market value is $11,075,054, total
abated values are $10,060,440; the taxable value of real property after abatement is $1,014,614.
The City has also entered into such an agreement with J. R. Brady. The abatement covers a tract of land with a restaurant
located on a portion of the tract. 1994 market value of the property containing the restaurant is $231 ,816 and the taxable
value after abatement is $207,076, resulting in abated values ()f $24,740.
(2) The statement of indebtedness does not include outstanding $31,664,965 Electric Light and Power System Revenue Bonds
as these bonds are payable solely from the net revenues of the System. The statement also does not include outstanding
$360,000 Airport Revenue Bonds, as these bonds are payable solely from gross revenues derived from the City of Lubbock
Airport. The Waterworks System, the Sewer System and the Solid Waste Disposal System have no outstanding Revenue
Bond debt.
(3) $900,000 Tax and Airport Surplus Revenue Certificates of Obligation, Series 1995, are also being offered for sale on
May 11, 1995. ·
16
(4) The City provides for debt service on general obligation debt issued to fund Waterworks System improvements, Sewer
System improvements and Solid Waste Disposal System improvements from surplus revenues of these Systems (see "Debt
lnformationw, "Interest and Sinking Fund Budget Projection", "Computation of Self-Supporting Debt", "The Waterworks
System", "The Sewer System" and "The Solid Waste Disposal System".
"Waterworks System General Obligation Debt" includes $14,433,157 principal amount of outstanding general obligation
bonds and $12,900,000 principal amount of outstanding Combination Tax and Waterworks System Subordinate Lien
Revenue Certificates of Obligation. The City has no outstanding Waterworks System Revenue Bonds.
"Sewer System General Obligation Debt" includes $10,163,539 principal amount of outstanding general obligation bonds;
and $49,610,000 principal amount of outstanding Combination Tax and Sewer System Subordinate Lien Revenue Certificates
of Obligation. The City has no outstanding Sewer System Revenue Bonds.
"Solid Waste Disposal System General Obligation Debt" includes $2,302,041 principal amount of outstanding general
obligation debt (bonds and certificates of obligation) and $685,000 principal amount of outstanding Combination Tax and
Solid Waste Disposal System Revenue Certificates of Obligation. The City has no outstanding Solid Waste Disposal System
Revenue Bonds.
(5) Source: City of Lubbock, Texas.
17
...... 00
)
Taxable Assessed Valuations by Category
Taxable atmraised Value for Fiscal Year Ended Smtember 30,
1995 1994 1993
%of %of %of
Categorv Amount Total Amount Total Amount Total
Real, Residential, Single-Family $ 2,754,503,815 51.84% $ 2,667,702,100 52.03% $ 2,479,218,812 50.80%
Real, Residential, Multi-Family 337,977,738 6.36% 318,160,996 6.21% 304,357,639 6.24%
Real, Vacant Lotsrrracts 99,547,319 1.87% 100,240,564 1.96% 107,622,442 2.20%
Real, Acreage (Land Only) 45,954,067 0.86% 45,288,322 0.88% 47,932,220 0.98%
Real, Fann and Ranch Improvements 12,739,995 0.24% 11,784,081 0.23% 13,987,009 0.29%
Real, Commercial and Industrial 1,039,190,164 19.56% 1,020,680,238 19.91% 1,012,208,927 20.74%
Real, Oil, Gas and Other Mineral Reserves 15,018,920 0.28% 22,178,990 0.43% 24,858,113 0.51%
Real and Tangible Personal, Utilities 159,462,546 3.00% 152,961,630 2.98% 149,994,794 3.07%
Tangible Personal, Commercial and Industrial 819,836,742 15.43% 763,606,589 14.89% 717,385,702 14.70%
Tangible Personal, Other 9,479,831 0.18% 8,120,819 0.16% 7,690,791 0.16%
Real Property, Inventory <1> 20,069,741 0.38% 16,600,495 0.32% 15,190,587 ___Q.Jl%
Total Appraised Value Before Exemptions $ 5,313,780,878 100.00% $ 5,127,324,824 100.00% $ 4,880,447,036 100.00%
Less: Total Exemptions/Reductions 226,468,858 216,561,776 212,696,868
Taxable Assessed Value ~ 510871312,020 ~ 4,9101763,048 ~ 4,667,750,168
Taxable Appraised Value For
Fiscal Year Ended Smtember 30,
1992 1991
%of %of
Catego[! Amount Total Amount Total
Real, Residential, Single-Family $ 2,449,828,200 49.49% $ 2,413,925,206 48.95%
Real, Residential, Multi-Family 304,256,344 6.15% 313,170,381 6.35%
Real, Vacant Lotsrrracts 111,914,454 2.26% 117,839,348 2.39%
Real, Acreage (Land Only) 48,816,013 0.98% 52,453,590 1.06%
Real, Fann and Ranch Improvements 13,063,630 0.26% 13,508,943 0.27%
Real, Commercial and Industrial 1,073,602,333 21.69% 1,076, 715,771 21.84%
Real, Oil, Gas and Other Mineral Reserves 25,638,500 0.52% 22,182,456 0.45%
Real and Tangible Personal, Utilities 147,789,832 2.98% 153,608,032 3.12%
Tangible Personal, Commercial and Industrial 755,234,901 15.26% 745,511,197 15.12%
Tangible Personal, Other 7,363,639 0.15% 6,360,698 0.13%
Real Property, Inventory m 12,759,249 0.26% 15,746,173 0.32%
Total Appraised Value Before Exemptions $ 4,950,267,095 100.00% $ 4, 931 ,021 '795 100.00%
Less: Total Exemptions/Reductions 208,659,315 212,233,202
Taxable Assessed Value ~ 4,741,607,780 ~ 4,718,788,593
(1) Residential inventory properties in the hands of developers or builders; each group of properties in this category is appraised on the basis of its value
as a whole as a sale to another developer or builder. This category initiated in 1988.
Note: Basis of assessment for all years is 100% of appraised (market) value. Taxable properties are revalued each year.
) . ) ) ) ) ) ) )
Valuation and Funded Debt History
Ratio
Generat General
Purpose .Purpose
Funded ·Funded General
Fiscal Taxable Tax Debt Debt to Purpose
Year Taxable Assessed Outstanding Taxable Funded
Ended Estimated Assessed Valuation at End Assessed Debt
9-30 PQI!ulation Cl> Valuation C2l Per Cal!ita of :Year (3) Valuation Per Cal!ita
1986 188,283 $4,012,901,338 $ 21,313 $ 39,848,682 0.99% $212
1987 188,694 4,408,325,399 23,362 37,540,011 0.85% 199
1988 190,017 4,476,572,268 23,558 39,670,291 0.89% 209
1989 191,403 . 4,567,387, 737 23,863 43,066,998 0.94% 225
1990 186,206 4,645,914,710 24,950 39,179,106 0.84% 210
1991 187,137 4, 718,788,593 .· 25,216 43,144,916 0.91% 231
1992 187,493. 4,741,607,780 25,290 43,593,202 0.92% 233
1993 187,981 4,667. 150, 168 24,831 39,585,305 0.85% 211
1994 190,038 4,910,763,048 25,841 55,909,058 1.14% 294
1995 191,020 5,087,312,020 26,632 58,085,015 (4) 1.14% 304
(1) Source: City of Lubbock, Texas, except 1990 is U.S. Census.
(2) Basis of assessment for all years 100% of market value. All taxable property is revalued eachyear.
(3) Funded Tax Debt less Self-supporting Funded Tax Debt. Derivation of General Purpose Funded Tax Debt is:
Fiscal
Year
Ending
9-30
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995(4)
Funded
Tax Debt
Outstanding
at End
of Year
$ 79,889,070
78,279,070
82,958,752
86,898,752
79,088,752
95,783,752
131,813,752
137,358,752
152,693,752
148,178,752
Less:
Self-supporting
Funded Tax
Debt
$ 40,040,388
40,739,059
43,288,461
43,831,754
39,909,646
52,638,836 .
88,220,550
97,773,447
96,784,694
90,093,737
General
Purpose
Funded
Tax Debt
Outstanding
at End
of Year
$ 39,848,682
37,540,011
39,670,291
43,066,998
39,179,106
43,144,916
43,593,202
39,585,305
55,909,058
58,085,015
Note: For all years Self-supporting Debt includes Waterworks System and Sewer System General Obligation Debt. 1991-1995
includes Solid Waste Disposal System General Obligation Debt. See "Valuation, Exemptions and Debt Obligations•.
(4) Anticipated.
19
Tax Rate, Levy and Collection HiStory
Fiscal
Year Disbibution
Ended Tax General· Economic Interest and %Current %Total
9-30 Rate Fund' DeveiQJ2ment Sinking Fund Tax Le~ Collections Collections
1986 $0.60 $0.255:1 $0.0500 $0.2947 $24,077,408 94.16% 96.60%
1987 0.60 0.2762 0.0500 0.2738 26,448,985 95.75% 98.85%
1988 0.61 0.2767 0.0500 0.2833 27,303,606 95.94% 98.96%
1989 0.64 .0.3171 0.0500 0.2729 29,231,282 96.01% 98.98%
1990 0.64 0.331'4 0.0500 0.2586 29,733,854 96.15% 99.10%
1991 0.64 0.346.8 0.0300 0.2632 30,200,247 96.58% 99.42%
1992 0.64 0.3754 0.0300 0.2346 30,313,029 97.38% 99.38%
1993 0.64 0.4045 0.0355 0.2000 29,879,149 97.53% 99.72%
1994 0.64 0.4170 0.0231 0.1999 31,334,334 97.89% 100.64%
1995 0.64 0.4254 0.0300 0.1846 32,558,797 95.80%(!) 96.82%(1)
(1) Collections for part year only, through 2-28-95.
Property within the City is assessed.as of January 1 of each year (except for business inventory which may, at the option of the
taxpayer, be assessed as of September 1); taxes become due October 1 of the same year, and become delinquent on February 1
of the following year. Split payments are not permitted. Discounts are not allowed. Taxpayers 65 years of age or older are
permitted by State law to pay taxes on homesteads in four installments with the first due on February 1 of each year and the
final installment due on August 1.
Charges for penalty and interest on the unpaid balance of delinquent taxes are made as follows:
Month Penal!! Interest Total
February 6% 1% 7%
March 7% 2% 9%
April 8% 3% 11%
May 9% 4% . 13%
June 10% 5% 15%
July 12% 6% 18%
After July, penalty remains at 12%, and interest increases at the rate of 1 % each month. In addition, if an account is delinquent
in July, a 15% attorney's collection fee is added to the total tax penalty and interest charge. Under certain circumstances, taxes
which become delinquent on the homestead of a taxpayer 65 years old or older incur a penalty of 8% per annum with no
additional penalties or interest assessed. In general, property subject to the City's lien may be sold, in whole or in parcels,
pursuant to court order to collect the amounts due the City and all other taxing entities. Federal law does not allow for the
collection of penalty and interest against an estate in bankruptcy. Federal bankruptcy law provides that an automatic stay of
action by creditors and other entities, including governmental units, goes into effect with the filing of any petition in bankruptcy.
The automatic stay prevents governmental units from foreclosing on property and prevents liens for post-petition taxes from
attaching to property and obtaining secured creditor status unless, in either case, an order lifting the stay is obtained from the
bankruptcy court. In many cases post-petition taxes are paid as an administrative expense in bankruptcy or by order of the
bankruptcy court.
The Financial Institutions Reform,, Recovery and Enforcement Act of 1989 (FIRREA), enacted on August 9,· 1989, contains
certain provisions which affect the time for protesting property valuations, the fixing of tax liens and the collection of penalties
and interest on delinquent taxes on .real property owned by the FDIC and the RTC.
Under FIRREA, real property held by the FDIC or RTC is still subject to ad valorem taxation, but {i) no real property of the
FDIC or RTC is subject to foreclosure or sale without the consent of the FDIC or RTC and no involuntary lien shall attach to
such property, (ii) the FDIC or RTC shall not be liable for any penalties or fines, including those arising from the failure to
pay any real property tax when due and (tii) notwithstanding the failure of a person to challenge an appraisal in accordance with
State law, such value will be determined as of the period for which such tax is imposed.
20 ,..
(""",
Hotel Occupancy Tax
"Hotel Occupancy Tax" means the tax levied by the City upon the costs of occupancy of any sleeping room furnished by any
hotel, when the cost of occupancy is at the rate of $2.00 or more per day. The Hotel Occupancy Tax may not exceed 7% of
these costs; the City levies a Hotel Occupancy Tax of 7% of these costs. The City commenced collection of a Hotel Occupancy
Tax on January 1, 1971. The City has no outstanding revenue bonds or other obligations payable from a lien on the Hotel
Occupancy Tax. '
Historical Hotel Occupancy Tax ~eceipts and (Pro Forma) Historical Pledged Hotel Tax Receipts
Pro Fonna
Historical
Fiscal Hotel Pledged
Year Occupancy Hotel Tax
Ending Tax Receipts
9-30 'Collections · (2%)
1990 $1,488,477 $425,279
1991 1,480,075 422,879
1992 1,537,504 439,287
1993 1 ,634,529"1) 467,008
1994 1,678,48'11' 479,568
~ ~.
(1) Fiscal Year Ending 9-30-93 includes and Fiscal Year Ending 9-30-94 excludes a portion of fourth quarter Fiscal Year
Ending 9-30-93 receipts recorded in Fiscal Year Ending 9-30-94. ·
Principal Hotel Occupancy Taxpayers
1994 1993
Tax %Of Tax %Of
Taxea:z:er ~ Paid Total Paid Total
Holiday Inn Civic Center 293 $ 200,802 12.08% $ 197,905 '12.11%
Barcelona Court 161 180,942 10.88% 173,602 10.62%
Lubbock Plaza 202 166,467 10.01% 174,124 10.65%
La Quinta Inn 137 127,570 7.67% 127,797 7.82%
Sheraton Inn 146 112,420 6.76% 97,068 5.94%
Residence Inn 80 109,373 6.58% 106,248 6.50%
Best Western <tl 165 108,931 6.55% -0-0.00%
Holiday Inn South <I) · 165 -0-0.00% 120,122 7.35%
Lubbock Inn 119 '108,478 6.53% 103,327 6;32%
Motel6 106 81,384 ' 4.90% 72,16'6 4.41%
Paragon Hotel 130 71.175 4.28% 93,747 5.14%
$ 1.267,542 76.24% ==-=== $ 1.266,106 77.46% ==-===
(1) Best Western was formerly Holiday Inn South.
21
Ten Largest Taxpayers
1994 % ofTotal
Taxable .1994 Taxable
Assessed Assessed
Name of Tax~a;xer· Nature of PrQl!~ Valuation Valuation
Texas Instruments Incorporated: Electronics Manufacturer $ 83,059,510 1.63%
South Plains Mall Regional Shopping Mall 79,345,876 1.56%
Southwestern Bell Telephone C:ompany Telephone Utility 76,752,333 1.51%
Southwestern Public Service Cbmpany Electric Utility 44,466,763 0.87%
Plains Co-op Oil Mill Agricultural Processing 29,749,307 0.58%
Methodist Hospital Hospital 24,242,753 0.48%
Fleming Companies Incorporated Wholesale Groceries 23,675,511 0.47%
Eagle-Picher Industries Heavy Equipment
Manufacturing 22,980,142 0.45%
H. A. Sessions Commercial Property
and Other Real Estate , 19,150,589 0.38%
First National Bank (ll Bank 16,520,661 0.32%
$419,943,445 8.25% ====
(1) Now Norwest Bank Texas,.National Association.
Tax Rate Limitation
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 ad valorem tax debt within the limits
prescribed by law. Article XI, Section 5, of the Texas Constitution is applicable to the City, 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.
By each September l or as soon thereafter as practicable, the City Council adopts a tax rate per $100 taxable value for the
current year. The tax rate consists of two components: (1) a rate for funding of maintenance and operation expenditures, and
(2) a rate for debt service.
Under the Tax Code:
The City must annually calculate and publicize its "effective tax rate~ and "rollback tax rate". The City Council may not adopt
a tax rate that exceeds the lower of the rollback tax rate or 103% of the effective tax rate until it has held a public hearing on
the proposed increase following notice to the taxpayers and otherwise complied with the Tax Code. If the adopted tax rate
exceeds the rollback tax rate the qualified voters of the City by petition may require that an election be held to determine
whether or not to reduce the tax rate adopted for the following year to the rollback tax rate.
~Effective tax rate" means the iate that will produce last year's total tax levy (adjusted) from this year's total taxable values
(adjusted). "Adjusted" means lost values are not included in the calculation of last year's taxes and new values are not included
in this year's taxable values.
. ' '
"Rollback tax rate" means the rate that will produce last year's maintenance and operation tax levy (adjusted) from this year's
values (adjusted) from this year's values (adjusted) multiplied by 1.08 plus a rate that will produce this year's debt service from
this year's values (unadjusted) divided by the anticipated tax collection rate.
The Tax Code provides that certain cities and counties in the State may submit a proposition to the voters to authorize up to an
additional one-half cent sales tax on retail'sales of taxable items. If the additional tax is levied, the effective tax rate and the
rollback tax rate calculations are required to be offset by the revenue that will be generated by the sales tax in the current year.
In January, 1995, voters in the City approved an additional one-eighth cent sales tax; collection of the tax will begin in October,
1995.
Reference is made to the Tax Code for defuritive requirements for the levy and collection of ad valorem taxes and the calculation
of the various defined rates.
22
)
~
l ) ) ) ., )
Debt Service Requirements (New Issues)
Fiscal
Year
Ending
_2:!Q_
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
20ll
2012
2013
2014
2015
The General Obligation Bonds The .Hotel Occuaan£! Tax Certificates The Aimort Certificates <t)
Princil!al Interest Total Princii!al Interest Total Princii!al Interest Total
$ 230,000 $ 350,598 $ 580,598 $ 265,000 $132,580 $ 397,580 $ 150,000 $ 59,850 $ 209,850 $
230,000 265,045 495,045 310,000 88,480 398,480 170,000 37,905 207,905
235,000 250,863 485,863 330,000 70,560 400,560 180,000 27,930 207,930
235,000 236,528 471,528 345,000 51,660 396,660 195,000 17,243 212,243
235,000 222,193 457,193 365,000 31,780 396,780 205,000 5,843 210,843
235,000 207,858 442,858 385,000 10,780 395,780
235,000 193,523 428,523
235,000 179,188 414,188
235,000 164,853 399,853
235,000 150,518 385,518
235,000 136,183 371,183
235,000 121,848 356,848
235,000 107,513 342,513
235,000 93,178 328,178
235,000 78,843 313,843
235,000 64,508 299,508
235,000 50,173 285,173
235,000 35,838 270,838
235,000 21,503 256,503
235,000 7,168 242,168
~ 4!690!000 ~~937,922 ~7,627,922 ~ 2!0001000 ~385,840 ~2,385,840 ~ 900,000 ! 148,771 I 1,048,771 ~
(1) The City is also offering for sale on May 11, 1995, these $900,000 Tax and Airport Surplus Revenue Certificates of Obligation, Seri~s 1995.
· Interest on the Genersl Obligation Bonds bas been calculated at 6.10% for purposes of illustration.
Interest on the Hotel Occupancy Tax Certificates bas been calculated at 5.60% for purposes of illustration.
Interest on the Airport Certificates bas been calculated at 5. 70% for purposes of illustration.
) ) )
Combined R~uirements
Princi(!al Interest Total
645,000 $ 543,028 $ 1,188,028
710,000 391,430 1,101,430
745,000 349,353 1,094,353
775,000 305,431 1,080,431
805,000 259,816 1,064,816
620,000 218,638 838,638
235,000 193,523 428,523
235,000 179,188 414,188
235,000 164,853 399,853
235,000 150,518 385,518
235,000 136,183 371,183 t:J 1,'!:1
235,000 121,848 356,848 "' 235,000 107,513 342,513 ""\! -235,000 93,178 328,178 ~ 235,000 78,843 313,843 g 235,000 64,508 299,508 5 235,000 50,173 285,173
235,000 35,838 270,838 -235,000 21,503 256,503 i 235,000 7,168 242,168
7,590,000 I 3,472,533 ~ 111062,533
Combined Debt Senke Requirements
Fisc:al
Year 'Jli of
Ending Outstanding Debt Combined New Issuea Combined R~uirements Principal
9-30 PrinciJ!al Interest Total Princil!al Interest Total Princil!al Interest Total Retired
1995 $ 11,515,000Ul $ 8,036,549 $ 19,551,549 $ $ $ $ 11,515,000 $ 8,036,549 $ 19,551,549
1996 12,275,000 7,277,858 19,552,858 645,000 543,028 1,188,028 12,920,000 7,820,886 20,740,886
1997 11,984,434 6,715,209 18,699,643 710,000 391,430 1,101,430 12,694,434 7,106,639 19,801,073
1998 11,700,076 6,036,485 17,736,561 745,000 349,353 1,094,353 12,445,076 6,385,838 18,830,914
1999 11,491,493 5,377,703 16,869,196 775,000 305,431 1,080,431 12,266,493 5,683,134 17,949,627 38.72'Jli
2000 8,949,986 6,747,636 15,697,622 805,000 259,816 1,064,816 9,754,986 7,007,452 16,762,438
2001 8,534,442 5,812,883 14,347,325 620,000 218,638 838,638 9,154,442 6,031,521 15,185,963
2002 8,093,639 4,688,513 12,782,152 235,000 193,523 428,52.~ 8,328,639 4!88~,()36 ~3.~1~!~7~
2003 7,609,682 3;8o3,55B· 11,4ll,240 235,000 179,188 414,188 7,844:682 3,982,746 ll,827,428
2004 6,560,000 2,947,751 9,507,751 235,000 . 164,853 399,853 6,795,000 3,112,604 9,907,604 64.95'Jli
2005 6,555,000 2,599,110 9,154,110 235,000. 150,518 385,518 6,790,000 2,749,628 9,539,628
2006 6,540,000 2,247,694 8,787,694 235,000 136,183 371,183 6,775,000 2,383,877 9,158,877
2007 6,520,000 1,895,929 8,415,929 235,000 121,848 356,848 6,755,000 2,017,777 8,m,111
2008 . 5,875,000 1,562,798 7,437,798 235,000 107,513 342,513 6,110,000 1,670,311 7,780,311
2009 5,610,000 1,256,083 6,866,083 235,000 93,178 328,178 5,845,000 1,349,261 7,194,261 8S.16'Jli
~--2010 5,050,000 972,746 6,022,746 235,000 78,843 313,843 5,285,000 1,051,589 6,336,589
2011 5,055,000 711,263 5,766,263 235,000 64,508 299,508 5,290,000 775,711 6,065,711
2012 3,840,000 490,633 4,330,633 235,000 50,173 285,173 4,015,000 540,806 4,615,806
2013 3,810,000 306,769 4,116,769 235,000 35,838 270,838 4,045,000 342,607 4,387,607
2014 3,810,000 124,007 3,934,007 235,000 21,503 256,503 4,045,000 145,510 4,190,510 99.39'Jli
2015 725,000 16,313 741,313 235,000 7,168 242,168 960,000 23,481 983,481 100.00'Jli
f152,103,752 ~ 69,627,490 ! ~11731~42 ~ 7,590,000 ~ 3,472,533 ~ 111062,533 ! 159,693,752 ~ 73,1001023 ! 23217931775
(1) This $11,515,000principalwas paid February 15, 1995.
) ) ) ) ) ) ) ) )
Division of Debt Service Requirements
Less:
Solid
Less: Less: Waste
Waterworks Sewer Disposal General
Fiscal System System System Purpose
Year General General General General
Ending Combined R!!!!uirements Obligation Obligation Obligation Obligation
~ PrinciJ.!al Interest Total R!!!!uirements R!'!!juirements R!'!!juirements R!!!!uirementil
1995 $ 11,515,0001) $8,036,549 $ 19,551,549 $4,823,457 $6,376,959 $755,834 $1,595,299
1996 12,920,000 7,820,886 20,740,886 4,546,059 6,911,716 714,141 8,568,970
1997 12,694,434 . 7,106,639 19,801,073 4,290,392 6,712,336 677,842 8,120,503
1998 12,445,076 6,385,838 18,830,914 4,066,121 6,513,377 484,895 7,766,521
1999 12,266,493 5,683,134 17,949,627 3,795,326 6,284,615 463,908 7,405,778
2000 9,754,986 7,007,452 16,762,438 3,419,488 6,037;647 445,703 6,859,600
2001 9,154,442 6,031,521 15,185,963 3,119,722 5,465,491 . 418,312 6,182,432
2002 8,328,639 4,882,036 13,210,675 2,639,351 5,162~989 287,662 5,120,673
2003 7,844,682 3,982,746 11,827,428 2,296,807 4,906,572 3,440 4,620,609
2004 6,795,000 3,112,604 9,907,604 1,741,752 4,676,720 3,489,132
2005 6,790,000 2,749,628 . 9,539,628 1,675,860 4,508,914 3,354,854
2006 6,775,000 2,383,877 9,158,877 1,596,820 4,339,910 3,222,147
2007 6,755,000 2,017,777 8,m,777 1,518,710 4,170,277 3,083,790
2008 6,110,000 . 1,670,311 7,780,311 1,216,791 3,655,924 2,907,596
2009 5,845,000 1,349,261. 7,194,261 1,130,703 3,507,335 2,556,223
2010 5,285,000 1,051,589 6,336,589 977,024 3,259,616 2,099,949
2011 5,290,000 775,771· 6,065,771 926,801 3,182,255 1,956,715
2012 4,075,000 540,806. 4,615,806 90,652 2,883,024 1,642,130
2013 4,045,000 342,607 4,387,607 87,356 2,776,975 1,523,276
2014 4,045,000 145,510 4,190,510 84,059 2,645,514 1,460,931
2015 960,000 23,481 983,481 741,313 242,168
$159,693,752 $73.100,023 $232,793,775 $44.043,251 $94,719.485 $4.251,737 $89 '779,302
(1) This $11,515,000principal was paid February IS, 1995.
)
Assessed Valuations. Tax Rates. Dired and Overlapping Funded Debt Payable t'rom Ad Valorem Taxes and ~uthorized But Unissued Bonds of Overlapping Taxing
Jurisdictions
Taxing Jurisdiction
City of Lubbock
Lubbock Independent School District
Lubbock County
Lubbock County Hospital District
High Plains Underground Water Conservation
District No: ·1
Frenship Independent School District
T~~~~ fnd~end~nt School District
Lubbock-Cooper Independent School District
New Deal Independent School District
Roosevelt Independent School District
$
1994-95
Taxable
Assessed
Valuation
5,087,312,020
4,629,130,050
6,033,971,324
6,033,971,324
6,033,971,324
497,305,665
10~,640,124
174,166,033
76,048,312
92,205,681
1994-95
Tax
Rate
$0.64000
1.47500
0.17117
0.10499
0.00840
1.47000
l.45f)43'
1.47600
1.50000.
1.50000
Total
·Funded Estimated
Debt As of " 2-28-95 Applicable ;·
$ 58,085,01.,1) 100.00"
67,055 ,()()(fll 98.60"
3,040,000 84.44"
..().. 84.44"
..().. 84.44"
33,53~,'f39 ~.~n"
2,620,000 . L29%
4,509,55!14) 15.20"
-0-om"
..().. 5.11"
Total Direct and Overlapping Funded Debt ........................... ~ ...............•.....
City's
Overlapping
Funded Debt
As of 2-28-95
$ 58,085,015
66,116,230
2,566,976
..()..
-0-
~l-769,~995 . ; 33,798
685,452
..()..
..()..
$149,257,466
Ratio of Direct and Overlapping Funded Debt to 1994 Taxable Assessed Valuation .. · ....•...............•.•....... 2.93"
Per Capita Overlapping Funded Debt ..............................•........................... $781.37
(1) General purpose general obligation debt.
Authorized
But Unissued
$
Debt As of
2-28-95
10,247,000
18,020,275"
..()..
..()..
..()..
15,050,000
,. ·~
..()..
..()..
..()..
(2) ·Adjusted for planned sale on May 3, 1995, of $12,000,000 School Building Bonds and $5,320,000 Refunding Bonds, totaling $17,320,000 Bonds.
(3) Includes $100,000 Bonds authorized in 1959 which the District does not plan to issue.
(4) The District will conduct an election to authorize the issuance of $4,500,000 School Building Bonds on May 6, 1995.
Expenditures of the various taxing bodies within the territory of the City are paid out of ad valorem taXes levied by these taxing bodies on properties within the City. These political
taxing bodies are independent of the City and may incur borrowings to finance their expenditures. This statement of direet and estimated overlapping ad valorem tax bonds was
developed from information contained in "Texas Municipal Reports" published by the Municipal Advisory Council of Texas and from informatiOn furnished by the Lubbock Central
Appraisal District. Except for the amounts relating to the City, the City has not independently verified the accuracy or completeness of such information, and no person should
rely upon such information as being accurate or complete. Furthermore, certain.of the entities listed may have issued. additional bonds since the date stated above, and such entities
may have programs requiring the issuance of substantial amounts of additional bonds the amount of which caimot be determined. This table reflects th~ estimated share of
overlapping funded debt of the City. · · · . . ·
) ) ) ) ) )
Interest and Sinking Fund Budget Projection
General Obligation Debt Service Requirements, Fiscal Year Ending.9-30-95
Fiscal Agent, Tax Collection and Other Uses
Total Requirements
Sources of Funds
Interest and Sinking Funds (at beginning of Fiscal Year)
Budgeted Ad Valorem Tax Receipts
Budgeted Transfers From:
Water Fund O>
Sewer Fund W
Solid Waste Fund (I>
Airport Fund
Budgeted Interest Earned
Budgeted appropriation from available funds
Total Sources of Funds
Estimated Balance, 9-30-95
(1) See "Computation of Self-supporting Debt".
Computation of Self-Supporting Debt
The Waterworks System (1)
$19,551,549
120.385
$19,671,934
s 268,630
9,162,809
3,449,991
4,309,112
755,834
468,861
750,000
TI5.266
$19.940.503
$ 268.569
Net System Revenue Available, Fiscal Year Ended 9-30-94 •.••••••••.•••••.••.•.•••.•••.•
Less: Revenue Bond Requirements, Fiscal Year Ending 9-30-95 ••.••..••.••••.••..•..••.•••
Balance Available for Other Purposes • • • . • • • • • • • . • • . • :. • • • • • • • • • • • • • . . • • • • • . • • • • • •
System General Obligation Debt Requirements, Fiscal Year Ending 9-30-95 •••.••..••.•.•.••••• •
Balance .••••.••.......••.••...••.•.....•.••..•••••••..•.•••.••••••..•
Percentage of System General Obligation Debt Self-supporting . • • . • • . . • • • • . • • . . • • • • • • • • • • . •
$12,814,746
-o-
$12,814,746
4,823,457
$7,991,289
100.001¥i
(1) Through Fiscal Year Ended 9-30-91 it was the City's policy each Fiscal Year to transfer from Water Enterprise Fund surplus
to the General Fund an amount at least equivalent to debt service requirements on Waterworks System General Obligation Debt.
Beginning with Fiscal Year Ending 9-30-92 the City budgeted and commenced a multi-year planned shift to direct support of
Waterworks System General Obligation Debt by transfer from Water Enterprise Fund surplus to the General Obligation Interest
and Sinking Fund; for Fiscal Year Ending 9-30-95 $3,449,991 is a budgeted transfer to the Interest and Sinking Fund for
Waterworks System General Obligation debt service. This staged shift is anticipated to continue through Fiscal Year Ending
9-30-96 with total Waterworks System General Obligation debt service for each year thereafter to be provided by direct transfer
from Water Enterprise Fund surplus.
The multi-year staged shift is necessary to avoid exceeding the City's "rollback tax rate" (see "Tax Rate Limitation") as a portion
of the Interest and Sinking Fund Tax Rate formerly levied for Waterworks System General Obligation debt service is shifted
each year to the General Fund tax rate. The effect of this reallocation, beginning with Fiscal Year Ending 9-30-92, can be seen
in the distribution of the Tax Rate under "Tax Rate, Levy and Collection History" and in "Interest and Sinking Fund Budget
Projection".
The City has no outstanding revenue bonds payable from a lien on the net revenues of the Waterworks System.
See "The Waterworks System", page A-7.
27
The Sewer System (1)
Net System Revenue Available, Fiscal Year Ended 9-30-94 •...••....•...•.•....•...•.•..•
Less: Revenue Bond Requirements, 'FisCal !Year Ending 9·30-95 ; . ; •.•....•.. • •...•. ; ••...•.. '
$9,440.423
-0-
Balance Available forOther Purposes ••.......••..••.•••....•..•••... ; ; •.. ·.· •... · ...
System General Obligation Debt Requirements, Fiscal Year Ending 9-30-95 .•........•..•....•..
Balance . • . . • • . . . • . . . • . . . • . • .. . . . . • . . . • . • . . . • • . . . . • • . • • • • . • . • • ; : . • ; . . • ',
$9,440,423
6,376.959
$3,063,064
Percentage of System General Obligation Debt Self .Supporting . . . . . . • . ; . . • . . ; . . . . . • . . ·• • . . ; . 100.00%
(1) State Revolving Fond ("SRF"l Loans •
The City has received three loans totaling $50,600,000 from the Texas Water DevelopmentBoard ("TWDB~) under the SRF
loan program to finance major wastewater treatment and disposal improvements. Three separate series of Combination Tax and
Sewer System Subordinate Lien Revenue Certificates of Obligation (the "Sewer System Certificates") were delivered to TWDB
to evidence these loans as follows:
Sewer As of 2-28-95*
Sy:stem Project ··Principal
Loan Certificate Loan Closing Completion Outstanding Maturity
Proiect Amount Series Date Date Princi[!al '(Due2-15}
A $ 1,655,000 1991 January, 1992 1993 $ 1,415,000 1996-2012
B 34,520,000 1992 June, 1992 1994 . 32,795,000 1996-2014
c 14,425,000 1993 June, 1993 July, 1995** 14,425,000 1996-2015
$ 50,600,000 $48,635,000
.-!
* Principal of each series of Certificates matures in an approximately equal· amount each' year over the years of principal
maturity shown. Debt service requirements on these Sewer System Certificates is being paid from System net revenues by direct
deposit to' the General Obligation Interest and Sinking Fund. For Fiscal Year Ending 9-30-95 debt service on the Sewer System
Certi.ficatesis $4,309,112 which is a budgeted transfer to the Interest and SinkingFund. ·
** .AntiCipared.
Other Sewer System General Obligation Debt
For Sewer System General Obligation debt service other _than for the S~ loans discussed above it has been the City's policy
each Fiscal Year to transfer from Sewer Enterprise Fund surplus to the General Fund an amount at least equivalent to debt
service requirements on this Sewer System General Obligation Debt; for Fiscal Year Ending 9-30-95 this debt service is
$2,067;847;. '
Begi}trutig in Fiscai·Year Ending 9-30-96, similarly to that described under "The Waterworks System", above, a staged shift
ro' direct support of this debt service will be. initiated from Sewer Enterprise Fund surplus to the General Obligation Interest and
Sinking ·Fund; ti:US staged shift is anticipated to continue thtough Fiscal Year Ending 9-30-97 with total Sewer System General
Obligation debt service for each year thereafter to be provided by direct transfer from Sewer Enterprise Fund:sui:plus. '
The City has no outStanding revenue bonds payable from' a lien on the net revenues of the Sewer System.
' > '
See "Th~ Sewer System", page A-11;
' '
28
The Solid Waste Disposal System (l)
Net System Revenue Available, Fiscal Year Ended 9-30-94 • , .• , •••• , .•••••.••••••.•••••.••
Less: Revenue Bond Requirements, Fiscal Year Ended 9-30-94 •••••..••••.••••••.•• , •••••••
Balance Available for Other Purposes •••..•••••••.••••••.••.••.•••••..•.••.•.•••••
System General Obligation Debt Requirements, Fiscal Year Ended 9-30-95 .· •.••••••••••.•••.•••.••
Balance ••.•••••.•..••.•••••..••.•.••...•••.•••.•••••••••.•.•.••.••••••
$4,940,976
-0-
$4,940,976
755,834
$4,185,142
Percentage of System General Obligation Debt Self-Supporting • • • • • • • • • • • • • • • • • • . • • • . • • . • • • • • • 100.00%
(1) Each Fiscal Year the City transfers from net revenues of the Solid Waste Enterprise Fund to the General Obligation Interest
and Sinking Fund an amount equal to debt service requirements on System general obligation debt.
See "The Solid Waste Disposal System", page A-13.
Authorized General Obligation Bonds
Amount Amount
Date Amount Heretofore Being Unissued
Pumose Authorized Authorized Issued Issued· Balance
Waterworks System 10-17-87 $ 2,810,000 $ 200,000 $ -0-$ 2,610,000
Sewer System 5-21-77 3,303,000 2,175,000 -0-1,128,000
Street Improvements 5-1-93 10,170,000 5,156,000 .().. 5,014,000
Library 5-1-93 2,780,000 100,000 2,680,000 .()..
Parks 5-1-93 5,385,000 2,350,000. 1,540,000 1,495,000
Fire Department* 5-1-93 470,000 .().. 470.000 -0-
~24!918.000 ~19811000 ~.690,000 !101247,000
* Emergency traffic control system improvements.
Anticipated Issuance of Authorized General Obligation Bonds and Other Obligations
Street Improvements
Parks
1996
$2,242,000
990.000
$3,232.000
1997
$1,800,000.
320,000
$2.120,000
1998
$ 972,000
185.000
$1.157,000
Total
$5,014,000
1,495,000
$6,509.000
Note: The City has no present plans for the sale and issuance of authorized hut unissued $2,610,000 Waterworks System Bonds
and $1,128,000 Sewer System Bonds or for the authorization, sale and issuance of other general obligation debt.
Funded Debt Limitatinn
There is no direct funded debt limitation in the City Charter or under State Jaw. The City operates under a Home Rule Charter
that limits the maximum tax rate, for all City purposes, to $2.50 per $100 Assessed Valuation. Administratively, the Attorney
General of the State of Texas will permit allocation of $1.50 of the $2.50 maximum tax rate for general obligation debt service.
29
Other Obligations
(1) The City has entered into lease agreements for the purpose of acquiring certain properties and equipment. As of 2-28-9.5
capital leases were as follows: ·
Balance
Payable from: 1995 1996 1997 Interest Outstanding
Enterprise Fund
Solid Waste-Scraper $ 39,019 $ 5,574 $ -0-$ (1,2.52) $ 43,341
Internal Service Fund
Computer Equipment· $217,696 $373,194 $71.5,288 $(108,946) $1,197,232
Pension Funds
Texas Municipal Retirement System •.• All permanent, full time City employees who are not firefighters are covered by the
Texas Municipal Retirement System. The System is an agent multiple-employer public employee retirement system 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 Lubbockjoined the System in 1950 to supplement Social Security. All City employees except firefighters are
covered by· Social Security. ·Options offered under the System, and adopted by the City, include current, prior and antecedent
service credits, ten year vesting, updated service credit, occupational disability benefits and survivor benefits for the spouse of
a vested employee. ·An employee who retires receives an annuity based on the amount of the employees contributions over-
matched two for one by the City. Employee contribution rate is 6% of gross salary. The City's contribution rate is calculated
each year usiitg actuarial techniques applied to experience. The 1994 contribution rate was 10.42%; the 1995 contribution rate
is 11.48%. Enabling statutes prohibit any member city from adopting options which impose liabilities that cannot be amortized
over 25 years within a specified statutory rate.
On December 31, 1993, assets held by the System, not including those of the Supplemental Disability Fund which is "pooled",
for the City of Lubbock were $95,946,540. Unfunded accrued liabilities on December 31, 1993, were $25,547,239, which is
being amortized over a 25 year period beginning January, 199.5. Total contributions by the City to the System for Calendar Year
1993 were $4,579,094.
Firemen's Relief and Retirement Fund •.. City of Lubbock firefighters 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
firefighters, by vote of the department, in 1941. Firefighters are not covered by Sociat Security.
The Fund is governed by seven trustees, three firefighters, tWo outside trustees (appointed by the other trustees), the Mayor or
his representative and the chief financial officer or his representative. Execution of the act is monitored by the Firemen's
Pension Commissioner, who is appointed by the Governor.
Benefits of retired firemen are determined on a "formula" or a "final salarY" plan. Actuarial reviews are performcXJ e~ery ~ree
years, and the fund is audited annually. Firefighters contribute ·11 % of full salary into 'the fund and the City must coritribute
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 fighfighter's contribution rate that the City's rate paid into the Texas Municipat Retirement System
and FICA bears to the rate other employees pay into the Texas Municipal Retirement System and FICA. The City's contribution
rate for 1995'is 15.42%. · · · ' ·
As of Deeember 31; 1993, unfunded liabilities were $15,006,685 which is being amortized over a 28 year period beginning
January 1, 1993. Contributions by the City to the Fund for Calendar Year 1993 were $1,300,725.
*Sources: Texas Municipal RetiiementSystem, Comprehensive Annual Financial Report for Year Ended December31, 1993.
City of Lubbock, Texas.
30
) ) ) ) ) ) ) ') ) )
General Fund Revenues and Expenditures
Fiscal Years Ended S~mber 30,
Revenues Budget
1995 1994 1993 1992 1991 1990
Ad Valorem Taxes $21,315,161 $20,211,459 $ 18,780,657 $17,689,820 $ 16,213,919 $14,911,385
Sales Taxes 19,000,000 19,467,903 17,731,784 16,386,350 15,907,117 15,530,468
Franchise Taxes 5,040,827 5,247,351 4,498,921 4,196,663 3,488,691 3,377,870
Miscellaneous Taxes 1,035,000 631,158 561,774 616,722 667,478 712,203
Licenses and Permits 960,728 1,038,772 882,878 753,667 768,924 719,979
Intergovernmental 895,634 1,310,604 1,280,182 1,286,662 1,227,449 1,511,791
Charges for Services 2,498,516 2,326,521 2,160,504 2,287,530 2,081,955 2,243,428
Fines 2,423,000 2,141,811 2,421,749 2,152,145 2,378,986 2,489,471
Miscellaneous 2,598,130 2,738,708 2,412,629 2,905,332 4,042,185 3,222,731 "1 Operating Transfers (in) 13,120,198 13,810,921 14,044,552 13,796,281 13,890,216 13,175,352 -Total Revenues and Transfers (in) $68,887,194 $68,925,208 $64,775,630 $62,071,172 $60,666,920 $57,894,678 ~
Emenditures -~
!,) General Government (1) $ 2,731,960 $ 2,664,896 $ 2,382,947 $ 2,412,645 $2,449,344 --Financial Services (1) 2,071,418 2,065,725 2,023,360 1~910,799 1,815,589 ~ Management Services (1) 1,989,477 2,037,481 2,368,479 2,579,610 2,500,230 i Development Services (1) 6,662,148 6,397,086 6,593,869 6,274,866 5,831,381 ; Public Safe~¥ and Services (1) 47,253,201 45,611,706 44,624,486 42,247,744 39,968,470
Non-Departmental (1) 661,181 648,242 11,203 29,532 265,108 ~ Operating Transfers (out) {1} 5,194,276 3,766,698 3,113,501 4,642,478 4,304,580
Total Expenditures and Transfers (out) $68,837,817 $ 66.563,661 $ 63,191.834 $61,117.845 $ 60,097,674 $57,134,702
Excess of Revenues and Transfers (in) Over
Expenditures (out) $ 49,377 $ 2,361,547 $ 1,583,796 $ 953,327 $ 569,246 $ 759,976
Residual Equity Transfer -o--0--0--0-(64,212) (22,969)
Fund Balance at Beginning of Year 14.746,780 12.385,233 10,801.437 9,848.110 9,343,076 8,606,069
Fund Balance at End of Year $14,796,157 $14,746,780 $ 12,385,233 $10,801,437 $ 9,848,110 $ 9,343,076
Less: Reserves and Designations (1,105,248)(%) {1,056,628) (1,254,118) (1,274,992) (1,769,507) {1,706,674)
Undesignated Fund Balance $ 13,690,909 $ 13.690.152 $ 11.131,115 $ 9.526,445 $ 8.078,603 $ 7,636.402
(1) Expenditures have been reclassified for Fiscal Year Ending 9-30.95 and are not comparable to prior years classifications. Reference is made to the City's
1994-95 Budget for these classifications.
(2) Estimated.
Municipal Sales Tax History
The City has adopted the Municipal·Sales and Use Tax Act, VATCS, Tax Code, Chapter 321, which grants the City the power
to impose and levy a 1% Local Sales and Use Tax within the City; the proceeds are credited to the General Fund and are not
pledged to the payment of the Bonds. In addition, as noted under "Tax Rate Limitation", in January, 1995, voters approved
the levy of a one-eighth cent sales and use tax as authorized by VATCS, Tax Code, Chapter 323, as amended; collection will
commence in October, 1995; proceeds of the one-eighth cent sales tax are for the use and benefit of the City to replace property
tax revenues lost as a result of the adoption of the tax and are not pledged to the payment of the Bonds. Collections and
enforcements are effected through the offices of the Comptroller of Public Accounts, State of Texas, who remits the proceeds
of the tax, after. deduction of a 2% service fee, to the City monthly. Revenue from the 1 % Local Sales and Use Tax, for the
years shown, has been:
Fiscal
Year %of Equivalent of
Ended Total Ad Valorem Ad Valorem Per
9-30 Collected Tax Len! Tax Rate Capita*
1985 $13,310,105 57.95% $ 0.341 $70.94
1986 12,953,236 53.80% 0.323 68.80
1987 12,563,905 47.50% 0.285 66.58
1988 13,960,077 51.14% 0.312 73.47
1989 15,059,072 51.52% 0.330 78.68
1990 15,530,468 52.23% 0.334 83.40
1991 15,907,117 52.67% 0.337 85.00
1992 16,386,350 54.06% 0.346 87.40
1993 17,731,784 59.35% 0.380 94.33
1994 19,467,903 62.13% 0.396 102.44
*Based on estimated population for all years except 1990 which is U.S. Census.
Financial Policies
Basis of Accounting • . . The accounting policies of the City conform to generally accepted accounting principles of the
Governmental Accounting Standards Board and program standards adopted by the Government Finance Officer's Association
of the United States and Canada ("GFOA "). The GFOA has awarded a Certificate of Achievement for Excellence in Financial
Reporting to the City of Lubbock for each of the fiscal years ended September 30, 1984 through September 30, 1993. The
City's current report has been submitted to GFOA to determine its eligibility for another Certificate.
General Fund Balance .•. The City's objective is to achieve and maintain a General Fund balance equivalent to two months
operating cost of the General Fund Budget. This should be sufficient to provide financing for necessary projects, unanticipated
contingencies, and fluctuations in anticipated revenues.
Debt Service Fund Balance . • . A reasonsble debt service fund balance is maintained in order to compensate for unexpected
contingencies.
Budgetary Procedures . • . The City follows these procedures in establishing operating budgets:
1) Prior to August 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year
commencing the following October 1. The operating budget includes proposed expenditures and the means of financing
them.
2) Public hearings are conducted to obtain taxpayer comments.
3) Prior to October 1, the budget is legally enacted through passage of an ordinance.·
4) The City·Manager is authorized to transfer budgeted.amounts between departments and funds. Expenditures may not
legally exceed budgeted apPropriations at.the fund level; ·
5) Formal budgetary integration is employed as a management control device during the year for the Convention and
Tourism, Criminal Investigation, and Capital Projects Funds. Budgets are adopted on an annual basis. Formal budgetary
integration is not employed for Debt Service Funds because effective b~dgetary control is alternatively achieved through
general obligation bond indenture and other contract provisions.
32
.-.
6) The Budget for Che General Fund is legally adopred on a basis consistent with generally accepred accounting principles
("GAAP").
7) Appropriations for the General Fund lapse at year end. Unencumbered balances for Che Capital Projects Funds continue
as authority for subsequent period expenditures.
8) Budgetary comparison is presenred for the ' Genefal Fund in the combined financial Statement section of Che
Comprehensive Annual Financial Report.
The City has also received the GFOA's award for Distinguished Budget Presentation for Che following budget years: October 1,
1983-88 and October 1, 1990-93. The City has submitred the current budget to Che GFOA to determine its eligibility for another
certificate.
Insurance •.• Except for Airport liability insurance, the City is self-insured for liability, workers' compensation, and health
benefits coverage. Insurance policies are maintained with large deductibles' for fire and extended coverage and boiler coverage.
An Insurance Fund has been established in Che Internal Service Fund to account for insurance programs and budgeted transfers
are made to this fund based upon estimared payments for claim losses.
At 9-30-94 the reserves had the following balances:
Reserve for self-insurance -health
Reserve for self-insurance -other Chan heatth
INVESTMENTS
$2,075,335
$3,989,332
Fund Investments. The City invests in investments authorized by Texas law in accordance with written investment policies
that are approved by the Investment Review Committee. ·
The City Council has delegared responsibility for the investment authority to Che City Treasurer who is also Che Director of
Support Services. The City Treasurer chairs the Investment Review Committee which also includes Che Director of Electric
Utilities, Director of Management Services, Chief Accountatlt and Assistant Tr~urer. Policy changes and updates are approved
by the committee. The committee reviews the performance of the investment portfolio on a monthly basis.
Both state law and Che City's investment policies are subject to change.
Legal Investments. Under current Texas law, the City is authorized to invest in:
1) Obligations of the Unired States or its instrumentalities;
2) Direct obligations of the State of Texas or its agencies;
3) Other obligations, the principal and interest on which are unconditionally guaranteed by the State of Texas or the Unired
States (or its agencies or instrumentalities); .
4) Obligations of states, agencies, counties, cities, and oCher political aubdivisions of any state having been ratOO as to
investment quality by a nationally recognized investment rating firm and having received a rating of not less than A or its
equivalent;
5) Certificates of Deposit issued by state and national banks domiciled in Che state that are guaranteed or insured by the FDIC,
or its successor; or secured by obligations that are described above, which are intended to include all direct (federal) agency
or instrumentality issued mortgage-backed securities rates AAA by a nationally recognized rating agency or by Article
2529b-1, v.t.c.s., and that have a market value of not less than the principal amount of the certificates (or in any other
manner and amount provided by law for deposits of Che investing entities);
6) Certificates of Deposit issued by savings and loan associations domiciled in this state that are guaranteed or insured by Che
FSLIC, or its successor, or secured by obligations that are descnbed above, which are intended to include all direct federal
agency or instrumentality issued mortgage-backed securities that have a market value of not less Chan Che principal amount
of the certificates or in any oCher manner and amount provided by law for deposits of Che investing entities;
7) Prime Domestic Bankers' Acceptances with a stared maturity of 270 days or less from Che date of its issuance that will be,
in accordance with its terms, liquidared in full at maturity, that is eligible collateral for borrowing from a Federal Reserve
Bank, and that is accepred by a bank organized and existing under the laws of the Unired States or any state, Che short-term
obligations of which (or of a bank holding company of which the bank is Che largest subsidiary) are rared at least A-1, P-1,
or Che equivalent by at least one nationally recognized credit rating agency.
8) Commercial paper with a stared maturity of 270 days or less from the date of its issuance Chat either: is ratOO not less Chan
A-1, P-1, or Che equivalent by at least two nationally recognized credit rating agencies; or is rared at least A-1, P-1, or its
33
·equivalent by at least one nationally recognized credit rating agency and is fully secured by an irrevocable letter of credit
issued by a bank organized' and existing under the laws of the United States or any state thereof;
9) Fully collateralized direct repurchase agreements having a defined termination date, secured by direct obligations of the
United States or its agencies and instrumentalities, pledged with a third party selected or approved by the political entity,
and placed through a primary government securities dealer, as defined by the Federal Reserve or a bank domiciled in this
State. "Repurchase agreement" means a simultaneous agreement to buy, hold for specified time, and then sell back at a
future date, obligations described above, the principal and interest of which are guaranteed by the United States, or any of
its agencies, in market value of not less than the principal amount of the funds disbursed. The term includes direct security
repurchase agreements and reverse security repurchase agreements. . . .
Fully collateralized repurchase agreements shall in addition to the wording of the act be limited as follows: repurchase
agreements shall be collateralized at 102% of the money value of the transaction at the time of purchase and in no case
should the collateral value be allowed to go below 101 %, the maturity of the collateral security shall be no longer than ten
_ years, and the market value of the collateral shall be priced at least weekly;
1 0) SEC-registered, no-load money market mutual funds with a dollar-weighted average portfolio maturity of 120 days or less
whose assets consist exclusively of the obligations described above and whose investment objectives include seeking to
maintain a stable net asset value of $1 per share. However, a city or county cannot invest in the aggregate more than 20
percent of its monthly average fund balance, excluding bond proceeds, in money market mutual funds or invest its funds,
or funds under its control, excluding bond proceeds, in any one money market mutual fund in an amount that exceeds 10
percent of the total assets of the money market mutual fund;
11) Common trust funds or comparable investment devices owned or administered by banks domiciled in this state and whose
assets consist exclusively of all or a combination of the obligations described above. The common trust funds of banks may
be used if they are available; they comply with the provisions of the Internal Revenue ·code of 1986 and applicable federal
regulations governing the investment of bond proceeds; and they meet the cash flow requirements and the investment needs
of the city.
Investment Policies. Under Texas law, the City is required to invest its funds under written investment policies that primarily
emphasize safety of principal and liquidity and that address investment diversification, yield, maturity, and the quality and
capability of investment management, and all City funds must be invested in investments that protect principal, are consistent
with the operating requirements of the City, and yield the highest possible rate of return within these constraints. Under Texas
law, City investments must be made "with judgement and care, under prevailing circumstances, that a person of prudence,.
discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation, but for
investment, considering the probable safety of capital and the probable income to be derived". No person may invest City funds
without express written authority from the City Treasurer.
The City maintains the minimum amount of cash in its bank accounts to meet daily needs, and to protect its principal while
receiving the highest yield possible from investing all temporary excess cash. ·
There are five objectives which the Investment Policy addresses. The primary objective of the investment policy is to preserve
the capital in the overall portfolio. Each investment transaction seeks to first ensure that capital losses are avoided, whether
they be from securities defaults or erosion of market value. The second objective is to maintain sufficient liquidity to meet the
City's needs .. The City is required to maintain 10% of its portfolio in instruments that mature in 180 days or less. The third
objective is diversify to avoid incurring unreasonable risks regarding securities owned. The fourth objective is to obtain the
highest yield on investments within the other four objectives. The fifth objective is to conform to all Federal, State, and other
legal requirements. The. day to day investment activities are performed by the City's Assistant Treasurer.
The City ~ay invest to the following limits as a percentage of its total portfolio:
.·100% in United States Treasury obligations
50% in Certificates of Deposit . .
40% in Federal Instrumentalities or Agencies .
. 30% ht Repurchase Agreements collateralized by Federal Instrumentalities, o;
100% in Repurchase Agreements collateralized by United States Treasury obligations,
Investments 1n a qualifying Investnlent Pool (in accordance with Resolution dated May 28, 1992) should be limited to no more
than 5% of the total assets in the pool.
Diversification ·protects mterest income from the volatility of interest rates and the avoidance of undue concentration of assets
in a specific maturity sector; therefore, portfolio maturities are staggered. Securities are also selected which provide for stability
of income. The asset. allocation· of the portfolio is flexible depending upon ,the outlook for. the economy and the securities
market. Should conditions warrant, these guidelines can be exceeded by approval of at least two of the Investment Review
Committee members.
34
) ) ) ) } ) ) )
Current Investments. As of 2-28-95, the City's investible funds were invested in the following categories of investment:
Estimated
Book Value Fair Market Value <t)
%of %of Weighted
Par Total Book Average
Catego!! Value Value Book Value Value Value Maturi~
United States Treasury Obligations $ 44,700,000 $ 44,456,619 29.73% $ 44,136,580 99.28% 24.0 Months
United States Agency Obligations 82,000,000 81,706,924 54.64% 81,066,000 99.22% 0.8 Months
Repurchase Agreements Collateralized by U.S.
Treasury Obligations 23,000,000 23,000,000 15.38% 23,000,000 100.00% 1 Day (7)
Bank Certificates of Deposit 283,600 283,600 0.19% 283,600 100.00% 4.5 Months
TexPool (local government investors pool managed by
the Texas State Treasurer) 88.921 88.921 0.06% 88,921 100.00% 1 day
~ 150,072,521 ~ 149,536,064 100.00% s 148!575,101 99.36! 12.0 Months
(1) As determined by the City by reference to published quotations, dealer bids, and comparable information.
(2) The City's policy is to limit repurchase agreements to a one week maturity; on 2-28-95 the maturity of the City's outstanding agreements was 1 day,
Average portfolio yield for the five months period ending 2-28-95 was 5.408%.
The City holds all investments to maturity which minimizes the risk of market price volatility.
No funds of the City are invested in mortgage-backed securitieS. There are no investments in derivatives except for a $2,000,000 Federal Home Loan Bank
Agency Floating Rate Note maturing July, 1996, which adjusts quarterly based on the following formula: 10-year Constant Maturity Treasury rate ("CMT")
plus 160 Basis Points minus 3-Month London Interbank Offered Rate ("LIBOR "); market value on 2-28-95 was approximately $1,930,000 (1,30% of the market
value of the City's portfolio).
To prevent the possibility of loss of resources, the City attempts to identifY and limit exposure to default risk. Default risk is controlled through internal
procedures and controls. The use of a third party safekeeping agent and a delivery versus payment system control this risk. In addition, the City's investment
transactions are audited annually by an independent auditor.
)
OTHER RELEVANT INFORMATION
Ratings
The presently outstanding tax supported debt of the City is rated "Aa" by Moody's Investors Service, Inc. ("Moody's") and
"AA" by Standard & Poor's Rating Group, a division of McGraw-Hill ("S&P"). Applications for contract ratings on these issues
have been made to both Moody;s and S&P. An explanation of the significance of such ratings, when received, may be obtained
from the company furnishing the rating. Such ratings reflect only the respective views of such orgailizations 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 companies, if in the
judgment of either or both companies, circumstances so warrant. Any such downward revision or withdrawal of such ratings,
or either or both of them, may have an adverse effect on the market price of the Bonds and the Certificates.
Tax Exemption
The delivery of the Bonds and the Certificates is subject to the opinion of Bond Counsel to the effect that interest on the Bonds
and the Certificates for federal income tax purposes (1) will be excludable from gross income, as defined in section 61 of the
Internal Revenue Code of 1986, as amended, to the date of such opinion (the "Code"), pursuant to section 103 of the Code and
existing regulations, published rulings and court decisions, and (2) will not be included in computing the alternative minimum
taxable income of the owners thereof who are individuals or, except as hereinafter described, corporations. A form of Bond
Counsel's opinion on the Bonds is reproduced as Appendix B; a form of Bond Counsel's opinion on the Certificates is
reproduced as Appendix C. The statute, regulations, rulings, and court decisions on which such opinion is based are subject
to change.
Interest on all tax-exempt obligations, including the Bonds and the Certificates, owned by a corporation will be included in such
corporation's adjusted current earnings for tax years beginning after 1989, for purposes of calculating the alternative minimum
taxable income of such corporation, other than an S corporation, a qualified mutual fund, a real estate investment trust (REIT),
or a real estate mortgage investment conduit (REMIC). A corporation's alternative minimum taxable income is the basis on
which the alternative minimum tax imposed by the Tax Reform Act of 1986 and the environmental tax imposed by the Superfund
Revenue Act of 1986 will be computed.
In rendering the foregoing opinions, Bond Counsel will rely upon representations and certifications of the City made in
certificates, dated as of the date of delivery of the Bonds and the Certificates, pertaining to the use, expenditure, and investment
of the proceeds of the Bonds and the Certificates and has assumed continuing compliance with the provisions of the Ordinances
by the City subsequent to the issuance of the Bonds and the Certificates. The Ordinances contain covenants by the City with
respect to, among other matters, the use of the proceeds of the Bonds and the Certificates, the manner in which the proceeds
of the Bonds and the Certificates are to be invested, the periodic calculation and payment to the United States Treasury of
arbitrage "profits" from the investment of the proceeds, and the reporting of certain information to the United States Treasury.
Failure to comply with any of these covenants would cause interest on the Bonds and the Certificates to be includable in the
gross income of the owners thereof from the date of issuance of the Bonds and the Certificates.
Except as described above, Bond Counsel expresses no other opinion with respect to any other federal, state or local tax
consequences under present law, or proposed legislation, resulting from the receipt or accrual of interest on, or the acquisition
or disposition of, the Bonds and the Certificates. Prospective purchasers of the Bonds and the Certificates should be aware that
the ownership of tax-exempt obligations such as the Bonds and the Certificates may result in collateral federal tax consequences
to, among others, financial institutions, property and casualty insurance companies, certain foreign corporations doing business
in the United States, S corporations with Sub-chapter C earnings and profits, individual recipients of Social Security or Railroad
Retirement benefits, and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry or who
have paid or incurred certain expenses allocable to tax-exempt obligations. Prospective purchasers should consult their own tax
advisors as to the applicability of these consequences to their particular circumstances.
Tax Accounting Treatment of Discount and Premium on Certain Bonds and CertifiCates
The initial public offering price of certain Bonds and Certificates (the "Discount Bonds and Discount Certificates") may be less
than the amount payable on such Bonds and Certificates at maturity. An amount equal to the difference between the initial public
offering price of a Discount Bond or Discount Certificate (assuming that a substantial amount of the Discount Bonds and
Discount Certificates of that maturity are 80ld to the public at such price} and the amount payable at maturity constitutes original
issue discount to the initial purchaser of such Discount Bond or Discount Certificate. A portion of such original issue discount
allocable to the holding period of such Discount Bond or Discount Certificate by the initial purchaser will, upon the disposition
of such Discount Bond or Discount Certificate (including by reason of itS payment at maturity), be treated as interest excludable
from gross income, rather than as taxable gain, for federal income tax purposes, on the same terms and conditions as those for
36
'other interest on the Bonds and Certificates described above under "T&X Exemption." Such interest is considered to be accrued
actuarially in accordance with the constant interest method over the life of a Discount Bond or Discount Certificate, taking into
account the semiannual compounding of accrued iltterest, at the yield to maturity on such DisCount Bond or Discount Certificate
and generally will be allocated to an original purchaser in a different amount from the amount of the payment denominated as
interest actually received by the origUlal purchaser during the tax year. · ·
However, such interest may be required to be taken into account in detennining the alternative minimum taxable income of a
corporation, for purposes of calculating a corporation's alternative mini.thuin tax and the environmental tax imposed by
Sections 55 and 59A, respectively, of the Code, and the amount of the branch profits tax applicable to certain foreign
corporations doing business in the United States, even though there will not be a corresponding cash payment. In addition, the
accrual of such interest may result in certain other collateral federal income tax consequences to, among others, financial
institutions, life insurance companies, property and casualty insurance companies, S corporations with "subchapter c• earnings
and profits, individual recipients of Social Security or Railroad Retirement benefits, and taxpayers who may be deemed to have
incurred or continued indebtedness to purchase or carry, or who have paid or incurred certain expenses allocable to, tax-exempt
obligations. Moreover, in the event of the redemption, sale or other taxable disposition of a Discount Bond or Discount
Certificate by the initial owner prior to maturity, the amount realized by such owner in excess of the basis of such Discount
Bond in the hands of such owner (adjusted upward by the portion of the original issue discount allocable to the period for which
such Discount Bond or Discount Certificate was held) is includable in gross income.
Owners of Discount Bonds and Discount Certificates should consult with their own tax advisors with respect to the determination
of accrued original issue discount on Discount Bonds and Discount Certificates for federai income tax purposes and with respect
to the state and local tax consequences of owning and disposing of Discount Bonds and Discount Certificates. It is possible that,
under applicable provisions governing determination of state and local income taxes, accrued interest on Discount Bonds or
Discount Certificates may be deemed to be received in the year of accrual even though there will not be a corresponding cash
payment.
The initial public offering price of certain Bonds and Certificates (the "Premium Bonds and Premium Certificates") may be
grester than the amount payable on such Bonds and Certificates at maturity. An amount equal to the difference between the
initial public offering price of a Premium Bond or Premium Certificate (assuming that a substantial amount of the Premium
Bonds and Premium Certificates of that maturity are sold to the public at such price) and the amount payable at maturity
constitutes premium to the initial purchaser of such Premium Bonds and Premium Certificates. The basis for federal income
tax purposes of a Premium Bond or Premium Certificate in the hands of such initial purchaser must be reduced each year by
the amortizable bond premium, although no federal income tax deduction is allowed as a result of such reduction in basis for
amortizable bond premium. Such reduction in basis will increase the amount of any gam (or decrease the amount of any loss)
to be recognized for federal income tax purposes upon a sale or other taxable disposition of a Premium Bond or Premium
Certificate. The amount of premium which is amortizable each year by an initial purchaser is determined by using such
purchaser's yield to maturity.
Purchasers of the Premium Bonds and Premium Certificates should consult with their own tax advisors with respect to the
determination of amortizable bond premium on Premium Bonds and Premium Certificates for federal income tax purposes and
with respect to the state and local tax consequences of owning and disposing of Premium Bonds and Premium Certificates.
Litigation
It is the opinion of the City Attorney and City Staff that there is no pending litigation against the City that would have a material
adverse financial impact upon the City or its operations.
Registration and Qualirtcation of Bonds and CertifiCates for Sale
The sale of the Bonds and the Certificates 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 and Certificates have not been qualified
under the Securities Act of Texas in reliance upon various exemptions contained therein; nor have the Bonds and Certificates
been qualified under the securities acts of any jurisdiction. The City assumes no responsibility for qualification of the Bonds
and the Certificates under the securities laws of any jurisdiction in which the Bonds and the Certificates may be sold, assigned,
pledged, hypothecated or otherwise transferred. This disclaimer of responsibility for qualification for sale or other disposition
of the Bonds and Certificates shall not be construed as an interpretation of any kind with regard to the availability of any
exemption from securities registration provisions.
37
Legal Investments and Eligibility to Secure Public Funds in Texas .
Section 9 of the Bond Procedures 'Act provides that the Bonds and Certificates "shall constitute negotiable instruments, and are
investment securities governed by Chapter 8, Texas Uniform Commercial Code, notwithstanding any provisions of law or court
decision to the contrary, and aie legal and authorized investments for banks, savings banks, trust companies, building and loan
associations, savings and loan associations, insurance companies, fiduciaries, and trustees, and for the sinking fund of cities,
towns, villages, school districts, and other political subdivisions or public agencies of the State of Texas". The Bonds and
Certificates are eligible to secure deposits of any public funds of the state, its agencies and political subdivisions, and are legal
security for those deposits to the extent of their market value. No review by the City has been made of the laws in other states
to determine whether the Bonds and Certificates 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 and
Certificates, including the unqualified approving legal opinion of the Attorney General of Texas approving the Initial Bond and
Initial Certificate and to the effect that the Bonds and Certificates· are valid and legally binding obligations of the City, and based
upon examination of such transcript of proceedings, the approving legal opinion of Bond Counsel, to like effect and to ihe effect
that the interest on the Bonds and the Certificates will be excludable from gross income for federal income tax purposes under
Section 103(a) of the Code, subject to the matters described under "Tax Exemption" herein, including the alternative minimum
tax on corporations. The customary closing papers, including a certificate to the effect that no litigation of any nature has been
filed or is then pending tO restrain the issuance and delivery of the Bonds and the Certificates, or which would affect the
provision made for their payment or security, or in any manner questioning the validity of said Bonds and Certificates 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 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 and Certificates in the Official Statement to verify that
such description conforms to the provisions of the Ordinances. The legal fee to be paid Bond Counsel for services rendered
in connection with the issuance of the Bonds and Certificates is contingent on the sale and delivery of the Bonds and Certificates.
The legal opinion will accompany the Bonds and Certificates deposited with DTC or will be printed on the Bonds and
Certificates in the event of the discontinuance of the Book-Entry-Only System.
Authenticity of Financial Data and Other 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 herem will be realized. All of the summaries of the statutes, documents and resolutions contained in this Official
Statement are made subject to all of the provisions of such statutes, documents and resolutions. These summaries do not purport
to be complete statements of such provisions and reference is made to such documents for further information. Reference is
made to original documents in all respects.
Financial Advisor
First Southwest Company is employed as Financial Advisor to the City in connection with the issuance of the Bonds and
Certificates. The Financial Advisor's fees for services rendered with respect to the sale of the Bonds and the Certificates is
contingent upon the issuance and delivery of the Bonds and the Certificates. First Southwest Company may submit a bid for
the Bonds and the Certificates, either independently or as a member of a syndicate organized to submit a bid for the Bonds and
the Certificates. First Southwest Company, in its capacity as Financial Advisor, has relied on the opinion of Bond Counsel and
has not verified and does not assume any responsibility for the information, covenants and representations contained in any of
the legal documents with respect to the federal income tax status of the Bonds and the Certificates, or the possible impact of
any present, pending or future actions taken by any legislative or judicial bodies.
38
--
Certirteation of the Offacial Statement
At the time of payment for and delivery of the Bonds and the Certificates, the initial purchasers 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 Certificates 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 necessacy 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 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 unaudited financial statements of the City.
The Ordinances authorizing issuance of the Bonds and the Certificates will also approve the form and content of this Official
Statement, and any addenda, supplement or amendment thereto, and authorize its further use in the reoffering of the Bonds and
the Bonds and the Certificates by the initial purchaser.
ATTEST:
BETTY M. JOHNSON
City Secretaty
39
DAVID R. LANGSTON
Mayor
City of Lubbock, Texas
TmS PAGE LEFT INTENTIONALLY BLANK
APPENDIX A
GENERAL INFORMATION REGARDING THE CITY
THIS PAGE LEFT INTENTIONALLY BLANK
Location
The City of Lubbock, County Seat of Lubbock County, Texas, is located on the South Plains of West Texas. Lubbock is the
economic, educational, cultural and medical center of the area. ·
Population
Lubbock is the ninth largest City in Texas:
1910 Census
1920 Census
1930 Census
1940 Census
1950 Census
1960 Census
1970 Census
1980 Census
1990 Census
1993 (Estimated)*
1994 (Estimated)*
1995 (Estimated)*
*Source: City of Lubbock, Texas
City of Lubbock
(Comorate Limits}
1,938
'4,051
20,520
31,853
71,390
128,691
149,701
173,979
186,206
187,981
190,038
191,020
Metropolitan Statistical Area («MSA "l (Lubbock County)
1970 Census 179,295
1980 Census 211,651
1990 Census 222,636
1995 (Estimated) 228,394
Agriculture; Business and Industry
Lubbock is the center of a highly mechanized agricultural :area with a majority of the crops irrigated With water &om
underground sources. Principal crops are cotton and grain sorghums with livestock a major addiliolud·source of agricultural
income. In 1993 cotton produclion in the 25-county area in and around Lubbock was 3.45 million bales; 1992 production was
1.4 million bales; estimated 1994 production is 3.1 to 3.2 million bales (source: Plains Cotton Growers, Inc~, Lubbock, Texas).
Three major vegetable oil plants located in Lubbock have a combined weekly capacity of over 1;'869 tons 'of cottonseed and
soybean oil. Several major seed companies are headquartered in· Lubbock.
Over 200 manufacturing plants in Lubbock produce such products as semiconductors, vegetable oils, ·heavy earth-moving
machinery' irrigalion equipment and pipe, farm· equipment, paperboard boxes, foodstuffs, mobile and. prefabricated homes,
poultry and livestock feeds, boilers and pressure vessels, automatic sprinkler system heads, structui'ill steel fabrieatiOn and soft
drinks. " . ,,
Lubbock MSA Labor Force Estimates
· Civilian LAbor Force
··Total Em{lloyment
· Unemployment · '
· Percent Onemploym~t
(1) Subject to revision.
February
1995 (!)
117,700 ;
112;900 ..
•4,800'
4.1"
Source: Texas Employment Commission.
January December
1995 1994
116,500 119,300 '
111,400 . '115;000.
'5;100' ~ ... 4,'300
4.4% . 3:6%:
; ,"•')~::
i· \ 1
A -1
February January
1994 1994
117,200 '114;300'
111,000 109,100
6;200 5,200 .
5.3% 4.5%
. "
December ... ,.
1993
122,000 ..
114;300 :
' 7,700
6.3%· ,, !
. , ... . ·.
L~ '!b'
Estimated non-agricultural wage and salaried jobs in various categories as of February, 1995, were:
. , . Manufacturing .
Mining
Construction
Transportation
Trade
Finance, Insurance and Real Estate
Services
,7,900
200
3,700
5,600
29,800
4,700
28,800
23.600
104,300
Government
Total
Major employers in Lubbock (with 300 employees or more) are:
Co!!manx Product
Texas Tech University State University
Methodist Hospital Hospital
LubbocklndependentSchool~trict Public Schools
TTU Health Sciences Center · Medical and Allied Health School
Reese Air Force Base U. S. Military Installation.
City of Lubbock City Government ..
St. Mary of the Plains Hospital Hospital
University Medical Center Hospital
United Supennarkets Supermarkets
Lubbock State School School for Mentally Retarded
Caprook Home Health Services Home Health Care Service
Texas Instruments, Incorporated Semiconductors
U.S. Postal Service Post Office
Lockheed Support Systems, Inc. Aircraft-Transportation Equipment
Purrs Cafeterias Cafeterias
State Department of Highways Highway and Street Construction
United Parcel Service Courier Services
Industrial Molding Corporation Manufacturing/Plastic Products . .
Southwestern Bell Telephone Company Telephone Utility
Norwest Bank Bank
ARA Food Service Food Broker
Lubbock Regional MHMR Center Social Services
State Department of Human Services Social Services
Pay &, Save Corporation Lowe's Retail Groceries
Maniott School Services HoteUHousekeeping and Hotel
Fleming Foods of Texas Wholesale Groceries
Dillards l)epartment Stores Department Store
McLane High Plains Wholesale Food Distribution
Rip Griffin Truck Service Center Truck Travel Centers
* Full and part time.
** Military and civilian (see "Reese Air Force Base", below.
; :·· ""
<I
Estimated
Employees
March, 1995
5,016*
3,750
3,230
2,501
2,440**
1,850
1,836
1,800
1.474
975
975
850***
629
500
500
484
480
. 460
450
415
400
400
380
380
350
350
340
329
300
*** As projected by Texas Instruments ("Tl") for November, 1995, following restructuring announced in March, 1995; present
employment is approximately 1,350. The personal productivity products division (consumer and peripheral products) and
the custom manufacturing service division (circuit board ~ssemblies) will be consolidated at the corporate sites in Austin,
Temple and Dallas over the next seven months. Tl officials stated that they have no intention of closing the. Lubbock plant's
semiconductor fabrication unit, which has 850 full-time employees; the plant is the second largest Tl facility of its kind in
the United States and the sole producer of EPROM memory chips.
Source: Business Development Support Service, City of Lubbock, Texas.
A-2
,..,
Education •.• Texas Tech University; ••
Established in Lubbock in 1923, Texas Tech University is the fifth largest State--owned University in Texas and had a Fall, 1994,
enrollment of 24,083. Accredited by the Southern Association of Colleges and Schools, the U Diversity is a co-educational, State-
supported institution offering the bachelor's degree in 158 major fields, the master'.s degree in 107 major fields, the doctorate
degree in 64 major fields, and the professional degree in 2 major fields (law and medicine).
I
The University properis situated on 451 acres of the 1,829 acre campus, and has over 160 permanent buildings with additional
construction in progress. Fall, 1994, faculty membership was 786 full-time and 142 part-time. Health Sciences Center faculty
membership for 1994 is 907 full-time and 121 part-time. Including the Health Sciences Center, the University's operating budget
for 1994-95 is $341.8 million of which $90.5 million is from State appropriations; book value of physical plant assets, including
the Health Sciences Center, is in excess.of $696 million.
The medical school had an enrollment of 422 for Fall, 1994, not including residents; there were 35 graduate students. The
School of Nursing had a Fall, 1994, enrollment of 411 including the Permian Basin Program, located in Midland/Odessa; there
were 56 graduate students. The Allied Health School had a Fall, 1994, enrollment of 452.
Source: Texas Tech University.
Other Education Information
The Lubbock Independent School District, with an area of 87.5 square miles, includes over 90% of the City of Lubbock. There
are approximately 3,230 total employees, including 2,512 certified (professional) personnel and 718 other employees. The
District operates four senior high schools, ten junior high schools, 40 elementary schools and other educational programs. ·
Scholastic Membership History*
School
Year
1989-90
199Q-91
1991-92
1992-93
1993-94
Student
Membership
30,861
30,684
30,736
31,103
30,571
Refined
Average
Daily
Attendance
28,373
28,101
28,090
28,359
27,731
* Source: Superintendent's Office, Lubbock Independent School District.
Lubbock Christian U Diversity, a privately owned, co-educational senior college located in Lubbock, bad an enrollment of 1,171
for the Fall Semester, 1994.
South Plains College, Levelland, Texas (South Plains Junior College District) operates a major off-campus learning center in
a downtown Lubbock, 7-story building owned by the College. · College offerings cover technical/vocational subjects; Fall
Semester, 1994, enrollment was 866 including a major off-campus learning center at Reese Air Force Base.
The State of Texas School for the Mentally Retarded, located on a 226-acre site in Lubbock, consists of 40 buildings with bed-
capacity for 440 students; 422 students were in residence. The School's operating budget for 1993/94 was in excess of $19.9
million; there are approximately 975 professioMI and other employees.
Transportation
Scheduled airline transportation at Lubbock International Airport is furnished by Southwest Airlines, Adantic Southeast Airlines,
Continental Express, United Express and American Eagle; non-stop service is provided to Dallas-Fort Worth International
Airport, Dallas Love Field, Denver, El Paso, Austin, Amarillo and Albuquerque. 1994 passenger hoardings totaled 611,497.
Extensive private aviation services are located at the airport.
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 Cit}', Chicago, Los' Angeles and San Francisco. Short-haul rail service is also
furnished by the Seagraves,. Whiteface and Lubbock Railroad. Texas, New Mexico imd Oklahoma Bus Lines, a subsidiary of
Greyhound Corporation, provides bus service. Several motor freight common carriers provide service.
A -3
Lubbock has a well developed highway network including Interstate 27 (Lubbock-Amarillo), 4 l! .,S ~ Highways, l State Highway,
a controlled-access outer loop and a county-wide system of paved farm-to-market roads;
Governffi.ent ~~a· Military · ,, ..
City officials are optimistic that furl'her review Of the information will result'in the removal of Reese from ihe closure list. As
a contingency, the City is developing a re--use plan for the' facilities. Reese Air Force Base represents approximately 2.6% of
the local work force. While closure of the base would not have a positive impact on the Lubbock economy, the current growth
in other economic sectors should minimize or neutralize closure of the base. In addition, there could be·a positive: economic
impact from the re.-use of the base.
Source: City of Lubbock, Texas.
Sta~ of Texas . • • More than 25, State of Texas boards; departments, agencie~ and commissions have ,offices in ~ubbock;
several of these offices have multiple units or offices. . . .
Federal Government ... Several Federal departments and various other administrations and agencies have offices in Lubbock;
a Federal District Court is located in the City. · ·
Texas Department of Criminal Justice ("TDC:J") Prison Psychiatric Hospital
TDCJ is constructing a 550 bed Prison Psychiatric Hospital on a 1,30:3 acre site in Southeast Lubbock. The Hospital will employ
approximately 800 with an annual estimated payroll of $17,000,000 and an estimated annual operating budget of $16,000,000.
Construction is estimated to be completed in June, 1995. ·
Included in construction of the Hospital is a 400 bed capacity "trustee" facility to house prison trustees who will work at the
hospital.
In addition TDCJ will construct a 48 bed regional prison hospital on this site.
Hospitals and Medical Care
There are six hospitals in the City with over 2,000 beds. Methodist Hospital is the largest and.also operates an accredited
nursing school. Lubbock County Hospital District, with boundaries contiguous with Lubbock County, owns the University
Medical Center which it operates as a teaching hospital for the Texas Tech Health Sciences Center. ·There are numerous clinics
and over 600 practicing phySicians and surgeons (M.D.) plus the Texas Tech University Medical School Staff, and over 100
dentists. A radiology center for the treatment of malignant diseases is located in the City. ·
Recreation and Entertainment
Lubbock's Mackenzie Regional Park"and over 70 City parks and playgrounds provide recreation centers, shelter buildings, a
garden and art center, swimming pools, a golf course, tennis and volley ball courts, baseball diamonds and picnic areas,
including the Yellowhouse Canyon Lakes system of four lakes and 500 acres of adjacent parkland extending from norl'hwest to
southeast Lubbock along the Yellowhouse Canyon. There are several privately-owned public swimming pools and golf courses,
and country clubs.
The City of Lubbock has developed a 36 square block area of approximately 100 acres adjacent to downtown Lubbock under
the Lubbock Memorial Civic Center program. Approximately 50 acres contain the 300,000 square foot Lubbock Memorial Civic
Center, the main City library building and State Department of Public Safety offices; a 50 acre peripheral area has been
redeveloped privately with office buildings, hotels and motels, a hospital and other facilities.
Available to residents are Texas Tech University programs and events, T~xas Tech University Museum, Planetarium and Ranch
Heritage Center exhibits and programs, LubbockMemorialCivic Center and its ~vents, Lubbock Symphony Orchestra programs,
A-4
Lubbock Theatre Center, Lubbock Civic Ballet, Municipal Auditorium and coliseum programs and events, the library and its
branches, the annual Panhandle-South Plains Fair, college and high school football, basketball and other sporting events; modem
movie theatres.
Churches
Lubbock has approximately 300 churches representing more than 25 denominations.
Utility Services
Warer and Sewer -City of Lubbock.
Gas -Energas Company.
Electric -City of Lubbock (Lubbock Power &. Light) and Southwestern Public Service Company; and, in a small area, South
Plains Electric Co-operative.
Economic Indices (1)
Year
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
Building
Permits
$ 168,740,229
139,317,252
100,046,309
105,159,525
105,363,072
140,855,719
131,333,756
142,921,124
174,346,368
162,427,737
(1) All data as of 12-31; Source: City of Lubbock.
Water
60,051
60,751
61,027
61,628
61,857
62,178
62,267
62,898
63,006
64,921
Utility Connections
Gas
56,600
56,900.
57,266
57,886
60,312
61,700
60,803
60,208
61,448
62,670
Electric
t'LP&.L Onlyf>
40,506
41,759
42,696
43,781
44,518
45,301
46,245
47,194
48,526
49,391
(2) Electric connections are those of City of Lubbock owned Lubbock Power and Light ("LP&.L ") and do not include those of
Southwestern Public Service Company or South Plains Electric Cooperative.
A-5
Building Permits by Classif'~eation
Residential Permits Commercial,
Single Famil~ Multi-Famil~ Total Residential Public Total
Calendar No. No. Dwelling No. Dwelling and Other Building
Year Units Value Units <1) Value Units <1) Value Permits Permits
1985 601 50,100,350 162 5,250,300 763 55,350,650 113,389,579 168,740,229
1986 599 49,329,236 14 566,000 613 49,895,236 89,422,016 139,317,252
1987 508 44,466,937 -0--0-508 44,466,937 . 55,579,372 100,046,309
1988 414 35,588,945 -0--0-414 35,588,945 69,570,580 105,159,525
1989 368 31,345,375 12 440,800 380 31,786,175 73,576,897 105,363,072 ,,
> 1990 368 35,652,140 8 416,000 376 36,068,140 104,787,5.79 140,855,719
(11
1991 424 38,574,190 -0--0-424 38,574,190 92,759,566 131,333,756
1992 603 58,530,190 44(2:) 1,743,000 647 60,273,190 82,647,934 142,921,124
1993 673 72,894,295 58 2,313,197 . 731 75,207,492 99,138,876 174,346,368
1994 686 73,318,480 260 6,271,150 946 79,589,630 82,838,107 162,427,737
(1) Data shown under "No. Dwelling Units" is for each individual dwelling unit, and is not for separate buildings; includes duplex, triplex, quadruplex and
apartment permits.
(2) Includes one retirement center with 40 dwelling units.
Source: City of Lubbock, Texas.
) ) ) ) ) ) ) )
The following information concerning the Waterworks System, the Sewer System, the Solid Waste Disposal System, the
Electric Light and Power System and the Airport b for general information only.
THE WATERWORKS SYSTEM
Water Supply • . • Currently, the primary source of water for Lubbock is the Canadian River Municipal Water Authority
("CRMW A") which delivers raw water from its Lake Meredith reservoir, located on the Canadian River about 50 miles north.
of Amarillo, to member cities through an underground aqueduct system. Lubbock is one of eleven member cities of CRMW A;
other members are Amarillo, Pampa, Borger, Plainview, Slaton, Levelland, Brownfield, Tahoka, O'Donnell and Lamesa.
Lubbock received 30,566 acre feet of water from CRMW A in Calendar Year 1994, approximately 72.4% of the City's total
consumption. This percentage of CRMWA water is down substantially from the average of 85% due to high water consumption
resulting from above-average temperature and below-average rainfall. Cost of the project is being repaid to the Bureau of
Reclamation by CRMWA through a reimbursable loan maturing annually through Z018; debt requirements are paid from
revenues received by CRMW A from sale of water to member cities. Member cities make payments for water received from
revenues derived from operation of their respective waterworks systems.
Other Water Supply Sources .•. On average approximately 15% of the City's water supply is obtained from 238 potable water
wells, all producing from the Ogallala Aquifer, which underlies the High Plains of Texas. Combined capacity of these wells
is over 45 million gallons per day ("mgd"). Primary wells are located in the "Sand Hills" area about 60 miles northwest of
Lubbock in Lamb and Bailey Counties in which the City owns approximately 79,402 acres of water rights. These ground water
sources are used primarily for peaking purposes.
Lake Alan Henry •.. The Brazos River Authority ("BRA") on behalf of the City of Lubbock (the "City") has constructed a
dam and reservoir on the South Fork of the Double Mountain Fork of the Brazos River ("Lake Alan Henry") about 60 miles ·
southeast of Lubbock to enhance provision for long term water supply needs. The U.S. Corps of Engineers has granted a permit
for impoundment at the reservoir site.
Future population and water demand estimates for Lubbock, projected by the Texas Water Development Board ("TWDB"),
indicate that Lubbock's water use in high-use years is expected to increase to over 50 .mgd by 2040 assuming low population
growth. Although historical population increases have not been as great as the TWDB population estimates, increased population
and decreasing water supplies have required the City to pursue new sources of supply.
The City contracted with BRA under a Construction and Management Agreement (the "Contract") to construct the dam and water
supply reservoir at the Lake Alan Henry site (the "Project") and construction was completed in 1993. Total construction cost
was approximately $54,639,000 and BRA issued $56,655,000 Special Facilities (Lake Alan Henry) Revenue Bonds to provide
funds for construction and establishment of reserve and repair and replacement funds. The Special Facilities Bonds are payable
from net revenues derived from the operation and ownership of Lake Alan Henry, principally from payments to be made under
the Contract to BRA by the City.
Under the Contract the City will buy and pay for the entire amount of water which can be supplied by the Project whether used
or not. Payments to BRA during each Fiscal Year (beginning October 1 .00 ending September 30) shall equal the sum of:
(1) Capital costs (debt service) payable during such Fiscal Year; plus
(ii) Maintenance and Operation Costs as adjusted, which, by the Authority's estimates made prior to the beginning of such
Fiscal Year, will be incurred during such Fiscal Year; plus
(iii) Management Fees for such Fiscal Year.
Payments under the Contract for purposes of the Official Statement are calculated as operating expenses of the City's
Waterworks System, payable from gross revenues of the Waterworks System.
A -7
The claims of royalty and mineral owners of the land area covered by the Project have not been resolved and are in various
stages of condemnation and litigation. The dam gates cimnot be closed until these matters are resolved. It is the opinion of BRA
Counsel that, in a worst case scenario, final resolution could increase costs of the Project by 15% to '20%, approximately
$8,000,000 to $11,000,000. When the amount of these claims has been definitively ascertained the City and BRA will address
the various options available to conclude the Projeet;inChiding the option for BRA to issue additional Special Facilities Revenue
Bonds.
When the gates are closed it is estiniated that two to six years will be required for the reservoir to fill, based on average runoff
conditions. At conservation storage the reservoir will contain 115,937 acre feet of water; mean depth at conservation storage
will be approximately 40 feet; maximum depth will be approximately 100 feet near the dam. · The contributing drainage area
is an estimated 394 square miles.
Additional facilities, ·which may be financed by the City direcdy or by BRA as additional Special Facility Revenue Bonds, will
be required to transport and treat the water· from Lake Alan Henry; such facilities are not included in the estimated construction
costs shown above and are not scheduled for construction until well into the next century.
North Panhandle Ground Water Project. In January, 1995, the City Council agreed to participate in a ground water project
proposed by CRMW A:· (Approval is contingent upon proper legal assurances that water could be exported from the area.) This
project involves the acquisition of water rights in Roberts County, located in the Texas Panhandle approximately 75 miles
northeast of Amarillo, and the construction of wells and pipelines to transport ground water for blending with surface water from
Lake Meredith for delivery to member cities. Lubbock's share of this $76,500,000 project will be approximately $28,800,000,
based on Lubbock's allocated share of the surface water from Lake Meredith.
This project would enhance the quantity and .quality of water Lubbdck would receive from CRMW A. The project would serve
to increase the amount of water supplied by CRMW A by 25%; or 2,500,000,000 gallons per year. Ultimately, Lubbock. could
anticipate receiving almost 12.5 billion gallons per year from CRMWA, ·or an amount comparable to its average total yearly
demand. This increased water allocation would serve to conserve the underground water in the City's well field in Bailey
County.
This project will also resUlt in enhanced water quality. The surface water from.Lake Meredith currently meets the state's
primary drinking water standards only. The blending of ground water would enable the water to also meet the Texas secondary
(aesthetic) standards as well. Also, this project would serve to postpone the time that water from Lake Alan Henry would be
needed to meet Lubbock's water supply needs.
Storage capacity includes a 1,200 acre-foot open storage reservoir for CRMWA raw water and 8.0 million gallons clearwell
stOrage .for treated water at the water treatment plant. In addition, 14 ground storage reservoirs and 3 elevated steel storage
tanks provide storage capacity of 61.35 million gallons, entirely adequate for peak hour and fire protection requirements.
The System ••• Lubbock's Waterworks System is modern and efficient; property, plant and equipment are valued at
$143,694,397, after depreciation and including cost of construction work in progress, at September 30, 1994. 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. Present pumping capacity is 106 million gallons
per day.
Water Consumption
Calendar
Year
1990
1991
1992
1993
1994
Average
Daily
Consumption
(mgd)*
36.408
33.674
31.219
34.688
37.843
Maximum
Consumption
Day/Year
(mgd)*
79.003
67.377
55.503
58.347
76.319
* The City has water sales contracts for the sale of treated water to Reese Air Force Base~ the Town of Lake Ransom Canyon
and Lubbock County Water Control and Improvement District No. 1 (Buffalo Springs Lake); deliveries to these entities,
averaging 0.849 mgd in 1993, are included in the above calculations.
A-8
Water Treatment Facilities • . • The water treatment plant for the treatment of raw water received from CRMW A has a
maximum hydraulic capacity of 75 mgd. The plant has a 1,200 acre-feet open storage reservoir which permits storage of raw
water during "off-peak" periods and 8.0 million gallons clearwell storage for treated water. The plant has been upgraded and
improved with the objectives of (1) enabling the plant to comply with the Safe Drinking Water Act of 1986 and (2) upgrading
for safety, maintenance and repajr.
The plant also treats CRMW A raw water for the Cities of Brownfield, Lamesa, Levelland, O'Donnell, Slaton and Tahoka prior
to CRMW A delivery to those cities. Under contractual agreements with these cities, Lubbock is fully reimbursed for all costs
of this treatment including capital costs and debt service; total percentage of participation in treatment plant costs by these cities
is 20.34%. ln Fiscal Year Ended 9-30-94 deliveries from the plant totaled 13,012,870,000 gallons of which 11,053,158,000
gallons was for Lubbock and 1,959,712,000 was delivered to the other participating cities.
Lubbock's ground water supply does not require treatment (other than the addition of chlorine).
Condensed Statement of Operations -Waterworks System
Fiscal Year Ended SEmber 30,
Budget
1995 1994 1993 1992 1991 1990
Operating Revenues $26,109,782 $27,979,503 $23,928,081 $20,765,507 $21,821,722 $19,668,087
Non-Operating
Revenues 703,231 1,344,153 1,915,182 4,180,138 4,050,163 1,880,945
Gross Revenues $26,813,013 $29,323,656 $25,843,263 $24,945,645 $25,871,885 $21,549,032
Operating Expense1l 17,182,561 16,508,910 15,948,387 15,954,609 14,592,700 11,310,532
Net Revenues $ 9,630,452 $12,814,746 $9,894,876 $ 8,991,036 $11.279,185 $10,238,500
Water Meters N.A. 63,923 63,593 62,898 62,262 62,119
(1) Operating expense includes all payments to CRMW A and BRA and excludes depreciation and capital expenditures.
Note: The City has no outstanding or authorized Waterworks System Revenue Bonds, however, there is $27,333;157 general
obligation debt outstanding which was issued for Waterworks System purposes on which annual debt service is provided from
net revenues of the System.
[t is the City's policy and intention to maintain rates and charges for water service that will provide net revenues of the System
that will fuUy provide for debt service on general obligation debt issued for Waterworks System purposes over the life of present
System general obligation debt and any additional Waterworks System general obligation debt issued in the future.
A-9
Water Rates (Monthly)
Base Rate <2J
3/4" meter
1 • meter (single family res.)
1" (other than res.)
'1,5"
2"
Consumption Rates
(per 1,000 gallons):
Single Family Residence
Multiple Family
Commercial <3l
Schools <4>
Sprinkler
Reese AFB
Previous Rates
(Effective 10-1-93)
$7,68
9.78
16.39
30.89
48.42
$1.41/M
1.19/M
1.29/M
1.33/M
1.76iM
1.191M
Present Rates (I)
(Effective 10-1-94)
$ 8.06
10.26
17.21
32.44
50.84
$1.48/M
1.25/M
1.36/M
1.40/M
1.85/M
l.251M
(1) The City is considering a staged increase in water rates, beginning 10-1-95, to accommodate financing for the .above
mentioned North Panhandle Ground Water Project.
(2) The Base Rate is for water service; Base Rates shown are for a 3/4" to 2" meters; higher Base Rates apply to larger meters
ranging from J« to 10".
(3) Rates for the Town of Lake Ransom Canyon and Lubbock Control and Improvement District No. 1 are 81.17% of the
commercial rate plus proportionate costs of applicable capital improvements.
(4) Includes public schools, Texas Tech University and Lubbock Christian University.
Note: A "Rate Stabilization Fund" within the Water Enterprise Fund is accumulated from Waterworks System net revenues;
at 9-30-94 the balance in the rate stabilization account was $3,553,504.
A· 10
,...
THE SEWER SYSTEM
The Sewer System is operated as a separate enterprise fund and is not combined with the Waterworks System.
The Collection System ••• The sanitary sewage collection system, handled separately from the storm drainage system, includes
approximately 777 miles of trunk mains and collection tiDes with trunk mains installed for future expansion of the collection
system.
Water Reclamation Facilities ..• Treatment facilities consist of the Southeast Plant, with an average daily flow design capacity
of 26 million gallons and the Northwest Plant, with an average daily flow design capacity of 0. 75 million gallons. The Southeast
Plant uses two processes for treatment; biotower filter and activated sludge. The Northwest Plant uses the contact stabilization
process for sewage treatment. Upgrading and expansion of the Southeast Plant, which will permit the City to consistently
comply with requirements of the Texas Natural Resource Conservation Commission ("TNRCC") for wastewater treatment and
effluent disposal by irrigation of land--application sites, is in progress.
Wastewater Flows ..•
Calendar
Year
1990
1991
1992
1993
1994
Northwest
Plant
(mgd)
0.415
0.367
0.321
0.297
0.308
Southeast
Water
Reclamation
Plant
(mgd)
18.55
18.65
19.03
20.79
20.34
Effluent Disposal .•• Treated effluent is used for beneficial putposes; no effluent is presently discharged into streams. Treated
effluent from the Northwest Plant is used to irrigate approximately 1,050 acres of farm land at Texas Tech University for
agricultural research. Treated effluent from the Southeast Plant is used to irrigate two land-application sites:
(1) A site located adjacent to the City on the southeast, consisting of 5,997 acres owned by the City, currently being
upgraded; storage capacity for effluent pending use for irrigation is 412 million gallons.
(2) A 3,400 acre privately owned farmland site near Wilson, Texas, approximately 15 miles southeast of Lubbock. There
is storage capacity of 780 million gallons at this site for effluent pending its use for irrigation.
Southwestern Public Service Company has a contract with the City to use treated effluent from the Southeast Plant for cooliug
purposes in Southwestern Public Service Company's 512,000 kilowatt electric generating plant near Lubbock when the plant
is in use.
Wastewater Treatment and Disoosal lmDrovement and Expansion Project • • • Construction is nearing completion on a
comprehensive wastewater treatment and effluent disposal program to upgrade and expand the Southeast Water Reclamation
Plant, the City's major wastewater treatment facility. This program enables the Plant to consistently comply with TNRCC and
United States Environmental Protection Agency permit requirements and provide treatment capacity to the design year 2010.
The Project was funded through loans totaling $50,600,000 from the Texas Water Development Board's State Water Pollution
Control Revolving Fund ("SRF").
Effluent will continue to be disposed of through an enhanced land application system with alternative effluent discharges of up
to 9.0 mgd to the North Fork Double Mountain Fork, Brazos River, ("NFDMF Brazos River") below Lake Ransom Canyon.
A-11
Condensed Statement of Operations -Sewer System
Fiscal Year Ending Seotember 30,
Budget
1995 1994· ' 1993 1992 1991 1990
Operating Revenues $12,749,520 $13,037,157 $11,226;109 $10,275,402 $9,696,057 $9,571,277
Non-Operating
Revenues 389,859 1,345,757 1,432,251 875,072 720,169 763,549
Gross Revenues $13,139,379 $14,382,914 $12,658,360 $11;150,474 $10,416,226. $10,334,826
Operating Expense <1l 6,207.578 4,942,491 4,848,593 4,716,171 4,137,603 4,054,261
Net Revenues $ 6,931,801 $9,440,423 $7,809,767 $6,434,303 $ 6,278;623 $ 6,280,565
Sewer Customers N.A. 63,923 63,593 62,898 62,262 62,119
(Estimated)
(1) Operating Expense excludes depreciation and capital expenditures.
Note: The City has no outstanding or authorized Sewer System Revenue Bonds; however, there is $59,773,539 general obligation
debt outstanding which was issued for Sewer System purposes on which annual debt service is provided from net revenues of
the System. ' · ·
It is the City's policy and intention to maintain rates and charges for sewer serVice that will provide net revenues of the System
that will fully provide for debt service on general obligation debt issued for Sewer System purposes over the life of present
System general obligation and any additional Sewer System general obligation debt issued in the future.
Sewer Rates (Monthly)
Previous Rates Present Rates Future Rates
· (Effective 10-1-93} (Effective 10-1-94} (Effective 10-1-95}
Residential
Base Rate <1l $ 2.74 $ 2.93 $ 3.14
Flow Rate (Water Consumption)* 1.16/M gallons .1.24/M gallons 1.33/M gallons
Maximum Monthly Charge $18.98 .(14,000 gallons) $27.73 (20,000 gallons) $36.39 (25,000 gallons)
"' Based on average monthly water consumption for the months of low irrigation usage (typically the previous
December-February).
Commercial/Industrial (2)
Base Rate <IJ
Flow Rate (Water Consumption)
$2.74
1.16/M gallons
$ 2.93 $ 3.14
1.24/M gallons 1.33/M gallons
(1) The Base Rate is for sewer service; Base Rates shown are for a 3/4" water meter; higher Base Rates apply to larger meters
ranging from 1" to 10".
(2) Industrial waste that exceeds allowable limits is subject to surcharge for treating biochemical oxygen demand ("B.O.D. ")
and total suspended solids (l'.S.S.). Present surcharge rates are B.O.D. $0.0786/lb. and T.S.S $0.0482/lb.
Note: A "Rate Stabilization Fund" within the Sewer Enterprise Fund is accumulated for Sewer System net revenues; at 9-30-94
the balance in the rate stabilization account was $5,396,091.
A-12
THE SOLID WASTE DISPOSAL SYSTEM
The Solid Waste Disposal System, operated by the City's Solid Waste Management Department of the City of Lubbock, handles
collection and disposal of both residential and commercial garbage in the City. The residential collection system services
approximately 20,000 containers and 54,000.accounts. Service is provided twice weekly. Residential collection is provided
through three cubic yard metal containers serviced in alleys by 30 AND 33-yard packer, sideloading trucks on 38 separate
routes.
Collection for approximately 545 commercial accounts is provided through two yard to eight yard metal containers picked up
by 32-yard automated frontloading units, and collection for approximately 1,000 accounts is provided by the same type .container
and pickup equipment as residential customers. Basic service is collection twice weekly with additional service available at an
extra charge. The commercial portion of the system provides collection for approximately 25% of the commercial solid waste
market in the City, with the remainder serviced by private contracts.
System customers may deliver covered loads to the City's Landfill at no additional cost.
Recycling Operations . • • The City has expanded its residential recycling operations City-wide effective February, 1993. The
City dispatches recycling collection trucks to collect blue bags which have been filled with recyclable commodities. During
Fiscal Year 1993/1994 the waste stream was decreased by 11% as a result of the City's recycling program. This program will
supplement other recycling programs that the City currently operstes: Oil Recycling, Wood-Brush Recycling, Don't Bag It
Program, Christmas Tree Recycling, and others. A Household Hazardous Waste Program is in the planning stages.
Landfill and Disposal Operations . . • ,The City operstes a Type 1 Landfill (fexas Department of Health permit #69) on a 320-
acre site. The facility receives approximately 322,696 tons of solid waste annually, and has a remaining life of approximately
five to seven years. Refuse is deposited into cells of approximately five acres each, compacted, and covered with six inches
of intermediate soil cover. Once a cell reaches maximum height, final cover is applied and the area is monitored by a series
of wells and visual inspections.
The City is in the process of initiating an application to the TNRCC for a permit for a new 1,200 acre landfill site. .The new
permit would include all new and proposed landfill regulations.
The landfill currently operates as a defacto regional landfill; the City is negotiating interlocal landfill use agreements with
approximately 30 area communities. These agreements would include payment of a tipping fee plus collection of an additional
$2.00 per ton surcharge. Purpose of the surcharge would be to create a cleanup fund in the event future cleanup of site was
required, or the fund could be used for future landfill facilities.
Present Landfill Program . • •
1. Closure of 144 acres of the existing landfill site that is near closure stage. Closure will be performed in accordance with
TNRCC Municipal Solid Waste Management regulations.
2. Install liner, as required by TNRCC regulations, in Landfill Cells IVB 2, 3 and 4.
3. Acquire a compactor and service truck.
A-13
Condensed Statement of Operations-Solid 'Yaste Disposal System
Fiscal Year Ending S!!!tember 30,
Budget
1995 1994 1993 9-30-92 9-30-91 9-30-90
Operating Revenues $11,586,176 $10,772,887 $8,916,813 $7,153,729 $6,340,137 $5,630,037
Non-Operating Revenues · 388,409 353,748 327,073 240,268 361,452 . 158,154
Gross Revenues $11,974,585 $11,126,635 $9,243,886 $7,393,997 $6,701,589 $5,788,191
Operating Expense<1> 6,481,897 6.185,659 5.060,856 5,352,566 4,949,622 4,340,042
Net Revenues ~51492!688 ~1940,976 ~4,183,030 ~2,041,431 ~1,75i,967 ~1,448,149
Number Residential
Customers N.A. 55,458 54,919 55,000 51,999 51,568
Number Commercial
·customers N.A. 3,715 1,675 1,337 1,337 1,322
(1) Operating Expense excludes depreciation and capital expenditures. . .
Note: The City has no outstanding or authorized Solid Waste Disposal System Revenue Bonds, however, there is $2,987,041
general obligation debt outstanding which was issued for Solid Waste Disposal System purposes on which annual debt service
is provided from revenues of f:he System.
It is the City's policy and intention to maintain rates and charges for Solid Waste Disposal System service that will provide net
revenues of the System that will fully provide for debt service on general obligation debt issued for Solid Waste Disposal System
purposes over the life of present System general obligation debt and any additional Solid Waste Disposal System general
obligation debt issued in the future.
Solid Waste Collection Rates
Residential <Monthly)
(Effective. 1 0-1-92)
3 yard container typically shared by
households with twice a week
service $11.00
Small Commercial, Churches, Professional Offices, Nursing Homes and Other InterestS Generating
Less Than 20 Cubic Feet Per Pickup (Monthly)
(Effective 1 0-1-92)
twice a week service
Commercial (Monthly)
(Effective 1 0-1-85)
2 yard container with twice a week service
3 yard container with twice a week service
4 yard container with twice a week service
6 yard container with twice a week service
8 yard container with twice a week service
Extra pickups for commercial
Landfill Fees
(Effective 5-1-94)
$11.00
$24.00
$36.00
$48.00
$72.00
$96.00
$ 1.50 per yard per pickup
All landfill charges are made on a per ton basis only; the rate is $18.00 per ton.
A-14
.-
LUBBOCK POWER &. LIGHT
Lubbock Power and Light ("LP&L") 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. LP&L and Southwestern Public Service Company ("Southwestern"), a ·
privately owned utility company operating within the corporate limits of the City, each provide electric service to residents and
businesses of the City. Essentially all of the City is covered by both systems, each of which has parallel lines throughout the
City; one small area is served exclusively by South Plains Electric Cooperative and one small area is served exclusively by
LP&L. AB of September, 1994, LP&L Served 58.3% of all connections.
Southwestern was granted a new 2Q..year franchise in 1982. The company pays the City a franchise tax of 3% of its gross
receipts which is deposited into the City's General Fund;· LP&L makes an equivalent payment in lieu of taxes to the General
Fund of the City. As of September, 1994, Southwestern supplies power to approximately 41.7% of the customers in Lubbock.
LP&L generates part of its power requirements through the use of three generating stations located within the City. These plants
are geographically separated and deliver bulk power to substations· through a 69 kilovolt (kV) transmission loop system.
LP&L currently contracts for the purchase of 40 megawatts (MW) of power from Southwestern; power is delivered via two
interconnections, each capable of delivering up to 100 MW to LP&L.
Generating Stations . . . The total generating capacity of LP&L is 220,500 kW. Gas turbine generators provide the system with
52,500 kW of ready reserve and quick-start generation for emergency and peaking serVice. A new high efficiency gas turbine
at Texas Tech University (E.Z. Brandon Statio~) is base loaded. Generating units consist of the following:
Generator
Year Capacity
Manufacturer Installed Station Prime Mover Fuel inkW
Nordberg 1946 2* Diesel Dual Fuel 2,500
Nordberg 1947 2* Diesel Dual Fuel 2,500
Westinghouse 1952 2* Steam Turbine Gas or Oil 11,500
Westinghouse 1953 2* Steam Turbine Gas or Oil 11,500
Westinghouse 1958 2* Steam Turbine Gas or Oil 22,000
Westinghouse 1964 Holly Gas Turbine Gas or Oil 12,500
General Electric 1965 Holly Steam Turbine Gas or Oil 44,000
Worthington 1971 Holly Gas Turbine Gas or Oil 18,000
General Electric 1974 Holly Gas Turbine Gas or Oil 22,000
General Electric 1978 Holly Steam Turbine Gas or Oil 54,000
General Electric 1990 E.Z. Brandon Gas Turbine** Gas or Oil 20,000
220,500
* Since the completion of the second interconnection with Southwestern Public Service, Station No. 2 has been kept on standby
and is used for peak and emergency power purposes.
**High efficiency, cogeneration plant located at Texas Tech University; waste heat is used to produce steam which is sold to
the University.
Interconnection . . . An interconnection with Southwestern . was completed and LP&L commenced buying power from
Southwestern in December, 1981. In April, 1986, a second interconnection with Southwestern was energized; each
interconnection is capable of providing up to 100 MW to LP&L.
Purchased Power •.• LP&L's contract with Southwestern extends to December 31, 2004, with year to year extensions thereafter
subject to five years notice of termination by either party. The contract provides for "firm power", "emergency energy• and
"non-firm" energy; non-firm energy purchases by LP&L are made on an economic dispatch basis and are subject to
Southwestern's sole discretion to make such sales. Southwestern is the only interconnection to LP&L's system; the City must
give two years notice of intention to take power from another supplier. LP&L has notified Southwestern of its intent to seek
additional sources of power supply starting January 1, 1997. The City specifies its firm power requirements five years in
advance subject to adjustment by plus or minus 30% at least one year in advance. LP&L has designated 40 MW for 1995, 35
MW for 1996, 40 MW for 1997, 1998 and 1999. Southwestern will make such firm power and energy available to LP&L as
specified, provided it has sufficient capacity in its existing facilities for any requested increase. Southwestern 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.
A-15
Fuel Supply •.• Present primary fuel supply for LP&L's genet;ating system is natural gas, which is supplied by Hadson Gas
Company, Hadson Gas Marketing Company and Davis Gas Processing, Inc.; LP&L has other alternative gas supplies including
in-ground reserves owned by LP&L. These major gas suppliers are under long tenn contracts which provide LP&L with
maximum flexibility in securing the lowest cost energy at all times.
Transmission and Distribution ••. A 69,000 volt (69 kV) transmission loop system, 73.89 miles in length, provides bulk power
to eleven 69,000/12470 bulk substations with a combined base capacity of351 megavolt amps (MVA). With all cooling systems
in operation, these substations could provide up to 532 MV A. Of the above 69kV transmission lines, 27.41 miles have been
constructed for operation at 115 kV. When system load dictates, these lines will be energized to 115kV and provide an
additional 250% of transmission capacity due to the increased voltage. LP&L also has two interconnections with Southwestern
Public Service which can provide up to 200 MV A of additional power; these interconnections are tied to LP&L through 4.35
miles of 230 kV transmission lines.
The distribution system includes approximately 662.67 miles of overhead distribution lines and approxiniately 216.43 mil~s of
underground distribution lines. There are three.12,470/4160 volt substations in the distribution system. Net system load for
Fiscal Year Ended September 30, 1994, was 1,046,666,402 kilowatt hours (kWh) with a peak demand of 255,000 kW.
Continuing Transmission and Distribution System Improvement Program •.. A transmission and distribution system construction
and improvement program using internally generated funds is in progress.
Recent Substation Construction and Facilities Relocation Program
(1) A "South Substation" to meet expected load growth in south and southwest Lubbock and expected load growth
along the 1-27 corridor was constructed in 1992; this substation will also prevent future voltage problems in this region;
the substation consists of two 15120/25 MVA transfonners with all required substation facilities, 69 kV transmission
line extensions and 12.5 kV distribution feeder lines.
(2) East/West Freeway Clearing ••. The State'.s construction plans for an east/west freeway across Lubbock require
that a major 69 kV transmission line along with numerous distribution lines located on or along existing public streets
and alleys be relocated.
(3) LP&L is presently renovating four generating units within its station no. 2. This project, when completed in 1995,
will add approximately 38.5 MW of usable generation to the LP&L system. The estimated cost of this project is
$3,700,000 which is being financed with available LP&L funds.
Condensed Statement of Operations -Electric Light and Power System
Fiscal Year Ending S~mtember 30,
Budget
1995 1994 1993 1992 1991
Operating Revenues $ 53,461,289 $ 54,529,457 $ 52,949,180 $ 50, 196,280 $49,142,119
Non-Operating Income 870,018 3,070,263 3,894,520 4,081,025 3,247,106
Gross Revenues $ 54,331,307 $ 57,599,720 $ 56,843 '700 $ 54,277,305 $52,389,225
Operating Expense <ll 40,358,730 41,725,274 39,574,526 33,900,204 33,225.153
Net Revenues $ 13,972,577 $ 15,874,446 $ 17.269,174 $ 20,377,101 $19,164,072
Electric Connections N.A. 48,630 47,973 47,194 46,014
(1) Operating Expense excludes depreciation and capital expenditures.
Maximum Principal and Interest Requirements, Electric System Revenue Bonds,
Fiscal Year Ending 9-30-95 •••...•.•••.••..••..• , .••...•••.•.•••.••••.•••..•.•
Coverage by Net Revenues, Fiscal Year Ended 9-30-94 •••••••••.•.•••••.•• : •..••....••.•
Electric Light and Power System Revenue Bonds Outstanding 9-30-94 •..•.•.•••.••.•.••..•...
Interest and Sinking Fund, 9-30-94 ••....•...•.••.•••.•...••.•...•..••.•..•..••••.
Reserve Fund, 9-30-94 .••••.••.•••••.••••..••.••...••.••...•.•••..••..••..••
A-16
1990
$49,271,634
2,926,158
$52,197,792
33,730,001
$18,467,791
45,114
. $ 5,716,845
2.78 Times
$31,664,965
$ 6,617,904
$ 3,413,183
,...
,...
,..I
Electric Rates
Electric rates in the City are set by City Council Prdinance and are the same for LP&L. and Southwestern except for church,
school and municipal rates, and minor variations in billing policies, <d Sooth Plains Electric ·Cooperative customers.· Present
rates became effective October 15, 1993.
Selected Electric Rates (Effective 10-15-93}
Residential
Service Availability Charge
All kWh per month @ 4.00¢ per kWh used during summer months
All kWh per month @ 3.60¢ per kWh used during winter months
Summer Months: June -September
Winter Months: October -May ·
Plus: Fuel Cost Recovery <1>
Service Availability Charge:
First 1,000 kWh per month
Next 6,000 kWh per month
All additional kWh per month
General Service
$ 4.65 per month
$10.00 per month
5.10¢ per kWh*(Summer)
4.60¢ per kWlt*(Wmter)
2.Soe per kWh
1.03¢ per kWh
* Add to th.e first 200 kWh for ever:y kW of demand in excess of 10 kWs. Demand: Measured as the
customers kW demand for the 30-minute period of greatest use during the month. ·
Plus: Fuel Cost Recovery. O>
Minimum Charge: $10.00 per month for demand of 10 kWor less, plus $3.50 per kW for next 1S kW
above 10 kW, plus $2.30 per kW for all additional kW. No demand shall be taken as less than 50%
of highest demand established in 12 months ending with current month.
(1) Fuel Cost Recover:y:
The charge per kilowatt hour shall be increased by a fuel factor per kilowatt hour as provided in current
Southwestern Public Service Tariff7100 (Public Utility Commission of Texas sheet N-69). The fuel factor
will remain constant for approximately one year. At this time the fuel factor is $0.020636/kWh. All rates
are subject to fuel cost recovery.
BILLINGS-WATERWORKS, SEWER, SANITATIONAND ELECTRIC
Customers of the City's water, sewer and sanitation systems are billed simultaneously on one statement; if the customer is
connected to LP&L, electric charges are also included. All customers who do not pay their bill within 22 days of the date it
is mailed to them are charged a 5% late payment penalty. If the bill has not been paid on the next billing date, a statement is
mailed showing the past due bill together with the current bill. If the bill remains delinquent 7 days after the date of the second
statement, a reminder/cut-off notice is mailed. The cut-off notice specifies that service will be discontinued in 7 days if payment
in full is not made. At the end of the 7 day period, a field collector calls on the customer and if he is unable to collect payment,
serVice is cut off. The reconnection charge, including electric service if the customer is connected to the City's electric system,
is $15.00 before 5:00PM and $25.00 after S:OO PM and during weekends and holidays.
A-17
THE AIRPORT
The City has owned and operated its airport since 1929, with scheduled airline service beginning in 1946. Lubbock International
Airport is located six miles north of the central business district and has an area of 3,148 acres, of which approximately 1,900
acres is used for farming and clear zones. ·
Scheduled Airline Service •.• Scheduled airline transportation is furnished by Southwest Airlines, American Eagle Air Lines,
Atlantic Southeast Airlines and United Express. Non-stop scheduled service is provided to Dallas-Fort Worth International
Airport, Dallas Love Field, Denver, El Paso, Austin and Albuquerque. 1994 passenger enplanements were 611,495.
Lubbock International Airport Terminal ..• The terminal building contains approximately 222,000 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, air freight tenants, meeting and press rooms, and 9 jetway equipped gates for airline use.
Parking capacity is 1,820, including 140 employees. The former terminal building has been converted to government and
commercial office space and houses a Federal Aviation Administration ("FAA") Plight Standard Distri9t Service Office and
Airways Traffic Sector Field Office.
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 landing
system and other navigational aids;
1 -8,000' x 150', east/west, cross-wind runway, with high intensity lighting and a FAA operated instrument landing
system;
1 -2,800' by 75' general aviation runway;
and a taxiway system connecting the runways with aprons, the terminal and other facilities.
General Aviation Facilities . . . An 8, n9 square foot building on the east side of the airport houses general aviation services,
a National Weather Service office and a U.S. Customs office. General aviation services are also available from tWo west-side
located major fixed base operators who provide hangars, aprons, fuel sales and other services for private aviation. 100 T-
Hangars house most of the approximately 200 private aircraft that are based at the airport. Current construction includes paving
of emergency access roads and reconstruction of the general aviation runway. Proceeds from the sale of $900,000 Tax and
Airport Surplus Revenue Certificates of Obligation being offered for sale on May 11, 1995, will be used to extend the
commercial ramp at the Air Cargo Complex.
Warehouse, Hangar and Land Rentals •.. J'he airport has five 16,000 square foot warehouses and six other warehouses for
storage space rental.
Industrial • • . Two steel companies, two research companies and a manufacturing company are located at the airport.
Condensed Statement or Operations -Airport
Fiscal Year Ending Seotember 30,
Budget
1995 1994 1993 1992 1991 1990
Operating Revenues $4,626,900 $4,134,455 $ 4,527,898 $ 4,130,467 $ 4,064,1n $ 3,810,316
Non-Operating Revenue 108,243 309,929 133,368 78,098 266,237 208,665
Gross Income $ 4,735,143 $4,444,384 $4,661,266 $4,208,565 $4,330,414 $4,018,981
Operating Expense (I) 3,949,496 3,263,354 3,n8,187 3,462,854 3,618,409 '3,192,614
Net Revenue $ 785,647 ~ 1,181,030 ~ 883,079 ~ 745,711 ~ 712,005 ~ 826,367
(1) Operating Expense excludes depreciation and capital expenditures.
Maximum Principal and Interest Requirements, Airport Revenue Bonds,
Fiscal Year Ending 9-30-95 ••••.•.••••..•••.....•••..•••..•..•....• .-• . . • • . . . . . $ 108,900
Coverage by Net Revenue, Fiscat Year Ended 9-30-94 . • . . . . . • • • . . . • • • . . • . . . . . . . • . • . . . . . 10.85 Times
Airport Revenue Bonds Outstanding, 9-30-94 . . . . • • • . . . . • . . . • . . • • . . . . . • • • . . . • . . . • . . . . . $ 360,000
Interest and Sinking Fund, 9-30-94 • • . . • . . . . • • . . • • • • • . . • • • • . • . • • . . . • • • . . . . . . . . . . . . $ 115,453
Reserve Fund, Cash and Investments, 9-30-94 . . . • . • . . • . . . . . . • . . . . • • . . . • • . . . . • . . • . • . . . . $ 300,000
A-18
APPENDIXB
FORM OF BOND COUNSEL'S OPINION -THE BONDS
miS PAGE LEFT INTENTIONALLY BLANK
TELEPHONE: 214/855•8000
f"ACSIMILE: 214/855·8200
FULBRIGHT & .JAWORSKI
LLP.
A REGISTERED LIMITED LIABILITY PARTNERSHIP
2200 ROSS AVENUE
SUITE 2800
DALLAS, TEXAS 75201
HOUsTON
WASHINGTON, D.C.
AUSTIN
SAN ANTONIO
DALLAS
NEW YORK
LOS ANGELES
LONDON
HONG KONG
IN REGARD to the autho:Hzation and issuance of the "City of Lubbock, Texas,
G~neral Obligation Bonds, Series 1995" (the "Bonds"), dated May 15, 1995 (the "Bond
Date"), in the principal amount of $4,690,000, we have examined into the legality and
validity of the issuance thereof by the City of Lubbock, Texas (the "City"), which Bonds
are issuable in fully registered form only, in denominations· of $5,000 or any integral
multiple thereof (within a maturity), have stated maturities of February 15, 1996
through February 15,2015, unless·redeemed prior. to maturity in accordance with the
terms stated on the Bonds, and bear interest on the unpaid principal. amount from the
Bond Date at the rates per annum stated in the ordinance authorizing the issuance of
the Bonds (the "Ordinance"), such interest being payable on February 15 and August 15
in each year, commencing February 15, 1996, to the registered owners thereof shown
on the registration books of the Paying Agent/Registrar on the Record Date (stated on
the face of the Bonds).
WE HAVE SERVED AS BOND COUNSEL for the City solely to pass upon the
legality and validity of the issuance of the Bonds under the Constitution and laws of
the State of Texas, and with respect to the exclusion of the interest on the Bonds from
gross income for federal income tax purposes and none other. We have not been
requested to investigate or verify, and have not independently investigated or verified,
any records, data or other material relating to the financial condition or capabilities of
the City.
OUR EXAMINATIONS into the legality and validity of the Bonds included a
review of the applicable and pertinent provisions of the Constitution and laws of the
State of Texas, a transcript· of certified proceedings of the City relating to the
authorization and issuance of the Bonds, including the Ordinance, customary
certifications and opinions of officials of the City and other pertinent showings, and an
examination of the Bond executed and delivered initially by the City, which we found
to be in due form and properly executed.
BASED ON OUR EXAMINATIONS, IT IS OUR OPINION that the Bonds have
been duly authorized by the City in compliance with the Constitution and laws of the
State of Texas now in force, and the Bonds issued in compliance with the provisions of
the Ordinance are valid, legally binding and enforceable obligations of the City, payable
from the proceeds of an ad valorem tax levied, within the limitations prescribed by law,
upon all taxable property in the City, except to the extent that the enforceability
thereof may be affected by bankruptcy, insolvency, reorganization, moratorium, or other
0240173
Page,.2 of Legal Opinion of Fulbright & Jaworski L.L.P.
Re: $4,690,000 11City of Lubbock, Texas, General Obligation Bonds, Series 1995",
· dated May 15, 1995
similar laws affecting creditors' rights or the exercise of judicial discretion in
accordance with general principles of equity.
IT IS FURTHER OUR OPINION THAT, assuming continuing compliance after
the date hereof by the City with the provisions ofthe Ordinance and in reliance upon
representations and c~rtifications. ofthe City made in a certificate of even date herewith
pertaining to. the use, expenditure, . and investment of the proceeds of the Bonds,
interest on the Bonds for federal income tax purposes (1) .will be excludable from gross
income, as defined in section 61 of the Internal Revenue Code of 1986, as amended to
the date hereof, of the owners thereof pursuant to section 103 of such Code, existing
regulations, published rulings, and court decisions thereunder, and (2) will not be
included in computing the alternative minimum taxable income of individuals or, except
as hereinafter described, corporations. Interest on all tax-exempt obligations, such as ,-..
the Bonds, owned by a corporation will be included in such corporation's adjusted
current earnings for tax years beginning after 1989 for purposes of calculating the
alternative minimum taxable income of such corporations, other than an S corporation,
a qualified mutual fund, a real estate mortgage investment conduit (REMIC), or a real
estate investment trust (REIT). A corporation's alternative minimum taxable income
is the basis on which the alternative minimum tax imposed by section 55 of.the Code
and the environmental tax imposed by section 59A of the Code is computed.
WE EXPRESS NO OPINION with respect to any other federal, state, or local
tax consequences under present law or any proposed legislation resulting from the
receipt or accrual of. interest on, or the acquisition or disposition of, the Bonds.
Ownership of tax-exempt obligations such as the Bonds may result in collateral federal
tax consequences to, among others, financial institutions, life insurance companies,
property and casualty insurance companies, certain foreign corporations doing business
in the United States, S corporations with subchapter C earnings and profits, individual
recipients of Social Security or Railroad Retirement Benefits, and taxpayers who may
be deemed to have incurred or continued indebtedness to purchase or carry, or who
have paid or incurred certain expenses allocable to, tax-exempt obligations.
0240173
APPENDIXC
FORM OF BOND COUNSEL'S OPINION -THE CERTIFICATES
THIS PAGE LEFI' INTENTIONALLY BLANK
TELEPHONE: 214/855·8000
FACSIMILE: 214/855·8200
FULBRIGHT & JAWORSKI
LLP.
A REGISTERED LIMITED LIABILITY PARTNERSHIP
2200 ROSS AVENUE ..
SUITE 2800
DALLAS, TEXAS 75201
HOUSTON
WASHINGTON, O.C.
AUSTIN
SAN ANTONIO
DALLAS
NEW YORK
LOS ANGELES
LONDON
HONG KONG
IN REGARD to the authorization and issuance of the "City of Lubbock, Texas,
Tax and Hotel Occupancy Tax Surplus Revenue Certificates of Obligation, Series 1995"
(the "Certificates"), dated May 15, 1995 (the "Certificate Date"), in the principal amount
of $2,000,000, we have examined into the legality and validity of the issuance thereof
by the City of Lubbock, Texas (the "City"), which Certificates. are issuable in. fully
registered form only, in denominations of $5,000, or any integral multiple th~reof
(within a maturity), have stated maturities of February 15, 1996 through Februaiy 15,
2001, and bear interest on the unpaid principal amount from the Certificate Date at the
rates per annum set forth in the ordinance authorizing the issuance of the Certificates
(the "Ordinance"), such interest being payable on February 15 and August 15 in each
year, commencing February 15, 1996, to the registered owners thereof shown on the
registration books of the Paying Agent/Registrar on the Record Date (stated on the face
of the Certificates).
WE HAVE SERVED AS BOND COUNSEL for the City solely to pass upon the
legality and validity of the issuance of the Certificates under the Constitution and laws
of the State of Texas, and with respect to the exclusion of the interest on the
Certificates from gross income for federal income tax purposes and none other. We
have not been requested to investigate or verify, and have not independently
investigated or verified, any records, data, or other material relating to the fmancial
condition or capabilities of the City.
OUR EXAMINATIONS into the legality and validity of the Certificates included
a review of the applicable and pertinent provisions of the Constitution and laws of the
State of Texas, a transcript of certified proceedings of the City relating to the
authorization and issuance of the Certificates, including the Ordinance, customary
certifications and opinions of officials of the City and other pertinent showings, and an
examination of the Certificate executed and delivered initially by the City, which we
found to be in due form and properly executed.
BASED ON OUR EXAMINATIONS, IT IS OUR OPINION that the Certificates
have been duly authorized by the City in compliance with the Constitution and laws of
the State of Texas now in force, and the Certificates issued in compliance with the
provisions of the Ordinance are valid, legally binding and enforceable obligations of the
City, payable from an ad valorem tax levied, within the limitations prescribed by law,
upon all taxable property within the limits of the City, and are additionally payable from
and equally and ratably secured by a lien on and pledge of the Pledged Hotel Tax
Receipts (as defined in the Ordinance), except to the extent that the enforceability of the
0240181
Page 2 of Legal Opinion· of Fulbright & Jaworski L.L.P:
RE: $2,000,000 "City of Lubbock, Texas, Tax and Hotel Occupancy Tax Surplus
·Revenue Certificates· of Obligation, Series 1995
Certificates and the provisions made for payment thereof may be affected by bankruptcy,
insolvency, reorganization, moratorium, or other similar laws affecting creditors' rights
or the exercise of judicial discretion in accordance with the general principles of equity.
IT IS FURTHER OUR OPINION THAT, assuming continuing compliance after
the date hereof by the City with the provisions. of the Ordinance and in reliance upon
representations and certifications of the City made in a certificate of even date herewith
pertaining to the use, expenditure, and investment of the proceeds of the Certificates,
interest on the Certificates for federal income tax purposes (1) will be excludable from
the gross income, as defined in section 61 of the Internal Revenue Code of 1986, a·s
amended to the date hereof, of the owners thereof pursuant to section 103 of such Code,
existing regulations, published rulings, and court decisions thereunder, and (2) will not
be included in computing the alternative minimum taxable income of individuals or,
except as hereinafter described, corporations. Interest on all tax-exempt obligations, such
as the Certificates, owned by a corporation will be included in such corporation's
adjusted current earnings for tax years beginning after 1989 for purposes of calculating
the . alternative minimum taxable income of such corporations, other than an S
corporation, a qualified mutual fund, a real estate mortgage investment conduit
(REMIC), or a real estate investment trust (REIT). A corporation's alternative minimum
taxable income is the basis on which the alternative minimum tax imposed by section 55
of the Code· and the environmental tax imposed by section 59 A of the Code is computed.
WE EXPRESS NO OPINION with respect to any other federal, state, or local
tax consequences under present law or any proposed legislation resulting from the
receipt or accrual of interest on, or the acquisition or disposition of, the Certificates.
Ownership of tax-exempt obligations such as the Certificates may result in collateral
federal tax consequences to, among others, financial institutions, life· insurance
companies, property and casualty insurance companies, certain foreign corporations
doing business in the United States, S corporations with subchapter ·c earnings and
profits, individual. recipients of Social Security or Railroad Retirement benefits, and
taxpayers who may be deemed to have incurred or continued indebtedness to purchase
or carry, or who have paid or incurred ·certain expenses allocable to, tax-exempt
obligations.
0240181
.-
No Text
Financial Advisocy Services
Provided By
) FIRST SOUTHWFST COMPANY
INvESTMENT BANKERS
........
i
,-
NOTICE OF SALE
AND
BIDDING INSTRUCTIONS
ON
$900,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
TAX AND AIRPORT SURPLUS REVENUE CERTIFICATES OF OBLIGATION, SERIES 1995
Sealed Bids Due Thursday, May 11, 1995, at 11:00 AM, CDT
THE SALE
Certif"IC.Iltes Offered for Sale at Competitive Bidding
The City of I,-ubbock, Texas, is offering for sale its $900,000 Tax and Ahport Surplus Revenue Certificates of Obligation, Series
1995 (the "Certificates").
Address of Bids
Sealed bids, plainly marked "Bid for Certificates", should be addressed and delivered to "Mayor and City Council, City of
Lubbock, Texas" and delivered to the City Secretary at the Municipal Complex, 1625 13th St., Lubbock, Texas, prior to 11:00
AM, COT, on the date of the bid opening. All bids must be submitted on the Official Bid Form, without alteration or
interlineation.
Bids by Telephone or Facsimlle
Bidders must submit SIGNED Official Bid Forms to JOB W. SMITH, FIRST SOUTHWEST COMPANY, 402 CYPRESS,
SUITE 103, ABILENE, TEXAS 79601, and submit their bid by telephone or facsimile (fax) on the date of the sale.
Telephone bids will be accepted at 806-767-3245, between 9:30AM, COT and 10:30 AM, COT.
Fax bids must be received between 9:30AM, COT and 10:30 AM, COT on the date of the sale at 806-762-3623, attention Joe
W. Smith.
First Southwest Company will not be responsible for submitting any bids received after the above deadlines.
First Southwest Company assumes no responsibility or liability with respect to any irregularities associated with the submission
of bids if telephone or fax options are exercised.
Place and Time of Bid Opening
The bids for the Certificates will be publicly opened and read in the City Council Chambers, Municipal Complex, at 11:00 AM,
COT, Thursday, May 11, 1995.
Award of the Certif"ICates
The City Council will take action to award the Certificates (or reject all bids) immediately following the bid opening and adopt
an ordinance authorizing the Certificates and approving the Official Statement (the "Ordinance").
-i-
THE CERTIFICATES
Description
The Certificates will be dated May 15, 1995 (the "Certificate Date"), and interest will be due on February 15, 1996, and on
each August 15 and February 15 thereafter until the earlier of maturity or prior redemption. The Certificates will be issued only
in fully registered form in any integral multiple of $5,000 for any one maturity. The Certificates will mature on February 15
in each year as follows: ·
Principal
Year Amount
1996 $150,000
1997 170,000
1998 180,000
1999 195,000
2000 205,000
Book-Entry-Only System
The City intends to utilize the Book-Entry..Qnly System of The Depository Trust Company ("DTC "). See "Certificate
Information-Book-Entry-Only System" in the Official Statement.
Redemption
The Certificates are not optional for prior redemption.
Paying Agent/Registrar
The initial Paying Agent/Registrar shall be Norwest Bank Minnesota, National Association, Minneapolis, Minnesota; Co-
Registrar shall be Norwest Bank Texas, National Association, Lubbock, Texas (see •certificate Information -Paying
Agent/Registrar" in the Official Statement).
Source of Payment
The Certificit.tes constitute direct obligations of the City, payable from (i) the levy and collection of a direct and continuing ad
valorem tax, within the limits prescribed by law, on all taxable property within the City, and (ii) a pledge of surplus revenues
of the City's Airport, as provided in the Ordinance.
Further details regarding the Certificates are set forth in the Official Statement.
CONDITIONS OF THE SALE
Type of Bids and Interest Rates
The Certificates will be sold in one block on an "All or None" basis, and at a price of not less than their par value plus accrued
interest to the date of delivery of the Certificates. AGGREGATE UNDERWRITERS' COMPENSATION MAY NOT
EXCEED 1% OF THE ISSUE PRICE OF THE CERTIFICATES TO THE PUBLIC EXCLUDING INTEREST PAID BY
THE PUBLIC. Bidders are invited to name the rate(s) of interest to be borne by the Certificates, provided that each rate bid
must be in a multiple of 118 of 1% or 1120 of 1% and the effective interest rate must not exceed 15%. The highest rate bid
may not exceed the lowest rate bid by more than 2% in rate. No limitation is imposed upon bidders as to the number of rates
or changes which may be used. All Certificates of one maturity must bear one and the same rate. No bids involving
supplemental interest rates will be considered. Each bidder shall state in the bid the total interest cost in dollars and the effective
interest rate determined thereby (calculated in the manner prescribed by Article 717k-2, VATCS), 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 Certificates, 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 Certif\cates from the Certificate Date to their respective
maturities, using the table of Bond Years herein, and deducting therefrom the premium bid (the "Net Interest Cost Calculation").
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Subject to the City's right to reject any or all bids and to waive any irregularities except time of filing, the Certificates will be
awarded to the bidder or syndicate account manager whose name first appears on the Official Bid Form (the "Purchaser") whose
bid, based on the Net Interest Cost Calculation, 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 $18,000.00, is required. Such Good Faith
Deposit shall be in the form of a Cashier's Check, or its equivalent, which is to be retained uncashed by the City pending the
Purchaser's compliance with the terms of the bid and the Notice of Sale and Bidding Instructions. The Good Faith Deposit may
accompany the Official Bid Form or it may be submitted separately. If submitted separately, it shall be made available to the
City prior to the opening of the bids, and shall be accompanied by instructions from the bank on which drawn which authorize
its use as a Good Faith Deposit by the Purchaser who shall be named in such instructions. The Good Faith Deposit of the
Purchaser will be returned to the Purchaser upoo paymeot for the Certificates. 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 Certificates in accordance with the
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
Certificates has been made.
DELIVERY OF THE CERTIFICATES AND ACCOMPANYING DOCUMENTS
CUSIP Numbers
lt is anticipated that CUSIP identification numbers will appear on the Certificates, but neither the failure to print or type such
number on any Certificate 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 Certificates in accordance with the terms of this Notice of Sale and Bidding Instructions and
the terms of the Official Bid Form. All expenses in relation to the printing or typing of CUSIP numbers on the Certificates 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 or Certif'acates
Initial Delivery will be accomplished by the issuance of one or more Initial Certificates (also called the "Certificate" or
"Certificates"), either in typed or printed form, in the aggregate principal amount of $900,000, payable in stated installments
to the Purchaser, signed by the Mayor and City Secretary, approved by the Attorney General, and registered and manually
signed by the Comptroller of Public Accounts. Upon delivery of the Initial Certificate, it shall be immediately cancelled and
one definitive Certificate for each maturity will be registered and delivered only to Cede & Co. and deposited with DTC in
connection with DTC' s Book-Entry-Qnly System. Initial delivery will be at the principal office of the Paying Agent/Registrar.
Payment for the Certificates must be made in immediately available funds for unconditional credit to the City, or as otherwise
directed by the City. The Purchaser will be given six business days' notice of the time fixed for delivery of the Certificates.
It is anticipated that delivery of the Certificate(s) can be made on or about June 15, 1995, and it is understood and agreed that
the Purchaser will accept delivery and make payment for the Certificates by 10:00 AM, CDT, on June 15, 1995, or thereafter
on the date the Certificate is tendered for delivery, up to and including June 29, 1995. If for any reason the City is unable to
make delivery on or before June 29, 1995, the City shall immediately contact the Purchaser and offer to allow the Purchaser
to extend its offer for an additional thirty days. If the Purchaser does not elect to extend its offer within six days thereafter,
then its 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 Certificates, provided such failure is
due to circumstances beyond the City's reasonable control.
Conditions to Deli?ery
The obligation of the Purchaser to take up and pay for the Certificates is subject to the Purchaser's receipt of (a) the legai
opinion of Fulbright & Jaworski L.L.P., 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.
In order to provide the City with information required to enable it to comply with certain conditions of the Internal Revenue
Code of 1986 relating to the exemption of interest on the Certificates from the gross income of their owners, the Purchaser wiJi .
be required to complete, execute, and deliver to the City (on or before the 6th business day prior to the delivery of the
Certificates) a certification as to their "issue price" substantially in the form and to the effect attached hereto or accompanying
this Notice of Sale and Bidding Instructions. In the event the successful bidder will not reoffer the Certificates for sale, such
certificate may be modified in a manner approved by the City. In no event will the City fail to deliver the Certif"acates as
a result or the Initial Purchaser's inability to seD a substaotial amount of the Certifacates at a particular price prior to
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delivery. Each bidder, by submitting its bid, agrees to complete, execute, and deliver such a certificate by the date of delivery
of the Certificates, if its bid is accepted by the City. It will be the responsibility of the Purchaser to institute such syndicate
reporting requirements to make such investigation, or otherwise to ascertain the facts necessary to enable it to make such
certification with reasonable certainty. Any questions concerning such certification should be directed to Bond Counsel.
Legal Opinions
The Certificates are offered when, as and if issued, subject to the approval of the Attorney General of the State of Texas.
Delivery of and payment for the Certificates is subject to the receipt by the Purchaser of opinions of Bond Counsel, to the effect
that the Certificates are valid and binding obligations of the City and that, assuming compliance by the City after the date of
the Official Statement with certain covenants described therein, interest on the Certificates will be excludable from gross income
for federal income tax purposes under existing taw, except with regard to any Certificate for any period of time during which
such Certificate is held by a "substantial user• of any of the facilities financed with the proceeds of the Certificates or a "related
person" within the meaning of section 147(a) of the Internal Revenue Code of 1986 (the "Code"). HOWEVER, INTEREST
ON THE CERTIFICATES WILL BE INCLUDED IN COMPUTING THE ALTERNATIVE MINIMUM TAXABLE
INCOME OF THE OWNERS THEREOF WHICH ARE INDIVIDUALS OR CORPORATIONS. See "Other Relevant
Information-Tax Exemption" in the Official Statement.
Certification of Official Statement
At the time of payment for, and Initial Delivery of, the Certificates, the City will execute and deliver to the Purchaser a
certificate in the form set forth in the Official Statement.
Change in Tax Exempt Status
At any time before the Certificates are tendered for delivery, the Purchaser may withdraw its bid if the interest received by
private holders on certificates of the same type and character shall be declared to be taxable income under present federal income
tax laws, either by ruling of the Internal Revenue Service or by a decision of any Federal court, or shall be declared taxable
or be required to be taken into account in 'computing any federal income taxes, by the terms of any federal income tax law
enacted subsequent to the date of this Notice of Sale and Bidding Instructions. ·
GENERAL
Financial Advisor
First' S~uthwest Company is employed as Financial Advisor to the City in connection with the issuance of the Certificates. The
Firilincial Advisor's fee for services rendered with respect to the sale of the Certificates is contingent upon the issuance and
delivery. of the Certificates. First Southwest Company may submit a bid for the Certificates, either independently or as a
member of a syndicate organized to submit a bid for the Certificates. First Southwest Company, in its capacity as Financial
AdVis6r, has relied on the opinion of Bond Counsel and has not verified and does not assume any responsibility for the
infOrmation, covenants and representations contained in any of the legal documents with respect to the federal income tax status
of the Certificates, or the possible impact of any present, pending or future actions taken by any legislative or judicial bodies.
Blue Sky Laws .
By submission of its bid, the Purchaser represents that the sale of the Certificates in states other than Texas will be made only
pursuant to exemptions from registration or, where necessary, the Purchaser will register the Certificates in accordance with
the securities law of the states in which the Certificates are offered or sold. The City agrees to cooperate with th.e Purchaser,
at the Purchaser's written request and expense, in registering the Certificates or obtaining an exemption from registration in any
state where such action is necessary, provided, however, that the City shall not be obligated to execute a general or special
coitSent to service of process in any such jurisdiction.
Not an Offer to Sell
"fbi~'N'<ltict; ofSale and Bidding Instructions does not alone constitute an offer io seD the Certificates, but is me~ely notice of
tbe'Sal~( oftheCertificates. The offer to sell the Certificates is being made by means of the Notice of Sale and Bidding
Instiu~i:ions, the Official Bid Form and the Official Statement. Prospective purchasers are urged to carefully examine the
Ot:flcial ~tatemeilt to determine the investment quality of the Certificates.
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Issuance of Additional Debt
$4,960,000 General Obligation Bonds, Series 1995 and $2,000,000 Tax and Hotel Occupancy Tax Revenue Certificates of
Obligation, Series 1995 are also being offered for sale May 11, 1995.
Following sale and issuance of the above Bonds and Certificates, the City will have $10,247,000 authorized but unissued general
obligation bonds. Of these the City's preliminary plans are to sell approximately $3,232,000 in 1996, $2,120,000 in 1997 and
$1,157,000 in 1998 totaling $6,509,000; there are no present plans to sell $3,738,000 of the authorized bonds. The City has
no other current plans for the issuance of general obligation debt.
Ratings
The presently outstanding tax supported debt of the City is rated "AA" by Moody's Investors Service, Inc. ("Moody's") and
"AA" by Standard & Poor's Ratings Group, a division of McGraw Hill ("S&P"). Applications for contract ratings on this issue
have been made to both Moody's and S&P. The results of their detenninations will be provided as soon as possible.
Municipal Bond Insurance
In the event the Certificates are qualified for municipal bond insurance, and the Purchaser desires to purchase such insurance,
the cost therefor will be paid by the Purchaser. Any fees to be paid to the rating agencies as a result of said insurance will
be paid by the Citv. It will be the responsibility of the Purchaser to disclose the existence of insurance, its terms and the effect
thereof with respect to the reoffering of the Certificates.
The Offacial Statement and Compliance with SEC Rule IScl-12
The City has prepared the accompanying Official Statement and, for the limited purpose of complying with SEC Rule 15c2-12,
deems such Official Statement to be final as of its date within the meaning of such Rule for the purpose of review prior to
bidding. Representations made and to be made by the City concerning the absence of material misstatements and omissions in
the Official Statement are addressed elsewhere in this Notice of Sale and Bidding Instructions and in the Official Statement.
The City will furnish to the Purchaser, or Purchasers, acting through a designated senior representative, in accordance with
instructions received from the Purchaser(s), within seven (7) business days from the sale date an aggregate of 50 copies of the
Official Statement including a like number of copies of a Supplement reflecting interest rates and other terms relating to the
initial reoffering of the Certificates. The cost of a reprinted Official Statement, if the Purchaser(s) shall so elect, and the cost
of any Official Statement in excess of the number specified shall be prepared and distributed at the cost of the Purchaser(s).
The Purchaser(s) shall be responsible for providing in writing the initial reoffering prices and other terms, if any, to the
Financial Advisor by the close of the next business day after the award. Except as noted above, the City assumes no
responsibility or obligation for the distribution or delivery of any copies of the Official Statement in connection with the offering
or reoffering of the subject securities.
Additional Copies 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, 1700 Pacific Avenue, Suite 500, Dallas, Texas 75201, Financial Advisor to the City.
On the date of the sale, the City Council will, in the Ordinance authorizing the issuance of the Certificates, confirm its approval
of the form and content of the Official Statement, and any addenda, supplement or amendment thereto, and authorize its use
in the reoffering of the Certificates by the Purchaser.
ATTEST:
BETTY M. JOHNSON
City Secretary
April 20, 1995
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DAVID R. LANGSTON
Mayor
City of Lubbock, Texas
No Text
BOND YEARS
Accumulated Year Amount Bond Years Bond Years Year
1996 $ 150,000 112.50 112.50 1996 .. _
1997 170,000 297.50 410.00 1997
1998 180,000 495.00 905.00 1998
1999 195,000 731.25 1,636.25 1999
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j 2000 205,000 973.75 2,610.00 2000
Average Maturity ---------------------------------2.900 Years
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No Text
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Honorable Mayor and City Council
City of Lubbock, Texas
Members of the City Council:
OmCIAL BID FORM
May 11, 1995
Reference is made to your Official Statement and Notice of Sale and Bidding Instructions, dated April 20, 1995, of $900,000 CITY OF LUBBOCK,
TEXAS TAX AND AIRPORT SURPLUS REVENUE CERTIFICATES OF OBLIGATION, SERIES 1995, both of which constitute a part hereof.
For your legally issued Certificates, as described in said Notice of Sale and Bidding Instructions and Official Statement, we will pay you par and
accrued interest from date of issue to date of delivery to us, plus a cash premium of$ for Certificates maturing and bearing interest
as follows:
Principal Interest
Maturity Amount Rate
2-15-1996 $150,000 ---" 2-15-1997 170,000 ---%
2-15-1998 180,000 ---%
2-15-1999 195,000 ---%
2-15-2000 205,000 __ %
Our calculation (which is not a part of this bid) of the interest cost from the above is:
Total Interest Cost
Less Premium
NET INTEREST COST
EFFECTIVE INTEREST RATE
$. _____ _
$. _____ _
______ %
We are having the Certificates of the following maturities---------::-:--~--:--:---:-:--:--::--:::---:-insured
by at a premium of $._--::-=-::--:--::----' said premium to be paid by the Purchaser. Any
fees to be paid to the rating agencies as a result of said insurance wm be paid by the City.
The Initial Certificate shall be registered in the nsme of • We wilt advise The Depository Trust
Company ("DTC") of registration instructions at least five business days prior to the date set for Initial Delivery.
A bank cashier's check or certified check of the Bank, , in the
amount of $18,000.00, which represents our Good Faith Deposit (is attached hereto) or (has been made available to you prior to the opening of this
bid), and is submitted in accordance with the tenns as set forth in the Official Statement and Notice of Sale and Bidding Instructions.
We agree to accept delivery of the Certificates utilizing the Book-Entry-Only System through DTC and make payment for the Initial Certificate in
immediately available funds in the Corporate Trust Division, N orwest Bank Minnesota, Nations! Association, Minneapolis, Minnesota, not later than
10:00 AM, CDT, on June 15, 1995, or thereafter on the date the Certificates are tendered for delivery, pursuant to the tenns set forth in the Notice
of Sale and Bidding Instructions.
The undersigned agrees to complete, execute, and deliver to the City, at least six business days prior to delivery of the Certificates, a certif1cate
relating to the "issue price• of the Certificates in the fonn and to the effect accompanying the Notice of Sale and Bidding Instructions, with such
changes thereto as may be acceptable to the City.
We agree to provide in writing the initial reoffering prices and other tenns, if any, to the Financial Advisor by the dose or the next business
day after the award.
Respectfully submitted,
BY-----~~~--~-----Authorized Representative
ACCEPTANCE CLAUSE
The above and foregoing bid is hereby in all things accepted by the City of Lubbock, Texas, subject to and in accordance with the Notice of Sale and
Bidding Instructions, this the lith day of May, 1995.
ATTEST: Mayor
City of Lubbock, Texas
City Secretary
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ISSUE PRICE CERTIFICATE
The undersigned hereby certifies with respect to the sale of $900,000 CITY OF LUBBOCK, TEXAS TAX AND AIRPORT
SURPLUS REVENUE CERTIFICATES OF OBLIGATION, SERIES 1995 (the "Certificates"):
1. The undersigned is the underwriter or the manager of the syndicate of underwriters which has purchased the Certificates from
City of Lubbock, Texas (the "Issuer") at competitive sale.
2. The undersigned and/or one or more other members of the underwriting syndicate, if any, have made a bona fide offering to the
public of the Certificates of each maturity at the respective prices set forth below.
3. The initial offering price (expressed as a percentage of principal amount or yield and exclusive of accrued interest) for the
Certificates of each maturity at which a substantial amount of the Certificates of such maturity was sold to the public is as set forth
below:
Principal Offering
Amount Year of Price
Maturing Maturig: (%/Yield}
$150,000 1996 %
170,000 1997 %
180,000 1998 %
195,000 1999 %
205,000 2000 %
4. The term "public," as used herein, means persons other than bondbouses, brokers, dealers, and similar persons or organizations
acting in the capacity of underwriters or wholesalers.
5. The offering prices described above reflect current market prices at the time of such sales .
6. The undersigned and/or one or more other members of the underwriting syndicate, as the case may be, (have)(have not) purchased
bond insurance for the Certificates. The bond insurance, if any, has been purchased from (the •Insurer")
for a premium cost of$ (net of any nonguarantee cost, e.g., rating agency fees). The amount of such cost is set
forth in the Insurer's commitment and is separately stated from all other fees or charges payable to the Insurer. The premium does
not exceed a reasonable charge for the transfer of credit risk taking into account payments charged by guarantors in comparable
transactions (mcluding transactions in which a guarantor has no involvement other than as a guarantor). The present value of the
debt service savings expected to be realized as a result of such insurance, discounted at a rate equal to the yield on the Certificates
which results after recovery of the insurance premium, exceeds the present value of the bond insurance premium.
7. The undersigned understands that the statements made herein will be relied upon by the Issuer in its effort to comply with the
conditions imposed by the Internal Revenue Code of 1986, as amended, on the excludability of interest on the Certificates from the
gross income of their owners.
EXECUTED and DELIVERED this-----day of ------• 1995.
(Name of Underwriter or Manager)
By: _______________ __
Title
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No Text
CITY OF LUBBOCK, TEXAS
(Lubbock County)
$900,000
TAX AND AIRPORT SURPLUS REVENUE
CERTIFICATES OF OBLIGATION, SERIES 1995
Sealed Bids Due Thursday, May 11, 1995,
at 11:00 AM, CDT
• Amarillo
• UBBOCK
W th• •Dallas Fort or
* Austin
• • San Antomo
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Ratings: Moody's: "Aa"
SUPPLEMENT TO
OFFICIAL STATEMENT
relating to
$900,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
Standard & Poor's: "AA"
TAX AND AIRPORT SURPLUS REVENUE
CERTIF1CA TES OF OBLIGATION, SERIES 1995
On May 11, 1995, the above-captioned Certificates (the wcertificatesw) were awarded to an underwriter
or group of underwriters managed by FIDELITY CAPITAL MARKETS (the wPurchasersw). The interest
rate with respect to each maturity of Certificates and the initial reoffering yield for each maturity are as
follows:
MATURITY SCHEDULE
Amount
$150,000
170,000
180,000
195,000
205,000
Maturity
2-15-1996
2-15-1997
2-15-1998
2-15-1999
2-15-2000
Rate
6.500%
6.500%
4.500%
4.625%
4.700%
Initial
Reoffering
Yjeld
4.20%
4.40%
4.60%
4.70%
4.80%
The initial reoffering yields were supplied to the City by the Purchasers and such initial reoffering yields
for one or more maturities may be changed at any time and from time to time by the Purchasers and other
dealers.
The Purchasers have indicated in their bid form that the Certificates will not be insured.
Subject to circumstances occurring subsequent to the date hereof, this Supplement together with the Official
Statement noted a~ve, dated April 20, 1995, constitute the wFinal Official Statementw within the meaning
of SEC Rule 15c2-12.
Dated: May 11, 1995
No Text
ADDENDUM
TO
OFFICIAL STATEMENT
ON
$900,000
CITY OF LUBBOCK, TEXAS
TAX AND AIRPORT SURPLUS REVENUE
CERTIFICATES OF OBUGATION, SERIES 1995
Selling Thursday, May 11,1995, at 11:00 AM, CDT
The following Maturity Schedule replaces that shown on Page 1 of the Official Statement, dated April
20, 1995.
MATURTIY SCHEDULE
Amount
$ 150,000
170,000
180,000
195,000
205,000
Maturity Rate
1996
1997
1998
1999
2000
********
Price
or
Yield
~TSO~STCO~ANY
Financial Advisor
May2, 1995
No Text
OFFICIAL STATEMENT
Dated April 20, 1995
NEW ISSUE -Book-Entry-Only
In the opinion of Bond Counsel, assuming compliance by the City after the date hereof with certain covenants described herein,
interest on the Certificates will be excludable from gross income for federal income tax purposes under existing law, ~ with
regard to any Certificate for any period of time during which such CertifiCate is held by a "substantial user• of any of the facilities
financed with the proceeds of the Certificates or a "related person" within the meaning of section 14 7(a) of the Internal Revenue Code
of 1986 (the "Code"). HOWEVER. INTEREST ON THE CERTIFICATES WILL BE INCLUDED IN COMPUTING THE
ALTERNATIVE MINIMUM TAXABLE INCOME OF THE OWNERS THEREOF WHICH ARE INDIVIDUALS OR
CORPORATIONS. See "Other Relevant Information., Tax Exemption".
$900,000
CITY OF LUBBOCK, TEXAS
(Lubbock County) ·
TAX AND AIRPORT SURPLUS REVENUE CERTIFICATES OF OBLIGATION, SERIES 1995
Dated: May 15, 1995 Due: February 15, as. shown below
Interest on the $900,000 City of Lubbock, Texas Tax and Airport Surplus Revenue Certificates of Obligation, Series 1995 (the
"Certificates") will accrue from the dated date as shown above and will be payable February 15 and August 15 of each year,
commencing February 15, 1996, and will be calculated on the basis of a 360-day year of twelve 30-day months. The definitive
Certificates initially will be registered and delivered only,to Cede & Co., the nominee of The Depository Trust Company ("DTC")
pursuant to the Book-Entry-Only System describ~ herein. Beneficial ownership of the Certificates may be acquired in denominations
of $5,000 or integral multiples thereof. No physical delivery or the Certificates will be made to the owners thereof. Principal
of, premium, if any, and interest on the Certificates will be payable by the Paying Agent/Registrar to Cede & Co., which will make
distribution of the amounts so paid to the beneficial owners of the Certificates. See "Certificate Information -Book-Entry-Only
System" herein. ·
These Certificates are direct obligations of the City of Lubbock, Texas (the "City"), payable from (i) the levy and collection of a
direct and continuing ad valorem tax, within the limits prescribed by law, on all taxable property within the City, and (ii) a pledge
of surplus revenues of the City's Airport, as provided in the ordinance authorizing the Certificates (the "Ordinance") (see "Certificate
Information -"Authority for Issuance."). ·
The initial Paying Agent/Registrar shall be Norwest Bank Minnesota, National Association, Minneapolis, Minnesota; Co-Registrar
shall be Norwest Bank Texas, National Association, Lubbock, Texas (see "Certificate Information-Paying Agent/Registrar").
Proceeds from the sale of the Certificates will be used for contractual obligations to be incurred for extension of the commercial ramp
at the Air Cargo Complex and for professional services including costs of issuance. '
MATURITY SCHEDULE
Amount
$150,000
170,000
180,000
175,000
205,000
The Certificates are not optional for prior redemption.
Maturity
1996
1997
1998
1999
2000
Price
or
__R!!!L Yield
The presently outstanding tax supported debt of the City is rated "Aa" by Moody's Investors Service, Inc. ("Moody's") and "AA •
by Standard & Poor's Rating Group, a division of McGraw Hill ("S&P"). Requests for rating for .the Certificates have been made
to both rating services (see "Other Relevant Information-Ratings").
The Certificates are offered for delivery when, as and if issued and received by the purchasers and subject to the approving opinion
of the Attorney General of the State of Texas and of Fulbright & Jaworski L.L.P., Bond Counsel, Dallas, Texas. The legal opinion
will be printed on or attached to the Certificates (see Appendix B, "Form of Bond Counsel's Opinion").
It is expected that the Certificates will be tendered for delivery to the initial purchaser(s) through DTC. Delivery of the Certificates
is anticipated on or about June 15, 1995.
No dealer, salesman, or any other person has been authorized to give any inft:mnatibn or make any representatibn, other than
those contained herein, in connectibn with the olfenng of these Certificates, and if given or made such informatibn or
representation must not be relied upon. 1"he informatibn and expressions of opinion herein are subject to change without notice
and neither the delivery of this Official Statement nor any sale made hereunder shaU, under any circiunsto.nces, create any
implicatibn that there has been no change in the affairs of the City since the date hereof.
TABLE OF CONTENTS
OFFICIAL STATEMENT
Description of the Certificates • • • . . . . . . • . 1
CITY ADMINISTRATION
Elected Officials . • . • . • . • . • • • . , . • . • . 3
Appointed Officials • . • . • . • • • • , • • ·• • • • • 3
Consultants and AdvisorS • • • • • • . • • . • . . • 4
SELECTED DATA FROM THE OFFICIAL
STATE.l\fENT . . . . . . • . . . . . . . . . • . . . • 5
CERTIFICATE INFORMATION
Authority for Issuance . . . . • • . . . . . . • . . 7
Security for the Certificates . . . . . . . . . • • • 7
Redemption of CertificateS . • . . . . . . . . • . 8 .
Book-Entry-Only System . . • . • . . . . . . . • . 8
Paying Agent/Registrar . . . . • . . . • . . . • . 9
Transfer, Exchange and Registration . • . . . • 10
Record Date for Interest Payment . . . . . . . . 10
Use of Certificate Proceeds • . . • . • . • . • . • 10
Sources and Uses of Funds 10
TAX INFORMATION
Ad Valorem Tax Law . . • . . . . . . . . . . . . 11
Valuation; Exemptions and Debt. Obligations . . 12
Taxable AssessedValuations by Category . . . 14
Valuation and Funded Debt History . • . • . . . 15
Tax Rate, Levy and Collection History . . . . . 16
Ten Largest Taxpayers . . . • . . . . • . . . • . 17
Tax Rate Limitation . • • . • . . • . • . . . • • . 17
DEBT INFORMATION
Debt Service Requirements (New Issues) 18
Combined Debt Service Requirements . . . • • 19
Division of Debt Service Requirements . . . • . 20
Assessed Valuations, Tax Rates, Direct and
Overlapping Funded Debt Payable from
Ad Valorem Taxes and Authorized But
Unissued Bonds of Overlapping Taxing
Jurisdictions . • . . • . • . . . . . . . • . •
Interest and Sinking Fund Budget Projection .
Computation of Self-SUpporting Debt ·
The Waterworks System . .'. · ...... .
The Sewer System . • . . . . • . . . . • . .
Solid Waste Disposal System ...•••..•
Authorized General Obligation Bonds .• . . • . •
Anticipated Issuance of · Authorized General
Obligation Bonds and Other Obligations •
Funded Debt Limitation . . . . ·• • . • . . . • . .
Other Obligations . . . . . . . . . . . . . . . . . .
Pension Funds . . . . -. . • . . . . . . . . . . • .
21
22
22
23
24
25
25
25
26
26
2
FINANCIAL INFORMATION
General Fund Revenues and Expenditures • . . 27
Municipal Sales Tax History •.•... · . • . . . . . 28
Financial Policies . • • • . . • . • . . . • . • . . • . . 28
INVEST.l\fENTS • .. . . . .. . .. .. . .. . .. . .. . 29
THE AIRPORT SYSTEM . • . • . • . . . • . . . . . . . 32
OTHER RELEVANT INFORMATION
Ratings . . • . . . . • . • . . . . . • . . . . . . . . . . · 35
Tax Exemption. . . . . . . • . . . . . . . . . . . . . . ·35
Tax Accounting Treatment of Discount and Premium
on Certain Certificates • . . . . . . . ~ . • • . . 36
· Litigation . . . • • . • . . . . . . . . . . • . • . • . • . . . 36 ·
Registration and Qualification of Certificates for Sale 36
Legal Investments and Eligibility to Secure Public
Funds in Texas .•...•. , . • . . . . . . . . · 37
Legal Opinions and No-Litigation Certificate . . . . 37
Authenticity of Financial Data and Other Information 37
Financial Advisor . • . . • . . . • : . . . . . . • . . . · 37
Certification of the Official Statement . . • . • . . • . 37
APPENDICES
General Information Regarding the City • • • . • . A
Form of Bond Counsel's Opinion . • . . . . . . . . . B
EXCERPTS FROM THE COMPREHENSIVE ANNUAL
FINANCIAL REPORT . . • . . . . . . . • . . Enclosure
The cover page hereof, this page, the appendices included
herein, the· Financial Statements, and any addenda,
supplement or amendment hereto, are part of the Official
Statement.
·-
CITY ADMINISTRATION
,.. Elected Officials
. ,...
City Council
David R. Langston
Mayor
Randy Neugebauer
Mayor Pro Tem
and Councilmember
Victor Hernandez
Councilmember
T .J. Patterson
Councilmember
Windy Sitton
Councilmember
Max Ince
Councilmember
Alex "Ty• Cooke
Councilmember
Appointed OffiCials
Name
Bob Cass City Manager
John C. Ross, Jr. City Attorney
Betty M. Johnson City Secretary
Length
of Service
3 Years
3 Years
1 Year
11 Years
1 Year
3 Years
3 Years
Position
Gavino Sotelo First Assistant City Manager
Quentin Thomas Assistant City Manager
Debra Forte' Assistant City Manager
Term
§2111ires
May, 1996
May, 1998
May, 1998
May, 1996
May, 1998
May, 1996
May, 1996
Carolyn Aliamus Director of Culture, Leisure and
Recreation
J. Robert Massengale Director of Electric Utilities
Doug Goodman Director of Health and Community
Services
Mary Andrews Director of Human Resources
Tom Tuning Director of Information and
Communication Services
Anna Mosqueda Director of Management Services
Jim Bertram Director of Strategic Planning
Mark Hindman Director of Support Services
Larry Hoffman Director of Transportation
Terry Ellerbrook Director of Water Utilities
Don Stevens Fire Chief
Ken Walker Chief of Police
Betsy Wood, CPA Chief Accountant
Mark Earle Aviation Manager
3
Occupation
Attorney-at-Law
Investments
Attorney-at-Law
Co-Publisher, SouthWest Digest
Businesswoman
President, Ince Insurance Company
Investments
Length of
Length of Employment
Time in With City
This Position of Lubbock
Since September, 1992 Since April, 1976
Since August, 1978 Since August, 1978
Since March, 1993 Since April, 1990
Since March, 1995 Since March, 1995
Since May, 1994 Since May, 1994
Since January, 1995 Since January, 1995
Since March, 1994 Since March, 1994
Since December, 1994 Since February, 1980
Since August, 1993 Since June, 1980
Since March, 1994 Since August, 1988
Since October, 1993 Since October, 1989
Since December, 1994 Since November, 1989
Since November, 1993 Since September, 1970
Since November, 1993 Since May, 1987
Since November, 1993 Since September, 1982
Since November, 1994 Since March, 1982
Since August, 1986 Since August, 1986
Since March, 1994 Since March, 1994
Since February, 1993 Since January, 1985
April, 1995 April, 1995
Consultants and Advisors
Consulting Engineers for Lake Alan Hemy •.•..••••• " • • • . . . . • . . • . . • • . • • . . . . Freese and Nichols, Inc.
Fort Worth, Texas
Consulting Engineers for Wastewater Treatment and Disposal Project Black & Veatch
Dallas, Texas
Consulting Engineers for Water Treatment
Parkhill, Smith & Cooper, Inc.
Lubbock, Texas
HDR Engineers
Dallas, Texas
Parkhill, smith & Cooper, Inc.
Lubbock, Texas
Certified Public Accountants. . • . . . . . . . • . . . . • . . . . . . . . . . . . . . . Robinson Burdette Martin & Cowan, L.L.P.
Lubbock, Texas
Bond Counsel . . . . • . • . . • . . . • . . . . • . . . . . . • . • . . . . . . • . . . • • . . . • . . • . • • Fulbright & Jaworski L.L.P.
Financial Advisor
For additional information regarding the City, please contact:
Mr. Mark Hindman
Director of Support Services
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
(806) 767-2980
Mr. Joe W. Smith
or First Southwest Company
P. 0. Box 2754
4
Abilene, Texas 79604-2754
(915) 672-8432
Dallas, Texas
First Southwest Company
Dallas and Abilene, Texas
,-
SELECTED DATA FROM THE OFFICIAL STATEMENT
The selected data on this page is subject in all respects to the more complete information and definitions contained or
incorporated in this Official Statement. The offering of the Certificates to potential investors is made only by means of this
entire Official Statement. No person is authorized to detach this data page from this Official Statement or to otherwise use it
without the entire Official Statement.
This data page was prepared to present the purchasers of the Certificates information concerning the Certificates, revenues
pledged to the Certificates, a description of the revenue base and other pertinent data, all as more fully described herein.
The Issuer • . • • . . . . . ·• • . • • . • • . . • • The City of Lubbock, Texas is· a political subdivision located in Lubbock
County operating as a home--rule city under the laws of the State of Texas
and a charter approved by the voters on December 27, 1917, and amended
from time to time. The Charter provides for the Council-Manager form of
government for the City. The Mayor is elected at-large for a two year term
ending in an even year. Bach of the six members of the City Council resides
in a separste single--member district and is elected'by the qualified voters of
this district for a four year term. The terms of three members of the City
Council expire each even year. The Council formulates operating policy for
the City while the City Manager is the chief administrative officer.
Lubbock is the County Seat of Lubbock County, Texas, and is located on the
South Plains of West Texas approximately 320 miles west of Dallas. The
City's 199S estimated population is 191,020. The City is approximately 104
square miles in area. Texas Tech University, a major State institution of
higher education, is located in Lubbock.
The CertirJCBtes . . . • • . • . . • . . . • . • . • The Certificates are being issued in the principal amount of $900,000
pursuant to the general laws of the State of Texas, particularly Subchapter
C of Chapter 271, Texas Local Government Code (the Certificate of
Obligation Act of 1971), as amended, and an Ordinance passed by the City
Council of the City (see "Certificate Information-Authority for Issuance").
Security for the Certifacates The Certificates constitute direct obligations of the City payable from a
combination of (i) the levy and collection of a direct and continuing ad
valorem tax, within the limits prescnbed by law, on all taxable property
within the City, and (ii) a pledge of surplus revenues of the City's Airport
(see "Certificate Information -Security for Certificates").
Optional Redemption . . • . . • . • • . • • • . The Certificates are not optional for prior redemption.
Tax Exemption . . • . . • • . . • . . • . • • . . In the opinion of Bond Counsel, the interest on the Certificates will be
excludable from gross income for federal income tax purposes under existing
law, except with regard to any Certificate for any period of time during
which such Certificate is held by a "substantial user" of any of the facilities
financed with the proceeds of the Certificates or a "related person" within the
meaning of section 147(a) of the Internal Revenue Code of 1986.
HOWEVER, INTEREST ON THE CERTIFICATES WILL BE
INCLUDED IN COMPUTING THE ALTERNATIVE MINIMUM
TAXABLE INCOME OF THE OWNERS THEREOF WHICH ARE
INDIVIDUALS OR CORPORATIONS. See "Other Relevantlnformation-
Tax Exemption".
Use of Certifacate Proceeds • • . . • . . . . . Proceeds from the sale of the Certificates will be used for contractual
obligations to be incurred to extend the commercial ramp at the Air Cargo
Complex and for professional services including costs of issuance.
Payment Record . • . • . . • • • . • • • . . • . . The City has never defaulted.
5
$elected Issuer Indices
Ratio
General
Per Capita Purpose
General General Funded
Fiscal Per Capita Purpose Purpose Debt To
Year · Estimated Taxable· Taxable Funded Funded Taxable %of
Ending City Assessed Assessed Tax Tax Assessed Total Tax
9-30 P~.mulation <O .Valuation Valuation Debt <2l Debt Valuation Collections
1989 191,403 $ 4,567,387,737 $23,863 $ 43,066,998 $225 0.94% 98.98%
1990 186,206 4,645,914,710 24,950 39,179,106 210 0.84% 99.10%
1991 187,137 4, 718,788,593 25,216 43,144,916 231 0.91% 99.42%
1992 187,493 4,741,607,780 25,290 43,593,202 233 0.92% 99.38%
1993 187,981 4,667,750,168 24,831 39,585,305 211 0.85% 99.72%
1994 190,038 4,910,763,048 25,841 55,909,058 294 1.14% 100.64%
1995. 191,020 5,087,312,020 26,632 58,085,015(~> 304(3) 1.14%(3) 96.82%(4)
(1) Source: Estimates by City of Lubbock, Texas, except 1990 is the U.S. Census.
(2) Excludes self-supporting general obligation debt (see "Valuation; Exemptions and Debt Obligations"; "Valuation and Funded
Debt Histoty" and ~Computation of Self-supporting Debt").
(3) Anticipated.
(4) Part year only, thiough 2-28~95.
·'
6
.......
',....
CERTIFICATE INFORMATION
Authority for Issuance
The Certificates are being issued pursuant to the Constitution and general laws of the State of Texas, particularly Subchapter
C of Chapter 271, Texas Local Government Code (the Certificate of Obligation Act of 1971), as amended, and by ordinance
passed by the City Council as authorized in the City Charter.
Security for the Certificates
AU taxable property within the City is subject to a continuing direct annual ad valorem tax levied, within the limits prescribed
by law, by the City sufficient to provide for the payment of principal of and interest on the Certificates. The City operates under
a Home Rule Charter as authorized by Article XI, Section 5 of the Constitution of the State of Texas. The Constitution permits
the City to levy an ad valorem tax in an amount not to exceed $2.50 per $100 of assessed valuation on all taxable property
within the City for· all City purposes and the City charter adopts these Constitutional provisions.
Additionally, the Certificates are payable from and secured by surplus revenues of the City's Airport as provided in the
Ordinance authorizing the Certificates (the "Certificate Ordinance").
As defined in the Certificate Ordinance:
The term "airport" and the term "municipal airport" shall be synonymous, and shall mean all properties, real, personal or mixed
which constitute a part of the existing municipal airport of the City of Lubbock, Texas, and any and all other property hereafter
acquired or operated by the City for airport purposes, together with any and all additions or improvements therero or changes
therein made or authorized by the City. The term shall include, without limitation, all landing areas, runways, taxiways, ramps
and apron areas, improvements, all buildings located on airport properties, fixtures, appurtenances, services, air navigation
facilities, utility systems, and other facilities located on land heretofore or hereafter acquired for airport purposes.
The term "gross revenues" means the total revenues received by the City from ownership, control or operation of the airport
or air navigation facilities, including the proceeds from the sale of all or any part of such airport or facilities from whatever
source derived, excluding any rentals (except for ground rentals) from net rent leases which may be exeeuted in the future
wherein the lease consideration is pledged or otherwise utilized to finance the cooatruction of buildings or facilities for lessee--
tenant of the City, or acquisition of additional lands or facilities, but only for such time and to such extent in each case as the
rentals reserved in the lease and any extension or renewal thereof (other than ground rentals) are required to be deposited in
a separate interest and redemption fund or other fund to provide and secure the performance of the City's obligation to pay debt
service requirements on the indebtedness created to finance the improvement which is the subject of the lease. Without limiting
the generality of the foregoing, unless otherwise restricted by the provisions of this ordinance, the term "gross revenues" will
include all of the income from the ownership and operation of the municipal airport including landing fees and charges, ground
rentals, space rental in buildings or rental of buildings located on land heretofore or hereafter acquired for airport purposes, fees
for parking where the parking facility is not on a public street or thoroughfare, charges of every character made to
concessionaires, receipts of the utility systems serving the airport, and all fees (if any) collected by the City on account of the
operation of limousine onionveyances to and from the airport.
The term "operating expenses" shall mean all expenditures necessary for the efficiency, operation, mai.ntenance and utilization
of the airport, including .all salaries, labor, materials and repairs necesw:y to render efficient and adequate airport service to
the City· and its inhabitants, or such as might be necesw:y to meet some physical condition or accident which would otherwise
impair the security of bonds payable from the same source. The term "operating expenses• shall not include any allowance for
depreciation or capital improvements to the municipal airport. A capital improvement (as used in the foregoing sentence) shall
mean (i) real property, or (ii) personal property which has an estimated life of more than two years.
The term •Prior Lien Obligations" shall mean the City's Airport Revenue Bonds, Series 1978, and all bonds or other similar
obligations hereafter issued that are payable in whole or in part from and secured by a lien on and pledge of the Gross Revenues
of the Airport and such lien and pledge securing the payment thereof is prior and superior in claim, rank and dignity to the lien
and pledge of the Surplus Revenues securing the payment of the Certificates.
As of 3·31·95, the City has outstanding $360,000 Airport Revenue Bonds, Series 1978 (the "Prior Lien Obligations"), which
are payable from and secured by an irrevocable pledge of and first lien on the gross revenues of the airport and mature $90,000
each year September 15, 1995 through 1998. On the date of final adoption of the Certificate Ordinance (May 11, 1995) the
City Council intends to adopt a Resolution calling for prior redemption on September 15, 1995, the $270,000 Prior Lien
Obligations maturing $90,000 each year September 15, 1996 through 1998.
7
The term "Surplus Revenues: shalll mean Gross Revenues, with respect to any period, after deducting debt service requirements
for the Prior Lien Obligations and Operating Expenses.
The term "Additional Certificates!' shall mean combination tax and revenue certificates of obligation hereafter issued under and
pursuant to the provisions of V. T .C:..A,, Local Government Code, Subchapter C of Chapter 271, or similar law hereafter enacted
and payable from ad valorem taxes and additionally payable from and secured by a parity lien on and pledge of the Surplus
Revenues of the Airport of equal rank and dignity widt dte lien and pledge securing the payment of the Certificates.
The Certificate Ordinance provides that all gross revenues of the airport shall be deposited into the "Airport Fund" and shall
be appropriated and employed in dte following order of precedence:
First:. To the payment of amounts required to be deposited in the special Funds created and established for the payment,
security and benefit of Prior Lien Obligations in accordance widt the terms and provisions of the ordinances authorizing
the issuance of Prior Lien Obligations;
~: To the payment of all necessary and reasonable Operating Expenses of the Airport as defined herein to be a charge
on and claim against the Gross Revenues;
Third: To the payment of the amounts required to be deposited in the special funds and accounts created and established
for the payment of dte Certificates and Additional Certificates.
Any Surplus Revenues remaining in the Airport Fund after satisfying the foregoing payments, or making adequate and sufficient
provision for the payment thereof, may be appropriated and used for any other City purpose now or hereafter permitted by law.
In the Certificate Ordinance the City reserves dte right to hereafter issue Prior Lien Obligations, widtout limitation as to principal
amount or ·any other limitation or restriction, and, in addition reserves the right to issue Additional Certificates, without
limitation or any restriction or condition being applicable to dteir issuance under dte terms of the Certificate Ordinance, payable
from and secured by a lien on and pledge of the Surplus Revenues of the Airport of equal rank and dignity, and on a parity in
all respects, with the lien thereon and pledge thereof securing the payment of the Certificates.
Redemption of Certif'u::ates
The Certificates are not optional for prior redemption.
Book-Entry-Only System
The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for dte Certificates. The
Certificates will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnership nominee).
One fully-registered certificate will be issued for each maturity of the Certificates in the aggregate principal amount of such
maturity, and will be deposited with DTC.
DTC is a limited purpose trust company organized under the New York Banking Law, a "banking organization" within the
meaning of the New York Banking Law, a member of dte Federal Reserve System, a "clearing corporation" within the meaning
ofdte New York Uniform Commercial Code, and a "clearing agency" registered pursuant to dte provisions of Section 17A of
dte Securities Exchange Act of 1934. DTC holds securities that its participants ("Direct Participants") deposit with DTC •. DTC
also facilitates the settlement among Participants of securities transactions, such as transfers and pledges, in deposited securities
dtrough electronic computerized book-entry changes in Participants' accounts, thereby eliminating the need for physical
movement of securities certificates. Direct Participants include securities brokers and dealers, banks, trust companies, clearing
corporations, and certain other organizations. DTC is owned by a number of its Direct Participants and by dte New York Stock
Exchange, Inc., the American Stock Exchange, Inc. and the National Association of Securities Dealers, Inc. Access to dte DTC
system is also available to others such as securities brokers and dealers, banks, and trust companies that clear through or
maintain a custodial relationship with a Direct Participant, eidter directly or indirectly ("Indirect Participants"). The Rules
applicable to DTC and its Participants are on file with dte Securities and Exchange Commission.
Purchases of Certificates under the DTC system must be made by or through Direct Participants, which will receive a credit
for dte Certificates on DTC's records. The ownership interest of each actual purchaser of each Certificate ("Beneficial Owner")
8
is in tum to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written
confinnation from DTC of their purchase, but Beneficial Owners are expected to receive written confirmations providing details
of the transaction, as well as periodic statements of their holdings, from the. Direct or Indirect Participant through which the
Beneficial Owner entered into the transaction. Transfers of ownership interest in the Certificates are to be accomplished by
entries made on the books of Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates
representing their ownership interests in the Certificates, except in the event that use of the book-entry system is discontinued.
To facilitate subsequent transfers,.all Certificates deposited by Direct Participants with DTC are registered in the name of DTC's
partnership nominee, Cede & Co. The deposit of Certificates with DTC and their registration in the name of Cede & Co. effect
no change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Certificates; DTC's records
reflect only the identity of the Direct Participants to whose accounts such Certificates are credited, which may or may not be
the Beneficial Owners. The Participants will remain responsible for keeping account of their holdings on behalf of their
customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants,
and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject
to any statutory or regulatory requirements as may be in effect from time to time.
Redemption notices shall be sent to Cede & Co. If less than all of the Certificates within an issue are being redeemed, DTC's
practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.
Neither DTC nor Cede & Co. will consent or vote with respect to the Certificates. Under its usual procedures, DTC mails an
Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or
voting rights to those Direct Participants to whose accounts the Certificates are credited on the record date (identified in a listing
attached to. the Omnibus Proxy).
Principal and interest payments on the Certificates will be made to DTC. DTC's practice is to credit Direct Participants'
accounts on payable date in accordance with their respective holdings shown on DTC 's records unless DTC has reason to believe
that it will not receive payment on payable date. Payments by Participants to Beneficial Owners will be governed by standing
instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered
in "street name", and will be responsibility of such Participant and not of DTC, the Paying Agent/Registrar or the City, subject
to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal and interest to DTC
is the responsibility of the City, disbursement of such payments to Direct Participants shall be the responsibility of DTC, and
disbursement of such payments to the Beneficial Owners shall be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its services as securities depository with respect to the Certificates at any time by giving
reasonable notice to the City. Under such circumstances, in the event that a successor securities depository is not obtained,
Certificates are required to be printed and delivered.
The City may decide to discontinue use of the system of book-entry transfers through DTC (or a successor securities depository).
In that event, Certificates will be printed and delivered.
Use of Certain Tenns in Other Sections of this Official Statement. In reading this Official Statement it should be understood
that while the Certificates are in the Book-Entry-Only System, references in other sections of this Official Statement to registered
owners should be read to include the person for which the Participant acquires an interest in the Certificates, but (i) all rights
of ownership must be exercised through DTC and the Book-Entry-Only System, and (ii) except as described above, notices that
are to be given to registered owners under the Ordinances will be given only to DTC.
Information concerning DTC and the Book-Entry-Only System has been obtained from DTC and is not guaranteed as to accuracy
or completeness by, and is not to be construed as a representation by the City or the Purchasers.
Paying Agent/Registrar
The initial Paying Agent/Registrar is Norwest Bank Minnesota, National Association, Minneapolis, Minnesota; Co-Registrar
shall be Norwest Bank Texas, National Association, Lubbock, Texas. In the Ordinance, the City retains the right to replace
the Paying Agent/Registrar. The City covenants to maintain and provide a Paying Agent/Registrar at all times while the
Certificates are outstanding and any successor Paying Agent/Registrar shall be a commercial bank or trust company organized
under the laws of the State of Texas or other entity duly qualified and legally authorized to serve as and perform the duties and
services of Paying Agent/Registrar for the Certificates. Upon any change in the Paying Agent/Registrar for the Certificates,
the City agrees to promptly cause a written notice thereof to be sent to each registered owner of the Certificates by United States
mail, first class, postage prepaid, which notice shall also give the address of the new Paying Agent/Registrar.
9
Transfer; Exchange and ·Registration
In the event the Book-Ently-Only System should be discontinued, the Certificates may be transferred and exchanged on the
registration books of the Paying Agent/Registrar only upon presentation and surrender thereof to the Paying Agent/Registrar
and such transfer or exchange shall be without expense or service charge to the registered owner, except for any tax or other
governmental charges required to be paid with respect to such registration, exchange and transfer. A Certificate may be assigned
by the execution of an assignment form on the Certificate or by other instrument of transfer and assignment acceptable to the
Paying Agent/Registrar. A new Certificate will be delivered by the ·Paying Agent/Registrar, in lieu of the Certificate being
transferred or exchanged, at the principal office of the Paying Agent/Registrar, or sent by United States mail, first class, postage
prepaid, to the new registered owner or his designee. To the extent possible, new Certificates issued in an exchange or transfer
of Certificates will be delivered to the registered owner or assignee of the registered owner in not more than three business days
after the receipt of the Certificates to be cancelled, and the written instrument of transfer or request for exchange duly executed
by the registered owner or his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. New Certificates
registered and delivered in an exchange or transfer shall be in any integral multiple of $5,000 for any one maturity and for a
like aggregate principal amount as the Certificates surrendered for exchange or transfer.
Reeord Date for Interest Payment
The record date ("Record Date") for the interest payable on any interest payment date means the close of business on the last
business day of the preceding month.
In the event of a non-payment of interest on a scheduled payment date, and for 30 days thereafter, a new record date for such
interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment
of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the
past due interest ("Special Payment Date", which shall be 15 days after the Special Record Date) shall be sent at least five
business days prior to the Special Record Date by United States mail, first class postage prepaid, to the address of each Holder
of a Certificate appearing on the registration books of the Paying Agent/Registrar at the close of business on the last business
day· next preceding the date of mailing of such notice.
Use of Certificate Proceeds
" Proceeds from the sale of the Certificates will be used for contractual obligations to be incurred to extend the commercial ramp
at the Air Cargo Complex and for professional services including costs of issuance.
Sources and Uses of Funds
'Sources:
Proceeds from sale of Certificates
Uses: · ·
Estimated cost of extending the commercial ramp at the Air Cargo Complex (I}
Estimated costs of issuance
Total
$900,000
$887,900
12.100
$900,000
(1) the ramp project is a Federal. Aviation Administration Program Facility Charge ("PFC") approved project.
"
10
TAX INFORMATION
Ad Valorem Tax Law
The appraisal of property within the City is the responsibility of the Lubbock Central Appraisal District. Excluding agricultural
and open-space land, which may be taxed on the basis of productive capacity, the Appraisal District is required under the
Property Tax Code to appraise all property within the Appraisal District on the basis of 100% of its market value and is
prohibited from applying any ass~ssment ratios. The value placed upon property within the Appraisal District is subject to
review by an Appraisal Review Board, consisting of three members appointed by the Board of Directors of the Appraisal
District. The Appraisal District is required to review the value of property within the Appraisal District at least every three
years. The City may require annual review at its own expense, and is entitled to challenge the determination of appraised value
of property within the City by petition filed with the Appraisal Review Board.
Reference is made to the VTCA, Property Tax Code, for identification of property subject to taxation; property exempt or which
may be exempted from taxation, if claimed; the appraisal of property for ad valorem taxation purposes; and the procedures and
limitations applicable to the levy and collection of ad valorem taxes.
Article VIII of the State Constitution ("Article VIII") and State law provide for certain exemptions from property taxes, the
valuation of agricultural and open-space lands at productivity value, and the exemption of certain personal property from ad
valorem taxation.
Under Section 1-b, Article VIII, and State law, the governing body of a political subdivision, at its option, may grant: (1) an
exemption of not less than $3,000 of the market value of the residence homestead of persons 65 years of age or older and the
disabled from all ad valorem taxes thereafter levied by the political subdivision; (2) an exemption of up to 20% of the market
value of residence homesteads; minimum exemption $5,000. The City grants an exemption to the market value of the residence
homestead of persons 65 years of age or older of $16, 700; the disabled are also granted an exemption of $10,000.
State law and Section 2, Article VIII, mandate an additional property tax exemption 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 applies to either real or
personal property with the amount of assessed valuation exempted ranging from $1,500 to a maximum of $3,000.
Article VIII provides that eligible owners of both agricultural land (Section 1-d) and open-space land (Section 1-d-1 ), including
open-space land devoted to farm or ranch purposes or open-space land devoted to timber production, may elect to have such
property appraised for property taxation on the basis of its productive capacity. The same land may not be qualified under both
Section 1-d and 1-d-1.
Nonbusiness personal property, such as automobiles or light trucks, are exempt from ad valorem taxation unless the governing
body of a political subdivision elects to tax this property. Boats owned as nonbusiness property are exempted from ad valorem
taxation. The City does not tax nonbusiness personal property and the Lubbock Central Appraisal District collects taxes for the
City of Lubbock.
Article VIII, Section 1-j of the Texas Constitution provides for "freeport property" to be exempted from ad valorem taxation.
Freeport property is defined as goods detained in Texas for 175 days or less for the purpose of assembly, storage,
manufacturing, processing or fabrication. The exemption became effective for the 1990-91 fiscal year and thereafter unless
action to tax such property was taken prior to April 1, 1990. Decisions to continue the tax may be reversed in the future;
decisions to exempt freeport property are not subject to reversal. The City has taken action to tax freeport property.
The City and the other taxing bodies within its territory may agree to jointly create tax increment financing zones, under which
the tax values on property in the zone are "frozen" at the value of the property at the time of creation of the zone. The City
also may enter into tax abatement agreements to encourage economic development. Under the agreements, a property owner
agrees to construct certain improvements on its property. The City in tum agrees not to levy a tax on all or part of the increased
value attributable to the improvements until the expiration of the agreement. The abatement agreement could last for a period
of up to 10 years. The City has adopted a tax abatement policy and has outstanding agreements that abate certain values for
1994 as described under "Valuation, Exemptions and Debt Obligations", following.
11
Valuation, Exemptions and Debt.Obligations
1994 Market Valuation Established.by Lubbock Central Appraisal
District
Less Exemptions/Reductions at lOG% Market Value:
Residence Homestead (OVer 65 or Disabled)
Disabled Veterans Exemptions
Agricultural/Open-Space Land Use Reductions
Value lost because property is exempted from taxation under the
Property Redevelopment and Tax Abatement Act Ill
1994 Taxable Assessed Valuation
City Funded Debt Payable From Ad Valorem Taxes: l:t>
General Obligation Debt (as of 2-28-95)
The Certificates
The General Obligation Bonds <:!l
The Hotel Occupancy Tax Certificates rn
Funded Debt Payable From Ad Valorem Taxes
Less Self-Supporting Debt: <4l
Waterworks System General Obligation Debt
Sewer System General Obligation Debt
$180,818,380
3,559,645
31,766,396
10,324,437
$140,588,752
900,000
4,690,000
2,000.000
$ 27,333,157
59,773,539
$ 5,313,780,878
226,468,858
$ 5,087,312,020
$ 148,178,752
Solid Waste Disposal System General Obligation Debt 2,987,041 90,093,737
General Purpose Funded Debt Payable From Ad Valorem Taxes $ 58,085,015
Interest and Sinking Fund (as of 2-28-95) $ 715,246
Ratio Total Funded Debt to Taxable Assessed Valuation ...................................... 2.91%
1.14%
. " -.
Ratio Gener&l. Purpose Funded Debt to Taxable Assessed Valuation
1995 Estimated Population--191,02()(:!)
Per Capita 1994 Taxable Assessed Valuation-$26,632.36
Per Capita Total Funded Debt-$775.72
Per Capita General Purpose Funded Debt -$304.08
(1) Article 1066f, VTCA, permits granting of tax abatements for qualifying businesses; the City has entered into two such
agreements with McLane Foodservice-Lubbock, a division of McLane, Inc., Temple, Texas (~McLane"), an institutional
foOd service distributor. The first abatement agreement which began in the 1988 tax year covered McLane's improved real
property in the City; 1994 is the final year of this agreement; in 1995 the abated value of $4,800,284 will be added to the.
tax rolls. · The second agreement covering additional improved real property in the City began in 1994 with abated values
of $5,530,220 and will continue through 2001. For 1994 McLane's total real property market value is $11,075,054, total
abated values are $10,060,440; the taxable value of real property after abatement is $1,014,614. ..
The City has also entered mto such an agreement with J. R. Brady. The abatement covers a tract of land with a restaurant
located on a portion of the tract. 1994 market value of the property containing the restaurant is $231,81'6 and the taxable
value after abatement is $207,076, resulting in abated values of $24,740. ·
(2) The statement of indebtedness does not include outstanding $31,664,965 Electric Light and Power System Revenue Bonds
as these bonds are payable solely from the net ievenues of the System. The statement also do~ not include outstanding.
$360,000 Airport Revenue Bonds, as these bonds are payable solely from gross revenues denved from the City of Lubbock
Airport. The Waterworks System, the Sewer System and the Solid Waste Disposal System have no outstanding Revenue
Bond debt.
12
(3) $4,690,000 General Obligation Bonds, Series 1995, and $2,000,000 Tax and Hotel Occupancy Tax Surplus Revenue
Certificates of Obligation, Series 1995 are also being offered for sale on May 11, 1995.
(4) The City provides for debt service on general obligation debt issued to fund Waterworks System improvements, Sewer
System improvements and Solid Waste Disposal System improvements from surplus revenues of lhese Systems (see "Debt
Information", "Interest and Sinking Fund Budget Projection", "Computation of Self .Supporting Debt", "The Waterworks
System", "The Sewer System" and "The Solid Waste Disposal System".
"Waterworks System General Obligation Debt" includes $14,433,157 principal amount of outstanding general obligation
bonds and $12,900,000 principal amount of outstanding Combination Tax and Waterworks System Subordinate Lien
Revenue Certificates of Obligation. The City has no outstanding Waterworks System Revenue Bonds.
"Sewer System General Obligation Debt" includes $10,163,539 principal amount of outstanding general obligation bonds;
and $49,610,000 principal amount of outstanding Combination Tax and Sewer System Subordinate Lien Revenue Certificates
of Obligation. The City has no outstanding Sewer System Revenue Bonds.
"Solid Waste Disposal System General Obligation Debt" includes $2,302,041 principal amount of outstanding general
obligation debt (bonds and certificates of obligation) and $685,000 principal amount of outstanding Combination Tax and
Solid Waste DiSposal System Revenue Certificates of Obligation. The City has no outstanding Solid Waste Disposal System
Revenue Bonds.
(5) Source: City of Lubbock, Texas.
13
Taxable Assessed Valuations by Category
Taxable Aooraised Value for Fiscal Year Ende.J S!!!tember 301
1995 1994 1993
%of %of %of
Categon: Amount Total Amount Total Amount Total
Real, Residential, Single-Family $ 2, 754,503,815 51.84% $ 2,667,702,100 52.03% $ 2,479,218,812 50.80%
Real, Residential, Multi-Family 337,977,738 6.36% 318,160,996 6.21% 304,357,639 6.24%
Real, Vacant Lotsffracts 99,547,319 1.87% 100,240,564 1.96% 107,622,442 2.20%
Real, Acreage (Land Only) 45,954,067 0.86% 45,288,322 0.88% 47,932,220 0.98%
Real, Farm and Ranch Improvements 12,739,995 0.24% 11,784,081 0.23% 13,987,009 0.29%
Real, Commercial and Industrial 1,039,190,164 19.56% 1,020,680,238 19.91% 1,012,208,927 20.74%
Real, Oil, Gas and Other Mineral Reserves 15,018,920 0.28% 22,178,990 0.43% 24,858,113 0.51%
Real and Tangible Personal, Utilities 159,462,546 3.00% 152,961,630 2.98% 149,994,794 3.07%
Tap.gible Personal, Commercial and Industrial 819,836,742 15.43% 763,606,589 14.89% 717,385,702 14.7(l%
Tangible Personal, Other 9,479,831 0.18% 8,120,819 0.16% 7,690,791 0.16%
Real Property, Inventory Ul 20,069,741 0.38% 16,600,495 0.32% 151190,587 _Q.J!%
Total Appraised Value Before Exemptions $ 5,313,780,878 100.00% $ 5,127,324,820 100.00% $ 4,880,447,036 100.00%
Less: Total Exemptions/Reductions 226,468.858 216.561,776 212,696,868
Taxable Assessed Value ~ 51087,312,020 ~ 41910,763,048 ~ 4,667, 750,168
Taxable Appraised Value For .... Fiscal Year Ended Seotember 30,
40-1992 1991
%of %of
Categon: Amount Total Amount Total
Real, Residential, Single-Family $ 2,449,828,200 49.49% $ 2,413,925,206 48.95%
Real, Residential, Multi-Family 304,256,344 6.15% 313,170,381 6.35%
Real, Vacant Lotsffracts 111,914,454 2.26% 117,839,348 2.39%
Real, Acreage (Land Only) 48,816,013 0.98% 52,453,590 1.06%
Real, Farm and Ranch Improvements 13,063,630 0.26% 13,508,943 0.27%
Real, Commercial and Industrial 1,073,602,333 21.69% 1 ,076, 715,771 21.84%
Real, Oil, Gas and Other Mineral Reserves 25,638,500 0.52% 22,182,456 0.45%
Real and Tangible Personal, Utilities 147,789,832 2.98% 153,608,032 3.12%
Tangible Personal, Commercial and Industrial 755,234,901 15.26% 745,511,197 15.12%
Tangible Personal, Other 7,363,639 0.15% 6,360,698 0.13%
Real Property, Inventory (tl 12,759.249 0.26% 15,746,173 0.32%
Total Appraised Value Before Exemptions $ 4,950,267,095 100.00% $ 4,931,021,795 100.00%
Less: Total Exemptions/Reductions 208,659,315 212,233,202
Taxable Assessed Value ~ 4,741,607,780 ~ 4,718.788,593
(1) Residential inventory properties in the hands of developers or builders; each group of properties in this category is appraised on the basis of its value
as a whole as a sale to another developer or builder. This category initiated in 1988. ·
Note: Basis of assessment for all years is 100% of appraised (market) value. Taxable properties are revalued each year.
) ) ) ) ) ) ) \ ) )
Valuation and Funded Debt History
Ratio
General General
Purpose Purpose
Funded Funded General
Fiscal Taxable Tax Debt Debt to Purpose
Year Taxable Assessed Outstanding Taxable Funded
Ended Estimated Assessed Valuation at End Assessed Debt
9-30 PQI!ulation O> Valuation <2> Per CaRita of Year <3> Valuation Per C!J!ita
1986 188,283 $4,012,901,338 $ 21,313 $ 39,848,682 0.99% $ 212
1987 188,694 4,408,325,399 23,362 37,540,011 0.85% 199
1988 190,017 4,476,572,268 23,558 39,670,291 0.89% 209
1989 191,403 4,567,387 '737 23,863 43,066,998 0.94% 225
1990 186,206 4,645,914, 710 24,950 39,179,106 0.84% 210
1991 187,137 4,718,788,593 25,216 43,144,916 0.91% 231
1992 187,493 4,741,607,780 25,290 43,593,202 0.92% 233
1993 187,981 4,667' 750,168 24,831 39,585,305 0.85% 211
1994 190,038 4,910, 763,048 25,841 55,909,058 1.14% 294
1995 191,020 5,087,312,020 26,632 58,085,015 (4) 1.14% 304
(1) Source: City of Lubbock, Texas, except 1990 is U.S. Census.
(2) Basis of assessment for all years 100% of market value. All taxable property is revalued each year.
(3) Funded Tax Debt less Self-supporting Funded Tax Debt. Derivation of General Purpose Funded Tax Debt is:
Fiscal
Year
Ending
9-30
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995(4)
Funded
Tax Debt
Outstanding
at End
of Year
$ 79,889,070
78,279,070
82,958,752
86,898,752
79,088,752
95,783,752
131,813,752
137,358,752
152,693,752
148,178,752
Less:
Self-supporting
Funded Tax
Debt
$ 40,040,388
40,739,059
43,288,461
43,831,754
39,909,646
52,638,836
88,220,550
97,773,447
96,784,694
90,093,737
General
Purpose
Funded
Tax Debt
Outstanding
at End
of Year
$ 39,848,682
37,540,011
39,670,291
43,066,998
39,179,106
43,144,916
43,593,202
39,585,305
55,909,058
58,085,015
Note: For all years Self-supporting Debt includes Waterworks System and Sewer System General Obligation Debt. 1991-1995
includes Solid Waste Disposal System General Obligation Debt. See "Valuation, Exemptions and Debt Obligations".
(4) Anticipated.
15
Property within the City is assessed as of January 1 of each year (except for business inventory which may, at the option of the
taxpayer, be assessed as of September 1); taxes become due October 1 of the same year, and become delinquent on February 1
of the following year. Split payments are not permitted. Discounts are not allowed. Taxpayers 65 years of age or older are
permitted by State law to pay taxes on homesteads in four installments with the first due on February 1 of each year and the
final installment due on August 1.
Charges for penalty and mterest on the unpaid balance of delinquent taxes are made as follows:
Month Penaln:; Interest Total
February 6% 1% 7%
March 7% 2% 9%
April 8% 3% 11%
May '9% 4% 13%
June 10%. 5% . 15%
July 12% 6% 18%
After July, penalty remains at 12%, and interest increases at the rate of 1% each month. In addition, if an account is delinquent
in July, a 15% attorney's collection fee is added to the total tax penalty and interest charge. Under certain circumstances, taxes
which become delinquent on the homeStead of a taxpayer 65 years old or older incur a penalty of 8% per annum with no
additional penalties or interest assessed. Iri general, property subject to the City's lien may be sold, in whole or in parcels,
pursuant to court order to collect the amounts due the City and all other taxing entities. Federal law does not allow for the
collection of penalty and interest against an estate in bankruptcy. Federal bankruptcy law provides that an automatic stay of
action by creditors and other entities~ including governmental units, goes into effect with the filing of any petition in bankruptcy.
The automatic stay prevents governmental units from foreclosing on property and prevents liens for post-petition taxes from
attaching to property and obtaining secured creditor statUs unless, in either case, an order lifting the stay is obtained from the
bankruptcy court. In many cases post-petition taxes are paid as an administrative expense in bankruptcy or by order of the
bankruptCy corirt.
The Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), enacted on August 9, 1989, contains
certain provisions which affect the time for protesting property valuations, the fixing of tax liens and the collection of penalties
and interest on delinquent taxes on real property owned by the FDIC and the RTC.
Under FIRREA, real property held by the FDIC or RTC is still subject to ad valorem taxation, but (i) no real property of the
FDIC or RTC is subject to foreclosure or sale without the consent of the FDIC or RTC and no involuntary lien shall attach to
such property, (ii) the FDIC or RTC shall not be liable for any penalties or fines, including those arising from the failure to
pay any real property tax when due and (iii) notwithstanding the failure of a person to challenge an appraisal in accordance with
State law, such value will be determined as of the period for which such tax is imposed.
16
Ten Largest Taxpayers
1994 % ofTotal
Taxable 1994 Taxable
Assessed Assessed
Name of Taxl!a~er Nature of PrQI!effi! Valuation Valuation
Texas Instruments Incorporated Electronics Manufacturer . $ 83,059,510 1.63%
South Plains Mall Regional Shopping Mall 79,345,876 1.56%
Southwestern Bell Telephone Company Telephone Utility 76,752,333 1.51%
Southwestern Public Service Company Electric Utility 44,466,763 0.87%
Plains Co-op Oil Mill Agricultural Processing 29,749,307 0.58%
Methodist Hospital Hospital 24,242,753 0.48%
FJeming Companies Incorporated Wholesale Groceries 23,675,511 0.47%
Eagle-Picher Industries Heavy Equipment
Manufacturing 22,980,142 0.45%
H. A. Sessions Commercial Property
and Other Real Estate 19,150,589 0.38%
First National Bank Ol Bank 16,520,661 0.32%
$419,943,445 8.25% =
(1) Now Norwest Bank Texas, National Association.
Tax Rate Limitation
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 ad valorem tax debt within the limits
prescribed by law. Article XI, Section 5, of the Texas Constitution is applicable to the City, 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.
By each September 1 or as soon thereafter as practicable, the City Council adopts a tax rate per $100 taxable value for the
current year. The tax rate consists of two components: (1) a rate for funding of maintenance and operation expenditures, and
(2) a rate for debt service.
Under the Tax Code:
The City must annually calculate and publicize its "effective tax rate" and "rollback tax rate". The City Council may not adopt
a tax rate that exceeds the lower of the rollback tax rate or 103% of the effective tax rate until it has held a public hearing on
the proposed increase following notice to the taxpayers and otherwise complied with the Tax Code. If the adopted tax rate
exceeds the rollback tax rate the qualified voters of the City by petition may require that an election be held to determine
whether or not to reduce the tax rate adopted for the following year to the rollback tax rate.
"Effective tax rate" means the rate that will produce last year's total tax levy (adjusted) from this year's total taxable values
(adjusted). • Adjusted" means lost values are not included in the calculation of last year's taxes and new values are not included
in this year's taxable values.
"Rollback tax rate" means the rate that will produce last year's maintenance and operation tax levy (adjusted) from this year's
values (adjusted) from this year's values (adjusted) multiplied by 1.08 plus a rate that will produce this year's debt service from
this year's values (unadjusted) divided by the anticipated tax collection rate.
The Tax Code provides that certain cities and counties in the State may submit a proposition to the voters to authorize up to an
additional one-half cent sales tax on retail sales of taxable items. If the additional tax is levied, the effective tax rate and the
rollback tax rate calculations are required to be offset by the revenue that will be generated by the sales tax in the current year.
In January, 1995, voters in the City approved an additional one-eighth cent sales tax; collection of the tax will begin in October,
1995.
Reference is made to the Tax Code for definitive requirements for the levy and collection of ad valorem taxes and the calculation
of the various defined rates.
17
Debt Service Requirements (New Issues)
Fiscal
Year
Ending The General Obligation Bond~ (ll The Hotel Occueanci, Tax Certificstes 11l The Airoort Certificates Combined R!!!juirements
~ Princieal Interest Total Princi{!al Interest Total Princieal Interest Total Princieal Interest Total
1996 $ 230,000 $ 350,598 $ 580,598 $ 265,000 $132,580 $ 397,580 $ 150,000 $ 59,850 $ 209,850 $ 645,000 $ 543,028 $ 1,188,028
1997 230,000 265,045 495,045 310,000 88,480 398,480 170,000 37,905 207,905 710,000 391,430 1,101,430
1998 235,000 250,863 485,863 330,000 70,560 400,560 180,000 27,930 207,930 745,000 349,353 1,094,353
1999 235,000 236,528 471,528 345,000 51,660 396,660" 195,000 17,243 212,243 775,000 305,431 1,080,431
~11® ~~.!JPQ 222,193 45?,m 365,000 31,780 396,780 205,000 5,843 210,843 8Q5,()()() . 259!81~ 1,064,816
2001 235,000 207,858 442,858 385,000 10,780 395,780 620,00o 218,638 "'il38;638
2002 235,000 193,523 428,523 235,000 193,523 428,523
2003 235,000 179,188 414,188 235,000 179,188 414,188
2004 235,000 164,853 399,853 235,000 164,853 399,853
2005 235,000 150,518 385,518 235,000 150,518 385,518
2006 235,000 136,183 371,183 235,000 . 136,183 371,183 '='
2007 235,000 121,848 356,848 235,000 121,848 356,848 tlj
In
2008 235,000 107,513 342,513 235,000 107,513 342,513 ""'!
2009 235,000 93,178 328,178 235,000 93,178 328,178 -.... 2010 235,000 78,843 313,843 235,000 78,843 313,843 ~
00 ~ 2011 235,000 64,508 299,508 235,000 64,508 299,508
2012 235,000 50,173 285,173 235,000 50,173 285,173 ~ 2013 235,000 35,838 270,838 235,000 35,838 270,838 ""'!
2014 235,000 21,503 256,503 235,000 21,503 256,503 -0
2015 235,000 7,168 242,168 235,000 7,168 242,168 z
$ 4,690,000 $2,937,922 $7,627,922 $ 2,000,000 $385,840 $2,385,840 $ 900,000 $ 148,771 $ 1.048,771 $ 7,590,000 $ 3,472,533 $ 11,062,533
(1) The City is also offering for sale on May 11, 1995, these $4,690,000 General Obligation Bonds, Series 1995, and these $2,000,000 Tax and Hotel Occupancy Tax Surplus Revenue
Certificstes of Obligation, Series 1995.
Interest on the General Obligation Bonds has beencalculated at 6.10% for purposes of illustration.
Interest ~n the Hotel Occupancy Tax Certificstes has been calculated at 5.60% for purposes of illustration.
Interest on the Airport Certificates has been cslculated at 5. 70% for purposes of illustration.
) ) ) ) ) ) ) )
) ) ) ) ) ) ) )
Division of Debt Service Requirements;
Less:
Solid
Less: Less: Waste
Waterworks Sewer Disposal General
Fiscal System System System Purpose
Year General General General General
Ending Combined ~uirem1mts . Obligation Obligation Obligation Obligation
9-30 Princi);!al Interest Total R~uirements R~uirements R~uirements R~uirements
1995 $ 11,515,000') $ 8,036,549 $ 19,551,549 $4,823,457 $6,376,959 $755,834 $7,595,299
1996 12,920,000 7,820,886 20,740,886 4,546,059 6,911,716 714,141' 8,568,970
1997 12,694,434 7,106,639 19,801,073 4,290,392 6,712,336 677,842 8,120,503
1998 12,445,076 6,385,838 18,830,914 4,066,121 6,513,377 484,895 . 7,766,521
1999 12,266,493 5,683,134 17,949,627 3,795,326 6,284,615 463,908 7,405,778
2000 9,754,986 7,007,452 16,762,438 3,419,488. 6,037,647 445,703 6,859,600
2001 9,154,442 6,031,521 15,185,963 3,119,722 5,465,497 418,312 6,182,432
2002 8,328,639 4,882,036 13,210,675 2,639,351 5,162,989 287,662 5,120,673
2003 7,844,682 3,982,746 11,827,428 2,296,807 4,906,572 3,440 4,620,609
2004 6,795,000 3,112,604 9,907,604 1,741,752 4,676,720 3,489,132
2005 6,790,000 2,749,628 9,539,628 1,675,860 4,508,914 3,354,854
2006 6,775,000 2,383,877 9,158,877 1,596,820 4,339,910 3,222,147
2007 6,755,000 2,017,777 8,772,777 1,518,710 4,170,277 3,083,790
2008 6,110,000 1,670,311 7,780,311 1,216,791 3,655,924 2,907,596
2009 5,845,000 1,349,261 7,194,261 1,130,703 3,507,335 2,556,223
2010 5,285,000 1,051,589 6,336,589 977,024 3,259,616 2,099,949
2011 5,290,000 775,771 6,065,771 926,801 3,182,255 1,956,715
2012 4,075,000 540,806 4,615,806 90,~52 2,883,024 1,642,130
2013 4,045,000 342,607 4,387,607 87,356. 2,776,975 1,523,276
2014 4,045,000 145,510 4,190,510 84,059 2,645,514 1,460,937
2015 960,000 23,481 983,481 741,313 242,168
$159,693,752 $73,100,023 $232,793! 775 $44,043,251 .. $94,719.485 $4,251,737 $89,779,302
(1) This $11,515,000 principal was paid February 15, 1995.
20
)
N ....
) ) ) ) ) ) . ., )
Assessed Valuations, Tax Rates, Direct and Overlapping Funded Debt Payable from Ad Valorem Taxes and Authorized But Unissued Bonds of Overlapping
Taxing Jurisdictions
1994-95 Total City's Authorized
Taxable ·1994-95 Funded Estimated Overlapping But Unissued
Assessed Tax Debt As of % Funded Debt Debt As of
Taxing 1 urisdiction Valuation Rate 2-28-95 Arolicable As' of 2-28-95 2-28-95
City of Lubbock $ 5,087,312,020 $0.64000 $ 58,085,015(1) 100.00% $ 58,085,015 $ 10,247,000
Lubbock Independent School District 4,629' 130,050 1.47500 67,055,00()2> 98.60% 66,116,230 18,020,2753)
Lubbock County 6,033,971,324 0.17117 3,040,000 84.44% 2,566,976 -o-
Lubbock County Hospital District 6,033,971,324 0.10499 ..().. 84.44% -Q-..()..
High Plains U ndergrourid Water Conservation
District No. 1 6,033,971,324 0.00840 ..().. 84.44% -0-..()..
Frenship Independent School District 497,305,665 1.47000 33,538,739 64.91% 21,769,995 15,050,000
Idalou Independent School District 105,640,124 1.45043 2,620,000 1.29% 33,798 -0-
Lubbock-Cooper Independent School District 174,166,033 1.47600 4,509,55,5<4) 15.20% 685,452 -0-
New Deal Independent School District 76,048,312 1.50000 ..().. 0.07% ..().. ..()..
Roosevelt Independent School District 92,205,681 1.50000 ..().. 5.11% ..().. ..()..
Total Direct and Overlapping Funded Debt .•..•..•......•..........•.•••••.•....•.•.• $149,257,466
Ratio of Direct and Overlapping Funded Debt to 1994 Taxable Assessed Valuation • • 10 • * ..................... 2.93%
Per Capita Overlapping Funded Debt • . • . . . . . • . . . • . . • • . • . . • . • . . • . . . . . . . • . • • . . . . . . . • • . • . . . $781.37
(1) General purpose general obligation debt.
(2) Adjusted for planned sale on May 3, 1995, of $12,000,000 School Building Bonds and $5,320,000 Refunding Bonds, totaling $17,320,000 Bonds.
(3) Includes $100,000 Bonds authorized in 1959 which the District does not plan to issue.
(4) The District will conduct an election to authorize the issuance of $4,500,000 School Building Bonds on May 6, 1995.
Expenditures of the various taxing bodies within the territory of the City are paid out of ad valorem taxes levied by these taxing bodies on properties within the City.
These political taxing bodies are independent of the City and may incur borrowings to finance their expenditures. This statement. of direct and estimated overlapping
ad valorem tax bonds was developed from information contained in "Texas Municipal Reports" published by the Municipal Advisory Council of Texas and from
information furnished by the Lubbock Central Appraisal District. Except for the amounts relating to the City, the City has not independently verified the. accuracy or
completeness of such information, and no person should rely upon such information as being accurate or complete. Furthermore, certain of the entities listed may have
issued additional bonds since the dste stated above, and such entities may have programs requiring the issuance of substantial amounts of additional bonds the amount
of which cannot be determined. This table reflects the estimated share of overlapping funded debt of the City.
)
Interest and Sinking Fund Bu~ Projection
General Obligation:llJebt Service Requirements, Fiscal Year Ending 9'-30-95
Fiscal Agent, Tax C:ollection and Other Uses
Total Requirements
Sources of Funds
Interest and Sinking Funds (at beginning of Fiscal Year)
Budgeted Ad Valorem Tax Receipts
Budgeted Transfers From:
Water Fund <t>
Sewer Fund (1)
Solid Waste Fund'<1l
Airport Fund
Budgeted Interest Eiuned
Budgeted appropriation from available funds
Total Sources of Funds
Estimated Balance, 9-30.:95
(1) See "Computation of Self-supporting Debt".
Computation of Self-Supporting Debt
The Waterworks System (1)
$19,551,549
120,385
$19,671,934
$ 268,630
9,162,809
3,449,991
4,309,112
755,834
468,861
750,000
775,266
$19.940,503
$ 268,569
Net System Revenue Available, Fiscal Year Ended 9-30-94 .••.•••.•.•.•••••••...••••..•..
Less: Revenue Bond Requirements, Fiseal Year Ending 9-30-94 .••.•...••••.•.•••..••.•....
Balance Available for Other Purposes •••••.••.••..••..•• " •••••.•.•••••....•••.••••
System General Obligation Debt Requirements, Fiscal Year Ending 9-30-94 .••.•••....••....•..••
Balance .•.•••.•.•••••..••••••••.•.•.•• • • • · · • · • • • • • · · • · • • · • • · • · · · • • • • · ·
Percentage of System General Obligation Debt Self-supporting •.•••.•.••.••••..••••.•.••••.
$12,814,746
~
$12,814,746
4,823,457
$ 7,991,289
100.00%
(1) Through Fiscal Year Ended 9-30-91 it"was the City's policy each Fiscal Year to transfer from Water Enterprise Fund surplus
to the General Fund an amount at least equivalent to debt service requirements on Waterworks System General Obligation Debt.
Beginning with Fiscal Year Ending 9-30-92 the City budgeted and commenced a multi-year planned shift to direct support of
Waterworks System General Obligation Debt by transfer from Water Enterprise Fund surplus to the General Obligation Interest
and Sinking Fund; for Fiscal Year Ending 9-30-95 $3,449,991 is a budgeted transfer to the Interest and Sinking Fund for
Waterworks System General Obligation ·debt service. This staged shift is anticipated to continue through Fiscal Year Ending
9-30-96 with total Waterworks System General Obligation debt service for each year thereafter to be provided by direct transfer
from Water Enterprise Fund surplus.
The multi-year staged shift is necessary to avoid exceeding the City's "rollback tax rate" (see "Tax Rate Limitation") as a portion
of the Interest and Sinking Fund Tax Rate formerly levied for Waterworks System General Obligation debt service is shifted
each year to the General Fund tax rate. The effect of this realloeation, beginning with Fiscal Year Ending 9-30-92, can be seen
in the distribution of the Tax Rate under ~Tax Rate, Levy and Collection History" and in "Interest and Sinking Fund Budget
Projection".
The City has no outstanding revenue bonds payable from a lien on the net revenues of the Waterworks System.
See "The Waterworks System", page A-7.
' I I.
22
The Sewer System (1)
Net System Revenue Available, Fiscal Year Ended 9·30-94 .••• , •••.••• ,, ....•••••••..•.• , , .
Less: Revenue Bond Requirements, Fiscal Year Ending 9·30-95 ; . ; •...•...•• , ......... , .•..•
$9,440,423
.Q.
Balance Available for Other Purposes • . •. . • . . . , . , • • • • • • . , , . . . • • • . • . , , . • . • • • • • • • . . •
System General Obligation Debt Requirements, Fiscal Year Ending 9·30-95 •••• , •.••.••• • ••.••.•
Balance .•.........•..........•••...... , ...•••.. , , ••....•.• , ....... , , •
$9,440,423
6,376,959
$3,063,064
Percentage of System General Obligation Debt Self.Supporting . • , , • • , • • . • . . , • , • • • . • . . . . • . • . 100.00%
(1) State Revolving Fund ("SRF") Loans
The City has received three loans totaling $50,600,000 from the Texas Water Development Board ("TWDB") under the SRF
loan program to finance major wastewater treatment and disposal improvements. Three separate series of Combination Tax and
Sewer System Subordinate Lien Revenue Certificates of Obligation (the "Sewer System Certificates") were delivered to TWDB
to evidence these loans as follows:
Sewer As of 2·28-95*
System Project Principal
Loan Certificate Loan Closing Completion Outstanding Maturity
Project Amount Series Date Date Princmai (Que 2-15}
A $ 1,655,000 1991 January, 1992 1993 $ 1,415,000 1996-2012
B 34,520,000 1992 June, 1992 1994 32,795,000 1996-2014
c 14,425,000 1993 June, 1993 July, 1995** 14,425,000 1996-2015
$ 50,600,000 $48,635,000
* Principal of each series of Certificates matures in an approximately equal amount each year over the years of principal
maturity shown. Debt service requirements on these Sewer System Certificates is being paid from System net revenues by direct
deposit to the General Obligation Interest and Sinking Fund. For Fiscal Year Ending 9-30-95 debt service on the Sewer System
Certificates is $4,309,112 which is a budgeted transfer to the Interest and Sinking Fund.
** Anticipated.
Other Sewer System General Obligation Debt
For Sewer System General Obligation debt service other than for the SRF loans discussed above it bas been the City's policy
each Fiscal Year to transfer from Sewer Enterprise Fund surplus to the General Fund an amount at least equivalent to debt
service requirements on this Sewer System General Obligation Debt; for Fiscal Year Ending 9·30-95 this debt service is
$2,067,847.
Beginning in Fiscal Year Ending 9-30-96, similarly to that described under "The Waterworks System", above, a staged shift
to direct support of this debt service will be initiated from Sewer Enterprise Fund surplus to the General Obligation Interest and
Sinking Fund; this staged shift is anticipated to continue through Fiscal Year Ending 9-30-97 with total Sewer System General
Obligation debt service for each year thereafter to be provided by direct transfer from Sewer Enterprise Fund surplus.
The City bas no outstanding revenue bonds payable from a lien on the net revenues of the Sewer System.
See "The Sewer System", page A-11.
23
The Solid Waste Disposal System1(l)
Net System Revenue Available, Fii.cal Year Ended 9-30-94 •.••......•..•••...•.•...•.•.•••
Less: Revenue Bond Requirementsj.Fiscal Year Ended 9-30-94 •..•...•....••..••....•.......
Balance Available for Other Pu~poses .............................................. .
System General Obligation Debt Requirements, Fiscal Year Ended 9-30-95 •.•..•..•••.••.•..•...
Balance ••.••••.•.•...•..•.•.•....•.........••..........••..•...••.•.•...
$4,940,976
-0-
$4,940,976
755.834
$4,185,142
Percentage of System General ObHgation Debt Self-Supporting . . . . . . . . . . . . . • • • . . • . . . . . • • • • • . . . 100.00%
(1) Each Fiscal Year the City transfers from net revenues of the Solid Waste Ente~prise Fund to the General Obligation Interest
and Sinking Fund an amount equal !to debt service requirements on System general obligation debt.
See "The Solid Waste Disposal S~tem", page A-13.
24
:--
Authorized General Obligation Bonds
Amount . Amount
Date Amount Heretofore Being Unissued
Pumose Authorized Authorized Issued Issued Balance
Waterworks System 10-17-87 $ 2,810,000 $ 200,000 $ -0-$ 2,610,000
Sewer System 5-21-77 . 3,303,000 2,175,000 -0-1,128,000
Street Improvements 5-1-93 10,170,000 5,156,000 -0-5,014,000
Library 5-1-93 2,780,000 100,000 2,680,000 -0-
Parks 5-1-93 5,385,000 2,350,000 1,540,000 1,495,000
Fire Department* 5-1-93 470,000 -0-470,000 -0-
~24,918,000 !9,981,000 ~41690!000 ~10,247,000
* Emergency traffic control system improvements.
Anticipated Issuance of Authorized General Obligation Bonds and Other Obligations
1996 1997 1998 Total
Street Improvements $2,242,000 $1,800,000 $ 972,000 $5,014,000
Parks 990,000 320,000. 185,000 . 1,495,000
~3,232,000 ~2!120,000 !1,1571000 ~6,5091000
Note: The City has no present plans for the $ale and issuance of authorized but unissued $2,610,000 Waterworks System Bonds
and $1,128,000 Sewer System Bond~ or for the authorization, sale and issuance of other general obligation debt.
Funded Debt Limitation
There is no direct funded debt limitation in the City Charter or under State law. The City operates under a Home Rule Charter
that limits the maximum tax rate, for all City purposes, to $2.50 per $100 Assessed Valuation. Administratively, .the Attorney
General of the State of Texas will permit allocation of $1.50 of the Si.SO maximum tax rate for general obligation debt service.
25
Other Obligations
(1) The City has entered into lea8e agreements for th~ purpose of acquiring certain properties and equipment. As of 2-28-95
capital leases were as 'follows:
Payable from:
Enterprise Fund·
Solid W~Scraper!
Internal Service Fund
· Computer Equipment
Pension Funds
1995 1996 1997 ! Interest
$ 39,019 $ 5,574 $ -0-' $ (1 ,252)
$217,696 $373,194 ' $715,288 $(108,946)
Balance
Outstanding
$ 43,341
$1,197,232
Texas Municipal Retirement System •.• All permanent, full time City employees who are not firefighters are covered by the
Texas Municipal Retirement System.· The System. is an' agent multiple~einployer public' employee retirement system 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 Seeurity. All City employees except firefighters are
covered by Social Security. Options. offered under the System, and 'adopted by the City, include current, prior and antecedent
service credits, ten year vesting, updated service credit, occupational disability benefits and survivor benefits for the spouse of
a vested employee. An employee who retires receives an annuity based on the amount of the employees contributions over-
matched two for one by the City. Employee'contribution rate is 6% of gross sa!.ary~ The,City•s contribution rate is calculated
each year using actuarial techniques applied to experience. The 1994 contribution rate \vas 10.42%; the 1995 contribution rate
is 11.48%. Enabling statutes prohibit any member city from adopting options which impose liabilities that cannot be amortized
over 25 years within a specified statutory rate. , ·
On December31, 1993, assetS held by the System, not including those of the Supplemental Disability F~nd which is "pooled';,
for the City of Lubbock were $95,946,540.' Unfund~ accrued liabilities on December :31, 1993, were $25,547,239, 'which is
being amortized over a 25 year period beginning Jaluiary' 1995. Totitl contributions by the CitY to ihe System for Calendar Year
1993 were $4,579,094.
Firemen's Relief and Retirement Fund .•. City of Lubbock firefighters 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
firefighters, by vote of the department, in 1941. Firefighters are not covered by Social Security.
The Fund is governed by seven trustees, three firefighters, two outside trustees {appointed by the other trustees), the Mayor or
his representative and the chief financial officer or his representative. Execution of the act is monitored by the Firemen's
Pension Commissioner, who is appointed by the Governor.
Benefits of retired firemen are determined on a "formula • or a "final salary" plan. Actuarial reviews are performed every three
years, and the fund is audited annually. Firefighters contribute 11 % 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 fighfighter'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 contribution
rate for 1995 is 15.42%.
As of December 31, 1993, unfunded liabilities were $15,006,685 which is being amortized over a 28 year period beginning
January 1, 1993. Contributions by the City to the Fund for Calendar Year 1993 were $1,300,725.
* Sources: Texas Municipal Retirement System, Comprehensive Annual Financial Report for Year Ended December 31, 1993.
City of Lubbock, Texas.
26
.-
) ) l ) ) ) ) l ) ) )
General Fund Revenues and Expenditures
Fiscal Years Ended Smtember 30,
Revenues Budget
1995 1294 1993 1992 1991 1990
Ad Valorem Taxes $21,315,161 $ 20,211,459 $ 18,780,657 $17,689,820 $16,213,919 $ 14,911 ,385
Sales Taxes 19,000,000 19,467,903 17,731,784 16,386,350 15,907,117 15,530,468
Franchise Taxes 5,040,827 5,247,351 4,498,921 4,196,663 3,488,691 3,377,870
Miscellaneous Taxes 1,035,000 631,158 561,774 616,722 667,478 712,203
Licenses and Permits 960,728 1,038,772 882,878 753,667 768,924 719,979
Intergovernmental 895,634 1,310,604 1,280,182 1,286,662 1,227,449 1,511,791
Charges for Services 2,498,516 2,326,521 2,160,504 2,287,530 2,081,955 2,243,428
Fines 2,423,000 2,141,811 2,421,749 2,152,145 2,378,986 2,489,471
Miscellaneous 2,598,130 2,738,708 2,412,629 2,905,332 4,042,185 3,222,731 l'!j
Operating Transfers (in) 13,120,198 13,810,921 14,044,552 13,796,281 13,890,216 13,175,352 -~ Total Revenues and Transfers (in) $68,887,194 $68,925,208 $64,775,630 $62,071,172 $60,666,920 $57,894,678 ~ -Expenditures > I:"'
!j General Government {1) $ 2,731,960 $ 2,664,896 $ 2,382,947 $ 2,412,645 $ 2,449,344 -Financial Services (1) 2,071,418 2,065,725 2,023,360 1,910,799 1,815,589 ~
Management Services (1) 1,989,477 2,037,481 2,368,479 2,579,610 2,500,230 ~
Development Services (1) 6,662,148 6,397,086 6,593,869 6,274,866 5,831,381 ~ Public Safety and Services (1) 47,253,201 45,611,706 44,624,486 42,247,744 39,968,470
Non-Departmental (l) 661,181 648,242 11,203 29,532 265,108 -0
Operating Transfers (out) (1l 5.194,276 3,766,698 3,113,501 4,642,478 4,304,580 z
Total Expenditures and Transfers (out) $68,837,817 $66,563,661 $ 63,191.834 $61,117.845 $60,097,674 $57,134,702
Excess of Revenues and Transfers (in) Oyer
Expenditures {out) $ 49,377 $ 2,361,547 $ 1,583,796 $ 953,327 $ 569,246 $ 759,976
Residual· Equity Transfer ..().. ..().. ..().. ..().. (64,212) (22,969)
Fund Balance at Beginning of Year 14.746,780 12.385.233 10.801,437 9.848,110 9.343.076 8,606,069
Fund Balance at End of Year $14,796,157 $14,746,780 $ 12,385,233 $ 10,801,437 $ 9,848,110 $ 9,343,076
Less: Reserves and Designations (1,105,248)<'1) {1,056,628) {1,254,118) (1,27 4,992) (1,769,507) {1,706,674)
Undesignated Fund Balance $ 13.690.909 $1J.690.152 $ 11.131,115 $ 9,526.445 $ 8,078,603 $ 7,636,402
(1) Expenditures have been reclassified for Fiscal Year Ending 9-30..95 and are not comparable to prior years classifications. Reference is made to the City's
1994-95 Budget for these classifications.
(2) Estimated.
Municipal Sales Tax History
The City has adopted the Municipal Sales and Use Tax Act, VATCS, Tax Code, Chapter 321, which grants the City the power
to impose and levy a 1% Local Sales and Use Tax within the City; the proceeds are credited to the General Fund and are not
pledged to the payment of the Bonds. In addition, as noted under "Tax Rate Limitation", in January, 1995, voters approved
the levy of a one-eighth cent sales and use tax as authorized by VATCS, Tax Code, Chapter 323, as amended; collection will
commence in October, 1995; proceeds of the one-eighth cent sales tax are for the use and benefit of the City to replace property
tax revenues lost as a result of the adoption of the tax and are not pledged to the payment of the Bonds. Collections and
enforcements are effected through the offices of the Comptroller of Public Accounts, State of Texas, who remits the proceeds
of the tax, after deduction of a 2% service fee, to the City monthly. Revenue from the 1% Local Sales and Use Tax, for the
years shown, has been:
Fiscal
Year %of Equivalent of
Ended Total Ad Valorem Ad Valorem Per
9-30 Collected Tax Le:o:: Tax Rate Cai!ita*
1985 $13,310,105 51.95% $0.341 $ 70.94
1986 12,953,236 53.80% 0.323 68.80
1987 12,563,905 47.50% 0.285 66.58
1988 13,960,077 51.14% 0.312 73.47
1989 15,059,072 51.52% 0.330 78.68
1990 15,530,468 52.23% 0.334 83.40
1991 15,907,117 52.67% 0.337 85.00
1992 16,386,350 54.06% 0.346 87.40
1993 17,731,784 59.35% 0.380 94.33
1994 19,467,903 62.13% 0.396 102.44
*Based on estimated population for all years except 1990 which is U.S. Census.
Financial Policies
Basis of Accounting • . . The accounting policies of the City conform to generally accepted accounting principles of the
Governmental Accounting Standards Board and program standards adopted by the Government Finance Officer's Association
of the United States and Canada ("GFOA "). The GFOA has awarded a Certificate of Achievement for Excellence in Financial
Reporting to the City of Lubbock for each of the fiscal years ended September 30, 1984 through September 30, 1993. The
City's current report has been submitted to GFOA to determine its eligibility for another Certificate.
General Fund Balance ... The City's objective is to achieve and maintain a General Fund balance equivalent to two months
operating cost of the General Fund Budget. This should be sufficient to provide financing for necessary projects, unanticipated
contingenCies, and fluctuations in anticipated revenues.
Debt Service Fund Balance . . . A reasonable debt service fund balance is maintained in order to compensate for unexpected
continge~cies.
Budgetary Procedures ••. The City follows these procedures in establishing operating budgets:
1) Prior to August 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year
commencing the following October 1. ·The operating budget includes proposed expenditures and the means of financing
them.
2) Public hearings are conducted to obtain taxpayer comments.
3) Prior to October 1, the budget is legally enacted through passage of an ordinance.
4) The City Manager is authorized to transfer budgeted amounts between departments and funds. Expenditures may not
legally exceed budgeted appropriations at the fund level. ·
5) Formal budgetary integration is employed as a management control device during the year for the Convention and
Tourism, Criminal Investigation, and Capital Projects Funds. Budgets are adopted on an annual basis. Formal budgetary
integration is not employed for Debt Service Funds because effective budgetary control is alternatively achieved through
general obligation bond indenture and other contract provisions.
28
6) The Budget for the General Fund is adopted on a basis consistent with generally accepted accounting principles
("GAAP").
7) Appropriations for the General Fund lapse at year end. Unencumbered balances for the Capital Projects Funds continue
as authority for subsequent period expenditures.
8) Budgetary comparison is • presented for the General Fund in the combined financial statement section of the
Comprehensive Annual Financial Report.
The City has also received the GFOA' s award for Distinguished Budget Presentation for the following budget years: October 1,
1983-88 and October 1, 1990-93. The City has submitted the current budget to the GFOA to determine its eligibility for another
certificate.
Insurance •.. Bxcept for Airport liability insurance, the City is self-insured for liability, workers' compensation, and health
benefits coverage. Insurance policies are maintained with large deductibles for fire and extended coverage and boiler coverage.
An Insurance Fund has been established in the Internal Service Fund to account for insurance programs and budgeted transfers
are made to this fund based upon estimated payments for claim losses.
At 9-30-94 the reserves had the following balances:
Reserve for self-insurance -health
Reserve for self-insurance -other than health
INVESTMENTS
$2,075,335
$3,989,332
Fund Investments. The City invests in investments authorized by Texas law in accordance with written investment policies
that are approved by the Investment Review Committee.
The City Council has delegated responsibility for the investment authority to the City Treasurer who is also the Director of
Support Services. The City Treasurer chairs the Investment Review Committee which also includes the Director of Electric
Utilities, Director of Management Services, Chief Accountant and Assistant Treasurer. Policy changes and updates are approved
by the committee. The committee reviews the performance of the investment portfolio on a monthly basis.
Both state law and the City's investment policies are subject to change.
Legal Investments. Under current Texas law, the City is authorized to invest in:
1) Obligations of the United States or its instrumentalities;
2) Direct obligations of the State of Texas or its agencies;
3) Other obligations, the principal and interest on which are unconditionally guaranteed by the State of Texas or the United
States (or its agencies or instrumentalities);
4) Obligations of states, agencies, counties, cities, and other political subdivisions of any state having been rated as to
investment quality by a nationally recognized investment rating firm and having received a rating of not Jess than A· or its
equivalent;
5) Certificates of Deposit issued by state and national banks domiciled in the state that are guaranteed or insured by the FDIC,
or its successor; or secured by obligations that are described above, which are intended to include all direct (federal) agency
or instrumentality issued mortgage-backed securities rates AAA by a nationally recognized rating agency or by Article
2529b-1, v.t.c.s., and that have a market value of not less than the principal amount of the certificates (or in any other
manner and amount provided by law for deposits of the investing entities);
6) Certificates of Deposit issued by savings and loan associations domiciled in this state that are guaranteed or insured by the
FSLIC, or its successor, or secured by obligations that are described above, which are intended to include all direct federal
agency or instrumentality issued mortgage-backed securities that have a market value of not less than the principal amount
of the certificates or in any other manner and amount provided by law for deposits of the investing entities;
7) Prime Domestic Bankers' Acceptances with a stated maturity of 270 days or less from the date of its issuance that will be,
in accordance with its terms, liquidated in full at maturity, that is eligible collateral for borrowing from a Federal Reserve
Bank, and that is accepted by a bank organized and existing under the laws of the United States or any state, the short-term
obligations of which (or of a bank holding company of which the bank is the largest subsidiary) are rated at least A-1, P-1,
or the equivalent by at least one nationally recognized credit rating agency.
8) Commercial paper with a stated maturity of 270 days or less from the date of its issuance that either: is rated not less than
A-1, P-1, or the equivalent by at least two nationally recognized credit rating agencies; or is rated at least A-1, P-1, or its
29
equivalent by at least one nationally recognized credit rating agency and is fully secured by an irrevocable letter of credit
issued by a bank organized and existing under the laws of the United States or any state thereof;
9) Fully collateralized direct repurchase agreements having a defined termination date, secured by direct obligations of the
United States or its agencies and instrumentalities, pledged with a third party selected or approved by the political entity,
and placed through a primary government securities dealer, as defined by the Federal Reserve or a bank domiciled in this
State. "Repurchase agreement" means a simultaneous agreement to buy, hold for specified time, and then sell back at a
future date, obligations described above, the principal and interest of which are guaranteed by the United States, or any of
its agencies, in market value of not less than the principal amount of the funds disbursed. The term includes direct security
repurchase agreements and reverse security repurchase agreements.
" Fully collateralized repurchase agreements shall in addition to the wording of the act be limited as follows: repurchase
agreements shall be collateralized at 102% of the money value of the transaction at the time of purchase and in no case
should the collateral value be allowed to go below 101%, the maturity of the collateral security shall be no longer than ten
years, and the market value of the collateral shall be priced at least weekly;
10) SEC-registered, no-load money market mutual funds with a dollar-;weighted average portfolio maturity of 120 days or less
whose assets consist exclusively of the obligations described above and whose investment objectives include seeking to
maintain a stable net asset value of $1 per share. However, a city or county cannot. invest in the aggregate more than 20
percent of its monthly average fund balance, excluding bond proceeds, in money market mutual funds or invest its funds,
or funds under its control, excluding bond proceeds, in any one money market mutual fund in an amount that exceeds 10
percent of the total assets of the money market mutual fund;
11) Common trust funds or comparable investment devices owned or administered by banks domiciled in this state and whose
assets consist exclusively of all or a combination of the obligations described above. The common trust funds of banks may
be used if they are available; they comply with the provisions of the Internal Revenue Code of 1986 and applicable federal
regulations governing the investment of bond proceeds; and they meet the cash flow requirements and the investment needs
of the city.
Investment Policies. Under Texas law, the City is required to invest its funds under written investment policies that primarily
emphasize safety of principal and liquidity and that address investment diversification, yield, maturity, and the quality and
capability of investment management, and all City funds must be invested in investments that protect principal, are consistent
with the operating requirements of the City, and yield the highest possible rate of return within these constraints. Under Texas
law, City·investments must be made "with judgement and care, under prevailing circumstances, that a person of prudence,
discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation, but for
investment, considering the probable safety of capital and the probable income to be derived". No person may invest City funds
without express written authority from the City Treasurer.
The City maintains the minimum amount of cash in its bank accounts to meet daily needs, and to protect its principal while
receiving the highest yield possible from investing all temporary excess cash.
There are five objectives which the Investment Policy addresses. The primary objective of the investment policy is to preserve
the capital in the overall portfolio. Bach investment transaction seeks to first ensure that capital losses are avoided, whether
they be from securities defaults or erosion of market value. The second objective is to maintain sufficient liquidity to meet the
City's needs. The City is required to maintain 10% of its portfolio in instruments that mature in 180 days or less. The third
objective is diversify to avoid incurring unreasonable risks regarding securities owned. The fourth objective is to obtain the
highest yield on investments within the other four objectives. The fifth objective is to conform to all Federal, State, and other
legal requirements .. The day to day investment activities are performed by the City's Assistant Treasurer.
The City may invest to the following limits as a percentage of its total portfolio:
100% in United States Treasury obligations
50% in Certificates of Deposit
40% in Federal Instrumentalities or Agencies
30% in Repurchase Agreements collateralized by Federallnstrumentalities, or
100% in Repurchase Agreements collateralized by United States Treasury obligations.
Investments in a qualifying Investment Pool (in accordance with· Resolution dated May 28, 1992) should be limited to no more
than 5% of the total assets in the pool.
Diversification protects interest income from the volatility of interest rates and the avoidance of undue concentration of assets
in a specific maturity sector; therefore, portfolio maturities are staggered. Securities are also selected which provide for stability
of income. The asset allocation of the portfolio is flexible depending upon the outlook for the economy and the securities
market. Should conditions warrant, these guidelines ean be exceeded by app"roval of at least two of the Investment Review
Committee members. ·
30
r-
)
w ....
) } ) ) ) ) )
Current Investments. As of 2-28-95, the City's investible funds were invested in the following categories of investment:
Estimated
Book Value Fair Market Value <tJ
%of %of Weighted
Par Total Book Average
CategQO: Value Value Book Value Value Value Maturi!X
United States Treasury Obligations $ 44,700,000 $ 44,456,619 29.73% $ 44,136,580 99.28% 24.0 Months
United States Agency Obligations 82,000,000 81,706,924 54.64% 81,066,000 99.22% 0.8 Months
Repurchase Agreements Collateralized by U.S.
Treasm:y Obligations 23,000,000 23,000,000 15.38% 23,000,000 100.00% 1 Day<:!)
Bank Certificates of Deposit 283,600 283,600 0.19% 283,600 100.00% 4.5 Months
TexPool (local government investors pool mansged by
the Texas State Treasurer) 88,921 88,921 0.06% 88,921 100.00% 1 day
~ 150,072.521 ~ 149,536,064 100.001l ~ 148,575,101 99.36% 12.0 Months
(1) As determined by the City by reference to published quotations, dealer bids, and comparable information.
(2) The City's policy is to limit repurchase agreements to a one week maturity; on 2-28-95 the maturity of the City's outstanding agreements was 1 day.
Average portfolio yield for the five months period ending 2-28-95 was 5.408%.
The City holds all investments to maturity which minimizes the risk of mazket price volatility.
No funds of the City are invested in mortgag~backed securities. There are no investments in derivatives except for a $2,000,000 Federal Home Loan Bank
Agency Floating Rate Note maturing July, 1996, which adjusts quarterly based on the following formula: 1 0-year Constant Maturity Treasury rate ("CMT")
plus 160 Basis Points minus 3-Month London Interbank Offered Rate ("LIBOR "); market value on 2-28-95 was approximately $1,930,000 (1.30% of the market
value of the City's portfolio).
}
To prevent the possibility of loss of resources, f11e City attempts to identify and limit exposure to default risk. Default risk is controlled through internal
procedures and controls. The use of a third party safekeeping agent and a delivery versus payment system control this risk. In addition, the City's investment
transactions are audited annually by an independent auditor.
THE AIRPORT SYSTEM
The City has owned and operated the Airport since 1929, with scheduled airline service beginning in 1946. Lubbock
International Airport is located six miles north of the central business district and has an area of 3,148 acres, of which
approximately 1,900 acres is used for farming and clear zones.
Scheduled Airline Service ..• Scheduled airline transportation is provided by Southwest Airlines, American Eagle Airlines,
Atlantic Southeast Airlines and United Express.
Non-stop scheduled service is provided to Dallas-Fort Worth International Airport, Dallas Love Field, Denver, El Paso, Austin
and Albuquerque, with one-stop or through service to New York, Washington, Chicago, Frankfurt, London, Paris, Honolulu,
and other cities. Southwest Airlines uses Boeing 737 jet aircraft (122 or 137 passenger capacity depending on aircraft
configuration).
Lubbock International Airport Terminal .•• The terminal building contains approximately 222,000 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, air freight tenants, meeting and press rooms, and 9 jetway equipped gates for airline use.
Parking capacity is 1,820, including 140 employees. The former terminal building has been converted to government and
commercial office space and houses a Federal Aviation Administration ("FAA") Flight Standard District Service Office and
Airways Facility Sector Field Office.
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 landing system
and other navigational aids; ·
1-8,000' x 150', east/west, cross-wind runway, with high intensity lighting and a FAA operated instrument landing system;
1 -2,800' by 75' general aviation runway; and a taxiway system connecting the runways with aprons, the terminal and other
facilities.
General Aviation Facilities ... An 8, 779 square foot building on the east side of the airport houses general aviation services,
a National Weather Service office and a U.S. Customs office. General aviation services are also available from two west-side
located major fixed base operators who provide hangars, aprons, fuel sales and other services ~or private aviation. 100 T-
Hangars house most of the approximately 200 private aircraft that are based at the airport. Current construction activity includes
paving of emergency access roads and reconstruction of the general aviation runway totaling approximately $3.1 million.
Air Cargo Complex
The City is providing ramp and connecting taxiways at the Air Cargo Complex which will serve such air freight airlines as
Federal Express and Airborne Express who construct their own cargo terminals and office facilities. Proceeds of the Certificates
will be used to extend the ramp at the Air Cargo Complex; this is a FAA approved Passenger Facility Charge project.
Warehouse, Hangar~nd Land RentalS ... The airport has five 16,000 square foot warehouses and six other warehouses for
storage space rental.
Industrial ... Two steel companies, two research companies and a manufacturing company are located at the airport.
Certifkated Passenger Airline/ Airport Use Agreement
The City of Lubbock has executed a "Certificated Airline/Airport Use and Lease Agreement" with each of the certificated
airlines serving Lubbock International Airport. These agreements terminate on September 30, 1999. Rentals, landing fees and
other provisions are subject to negotiation by both parties prior to renewal. Additionally, certain operational and maintenance
cost recovery provisions ar~ subject to renegotiation at three year intervals.
Landing fees are presently $0.55 per 1,000 lbs.' gross ~eight (effective 10-1-94); landing fees will increase to $0.60 per 1,000
lbs. gross weight on 10.:!-95 and to $0.65per 1,000 lbs. gross weight on 10-1-97.
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Rentals and Fees
Exclusive Terminal Building Space.· .• Including ticket counters, operations offices, airfreight handling areas and administrative
offices-$12.93 per square foot per year.
Non-exclusive Terminal Buildine Soace •.• Boarding Lounge Area-$7.30 per square foot per year, with 20% of the total
monthly charge prorated among all scheduled airlines based upon the ratio of each such airline's number of departures to the
total number of departures for the calendar month and 80% of the· total prorated among all scheduled airlines based upon the
ratio of each such airline's number of enplaned passengers to the total of enplaned passengers for the calendar month.
Baggage Claim Area-$12.93 per square foot per year, with 20% of the total monthly charge divided equally among all
scheduled airlines and 80% of the total prorated among all scheduled airlines based upon the ratio of each such airline's number
of enplaned passengers to the total of enplaned passengers for the calendar month.
Extraordinary Costs and Expenses
The agreements provide for timely renegotiation and adjustments to rental, landing fees and other charges in the event
extraordinary costs or expenses are incurred by the City, including technical advances or new governmental requirements.
Rent Car Companies
Rental car agencies currently lease storage, service and office space at the airport at· rates of 10 percent of gross car rental
revenues. There are four rent car agencies on the airport. Service center acreage is available; four firms have these leases at
the rate of $0.0877 per square foot per year.
General Aviation
Fixed Base Operators are currently paying ground lease rates of $0.1092 per square foot per year, various rates on hangars and
other buildings and a fuel flowage fee equal to $0.04 per gallon of fuel sold to general aviation or military aircraft.
Airport Industrial Area
The current rates on leases in the Airport Industrial area are $1.1589 per square foot per year for buildings and the h!nd lease
is $0.1092 per square foot per year. · · · ·
Passenger Enplanements on Scheduled Airline Flights
Delta
Airlines/
Atlantic American
Calendar Southwest Southeast Eagle United American Other
Year Airlines Airlines (IJ AirlinesO> Exmss Airlines(!> Airlines (2) Iotal
1985 357,231 114,875 -0-..().. 80,829 12,149 .565.,084
1986 302,345 123,747 -0-..().. 85,178 14,653 525,923
1987 293,775 128,280 -0--0-91,278 10,997 524,330
1988 292,537 125,432 -0-..().. 88,125 57,141 563,235
1989 339,398 133,252 ..().. -0-97,244 45,620 615,514
1990 339,942 129,233 2,119 ..().. 92,223 41,397 604,914
1991 338,584 113,724 12,306 ..().. 82,648 13,878 561,140
1992 359,140 123,683 5,628 ..().. 80,234 8,201 576,886
1993 407,836 65,497 11,890 3,963 103,229 8,897 601,312
1994 433,217 53,977 49,326 9,995 64,414 566 611,495
(1) Delta Airlines ceased service July 31, 1993; Atlantic Southeast Airlines, a Delta Airlines Commuter airline, commenced
service July 1, 1993. American Airlines ceased service in November, 1994, and was replaced by American Eagle Airlines.
(2) Includes Continental Airlines, Continental Express, Trans Central Airlines, Aspen Airlines, Muse Air, Mesa Airlines,
Conquest Airlines and America West Airlines.
33
Airport Statement of Operations
Note: The Statement of Operations has been constructed in accordance with the order of precedence for the Airport Fund as established
in the Certificate Ordinance (see "Certificate Information" and "Security for the Certificates" thereunder).
For Fiscal Year Ending SeQtember 30,
Budget
1995 1994 1993 1992 1991 1990
QQerating Revenues
Landing Fees $ 739,500 $ 579,274 $ 692,051 $ 665,653 $ 615,719 $ 639,634
Parking 1,442,200 1,393,640 1,285,899 1,194,966 1,233,432 1,201,843
Rentals 2,445,200 1,374,755 2,444,311 2,159,658 2,112,995 1,858,352
Concessions N.A. 786,786 105,637 110,190 102,031 110,487
Total Operating Revenues $4,626,900 $4,134,455 $4,527,898 $4,130,467 $4,064,177 $3,810,316
Non O!>erating Revenues 108,243 309,929 133,368 78,098 266,237 208,665
Gross Revenues $4,735,143 $4,444,384 $4,661,266 $4,208,565 $4,330,414 $4,018,981
Less: Revenue Bond Debt
Service (108,900) (113,850) (118,710) (118,258) (122,720) (127,140)
Balance, Gross Revenues $4,626,243 $4,330,534 $4,542,556 $4,090,307 $4,207,694 $3,891,841
QQerating ExQenses
Personal Services $1,816,914 $1,378,867 $1,925,211 $1,641,432 $1,761,615 $1,464,061
Supplies 136,432 104,761 125,035 114,260 161,542 58,145
Maintenance 397,421 271,046 250,986 246,656 286,988 244,569
Other Services and Charges 1,598,729 1,508,680 1,476,955 1,460,506 1,408,264 1,425,839
Total Operating Expenses ~3,949,496 ~3,263,354 ~3,778,187 ~3,462,854 ~3,618,409 $3,192,614
Surplus Revenues $ 676,747 ~ 1,067,180 ~ 764,369 ~ 627,453 ~ 589,285 ~ 699,227
(1) Excludes capital expenditures and, where applicable, depreciation.
Maximum Principal and Interest Requirements, Airport Revenue Bonds,
Fiscal Year Ending 9-30-95 ....................................................... $ 108,900
Coverage by Gross Revenues, Fiscal Year Ended 9-30-94 ..................•................. 40.81 Times
Airport Revenue Bonds Outstanding, 2-28-95 .............................................. $ 360,000*
Interest and Sinking Fund, 2-28-95 ................................................... $ 201,245
Reserve Fund, 2-28-95 ........................................................... $ 300,000
*The Airport Revenue Bonds mature $90,000 September 15 each year 95/98; the City plans to call bonds maturing 9-15-96/98 for prior
redemption on September 15, 1995.
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OTHER RELE'VANT INFORMATION
Ratings ·
The presently outstanding tax supported debt of the City is rated "Aa" by Moody's Investors Service, Inc. ("Moody's") and
"AA" by Standard & Poor's Rating Group, a division of McGraw Hili ("S&P"). Applications for contract ratings on these issues
have been made to both Moody's and S&P. An explanation of the significance of such ratings, when received, may be obtained
from the company furnishing the rating. Such ratings reflect only the respective views of such organizations and the City makes
no representation as to the appropriateness of the ratings. 'I'Ilere 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 companies, if in the
judgment of either or both companies, circumstances so warrant. Any such downward revision or withdrawal of such ratings,
or either or both of them, may have an adverse effect on the market price of the Certificates.
Tax Exemption
The delivery of the Certificates is subject to an opinion of Fulbright & Jaworski L.L.P., Bond Counsel to the City ("Bond
Counsel''), to the effect that interest on the Certificates is excludable from the gross income, as defined in section 61 of the
Internal Revenue Code of 1986, as amended to the date hereof (the "Code"), of the owners thereof for federal income tax
purposes, pursuant tO se.:tion 103 of the Code and existing regulations, published rulings, and court decisions, ~with regard
to any bond or certificate for any period oftihte dUring which such bond or certificate is held by a "substantial user" of any of
the facilities financed with the proceeds of the Certificates or by a "relat:eO person" within the meaning of section 147(a) of the
Code. The statute, regulations, rulings, and court decisions on which such opinion is based are subject to change.
BOND COUNSEL'S OPINION WILL NOTE THAT INTEREST ON THE CERTIFICATES WILL BE A PREFERENCE ITEM
FOR PURPOSES OF COMPUTING THE ALTERNATIVE MINIMUM TAXABLE INCOME OF OWNERS OF THE
CERTIFICATES WHICH ARE INDIVIDUALS OR CORPORATIONS. Alternative minimum taxable income is the basis on
which is computed the alternative minimum tax imposed on corporations and individuals by the Tax Refonn Act of 1986 and
the environmental tax imposed on corporations by the Superfund Revenue Tax of 1986.
In rendering the foregoing opinions, Bond Counsel will rely upon representations and certifications of the Issuer made in
certificates dated the date of delivery of the Certificates pertaining to the use, expenditure, and investment of the proceeds of
the Certificates and will assume continuing compliance by the Issuer with the provisions of the Ordinances subsequent to the
issuance of the Certificates. The Ordinances contain covenants by the Issuer with respect to, among other matters, the use of
the proceeds of the Certificates, the manner in which the proceeds of the Certificates are to be invested, the periodic calculation
and payment to the United States Treasury of arbitrage "profits" from the investment of the proceeds, and the reporting of
certain information to the United States Treasury. Failure to comply with any of these covenants would cause interest on the
Certificates to be includable in the gross income of the owners thereof from date of issuance of the Certificates.
Except as described above, Bond Counsel expresses no other opinion with respect to any other federal, state or local tax
consequences under present law, or proposed legislation, resulting from the receipt or accrual of interest on, or the acquisition
or disposition of, the Certificates. Prospective purchasers of the Certificates should be aware that the ownership of tax .:exempt
obligations such as the Certificates may result in collateral federal tax consequences to, among others, financial fustitutions,
property and casualty insurance companies, certain foreign corporations doing business in the United States, S corporations with
Sub-chapter C earnings and profits, individual recipients of Social Security or Railroad Retirement benefits, and taxpayers who
may be deemed to have incurred or continued indebtedness to purchase or carry or who have paid or incurred certain expenses
allocable to tax-exempt obligations. Prospective purchasers should consult their own tax advisors as to the applicability of these
consequences to their particular circumstances.
35
Tax Accounting Treatment of Discount and Premium on Certain Certirl.cates
The initial public offering price of certain Certificates (the "Discount Certificates") may be less than the amount payable on such
Certificates at maturity. An amount equal to the difference between the initial public offering price of a Discount Certificate
(assuming that a substantial amount of the Discount Certificates of that maturity are sold to the public at such price) and the
amount payable at maturity constitutes original issue discount to the initial. purchaser of such Discount Certificate. A portion
of such original issue discount allocable to the holding period of such Discount Certificate by the initial purchaser will, upon
the disposition of such Discount Certificate (including by reason of its payment at maturity), be treated as interest excludable
from gross income, rather than as taxable gain, for federal income tax purposes, on the same terms and conditions as those for
other interest on the Certificates described above under "Tax Exemption." Such interest is considered to be accrued actuarially
in accordance with the constant interest method over the life of a Discount Certificate, taking into account the semiannual
compounding of accrued interest, at the yield to maturity on such Discount Certificate and generally will be allocated to an
original purchaser in a different amount from the amount of the payment denominated as interest actually received by the original
purchaser during the tax year. ·
However, such interest may be required to be taken into account in determining the alternative minimum taxable income of a
corporation, for purposes of calculating a corporation's alternative minimum tax and the environmentat tax imposed by
Sections 55 and 59 A, respectively, of the Code, and the amount of the branch profits· tax applicable to certain foreign
corporations doing business in the United States, even though there will not be a corresponding cash payment. In addition, the
accrual of such interest may result in certain other collateral federal income tax consequences to, among others, financial
institutions, life insurance companies, property and casualty insurance companies, S corporations with "subchapter C" earnings
and profits, individual recipients of Social Security or Railroad Retirement benefits, and taxpayers who may be deemed to have
incurred or continued indebtedness to purchase or carry, or who have paid or incurred certain expenses allocable to, tax-exempt
obligations. Moreover, in the event of the redemption, sale or other taxable disposition of a Discount Certificate by the initial
owner prior to maturity, the amount realized by such owner in excess of the basis of such Discount Certificate in the hands of
such owner (adjusted upward by the portion of the original issue discount allocable to the period for which such Discount
Certificate was held) is includable in gross income.
Owners of Discount Certificates should consult with their own tax advisors with respect to the determination of accrued original
issue discount on Discount Certificates for federal income tax purposes and with respect to the state and local tax consequences
of owning and disposing of Discount Certificates. It is possible that, under applicable provisio:riS governing determination of
state and local income taxes, accrued interest on Discount Certificates may be deemed to be received in the year of accrual even
though there will not be a corresponding cash payment.
The initial public offering price of certain Certificates (the "Premium Certificates") may be greater than the amount payable on
such Certificates at maturity. An amount equal to the difference between the initial public offering price of a Premium
Certificate (assuming thai a substantial amount of the Premium Certificates of that maturity are sold to the public at such price)
and the amount payable at maturity constitutes premium to the initial purchaser of such Premium Certificates. The basis for
federal income tax purposes of a Premium Certificate in the hands of such initial purchaser must be reduced each year by the
amortizable bond premium, although no federal income tax deduction is allowed as a result of such reduction in basis for
amortizable bond premium. Such reduction in basis will increase the amount of any gain (or decrease the amount of any loss)
to be recognized for federal income tax purposes upon a sale or other taxable disposition of a Premium Certificate. The amount
of premium which is. amortizable each year by an initial purchaser is determined by using such purchaser's yield to maturity.
Purchasers of the Premium Certificates should consult with their own tax advisors with respect to the determination of
amortizable bond premium on Premium Certificates for federal income tax purposes and with respect to the state and local tax
consequences of owning and disposing of Prerrrlum Certificates.
Litigation
It is the opinion of the City Attorney and City Staff that there is no pending litigation against the City that would have a material
adverse financial impact upon the City or its operations.
Registration and Qualif'ICation of Certificates for Sale
The sale of the Certificates 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 Certificates have not been qualified under the Securities Act of Texas
in reliance upon various exemptions contained therein; nor have the Certificates been qualified under the securities acts of any
jurisdiction. The City assumes no responsibility for qualification of the Certificates under the securities laws of any jurisdiction
in which the Certificates may be sold, assigned, pledged, hypothecated or otherwise transferred. This disclaimer of
36
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responsibility for qualification for sale or other disposition of Certificates shall not be construed ai; an interpretation of any kind
with regard to the availability of any exemption from securities registration provisions.
Legal Investments and Eligibility to Secure Pub6c Funds in Texas
Section 9 of the Bond Procedures Act provides that the Certificates "shall constitute negotiable instruments, and are investment
securities governed by Chapter 8, ·Texas Uniform Commercial Code, notwithstanding any provisions of law or court decision
to the contrary, and are legal and authorized investments for banks, savings banks, trust companies, building and loan
associations, savings and loan associations, insurance companies, fiduciaries, and trustees, and for the sinking fund of cities,
towns, villages, school districts, and other political subdivisions or public agencies of the State of Texas". The Certificates are
eligible to secure deposits of any public funds of the state, its agencies and political subdivisions and are legal security for those
deposits to the extent of their market value. No review by the City has been made of the laws in other states to determine
whether the Certificates are legal investments for various institutions in those states.
Legal Opinions and No-Litigation Certifacate
The City will furnish a complete transcript of proceedings had incident to the authorization and issuance of the Certificates,
including the unqualified approving legal opinion of the Attorney General of Texas approving the Initial Certificate and to the
effect that the Certificates are valid and legally binding obligations of the City, and based upon examination of such transcript
of proceedings, the approving legal opinion of Bond Counsel, to like effect and to the effect that interest on the Certificates will
be excludable from gross income for federal income tax purposes under existing law, except with regard to any Certificate for
any period of time during which such Certificate is held by a • substantial user" of any of the facilities financed with the proceeds
or a "related user"; provided however, interest on the Certificates will be included in the alternative minimum taxable income
of individual or corporate owners. The customary closing papers, including a certificate to the effect that no litigation of any
nature has been filed or is then pending to restrain the issuance and delivery of the Certificates, or which would affect the
provision made for their payment or security, or in any manner questioning the validity of said Certificates 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 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 descnbing the Certificates in the Official Statement to verify that such
description conforms to the provisions of the Ordinances. The legal fee to be paid Bond Counsel for services rendered in
connection with the issuance of the Certificates is contingent on the sale and delivery of the Certificates. The legal opinion will
accompany the Certificates deposited with DTC or will be printed on the Certificates in the event of the discontinuance of the
Book-Entry-Only System.
Authenticity of Fmancial Data and Other Information
The financial data and other information contained herein have been obtained from the City's records, audited financial
statements and other sources which are believed to be reliable. There is no guarantee that any of the assumptions or estimates
contained herein will be realized. All of the summaries of the statutes, documents and resolutions contained in this Official
Statement are made subject to all of the provisions of such statutes, documents and resolutions. These summaries do not purport
to be complete statements of such provisions and reference is made to such documents for further information. Reference is
made to original documents in all respects.
Financial Advoor
First Southwest Company is employed as Financial Advisor to the City in connection with the issuance of the Certificates. The
Financial Advisor's fees for services rendered with respect to the sale of the Certificates is contingent upon the issuance and
delivery of the Certificates. First Southwest Company may submit a bid for the Certificates, either independently or as a
member of a syndicate organized to submit a bid for the Certificates. First Southwest Company, in its capacity as Financial
Advisor, has relied on the opinion of Bond Counsel and has not verified and does not assume any responsibility for the
information, covenants and representations contained in any of the legal documents with respect to the federal income tax status
of the Certificates, or the possible impact of any present, pending or future actions taken by any legislative or judicial bodies.
37
Cert:irreation of the Offreial Statement
At the time of payment for and delivery of the Certificates, the initial purchasers 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 Certificates 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 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 unaudited financial statements of the City. ·
The Ordinance authorizing issuance of the Certificates will also approve the form and content of this Official Statement, and
any addenda, supplement or amendment thereto, and authorize its further use in the reoffering of the Certificates and the
Certificates by the initial purchaser.
ATTEST:
BETTY M. JOHNSON
City Secretary
38
DAVID R. LANGSTON
Mayor
City of Lubbock, Texas
APPENDIX A
GENERAL INFORMATION REGARDING THE CITY
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THIS PAGE LEFT INTENTIONALLY BLANK.
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Location
The City of Lubbock, County Seat of Lubbock County, Texas, is located on the South Plains of West Texas. Lubbock is the
economic, educational, cultural and medical center of the area. ·
Population
Lubbock is the ninth largest City in Texas:
1910 Census
1920 Census
1930 Census
· 1940 Census
1950 Census
1960 Census
1970 Census
1980 Census
1990 Census
1993 (Estimated)*
1994 (Estimated)*
1995 (Estimated)*
*Source: City of Lubbock, Texas
City of Lubbock
(Corporate Limits)
1,938
4,051
20,520
31,853
71,390
128,691
149,701
173,979
186,206
187,981
190,038
191,020
Metropolitan Statistical Area ("MSA ") (Lubbock County)
1970 Census 179,295
1980 Census 211,651
1990 Census 222,636
1995 (Estimated) 228,394
Agriculture; Business and Industry
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 a major additional source of agricultural
income. In 1993 cotton production in the 25-county area in and around Lubbock was 3.45 million bales; 1992 production was
1.4 million bales; estimated 1994 production is 3.1 to 3.2 million bales (source: Plains Cotton Growers, Inc., Lubbock, Texas).
Three major vegetable oil plants located in Lubbock have a combined weekly capacity of over 1,869 tons of cottonseed and
soybean oil. Several major seed companies are headquartered in Lubbock.
Over 200 manufacturing plants in Lubbock produce such products as semiconductors, vegetable oils, heavy earth-moving
machinery, irrigation equipment and pipe, farm equipment, paperboard boxes, foodstuffs, ·mobile and prefabricated homes,
poultry and livestock feeds, boilers and pressure vessels, automatic sprinkler system heads, structural steel fabrication and soft
drinks.
Lubbock MSA Labor Foree Estimates
February January December February January ·oecembe.r
1995 (I) 1995 1994 1994 1994 1993
Civilian Labor Force 117,700 116,500 119,300 117,200 114,300 122,000
Total Employment 112,900. 111,400 115,000 111,000 109,100 114,300
Unemployment 4,800 5,100 4,300 6,200 5,200 7,700
Percent Unemployment 4.1% 4.4% 3.6% 5.3% 4.5% 6.3%
(1) Subject to revision.
Source: Texas Employment Commission.
A-1
Estimated non-agricultural wage and salaried jobs in various categories as of February, 1995, were:
Manufacturing .
Mining
Construction
Transportation
Trade
Finance, Insurance and Real Estate
7,900
200
3,700
5,600
29,800
4,700
28,800
23,600
104,300
Services
Government
Total
Major employers in Lubbock (with 300 employees or more) are:
Company
Texas Tech University
Methodist Hospital
Lubbock Independent School District
TTU Health Sciences Center · ·
Reese Air Force Base
City of Lubbock
St. Mary of the Plains Hospital
University Medical Center
United Supermarkets
Lubbock State School
Caprock Home Health Services
Texas Instruments, Incorporated
U.S. Postal Service
Lockheed Support Systems, Inc.
Purrs Cafeterias
State Department of Highways
United Parcel Service
Industrial Molding Corporation .
Southwestern Bell Telephone Company , .
Norwest Bank
ARA. Food Service
Lubbock Regional MHMR Center
State Department of Human Services
Pay & Save Corporation
Marriott School Services
Aeming Foods of Texas
Dillards Department Stores
McLane High Plains
Rip Griffin Truck Service Center
* Full and part time.
Product
State University
Hospital
Public Schools
Medical and Allied Health School
U. S. Military Installation.
City Government
Hospital
Hospital
Supermarkets
School for Mentally Retarped
Home Health Care Service
Semiconductors
Post Office
Aircraft-Transportation Equipment
Cafeterias ·
Highway and Street Construction .
Courier Services
Manufacturing/Plastic Products
Telephone Utility
Bank
Food Broker
Social Services
Social Services
Lowe's Retail Groceries
Hotel/Housekeeping and Hotel
Wholesale Groceries
Department Store
Wholesale Food Distribution
Truck Travel Centers
** Military and civilian (see "Reese Air F~rce Base", below.
Estimated
Employees
March, 1995
5,016*
3,750
3,230
2,501
2,440**
1,850
1,836
1,800
1,474
975
975
850***
629
500
500
484
480
460
450
415
400
400
380
380
350
350
340
329
300
*** As projected by Texas Instruments ("TI") for November, 1995, following restructuring announced in March, 1995; present
employment is approximately 1 ,350. The personal productivity products division (consumer and peripheral products) and
the custom manufacturing service division (circuit board assemblies) will be ~nsolidated at the corporate sites in Austin,
Temple and Dallas over the next seven months. Tl officials stated that they have no intention of closing the Lubbock plant's
semiconductor fabrication unit, which has 850 full-time employees; the plant is the second largest Tl facility of its kind in
the United States and the sole producer of EPROM memory chips.
Source: Business Development Support Service, City of Lubbock, Texas.
A-2
Education •.• Texas Tech University •••
Established in Lubbock in 1923, Texas Tech University is the fifth largest State-owned University in Texas and had a Fall, 1994,
enrollment of 24,083. Accredited by the Southern Association of Colleges and Schools, the University is a co-educational, State-
supported institution offering the bachelor's degree in 1S8 major fields, the master's degree in 107 major fields, the doctorate
degree in 64 major fields, and the professional degree in 2 major fields (law and medicine).
The University proper is situated on 451 acres of the 1,829 acre campus, and has over 160 permanent buildings with additional
construction in progress. Fall, 1994, faculty membership was 786 full-time and 142 part-time. Health Sciences Center faculty
membership for 1994 is 907 full-time and 121 part-time. Including the Health Sciences Center, the University's operating budget
for 1994-95 is $341.8 million of which $90.5 million is from State appropriations; book value of physical plant assets, including
the Health Sciences Center, is in excess of $696 million.
The medical school had an enrollment of 422 for Fall, 1994, not including residents; there were 35 graduate students. The
School of Nursing had a Fall, 1994, enrollment of 411 including the Permian Basin Program, located in Midland/Odessa; there .
were 56 graduate students. The Allied Health School had a Fall, 1994, enrollment of 452.
Source: Texas Tech University.
Other Education Information
The Lubbock independent School District, with an area of 87.5 square miles, includes over 90% of the City of Lubbock. There
are approximately 3,230 total employees, including 2,512 certified (professional) personnel and 718 other employees. The
District operates four senior high schools, ten junior high schools, 40 elementary schools and other educational programs.
Scholastic Membership History*
School
Year
1989-90
1990-91
1991-92
1992-93
1993-94
Student
Membership
30,861
30,684
30,736
31,103
30,571
Refined
Average
Daily ..
Attendance
28,373
28,101
28,090
28,359
27,731
* Source: Superintendent's Office, Lubbock Independent School District.
Lubbock Christian University, a privately owned, co-educational senior college located in Lubbock, had an enrollment of 1,171
for the Fall Semester, 1994.
South Plains College, Levelland, Texas (South Plains Junior College District) operates a major off-campus learning center in
a downtown Lubbock, 7-story building owned by the College. College offerings cover technical/vocational subjects; Fall
Semester, 1994, enrollment was 866 including a major off-campus learning center at Reese Air Force Base.
The State of Texas School for the Mentally Retarded, located on a 226-acre site in Lubbock, consists of 40 buildings with bed-
capacity for 440 students; 422 students were in residence. The School's operating budget for 1993/94 was in excess of $19.9
million; there are approximately 975 professional and other employees.
Transportation
Scheduled airline transportation at Lubbock International Airport is furnished by Southwest Airlines, Atlantic Southeast Airlines,
Continental Express, United Express and American Eagle; non-stop service is provided to Dallas-Fort Worth International
Airport, Dallas Love Field, Denver, El Paso, Austin, Amarillo and Albuquerque. 1994passengerboardings totaled 611,497.
Extensive private aviation services are located at the airport.
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. Short-haul rail service is also
furnished by the Sesgraves, Whiteface and Lubbock Railroad. Texas, New Mexico and Oklahoma Bus Lines, a subsidiary of
Greyhound Corporation, provides bus service. Several motor freight common carriers provide service.
A-3
Lubbock has a well developed highway network including Interstate 27 (Lubbock-Amarillo), 4 U.S. Highways, 1 State Highway,
a controlled-access outer loop and a county-wide system of paved farm-to-market roads.
Government and Military
Reese Air Force Base, ·located adjacent to the western boundary of Lubbock, is an undergraduate pilot training as the 64th Flying
Training Wing. The Base covers over.3,000 acres and has approximately 1,440 military ·and 1,000 civilian and contract
personnel.
On March 1, 1995, the Secretary of the Air Force announced that Reese was included in the list of bases submitted to the
Defense Base Closure and Realignment Commission ("BRAC"). Representatives from BRAC visited Lubbock April4 and 5.
A hearing on the closure process .will be held April 19, 1995, in Dallas. City officials will present information illustrating that
a comprehensive review of the evaluation criteria would indicate that closure of Reese would not be in the best interest of the
Air Force. The final recommendation will be submitted to the President by July, 1995. .
City officials are optimistic that further review of the information will result in the removal of Reese from the closure list. As
a contingency, the City is developing a re-use plan for the facilities .. Reese Air Force Base represents approximately 2.6% of
the local work force. While closure of the base would not have a positive impact on the Lubbock economy, the current growth
in other economic sectors should minimize or neutralize closure of the base. In addition, there could be a positive economic
impact from the re-use of the base.
Source: City of Lubbock, Texas.
State of Texas . ; • More than 25 State of Texas boards, departmentS, agencies and commissions have offices in Lubbocki
several of these offices have multiple units or offices.
Federal Government . . . Several Federal departments and various other administrations and agencies have offices in Lubbock;
a Federal District Court is located in the City.
Texas Department of Criminal Justice ("TDCJ") Prison Psychiatric Hospital
TDCJ is constructing a 550 bed Prison Psychiatric Hospital on a 1,303 acre site in southeast Lubbock. The Hospital will employ
approximately 800 with an annual estimated payroll of $17,000,000 and an estimated annual operating budget of $16,000,000.
Construction is estimated to be completed in June, 1995.
Included in construction of the Hospital is a 400 bed capacity "trustee" facility to house prison trustees who will work at the
hospital.
In addition TDCJ will construct a 48 bed regional. prison hospital on this site.
Hospitals and Medical Care
There are six hospitals in the City with over 2,000 beds. Methodist Hospital is the largest and also operates an accredited
nursing school. Lubbock County Hospital District, with boundaries contiguous with Lubbock County, owns the University
Medical Center which it operates as a teaching hospital for the Texas Tech Health Sciences Center. There are numerous clinics
and over 600 practicing physicians and surgeons (M.D.) plus the Texas' Tech University Medical School Staff, and over 100
dentists. A radiology center forthe treatment of malignant diseases is located in the City.
Recreation and Entertainment
Lubbock's Mackenzie Regional Park and over 70 City parks and playgrounds provide recreation centers, shelter buildings, a
garden and art center, swimming pools, a golf course, tennis and volley ball courts, baseball diamonds and picnic ar~,
including the Yellowhouse Canyon Lakes system of four lakes and 500 acres of adjacent parkland extending from northwest to
southeast Lubbock along the Yellowhouse Canyon. There are several privately-owned public swimming pools and golf courses,
and country clubs.
The City of Lubbock has developed a 36 square block area of approximately 100 acres adjacent to downtown Lubbock under
the Lubbock Memorial Civic Center program. Approximately 50 acres contain the 300,000 square foot Lubbock Memorial Civic
Center, the main City library building and State Department of Public. Safety offices; a 50 acre peripheral area has been
redeveloped privately with office buildings, hotels and motels, a hospital and other facilities. ·
Available to residents are Texas Tech University programs and events, Texas Tech University Museum, Planetarium and Ranch
Heritage Center exhibits and programs, Lubbock Memorial Civic Center and its events, Lubbock Symphony Orchestra programs,
Lubbock Theatre Center, Lubbock Civic Ballet, Municipal Auditorium and coliseum programs and events, the library and its
branches, the annual Panhandle-South Plains Fair, college and high school football, basketball and other sporting events; modem
movie theatres.
Churches
Lubbock has approximately 300 churches representing more than 25 denominations.
Utility Services
Water and Sewer· City of Lubbock.
Gas -Energas Company.
Electric -City of Lubbock (Lubbock Power & Light) and Southwestern PUblic Service Company; and, in a small area, South
Plains Electric Co-operative.
Economic Indices (l)
Year
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
Building
Permits
$ 168,740,229
139,317,252
100,046,309
105,159,525
105,363,072
140,855,719
131,333,756
142,921,124
174,346,368
162,427,737
(1) All data as of 12-31; Source: City of Lubbock.
~
60,051
60,751
61,027
61,628
61,857
62,178
62,267
62,898
63,006
64,921
Utility Connections.
Gas
56,600
56,900
57,266
57,886
60,312
61,700
60,803
60,208
61,448
62,670
Electric·
(LP&L OnlyY2>
40,506
41,759
42,696
43,781
44,518
45;301
46,245
47,194
48,526
49,391
(2) Electric connections are those of City of Lubbock owned Lubbock Power and Light ("LP&L ") and do not include those of
Southwestern PUblic Service Company or South Plains Electric Cooperative.
A· 5
Building Permits by CJassirreation
Residential Pennits Commercial,
Single Family Multi-Family Total Residential Public· Total
Calendar No. No. Dwelling No. Dwelling andOtfier Building
Year Units Value Units (I) Value Units (IJ Value Pennits Pennits
1985 601 50,100,350 162 5,250,300 763 55,350,650 113,389,579 168,740,229
1986 599 49,329,236 14 566,000. ~13 49,895,236 89,422,016 139,317,252
1987 508 44,466,937 ..().. ...()-508 44,466,937 55,579,372 100,046,309
1988 414 35,588,945 -o-..().. 414 35,588,945 69,570,580 105,159,525 .
1989 368 31,345,375 12 440,800 380 31,786,175 73,576,897 105,363,072
> 1990 368 35,652,140 8 416,000 376 36,068,140 104,787,579 140,855,719
"' 1991 424 38,574,190 ..().. ..().. 424 38,574,190 92,159,566 131,333,756
1992 603 58,530,190 44(2) 1,743,000 647 60,273,190 82,647,934 142,921,124
1993 673 72,894,295 58 2,313,197 . 731 75,207,492 99,138,876 174,346,368
1994 686 73,318,480 260 6,271,150 946 79,589,630 82,838,107 162,427,737
(1) Data shown under "No. Dwelling Units" is for each individual dwelling 'unit, and is not for separate buildings; includes duplex, triplex, quadruplex and
apartment permits.
(2) Includes one retirement center with 40 dwelling units.
Source: City of Lubbock, Texas.
) ) ) ) ) )
The following information concerning the Waterworks System, the Sewer System, the Solid Waste Disposal System and
the Electric Light and Power System is for general information only.
mE WATERWORKS SYSTEM
Water Supply •.• Currently, the primary source of water for Lubbock is the Canadian River Municipal Water Authority
("CRMW A") which delivers raw water from its Lake Meredith reservoir, located on the Canadian River about SO miles north
of Amarillo, to member cities through an underground aqueduct system. Lubbock is one of eleven member cities of CRMWA;
other members are Amarillo, Pampa, · Borger, Plainview, Slaton, Levelland, Brownfield, Tahoka, O'Donnell and Lamesa.
Lubbock received 30,S66 acre feet of water from CRMWA in Calendar Year 1994, approximately 72.4% of the City's total
consumption. This percentage of CRMW A water is down substantially from the average of 8S% due to high water consumption
resulting from above-average temperature and below-average rainfall. Cost of the project is being repaid to the Bureau of
Reclamation by CRMW A through a reimbursable loan maturing annually through 2018; debt requirements are paid from
revenues received by CRMW A from sale of water to member cities. Member cities make payments for water received from
revenues derived from operation of their respective waterworks systems.
Other Water Supply Sources ..• On average approximately 1S% of the City's water supply is obtained from 238 potable water
wells, all producing from the Ogallala Aquifer, which underlies the High Plains of Texas. Combined capacity of these wells
is over 4S million gallons per day ("mgd"). Primary wells are located in the "Sand Hills" area about 60 miles northwest of
Lubbock in Lamb and Bailey Counties in which the City owns approximately 79,402 acres of water rights. These ground water
sources are used primarily for peaking purposes.
Lake Alan Henry ..• The Brazos River Authority ("BRA") on behalf of the City of Lubbock (the "City") has constructed a
dam and reservoir on the South Fork of the Double Mountain Fork of the Brazos River ("Lake Alan Hemy") about 60 miles ·
southeast of Lubbock to enhance provision for long term water supply needs. The U.S. Corps of Engineers bas granted a permit
for impoundment at the reservoir site.
Future population and water demand estimates for Lubbock, projected by the Texas Water Development Board ("TWDB"),
indicate that Lubbock's water use in high-use years is expected to increase to over SO mgd by 2040 assuming low population
growth. Although historical population increases have not been as great as the TWDB population estimates, increased population
and decreasing water supplies have required the City to pursue new sources of supply.
The City contracted with BRA under a Construction and Management Agreement (the "Contract") to construct the dam and water
supply reservoir at the Lake Alan Henry site (the "Project") and construction was completed in 1993. Total construction cost
was approximately $S4,639,000 and BRA issued $S6,6SS,OOO Special Facilities (Lake Alan Henry) Revenue Bonds to provide
funds for construction and establishment of reserve and repair and replacement funds. The Special Facilities Bonds are payable
from net revenues derived from the operation and ownership of Lake Alan Henry, principally from payments to be made under
the Contract to BRA by the City.
Under the Contract the City will buy and pay for the entire amount of water which can be supplied by the Project wheeher used
or not. Payments to BRA during each Fiscal Year (beginning October 1 and ending September 30) shall equal the sum of:
(1) Capital costs (debt service) payable during such Fiscal Year; plus
(ii) Maintenance and Operation Costs as adjusted, which, by the Authority's estimates made prior to the beginning of such
Fiscal Year, will be incurred during such Fiscal Year; plus
(iii) M~gement Fees for such Fiscal Year.
Payments under the Contract for purposes of the Official Statement are calculated as operating expenses of the City's
Waterworks System, payable from gross revenues of the Waterworks System.
A· 7
The .claims of royalty and mineral owners of the land area covered by the Project have not been resolved and are in various.
stages of condemnation and litigation. The dam gates cannot be closed until these matters are resolved. It is the opinion of BRA
Counsel that, in a worst case scenario, final resolution could increase costs of the Project by 15% to 20%, approximately
$8,000,000 to $11,000,000. When the amount of these claims has been definitively ascertained the City and BRA will address
the various options available to conclude the Project, including th~ oPtion for BRA to issue additional Special Facilities Revenue
Bonds.
When the gates are closed it is estimated that two to six years will be r~uired for the reservoir to fill, based on average runoff
condition~. At conservation storage the reservoir will contain 115,937 acre feet of water; mean depth at conservation storage
will be approximately 40 feet; maximum depth will be approximately 100 feet near the dam. The contributing drainage area ,
is an estimated 394 square miles.
Additional facilities, which may be .financed by the City directly or by BRA as additional Special Facility Revenue Bonds, will
be required to. transport and treat the water from Lake Alan Henry; such facilities are not included in the ·estimated construction
costs shown above and are not scheduled for construction until well into the next century.
North Panhandle Ground Water Project. In lanuary, 1995, the City Council agreed to participate in a ground water project
proposed by CRMWA. (Approval is contingent upon proper legal assurances that water could be exported from the area.) This
project involves the acquisition of water rights in Roberts County, located in the Texas Panhandle approximately 75 miles
northeast of Amarillo, and the construction of wells and pipelines to transport ground water for blending with surface water from
Lake Meredith for delivery to member cities. Lubbock's share of this $76,500,000 project will be approximately $28,800,000,
based on Lubbock's allocated share of the surface water from Lake Meredith.
This project would enhance the quantity and quality of water Lubbock would receive from CRMW A. The project wo\lld serve
to increase the amount of water supplied by CRMW A by 25%, or 2,500,000,000 gallons per year. Ultimately, Lubbock could
anticipate receiving almost 12.5 billion gallons per year from CRMWA, or an amount comparable to its average total yearly
demand. This increased water allocation would serve to conserve the underground water in the City's well field in Bailey·
County.
This project will also result in enhanced water quality. The surface water from Lake Meredith currently meets the state's
primary drinking water standards only. The blending of ground water would enable the water to also. meet the Texas secondary
(aesthetic) standards as well. Also, this project would serve to postpone the time that water from Lake Alan Henry would be
needed to meet Lubbock's water supply needs.
Storage capacity includes. a 1,200 acre-foot open storage reservoir for CRMWA raw water and 8.0 million gallons clearwell
storage for treated water at the water treatment plant. In addition, 14 ground storage reservoirs and 3 elevated steel storage
tanks provide storage capacity of 61.35 million gallons, entirely adequate for peak hour and fire protection requirements.
The System ... Lubbock's Waterworks System is modern and efficient; property, plant and equipment are valued at
$143,694,397, .llfter,depreciation and including cost of construction work in progress, at September 30, 1994. Equipment
includes remote oontrol and communication facilities with centralized operation and direction of the water supply system. The
distribution syste~ extends throughout the City and is designed for expansion. Present pumping capacity is 106 million gallons
per day.
Water Consumption.
Calendar
Year
1990
1991
1992
1993
1994
Average
Daily
Consumption
(mgd)*
36.408
33.674
31.219
34.688
37.843
Maximum
Consumption
Day/Year
(mgd)*
79.003
67.377
55.503
58.347
76.319
* The City has water sales contracts for the sale of treated water to Reese Air Force Base; the Town of Lake Ransom Canyon
and Lubbock County Water Control and Improvement District No. 1 (Buffalo Springs Lake); deliveries to these entities,
averaging 0.849 mgd in 1993, are included in the above calculations.
A-8
.-
,..,
,...
Water Treatment Facilities .•• The water treatment plant for the treatment of raw water received frOm CRMW A has a
maximum hydraulic capacity of 75 mgd. The plant bas a 1,200 acre-feet open storage reservoir which permits storage of raw
water during "off-peak" periods and 8.0 million gallons clearwell storage for treated water. The plant bas been upgraded and
improved with the objectives of (1) enabling the plant~ COlllJilY with the Safe Drinking Water Act of 1986 and (2) upgrading
for safety, maintenance and repair.
The plant also treats CRMW A raw water for the Cities of Brownfield, Lamesa, Levelland, O'Donnell, Slaton and Tahoka prior
to CRMWA delivery to those cities. Under contractual agreements with these cities, Lubbock is fully reimbursed for all costs
of this treatment including capital costs and debt service; total percentage of participation in treatment plant costs by these cities
is 20.34%. In Fiscal Year Ended 9-3()..94 deliveries from the plant totaled 13,012,870,000 gallons of which 11,053,158,000
gallons was for Lubbock and i,959,712,000 w~ delivered to the other participating cities.
Lubbock's ground water supply does not require treatment (other than the addition of chlorine).
Condensed Statement of Operations -Waterworks System
Fiscal Year Ended Smtember 30,
Budget
1995 1994 1993 1992 1991 1990
Operating Revenues $26,109,782 $27,979,503 $23,928,081 $20,765,507 $21,821,722 $19,668,087
Non-Operating ·
Revenues 703.231 1,344,153 1,915,182 4,180,138 4,050,163 1,880,945
Gross Revenues $26,813,013 $29,323,656 $25,843,263 $24,945,645 $25,871,885 $21,549,032
Operating Expensc!1) 17,182,561 16,508,910 15,948,387 15,954,609 14,592,700 11,310,532
Net Revenues ~ 9,630,452 ~12!814,746 ! 9,894,876 ! 8,991,036 ~11,279,185 !101238,500
Water Meters N.A. 63,923 63,593 62,898 62,262 62,l19
(1) Operating expense includes all payments to CRMW A arid BRA and excludes depreciation and capital expenditures.
Note: The City has no outstanding or authorized Waterworks System Revenue Bonds, however, there is $27,333,157 general
obligation debt.outstanding which was issued for Waterworks System purposes on which a:miual debt service is provided from
net revenues of the System.
It is the City's policy and intention to maintain rates and charges for water service that will provide net revenues of the System
chat will fully provide for debt service on general obligation debt issued for Waterworks System purposes over the life of present
System general obligation debt and any additional Waterworks System general obligation debt issued in the future.
A-9
Water Rates (Monthly)
Previous Rates Present Rates <tl
(Effective 10-1-93} (Effective 10-1-94)
Base Rate (2)
3/4" meter $7.68 $ 8.06
1" meter (single family res.) 9.78 10.26
1" (other than res.) 16.39 i7.21
1.5" 30.89 32.44
2" 48.42 50.84
Consum)!tion Rates
(per 1,000 gallons):
Single Family Residence $1.41/M $1.48/M
Multiple Family 1.19/M 1.25/M
Commercial <3> 1.29/M 1.36/M
Schools <4> 1.33/M 1.40/M
Sprinkler 1.76/M 1.85/M
ReeseAFB 1.19/M 1.25/M
(1) The City is considering a staged increase in water rates, beginning 10-1-95, to accommodate financing for the above
mentioned North Panhandle Ground Water Project.
(2) The Base Rate is for water service; Base Rates shown a.re for a 3/4" to 2" meters; higher Base Rates apply to larger meters
ranging from 3" to 10".
(3) ·Rates for the Town of Lake Ransom Canyon and Lubbock Control and Improvement District No. 1 are 81.17% of the
commercial rate plus proportionate costs of applicable capital improvements.
(4) Includes public schools, Texas Tech University and Lubbock Christian University.
Note: A "Rate Stabilization Fund" within the Water Enterprise Fund is accumulated from Waterworks System net revenues;
at 9-30-94 the balance in the rate stabilization account was $3,553,504.
A· 10
.-
THE SEWER SYSTEM
The Sewer System is operated as a separate ente~se fund and is not combined with the Waterworks System.
The Collection System . . • The sanitary sewage collection system, handled separately from the storm drainage system, includes
approximately 777 miles of trunk mains and collection lines with trunk mains installed for future expansion of the collection
system.
Water Reclamation Facilities ..• Treatment facilities consist of the Southeast Plant, with an average daily tlow design capacity
of 26 million gallons aiid the Northwest Plant, with an average daily tlow design capacity ofO. 15 million gallons. The Southeast
Plant uses two processes for treatment; biotower filter and activated sludge. The Northwest Plant uses the contact stabilization
process fo~ sewage treatmcmt. Upgrading and expansion of the Southesst Plant, which will permit the City to consistently
comply with requirements of the Texas Natural Resource Conservation Commission ("TNRCC") for wastewater treatment and
effiuent disposal by irrigation of land-application sites, is in progress.
Wastewater Flows •..
Calendar
Year
1990
1991
1992
1993
1994
Northwest
Plant
(mgd)
0.415 .
0.367
0.321
0.297
0.308.
Southeast
Water
Reclamation
Plant
(mgd)
18.55
18.65
19.03
20.79
20.34
Effiuent Disposal ••. Treated effiuent is used for beneficial purposes; no effiuent is presently discharged into streams. Treated
effiuent from the Northwest Plant is used to irrigate approximately 1,050 acres of farm land at Texas Tech University for
agricultural research. Treated effiuent from the Southeast Plant is used to irrigate two land-application sites:
(1) A site located adjacent to the City ·on the southeast, consistirig of5,997 acres owned by lhe City, currently being
upgraded; stOrage capacity for'effiuent pending use for irrigation is 412 million gallons.
(2) A 3,400 acre privately owned farmland site near Wilson, Texas, approximately 15 miles southeast of LubbOck. There
is storage capacity of 780 million gallons at this site for efflue~t pending its use for irrigation.
Southwestern Public. Service Company has a contract with the City to use treated effiuent from the Southeast Plant for cooling
purposes m Southwestern Public Service Coaq:iany's 512,000 kilowatt electric generating plant near Lubbock when the plant
is in use.
. .:! .· : Wastewater Treatment and DiS'OOsal II1lProvement and Expansion Project . Construction is nearing completion on a
comprehensive wastewater treatment and effluent disposal program to upgrade and expand the Southeast Water ~~Iamation
Plant, the City's major wastewater treatment facility. This program enables the Plant to consistently cdmpiy ~th TNRCC and
United States Environmental Protection Agency permit requirements and provide treatment capacity to the design year 2010.
The Project was fupded through loans totaling $50,600,000 from the .Texas Water Development Board's State Water Pollution
Control Revolving Fund ("SRF"). · ' · · ' · · . · ·
Effluent will continue to b~' digposed ofthrough an enhanced land .application syste~ With alternative effi~ent disc~arges ~f up
to 9.0 mgd to the North Fork Double Mountain Fork, Brazos River, ( .. NFDMF Brazos River") below Lake Ransom Canyon .
. l·
A-11
Condensed Statement of Operations -Sewer System
Fiscal Y~ar Ending S~tember 30,
·Budget
1995 1994 1993 1992 1991 1990
Operating Revdnues $12,749,520 $13,037,157 $11,226,109 $10,275,402 $ 9,696,057 $ 9,571,277
Non-Operating
Revenues 389,859 1,345,757 1,432,251 875,072 720,169 763,549
Gross Revenues $13,139,379 $14,382,914 $12,658,360 $11,1~0,474 $10,416,226 $10,334,826
Operating Expense m 6,207,578 4,942.491 4,848,593 4,716,171 4,137,603 4,054,261
Net Revenues ~ 6,9311801 ! 9,440,423 ~7,809,767 ~ 6,434,303 ~ 6,278;623 ~ 6,280,565
Sewer Customers N.A. 63,923 63,593 62,898 62,262 62,119
(Estimated)
(1) Operating Expense excludes depreciation and capital expenditures.
Note: The City has no outstanding or authorized Sewer System Revenue Bonds; however, there is $59,773,539 general obligation
debt outstanding which was issued for Sewer System purposes on which annual debt service is provided from net revenues of
the System.
It is the City's policy and intention to maintain rates and charges for sewer service that will provide net revenues of the System
that will fully provide for debt service on general obligation debt issued for Sewer System purposes over the life of present
System general obligation and any additional Sewer System general obligation debt issued in the future.
Sewer Rates (Monthly)
Previous Rates Present Rates Future Rates
(Effective 10-1-93} (Effective 1~1-94} (Effective 1 0-1-95}
Residential
Base Rate (I) $ 2.74 $ 2.93 $ 3.14
Flow Rate (Water Consumption)* 1.16/M gallons 1.24/M gallons 1.33/M gallons
Maximum Monthly Charge $18.98 (14,000 gallons) $27.73 (20,000 gallons) $36.39 (25,000 gallons)
* Based on average monthly water consumption for the months of low irrigation usage (typically the previous
December-February).
Commerciatllndustrial (2)
. Base Rate <I)
Flow Rate (Water Consumption)
$2.74
1.16/M gallons
$ 2.93 $ 3.14
1.24/M gallons 1.33/M gallons
(1) The Base Rate is for sewer service; Base Rates shown are for a 3/4w water meter; higher Base Rates apply to larger meters
rangingfrom 1" to 10".
(2) Industrial waste that exceeds allowable limits is subject to surcharge for treating biochemical oxygen demand ("B.O.D. ")
and total suspended solids (T.S.S.). Present surcharge rates are B.O.D. $0.0786/lb. and T.S.S $0.0482/lb.
Note: A "Rate Stabil.i.zati.on Fund" within the Sewer Enterprise Fund is accumulated for Sewer System net revenues; at 9-30-94
the balance in the rate stabilization account was $5,396,091.
A-12
,-
mE SOLID WASTE DISPOSAL SYSTEM
The Solid Waste Disposal System, operated by the City's Solid Waste Management Department of the City of Lubbock. handles
collection and disposal of both residential and commercial garbage in the City. The residential collection system services
approximately 20,000 containers and 54,000 accounts. Service is provided twice weekly. Residential collection is provided
through three cubic yard metal containers serviced in alleys by 30 AND 33-yard packer, sideloading trucks on 38 separate
routes.
Collection for approximately 545 commercial accounts is provided through two yard to eight yard metal containers picked up
by 32-yard automated frontloading units, and collection for approximately 1,000 accounts is provided by the same type container
and pickup equipment as residential customers. Basic service is collection twice weekly with additional service available at an
extra charge. The commercial portion of the system provides collection for approximately 25% of the commercial solid waste
market in the City, with the remainder serviced by private contracts.
System customers may deliver covered loads to the City's Landfill at no additional cost.
Recycling Operations ... The City has expanded its residential recycling operations City-wide effective February, 1993. The
City dispatches recycling collection trucks to collect blue bags which have been filled with recyclable commodities. During
Fiscal Year 1993/1994 the waste stream was decreased by 11% as a result of the City's recycling program. This program will
supplement other recycling programs that the City currently operates: Oil Recycling, Wood-Brush Recycling, Don't Bag It
Program, Christmas Tree Recycling, and others. A Household Hazardous Waste Program is in the planning stages.
Landfill and Disposal Operations ••. The City operates a Type 1 Landfill (fexas Department of Health permit 1169) on a 320-
acre site. The facility receives approximately 322,696 tons of solid waste annually, and has a remaining life of approximately
five to seven years. Refuse is deposited into cells of approximately five acres each, compacted, and covered with six inches
of intermediate soil cover. Once a cell reaches maximum height, final cover is applied and the area is monitored by a series
of wells· and visual inspections.
The City is in the process of initiating an application to the TNRCC for a permit for a new 1,200 acre landfill site. The new
permit would include all new and proposed landfill regulations.
The landfill currently operates as a defacto regional landfill; the City is negotiating interlocal landfill use agreements with
approximately 30 area communities. These agreements would include payment of a tipping fee plus collection of an additional
$2.00 per ton surcharge. Purpose of the surcharge would be to create a cleanup fund in the event future cleanup of site was
required, or the fund could be used for future landfill facilities.
Present Landfill Program •.•
1. Closure of 144 acres of the existing landfill site that is near closure stage. Closure will be performed in accordance with
TNRCC Municipal Solid Waste Management regulations.
2. Install liner, as required by TNRCC regulations, in Landfill Cells IVB 2, 3 and 4.
3. Acquire a compactor and service truck.
A-13
Condensed Statement of Operations-Solid Waste Disposal System
Fiscal Year Ending September 30,
Budget
1995 1994 1993 9-30-92 9-30-91 9-30-90
Operating Revenues $11,586,176 $10,772,887 $8,916,813 $7,153,729 $6,340,137 $5,630,037
Non-Operating Revenues 388,409 353,748 327,073 240,268 361,452 158,154
Gross Revenues $11,974,585 $11' 126,635 $9,243,886 $7,393,997 $6,701,589 $5,788,191
Operating Expense(!> 6,481,897 6,185,659 5,060,856 5,352,566 4,949,622 4,340,042
Net Revenues $5,492,688 $4,940,976 $4,183,030 $2,041,431 $t,75L967 $1,448,149
Number Residential
Customers N.A. 55,458 54,919 55,000 51,999 51,568
Number Commercial
Customers N.A. 3,715 1,675 1,337 1,337 1,322
(1) Operating Expense excludes de{lreciation and capital expenditures.
Note: The City has no outstanding or authorized Solid Waste Disposal System Revenue Bonds, however, there is $2,987,041
general obligation debt outstanditig which was issued for Solid Waste Disposal System purposes on which annual debt service
is provided from revenues of the System. . ·
It is the City's policy and intention to maintain rates and charges for Solid Waste Disposal System service that Win provide net·
revenues of the System that will fully provide for debt service on general obligation debt issued for Solid Waste Disposal System
purposes over the life of present System general obligation debt and any additional Solid Waste Disposal System general
obligation debt issued in the future.
Solid Waste CoHection Rates
Residential (Monthly)
(Effective .1 0-1-92)
3 yard container typically shared by
households with twice a week
service $11.00
SmaH Commercial, Churches, Professional Offices, Nursing Homes and Other Interests Generating
Less Than 20 Cubic Feet Per Pickup (Monthly)
(Effective 10-1-92)
twice a week service
Commercial (Monthly)
(Effective 10-1-85)
2 yard container with twice a week service
3 yard container with twice a week service
4 yard container with twice a week service
6 yard container with twice a week service
8 yard container with twice a week service
Extra pickups for commercial
Landfill Fees
(Effective 5-1-94)
$11.00
$24.00
$36.00
$48.00
$72.00
$96.00
$ 1.50 per yard per pickup
AH landfill charges are made on a per ton basis only; the rate is $18.00 per ton.
A-14
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LUBBOCK POWER & LIGHT
Lubbock Power and Light ("LP&L ") was established in 1916, and is presently the largest municipal !'}'stem in the West Texas
region and the third largest in the State of Texas. LP&L and Southwestern Public Service Company ("Southwestern"), a
privately owned utility company operating within the corporate limits of the City, each provide electric service to residents and
businesses of the City. Essentially .all of the City is covered by both systems, each of which has parallel lines throughout the
City; one' small area is served exclusively by South Plains Electric Cooperative and one small area is served exclusively by
LP&L. As of September, 1994, LP&L served 58.3% of all connections.
Southwestern was granted a new 20-year franchise in 1982 •. The company pays the City a franchise tax of 3% of its gross
receipts which is deposited into the City's General Fund; LP&L makes an equivalent payment in lieu of taxes to the General
Fund of the City. AB of September, 1994, Southwestern supplies power to approximately 41.7% of the customers in Lubbock.
LP&L generates part of itS power requirements through the use of three generating stations located within the City •. These plants
are geographically separated and deliver bulk power to substations through a 69 kilovolt (kV) transmission loop !'}'stem.
LP&L currently contracts for the purchase of 40 megawatts (MW) of power from Southwestern; power is delivered via two
interconnections, each capable of delivering up to 100 MW to LP&L.
Generating Stations . . . The total generating capacity of LP&L is 220,500 kW. Gas turbine generators provide the !'}'stem with
52,500 kW of ready reserve and quick-start generation for emergency and peaking service. A new high efficiency gas turbine
at Texas Tech University (E.Z. Brandon Station) is base loaded. Generating units consist of the following:
Generator
Year Capacity
Manufacturer Installed Station Prime Mover Fuel inkW
Nordberg 1946 2* Diesel Dual Fuel 2,500
Nordberg 1947 2* Diesel Duai Fuel 2,500
Westinghouse 1952 2* Steam Turbine Gas or Oil 11,500
Westinghouse 1953 2* Steam Turbine Gas or Oil 11,500
Westinghouse 1958 2* Steam Turbine Gas or Oil 22,000
Westinghouse 1964 Holly Gas Turbine Gas or Oil 12,500
General Electric 1965 Holly Steam Turbine Gas or Oil 44,000
Worthington 1971 Holly Gas Turbine Gas or Oil 18,000
General Electric 1974 Holly Gas Turbine Gas or Oil 22,000
General Electric 1978 Holly Steam Turbine Gas or Oil 54,000
General Electric 1990 E.Z. Brandon Gas Turbine** Gas or Oil 20.000
220,500
* Since the completion of the second interconnection with Southwestern Public Service, Station No. 2 has been kept on standby
and is used for peak and emergency power purposes.
**High efficiency, cogeneration plant located at Texas Tech University; waste heat is used to produce steam which is sold to
the University.
Interconnection • . . An interconnection with Southwestern was completed and LP&L commenced buying . power from
Southwestern in December, 1981. In April, 1986, a second interconnection with Southwestern was energized; each
interconnection is capable of providing up to 100 MW to LP&L.
Purchased Power ... LP&L's contract with Southwestern extends to December 31, 2004, with year to year extensions thereafter
subject to five years notice of termination by either party. The contract provides for "firm power", "emergency energy • and
"non-firm" energy; non-firm energy purchases by LP&L are made on an economic dispatch basis and are subject to
Southwestern's sole discretion to make such sales. Southwestern is the only interconnection to LP&L's system; the City must
give two years notice of intention to take power from another supplier. LP&L has notified Southwestern of its .intent to seek
additional sources of power supply starting January 1, 1997 •. The City specifies its firm power requirements five years in
advance subject to adjustment by plus or minus 30% at least one year in advance. LP&L has designated 40 MW for 1995, 35
MW for 1996, 40 MW for 1997, 1998 and 1999. Southwestern will make such :6m1 power and energy available to LP&L as
specified, provided it has sufficient capacity in its existing facilities for any requested increase. Southwestern 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.
A-15
Fuel Supply ..• Present primary fuel supply for LP&L's generating system is natural gas, which is supplied by Hadson Gas
Company, Hadson Gas Marketing Company and Davis Gas Processing, Inc.; LP&L has oCher alternative gas supplies including
in-ground reserves owned by LP&L. These major gas suppliers are under long term contracts which provide LP&L with
maximum flexibility in securing th.e lowest cost energy at all times.
Transmission and Distribution •.• A 69,000 volt (69 kV) transmission loop system, 73.89 miles in lenglh, provides bulk power
to eleven 69,000/12470 bulk substations with a combined base capacity of 351 megavolt amps (MV A). Wilh all cooling systems
in operation, these substations could proVide up to 532 MVA. Of the above 69kV transmission lines, 27.41 miles have been
constructed for operation at 115 kV. When system load dictates, these lines will be energized to 115kV and provide an
additional250% of transmission capacity due to the increased voltage. LP&L also has two interconnections with Southwestern
Public Service which can provide up to 200 MVA of additional power; these interconnections are tied to LP&L through 4.35
miles of 230 kV transmission lines.
The distribution system includes approximately 662.67 miles of overhead distribution lines and approximately 216.43 miles of
underground distribution lines. There are three 12,470/4160 volt substations in the distribution system. Net system load for
Fiscal Year Ended September 30, 1994, was 1,046,666,402 kilowatt hours (kWh) with a peak demand of 255,000 kW.
Continuing Transmission and Distribution System Improvement Program ••• A transmission and distribution system construction
and improvement program using internally generated funds is in progress.
Recent Substation Construction and Facilities Relocation Program
(1) A "South Substationft to meet expected load growth in south and southwest Lubbock and expected load growth
along the 1·27 corridor was constructed in 1992; this substation will also prevent future voltage problems in this region;
the substation consists of two 15/20/25 MVA transformers with all required substation facilities, 69 kV transmission
line extensions and 12.5 kV distribution feeder lines.
(2) East/West Freeway Clearing •.• The State's construction plans for an east/west freeway across Lubbock require
that a major 69 kV transmission line along with numerous distribution lines located on or along existing public streets
and alleys be relocated.
(3) LP&L is presently renovating four generating units within its station no. 2. This project, when completed in 1995,
will add approximately 38.5 MW of usable generation to the LP&L system. The estimated cost of this project is
$3,700,000 which is being financed with availabl~ LP&L funds.
Condensed Statement of Operations -Electric Light and Power System
Fiscal Year Ending S~tember 30,
Budget
1995 1994 1993 1992 1991
Operating Revenues $ 53,461,289 $ 54,529,457 . $ 52,949,180 $ 50,196,280 $49,142,119
Non-Operating Income 870,018 3,070,263 3,894,520 4,081,025 3,247,106
Gross Revenues $ 54,331,307 $ 57,599,720 $ 56,843,700 $ 54,277,305 $52,389,225
Operating Expense <t> 40,358.730 41,725,274 39.574,526 33,900,204 33,225.153
Net Revenues $ 13,972,577. $ 15,874,446 $ 17,269,174 $ 20,377,101 $19,164,072
Electric Connections N.A. 48,630 47,973 47,194 46,014
(1) Operating Expense excludes depreciation and capital expenditures.
Maximum Principal and Interest Requirements, Electric System Revenue Bonds,
Fiscal Year Ending 9-30-95 •••••.••..••..•..••.....•...•...••.•..••..••..••..
Coverage by Net Revenues, Fiscal Year Ended 9-30-94 . . • . . . • . . • • . . . • . • • • . • • • . . . • . . ·. • • ~ .
Electric Light and Power System Revenue Bonds Outstanding 9.·30-94 •.•.•..••••.•••••...•...
Interest and Sinking Fund, 9·30-94 ..•...•••.•.••.•.••..•••••.....•.••..••...•..•
Reserve Fund, 9-30-94 .••••..••••••.••••••...••..•...•••.•...•...••..•...••..
A· 16
1990
$49,271,634
2,926,158
$52,197,792
33,730,001
$18,467,791
45,114
$ 5,716,845
2.78 Times
$31,664,965
$ 6,617,904
$ 3,413,183
.-.
Electric Rates
Electric rates in the City are set by City Council Ordinance and are the same for LP&L and Southwestern except for church,
school and municipal rates, and minor variations in billing policies, and South Plains Electric Cooperative customers. Present
rates became effective October 15, 1993.
Selected Electric Rates <Effective 10..15-93)
Residential
Service Availability Charge
All kWh per month @ 4.00C per kWh used during summer months
All kWh per month @ 3.60C per kWh used during winter months
Summer Months: June -September
Winter Months: October -May
Plus: Fuel Cost Recovery (ll
Service Availability Charge:
First 1,000 kWh per month
Next 6,000 kWh per month
All additional kWh per month
General Service
$ 4.65 per month
$10.00 per month
5.10C per kWh*(Summer)
4.60C per kWh*(Winter)
2.SOC per kWh
1.03C per kWh
* Add to the first 200 kWh for every kW of demand in excess of 10 kWs. Demand: Measured as the
customers kW demand for the 30..minute period of greatest use during the month.
Plus: Fuel Cost Recovery. <I>
Minimum Charge: $10.00 per month for demand of 10 kW or less, plus $3.50 per kW for next 15 kW
above 10 kW, plus $2.30 per kW for all additional kW. No demand shall be taken as less than 50%
of highest demand established in 12 months ending with current month.
(1) Fuel Cost Recovery:
The charge per kilowatt hour shall be increased by a fuel factor per kilowatt hour as provided in current
Southwestern Public Service Tarif£7100 (Public Utility Commission of Texas sheetiV-69). The fuel factor
will remain constant for approximately one year. At this time the fuel factor is $0.020636/kWh. All rates
are subject to fuel cost recovery.
BILLINGS-WATERWORKS, SEWER, SANITATION AND ELECTRIC
Customers of the City's water, sewer and sanitation systems are billed simultaneously on one statement; if the customer is
connected to LP&L, electric charges are also included. All customers who do not pay their bill within 22 days of the date it
is mailed to them are charged a 5% late payment penalty. If the bill has not been paid on the next billing date, a statement is
mailed showing the past due bill together with the current bill. If the bill remains delinquent 7 days after the date of the second
statement, a reminder/cut-off notice is mailed. The cut-off notice specifies that service will be discontinued in 7 days if payment
in full is not made. At the end of the 7 day period, a field collector calls on the customer and if he is unable to collect payment,
service is cut off. The reconnection charge, including electric service if the customer is connected to the City's electric system,
is $15.00 before 5:00PM and $25.00 after 5:00PM and during weekends and holidays.
A -17
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APPEND1XB
FORM OF BOND COUNSEL'S OPINION
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TELEPHONE: 214/855·8000
F"ACSIM ILE: 214/855·8200
FULBRIGHT & JAWORSKI
L'LP.
A REGISTERED LIMITED LIABILITY PARTNERSHIP
2200 Ross AVENUE
SUITE 2800
DALLAS, TEXAS 75201
HOUSTON '
WASHINGTON, D.C.
AUSTIN
SAN ANTONIO
DALLAS
NEW YORK
LOS ANGELES
LONDON
HONG KONG
IN REGARD to the authorization 'and issuance of the "City of Lubbock, Texas,
Tax and Airport Surplus Revenue Certificates of Obligation, Series 1995" (the
"Certificates"), dated May 15, 1995 (the ''Certificate Date"), in the principal amount of
$900,000, we have examined into the legality and validity of the issuance thereof by the
City of Lubbock, Texa.S (the "City"), which Certificates are issuable in fully registered
form only, in denominations of $5,000, or any integral multiple thereof (within a
maturity), have stated maturities of February 15, 1996, through February 15,2000, and
bear interest on the unpaid principal amount from the Certificate Date at the rates per
annum set forth in the ordinance authorizing the issuance of the Certificates (the
"Ordinance"), such interest being payable on February 15 and August 15 in each year,
commencing February 15, 1996, to the registered owners thereof shown on the
registration books of the Paying Agent/Registrar on the Record Date (stated on the face
of the Certificates). '
WE HAVE SERVED AS BOND COUNSEL for the City solely to pass upon the
legality and validity of the issuance of the Certificates under the Constitution and laws
of the State of Texas, and with respect to the exclusion of the interest on the
Certificates from gross income for federal income tax purposes and none other. We
have not been requested to investigate or verify, and have not independently
investigated or verified, any records, data, or other material relating to the financial
condition or capabilities of the City.
OUR EXAMINATIONS into the legality and validity of the Certificates included
a review of the applicable and pertinent provisions of the Constitution and laws of the
State of Texas, a transcript of certified proceedings of the City relating to the
authorization and issuance of the Certificates, including the Ordinance, customary
certifications and opinions of officials of the City and other pertinent showings, and an
examination of the Certificate executed and delivered initially by the City, which we
found to be in due form and properly executed.
BASED ON OUR EXAMINATIONS, IT IS OUR OPINION that the Certificates
have been duly authorized by the City in compliance with the Constitution and laws of
the State of Texas now in force, and the Certificates issued in compliance with the
provisions of the Ordinance are valid, legally binding and enforceable obligations of the
City, payable from an ad valorem tax levied, within the limitations prescribed by law,
upon all taxable property within the limits of the City, and are additionally payable from
and equally and ratably secured by a lien on and pledge of the Surplus Revenues (as
defined in the Ordinance) of the City's Airport, except to the extent that the
0240182
Page 2 of Legal Opinion ~f Fulbright;& Jawor~ki 'L.L.P.
RE: $900,000 "City of Lubbock, Texas, Tax and Airport Surplus Revenue Certificates
of Obligation, Series 1995
enforceability of the Certificates and the provisions made for payment thereof may be
affected by bankruptcy, insolvency, reorganization, moratorium, or other similar laws
affecting creditors' rights or the exercise of judicial discretion in accordance with the
general principles of equity.
IT IS FURTHER OUR OPINION THAT, assuming continuing compliance after
the date hereof by the City with the provisions of the Ordinance and in reliance upon
representations and certifications of the City made in a certificate of even date herewith
pertaining to the use, expenditure, and investment of the proceeds of the Certificates,
interest on the Certificates for federal income tax purposes will be excludable from gross
income, as defined in section 61 of the Internal Revenue Code of 1986, as amended to the
date hereof, of the owners thereof pursuant to section, 103 of such Code, existing
regulations; published rulings, and court decisions thereunder, except with respect to any
Certificate for any period of time during which such Certificate is owned by a person
who, within the meaning of Section 147(a) of the Internal Revenue Code of 1986, as
amended, is a "substantial user" of any of the facilities financed from the proceeds·ofthe
Certificates or a "related person." WE CALL YOUR ATTENTION TO THE FACT
THAT INTEREST ON THE CERTIFICATES WILL BE A PREFERENCE ITEM
FULLY INCLUDABLE IN COMPUTING THE ALTERNATNE MINIMUM TAXABLE
INCOME OF THE OWNERS OF THE CERTIFICATES WHICH ARE INDNIDUALS,
CORPORATIONS, TRUSTS, OR ESTATES. Alternative minimum taxable income is the
basis on which the alternative minimum tax imposed by section 55 of the Code and the
environmental tax imposed by section 59A of the Code is computed.
WE EXPRESS NO OPINION with respect to any other federal, state, or local
tax consequences under present law or any proposed legislation resulting from the
receipt or accrual of interest on, or the acquisition or disposition of, the Certificates.
Ownership of tax-exempt obligations such as the Certificates may result in collateral
federal tax consequences to, among others, fmancial institutions, life insurance
companies, property and casualty insurance companies, certain foreign corporations
doing business in the United States, S corporations with subchapter C earnings and
profits, individual recipients of Social Security or Railroad Retirement Benefits, and
taxpayers who may be deemed to have incurred or continued indebtedness to purchase
or carry, or who have paid or incurred certain expenses allocable to, tax-exempt
obligations.
02401&2
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No Text
No Text
Financial Advisory SeiVices
Provided By
/j FIRST SOUTHWFST COMPANY
INvFsrMENTBANKERS
No Text
No Text
May 11, 1995
Attorney General of Texas
William P. Clements Building
300 West Fifteenth Street
15th Floor
Austin, Texas 78701
Attention: Public Finance Division
RE: $4,690,000, "City of Lubbock, Texas, General Obligation Bonds,
Series 199511 (the "G.O. Bonds"); $2,000,000, "City of Lubbock,
Texas, Tax and Hotel Occupancy Tax Surplus Revenue
Certificates of Obligation, Series 199511 (the "Certificates");
and $900,000 "City of Lubbock, Texas, Tax and Airport Surplus
Revenue Certificates of Obligation, Series 1995 (the "Airport
Certificates")
Ladies and Gentlemen:
Enclosed herewith are the Initial Obligations of each of the
above series and a Signature and No-Litigation Certificate relating
thereto, executed and completed except as to date.
When the record of proceedings relating to the issuance of the
above-referenced series of obligations and the Initial Obligations
have been approved by your office, this will be your authority to
insert that date in the Signature and No-Litigation Certificate and
deliver such Initial Obligations to the Comptroller of Public
Accounts for registration.
Should any litigation in any way affecting the issuance of the
obligations or the security for the payment thereof develop prior
to that date, we, the undersigned, will notify you at once by
telephone and by telegraph. You may thus be assured that there is
no such litigation at the time the obligations are finally approved
unless notice to the contrary has been given in the manner
aforementioned.
951128/0247669
l'"
our assistance in this matter.
Lubbock, Texas
City of Lubbock, Texas
951128/0247669
··'
Kathleen Battle
Bond Research
May 11, 1995
Comptroller of Public Accounts
111 East 17th Street, Room 311
Austin, Texas 78711
Re: $4,690,000, "City of Lubbock, Texas, General Obligation Bonds,
Series 1995" (the 11G. o. Bonds") ; $2,000,000, "City of Lubbock,
Texas, Tax and Hotel Occupancy Tax Surplus Revenue
Certificates of Obligation, Series 1995" (the "Certificates") ;
and $900,000 11City of Lubbock, Texas, Tax and Airport Surplus
Revenue Certificates of Obligation, Series 1995 (the "Airport
Certificates")
Dear Ms. Battle:
When the Initial Obligation of each of the series described
above has been received from the Attorney General, please register
the same on behalf of the City, and when so registered, forward
them by overnight· delivery to the firm of Fulbright & Jaworski
L.L.P., 2200 Ross Avenue, Suite 2800, Dallas, Texas 75201,
Attention: Mark s. Westergard, for further handling under our
instructions to them.
It is further requested that three copies of the approving
opinion of the Attorney General and Comptroller's Registration
Certificate with respect to each of the series described above be
enclosed with the Initial Ob · ation of each of the series
described above when they are ent said firm.
951128/0247669
No Text
Norwest Bank Minnesota
National Association
Norwest Center
May 11, 1995
Sixth and Marquette
Minneapolis, MN 55479-0069
Attention: Nancy s. Sampair
RE: $4,690,000, "City of Lubbock, Texas, General Obligation Bonds,
Series 199511 (the 11G.O. Bonds11 ); $2,000,000, 11 City of Lubbock,
Texas, Tax and Hotel Occupancy Tax Surplus Revenue
Certificates of Obligation, Series 199511 (the "Certificates");
and $900,000 11City of Lubbock, Texas, Tax and Airport Surplus
Revenue Certificates of Obligation, Series 1995 (the "Airport
Certificates")
Ladies and Gentlemen:
In reference to the above described series of obligations, the
payment for and delivery of the same to the initial purchasers is
to occur at your Bank. Preliminarily to the delivery of said
certificates, the firm of Fulbright & Jaworski L.L.P. (2200 Ross
Avenue, Suite 2800, Dallas, Texas 75201) will be receiving the
fully registered obligation of each series in the total principal
amount of each of said series (the "Obligations") from the
Comptroller of Public Accounts of the State of Texas, together with
the approving opinion of the Attorney General. After the
examination of the Obligations by said Firm, the same will be
forwarded to you and thereupon you are authorized to deliver the
same to the purchasers thereof in accordance with the payment
letters received from First Southwest Company, or their order, upon
payment being made therefor in immediately available funds in
accordance with the terms of sale and the terms of the Receipt
enclosed herewith.
When payment for the Obligations has occurred, please transmit
the proceeds thereof by the fastest means available in immediately
available funds to the City's depository bank, American State Bank,
Selma Sequick (806) 763-7061.
Enclosed herewith you will find three copies of the Signature
and No-Litigation Certificate executed and completed except as to
date. When payment for the Initial Obligations is made, please
date and release one copy of the Signature and No-Litigation
951128/0247669
l"'
,...
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certificate to the purchasers and forward the remaining copies of
said No-Litigation Certificate and all copies of the enclosed
Receipt (executed and dated) to Bond Counsel at the address shown
above.
Should any litigation having any effect upon the subject
obligations develop prior to the time you have received payment for
the same, we, the undersigned will notify you at once by telephone
and by telegraph. m hus be assured that there is no such
litigation at the ime the ob gati delivered to you unless
you have been advi d othe the m ner a ementioned.
Lubbock, Texas
City of Lubbock, Texas
951128/0247669
·,,
,,...,
May 11, 1995
Messrs. Fulbright & Jaworski L.L.P.
2200 Ross Avenue, Suite 2800
Dallas, Texas 75201
RE: $4,690,000, "City of Lubbock, Texas, General Obligation Bonds,
Series 1995" (the "G.O. Bonds"); $2,000,000, "City of Lubbock,
Texas, Tax and Hotel Occupancy Tax Surplus Revenue
Certificates of Obligation, Series 199511 (the "Certificates") ;
and $900,000 "City of Lubbock, Texas, Tax and Airport Surplus
Revenue Certificates of Obligation, Series 1995 (the "Airport
Certificates")
Gentlemen:
Enclosed you will find four Certificates as to Tax Exemption
with respect to each of the above described series of obligations
executed but undated.
At such time as the above described obligations are delivered
to the purchaser, you are authorized to complete and date each of
these Certificates Exemption.
951128/0247669
I'
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1
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!\~AN MORALES
ATTORNEY GENERAL
effice of tf)e ~ttotnep ~enetal
~tate of t!texas
June 12, 1995
THIS IS TO CERTIFY that the City of Lubbock, Texas (the
"Issuer") has submitted to me City of Lubbock. Texas. General
Obligation Bond. Series 1995 (the "Bond"), in the principal amount of
$4,690,000 for approval. The Bond is dated May 15, 1995, numbered
T-1 and was authorized by Ordinance No. 9805 of the Issuer passed and
adopted on May 11, 1995.
I have examined the law and such certified proceedings and other papers as I
deem necessary to render this opinion.
As to questions of fact material to my opinion, I have relied upon
representations of the Issuer contained in the certified proceedings and other
certifications of public officials furnished to me without undertaking to verify the same
by independent investigation.
I express no opinion relating to the Official Statement or any other offering
material relating to the Bond.
Based on my examination, I am of the opinion, as of the date hereof and under
existing law, as follows:
( 1) The Bond has been issued in accordance with law and is a valid and
binding obligation of the Issuer.
(2) The Bond is payable from the proceeds of an annual ad valorem tax levied,
within the limits prescribed by law, upon all taxable property within the Issuer.
Therefore, the Bond is approved.
No.29302
Book No.85·B
tid
512/463-2100
PRINTED ON RECYCLED PAPER
Attorney General of the State of Texas
P.O. BOX 12548 AUSTIN. TEXAS 78711-2548
AN EQUAL EMPLOYMENT OPPORTIJNITY EMPLOYER
('
/
!
OFFICE OF COMPTROLLER
OF THE STATE OF TEXAS
I, John Sharp, Comptroller of Public Accounts of the State of Texas, do
hereby certify that the attachment is a true and correct copy of the opinion of the
Attorney General approving the:
Cjty of Lubbock. Texas. General Obligation Bond. Series 1995
numbered I:!, of the denomination of$ 4.690.000, dated May 15. 1995, as
authorized by issuer, interest yarjous percent, under and by authority of which
said bonds/certificates were registered electronically in the office of the
Comptroller, on the 12th day of June. 1995, under Registration Number 57308.
Given under my hand and seal of office, at Austin, Texas, the 12th day of
June. 1995.
1'"'s4
JOHN SHARP
Comptroller of Public Accounts
of the State of Texas
No Text
OFFICE OF COMPTROLLER
OF THE STATE OF TEXAS
I, Melissa Guzman. 0Bond Clerk ~Assistant Bond Clerk in the office of the Comptroller of the
State of Texas, do hereby certify that, acting under the direction and authority of the Comptroller on
the 12th day of June. 1995. I signed the name of the Comptroller to the certificate of registration
endorsed upon the:
Ctty of Lubbock. Texas. General Obligation Bonet. Series 1995.
numbered !:1. dated May 15. 1995, and that in signing the certificate of registration I used the
following signature:
IN WITNESS WHEREOF I have executed this certificate this the 12th day of June. 1995.
~A~
I, John Sharp, Comptroller of Public Accounts of the State of Texas, certify that the person
who has signed the above certificate was duly designated and appointed by me under authority
vested in me by TEX. REV. CIV. STAT. ANN. art. 4362 (1969), with authority to sign my name to all
certificates of registration, and/or cancellation of bonds required by law to be registered and/or
cancelled by me, and was acting as such on the date first mentioned In this certificate, and that the .•
bonds/certificates described in this certificate have been duly registered in the office of the
Comptroller, under Registration Number~.
GIVEN under my hand and seal of office at Austin, Texas, this the 12th day of Jyne. 1995.
f~s4
JOHN SHARP
Comptroller of Public Accounts
of the State of Texas
No Text
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~AN MORALES
ATTORNEY GENERAL
®ffice of tbe §ttornep 8eneral
~tatt of tlttxas June 12, 1995
THIS IS TO CERTIFY that the City of Lubbock, Texas (the
"Issuer") has submitted to me Citv of Lubbock, Texas, Tax and Airport
Surplus Revenue Certificate of Obligation. Series 1995 (the "Certificate")
in the principal amount of $900,000 for approval. The Certificate is
dated May 15, 1995, numbered T-1 and was authorized by Ordinance
No. 9803 of the Issuer passed on May 11, 1995 (the "Ordinance").
I have examined the law and such certified proceedings and other papers as I
deem necessary to render this opinion.
As to questions of fact material to my opinion, I have relied upon
representations of the Issuer contained in the certified proceedings and other
certifications of public officials furnished to me without undertaking to verify the same
by independent investigation.
I express no opinion relating to the Official Statement or any other offering
. material relating to the Certificate.
Based on my examination, I am of the opinion, as of the date hereof and under
existing law, as follows (capitalized terms, except as herein defined, have the
meanings given to them In the Ordinance):
(1) The Certificate has been issued in accordance with law and is a valid and
binding obligation of the Issuer.
{2) The Certificate is payable from the proceeds of an annual ad valorem tax
levied, within the limit prescribed by law, upon all taxable property in the
Issuer, and is additionally payable from and secured by a lien on and pledge of
the Surplus Revenues of the Issuer's Airport, such lien and pledge, however,
being junior and subordinate to the lien on and pledge of the Surplus Revenues
of the Airport securing the payment of Prior Lien Obligations.
Therefore, the Certificate is approved.
No.29304
Book No. 95-8
lid
512/463-2100
l'fUNTliD ON RECYCLED PAPEil
Attorney General of the State of Texas
P.O. BOX 12548 AUSTIN, TEXAS 78711,2548
AN EQUAL EMPLOYMENT OPPORTUNITY EMPLOYER
\ i
.. ' • ·of! !· ·' _,. ... : r
OFFICE OF COMPTROLLER
OF THE STATE OF TEXAS
I, John Sharp, Comptroller of Public Accounts of the State of Texas, do
hereby certify that the attachment is a true and correct copy of the opinion of the
Attorney General approving the:
Cjty of Lubbock. Texas. Tax and Airport Surplus Revenue Certificate of
Obligation. Series 1995
numbered I:.L of the denomination of $ 900.000, dated May 15. 1995, as
authorized by issuer, interest various percent, under and by authority of which
said bonds/certificates were registered electronically in the office of the
Comptroller, on the 12th day of June. 1995, under Registration Number 57309.
_ Given under my hand and seal of office, at Austin, Texas, the 12th day of
June. 1995.
1~s4
JOHN SHARP
Comptroller of Public Accounts
of the State of Texas
No Text
OFFICE OF COMPTROLLER
OF THE STATE OF TEXAS
I, Melissa Guzman, Osond Clerk [!!Assistant Bond Clerk In the office of the Comptroller of the
State of Texas, do hereby certify that, acting under the direction and authority of the Comptroller on
the 12th day of June. 1995, I signed the name of the Comptroller to the certificate of registration
endorsed upon the:
City of Lubbock. Texas. Tax and Airport Syr:p!ys Revenue Certificate of Obligation, Series 1995,
numbered I:!. dated May 15. 1995, and that in signing the certificate of registration I used the
following signature: /l
' ~~
IN WITNESS WHEREOF I have executed this certificate this the 12th day of Jyne. 1995.
~Jk ~.~
I, John Sharp, Comptroller of Public Accounts of the State of Texas, certify that the person
who has signed the above certificate was duly designated and appointed by me under authority
vested in me by TEX. REV. CIV. STAT. ANN. art. 4362 (1969), with authority to sign my name to all
certificates of registration, and/or cancellation of bonds required by law to be registered and/or
cancelled by me, and was acting as such on the date first mentioned in this certificate, and that the
bonds/certificates described in this certificate have been duly registered in the office of the
Comptroller, under Registration Number~.
~IVEN under my hand and seal of office at Austin, Texas, this the 12th day of June. 1995.
f4s4
JOHN SHARP
Comptroller of Public Accounts
of the State of Texas
No Text
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t\.~AN MORALES
49ffice of tbe §ttornep ~eneral
iS>tatt of t!t:txas June 12, 1995
ATTORNEY GENERAL • THIS IS TO CERTIFY that the C1ty of Lubbock, Texas {the
"Issuer") has submitted to me Citv of Lubbock. Texas. Tax and Hotel
Occupancy Tax Sumlus Revenue Certificate of Obligation. Series 1995
(the "Certificate") in the principal amount of $2,000,000 for approval.
The Certificate is dated May 15, 1995, numbered T-1 and was
authorized by Ordinance No. 9804 of the Issuer passed on May 11,
1995 (the "Ordinance").
I have examined the law and such certified proceedings and other papers as I
deem necessary to render this opinion.
As to questions of fact material to my op1n1on, I have relied upon
representations of the Issuer contained in the certified proceedings and other
certifications of public officials furnished to me without undertaking to verify the same
by independent investigation.
I express no opinion relating to the Official Statement or any other offering
material relating to the Certificate.
Based on my examination, I am of the opinion, as of the date hereof and under
existing law, as follows {capitalized terms, except as herein defined, have the
meanings given to them in the Ordinance):
(1) The Certificate has been issued in accordance with law and is a valid and
binding obligation of the Issuer.
(2) The Certificate is payable from the proceeds of an annual ad valorem tax
levied, within the limit prescribed by law, upon all taxable property in the
Issuer, and is additionally payable from a pledge of a portion of the revenues
received from a Hotel Occupancy Tax levied by the Issuer, such pledge,
however, being junior and subordinate to the pledge of the Hotel Occupancy
Tax securing the payment of the Prior Lien Obligations.
Therefore, the Certificate is approved.
"No. 29303
Book No. 95-8
lkl
512/463~2100
PRINTED ON BECt'C!.ED PAPliR
Attorney General of the State of Texas
P.O. BOX 12548 AUSTIN, TEXAS 78711-2548
AN EQUAL EMPLOYMENT OPPORTUNITY EMPLOYER
• 4 ...
J f 'I ,. I
OFFICE OF COMPTROLLER
OF THE STATE OF TEXAS
I, John Sharp, Comptroller of Public Accounts of the State of Texas, do
hereby certify that the attachment is a true and correct copy of the opinion of the
Attorney General approving the:
City of Lubbock.· Texas. Tax and Hotel Occupancy Tax Surplus Reyenye
Certificate of Obligation. Series 1995
numbered I:1, of the denomination of$ 2.000.000, dated May 15. 1995, as
authorized by issuer, interest yarioys percent, under and by authority of which
said bonds/certificates were registered electronically in the office of the
Comptroller, on the 12th day of June. 1995, under Registration Number 5731 0.
Given under my hand and seal of office, at Austin, Texas, the 12th day of
June. 1995.
1,4s4
JOHN SHARP
Comptroller of Public Accounts
of the State of Texas
No Text
OFFICE OF COMPTROLLER
OF THE STATE OF TEXAS
I, Melissa Gyzman, Osond Clerk ~Assistant Bond Clerk in the office of the Comptroller of the
State of Texas, do hereby certify that, acting under the direction and authority of the Comptroller on
the 12th day of Jyne. 1995, I signed the name of the Comptroller to the certificate of registration
endorsed upon the:
City of Lubbock. Texas. Tax and Hotel Occypancy Tax Syr:p!ys Revenye Certificate of Qbljgation.
Series 1995,
numbered I:l, dated May 15. 1995, and that In signing the certificate of registration I used the
following signature:
IN WITNESS WHEREO~er>JI~e this the 12th da~ of June. 1995. ~~
I, John Sharp, Comptroller of Public Accounts of the State of Texas, certify that the person
who has signed the above certificate was duly designated and appointed by me under authority
vested in me by TEX. REV. CIV. STAT. ANN. art. 4362 (1969), with authority to sign my name to all
certificates of registration, and/or cancellation of bonds required by law to be registered and/or
cancelled by me, and was acting as such on the date first mentioned In this certificate, and that the
bonds/certificates described in this certificate have been duly registered in the office of the
Comptroller, under Registration Number mJjl.
GIVEN under my hand and seal of offiCe at Austin, Texas, this the 12th day of Jyne. 1995.
1,4s4
JOHN SHARP
Comptroller of Public Accounts
of the State of Texas
No Text
No Text
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--I
CERTIFICATE AS TO TAX EXEMPTION
The undersigned, being the duly chosen and qualified
Assistant City Manager for Financial Services of the City of
Lubbock, Texas (the "Issuer"), hereby certifies with respect to
CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1995,11
dated May 15, 1995, in the principal amount of $4,690,000 (the
"Bonds") and the CITY OF LUBBOCK, TEXAS, TAX AND HOTEL OCCUPANCY
TAX SURPLUS REVENUE CERTIFICATES OF OBLIGATIONS, SERIES 1995 1 dated May 15, 1995, in the principal amount of $2,000,000 (the
"Certificates"), as follows.
A. General.
1. I, along with other officers of the Issuer, am charged
with the responsibility for issuing the Bonds and the certificates
(collectively referred to as the "Obligations").
2. This certificate is made pursuant to sections 103 and
141 through 150 of the Internal Revenue Code of 1986, as amended
to the date hereof (the "Code"), and Treasury Regulations issued
thereunder (the "Regulations").
3. This certificate is based on the facts and estimates
described herein in existence on this date, which is the date of
delivery of the Obligations to and payment for the Obligations by
the initial purchasers thereof, and, on the basis of such facts
and estimates, the Issuer expects that the future events described
herein will occur.
B. Purpose and Size.
1. The Bonds are being issued pursuant to Ordinance
No. 9805 of the Issuer, finally adopted by the City council of the
Issuer on May 11, 1995, (hereinafter referred to as the "Bond
Ordinance••) to finance improvements to the Issuer's library, parks
and fire department (the "Bond Project"). The Certificates are
being issued pursuant to Ordinance No. 9804 of the Issuer, finally
adopted by the City Council of the Issuer on May 11, 1995,
(hereinafter referred to as the "Certificate Ordinance") to
finance civic center improvements (the "Certificate Project").
Capitalized terms used and not defined herein have the same ·
meaning given to them in the Bond Ordinance and the Certificate
Ordinance.
2. The Bond Project and the Certificate Project
951128/0250938.04
,....I
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(collectively, the "Projects") will be owned, operated, and
maintained by the Issuer, and the Issuer has not contracted in any
manner with any company, firm or other person or entity to operate
and/or maintain the Projects or any part of them, for and on
behalf of the Issuer. The Issuer does not expect to enter into
any contract for the operation, maintenance or management of the
Projects or any part of them.
3. There is not, and as of the date hereof the Issuer does
not anticipate entering into, any lease, contract or other
understanding or arrangement, such as a take-or-pay contract or
output contract, with any person other than a state or local
governmental unit pursuant to which the Issuer expects that
proceeds of the Obligations, or the facilities financed therewith,
will be used in the trade or business of such person (including
all activities of such persons who are not individuals).
4. The amounts received from the sale of the Obligations,
when added to the amounts expected to be received from the
investment thereof, do not exceed the amounts required to pay the
costs of the Projects and of issuing the Obligations.
5. No receipt from the sale of the Obligations or amounts
received from the investment thereof will be used to pay the
principal of or interest on any presently outstanding issue of
bonds or other similar obligations of the Issuer other than the
Obligations.
c. Source and Disbursement of Funds.
1. The Bonds are being issued and delivered to the
purchaser or purchasers thereof on the date hereof upon payment of
the aggregate agreed purchase price of $4,690,000 plus accrued
interest thereon. The amount received from the purchaser or
purchasers of the Bonds representing accrued interest is being
deposited on the date hereof in the Interest and Sinking Fund for
the Bonds and will be used to pay the first payment of interest to
become due on the Bonds on February 15, 1996.
2. The Certificates are being issued and delivered to the
purchaser or purchasers thereof on the date hereof upon payment of
the aggregate agreed purchase price of $2,000,000 plus a premium
of $21.25 and accrued interest thereon. The amount received from
the purchaser or purchasers of the Certificates representing
accrued interest is being deposited on the date hereof in the
Certificate Fund for the Certificates and will be used to pay the
first payment of interest to become due on the Certificates on
February 15, 1996.
951128/0250938.04 -2-
No Text
3. Costs of issuance relating to the Obligations are
estimated to be $111,300.11 and will be paid by the Issuer from
sales proceeds of the Obligations. The remainder of the sale
proceeds will be credited to the cohstruction fund of the Issuer
(the "Construction Fund"), will be accounted for separately from
all other funds on the books of account of the Issuer, and will be
used to pay costs of the Projects~ The Issuer estimates that
$184,000 in income and profit will b~ received from the investment
of the amounts deposited to the Construction Fund pending the
disbursement of such amounts for the governmental purposes for
which the Obligations are being issued. All of such income and
profit will be used to pay any cost overruns on the Projects or if
there are none, deposited to the Certificate Fund and used to pay
principal of and interest on the Obligations within one year of
receipt.
D. Temporary Periods and Time for Expenditures.
1. Within six months from the date hereof, the Issuer will
have incurred binding obligations or commitments to third parties
for the Projects in the amount of at least 5% of the net sales
proceeds of the Obligations.
2. After entering into said contracts, completion of the
Projects and the allocation of net sales proceeds of the
Obligations to expenditures will proceed with due diligence.
3. The Issuer expects that all of the net sales proceeds of
the Obligations will be spent within three years from the date
hereof, and that all investment proceeds of the Obligations will
be spent within one year from the date of receipt.
4. Approximately $-0-of the proceeds of the Obligations
will be used to reimburse the Issuer for Project expenditures made
by it from its own funds prior to the date hereof. The Issuer
adopted an official intent for the original expenditures (except
possibly for expenditures meeting the preliminary expenditures
exception set forth in section 1.150-2(f) (2) of the Regulations)
not later than 60 days after payment of the original expenditures,
and a copy of such official intent is attached to this Certificate
As To Tax Exemption. Except for expenditures meeting the
preliminary expenditures exception set forth in section 1.150-
2(f)(2) of the Regulations, the Obligations are being issued and
the reimbursement allocation is hereby being made not later than
18 months after the later of (i) the date the original
expenditures were paid, or (ii) the date the Project is placed in
service or abandoned, but in no event more than 3 years after the
original expenditures were paid. The original expenditures were
capital expenditures, and in connection with this allocation, the
Issuer has not employed any abusive arbitrage device under section
1.148-10 of the Regulations to avoid the arbitrage restrictions or
to avoid restrictions under section 142 through 147 of the Code.
95112810250938.04 -3-
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E. Certificate Fund and Pledged Hotel Occupancy Tax Fund.
1. Pursuant to the Bond Ordinance and the Certificate
Ordinance, the Issuer has levied a tax on all taxable property in
the Issuer to pay principal of and interest on the Obligations as
such become due, and such tax has been pledged to the payment of
the Obligations. Amounts collected from such tax for the payment
of the principal of and interest on the Obligations are to be
deposited to the credit of the Certificate Fund or the Interest
and Sinking Fund for the Bonds, as appropriate, maintained on the
books of the Issuer (collectively, the 11Interest and Sinking
Funds11 ). In addition, amounts collected from Pledged Hotel Tax
Receipts, after deduction of payments required for Prior Lien
Obligations, will be deposited as needed into the Certificate Fund
to pay interest and principal then due on the Certificates.
2. The Certificate Ordinance requires that Pledged Hotel
Tax Receipts shall be deposited as received in the Pledged Hotel
Occupancy Tax Fund, to be disbursed in the following order of
priority:
a. for the payment of all amounts required to be
deposited in the special Funds maintained for the payment,
security and benefit of Prior Lien Obligations in accordance
with the terms and provisions of any ordinance authorizing
the issuance of Prior Lien Obligations;
b. for the payment, equally and ratably, of the amounts
required to be deposited in the special funds and accounts
created and established for the payment of the Certificates
(the Certificate Fund) as provided in Section 14 of the
certificate Ordinance and any special fund or account
maintained for the payment of Additional Certificates;
c. for use by the Issuer for any other purpose of the
Issuer now or hereafter permitted by law.
3. The Interest and Sinking Funds will be maintained by the
Issuer primarily to achieve a proper matching of revenues and debt
service payments within each bond year. The Issuer expects that
the following will occur with respect to the money in the Interest
and Sinking Funds:
a. Such funds will be depleted at least once each bond
year, except possibly for a carryover amount not to exceed
the greater of the previous bond year's earnings on the
Interest and Sinking Funds or one-twelfth of the previous
bond year's debt service requirements on the certificates;
b. All amounts deposited to such fund to pay debt
service on the Obligations will be spent within 13 months of
deposit; and
951128tD250938.04 -4-
No Text
c. All amounts received from the investment of such
funds will be deposited therein and will be expended within
twelve months of receipt.
4. Except as described above, no funds of the Issuer have
been or will be pledged to payment of the principal of or interest
on the Obligations or otherwise restricted so as to give
reasonable assurance of the availability of such funds for such
purpose.
F. Yield and Nonpurpose Investments.
1. The discount factor required to reduce the principal and
interest to be paid on the Obligations to a present value on the
date hereof, compounding semiannually, equal to the initial
offering prices at which a substantial amount of each maturity of
the Obligations was sold to the public, is 5.2906854%. In
determining the initial offering price at which a substantial
amount of each maturity of the Obligations was sold to the public,
the Issuer has relied on certificates from the managing
underwriters that purchased the Bonds.
2. No other obligations of the Issuer which are reasonably
expected to be paid from substantially the same source of funds as
the Obligations were sold within 15 days from the date the
Obligations were sold except the Issuer's Tax and Airport Surplus
Revenue Certificates of Obligation, Series 1995.
3. The Issuer has covenanted in the Bond Ordinance and in
the Certificate Ordinance that it will account separately for the
proceeds of the Obligations, that it will calculate or cause to be
calculated the earnings on all Nonpurpose Investments made with
proceeds of the Obligations, and that it will make payments to the
United States Treasury of any "arbitrage profits" on such
investments at least every 5 years and at the maturity of the
Obligations together with any such reports as the Secretary of the
Treasury shall prescribe, as may be required by Section 148(f) of
the Code.
4. The Issuer has been advised by NationsBanc capital
Markets, the purchaser of the Certificates, that the present value
of the savings to be realized as a result of insuring the Bonds is
greater than the present value of the net insurance premium using
the yield on the Bonds as the discount factor.
G. Qualified Guarantee on the Bonds.
1. The Issuer has paid on the date hereof to Capital
Guaranty Insurance Corporation (the "Guarantor") $8, 000 (the
"Insurance Premium") to insure the payment of principal and
interest on the Bonds.
2 • The Guarantor is not exempt from federal income taxation
951128/D250938.04 -5-
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and by issuing its insurance has caused the Bonds to be rated
"AAA" by Standard & Poor's Corporation. Neither the Guarantor nor
any person related to the Guarantor within the meaning of section
144(a) (3) of the Code will use 10 percent or more of the Bonds in
a private business use within the meaning of section 141(b) (6) of
the Code.
3. Under the contract between the Guarantor and the Issuer,
the Guarantor is unconditionally and with full recourse obligated
to pay all or a portion of the principal or interest on the Bonds.
4. The Issuer reasonably expects that the Guarantor will
not be called upon to make a payment of principal or interest on
the Bonds. The Guarantor is entitled to be immediately and fully
reimbursed for any payment of principal or interest on the Bonds.
5. The Insurance Premium paid to the Guarantor represents
a payment solely for the transfer of credit risk for the payment
of principal and interest on the Bonds and not for any other
service, cost or expense. The Insurance Premium does not exceed
a reasonable charge for the transfer of such credit risk.
6. The Insurance Premium has been allocated among each of
the Bonds in a manner that properly reflects the proportionate
credit risk for which the Guarantor has been compensated.
H. No Abusive Arbitrage Device.
1. In connection with the issuance of the Obligations, the
Issuer has not employed any action which has the effect of
overburdening the market for tax-exempt obligations by issuing
more bonds, issuing bonds earlier, or allowing bonds to remain
outstanding longer than is reasonably necessary to accomplish the
governmental purposes of the Obligations.
2. In connection with the issuance of the Obligations, the
Issuer has not employed any action which has the effect of
enabling the Issuer to exploit the difference between tax-exempt
and taxable interest rates to gain a material financial advantage.
95112810250938.04 -6-
No Text
JUN 15 1995
EXECUTED AND DELIVERED ---------
CITY OF LUBBOCK, TEXAS
~VQi~~(
Financial Services
-7-
( I ~ ,
.. ,
No Text
,...
CERTIFICATE AS TO TAX EXEMPTION
The undersigned, being the duly chosen and qualified
Assistant city Manager for Financial Services of the City of
Lubbock, Texas (the "Issuer"), hereby certifies with respect to
the CITY OF LUBBOCK, TEXAS, TAX AND AIRPORT SURPLUS REVENUE
CERTIFICATES OF OBLIGATION, SERIES 1995, dated May 15, 1995, in
the principal amount of $900,000 (the "Obligations"), as follows.
A. General.
1. I, along with other officers of the Issuer, am charged
with the responsibility for issuing the Obligations.
2. This certificate is made pursuant to Sections 103 and
141 through 150 of the Internal Revenue Code of 1986, as amended
to the date hereof (the "Code"), and Treasury Regulations issued
thereunder (the "Regulations").
3. This certificate is based on the facts and estimates
described herein in existence on this date, which is the date of
delivery of the Obligations to and payment for the Obligations by
the initial purchasers thereof, and, on the basis of such facts
and estimates, the Issuer expects that the future events described
herein will occur.
B. Purpose and size.
1. The certificates are being issued pursuant to Ordinance
No. 9803 of the Issuer, finally adopted by the City Council of the
Issuer on May 11, 1995, (hereinafter referred to as the
"Ordinance") to pay contractual obligations to be incurred for (i)
apron improvements at the freight development area at the City's
Airport (the "Project") and professional services rendered in
connection therewith. Capitalized terms used and not defined
herein have the same meaning given to them in the Ordinance.
2. At least 95% of the proceeds of the Obligations will be
used to provide airport facilities within the meaning of section
142 (a) (1) of the Code. The Project will be owned by the Issuer at
all times prior to the final maturity of the Obligations. The
acquisition and construction of the Project does not constitute
the acquisition of used property.
3. The Issuer timely obtained public approval for the
Obligations required by section 147(f) of the Code. The weighted
95112810250852.03
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average maturity of the Obligations does not exceed 120% of the
average reasonably expected economic life of the Projects, both as
calculated under section 147(b) of the Code.
4. The amounts received from the sale of the Obligations,
when added to the amounts expected to be received from the
investment thereof, do not exceed the amounts required to pay the
cost of the Project and of issuing the Obligations.
5. No receipt from the sale of the Obligations or amounts
received from the investment thereof will be used to pay principal
or interest on any presently outstanding issue of bonds or other
similar obligations of the Issuer, other than the Obligations.
c. source and Disbursement of Funds.
1. The Obligations are being issued and delivered to the
purchasers on the date hereof upon payment of the aggregate agreed
purchase price of par, plus accrued interest.
2. The amount received from the purchasers of the
Obligations representing accrued interest is being deposited on
the date hereof in the Certificate FUnd and will be used to pay
the first payment of interest to become due on the Obligations on
February 15, 1996.
3. Costs of issuance relating to the Obligations are
estimated to be $18,173.84, of which.$18,121.58 will be paid by
the Issuer from the proceeds of sale of the Obligations, and
$52.26 will be paid from other funds of the Issuer. The remainder
of the proceeds of the Bonds will be credited to the construction
fund of the Issuer (the "Construction Fund11 ), will be accounted
for separately from all other funds on the books of account of the
Issuer, and will be used to pay costs of the Projects. The Issuer
estimates investment earnings in the aggregate amount of $25,000
will be received from the investment of the amounts deposited to
the Construction FUnd pending the disbursement of such amounts for
the governmental purposes the Obligations are being issued to pay.
All of such investment earnings and profit will be used to pay any
cost overruns on the Projects or if there are none, deposited to
the Certificate Fund and used to pay principal of and interest on
the Obligations within one year of receipt.
951128/0250852.03 -2-
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D. Temporarv Periods and Time for EXPenditures.
1. Within six months from the date hereof, the Issuer will
have incurred binding obligations or commitments to third parties
for the Project in the amount of at least 5% of the net sales
proceeds of the Obligations.
2. After entering into said contracts, completion of the
Project and the allocation of net sales proceeds of the
Obligations to expenditures will proceed with due diligence.
3. The Issuer expects that all of the net sales proceeds of
the Obligations will be spent within three years from the date
hereof, and that all investment proceeds of the Obligations will
be spent within one year from the date of receipt.
4. Approximately $-0-of the proceeds of the Obligations
will be used to reimburse the Issuer for Project expenditures made
by it from its own funds prior to the date hereof. With respect
to such reimbursement, if any, the Issuer adopted an official
intent for the original expenditures (except possibly for
"preliminary expenditures" as defined in section 1.1S0-2(f)(2) of
the Regulations) not later than 60 days after payment of the
original expenditures, and a copy of such official intent is
attached to this Certificate As To Tax Exemption. Except for
expenditures meeting the preliminary expenditures exception set
forth in section 1.150-2(f)(2) of the Regulations, the Obligations
are being issued and the reimbursement allocation is hereby being
made not later than 18 months after the later of (i) the date the
original expenditures were paid, or (ii) the date the Project is
placed in service or abandoned, but in no event more than 3 years
after the original expenditures were paid. The original
expenditures were capital expenditures, and in connection with
this allocation, the Issuer has not employed any abusive arbitrage
device under section 1.148-10 of the Regulations to avoid the
arbitrage restrictions or to avoid restrictions under section 142
through 147 of the Code.
E. Certificate fund and Airport Fund.
1. Pursuant to the Ordinance, the Issuer has levied a tax
on all taxable property in the Issuer to pay principal of and
interest on the Obligations as such become due, and such tax, as
well as surplus Revenues of the Airport, have been pledged to the
payment of the Obligations. Amounts collected from the tax and
surplus Revenues for the payment of principal and interest on the
Obligations are to be deposited to the credit of the Certificate
Fund maintained on the books of the Issuer.
951128/D250852.03 -3·-
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2. The certificate Fund will be maintained by the Issuer
primarily to achieve a proper matching of revenues and debt
service payments within each bond year. The Issuer expects that
the following will occur with respect to the money in the
Certificate Fund:
a. Such fund will be depleted at least once each bond
year, except possibly for a carryover amount not to exceed
the greater of the previous bond year's earnings on the
certificate Fund or one-twelfth of the previous bond year's
debt service requirements on the Obligations;
b. All amounts deposited to such fund to pay debt
service on the Obligations will be spent within 13 months of
deposit; and
c. All amounts received from the investment of such
funds will be deposited therein and will be expended within
twelve months of receipt.
3. The Ordinance requires that all revenues received by the
Issuer by reason of its ownership and operation of the Airport
(the 11Gross Revenues") shall be deposited as received in the
Airport Fund, to be disbursed in the following order of priority:
a. To the payment of the amounts required to be
deposited in the special Funds created and established for
the payment, security and benefit of Prior Lien Obligations
in accordance with the terms and provisions of the ordinances
authorizing the issuance of Prior Lien Obligations;
b. To the payment of all necessary and reasonable
Operating Expenses of the Airport, as defined in the
Ordinance, to be a charge on and claim against the Gross
Revenues; and
c. To the payment of the amounts required to be
deposited in the special funds and accounts created and
established for the payment of the certificates and
Additional Certificates.
d. for use by the Issuer for any other purpose of the
Issuer now or hereafter permitted by law.
4. Except as described above, no funds of the Issuer have
been or will be pledged to the payment of principal or interest on
the Obligations, or otherwise restricted so as to give reasonable
assurance of the availability of such funds for such purpose.
951128/0250852.03 -4-
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F. Yield and Nonpurpose Investments.
1. The discount factor required to reduce the principal and
interest to be paid on the Obligations to a present value on the
date hereof, compounding semiannually, equal to the initial
offering prices at which a substantial amount of each maturity of
the Obligations was sold to the public, is 4.6528129%. In
determining the initial offering price at which a substantial
amount of each maturity of the Obligations was sold to the public,
the Issuer has relied on certificates from the managing
underwriter that purchased the Bonds.
2. No other obligations of the Issuer which are reasonably
expected to be paid from substantially the same source of funds as
the Obligations were sold within 15 days from the date the
Obligations were sold, except for the Issuer's General Obligation
Bonds, Series 1995 and the Issuer's Tax and Hotel Occupancy Tax
surplus Revenue Certificates of Obligation, Series 1995.
3. The Issuer has covenanted in the Ordinance that it will
account separately for the proceeds of the Obligations, that it
will calculate or cause to be calculated the earnings on all
Nonpurpose Investments made with proceeds of the Obligations, and
that it will make payments to the United states Treasury of any
"arbitrage profits" on such investments at least every 5 years and
at the maturity of the Obligations together with any such reports
as the secretary of the Treasury shall prescribe, as may be
required by Section 148(f) of the Code.
G. No Abusive Arbitrage Device.
1. In connection with the issuance of the Obligations, the
Issuer has not employed any action which has the effect of
overburdening the market for tax-exempt obligations by issuing
more bonds, issuing bonds earlier, or allowing bonds to remain
outstanding longer than is reasonably necessary to accomplish the
governmental purposes of the Bonds.
2. In connection with the issuance of the Obligations, the
Issuer has not employed any action which has the effect of
enabling the Issuer to exploit the difference between tax-exempt
and taxable interest rates to gain a material financial advantage.
951128/D250852.03 -5-
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EXECUTED AND DELIVERED ___ J_U_N_f .;..5 ...::f9=9~:a5_.
951128/0250852.03
CITY OF LUBBOCK, TEXAS
rill~~~
Assistant City ~
Financial Services
-6-
No Text
No Text
No Text
RECEIPT FOR PAYMENT
THE STATE OF TEXAS §
§
COUNTY OF LUBBOCK §
On the date hereof the following described bonds: "CITY" OF
LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 199511 , dated May
15, 1995, in the agqreqate principal amount of $4, 690,000 (the
11Bonds11 ) were delivered to the purchaser(s) thereof, namely:
NationsBanc Capital Markets, Inc.
following the receipt of immediately available funds from the
purchaser(s) in settlement of the agreed purchase price for the
Bonds as follows:
PRINCIPAL AMOUNT-------------$4,690 000
ACCRUED INTEREST ------------$ 22, ~2 7 · 60
TOTAL AMOUNT RECEIVED ON
DELIVERY OF THE BONDS -------$4,712,927 .60 ·;
Furthermore, the undersiqned has on the date of this receipt
transmitted to American state Bank, Lubbock, Texas, Attention:
Selma Sedgwick (the depository bank of the issuer) the above amount
of funds for credit to the issuer's account in accordance with the
instructions received.
DELIVERED, this __ J_u_n_e __ 15~,_1_9_9_5 ____________ __
llll1128/D247M7
NORWEST BANK MINNESOTA
NATIONAL ASSOCIATION
Minneapolis, Minnesota
Title Assistant Vice President
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THE STATE OF TEXAS §
§
COUNTY OF LUBBOCK §
RECEIPT FOR PAYMENT
On the date hereof the followinq described bonds: "CITY OF
LUBBOCK, TEXAS, TAX AND HOTEL OCCUPANCY TAX SURPLUS REVENUE
CERTIFICATES OF OBLIGATION, SERIES 1995", dated May 1.5, 1.995, in
the aqqreqate principal amount of $2,000,000 (the "Certificates")
were delivered to the purchaser(s) thereof, namely:
First Southwest Company
followinq the receipt of immediately available funds from the
purchaser(s) in settlement of the aqreed purchase price for the
Certificates as follows:
PRINCIPAL AMOUNT-------------$2,000,000
ACCRUED INTEREST ------------$ 8, 542.33
TOTAL AMOUNT RECEIVED ON
DELIVERY OF THE CERTIFICATES $2 ~ 008, 543.33
Furthermore, the undersiqned has on the date of this receipt
transmitted to American State Bank, Lubbock, Texas, Attention:
Selma Sedqwick (the depository bank of the issuer) the above amount
of funds for credit to the issuer's account in accordance with the
instructions received.
DELIVERED, this
91ll128J0247662
June 15, 1995
NORWEST BANK MINNESOTA
NATIONAL ASSOCIATION
Minneapolis, Minnesota
Title Assistant Vice President
No Text
No Text
No Text
,..
RECEIPT FOR PAYMENT
THE STATE OF TEXAS S
§
COUNTY OF LUBBOCK §
On the date hereof the followinq described bonds: "CITY OF
LUBBOCK, TEXAS, TAX AND AIRPORT SURPLUS REVENUE CERTIFICATES OF
OBLIGATION, SERIES 199511 , dated May 15, 1995, in the aqqreqate
principal amount of $900,000 (the "Certificates") were delivered to
the purchaser(s) thereof, namely:
National Financial Services Corp.
followinq the receipt of immediately available funds from the
purchaser(s) in settlement of the aqreed purchase price for the
certificates as follows:
PRINCIPAL AMOUNT-------------$900,000
ACCRUED INTEREST ------------$ 3,962~81
TOTAL AMOUNT RECEIVED ON
DELIVERY OF THE CERTIFICATES $903,962.81
Furthermore, the undersiqned has on the date of this receipt
transmitted to American State Bank, Lubbock, Texas, Attention:
Selma Sedqwick (the depository bank of the issuer) the above amount
of funds for credit to the issuer's account in accordance with the
instructions received.
DELIVERED, this
D247674191ll128
June 15, 1995
NORWEST BANK MINNESOTA
NATIONAL ASSOCIATION
Minneapolis, Minnesota
Title Assistant Vice President
No Text
No Text
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ISSUE PRICE CERTIFICATE
The undersigned hereby certifies with respect to the sale of $4,690,000 CITY OF LUBBOCK, TEXAS GENERAL
OBLIGA110N BONDS, SERIES 1995 (the "Bonds•):
I. The undersigned is the underwriter or the manager of the syndicate of uaderwriten which bas purchased the Bonds from
City of Lubbock, Texas (the "Issuer") at competitive sale. .
2. The undersigned atld/or one or more other members of the underwriting syndicate, if any, have made a bona fide offering
to the public of the Bonds of each maturity at the respective prices set forth below.
3. The initial offering price (expressed as a percentage of principal amount or yield and exclusive of accrued interest) for the
Bonds of each maturity at which a substantial amount of the Bonds of such maturity was sold to the public is as set forth below:
Principal Offering Principal Offering
Amount Year of Price Amount Year of Price
Maturing M•tumx (!!/Yield} Maturing Matu!itx (~fXicld)
$230,000 1996 41 20 ~ $235,000 2006 5125 ,;
230,000 1997 4.45 % 23S,OOO 2007 5.35 %
23.5,000 1998 4.55 ~ 23.5,000 2008 ~~45 ~
235,000 1999 4.65 • 23.5,000 2009 5.55 ,;
23.5,000 2000 4.75,; 23.5,000 2010 5160 •
23.5,000 2001 4.85 ,; 23S,OOO 2011 ~.65 •
23.5,000 2002 4,95 ,; 23.5,000 2012 5~:70 %
23.5,000 2003 5,00 ,; 23.5,000 2013 5.75 " 23.5,000 2004 5.10 • 235,000 2014 5.75 ,;
23.5,000 2005 5.15 • 23.5,000 2015 5.75 ,;
4. The term "public," as used herein, means persons other than bondbouscs, brokers, dealers, and similar persons or
organizations actina in the capacity of uaderwriten or wholesalers •
.5. The offering prices described above reflect current market prices at the time of 111ch sales.
6. The undersigned and/or one or more other members of the UDderwriti.ng syndicate, as the ceg rr.f rr· ~ave~'Y.aet)
purchased bond insurance for the Bonds. The bond insurance, if any, bas been purchased from 1 =~l.fF=~ee u~ n (the
"Insurer") for • premium cost of$ 8 I 000 t 00 (net of any nonguarantee cost, e.g., rating agency ecs).'c amount
of such cost is set forth in the Insurer's commitment and is separately stated from all other fees or charges payable to the
Insurer. The premium does not exceed a reasonable charge for the tra.nsfer of credit risk taking into account payments charged
by parantors in comparable tra.nsactions (including tra.nsactions in which a parantor bas no involvement other than as a
parantor). The present value of the debt service savings expccted to be realized as a result of such insurance, discounted at
a rate equal to the yield on the Bonds which results after recovery of the insurance premium, exceeds the present value of the
bond insurance premium.
7. The undersigned understands that the statements made herein will be relied upon by the Issuer in its effort to comply with
the conditions imposed by the lntcrna.l Revenue Code of 1986, as amended, on the excludability of interest on !he Bonds from
the gross income of their owners.
EXECUTED and DELIVERED this 15th day of _.....:=J:.:u:.::n::::e:..-_ _.. 199S.
Nat1onsBanc Capital Markets. Inc.
(Name of Underwriter or Manager)
By• ~~ ~Q\.1'1LY Cheryl Y am
Investment Officer
Tide
No Text
City Secretazy
ISSUE PRICE CERTIFICATE
The undersigned hereby certifies with respect to the sale of $2,000,000 CITY OF LUBBOCK, TEXAS TAX AND HOTEL
OCCUPANCY TAX SURPLUS REVENUE CERTIFICATES OF OBLIGATION, SERJES 1995 (the "Certificates"):
1. The undersigned is the underwriter or the DW~ager of the syndicate of underwriters which has purchased the Certificates &om
City of Lubbock, Texas (the "Issuer") at competitive sale.
2. The undersi,llned and/or one or more other members of the underwriting syndicate, if any, have made a bona fide offering
to the public of the Certificates of each maturity at the respective prices set forth below.
3. The initial offerin,ll price (expressed as a percentage of principal amount or yield and exclusive of accrued interest) for the
Certificates of each maturity at which a substantia! amount of the Certificates of such maturity was sold to the public is as set
forth below:
Principal Offering
Amount Year of Price
MatuJ:im~ Maturi~ (!\!Yield}
$ 265,000 1996 dLtJ %
310,000 1997 1/-.!b %
330,000 1998 ~~.~ %
345,000 1999 4_/:o ,.;
365,000 2000 ~t~ %
385,000 2001 ~12. %
4. The term "public," as used herein, means persons other than bondhouses, brokers, dealers, and similar persons or
organizations acting in the capacity of underwriters or wholesalers.
5. The offering prices described above reflect current market prices at the time of such sales.
6. The undersigned and/or one or more other members of the underwriting syndicate, as the case may be, .....,(have not)
purchased bond insurance for the Certificates. The bond insurance, if any, has been purchased &om--------
(the "Insurer") for a premium cost of$ (net of any nonguarantce cost, e.g., rating agency fees). The amount
of such cost is set forth in the Insurer's commitment and is separately stated from all other fees or chqes payable to the
Insurer. The premium does not exceed a reasonable charge for the transfer of credit risk: taking into account payments charged
by guarantors in comparable transactions (including transactions in which a guarantor has no involvement other than as a
guarantor). The present value of the debt service savings expected to be realized as a result of such insurance, discounted at
a rate equal to the yield on the Certificates which results after recovery of the insurance premium, exceeds the present value
of the bond insurance premium.
7. The undersigned understands that the statements made herein will be relied upon by the lssuer in its effort to comply with
the conditions imposed by the Internal Revenue Code of 1986, as amended, on the excludability of interest on the Certificates
&om the gross income of their owners. n£
EXECUTED and DELIVERED this //-day of /11,1; Y I ' 1995.
E/t:sr £vHiitEsrfkt;/JJ.
(Name of Underwriter or Manager)
By'~ I
J/.e£~,e
Tide
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No Text
ISSUE PRICE CERTIFICATE
The undersigned hereby certifies with respect to the sale of $900,000 CITY OF LUBBOCK, TEXAS TAX AND AIRPORT
SURPLUS REVENUE CERTIFICATES OF OBLIGATION, SERIES 1995 (the "Certificates"):
I. The undersigned is the underwriter or the manager of the syndicate of underwriters which has purchased the Certificates from
City of Lubbock, Texas (the "Issuer") at competitive sale.
2. The undersigned and/or one or more other members of the underwriting syndicate, if any, have made a bona fide offering to the
public of the Certificates of each maturity at the respective prices set forth below.
3. The initial offering price (expressed as a percentage of principal amount or yield and exclusive of accrued interest) for the
Certificates of each maturity at which a substantial amount of the Certificates of such maturity was sold to the public is as set forth
below:
Principal Offering
Amount Year of Price
Maturing Maturi~ (%/Yield}
$150,000 1996 4.20 %
170,000 1997 ~.~Q %
180,000 1998 ~.flQ %
195,000 1999 ~.10 %
205,000 2000 ~.ao %
4. The term "public," as used herein, means persons other than bondhouses, brokers, dealers, and similar persons or organizations
acting in the capacity of underwriters or wholesalers.
5. The offering prices described above reflect current market prices at the time of such sales.
6. The undersigned and/or one or more other members of the underwriting syndicate, as the case may be, ~ave not) purchased
bond insurance for the Certificates. The bond insurance, if any, has been purchased from (the "Insurer")
for a premium cost of$ (net of any nonguarantee cost, e.g., rating agency fees). The amount of such cost is set
forth in the Insurer's commitment and is separately stated from all other fees or charges payable to the Insurer. The premium does
not exceed a reasonable charge for the transfer of credit risk taking into account payments charged by guarantors in comparable
transactions (including transactions in which a guarantor has no involvement other than as a guarantor). The present value of the
debt service savings expected to be realized as a result of such insurance, discounted at a rate equal to the yield on the Certificates
which results after recovery of the insurance premium, exceeds the present value of the bond insurance premium.
7. The undersigned understands that the statements made herein will be relied upon by the Issuer in its effort to comply with the
conditions imposed by the Internal Revenue Code of 1986, as amended, on the excludability of interest on the Certificates from the
gross income of their owners.
EXECUTED and DELIVERED this --'l'""S...;t;..;.h~-day of _.....;::J;,.;u;.:;n:.;:e;...._ __ ,, 1995.
Fidelity Capital Markets
(Name of Underwriter or Manager)
By,WJ/~~--
Williall:Haracz
Underwriting Coordinator
Title
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TI!:L.EPHONE: 214/SSS-6000
I'"ACSIMIL.I!:: 214/SSS-6200
FULBRIGHT & JAWORSKI
L. L. P.
A REGISTERED LIMITED LIABILITY PARTNERSHIP
2200 Ross AVENUE
SUITE 2800
DALLAS, TEXAS 75201
June 15, 1995
HOUSTON
WASHINGTON, D.C.
AUSTIN
SAN ANTONIO
CALLAS
NEW YORK
L.OS ANGEL.I!:S
LONDON
HONG KONG
IN REGARD to the authorization and issuance of the "City of Lubbock, Texas,
General Obligation Bonds, Series 1995" (the "Bonds"), dated May 15, 1995 (the "Bond
Date"), in the principal amount of $4,690,000, we have examined into the legality and
validity of the issuance thereof by the City of Lubbock, Texas (the "City"), which Bonds
are issuable in fully registered form only, in denominations of $5,000 or any integral
multiple thereof (within a maturity), have stated maturities of February 15, 1996
through February 15, 2015, unless redeemed prior to maturity in accordance with the
terms stated on the Bonds, and bear interest on the unpaid principal amount from the
Bond Date at the rates per annum stated in the ordinance authorizing the issuance of
the Bonds (the "Ordinance"), such interest being payable on February 15 and August 15
in each year, commencing February 15, 1996, to the registered owners thereof shown
on the registration books of the Paying Agent/Registrar on the Record Date (stated on
the face of the Bonds).
WE HAVE SERVED AS BOND COUNSEL for the City solely to pass upon the
legality and validity of the issuance of the Bonds under the Constitution and laws of
the State of Texas, and with respect to the exclusion of the interest on the Bonds from
gross income for federal income tax purposes and none other. We have not been
requested to investigate or verify, and have not independently investigated or verified,
any records, data or other material relating to the financial condition or capabilities of
the City.
OUR EXAMINATIONS into the legality and validity of the Bonds included a
review of the applicable and pertinent provisions of the Constitution and laws of the
State of Texas, a transcript of certified proceedings of the City relating to the
authorization and issuance of the Bonds, including the Ordinance, customary
certifications and opinions of officials of the City and other pertinent showings, and an
examination of the Bond executed and delivered initially by the City, which we found
to be in due form and properly executed.
BASED ON OUR EXAMINATIONS, IT IS OUR OPINION that the Bonds have
been duly authorized by the City in compliance with the Constitution and laws of the
State of Texas now in force, and the Bonds issued in compliance with the provisions of
the Ordinance are valid, legally binding and enforceable obligations of the City, payable
from the proceeds of an ad valorem tax levied, within the limitations prescribed by law,
upon all taxable property in the City, except to the extent that the enforceability
thereof may be affected by bankruptcy, insolvency, reorganization, moratorium, or other
0240178
No Text
Page 2 of Legal Opinion of Fulbright & J aworsld L.L.P.
Re: $4,690,000 "City of Lubbock, Texas, General Obligation Bonds, Series 199511,
dated May 15, 1995
similar laws affecting creditors' rights or the exercise of judicial discretion in
accordance with. general principles of equity.
IT IS FURTHER OUR OPINION THAT, assuming continuing compliance after
the date hereof by the City with the provisions of the Ordinance and in reliance upon
representations and certifications of the City made in a certificate of even date herewith
pertaining to the use, expenditure, and investment of the proceeds of the Bonds,
interest on the Bonds for federal income tax purposes (1) will be excludable from gross
income, as defined in section 61 of the Internal Revenue Code of 1986, as amended to
the date hereof, of the owners thereof pursuant to section 103 of such Code, existing
regulations, published rulings, and court decisions thereunder, and (2) will not be
included in computing the alternative minimum taxable income of individuals or, except
as hereinafter described, corporations. Interest on all tax-exempt obligations, such as
the Bonds, owned by a corporation will be included in such corporation's adjusted
current earnings for tax years beginning after 1989 for purposes of calculating the
alternative minimum taxable income of such corporations, other than an S corporation,
a qualified mutual fund, a real estate mortgage investment conduit (REMIC), or a real
estate investment trust (REIT). A corporation's alternative minimum taxable income
is the basis on which the alternative minimum tax imposed by section 55 of the Code
and the environmental tax imposed by section 59A of the Code is computed.
WE EXPRESS NO OPINION with respect to any other federal, state, or local
tax consequences under present law or any proposed legislation resulting from the
receipt or accrual of interest on, or the acquisition or disposition of, the Bonds.
Ownership of tax-exempt obligations such as the Bonds may result in collateral federal
tax consequences to, among others, financial institutions, life insurance companies,
property and casualty insurance companies, certain foreign corporations doing business
in the United States, S corporations with subchapter C earnings and profits, individual
recipients of Social Security or Railroad Retirement Benefits, and taxpayers who may
be deemed to have incurred or continued indebtedness to purchase or carry, or who
have paid or incurred certain expenses allocable to, tax-exempt obligations.
0240178
No Text
No Text
•
TELEPHONE:: 214/855·8000
f"ACSIMILE:: 214/855•8200
FULBRIGHT & JAWORSKI
L.L.P.
A REGISTE:AE:D LIMITED LIABILITY PARTNERSHIP
2200 ROSS AVENUE
SUITE 2800
DALLAS, TEXAS 75201
June 15, 1995
HOUSTON
WASHINGTON, D.C.
AUSTIN
SAN ANTONIO
DALLAS
NEW YOAK
LOS ANGELES
LONDON
HONG KONG
IN REGARD to the authorization and issuance of the "City of Lubbock, Texas,
Tax and Hotel Occupancy Tax Surplus Revenue Certificates of Obligation, Series 1995"
(the "Certificates"), dated May 15, 1995 (the "Certificate Date"), in the principal amount
of $2,000,000, we have examined into the legality and validity of the issuance thereof
by the City of Lubbock, Texas (the "City"), which Certificates are issuable in fully
registered form only, in denominations of $5,000, or any integral multiple thereof
(within a maturity), have stated maturities of February 15, 1996 through February 15,
2001, and bear interest on the unpaid principal amount from the Certificate Date at the
rates per annum set forth in the ordinance authorizing the issuance of the Certificates
(the "Ordinance"), such interest being payable on February 15 and August 15 in each
year, commencing February 15, 1996, to the registered owners thereof shown on the
registration books of the Paying Agent/Registrar on the Record Date (stated on the face
of the Certificates).
WE HAVE SERVED AS BOND COUNSEL for the City solely to pass upon the
legality and validity of the issuance of the Certificates under the Constitution and laws
of the State of Texas, and with respect to the exclusion of the interest on the
Certificates from gross income for federal income tax purposes and none other. We
have not been requested to investigate or verify, and have not independently
investigated or verified, any records, data, or other material relating to the financial
condition or capabilities of the City.
OUR EXAMINATIONS into the legality and validity of the Certificates included
a review of the applicable and pertinent provisions of the Constitution and laws of the
State of Texas, a transcript of certified proceedings of the City relating to the
authorization and issuance of the Certificates, including the Ordinance, customary
certifications and opinions of officials of the City and other pertinent showings, and an
examination of the Certificate executed and delivered initially by the City, which we
found to be in due form and properly executed.
BASED ON OUR EXAMINATIONS, IT IS OUR OPINION that the Certificates
have been duly authorized by the City in compliance with the Constitution and laws of
the State of Texas now in force, and the Certificates issued in compliance with the
provisions of the Ordinance are valid, legally binding and enforceable obligations of the
City, payable from an ad valorem tax levied, within the limitations prescribed by law,
upon all taxable property within the limits of the City, and are additionally payable from
and equally and ratably secured by a lien on and pledge of the Pledged Hotel Tax
Receipts (as defined in the Ordinance), except to the extent that the enforceability of the
0240181
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Page 2 of Legal Opinion of Fulbright & Jaworski L.L.P.
RE: $2,000,000 "City of Lubbock, Texas, Tax and Hotel Occupancy Tax Surplus
,.. Revenue Certificates of Obligation, Series 1995
Certificates and the provisions made for payment thereof may be affected by bankruptcy,
insolvency, reorganization, moratorium, or other similar laws affecting creditors' rights
or the exercise of judicial discretion in accordance with the general principles of equity.
IT IS FURTHER OUR OPINION THAT, assuming continuing compliance after
the date hereof by the City with the provisions of the Ordinance and in reliance upon
representations and certifications of the City made in a certificate of even date herewith
pertaining to the use, expenditure, and investment of the proceeds of the Certificates,
interest on the Certificates for federal income tax purposes (1) will be excludable from
the gross income, as defined in section 61 of the Internal Revenue Code of 1986, as
amended to the date hereof, of the owners thereof pursuant to section 103 of such Code,
existing regulations, published rulings, and court decisions thereunder, and (2) will not
be included in computing the alternative minimum taxable income of individuals or,
except as hereinafter described, corporations. Interest on all tax-exempt obligations, such
as the Certificates, owned by a corporation will be included in such corporation's
adjusted current earnings for tax years beginning after 1989 for purposes of calculating
the alternative minimum taxable income of such corporations, other than an S
corporation, a qualified mutual fund, a real estate mortgage investment conduit
(REMIC), or a real estate investment trust (REIT). A corporation's alternative minimum
taxable income is the basis on which the alternative minimum tax imposed by section 55
of the Code and the environmental tax imposed by section 59A of the Code is computed.
WE EXPRESS NO OPINION with respect to any other federal, state, or local
tax consequences under present law or any proposed legislation resulting from the
receipt or accrual of interest on, or the acquisition or disposition of, the Certificates.
Ownership of tax-exempt obligations such as the Certificates may result in collateral
federal tax consequences to, among others, fmancial institutions, life insurance
companies, property and casualty insurance companies, certain foreign corporations
doing business in the United States, S corporations with subchapter C earnings and
profits, individual recipients of Social Security or Railroad Retirement benefits, and
taxpayers who may be deemed to have incurred or continued indebtedness to purchase
or carry, or who have paid or incurred certain expenses allocable to, tax-exempt
obligations.
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0240181
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TELE:PHON E: 214/8!5!5·6000
F'ACSIMILE:: 214/855·8200
FULBRIGHT & JAWORSKI
L.L.P.
A REGISTERED LIMITED LIABILITY PARTNERSHIP
2200 ROSS AVENUE
SUITE 2800
DALLAS, TEXAS 75201
June 15, 1995
HOUSTON
WASHINGTON, D.C.
AUSTIN
SAN ANTONIO
DALLAS
NEW YORK
LOS ANGELES
LONDON
HONG KONG
IN REGARD to the authorization and issuance of the "City of Lubbock, Texas,
Tax and Airport Surplus Revenue Certificates of Obligation, Series 1995" (the
"Certificates"), dated May 15, 1995 (the "Certificate Date"), in the principal amount of
$900,000, we have examined into the legality and validity of the issuance thereofby the
City of Lubbock, Texas (the "City"), which Certificates are issuable in fully registered
form only, in denominations of $5,000, or any integral multiple thereof (within a
maturity), have stated maturities of February 15, 1996, through February 15,2000, and
bear interest on the unpaid principal amount from the Certificate Date at the rates per
annum set forth in the ordinance authorizing the issuance of the Certificates (the
"Ordinance"), such interest being payable on February 15 and August 15 in each year,
commencing February 15, 1996, to the registered owners thereof shown on the
registration books of the Paying Agent/Registrar on the Record Date (stated on the face
of the Certificates).
WE HAVE SERVED AS BOND COUNSEL for the City solely to pass upon the
legality and validity of the issuance of the Certificates under the Constitution and laws
of the State of Texas, and with respect to the exclusion of the interest on the
Certificates from gross income for federal income tax purposes and none other. We
have not been requested to investigate or verify, and have not independently
investigated or verified, any records, data, or other material relating to the fmancial
condition or capabilities of the City.
OUR EXAMINATIONS into the legality and validity of the Certificates included
a review of the applicable and pertinent provisions of the Constitution and laws of the
State of Texas, a transcript of certified proceedings of the City relating to the
authorization and issuance of the Certificates, including the Ordinance, customary
certifications and opinions of officials of the City and other pertinent showings, and an
examination of the Certificate executed and delivered initially by the City, which we
found to be in due form and properly executed.
BASED ON OUR EXAMINATIONS, IT IS OUR OPINION that the Certificates
have been duly authorized by the City in compliance with the Constitution and laws of
the State of Texas now in force, and the Certificates issued in compliance with the
provisions of the Ordinance are valid, legally binding and enforceable obligations of the
City, payable from an ad valorem tax levied, within the limitations prescribed by law,
upon all taxable property within the limits of the City, and are additionally payable from
and equally and ratably secured by a lien on and pledge of the Surplus Revenues (as
defined in the Ordinance) of the City's Airport, except to the extent that the
0240182
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Page 2 of Legal Opinion of Fulbright & Jaworski L.L.P.
RE: $900,000 11City of Lubbock, Texas, Tax and Airport Surplus Revenue Certificates
of Obligation, Series 1995
enforceability of the Certificates and the provisions made for payment thereof may be
affected by bankruptcy, insolvency, reorganization, moratorium, or other similar laws
affecting creditors' rights or the exercise of judicial discretion in accordance with the
general principles of equity.
IT IS FURTHER OUR OPINION THAT, assuming continuing compliance after
the date hereof by the City with the provisions of the Ordinance and in reliance upon
representations and certifications of the City made in a certificate of even date herewith
pertaining to the use, expenditure, and investment of the proceeds of the Certificates,
interest on the Certificates for federal income tax purposes will be excludable from gross
income, as defined in section 61 of the Internal Revenue Code of 1986, as amended to the
date hereof, of the owners thereof pursuant to section 103 of such Code, existing
regulations,.published rulings, and court decisions thereunder, except with respect to any
Certificate for any period of time during which such Certificate is owned by a person
who, within the meaning of Section 14 7(a) of the Internal Revenue Code of 1986, as
amended, is a "substantial user" of any of the facilities fmanced from the proceeds of the
Certificates or a ''related person ... WE CALL YOUR ATTENTION TO THE FACT
THAT INTEREST ON THE CERTIFICATES WILL BE A PREFERENCE ITEM
FULLY INCLUDABLE IN COMPUTING THE ALTERNATIVE MINIMUM TAXABLE
INCOME OF THE OWNERS OF THE CERTIFICATES WHICH ARE INDIVIDUALS,
CORPORATIONS, TRUSTS, OR ESTATES. Alternative minimum taxable income is the
basis on which the alternative minimum tax imposed by section 55 of the Code and the
environmental tax imposed by section 59A of the Code is computed.
WE EXPRESS NO OPINION with respect to any other federal, state, or local
tax consequences under present law or any proposed legislation resulting from the
receipt or accrual of interest on, or the acquisition or disposition of, the Certificates.
Ownership of tax-exempt obligations such as the Certificates may result in collateral
federal tax consequences to, among others, financial institutions, life insurance
companies, property and casualty insurance companies, certain foreign corporations
doing business in the United States, S corporations with subchapter C earnings and
profits, individual recipients of Social Security or Railroad Retirement Benefits, and
taxpayers who may be deemed to have incurred or continued indebtedness to purchase
or carry, or who have paid or incurred certain expenses allocable to, tax-exempt
obligations.
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0240182
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CAPITAL GUARANTY INSURANCE COMPANY
MUNICIPAL BOND GUARANTY INSURANCE POLICY
IN THE EVENT CAPITAL GUARANTY INSURANCE COMPANY IS UNABLE TO
FULFILL ITS CONTRACTUAL OBLIGATION UNDER THIS POLICY OR CONTRACT
OR APPLICATION OR CERTIFICATE OR EVIDENCE OF COVERAGE, THE
POLICYHOLDER OR CERTIFICATEHOLDER IS NOT PROTECTED BY AN INSURANCE
GUARANTY FUND OR OTHER SOLVENCY PROTECTION ARRANGEMENT.
Policy No: 95-0172-15TX1-10
Capital Guaranty Insurance Company ( ••capital Guaranty") in
consideration of the payment of the premium and subject to the
terms of this policy, hereby unconditionally and irrevocably
guarantees to any owner, as hereinafter defined, of the following
described Obligations, the full and complete payment required to
be made by or on behalf of the Issuer to: Norwest Bank Minnesota,
National Association, Minneapolis, Minnesota or its successor (the
"Paying Agent 11 ) of an amount equal to (i) the principal of (either
at the stated maturity or by any advancement of maturity pursuant
to a mandatory sinking fund payment) and interest on, the
Obligations (as that term is defined below) as such payments shall
become due but shall not be so paid (except that in the event of
any acceleration of the due date of such principal by reason of
mandatory or optional redemption or acceleration resulting from
default or otherwise, other than any advancement of maturity
pursuant to a mandatory sinking fund payment, the payments
guaranteed hereby shall be made in such amounts and at such times
as such payments of principal would have been due had there not
been any such acceleration); and (ii) the reimbursement of any
such payment which is subsequently recovered fro~ any owner
pursuant to a final judgment by a court of competent jurisdiction
that such payment constitutes an avoidable preference to such
owner within the meaning of any applicable bankruptcy law. The
amounts referred to in clauses (i) and (ii} of the preceding
sentence shall be referred to herein collectively as the 11 Insured
Amounts. •• "Obligation•• shall mean:
ISSUER: City of Lubbock, Texas
(Lubbock County)
ISSUE: $4,690,000 General Obligation Bonds, Series 1995
GUARANTIED MATURITIES: Serial Bonds maturing February 15, 1996,
through February 15, 2015
DATED DATE: May 15, 1995
No Text
Upon receipt of telephonic or telegraphic notice, such notice
subsequently confirmed in writing by registered or certified mail,
or upon receipt of written notice by registered or certified mail,
by the Claims Officer or its designee from the Paying Agent or any
owner of an Obligation the payment of an Insured Amount for which
is then due, that such required payment has not been made, Capital
Guaranty on the due date of such payment or within one business
day after receipt of notice of such nonpayment, whichever is
later, will make a deposit of funds, in an account with its
Disbursing Agent or its successor, sufficient for the payment of
any such Insured Amounts which are then due. Upon presentment and
surrender of such Obligations or presentment of such other proof
of ownership of the Obligations, together with any appropriate
instruments of assignment to evidence the assignment of the
Insured Amounts due on the Obligations as are paid by Capital
Guaranty and appropriate instruments to effect the appointment of
Capital Guaranty as agent for such owners of the Obligations in
any legal proceeding relating to payment of Insured Amounts on the
Obligations, such instruments being in a form satisfactory to
Capital Guaranty, Capital Guaranty shall cause its Disbursing
Agent to disburse to such owners or the Paying Agent payment of
the Insured Amounts due on such Obligations, less any amount held
by the Paying Agent for the payment of such Insured Amounts and
legally available therefor. This policy does not insure against
loss of any prepayment premium which may at any time be payable
with respect to any Obligation.
As used herein, the term "owner" shall mean the registered owner
of any Obligation as indicated in the books maintained by the
Paying Agent, the Issuer, or any designee of the, Issuer for such
purpose. The term owner shall not include the Issuer or any party
whose agreement with the Issuer constitutes the underlying
security for the Obligations.
As used herein, the term "Disbursing Agent" means a bank or trust
company selected by Capital Guaranty or a successor Disbursing
Agent, designated to receive and remit funds on behalf of Capital
Guaranty.
This policy is non-cancellable for any reason. The premium on
this policy is not refundable for any reason including the payment
prior to maturity of the Obligations.
Any service of process on Capital Guaranty may be made to the
Secretary, Capital Guaranty Insurance Company, One Market, Steuart
Tower, 22nd Floor, San Francisco, California 94105-1413 and such
service of process shall be valid and binding.
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In Witness Whereof, Capital Guaranty has caused this policy to be
executed by its Senior Vice President and Assistant Secretary
as of the 15th day of June, 1995.
CAPIT]l~U~ ~NSJRANCE COMPANY
By: l:{Ib~
obert M. Kessler
Title: Senior Vice President
By:
Title:
Effective Date: June 15, 1995
Resident Agent Countersignature
Agency: C.A. Schutze Agency
Stephen P. Schutze
Address: 1101 South Congress
Austin, Texas~ 787~4 ---"' ' ·-,/ ~:-:./
By: .. .<I~-' /.
Date: June 12, 1995
TX9-BS
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Capttai Guaranty Insurance Company
Steuart Tower • 22nd Floor
One Market
Sa11 Franc:sco, CA 94105
(4151995-8000
£4151 995 80C8 Telecopier
June 15, 1995
City of Lubbock, Texas
CAPITAL~ARANTV
Re: LEGAL OPINION
$4,690,000
City of Lubbock, Texas
(Lubbock County)
General Obligation Bonds, Series 1995
Dated Date: May 15, 1995
(the "Obligations")
Municipal Bond Guaranty Insurance Policy Number: 95-0172-15TX1-10
Ladies and Gentlemen:
I am the Associate General Counsel of Capital Guaranty Insurance
Company, a stock insurance company incorporated in the State of
Maryland ("Capital Guaranty") and, as such, am familiar with the
corporate affairs of Capital Guaranty.
In connection with the issuance by Capital Guaranty of a certain
municipal bond guaranty insurance policy on the date hereof (the
"Municipal Bond Guaranty Insurance Policy") insuring the payment of the
principal of and interest on the above-captioned Obligations, I have
examined such documents and reviewed such questions of law and
procedures as I deemed necessary or appropriate for the purpose of this
opinion and, on the basis of such knowledge, examination and review,
you are advised that in my opinion:
(1) Capital Guaranty has been duly incorporated and is validly
existing and in good standing under the laws of the State of
Maryland; and
(2) the Municipal Bond Guaranty Insurance Policy was issued in
the ordinary course of business and constitutes the legal,
valid and binding obligation of Capital Guaranty enforceable
in accordance with its terms, subject, as to enforcement, to
bankruptcy, insolvency, reorganization, rehabilitation and
other similar laws of general applicability relating to or
affecting creditors' and/or claimants' rights against
insurance companies and to general equity principles.
. .
$4,690,000 City of Lubbock, Texas
(Lubbock County)
General Obligation Bonds, Series 1995
June 15, 1995
Page 2
I am admitted to practice law in the State of Texas and do not hold
myself out as expert in, generally familiar with, or qualified to
express legal conclusions as to the laws of any other state, except for
the matters expressly set forth in the foregoing opinion.
This opinion is intended solely for your benefit and is not to be
relied upon by any person other than you without my prior written
consent. I specifically disclaim any express or implied obligation to
update or continue the opinions or references contained hereinabove
beyond the present date.
Very truly yours, \2~ 0: f}-tw ,' Sf--
Robert J. David
Vice President
Associate General Counsel
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Blanket Issuer Letter of Representations
· [To be Completed by Issuer)
City of Lubbock, Texas
(Name ar lssun)
Attention: Underwriting Department-Eligibility
The Depository Trust Company
S5 \Vater Street; 50th Floor
New York. to.'Y 10041-0099
Ladies and Gentlemen:
May 11, 1995
[D;atef
This letter sets 'forth our understanding with respect to all issues (the ·securities .. ) that Issuer
shall request be made eligible for deposit by The Depository Trust Company (•DTCi.
To induce DTC to accept the Securities as eligible Cor deposit at DTC. and to act in accordance
with DTCi Rules with respect to the Securities, Issuer represents to DTC that Issuer will comply
with the requirements stated ln DTC's Operational Amngements. as they may be amended from
time to time.
~
Schedule A contains statements that DTC beli ves aa:urateJy describe orc. the method or etrectinl •
entrv tnliisf'ers or securities distributed through DTC. cerbin mated matters.
THE DEPOSITORYTRUSTCOMPANY
By.~~~~
Title: Mayor
Address: 1625 13th Street
Lubbock, Texas 79401
Phone: (806) 767-2025
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SAMPLE OFFERING DOCUMENT LANGUAGE
DESCRIBING BOOK-ENTRY-ONLY ISSUANCE
SCIIEDULE .\
(Prepared by DTC-bn.cketed material may be applicable only to certain issues)
1. The Depository Trust Compmy (•OTC"), New York. NY. wlll act as securities depository for the
securities (the ·securities·). The Securities wiU be issued as fully-registered securities registered in the
name of Cede & Co. (DTC"s partnership nominee). One fully-registered Security certificate will be
issued for [each issue of] the Securities, (each] in the aggregate principal amount of such issue, and wiU
be deposited with DTC. [If. however, the aggregate prtncipal amount of [any] issue exceeds S200
million. one certificate wiD be issued with respect to e-.LCh $.200 million of prtncipal amount and an
additional certi.&cate wiD be issued with respect to any remaining principal amount of such issue.]
2. DTC is a limited-purpose trust compal)y organized under the New York Banking Law, a •banking
organization• withiri the meaning of the New York Banking Law, a member of the Federal Reserve
System. a •dearing corporation .. within the meaning of the New York Uniform Commen:ial Code. and a
•clearing agency• registered pursuant to the provisions of Section 17 A of the Securities Exchange Act of
1934. DTC holds securities that its participants (•Pazticipants1 deposit with DTC. DTC also fac:llitates
the settlement among Participants of securities transactions, such as transfers and pledges, in deposited
securities through electronic computerized book-entty changes In Partidpants' accounts. thereby
eliminating the need for physical movement of securities certificates. Direct Participants include
securities brokers and dealers, banks, trust companies, clearing corporations, and certain other
organizations. DTC is owned by a number of its Direct Participants and by the New York Stock
Exchange. Inc .. the Ameri.can Stock Exchange. Inc.. and the National Assoc::iation of Securities Dealers,
Inc. Access to the DTC system is also available to others such as securities brokers and dealers. banb,
and trust companies that clear through or maintain a custod.iaJ relationship with a Direct Participant.
either directly or indirectly (•Indirect Participants1. The Rules applicable to DTC and its Participants
are on file with the Securities and Exchange Commission.
3. Purchases of Securities under the DTC system must be made by or through Direct Participants.
which wiU receive a c::redit for the Securities on DTC's records. The ownership interest of each actual
purchaser of each Security \BeneRcial Owner'") is In tum to be recorded on the Direct and Indirect
Participants' records. Beneficial Owners will not receive written confirmation from DTC of their
purchase. but· Beneficial Owners are expected to receive written confirmations providing details of the
transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant
through which the Benefidal Owner entered into the transaction. Transfers of ownership interests in the
Securities are to be accomplished by entries made on the books of Participants acting on behalf of
Beneficial Owners. BeneRcial Owners wiU not receive certificates representing their 0\Vnership interests
In Securities, except In the event that use of the book-entry system for the Securities is discontinued.
4. To fac:llitate subsequent transfers. aD Securities deposited by Participants with DTC are. registered
In the name of DTC's partnership nominee. Cede & Co. The deposit of Securities with DTC and their
registration in the name of Cede & Co. effect no change in beneficial ownership. DTC has no
knowledge of the actual Benelidal Owners of the Securities; D'I'C"s records reflect only the identity of
the Direct Participants to whose accounts such Securities are c::redited. which may or may not be the
Beneficial Owners. 1be Participants will remain responsible for keeping account of their holdings on
behalf of their customers.
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5. Con,-eyance of notices and other communic-.r.tions by DTC to Direct Participants. by Direct
Participants to Indirect Participants. and by Direct Participants and Indirect Participants to Beneftcial
Owners will be governed by arrangements among them. subject to any statutory or regulatory
requirements as may be in effect from time to time.
[6. Redemption notices shall be sent to Cede & Co. If less than all of the Securities within an issue are
being redeemed. DTC's practice Is to determine by lot the amount of the interest of each Direct
Participant in such issue to be redeemed.) .
1. Neither DTC nor Cede & Co. will consent or vote with respect to Securities. Under its wual
procedures. DTC mails an Omnibw Proxy to the Issuer as soon as possible after the record da.te. The
Omnibw Proxy assigns Cede & Co.k consenting or voting rights to those Direct Participants to whose
a.ccounts the Securities are credited on the record date (identified in a listing attached to the Omnibw
Proxy}.
8. Principal and interest payments on the Securities will be made to DTC. DTC's practice is to credit
Direct Participants' accounts on payable da.te ln a.ccordance with their respective holdings shown on
DTC's records unless DTC has reason to believe that It will not receive payment on payable date.
Payments by Participants to Beneficial Owners will be governed by standing instructions and c::ustomary
practices, IS is the case with securities held for the accounts of customers in bearer form or registered in
"street name, • and wiU be the responsibility of such Participant and not of DTC, the Agent. or the
Issuer, subject to any statutory or regulatory requirements as may be ln effect from time to time.
Payment of principal and Interest to DTC is the responsibility of the Issuer or the Agent. disbursement
of such payments to Direct Participants shall be the responsibility of DTC, and disbursement of such
payments to the Benerldal Owners shall be the responsibility of Direct and Indirect Participants.
(9. A Beneracial Owner shall give notice to elect to have its Securities purchased or tendered. through
its Participant. to the [TenderJRemarlceting) Agent. and shall effect delivery of such Securities by causing
the Direct Participant to transfer the Partidpantk interest In the Securities, on DTC's records. to the
[Tender/Remarketing) Agent. 1be requirement for physical delivery of Securities In connection with a
demand for pun:hase or a mandatory pun:hase wiU be deemed satisfied when the ownership rights In
the Securities are ~ferred by Direct Participants on DTCs records.)
10. DTC may discontinue providing its services IS securities depository with respect to the Securities
at any time by giving reasonable notice to the Issuer or the Agent. Under such circumst.ances,ln the
event that a successor securities depository Is not obtained. Security certificates are required to be
printed and delivered.
11. The Issuer may decide to discontinue use of the system of boolc-entry transfers through DTC (or
a succ:essor securities depository). In that event. Security certificates will be printed and delivered.
12. The Information In this section concerning DTC and DTC's boolc-entry system bas been obtained
from sources that the Issuer believes to be reliable. but the Issuer talces no responsibility for the
accuracy thereof.
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A.PPE.VDIX B -Variable Rate Demand Oblig:uions (VRDOs)
This scction.is intended to advise issuers, agents and Participants (the parties to the Book-Entry-
Only (BEO) issue) of additional operational requirements necessary to process VRDOs through
the depository.
1. In the event that certain Securities are not subject to a partial redemption., DTC will exclude
such Securities from its redemption procedures if such exclusion is requested as follows. Such
request shall be in writing and shall contain: (a) certification by Trustee or Issuer that the
principal amount of such Securities is not subject to the partial redemption and certification
by a custOdianiDTC Participant that the Participants position on DTCs records includes
such Securities; and (b) certification by Trustee or Issuer that the election to exclude such
Securities from the partial redemption is authorized under the Document. Such request shall
· be sent to DTC's Call Notification Department in the manner indicated on page ll,
paragraph 4b., to assure that such request is in DTCs possession no later than the close of
business two business days before the Publication Date of the partial redemption notice.
2. It is understood that for so long as optional tenders of the Securities may be made daily
folJowing same-day or seven-day notice, such tenders will be effec:ted by means of DTCs
Deliver Order Procedures. DTC shall have no responsibility to distribute notices regarding
such optional tenders, or to ascertain whether any such tender has been made. EXcept as
otherwise provided herein., and in accordance with DTC's procedures for exercise of voting
and consenting rights, the parties hereto acknowledge that so long as Cede &: Co. is the sole
record owner of rhe Securities it shall be entided r:o all voting rights applicable to the
SecUrities and to receive the Cull amount of all distributions payable with respect to the
Securities. The parties acknowledge that DTC shall treat any DTC Participant
("Pan:icipantj having Securities crediteC:l to its DTC accounts IS entided to the full benefits
of ownership of such Securities even if the credits of Securities to the DTC accounts of such
Participant result from failures to deliver Securities or improper deliveries of Securities by an
owner of Securities subject to tender for purchase. Without limiting the generality o( the
preceding sentence, the panics acknowledge that DTC shall treat any Participant having
Securities credited to its DTC accounts IS entided to receive distributions and voting rights,
if any, with respect to the Securities and to receive certificates evidencing Securities if such
certificates are r:o be issued in accordance with paragraphs 4 &: S of Appendix A. (The
treatment by DTC of the effects of the crediting bY it of Securities r:o the accounts of
Participants described in the preceding two sentences shaD not affect the rights of the parties
hereto against any Participant.)
3.It is understood that for so long as optional tenders of the Securities may be made less
frequendy than daily following same-day or seven-day notice (e.g., during a monthly,
quarterly, semi-annual, or annual tender period) and Cede &: Co., IS nominee of DTC, or its
registered ~. as the record owner of Securities, is entided ro tender the Securities, such
tenders will be effected by means of DTC's Put OJ-tion Procedures. Under the Put Option
Procedures, DTC will receive during the applicable tender period instrUctions &om its
Participants r:o tender Securities for purchase. The parties agree that such tenders for
purchaSe maY be made by DTC by means of a book-enay credit of such Securities to the
account of Tender Agent. provided that such credit is made on or before the final day of the
applicable tender ~riod. DTC agrees that. promptly after the recording of any such book-
entry credit. it will provide to Tender Agent an Agent Put Daily Activity Report in
accordance with the Put Option Procedures, identifying the Securiaes and the aggregate
principal amount thereof IS to which such tenders for purChase have been made.
Trustee or Issuer shall send a notice to DTC regarding such optional tenders of Securities by
hand or by a secure means (e.g., legible telecopy. registered or certified mail, overnight
delivery) in a timely manner designed r:o ensure i:bat sUch notice is in DTC's possession no
later than the close of business two business days before the Publication Date. The
Publication Date shall be not less than 1S days rrior to the SCU't of the applicable tender
period. Such notice shall state whether any pan:ia redemption of the Securiaes is scheduled
to occur during the applicable optional tender period.
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(
,...
If delivered by hand or sent by mail or overnight delivery, such notice shall be sent to:
Supenisor, Put Bond Unit
Reorganization Depanment
The Depository Trust Company
7 Hanover Squue; 23rd Floor
New York, NY 1()()()4..269S
I( sent by telecopy, such notice shall be sent to (212) 709-1093 or (212) 709-1094: Trustee or
, Issuer shall confirm DTO receipt of such telecopy by telephoning (212) 709-1470.
For so long as the Securities are SDFS Securities, principal ~yments (plus accrued interest,
if any) as the result of option21 tenders for purchase effected by means of DTCs Put Option
Procedures shall be received by DTC on each purchase date in same-day funds in the
manner set forth in the SDFS Paying Agent Operating Procedures". Such payments shaD be
sent in time to be credited to DTO account at the FRBNY no later than 10:00 a.m. (Paying
Agenti local time) on the purchase date or as soon as possible thereafter following Paying
Agent's receipt of funds from Issuer. It is understood that: (a) until DTC receives such
payments in Its FRBNY account, the optionally tendered Securities will remain in Tender
Agenti DTC accounc; and (b) unless DTC receives such payments in its FRBNY account by
2:00 p.m. (Eastern Tune), it may be unable to distribute such payments to DTC Participants
or release the Securities to the Remarketing Agent that same day.
For so long as the Securities are NDFS Securities, principal ~yments (plus accrued interest,
if any) as the result of option21 tenders for purchase effected means Of DTO Put Option
Procedures shall be received by Cede &: Co.., as nominee of ~C. or its registered assigns,
on each purchase date in next-day funds or the equivalent in accordance with existing
arrangements between Tender Agent and DTC. Such payments shall be made payable to the
order of Cede &: Co. and shall lie addressed to Supervisor, Put Bond Unit, Reorganization
Department, as indicated in paragraph 3 above.
4. In the event of a change or pro~ change in the interest-rate mode of the Securities Crom
one variable-rate mode to any other wria6le-rate mode, or to a fixed-rate mode, Trustee or
Issuer shall send a notice to DTC of such event ~. as applicable: (a) the name and
number of the DTC Particip3.!lt account to which lnandatorily tendered Securities are to be
delivered by DTC on the ~date after DTC receives payment for such Securities; and
(b) the first interest payment date under the new mode. Such notice shaD be sent to DTC by
a secure means (e.,-_, legible telecopy, registered or certified mail, overnight delivery) in a
timely manner des~~ to ensure that such notice is in DTO possession no later than the
dose of business two business days before the Publication Date. The Publication Date shall
be not less that IS days prior to the expiration date of the period provided for security owner
elections to retain Securities as disc:ussC:d in paragraph 6. If deliveted by hand or sent by mail
or overnight delivery, such notice siWl be sent to both:
Manager,VRDO Elig~"bility Section Supervisor, Put Bond Unit
Underwriting Department ReOrganization Department
The Depository Trust Company -and-The Depostrory Trust Company
SS Water Screec; SOth Floor 7 Hanover Square; 23rd Floor
New York, NY 10041-0099 New York, NY 10004-2695
I( sent by telecopy, such notice shall be sent to both:
DTCi Underwriting Department -and-DTCi Reorganization Depanment
at(212) 898-3726 or (212) 344-1s:J1 at(212) 709-1093 or(212) 709-1094
• Btgbm!ng"' dn "'.1 DTC lllllf1f1fZ ifl ~ rprmu 111 * III1IINIIIy foiJI!.t tltt:# SDFS Paying Apt Oper:adng PrOcedures fllill cqin. At lh11t rim~. tilt# prjlttipld JJII1'I'mUS #1111 h JNfil/ • DTC ll«ttl"t'inz• dn in.rtnlaittlu lisud;, t1H
£zst l"""ll'"plt t{ dlit--J, l:J(J , ... E1'.
17
No Text
• f
(
Trustee or Issuer shall confirm DTC's receipt of such telecopy by telephoning the
Underwriting Department at (212) 898-3731 and the Reorganization Depanment at (212)
709-1410. .
All other notices regarding the interest rate on the Securities (before and after an}· change in
the interest-rate mode) shall be delivered to Mamger, VRDO Announcement, Dividend
Depanment.
S. In the event of expiration or substitution of a facility supporting the Securities (such as a
letter of credit) or non reinstatement of the amount availatile to pay interest on the Securities
pursuant to such a facility, Trustee or Issuer shall send a notice to DTC of such event
specifying, as applicable, the name and number of the DTC Participant account to which
mandatoiily tendered Securities are to be delivered by DTC on the purchase date after DTC
receives payment for such Securities. Such notice shall be sent to DTC by a secure means
(e.g., legible telecopy, registered or certified mail, overnight delivery) in a timely manner
designed to ensure that such notice is in DTC~ possession no later than the close of business
twO business days before the Publication Date or, as applicable, immediately after Trustee
receives notice that the Securities are subject to acceleration. The Publication Date shall be
not less than 15 days prior to the expiration date of the period provided for security owner
elections to retain Securities as discussed in paragraph 6. Such notice shall be sent to
Supervisor, Put Bond Unit, Reorganization Department.
6. Where the offering Document provides that the Securities are subject to mandatory tender
except with respect to security owner elections to retain Securities, it is understood that
DTC will use its Put ()ption Procedures to process such elections. Under the Put Option
Procedures, DTC will receive insuuctions during the applicable election period from
Participants to retain Securities. DTC, on behalf of such Participant, will notify Tender
Agent of the aggregate princi~ amount of Securities that will not be tendered and will be
retained. If the mandatorily tendered Securities are to be replaced with twO or more issues of
Securities (the ·Replacement Securities1, Tender Agent shall be responsible for allocating
speci~': Replacement Securities by CUSIP number to the Participants that elected to retain
Secunaes.
In cases in which prior to a mandatory tender, certain Securities are not subject to such
mandatory tender, if requested as follows, DTC will exclude such Securities from its
mandatory tender procedures. Such request shall be in wridn_g and shall contain: (a)
certification by Trustee or &suer that the principal amount of such Securities is not subject to
the mandatory tender and certification by a Custodian/Participant thaa: the Participant's
position on DTC~ records includes such Securities; and (b) cenification by Trustee or &suer
that the election to exclude such Securities &om the mandatory tender is authorized under
the Document. Such request shall be sent to S~r. Put Bond Unit, Reorganization
De~nment. in the manner indicated in ~grapll4, above, to ensure that such ~uest is in
DTCk possession no later than the dose of business twO business days before the Publication
Date of the mandatory tender notice.
For so long u the Securities are SDFS Securities, principal parments (plus acaued interest,
in any) u the result of mandatory tenders for purdwe (tnduding mandatory tenders upon
change in the interest-rate mode of the Securities, or upon expiration, substitution, or non-
reinstatement of a facility supporting the Securities) shall be received by DTC on the
purchase date in same-day funds in the manner sea: forth in the SDFS Paying Agent
Operating Procedures and described on page 10, paragraph 1 in main body of OA•.
For so long u the Securities are NDFS Securities, such principal payments shall be received
by DTC on the purchase date in next-day funds in the manner set forth on page 10,
paragraph 1 in mam body of OA.
• ~~a dH tilt DTC mrwns i# lef'llmtm: rpr.mrs 111 ~ ~ fimls "" SDFS Payins Agent Operating PrOa:dura will c:pirt.lll r1n1t rinu, dHst prindp4l Jlil1mmfl Jbllll /It ptlit/ 111 DTC C'lll'tling 111 dH itutruaitnu li.tutl m th~
lfaf ,.,..grtllb tfrbis llttitm 6.
28
No Text
No Text
No Text
,...,
Form8038
(Rev. March 1993)
Department of the TreasuJY
Internal Revenue Service
Information Retum for Tax-Exempt
Private Activity Bond Issues ,........ ............ ~ .... , ....... .... ...,...~.
OMS ~o •5.&!5·0720
If Amended Return, check here • 0
1~ss""'',..,.,. City of Lubbock. Texas 2 111..., 1 employer •d•n!lf>ceon """'001'
7$«)005~
3Numbet&J'ICS-•" •••··-·--1625 13111 Street -
1 Exempt facility bond:
a lXJ Airport (aections 142(8)(1) and 142(c))
b 0
c 0
d 0
e 0
t 0
v 0
Sewage facilities (section 142(8)(5)) •••.•...............•......•.••••......•.•... .....--..+------------
Solid waste dlaposal fecilitlas (aection 142(a)(6)) ........•.........••.••.......••.... r---~----------------Quallfaed realdentlal rental projects (alctlona 142(a)(7) and 142(d)), as fei10W11: .•••....•....
Meeting 20-50 test (aection 142(d)(1)(A)) .......................... 0
Meeting 40-80 test (aection 142(d)(1)(B}) .......................... 0
Meeting 25-60 test (NYC only) (aection 142(d)(6)) ••••••••••••••.•••• 0
Has an election been made fer deep Nnt lkewlng (uction 142(d)(4)(B})? 0 Yea 0 No
h 0 Fecilltiea fer the local fumiahing of electric energy or gu (aectiona 142(a)(8) and 142(1')) •••.•. r---~----------------0 Local district heeting or cooling facllltiea (aectiona 142(a)(9) and 142(g)) ••.••.••.•••••••.• ~~~-------------0 Qualified hazardoua waste tacilltiea (aectiona 142(a)(10) and 142(h)) •••••••••••..••.•••.. r-~~----------------k 0 Hlgh-apeed intercity rail facilltiM (alctiona 142(a)(11), 142(c), and 142(0) ••••••••••••••••••
Check box if the owner elected not to claim depreciation or any tax cNdlt (IH Instructions) • 0
0 ~-r---------------
Environmental enhancements of hydroelectric generating facilltiea (aectlona 142(a)(12) and
m 0
142(j)) ..........••..•••.••..••••.•••••.••..••.•...•..•••••••..•..•.••.•.. ~--~-------
Fecilitlea allowed under a tranaltional Nle of the Tax Reform Act of 1 Sl86 (aM inatructiona) •....
Facility type .••••••••••••••..•••••••••••.•••••••••••••••••••••••••••.•••••.
1986 Act aectlon •••••••.••••••.••••••••••••••.•.••••..••..••..••.......••...
10 0 Qualified mortgage bond (section 143(a)) ( ... lnatructlona) •••••.•••.•.•.••••.•.•....•.
If you elect to rebate arbitrage profits to ltle United Stalee, check box • • • • • • • • • • • • . • . • • 0
11 0 Qualified veterana' mortgage bond (aection 143(b)) •••••.•..••..••••.•.•••••.•....••.
If you elect to Nbate arbitrage profits to the Unitltd Stalee, check box . . • • • • • • • . . . . • • . • 0
12 0 Qualified amall iaaue bond (aection 144(a)) (tHinstructlona)
13
14
15
16
17
18
0
0
0
0
0
0
For s•o million amallluue exemption, check box ••.•.•.•••••.••.....•••..•.•••• •
~--~--------
~--~----------
Form 8038 (AeY. 3-93) Page 2
21 Proceeds used for accrued interest .......................................................... .
22 Issue price of entire issue (enter amount from line 20, column c) .................................... .
23 Proceeds used for bond issuance costs (including undeiWriters' discount) ......... .
24 Proceeds used for credit enhancement .............•................•.....
25 Proceeds allocated to reasonably required reserve or replacement fund .......... .
26 Proceeds used to refund prior issues (complete Part VI) .••••••••••••.•••••••••
'Z1 Total (add lines 23 through 26) •....................•.......•..........•..•. , , . , ••... , •..•...
28 line 27 from line 22 and enter amount here) ................. .
Description c:l Property Financed by Norvefunding Proceeds
not for uellfied .audent loan bonds, ified bonda, or ified ,...,..,..
Type Gf Property F'.nanced by NonnJfunding Proceeds: Amount
a Land ............................................................•...........•...... -0-
b Buildings and structures .......................................•.••.••••••••............. 887,957.22
c Equipment with recovery period of more than 5 years .......................•.•...•..•.•.••.•.•. 29c -0-
d Equipment with recovery period of 5 years or less .•....•••...........•.•.••.•••.....•.•••..••..
e Other (deecribe) • • . . • • . • . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . . . . . . . • . • • • • • • . . • . • . • • . . . . . 29e -0-
: I 4~~ I: "7a7~~pacoedo I : I ..,~ I: ........ -..~
31 Enter the remaining weighted average maturity of the bonds to be refunded • • . . . • . • • . • . . . . . • •
32 Enter the last date on which the refunded bonds will be called • . . . . . . . • . . . . . . . . . . . . . . . . . . •
33 Enter the date(s) the refunded bonds were Issued • N/A
'M'i" Miscellaneous
34 Name of governmental unlt(s) approving iaaue (see instructions) • City of Lubbock, Texas
N/A
N/A
35 Enter the amount of the bonds designated by the issuer under aection 265(b)(3)(B)(I)(II~ ... , ..... , .......•..... • -0-
lf In lieu of rebate, check box . . . • . . . • . . . • . . . . . • . . • . • • . . . . . • . . . . . . . . . . . • 0
:r1 Amount of volume cap allocated to the iaauer. Aallch 0011¥ Gf Glllt certllk:don ••••••••••••••••••••••••
38 Amount of issue subject to the unified state volume cap ....•.•••...........••.•...•••....•.•...•
39 Amount of iaaue not subject to the unified state volume cap or other volume limitations:
a Of bonds for governmentally owned aolid waste facilities, airports, docks, wharvea, environmental
enhancements of hydroelectric generating facllltiea, or hlgh-lpeed intercity rail tacilltin •.••.........•.•..
b Under a carryfoiWard election. Attach copy of Form 8328 to this return ............................. .
c Under transitional ruin of the Tax Reform Act of 1986 .......................................... .
Enter the Act aection of the applicable transitional rule •-------------------
d Under the exception for current refunding (section 1313(a) of the Tax Reform Act of 1986) ............... .
40 Amount of issue of qualified 501 (c)(3) bonds:
a Qualified hospital bonds ................•...•............................................
b Qualified nonhospital bonds ...............................•..•..•...•••.•.•....••........
c Oultstianclin!~~lb!IQPt nonhospltal bonds •.•.••••..........................••..•.•.•••.•••••
41 •
b
Please
Sign
Here
'J]ll~~e bonds ........................••••..••.•....•...
..,. June 15, 1995
C.Z.
years
,-
,.,
TELEPHONE: 1:14/855-8000 P"ACSIMILE: 214/855•8200
MARKS.WESTEAGARD
PARTNER
DIRECT DIAL: I!M/855-&DOZ
FULBRIGHT & JAWORSKI
LLP.
A FIEGISTEI'IED I..IMITED I..IA.ILITY PAI'ITNEI'ISHIP
2200 ROSS AVENUE
SUITE 2BOO
DALLAS, TEXAS 75201
August 7, 1995
CERTIFIED MAIL #Z 068 899 848
RETURN RECEIPT REQUESTED
Internal Revenue Center
Philadelphia, PA 19255
Re: Information Report Pursuant to Section 149 (e)
Ladies and Gentlemen:
HOUSTON
WASHINGTON, D.C.
AUSTIN
SAN ANTONIO
DALLAS
NEW YOI'IK
LOS ANGELES
LONDON
HONG KONG
Enclosed herewith is a statement by the City. of Lubbock concerning its
obligations styled "City of Lubbock, Texas, Tax and Airport Surplus Revenue
Certificates of Obligation, Series 1995" submitted in compliance with the requirements
of Section 149 (e) of the Internal Revenue Code of 1986, as amended. Also enclosed is
a xeroxed copy ·Of such statement together with a business reply envelope.
We request that the original statement be f:aled, and the xeroxed copy be date
stamped as acknowledgement of f:aling and returned to us in the envelope provided.
MSW:dla
Enclosures
D'U91111ip.l
PS Fonn 3800, March 1993
1;
Very truly yours,
"1-t (....__(_A-4 ~ --J
Mark S. Westergard .
No Text
1'".
Form8038-G
lRev. May 1193) 0.p&l'llllent r:t.,. r .... wy ln1iemal Aewnue Service
Information Reb.m for Tax-Exempt Govemmental Obligations
• Under Internal Revenue Code HCtion 149(e) OMB No. 1545-0720 .. See.,.,.,...~.
Uae Form 8038-GC If the laaue e II under $100,000.
1 luuer'a name City of lubbock, Texas 2 laauer'e employer identification number
75-600059-0
3 Number end street (or P.O. box il mail II not delivered to street address) 1625 13th
Street
Room/suite 4 Report number 1 G1995 •
5 City or town, state and ZIP code lubbock. Texas
9 0
10 0
11 0
12 IE
13 0
14 0
15 0
16 G9
Education (attach achedule-aee inatructlona)
Health and hospital (attach achedule-aee Instructions) •••.••.••••.•••.•••••••••...••
Tranaportetlon •.••...••...•.•.•••.••.••••••••••.••.••••••.•••••••••...•.••
Public safety •••••••••••••.•••••••••••••••.•••••.••.••••••••••••••••••••.•
Environment Oncluding eewage bonds) •••••.••••••••••••••••..•••••••••••••••••.
Housing •••.••••••••.•..•••••.••.••••••••.••••••••••••••••••••••••• ·: ••••
Utilities .•...••.••••••..•••.••••••••••••.•••••••••••••••••••••••••••••••••
Other.Describe(seelne1nlctlona).., Library; parks; civic center
17 If obligations are tax or other 11Mtnue anticipation bonds, check box •
18 If are In the form of a lease or Installment sale, check box •
0 iiiprovements
0
6 Date of llsue June 15, 19
8 CUSIP Number 54 918 ]BZ4
. .
. . . . . -~. i.;~:-~:~:7~\1:~: ;,:
~ ~ .~ ., . ~ ...
• • ' • • • r • •,.:',._ .{ 1,_ <,.·~"':.)::::: ;,.::.,.""' ~ •:::,::
Enter the remaining weighted average maturity of the bonds to be refunded • • • • • • • • • • • • • • • • • • . • • • • • • • • • .., _-:;N:.~.I:-=-A::,_ __ ...JYears
3D Enter the last date on which the refunded bonds will be called • • • • • • • • • . • • . • • • • • • • • • • • • • • • • • • • • • • • • • .., N /A --""------
31 Enter the date(s) the refunded bonds were lasued • N/A
1@111 Miscellaneous
32 Enter the amount of the state volume cap allocated to the lasue • • • • • • • • • . • • • • • • • • • • • • • • • • • • • • • • • • • • • .., -0-
33 Enter the amount of the bonds designated by the lasuer under eectlon 265(b)(8)(B)(I)UQ (emalllasuer exception) • -.. ---_-0-_-----
34 Pooled tinancings:
a Enter the amount of the proceeds of thll llsue that are to be used to make loans to other governmental units
b If this Issue is a loan made from the proceeds of another tax-exempt laaue, check box
of
.. -0-
.. 0 and enter the name
35 If the iu .................................... 0
PLEASE SIGN HERE Date
Form 8038-G (Rev. 5·93)
No Text
-
r
TELE .. HON£: 214/&55•&000 rACSIMILE: 21<4/855·8200
MARK S. WESTERGARD
PARTNER
DIRECT DIAL: 2S4/85S-80D2
FULBRIGHT & JAWORSKI
LLP.
A AEGISTEI'U!:C LIMITED LIABILITY PAI'lTNEI'lSHIII'
. 2200 ROSS AVENUE
SUITE 2800
DALLAS, TEXAS 75201
August 7, 1995
CERTIFIED MAIL #Z 063 399 845
RETURN RECEIPT REQUESTED
Internal Revenue Center
Philadelphia, PA 19255
Re: Information Report Pursuant to Section 149 (e)
Ladies and Gentlemen:
HOUSTON
WASHINGTON, O.C.
AUSTIN
SAN ANTONIO
CALLA$
NEW YORK
LOS ANGELES
LON CON
HONG KONG
Enclosed herewith is a statement by the City of Lubbock concerning its
obligations styled "City of Lubbock, Texas, Tax and Hotel Occupancy Tax Surplus
Revenue Certificates of Obligation, Series 1995" and "City of Lubbock, Texas, General
Obligation Bonds, Series 1995" submitted in compliance with the requirements of
Section 149 (e) of the Internal Revenue Code of 1986, as amended. Also enclosed is a
xeroxed copy of such statement together with a business reply envelope.
We request that the original statement be filed, and the xeroxed copy be date
stamped as acknowledgement of filing and returned to us in the envelope provided.
MSW:dla
Enclosures
D2491Wp.l
Very truly yours,
--n1~.J.~r
MarkS. Westergard
'.-