HomeMy WebLinkAboutOrdinance - 9542-1992 - Tax And Waterworks System Levying Ad Velorum Tax Upon All Taxable Income - 08/13/1992/ .t
ORDINANCE NO.
AN ORDINANCE authorizing the issuance of "CITY OF
LUBBOCK, TEXAS, TAX AND WATERWORKS SYSTEM (LIMITED
PLEDGE) REVENUE CERTIFICATES OF OBLIGATION, SERIES
1992"; levying an ad valorem tax upon all taxable
property in the city and pledging 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 and
distribution of an Official Statement pertaining
thereto; and providing an effective date.
WHEREAS, notice of the City Council's intention to issue
certificates of obligation in the maximum principal amount of
$7,565,000 for the purpose of paying contractual obligations to be
incurred for (i) land acquisition and site improvements including
water system and sewer system extensions and improvements in
connection with construction of a correctional facility; (ii) solid
waste disposal system improvements; and (iii) professional services
rendered in connection therewith, has been duly published in the
Lubbock Avalanche-Journal, a newspaper hereby found and determined
to be of general circula'l;.lon in the City of Lubbock, Texas, on
']"1,1~ 12 , 1992 and Ju.~ 19 , 1992, the date of the first
publiation of such notice~ ing not less than fifteen (15) days
prior to the tentative date stated therein for the passage of the
ordinance authorizing the issuance of such certificates; and
WHEREAS, no petition, protesting the issuance of such
certificates and bearing valid petition signatures of at least 5%
of the qualified voters of the City, has been filed with the City
Secretary, any member·of the Council or any other official of the
City on or prior to the date of the passage of this ordinance; and
WHEREAS, the Council hereby finds and determines that all of
the certificates of obligation described in such notice should be
issued and sold at this time; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1: Authorization-Designation-Principal Amount-
Purpose. Certificates of obligation of the City shall be and are
hereby authorized to be issued in the aggregate principal amount of
$7,565,000 to be designated and bear the title "CITY OF LUBBOCK,
TEXAS, TAX AND WATERWORKS SYSTEM (LIMITED PLEDGE) REVENUE
CERTIFICATES OF OBLIGATION, SERIES 199211 (the "Certificates"), for
the purpose of paying contractual obligations to be incurred for
(i) land acquisition and site improvements including water system
and sewer system extensions and improvements in connection with
construction of a correctional facility; (ii) solid waste disposal
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system improvements; and (iii) professional services rendered in
connection therewith, pursuant to authority conferred by and in
conformity with the Constitution and laws of the State of Texas,
including V.T.C.A., Local Goverrunent Code, subchapter c of Chapter
271.
SECTION 2: Fully Registered Obligations -Authorized
Denominations-stated Maturities-Date, The Certificates are
issuable in fully registered form only; shall be dated August 15,
1992 (the "Certificate Date") and shall be in denominations of
$5,000 or any integral multiple thereof and the certificates shall
become due and payable on February 15 in each of the years and in
principal amounts (the "Stated Maturities") and bear interest at
the per annum rate(s) in accordance with the following schedule:
Year of Principal Interest
§tated Hatu;i;:;i,ty Amount Rnte
1993 $635,000 t,.'5 %
1994 635,000 .k::zS._%
1995 640,000 .k25'..%
1996 640,000 .l.t:.1£_%
1997 640,000 ~%
1998 475,000 ~% 1999 475,000 g: 2000 475,000
2001 475,000 ~%
2002 475,000 ..2:.lQ.%
2003 200,000 ~% 2004 200,000 ~%
2005 200,000 ~%
2006 200,000 ..&!&_%
2007 200,000 _s..2J._%
2008 200,000 1= 2009 200,000
2010 200,000 t
2011 200,000 t
2012 200,000 tJ.,?S'%
Interest on the Certificates shall accrue from the Certificate
Date at the per annum rate(s) shown above in this Section, and such
interest shall be calculated on the basis of a 360-day year of
twelve 30-day months. Interest on the Certificates shall be
payable on February 15 and August 15 in each year, commencing
February 15, 1993.
SECTION 3: Terms of Payment-Paying Agent/Regist;ca;c, The principal of, premium, if any, and the interest on the
certificates, due and payable by reason of maturity or redemption
or otherwise, shall be payable only to the registered owners or
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holders of the Certificates (hereinafter called the "Holders")
appearing on the registration and transfer books (the "Security
Register") maintained by the Paying Agent/Registrar and the payment
thereof shall be in any coin or currency of the United states of
America, which at the time of payment is legal tender for the
payment of public and private debts, and shall be without exchange or collection charges to the Holders.
The selection and appointment of NationsBank of Texas, N.A.,
Fort Worth, Texas to serve as Paying Agent/Registrar for the
Certificates is hereby approved and confirmed and the City agrees
and covenants to be kept and maintained at the principal office of
the Paying Agent/Registrar books and records for the registration,
payment and transfer of the certificates (the 11security Register"),
all as provided herein, in accordance with the terms and provisions
of a "Paying Agent/Registrar Agreement" substantially in the form
attached hereto as Exhibit A and such reasonable rules and
regulations as the Paying Agent/Registrar and city may prescribe;
and the Mayor and City Secretary are authorized to execute and
deliver such Agreement in connection with the delivery of the
Certificates. The City covenants to maintain and provide a Paying
Agent/Registrar at all times until the Certificates are paid and
discharged, and any successor Paying Agent/Registrar shall be a
bank, trust company, financial institution or other entity
qualified and authorized to serve in such capacity and perform the
duties and services of Paying Agent/Registrar. 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 Holder
by United States Mail, first class postage prepaid, which notice
shall also give the address of the new Paying Agent/Registrar.
Principal of and premium, if any, on the Certificates shall be
payable at the Stated Maturities or the redemption thereof only
upon presentation and surrender of the Certificates to the Paying
Agent/Registrar at its principal office. Interest on the
Certificates shall be paid by the Paying Agent/Registrar to the
Holders whose name appears in the security Register at the close of
business on the Record Date (the last business day of the month
next preceding each interest payment date) and payment of such
interest shall be (i) by check sent United states Mail, first class
postage prepaid, to the address of the Holder recorded in the
security Register or (ii) by such other method, acceptable to the
Paying Agent/Registrar, requested by, and at the risk and expense
of, the Holder. If the date for the payment of the principal of or
interest on the certificates shall be a Saturday, Sunday, a legal
holiday, or a day when banking institutions in the City where the
Paying Agent/Registrar is located are authorized by law or
executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal
holiday, or day when banking institutions are authorized to close;
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and payment on such date shall have the same force and effect as if
made on the original date payment was due.
In the event of a nonpayment of interest on a scheduled
payment date, and for thirty (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 (which shall be 15 days after the special
Record Date) shall be sent at least five (5) business days prior to
the Special Record Date by United States Mail, first class postage
prepaid, to the address of each Holder appearing on the Security
Register at the close of business on the last business next
preceding the date of mailing of such notice.
SECTION 4: Redemption. (a) Optional Redemption. The
Certificates having Stated Maturities on and after February 15,
2003, shall be subject to redemption prior to maturity, at the
option of the City, in whole or in part in principal amounts of
$5,000 or any integral multiple thereof (and if within a stated
Maturity by lot by the Paying Agent/Registrar), on February 15,
2002 or on any date thereafter at the redemption price of par plus
accrued interest to the date of redemption.
(b) Exercise of Redemption Option. At least forty-five (45) days prior to a redemption date for the Certificates (unless a
shorter notification period shall be satisfactory to the Paying
Agent/Registrar), the City shall notify the Paying Agent/Registrar
of the decision to redeem Certificates, the principal amount of
each Stated Maturity to be redeemed, and the date of redemption
therefor. The decision of the City to exercise the right to redeem
certificates shall be entered in the minutes of the governing body
of the City.
(c) Selection of Certificates for Redemption. If less than all outstanding certificates of the same Stated Maturity are to be
redeemed on a redemption date, the Paying Agent/Registrar shall
treat such certificates as representing the number of Certificates
outstanding which is obtained by dividing the principal amount of
such Certificates by $5,000 and shall select the Certificates, or
principal amount thereof, to be redeemed within such Stated
Maturity by lot.
(d) Notice of Redemption. Not less than thirty (30) days
prior to a redemption date for the Certificates, a notice of
redemption shall be sent by United States Mail, first class postage
prepaid, in the name of the City and at the City's expense, to each
Holder of a certificate to be redeemed in whole or in part at the address of the Holder appearing on the Security Register at the
close of business on the business day next preceding the date of
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mailing such notice, and any notice of redemption so mailed shall
be conclusively presumed to have been duly given irrespective of whether received by the Holder.
All notices of redemption shall (i) specify the date of
redemption for the Certificates, (ii) identify the certificates to
be redeemed and, in the case of a portion of the principal amount
to be redeemed, the principal amount thereof to be
redeemed, (iii) state the redemption price, (iv) state that the
Certificates, or the portion of the principal amount thereof to be
redeemed, shall become due and payable on the redemption date
specified, and the interest thereon, or on the portion of the
principal amount thereof to be redeemed, shall cease to accrue from
and after the redemption date, and (v) specify that payment of the
redemption price for the Certificates, or the principal amount
thereof to be redeemed, shall be made at the principal office of
the Paying Agent/Registrar only upon presentation and surrender
thereof by the Holder. If a Certificate is subject by its terms to
prior redemption and has been called for redemption and notice of
redemption thereof has been duly given as hereinabove provided,
such Certificate (or the principal amount thereof to be redeemed)
shall become due and payable and interest thereon shall cease to
accrue from and after the redemption date therefor; provided moneys
sufficient for the payment of such Certificate (or of the principal
amount thereof to be redeemed) at the then applicable redemption
price are held for the purpose of such payment by the Paying
Agent/Registrar.
SECTION 5: Registration Transfer -Exchange of
certificates-Predecessor certificates. A security Register
relating to the registration, payment, and transfer or exchange of
the Certificates shall at all times be kept and maintained by the
City at the principal office of the Paying Agent/Registrar, as
provided herein and in accordance with the provisions of an
agreement with the Paying Agent/Registrar and such rules and
regulations as the Paying Agent/Registrar and the City may
prescribe. The Paying Agent/Registrar shall obtain, record, and
maintain in the Security Register the name and address of each and
every owner of the Certificates issued under and pursuant to the
provisions of this Ordinance, or if appropriate, the nominee
thereof. Any Certificate may be transferred or exchanged for
certificates of other authorized denominations by the Holder, in
person or by his duly authorized agent, upon surrender of such
Certificate to the Paying Agent/Registrar for cancellation,
accompanied by a written instrument of transfer or request for
exchange duly executed by the Holder or by his duly authorized
agent, in form satisfactory to the Paying Agent/Registrar.
Upon surrender of any Certificate for transfer at the
principal office of the Paying Agent/Registrar, the Paying
Agent/Registrar shall register and deliver, in the name of the
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designated transferee or transferees, one or more new Certificates
of authorized denominations and having the same Stated Maturity and
of a like aggregate principal amount as the Certificate or
Certificates surrendered for transfer.
At the option of the Holder, Certificates may be exchanged for
other Certificates of authorized denominations and having the same
Stated Maturity, bearing the same rate of interest and of like
aggregate principal amount as the certificates surrendered for
exchange, upon surrender of the Certificates to be exchanged at the
principal office of the Paying Agent/Registrar. Whenever any
certificates are surrendered for exchange, the Paying
Agent/Registrar shall register and deliver new Certificates to the
Holder requesting the exchange.
All Certificates issued in any transfer or exchange of
certificates shall be delivered to the Holders at the principal
office of the Paying Agent/Registrar or sent by United States Mail,
first class, postage prepaid to the Holders, and, upon the
registration and delivery thereof, the same shall be the valid
obligations of the City, evidencing the same obligation to pay, and entitled to the same benefits under this Ordinance, as the
Certificates surrendered in such transfer or exchange.
All transfers or exchanges of Certificates pursuant to this
Section shall be made without expense or service charge to the
Holder, except as otherwise herein provided, and except that the
Paying Agent/Registrar shall require payment by the Holder
requesting such transfer or exchange of any tax or other
governmental charges required to be paid with respect to such
transfer or exchange.
Certificates cancelled by reason of an exchange or transfer
pursuant to the provisions hereof are hereby defined to be
"Predecessor Certificates," evidencing all or a portion, as the
case may be, of the same obligation to pay evidenced by the new
Certificate or Certificates registered and delivered in the
exchange or transfer therefor. Additionally, the term "Predecessor
Certificates" shall include any mutilated, lost, destroyed, or
stolen Certificate for which a replacement Certificate has been
issued, registered and delivered in lieu thereof pursuant to the
provisions of section 28 hereof and such new replacement
Certificate shall be deemed to evidence the same obligation as the
mutilated, lost, destroyed, or stolen Certificate.
Neither the City nor the Paying Agent/Registrar shall be
required to issue or transfer to an assignee of a Holder any
Certificate called for redemption, in whole or in part, within 45
days of the date fixed for the redemption of such Certificate;
provided, however, such limitation on transferability shall not be
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applicable to an exchange by the Holder of the unredeemed balance
of a Certificate called for redemption in part.
SECTION 6: Book-Entry Only Transfers and Transactions.
Notwithstanding the provisions contained in Sections 3 and 5 hereof
relating to the payment, and transfer/exchange of the Certificates, the City hereby approves and authorizes the use of "Book-Entry
Only" securities clearance, settlement and transfer system provided
by The Depository Trust Company (DTC), a limited purpose trust
company organized under the laws of the State of New York, in
accordance with the requirements and procedures identified in the
Letter of Representation, by and between the City, the Paying
Agent/Registrar and OTC (the "Depository Agreement") relating to
the Certificates,
Pursuant to the Depository Agreement and the rules of DTC,
the certificates shall be deposited with DTC who shall hold said
certificates for its participants (the 11DTC Participants"). While
the Certificates are held by DTC under the Depository Agreement,
the Holder of the Certificates on the Security Register for all
purposes, including payment and notices, shall be Cede & Co., as
nominee of DTC, notwithstanding the ownership of each actual
purchaser or owner of each certificate (the "Beneficial owners")
being recorded in the records of OTC and DTC Participants.
In the event DTC determines to discontinue serving as
securities depository for the Certificates or otherwise ceases to
provide book-entry clearance and settlement of securities
transactions in general or the City determines that DTC is
incapable of properly discharging its duties as securities
depository for the Certificates, the City covenants and agrees
with the Holders of the Certificates to cause Certificates to be
printed in definitive form and provide for the Certificates to be
issued and delivered to DTC Participants and Beneficial owners, as
the case may be. Thereafter, the Certificates in definitive form
shall be assigned, transferred and exchanged on the Security
Register maintained by the Paying Agent/Registrar and payment of such Certificates shall be made in accordance with the provisions
of sections 3 and 5 hereof.
SECTION 7: Execution -Registration. The Certificates
shall be executed on behalf of the City by the Mayor under its
seal reproduced or impressed thereon and countersigned by the City
Secretary. The signature of said officers on the Certificates may
be manual or facsimile. Certificates bearing the manual or
facsimile signatures of individuals who are or were the proper
officers of the City on the Certificate Date shall be deemed to be
duly executed on behalf of the City, notwithstanding that one or
more of the individuals executing the same shall cease to be such
officer at the time of delivery of the Certificates to the initial
purchaser(s) and with respect to Certificates delivered in
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subsequent exchanges and transfers, all as authorized and provided
in the Bond Procedures Act of 1981, as amended.
No Certificate shall be entitled to any right or benefit
under this Ordinance, or be valid or obligatory for any purpose,
unless there appears on such Certificate either a certificate of
registration substantially in the form provided in Section 9C,
manually executed by the Comptroller of Public Accounts of the
state of Texas, or his duly authorized agent, or a certificate of
registration substantially in the form provided in Section 9D,
manually executed by an authorized officer, employee or
representative of the Paying Agent/Registrar, and either such
certificate duly signed upon any Certificate shall be conclusive
evidence, and the only evidence, that such Certificate has been
duly certified, registered and delivered.
SECTION 8: Jnitial Certificate{s). The Certificates
herein authorized shall be initially issued either (i) as a single
fully registered certificate in the total principal amount of
$7,565,000 with principal installments to become due and payable
as provided in Section 2 hereof and numbered T-1, or (ii) as
twenty (20) fully registered certificates, being one certificate
for each year of maturity in the applicable principal amount and
denomination and to be numbered consecutively from T-1 and upward
(hereinafter called the "Initial Certificate(s)") and, in either
case, the Initial Certificate(s) shall be registered in the name
of the initial purchas~r(s) or the designee thereof. The Initial
Certificate{s) shall be the Certificates submitted to the Office
of the Attorney General of the State of Texas for approval,
certified and registered by the Office of the Comptroller of
Public Accounts of the State of Texas and delivered to the initial
purchaser{s). Any time after the delivery of the Initial
certificate{s), the Paying Agent/Registrar, pursuant to written
instructions from the initial purchaser {s), or the designee
thereof, shall cancel the Initial Certificate(s) delivered
hereunder and exchange therefor definitive Certificates of
authorized denominations, Stated Maturities, principal amounts and
bearing applicable interest rates for transfer and delivery to the
Holders named at the addresses identified therefor; all pursuant
to and in accordance with such written instructions from the
initial purchaser{s), or the designee thereof, and such other
information and documentation as the Paying Agent/Registrar may
reasonably require.
SECTION 9: ~-A. Forms Generally. The Certificates, the Registration Certificate of the Comptroller of
Public Accounts of the State of Texas, the Registration
Certificate of Paying Agent/Registrar, and the form of Assignment
to be printed on each of the Certificates, shall be substantially
in the forms set forth in this Section with such appropriate
insertions, omissions, substitutions, and other variations as are
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permitted or required by this Ordinance and may have such letters,
numbers, or other marks of identification (including identifying
numbers and letters of the Committee on Uniform Securities
Identification Procedures of the American Bankers Association) and
such legends and endorsements (including insurance legends in the
event the Certificates, or any maturities thereof, are purchased
with insurance and any reproduction of an opinion of counsel)
thereon as may, consistently herewith, be established by the City
or determined by the officers executing such certificates as
evidenced by their execution. Any portion of the text of any
Certificates may be set forth on the reverse thereof, with an
appropriate reference thereto on the face of the Certificate.
The definitive Certificates shall be printed, lithographed,
or engraved or produced in any other similar manner, all as
determined by the officers executing such Certificates as
evidenced by their execution, but the Initial certificate(s)
submitted to the Attorney General of Texas may be typewritten or
photocopied or otherwise reproduced.
The City may provide (i) for issuance of one fully registered
certificate for each Stated Maturity in the aggregate principal
amount of each Stated Maturity and (ii) for registration of such
certificates in the name of a securities depository, or the
nominee thereof. The Letter of Representations by and among the
City, the Paying Agent/Registrar, and the initial securities
depository (Depository Trust Company) a form of which is attached
hereto as Exhibit B, is approved and may be executed by the Mayor
and City Secretary on behalf of the City. The execution of a
Letter of Representations may occur either before or after
delivery of the Certificates to the initial purchasers but shall
not affect the city's obligation to pay the registered owners the
principal of and interest on the Certificates as the same become
due. While any Certificate is registered in the name of a
securities depository or its nominee, references herein and in the
Certificates to the holder or owner of such certificate shall mean
the securities depository or its nominee and shall not mean any
other person.
B. Form of certificates.
REGISTERED NO. __ _
29079
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF LUBBOCK, TEXAS,
TAX AND WATERWORKS SYSTEM
(LIMITED PLEDGE) REVENUE
CERTIFICATE OF OBLIGATION
SERIES 1992
-9-
REGISTERED $ ____ _
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Certificate
Date:
August 15, 1992
Registered OWner:
Principal Amount:
Interest Rate: Stated Maturity: CUSIP NO: ____ %
DOLLARS
The city of Lubbock (hereinafter referred to as the ncityn),
a body corporate and municipal corporation in the County of
Lubbock, State of Texas, for value received, acknowledges itself
indebted to and hereby promises to pay to the Registered OWner
named above, or the registered assigns thereof, the Principal
Amount stated above, on the Stated Maturity date specified above
(or so much thereof as shall not have been paid upon prior redemption) and to pay interest (computed on the basis of a
360-day year of twelve 30-day months) on the unpaid Principal
Amount hereof from the Certificate Date at the per annum rate of
interest specified above; such interest being payable on February
15 and August 15 of each year, conunencing February 15, 199 3 •
Principal of this Certificate is payable at its Stated Maturity or
redemption to the registered owner hereof, upon presentation and
surrender, at the principal office of the Paying Agent/Registrar
executing the registration certificate appearing hereon, or its
successor. Interest is payable to the registered owner of this
Certificate (or one or more Predecessor Certificates, as defined
in the Ordinance hereinafter referenced) whose name appears on the
nsecurity Register" maintained by the Paying Agent/Registrar at
the close of business on the "Record Date", which is the last
business day of the month next preceding each interest payment
date and interest shall be paid by the Paying Agent/Registrar by
check sent United States Mail, first class postage prepaid, to the
address of the registered owner recorded in the Security Register
on the Record Date or by such other method, acceptable to the
Paying Agent/Registrar, requested by, and at the risk and expense
of, the registered owner. If the date for the payment of the
principal of or interest on the Certificates shall be a Saturday,
Sunday, a legal holiday, or a day when banking institutions in the
City where the Paying Agent/Registrar is located are authorized by
law or executive order to close, then the date for such payment
shall be the next succeeding day which is not such a Saturday,
sunday, legal holiday, or day when banking institutions are
authorized to close; and payment on such date shall have the same
force and effect as if made on the original date payment was due.
All payments of principal of, premium, if any, and interest on
this certificate shall be without exchange or collection charges
to the owner hereof and in any coin or currency of the United
states of America which at the time of payment is legal tender for
the payment of public and private debts.
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This Certificate is one of the series specified in its title
issued in the aggregate principal amount of $7,565,000 (herein
referred to as the "Certificates") for the purpose of paying
contractual obligations to be incurred for (i) land acquisition
and site improvements including water system and sewer system
extensions and improvements in connection with construction of a
correctional facility; (ii) solid waste disposal system
improvements; and (iii) professional services rendered in
connection therewith, under and in strict conformity with the
Constitution and laws of the state of Texas, particularly
V.T.C.A., Local Government Code, Subchapter c of Chapter 271, and
pursuant to an Ordinance adopted by the governing body of the City
(herein referred to as the "Ordinance").
The Certificates maturing on and after February 15, 2003, may
be redeemed prior to their stated Maturities, at the option of the
City, in whole or in part in principal amounts of $5,000 or any
integral multiple thereof (and if within a Stated Maturity by lot
by the Paying Agent/Registrar), on February 15, 2002, or on any
date thereafter, at the redemption price of par, together with
accrued interest to the date of redemption and upon 30 days prior
written notice being sent by United States Mail, first class
postage prepaid, to the registered owners of the certificates to
be redeemed, and subject to the terms and provisions relating
thereto contained in the ordinance. If this certificate (or any
portion of the principal sum hereof) shall have been duly called
for redemption and notice of such redemption duly given, then upon
such redemption date this Certificate (or the portion of the
principal sum hereof to be redeemed) shall become due and payable,
and interest thereon shall cease to accrue from and after the
redemption date therefor, provided moneys for the payment of the
redemption price and the interest on the principal amount to be
redeemed to the date of redemption are held for the purpose of
such payment by the Paying Agent/Registrar.
In the event of a partial redemption of the principal amount
of this certificate, payment of the redemption price of such
principal amount shall be made to the registered owner only upon
presentation and surrender of this Certificate to the Paying
Agent/Registrar at its principal office and there shall be issued,
without charge therefor to the registered owner hereof, a new
certificate or certificates of like maturity and interest rate in
any authorized denominations provided by the Ordinance for the
then unredeemed balance of the principal sum hereof. If this
Certificate is selected for redemption, in whole or in part, the
City and the Paying Agent/Registrar shall not be required to
transfer this Certificate to an assignee of the registered owner
within 45 days of the redemption date therefor; provided, however,
such limitation on transferability shall not be applicable to an
exchange by the registered owner of the unredeemed balance hereof
in the event of its redemption in part.
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The Certificates are payable from the proceeds of an ad
valorem tax levied, within the limitations prescribed by law, upon
all taxable property in the City and are additionally payable from
and secured by a lien on and limited pledge of the Net Revenues
(as defined in the Ordinance) of the City's Waterworks System (the
"System"), such lien and pledge, however, being junior and
subordinate to the lien on and pledge of the Net Revenues of the
System securing the payment of "Prior Lien Obligations" (as
defined in the Ordinance) now outstanding and hereafter issued by
the City. In the Ordinance, the City reserves and retains the
right to issue Prior Lien Obligations while the Certificates are
outstanding without limitation as to principal amount but subject
to any terms, conditions or restrictions as may be applicable
thereto under law or otherwise.
Reference is hereby made to the Ordinance, a copy of which is
on file in the principal office of the Paying Agent/Registrar, and
to all the provisions of which the Holder hereof by the acceptance
hereof hereby assents, for definitions of terms; the description
of and the nature and extent of the tax levied for the payment of
the certificates; the properties constituting the System; the Net
Revenues pledged to the payment of the principal of and interest
on the certificates; the nature and extent and manner of
enforcement of the pledge; the terms and conditions relating to
the transfer of this Certificate; the conditions upon which the
Ordinance may be amended or supplemented with or without the
consent of the Holders of the Certificates; the rights, duties,
and obligations of the City and the Paying Agent/Registrar; the
terms and provisions upon which the tax levy and the liens,
pledges, charges and covenants made therein may be discharged at
or prior to the maturity of this Certificate, and this Certificate
deemed to be no longer outstanding thereunder; and for the other
terms and provisions contained therein. Capitalized terms used
herein have the meanings assigned in the Ordinance.
This Certificate, subject to certain limitations contained in
the Ordinance, may be transferred on the Security Register only
upon its presentation and surrender at the principal office of the Paying Agent/Registrar, with the Assignment hereon duly endorsed
by, or accompanied by a written instrument of transfer in form
satisfactory to the Paying Agent/Registrar duly executed by, the
registered owner hereof, or his duly authorized agent. When a
transfer on the Security Register occurs, one or more fully
registered Certificates of authorized denominations and of the
same aggregate principal amount will be issued by the Paying
Agent/Registrar to the designated transferee or transferees.
The City and the Paying Agent/Registrar, and any agent of
either, may treat the registered owner hereof whose name appears
on the Security Register (i) on the Record Date as the owner
entitled to payment of interest hereon, (ii) on the date of
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surrender of this Certificate as the owner entitled to payment of
principal hereof at its Stated Maturity or its redemption, in
whole or in part, and (iii) on any other date as the owner for all
other purposes, and neither the City nor the Paying
Agent/Registrar, or any agent of either, shall be affected by
notice to the contrary. In the event of nonpayment of interest
on a scheduled payment date and for thirty (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 (which shall be 15
days after the Special Record Date) shall be sent at least five
(5) business days prior to the Special Record Date by United
States Mail, first class postage prepaid, to the address of each
Holder appearing on the Security Register at the close of business
on the last business day next preceding the date of mailing of
such notice.
It is hereby certified, recited, represented and covenanted
that the City is a body corporate and political subdivision duly
organized and legally existing under and by virtue of the
Constitution and laws of the State of Texas; that the issuance of
the Certificates is duly authorized by law; that all acts,
conditions and things required to exist and be done precedent to
and in the issuance of the Certificates to render the same lawful
and valid obligations of the City have been properly done, have
happened and have been performed in regular and due time, form and
manner as required by the Constitution and laws of the state of
Texas, and the Ordinance; that the Certificates do not exceed any
constitutional or statutory limitation; and that due provision has
been made for the payment of the principal of and interest on the
Certificates by the levy of a tax and a pledge of the Net Revenues
of the System as aforestated. In case any provision in this
certificate or any application thereof shall be invalid, illegal,
or unenforceable, the validity, legality, and enforceability of
the remaining provisions and applications shall not in any way be
affected or impaired thereby. The terms and provisions of this
Certificate and the Ordinance shall be construed in accordance
with and shall be governed by the laws of the state of Texas.
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this Certificate to be duly
the City as of the Certificat
(SEAL)
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C. • Form of Registration Certificate of comptroller of
Public Accounts to Appear on Initial certificate{s} only.
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
OFFICE OF THE COMPTROLLER
OF PUBLIC ACCOUNTS
s s s s REGISTER NO.
THE STATE OF TEXAS
I HEREBY CERTIFY that this Certificate has been examined,
certified as to validity and approved by the Attorney General of
the state of Texas, and duly registered by the Comptroller of Public Accounts of the state of Texas.
WITNESS my signature and seal of office this ______ _
Comptroller of Public Accounts
(SEAL) of the State of Texas
•NOTE TO PRINTER: Do not print on definitive Certificates
D. Form of certificate of Paying Agent/Registrar to Appear
on certificates (other than the single fully registered
Initial Certificate).
REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR
This Certificate has been duly issued and registered under
the provisions of the within-mentioned Ordinance; the certificate
or certificates of the above entitled and designated series
originally delivered having been approved by the Attorney General
of the State of Texas and registered by the Comptroller of Public
Accounts, as shown by the records of the Paying Agent/Registrar.
Registration Date:
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NATIONSBANK OF TEXAS, N.A.
Fort worth, Texas
as Paying Agent/Registrar
By--------------Authorized signature
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E. Form of Assignment.
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns, and
transfers unto (Print or typewrite name, address, and zip code of
transferee: ) .................................................... .
• • • • • • • . • • . • • • • • (Social security or other identifying number:
••••••••••••••••••••••••••••• ) the within Certificate and all
rights thereunder, and hereby irrevocably constitutes and appoints ..................................................................
attorney to transfer the within Certificate on the books kept for
registration thereof, with full power of substitution in the
premises.
DATED:
Signature guaranteed:
........................
NOTICE: The signature on this
assignment must correspond with the
name of the registered owner as it
appears on the face of the within
Certificate in every particular.
F. The Initial certificate{s) shall be in the form set forth in paragraph B of this Section. except that the form of a single fully registered Initial certificate shall be
modified as follows;
(i) immediately under the name of the certificate the
headings "Interest Rate --,------" and "Stated Maturity
____ 11 shall both be omitted;
(ii) paragraph one shall read as follows:
Registered OWner:
Principal Amount: Dollars
The City of Lubbock (hereinafter referred to as the "City"),
a body corporate and municipal corporation in the County of
Lubbock, state of Texas, for value received, acknowledges itself
indebted to and hereby promises to pay to the Registered OWner
named above, or the registered assigns thereof, the Principal
Amount hereinabove stated, on February 15 in each of the years and
in principal installments in accordance with the following
schedule:
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PRINCIPAL
INSTALLMENTS
(Information to be inserted from
schedule in Section 2 hereof).
INTEREST
RATE
(or so much principal thereof as shall not have been prepaid prior
to maturity) and to pay interest on the unpaid Principal Amount
hereof from the Certificate Date at the per annum rates of
interest specified above computed on the basis of a 360-day year
of twelve 30-day months; such interest being payable on February
15 and August 15 of each year, commencing February 15, 1993.
Principal installments of this certificate are payable in the year
of maturity or on a prepayment date to the registered owner
hereof, upon its presentation and surrender at the principal
office of NationsBank of Texas, N.A., Fort Worth, Texas (the
"Paying Agent/Registrar"). Interest is payable to the registered
owner of this Certificate whose name appears on the "Security
Register" maintained by the Paying Agent/Registrar at the close of
business on the "Record Date", which is the last business day of
the month next preceding each interest payment date hereof and
interest shall be paid by the Paying Agent/Registrar by check sent
United States Mail, first class postage prepaid, to the address of
the registered owner recorded in the Security Register or by such
other method, acceptable to the Paying Agent/Registrar, requested
by, and at the risk and expense of, the registered owner. If the
date for the payment of the principal of or interest on the
certificates shall be a Saturday, Sunday, a legal holiday, or a
day when banking institutions in the City where the Paying
Agent/Registrar is located are authorized by law or executive
order to close, then the date for such payment shall be the next
succeeding day which is not such a Saturday, Sunday, legal
holiday, or day when banking institutions are authorized to close;
and payment on such date shall have the same force and effect as
if made on the original date payment was due. All payments of
principal of, premium, if any, and interest on this Certificate
shall be without exchange or collection charges to the owner
hereof and in any coin or currency of the United States of America
Which at the time of payment is legal tender for the payment of
public and private debts.
SECTION 10: Definitions. That for purposes of this
Ordinance and for clarity with respect to the issuance of the
Certificates, and the levy of taxes and appropriation of Net
Revenues therefor, the following words or terms, whenever the same
appear herein without qualifying language, are defined to mean as
follows:
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(a) The term "Additional Certificates"
combination tax and revenue certificates of
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shall mean
obligation
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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 Net Revenues of the System of equal
rank and dignity with the lien and pledge securing the
payment of the Certificates.
(b) The term "Certificates" shall mean $7,565,000 "CITY
OF LUBBOCK, TEXAS, TAX AND WATERWORKS SYSTEM (LIMITED PLEDGE)
REVENUE CERTIFICATES OF OBLIGATION, SERIES 199211 authorized
by this Ordinance.
(c) The term "Certificate Fund" shall mean the special
FUnd created and established under the provisions of Section 11 of this Ordinance.
(d) The term "Collection Date" shall mean, when
reference is being made to the levy and collection of annual
ad valorem taxes, the date annual ad valorem taxes levied
each year by the City become delinquent.
(e) The term "Fiscal Year" shall mean the annual
financial accounting period used with respect to the
operations of the system now ending on September 30th of each
year; provided, however, the City Council may change, by
ordinance duly passed, such annual financial accounting
period to end on another date if such change is found and
determined to be necessary for budgetary or other fiscal
purposes.
(f) The term "Government Securities" shall mean direct
obligations of the United States of America, including
obligations the principal of and interest on which are
unconditionally guaranteed by the United states of America,
and the United states Treasury obligations such as its State
and Local Government Series in book-entry form.
(g) The term "Gross Revenues" shall mean all income,
receipts and revenues of every nature derived or received
from the operation and ownership (excluding gifts and grant
moneys, federal or state) of the system, including earnings
and income derived from the investment or deposit of moneys
in any special funds or accounts created and established for
the payment and security of the Prior Lien Obligations and
other obligations payable in whole or in part from and
secured by a lien on and pledge of the Net Revenues.
(h) The term "Net Revenues" shall mean the Gross
Revenues of the System, with respect to any period, after
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29079
deducting the System's Operating and Maintenance Expenses
during such period.
(i) The term "Operating and Maintenance Expenses" shall
mean all reasonable and necessary expenses directly related
and attributable to the operation and maintenance of the
System, including, but not limited to, the cost of insurance,
the purchase and carrying of stores, materials, and supplies,
the payment of salaries, labor and other expenses reasonably
and properly charged, under generally accepted accounting
principles, to the operation and maintenance of the System.
Depreciation charges on equipment, machinery, plants and
other facilities comprising the System and expenditures
classed under generally accepted accounting principles as
capital expenditures shall not be considered as "Operating
and Maintenance Expenses" for purposes of determining "Net
Revenues".
(j) The term "Outstanding" when used in this Ordinance
with respect to Certificates means, as of the date of
determination, all Certificates theretofore issued and
delivered under this Ordinance, except:
(1) those Certificates cancelled by the
Paying Agent/Registrar or delivered to the Paying
Agent/Registrar for cancellation;
(2) those Certificates deemed to be duly
paid by the City in accordance with the provisions
of Section 24 hereof by the irrevocable deposit
with the Paying Agent/Registrar, or an authorized
escrow agent, of money or Government Securities,
or both, in the amount necessary to fully pay the
principal of, premium, if any, and interest
thereon to maturity or redemption, as the case may
be, provided that, if such Certificates are to be
redeemed, notice of redemption thereof shall have
been duly given pursuant to this Ordinance or
irrevocably provided to be given to the
satisfaction of the Paying Agent/Registrar or
waived; and
(3) those Certificates that have
mutilated, destroyed, lost, or stolen
replacement Certificates have been registered
delivered in lieu thereof as provided
Section 28 hereof.
been
and
and
in
(k) The term "Prior Lien Obligations" shall mean all
bonds or other similar obligations now outstanding and
hereafter issued that are payable in whole or in part from
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and secured by a lien on and pledge of the Net Revenues of
the System 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 Net Revenues securing the payment
of the Certificates, including the City's "Combination Tax
and Waterworks System Subordinate Lien Revenue Certificates
of Obligation, Series 1991."
(l) The term "System" shall mean the City's Waterworks
System, being all properties, facilities, and plants
currently owned, operated, and maintained by the City for the
supply, treatment, and transmission of treated potable water,
together with all future extensions, improvements,
replacements and additions thereto.
SECTION 11: Certificate Fund. That, for the purpose of
paying the interest on and to provide a sinking fund for the
payment and retirement of the Certificates, there shall be and is
hereby created a special Fund to be designated "SPECIAL 1992 CITY
OF LUBBOCK, TEXAS, TAX ~D WATERWORKS SYSTEM (LIMITED PLEDGE)
REVENUE CERTIFICATE OF OBLIGATION FUND", which Fund shall be kept
and maintained at the City's depository bank, and moneys deposited
in said Fund shall be used for no other purpose. Proper officers
of the city are hereby authorized and directed to cause to be
transferred to the Paying Agent for the Certificates, from funds
on deposit in the Certificate Fund, amounts sufficient to fully
pay and discharge promptly each installment of interest and
principal of the Certificates as the same accrues or matures or
comes due by reason of redemption prior to maturity; such
transfers of funds to be made in such manner as will cause
immediately available funds to be deposited with the Paying Agent
for the Certificates at the close of business on the last business
day next preceding each interest and/or principal payment date for
the certificates.
Pending the transfer of funds to the Paying Agent/Registrar,
money in the Certificate Fund may, at the option of the City, be
invested in obligations identified in, and in accordance with the
provisions of the "Public Funds Investment Act of 198711 relating
to the investment of "bond proceeds"; provided that all such
investments shall be made in such a manner that the money required
to be expended from said Fund will be available at the proper time
or times. All interest and income derived from deposits and
investments in said certificate Fund shall be credited to, and any
losses debited to, the said Certificate Fund. All such
investments shall be sold promptly when necessary to prevent any
default in connection with the certificates.
SECTION 12: Tax Levy. That to provide for the payment of
the "Debt Service Requirements" on the Certificates being (i) the
interest on said Certificates and (ii) a sinking fund for their
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redemption at maturity or a sinking fund of 2% (whichever amount
shall be the greater), there shall be and there is hereby levied
for the current year and each succeeding year thereafter while
said Certificates or any interest thereon shall remain
Outstanding, a sufficient tax on each one hundred dollars'
valuation of taxable property in said City, adequate to pay such
Debt Service Requirements, full allowance being made for
delinquencies and costs of collection; said tax shall be assessed
and collected each year and applied to the payment of the Debt
service Requirements, and the same shall not be diverted to any
other purpose. The taxes so levied and collected shall be
deposited into the Certificate Fund. This governing body hereby
declares its purpose and intent to provide and levy a tax legally
and fully sufficient to pay the said Debt Service Requirements, it
having been determined that the existing and available taxing
authority of the City for such purpose is adequate to permit a
legally sufficient tax in consideration of all other outstanding
indebtedness.
The amount of taxes to be provided annually for the payment
of the principal of and interest on the Certificates herein
authorized to be issued shall be determined and accomplished in
the following manner:
(a) Prior to the date the City Council establishes the
annual tax rate and passes an ordinance levying ad valorem taxes
each year, the City Council shall determine:
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(1) The amount on deposit in the Certificate
Fund after (a) deducting therefrom the total
amount of Debt Service Requirements to become due
on Certificates prior to the Collection Date for
the ad valorem taxes to be levied and (b) adding
thereto the amount of Net Revenues of the System
appropriated and allocated to pay such Debt
Service Requirements prior to the Collection Date
for the ad valorem taxes to be levied.
(2) The amount of Net Revenues if any,
appropriated and to be set aside for the payment
of the Debt Service Requirements on the
Certificates between the Collection Date for the
taxes then to be levied and the Collection Date
for the taxes to be levied during the next
succeeding calendar year.
(3) The amount of Debt Service Requirements
to become due and payable on the Certificates
between the Collection Date for the taxes then to
be levied and the Collection Date for the taxes to
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be levied during the next succeeding calendar
year.
(b) The amount of taxes to be levied annually each year to
pay the Debt Service Requirements on the Certificates shall be the
amount established in paragraph (3) above less the sum total of
the amounts established in paragraphs (l)and (2), after taking
into consideration delinquencies and costs of collecting such
annual taxes.
SECTION 13: Limited Pledge of Net Revenues. The City
hereby covenants and agrees that subject to the prior lien on and
pledge of the Net Revenues to the payment and security of the
Prior Lien Obligations, the Net Revenues (within the limitation of
a total amount of $2,500 during the time the Certificates or
interest thereon remain outstanding and unpaid) are hereby
irrevocably pledged to the payment of the principal of and
interest on the Certificates and the pledge of Net Revenues herein
made for the payment of the Certificates shall constitute a lien
on the Net Revenues in accordance with the terms and provisions
hereof and be valid and binding without any physical delivery
thereof or further act by the City.
SECTION 14: System Fund. The City hereby covenants and
agrees that all Gross Revenues (excluding earnings from the
investment of money held in any special funds or accounts created
for the payment and security of Prior Lien Obligations) shall be
deposited from day to day as collected into a "City of Lubbock,
Texas, Waterworks System Operating Fund" (hereinafter called
"System Fund") which Fund shall be kept and maintained at an
official depository bank of the City. All moneys deposited in the
System Fund shall be pledged and appropriated to the extent
required for the following purposes and in the order of priority
shown, to wit:
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First: To the payment of all necessary and
reasonable Operating and Maintenance Expenses of
the System as defined herein or required by
statute to be a first charge on and claim against
the Gross Revenues.
Second: 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; and
Ih.i.l:g: To the payment of the amounts
required to be deposited in the special funds and
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accounts (the Certificate Fund) created and
established for the payment of the Certificates
and Additional Certificates.
Any Net Revenues remaining in the System 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.
SECTION 15: Deposits to certificate Fund. The city hereby
covenants and agrees to cause to be deposited in the Certificate
Fund from the pledged Net Revenues in the System Fund, an amount
equal to $2,500.
The City covenants and agrees that the amount of pledged Net
Revenues ($2,500), together with ad valorem taxes levied,
collected, and deposited in the Certificate Fund for and on behalf
of the Certificates, will be an amount equal to one hundred
percent (100%) of the amount required to fully pay the interest
and principal due and payable on the Certificates. 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 Net Revenues.
SECTION 16: Security of FUnds. All moneys on deposit in
the Funds for which this Ordinance makes provision (except any
portion thereof as may be at any time properly invested) shall be
secured in the manner and to the fullest extent required by the
laws of Texas for the security of public funds, and moneys on
deposit in such Funds shall be used only for the purposes
permitted by this Ordinance.
SECTION 1 7 : Maintenance of system -Insurance. While the
certificates remain outstanding, the City covenants and agrees to
maintain and operate the System with all possible efficiency and
to maintain casualty and other insurance on the properties of the
System and its operations of a kind and in such amounts
customarily carried by municipal corporations in the State of
Texas engaged in a similar type business; and that it will
faithfully and punctually perform all duties with reference to the
system required by the Constitution and laws of the State of
Texas.
SECTION 18: Rates and Charges. The city hereby covenants
and agrees that rates and charges for services provided by the
System will be established and maintained, on the basis of all
available information and experience and with due allowance for
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contingencies, that are reasonably expected to provide Gross
Revenues to pay:
(a) Operating and Maintenance Expenses of
the System;
(b) the interest on and principal of Prior Lien Obligations and the amounts required to be
deposited into any special Funds created and
established for the payment and security of the
Prior Lien Obligations;
(c) the amounts required to be deposited in
the special Funds or Accounts (the Certificate
Fund) created for the payment of the Certificates
and Additional Certificates;
(d) any other legally incurred indebtedness
payable from the revenues of the system and/or
secured by a lien on the System or the revenues
thereof.
SECTION 19: Records and Accounts -AMUal Audit. The City
further covenants and agrees that while any Certificates remain
outstanding, it will keep and maintain accurate and complete
records and accounts pertaining to the ownership, operation and
maintenance of the System. The Holders of the Certificates or any
duly authorized agent or agents of such Holders shall have the
right to inspect the System and all properties comprising the
same. The City further agrees that following the close of each
Fiscal Year, it will cause an audit of such books and accounts to
be made by an independent firm of Certified Public Accountants.
Copies of each annual audit shall be furnished to the Executive
Director of the Municipal Advisory Council of Texas at his office
in Austin, Texas and upon written request, to the initial
purchaser of the Certificates and any subsequent Holder of lOl or
more in principal amount of the Certificates Outstanding.
SECI'ION 20: Remedies in Event of Default. In addition to all the rights and remedies provided by the laws of the State of
Texas, the City covenants and agrees particularly that in the
event the city (a) defaults in the payments to be made to the
Certificate Fund, or (b) defaults in the observance or performance
of any other of the covenants, conditions or obligations set forth
in this ordinance, the owner or owners of any of the Certificates
shall be entitled to a writ of mandamus issued by a court of
proper jurisdiction compelling and requiring the governing body of
the City and other officers of the City to observe and perform any covenant, condition or obligation prescribed in this Ordinance.
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Ho delay or omission to exercise any right or power accruing
upon any default shall impair any such right or power, o.r shall be
construed to be a waiver of any such default or acquiescense
therein, and every such right and power may be exercised from time
to time and as often as may be deemed expedient. The specific
remedies herein provided shall be cumulative of all other existing
remedies and the specification of such remedies shall not be
deemed to be exclusive.
SECTION 21: Special Covenants. The City hereby further
covenants as follows:
(a) It has the lawful power to pledge the
Net Revenues of the System supporting this issue
of Certificates and has lawfully exercised said
powers under the constitution and laws of the
state of Texas, including said power existing
under V.T.C.A., Local Governmental Code,
Subchapter C of Chapter 271.
(b) Other than for the payment of the
outstanding Prior Lien Obligations and the
Certificates, the Net Revenues of the System have
not in any manner been pledged to the payment of
any debt or obligation of the City or of the
System.
SECTION 22: Issuance of Prior Lien Obligations and
Additional Certificates. The City hereby expressly reserves the
right to hereafter issue Prior Lien Obligations, without
limitation as to principal amount or any other limitation or
restriction.
In addition, the City reserves the right to issue Additional
Certificates, without limitation or any restriction or condition
being applicable to their issuance under the terms of this
Ordinance, payable from and secured by a lien on and pledge of the
Net Revenues of the System 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.
SECTION 23: Subordinate to Prior Lien Obligations.
Covenants and Agreements. It is the intention of this governing
body and accordingly hereby recognized and stipulated that the
provisions, agreements and covenants contained herein bearing upon
the management and operations of the System and the administering
and application of revenues derived from the operation thereof,
shall to the extent possible be harmonized with like provisions,
agreements and covenants contained in ordinances authorizing the
issuance of Prior Lien Obligations, and to the extent of any
irreconciable conflict between the provisions contained herein and
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in ordinances authorizing the issuance of Prior Lien Obligations,
the provisions, agreements and covenants contained therein shall
prevail to the extent of such conflict and be applicable to this
Ordinance but in all respects subject to the priority of rights
and benefits, if any, conferred thereby to the holders or owners
of the Prior Lien Obligations. Notwithstanding the above, any
change or modification affecting the application of revenues
derived from the operation of the System shall not impair the
obligation of contract with respect to the pledge of revenues
herein made for the payment and security of the Certificates,
SECITON 24: Satisfaction of Obligations of City. If the
city shall pay or cause to be paid, or there shall otherwise be
paid to the Holders, the principal of, premium, if any, and
interest on the Certificates, at the times and in the manner
stipulated in this Ordinance, then the pledge of taxes levied and
the lien on and pledge of the Net Revenues of the System under
this Ordinance and all covenants, agreements, and other
obligations of the city to the Holders shall thereupon cease,
terminate, and be discharged and satisfied.
Certificates shall be deemed to have been paid within the
meaning and with the effect expressed above in this Section when
( i) money sufficient to pay in full such Certificates or the
principal amount(s) thereof at maturity or (if notice of
redemption has been duly given or waived or if irrevocable
arrangements therefor acceptable to the Paying Agent/Registrar
have been made) the redemption date thereof, together with all
interest due thereon, shall have been irrevocably deposited with
and held in trust by the Paying Agent/Registrar, or an authorized
escrow agent, or (ii) Government Securities shall have been
irrevocably deposited in trust with the Paying Agent/Registrar, or
an authorized escrow agent, which Government Securities have been
certified by an independent accounting firm to mature as to
principal and interest in such amounts and at such times as will
insure the availability, without reinvestment, of sufficient
money, together with any moneys deposited therewith, if any, to
pay when due the principal of and interest on such Certificates,
or the principal amount(s) thereof, on and prior to the stated
Maturity thereof or (if notice of redemption has been duly given
or waived or if irrevocable arrangements therefor acceptable to
the Paying Agent/Registrar have been made) the redemption date
thereof. The City covenants that no deposit of moneys or
Government Securities will be made under this Section and no use
made of any such deposit which would cause the Certificates to be
treated as "arbitrage bonds" within the meaning of Section 148 of.
the Internal Revenue Code of 1986, as amended, or regulations
adopted pursuant thereto.
Any moneys so deposited with the Paying Agent/Registrar and
all income from Government Securities held in trust by the Paying
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Agent/Registrar, or an authorized escrow agent, pursuant to this
section which is not required for the payment of the Certificates,
or any principal amount (s) thereof, or interest thereon with
respect to which such moneys have been so deposited shall be
remitted to the City or deposited as directed by the City.
Furthermore, any money held by the Paying Agent/Registrar for the
payment of the principal of and interest on the Certificates and
remaining unclaimed for a period of four (4) years after the
maturity, or applicable redemption date, of the Certificates such
moneys were deposited and are held in trust to pay shall upon the
request of the City be remitted to the City against a written
receipt therefor. Notwithstanding the above and foregoing, any
remittance of funds from the Paying Agent/Registrar to the City
shall be subject to any applicable unclaimed property laws of the
State of Texas.
SECTION 25: ordinance a contract -Amendments. This
Ordinance shall constitute a contract with the Holders from time
to time, be binding on the City, and shall not be amended or
repealed by the City so long as any Certificate remains
outstanding except as permitted in this Section. The City, may,
without the consent of or notice to any Holders of the
certificates, from time to time and at any time, amend this
ordinance in any manner not detrimental to the interests of the
Holders of the Certificates, including the curing of any
ambiguity, inconsistency, or formal defect or omission herein. In
addition, the city may, with the written consent of Holders of the
Certificates holding a majority in aggregate principal amount of
the certificates then Outstanding affected thereby, amend, add to,
or rescind any of the provisions of this Ordinance; provided that,
without the consent of all Holders of Outstanding Certificates, no
such amendment, addition, or rescission shall (1) extend the time
or times of payment of the principal of, premium, if any, and
interest on the Certificates, reduce the principal amount thereof,
the redemption price, or the rate of interest thereon, or in any
other way modify the terms of payment of the principal of,
premium, if any, or interest on the Certificates, (2) give any
preference to any Certificate over any other Certificate, or (3)
reduce the aggregate principal amount of certificates required to
be held by Holders for consent to any such amendment, addition, or
rescission.
SECTION 26: Notices to Holders -waivers. Wherever this
Ordinance provides for notice to Holders of any event, such notice
shall be sufficiently given (unless otherwise herein expressly
provided) if in writing and sent by United States Mail, first
class postage prepaid, to the address of each Holder appearing in
the Security Register at the close of business on the business day
next preceding the mailing of such notice.
2907'9 -27-
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In any case where notice to Holders is given by mail, neither
the failure to mail such notice to any particular Holders, nor any
defect in any notice so mailed, shall affect the sufficiency of
such notice with respect to all other Certificates. Where this
Ordinance provides for notice in any manner, such notice may be
waived in writing by the Holder entitled to receive such
notice, either before or after the event with respect to which
such notice is given, and such waiver shall be the equivalent of
such notice. Waivers of notice by Holders shall be filed with the
Paying Agent/Registrar, but such filing shall not be a condition
precedent to the validity of any action taken in reliance upon
such waiver.
SECTION 27: Cancellation. Certificates surrendered for
payment, redemption, transfer, or exchange, if surrendered to the
Paying Agent/Registrar, shall be promptly cancelled by it and, if
surrendered to the City, shall be delivered to the Paying
Agent/Registrar and, if not already cancelled, shall be promptly
cancelled by the Paying Agent/Registrar. The City may at any time
deliver to the Paying Agent/Registrar for cancellation any
Certificates previously certified or registered and delivered
which the City may have acquired in any manner whatsoever, and all
Certificates so delivered shall be promptly cancelled by the
Paying Agent/Registrar. All cancelled Certificates held by the
Paying Agent/Registrar shall be returned to the City.
SECTION 2s: Mutliated. Destroyed. Lost and stolen certi-
ficates. In case any Certificate shall be mutilated, or
, destroyed, lost or stolen, the Paying Agent/Registrar may execute
and deliver a replacement Certificate of like form and tenor, and
in the same denomination and bearing a number not
contemporaneously outstanding, in exchange and substitution for
such mutilated Certificate, or in lieu of and in substitution for
such destroyed, lost or stolen Certificate, only upon the approval
of the City and after (i) the filing by the Holder thereof with
the Paying Agent/Registrar of evidence satisfactory to the Paying
Agent/Registrar of the destruction, loss or theft of such
Certificate, and of the authenticity of the ownership thereof and
(ii) the furnishing to the Paying Agent/Registrar of
indemnification in an amount satisfactory to hold the City and the
Paying Agent/Registrar harmless. All expenses and charges
associated with such indemnity and with the preparation, execution
and delivery of a replacement Certificate shall be borne by the
Bolder of the Certificate mutilated, or destroyed, lost or stolen.
Every replacement Certificate issued pursuant to this Section
shall be a valid and binding obligation, and shall be entitled to
all the benefits of this Ordinance equally and ratably with all
other outstanding Certificates; notwithstanding the enforceability
of payment by anyone of the destroyed, lost or stolen
Certificates.
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The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with
respect to the replacement and payment of mutilated, destroyed,
lost, or stolen Certificates.
SECTION 29: covenants to Maintain Tax-Exempt status.
(a) Definitions. When used in this Section 29, the
following terms have the following meanings:
"Code" means the Internal Revenue code of 1986, as
amended by all legislation, if any, enacted on or before
the date of delivery of the certificates to the initial
purchaser(s) thereof.
"Computation Date" has the meaning stated in Treas.
Reg. S 1.148-S(b)(l).
"Gross Proceeds" has the meaning stated in Treas.
Reg. S 1.148-S(d).
"Investment" has the meaning stated in Treas.
Reg. S 1.148-S(e).
"Net Proceeds" of the certificates means the
proceeds of the Certificates.
"Nonpurpose Investment" means any Investment in
which Gross Proceeds of the certificates are invested
and which is not acquired to carry out the governmental
purpose of the certificates.
"Rebatable Arbitrage" has the meaning stated in
Treas. Reg. S 1.148-2.
"Yield of"
(1) any Investment shall be computed in
accordance with Treas. Reg. §1.148-2, and
( 2) the certificates has the meaning
stated in Treas. Reg. S 1.148-3.
(b) Not to Cause Interest to Become Taxable. The city shall
not use, permit the use of, or omit to use Gross Proceeds or any
other amounts (or any property the acquisition, construction, or
improvement of which is to be financed directly or indirectly with
Gross Proceeds) in a manner which, if made or omitted,
respectively, would cause the interest on any certificate to
become includable in the gross income, as defined in section 61 of
the Code, of the owner thereof for federal income tax purposes.
Z9079 -29-
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Without limiting the generality of the foregoing, unless and until
the City shall have received a written opinion of counsel
nationally recognized in the field of municipal bond law to the
effect that failure to comply with such covenant will not
adversely affect the exclusion of interest on any Certificate from
gross income for federal income tax purposes pursuant to Section
103 of the Code, the City shall comply with each of the specific
covenants in this Section.
(c) No Private Use or Private Payments. Except as permitted
by section 141 of the Code and the regulations and rulings
thereunder, the City shall, at all times prior to the last stated
Maturity of Certificates,
(1) exclusively own, operate, and possess all
property the acquisition, construction, or improvement
of which is to be financed directly or indirectly with
Gross Proceeds of the Certificates and not use or permit
the use of such Gross Proceeds or any property acquired,
constructed, or improved with such Gross Proceeds in any
activity carried on by any person or entity other than
a state or local government, unless such use is solely
as a member of the general public, or
(2) not directly or indirectly impose or accept
any charge or other payment for use of Gross Proceeds of
the Certificates or any property the acquisition,
construction, or improvement of which is to be financed
directly or indirectly with such Gross Proceeds, other
than taxes of general application within the City or
interest earned on investments acquired with such Gross
Proceeds pending application for their intended
purposes.
(d) No Private Loan. Except to the extent permitted by
section 141 of the Code and the regulations and rulings
thereunder, the City shall not use Gross Proceeds of the
Certificates to make or finance loans to any person or entity
other than a state or local government. For purposes of the
foregoing covenant, such Gross Proceeds are considered to be
"loaned" to a person or entity if (1) property acquired,
constructed, or improved with such Gross Proceeds is sold or
leased to such person or entity in a transaction which creates a
debt for federal income tax purposes, (2) capacity in or service
from such property is committed to such person or entity under a
take-or-pay, output, or similar contract or arrangement, or (3)
indirect benefits, or burdens and benefits of ownership, of such
Gross Proceeds or any property acquired, constructed, or improved
with such Gross Proceeds are otherwise transferred in a
transaction which is the economic equivalent of a loan.
2907'9 -30-
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(e) Not to Invest at Higher Yield. Except to the extent
permitted by section 148 of the Code and the regulations and
rulings thereunder, the city shall not, at any time prior to the
final Stated Maturity of the Certificates, directly or indirectly
invest Gross Proceeds of the Certificates in any Investment (or
use such Gross Proceeds to replace money so invested), if as a
result of such investment the Yield of all Investments allocated
to such Gross Proceeds whether then held or previously disposed
of, exceeds the Yield of the Certificates.
(f) Not Federally Guaranteed. Except to the extent permitted by section 149(b) of the Code and the regulations and
rulings thereunder, the City shall not take or omit to take any
action which would cause the Certificates to be federally
guaranteed within the meaning of Section 149(b) of the Code and
the regulations and rulings thereunder.
(g) Information Report. The City shall timely file with the
Secretary of the Treasury the information required by section
149(e) of the Code with respect to the certificates on such form
and in such place as such Secretary may prescribe.
(h) Payment of Rebatable Arbitrage. Except to the extent
otherwise provided in section 148(f) of the Code and the
regulations and rulings thereunder,
29079
(1) The City shall account for all Gross Proceeds
of the Certificates (including all receipts,
expenditures, and investments thereof) on its books of
account separately and apart from all other funds (and
receipts, expenditures, and investments thereof) and
shall maintain all records of such accounting with the
official transcript of the proceedings relating to the
issuance of the Certificates until six years after the
final computation Date. The City may, however, to the
extent permitted by law, commingle Gross Proceeds of the
Certificates with other money of the City, provided that
the City separately accounts for each receipt and
expenditure of such Gross Proceeds and the obligations
acquired therewith.
(2) Not less frequently than each Computation
Date, the City shall either (i) cause to be calculated
by a nationally recognized accounting or financial
advisory firm or (ii) calculate and cause its
calculations to be verified by a nationally recognized
accounting or financial advisory firm, in either case in accordance with rules set forth in section 148(f) of the
Code and Treas. Reg. S 1.148-2 and rulings thereunder,
the Rebatable Arbitrage with respect to the
Certificates. The City shall maintain such calculations
-31-
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with the official transcript of the proceedings relating
to the issuance of the Certificates until six years
after the final Computation Date.
(3) As additional consideration for the purchase
of the Certificates by the initial purchasers thereof
and the loan of the money represented thereby, and in
order to induce such purchase by measures designed to
result in the excludability of the interest thereon from
the gross income of the owners thereof for federal
income tax purposes, the City shall pay to the United
States the amount described in paragraph (2) above and
the amount described in paragraph (4) below, at the
times, in the installments, to the place, in the manner,
and accompanied by such forms or other information as is
or may be required by section 148(f) of the Code and
Treas. Reg. SS 1.148-1 through 1.148-9 and rulings
thereunder.
(4) The city shall exercise reasonable diligence
to assure that no errors are made in the calculations
required by paragraph (2) and, if such error is made, to
discover and promptly to correct such error within a
reasonable amount of time thereafter, including payment
to the United States of any Correction Amount as
described in Treas. Reg. S 1.148-l(c) (2) and any penalty
under Treas. Reg. S 1.148-l(c)(J)(ii)(B).
SECTION 30: ~ ~alPi.iof the Certi~es. 'Ule sale of the Certificates to ~I b _e,oey Ha.tc.R.faJJ__ rn d Co. (herein
referred to as the "Purchasersd) at the price of par and accrued
interest to the date of delivery is hereby approved and confirmed.
Delivery of the Certificates to the Purchasers shall occur as soon
as possible upon payment being made therefor in accordance with
the terms of sale.
SECTION 31: Proceeds of Sale. The proceeds of sale of the Certificates, excluding the accrued interest received from the
Purchasers, shall be deposited in a construction fund maintained
at the City's depository bank. Pending expenditure for authorized
projects and purposes, such proceeds of sale may be invested in
authorized investments pursuant to the Public Funds Investment Act
of 1987 and any investment earnings realized may be expended for
such authorized projects and purposes or deposited in the
Certificate Fund as shall be determined by the City Council. All
surplus proceeds of sale of the Certificates, including investment
earnings, remaining after completion of all authorized projects or
purposes shall be deposited to the credit of the Certificate Fund.
SECTION 32: control and custody of certificates. The
Mayor of the City shall be and is hereby authorized to take and
29079 -32-
,.
have charge of all necessary orders and records pending
investigation by the Attorney General of the State of Texas,
including the printing of the Certificates, and shall take and
have charge and control of the certificates pending the approval
thereof by the Attorney General, the registration thereof by the
Comptroller of Public Accounts and the delivery thereof to the
Purchasers.
Furthermore, the Mayor, city Secretary, city Manager, and
Assistant city Manager for Financial Services, any one or more of
said officials, are hereby authorized and directed to furnish and
execute such documents and certifications relating to the city and
the issuance of the certificates, including a certification as to
facts, estimates, circumstances and reasonable expectations
pertaining to the use and expenditure and investment of the proceeds of the certificates as may be necessary for the approval
of the Attorney General, registration by the Comptroller of Public
Accounts and delivery of the Certificates to the purchasers
thereof and, together with the city's financial advisor, bond
counsel and the Paying Agent/ Registrar, make the necessary
arrangements for the delivery of the Initial Certificate to the
purchasers.
SECTION 33: Official Statement. The Official Statement
prepared in the initial offering and sale of the Certificates by.
the City, together with all addendas, supplements and amendments
thereto issued on behalf of the City, is hereby approved as to
form and content, and the City Council hereby finds that the
information and data contained in said Official statement
pertaining to the City and its financial affairs is true and
correct in all material respects and no material facts have been
omitted therefrom which are necessary to make the statements
therein, in light of the circumstances under which they were made,
not misleading. The use of such Official Statement in the
reoffering of the Certificates by the Purchasers is hereby
approved and authorized.
SECTION 34: Printed Opinion. The Purchaser's obligation
to accept delivery of the Certificates is subject to being
furnished a final opinion of Fulbright & Jaworski, Attorneys,
approving such Certificates as to their validity, said opinion to
be dated and delivered as of the date of delivery and payment for
the Certificates. Printing of a true and correct reproduction of
said opinion on the reverse side of each of the definitive
certificates is hereby approved and authorized,
SECTION 3 5: CUSIP Numbers. That CUSIP numbers may be
printed or typed on the definitive Certificates. It is expressly
provided, however, that the presence or absence of CUSIP numbers
on the definitive Certificates shall be of no significance or
effect as regards the legality thereof and neither the City nor
29079 -33-
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attorneys approving said Certificates as to legality are to be
held responsible for CUSIP numbers incorrectly printed or typed on
the definitive Certificates.
SECTION 36: Benefits of Ordinance. Nothing in this
Ordinance, expressed or implied, is intended or shall be construed
to confer upon any person other than the City, the Paying
Agent/Registrar and the Holders, any right, remedy, or claim,
legal or equitable, under or by reason of this Ordinance or any
provision hereof, this Ordinance and all its provisions being
intended to be and being for the sole and exclusive benefit of the City, the Paying Agent/Registrar and the Holders.
SECTION 37: Inconsistent Provisi2ns. All ordinances,
orders or resolutions, or parts thereof, Which are in conflict or
inconsistent with any provision of this Ordinance are hereby
repealed to the extent of such conflict and the provisions of this
Ordinance shall be and remain controlling as to the matters
contained herein.
SECTION 38: Governing Law. This Ordinance shall be
construed and enforced in accordance with the laws of the State of
Texas and the United States of America.
SECTION 39: severabilitv. If any provision of this
Ordinance or the application thereof to any circumstance shall be
held to be invalid, the remainder of this Ordinance and the
application thereof to other circumstances shall nevertheless be
valid, and the City Council hereby declares that this Ordinance
would have been enacted without such invalid provision.
SECTION 40: Effect of Headings. The Section headings herein
are for convenience only and shall not affect the construction
hereof.
SECTION 41: Construction of Terms. If appropriate in the
context of this Ordinance, words of the singular number shall be
considered to include the plural, words of the plural number shall
be considered to include the singular, and words of the masculine,
feminine or neuter gender shall be considered to include the other
genders.
SECTION 42: Public Meeting. It is officially found,
determined, and declared that the meeting at which this Ordinance
is adopted was open to the public and public notice of the time,
place, and subject matter of the public business to be considered
at such meeting, including this Ordinance, was given, all as required by Article 6252-17, Vernon's Texas civil statutes, as
amended.
29079 -34-
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SECTION 43: E;ffeotiye Date. This Ordinance shall take
effect and be in force immediately from and after its passage on
second and final reading, and IT IS 50 ORDAINED.
PASSED AND ADOPTED ON FIRST READING, this 13th day of August,
1992
PASSED AND ADOPTED ON SECOND AND FINAL READING, this 14th day
of August, 1992.
ATTEST:
(City Seal)
-35-29079
..
GENERAL CERTIFICATE
THE STATE OF TEXAS § s COUNTY OF LUBBOCK S s
CITY OF LUBBOCK §
WE, the undersigned, Mayor and City Secretary, respectively,
of the City of Lubbock, Texas, DO HEREBY CERTIFY as follows:
1. Relative to Tax-supported Indebtedness.
That the total principal amount of indebtedness of the City,
including the proposed $7,565,000 "City of Lubbock, Texas, Tax and
waterworks System (Limited Pledge) Revenue Certificates of
Obligation, Series 1992," dated August 15, 1992, payable from ad
valorem taxes levied and collected by the City is as follows:
OUTSTANDING INDEBTEDNESS--------------$124,303,752
SERIES 1992 WATERWORKS CERTIFICATES ---7.565.000
TOTAL INDEBTEDNESS---------------$131,868,752
2. Relative to Debt service Reguirements.
That a debt service requirement schedule for the City's
above-described outstanding indebtedness as well as the proposed
$7,565,000 "City of Lubbock, Texas, Tax and Waterworks System
(Limited Pledge) Revenue Certificates of Obligation, Series 1992,"
dated August 15, 1992, is attached hereto as Exhibit A and made a
part of this certificate for all purposes.
J. Relative to city Officials.
That certain duly qualified and acting officers of said City
are as follows:
DAVID R. LANGSTON
RANETTE BOYD
LABRY J. CUNNINGHAM
J. ROBERT MASSENGALE
MAYOR
CITY SECRETARY
CITY MANAGER
ASSISTANT CITY MANAGER
FOR FINANCIAL SERVICES -
CITY TREASURER
4.. Relative to Incorporation.
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;
No Text
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 January 18, 1992. A true and correct copy of
the proceedings calling and canvassing such election, together with
the charter amendments, is attached hereto as Exhibit B.
5. Relative to Taxable Values.
That the assessed value of all taxable property (net of
exemptions) in the City, as shown by the tax rolls for the year
1991, 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-----------$4,467,519,371
6. Relative to Nonencumbrance.
Save and except for the pledge of the income and revenues of
the City's waterworks system to the payment of (i) principal and
interest to become due with respect to the proposed City of
Lubbock, Texas, Tax and waterworks System (Limited Pledge) Revenue
Certificates of Obligation, Series 1992, dated August 15, 1992,
(ii) City of Lubbock, Texas, Tax and waterworks system Subordinate
Lien Revenue certificates of Obligation, Series 1991, dated May 15,
1991, and (iii) a contract with the Canadian River Municipal Water
Authority, said income and revenues of said System have not been
pledged or hypothecated in any other manner or for any other
purpose; and the above obligations and contracts evidence the only
liens, encumbrances or indebtedness of said System or against the
income and revenues of such System.
7. Relative to Income and Revenues.
The following is a schedule of the gross receipts, operating
expenses and net revenues of the City's waterworks System for the
years stated:
Fiscal Year Gross operating Net
Ending i-~o Receipts Expenses Revenues
1987 $14,516,185 $9,863,218 $ 4,652,967
1988 16,360,138 9,494,108 6,866,030
1989 17,286,235 9,758,878 7,527,357
1990 21,549,032 11,310,532 10,238,500
1991 25,871,885 14,592,700 11,279,185
8. Relative to Utility Propertie§.
The water utility properties owned, operated and maintained
by the City currently provides water services to approximately
29088 -2-
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62,119 inhabitants of the City. The City secures its water from
the Canadian Municipal Water Authority pursuant to contracts for
the purchase of untreated water in addition to City-owned wells.
As of the date hereof, no question is pending and no
proceedings of any nature have been instituted in any manner
questioning the City's right and title to its utility properties or
its authority to operate the same.
9. Relative to Rates and Charges.
The current monthly rates and charges for services provided
by the City's Waterworks System are as follows:
WATER RATES
First 1,000 gallons (minimum)
Next 49,000 gallons (per thousand)
Next 200,000 gallons (per thousand)
All over 250,000 gallons (per thousand)
10. Relative to No Petition.
$ 7.31
$ 1.53
$ 1.37
$ 1.31
That no petition of any kind or character has been filed with
the Mayor, City secretary or any other official of the City
protesting the issuance of the proposed "City of Lubbock, Texas Tax
and Waterworks System (Limited Pledge) Revenue Certificates of
Obligation, Series 1992".
11. Relative to Interest Earnings.
That interest earnings on proceeds from the sale of $7,565, ooo
"City of Lubbock, Texas, Tax and Waterworks System (Limited Pledge)
Revenue Certificates of Obligation, series 1992" will be deposited
to the Certificate Fund established by the ordinance authorizing
the issuance of the obligations, save and except during the time of
construction of improvements and extensions being financed by such
obligations, such interest earnings, upon approval of the governing
body of the City, will be used for the construction of improvements
and extensions for which such obligations are being issued.
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WITNESS OUR HANDS AND T
this the 14th day of August,
(City Seal)
29088 -4-
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August 14, 1992
Messrs. Fulbright & Jaworski
2200 Ross Avenue, suite 2800
Dallas, Texas 75201
RE: $7,565,000 "City of Lubbock, Texas, Tax and waterworks System
(Limited Pledge) Revenue Certificates of Obligation, Series
1992", dated August 15, 1992
Gentlemen:
Enclosed you will find four Certificates as to Tax Exemption
executed but undated.
At such time as the above described certificates are delivered
to the purchaser, you are authorized to complete and date each of
these certificates.
29075/3
Very truly yours,
ssistant City Mangefor
Financial Services
City of Lubbock, Texas
No Text
August 14, 1992
Attorney General of Texas
411 West 13th Street -4th Floor
Austin, Texas 78701
Attention: Public Finance Division
RE: $7,565,000 "City of Lubbock, Texas, Tax and Waterworks System.
(Limited Pledge) Revenue Certificates of Obligation, series
1992", dated August 15, 1992
Ladies and Gentlemen:
Enclosed herewith is the Initial certificate 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 and the Initial Certificate 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 Certificate to the Comptroller of Public Accounts for
registration.
Should any litigation in any way affecting the issuance of the
certificates or the security for the payment thereof develop prior
to that date, the undersigned or other official of the City, 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
certificates are finally approved unless notice to the contrary has
been given in the manner af ntioned.
29075/1
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August 14, 1992
NationsBank of Texas, N.A.
500 w. Seventh, 11th Floor
Fort Worth, Texas 76102
Attention: Corporate Trust Department
RE: $7,565,000 "City of Lubbock, Texas, Tax and Waterworks System
(Limited Pledge) Revenue Certificates of Obligation, Series
199211 , dated August 15, 1992
Ladies and Gentlemen:
In reference to the above described series of obligations, the
delivery of the same to the initial purchasers is to occur at your
Bank with a single fully registered obligation in the total
principal amount of said series (the "Initial Obligation"). When
the Initial Obligation has been approved by the Attorney General
and registered by the Comptroller of Public Accounts, it will be
sent by the Comptroller to the City's Bond Counsel, Fulbright &
Jaworski, Attorneys at Law, 2200 Ross Avenue, suite 2800, Dallas,
Texas for their examination. After the examination of the Initial
Obligation by said Firm, the same will be sent to you and thereupon
you are authorized to deliver the same to the initial purchasers
thereof, to wit:---------,----,----,----' or their order, upon payment being made therefor in immediately available funds in
accordance with the terms of the Certificate and Receipt for
Payment 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,
Lubbock, Texas, Attention: Selma Sedgwick.
Enclosed herewith you will find four copies of the Signature
and No-Litigation Certificate, four copies of the Certificate as to
Official Statement, and three copies of the Certificate and Receipt
for Payment executed and completed except as to date. When payment
for the obligations is made, please date and release one copy of
the Signature and No-Litigation Certificate and Certificate as to
Official statement to the purchasers and forward the remaining
copies of said Certificates and all executed and dated copies of
the Certificate and Receipt for Payment to Bond Counsel at the
address shown above.
29075/4
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Should any litigation having any effect upon the subject
obligations develop prior to the time you have received payment for
same, the undersigned or other official of the City will notify you
at once by telephone and by telegraph. You may thus be assured
that there is no such li · a 1 at t.J'S._,.....,~the obligations are
delivered to you unless you hav be ed otherwise in the
manner aforementioned.
29075/5
No Text
August 14, 1992
Ms. Arlene Chisholm
Economic Analysis Center
Comptroller of Public Accounts
P.O. Box 13528, Capitol Station
Austin, Texas 78711
RE: $7,565,000 "City of Lubbock, Texas, Tax and Waterworks System
(Limited Pledge) Revenue Certificates of Obligation, Series
1992 11 , dated August 15, 1992
Dear Ms. Chisholm:
When the Initial Certificate 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 it by
overnight delivery to the finn of Fulbright & Jaworski, 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 be enclosed w the Initial Certificate when it is
sent to said firm,
29075/2
1 •
AFFIDAVIT OF PUBLICATION
THE STATE OF TEXAS S
COUNTY OF LUBBOCK S
CITY OF LUBBOCK S
BEFORE ME, the undersigned authority, on this day personally
appeared r, 1 , a u f i 1 1 , who, after be Ing by me duly
sworn, deposes and says that (s)he is the Account Manaeer of the Lubbock Avalanche-Journal, which is a newspaper published and
having general circulation in the City of Lubbock, Texas, and that
a true and correct copy of the "NOTICE OF INTENTION TO ISSUE CITY
OF LUBBOCK, TEXAS, CERTIFICATES OF OBLIGATION" hereto attached, was
published in said paper on the following dates:
July 12, 1992; and
July 19, 1992
the date of the first publication of said notice being 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. ·
SWORN TO AND SUBSCRIBED BEFORE ME, this the -6 __ _ day of
A11et11<,t , 1992,
(Notary Seal)
Notary Public';"' State o?a,x~
My commission Expires=~ ~96
\
~1 1 rn
EXHIBIT A
PAYING AGENT/REGISTRAR AGREEMENT
THIS AGREEMENT entered into as of August 14, 1992 (this
"Agreement") , by and between the City of Lubbock, Texas (the
"Issuer"), and NationsBank of Texas, N.A., Fort Worth, Texas, 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 Waterworks system
(Limited Pledge) Revenue Certificates of Obligation, Series 1992"
(the "Securities") in the aggregate principal amount of $7,565,000,
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 September 9, 1992; and
WHEREAS, the Issuer has selected the Bank to serve as Paying
Agent/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 has agreed to serve in such capacities for
and on behalf of the Issuer and has full power and authority to
perform and serve as Paying Agent/Registrar for the Securities;
NOW, THEREFORE, it is mutually agreed as follows:
ARTICLE ONE
APPOINTMENT OF BANK AS
PAYING AGENT AND REGISTRAR
Section 1.01. &;!pointment.
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
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 Bank hereby accepts its appointment, and agrees to serve
as the Paying Agent and Registrar for the Securities.
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The Bank hereby accepts its appointment, and agrees to serve
as the Paying Agent and 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.
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.
"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.
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"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.
"Security Register" means a register maintained by the
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.
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section 2.02. other Definitions.
The terms 11Bank,11 "Issuer," 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 J.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 Dates.
The Issuer hereby instructs the Bank to pay the principal of
and interest on the Securities at the dates specified in the Bond
Resolution.
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 •security Register") for recording the names and
addresses of the Holders of the securities, the transfer, exchange,
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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.
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.
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.
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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.
securities.
Lost. or stolen
The Issuer hereby instructs the Bank, subject to the
provisions of Section 28 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
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
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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 s.O1. 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 s.O2. 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
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
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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 docUJ11ent 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 s.ol. 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 responsiblity 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.
section s.os. Moneys Held by Ac<:ount/COllateralization. the Bank Separate
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.
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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
adlllinistration 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 s.01. 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 adlllinistrative 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 s.os. 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
other organizations, the Bank has the capability and, to the extent
within its control, will comply with the "Operational
Arrangements", effective as of the date of this Agreement, 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.
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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. Seyerability.
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
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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. 7ermination.
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.
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IN WITNESS WHEREOF I the parties hereto have executed this
Agreement as of the day and year first above written.
[SEAL)
Attest:
City Secretary
(SEAL)
ATTEST:
Title:
CITY OF LUBBOCK, TEXAS
BY _____________ _
Mayor
Address: P. o. Box 2000 Lubbock, Texas 79457
NATIONSBANK OF TEXAS, N.A.
Fort Worth, Texas
BY
Mailing Address:
P. o. Box 2911
Fort Worth, Texas 76113
Delivery Address:
511 w. seventh, 11th Floor
Fort Worth, Texas 76102
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. .
EXHIBIT B
:::,· · : ; HOOK·ESTH\'·O'XIX ~IUNICil'AI. UOSDS ,. , ',· · '.
Letter of Representations ·: ~=~ :~ ... ~,._-:·::,Jr.. ~ .).' :;r,~ ~-~'>.~···
City of L~ Texas
NatimsBank of Texas, N.A.
(Sa111 .. of Ag,,ntJ
August 14, 1992
Attention: General Counsel's Office
The Depository Trust Company
55 Water Street: 49th Floor
New York, !'.Y lOOU-0099
!Date!
fle: _ __,$'--7..;..,_56_5.,.;,_ooo __ "C_i_t_.Y..._O_f_L_ul::t,ock ___ ._T_e_x.as __ , _Tax __ and __ w_a_t_e_r:wo_r_ks __
System. (Limited Pledge} Revenue Certificates of
O::>ligation, Series 1992"
, lssrn, Description l
Ladies and Gentlemen:
This letter sets forth our understanding with respect to certain matters relating to the
aba--e-referenced. issue (the "Bonds"), Agent will act as trustee, paying agent. flscal agent, or other
agent of Issuer v,ith respect to the Bonds. The Bonds will be issued pursuant to a trust indenture,
bond resolution, or other such document authorizing the issuance of the Bonds dated
--""A\J;{;;;;,a.;;us=-=-t...al .... 4 __ , 199~ (the ·oocumenr). -------:-.:-:--:---,------run&,,...11ter·1
is distributing the Bonds through The Depository Trust Company ("OTC"').
To induce DTC to accept the Bonds as eligible for deposit at OTC, and to act in accordance
with Its Rules with respect to the Bonds, Issuer and Agent, if any, make the following
representations to DTC:
No Text
l. Prior to dosing on the Boml~ 011 September 9 • 199.1.., there shall be deposited with
DTC Oflt" Bond <.<t•rtif1C11k registered in tlr name of DTCs nomitll't'. Cede & Co .. for ead1 stated
maturih• of thl· Bonds in the fat'<' amounts St'I forth on Sdwdule A hereto, the total of whith
represe,nts 100% of the principal amount of su<:h Bonds. If, however. the aggregate principal
amount of .my maturity exceeds 81.50 million, one certificate ,,.;II be issued with respect to each
$150 million of principal amount and an additional rertifk-ate will be issued with respect to any
remaining principal amount Each $150 million Bond certificate shall bear the following legend:
Unless tl1is certifl.c-.ite is presented by an auiliorized representative of 1be Depository Trust
Company. a New York rorporation ("DTC-l. to Issuer or its agent for registration of tr.msfer,
exchange. or payment, a.nd any certificate issued is registered in the name of Cede & Co. or in
such oilier name as is requested by an auiliorized representati'v-e of DTC (a.nd any pa)ment is
made to Cede & Co. or to such other entity IIS is requested by an authorized representative of
DTC), ANY TRANSFER. PLEDGE. OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO A'.'JY PERSO:'.'I IS WRONGFUL inasmuch as the registered
owner hereof, Cede & Co., has an interest herein.
2. In the e\'ent of any solicitation of consents from or voting by holders of the Bonds, Issuer or
Agent shall establish a l't'COrd date for such purposes (with no provision for revocation of ronsents or
votes by subsequent holders) a.nd shall, to the extent possible, send notice of such record date to
DTC not less than 15 calendar days in 00\lUlce of such record date.
3. In the e\-ent of a full or partial redemption or an advance refunding of part of the outstanding
Bonds, Issuer or Agent shall send a notice to DTC specifying: (a) the amount of the redemption or
refunding; (b) in the case of a refunding. the maturity date(s) established under the refunding: and
(c) the date such notice is to be mailed to benefkial 0\,\,1\ers or published (the ·publication Date·).
Such notice shal be sent to DTC by a secure means (e.g., legible telecop;-, registered or certifl.ed
mail. o\'ernight delivery) in a timely manner designed to assure that such notice Is in DTC's
possession no later than the close of business on the business day before the Publication Date.
Issuer or Agent shall forward such notice either in a separate secure transmission for each CUSIP
number or in a secure transmission for multiple CUSIP numbers (If applicable) which includes a
manifest or list of each CUSIP submitted in that transmission. (The party sending such notice shall
ha-\-e a method to verify subsequent~· the use of such means and the timeliness of such notice.) 1be
Publication Date shall be not less than 30 days nor more than 60 days prior to the redemption date
or, in tl,e case of an advance refunding. the date that the proceeds are deposited in escrow.
4. In the event of an invitation to tender the Bonds, notice by wuer or Agent to Bondholders
specifying the tenns of the tender and the Publkation Date of such notice shall be sent to DTC by a
secure means in the manner set forth in the preceding Paragraph.
5. All notices and payment advices sent to DTC shall contain the CUSIP number of the Bonds.
6. Notices to OTC pursuant to Paragraph 2 by telecopy shall be sent to DTCs Reorganization
Department at (212) 709-6896 or (2121 709-6897, and receipt of such notices shall be
ronfumed by telephoning (212) 709-68i0. Notices to DTC pursuant to Paragraph 2 by mail or by
any oilier means shall be sent to:
Supervisor; Proxy
Reorganization Department
The Depository Trust Company
7 Hanover Square: 23rd F1oor
New Yorlc, NY 10004-2695
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1, Xotil-1.•s to DTC p11rs11i1nl lo Pamgmph 3 hy tt'l1.·mpy ~h.Jl h(• st•nl to DTCs O.JI !\otifK:ution
D1.•1x1rt11wnt at (,'516• :2:27...fl&l or (516) 2:?i-4190. Irtht· ()ilrty s1.•ndiug lht• notkt.' do(•s not re<.-civc a
tt-lt>(.'t>py ra't•ipt rmm DTC <.'l.mfinning that tht> nolil~ bas lx.-cn m:ciwd. sud1 party sha11 telc:phone
(516) 22i-40i0. Xotkes to DTC pursuant to Pamgmph 3 by mail or by any other means shall be
sent to:
Call !\otification Dt>partment
The Depository Trust Company
ill Stewart AvenUt>
Garden City, NY 11530-4719
8. Notices to DTC pursuant to Par.igraph 4 and notic.-es of other actions (including mandatory
tenders, exchanges. and capital changes) by telecopy shall be sent to OTC's Reorganization
Department at (212) 700-1093 or (212) 709-1094, and rect.>ipt of such notices shall be confinned by
telephoning (212) 700-6884. Notices to DTC pursuant to the aOO\-e by mail or by any other means
shall be sent to:
~anager; Reorganization Department
Reorganization \\1ndow
The Depository Trust Company
7 Hano\'er Square; 23rd F1oor
Xew York. NY 10004-2695
9. Transactions in the Bonds shall be eligible for next-day funds settlement in DTCs Xext-Day
Funds Settlement ("XDFSK) system.
A. Interest pa:ments shall be recei\"ed by Cede & Co., as nominee of DTC, or its registered
assigns in next-day funds on each pa)ment date (or the equivalent in accordance with
existing arrangements between Issuer or Agent and DTC). Such pa)ments shall be made
payable to the order of Cede & Co. Absent any other existing arrangements such
pa:, ments shall be addressed as follows:
Manager; Cash Receipts
DMdend Department
The Depository Trust Company
i Hanover Square: 24th Floor
!IJew York. NY 10004-2695
B. Principal pa)ments shall be received by Cede & Co., as nominee of OTC, or its registered
assigns in next-day funds on each pa)ment date (or the equivalent in accordance 'lith
existing arr.ingements between Issuer or Agent and OTC). Such payments shaJJ be made
payable to the order of c.ede & Co., and shall be addressed as follows:
NDFS Redemption Department
The Depository Trust Company
5.5 Water Street; 50th Floor
New York. NY 10041--0099
IO. OTC may direct Issuer or Agent to use any other telephone number or address as the
number or address to which notices or pa)ments of interest or principal may be sent.
11, In the event of a redemption, acceleration, or any other similar transaction {e.g., tender made
and accepted in response to Issuer's or Agent's imitation) necessitating a reduction in the awegate
principal amount of Bonds outstanding or an ad\'ance refunding of part of the Bonds outstanding,
OTC, in its discretion: (a) may request Issuer or Agent to issue and authenticate a new Bond
certificate, or (b) may make an appropriate notation on the Bond rertiflcate indicating the date and
amount of such reduction in principal except in the case of final maturity, in which case the
certificate will be presented to Issuer or Agent prior to payment if required.
No Text
12. Jo tliC' t'\l'llt tlmt Issuer dc•tt•nninl's that lx•twfkial O\\llt'rs of Bonds shall IX> able to obtain
u:rtillmted Bon<k Issuer or Agc•nt shall notify OTC of the a\ ,tilahilily of Bond tt'rtillc:atl'S. In such
ewnt, Issuer or Agt'nt shall issue, trnnsfor. and exchange Bond c.~•rtiflc-.1tes In appropriate amounts,
as required by OTC and others.
13. DTC may discontinue pro\iding its ser\ires as securities depository with respect to the
Bond~ at any time by gi\ing reasonable notice to Issuer or Agent (at which time OTC wiU confirm
with Issuer or Agent the aggregate principal amount of Bonds outstanding). Under such
circumstances, ut DTC's request Issuer and Agent shall cooperate fully with DTC by taking
appropriate action to make available one or more separate certifiC".ltes e,,idencing Bonds to any
OTC Partidpant ha..,ing Bonds credited to Its OTC accounts.
14. Sothing herein shall be deemed to require Agent to advance funds on behalf of Issuer.
Recei\·ed and Accepted:
THEOEPOSITORYTRUSTCOMPA~"Y
B~:-------------1.\uthoraec! Ollur!
CC: Und,.,.'ritrr
UndeN'littti Counk"I
Very truly yours,
City Of Lubbock, Texas
Ossll<'rl
8~1 ---------------.\u!horiud Of!'..,,.•, Si{tll•tilre l
NationsBa.nk of Texas, N.A., Ft. Worth
{Ag!,ntl
B~, ----------------!\uthonud {)ff._..,·, S~ure 1
-4.
No Text
' ..
SCHEDULE A
(Descnbe Issue)
Principal Amount Maturity Date Interest Rate
No Text
' . '
SAMPLE OFFICIAL STATEMENT LANGUAGE
DESCRIBING BOOK-ENTRY-ONLY ISSUANCE
SCHEDULEB
(Prepared by OTC--bracketed material may be applicable only to certain issues)
1. The Depository Trust Company rDTC"1. New York, NY. will act as securities depository for the securities (the
·Securitiesj. The Securities will be issued as fult,-registered securities registered in the name of Cede & Co. (DTC's
partnership nominee). One fully-registered Secunty certificate will be issued for (each issue o1J the Securities, [each] in
the aggregate principal amount of such issue. and will be deposited with OTC. Pf, however, the aggregate principal
amount of [any) issue exceeds $150 m~lion, one certificate will be issued with respect to each $150 million of principal
amount and an additional certificate wiD be issued with respect to any remaining principal amount of such issue.]
2. OTC is a fimited-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 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 of Section 17A of the Securities Exchange Act of 1934. OTC holds securities that its participants
("Participantsj depOSit with OTC. OTC 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. OTC 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 OTC system is
also available to others such as securities brokers and dealers, banks. and trust companies that dear through or
maintain a custodial relationship with a Direct Participant. either directly or indirectly ("Indirect Participantsj. The Rules
applicable to OTC and its Participants are on file with the Securities and Exchange (:ommission.
3. Purchases of Securities under the O:C system must be made by or through Direct Participants. which win
receive a credit for the Securities on OTC's records. The ownership interest of each actual purchaser of each Secuity
iBeneficial Ownerj is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will
not receive written confirmation from OTC cf their purchase, but Beneficial Owners are expected to receive written
confirmations providing details of the transaction. as wen as periodic statements of their holdings, from the Direct or
Indirect Participant through which the Beneficial Ovvner entered into the transaction. Transfers of ownership interests
in the Securities are to be accompfished by entrieS made on the books of Participants acting on behalf of Beneficial
Owners. Beneficial ONners will not receive certificates representing their ownership interests in Secuities, except in
the event that use of the book-entry system for the Securities is discontirued.
4. To facilitate subsequent transfers, an Securities deposited by Participants with OTC are registered il the name of
OTC's partnership nominee, Cede & Co. The deposit of Securities with OTC and their registration in the name of Cede
& Co. effect no change in beneficial ownership. OTC has no knowledge of the actual Beneficial Owners of the
SecurilieS; OTC's recordS reflect orfy the identity of the Direct Participants to whose accounts such Securities are
credited, which may or may not be the Beneficial Owners. The Participants win remain responsible for keeping
account of their holdings on behalf of their customers.
5. Conveyance of notices and other communications by OTC 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 reguatory requirements as may be in effect from time to time.
(6. Redemption notices shall be sent to Cede & Co. II less than an of the Securities within an issue are being
redeemed, OTC's practice is to determine by lot the 8tTlWll of the interest of each Direct ~ il such issue to
be redeemed.)
7. Neither OTC nor Cede & Co. will consent or 1/0te with respect to Secuities. Under its usual procedures, OTC
mails an Omrubus Proxy to the Issuer as soon as possible after the record date. The Omllbus Proxy assigns Cede &
Co. 's consenting or voting rights to those Direct Participants to whose accounts the Securities are credited on the
record date ~der.tified in a r1Sting attached to the Omnibus Proxy).
. . .
8. Principal and interest paymenls on the Securities wiH be made to OTC. DTC's practice is lo credit Direct
Participants' accounts on payable date in accordcrce with their respective holdings shown on DTC's recoi,ls unless
OTC 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 regis1er&:l in ·street name," and v.ill be the responsibility of such Participant
and not of OTC, the Agent. or the Issuer, subject to any statulory or regulatory requirements as may be in effect from
time to time. Payment of principal and interest to OTC is the responsibility of the Issuer or the Agent, disbursement of
such payments to Direct Participants shall be the responsibdity of OTC. and disbursement of such payments to the
Beneficial Owners shaH be the responsibility of Direct and Indirect Pa.rtielpants.
19. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its
Participant. to the rrender/Remarketing) Agent. and shall effect delivery of such Securities by causing the Direct
Participant to transfer the Participant's interest in the Securities. on OTC's records, to the [Tender/RernartetingJ Agent.
The requirement for physical delivery of Securities in connection with a demand for purchase or a mandatory
purchase >MD be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on
OTC's re:::ords.J
1 o. OTC may discontinue providing its ser'llices as securities depos~ory v.ith respect to the Securities at any lime
by gMng reasonable notice to the Issuer or the Agent. Under such circumstances, in the event that a successor
securities depository is not obtained. Security certificates are required to be printed and defl',/ered.
11. The Issuer may decide to dscol'llinue use of the system of book-entry transfers through OTC (or a successor
securities depository). In that event. Security certificates will be printed and delivered.
12. The information in this section concerning OTC and OTC's book•entr; system has been obtained from sources
that the Issuer believes to be reliable, but the Issuer takes no responsibility for the accuracy thereof.
-ii-
No Text
FULBRIGHT & JAWORSKI
TELl!:PHONE: 214/655·8000
~.-.CSIMILI!:: el4/6S5•8200
WRITER'S OIRECT 01.-.L NUMBl!:R:
214/8SS•800:i!
VIA FEDERAL EXPRESS
Ms. Betsy Wood
Department of Finance
City of Lubbock
1625 13th Street
Lubbock, Texas 79401
2200 Ross AVENUE
SUITE 2800
DALLAS, TEXAS 75201
July 81, 1992
HOUSTON
WASHfNGTON, O.C.
AUSTIN
SAN ANTONIO
DALLAS
N!W YORK
LOS ANGELES
LONOON ,
ZUAICH
HONG KONG
RE: $7,565,000 "City of Lubbock, Texas, Combination Tax and Waterworks System
(Limited Pledge) Revenue Certificates of Obligation, Series 1992"
Dear Betsy:
Enclosed herewith are the proceedings relating to the issuance of the above
described certificates. We are forwarding these at this time so that you might have the
opportunity to get some of the documents signed ahead of time and hold them until the
date of final passage of the ordinance. We have forwarded the Paying Agent/Registrar
Agreement and Letter of Representations directly to NationsBank and requested that
signed copies be delivered to you before August 14th. The enclosures are as follows:
1. Two copies of the Ordinance authorizing the issuance of the certificates.
When completed (Sections 2 and 30) and executed, one copy is for the City's records
and one copy is to be returned to us.
2. Five copies of the Certificate of City Secretary relating to passage of the
ordinance on first reading. When completed and executed, one copy is for the City's
records and four copies are to be returned to us.
3. Five copies of the Certificate of City Secretary relating to the passage of
the ordinance on second reading. When completed and executed, one copy is for the
City's files and four copies are to be returned to us.
4. Two copies of the Waiver of Notice and Consent to Special Meeting to be
executed by any absentees at the special meeting to be held on August 14, 1992. If
there are no absentees, the Waiver may be discarded.
20081
No Text
" ·~·-
Ms. Betsy Wood
July 31, 1992
Page2
5. Five copies of the General Certificate to be execut.ed. Retain one copy for
your files and return four copies to us. The debt service requirement schedule attached
as Exht'bit A will be furnished by First Southwest Company. Please not.e Exhibit B, a
copy of the recent charter amendment proceedings. We will need a copy of the election
order, the canvassing order, and the proceedings submitted to the Secretary of Stat.e.
6. Five copies of Signature and No-Litigation Certificat.e to be execut.ed by
the Mayor and City Secretary and their signatures verified by the City's depository
bank. The seal of the City and the seal of the bank are to be impressed on each
Certificat.e. DO NOT DATE these Certificat.es as they will be dat.ed at the time of
delivery. Return all copies to us.
The signatures of the City officials must conform to the signatures of those
officials signing the Initial Certificat.e.
7. Four copies ofCertificat.e as to Official Statement to be signed but are nQi;
to be dat.ed. Return all signed copies to us.
8. Two copies each of four lett.ers of instruction to be signed by the
appropriate City officials. Retain one copy of each letter for your files and return one
copy to us.
9. The Initial Certificat.e to be signed, sealed and returned to us.
10. Twenty definitive certificat.es, being one certificat.e for each year of
maturity, to be signed and sealed. These are prepared because of the book-entry
delivery provisions. Return all signed certificates to us.
11. Three copies of Form 8038-G to be signed and returned to us. We will
complete the form and file with Int.ernal Revenue Service after delivery of the
certificat.es.
Please call if you have any questions regarding the enclosures. I will be
att.ending the meetings on August 13th and 14th to offer any assistance in getting the
documents completed and executed.
MSW/le
Enclosures
cc: Joe W. Smith (w/encls.)
20081
Very truly yours,
---rJ1~
Mark i. Westergard
No Text
FULBRIGHT & JAWORSKI
TELCF'HONC: 214/SSS•SOOO
P"ACSIMILC: 2!<0/855•8200
WRITER'S OIRE:C-. DIAL NVMB!l:R:
21.o/SSS•SQOZ
VIA FEDERAL EXPRESS
Ms. Betsy Wood
Department of Finance
City of Lubbock
1625 13th Street
Lubbock, Texas 79401
2200 Ross AVENUE
SUITE 2800
0Al..1..AS, TEXAS 75201
August 7, 1992
HOUSTON WASHINGTON~ D.C.
AUSTIN
SAN ANTONIO
DALLAS
NEW VORK
LOS ANGELES
t..ONOON
ZURICH
HONG KONG
RE: $7,565,000 "City of Lubbock, Texas, Combination Tax and Waterworks System
(Limited Pledge) Revenue Certificates of Obligation, Series 1992"
Dear Betsy:
Enclosed herewith are four ( 4) copies each of the Pa;ying Agent/Registrar
Agreement and the DTC Letters of Representation relating to the above described
certificates. These documents have already been executed by NationsBank. Once these
documents have been executed at the meeting on August 14, please return all copies to
us.
Please call if you have any questions.
MSW:lc
Enclosures
9697/102
Very truly yours, 4w
Mark S. Westergard
' ' ':': •-<
{ ' . 'i' •1-i
r,•
Honorable Mayor and City Council
City of Lubbock, ~•n•
Members of the City Council:
OFFICIAL BID FORM
August 13, 1992
Ri>ferenc,, i• made to y011r Official Stalemeut and Notke of Sole and Bidd!og ll!Sttuctioos, dated July 20, 1992, of $7,565,000 CITY OF LUBBOCK,
TEXAS TAX AND WA'IERWORXS SYSTEM (l.lMlTED PLEDGE) REVENUE CERTIFICATES OF OBUOATION, SEll.IES 1992, both of ,wi<:h
coostirute • patt hereof.
For your leplly lsoued Certific:a1ea, u described io said Notice of Sale 8l!d Bidding lnstructioOJI and Official Statemeot, -will pay you par and accrued
iole..,.t from dal<> of issue lo daffl of dolivecy lo ua, plus a oasb premium of $ -0 -for Certlficate11 maturing and bearing intemst as
followa:
Principal Interest Prioclpal In1erest
Maturity ~mgunt Rau, Maturitt Amount RJl!e
2-IS-1993 $ 63$,000 u£....r. 2-IS-200.3 $200,000 5~r.
2-15-1994 635,000 ~!I 2-lS-2004 200,000 ~Iii
2-15-1995 640,000 re.:JS_ ti 2-15-200.S 200,000 ~II,
2-15-1996 640,000 feJ.S_r. 2-15-2006 200,000 5',<,;,D ti
2-15-1997 640,000 '-,:30 r. 2-15-2007 200,000 S;/_Q_r.
2-!S-1998 475,000 'f..1s_11 2-15-2008 200,000 5.J&.11,
2-15-1999 475,000 't,1£11, 2-ts-2009 200,000 ~II,
2-15-2000 475,000 'i:i.Q._r. 2-15-2010 200,000 4,75 ti
2-15-2001 475,000 ~ti 2-15-2011 200,000 il.S_ti
2-15-2002 475,000 5..2.Q_r. 2-lS-2012 200,000 'f.15',.
Our calculation (which is DOI a patt of lhls bid) of the i01eres1 cost from the above is:
Total Interest Cost $ 2/i'1"Zt1.Z.7,50
Less Premium .... o-
NEI' IN'f'EREST COST $ z.i~~f 1.£0
EFFECilVE 1NTEREST RATE '5'. _!ii II,
We are having !be Certificates of the following maturities I\) Q IV e,.. insured by ----~=_,at a premium of$:,.,..,--=---• uid premium to be paid by the Putthaser. Any fees to-,be-pa,""·'"'d""to.....,,.tbe_ratmg.,,... -.-genc--.ies,-
•• • n,sult of said iosur8l!re will he paid bv ihe City. S?tflTB BA.R..~EY, HARRIS UPHAM & CO,
The Initial Certificate shall be registen,d in the name of lNCORPORAn::D • We will advioe The Depooitory Trust
Company ('DTC") of n,gistration instructior _at least five business days pnor the da.:_e set for lruual Delivery.
A Cashier'• Cbed: of the \b: (' t ufu Bani:, fi/_ , in the amount of$151,300.00, which "'l"'""'nts our Good Faith Depos,t (ls attached he....to) or (has been made available lo you ·or IO the opening of this bid), and Is submitted in accordanc,,
with the lerms as set fotth in !be Oftl<illl Slsletnenl and Notice of Sale and lllddiog InstructioDS.
We agree to accept delivery of the CertifioaleS utilizing the Book-Entry-Only System through DTC 8lld make payment for the Initial Certificale in
immediately available funds in the Corporate Trust Division, N'l!ioosBank of Te.,.,, N.A., Fort Worth, Texas, not later tb8l! 10:00 AM, CDT, on
September 9, 1992, or tben:afler on the dal6 the Certificates are tendered for delivery, pursuant lo Ille terms set forth in the Notlre of Sale 8l1d Bidding
Instructions.
The undenigned agrees IO complele, eneute, and doUver to the City, at least six buoiness day• prior lo delivery of the Certificates, a "'rtificate mating
to the "issue price• of the Certifioates in the form and to the effect ll<COlllp&ll)'ing the Notire of Sale 8l!d Bidding Jnrtructions, with •ucli changes thereto
•• may be ...-eptable lo the City.
We agree to provide In etlng the initial reofferlng prices and other terms, if any, to the Financlal Advisor by the d...e or the next husin ... day
after .the award.
~fully submitted,
J.,, hU', '1.«,v~y J
1
The above and foregoing bid is ben,by in all things accepted by the City of Lubbock, 'J:
Bidding Insttucti"'!•, this the 13th day of August, 1992.
,t;
\
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 13th day of August, 1992, 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
MAGGIE TREJO
T. J. PATTERSON
M.J. 11BUD" ADERTON
MAX INCE
RANDY NEUGEBAUER
ALEX "TY" COOKE
MAYOR
MAYOR PRO TEM
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, th~ attached ordinance entitled:
ORDINANCE NO. 9542
AN ORDINANCE authorizing the issuance of "CITY OF
LUBBOCK, TEXAS, TAX AND WATERWORKS SYSTEM (LIMITED
PLEDGE) REVENUE CERTIFICATES OF OBLIGATION, SERIES
199211 ; levying an ad valorem tax upon all taxable
property in the City and pledging 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 and
distribution of an Official Statement pertaining
thereto; and providing an effective date.
was 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. J. Patterson and seconded
by ' Randy Neugebauer the ordinance was duly passed and adopted by
the council on first reading by the following vote:
__ 7_voted 11For11 o voted II Against 11 ___o_abstained
No Text
all as shown in the official Minutes of the council for the meeting
held on the aforesaid date.
2. That the attached ordinance 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 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
subject of the entitled ordinance, was posted and given in advance
thereof in compliance with the provisions of Article 6252-17,
Section 3A, v.A.T.c.s.
IN WITNESS WHEREOF, I have hereunto signed my name
officially and affixed the seal of said City, this the 13th day of
August, 1992.
~~ City ecretary Cityf :ubbock, Texas
(City Seal)
29077 -2-
No Text
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:
l. That on the 14th day of August, 1992, the City Council of
the City of Lubbock, Texas, convened in special 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
MAGGIE TREJO
T. J. PATTERSON
M.J. "BUD" ADERTON
MAX INCE
RANDY NEUGEBAUER
ALEX 11TY11 COOKE
MAYOR
MAYOR PRO TEM
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 ordinance entitled:
ORDINANCE NO. 9542
AN ORDINANCE authorizing the issuance of "CITY OF
LUBBOCK, TEXAS, TAX AND WATERWORKS SYSTEM (LIMITED
PLEDGE) REVENUE CERTIFICATES OF OBLIGATION, SERIES
199211 ; levying an ad valorem tax upon all taxable
property in the City and pledging 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 and
distribution of an Official statement pertaining
thereto; and providing an effective date.
was 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. J. Patterson and seconded
by Randy Neugebauer the ordinance was duly passed and adopted by
the Council on second and final reading by the following vote:
_? __ voted "For" --=-o __ voted "Against 11 __u__abstained
No Text
all as shown in the official Minutes of the council for the meeting held on the aforesaid date.
2. That the attached ordinance is a true and correct copy of
the original on file in tqe 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 subject of the
entitled ordinance, was posted and given in advance thereof in
compliance with the provisions of Article 6252-17, Section 3A,
v.A.T.c.s.
IN WITNESS WHEREOF, I have hereunto signed my name officially
and affixed the seal of said City, this the 14th day of August,
1992.
<;i?..£3. f-CitSecretary 2'
City of Lubbock, Texas
(City Seal)
29078 -2-
No Text
CITY OF LUBBOCK
INTEROFFICE MEMO
TO: J. Robert Massengale. Assistant City Manager/
Financial Services Division
FROM: Betsy Wood, Assistant Director of Finance~ SUBJECT:· Proposed Issue of $7.565,000 Certificates of
Obl igat1on
DATE: July 9, 1992
CALENDAR OF ACTION REQUIRED TO ISSUE
$7.565,000 TAX AND WATERWORKS SYSTEM (LIMITED PLEDGE)
REVENUE CERTIFICATES OF OBLIGATION, SERIES 1992
DATES/PERSONS
RESPONSIBLE ACTION
July 1, 1992/ Agenda Meeting for July 9 City Council
Meeting.
Betsy Wood City Council considers Resolution
Joe Smith (1) Approving and Authorizing publication of
Mark Westergard(2) Notice of Intention to issue Certificates
July 9, 1992
Betsy Wood
Joe Smith Mark Westergard
July 12, 1992
City Secretary
Mark Westergard
July 15, 1992
, July 19, 1992
City Secretary
Mark Westergard
of Obligation (CO's) and resolution auth-
orizing Publication of Notice of Sale.
City Council Neeting.
City Council considers Resolution
Approving and Authorizing publication of
Notice of Intention to issue Certificates
of Obligation (CO's) and resolution auth-
orizing Publication of Notice of Sale
Publish Notice of Intention to issue
Certificates of Obligation in Lubbock
Avalanche Journal. Publish Notice of
Sale in Avalanche Journal.
Agenda Meeting for July 23 City Council
Meeting.
Publish Notice of Intention to issue
Certificates of Obligation in Lubbock
Avalanche Journal. Publish Notice of
Sale in Avalanche Journal.
(1) Representative of First Southwest Financial Advisors. -· .,. (2) Representative of Fulbright & Jaworski, Bond Counsel.
No Text
Proposed Issue
July 9, 1992
Page 2
July 20, 1992
Betsy Wood
Joe Smith
July 23, 1992
July 26, 1992 City Secretary
Mark Westergard
July 29-30, 1992
Joe Smith
August 2, 1992
City Secretary
Mark Westergard
August 5, 1992
Betsy Wood
Hark Westergard
August 9, 1992
City Secretary Mark Westergard
August 13, 1992 Betsy Wood
Mark Westergard
August 14, 1992
Betsy Wood
Mark Westergard
Forward preltmtnary Notice of Sale and
Official Statement to rating agencies for rating requests. Forward copies to
Cooper's and Lybrand for Opinion.
City Council Meeting.
Publish Notice of Sale in Lubbock
Avalanche Journal.
Distribute Final Notice of Sale and
Final Official Statement.
Publish Notice of Sale tn Lubbock
Avalanche Journal.
Agenda Meeting for August 13, 1992 City
Council Meeting.
First Reading of Ordinance Authorizing
Issuance of Certificates. Special Meeting on August 14, 1992.
Publish Notice of Sale in Lubbock
Avalanche Journal.
City Council Meeting First Reading of Ordinance Authorizing
Issuance of Certificates. Special Meeting on August 14, 1992. ·
City Council {Special) Meeting.
Second Re4ding of Ordinance Authorizing
Issuance of Certificates
•September 2, 1992 Agenda Meeting for September 10 City
Council Meeting
City Attorney Tax Rate Ordinance
No Text
.. ,. , ,.......
Proposed Issue
July 9, 1992
Page 3
September 9, 1992 Predicted Delivery Date of Series 1992, Certificates of Obligation.
September 10, 1992 City Council Meeting
City Attorney Tax Rate Ordinance
September 23, 1992 Latest Delivery Date of Certificates
CC: Joe Smith, Vice President, First Southwest
Mark Westergard, Attorney, Fulbright & Jaworski
Brent Burrows, Cooper's & Lybrand
Ranette Boyd, City Secretary
Rita Harmon, Assistant City Manager/Public Safety
Services John Ross, City Attorney
No Text
EXCERPI'S FROM THE
CITY OF LUBBOCK, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL ~RT
For the Year Ended September 30, 1'91
The information contained herein has been :rq,roduced from the City of
Lubbock, Texas Comprehensive Annual Financial Report for the Year Ended
September 30, 1991. The information presented rcpre.,ents only a part of the
Annual Report and does not purport to be a complete statement of the City's
financial condition. Reference is made to the complete Comprehensive Annual
Financial Report for further information.
No Text
TABLE OF CONTENTS
Auditor's Opinion ....................................................... 3
General Purpose Financial Statements:
Combined Balance Sheet -All Fund Types and Account Groups .•.•. 6-9
Combined Statement of Revenues, Expenditures,
and Changes in Fund Balances -All Governmental
Fund Types and Expendable Trust Funds ........................... 10
Combined Statement of Revenues, Expenditures, and
Changes in Fund Balances -Budget (GAAP Basis) and
Actual -General and Special Revenue Types .••••••••.••••••••.••. 11
Combined Statement of Revenues, Expenses, and Changes
in Fund Equity/Retained Earnings -All Proprietary Fund Types .•. 12
Combined Statement of Cash Flows -
Al 1 Proprietary Fund Types ...................................... 13
Notes to the Combined Financial Statements .•.•..•..••........ 14-69
Enterprise Funds:
Combining Balance Sheet ••••••••••••...••.•••••.•.•••••.•..•. 72-73
Combining Statement of Revenues, Expenses, and Changes in
Fund Equity/Retained Earnings ................................... 74
Combining Statement of Cash Flows .............................. 75
_;:.-,:::. ~ ~ ~--~ LUBBCCKT EXAS
Coopers
&Lybrand
c:ert1l1ed pubhc ao:::ounlants
INDEPENDENT AUDITOR'S REPORT
The Honorable B. C. McMinn
Mayor of Lubbock
Members of City Council
City of Lubbock, Texas
We have audited the accompanying general purpose financial statements of the City of Lubbock,
Texas, as of September 30, 1991, and for the year then ended, as listed in the Table of Contents.
These general purpose financial statements are the responsibility of the City's management. Our
responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all
material respects, the financial position of the City of Lubbock, Texas, as of September 30, 1991, and
the results of its operations and the cash tlow-s of its proprietary fund types for the year then ended
in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the general purpose financial
statements taken as a whole. The combining financial statements listed in the Table of Contents are
presented for purposes of additional analysis and are not a required part of the general purpose
financial statements of the City of Lubbock, Texas. Such information has been subjected to the
auditing procedures applied in the audit of the general purpose financial statements and, in our
opinion, is fairly presented in all material respects in relation to the general purpose financial
statements taken as a whole.
December 31, 1991
Lubbock, Texas
3
No Text
GENERAL PURPOSE FINANCIAL STATEMENTS
8-rlll At••· Pook,dcut, and c:a~W•n• I 2.959,-Rl-ctlva.btlt {net.. wtler• appllcatda, of dowance for uncotltctlb'"): TUN, lnctuding int.'"1. pt,nallUM. and tt.n, 3,134,!01 koouftll and nollJ• 966,824 lnttrut 2158,044 "' Oue f,o,-n other fund• 3,782,328 Du11J trom other ga¥•mf'l'ltntt 106,098 Due ffom ether au•nr:iH 30,760 Prtplld •~ml$ 134,97\) Advances 10 othar N nd 1 1,'36.383 lnventQf)', ata.veraQt,cott 150 A,i,stricMd ue:ot$: ~ cash and eash .quf'failfnta • ,I.QcQIJntt~iY3blia 0 lnt1na!J1 rtttivablil • Prepaid tnsurance 0.1e"9<1c~ Fi:-:,:: .utett (nat ot accvmofa1•d deoraCll.tion} 0 OthM .asseta (net of aiecu!T'Klt.lted ar.,o,11zatiot1J 0 Ar-lol..nt av.ailabk, in Debt S.rvice Fund• 0 ~11 to be pl'Olrided ro, retlf~t c! ;tntral long-~fl"n debt and, p.Nment of 101es ~d lttalH payal»t 0 1ot.1Ja,;Htt $ 12,790,018 (CO""nnueo) SM ;l.CC0tt1Hllf"'9' notH to 1il'la....:;,alr..a:.tmtnta s CITY OF LUBBOCK, TEXAS COMBINED BALANCE SHEET -ALL FUND lYPES ANO ACCOUNT GROUPS September 30, 1991 With Comparative Totals for Septemb8f 30, 1990 Oow,rnmeintal Fund T,P6t _,111 llobt Capital ~nu• S.rvioe ~ 1,754.722 $ 3,2M,2ee • 27,531,tOl S 8',478 :!O:l,900 0 441 0 1,692 79,482 34,938 , .. 214 25,000 0 0 .0 0 0 0 28,2114 11.001 0 0 • • • 0 0 • 0 0 0 0 0 0 0 0 • 0 0 • 0 • Propti•ta,y FuttdTyp .. Internal Ente,prls• Sotvice 12,505,817 $ 19,1:28 0 8,219,914 S,018 17,423 0 • 338,828 0 0 0 82,£52 0 4.076,012 0 568,424 3,016,344 118,732,233 5,741,755 70,387 6'!,700 1-42,037 3,540 0 107,184 1,147,46'2 258,024.218 3,390.3:23 2,e,001,g23 $ Fiduciary FundTl'f"' TNetand Ag•nq 7,012.702 $ 0 0 0 • 713,985 0 • 0 0 0.0.r>I Genffld LOftg-tttnn Fixed MMtl 0.bt 0 $ 0 0 0 0 • 0 0 0 0 0 0 0 0 0 0 183,$26,11'38 0 0 3,571,270 0 48,e!ll!,S75 Totakl (M.,_,andum Only) i991 1990 j'll,533,007 : "'sD';1n.107• ·· ... t:;:: .';I11sse11:• ,;:;,/:: I 67:044/ : ii 228,523 :, · '"':':s,512,395:. ·.·.·:· ::~1se.2.1ne:: .<\":< ,-.-._·::· :-, i 12<ti473,968 ,; '139,087· ,.::145,577 · 101.uw :-: ··'.~-. :.: . : , .. : .. }24.001;923•'• .• /3,571.270 · 3,598,0UJ 7,6(14,937 9S7,13'S 3,776,560 868,396 2'!,869 67,906 3,787,394 3,21?1!,471 64,467,573 217,322 504,141 200,681 ,.,~.-419,131,060 24,389~051 3,973,183 44,917,449 S ="" 1,831,546 ,$ 3,7S4,708 $ 27,593,152 $ 425,9:23,23"0 • 12,352,590 $ 1,12& ... 1 s 183,526,638 s 52.267,M.5 $ 121,m.••• ·s 629,1ss.1n
General ~ A¢0:olJntl and vcuch•rt pa:yable • 1.11e,1a.. s Contr-payab!t 0 Cue 10 other fund• 0 Ou• to Olf'l•t 90¥1Jmmenta 42,897 Ac::ru.d oenltf'lll obl;gation lnt.ru1 0 Other at:ef\Htd llabifitl!H 1,ffl,010 Curr•ot portion of o•n•ralobHgt.tfoft bon4• .Ind ccntniction obligation payabfe: 0 Pay.1.bJt from rnttleltd UH?•! -•mpayaor. Accrued lni.,nt 0 -.J Accrued lnsuran" daiml 0 Aeffm.1• bonde payablt (Q(.lmmt portion) Cu1tC11Mr depoeltt 0 Ou• to othtt tunde • 0.1ettftd comp,ncatlon 0 Det.rred ,_,nun 217,817 Advance9 ffom o1her 1uncM 0 AdwanON from o1hef ag,neiew 0 Acotued l"au,anoe: cl.al""' 0 Nat,n and .... pay&t!st 0 C'-oMlNCtlon IDbligation pa:yabt. 0 General obllgalion bonda (net Qf cunenl portion) 0 Fli&vonv. bondl payabMI 0 Accrued va.c.alion and sick: i.1ve 0 Arbitrage rebai. flabillty Tota.I liabilities $ 2,941,$08 $ (CO"tinued) Se• aocompanying not .. IO financial 1tatem•nt1 CITY OF LUBBOCK, TEXAS COMBINED BALANCE SHEET -ALL FUND lYPES AND ACCOUNT GROUPS September 30, 1991 With Comparative Totals for September 30, 1990 Gowmmtinial Fuftd TypH llpoolal Dobt Capital -·· Service Prcjoota M,3ee s 4,000 $ 215.21& s D 0 1,<145,571 0 0 25,000 0 0 0 0 0 0 17,394 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 171,788 179,'38 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 247,566 $ 183,438 $ 1,686,795 $ Proprietary Fund Types lntemtJ Entetpri,e s. .. .,. •.582.0"9 S 30e:,849 s 1,048,642 0 2,229,214 1,114,000 0 1,343,490 624.~ ll<l,6118 S,411,71e 0 675,!Ml) :m,110 1,214,01! 1,829,084 4.759,474 • 423,900 0 0 91,000 0 0 759,027 • 2,1!9,111 2,M!l,2!4 70,000 0 0 m.ooo 239,578 188,797 25,217,2!2 0 48.597,431 94,Ml,021 0 2,055,924 3"2,144 437,878 0 1ga,447 .437 $ 7,9e2,045 S Fiduciary FundTypaa Truat and Ag•nev 0 a,!!O 0 6,290,8:l(l 0 375,000 0 $ 0 0 0 0 • 0 0 • 0 Gent1aJ Long-term Debt 1991 • ,n;f~fs D .~11> 0 ''.ii,,3,7,!0.MZ" o •zstii,:, o ){S::'· .. iM3::..i.i.··· 0 ""''i''ll;:roo.004' 5,411,715 0 i:f:'154;0&1 ,;;;,.-,ow· o {?: :~::t;~i>u?; 0 '>:'''.t;71!9,A7,&'i 0 423,990 0 .;:; 911000 0 { :il.29!1.830 O .. , i1,32!!.~ 0 :-_6;512,39$ 0 70,000 m,oeo· 2,879,11211 . i 3,308,295' 0 _25,217.292 '4l,41•.u11 , t tl~on.341 a ·::.:~•at62t · 6.682,237 ,' $,Oil0,005 ~.771 "88,M~ &,267,Ma 2,!45,127 3,645,680 93,402 -.SH 1,790,049 1,114,1531 1,440.77'3 t,014,528 3,476,598 447,936 130,000 5,390,137 ~7.-3,787,394 70,COO N0,5?2 3,4<7,306 25,887,465 75,162,397 52,844,830 8,601,524 6",700
~ ~
II ~ ~ LUBBOCK TEXAS
8
Fund Equity and Omer Crad 11• Contrlbulod c:apltol lnv .. tnwnt In general fix.d unte , Rwta.!ned •amlngt! Re114uwu:ffof Claf)ital ptofitcta Rlntwn:i kw p«man•nt capita.I rnalntonanr::. AoelWd for 1t)'lttm !mJ'°"9ment. RMarved for feN «tabitlzatton Ae111HV9d for economic dewtopment AefffVed pH bond lnd.tnM'H RHer.r1d kit ult lMUr&nee -hullh Aoeerved tor te!f lnsutC'!<:4 ... other than heallh Re11uved fo, 14,Utng Unf'fl•J'Y$d Furid balanen: Rffetved ior Inventory fwc,;en,N fot pt•paJd lt•ms ReHrnd fOf opera1ing leant RIIHNtd fo, advanc.• t0 other fund• RflHl'\'&d 1ot debt Mt"Ylce P.Herved for ,capital p,ojectl UnrH..-ved-dealgnaled for 1ubHquen1 yeat1' •wpendltutee UtueHl'\'ed Total r.i.lntd .arning&/ iund balance• Totai fund equity and othtr c;,.dlta Tota.I liabUlU•• and 1und 1oqulty and otherertdit1: s 0 S 0 0 0 150 134,970 0 1,436,383 0 19M04 0 $.078,<>03 9,648,110 9,848,110 $ 12,190,016 S CITY OF LUBBOCK, TeXAS COMBINED BALANCE SHEET -ALL FUND TYPES AND ACCOUNT GROUPS September 30. 1991 With Comparative Totals for 8eptember 30, 1990 Proprietaty Fvnd Tyr:i•• Fiduciary fund Typ• Account G,oupa G•n1t.al Internal -General l,ong-tlN'I'\ 0 $ 0 0 • 0 0 0 0 0 0 • 0 500,000 0 0 100,000 1,589,MO 1,Se:9.980 1,637,546 $ 0 • 0 0 0 0 3,671,270 0 :),571,270 0 * • 0 0 0 0 0 0 0. • 25,907,357 25,007,357 2U07,357 EnterprlH 79,Me,374 t,729.581 8,995,190 9,977,331 7:17,503 A,T.16,909 0 0 S,822,81'!1 0 0 • 117,487,708 Zl9,475.793 396,510 0 0 1,662.46' 0 • 1,276,11$ 4,370,544 3,754',7oe S V,593,152 $ •2S,SZ!,230 $ 12.352,590 s 0 S • 0 0 • 0 D 0 • 0 • 0 0 293,063 2113.083 293,063 Fixed Mntw Debt 0 S 183,528,638 0 0 0 • 0 • • 0 183,528,63$ 1991 '1990 0 $. iU,082,510 S o is3,=838 :)/::::,·_-·_:-.·_::_<'.i·i(:: '· •c'-7 .. 58",374, 0 :·c:•<::i1'o:~~;Q,l,t. .• • 8,896,190•: ::::?•:> v.an,33, · : ,;;ft::: ___ ···,·., ·.-":::: 0 ..•. 1,7!.0,7"li; D 3,-0 3,374,954 .• ·1:so:: 0 134,970' 0 · Sll0,000 "i:\:: 1,43$.3&3,· :. 3,S71,271l .• 0 2'J,205,1lll1' &99,11&:· 9,461,870 •··:59.973.I; • \u.se2,1~i 112.1441143 177,016,143 8,995.~50 4,964,:ziS 4,993,058 525,310 4,117,419 1,306,459 2,034,7Zl 2511,412 "5,389,651 •1.zee S<)O,OQD 1,461,33~ :),973. 183 20,795,'.ICO 933,1.48 7,929,473 136,an,m 426,036,084 1,ne.ee1 s 1-e3,s2e.638 $ S2,2e.1,34s s ·. 121.m.414 t 629,155,173
CITY OF LUBBOCK, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES --All GOVERNMENTAL FUND lYPES l'.ND EXPENDl'.BLE TRUST FUNDS
Rev•nuea:
Tue, and •pee!td MHeementt
tl<:MeH and p•rmlta
lntergoYarnmental
Chargaa for corvlees
FfnH and forfeits
Contrlbulkln1
Ml1~11aneDUe
T oral revenue&
ExpendituN'e:
C1.ment
Qemetal ;ov.rnmenl
F"lnanc::1:U HrvlcH
Manage mint HN1:H
Dfiv•lopment Hrvlces
Publlc uf•ty and Ml'Ylce&
Nt;1n-dep11tm1nt.i
Capital outlay
Debt orvlce:
Ptlnelpaf tetlremen1
lntereet eJ,d flM:al chargff
CofltC'Uont
Total expendhurH
ExtHI (deficiency) of ,.,,,enues
over expenditures
Other fifl.anclng 1our0Eis (usH):
L•tlH pro¢Hdl
Operating transfers in
Oper&ting tranaler1 (out)
Totaf othor llnanelng
aource• {uua)
Exeeca (dafleieney) of rav.nun
and other financing ,ourcaa
over 1xp1ndl1uru end oth.,.
UHS
Residual •qufty tran1for out
F\lnd balam:•• at end of ynr
Year Ended September 30, 1991
With Comparative Totals for Year Ended September 30, 1990
Capital
Project,
FldueMlry ,
f\.lnd Type
Expendable
Tn,•t
To1al1
(Momor.:m.dum Onl~)
1991 1990
$ 36,2n,20G s ,,e5s,234 $ 12,11i1s.11a $ o s o s 1;,0,021,e:11 s so,eoe,530
768,924 0 0 0 768,824 710,97P
1,227,449 0 0 -0 5,682,393 .. :-:: l,V<l~,Mt_.. 5,8()1, 153
2,oa1.•ss o o o 2;0,teif· 2,2,3,•u
2,a11,0el$ o o ~:~,;~·:, .. _:-. 2,•39,,11
0 0 0 \29,350 ··.· ;::-·-~;tl,1!5o 580 •.&12,16$ 625,2H 607,273 5,087,091 271,499 ti,15):l,30i 5,343,715
4e,11e.104 2,380.,ao 1~i.•02,4s, a,21s.u1 &,vs:,,ae2 •::::-,c;1ta;tt1·.: e1,004,837
2,412,$46
1,910,799
2,1579,1$10
8,27,4,381$
42,247,744
29,632
0
0
0
SS,456,196
(8,878,•92)
0
13,890,216
{4,842,418)
9,247,738
(84,212)
2,033,181
0
0
0 •
2,183,086
• 4,,461
(l!D,1&3)
(84,722)
132,7!)1
1,elt3.sso
{236,301)
3,847,'295
3,252,888
&B,019
7,188,040
8,218,411
0
0
(6,618,324)
(8,811,324)
3,973, 18:)
0 •
7,558,170
7,SSS,170
858.271
0
4,812,392
(151,508)
4,881,384
6,319,6-&5
20,587,702'
I .,141, 110 I 1,5111,080 $ S,171,11'() I 2l,007,U7 I
::•:-~l17~.11a::.
o :·,t.214~18~
O ~.l,247,744:
0 2$,~2
142,249 7~830,304
6,822,696
31,197
· 3,847,295
3,252,B66
86,079
18,2as. 1e1·
(t,f>SS,190)
0
252,170 18,959,739
(22,943) .· (H,624,436)
229,227
260,424
32,639 36,630,.180
(3oo.si3)
8,:n3,70-4
1,$16,£69
2,S-00,230
.S,831,381
39,968,470
285, ,cs
6,302,936
3,95!;952
3,440,664
1,4,317
73,412,433
(6,407,596)
285,108
17,i77,S2Q:
(11,327,100)
6,115,S.28
(291,766)
~5,944,917
(22,969)
Seo a.otiompanying notet 10 flnanc!al tlalemtsnl•
10
R•venuet: Taxo,
Ucon•• and pormllt
lnttrgowrn,,,.ntal
Charg .. for ltlVICH
FinH and forlolto
L!i11e1llantou1
Total revenues
Expenditures:
Current:
General govemmenl
Financial services
Management services
Oevolopmenl services
Public safely and oervicea
Non-departmental
Total expenditures
Excess (deficioncy) of
revenue over expenditures
Other financing sources (uoe s):
Operating transfers in
Operating trantlBrs (out)
Total other linanclno
80Urcas (uses)
Exe••• (deficiency) of revenue
and other sources over
8Xpendilurna and other usu
Fund balance at beginning of year
Residual equity transfer oLII
Fund balance at end of year
CITY OF LUBBOCK, TEXAS •
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES --BUOGET (GAAP BASIS) AND ACTUAL
GENERAL AND SPECIAL REVENUE FUND TYPES
Y!!ar Ended September 30, 1991
Genoral Fund Special Revenue Fund Tvpot
Variance.~ Variance-
favorable favorable
Budg•t Actu1l (unl1Vorabi<o) Budg•t Antu11 (unfavorable)
• ;e,211,20~ $ 36,100,863 $. $ 176,542 $ 1,585,006 $ $ (3)
6117,653 · ,. 1ee.112• 81.271 0 0 1,274,051 /J,%27,441 (4MO2) 0 0 2,093,797 us1;1155 (11,842) 0 0
2,433,000 I '·•·• •l,37&,918 (54,014) 0 0 3,435,003 • T 4;042, 1ae .· 607,182 70,348 (3,530)
45,024,187 Ld ~li.ne,71),c.••• 752,537 1,655,354 (3,533)
2.392,004 (20,841) 1,690,592 59,030
1,905.487 (5,312) 0 0
2,623,904 (55,706) 0 0
6,496,441 221.575 0 0
42,964,152 716,408 0 0
0 (29,532) 0 0
56,281,111!8 826,792 1,690,592 1,631,562 59,030
(10,257,821) 1,579,329 {35.238) 20,259 55,497
14,240,785 (350,569) 0 0
(3,479.744) (1. 162,7::14) 0 (89,183)
10,761,041 (1,513,303) 0 (89,183)
503,220 eG,O26 (35,238) (33,686)
8,343,078 0 317,366 0
(80,540) k1t{c~,tH1: (3,672) 0 (236,301)
$ ll,785,75e i ra•aJio ., 112,364 s 212,1H • 12. 1(1 $ 12eua1J
See accompanying notes to financial statements
I I
CITY OF LUBBOCK, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENSES ANO CHANGES IN
FUND EQUITY/RETAINED EARNINGS-All PROPRIETARY FUND TYPES
Year En<lod S<!ptember 30, 11191
Wllh Comparative Tolal• for Year Ended Soplomber 30, 1990
Operating rovonuea:
Chargoa for •ervice
New taps and reconnect&
Elfluenl water ulos
Commodity sales
Landing foes
Parking
Groenfee• and memborllhlpa
Pro shop eales
Rontal•
Conce"&sions
Administrative charges
Total operating revenues
Oporatino expanses:
Personal earvices
Conlractual torvic88
Insurance
Supplies
Malarial•
Maintenanee
Uncollectiblo account•
Purchase of fuel end power
Collection expanse
Other oorvlces and charge•
Depreciation
Total operating expenses
Oporatlng iru:ome Qoos)
Nonoporatlng revenue• (expense•):
lneuranco refunds
Interest
Disposition of proportios
Junk ula&
Mis<:ol!aneou,
lnteroot and fiscal charges
Cash grants and relmburaaments
Total nonoperating revonues
(expenses)
Income (loss) before
operating transfera
Transfers:
Opsrat!nq transfer• in
Operating transfers (oul)
Total transfers in (out)
Net Income (loss)
Depraclatlon on fixed a11et1 acquired
by contributions
Retained earning• at beginning ol year
Retained earnings at and of year
Contributions at beginning of year
Capital cont,lbutions
Deprneialion on capital contributions
Contribution• at end of year
Total equity at end of y,,ar
Seo accompanying notes to financial statemenl•
$
$
Proprletery Fund Type•
Total•
(Momo.-andum Only)
Enterprl&<1
88,462,751
244,157
594,158
813,145
815.719
1,233,432
451,420
{13,1134
2,388,085
157,513
0
94,832.314
17,591,022
0
0
2,895,502
0
4,848,407
298.234
24,986,963
309,160
10.680,967
8,036,010
70,436,265
24,386,049
0
8,061,825
51,425
0
534,915
(8,811,129)
1,571,430
408,261!
24,804,315
7,212,666
(14,751,287)
(7,538,621)
17,265,694
1199,191
89,622,823
117,487,708
109,554,537
3,032,739
(599,191)
111.988,085
$
229,475,793 S
12
Internal
Service 1991
111,989,329 $ : i •108.432,080 · $ o .. ·• 244,157}
0 594,158
0 : 813.145
o .. 615,7.19
0 ·; .233,•3.2
0
0
0
0
32,872
20,002.201
3,917,084
1,029,229
8,015,492
169,345
3,078,997
879,921
0
0
0
1,491,878
1,017.724
20,389,648
(397,447)
77,979
250,711
(542,087)
45,754
121,942
(8,841)
0
(54,542)
(451,989)
103.318
0
103,318
(348,871)
• ..... 309,160
.. <J2152843
io'.os3:134
90,835.913.
23,998.602
·. 77,978
8,312.336
· (490.882)
.... 45,754 :, .ese,s.st
• i1s.si.s .. s10) •• •. 1,$71;430 ••
..• ::•.•·:.•·:··•··•.·•·•1ss.1.24•··. 5 ;1:ss/;2~ •
~ :'.(/_:···'.\\',-:i ~
r;a10,ili•:
114,751.287)
(7,435,303)
1990
101,131.783
203,760
581,052
456,332
639,634
1,201,843
420,064
83,686
2,105,305
235.269
22,694
107.077,422
17,826,915
891,893
7,787,268
2,231.656
2,447,997
4,666,076
912,614
25,390,191
285,624
11,615,04$
9,205,741
83,261,023
23,816.399
55,683
5,692,093
(141,082)
56,489
776,641
(9,099,937)
1,303,895
(1,346,198)
22,470.201
a.oi1.ea1
(13,81511,407)
(5,850,720)
1e.eIa,4a1
1.m.1a: ·r,01.::!~~; 84.~~::::~
1,276,119
2,581MIII
®4,114
0
3,094,425
118..7113.827 • tOl.247.613
.•... 112,144,148' 109,699.317
"·\"· 3 537 553 .. 3,064,521;1
. ,. ·, (599'.1111): (519,695)
,116,082,510 112,144,14&
. ·••4·5•37 ·.$ -_ 213~ 4,370,544 $ •· . '.2=,Q .~ · .· --~
Cash flows from operating activitieo:
CITY OF LUBBOCK, TEXAS
COMBINED STATEMENT OF CASH FLOWS-
ALL PROPRIETARY FUND TYPES
Yearo Ended September 30, 1991
With Comparative .Total• for Year Ended September 30, 1890
Proprietary Fund Typee
Enterprise
Jnternaf
Service
Operating Income Qoss}
Adjustments to reconcile net income
$ 24,398,049 $ (397,447) $
10 oat cash from operating activities:
Depreciation
Increase In long-term payables not requiring cash flow
Other Income
Change in current &9Bals and liabilltlea:
Accounts receivable (not)
Inventory (net)
Due from other governments (net)
Prepaid expense• (net)
Accounts payable (net)
Duo to other funds (net)
Other accrued expenses (net)
Salos 111.X payable (net)
Customer deposits (net)
Doferrod revenue
Net cash provided (u!Nld) by operating aetivitiet
Cash flows from capital and ,elated financing activities:
Payment for gas resorvaa
Purchase ol p,operly, plant and equipment
Sale of property. plant and equipment
Payments on leases
Prlncipat paid on revenue bonds
Interest paid on revenue bond•
Issuance of revenue bonds
Principal paid on general obligation bond&
lntoroet paid on gonorel obligation bond•
Issuance of general obllgaUon bonds
Principal paid on long-term debt
Interest paid on long-term debt
Proceeds rrom long-ta,m debt
Payment on advanco from general fund
Receipts from building rent
Contributed capital
Nol cash ueed for capital and related financing activities
Casi> flow• from noncapital and related financing actlvltioe:
Operating transfers in from othe, funds
Operating t,an•l•r• out to other funds
Insurance refunds
Advance from other !undo
Cash grants and relmbursemani&
Nat cash p,ovided (ueed) by noncapltal and related
financing activities
Cash flows from investing activllioa:
Interest earnings: on cath and investment,
Net cash p,ovided (used) by Investing activitieo
Net increase (decrease) in pooled cash and cash equivalents
Pooled cash and cash equivalen11 at beginning of year
Pooled cash and cash equivalents at end of year $
9,030,010
998,556
534,915
435,919
(75,509)
(1,895,731)
. (88,868) ·
703,347
474,214
113,588
35,099
(23,946)
767,627
35,431,250
(3,498)
(41,011,888)
13,422,058
(113,105)
(4,057,433)
(5,675,628)
47,185,000
(3,722,953)
(3,367,612)
17,145,000
(53,756)
(17,749)
0
(25,000)
0
2,699,499
22,402,935
7,212,68ll
(14,751,287)
0
0
1,571,430
{5,967,191) ·
8,532,854
8,532,854
60,399,848
70,838.202
131,238,050 $
1,017,724
793,792
42,077
101,801
(288,788)
0
93,497
(68,682)
(470,000)
43,757
0
0
0
889,531
0
(1,666,553).
457,447
(19,219) ·
0
0
0
0
0
0
0
(8,841)
0
0
79,865
504,814 '
(652,487)
103,318
0
77,979
1
0
181,298
288.847
288,647
686,1:!89
6,7et,481 ~--· $
Tolala
(Memorandum Only)
1,792,348
·. 634;665:
·•. 4.214
157,325 ·.
.35,099
(23,946)
767,627.
36,300,781
· (3,496)
: •··•·(42:6'78,441)
'. 13,879,503
(132,324)
(4,057,433)
{~,676,1128)
., •·47;195.000
(3,722,953)
(3,367,612)
17,145,000 :.
•· ....•.. {53,756)
(26,590):
0
·.• .··.: (25,000):
·· ., .··•·•. 79;a5s. 3,204.313
:,.21,750,4411,
iu1.~,9;4
••. (14,?51;2.8!)
. <77,979}:
1
J.571.430.
' ;;:is;,;~~)
8,821,501
8,621,GOI
01,0BUlT
$
$
1990
23,813,11 I
9,205,741
722,888
717,994
2,728,788
133,786
(37,089)
(65,810)
(4,243,427)
(2,171,012)
(66,542)
(147,041)
(36,939)
0
30,554.428
(40,073)
(45,643,718)
17,742,714
(559,173}
(3,321,866)
(3,802,753)
16,584,1196
(3,915,545)
(5,330,742)
0
(588,312)
(128,911)
135,035
(25,000)
37,943
2,923,960
(25,949,443)
8,017,687
(13,868,407)
55,683
2,326,013
1,303,895
(2, 11!5, 129)
!5,~Cl7;Vit
__ l>,hU/,:IQ~
Non-cash Investing, capital and ffnanclng activities:
Ac ital lease obli a.tion of $278,961 was Incurred In October whon tho Clty o11tornd lnln A huuo, nf tutW ru111!11mn11t 11,1 tho u,,lhl Wnwlu hnut
ap • g • 1$~ 424 983 e e leeue:d to advance refund a J>OtUon o1 tho 1082 arnf lDIM oloi;hJO tuvm1uo hu1ul11 Electnc revenue bonds m the amoun1 o ,;,, , w r
Seo accompanying noleo lo financial statements.
13
C ITV OF LUBBOCK
Notes to Combined Financial Statements
September 30, 1991
I. Summary of Significant Accounting Policies •••.•••.•.•••••• 17
A. Reporting Entity ••.••••.••.•••.•••.•••.•..••..•..•..•. 17
B. Basis of Presentation -Fund Accounting •.••••••..•.•.• 20
C. Basis of Accounting ••.•.•••••.•.•.•...•••.•.•••••..••• 27
D. Budgetary Accounting .................................. 28
E. Encumbrances ••.••.•..••..•..••..•...••••..••....••.... 28
F. Assets, Liabilities and Fund Equity ................... 29
G. Risk Management .••••••..•..••..•..••..••••••...•••...• 31
H. Revenues, Expenses and Expenditures ...•.••...•....••.. 32
I. Total Memorandum Only ................................. 33
J. Reclassification ••••.••••.•.••••••.•.•••.•.•....••.•.• 34
I I. Stewardship, Comp 1 i ance and Accountability ................ 34
A. Retained Earnings/Fund Balance Deficits ••.•••.•...•••. 34
B. Budget Reconciliation ................................. 35
III. Detail Notes on all Funds and Account Groups ..•••......•.• 35
A. Cash and Investments .•..•••.•••••.•..•.•.••....••..... 35
8. Interfund Transactions •.••••••.•...••.•••••..••..•...• 37
C. Deferred Charge ..•....•.•••...•.....•..••... ·.• ....•... 37
D. Property, Pl ant and Equipment •. ; ...................... 38
E. Retirement Pl ans .•.•.•.•.•...••..•.....•.•.•..•....... 39
F. Deferred Compensation .••..........•••..•..•....•.•. : .. 52
14
Note
G.
H.
I.
J.
K.
L.
M.
N.
CITV OF LUBBOCK
Notes to Combined Financial Statements September 30, 1991
f!gg
Surface Water Supply .•......•••..•.••••••••..••...•••. 53
Other Enterprise Fund Activities •.•..••.•.•..•••..•... 55
Segment Information -Enterprise Funds .•...•...•••.•.• 55
Lease Agreements .•••..•••.•..••••...•.•••.•..••••.•..• 56
Changes in Long-Term Debt ............................. 59
Advanced Def easement .•.••.••....•.••••.••.••••.•..•... 64
Accrued Insurance Liabil1ties ..•••••.•..•.....•.•.••.. 67
Reporting Changes ••..•..••••••••.••.••••.....•..•.•..• 6 7
IV. Contingent Liabilities ••.•..•.•.••.•••••..•.•••.....•...•• 68
A. Federal Grants ...•••.•.•..•..•.••.•.•••.•.••.•...•.•.• 68
B. Litigation ..••....•.••••.••••..•..•••..•...••..••.••.. 68
V. Financial Instruments .••.••.•.•..•••..•••••••••.•.•.•••..• 68
VI. Subsequent Events ••••.•.•...•.••.••.•.••..•..•••••.•....•• 69
15
16
CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991
I. Summary of Significant Accounting Policies
The accounting policies of the City of Lubbock, Lubbock
County, Texas (City), conform to Generally Accepted
Accounting Principles (GAAP) as applicable to governments.
The Government Accounting Standards Boards (GASB) is the
acknowledged governing body for establishing governmental
accounting and financial reporting principles. The following
represent the more significant accounting and reporting
policies and practices of the Cfty.
A. Reporting Entity
For financial reporting purposes, the City of Lubbock
includes all funds, account groups, agencies, boards
and authorities over which the City Council exercises
oversight responsibil tty. Oversight responsibility,
as defined by the National Council on Governmental
Accounting (NCGA), Statement 3, Defining the
Government a 1 Reporting Ent i tv, was determined on the
City's ability to significantly influence operations,
select the governing authority, participate in fiscal
management and scope of public service. On this basis the reporting entity of the City of Lubbock includes
all City agencies, departments and units over which
the City Council has direct statutory authority and
several not directly subordinate to the City.
Those entities which have been included within the
City's financial statements and those which have been
excluded along with the criteria used in making this
determination are as follows:
Organizations included in the City1 s Comprehensive
Annual Report:
Board of City Development (BCD) -The City Council
appoints a fifteen member Board to oversee the
responsibility of economic development in Lubbock,
Texas. Operations are accounted for as a Special
Revenue Fund.
Center for Innovation (CFI) -Operated by the BCD to
offer a combination of services, support and space to facilitate a smooth start-up for new businesses. All
activity is reflected as an Enterprise Fund.
17
CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991
I. Summary of Significant Accounting Policies
A. Reporting Entity
Urban Renewal Agency of the City· of Lubbock -The
Mayor, with the consent of the City Council, is
empowered by law to appoint a nine member Board of
Commi ss i one rs to govern operations. The Agency is
funded by appropriations from the City's Community
Development Block Grant, and financial activity is
included in the Community Development Expendable Trust
Fund.
Civic Lubbock:, Inc. -The fifteen member board is
appointed by City Council with the Secretary and Treasurer from City staff. The corporate purpose is
to promote cultural and educational usage of the
Civic Center and Coliseum. Operations are accounted
for as an Enterprise Fund.
Lubbock Visitors and Convention Bureau -The Bureau is
operated by the Lubbock Chamber of Commerce to
promote the City as a convention center and
facilitate tourism. Financial activity of the Bureau
is reflected in the Special Revenue Funds of
Convention and Tourism and Convention Incentive.
Canadian River Municipal Water Authority (CRMWA) -In
1953 the Texas Legislature established a Conservation
and Reclamation District to construct a dam, water
reservoir and aqueduct system for the purpose of
supplying surface water to surrounding cities.
Financial activity related to tangible water rights
and associated debt are found in the Water Utilities
Enterprise Fund.
Brazos River Authority (BRA) -In 1989 the City
entered into an agreement to construct and operate a
dam and reservoir system on the South Fork of the
Double Mountain Fork of the Brazos River to provide a
long-term surface water supply for Lubbock. The. City
has an unconditional obligation for debt service.
Operations are accounted for in the Water Utilities
Enterprise Fund.
Citibus -In 1988 the City entered into a 5 year
management agreement with McDonald Transit Associates,
Inc. to manage and operate a city owned transportation
system. All financial activity is reflected in the
Citibus Enterprise Fund.
18
CITY Of LUBBOCK
Notes to Financial Statements
September 30, 1991
I. Summary of Significant Accounting Policies
Organizations excluded from the City's Comprehensive Annual Report:
The Housing Authority of the City of Lubbock: -The
Authority's operating and capital expenditures,
including debt service, are financed entirely from
federal grants and rentals. The City has no
involvement in the determination of the Authority's
outstanding debt. The governing board is approved by
City Council.
Firemen's Relief and Retirement Fund -This fund
operates under provisions of the Firemen's Relief and
Retirement Laws of the State of Texas for purposes of
providing retirement benefits for the City's firemen.
Its affairs are governed by the Mayor's designee, the
Assistant City Manager for Financial Services, three
firefighters elected by members of the City's Fire
Department and two taxpayers elected by the Board. It
is funded by contributions from the firefighters and
matched by contributions from the City.
As provided by enabling legislation, the City's
responsibility to the Fund is limited to matching
monthly contributions made by the members. Title to
assets is vested in the fund and not in the City.
The State Firemen's Pension Commission exercises
general oversight authority over the Fund; thus the
City of Lubbock does not significantly influence
operations.
Lubbock Cultural Affairs Council -The Council is
, dedicated to the promotion and improvement of the Arts
and sponsoring the Annual Lubbock Arts Festival. One
of the Council's several funding sources is the City's
Special Revenue Arts and Related Items Fund. The
governing board is approved by the Chamber of Commerce Board of Directors. The City of Lubbock does not
exercise significant influence over management or
influence the scope of public service for the Council.
19
C ITV OF LUBBOCK
Notes to Financial Statements
September 30, 1991
I. summary of Significant Accounting Policies
B. Basis of Presentation -Fund Accounting
The accounts of the City are organized on the basis of
funds and account groups, each of which is considered
a separate accounting entity. Each fund is accounted
for with a self-balancing set of accounts recording cash and other financial resources, liabilities and
residual equities or balances. Fund accounting is
designed to demonstrate certain objectives in
accordance with regulations, restrictions or
management limitations.
The various funds are classified into three categories: governmental, proprietary and fiduciary.
Each category is composed of its associated fund
types. There are seven distinct fund types.
Governmental Fund Types
General Fund -This fund is the general operating
fund of the City. It is used to account for all
financial resources except those required to be
accounted for in another fund.
Special Revenue Funds -These funds are used to account for revenues derived from specific taxes,
governmental grants, or other revenue sources which
are designated to finance particular functions or
activities of the City. Special revenue funds
include:
Hotel Tax Reserve Fund -To account for a
portion of the hotel-motel occupancy tax
allocated specifically to the acquisition,
construction, improvement, . enlarging,
equipping, repairing, operating, and
maintenance of capital projects related to
the tourism and convention industry.
Arts and Related Items Fund -To account for a portion of the hote 1-mote l occupancy tax
allocated specifically to the promotion of
the arts.
Convention and Tourism Fund -To account for
a portion of the hote 1-mote l occupancy tax allocated specifically to the promotion of
tourism and conventions.
20
.·... CITY OF LUBBOCK
Notes to financial. Statements
September 30, 1991
I. Summary of Significant Accounting Policies
Convention Incentive Fund -To account for a
portion of the hotel-motel occupancy tax
al located specifically for the promotion of
conventions.
Special Projects for Promotion Fund -To
account for a portion or the hotel-motel
occupancy tax a 11 ocated specifically to the
support of special promotional projects and
other expenditures authorized by the City
Council •.
Criminal Investigation Fund -To account for
the allocation of revenues derived from court
ordered forfeitures of monies to criminal
investigatlons and related activities.
Lubbock Board of City Development Fund -To
account for a port ion of tax revenues to
support the work of the Board of City
Development.
Tax Increment Fund To account for
incremental tax funds dedicated to the
development of a specified central district.
Debt Service Fund
The fund accounts for the accumulation of financial
resources for the payment of interest and principal
on the general long-term debt of the City, other
than debt service payments made by enterprise
funds. Ad valorem taxes, interest earned on the
investments of the Debt Service Fund and
Hotel/Motel Tax Revenues are. used for the payment
of principal, interest. and commissions to fiscal
agents on the City's general obligation bonds,
which are recorded in the General Long-term Debt
Account Group.
Capital Project Funds
The Capital Projects Funds account for all capital
improvements, except for those accounted for in
proprietary funds, which are financed by the City's
general obligation bond issues, certain Si;lles
taxes, certain Federal grants and other specific receipts. These funds include:
21
CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991
I. Summary of Significant Accounting Policies
B. Basis of Presentation -Fund Accounting
Capital Project Funds
Fire Station Buildings Fund -To account for the
financing and construction of fire station
buildings including acquisition of land.
Park Improvements Fund -To account for the
financing and construction of park improvements.
Canyon Lakes Project Fund -To account for the
financing and improvements to the Canyon Lakes
Project. ·
Street Improvements Fund -To account for the
financing and construction of streets and alleys
financed primarily by bond issues and property
owner participation.
Permanent Street Maintenance Fund -To account
for the financing and reconstruction of public
streets, thoroughfares and public ways.
· Storm Sewer and Drainage Fund -To account for
the financing and construction of storm sewer
and drainage improvement.
General Permanent Capital Projects Fund -To
account for the financing and expenditures
related to the purchase and/or construction of
municipal buildings and equipment,
General Permanent Capital Maintenance Fund -To
account for the maintenance, repair or
replacement of major components of all public
buildings and public facilities owned by the
City.
Proprietary Fund Types
Enterprise Funds
The Enterprise Funds are used to account for the
operations of the City whlch are financed and
operated in a manner similar to private business
enterprises, where the intent is to provide goods
or services to the general public on a continuing
basis, the cost of which is to be recovered in
whole or part through user charges. These funds
include:
22
CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991
I. Sunnnary of Significant Accounting Policies
Electric Fund -Established to account for the
City's electric utility, Lubbock Power & Light.
Water Fund -A fund established to account for
the operations of the water system of the City.
Sewer Fund -Established to account for the
City's waste water utility.
Solid Waste Fund -A fund created to account for
a system of collection, transportation and
disposal of solid waste.
Airport Fund Established to account for
Lubbock International Airport activities and
facilities.
Golf Course Fund -Established to account for
operations and maintenance of the City's
Meadowbrook 36 hole golf course.
Civic Lubbock, Inc. -Established to account for
the promotion of the cultural and educational
use of the Civic Center/Coliseum facility.
Citibus Fund - A fund established to account for
public transportation systems and facilities.
Center for Innovation -Established to account
for the support services offered to new
businesses. ·
Internal Service Fund
The Internal Service Fund is used to account for
the financing of goods and services provided by one
department or agency to other departments or
agencies of the City, or to other governments, on a
user charge basis. This fund is comprised of
several operations, as follows:
Garage Operations -Established to account for the vehicle service operations.
Warehouse Operations -Established to account
for the central warehouse operations.
23
CITY OF LUBBOCK
Notes to Financial Statements September 30, 1991
I. Summary of Significant Accounting Policies
B. Basis of Presentation -Fund Accounting
Internal Service Fund
Print Shop and Office Stores -Established to
account for the printing services and central
office supply provided to City departments.
Radio Shop Operations -Established to account
for the mobile telephone and radio shop
operations.
Employees Lunchroom Operations -Established to
account for the two lunchroom facilities
provided for employees.
Self Insurance Operations Established to
account for the self insurance general
liability, health claims and worker's
compensation liability.
Management Information Services -Established to
account for the data processing services
provided to the City departments and other
governmental agencies.
Leasing Operations -Established to account for
various leases within the City.
Building Services -Established to account for
all City building services.
Communication Services -Established to account
for communication services provided to City
departments.
Fiduciary Fund Types
Transactions related to assets held by the City in
a trustee capacity or as an agent for individuals,
private organizations, other governments and other funds, are accounted for in fiduciary fund types.
Fiduciary fund types are comprised of:
24
CHY OF LUBBOCK
Notes ·to'Financial Statements
September 30, 1991
I. Summary of Significant Accounting Policies
Expendable Trust Funds·
These funds account for assets received and expended by the City as trustee in essentially the
same manner · as government funds. The funds
include: ·
Community Development Fund -To account for the
receipt and 'disbursement of Community
Development Block Grant funds from the United
States Department of Housing & Urban
Development.
Community Services Fund -To account for the
receipt and disbursement of funds received from
the Texas Department of Human Resources, Texas
Department of Community Affairs and United
States Department of Energy.
library Fund -To account for the receipt and
disbursement of . funds received· from the Texas
State Library and Archives Commission and United
States Department of Education.
Health Services Fund -To account for the
receipt and disbursement of funds received from
the Texas Department of Health and United States
Department of Health and Human Services.
Police Fund -To account for the receipt and
disbursement of funds received from the State
Department of Highways and Public
Transportation, the Office of the Governor,
Criminal Justice Division and United States
Department of Justice.
Other Grant Funds -To account for the receipt
and disbursement of funds received from the
Texas State Department of Highways, Texas
Historical Commission, United States Department
of Transportation, United States Department of
the Interior, Texas Department of Human Services and South Plains Association of Governments
(SPAG).
25
CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991
I. Summary of Significant Accounting Policies
B. Basis of Presentation -Fund Accounting
Agency Funds
These funds are used.to account for assets held by
the City as a custodial trustee and do not involve
measurement of results of operations.
Living Memorial Fund -To account for assets
held by the City as an agent for individuals and
private organizations.
Deferred Compensation Fund -To account for
assets held by the City pursuant to an employees
deferred compensation plan.
Account Groups
General Fixed Assets Account Group
This account group represents a summary of the
fixed assets of the City, other than those fixed
assets reported in the Proprietary Funds. Capital
expenditures of the Capita 1 Projects Fund are the
primary source from which the detailed records of
the general fixed assets account group are
developed. Capital expenditures are carried in
this account group as construction work in progress
until the projects are completed and are then
capitalized by function and classification.
Infrastructure fixed assets such as streets,
highways, bridges, sidewalks, street lighting,
traffic poles and signals, and storm sewers, are
reported in the Schedule of General Fixed Assets.
General Fixed Assets are not depreciated and are
recorded at historical cost at the time of
acquisition. Donated assets are recorded at their
fair market value on the date donated. General
Fixed Assets in the amount of $1,610,654 were
removed as a result of physical inventories taken
during the year.
In 1991 the City changed its capitalization pol icy
to capitalize assets valued at $1,000 or more with
expected useful lives of three years or more.
General Fixed Assets in the amount of $2,964,924
were removed as a result of this change in the
City's policy.
26
CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991
I. Summary of Significant Accounting Policies
General Long-Term Debt Account Group
The General long-term debt · group of accounts is
used to account for the City's liability for
general long-term debt presently consisting of
general obligation bonds, long-term notes payable,
long-term leases, and obligations for employee
vacation, sick-leave benefits, insurance claims and
arbitrage liability, other than those reported in
the Proprietary Funds. ·
C. Basis of Accounting
The modified accrual basis of accounting and the
flow of current financial resources is followed for
the governmental fund types, special revenue funds,
debt service funds, capital project funds, and
expendable trust funds. Under this basis of
accounting, .expenditures, other than interest on
long-term debt in the Debt Service Fund which is
recorded when due, are recorded when the liability
is incurred: Revenues are recorded when received
in cash unless susceptible to accrual. Revenues
under the modified accrual basis must be both
measurable and available to finance current year
appropriations. Revenues considered to be
susceptible to accrual under the modified accrual
basis are property and sales taxes., certain grant
revenue and investment income. The accrual basis
of accounting and the flow of economic resources
is followed in the enterprise funds and internal
service funds. Under this method of accounting,
revenues are recognized when earned and expenses
are recorded when a liability is incurred.
Governmental fund types and expendable trust funds
are accounted for using a · current financial
resources measurement focus. Under the current
financial resources measurement focus only current
assets and current liabilities are included on the
balance sheet. Net current assets or fund balance
is considered · a measure of available spendable
resources. The fl ow of fi nanci a 1 resources
measurement focus is concerned primarily with the
measure of interperiod equity • whether current·
year. revenues were sufficient to pay for current-
year services.
27
CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991
I. Summary of Significant Accounting Policies
C. Basis of Accounting
Enterprise funds and internal service funds are
accounted for using an economic resource
measurement focus. All assets and liabilities
including fixed assets and long term debt are
included on the balance sheet. Fund equity is
segregated into its contributed capital and
retained earnings components. Proprietary fund
type operating statements present increases
(revenues) and decreases (expenses) in net total
assets.
D. Budgetary Accounting
Annually, the City Manager submits to City Council
a proposed operating budget for the upcoming fiscal
year. A budget is prepared for the General Fund,
Convention and Tourism Special Revenue Fund, and
the Lubbock Board of City Development Special
Revenue Fund. Appropriations for budgeted Funds
lapse at year end. Public hearings are conducted
to obtain taxpayer comments and the budget is
legally enacted through passage of an ordinance by
City Council.
The City Manager is authorized to transfer budgeted
amounts between departments and funds.
Expenditures may not legally exceed budgeted
appropriations at the fund level.
Budgeted amounts shown are from the amended budget,
dated August 22, 1991. The original budget was
adopted on August 23, 1990. During the year,
supplementary appropriations· totaled 1.3% of the
original budget.
E. Encumbrances
At the end of the year, encumbrances for which
goods and/or services have not been received are
cancelled. At the beginning of the next year,
prior year encumbrances and related appropriations
are re-established through a budget amendment. Re-
established encumbrances at September 30, 1991 were
$720,562.
28
CITY. OF LUBBOCK
Notes to Financial Statements
September 30, 1991
I. Su11111ary of Significant Accounting Policies
F. Assets, Liabilities and Fund Equity
Equity in Pooled Cash and Investments
A pooled cash concept ts used in maintaining the cash and investment accounts in the accounting
records. Under thi~ method~.cash is pooled for
investment purposes arid each fund has an equity
in the pooled amount and earnings therefrom.
The City's policy is to hold investments until
maturity unless a gain can be realized from
disposition.
Property Taxes
Property taxes are assessed and liens attach on
valuations as of January l, levied on October I of each year, and become delinquent February I
of the following year.
Uncollected taxes, net of the estimated
uncollectible amount, are recorded as
receivables in the General, Special Revenue and
Debt Service Funds. Deferred revenue is
recorded in an amount equal to net de l i nquent
taxes receivable, less taxes collected within 60
days after the end of the fiscal year.
Enterprise Fund Receivables
Within the Electric, Water, Sewer and Solid
Waste Enterprise. Funds, an amount has been
recorded for services rendered but not billed as
of the close of the fiscal year. Amounts billed
are reflected as receivables net of an allowance
for uncollectibles.
Inventories Inventories in the Governmental and Proprietary
Fund Types consist of expendable supplies held
for consumption. Invent9ries are valued at cost
using the average cost. method of valuation.
Both Governmental and Proprietary Fund Types use the consumption method of accounting, i.e.,
inventory. is expensed when used rather than when
purchased. lnventories recorded in the
Governmental Fund Types are offset by a fund
balance reserve which indicates they do not
represent "available spendable resources" even
though they are a component of net current
assets.
29
CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991 ·
I. Summary of Significant Accounting Policies
F. Assets, Liabilities and Fund Equity
Prepaid Expenses
Prepaid expenses in the Special Revenue Funds are
accounted for under the consumption method.
Restricted Assets
Certain enterprise fund assets are restricted for
construction which is funded through 1 ong-term
debt and, therefore, retained earnings have not
been reserved for these amounts. The excess of
assets over certain liabilities restricted for the
payment of debt service are included as restricted
retained earnings.
Fixed Assets and Depreciation
Property, plant and equipment of the Proprietary
Funds are stated at cost or estimated market value
for donated assets. Depreciation is computed
using the straight-line method over the estimated
useful lives as follows:
Improvements
Buildings
Equipment
10-50 yrs
15-50 yrs
3-15 yrs
Interest Capitalization
The City capitalizes interest cost in its
Enterprise Funds on bonds use.d for fixed asset
construction, net of interest income earned on the
temporary investment of the tax exempt bond
proceeds. Interest costs incurred during the year
were $12,862,170 of which $40,488 has been
capitalized.
Advance to Other Funds
Amounts owed to one fund by another which are not
due within one year are recorded as advances to
othe.r funds. These are equally offset by a fund
balance reserve amount which indicates they do not
constitute available spendable resources.
Liability for Incurred Claims The liability for incurred claims represents
estimates for medical and dental cl aims incurred
as of September 30, 1991. Some of these claims
were reported at September 30, 1991 and others may
not be reported unt i1 a 1 ater date. This amount
is actuarially determined by the City's
independent insurance administrator.
30
CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991
I. Summary of Significant Accounting Policies
G. Risk Management
The City's self insured Worker's Compensation program is
on a cash flow basis, which means that the service
contractor processes, adjusts and pays cl aims from a
deposit provided by the City. The City accounts for the Worker's Compensation program in the Insurance Fund (an
Internal Service Fund) by charging premiums based upon
losses, administrative fees and reserve requirements.
The Fund establishes claims liabilities based on
estimates of the ultimate cost of claims (including
future claim adjustment expenses) that have been
reported but not settled, and of claims that have been
incurred but not reported. The length of time for which
such costs must be estimated varies depending on the
coverage involved. Estimated amounts of salvage and
subrogation and reinsurance recoverable on unpaid claims
are deducted from the liability for unpaid claims.
Because actual claims costs depend on such complex
factors as inflation, changes in doctrines of legal liability, and damage awards, the process used in
computing claims liabilities does not necessarily result
in an exact amount, particularly for coverages such as
general liability. Claims liabilities are recomputed
periodically using a variety of actuarial and
statistical techniques to produce current estimates that
reflect recent settlements, claim frequency, and other
economic and social factors. Adjustments to claims
liabilities are charged or credited to expense in the
periods in which they are made.
Additionally, Property and Boiler Coverage is accounted
for in the Insurance Fund. The property insurance
policy was purchased from an outside insurance carrier.
The policy has a $250,000 deductible per occurrence and
the boil er coverage insurance deductible is $2,500 to
$100,000 dependent upon the unit. Premiums are charged
to funds based upon policy premiums and reserve
payments.
Other small insurance policies, such as surety bond
coverage and mi see l laneous fl caters, are accounted for
in the Insurance Fund. Funds are charged expenditures
based on premium amounts and administrative charges.
Fund Balance of the Insurance Fund is reserved for
payment of catastrophic losses. The City has had no
significant reductions in insurance coverage during the
year. Settlements in the current year and preceding two
years have not exceeded insurance coverage.
31
CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991
I. Summary of Significant Accounting Policies
H. Revenues, Expenses and Expenditures
Sales Tax Revenue
The City has a 1% sales tax levy which is
collected by the State of Texas and remitted to
the City monthly. The tax is collected by the
vendor and required to be remitted to the State by
the 20th of the month following collection. The
tax is then paid to the City by the 10th of the
next month. A two month lag exists between
collection by the vendor and payment to the City
by the State.
Grant Revenue
Revenues from federal and state grants are
recognized when susceptible to accrual under the
modified accrual basis of accounting.
Interfund Transactions
Quasi -external transactions are accounted for as
revenues, expenditures or expenses. Transact ions
that constitute reimbursements to a fund for
expenditures/expenses initially made from it that are properly applicable to another fund, are
recorded as expenditures/expenses in the
reimbursing fund and as reductions of
expenditures/expenses in the fund that is
reimbursed.
Nonrecurring or nonroutine permanent transfers of
equity are reported as residual equity transfers.
All other interfund transactions except quasi-
external transactions, reimburse-ments and
residual equity transfers are reported as
operating transfers .
. Compensated Absences Vacation leave of 10-20 days is granted to all
regular employees dependent upon the date
employed, years of service and Civil Service
status. Accumulated vacation leave vests and the
City is obligated to make payment upon retirement
or termination.
32
C ITV OF LUBBOCK
Notes to Financial Statements
September 30, 1991
I. Summary of Significant Accounting Policies
Sick leave for employees is accrued at I 1/4
days per month with unlimited accrual status.
After 15 years of continuous full time service,
sick leave is paid on retirement or termination
at the current hourly rate for up to 90 days for
non-Civil Service personnel. Civil Service
personnel are paid for up to 90 days accrued
sick leave after I year .of employment. The
Texas Civil Service laws dictate certain
benefits and personnel policies above and beyond those policies of the City.
Liability for the accumulated vacation and sick
leave is recorded in general long term debt for
Governmental fund employees and as a noncurrent
liability for Proprietary fund employees.
Employees are not obligated to use sick leave in
the year it is ·earned and sick leave not used
will not require the use of currently available
resources.
Post Employment Benefits
Retirees of the City of Lubbock may purchase
optional health and 1 ife insurance benefits at
their own expense. Amounts to cover premiums and administrative costs with an incremental
charge for reserve funding are determined by the
City's health care administrator. Financial
activity is reported in the Health Insurance
Internal Service Fund.
The following schedule reflects participation in
the City's health care program.
Participants
Active
Retired
Cobra
Active Claims
Retired Claims
Cobra Claims
Total Claims
% of Active Payroll
Active
Retired
Cobra
33
1,817
249
8
$3,505,466
916,160
23,046
$4,444,672
7 .10%.
1.86%
.05%
CITY OF LUBBOCK Notes to Financial Statements
September 30, 1991
I. Sunmary of S1gnificant Accounting Policies
I. Total Memorandum Only
The "Total Memorandum Only" columns represent an
aggregation of the combined financial statements and
does not represent consolidated financial information.
Data in those columns do not present financial
position and results of operations, in conformity with
Generally Accepted Accounting Principles and are
presented only to facilitate financial analysis.
J. Reclassification
Certain 1990 amounts have been reclassified to conform
to 1991 presentation.
11. Stewardship. Compliance and Accountability
A. Retained Earnings/Fund Balance Deficits
The deficit of $1,553,024 in the Airport
Enterprise Fund results from the practice of not
funding depreciation. Debt service for the
airport improvements is funded by property taxes
and was never intended to be funded by airport
revenues.
The deficit in the Golf Enterprise Fund of
$516,950 is the result of placing itself in a
more competitive· position through non-capital
course equipment improvements. It is anticipated
that increased usage by the general public will
result in additional revenues.
The deficit in the Center for Innovation
Enterprise Fund of $14,656 will be eliminated by
increased rentals of office space.
No other funds of the City had deficits in either fund
balances or retained earnings.
34
CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991
II. Stewardship, Compliance and Accountability
B. Budget Reconciliation
Budgets were adopted for the Convention and Tourism
Special Revenue Fund and the Lubbock Board of City
Development Special Revenue Fund. Following is a
reconc11 iat ion of the budget and actual results for
those Special Revenue Funds that did not have legally
adopted budgets.
Excess of revenues and other
financing sources over/under
expenditures and other
·Special Revenue Funds
financing sources (Actual) $132,701
Adjustment for unbudgeted funds
Excess of revenues and other
financing sources over/under
expenditures and other
(201,625)
financing uses (Budget) $( 68,924)
=•===::;:'====
III. Detail Notes on all Funds and Account Groups
A. Cash and Investments
Cash Equivalents
Pooled cash, which includes demand deposits and
all investments, are considered to be cash and
cash equivalents.
Equity in Pooled Cash and Investments
The following is a schedule of the City's pooled
and non-pooled cash and investments at September
30, 1991 categorized by risk:
35
CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991
III. Detail Notes on All Funds and Account Groups
A. Cash and Investments
Investments (I}
U.S. Treasury and
Agency Obligations$ 84,157,826
Mortgage Backed
Securities 977,053
Repurchase
Agreements 75,000,000
$160,134,879
---==•======• Mutual Funds
Total Investments
Cash and Bank Deposits
Cash and Bank
{A)
Category
(2)
Category
(B)
(3)
(C)
Carrying
Amount
Market
Value
$ 84~157,826 $85,282,989
997,053
75,000,000
1,039,549
76,713,760
$160,134,879 $163,036,298
6,296,830 6,296,830
$166,431,709 $169,333,128
Bank
Balance
Carrying
Amount
Deposits $424,947 $12,316,882 $371,593 $ 14,340,283 $ 13,113,422
Total Cash and Bank
Deposits $14,340,283 $13,113,422
============ --==-=------
Cash and Investments are reported in the financial statement as:
Cash and Investments -Restricted
Cash and Investments -Non-Restricted
$124,473,988
55,071,143
$179,545,131
===::=••==*==
(1) Insured or registered or securities held by the entity or its agent in the
entity's name. (2) Uninsured and unregistered, with securities held by the counterparty's trust
department or agent in the entity's name.
(3) Uninsured and unregistered, with securities held by the counterparty or by
its trust department or agent but not in the entity's name. (A) Insured or collateralized with securities held by the entity or its agent
in the entity's name. (8) Collaterized with securities held by the pledging financial institution's
trust department or agent in the entity's name.
(C) Uncollateralized.
36
CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991
III. Detail Notes on all Funds and Account Groups
B. Interfund Transactions
Interfund receivables and payables at September 30, 1991 were as follows:
Interfund Interfund
Beceivables Pa'lables General Fund $5,218,711 $ 0 Special Revenue Fund:
Lubbock Board of C1ty Development
Debt Service Funds:
4,214 0
Debt Service -City Hall Expansion 25,000 0 Capital Projects Fund:
General Permanent Capital
Projects Fund 0 25,000 Enterprise Funds:
Electric Enterprise Fund 1,765,513 . 0 Water Enterprise Fund 2,310,499 0 Sewer Enterprise Fund 0 1,750,000
Solid Waste Enterprise Fund 0 1,547,600 Golf Enterprise Fund 0 791,511 Airport Enterprise Fund 0 325,000
Center for Innovation Fund 0 4,214 Internal Service Fund 0 4,153,284
Expendable Trust Funds:
Community Development Fund 0 375,000
Other Grants 0 352,328
Total i9,3231937 19,323,937
Interfund residual equity transfers for the year ended September 30, 1991
were as follows:
A residual equity transfer from the General Fund in the amount bf $64,212 is
included in additions to contributed capital of Citibus Enterprise Fund,
and a residual equity transfer from the BCD in the amount of .$236,301 is
included in addition to contributed capital of the CFI Enterprise Fund. In
addition, a residual equity transfer of $16,144 was made from the General
Fixed Assets Account Group to the CFI Enterprise Fund.
C. Deferred Charge
The deferr.ed charge of $1,147,462 in the Electric Utility Enterprise Fund
represents prepayment for· future deli very of natural gas as contracted for
by the City. In 1988 a contract was entered into for the purchase of proven
and unproven reserves, totalling 2,000,000 MMBTU at $1.56 per MMBTU. At that
date, proven reserves of 338,000 MMBTU were purchased at the rate of $1.56
per MMBTU. The remaining unproven reserves are being p'urchased as proven.
One half the above rate, or $.78 per MMBTU, is paid upon determination of
the reserves and the balance is to be paid upon de ti very. The prepayments
are to be expensed as the gas is taken until the prepaid units of gas have
been consumed. At September 30, 1991 1,023,553 MMBTU's had been delivered
and remaining proven reserves were 1,471,105 MMBTU's.
37
CIJV OF LUBBOCK
Notes to Financial Statements
September 30, 1991
III. Detail Notes on all Funds and Account Groups
D. Property, Plant and Equipment
General fixed assets of the C 1 ty for the year ended
September 30, 1991, are as follows:
Balance Balance
10-01-90 Additions Deletions 9-30-91
Land $ 8,321,099 $ 397,825 $ 107,513 $ 8,611,411
Buildings 30,719,030 1,048,924 520,670 31,247,284
Improvements
other than
buildings 105,704,458 2,302,432 853,220 107,153,670
Equipment 21,966,408 5,407,729 5,056,721 22,317,416
Construction
in progress 10,305,148 7,558,170 3,666,461 14,196,857
------------____ ,.,. ______ ------_ .... --_____ .., __ ---
Total $177,016,143 $16,715,080 $10,204,585 $183,526,638
=-======-==i==== ==:=,;====:::==== =========== ============
Construction in progress is composed of the following:
Project Expended to
Authorization September 30, 1991_ Committed
Fire Station $ 491,400 $ 483,754 $ 7,646
Park Improvements 629,794' 483,726 146,068
St~eet Improvements 26,651,246 6,912,564 19,738,682
Permanent Street
Maintenance 1,280,000 1,157,679 122,321
Storm Sewer and
Drainage 320,000 76,992 243,008
General Permanent
Capital Projects 6,716,900 2,149,292 4,567,608
General Permanent
Capital Maintenance 5,789,464 2,932,850 2,856,614
Total Life-to-Date Activity
Total Current
Vear Activity
_.., ___ .,. ____ .,._
$ 41,878,804
$17,285,923
=====::::====:=
38
-------..,. _____ -------
$14,196,857 $ 27,681,947
=======:::!!:=;:;;;:;:::
$ 7,558,170 $ 9,727,753
======::::::=;;:::::::::::=
CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991
III. Detail Notes on all Funds and Account Groups
A summary of proprietary fund type property, p 1 ant, and
equipment at September 30, 1991 follows:
Land
Buildings
Improvements
other than buildings
Equipment
Construction
in progress
Total
Less Accumulated
depreciation
Total
E. Retirement Plans
Enterprise
-----------
$ 14,559,333
32,958,427
238,948,597
28,640,379
73,434,225 _.,. _____ .., _____
388,540,961 ___ ... ___ .., ____ ..,
130,516,743
$ 258,024,218
Internal Service
----------------
$ 5,839
1,168,821
197,469
6,248,755
476,955 ------·-----8,097,839 _.,. ____ ,.. _____
4,707,516
$3,390,323
Each qualified employee is included in one of two
retirement plans in which the City of Lubbock
participates. These are the Texas Municipal
Retirement System (TMRS} and the Firemen's Relief and
Retirement Fund. The City does not maintain the
accounting records, hold the investments or administer
either fund.
Summary of significant data for each retirement pl an
follows:
39
CITY Of LUBBOCK .
Notes to Financia1 Statements September. 30, '1991
III. Detail Notes on all Funds and Account Groups
E. Retirement Plans
Texas Municipal Retirement System
Plan Description
The City provides pension benefits for all of
its. full-time employees with the exception of
firefighters through a nontraditional, joint
contributory, defined contribution plan in the
state-wide Texas Municipal Retirement System
(TMRSJ, one of over 570 administered by TMRS, an
agent multiple-employer public employee
retirement system. It is the opinion of the
TMRS management that the plans in TMRS are
substantially defined contribution plans, but
they have elected to provide additional
voluntary disclosure to help foster a better
understanding of some of the nontraditional
characteristics of the plan.
Benefits depend upon the sum of the emp 1 oyee I s
contributions to the plan, with interest, and
the city-financed monetary credits, with
interest. At the date the plan began, the City
granted monetary credits for service rendered
before the plan began of a theoretical amount
equal to two times what would have been
contributed by the employee, with interest,
prior to establishment of the plan. Monetary
· credits for service since ,the plan began are a
percent (100%, 150%, or 200%) of the employee's
accumulated contributions. In' addition, the
City can grant as often as annually another type
of monetary credit referred to as an updated
service credit which is a theoretical amount
which, when added to the employee's accumulated contributions and the monetary credits for
service since the plan began, would be the total
monetary credits and employee contributions
accumulated with interest if the current
employee contribution rate and City matching percent had always been in existence and if the
employee's salary had always been the average
effective rate. At retirement, the benefit is
calculated as· if the sum of the employees's accumulated contributions with interest and the
employer-financed monetary credits with interest
were used to purchase an annuity.
40
CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991
III. Detail Notes on all Funds and Account Groups
Members can retire at ages 60 and above with 10
or more years of service or with 25 years of
service regardless of age. The plan also
provides death and disability benefits. A member is vested after 10 years, but he must leave his
accumulated contributions in the plan. If a
member withdraws his own money, he is not
entitled to the employer-financed monetary
credits, even if he was vested. The plan
· provisions are adopted by the governing body of
the City, within the options available in the
state statutes governing TMRS and within the
actuarial constraints also in the statutes.
Contributions
The contribution rate for the employees is 6%,
and the City matching percent is currently 200%, both as adopted by the governing body of the
City. Under the state law governing TMRS, the
City contribution rate is annually determined by
the actuary .. This rate consists of the normal
cost contribution rate and the prior service
contribution rate, both of which are calculated
to be a 1 eve l percent of payro 11 from year to
year. The normal cost contribution rate
finances the currently accruing monetary
credits due to City matching percent, which are
the obligation of the City as of an employee's
retirement date, not at the time the employee's
contributions are made. The normal cost
contribution rate is the actuarially determined
percent of payroll necessary to satisfy the
obligation of the City to each employee at the
time his retirement becomes effective. The prior
service contribution rate amortizes the unfunded
actuarial liability over the remainder of the
plan's 25-year amortization period. When the
City periodically adopts updated service credits
and increases in annuities in effect, the
increased unfunded actuarial liability is to be
amortized over a new 25-year period.
41
CITY OF LUBBOCK
Notes to Financiai Statements September 30, 1991
I II. Detail Notes on all Funds and Account Groups
E. Retlrement Pl ans
Texas Municipal Retirement,System
Currently, the unfunded actuarial liability is
being amortized over the 25-year period which
began January, 1991. The unit credit actuarial
cost method is used for determining the City
contribution rate. Contributions are made
monthly by both the employees and the City.
Since the City needs to be aware of its
contribution rate in advance in order to budget
for it, there a one-year 1 ag between the
actuarial evaluation that is the basis for the
rate and the calendar year when the rate goes
into effect.
The City's total payroll in fiscal year 1991 was
$49,364,345, and the City's contributions were
based on a payroll of $37,474,683. Both the City
and the covered employees made the required
contributions, amounting to $4,242,319 {9.47% of
covered payroll for the months in calendar year
1990, 6.49% normal cost plus 2.98% to amortize
the unfunded actuarial liability, and 11.31% for
the months in calendar year 1991, 7.79% normal
cost plus 3.52% .to amortize the unfunded
actuarial liability) for the City and $2,248,481
{6%) for the employees. The City adopted
changes in the plan since the previous actuarial
valuation, which had the effect of increasing
the City's contribution rate for 1991 by 1.80%
of payroll. There were no related-party
transactions.
42
CITY OF LUBBOCK
Notes to financial Statements
September 30, 1991
III. Detail Notes on all Funds and Account Groups
Funding Status and Progress
Even though the substance of the City's plan is
not to provide a defined benefit in some form,
some additional voluntary disclosure is
appropriate due to the nontraditional nature of
the defined .contribution plan which had an
initial unfunded pension benefit obligation due
to the monetary credits granted by the City for
services rendered before the plan began and
which can have additions to the unfunded pension
benefit obligation through the periodic adoption
of increases in benefit credits and benefits.
Statement No. 5 of the Governmental Accounting
Standards Board (GASB 5) defined pension benefit
obligation as a standardized disclosure measure
of the actuarial present value of pension
benefits, adjusted for the effects of projected
salary increases, estimated to be payable in
the future as a result of employee service to
date. The measure is intended to help users
assess the funding status of public employee
pension plans, assess progress made in
accumulating sufficient assets to pay benefits
when due, and make comparisons among public
employee pension plans.
The pension benefit obligation shown below is
similar in nature to the standardized disclosure
measure required by GASB 5 for defined benefit
pl ans except that there is no need to project
salary increases since the benefit credits
earned for service to date are not dependent
upon future salaries. The calculations were
made as part of the annual actuarial valuation
as of December 31, 1990. Because of the. money-
purchase nature of the pl an, the interest rate
assumption, currently 8.5% per year, does not
have as much impact on the results as it does
for a defined benefit plan. Market value of assets is not determined for each city's plan,
but the market value of assets for TMRS as a
whole was 106.2% of book value as of December
31, 1990.
43
CITY OF, LUBBOCK
Notes to Financial Statements
September 30, 1991
III. Detail Notes on all Funds and Account Groups
E. Retirement Plans
.. Texas Municipal Retirement System
Pension Benefit Obligation
Annuitants currently receiving benefits
Terminated employees
Current employees
Accumulated employee contributions
including allocated invested earnings
Employer-financed vested
Employer-financed nonvested
Total
Net Assets Available for Benefits,
at Book Value
Unfunded Pension Benefit Obligation
$ 8,125,918
3,019,518
26,068,999
45,728,533
5,484,465
$ 88,427,433
$ 67,453,028
$ 20,974,405
The book value of assets is amortized cost for
bonds and original cost for short-term
securities and stocks. The actuarial
assumptions used to compute the City
contribution rate are the same as those used to
compute the pension benefit obligation. The
numbers above reflect the adoption of changes in
the plan since the previous actuarial valuation,
which had the effect of increasing the pension
benefit obligation by $3,373,397.
· 44
CITY OF LUBBOCK
Notes to Financial Statements
September 30, l 991
III. Detail Notes on all Funds and Account Groups
Net Assets
As of Available for
12/31 Benefits
1981 $19.865,089
1982 23,732,680
1983 27,399,977
1984 32,135,358
1985 36,379,281
1986 41,954,383
1987 47,678,645
1988 52,910,917
1989 59,340,355
1990 67,453.028
As of Employee
12/31 Contributions
1981 $1,141,949
1982 1,250,669
1983 1,352,580
1984 1,425,568
1985 1,671,036
1986 1,561,660
1987 1,587,884
1988 1,630,536
1989 1,732,448
1990 1,873,498
Texas Municipal Retirement System
Required Supplemental Disclosure
10 Year Historical Information
Analysis of Funding Progress
Unfunded
Pension Pension Annual
Unfunded
PBO as a
Benefit Percentage Benefit Covered % of Covered
Obligation Funded Obligation Payroll Payroll
$29,531,681 67.2% $ 9,666,592 $22,838,980 42.3%
37,701,629 62.9 13,968,949 25,013.380 55.9
42,652,821 64.2 15,252,844 27,051,600 56.4
47,609,765 67.5 15,474,407 28,511,360 54.3
52,393,316 69.4 16,014,035 33,420,720 47.9
58,271,284 72.0 16,316,901 31,233,200 52.2
67,617,486 70.5 19,938,841 31,757,680 62.8
68,298,980 77 .5 15,388,063 32,610,725 47.2
76,642,544 77.4 17,302,189 36,506,033 47.4
88,427,433 76.3 20,974,405 38,580,778 54.4
Texas Municipal Retirement System
Revenues by Source
Employer
Contribution
as a%
Employer Investment of Covered
Contributions Income Other Total Payrol 1
$1,703,725 $1,667,865 0 $ 4,513,539 07.5%
1,668,393 2,113,266 0 5,032,328 06.7
1,958,536 2,518,293 0 5,829,409 07.2
2,044,264 3,033,240 0 6,503,072 07.2
2,372,632 3,519,432 6,393 7,569,493 07.l
2,462,401 4,075,372 450) 8,098,983 07.9
2,475,870 4,610,402 0 8,674,156 07.8
2,704,942 5,217,750 32,496 9,585,724 08.3
2,965,951 5,819,041 0 10,517,440 08.l
3,481,188 6,545,398 219,632 12,119,716 09.0
45
CITY OF LUBBOCK
Notes to Fin.ancial Statements · September 30, 1991 . . .
III. Detail Notes on all Funds and Account Groups
E.
As of
12/31
1981
1982
1983
1984
1985
1986
1987
1988
-1989
1990
Retirement .Plans
Texas Municipal Retirement System
Expenses by Type
Transfers
Current Service
Annuity Administrative
Reserve Fund Expenses Refunds Total
$ 376,846 $ 317,695 $524,011 $1,218,552
782,258 361,185 522,942 1,666,385
1,154,481 520,686 425,616 2,100,783
807,921 552,408 .. 468,690 1,829,019
1,655,712 620,760 477,873 2,754,345
1,959,906 705,430 438,145 3,103,481
1,614,136 776,861 556,240 2,947,237
2,994,355 834,648 541,990 4,370,993
· 2,656,780 904,570 527,309 4,088,659
2,500,012 985,269 523,057
Firemen's Relief and Retirement Fund
Plan Details
4,008,338
The Board of Trustees of the Lubbock Firemen's
Relief and Retirement Fund is the administrator of a
single-employer defined benefit pension plan
maintained for members of the City of Lubbock Fire
Department under provisions of applicable law of the
State of Texas.
All firefighters in the Lubbock Fire Department are
covered by the Lubbock Firemen's Relief and
Retirement Fund. The table below summarizes the
membership of the fund at December 31, 1990:
1. Retirees and beneficiaries currently
receiving benefits and terminated
employees entitled to benefits but not yet receiving them 160
2. Current employees a. Vested 152
b. Nonvested 104
3. Total 416
46
CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991
III. Detail Notes on all Funds and Account Groups
The Lubbock Firemen's Relief and Retirement Fund
provides retirement, death, disability and withdrawal benefits.
These benefits become fully vested after 20 years of
credited service. · Employees may retire at age 50
with 20 years of service. A partially vested
benefit is provided for employees who terminate
employment with at least 10 but less than 20 years
of service. The monthly benefit at retirement,
payable in a Joint and 2/3 Spouse form of annuity,
is equal to 65. 00% of the fi na 1 48-month average
salary plus $74.00 per month for• each year of
service in excess of 20 years.
This plan of benefits is described as the "new plan"
and became effective October 23, 1989 as a result of
the December 31, 1988 valuation. Prior to October
23, 1989 the "old plan" was in effect. Under that
plan, the normal service retirement benefit was
equal to 64.5% of highest 48-month average salary
plus $66.00 per month for each year of service in
excess of 20 years.
Under this plan, Lubbock firefighters are required
to contribute 11.00% of their pay to the fund. The
City of Lubbock's contributions are based on a
formula which causes the City's contribution rate to
fluctuate from year to year, but which will average
not 1 es s than 12. 50% of payro 11 over the 27 -year
period beginning October 23, 1989. The City's rate
at September 30, 1990 was 14.89%. The benefit and
contribution provisions of this plan are authorized
by the Texas Local Firefighters Retirement Act.
47
-CITY OF LUBBOCK
Notes .to Financial Statements
September 30, 1991
III. Detail Notes on all Funds and Account Groups
E. Retirement Plans
Firemen's Relief and Retirement Fund
1. Basis of Accounting --_ The Lubbock Firemen's
Relief and Retirement Fund financial statements are
prepared using the cash basis of accounting. The
fund's fi seal year is the calendar year. Employee
_and employer contributions are recognized as
revenues in the period which they are received by
the fund.
2. Method Used to Value Investments -The Lubbock
Firemen's Relief and Retirement Fund's investments
are reported at original cost. There is no provision
for the amortization of premium or discount in the
purchase price of these assets. Investment income is
recognized as it is received. Gains and losses on
sales of assets are recognized on the transaction
dates.
FundingStatus and Progress
The amount shown below as "Pension Benefit
Obligation" is a standardized disclosure measure of
the present value of pension benefits estimated to
be payable in the future as a result of employee
service to date. These benefits have been adjusted
for the effects of projected salary increases.
The "Pension Benefit Obligation" is the actuarial
present value of credited projected benefits and is
intended to help users assess the Lubbock Firemen's
Relief and Retirement Fund's funding status on a
going-concern basis, assess progress made in
accumulating sufficient assets to pay benefits when
due, and make comparisons among public employee
retirement systems. This measure is independent of
the actuarial funding method used to perform the
actuarial valuation.
48
CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991
III. Detail Notes on all Funds and Account Groups
As a result of the adoption of the new plan, the
pension benefit obligation as of December 31, 1989
increased $1,412,516 over what it would have been
under the old plan. Significant actuarial
assumptions used include (a) a rate of return on the
investment of present and future assets equal to
8.50% compounded annually, (b) projected salary
increases of 7.00% compounded annually, attributable
to i nfl at ion, ( c) additional projected sa 1 ary
increases which average approximately 1.00% per
year, attributable to merit, promotion and longevity
and (d) no post-retirement benefit increases.
Pension Benefit Obligation
December 31, 1990
1. Retirees and beneficiaries
currently receiving benefits
and terminated employees not
yet receiving benefits
2. Current employees a. Accumulated employee
contributions
b. Employer-financed vested
c. Employer-financed nonvested
$24,094,085
6,591,675
13,655,966 1,036,658
3. Total Pension Benefit Obligation $45,378,384
4. Net assets available for benefits,
at cost (market value at 12/31/90
is $41,224,093) $34,663,471
5. Unfunded Pension Benefit
Obligation $10,714,913
Contributions Required and Contributions Hade
For the plan in effect December 31, 1990 the funding
po 1 icy of the Lubbock Fire men's Rel i ef and Retirement Fund required contributions equal to
11.00% of pay by the firefighters and contributions
which would average not less than 12.50% of pay by
the City over the 27-year period beginning October
23, 1990. For the 1990 calendar year, contributions
made were equal to 11.00% of pay by the firefighters
and 14.89% of pay by the City.
49
CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991
III. Detail Notes on all Funds and Account Groups
E. Retirement Plans
Firemen's Relief and Retirement Fund
While the contribution requirements are not
actuarially determined, state law requires that each
plan of benefits adopted by the fund must be
approved by a qua 1 i fi ed actuary. The actuary
certifies that the contribution commitment by the
· firefighters and the C1ty provides an adequate
financing arrangement. Using the entry age
actuarial cost method the plan's normal cost is
determined as a percentage of payroll.
The excess of the total contribution rate over the
normal cost rate is used to amortize the plan's
unfunded actuarial accrued liability, and the number
of years needed to amortize the plan's unfunded
actuarial accrued liability is determined using a
level percentage of payro 11 method. For the o 1 d plan in effect on December 31, 1988 the normal cost
was 18. 53% of pay and the amortization period was
approximately 20 years. For the new plan adopted in
October, 1989; the normal cost is 19.04% of pay and
the amortization perio,d is approximately 15 years
based on a December 31, 1990 valuation date.
For the 1990 calendar year total contributions of
$2,003,194 were required and paid into the fund.
Trend information gives an indication of the
progress made in accumulating sufficient assets to
pay benefits when due. During the transition period
when 10 years of the standardized measure of the
pension obligation is unavailable, the information
wil 1 be presented only for as many years as the
measure is available.
Further details concerning the financial position of
th~ Fund and the latest actuarial valuation are
available by contacting the Board of Trustees,
Firemen's Relief· and Retirement Fund, City of
Lubbock, P.O. Box 2000, Lubbock, Texas 79457.
50
C ITV OF LUBBOCK
Notes to Financial Statements
September 30, 1991
III. Detail Notes on all Funds and Account Groups
Firemen's Relief and Retirement Fund
Required Supplemental Disclosure
Historical Trend Information
Analysis of Funding Progress
Unfunded Unfunded
Net Assets Pension Pension Annual PBO as a%
As of Available Benefit Percentage Benefit Covered of Covered
12/31 Benefits* Obligation Funded Obligation Payroll Payroll
1987 $42,780,282 $47,785,715 89.5% $5,005,433 $6,524,303 76.7%
1988 28,739,352 38,112,853 75.4 9,373,501 6,770,331 138.4
1989** 32,209,973 42,013,008 76.7 9,803,035 7,338,261 133.6
1990 34,663,461 45,378,384 76.4 10,714,923 7,737,659 138.5
* At cost on December 31 of that year.
** In October, 1989 the plan was amended to increase standard retirement
benefits from 64.50% to 65.00% of average salary and to increase additional monthly seniority benefits from $66.00 to $74.00 for each year of service in
excess of 20 years. The amendment increased the pension benefit obligation
as of December 31, 1989 by $1,412,516.
As of
12/31
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
Employee
Firemen's Relief and Retirement Fund
Revenues by Source
Employer Investment
Contribution Contribution Income Other Total
$438,286 $535,157 $ 819,759$ 0 $1,793,202
511,944 553,877 1,052,505 0 2,118,326
573,611 698,565 l,2ll,627 0 2,483,803
629,811 755,922 1,839,892 0 3,225,625
690,410 836,619 2,447,204 1,891 3,976,124
720,016 889,620 3,048,840 5 4,658,481
766,468 942,620 2,778,953 2,033 4,490,074
748,051 921,523 2,723,038 35,411 4,428,023
744,736 936,880 2,897,527 0 4,579,143
807,209 1,036,997 4,008,844 7,982 5,861,032
851,143 1,152,051 3,132,162 0 5,135,356
51
Employer
Contributions
as a Percentage
of Covered
Payroll
11.1%
IO. I
11.6
11.8
12.6
13.0
13.2
12.4
13.8
14 .1
14.9
III.
CITY OF LUBBOCK
Notes to Financial Statements September 30, 1991
Detail Notes on all Funds and Account Groups
E.
F.
Retirement Plans
Firemen's Relief and Retirement Fund
Firemen's Relief and Retirement Fund
Expenses by Type
As of Administrative
12/31 Benefits Expenses Refunds Total
1980 $ 380,384 $ 34,874 $19,247 $ 434,505
1981 470,787 30,727 36,028 537,542
1982 662,019 45,233 26,657 733,909
1983 730,050 66,630 6,824 803,504
1984 945,199 90,131 34,039 1,069,369
1985 1,046,806 248,499 0 1,295,305
1986 1,301,712 470,606 49,358 1,821,676
1987 1,722,194 147,148 40,161 1,909,503
1988 2,040,693 150,934 15,081 2,206,708
1989 2,111,733 278,679 0 2,390,412
1990 2,448,809 197,937 35,122 2,681,868
Deferred Compensation
The City offers its employees a deferred compensation
plan created in accordance with Internal Revenue Code
Section 457. The plan, available to all City
employees, permits them to defer a portion of their
salary until future years. The deferred compensation
is not available to employees until termination,
retirement, death or unforeseeable emergency.
All amounts of compensation deferred under the plan,
all property and rights purchases with those amounts,
and all income attributable to those amounts,
property, or rights are (until paid or made available
to the employee or other beneficiary) solely the
property and rights of the City (without being
restricted to the provisions of benefits · under the
plan), subject only to the claims of the City's
general creditors. Participant's rights under the
plan are equal to those of general creditors ,of the City in an amount equal to the fair market value of
the deferred account for each participant.
52
CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991
III. Detail Notes on all Funds and Account Groups
In management's opinion, the City has no liability for
1 osses under the p 1 an but does have the duty of due
care that would be required of an ordinary prudent
investor. The City believes that it is unlikely that
it will use the assets to satisfy the claims of
general creditors in the future. All assets of the
plan are held by an independent administrator and
valued at market. The deferred compensation plan is included in the City's financial statements as an
agency fund. ·
G. Surface Water Supply
Canadian River Municipal Water Authority
The Canadian River Municipal Water Authority
{CRMWA) is a Conservation and Reclamation
District established by the Texas legislature to
construct a dam, water reservoir and aqueduct
system for the purpose of supplying water to
surrounding cities. The District was created in
1953 and comprises eleven cities, including the
City. The budgetary, financing and operations
of the District are governed by a Board of
Di rectors selected by the governing bodies of
each of the member cities, each city being
ent it 1 ed to one or two members dependent upon
population. At September 30, 1991 the Board was
comprised of 19 members, two of which
represented the City of Lubbock.
The City contracted with the Canadian River
Municipal Water Authority to reimburse it for a
port ion of the cost of the Canadian River Dam
and Aqueduct system in exchange for surface
water. Accordingly, such payments are made
solely out of water system revenues and are not
general obligations of the City. The City's pro
rata share of annual fixed and variable
operating and reserve assessments is recorded as
an expense of obtaining surface water.
53
CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991
III. Detail Notes on all Funds and Account Groups
G. Surface Water Supply
Canadian River Municipal Water Authority
The long term debt is owed to the U.S. Bureau of
Reclamation for the cost of construction of the facility,
which was completed in 1969. The City's allocation of
project cost was $32,905,862. During the year ended
September 30, 1991, principal payments in the amount of
$652,998 reduced principal amounts outstanding at
September 30, 1990 in the amount of $26,540,464. The
balance due to the authority on the contract at September
30, 1991 was $25,887,466, due in annual installments of
$1,351,543 including interest of 2.632% until the year
2018. The above cost for the rights are being amortized
over 85 years. The cost and debt are recorded in the
Water Enterprise Fund.
GAAP requires accounting for debt service as a reduction . in construction obligations payable and related interest
expense. However, the contract between the City and CRMWA
requires the classification of payments to the Authority
to be reflected as operating expenses of the Water Fund.
Accordingly, the adjustment required to convert GAAP
expenses to the contractual agreement results in an
adjustment to increase operating expenses for principal in
the amount of $652,998, interest in the amount of $698,545
and reduce amortization by $387,128.
Brazos River Authority -lake Alan Henry
During 1989, the City entered into an agreement with the
Brazos River Authority for the construction, maintenance
and· operation of the facilities to be known as Lake Alan
Henry. The BRA, which is authorized by the State of Texas
to provide for the conservation and development of surface
waters in the Brazos River Basin, will issue bonds for the
construction of the dam and lake facilities on the South
Fork of the Double Mountains Fork of the Brazos River.
Total costs are expected to exceed $120 million.
The agreement obligates the City to provide revenues to
the authority in amounts sufficient to cover all
maintenance and operating costs, management fees to the
authority, as well as funds sufficient to pay all capital
costs associated with construction. The City will receive
surface water for the payments to the Authority.
54
C ITV OF LUBBOCK
Notes to Financial Statements
September 30, 1991
III. Detail Notes on all Funds and Account Groups
The BRA issued $16,970,000 in bonds in 1989 and
$39,685,000 in bonds in 1991, respectively. Construction
of the dam and lake facilities began in 1989. The City is
obligated to provide sufficient funds over the next 30
years to service the debt requirement of these bonds. The
financial activity is accounted for in the Water
Enterprise Fund.
H. Other Enterprise Fund Activities
Enterprise Fund Transfers
Transfers to the General Fund from the Electric, Water and Sewer
Enterprise Funds, in the opinion of management, exceed the amount that would have been paid to the City if these funds were
private sector companies engaged in the same enterprises. In
addition to the amount transferred in excess of private sector
taxes, there is also an amount transferred to compensate the
General Fund for shared services and indirect cost.
I. Segment Information -Enterprise Funds
Operating revenute
Depreciation upenH
The City maintains nine enterprise funds which provide electric,
water, sewer, sanitation, airport, golf, cultural and education,
transportation, and new business support services. Segment
information for the year ended September 30, 1991, was as
follows:
Total
Etectrlo -· S.wtr SolldWut• Airport Dolf Civic Clltbu• C.nler lor Entarp,1 ..
Fund Fund Fund Fund Fund Fund Lubbock Fund lnnova1\oa, Fund
•~.142.111 21,821,722 1.11116,067 1,340,137 4,084,177 863,920 1,itN,!:59 1,21)9,103 148,214 94,$32,314
s1oa,.ae1 2,042.675 11311~09' 114,918 , 1,424,760 18&.21!4 ~7t7e2 139,767 38,200 9;038,010
Op•r•tln; lnecmo (tott) 12,965,099 10.ooe,osa •,:M7,ffl 575,897 (G70,0Q1) (106,357) M.&4& (2,030,$10) (227,039) 24,398,04:D
Op•r&tlni:, ffanafeN:
ln(out) (M87,!3tl) (1,76ll,01e) (572,308) (109,922) (421,.IIO) 0 400,863 19,193 (1,5311,621)
Ntt Ulcom. {!011) 1,070,102 8,543,ltlS a.,20,GS 708,223 (1,171,778) (193,954) M,880 (14$.'51) (52,158) 11,ze:s.a9,4
Cvn-.nl capltai -
cont11bu1lon• 2&:1,7&ll m,m • 1,SMtl,73fJ 0 0 333,241 252,446 3,0:12.739
Prcptrty, planl, and
•qulpm•nt
Addition• !,15&3,703. 10,4<17,950 11,871,835 2,048,227 7,611,4,~·3 278,246 ....... '!33·~· 240,813 •t,624-,087
O.t.tlone 5,6113,402 . 1,374.871 2,741,811 723,1'00 4,740.723 ,n.1,t 0 1719420 • 1&,622,MO
H•I working H.Pttal 10,"49,&el (3,228,218) (588,134) (92U63) · 166,0U (729,376) 132,163 70,000 {9,104) 5,5641,037
Allowance for do"1blful
account• 956,023 136,327 38,923 80,445 10.oes 0 0 0 • 001,603
Totaluntt 127,:121),277 193,441,844 •#,8450141 e.t!l33,8tS 411185.0&3 1,116.703 "40.957 2,428,$011 211,927 426,023,Z-lO
Banek and other Ieng-tum
lbbilitl.-e payable
from ,0p•r&1ion rennuu 40,<IGT,750 116. .. 7,"38 15,t2e,GS1 2,0:13,032 688,Sil 707,fl:IO 1,2611 70,000 0 174,£43,4$7
Total equity 77,239,007 71,323,183 33,214,22:2 6,144,834 361,942,403 203,3115 29e,406 ,,121,oss 199,619 229~475,793
55
CITY OF LUBBOCK
Notes to financial' Statements
September 30, 1991
III. Detail Notes on all Funds and Account Groups
J. Lease Agreements
The City has entered into lease agreements with
independent third parties for the purpose of acquiring
certain properties and equipment. These lease
agreements qualify as capital 1 e.ases for accounting
purposes and, therefore, have been recorded at the
present value of the future minimum lease payments as
of the date of their inception.
Capital Leases at September 30, 19Q.1 were as follows:
Maturity Interest
Dates Rate
Balance
Outstanding
Enterprise Funds 1992
1996
6;25%
7.50%
$ 3,906
233,955 1987 • Sprinkler system
1991 · Scraper
Total Enterprise Funds
Internal Service
1990 -Telephone Equipment
Total
1995 8.44%
$237,861
$188,796
$426,657
Future minimum lease payments are as follows at
September 30, 1991.
Fiscal Year Ended
September 30
1992
1993
1994 1995
1996
Total Minimum Lease Payments
Less: Interest
Pr~sent Value ~f future
Minimum Lease Payments
56
$136,065
132,067
132,067
88,616
5,574
$494,389
67,732
$426,657
====::====
C ITV OF LUBBOCK
Notes to Financial Statements
September 30, 1991
III. Detail Notes on all Funds and Account Groups,
The following is a summary of assets acquired under
the above capital leases at September 30, 1991.
Land Betterments
Equipment
Total
Less: Accumulated
Amortization
Total
$ 14,695
554,069
568,764
74,365
$ 494,399
Amortization expense on assets under capital leases is
included in depreciation expense.
The City enters into monthly leases for various items
of equipment for purposes of evaluating a future
purchase. Accordingly, at September 30, 1991 the City
had no material initial or remaining non-cancellable
leases with terms exceeding one year. Rent expenses for 1991 and 1990 were $1,451,663 and $1,209,613
respectively.
The BCD {dba Center for Innovation) is committed under
a lease for office space for the property at 2579
South Loop 289. The lease expires in September 1995,
requires monthly payments, and its continuance is
contingent upon the BCD receiving funding from the
City for the Center for Innovation. The lease becomes
a month-to-month tenancy at the end of the year in
which such funding is eliminated. Annual future lease
obligations are $115,150 for each year.
The CFI subleases space in the building occupied by
the CFI to tenants in accordance with the business
philosophy under which the CFI was created, which is
to develop an environment that provides accessibility
to a variety of business and economic services. Rental
income of CFI tenants under the one-year cancelable
subleases for the year ended September 30, 1991 totaled $124,895, of which $96,000 was attributable to
rent incurred by the General Fund.
5.7
C ITV OF LUBBOCK
Notes to Financial Statements
September 30, 1991
III. Detail Notes.on all Funds and Account Groups
J. Lease Agreements
On October I, 1990, the BCD entered into a one-year
contract with Texas Tech University to furnish office
space and pay $115,000 as a portion of the matching
funds required to be furnished by the Texas Tech
University Small Business Development Genter
("TTUSBDC") under the terms of the U.S. Small Business
Administration Notice of Award. The office space is
utilized as an "in-kind" contribution under the Notice
of Award.
During the year ended September 30, I 991, the BCD
inturred rental expense on behalf of TTUSBDC offices
of $11,798 through December 31, 1990, stemming from a
commitment to TTUSBDG to pay for office space in
another location vacated as a result of the BCD moving
into a new facility.
Civic Lubbock, Inc. leases certain space in a retail
shopping area in Lubbock, Texas for the purpose of
ticket sales and solicitation of civic and promotional
events. Payments under this 1 ease agreement are made
monthly and the lease expires in March, 1995. Annual
future lease payments are as follows:
Vear Ending September 30
1992
1993
1994
1995
$ 8,304
8,304
8,304
4,152
$ 29,064
Total rent expense for the year ended September 30,
1991 was $34,888.
Cit i bus has contracted with Goodyear Ti re and Rubber
Co. ("Goodyear") to provide tires through August 1994.
Citibus pays a flat rate per mile for the first 42,000
miles and one-half that rate for excess mileage. The
flat rate is adjusted each six months based on
Goodyear's manufacturing costs. The total amount paid
for 1991 was $42,360.
58
CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991
III. Detail Notes on all Funds and Account Groups
K. Changes in Long-Term Debt
The following is a summary of long-term debt transactions of the City for the
year ended September 30, 1991.
Debt Payable
10-01-90
New Debt
Issued
Debt Retired
Debt Payable
09-30-91
Obligation Revenue Compensated
Bonds*** Bonds Notes leases Absences Total
$79,011,942 $56,321,528 $3,034,127 $516,330 $8,601,524
24,380,000 56,029,464
(7,679,329} (12,901.897}
0 233,955 478,782
(51,695) (323,628} ---~o
$95,712.613* $99,449,095** $2,982.432 $426,657 $9.080.306
$147,485,451
81,122,201
(20,956,549)
$207,651,103
* Includes $71,139 discount on bonds sold and $53,308,836 on bonds issued to
finance enterprise funds.
** Includes $31,149 premium on bonds sold and $817,-019 discount on bonds sold.
*** Includes Certificates of Obligation.
Bonds payable at September 30, 1991 are comprised of the following individual
individual issues:
General Obligation Bonds and Certificates of Obligation:
Balance
Interest Issue Final Amount Outstanding
Rate Date Maturity Date Issued September 30, 1991 -------------___ .., ____ ----------------------·----------------~----7.90 5-15-83 2-15-03 $ 18,775,000 $ 11,375,000
7.86** 11-15-85 2-15-03 60,614,070 31,949,070
7.65 4-15-87 2-15-07 5,960,000 4,800,000
7.35 5-15-88 2-15-03 750,000 670,000
7.46 5-15-88 2-15-08 6,560,000 5,585,000
7 .63 8-15-88 2-15-07 5,000,000 4,800,000
7 .11*** 8-15-88 2-15-00 2,774,682 2,028,543
6.84 8-15-89 2-15-09 3,800,000 3,420,000
6.83 8-15-89 2-15-09 7,445,000 6,705,000
6.64 5-15-91 2-15-11 16,120,000 16,120,000
6.67 5-15-91 2-15-11 4,030,000 4,030,000
6.29 5-15-91 2-15-01 1,145,000 1,145,000
9.01 5-15-91 2-15-11 1,085,000 1,085,000
6.69 5-15-91 2-15-11 2,000,000 2,000,000
Total GO and CO Bonds U36,osa, 752* i 95,712.613
* Includes $72,901,806 issued to finance enterprise activities.
** Refunding Bonds issued to replace bonds issued 1966-1982 and 1984.
*** Refunding Bonds issued to replace Certificates of Obligation issued in
1986. Balance outstanding includes $71,139 discount on bonds sold.
59
CITY OF LUBBOCK
Notes to Financial Statements September 30, 1991
III. Detail Notes on all Funds and Account Groups
K. Changes in Long-Term Debt
Electric Revenue Bonds:
Balance
Issue Final Amount Outstanding Interest Rate Date Maturity Date Issued September 30,1991 _.,. ___ ..,..,,.. ..... ----------__ .. ________ ---------______________ .,. .. _
4.35 to 6.50 7-15-73 4-15-93 $ 6,000,000 $ 600,000 4.50 to 7.00 3-15-75 4-15-95 6,400,000 1,280,000
5.00 to 7.50 9-15-75 4-15-96 2,000,000 500,000
6.25* 4-15-76 4-15-97 4,400,000 1,351,149
8.00 to 8.15** 5-15-83 4-15-93 10,770,000 I, 120,000
8.75 to 9.10 4-15-84 4-15-94 10,000,000 1,500,000
7.00 to 10.00 4-15-87 4-15-07 7,000,000 5,600,000
7.00 to 10.00 5-15-88 4-15-08 17,000,000 14,450,000
6.25 to 9.20 5-15-91 4-15-11 7,500,000 7,500,000
5,00 to 6.50*** 7-15-91 4-15-02 4,424,976 4,424,976
5.00 to 6.60**** 7-15-91 4-15-04 4,999,981 4,999,989
Total Electric Revenue i 80,494,957 143,326,114
* These bonds were issued at a premium to yield an effective
rate of 5.58%. Balance outstanding includes $31,149
premium on bonds sold.
** Refunding bonds issued to replace bonds issued August 15, 1981.
*** Refunding bonds issued for a partial refunding of the bonds
issued May 15, 1983. **** Refunding bonds issued for a partial refunding of the bonds
issued April 15, 1984.
Water Revenue Bonds:
Issue Final
Interest Rate Date Maturity Date
6.9 to 9.0 10-15-89 8-15-19
6.8 to 8.8 01-15-91 8-15-21
Total Water Revenue
Balance
Amount Outstanding
Issued September 30,1991
$16,970,000
39,685,000
$ 56,655,000
$15,393,481*
39. 104, 500**
$55,497,981
* Balance outstanding includes $236,519 discount on bonds sold.
** Balance outstanding includes $580,500 discount on bonds sold.
Airport Revenue Bonds:
Issue Final Amount
Interest Rate Date Maturity Date Issued
4.5 to 5.5 9-15-78 9-15-98 Total Airport Revenue
$ 1,730,000
$ . I. 730,000
Balance Outstanding
September 30, 1991
$. 625,000
$ 625,000
Total GO Bonds, CO and Revenue
Bonds
$274,938~709 $195,161,708
60
CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991
III. Detail Notes on all Funds and Account Groups
The annual requirements to amortize all outstanding debt of the City as of
September 30, 1991, including interest payments of $157,116,533, are as
follows:
Annual Requirements to Amortize Long-Term Debt
September 30, 1991
General
Category of Long-Term Debt
Year Obligation Revenue
End Bonds Bonds Notes Lease Total --------___________ .., __________ ,.._ .., _________ --------________ .,. ___
1991-92 $ 15,809,459 $ 11,773,857 $ 430,313 $136,065 $ 28,149,694
1992-93 14,215,654 11,459,335 413,271 132,067 26,220,327
1993-94 13,319,803 10,829,378 3,048,482 132,067 27,329,730 1994-95 12,247,766 10,513,403 19,626 88,616 22,869,411
1995-96 11,751,083 9,885,987 0 5,574 21,642,644
1996-97 11,121,930 9,491,693 0 0 20,613,623
1997-98 10,557,495 9,000,367 0 0 19,557,862
1998-99 9,876,959 8,664,220 0 0 18,541,179 1999-00 8,914,375 8,425,395 0 0 17,339,770
2000-01 7,779,920 8,185,400 0 0 15,965,320
2001-02 6,426,423 7,937,005 0 0 14,363,428
2002-03 5,545,990 7,351,718 0 0 12,897,708
2003-04 3,709,725 7,186,342 0 0 10,896,067
2004-05 3,525,488 6,569,042 0 0 10,094,530
2005-06 3,349,400 6,439,985 0 0 9,789,385
2006-07 3,169,328 6,337,463 0 0 9,506,791
2007-08 2,369,578 5,891,930 0 0 8,261,508
2008-09 1,918,637 4,961,842 0 0 6,880,479
2009-10 1,268,013 4,942,200 0 0 6,210,213
2010-11 1,199,337 4,932,808 0 0 6,132,145
2011-12 0 4,537,265 0 0 4,537,265
2012-13 0 4,552,240 0 0 4,552,240
2013-14 0 4,574,915 0 0 4,574,915
2014-15 0 4,593,920 0 0 4,593,920
2015-16 0 4,608,575 0 0 4,608,575
2016-17 0 4,633,190 0 0 4,633,190
2017-18 0 4,646,060 0 0 4,646,060
2018-19 0 4,671,840 0 0 4,671,840
2019-20 0 3,228,480 0 0 3,228,480
2020-21 0 J,236,040 0 0 ,3,236,040
Total ll4810Z6,363 i2041061 1895 13,911,692 1494,389 !3561544,339*
* This schedule reflects actual principal and interest payments and does
not include the effect of premiums or discounts.
The City has complied in all material respects to the bond covenants as
outlined in each issue's indenture.
61
CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991
III. Detail Notes on all Funds and Account Groups
K, Changes in Long-Term Debt
The total 1 ong-term debt is re cone 11 ed to the total annual requirements to amortize long-term debt as follows:
Long-Term Debt Interest
Carrying Amount of Debt
Add: Discounts
less: Premiums
Compensate~ Absences
Total long-Term Debt
$207,651,103
157,116,533
$ 888,158
(31,149)
(9,080,306)
$364,767,636
$ (8,223,297)
$356,544,339
Changes in General Long-Term Debt for the year ended September 30,
1991 are summarized as follows:
General Long-Term General Long-Term Debt Payable Debt Payable
10-01-90 Additions Deletions 09-30-91
---------------·----------·------------____________ ..,
Notes payable $ 2,908,025 $ 0 $ 28,105 $2,879,920
Leases payable 235,861 0 235,861 0
General obligation
bonds payable 39,179,107 7,115,000 3,819,190 42,474,917
Accumulated unpaid
vacation and sick
leave 6,339,730 322,507 0 6,662,237
Arbitrage rebate liability 227,909 22,862 0 250,771
-----------____ ., __ ..,. __ -----------_____ ..,_.., ___
Total General long-Term Debt $48~890,632 $ 7,460,369 $ 4,083,156 $52,267,845
==-==•======= •=========== =======•=== ===========
62
CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991
III. Detail Notes on all Funds and Account Groups
Long-term debt obligations of Civic Lubbock, Inc. at
September 30, 1991 are summarized as follows:
Note Payable to the Plains National Bank
of Lubbock, dated March 1, 1990 in the
original amount of $130,000, payable
on demand, or if no demand is made, in
monthly installments of $2,853,
including interest at 11%, maturing
April 1, 1995, collateral ized by
Select-A-Seat equipment. $ 99,575
Notes Payable to Southwestern Bell
Telecommunications, Inc., dated
April 27, 1990 in the original amount
of $5,035, payable in monthly install-ments of $148, including interest at
4%, maturing July 1, 1993, collatera-
lized by telephone system equipment.
Less current maturities
Long-term debt, less current maturities
$ 2,960
102,535
101,266
$ 1,269
Maturities of long-term debt as of September 30, 1991
are as follows:
1992 $ 26,188
1993 28,601
1994 30,494
1995 17,252 --------
Total $102,535 =========
63
. CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991
III. Detail Notes on al.l.Funds and Account Group~
L. Advanced Defeasement
On August 15, 1991, the City of Lubbock issued
$9,424,964 Electric Light and Power System Revenue
Bonds dated July 15, 1991. These bonds are made up of
the Seri es 1991A Bonds and Seri es 1991B Bonds. The
$4,424,975 Series 1991A Bonds were used to advance
refund $4,425,000 Electric.· Light and Power System
Refunding Revenue Bonds, Series 1982 for the payments
due April 15, 1994 through April . 15, 2002. The
$4,999,988 Series 1991B Bonds were used to advance
refund $5,000,000 Electric Light and Power System
Revenue Bonds, Series .1984 for the payments due April
15, 1995 through April 15, 2004. The 1991A bonds are
made up. of $3,335,000 Current Interest Bonds and
$1,089,975 Premium Capital Appreciation Bonds. The
Series 1991B Bonds are made up of $4,030,000 Current
Interest Bonds and $969,988 Premium Capital
Appreciation Bonds.
A portion of. the proceeds of the Series 1991A Bonds
were used to purchase United States Treasury
Securities--State and Local Government Series {the
"Series 1991A Restricted Acquired Obligations") which
were placed in an irrevocable trust to be used solely
to refund that portion of the City's Electric Light
and Power System Refunding Revenue Bonds, Series 1983
for payments due April 15, 1994 through April 15,
1995. As a result, these bonds are considered to be
defeased and the liability of $4,425,000 has been
removed from the books of the.City of Lubbock.
A portion of the proceeds of the Series 1991B Bonds
were used to purchase United States Treasury
Securities--State and Local Government Series (the
"Series 1991B Restricted Acquired Obligations"), which
were pl aced in an irrevocable trust along with an
initial cash deposit to be used solely to refund that
portion of the City's Electric Light and Power System Revenue Bonds, Series 1984 for payments due April 15,
1995 through April 15, 2004. As a result, these.bonds
are considered to be defeased and the liability of
$5,000,000 has been removed from the books of the City
of Lubbock.
64
CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991
III. Detail Notes on all Funds and Account Groups
Combined Sources and Uses of Funds
Series 1991A
Sources Bonds
Principal Amounts of Bonds:
Current Interest Bonds $3,335,000
Premium Capital
Appreciation Bonds 1,089,975
Premium on Premium Capital
Appreciation Bonds 414,199
Accrued Interest 16,166
Total Sources
Uses
Purchase Price of Restricted
Acquired.Obligations
Initial Cash Deposit
Costs of Issuance
Underwriters' Discount
Insurance Premium
Original Issue Discount
Accrued Interest
Contingency
Total Uses
$4,855,340
$4,716,200
45,000
53,230
20,028
3,164
16,167
1,551
$4,855,340
Series 19918
Bonds
$4,030,000
969,988
653,355
20,297
$5,673,640
$5,503,700
75
50,000
62,186
25,084
11,742
20,297
556
$5,673,640
Calculation of Cash Flow Difference
Prior Debt Service
Cash Flows
Less: New Debt Service
Cash Flows
Reduced Debt Service
Plus: Accrued Interest
Total Reduced Debt Service
Series 1991A
Bonds
$7,071,128
6,692,316
378,812
16,166
$ 394,978
65
Series 19918
Bonds
$8,874,500
8,381,812
492,688
20,298
$ 512,986
$ 7,365,000
2,059,963
1,067,554
36,463
$10,528,980
$10,219,900
75
95,000
115,416
45,112
14,906
36,464
2,107
$10,528,980
===========
$15,945,628
15,074,128
871,500
36,464
$ 907,964
CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991
III. Detail Notes on all Funds and Account Groups
L. Advanced Defeasement
Calculation of Economic'Gain
Series 1991A:
Present Value of
Prior Debt Service at 6.36%
Present Value of New
Debt Service at 6.36%
Less Accrued Interest
Economic Gain on
Transaction
Series 19918:
Present Value of·
Prior Debt Service at 6.36%
Present Value of New
Debt Service at 6.36%
Less Accrued Interest
Economic Gain on
Transaction
Totals (Series 1991A and Series 19918):
Present Value of
Prior Debt Service at 6.36%
Present Value of New
Debt Service at 6.36%
Less Accrued Interest
Economic Gain on
Transaction
66
$ 4,812,333
16,166
$ 5,656,631
20,298
$10,468,964
36,464
$ 5,100,276
4,796,167
$ 304,109 ===•========
$ 6,008,127
5,636,333
$ 371,794
$11,108,403
10,432,500
$ 675,903
C ITV OF LUBBOCK
Notes to Financial Statements
September 30, 1991
III. Detail Notes on all Funds and Account Groups
M. Accrued Insurance Claims
As discussed in Note I.G .• the Fund establishes a liability for
both reported and unreported insured events, which includes
estimates of both future payments of losses and related claim
adjustment expenses. The following represents changes in those
aggregate liabilities for the Fund during the past two years ended September 30:
Unpaid claims and claim adjustment expenses
at beginning of year
Incurred claims and claim adjustment expenses:
Provision for insured events of the current year
Increases in provision for insured events
of prior years
1991
$1,045,047
420,627
2,000,003
Total incurred claims and claim adjustment expenses 2,420,630
Payments:
Claims and claim adjustment expenses attributable
to insured events of the current year
Claims and claim adjustment expenses attributable
to insured events of prior years
Total payments
Total unpaid claims and claim adjustment expenses at end of the year
N. Reporting Changes
Senior Citizen Services Grant
338,117
1,723,571 ----------
2,061,688 ----------
$1,403,989
sa:::::::=====•
1990
$1,165,406
330,017
1,682,286
2,012,303
349,756
1,782,906 ----------
2,132,662 __ .,. ____ .,. ...
$1,045,047
===:t::m=;::===
During the year it was determined the Senior Citizen
Services and the Summer Food Services Program qualified for
grant reporting as an Expendable Trust Fund. All
accounting activity was moved from the General Fund and is
reported as Other Grants in the Expendable Trust Funds.
67
CITY OF LUBBOCK
Notes to Financial Statements
September 30, 1991
IV. Contingent Liabilities
A. Federal Grants
In the normal course of operations; the City receives
grant funds from various Federal agencies. The grant
programs are subject to audit by agents of the
granting authority, the purpose of which is to insure
compliance with conditions precedent to the granting
of funds. Any liability for reimbursement which may
arise as the result of audits of grants is not
believed to be material.
B. Litigation
The City is involved in numerous lawsuits arising in
the normal course of business, including claims for
property damage, personal injury and personnel
practices, disputes over contract awards and property
condemnation proceedings, and suits contesting the
legality of certain taxes. In the opinion of
management, the ultimate outcome of these 1 awsu its will not have a materially adverse effect on the
City's financial position as of September 30, 1991.
V. Financial Instruments
The City is subject to off-balance sheet risk associated
with assets that are not recorded in the financial
statements, specifically with respect to United States
Treasury Securities--State and Local Government Series, held
in an irrevocable trust to be used to refund a portion of
the City's Electric light and Power System Refunding Revenue
Bonds, Series 1983 and 1984. Management feels that due to
the nature of these securities, there is a minimal amount of
credit or market risk associated with these securities.
Financial instruments which potentially subject the City to
concentrations of credit risk consist primarily of demand
deposits and trade receivables.
Management believes that the City places its .demand deposits
with high-credit quality financial institutions in amounts that are within the Federal Deposit Insurance Corporation
limitations or are collateralized by pledged securities.
Concentrations of credit risk are primarily focused on trade
receivables which are due from customers. No significant
credit losses from individual receivables were experienced
during the year.
68
CITY OF LUBBOCK Notes to Financial Statements
September 30, 1991
VI. Subsequent Events
On January 18, 1992, the City of Lubbock will conduct a 1/2
cent sales tax election. If approved, 1/8 cent sales tax will be dedicated to the reduction of current ad valorem tax
and 3/8 cent sales tax will be used for economic development
projects.
During the next three years, the City wil 1 issue
approximately $50 million of Certificates of Obligation in
participation with the States Revolving Loan Fund, the
proceeds of which will be used to construct sewer system
improvements.
69
~ ~~ II ~ ~ LUBBOCK TEXAS
ENTERPRISE FUNDS
The Enterprise Funds are used to account for the operations of the
City financed and operated in a manner similar to private business
enterprises, where the intent is costing goods or services to the
general public on a continuing basis to be recovered in whole or
part through user charges. Included in this category are Lubbock
Power and light Electric Fund, Water Fund, Sewer Fund, Solid Waste
Fund, Lubbock International Airport Fund, Meadowbrook Municipal
Golf Course Fund, Civic Lubbock, Inc., Citibus Transit System, and the Center for Innovation.
CllY OF LUBBOCK, TEXAS ENTERPRISE FUNDS COMBINING BALANCE SHEET September 30, 1991 With Comparative Totals for September 30, 1990 Total'I ~ Electric w.1 ... s.-, SoUdWat. ;J;O()ft Goll , . CMC Lubbock, Chlbu1 Otnter for Fwnd l'und fund f=ul'\d Ful'ld Fund lne. Fund Innovation 1S91 1990 Cunant auetis; };~~~;;; Pooled cash and cath •quivalen'1111: s 11,106,923 S 528,•6$ S 212,175 S 37,03IJ $ 229,632 $ 35,551 S 343,3SII * 12,670 s 0 s $ 11,395,787 Ac:ec\11'111 Md notM Meelvable (ntt) a,001,11• 1,354,7:111 ~.216 4117µ8 ffl,D74 2,762 2'3,798 381,074 7,514 \:'.',:.: 6,219,914 ,, 8,689,39/l Interest ree.lvabM 11,170 5,728 80 181 0 303 0 0 •·•;~:= 1"8,023 Oue from othef governmente •S,52$ 2!11,300 0 0 0 0 0 0 0 101,097 Pntpaid eicpen1tt 0 0 0 0 ,o 43,29G 311,259 0 ·•·•.: !2,5.52 13,!!4 lnvOf'ltory, at cost 200.102 89,695 0 D 0 47,ffl 65,788 172,750 ,, .• ' •.• 5136,424•: 490,g15 Total eurtent atHM 14,384,927 2,299,g1a 8•7,394 524,754 555,867 88,302 <468,!'i:?9 605,753 7,514 "' 19,728,951 16,$26,904 RH1rict6d Ufft.-: Cu1tomer dopOliha: Pooi.d cuh and cmih equNaJtnt'I "5,580 375,545 2.88£ 0 0 0 0 ••• 423,!IIIO" A47,931J Uttlll)I <i•posl•: Acct,unbJ NHlelYabJI 0 ,,011 0 0 0 0 • '" :• 4,ll71: 4,071 Eccnam:ic developm,nt Pooled cnh and caish 1q111Y"'•nt1 ™·-0 0 0 0 0 0 S73B,il&lc 525,310 tnter-esl ,.r;etvabte -0 0 0 0 839 6,530 Pro rala coostructlon: Pmed cuh and CMh equlvalenle 9$4,•50 517,998 D 0 0 0 0 • 852,4411: 845,995 Aoeounta and Jntereet receivabl• 31,89S 34,«21 0 .0 0 0 0 0 66,318, 5.2,7!1 Capital projects: Pooled cash and e,aah e,qulval•nta 9,265,611 67,8311,325 622,175 1,9Z'l,287 30,81"8 "2,S40 ~.037 '7$,m,m 31,108,885 MCOUnt• and kit6res1 receivable 58,193 111,823 18'! 2,008 20,000 3 0 0 97,l!tO 159,570 -J Permanent capllal ma.intonancit: N Pook,d cash and cash equlvalonts 5,491,936 790,022 9Hl,647 1,689, • .., •70.787 ---0 '9,7615,315 8,577,700 lnterH1 ,•ceN•Ola. 7,186 85a 1,0 .. 945 1.1.so 230 0 0 11,467 &,269 System lmpronrm,nt: Poolod cash and cuh oqunr.ti.,os 3,702,314 2.507,278 697,789 41,211 \ 0 0 •.~.soo 4,913,270 lntores1 ,-colvable S,455 3,202 988 51 0 0 M9'l 61.008 Rate etabiliza1ion: P()ro{ed cash and cash equi\laltllls 0 7,293,515 2,672,&74 0 0 0 •.9"8.389 S,8621858 lntereet reuhrable 8,001 2,941 0 10,94l 63,689 Revenue bond current debt urvtctl:1: Pool•d cash and CJ,Sh equivalents 5,869,675 50,500 ,o • $.920,4115 •,643,205 lntereet receivable 10.137 0 4M 0 0 11,331 106,563 Rennue bond future dtbl aervl¢8$; Pooled CQh and CMh 6quivants 3,413,183 0 450,396 ""1!,000 D 4;163,579 4,S17,255 ll'lt•U!llt recei'Yabl$ D 552 0 D 0 $52 S,038 Total (Mtrl<=t•d NH1s 28,607,653 79,204,783 6,120,2tl2 3,622,985 1,115,101 247,836 26,037 0 11B,944,6!t7 59.961,902 AdV'ance 10 o1her fundt 1,Ms,s,;1 2,310,499 D 0 0 4,076,012 2,326,012 Ooiened charge 1,147.462 0 0 0 1,147,462 1,143,966 Prop•rty, plMt .and equipment; Land 4S6,t540 1,251,249 6,371,007 3n,024 s,ees.964 1,,,a,o 0 318,539 0 14,559,333 ,".573.483 Buildings 1,706,590 4,643,217 5,107 21,099 25,216;601 _,189, 184 1,170,629 32,956,427 29,451,~39 lmprov!lmentt; oth~r than blJildings 68,115,443 81,426,045 37,564,172 200.465 30,215,691 (004,3$3 201,958 218,470 238,949,597 234,985,09& Machinel")' artd equipmant 3,603.757 2,189,141 1,790,289 12,\13,155 2,HM,487 658,831 320,895 $,$46,68l 31,143 23,640.379' 2S,SS8,02f!! Con&uuction in progn36$ 32,231.i:-i.i 21,219,834 12,5.«l,210 767,449 6,Gel',699 0 Q 0 • 73,434.225 57,671,663 Allowance 101 depreciaUor,, (44,869,94 t} {24,676,565) (15,400,600) (6,999,116) (30,460,352) (485,713) (167,504) (5,418,752) 13e,200i (13D,516.74'l) (124,020,071) Not propl!lrty, plant and equip~nt 81,443,722 66,054,721 42.678.185 4,4!!6.076 39.494.090 1,481,565 153,391 1,821,0SS :211,413 256,024,2111 236.419,843 01her assets: W.11urightfl 0 32,90S,862 0 • 3:1,906,!62 !)2,005.852 Allo-,ance for amortizatf#Jf'I 0 (8,903,939) 0 0 (8,903,939) (8.516,811) Not othEir ai;,aets 24,001,923 0 24,001,92' 24.389,051 T01al ane«. 127,329,277 $ 193,f!•t,!44 $ 49,845,641 $ 1!,$33,S1!i ! 41.~65,058 S t,&iS,703 $ 645,957 $ 2.426,808 s 216,927 s 425;923,Z:30 $ 345,169,478
CITY OF LUBBOCK, TEXAS ENTERPRISE FUNDS COMBINING BALANCE SHEET September 30, 1991 With Comparative Totals for September 30, 1990 Tota.ta Uabllitlea and Fund E91tl!%;: S.cuic W.ttr 9•-SolldWuie Airport Galt Civic Lubbocl<, Cftlbi.ll C.nte, fOt Fund Fund Fur,d Fund Fund Fund Inc. Fund tnnotatlon 1901 , ... Current liabititMla: / >·~:~5«2;069 ~: Accounts and YOUOM,. payable $ 3,550,•73 $ Zlll,81!0 S 65,267 I 31!,621!$ 2!1,028 S 13,23<$ I 2:!S,110 S 411,204 s 3,309 $ $ 3,733,741 Due to othw futuM 0 0 0 t,1$0,000 3125,000 750,000 0 0 4,214 2;21'9.~,.-1,755,DDO Accru.d ,atl"ltral obllgatlOn lnt.r111 11212_4'-tO 124,72'! a M2-1 0 a ;::::::-1~343,49')·( 368,595 0th•, acorued upenan 157,593 100,411 30,30e 149,185 35,173 10,118 e,ooo 117,549 8,095 •, ,:924.432-: 496,769 Cutr.nt portfon al g.nM'IU ob~tion bondt end cc,netrue1lcn ttbtlg~tjon payabkl 0 3,984,523 1,195,927 116,000 0 35,000 101,2'58 :S,4"11,718· 4,e25,895 To\11 cum,nt U.bUttlt• 3,718,068 S,498t1'4 1,41,S,ll:18 ,,.50,8ll7 369,201 &t<,ffl 334,3M 535,753 13,Sll ':14,170,921 ', 10,on,eoo U.blll!I .. payllbl<l lrom rfltrieltd Mfftr. Accoun111 and YOUche,• payab* 29,458 397,710 88,440 2.157 se,,n 0 0 a a 575,940 671,917 0.1erred l'Mnut 547,000 193,000 0 0 a 0 13,907 S,720 7S9,8'0_, 0 Accrued interest 1,2-12,832 0 0 1,386 a 0 0 0 : 1,214,011; 1µ(),7711 Cutrenl rnenu. bo,,dt flayable 4,088,900 eo5,574 0 0 85,000 Q 0 0 0 .:.::\4,759.47,1;: 3,476,8911 CUstcrner dep01lt1 45,580 37S,&<I. 0 2,885 a 0 0 0 0 ... 423.~ 447,i13!1 Total liabllltloe (poy-lrom "' '-' restrlcktd•••t1) 5,903.li48 1,571,8;:!I 88,440 S.042 14',583 13,907 0 S,720 .,,1.73:1 ..... $,037,524 long-term llabffltias: Revenue born1e (n•1 ot cur,.nl p!.)l'tion) 39,257,214 54.892,407 0 540,000 a 0 0 94,1589,621 52,944,630 Mvanc.1rom other futld1 a 0 1.750,000 397,600 a 4t,5H 0 0 2,189,111 48-4.111 A<h'ance. from other agtncits 0 0 0 0 0 70,000 0 · 70,000 70,000 Coritracts paya.bkf -PfO ,ata 0 511;xu 634,851 0 0 0 0 1,046,!!42 1,100,695 Conllrucdon ollllga!lon pajal>lo 0 25,2l7,a2 0 0 0 0 0 0 25,217,:!&l! 25,887,4$5 a..,.,a1 <>bllglldon -(nol of current porOon) 34,321,094 12,811,337 1,030,000 a '536,000 0 0 0 48,&97 ,431 -. 35,9113,290 Nolet and leaeH payabte 0 0 •·= 233,955 0 a 1,269 • 0 0 239.578 75,404 AccYuod •....Uon and sick leave 1,008,463 ..SS:,676 47,2.!t 31,.•n 149,191 2$,134 0 0 ,:2.055,ffl· 2,082,311 Arbitrage, rabate liability 204,0711 •9.688 179,128 0 0 4,913 0 0 0 437,$78 -881 Total iong-term liabllitlM 40,467,756 116,4'7,936 1&,128,951 2,033,032 MS,8$1 7D7,630 1,269 70,000 0 17',543,-118,978,71:M Total liabilitln 50,0ll9,370 122,517,9El1 18,631,619 3 .. H,861 1,222,655 1,622,30a 349,SSZ 605,753 10,338 11!6,A47,437 135,992,118 Fund •q'ult)': COntribut\td capital 7,917,922 32,939,884 22,11)4,475 4,694,732 41,495,427 eno,345 0 1,821,0SS 214.245 111,008,0llS 109,554,537 Rttairi•d earnings; Rt1•1'Y9<1 for economic: dsv-1op~ft1 737,503 0 0 0 0 0 0 737,503 . 525,::110 Re11,ved tor capital prole.et• 9,319,867 67,.97,512 734,030 1,927,136 40,347 42,543 211,037 0 0 791SBB,37•·· 3'!,79:1,4114 fwe•rved for pMmat'llfft1 capUal maintenance s,•n.,22 700,385 9UJ1745 t,690,eos 624,231 205,2113 0 9,729,51'1_ U25,7'rZ ReNN•d k>l -~,-m irnptO'QffleAIS 3,682,250 2,472,901 698,m Q 41,252 0 . f1HS.190 4,994,278 Rea.rv•d for ra.1e stabilintktn 0 7,:JCU,SHI 2,675,815 0 a 0 un,331 4,903,058 Rciserved p..-bond i!"ld•nhlre111 4,021,263 0 450,948 0 -.698 • 0 • 4,~,909 4~117,419 Unu,serwd 46,061,980 (39,678,315) 5,S39,S32 (3,067,741) f'2,S2'J,562l (7114,7661 270.366 0 (14,650) S-,822,820 •7,603,634 T Ota.I retain.cl •atni"ll' 69,321,985 38,363,999 11,019,747 550,202 {t,553,024) (S16,960) 296,40! 0 (14,650) 117 ,4!!17, 10$ 99,$22.823 Total fund .,quity 77,239,907 71,323,883 33,214,222 5,144.934 39,M2,•03 m,391 296,..,. 1,821,055 109,SSSI 229,475,153· 1!09,,n,3"'> T oral fiabllllNt• an<t 1vrid -,quity 121.:>a,zn , 11d,.41,IU $ •o.94,-,e,., ·, 1,1331,11' I 41,111.Glil :S ,.,11,11:1, 8 Ml,H7 I r.•::i..,o• s 213,927 $ 425,923,230 $ 345.16$1.~78
CITY OF LUBBOCK, TEXAS ENl'BV'RISE FUNDS COMBINING STATEMENT OF AEVENUEs, EXPENSE$ AND ctWfflES IN RJND EQUITY/RETAINED EARNINGS Vntend.-dS.pteml»f30, 1981 \Mth Cornpata.ttve To...,.101 Septembw 30. 1990 Tc1ale a...tlc WalM S-or SolidWUUI Airport Goit Civic Lubbock; CUibuG Con1er tor Fund Fund F'und Fu11d F'und Fund Inc. Fund lnnO'\'ation 1991 1900 Opt,ra.Ong rtv•nUM: L ~~;462,1s, s Charo•• for Nf'Vk:H $ 49,,42,119 $ 21,577•566 S 8,48'1,754 $ 6,340,137 $ 0 S 0 $ 1,498,859 $ 1,2611,1~$ 146,21~ $ 84,000,199 New ta(.14 and n1connectt 0 24-4,157 0 0 0 0 0 0 ?-:.~;1_57·: 203,780 Effltl6n1 wa1er •aJ4.a 0 0 694,158 0 0 0 0 0 0 ··•-.S94,1sa,: 5t!S1,0S2 Commodity ,ai .. 0 0 813,145 0 0 0 0 0 0 .?:·{.s13,,14) 4/!6.33:2 Landing f••• 0 0 0 615,719 0 0 0 0 .:,~.::: -·-Parting 0 0 1,233,432 0 0 0 0 1,2)1,843 G,..nr..a and m•mberahlp& 0 0 • • 0 451,4al 0 0 0 .. • -451~,20-: 4:!<l,064 Pro shop la.IN 0 0 0 0 0 93,934 0 0 0 ·,,, ·93,934' 93,"8<1 Aamalc 0 0 0 2,112,095 253,000 0 • • . z-.ou 2.106,305 C.Onoeeelon1 0 0 0 102.031 65,482 0 • 0 167,513' 235,269 Total opeu1tlng revenun 49,\42,119 21,8:21,722 9,e:96,057 S,:340,137 4,064,177 853,826 1,498,859 1,2611, 1~ 146,214 M.832,314 90,817,144 Opera1tt1Q Hp9nlff! Pen:onal &ef'Vicff 5,047,:ka 4.330,1UI 1,378,967 2,283,•12 1,761,815 460,871 593,563 1,402.035 335,053 l7,fi1.o22: 15,439,519 Suppl!H 418.112 693,209 536,45!1 378,218 161,542 233,506 212,456 0 2.""5,601' 2.1,e,484 Maintenance 677,6:!<l 853,914 590,759 1,694,987 286,988 '11,595 2,089 800,475 0 ..... 4~Ma,407 4,109,145 Uncolh1ctlble 4CCOUMI 0 127,775 82,871 86,167 0 0 121 0 • -:i29oe,23t a,2.114 PurchM6 of tu9' Md power 24,996,963 0 a 0 ,0 0 0 l!<,"""-963 25,300,191 C.OJlecUon upenc1 0 1$4,580 154,sao 309,160 2!15,024 .._, Oth6" fff'\'Jon arid ctiargu .:2,12S,118 ,.161,915 1.393,9n :lSl,.518 1,.408,264 so.0•1 597,l':23 957,345 · 10,600,987 1"0,soe12n ~ o.,,«,cJ.atloo and amortization 3,051,867 2,042,675 1,311,098 .514,818 1,424,759 165,264 37,702 139,767 38,200 ·.·9,035,010 · 8,081,316 Total op,e,ra~ng 6xp&n&H 36,287,020 11,815,684 6,448,701 5,764,240 S,043,168 900,283 1,44-t,314 3,299.!22 373,253 70,-68,838,703 Oplfatlt19 income. (10&11) 12.855,099 10,00ei056 4.247,356 575,897 (1178,991) (106,357) 54,545 (2,030,519) (Z!l',039) 24,396,049 23,978,441 Non01,er.a.til'lg , • ..,,,,uea (t1xpenses); lnte,nt 2,927,837 4,129,966 615,110 211,152 153.978 11,025 12,557 • 0 a.001,e 5,588,723 Oi&pogltlcin of propertlH (63,448) (91,541} 103.819 140,959 (10,112) (19,168) 0 (9,004) , s, ... '2:S (117,071} Miscellaneoua ¾net)me 382,717 11,738 1,240 9.341 122,371 7,506 0 , 53',91!i •54.205 lnte,est on bonde: and nolQ (2,944,267) (5,744,140) (968,469) (42,304) (37,534) (66,666} (12,4131 (5,336) D (9,811,129) (8,984,012) Cash gtant1 and retmbur"tMnte 0 Q 0 0 \'. 0 0 1,488,430 65,000 1,571,430 1,303,895 Total nonoperatlng ~111nues (exponffs) 302,639 (1.693,977) (248,!!00) 319,148 225,703 (57,301) 144 1,472,010 85,000 400,266 (1,755,060) Income (lo&$) befo,• operatlng tran11t1Jre 13. iS7,9'38 8.312,081 3,999,056 895,045 (750,280) (163,658) 54,689 (568,509) {142,039) :!4,004,315 22,223,381 Transfenc Operating tranaf•r• in 4,355,742 2,270,915 a 0 87,l'IS • 409,66! 89,183 7,212,668 1,n4,n1 Op4H'ating trane;1••• {oof) (5,087,835) (6, 124,658) (2,843,313) (18M22) (421,400) (!17,168) 0 0 0 (14,751,287) (13,e"5,407) · Total 1ran1Uet$ in tout) (5,087,836) (1,768,916) (572,398) (186,922) (421,400) 0 0 409,658 89,183 (7,531S,!121) (6,000,636) Netln~(k>ss) a,010.102 6,543,165 3,42!5,!SS,9 706,223 {1,171,778) (163,658) 54,llll9 (14'!,851) (52,856) 17,265,594 18,132,746 Deproeiation on fixed atHit acquin,d by eonlrlbution• 20& 133 411,602 0 148.851 Je,200 598,l9't 519,695 Retained e.tmings at beginning of yu.r 6'1,251,1!83 3Hl40,629 7,S92,9S6 .C,158,021) (793,048) (353,292) . 241,716 0 C J>9,6Zl.•2'1 c 82,970,383 Aetained •arnfngis at end of yea., 69.321,985 ;J8.:J83,999 11,019,747 550,202 (1,553,024) (5'16,1il50) 296,405 0 (14,556) 117,4"7.708 99,6:22,823 contribuliona at beginnl~ of year 7,917.922 32,686,300 :21,965,080 4,594,732 3g,943,493 610,345 • 1,6~6,665 Q 109,5-54,637 107,009,706 Capital contribution$ 0 253,769 229,526 0 1,963,736 0 333,241 262,4-15 3,012.73$ 3,064,528 O8pre¢latlon on Contribul6d Caphal (2')5) (133) • {411,802) 0 ft48,S51) (38,200) (5911,191) (519,6115) Cot1!tibvtions at end ot yea, 7,917,922 32,939,8i4 22. 194,47S 4,594,732 41,4515,427 810,345 • 1,821.055 214,245 111,9199,06& 109,:554,537 Total equity a'tend of ytiat s n,2-::9,901 .s 11,323,883 $ 33.214,222 $ s. 144,934 S 39,942,403 $ 293,39$ $ 296.405 $ 1.821.055 $ 199,589 $ 229,415,793 $ 209, l77 ,360
CITY OF LUBBOCK, TEXAS ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS YeanJ Ended S..l)ll)fflb<II' 30. 1991 and 1990 Electric Wa1ar -Solid Waste Ai,pon Oolf Cinlic Lubbock Cilibu• C.nt.,for Total& Fund Fund Fund Fund Fund Fund Inc. t-'und lnnoY•tk:N'I 1991 1990 C.h flon from operating activittff: it.~ilifs Opor•ling-(lca<t) s 12,855,099 $ 10.ooe~ s 4,:!"7,358 S 1175,807 S (978,991) $ (108,317) S 114,ISolS $ 12,030,519) $ (W,039)$ 23,075,153 Adju1lt'Nnt1 to r.eoneilt net lnCCHM :,,',)' to n111 CMh from operating aetiwitl&a: CI~:[l llop-3,M1,B57 2,042.575 1,311,0!ll nun 1,424,759 185.284 'lf1,7'R. 1:!A,7117 38,:!00 8,081,318 Other~ 3e2,717 11,738 1,:!40 9,341 122,:m 7,508 0 0 0 457,492 lncrean (d.creaa') m k.wlv-t.nn p.ayablN noc requiring cuh flow (M,&1$) (574,073) 1t741,113 (31,140) 22,909 (3,057) 0 0 0 ·•··•• • 119$~• 584,975 Chang• In eurrert1 untw and Nabllltl&&: Account• tK:elvabfl (ntl) ~11()4$ 222.m 119,&51 (l?e.70') (148,5119) (2,752) 1,1l'l! (N.128) (7,514) ,. 435,91&·· 2,531,700 lnnntory (net) 1,097 (S0,8&1) 0 0 0 (2,118) .. -(2B.041) 0 •c• .vs.6091 &0,3111 Due 1,om othtr gowtrnm,nt11 (Ml) 0 (1,895,731) 0 0 0 0 0 0 0 • ·; (1,"5.731J (37,0'l9) Ptepald tirptnt" (nt1} 0 0 0 0 0 0 (29,509) (39,2591 0 . (e8,B88J 43,885 Aooovnl8 PO!'oblo (n•I) 183,494. 249,1511 70,573 14,"62 3,485 (7,879> 132,700 •7,9'1!) 9,404 . 703,347. ,.,530,346) Due la other funda (nal} 0 0 (280,000) ,00,000 325,000 ffl,000 0 • 4,214 (70,000) Oth•r accrued .xp,fflCQ (n.t) 37,328 21,719 &,527 36,571 1,M (2,5281 0 4,443 (117.94G) Salee tu p.ayable (nel) 35,099 0 0 0 0 0 0 • (1'7,041) Cu•tomer deposltt (n.i) (11,075) (lS,00!) 0 185 0 0 0 (3'!,939) Deferred 1"9nue (ne1) S.'7,000 ,00,000 0 0 21,907 0 5,7:!0 0 N.t euh provided (uNd) by operating .cthtlllH 17,401,02S 10,109,:399 7,219,!iila 1,4113,l'l!S ,, .... 2 222,6"2 (1, ... ,187) (177,0151 30,83-5,441 Cut\ flow from c:apltal and related Unancing tc:t!Yt1t.e:: Payment for au '6NFWt (3,496) • 0 0 0 0 • 13.•"'5! {40,073) ..., Puteha.Q ot proputy. p!t111 and equipment {11,563,703) (10,4117,9511 (11,979,838) {l,7S7,267) (7,684,291) (2711,1145) (30,"""l (249,613) ('1,0l1,8H) {'5, 128,$78) <.n Sale of property, plMf .Md ieiqulp:ment 3.895,328 8t0,S60 2,795,030 1,158,233 4,629,132 135,775 0 0 13,422,05'1 17,035,802 Paymtnt• on SoatH • 0 (S,5(12) (45,006) • (112,537) 0 (113,105) (33,275) Pflnc;pm paid on ,..,en1.1• bonde (3,220,118) (752,015) • • (eS.000) 0 0 0 0 (4,057,433) {'3,321,-, Inter.st paid on ...venue bend• (3,170,836) (2,467,072) • (37,720) 0 0 0 (5.1175.~) (3,802,753) la•uat1ce of revenue bonds 7,500,000 39,685,000 0 • • 47,185,000 16,564,996 Principal paid on general -cblfg-ailon bondt: 0 (2,47G,399) (1,211,554) 0 (35,000) • 0 (3,722,953) (3,915,54$) ln1&rHI paid on _g.netal obligation bond• 0 (2.286,084) (992.408) (42,304) (58,8181 0 0 0 (3,3'57,812) (5,330,742) Issuance. of gon.,al obligatron bondg 18,000,000 0 1,145,000 0 0 0 0 17,145,000 0 Princ:ipaJ pa.id on long: .. t.rm debt 0 (30,189) 0 0 0 (23,567) 0 0 (53,758) (58"312) lnt•rHI paid on bng-t.rm debl 0 0 0 0 0 (12'.413) (5,338) 0 (17,749) (11,78ft) Proceed• from k:wtg-tetm debt 0 0 0 0 0 0 •· l'5,0ll Payment on advanc. ff'Orl'I ~n•t.d fund 0 0 0 0 (25,000} 0 (25,000) (25,llOO) Contributed capital :253,789 229,529 1,963,7311 ___ o _____ o _____ o_ ~ 2,1!-99,4$9 2,'123,!)l!O Net cash provided (uaed) for caplta.1 and relat.d financing &CWitie•: (3,553, 127) 3'!,2ffll,ff,)Q (11,154,801) 446,6511 (1,214,133) (:!21,825) ( .... 970) ~ ~ 22,.CZ.!nS (2<,938,537) Cah llows from none.apitat and rtla~•d fina.ncing actNiliu: Operating 1ransfera in from other tunda 0 4,:155,742 2,270,915 0 e7,168 0 409,658 i9,193 7,212.6"" 7,774,771 Open.tlng tr.msfet11. cut to othor 1unds (5,087,836) (!l,1:!4,0581 (2,843,313) (188,822) (421,490) (!17,16'1) 0 0 0 (14,751,.&7) (13,865,407) Cuh grants. and roimbursemonts 0 0 0 • ___ o _____ o_ 1,4$6,.QO ~ 1,571.~30 1,303,895 ~t cash uaR tor noncapUal and retat•d llnanelng-actMtlH: (5.087,8:JS) (I, 768,916) (572,398) (10 ... 22) (421.A90l ___ o _____ o_ 1,Me.osa 11,,1e3 (5,9$7,181) (4,766,741) Cash tlowt from lrwuting actlvltfes: lnUir-ost 6<.Uninge Ol'I cash and ll'IVHlmentt 3,129,940 4,325,298 6SS,838 228,202 170,91& 10,811 0 0 M:32,,!!4 5,616.lllll N.l euh p.rOltid•d (uHd) by tnvea1ing ~tMU.. 3,129,940 4,325.298 -.•38 228,:!02 110,see ~ ---0-----.-8,532,854 :5,6H,.861 Net Jncreu• (d•eteue) in pooled ca.sh and cash .,quinllM'!tt 11,889,402 so.935.420 (3,851,793) 1,981,26\ (688,155) ~ ~---.-80,399,&4& G,727,ffl Poolo-d e11h and euh eqvNalonts at beginning of year 77,742,664 28,733.182 10,143,647 1.67$.!109 2,009,193 zz1.es1 ~ ~ ___ o_ 70,638,202 64,111,178 Pooled eaeh l.t'ld ea.ah equlval"lta at •nd of f93r $ 39,$32,066 $ 79,668.602 S 8,292,054 $ 3,667,070 :S: 1,323,038 $ 293, 1S4 $ 3$9,396 $ 12.570 $ 0 $ 131,238,050 $ 70,638,~2 ==== Non-cash invet.llng, capital .and financing acdvhlk: · A capital leae:e obligation ()f $278,961 wa incuned in October wher, 1he City on'l15red Into a lease of new ~uipm•nt for u,. Solid Wufti hmd, Electrio rev•nu• bondc In th• amount of $$,424,963 were tuued to adwance reh.lnd a portion ot the 198:2 and 19M electric fennu1 bond•.
No Text
CITY OF LUBBOCK, TEXAS
(Lubbock County)
$7,565,000
TAX AND WATERWORKS SYSTEM
(LIMITED PLEDGE) REVENUE
CERTIFICATES OF OBLIGATION,
SERIES 1992
Selling Thursday, August 1~, 1992,
at 11:00 AM, CDT
No Text
NOTICE OF SALE
AND
BIDDING INSTRUCTIONS
ON
$7,5(15,000
CITY OF LUBBOCK, TEXAS
(Lubbock CoWlty)
TAX AND WATERWORKS S\'STEM (LIMITED PLEDGE)
REVENUE CERTIFICATES OF OBLIGATION, SERIES 1992
Sellillg Thursday, August 13, 1!1!12, at 11:00 AM, CDT
TIIESALE
Certiracates Offe.red for Sale at Competltin Bidding
The City of Lubbock, Tens, is offering for sale its $7,S6S,OOO Tax and Waterworks Sysrem (Limited Pledge) Revenue
Certificates of Obligation, Series 1992 (the "Certificates").
Addn!SS or Bids
Sealed bids, plainly marked "Bid for Certificates•, should be addressed and delivered to "Mayor and City Couocil, City of
Lubbock, Tc.u.s" and delivered to the City Secretary at the Municipal Complex, 162S 13th St., Lubbock, Texas, prior to 11:00
AM, CDT, on the date of the bid operung. All bids must be submitted on the Official Bid Fonn, without alteration or
interlineation.
Place and Time or 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, Augwit 13, 1992.
Award of the Certif",cates
The City Council will talce action to awud the Certificates (or reject all bids) immediately following the bid open.ing and adopt
an ordinance authorizing the Certificates and approving the Official Statement (the "Ordinance").
TIIE CERTIFICATES
Description
The Certificates will be dated August 15, 1992 (the "Certificate Date"), and interest will be due on February 1S, 1993 and on
each August lS and February lS thereafter until the earlier of maturity or prior n:demption. The Certificates will be issued only
in fully registered fonn in any integral multiple of $S,OOO for any one maturity. The Certificates will mature on February lS
in each year as follows:
Principal Principal Principal
Year Amount Year Amount _fur_ Amount
1993 $ 63S,OOO 2000 $ 475,000 2007 $ 200,000
1994 63S,OOO 2001 47S,OOO 2008 200,000
1995 640,000 2002 47S,OOO 2009 200,000 1996 . 640,000 2003 200,000 2010 200,000
1997 640,000 2004 200,000 2011 200,000
19911 47S,OOO 2005 200,000 2012 200,000
1997 47S,OOO 2006 200,000
Book-Entry-Only System
The City intends to utilize the Book-Entry.Only System of The Depository Trust Company ("OTC"). See "Certificate
lnfonnation • Book-Entry-Only System• in the Official Statement.
Redemption
The City reserves the right, al its option, to redeem Certificates having stated maturities on and aft.er February tS, 2003, in
whole or in part in principal amounts of$S,OOO or any integnil multiple thereof, on Februaey lS, 2002, or any date thereafter,
at the par value thereof plllll accrued interest to the date fixed for redemption. ·
.. i ..
Paying Agent/Registrar
The initial Paying Agent/Registrar shall be NationsBank of Texas, N. A., Fort Worth, Texas (see "Certificate Information
Paying Agent/Registrar• in the Official Statement).
Source of Payment
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 prescribed by law, on all taxable property within the City, and (ii) a limited
pledge of net revenues of the City's Waterworks System, as provided in the Ordinance.
Further details regarding the Certific.ares 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 Certi!ice.tes. 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 1/20 of 1 % and the effective interest rate must
not exceed 1.5%. 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. Bach 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 collllidered informative only and not as a part of the bid.
Basis for Award
For the purpose of awarding the sale of the Certific.ates, 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 1yndicate 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.
Good FaHh Deposit
A Good Faith Deposit, payable to the "City of Lubbock, Texas", in the amount of $151,300.00, is required. Such Good Faith
Deposit shall be in the form of a Cashier's 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 fol" the Certificates. No interest will be allowed on the Good Faith Deposit. In
the event the Purchaller 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 lull and complete liquidated damages. The checks accompanying bids other than
the winning bid will be returned immediately alter the bids are opened, and an award of the Certificates has been made.
DELIVERY OF THE CERTIFICATES AND ACCOMPANYING DOCUMENTS
CUSIP Numbers
[t 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 Fann. 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.
Initial Delivery or Initial Certuicate
Initial Delivery will be accomplished by the issuance of one or more Initial Certificates (also called "Certificates") either in typed
or printed form, in the aggregate principal amount of $7,565,000, 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 delivered and deposited with OTC in connection with DTC's Book-E!ntry-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
• ii •
of the time fixed for delivery of the CcrtificatcA. It is anticipated that Initial Delivery of the Initial Certificate(s) can be made
on or about September 9, 19112, and it is understood and agreed that the Purchuer will accept delivery and make payment for
the Certificates by 10:00 AM, CDT, on September 9, 1992, or thereafter on the date the Certificate is IC1lden:d for delivery,
up to and including September 23, 19112. If for any rwion the City is unable to make delivery on or before September 23, 1992,
the City shaU immediately cont.act the Purchaser and offer to aUow the Purchaser to extend its offer for an additional lhirty days.
If the Purchaser does not elect to extend its offer within six days thereafter, then its Oood Faith Deposit will be returned, and
both the City and the Purchaser ahaU 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 1ueh failure is due to circumstances beyond the City's reasonable
control.
CGnditions lo Delivtty
'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, DaUas, Texas, Bond Counsel for the City ("Bond Counsel"), (b) the no-litigation certificate,
and (c) the certification u to the Official Statement, all as further deson'bed 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 Certirwates 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 fonn and to the effect attached hereto or accompanying
this Notice of Sale and Bidding Instructions. In the event the Purchaser will not rcolfer the Certificates for sale or is unable
to seU a substantial amount of the Certificates of any maturity by the date of delivery, such certificates may be momfted in a
manner approved by the City. In no event will the City ran to deliver the Certlf'icates as a result of the Pun:haser's inability
lo sell a substantial amount or Certif'a:att's at a particular price prior to delivery. Each bidder, by submitting its bid, agrees
to complete, execute, and deliver such a certificate, if its bid iii accepted by the City. It will be the :regponsibility of the
Underwriter to institute s11ch syndicate reporting requirements to malce such investigation, or otherwise to ascertain the facts
necessary to enable it to make such certification with reuonable 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 ill 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 inteNst on the Certiricates will be excludable l'rom
gross income for federal income tax purpoaea under existing law, subject to the matters described under "Tax Exemption• herein,
including the alternative minimum tax on corporations.
Certlf'ication ot OIF'lcial Statement
At the time of payment for, and Initial Delivery of, the Initial Certificates, the City will execute and deliver to the Purchaser
a certificate in the fonn 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 aame type and character shall be declared to be tauble 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 tenns of any federal income tax law
enacted subsequent to the date of this Notice of Sale and Bidding Instructions.
GENERAL
F'1D11ncial Advisor
First Southwest Company is employed as FUlllncial 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. F"mt Southwest Company may submit a bid for the Certirwates, either independently or as a
member of a syndicate organized to submit a bid for the Certificates. Fmt Southwest Company, in its capaeity 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 fedentl income tax status
of the Certificates, or the possible impact of any present, pending or future actions taken by any legi.!llative 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 regillter the Certificates in accordance with
the securities law of the states in which the Certifi<::atcs are offen:d or !Klld. 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.
• iii •
Not an Offer to Sell
This Notice of Sale and Bidding Instructions does not alone constitute an offer to sell 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
In June, 1993, the City plans to authorize and deliver to the Texas Water Development Board an estimated $14,425,000
Combination Tax and Sewer Syotem Subordinate Lien Revenue Certificates of Obligation, Series 1993; the proceeds will be used
to finance "Project C" of the City's wastewater treatment and disposal improvement program (see "State Revolving Fund
('SRF") Loan Program" in the Official Statement).
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 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 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 Certificates.
The Official Statement and Compliance with SEC Rule lScl-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 1:50 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 Certificate. The cost of preparation of the Supplement, or 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 coMection 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, First City Center Building, 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:
RANETTE BOYD
City Secretary
July 20, 1992
-iv -
DAVID R. LANGSTON
Mayor
City of Lubbock, Texas
BOND YEARS
Accumulated
Year Amount Bend Years Bond Years Year
1993 s 635,000 317.5 317.5 1993
1994 635,000 952.5 1,270.0 1994
1995 640,000 1,600.0 2,870.0 1995
1996 640,000 2,240.0 5,110.0 1996
1997 640,000 2,880.0 7,990.0 1997
1998 475,000 2,612.5 10,602.5 1998
1999 475,000 3,087.5 13,690.0 1999
2000 475,000 3,562.5 17,252.5 2000
2001 475,000 4,037.5 21,290.0 2001
2002 475,000 4,512.5 25,802.5 2002
2003 200,000 2,100.0 27,902.5 2003
2004 200,000 2,300.0 30,202.5 2004
2005 200,000 2,500.0 32,702.5 2005
2006 200,000 2,700.0 35,402.5 2006
2007 200,000 2,900.0 38,302.5 2007
2008 200,000 3,100.0 41,402.5 2008
2009 200,000 3,300.0 44,702.5 2009
2010 200,000 3,500.0 48,202.5 2010
2011 200,000 3,700.0 51,902.5 2011
2012 200,000 3,900.0 55,802.5 2012
Average Maturity--------·-··········-··-·-······· 7.376 Years
;J
.t
Honorable "Mayor and City Council
City of Lubbo<:k, Tex.as
Member> of lho City Council:
OFFICIAL BID FORM
August 13, 1992
Rl,fim,,we is made to your Official Ststement and Notice of Sale and Bidding lnslt\lotions, dated July 20, 1992, of $7,565,000 CITY OF LUBBOCK, T'.EXAS TAX AND WA'IllRWORKS SYSTEM {IJMl'IED PIJ!OOE) REVENUE CER'I1FICATES OF OBLIGATION, SERIES 1992, both of which
ooostitute a part hereof.
For yoor legally issued Cemfl""""• u described In 1181d Notice of Sale and Bidding Instru<:tions and Official Stahoment, we will pay you par and a=ued
interest from dste of iswe to date of delivery to us, plus a cash piemlum of $. _______ for O.rtific:ates maturi11g and bearing interest••
follows:
Principal lnte1'est Prillcipal Interest
Maturi!/£ Amount ~ Matuli!I &!!OUnt E,!te
2-15-1993 $635,000 '.Iii ---2-15-2003 $200,000 ___ '.Iii
2-15-1994 635,000 ___ '.Iii 2-15-2004 200,000 ---'.Iii
2-15-1995 640,000 ___ '.Iii 2-15-2005 200,000 ___ ,;
2-13-1996 640,000 ___ '.Iii 2-15-2006 200,000 ___ '.Iii
2-IS-1997 640,000 '.Iii ---2-15-2007 200,000 ---"
2-15-1998 475,000 ___ '.Iii 2-15-2008 200,000 ---'.Iii
2-15-1999 475,000 ___ % 2-15-2009 200,000 ---'.Iii
2-15-2000 475,000 ___ % 2-15-2010 200,000 ___ '.Iii
2-15-2001 475,000 ---" 2-15-2011 200,000 ___ '.Iii
2-15-2002 475,000 '.Iii ---2-15-2012 200,000 ___ %
Our cslculatioo (wbiob l• not a part of Ibis bid) of U., interest cost from the above is:
Total Interest Cost
Less Premium
NET INT6REST COST
EFFECTIVE INTllREST RATE
$~------
$. ______ _ _______,;
We aie having tho Certificates of the following maturities __ -.-..--"""."'-r--:--r-======--c-msuted by ________ _
---,---,,-,.,.,-·at • premium of$ , said preiiilum to i;;; pajtl by the l"un;ha....-. Any fees to Ile paid to tbl> rating ijeiides
.. a mrult of said insurance will be paid by the City.
Tb<, Initial Certificate sball be registered in the name of.--c======,-,,r-:--:=-====.,....==· We .,.;11 advise The Depository Trust Company ("DTC") of iegistration insltllctions at least five business <lays pnor to iii, date set for Initial Dolive,y.
A Cashier's Ched:: of the...,.-.,.,-,,..--:-:--:--:-:----,-,--,,,.-.,.-Bank, --,,-,,-,-,-----,,--,-,,----,--=' in !be amount of $1.'l!,300.00, which reprMell!a our Good Faith Deposit {is attached hereto) or (bu been made available to you prior to the opening of Ibis bid), and is submitted in acconbmce
with the terms as ael forth in the Ofli~ial Statement and Notice of Sale &lid Bidding lnstru<:tions.
We agree to accept delivery of the C.Ortlficates utilizing the Book-Eotry-Only System through DTC and mob payment for the Initial Certlfu:ate in
immediately available funds in the Corporate Trust Division, NationaBank of Texas, N.A., Fort Wortb, Tens, not later lhaD 10:00 AM, CDT, on
September 9, 1992, or thereafter on the date the O.rtifu:ates ate tendered for deliwry, purwmt to the terms set forth in the Notice of Sale and Bidding
lnatructions.
The uodersigned agrees to complete, exeaite, and <!Oliver to the City, at least oix busineS1 days prior to delivery of the Certificates, a certificate relating
to the "issue price• of the Certificates in the form and to the effect aoeompaoying the Notice of Sale and Bidding lnstru<:tlons, with web changes lhorelO
•• may be aocept&ble to the City.
We agree to prm'ide In writing the lnltiol noft'oring prices and other tenns, if any, to the Financial Advisor by the dose of the next hmin ... day
after the IIWllt'd,
Respectfully aubmilled,
By ____ ...,...,,.."e-..,....,----,-,,------
Autborized Repr,selllative
ACCEPTANCE CLAUSE
The .above aad furegoillg bid is llereby In all things accepted bY the City of Lubbock, Texas, subject to and in accordance with the Notice of Sale and
Bidding lnstnlctions, Ibis tile 13th day of Aug11st, 1992.
ATl'EST: Mayor
City of Lubboct, Ten,
1,
Honorable ~yor and City Council
aty of Lubbocl:, Tex.as
Members of the City Cooru:il:
OFFICIAL BID FORM
August 13, 1992
R,,ference ia made to your Official Statemem and Noti"" of Sale and Bidding In,truclions, dated July 20, 1992, of $7 ,.S65,000 CITY OF LllBBOClC,
TEXAS TAX AND WATERWORKS SYS'IEM (UMJTIID Pl.EDGE) REVENUE CERTIFICATES OF OIIUGATION, SERIES 1992, both of which
coll$1ltute a part hereof.
For your legally issued Certificates, a,i doscribed in said Noli"" of Sale and Bidding InstructioDll and Official Statement, ""'will pay you pat and accrued ioterut from date of iS8ue to dale of deliv;,ry to u,, plus a cssh premium of $ _______ for Certificates DIAIUring and bearlng intere,,t .u
fo!IOWB:
Prlnciplll Intetest Prlnciplll Interest
Matu!:Jtt Amount Rat& Maturi!:'!': Amount Rate
:HS-1993 $635,000 " ---2-IS-2003 $200,000 'Ji, ---
2-lS-1994 635,000 ---" 2-IS-2004 200,000 ---"
2·1S-199S 640,000 ---" 2-IS-2005 200,000 ---"
2-IS-1996 640,000 ---" 2-IS-2006 200,000 ---"
2-lS-1997 640,000 'Ji, ---2-lS-2007 200,000 ---"
Z-15-199& 475,000 ---" 2-15-2008 200,000 ---" 2-15-1999 47$,(XXJ ___ Iii 2-15-2009 200,000 ---"
Z-15-2000 475,000 ---" 2-15-2010 200,000 ---Ill
2-15-2001 47S,OOO ---" 2-IS-2011 200,000 ---"
2-15-2002 475,000 ---" 2-15-ZOIZ 200,000 ---Iii
Our calculation (which is not a part of this bid) of the interest <:0st from the above io:
Total Inten>st Cost
Less Premium
NET JNIEREST cosr
EPFECilVE INTEREST RATE
$. ______ _
$, ______ _
-------"
We are having the Certificstes of the following maturities insured by ---.,-,,-,-,-,-·•! a premium of$ --, aai-d~pN!IJllUDl--.--to_he_pat_'~d=b-,-th~e-Purcbruler_____ Any fees to_be_p_ai_d_k>_the __ rau_·~ng-age_n_ci-..
as a re&U!t of said insunnce will be patd by the Cjty.
The Initial Certificate shall be registered in the name of::-.:======"""r-:-c=-=:::=-:-v:='"'==· We will a,lvioe Tbe Depositoey Trust Company ("DTC") of n,gistnit.ion instructions 31. least five business dsy• pnor k> tiie date sel fur Initial Delivery.
A Cashier's Checlc of the =-=-,,..-".-:--,--:-:--c~-,,,....-,--Bank, -=,.,...,-----,-,-,:-;------=' in the amount of $1Sl,300.00, which repn,,;,,nts our Good Faith Deposit (i• •IIA•bed hereto) or (b.u been made available to you prior k> the opening of this bid), and is oubmitted in o!XO<daneo
with the terms as "'t forth in tbe Official Statement and Notice of Sale and Bidding lnstructioDll.
We agree to a,-.cept delivery of the Certificates utilizing the Book-Entey-Only System through DTC and maltb payment ror the Initial Certificate in
immediately available funds io the Cotp<lrate Trust Division, Nations&nk of Texas, N.A., Fort Worth, Tons, not later than 10:00 AM, CDT, oil
September 9, 1992, or thereafter on !he date the Certificates are tendered for delivery, pursusnt to the tums set forth in the Notice of Sale end Bidding
lnstruc:tions.
The uodemgned agrees to complete, execute, and deliver to the City, 31. least six business dsya prior to deliveey of the Certifioam., a certifioate relating
to the "iasue price" of the Certificates in the :form and to the •ffeet accompanying the Notice of Sale and Bidding Instniotions, with web ch,mge,s thereto as may be 11C<eptable k> the City.
We agree to provide In writlng the initial reol'l'ering prioo, and other terms, if any, to lh<' Financial Atl:risor by the clOS& of the next baslness day after the «wllrd.
Respectfully submitted,
By----,-,-,-~~-------Autborized Representslive
ACCEPfANCB Cul.USE
The above and foregoing bid l• hereby in all things acx:ept,,d by the City of Lubbock, Texas, subject to and in accordance with the Notice of Sale and
Bidding Instructions, this the 13th day of August, 1992.
ATI'EST: Mayor
Qty of Lubbock, Tens
'i
ISSUE PRICE CERTIFICATE
Toe undersigned hereby certifies with respect to the sale of $7,565,000 CITY OF LUBBOCK, TEXAS TAX AND
WATERWORKS SYSTBM (LIMITED PLEDGE) REVENUE CE!RTIF1CATES OF OBLIGATION, SERIES 1992 (the
•Certificates"):
1. The undersigned is the underwriter or the manager of lhe syndicate of underwriters which has purehued 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 lhe public of the Certificates of each maturity at the respective prices set forth below.
3. The initial offering price (expressed as a peroentageof 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 aold to the
public is as aet forth below:
Principal Offering Principal Offering
Amount Year of Price Amount Year of Price
Maturing ~ !~/Yield) Maturing Maturity !IQ'.ieldj
$635,000 1993 __ % $200,000 2003 ___ %
635,000 1994 __ % 200,000 2004 ___ ,..
640,000 1995 __ ,. 200,000 2005 ___ %
640,000 1996 __ % 200,000 2006 ___ %
640,000 1997 __ % 200,000 2007 ___ %
475,000 1998 __ % 200,000 2008 ___ %
475,000 1999 __ % 200,000 2009 ___ %
475,000 2000 __ % 200,000 2010 ___ %
475,000 2001 __ % 200,000 2011 ___ %
475,000 2002 __ % 200,000 2012 ___ %
4. The tenn •public,• as used herein, means persons other than bondhouses, brokers, dealers, and similar persons
or organimtions acting in the capacity of underwriters or wholesalers.
S. The offering prices described above rcllect 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 cue may be, (bave)(have
not) purchased bond insurance for the Certificates. The bond insurance, lf 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 tnmsactions
(including transactions in which a guarantor has no involvement other than as a guarantor). The pre3ent value of the
debt service savings expected to be reali7.ed 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 Wldersigned understands that the statements ma.de 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 excludabllity of interest
on the Certificates from the gross income of their owners.
EXECUTED and DELIVERED this _____ day of _____ _, 1992.
No Text
NEW ISSUE. Book-&ttry-Only
omcIAL STATEMENT
Dated July 20, 1992
In 1hc opinion of Bond Counsel, interest on the Certificllles will be excludable from arosa income for federal inoome lax p,rrpose• under oxilling
law, subject to the mallen described under "Tax Exemption• herein, Including 1hc •lt.cmativo miniltll1m tu, on eorporaticm.
Dated: August 15, 1992
$7,565,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
TAX AND WATERWORKS SYSTEM (LIMITED PLEDGE)
REVENUE CERTIFICATES OF OBLIGATION, SERIES lffl
Doe: February 15, as sbmm 1IEIAiw
lnten,at on the $7,S6S,oooc;iy of Lubbock, Texas (the "City•) Tax and W111eiworts Systc111 (Umited Pledge) Revenue Certific.ie. of Obligatioo,
Series 1992 ('Ille •Cortifiute1") will econie from the dated date u shown above and will be p•)'llble February lS and August IS of each year, •-mg February 15, 1993, and will be calculated on tho buia of• 360-<lay year of twelve 30-day l'.l!()lllha. Tho City int,,nds to utilize 1hc
Bool<-Entry-Oaly System of The Depo•itory Trw11 Company ("MC"), but reserves the right on ita behalf or on the behalf of MC to di&COt1!inue
sueh aystem. Such Book-Entry-Only System will aflecl the method and timing of payment end 1hc method of transfer (see "Certificet.c
Information• llook-Eotry..Only System").
Tbeao Certificates "°nstilllle direct obligations of tho C'tty, payable from a combination of (i) tho levy and eolle<:tlon of a direct and continuing
ad valon,m tax, within 1hc limiu prescribed by law, on all la:ubk property within the City, and (ii) a limited pledge of net n,vonucs of the City'•
Waterworks System, •• provided in 1hc ordinance authorizing the Certiticat.cs (the "Ordinance") (ace "Certif1C&t.c Information• Authority for
Issuance and Security for Certificates").
The initial Paying Agent/Registrar shall be tho Nations&nk of Texas, N .A., Fort Wotlh, Texas (see "Certificate Information -Paying
Agent/Registrar"). ,
Proceeds from the aslo of the Cortlficates wiU ho uocd lo pay contractual obli,eati0111 incurred for (i) land acquisition and lite improvement&
including Waterworb Syatem and Sewer System exteoaions and improvemeo!I in connection with eonslnlction of a Tex.as Departmeol of
Criminal Justice Cornctionsl Psychiatric Facility, [ii) Solid Waste Di,posal System improvemcnla, and (iii) profcaaional service•.
Amount
S 635,000
635,000
640,000
640,000
640,000
475,000
475,000
475,000
475,000
475,000
Maturity
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
MATURITY SCHEDULE
Amount
$200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
· Maturity 2003
2004
2005
2006
2007
200&
2009
2010
2011
2012
The C'lly rescrvCB the righl, at its option, lo redeem Certilicites having &lated maturitiea on and after February IS, 2003, In whole or in part
in principal amount& of $S,000 or any integrsl multiple thereof, on Febniary 15, 2002, or any date thon,sfter, at lbe par Vlllue thcn,of plus
accrued interest to the date fixed for redemption (aee "Certif,cate Information • Redemption of Cortificat.ca").
The pn,acntly outstanding lax eupported debt of the City ia rated • Aa" by Mondy'• Investors Service, Inc. ("Moody's") and "AA• by Stsnd.ard
& Poor'• Corporation c•s&P"). Request• for rating for the Ccrtificatea have been made lo both nting services (ace "Rali.n8••).
The Certificate• are offcn,d ,for delivery when, •• and if issued and received by lhe purchasers and eubjeet to the approving opinion of the
Attomoy Oeneral of the State of Teua and of Fulbright & Jaworski, Bond Counsel, Dallas, Texas. The legal opinion will be printed on the
Certificates <-Appendi>< C, "Form of &nd Counsel'• Opinion"). Delivery of the Cortif,cales is anticipated on or about September 9, 1992.
This Official Statement does not constitute an offer to sell Certijicales in any jurisdiclion lo any person lo whom it is unla,eful
10 make such offer in suchjurisdiclion. No dealer, salesman, or any other person has been authorized to give any informalion
or make any representalion, other than those contained herein, in connection with the offering of these Certificates, and if given
or made such information or representation must not be relied upon. The information and expressions of opinion herein are
subjecl to change wi.thout notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under
any circumstances, create any implicalion that there has been no change in lhe affairs of the City since the date hereef.
TABLE OF CONTENTS
OFFICIAL STATEMENT
Description of the Certificates • . . . • . • • • • • • 1
CITY ADMINISTRATION
Elected Officials •••.•.••••••••••.••.
Appointed Officials • • • . • . • . . . • • • • . . . .
Consultants and Advisors •••••..•......
3
3
3
SELECTED DATA FROM THE OFFICIAL
STATEMENT . . . . . . . . . . . . . . . . . . . . . 4
CERTIFICATE INFORMATION
Authority for Issuance . • . . . . . . . . . . . . . . 6
Security for Certificates • . • . • . . . . . . • . . . 6
Redemption of Certificates . . . . . . . . . . . . . 6
Book-Entry-Only System . • . • . . . . . • . • . . 6
Paying Agent/Registrar • . • . • . . . . . • . • . . 7
Transfer, Exchange and Registration . . . . . . . 7
Limitation on Transfer of Certificates Called for
Redemption . . . . . . . . . • . . . . . . . . . 8
Record Date for Interest Payment • • • • • • • • • 8
Use of Certificate Proceeds •••••• , • , . , • . 8
Sources and Uses of Funds
TAX INFORMATION
Ad Valorem Tax Law
Valuation, Exemptions and Debt Obligations ••
Taxable Assessed Valuations by Category ••••
Valuation and Funded Debt History .•.••.•.
Tax Rate, Levy and Collection History ..••.•
Ten Largest Taxpayers ... , •........ , ..
Tax Rate Limitation ....•••...•.•. , .•
Assessed Valuations, Tax Rates, Outstanding Debt
and Authorized But U nissued Bonds of
Overlapping Taxing Jurisdictions
DEBT INFORMATION
8
9
10
11
12
13
13
14
15
Debt Service Requirements • • • • . • • • • • • • • 16
Division of Debt Service Requirements . • . • . • 17
Estimated Direct and Overlapping Funded Debt
Payable From Ad Valorem Taxes. • . • . . 18
Interest and Sinking Fund Budget Projection . . . 19
Computation of Self-Supporting Debt
Waterworks System • . • . • . • • • • • • • • 19
Sewer System . . . . . • . • . • • • • . • . . • 20
Solid Waste Disposal System • • • • • • • . 20
Golf Course Facilities . . • . • • • • • . • . • 21
Authorized General Obligation Debt • . • . • . • . 21
Anticipated Issuance of Authorized General
Obligation Bonds and Other Obligations • . 21
Citizens Advisory Committee . . . . . • . . . . . . 21
State Revolving Fund ("SRF") Loan Program . • 22
2
Funded Debt Limitation 22
Other Obligations . . • • . . • . . . . . . . . . . . . 23
Pension Fund . . . . . . . . . . • . . . . . . . . . . 26
FINANCIAL INFORMATION
General Fund Revenues and Expenditures 27
Municipal Sales Tax History . . . . . . . . • • • • 28
Financial Policies • . . . . . . . . . . . . . . . • . .. 28
THE WATERWORKS SYSTEM 30
THE SEWER SYSTEM . . . . . . . . . . . . . . . . 32
THE SOLID WASTE DISPOSAL SYSTEM . . . 35
THE GOLF COURSE FACILITIES . . . . . . . . 37
OTHER RELEVANT INFORMATION
Ratings . . . . . . . . . . . . • . . . . . . • . • . . • 38
Tax Exemption . . . . • . . . . • . . . . . • . . . . 38
Tax Accounting Treatment of Discount
Certificates • . • • • . . • • • • . . . . . . . • 3 8
Litigation . . . . • • • • . • . • . • . . . . • • • . . . 3 9
Registration and Qualification of Certificates for
Sale. . . . . . . . . . . . . . . . . . . . . . . . 39
Legal Investments and Eligibility to Secure Public
Funds in Texas . . . . . • . • . . . . • . . . . 39
Legal Opinions and No-Litigation Certificate • • 39
Authenticity of Financial Data and Other
Information . . . . . . . . . .. . . . . . . . . 40
Financial Advisor . . . . . . . . . . . . . . . . . • . 40
Certification of the Official Statement • . • • • • . 40
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
here, the Financial Statements, and any addenda,
supplement or amendment hereto, are part of the Official
Statement.
Maggi• Toejo Mayor Pm Tom mil
c-.cilmembu, Dwiot I
T.1.P•-
Co!mell=mbcr, Diolriot 2
M.. J. •Buer Aderton •
Couneilmembcr, Diotrict 3
Maxlncc
Counci.tmember1 District4
8Yeon
2 y..,.
El.-1
May 30, 199%
CITY ADMINISTltATION
Term
Exp½, Oocypation
Moy, 1994
Moy,1994
Co-Publiahor, SoUlhWeot Dig"'1
May, 1996 ·
Randy Neugebauer
Councilmember, Dimicl 5
Electod
May 2, 1992
May, 1994 Preaident, Lubbook Lml ComP""Y mil Prm:ige H°"""'
Alex "Ty• Cwk
Councilmember, Dimict 6
Eleeu:d
May 30, l992
• Mr. Merton prcviowly ocm:,d u•a Councllmembecfor 6 yeara 1978-19'4.
Appointed Offlcliw
Name
Lany 1. Cwmingham
Bob C...
John C. R.os11:, Jr.
Ranetu,Boyd
1. Robert Ma..eogalo
Rlta P. Hannon
1.,,,_.. E. Bertnm.
CarroU McDoruild
David Elli,on
DonA. HAwkiml
LoonAM.u:.well
Rod Ellis
DonBridaen
City Manager
Deputy City Manager .·
City Attorney
Secreta.ry•Treuurer
Position
Aooilllllm City MMagct for P-UIIIXlcial Servic ..
A.,is!m,t City Manager for Public 11.r.ty ond S«viooo·
Ao,....,. City Manager fur I>evelopmeatSotvicco
As11.islanl City Manager fur Utilities
Asaie!anl City Monaser for Management Servi<:,.
Ditcctor of Wwr Utilitiea
Director of Cn,rtmner llervicea/l'ublie Relo~ons
Director of Buinees ltelatioosJEconomic DcveJopm.mt
Chief of Police
l6 y..,..
7Yean
14Yean
8Yeara
1oy....,
10 Yean 10 y..,.
3 Yeara I y...,
3y...,.
2Yean
2Yean 2y..,..
L«ttgthof
Empleyment
WilhCity
of uibboek
26 Yean
16 Years
14 y..,.
14Yiean
12 Yean
16Y..,..
22 Yeen
13 Ycon
l Year
5Yeoni
33 y...,.
8 y..,.
24y..,.
Comulting ~ for Lake Alon Henry • • • • . • . • • • • • • • • • • • • • •••.•••••••••••••••••••••••••••••••• Fn,eae mil Nichols, Inc.
Fort Worth, Teuo
C-l!ing E'nginun for Wastowakr Tn:atmont ond Dispoool Pro;.,,t • , .•. , , . . . . • . • • • . • • . . . • • • • . . • • • • . • . • • • • • . . . . • llld & Veatch
Dollas, Tex,.s
C-u.ltm,: Eugineen for Solid w..,,, Pro;-••.. , • . . • • . • • . • . • • . . • • • . • • . • • • . . •..........•••......••• HDR &gin..,., me.
Dullae~ Texas
Auditon .•••••• , • , ••••• , •••.•••• , ••••••••••••• , ••••• , • . ••• , •• , •.• , ••.••••• , •••• , • • •••• , Coop,,ro & l,ybrand
. Lubbock, T_,.
Bood Counsel ••• , , ..•••.••.•. -. • • ••• , • , • , •••••• , •••••••• '. ••...•.•••.•••••••• , ••• , , •• _ •••• Fulbright& 1awonli
. . Ds1JM • T c:xu.
Fmancial AdvisM .•• , ••••• , , , . , .•••••••••.•.••••...•.•....• , •••••••••• , , . . , •• , ••••• , ••• .Fint Southweot Co-
Mr. I. Robert Maaseagale
Aooi<tant City Manager for P-manclal Servio,s
Cily ofl.rabboek
P.O. llox:ZOOO
Lubbool:, TX 194S1
(106) 767-2015
or
Mr,1ooW.Smnh
F'nt South.......t Coml""'Y
P.O. Box 27.54 '
AbilMe, TX 19604-2154
(915) 672-8432
3
0.Uas mil Abilene, Tu ..
SELECTED DATA FROM THE OFFICIAL STATEMENT
The selected data on this page is subject in all re11pects lo the more complete information and definitions contained or
incorporated in this Official Statement. The offering of the Certificates lo 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 lo 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 lo the Certificates, a description of the revenue base and other pertinent data, all as more fully described herein.
The Issuer ..•.•................
The Certificates . . . . . . . . . . . . . . . . . .
Security for the
Certificates . . . . . . . . . . . . . . . . . . . .
Optional Redemption ............. .
Tax Exemption ....
The City of Lubbock, Texas is a political subdivision located in Lubbock
County opemting 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. Each 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 es.ch even year. Toe 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 1990 U.S. Census population was 186,206 (1980 U.S; Census -
177,517). Toe City is approximately 104 square miles in area. Texas Tech
University, a major State institution, is located in Lubbock.
Toe Certificates are being issued in the principal amount of $7,565,000
pursuant to the general laws of the State of Texas, particularly Subchaprer
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 lnfonnation -Authority for Issuance").
The Certificates cofll!titute direct obligations of the City payable from a
combination of (i) the levy and collection of a direct and continuing ad
valorem tax, witliin the limits of the Jaw, on all taxable property within the
City, and (ii) a limited pledge of net revenues of the City's Waterworks
System (see "Certificate Information -Security for Certificates").
The City reserves the right, at its option, to redeem Certificates having stated
maturities on and after February 15, 2003, in whole or in part, on
February 15, 2002, or any date thereafter, at the par value thereof plus
accrued interest to the date fixed for redemption (see "Certificate Information
-Redemption of Certificates").
In the opinion of Bond Counsel, the interest on the Certificates will be
excludable from gross income for purposes of federal income tax purposes
under existing Jaw, subject to the matters described under "Tax Exemption•
herein, including the alternative minimum tax on corporations.
Use of Certir,cate Proceeds . . . . . . . . . . Proceeds from the sale of the Certificates will be used to pay contractual
obligations to be incurred for (i) land acquisition and site improvements
including Waterworks System and Sewer System extensions and
improvements in connection with construction of a SSO bed Texas
Department of Criminal Justice Correctional Psychiatric Facility, (ii)
improvements to the City's Solid Waste Disposal System, and (Iii)
professional services.
Payment Record . . . . . . . . . . . . . . . . . Toe City has never defaulted.
4
Selected Issuer Indices
Ratio
General
Per Ca.pita Purpose
Oeneml General Funded
Fiscal Per Capita Purpose Purpose Debt To
Year Estimated Taxable Taxable Funded Funded To.xable % of
Ending City Assessed Assessed Tax Tax Asaessed Total Tax
~ Po!!!!lation V1lyation Valuation ~ill Debt Valuation Collections
1988 190,017(7/ $4,476,572,268 S 23,SSB $39,670,291 s 209 0.89$ 98.94%
1989 191,403(7/ 4,567,387,737 23,863 43,066,998 225 0.94% 98.98%
1990 186,2()6('1 4,645,914,710 24,950 39,179,057 210 0.84% 99.10%
1991 187,137(2) 4,718,788,593 25,216 42,474,916 227 0.90% 99.42%
1992 187,493(2) 4,741,607,780 25,290 42,951!,202 (") 229<"> 0.91%1"> 96.17%<JJ
1993 187,493(2) 4,667,519,371 24,1!94 38,990,305 ("l 208(<) 0.84%1"> N.A.
(1) Excludes self-supporting general obligation debt (see "Valuation, Exemptions and Debt Obligations"; "Valuation and Funded
Debt History" and "Computation of Self-Supporting Debt").
(2) Source: Estimates by City of Lubbock, Texas.
(3) 1990 U.S. Census.
(4) Anticipated.
(S} Collections for part year only, througbS-31-92.
s
CERTIFICATE INFORMATION
Authority ror Issuance
The Certificates are being issued pursuant to the Cf>nstitution 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 an Ordinance passed
by the City Council.
Security for Certuicates
All taxable property within the City is subject to a continuing direct annual ad valorem tax levied by the City sufficient to
provide for the payment of principal of and interest on all obligations payable in whole or in part from ad valorem taxes, which
tax must be levied within limits prescribed by law. Additionally, the Certificates are payable from and secured by a limited
pledge of surplus net revenues (not to exceed $2,500 during the entire period the Certificates or interest thereon remain unpaid)
of the City's Waterworks System as provided in the Ordinance authorizing 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.
Redemption or Certuicates
The City reserves the right, at its option, to redeem Certificates having stated maturities on and after February 15, 2003, in
whole or in part in principal amounts of $5,000 or any integral multiple thereof, on February 15, 2002, or any date thereafter,
at the par value thereof plus accrued interest to the date fixed for redemption. If less than all of the Certificates are to be
redeemed and if less than all of a maturity is to be redeemed, the Paying Agent/Registrar shall determine by lot the Certificates,
or portions thereof, within such maturity to be redeemed.
Not less than 30 days prior to a redemption date for the Certificates, 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 Certificate 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 certificateholder.
Book-Entry-Only System
The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the 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 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 of Section 17A 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 organiutions. 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 Certificates under the OTC system must be made by or through Direct Participants, which will receive a credit
for the Certificates on DTC's records. The ownership interest of each actual purchaser of each Certificates ("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 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.
6
To facilitate subsequent transfers, all Certificates deposited by Direct Participants with DTC an: registered in the name ofDTC'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. OTC has no knowledge of the actual Beneficial Owners ?fthe Certificates; OTC's n:oords
reflect only the identity of the Direct Participants to whose accounts such Certificates are credited, which may or may not be
!he Beneficial Owners. The Participants will remain responsible for keeping account of their holdings on behalf of their
customers.
Conveyaru:o of notices and other communications by OTC 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 !hem, subject
to any statutory or regulatory requirements as may be in effect from time to time.
Neither OTC nor Cede & Co. will consent or vote with respect to the Certif,eates. Under its usual procedures, OTC 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 paymenui on the Certificates will be made lo DTC. DTC'• practice is to credit Direct Participants•
aecounts on payable date in accordance with their respective holdings shown on DTC's records unless OTC has reason to believe
that it will not receive payment on payable date. Payments by Participants to Beneficial Ownen will be governed by standing
instructions and customary practices, tu! is the ease with securities held for the accounts of customers in bearer fonn or registered
in •street name•, and will be responsibility ofsuch Participant and not of DTC, the Paying Agent/Registrar or the City, subject
to any statutory or regulatory requiremenbi as may be in effect from time to time. Payment of principal and interest to OTC
is the responsibility of !he 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.
OTC may discontinue providing its services as seou rities depository with respect lo the Certificates at any time by giving
reasonable notice to the City. Under sudt 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 us of the system of book-entry transfers through OTC (or a successor securities depository).
In thst event, Certificates will be printed and delivered.
Use of Certain Terms in Other Sectk>ns of thu Official Slatemeftl. 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 Order will be given only to DTC.
Information concerning OTC 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 Underwriters.
Paying Agent/Reghtrar
The initial Paying Agent/Registrar is NationsBank of Texas, N .A., Fort Worth, Texas, In the Ordinance the City retains the
right to replace the Paying Agent/Registrar. The City covenants to maintain and provide a Paying Ag~gistrar 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.
Transfer, Exchange and Registration
In the event the Book-Entry-Only System should be discontinued, the Certificates may be transferred and exchanged on the
registration boob of the Paying Agent/Registrar only upon .presentation and summder 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 fonn on the Certificate or by other instrument of transfer and assignment acceptable to the
Paying Agent/Registrar. A new Certificate or Certificates 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 designcc. To the extent possible, new Certificates issued in an
7
exchange or transfer of Certificates will be delivered to the registered owner or assignee of the registered owner in not more
thiln 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 fonn 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 Certificate or Certificates surrendered for exchange or
transfer.
Limitation on Transfer or Certif"1CBtes Called ror Redemption
Neither the City nor the Paying Agent/Registrar shall be required to transfer or exchange to an assignee of the owner of the
Certificates any Certificate called for redemption, in whole or in part, within 45 days of the date fixed for redemption; provided,
however, such limitation of transfer shall not be applicable to an exchange by the registered owner of the uncalled balance of
a Certificate.
Record Date ror 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 or Certif1CBte Proceeds
Proceeds from the sale of the Certificates will be used to pay contractual obligations to be incurred for (i) land acquisition and
site improvements including Waterworks System and Sewer System extensions and improvements in connection with construction
of a SSO-bed Texas Department of Criminal Justice Correctional Psychiatric Facility, (ii) Solid Waste Disposal System
improvements, and (iii) professional services.
Sources and Uses or Funds
The construction program will be funded approximately as follows:
Sources:
Proceeds from Sale of Certificates
Uses:
Estimated Cost of land acquisition and site
improvements including Waterworks System and
Sewer System extensions and improvements
in connection with construction of a 550-bed
Texas Department of Criminal Justice Correctional
Psychiatric Facility
Estimated cost of Solid Waste Disposal System
improvements
Total
* Includes professional services and costs of issuance.
8
$7,565,000
$4,000,000
3,565,000
$7,565.000 *
TAX INFORMATION
Ad Valorem Tax Law
The appraisal of properly within the City is the responsibility of the Lubbock Central Appraisal District. . Excluding agricultural
and open•space land, which may be taxed on lhe basis of productive capacity, lhe •Appraisal District is required wider lhe
Property Tax C-Ode to appraise all p~ within the Appraisal District on the basis of 100'6 of its market value and ·is
prohibited from applying any assessment ratios. The value placed upon property widtln the Appraisal District is subject lo
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 properly within lhe City by petition filed widi 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 c.:rtain exemptions from property taxes, lhe
valuation of agricultural and open--spac.: lands at productivity value, and the exemption of eerWn personal property from ad
valorem taxation. '
Under Section 1-b, Amcle VIII, and State law, lhe governing body of a political subdivision, at its option, may also grant:
(1) An exemption of not less than $3,000 of the market value of th.eresidencehomestead of persons6S 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.
State law and Section 2, Article VIII, mandate an additional property tax exemption for disabled veterans or th.e surviving spouse
or children of a deceased veteran who died while on active duty in lhe armed forces; the exemption applies to either real or
personal property wilh the amount of assessed valuation exempted ranging from $1,500 to a maximum of $3,000.
Amcle VIII .provides !hat 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 timbe. production, may elect to have such
property appraised for property taxation on the ~• of its productive capacity. The same land may not be qualified under both
Section 1-d and 1-d·l.
Nonbusiness personal property, such as automobiles, boats or light trucks, are exempt from ad valorem taxation unless the
governing body of a political subdivision elects to tax this property.
Amcle VIII, Section 1-j of the Texas Constitution provides for "fn,eport 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 lheceafter unless
action to tax such propeny was taken prior to April 1, 1990. Decisions to continue the tax may be reveceed in the future;
decisions to exempt freeport property are not subject to reversal. · The City has taken action to tax freeport property.
The City gnms an exemption lo lhe market value .;r the residence homestead of persons 6S years of age or older of $HS, 700;
lhe disabled are granted an exemption of $10,000. · ·
The City has not granted an additional exemption of up to 20 % of the market value of residence homesteads; minimum
exemption .of $5,000.
The City does not tax nonbUllllless vehicles; and the Lubbock Central Appraisal District collects taxes for the City of Lubbock.
9
Valuation, Exemptions and Debt Obligations
1992 Marlcet Valuation Established by Lubbock Central Appraisal
District
Less Exemptions/Reductions at 100% Marlcet Value:
Residence Homestead (Over 65 or Disabled)
Disabled Veterans Exemptions
Agricultural/Open-Space Land Use Reductions
Value lost because property is exempted from taxalion under the
Property Redevelopment and Tax Abatement Act "'
Property Under Protest'~
1992 Taxable Assessed Valuation
City Funded Debt Payable From Ad Valorem Taxes: '"
General Obligation Debt (as of 6-15-92) <•>
The Certificates
Less Self-Supporting Debt: "'
Waterworks System General Obligation Debt
Sewer Sy1tem General Obligation Debt .
Solid Waste Disposal System General Obligation Debt "'
Golf Course General Obligation Debt
General Purpose Funded Debt Payable From Ad Valorem Taxes
Interest and Sinking Fund (as of 6-15-92)
$
$
$
170,811,066
3,415,191
33,555,206
5,034,673
72.548
124,303,752
7,565.000
34,665,883
48,929,386
4,680,281
6~5,000
S 4,880,408,055
212,888 684
S 4,667,519,371
s
$
$
131,868,752
88,910,550
42,958,202
1,422,711
Ratio Total Funded Debt to 1992 Taxable Assessed Valuation ................................... 2.83%
Ratio General Purpose Funded Debt to 1992 T8'Ulble Assessed Valuation ............................ 0.92%
1992 Estimated Population---187,493 l1l
Per Capita 1992 Taxable Assessed Valuation -$24,894.37
Per Capita General Purpose Funded Debt -$229.12
(I) Article 1066f, VTCA, permits granting of tax abatements for qualifying businesses; the City has entered into one such agreement
with McLane Foodservice-Lubbock, a division of McLane, Inc., Temple, Texas, an institutional food service distributor. The
abatement, which began in the 1988 tax year, covers McLane's improved real property in the City of Lubbock. The contract
provides for the agreement to expire when McLane Foodservice receives $770,000 in total tax abatement relief from all of the
participants (collectively) or ten years, whichever comes first from date of execution, June 23, 1986; other participants in the
abatement include Lubbock County, Lubbock County Hospital District, Lubbock Independent School District and the High Plains
Underground Water Conservation District No. I. Market value of the property is $6,0IS,985 and the taxable value of the property
after abatement is $981,312 resulting in an abated value of SS,034,673.
(2) Market valuation of property under protest on date of certification; final market valuation to be added to tax rolls when settled.
(3)
(4)
The statement of indebtedness does not include the outstanding $39,234,965 Electric Light and Power System Revenue Certificates
as these bonds are payable solely from the net revenues of the System. The statement also does not include outstanding $625,000
Airport Revenue Bonds, as these bonds are payable solely from gross revenues derived from the City of Lubbock Airport. The
Waterworks System and the Sewer System are unencumbered with Revenue Bond Debt.
Includes Sl,6SS,000Combination Tax and Sewer System Subordinate Lien Revenue Certificates of Obligation, Series 1991 (the
"1991 Sewer System Certificates"), in process of delivery to the Texas Water Development Board ("lWDB"); proceeds are being
used to pay costs of the "Project A' segment of the City's major wastewater treatment plant improvement program. Also includes
$34,520,000 Combination Tax and Sewer System Subordinate Lien Revenue Certificates of Obligation, Series 1992 (the "1992
Sewer System Certificates") delivered to TWDB on June 8, 1992, the proceeds to pay costs of the Project "B" segment of the
wastewater treatment plant program. Debt service on the 1991 and 1992 Sewer System Certificates is and will be provided from
net revenues of the Sewer System and they are included in "Self-Supporting Debt", above. See "State Revolving Fund ("SRF")
Loan Program".
(S) See "Computation of Self-Supporting Debt".
(6) Includes $3,565,000 principal amount of the Certificates.
(7) Source: City of Lubbock, Texas.
10
Taxable Assessed Valuations by CatfROl"Y Taxable Al!l!mised Value for Eim!I Y!=![ 13lded ~tcmll!l: ;t!l, 1993 1992 1221 %of '5 of '5 of Cateeoa Amount ~ &noun1 ....li!!!L Amount Total Real, RNidential, Singlo-Family $ 2,479,218,812 50.80% $2,449,828,200 49.49% $ 2,413,925,206 48.95% Real, Residential, Multi-Family 304,357,639 6.24,ii 304,256,344 6.15% 313,170,381 6.35% Real, Vacanl Lotsfl'fflC!s 107,678,443 2.21% 111,914,454 2.26% 117,839,348 2.3911 Real, Acreage (Land Only) 47,958,020 0.98'1i 48,816,013 0.98% 52,453,590 1.06% Real, Flltl!I and Ranch Improvements 14,042,657 0.29% 13,063,630 . 0.26% 13,508,943 0.27% Real, Commercial and Industrial 1,011,377,194 20.72% 1,073,(,02,333 21.69% 1,076,715,771 21.8411 Real, Oil, Gas and Other Mineral Rcaerves · 24,859,646 0.51 % 25,638,500 o.m, 22,182,456 0.45% Real and Tangible Personal, Utilitieo 150,001,444 3.07% 147,789,832 2.98% 153,608,032 3.12\'6 Tangible Personal, Commercial and Industrial 717.976,885 14.71% . 7SS ,234,901 IS.26% 745,511,197 15.12% Tangible Personal, Other 7,746,728 0.16% 7,363,639 0.15% 6,360,698 0.13% Real Property, Inventory <•> IS, 122,587 _QJ_,lll 12,7~2.249 0.26% · 15,746,173 ....9,ll% Total Appraised Value Before £:,;emptions $ 4,880,408,0SS 100.00'6 $ 4,950,267,095 100.00% $ 4,931,021,795,;, 100.00% Less: Total Exemptions/Reductions m.1s§.~ ~l,659,315 212,233,~ Tllllble Assessed Value $ 4,6fp,s19,m s 4.741.f,07.780 s 4.71!\.788.S93 Taxable Aoorai!!!! V!!Jye (:or Fim!! l'.w 13ldod ~embg:;tg, 1990 1989 % of % of Cat~o: amount Total Amount -121!!1_ -Real, Residential, Single-Family $ 2,383,736,852 49.17% $ 2,346,063,915 49.30% -Real, Residential, Multi-Famjly 319,554,804 6.59% 331,959,071 6.98% Real, Vaeant Lots/Tnicts 114,489,842 2.36% 100,449,123 2.11% Real, Acreage (Land Only) 49,704,917 1.02% 68,423,836 1.44% Real, Flltl!I and Ranch Improvements 21,391,576 0.44% IS,765,945 0.33% Real, Commercial and Industrial 1,063,031,1\42 21.93% 1,024,709,193 21.54% Real, Oil, Gu and Other Mineral Reserves 17,009,395 0.35% 13,059,266 0.27% Real and Tangible Personal, Ulilitieo 153,052,116 3.16% 147,145,068 3.09% Tllllgible Pononal, Commercial and Industrial 696,846,104 14.3711, 680,408,987 14.301', Timgil!lo Personal, 0th« 9,805,356 0.20% 12,548,767 0.26% Reel Property, Inventory (II l2,2~§.211 _Ml% 1s,:w.212 ~% Total Appraised Value Before £:,;emptions $ 4,848,359,781 100.00% $ 4,758,811,083 100,0011 Less: Total &ernptionll/Reductions i02,4~~.071 ~1423~ Taxable Assessed Va.lllO § 4164519!4,Zl!l i 41:1Js1.m (I) Residential inventory properties in tho hands of developers or builders; each group of properties in this wegoiy is appraised on the basis of its value u a whole as a we to snother developer or builder. This category initiated in 1998. · {2) Jncludei sn audited adjustment of $6,919,621 in taXable values. Note: Basis of -•rnent for 1111 years is 100% of appraised (market) value. Taxable properties are revalued each year.
Valuation and Funded Debt History
Ratio
General Oeneral
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
~ Pol?!!l!!i2D (IJ Valuation l2I ~rcaw o[}'.ear <ll Vl!l!!atioa Per Capita
1983 181,500 $3,145,952,586 $ 17,333 s 46,653,756 1.48% $ 257
1984 182,103 3,233,722,496 17,758 47,257,744 1.46% 260
HISS 1117,629 3,764,763,644 20,065 43,320,601 1.15% 231
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 42,474,916 0.90% 227
1992 187,493 4,741,607,780 25,290 42,958,202 ("J 0.91% 229 ("J
1993 187,493 4,667,519,371 24,894 38,990,305 (4) 0.84%,("J 208 ("J
(1) Source: City of Lubbock, Texas, except 1990 i.s U.S. Census.
(2) Basis of assessment for all years 100% of,/narket 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 i.s:
Oeneral
Purpose
Funded Funded
Fiscal Tax Debt Less: Tax Debt
Year Outstanding Self-Supporting Outstanding
Ending at End Funded Tax at End
~ !l{Yar Debt of Year
1983 $ 81,500,000 $ 34,846,244 $46,653,756
1984 89,180,000 41,932,256 47,247,744
1985 82,535,000 39,214,399 43,320,601
1986 79,889,070 40,040,388 39 ,848,6112
1987 78,279,070 40,739,059 37,540,011
1988 82,958,752 43,288,461 39,670,291
1989 86,898,752 43,831,754 43,066,998
1990 79,088,752 39,909,646 39,179,106
1991 95,783,752 53,308,836 42,474,916
1992'"'. 131,868,752 88,910,550 42,958,202
1993<'1 122,933,752 83,943,447 38,990,305
Note: For aU years Self-Supporting Debt includes Waterworks System and Sewer System General Obligation Debt. 1988-1993
includes Oolf Course General Obligation debt. 1991 and 1993 includes Solid Waste Disposal System General Obligation Debt.
See "Valuation, Exemptions and Debt Obligations•.
(4) Anticipated; includes the Certificates.
12
Tax Rate, tevy·and Collection History
F1SCal
Year Distribution
Ended Tax General Economic lmerest and % Current %Total
...2.:2!L _£!!!L J:!!!!L I!evel!!l!!!:!!!m Sinking Fund Tax~ Collections Collections
1983 $ 0.61 $0.2791 $0.0S $ 0.2809 $19,190,311 92.94% 97.30%
1984 0.61 0.2230 0.05 0.3370 19,725,707 95.32% 97.94%
1985 0.61 0.210S 0.05 0.3495 22,966,969 93.76% 95.92%
1986 0.60 0.2553 0.05 0.2947 24,077,408 94.16% 96.60%
1987 0.60 0.2762 0.05 0.2738 26,448,985 95.15% 98.85%
1988 0.61 0.2767 0.05 0.2833 27,303,606 95.94% ·98.96%
1989 0.64 0.3171 0.05 0.2729 29,231,282 96.01% 98.98%
1990 0.64 0.3314 o.os 0.2586 29,733,854 96.15% 96.10%
1991 0.64 0.3468 0.03 0.2632 30,200,247 96.58% 99.42%
1992 (2) 0.64 03154 0.03 0.2346 30,397,225 94.81 %'" 96.17%01
(I) Collections for part year only, through 5-31·92.
(2) The Cif:Y' ~ 1992 tax rate for Fiscal Year' Ending 9-30-1993 will be finally levied on September 1 0, 1992 •. The pl""liminary
1992 tax rate used for budget pla.nning is $0.64 ($0.4056 • General Fund; $0.03 -Economic Development; $0.2044 -
Interest and Sinking Fund).
Property within the City is assessed.; of January 1 of each year (except for business inven~ which may, at 1he option of the
wpayer, be assessed as of September l); taxes become due October 1 Qf the same year, and become delinquent on February 1
of the following year. Split payments are not pe:rmitted. Discounts are not allowed. Taxpayers 65 years of age or older are
permitted by State law to pay taxes on homesteads in four fastallments with the first due on February 1 of each year and the
final installment due on August l.
Charges for penalty and interest on the unpaid balance of delinquent taxes are made as follows:
Month Pen.altv ·. Interest Total
February 6% 1% 7%
March 7% 2% 9%
April 8% 3% 11%
May 9\!'o 4% 13%
lune 10% Hi 15%
July 12% 6% 18%
After July, penalty remains at 12%, and interest increases at the rate of 1 'K, each month. In addition, if an account is delinquent
in July, a 15% attorney's collection fee is added to the total tax penalf:Y and interest charge.
Ten Largest Tu:payers
Name of Taxpayer
Texas Illll!rUments Incorporated
South Plains Mall
Southwestern Bell Telephone Company
Southwestern Public Smvice Company
Plains Co-op Oil Mill
First N alional. Bank
Farmers Co-op Compress
H. A. Sessions
Fleming Companies
Energas Company
Nature of Property
Electronics Manufacturer
Regional Shopping Mall
Telephone Ulilily
Electric Utility
Agricul!Ural Processing
Bank
Cotton Compress
Commercial Property and Other Real Estate
Wholesale Groceries
Gas Utility
13.
1992
Taxable
Assessed
Valuation
$ 79,873,471
72,148,441
69,274,591
41,871,856
20,985,250
18,936,523
16,793,487
15,384,330
14,516,286
11,963.640
£361,747.875
% of Total
Taxable
Assessed
Valuation
1.71%
1.55%
1.48%
0.90%
0.45%
0.40%
0.36%
0.33%
0.31%
~
7.751'
Tax Rate Limitation
All taxable property within the City is subject to the assessment, levy end collection by th.e City of a continuing, direct annual ad valorem
tall sufficient to provide for the payment of principal of end interest on 1111 ad valorem l8i deb! within the limits prescribed by law.
Anicle XI, Section 5, of the Texas Constitution is applicable to the City, and limits its maximum ad valorem tax rate to $2.SOper $100
Assessed Valuation for all City purposes. The City operates under a Home Rule Charter which adopts the constitutional provision,.
By each September l or as soon thereafter u practicable, the City Council adopts a lax rate per S 100 W<ahle value for the current year.
The tax rate consists of two componenlB: (I) a nm: for funding of maintenance and operation expenditures, and (2) a rate for debt
service.
Under the Tlllt Code:
The City must annually calculate and publicize its 'effective tax rate• and 'rollback tall rate'. The City Council JIIRY not adopt a tsx
rate that exceeds the lower of the rollback tsx rate or 103 ,i. of the effective tsx rate until it has held a public hearins on the proposed
increase following notice to the taxpayers end otherwise complied with the TIil!. Code. If the adopted lllX 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 tsx rate
adopted for the followin,8 year to the rollback tax rate.
'Effective tsx rate• means the rate that will produce lust year's total tax levy (adjusted) from this year's total llll<able values (adjusted).
• Adjusted' means lost values are not included in the clllculatlonoflast 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 l,:vy (adjusted) from lhis year's vslues
(adjusted) from this year's values (adjusted) mul1iplied 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 Tu Code provides that certain cities and counties in the State may submit a proposition to the voters to authorize an additioruil one-
. half cent sales lax. on retail sales of taxable items. IC the, additional lllll is levied, the effective tax rate and the rollback llll!. rate
calculations re required to be offset by the revenue lb.at will be generated hy the sales lllX in the current year. The City does not collect
the addition.al one-half cent sales tax.
R.eti:n::nce is made to the Tlllt Code for definitive requirementB for the levy and collection of ad valorem taxes and the colculation of
the various defined rates.
14
Assessed Valuations, Tax Rates, Olltstanding Debt ud Authorized But Unlssued Bonds of Overlapping Tumg Jurisdictions
1991
Taxable
Assessed
Taxing Jurjsdiction Valuation m
Lubbock Independent School District $ 4,349,847,667
Lubbock County 5,684,516,639
Lubbock County Ho&pilal District S,687,666,161
High Plains Underground Water Conservation
District No. I S ,687 ,666, 161
Lubbock-Cooper Independent School District 158,288,407
Frcnship Independent School Duitrict 430,276,751
Roosevelt Independent School District 108,494,241
Idalou l.ndependent School District 112,247,470
New Deal lndependeot School District 81,340,230
County Education District No. 6 .S,OlS,220,277 Ul
(I) The 1992 Taxable Assessed Valuations of these Taxing Jurisdictloos are:
Taxing Jurisdictions
Lubbock Independent School District
Lubbock County
Lubbock County Hospital District
1991
Tu
&ts
$ 0.5300
0.1763
0.1095
0.0074
0.4980
0.3900
0.4300
0.3400
0.3333
0.7820
Outstanding
Tu Supported
DebtA.s of
i:15-92
$ 65,674,989
5.230,000
-0-
-0-
5,430,000
27,330,000
-0-
2,960,000
1992
Taxable
A.sseued
Valuation
-0-
-0-"'
High Plains Underground Water Conservation District No. I
Lubbock-Cooper Independent School District
$ 4,257,707,757
S,599,055,116
S,599,037,925
5,599,037,925
IS9,075,131
440,608,163
106,998,422
109,600,484
80,272,348
Freoship Independent School District
Roosevelt Independent School District
Idalou Independent School Duitrict
New Deal Independent School District
County Education District No. 6
*Freeport property exemption applicable to County Edw:ation Districts. in 1992.
1992 Tu Rates will not be eSIJlblished until late August or September.
4,904,599,413*"'
AUlhorized
But UniBSued
Debt.tu of
6-lH2
$ 100,000
S00,000
-0-
-0-
-0-
-0-
-0-
-0-
-0-
..C).. a,
(2) Assessed Valuation is for the school districts in County Education Di.strict No. 6 that are usigned to Lubbock County by the Central
Education Agency (Lubbock, Frensbip, Idalou, Lubbock-Cooper, Nc,w Deal, Roosevelt, ShalloWBicr and Slaton). County Edueation
District No.' 6 is comprised of Gailleil, Borden, Daw&0n, Lubbock, Lynn, Terry and Yoakum Counties. A county education district
does not have the authority to issue debt, but levies an operation and maintenance, tax countywide for distribution to all school
district& located in the county or assigned to the county by the Central Education Agency.
Sources: "Texas Municipal Reports• published by the Municipal Advisory Council of Texas and the Lubbock Central Appraisal Dii&trict.
l5
;: Debt Serrice Reqaiftmmts l'iseal Yeu Endill8 Nil 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 :zoos 2006 2007 2008 2009 2010 2011 2012 2013 2014 Ouutao~illll Debt '" The Cstificat ... "' Combined Princil!!I Interest Tolal fl:incil!al ml!il!S Tdlal Regnlmnenta $ 8,675,000l» $ 7,173,934 $ 15,848,934 $ $ s $ 15,848,934 8,300,000 8,341,763 16,641,763 635,000 452,972 1,087,972 17,729,735 8,380,000 6,877,210 IS,257,210 635,000 413,284 1,048,284 16,305,494 9,630,000 6,229,749. 15,859,749 640,000 373,440 1,013,440 16,873,189 9,670,000 5,592,486 15,262,486 640,000 333,440 973,440 16,235,926 9,374,434 S,161,817 14,536,251 640,000 . 293,440 933,440 IS,%9,691 9,270,076 4,603,747 13,873,823 475,000 258,596 733,596 14,607,419 9,046,493 4,044,171 13,090,664 475,000 228,908 703,908 13,794,572 6,524,986 5,504,942 12,029,928 475,000 199,2.20 674,220 12,704,148 6,134,442 4,662,221 10,796,663 475,000 169,532 644,532 11,441,195 5,718,639 3,630,595 9,349,234 475,000 139,844 614,844 9,964,078 5,539,682 2,830,103 8,369,785 200,000 118,750 318,750 8,688,.S3S 4,515,000 2,041,752 6,556,752 200,000 106,250 306,250 6,863,002 4,515,000 1,757,964 6,272,964 200,000 93,750 293,750 6,566,714 4,520,000 1,477,326 5,997,326 200,000 81,250 281,250 6,278,576 4,520,000 1,197,704 5,717,704 200,000 68,750 268,750 5,986,454 3,875,000 943,404 4,818,404 200,000 56,250 256,250 5,074,654 3,540,000 727,'>14 4,267,914 200,000 43,750 243,750 4,511,664 2,975,000 542,738 3,517,738 200,000 31,250 231,250 3,748,988 2,980,000 374,376 3,354,376 200,000 18,750 218,750 3,573,126 1,815,000 240,213 2,055,213 200,000 6,250 206,250 2,261,%3 1,730,000 142,725 1,872,725 1,872,725 1,732,000 ~7,515 1,m.~1~ I.ZZZ,ll~ $ 132,978,752 $ 74,146,429 $ 207.rlS1181 $ 7,565,000 s 3,487,676 s 11,os2,67§ s m.m,ssz Interest on the Cellifie•ICII has been calculated et 6.25 \Iii for purposes or illu1!1rotion. (I) Includes $1,655,000 1991 Sewer Synem Certificates and $34,520,000 I 992 Sewer Sylllem Ccl'lificllleB (""' "Valuation, Exemplionll and Debt Obligations• and •state Revolving Fund (•SRF") Lean Program•). (l) Thia $8,675,000principal paid on February IS, 1992. (3} $4,000,000 principal amonnt of the Cel'lifieates will be treated by the City as Genel'III Purp011e General Obligation Debt with the proceeds to be used fur larulaequisition and site improvement• in connection with construction or a Texu Depaltmenl of Criminal Jnstioe Correctional Psychiatric Facility. The remaining $3,565 ,OOOprincipal amount of the Certificates is being issued fur Solid Wane Dioposal Syotem improvements and will be lrellted by the City u self-.-uppolling Solid Waste Disposal System General Obligation Debt; due to theexpoctedlift> of these improvements the City has assigned the $3,565,000principal a maturity of$435,000each year 1993 and 1994, $440,000each year 1995 through 1997 and $275,000cach year 1998 through 2002. The $4,000,000Genera!Purpooe principal boa been assigned a marurity of $200,000 each year 1993 through 2012. These allocation• have been included in the calcnlation of "Division of Debt Service luquirementa•. following. \Iii of Principal RetiR<I 33.S9lli 64.l0'1i 82.669' 96.lOlli 100.00lli = f'l'l = 1· ; i
Division or Debt Service Requirements Fiscal Leu; Less: Less: Less: Year Waterworlc:s System Sower System Solid Waste Disposal Golf Course Facilities General Purpose Ending Combined General Obligation General Obligation General Obligation General Obligation General Obligation J.-::J!L R!l!!l!irsments l!,£9uirements R!l9Uirements Reouiremgits R!!9Uiremenll! B!l!l!!mm!i 1992 $ 15,848,934 $ 6,235,314 s 2,167,832 $ 226,691 $ 84,018 $ 7,135,079 1993 17,729,735 5,470,414 4,439,741 840,101 85,642 6,893,837 1994 16,30.5,494 5,103,228 4,102,879 803,286 82,043 6,214,058 1995 16,873,189 4,680,070 5,630,182 770,604 83,218 5,709,11.5 1996 16,23.5,926 4,307,124 5,326,355 731,111 84,224 5,787,112 1997 15,469,691 4,067,605 5,166,691 696,022 85,302 .5,454,071 1998 14,607,419 3,856,023 5,004,592 501,122 81,425 5,164,257 1999 13,794,572 3,602,038 4,831,626 476,010 82;400 4,802,498 2000 12,704,148 3,373,352 4,799,222 453,885 83,025 3,994,664 2001 11,441,195 3,064,615 4,246,793 422,919 83,300 3,623,568 ::j 2002 9,964,078 2,585,694 3,970,816 289,106 83,225 3,035,237 2003 8,688,535 2,243,662 3,741,597 3,440 82,800 2,617,036 2004 6,863,002 1,639,570 3,471,956 1,751,476 2005 6,.566,714 1,S61,746 3,336,724 1,668,244 2006 6,278,576 1,486,568 3,201,368 1,590,640 2007 5,986,454 1,412,395 3,065,837 1,508,222 2008 S,074,654 1,118,638 2,586,982 1,369,034 2009 4,.511,664 1,029,524 2,461,234 1,020,906 2010 3,748,988 879,863 2,249,726 619,399 2011 3,573,126 833,288 2,155,038 584,800 2012 2,261,463 2,0SS,213 206,2.50 2013 1,872,725 1,872,725 2014 1,!11.,515 1,mJ1s !218alZ:Za8ll ! ss1sso1731 ! §1,662,704 I §,11~1i27 I 1,000.6~ ! ,0.749 • .503
Estimated Direct and Overlapping Funded Debt Pa1able From Ad Valorem Taxes (All ol 6-15-92)
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
fine.nee their expenditures. The following statement of direct and estimated overlapping ad valorem tax bonds was developed
from infonnation contained in "Texu Municipal Reports" published by the Municipal Advisory Council of Texas with respect
to "Total Funded .Debt" and from information fumlahed by the Lubbock Central Appraisal District with respect to "Estimated
!II, Applicable". Except for the amounts relating to the City, the City has not independently verified the accuracy or
completeness of. such infonnation, and no person should· rely upon. such information as being accurate or complete.
Furthermore, certain of the entities listed below may have issued additional bonds since the dale stated in the table, and such
entities may have programs requiring the issuance of substantial amounts of additional bonds the amount of which cannot be
determined. The following table reflects the estimated share of overlapping funded debt of these various taxing bodies.
Estimated
Total ,r, Overlapping
Taxing Jurisdi!.!jon Funded 1:!s.it An12licable Funds! Debt
City of Lubbock $ 43,108,202 100.00% $ 42,958,202 (I)
Lubbock Independent School District 65,674,989 98.55% 64,722,702
Lubbock County 5,280,000 83.27% 4,396,656
Lubbock County Hospital District -0-&3.30% -0-
Lubbock-Cooper Independent School District 5,430,000 13.55% 735,765
Frenship Independent School District 27,330,000 64.n% 17,701,641
Roosevelt Independent School District -0-5.25% -0-
New Deal Independent School District -0-0.03'1, -0-
Idalou Independent School Distriet 2,960,000 1.01'11\ 29 896
$ 130,544,862
Total Direct and Overlapping Funded Debt
Ratio of Direct and Overlspping Funded Debt
to Taxable Assessed Valuation ......••......••......•................•..... 2.80%
$696.27 Per Capita Overlapping Funded Debt . . . , , • • . . . . . . . • . . . . . . • • • . . . . . . . . • . . . . . . . •
(1) General Purpose Funded Debt Payable From Ad Valorem Taxes.
18
lnterl'St and Sinking Fund Budget Proj«tion
Ail explained in Note (4) •valuations, Exemptions and Debt Obligations• and under •state Revolving F11nd ("SRF") Loan
Program' the City is in the process of delivering $1,65S,OOO 1991 s-System Certificates to lhe Texas Water Development
Board ("TWDB") and delivered $34,520,0001992 Sewer System Certificates to 1WDB on lune 8, 1992 ("SRF Debt"). Interest
and Sinking Funds established for SRF Debt are supported in full by monthly transfen from net revenues of the Sewer Fund.
As a result the calculation of the "Interest and Sinldtig Fund Budget Projection•, below, is designed to demonstrate the
accumulation for SRF Debt separately from the City's provmion for other genenl obligation debt service.
General
Obligation SRF
Debt Debt Total
(e,!!,ll!ding liREl (gstirnated) Debt
Debt Service Requirements, Fiscal Year Ending
9-30-1992 $ 15,809,459 $ 39,47S (I) $ lS,848,934
Plus: Fiscal Agent, Tax Collection and Other Uses
108,S60 --0-108 560
s lS,!118,019 s 39,47S $ lS,957,494
Sources of Funds:
Interest and Sinking Funds, 9-30-91 $ 483,4S7 $ --0-$ 483,4S7
Budgeted Ad Valorem Tax Receipts 10,884,324 --0-10,884,324
Budgeted Transfers:
From Waler Fund 3,018,078 a> --0-3,018,078
from Solid Waste Fund 226,692-(2) --0-226,692
From Hotel-Motel Tax 47S,714 --0-47S,714
Budgeted Interest on Investments 1,490,000 --0-1,490,000
Estimated Accumulation of
Allocations from Sewer .Fund
(including interest earnings on
proceeds) --0-582,223 (3) 582,223
Accrued Interest Received 128 909. --0-128.222
Total Sources of Funds $ 16,107,174 $ S82,223 $ 17,289,39:Z
Estimated Balance, 9--30-92 $ 78911SS $ 5421748 I 1,331,903
(1) Estimated interest due 8-15·92 on the 1991.Sewer System Certificates.
(2) See "Computation of Self-Supporting Debt": "Waterworks System• and "Solid Waste Disposal System•.
(3) Reflects estimated monthly pro rata accumulation of principal due 2-15-93 and interest due 8-lS-92 and 2-lS--93.
Computation or Self-Supporting Debt
Waterworks System <O
Net System Revenue Available, Fiscal Year Ended 9-30-91 ..••....•.•.•.•.••.. , ••.•..••••
Less: Revenue Bond Requirements, Fiscal Year Ending 9-30-92 . ; ...•................•...•.
Balance Available for Other Purposes .. ; ..•...... , •.....••...•....•...•• · ....... · ..
System General Obligation Debt Requirements, Fiscal Year Ending 9-30-92 ... ; .............. : •
Balance .•.•••.•.......•••••••..••••.•.....•• • . , • • • • • -• • • • • • • • · · • • • • · •
Percentage of System General Obligation Debt Self-Supporting
$11,279,185
..()..
$11,279,185
6,235,314
$5,043,871
100.00%
(1) Through Fisca.l Year Ended 9-30-91 ,t h11s been the C~y•s policy ~d• Filcal Ye.ar to transfer from Water Enterprue Fund
surplus to the General Funt:! an amount at least 'equivalent to !lel:it' scirvkle requm.,merits \on Waterworks System <:lcneral
Obligation Debt. The City bas no outstanding revenue bonds payable from a lien on the~ revenues of the Waterworks System.
19
Beginning with the cunent Fiscal Year Ending 9-30-92, the City has budgeted and commenced a planned shift over the next
several years 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 rlBcal Year Ending 9-30-92 Waterworks System General Obligation
debt service is $6,235,314; of this $3,018,078 is a budgeted transfer to the Interest and Sinking Fund and the $3,217,236 balance
will be transfem:d to the General Fund. When this staged shift: is completed total Waterworks System General Obligation Debt
Services will be provided by direct transfer to the Interest and Sinking Fund from Water Enterprise Fund surplus. The •taged
shift is necessary to avoid exoeeding the City's "rollback tall rate" (see "Tait Rate Limitation"} as a portion of the Interest and
Sinking Fund Tax Rate formerly levied for Waterworks System General Obligation debt service is shift:ed each year to the
General Fund tall rate. The initial effect of this reallocation, for Fiscal Year Ending 9-30-92, can be seen under 'Tax Rate,
Levy and Collection History" and "Interest and Sinking Fund Budget Projection".
A "Rate Stabillmtion Fund" within the Water Enterprise Fund is accumulated from System net revenues; at 9-30-91 the balance
in the rate stabilization account was $7,301,516.
See "The Waterworks System".
Sewer System rn
Net System Revenue Available, Fiscal Year Ended 9-30-91 .................•••...........
Less: Revenue Bond Requirements, Fiscal Year Ending 9-30-92 .......... , ... , .....•......
Balance Available for Other Purposes ...........•.... : . . . . . . . . . . . • . . . . . . . •.......
System General Obligation Debt Requirements, Fiscal Year Bnding 9-30-92 ..........••.•.......
Balance .••••.•.............................................•.........
$6,278,623
-0-
$6,278,623
2.167.832
$4.110.791
Percentage of System General Obligation Debt Self.Supporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00%
(1) It has been the City's policy each Fiscal Year to transfer from Sewer Revenue Fund surplus to the General Fund amount
at leMt equivalent to debt service requirements on Sewer System General Obligation debt; and this policy will continue for
outstanding Sewer System General Obligation Debt eiteept for the State Revolving Fund loans discussed below.
All disc11Ssed in "Valuation, Bxemptions and Debt Information", "Interest and Sinking Fund Budget Projection" and "State
Revolving Fund ("SRF") Loan Program" debt service on the $1,655,000 1991 Sewer System Certificates (now in process of
delivery to TWDB} and the $34,S20,000 1992 Sewer System Certificates (delivered to TWDB on 6-8-92) will be provided in
full from net revenues of the Sewer System.
A "Rate Stabilization Fund" within the Sewer Ente.rprise Fund is accumulated from System net revenues; at 9-30-91 the balance
in the rate stabilization account was $2,675,815.
See "The Sewer System•.
Solid Waste Disposal System <0
Net System Revenue Available, Fiscal Year Bnded 9-30-91 ......•.....••...•••...........•
Less: Revenue Bond Requirements, Fiscal Year Ended 9-30-92 ... • .......•.•.•............
Bala.nee Available for Other Purposes . . . • . • • . . . • . . . • . . . . . . . . . . . . , . , . . • . . . . . . , . . , . .
System General Obligation Debt Requiremenlll, Fiscal Year Ended 9-30-92 , .................... .
Balarulc •••••.••..•••.•.•••••••••••••••••.••.•..••..........••.........
Percentage of System Oeneral Obligation Debt Self.Supporting • • . . • • . . • • . . . • . . . . • . . . . . . • . . . . . '.
$1,751,967
::9:
$1,751,967
226.691
Sl,'25.276
100.00%
(1) Each Fiscal Year the City transfers from net revenues of the Solid Waste Bnterprise Fund to the G.eneral Obligation Interest
and Sinking Fund an amount equal to debt serv~ requirements on System general obligation debt.
See "The Solid Waste Disposal System•.
20
Golf Course Facilities 111
Fiscal Year Boding 9·30
Revised
Budget
J991 1992
Net System Revenue Available $ S8,272 $ 134,002
Less: Revenue Bond Requirements -0--0-
Balance Available for Other Purposes $ SS,272 $ 134,002
System General Obligation Bond Requirements 87,!67 84,018
Balance $ (28,89S) $ 49,984
Percent.age of System General Obligation Debt Self-Supporting 66.85% 100.00%
(1) It is the City's policy each Fi.seal Year to trsnsfer from Golf Course Enterprise Fund surplus to the General Fund an amount
at least equivalent to debt service requirements on Golf Course Facilities General Obligation debt. This transfer was made in
Fiscal Year Ended !il·30.91 in the amount of $87,168; golf QOune facilities general obligation debt service was $87,167. The
City has no outstanding revenue bonds payable from a lien 011 the. revenues of the Golf Course Facilities.
Primarily because of major renovations and upgrading of golf course facilities, including equipment, net revenue was below the
level of Golf Course Facilities General Obligation debt ,en,ice requirementil in Fiscal Year Boded 9-30.91. An incresse in green
fees and other charges, effective 4-1-92, and recent improvements that enhance the golf course have resulted in the ability to
budget Golf Course Facilities General Obligation debt service as fully sejf•supporting.
See "The Golf Course Facilities".
Authorized General Obligation Debt
Amount
Date Amount Hen:tofore Unissued
Pu!J!!lSe Authorized Authorized Issued Balance
Waterworks System 11-21-81 $ S,226,000 $ S,000,000 $ 226,000
Waterworks System 10.17-87 2,810,000 200,000 2,610,000
Sewer System S-21-77 3,303,000 2,175,000 1,128,000
Sewer System 10.17-87 2,535,000 2,S3S,OOO -0-
Street Improvements 10.17-87 13,275.000 9,227,000 4,!M!!,m!:!
;i27,!49,000 ll!il,137,000 ~ 8,012,000
Anticipated Issuance of Authorized General Obligation Bonds and Other Obligations
The City has no current plans for the sale of authorized general obligation bonds or other general obligation debt other th.an that
described below under "State Revolving Fund ("SRF') Loan Program".
Citizens Adrisory Committee
A City Council appointed Citizens Advisory Committee has studied a three year capital improvements program and reported
to the City Council. The City is considering resctivating the committee in anticipation of a bond election to be held in the Spring
of 1993.
21
State Revolving Fuud ("SRF") Loan Program
The City has received a commitment from the Texas Water Development Board ("TWDB") for loans under the SRF loan
program to finance a major wastewater treatment and disposal improvement program. The City anticipates the eventual issuance
of three separate series of Combination Tax and Sewer System Subordinate Lien Revenue Certificates of Obligation (the "Sewer
System Certificates") to evidence these loans as follows:
Sewer
System Estimated Anticipated
Estimated Certificate Loan Closing Completion
~ Amount Secies t?!te Date
A $ 1,655,000 (I) 1991 January, 1992 May, 1993
B 34,520,000 (2) 1992 June, 1992 July, 1994
C 14,4~,ooo 1993 June, 1993 May, 1995
$ 50,600,000
Interest rate on both the 1991 and 1992 Sewer System Certificates is 5.50%. Interest rates on the 1993 Sewer System
Certificates will be set later by TWDB. Principal of each series of Certificates is scheduled to mature in an approximately equal
amount each year for a 20-year period beginning within one year after Project completion.
Debt service requirements on all Series of Sewer System Certificates will be paid from net revenues of the Sewer System and
the Certificates will be self-supporting.
(1) Actual principal amount of the 1991 Sewer System Certificates; this loan closed in January, 1992, and the Certificates are
in process of delivery to TWDB by installments as work progresses. At 6-15-1992 $1,500,000 of the Certificates had been
delivered, leaving an undelivered balance of $155,000.
(2) Delivered to TWDB on 6-8-92.
Funded Debt Limitation
There is no di.reel 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 T~as will permit allocation of $1.50 of the $2.50 maximum tax ntte for general obligation debt service.
22
Other Obligations
(1) The City has en!Am:d into lease agreements for the purpose of acquiring certain properties and equipment. As of May 31,
1992, capital leases were as follows:
l&!!se R!l!luirements for F!!!S'l!l l'.ear Ending ~ Balance
1996-Less: Outstanding
fllable from: --122L ...l22L __im_ -1l!2L 2012 Intttest at S-31-92
General Government
Telephone
Equipment $ 21,726 $ 65,177 $ 65,177 $ 21,726 $ -0-$ (18,656) $ lSS,lSO
Omnimax Theater 270,000 -2QJ2Q!! __:9:: __:9:: -0-::2: :l60,000
Total General
Government $291,726 $155,177 $ 65,177 $ 21,726 $ -0-$ (18,656) $ Sts,150
Cntemrise Fund -
Property
Golf-Golf Equipment 16,315 48,944 48,944 44,865 -0-(l7,9SS) 141,113
Solid Waste-Scraper 22,297 66,890 66,190 66,890 S,574 (27,986) 200,SSS
Airport-Hangar
(leased to
Federal Aviation
Administration)• ....JU!!Q 94.200 94,200 94.200 1,546.450 ,964,149) 895,1!:!l
Total Enterprise $ 70.012 .lll.Q.m.4 .lll.Q.m.4 ~ §!,5~2.024 $ (t,QI0,6W $ 1,231,369
Combfued Requin:rnents $361,738 ~ $275,211 mz.w. 1,ss2,024 $!1,029,3~ $ 11752,519
*The hangar was constructed to Federal Aviation Administration ("FAA") specifications in response to a FAA Request for
Proposals. The hangar has a total area of 40,000 square feet of which 2,000 square feet is office space.
Toe City pays its lessor $7,850 monthly under its lease agreement. FAA leases the hangar from the City under a one year lease
agreement commeneing in March, 1992, with a base monthly lease payment of $9,900 and four one year renewal options (the
fourth renewal option would extend the lease through February, 1997). Under the FAA lease, the City pays utility costs monthly
and is reimbursed by FAA quarterly; building maintenance costs arc paid by FAA.
It is the City's opinion that FAA will annually renew itli lease for the successive four one year renewal options through February,
1997 and that FAA will continue 0-0eupancy after February, 1997, with future terms to be negotiated.
(2) Acquisition and Renovation of Sears Building .•. On October 15, 1982, the City of Lubbock entered into an agreement with
the American State Bank, Lubbock (" American") to purchase the 96,810 square foot •sears• building located in downtown
Lubbock. Originally constructed by Sears, Roebuck&. Co., the building and site were sold to the adjacent American State Bank
following Sears construction of new facilities in South Plains Mall, Lubbock, several yeanr ago. The City also acquired 3
additional sites near the Sears site for parking expansion in the future.
The City has renovated and remodeled approximately SS,000 square feet of the Sears building to house administrative and City
Council functions, and this building is now the main Municipal Complex with parking space for 205 vehicles and a future
expanded parking capability of 450 vehicles.
Budget for the project was $3,600,000:
Acquisition of Sears building/site
Purchase of additional property
Renovation of 55,000 square feet
Contingencies and other costs
Total Cost
23
$ 751,000
302,925
2,201,841>
344.226
$3,600,000
Shown below is the "Sears Building Finance Schedule", which was prepared by the City of Lubbod::. Salient elements of the
City's agreement with "American" and the •Finance Schedule" includes;
(1) Advance Ba!&nce. Acquisition and remodeling cost of the Sears property 'WU tinaneed by advances from • American".
Net advance balances are shown on a quarterly basis; actual balances to 1·15-92. $3,310,000 of the budgeted project cost
of $3,600,000 was financed through the advance process. The $290,000 balance was allocated from Revenue Sharing
Funds.
(2) Total Payment. Actual and future quarterly payments to • American" including interest quarterly at an annual rate of
12 3/4%. Final payment, 1-15-94, $2,917,818.
(3) Addjtional Site Acquisition. The City acquin:d 3 additional, adjacent sites for future parking expansion, paying
$159,000 in cash and assuming payments on 3 notes. Payment of the $159,000 and combined payments on the 3 notes are
demonstrated.
(4) Escrow Deposits. The City has deposited funds into an "Escrow Account" at • American• from which payments will
be made to • America.n • as referred to in (2), above, and on the notes referred to in (3) above. Deposits tolaled $3,288,000
and the "Escrow Account• is funded.
(S) Escrow Interest Earnings. • American" pays the City interest quarterly on the balance in the "Escrow Account" at the
annual rate of 12 1/2%.
(6) Escrow Baiance. The Escrow Balance at the end of any quarter will always exc,eed the Advance Balance.
(7) In the opinion of the City Attorney the fmancial arrangement with • American" descn'bed above does not constitute a
legal debt of the City since funds will be pledged at all times and placed in the "Escrow Account" in amounts that, with
interest earned, will exceed the outstandin,e Advance Balance throughout the life of the agreement. ·
24
~m~uilding
finance Schedule
Additional Escrow Minimum
Advance Total Site Escrow Intcreat Escrow
Year Month J!alanee f!\vment A9guisition Deoo1il!! Eami!lgs J:!alanee
1982-83
10-15 $ 751,000 $159,000 $1,073,000 s 914,000
1-15 751,000 s 23,938 5,331 s 28,563 913,294
4-15 1,251,000 23,938 S,331 475,000 28,540 1,387,565
7-15 1,751,000 39,876 S,331 475,000 43,361 1,860,719
1983-84
10-15 2,251,000 SS,813 S,331 525,000 58,147 2,382,722
MS 2,824,001 93,750 S,331. 575,000 74,460 2,933,101
4-15 2,820,266 93,750 5,331 91,659 2,925,679
7-15 2,816,412 93,750 5,331 91,428 2,918,026
1984-85
10-lS 2,812,435 93,750 5,331 91,188 2,910,133
1-15 2,903,331 93,750 S,331 125,000 90,942 3,026,994
4-15 . 2,902,125 93,750 5,331 94,594 3,022,507
7-15 2,900,880 93,750 S,331 94,453 3,017,879
1985-86
10-15 2,899,596 93,750 5,331 94,309 3,013,107
1-15 2,898,270 93,750 S,331 94,160 3,008,186
4-15 2,896,903 93,750 S,331 94,006 3,003,111
7-15 2,895,491 93,750 S,331 93,847 2,997,877
1986-87
10-15 2,894,035 93,750 S,331 93,684 2,992,480
1-15 2,892,532 93,750 S,331 93,SlS 2,986,914
4-15 3,890,982 93,750 S,331 93,341 2,981,174
7-15 2,889,382 93,750 S,331 93,162 2,975,255
1987-88
10-15 2,887,731 93,750 S,331 'n,977 2,969,151
1-15 2,886,027 93,750 S,331 'n,786 2,962,856
4-lS 2,884,270 93,150 S,331 'n,589 2,956,364
7-15 2,882,456 93,750 S,331 92,386 2,949,669
1988-89
10-15 2,880,584 93,750 S,331 40,000 92,177 2,982,765
1-15 2,878,653 93,750 5,331 93,211 2,976,895
4-lS 2,876,660 93,750 S,331 93,028 2,970,842
7-15 2,874,603 93,750 S,331 92,839 2,964,600
1989-90
10-IS 2,872,481 93,750 S,331 92,644 2,958,163
1-lS 2,870,291 93,750 S,331 92,443 2,951,525
4-15 2,868,032 93,750 S,331 . 92,235 2,944,679
7-lS 2,865,700 !13,750 S,331 92,021 2,937,619
1990-91
10-lS 2,863,295 93,750 S,331 91,801 2,930,339
1-15 2,860,812 !13,750 5,331 91,573 2,922,831
4-lS 2,858,25 93,750 5,331 91,338 2,915,088
1-15 2,855,607 93,750 5,331 Sll,097 2,907,104
1991-92
10-15 2,852,880 93,750 S,331 90,847 2,898,870
1-15 2,850,065 93,750 5,331 90,590 2,890,379
4-15 2,847,161 93,750 S,331 90,324 2,881,622
1-15 2,844,164 93,750 5,331 90,051 2,872,592
1992·93
10-15 2,841,072 93,750 4,637 89,768 2,863,973
1-15 2,837,881 93,750 670 89,499. 2,859,052
4-15 2,834,589 93,750 670 89,345 2,8S3,9n
7-15 2,831,191 93,750 670 89,187 2,848,744
1993-94
10-15 2,827,686 93,750 670 89,023 2,843,347
1-15 2,827,686 2,,917,818 __filQ 88,855 13,714
$6,811,383 $374,896 ~J.:m,!!211 ~.911,223
2S
PeDJion Fund
Texas Munitjpa) Retirement System ... All pennanent, full time City employees who are not firemen are covered by the Texas
Municipal Retirement System. The System is a contributory, annuity-purchase type plan which is covered by a State statute
and is administered by six trustees appointed by the Governor of Texas. The System operates independently of its member
cities.
The City of Lubbock joined the System in 1950 to supplement Social Security. · All City employees except firemen 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 contn'butions 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
using actuarial techniques applied to experience. The 1992 contribution rate is 11.21 %; the 1993 rate will be 10.34%. Enabling
statutes prohibit any member city from adopting options which impose liabilities that cannot be amorti7.ed over 25 years within
a specified st.a.tutory rate.
On December 31, 1991, assets held by the System, not including those of the Supplemental Disability Fund which is "pooled",
for the City of Lubbock were $74,489,168. Unfunded accrued liabilities on December 31, 1991, were $19,256,484, which is
being amortized over a 25 year period beginning in 1991. Total contributions by the City to the System in Calendar Year
Ending 12-31-91 were $4,469,819.
Firemen's Relief and Retirement Fund ... City of Lubbock firemen are members of the locally administered Lubbock Firemen'•
Relief and Retirement Fund, operating under an act passed in 1937 by the State Legislature and adopted by City fll'emen, by
vote of the department, in 1941. Firemen are not covered by Social Security.
The Fund is governed by seven trustees, three firemen, two outside trustees (appointed by the other trustees), the Mayor or his
representative and the Assistant City Manager for Financial Services of the City. Execution of the act is monitored by the
Fuemen'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 evecy three
years, and the fund is audited annually. F=en contribute 11 % of full salary into the fund and the City m11St contribute a like
amount; however, the City contributes on a basis of the percentage of salary which is a ratio adjusted annually that bears the
same relationship to the firemen's contribution 1'1lte that the City's rate paid into the Texas Municipal Retirement System and
FICA bears to the rate other employees pay into the Tcus Municipal Retirement System and FICA. The City's contribution
rate for 1992 is 15.1985".
As of December 31, 1990, unfunded liabilities were $10,714,913 which is being amortized over a 27 year period beginning
October, 1990. ·
The City contributed $1,246,618 to the Fund during Ca.lendar Year ended 12-31-91.
* Sources: Texas Municipal Retirement System, Comprehensive Annual F1118ncial Report for Year Ended December 31, 1990.
City of Lubbock, Te:-1as.
26
General Fund Reven-and Expenditures (GA.AP B•sls) Proposed Revised Budget Budget Fiscal Y !!In Ii!!ded Revenues 19n-93 1991-22 2:30-91 9-30-90 9-30-89 2:20-88 9-30-87 Ad Va!orem Tax.,. $19,086,282 $17,867,086 $: 16,213,919, $14,911,385 $14,329,641 $12,538,368 $ 12,044,707 Sales Taxes 16,148,950 16,010,296 15,907,117 15,530,468 15,059,072 13,960,077 12,563,905 Fnuu:hise. Taxes 4,312,500 4,183,035 3,488,691 3,377,870 3,077,372 3,108,228 3,111,362 Miscellaneous Taxes .665,714 664,571 667,47S 712,203 629,320 669,292 646,777 License• and Permits _807,703 710,535 768,924 719,979 613,668 579,369 628,144 Intergovernmental · 929,621 887,886 1,227,449 1,511,791 1,179,271 1,124,237 1,104,585 Ch11rges for Servioeo 2,100,812 2,224,574 2,081,955 2,243,428 2,091,277 2,058,402 1,885,450 Fines 2,246,840 2,241,839 2,378,986 2,489,471 2,365,787 2,063,207 1,581,702 Miscellaneous 2,772,290 3,042,170 4,042,185 3,222,731 3,802,500 2,694,897 2,836,814 Transfer from Other Funds ::! and Other F!IIBncing Sources H;~,265 14,163,717 IJ,822,216 13,175,352 12,173,142 12,319,361 12,308,945 ~ · Tot.al Revenues and Transfers (From) $63,493,67( $61,995,709 $ 00,666,920 $57,894,678 $55,321,110 $51,115,444 $ 48,712,391 E~pendifures ~ General Oovemn1ent $ 1,545,417 $ 1,555,518 $ 2,412,645 $ 2,449,344 $ 2,966,651 $ 2,056,095 · $ 2,444,659 !j Finilnclal Serviceo 2,542,416 2,653,406 1,910,799, 1,815,589 · 1,751,968 1,671,752 1,507,961 ~ Managemem. Services 2,420,812 2,307,735 2,579,610 2,500,230 2;113,725 2,202,132 2,031,032 Development Services 7,364,831 7,373,154 6,274,866 5,831,381 5,522,932 5,312,624 5,282,956 ! .Publio Safety and Servic~ 46,497,238 44,995,146 42,247,744 39,968,470 37,432,994 34,lll,128 33,088,839 Non-Departmenl8l. 456,904 480,216 29;532 265.,108 16,761 52,002 38,438 Transfer to Other Funds 2,~:Sl,425 2,f95,950 4,642,478. 4,304,580 5,408,139 4,809,~ 3,402,501 0 z TolBI Expenditures and Transfers (To) i63,379,043 161,861,115 I oo,097,674 is1,134,7QZ · I SS,213, 170 f.S0,215,799 I !Z,79§J86 ·. &-• of R~enu"" and Transfers (From) · Over Bxpenditures and Transfers (To) · $ 114,634 $ 134,584 $ 569,246 $ 759,976 $ 107,940 $ 899,645 $ 916,005 · Residual Equity Transfet · -0-, -0-(64,212) (22,969) 292,597 -0--0-Fund Bah111c;e at Beginning of Ye.Ir 9,982,694' 9,848,110 9,343,076' 8,606,069 8,205,532 7,305,887 6,389,882 . Fund Baianoe at End of Year $ 10,097,328 $ 9,343,076 $ 8,606,069 $ 8,205,532 $ 7,305,887 l.ess; Rescrves and Designations (1,769,507} (1,706,624) {1,694,805) (1,822,3~8) (l,38l,5f9) Und&•ignated Fund Balance . ! 8i3:U1!il ! 71636,42. ! 612111264 E 613761114 i 51924,338
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 Certificates. 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% sc,rvice fee, to the City monthly.
Revenue from this source, for the years shown, has been:
Fiscal
Year % of Equivalent of
Ended Total Ad Valorem Ad Valorem Per
9-30 Collected Tax Lev~ Tax Rate Ca11ita*
1982 $10,939,663 61.79% $0.408 $61.36
1983 11,355,581 59.17% 0.361 62.57
1984 12,480,746 63.27% 0.386 68.54
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 lS,059,072 Sl.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
* Based on estimated population for all years except 1990 which is U.S. Census.
Financial Policies
Basis of Accounting .•. The City's policy is to adhere to accounting principles as established by the Governmental Accounting
Standards Board. For governmental funds, this is the modified accrual basis and for proprietary funds the accrual basis of
accounting.
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
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 prop.;sed 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.
S) Formal budgetary integration is employed as a management control device during the year for the General,
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.
6) Budgets for General, Convention and Tourism, Criminal Investigation, and Capital Projects Funds are 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.
28
11) Budgetary comparisons are pre,.ented for the Oenenll Fund and certain Spec:ial Revenue Funds in the combined
financial statement sections of the Comprehensive Annual F'inancial Report.
Fund Investments ... The City's investment policy parallels State law which g;overrui investment of public funds. The City
generally restricts investments to direct obligations of the United States Oovemment, obligations of U.S. Government agencies
and insured or fully collateralizcd inveslltlcnb!:
Insurance . · .. Except for Airport liability insurance, the City is self-insured for liability, workers' compensation, and health
benefits coverage: Insurance policies ate 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 insumnce programs and budgeted transfers
are made to this fund based upon estimated payments for claim losses.
At S-31-92 the reserves had the following balances:
Reserve for self-insurance • health
Reserve for self-insurance -other than health
29
$2,162,137
$1,604,139
TIIEWATERWORKS SYSTEM
Water Supply .•. Currently, the primary source of water for Lubbock is the Canadian River Municipal Water Authority
("CRMWA ") 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 32,376 acre feet of water from CRMWA in Calendar Year 1991, approximately 86% of the City's total
consumption. Cost of the project is being repaid to the Bureau of Reclamation by CRMWA through a reimbursable loan
maturing annually through 2018; debt requirements are paid from revenues received by CRMWA 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 ... Approximately 15% of the City's water supply is obtained from 238 potable water wells, all
producing from the Ogallala Acquifer, which underlies the High Plains of Texas. Combined capacity of these wells is over 45
million gallons per day. Primary wells are located in the "Sand Hills" area abo11t 60 miles northwest of Lubbock in Lamb and
Bailey Counties in which the City owns approximately 81,235 acres of water rights.
Lake Alan Henry ... The Brazos River Authority ("BRA") on behalf of the City of Lubbock (the "City") is constructing 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 million gallons per day ("mgd") by 2040
assuming low population growth. Although historical population increases have not been as great as the TWDR population
estimates, increased population and decreasing water supplies have required the City to pursue new sources of supply.
In 1978 Freese and Nichols, Inc., Consulting Engineers, estimated that Lake Alan Henry would have a firm yield of 26,100
acre-feet per year when the lake is first constructed, and 20,600 acre-feet per year after 50 years of operation. If the reservoir
is operated with a variable rate of demand, an estimated average yield of 30,200 acre-feet per year could be withdrawn initially.
After 50 years of operation, the variable demand yield would decrease to 27,000 acre-feet per year. This would provide
Lubbock with a reliable water supply of23.3 mgd and an average water supply of 26.9 mgd. Assuming a worst case scenario
of: a 65 percent allocation from CRMWA (22.1 mgd), an average withdrawal from the Sand Hills Field (8.9 mgd), and a firm
yield from Lake Alan Henry (23 .3 mgd), Lubbock would have a reliable supply of 54.3 mgd which would be sufficient to meet
projected normal water demands through about the year 2040. Based on the results of the water quality monitoring program
by the United States Geological Survey and Lubbock, it was concluded that water in Lake Alan Henry would be of similar
quality to water from Lake Meredith.
The City has contracted with BRA (the "Contract") to construct the dam and water supply reservoir at the Lake Alan Henry site
(the "Project") and construction commenced in 1991. The Project will provide Lubbock with an average of 26.9 mgd of
municipal water supply. It is estimated that the Project will require two years to construct and three years 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
contn'buting drainage area is an estimated 394 square miles.
Total construction cost is estimated to be $54,639,000 and BRA has 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 Revenue Bonds are payable from net revenues derived from the operation and ownership of Lake Alan Henry,
including payments to be made under the Contract to BRA.
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 and ending September 30) shall equal the sum of:
30
(1) Capital costs (debt service) payable during such Fiscal Year; plus
(ii) Maintenance and Operation Costs u adjusted, which, by the Authority's estimates made
prior to the beginningofsuch Fucal Year, will be incurred durlng1uchFiscalYear;plus
(iii) Management Fees for such Fiscal Year.
Payments under the Contract constitut.e operating expenses of the City's Waterworks System, payable from gross revenues of
the Waterworks System.
Additional facilities, which may be financed by the City din::cily 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.
The System ••• Lubbock's Waterworks System is modern and efficient; property, plant and equipment are valued at
$86,054,721, after depreciation and including cost of construction work in progress, at September 30, 1991. 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.
Storage capacity includes a 1,200 acre-foot open storage reservoir near the water treatment plant, which permits the llomge of
surplus water received from CRMWA in off-peak periods. In addition, 14 ground storage reservoirs and 3 elevated steel storage
tanks provide storage capacity of 61,350,000 gallons, entirely adequate for peak hour and lire protection requirements.
Water Consumption
Calendar
Year
1987
1988
1989
1990
1991
Average
Daily
Consumption
Cwl!dl*
31.980
34.981
36.367
36.408
33.674
Maximum
Consumption
Da.yNear
(mgd}*
57.007
60.399
69.124
79.003
67.377
* The City has water sales contracts for the sale of treated water to Reese Air Force Base, the City of Lake Ransom Canyon
and Lubbock County Water Control and Improvement District No. l (Buffalo Springs Lake); deliveries to these entities,
averaging 0. 706 mgd in 1991, are included in the above calculations.
Water; Treatment Facilities . . . The water treatment plant for the treatment of raw water re,;ieived from CRMW A hu 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.
The plant also lreats CRMW A raw water for the Cities of Brownfield, Lamesa, Levelland, O'Donnell, Slaton and Tahoka prior
to CRMW A dc:Jiveey to those cities. Under contractual agreements with these cities Lubbock i,, fully reimbursed for all costs
of this treatment including capital costs and debt aerviee; total percentage of participation in treatment plant costs by these cities
is 20.34%. In Calendar 1991 deliveries from the plant totaled 12,544.17 mg of which 10,630.32 mg wu for Lubbock and
1,913.85 mg was delivered lo the other participating cities.
Lubbock's ground water supply does not require treatment (other than the addition of chlorine).
Water Treatment Plant Improvement Program
The wa.terworlcs trestment plant is being upgraded and improved with major financing provided from the proceeds of
$16,120,000 Combination Tax and Waterworks System Subordinate Lien Revenue Certificates of Obligation, Series 1991.
Objectives are to (1) enable the plant to comply with the Safe Drinking Water Act of 1986 c•sowA ") and (2) upgrade the plant
for safety, maintenance and repair. Total estimated cost of the program is $17,070,000.
31
Condensed Statement or Operations -Waterworks System
Proposed Revised
Budget Budget Fiscal Year Ended
9-30-93 9-30-22 9-30-21 9-30-90 9-30-89
Operating Revenues $24,047,590 $ 22,288,401 $21,821,722 $ 19,668,087 $ 16,660,193
Non-Operating Revenues 2,087,402 2,952,282 4,0S0,163 1,880,945 626,042
Gross Revenues $ 26,134,992 $ 25,240,683 $25,871,885 $ 21,549,032 $ 17,286,235
Operating Expense
(excluding depreciation) en 16,776,118 16,707,747 14,592,700 11,310,532 9,758,878
Net Revenues $ 913581874 $ 815321936 $1112791185 $ 1012381500 $ 715271357
Water Meters N.A. N.A. 62,262 62,119 62,631
(1) Operating expense includes all payments to CRMWA and BRA.
Note: The City has no outstanding or authorized Waterworks System Revenue Bonds, however, there is $34,665,883 general
obligation debt outstanding which was issued for Waterworks System purposes which is supported from net revenues of the
System.
Water Rates (Monthly)
Present Rates (Effective 10-1-90)
Water Consuml!tion Rate
First 1,000 Gallons $7 .31 (Minimum)
Next 49,000 Gallons 1.53/M Gallons
Next 200,000 Gallons 1.37/M Gallons
All Over 250,000 Gallons 1.31/M Gallons
Proposed Rates (Effective 10-1-92) <1)
Base Rate (For Service) $7.96
Flow Rate 1.30/M gallons
(1) The City Council will consider the adoption of these rates on August 27, 1992, and September 10, 1992 ...
THE SEWER SYSTEM
The Sewer System is operated as a separate enterprise fund and is not combined with the Waterw6rlcs System.
The Collection System ... The sanitary sewage collection system, handled separately from the storm drainage system, includes
approximately 750 miles of Inmk 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 flow design capacity
of 25 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; trickling fiher and activated sludge .. The Northwest Plant uses the contact stabilization
process for sewage treatment. Recent funding will provide for upgrading and expansion of the Southeast Plant which will permit
the City to consistently comply with requirements of the Texas Water Commission for wastewater treatment and effluent disposal
by irrigation of land-application sites.
32
Wastewater Flows ...
Calendar
Yearm
1987
1988
1989
1990
1991
Northwest
Plant
(mgd)
0.424
0.4SS
0.389
0.399
0.324
Southeast
Water
Reclamation
Plant
(mgd)
17.36
17.40
18.35
18.S0
18.80
(1) During the period 1987-1991 the recorded combined peak daily flow was 23.6 mgd.
Effluent Disposal ... Treated efRuent is used for beneficial purposes; no effluent is presently discharged into 1tresrns. Treated
effluent from the Northwest Plant is used to irrigate approximately 1,060 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 S,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 IS 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 cooling
purposes in Southwestern Public Service Company's 512,000 kilowatt electric generating plant near Lubbock when the plant
is in use.
Wastewater Treatment and Disposal Improvement and Expansion Project . . . The City is pursuing a compn:hensivewastewster
trestment and effluent disposal program that will upgrade and expand the Southeast Water Reclamation Plant, the City's major
wastewater treatment facility. This program will enable the Plant to consistently comply with Texas Water Commission and
United States Environmental Protection Agency permit requirements and provide trestment capacity to the design year 2010.
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") Lake Ransom Canyon.
The Project will be funded through loans from the Texas Water Development Board's ("TWDB") State Water Pollution Control
Revolving Fund ("SRF") as follows:
Year
1991
1992
1993
$
SRF
Loan•
1,655,000
34,520,000
14.425.000 (I)
s so,600.ooo
B
C
Brief Projection Description
Replace effluent pipeline to land application
site with new 36" line
One new activated sludge treatment plant;
headworks facilities; solids handling facilities
digester rehabilitation; administration
maintenance building
Discharge pipeline to NFDMF Brazos River;
renovate and upgrade two existing treatment
plants; convert existing administration
building to a laboratory
Estimated
Project
Completion
Date
Completed
May IS, 1992
Iuly, 1994
May, 1995
• To be evidenced by a separate series of Combination Tax and Sewe.-System Subordinate Lien Revenue Certificates or
Obligation for each loan (see "State Revolving Fund Loan Progrsm" under • Anticipated Issuance or Authori7.ed General
Obligation Bonds and Other Obligations").
(1) Estimated; construction bids to be accepted March/April, 1993.
33
Condensed Statement or Operations -Sewer System
Proposed Revised
Budget Budget Fiscal Year Ended
9-30-93 9-30-9~ 9-J0-21 9-30-90 9-30-89
Operating Revenues $10,972,240 $10,486,375 S 9,696,057 s 9,s11,2n $ 8,518,054
Non-Operating Revenues 1,156,306 262,833 720,169 763,549 579,026
Gross Revenues $12,128,546 $10,749,208 $10,416,226 $10,334,826 $ 9,097,080
Operating Expenses
(excluding depreciation) 5,181,783 5,072,370 4,137,603 4,054.261 4,124,560
Net Revenues $ 6,946,763 $ 5,676,838 $ 6,278,623 $ 6,280,565 $ 4,972,520
Sewer Meters (Estimated) N.A. N.A. 62,262 62,119 62,631
Note: The City has no outstanding or authorized Sewer System Revenue Bonds; however, there is S48, 929,386 general obligation
debt outstanding (including $34,520,000 1992 Sewer System Certificates delivered to 1WDB on 6-8-92) which was issued for
Sewer System purposes and is supported by revenues of the System.
Sewer Rates (Monthly)
New Rates
<Effective 10-1-92}
Base Rate $ 2.49 (ll
Flow Rate 1.06/M ·gallons*
(Maximum Monthly Charge -$15.21)
* Based on average monthly water consumption for
the three months December, 1991 -February, 1992;
no flow rate charged for consumption in excess of
12,000 gallons per month.
Residential
First
Next
Over
Previous Rates
(Effective 10-1-91)
3,000 gallons $ 6.10 (Minimum)
7,000 gallons 0.75/M gallon•
10,000 gallons No charge
(Maximum Monthly Charge -Sl 1.35)
Commercial/Industrial U) (2)
Base Rate·
Flow Rate
$ 2.49 (I)
1.06/M gallons
First
Over
3,000 gallons/water $ 6.10 (Minimum) Cl>
3,000 gallons/water 0.75/M gallons
(1) The Base Rate under "New Rates" for both Residential and CommeroiaV!ndustrial service is based on a 3/4" meter; there
are higher Base Rates for larger meters up to a maximum Base Rate of $556.10 for a 10" meter.
Commercial/Industrial service minimum under "Present Rates" based on 3/4" meter; higher minimums for larger meters.
(2) Industrial waste that excess allowable limits is subject to surcharge for treating biochemical oxygen demand ("B.O.D. ") and
suspended solids ("S.S."). Present surcharges of B.O.D./$0.0457/Ib. and S.S./$0.0272/lb. will be recalculated on 10-1-92.
Discussion of Sewer Rates
The City's present sewer rate structure is a modified user charge system based on water usage and surcharges for excessive
strength contributions to the wastewater system. A sewer rate increase designed to increase ~venues 9% was effective 10-1-
1991; this rate increase was designed to initially anticipate and provide for the additional debt service requirements incurred
under the SRF loan program. As part of the wastewater project being financed with SRF loans the City 'has adopted 'a ·User
Charge System with rates and regulations in accordance with Federal requirements and a new rate structure effective October 1 ·,
1992, that will increase Sewer System revenues approximately 9% (see "Sewer Rates", above). , Under the User Charge System
rates will be reviewed each year and will provide for increasing levels of debt semce.
34
TIIE SOLID WASTE DISPOSAL SYSTEM
The Solid Wutc Disposal System, operated by the City's Solid Waste Managanent Department handles collection and disposal
of both n:11idential and commercial garbage in the City. The n:11idential collection system services approximately 20,000
containel'II and 50,000 accounts. Service is provided twice weekly. Residential collection is provided through three cubic yard
metal containers serviced in alleys by 30-yard packer, side loading trucks on 38 separate routes.
Colleetion for approximately 330 commercial accounts is provided through two yard to eight yard metal containers emptied by
30-yard automated frontloading units. Colleetion for an additional 1,600 acoounts is provided by the same type container and
pickup equipment as residential customers. Basic service is collection twice weekly with additions) service available at an extra
charge. The commercial portion of the system provide:! 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 will initiate reiidential recycling operations effective August, 1992. The City will dispatch
recycling collection trucks to collect blue bags which have been filled with recyclable commodities. The Program will be
operations in three phases between August, 1992, and February, 1993. Fll'l!t year projections are to reduce the wute stream
by 5%. This program will supplement other reeyeling programs that the City currently operates; Oil Recycling, Grass
Recycling, Don't Bag It Program, Christmu: Tree Recycling, and others.
Landfill and Disposal Operations ... The City operates a Type 1 Landfill (Tern Department of Health permit f/6'}) on a 320-
acre site. The facility receives approximately 200,000 ions of solid waste annually, and hllll a remaining life of approximately
seven yean. Refuse is deposited into cells of approximately 3 acres each, compacted, and covered with six inches of
intermediate soil cover. Once a cell reaches maximum height, ftnal 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 Texas Water Commission for a permit for a new 640 acre landfill
site. The new permit would include all new and proposed landfill operations.
The landfill cummlly operates as a defacto regional landfill; the City has negotiated several interiocal landfill usc agreements
with area communities. These agreements include payment of the current 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.
Pmlent Landfill Prognun ... $3,565,000 proceeds of the Certificates will be used for:
1. Closure of 144 acres of the existing landfill site that is at closure stage. Closure will be performed in accordance with
Texas Water Commission Municipal Solid Waste Management regulations.
2. lnstaD a compacted clay Liner, as required by the Texas Water Commission, in Landfill Cell IV A South (an area of
approximately 3.5 acres).
3. Acquire a 21 cubic yard, dual engine, push-pull acraper and a compactor for use at the landfill.
35
Condensed Statement of Operations • Solid Waste Disposal System
Proposed Revised
Budget Budget Fiscal Year Ended
9-30-93 9-30-92 9-30-91 9-30-90 9-l0-89
Operating Revenues $8,499,769 $6,983,956 $6,340,137 $5,630,037 $ 5,240,173 Non-Operating Revenues 86,000 131,388 36l,45i 158,154 24,028
Gross Revenues $ 8,585,769 $7,115,344 $6,701,589 $5,788,191 $ 5,264,201
Operating Expense (excluding
depreciation) 5,560,350 5,218,421 4,949,622 4,340,042 4,440,521
Net Revenues I 3,025,419 i 1,896,923 !i 1,751,967 !i 1,448,149 I 823,680
Number Residential Customers N.A. N.A. 51,999 51,568 51,380
Number Commercial Customers N.A. N.A. 1,337 1,322 1,336
Note: The City has no outstanding or authorized Solid Waste Disposal System Revenue Bonds, however, after issuance of the
Certificates there will be $4,680,281 general obligation debt outstanding on which debt service is provided from revenues of
the System.
Solid Waste Collection Rates
Residential /Monthly)
(Twice Weekly Service)
Proposed Rates (I)
(Effective 10-1-92)
3 yard container typically shared by
households with twice a week
service $11.00
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
Present Rates
(Effective 10-1-91)
$24.00
$36.00
$48.00
$72.00
$96.00
$9.00
$ 1.50 per yard per pickup
Proposed Rates <ll <2l
(Effective 10-1-92)
Present Rates C2l
(Effective 10-1-91)
$ 4.25
Size of Vehicle
Pickup, small trailers (1/2 ton or less)
Bobtail trucks, pickups over 1/2 ton
Semitrailers
Container trucks and packer trucks:
20 cubic yards
24 cubic yards
28 cubic yards
30 cubic yards
32 cubic yards
40 cubic yards
$ 6.25
18.75
250.00
75.00
90.00
105.00
112.50
120.00
150.00
12.75
21.75
42.50
51.00
59.50
63.75
68.00
85.00
(1) The City Council will consider adoption of these rates on August 27, 1992, and September 10, 1992.
(2) The City or the user may, at the option of either party, supersede the above schedule with a charge per ton of waste of
$8.50 per ton (present rate) or $12.50 _per (proposed rate).
36
Billings
Customers of Lubbock's water, sewer and sanitation systems are billed simultaneously on one statement; if the customer is
connected to the City's electric system, 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 Sllli late payment penahy. If the bill bu 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 llllliled. 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 5:00 PM and $25,00 after S:00 PM and during weekends and
holidays.
THE GOLF COURSE FACILITIES
Meadowbrook Golf Course was established in 1954 and is owned and operated by the City as its municipal golf facility.
Meadowbrook is a 36-hole golf facility (two 18-hole courses) encompassiog approximately 260 acres of irrigated turf and
improvements, including a clubhouse, driving range, maintenance barn, cart shed and a maintenance st.orage facility.
Meadowbrook is located in Mackenzie Park, a City-owned regional park. Administration, maintenance and improvements to
the land and facilities are the responsibility of the City of Lubbock.
Condensed Statement of Operations -Golf Enterprise Fund
Proposed Revised
Budget Budget fiscal Year l;!gded
9-30-93 9-30-lli 2-JQ:9! 2-J0-2Q 9-30-89
Operating Revenue $ 1,123,842 $ 957,720 $ 853,926 s 885,485 $ 840,475
Non-Operating Revenue 8 790 §,QQQ (635) (19,619) (23,406)
Gross Revenue $ 1,132,632 Ii 965,720 Ii 853,291 $ 865,866 $ 817,069
Operating Expense
(excluding depreciation) 906,353 §31,718 795,019 856,88§ 743,458
Net Revenues s ~~1279 s 2341002 s 58,272 $ 81980 I 731611
Roimds of Golf N.A. N.A. 67,006 69,788 66,241
Note: The City hu no outstanding or authorized Golf Course Facilities Revenue Bonds, however, there is $635,000 general
obligation debt outstanding which was issued for golf course facilities which is supported by revenues of the Facilities.
Daily greens fees are (1) weekdays $9.00; (2) weekends -$11.00.
37
OTHER RELEVANT INFORMATION
Ratings
The presently outs!Anding 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 !his issue 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 mak'es 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 1evision or withdrawal of such ratings, or either or both
of them, may have an advenie effect on the market price of the Certificates.
Tux Exemption
The delivery of the Certificates is subject to the opinion of Bond Counsel to the effect that 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 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 ahernative minimum taxable income of the
owners thereof who are individuals or, except as hereinafter descn"bed, corporation. The statute, regulation, ruling, and court
decisions on which such opinion is based are subject lo change.
Interest on all la.le-exempt obligations, including the CertifJCates, owned by a corporation will be included in such corporation's
adjusted net book income for the 1989 tax year, or 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 corporstion, 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 Refonn Act .of 1986 and the
environmental tax imposed by the Superfund Revenue Act of 1986 will be computed.
ln rendering the foregoing opinions, Bond Counsel will rely upon representations and certifications of the City made in a
certificate dated the date of delivery 9f the Certificates pertaining to the use, expenditure, and investment of the proceeds of the
Certificates and will assume eontinuing complianoo by the City with the provisions of the Ordinance subsequent to the issuance
of the Certificates. The Ordinanee contains covenants by the City with respect to, among other matters, the use of the proceeds
of the Certificates and the facilities financed therewith by persons other than state or local governmental units, the manner in
which the proceeds of the Certificates are to be invested, and the 1ep0rting of certain infonnation to the United States Treasury.
Failure to comply with any of these covenants would cause interest on the Certificates lo be includable in the gross income of
the owners thereof from date of the issuanoo of the Certificates.
Except a.s described above, Bond Counsel expresses no other opinion with respect lo any other federal, state or local tax
eonsequences under present law, or proposed legislation, resulting from the receipt or accrual of interest on, or the acquisition
or disposition of, the Certificates. Prospective puNhasers of the Certificates should be aware that the ownership of tax-exempt
obligations such as the Certificatea may result in collateral federal lax consequences to, among others, financial institutions,
life insurance companies, property and casuaky 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 eertAin 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.
The Tax Simplification Act of 1991, as proposed by the chairmen and th,:, ranking minority members of the House Ways and
Means Committee and the Senate Finance Committee, would amend the Code to require certain "large partnerships• to include
in the computation of taxable income at the partnership level for partnership taxable years ending on or after December 31,
l 992, interest on obligations such as the Certificates which otherwise would be excludable from gross income under Section
103(a) of the Code. Prospective purchasers of the Certificates who might be or become "large partnerships" should consult their
own tax advisors regarding the tax consequences of owning the Certificates.
Tax Accounting Treatment or Discount Certlf"icaces
The initial public offering price to be paid for certain Certificates may be less than the principal amount payable on such
Certificate at maturity (the "Discount Certificates"). An amount equal to the difference between the initial pubic offering price
of the Discount Certificate (assuming that a substantial amount of the Discount Certificates of that maturity arc sold to the public
at such price) and the principal amount payable at maturity constitutes interest to the initial purohaser of such Diseount
38
Certificates. A portion of such interest, allocable to the holding period of such Discount Certificate by the initial purchaser,
will, upon the disposition of such Discount Certificates (inelucfmg by reason of its payment at maturity), be treated as interest
excludable &om gross income, rather than as taxable gain, for federal income tax purposes. 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.
However, such interest may be required to be taken into account in dc:tennining the alternative minimum taxable income of a
corporation, for purposes of calculating a corporation's alternative minimum tax imposed by the Tax Reform Act of 1986 and
the environmental tax imposed by the Supcrfund Revenue Act of 1986, and the a.mount of the branch profits tax applic.ahle to
certain foreign corporations doing business in the United States, even though there will not be a corresponding cash payment.
In addition, the ac.:,rual 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.
In the event of the sale or other taxable disposition of a Discount Certificate prior to maturity, the amount realized by the 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 wu held) is includa.ble in gross income.
Owners of Discount Certificates should consult with their own tax advisors with respcet to the dctennination of federal income
tax purposes of accrued interest upon disposition of Discount Certificates and with respect to the state and local tax consequences
of owning Discount Certificates. It is possible that, under applicable provisiollll governing determination of state and local
income taxes, accrued interest on Discount Certificates may be deemed to be received in the year of ac.:,rual even though there
will not be a corresponding cash payment.
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.
Rqlstratloa and Qualification of Certificatei ror 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 the Certificates have not been qualified under the Securities Act of Texas
in reliance upon various exemptions contained therein; nor have the Certlf1Cates been qualified under the securities acts of any
jurisdiction. The City assumes no responsibility for qualification of the Certificates under the seeurlties laws of any jurisdiction
in which the Certificates may be sold, assigned, pledged, hypothecated or otherwise transferred. This disclaimer of
responsibility for qualification for sale or other disposition of the Certificates shall not be construed as an interpretation of any
kind with regard to the availability of any exemption &om securities registration provisions.
Lqal lnvestmenb and Eligibility to Secure Public Funds in Tew
Seetion 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 C011rt decision
to the contrary, and are legal and authorized investments for banks, aavinga banks, trust companies, building and loan
associations, savings and loan usociations, insurance companies, fiduciaries, and trustees, and for the sinking fund of cities,
to'WllS, villages, school districts, and other political subdivisions or public agencies of the State of Texas•. Texas law further
provides that if the Certificates have and maintain a cun-ent rating, as to investment quality, of not less than •A• or its
equivalent, by a nationally recognized rating agency, the Certificates are eligible to aeoure 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 martet value. No
review by the City has been made of the laws in other states to determine whdher the Certificates are legal investments for
various instillltions in those states. To determine whether the Certificates described herein are eligible to secure public
deposils, reference should be made to "Ratings•, above.
~•• Opintoas and No-Litigation CertiflCllt.e
The City will furnish a complete transcript of proceedings incident to the 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 elf«t and to the effect that the interest on the Certificates will be excludable
39
from gross income for federal income tax purposes under. Section .103(a) of the Code, subject to the matters de.sca"bed under
".Tax Exemption" herein, including the alternative minimum tax. on "'°rporations. Tue customary closing papers, including a
certificate to the effect that no litigation of any nature has been filed or is then pending to fl'Slrain 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 or said Certilicates will also be furnished. The legal ree 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 be printed
on the Certificates.
Authenticity or Fmaocial 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 n:alized. All of the summaries. of the statutes, documents and resolutions "'°ntained in this Official
Statement arc made subject to all of the provisions of such 1tatutes, 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 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.liability 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 pollllible impact of any pn:sent, pending or future actions taken by any legislative or judicial bodies.
Certira:atioo or the Ofl'"11:ial Stamoent
Al the time of ~y~ent for and delivery of the Certificates, the Purchasers will be .furnished a certificaie, exec~ 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 this Official Statement, and. any .addenda, supplement or amendmimt 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 4ate of the delivery, were and are true and "'°rrect in all material respects; (b) insofar a.s the City and its affairs, including
its. financial affairs, are concerned, such Official Statement did not and does 1101 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
4ata, of or pertaining to entities, other than the City, and the.ir activities contained in such Official Statement are eoncerned, such
. statements .itnd data have been obtained from sources which the City ~lieves to be reliable and the City hu nq 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 o{ the last audited fmancial statements of the City.
The Ordinance authorizing issuance of the Certificates will. also ~pprove the fo~ and content of this Official Statement, and
: any addenda, supplement or amendment thereto, apd .authorize its further use in the reoffering of the. Certificates bY the
Purchaser ..
ATTEST:
RANETTE BOYD
City Secretary
40
DAVIP R.' LANGSTON
Mayor
City of Lubbock, .Texas
APPENDIX A
GENERAL INFORMATION REGARDING THE CITY
• Amari o
LUBBOCK
•
Fort Worth• • Dallaa
aso
• • San Antonio
Location
The City of Lubbock, County Seat of Lubbock County, Texas, is located on ti1e South Plains of West Texas. Lubbock is the
economic, educational, cultural and medical center of the area.
Population
Lubbock is tiie ninth largest City in Texas:
1910 Census
1920 Census
1930 Census
1940 Census
1950 Census
1960 Census
1970. Census
1980 Census
1990 Census
City of Lubbock
{Corporate Limits)
1,938
4,051
20,520
31,853
71,390
128,691
149,701
173,979
186,206
Metropolitan Statistical Area ("MSA ") {Lubbock County)
1970 Census 179,295
1980 Census 211,651
1990 Census 222,636
Agriculture; Business and Industry
Lubbock is the center of a highly mechanized agricultural area ~Ip. 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 agricu:ltural
income, Official 1991 cotton production in the 25-county area around Lubbock was 2,327,700 bales; 1990 production was
2,950,900 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 semi-conductor products, vegetable oils, heavy earth·
moving machinery, irrigation equipment and pipe, farm equipment, paperboard boxes, foodswffs, mobile and prefabricated
homes, poultry and livestock feeds, boilers and pressure vessels, automatic sprinkler system heads, slructural su:el fabrication
and soft drinks.
Lubbock MSA Labor Foree Estimates
June May April June May Apr ~ -12.2.L 1992 ....!22L ....!22L ....!22L Civilian Labor Force 118,600 116,279 116,600 117,100 114,800 115,300
Total Employment 109,300 109,059 109,300 110,300 108,700 108,800
Unemployment 9,300 7,220 7,300 6,800 6,100 6,500
Percent Unemployment 7.8% 6.2% 6.3% S.8% S.3% S.6%
(1) Subject to revision.
Source: Texas Employment Commission.
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BstimatM non-agricultural wage and salaried jobs in various categories a.s of Ma.y, 1992, were:
Manufacblring
Mining
Construction
Transportation
Trade
7,000
200
3,900
S,200
27,000
Finance, Irunirance and Real Estate
Services
4,600
26,400
Government ~
Total 98,000
Ma.jor employers in Lubbock (wilh 300 employees or rnore) are:
Company
Texas Tech University
ITU Health Sciences Center
Methodist Hospital
Lubbock Independent School District
Reese Air Force Base
City of Lubbock
St. Mary's Hospital
Univenily Medical Center
Texas Instruments, Incorporated
Lubbock Slate School
United Supermarkets
Furr' s Ca.feteria.s
U .s. Postal Service
Fleming Companies, Inc.
Lockheed Coq,oration
Soulhwestem Bell Telephone Company
SUpet'nlmel>I Jnco,porated
Frito Lay
ARA Food Service
Texas Department of Human Se:rvi<:es
Coca-Cola., Dr. Pepper, Seven-Up Botding Co.
Southwestern Public Service Company
Lubbock Regional Mental Heallh and
Mental Retardation Center
Lubbock Avalanche--Joumal
Marriott Corporation
* Full and part time.
** Milituy and civilian.
Product
State U niversily
Medical and Allied Health School
Hospital
Public Schools
U.S. Militaey Installation
City Government
Hospital
Hospital
Electronics Manufacturer
School for Mentally Retarded
Retail Groceries
Cafeterias
Post Office
Wholesale Groceries
Contract Afrct:aft Maintenance at
Reese Air Force Base
Telephone Utility
Retail Groceries
· Food Ma.nufacturing and Sales
Food Broker
St.ate of Texas Agency
Soft Drink Bottling
Electric Utility
Slate of Texa.s Agency
Daily Newspaper
Hotel/Housekeeping a.nd Hotel
Management
Source: Of&e of Economic Development, Cil;y of Lubbock, Texas.
Education ••• Tens Tech UniversiQ, •••
Estimated
Employees
June, 1992
7,705*
3,264
3,200
3,1'0
2,320**
2,114
1,867
1,700
1,200
964
925*
800
644
S25
464
44.5
400
386
385
381
350*
348
340*
340
:103*
Established in Lubbock in 1923, Texas Tech University is the fifth largest State•owned University in Texas a.nd had • Spring,
1992, enrollment of 22,766. Accredited by lhe Southern Associalion of Colleges and Schools, die University is a co-educmi.onal,
State-supported institution offering lhe bachelor's degree in 158 majQr fields, the mastec's degree in 107 majQr fields, the
doctorate degree in 64 major fields, and the professional degree in 2 major fields (law and medicine).
The University proper is siwated on 451 acres of the 1,829 acre campus, and has over 160 penruinent buildings with additional
oonstruction in progress. Spring, 1992, faculty membership was 867 full-time and 720 part-time. Including the Health Sciences
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Center, the University's operating budget for 1991-92 is $360.3 million of which $166.9 million is from State appropriations;
book value of physical plant assets, including the Health Sciences Center, is in excess of $562 million.
The medical school had an enrollment of 390 for Spring, 1992, not including residents; there are 33 graduate students. The
School of Nursing had a Spring, 1992, enrollment of 307 including the Perniian Ba.sin Program, located in Midland/Odessa;
there were 34 graduate students. The Allied Health School had a Spring, 1992, enrolhnent of 138.
Other Education Information
The Lubbock Independent School District, with an area of87.5 square miles, includes over 90% of the City of Lubbock. There
are approximately 3,150 total employees, including 2,461 certified (professional) personnel and 689 other employees. The
District operates five senior high schools, nine junior high schools, 40 elementary schools and other educational programs.
Scholastic Membership History*
Refmed
Average
,. School Student Daily
Year Membership ti,ttgidance
1986-87 29,490 27,837
1987-88 30,955 28,194
1988-89 30,828 28,159
1989-90 30,861 28,373
1990-91 30,684 28,101
1991-92 30,736 28,090
* 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 1,029
for the Spring Semester, 1992.
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/vocatiorial subjects; Spring
Semester, 1992, enrollment was 1,314. The College also operates a major off-campus lear{iillg center at Reese Air Force Base;
course offerings are in primarily academic subjects; Spring Session, 1992, enrolbnent was 860. ,
The State of Texas School for the Mentally Retarded, located on a 226-acre site in Lubbock, consis,ts of 40 building~ ~th bed-
capacity for 440 students; 422 students were in residence in June, 1992. The School's operating budget fod 991/92 is in excess
of $20.0 million; there are 964 professional and other employees.
Transportation
Scheduled airline transportation at Lubbock International Airport is furnished by American Airlines, Delta Airlines, 'Southwest
Airlines, Continental Express and American Eagle; non-stop service is provided to Dallas~Fort Worth lnternation,al Airport,
Dallas Love Field, El Paso, Austin, Amarillo and Albuquerque. 1991 passenger boardings totaled 561,588. 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;,Lo's,Angeles and San Francisco. Short-haul rail service is also
furnishe,i'by the Seagraves, Whiteface and Lubbock Rai:lroad: Texas, New Mexico and Oklahoma Bus Lines,la subsidiary of
Greyhound Corporation, ,provides bus service. Several motor freight common carriers provide service.
Lubbock:'ha
0
S a well developed highway ~etworkmcluding Interstate 27 (Lubbo~k-Amarillo),_4 U.S.1:Jighways; 1 Slate Highway, a controlled:access-outer loop and a county-wide system of paved farm-to-marlcet roads:·. ' ,
Government and Military
Reese Air Force Base, located adjacent to the western boundary of Lubbock, is an undergraduate Jet Pilot Training Base of the
Air Training Command. The Base covers over 3,000 acres and has approximately I, 744 military, 576 civilian and 683 contract
personnel.
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State of Texas ... More than 25 State of Texas boards, departments, agencies and commissions have offices in Lubbock;
several of these offices have multiple units or offices.
Federal Government .•. Several Federal departments and various other administrations and agencies have offices in Lubbock;
a Federal District Court is located in the City.
Hospitals and Medical Care
There are eight hospitals in the City with over 1,750 beds. Methodist Hospital is the largest and also operates an accredited
nursing school. Lubbock County Hospital District, with boundaries contiguom with Lubbock County, owns the University
Medical Cent.er which it operates as a teaching hospital for the Texas Tech University Medical School. There are numerous
clinics and over 400 practicing physicians and &Uficons (M.D.) plus the Texas Tech University Medical School Staff, and over
90 dentists. A radiology center for the tre.alment of malignant diseases is located in the City.
Recreation and Entertainment
Lubbock's Mackenzie Regional Parle and over 65 City parks and playgrounds provide recreation centers, shc:lter 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 La.Ices system of four lakes and 500 acres of adjacent partland 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 Cent.er program. Approximately SO acres contain the 300,000 square foot Lubbock Memorial Civic
Center, the main City library building and State Department of Public Safety offices; a SO acre peripheral area has been
redeveloped privately with office buildings, hotels and motels, a hospital and other facilities.
Available to resident• are Texas Tech University programs and events, Texas Tech University Museum, Planetarium and Ranch
Heritage Center e1'bibits 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 b'brary 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 2SS churches representing more than 25 denominations.
Utility Services
Wal.er 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.
A-4
Economic Indices (I)
Utilitx Connectious
B11ilding Electric
Year fS:IJllils Water ___!!!!_ . (LP&L On1X)!2l
1982 $130,720,599 56,172 54,650 34,987
1983 230,440,777 58,034 54,927 37,282
1984 212,353,170 59,262 56,540 39,037
1985 168,740,229 60,051 56;600 40,506
1986 139,317,252 60,751 56,900 41,759
1987 100,046,309 61,027 57,266 42,696
1988 105,159,525 61,628 57,886 43,781
1989 105,363,072 61,857 60,312 44,518
1990 140,855,719 62,178 61,700 45,301
1991 131,333,756 62,267 60,803 46,245
(1) All data as of 12-31; Source: City of Lubbock.
(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.
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t ilullding Permits by Classil'leation Residential &mlil! Commercial, Single Familx Du2le11es Aimrtmen!!!ll Total Resid!!lllml Public Total Calendar No. No. Permits No • No. Permits and Other Building .....Ys!L Units V11l11~ £Units} Value Units Value Units Y!ll!!l Permits Permits 1982 733 $56,023,000 34( 68) $ 2,442,250 860 $18,504,660 1,661 $ 76,969,910 $ 53,750,689 $130,720,599 1983 1,166 88,830,7SS 135(720) 11,786,500 2,520 59,356,586 3,956 159,973,841 70,466,936 no,440,m 1984 919 65,SlS,llS 56(112) 6,068,500 645 16,546,000 1,676 . 88,429,615 123,923,555 212,353,170 1985 601 S0,100,350 33( 66) 2,586,300 96 2,664,000 763 5S,3S0,650 113,389,579 168,740,229 1986 5119 49,329,236 7{ 14) 566,000 --0---0-613 49,895,236 89,422,016 139,317,252 1987 508 44,466,937 --0---0---0---0-sos 44,466,937 SS,519,372 100,046,309 19!!8 414 35,588,945 --0---0---0---0-414 35,588,945 69,570,580 IOS,1S9,S2S 1989 368 31,34S,37S 6( 12) 440,800 --0---0-374 31,786,175 73,576,897 105,363,072 1990 368 3S,6S2,140 --0---0-8 416,000 376 36,068,140 104,787,579 140,855,719 1991 424 38,574,190 --0---0---0---0-424 38,574,190 92,159,566 131,333,756 (1) Data shown under "No. Units" is for each individual apartment dwelling unit, and is not for separate buildings; includes triplex and quadruplex permits. Soun::e: City of Lubbock, Tex.as.
The following Information roncerning the Eltttric Light and Power System and the Airport System ii £or general
information onl:,.
Lubbock Power and 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 large.st 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 aU of the City is covered by both systems, each of which has paraUel 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. AP. of January, 1992, the System served 57.3% of aU connections.
Southwestern was en,nted a new 20-year franchise in 1982. The company pays the City a franchise tax of 3 % of its gross
=ipts which is deposited into the City's General Fund; LP&L makes an equivalent in lieu of payment to the General Fund
of the City. All of 1anuary, 1992, Southwestern supplies power lo approx.imately 43% of the customer.& in Lubbock.
LP&L generates part of its power requirements through the use of three generating statiolll! located within th~ City. These plants
are geographicaUy separated and deliver bulk power to sub.stations through a 69 kilovolt (kV) transmission loop system.
LP&L currently contracts for the purchase of 25 megawatts (M'W) of power from Southwestern; power is delivered via two
interconnections, each capable of delivering up to 100 MW to LP&L.
Qenerating 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 Station) is base loaded. Generating units consist of the foUowing:
Generator
Year Capacity
Magy(aiayrer Installed ~!ion Prime Mover Fuel in kW
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 Gu or Oil 12,500
General Electric 1965 Holly Steam Turbine Gaa or Oil 44,000
Worthington 1971 Holly Gas Turbine Gas or Oil 18,000
General Electric 1974 HoUy 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 "finn power•,. "emergency energy" and
"non-finn" energy; non-furn energy purchases by LP&L are made on an economic dispatch basis and are subject lo
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. The City specifies its firm power requirements five years
in advance subject to adjustment by plus 'Qr mi;jus 30% at least one ye,ir in advanc.e. LJ?&.L h,as~<leiiignated 25 ~W for 1992,
30 MW for 1993, 40 MW for 1994 and 1995 and 45 MW for 1996. Southwestern will make •~h finn ~ and energy
available to LP&L as specified, provided it has sufficient capacity in its existing facilities for any requested increase.
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Southwestern serves an area covering the Panhandle and South Plains of Texas and pa!1ll of eastern New Mexico with an
integrated electric generating and distribution system.
Fuel Supply .•• Present primary fuel supply for LP&L 's generating system is natural gas, which is supplied by Adobe Oas
Pipeline Company, Adobe Gas Marketing Company snd Prudential-Bache Energy Growth Fund; LP&L has other 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 the lowest cost energy at all times.
Secondary fuel in the form of fuel oil is maintained in storage in the City. LP&L 's pn::sent storage capability of fuel oil, for
standby, secondary fuel, is over 1,S00,000 gallons, an adequate supply of fuel oil for S days operation; with expected re-supply,
this period would the substantially extended. The 1978 Holly steam generator hss a multi-fuel capability as it is designed to bum
natural gas or all grades of fuel oil. In practice LP&L maintains approximately 600,000 gallons of fuel oil in storage due to
the availability of purchased power and back-up gas supply.
Transmission and Di!'tnoution ... A 69,000 voh (69 kV) tmnsmission loop system, 74.4S miles in length, provides bulk power
to ten 69,000/12470 bulk substations with a combined base capacity of 321 megavolt am!"' (MVA). With all cooling systems
in operation, these substations could provide up to 482 MV A. Of the above 691cV transmission lines, 27,41 miles have been
constructed for operation at 115 kV. When system load dictates, these lines will be energized to llSlcV and provide an
additional 2S0% of transmission capacity due to the increased voltage. LP&L also has two inlcrconnections with Southwestern
Public Service which can provide up to 200 MV A of additional power; these interconnections a.re tied to LP&L through 4.33
miles of 230 kV transmission lines.
The distribution system includes approximately 656 mil"" of overhead distribution lines and approximately 201 miles of
underground distribution lines. There are six 12,470/4160volt substations in the distribution system. Net system load for Fiscal
Year Ended September 30, 1991, was 958,946,784 lcilowatt hours (kWh) with a pcaJc demand of202,000kW.
Continuing Transmission and Distribution System Improvement Program .•. A transmission and distribution system construction
and improvement program using internally genersted funds is in progress.
Substation Construction and Facilities Relocation Program ... Proceeds of $7,500,000 Electric Light and Power System
Revenue Bonds, Series 1991, sold April 2S, 1991, are being used to:
(1) Conslruct a "South Substation" to meet expected load growth in south and southwest Lubbock and expected load
growth a.long the 1-27 corridor; this substation will also prevent future voltage problems in this region; this substation
consists of two 15/2012S MV A transformers with all required substation facilities, 69 kV transmission line extensions
and 12.S kV distribution feeder lines.
(2) East/West freeway Clearing .•. The State's construction plans for an east/west freeway across Lubbock indicate
that a major 69 kV lrllnsmission line along with numerous distribution lines will need to be relocated. The majority
of these lines are located on or along existing public streets and alleys and consequently are not eligible for
reimbursement by the Texas Department of Highways and \loill be relocated.
Electric Rates
Electric rates in the City are set by City Council Ordinance and are the same for LP&L and Southwestern except for chun:h,
school and municipal rates, and minor variations in billing policies, and South Plains Electric Cooperative customel'll. Present
rates became effective June 1, 1989.
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Selected Electric Rates (Effective 6-1-1989)
Residential
Service Availability Charge
All kWh per month @ 3.93C per kWh
Plus: Fuel Cost Recovery
General Service
Service Availability Charge:
First 1,000 kWh per month
Next 6,000 kWh per month
Next 6,000 kWh per month
All additional kWh per month
$ 4.66 per month
$12.48 per month
5.24C per kWh*
2.22C per kWh
l .0Sc per kWh
. 0.55c per kWh
* Add to the 5.24C block 200 kWh for every kW of demand in excess of 10 kWs.
Demand: Measured as the customers kW demand for the 30-rninute period of greatest use during the month.
Plus: Fuel Cost Recovery.
Minimum Charge: $12.98 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.
Condensed Statement of Operations -Electric Light and Power System
Fiscal Year Ended 9-30
1991 1990 1989 1988 1987
Operating Revenues $ 49,142,199 $ 49,271,634 $ 49,285,975 $ 49,102,951 $ 44,514,574
Non-Operating Income 3,247,106 2,926,158 3,802,433 2,629,613 803,100
Gross Revenues $ 52,389,305 $ 52,197,792 $ 53,088,408 $ 51,732,564 $ 45,317,674
Operating Expense
(ex~luding depreciation) 33,225,153 33,730,001 34,442,694 31,928,152 32,649,325
Net Revenues ! 19,164,152 i 18,467,791 i 18,645,714 i 19,804,412 i 12,668,349
Electric Connections 46,014 45,114 43,315 43,781 42,702·
Maximum Principal and Interest Requirements, Electric System Revenue Bonds,
Fiscal Year Ending 9-30-92 .•..•.•.•.•...•..... ·. · ......••••.......••• : . • . . • . • $ 6,909,297
Coverage by Net Revenues, Fiscal Year Ended 9-30-91 •.....•...•....•.••••••••••..••.• , 2.77 Times
Electric Light and Power System Revenue Bonds Outstanding 9-30-91 • . • • • • • • • • • • • • . • . . . • • . $ 43,294,965
Interest and Sinking Fund, 9-30-91 • . • . • . • . . . . . . . . . . . . . • . • . . . • . . . . . . . . . . . . . . . . . • $ 5,880,712
Reserve Fund, 9-30-91 • • • . • . • • • • • • • • . . . • . • • • . . • . . . . . • . . • . • . • . • . . . . . • . . . . . . $ 3,413,183
The charge per kilowatt hour shall be increased by a fuel factor per kilowatt hour as provided in current Southwestern Public
Service Tariff 7100 (Public Utility Commission of Texas sheet N-69). The fuel factor will remain conotant for approximately
one year. At this time the fuel factor is $0.020636/kWh. All rates are subject to fuel cost recovery.
Airport System
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 diotrict and has an area of 3, 148 acres, of which approximately 1,900
acres is used for farming and clear zones.
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Scheduled Airljne Service . . . Schedule airline transportation is furnished by American Air Lines, Delta Airlines, Southwest
Airlines, Continental Express and American Eagle. Non-stop scheduled service is provided to Dallas-Fort Worth International
Airport, DallAs Love Field, El Pa&o, Austin, Amarillo and Albuquerque. 1991 passenger enplanements were 561,558.
Lubbock lntematjonal Airport Terminal ... 1be terminal building contains approximately 222,000 square feet; the terminal
houses airport administrative offices, airline offices and ticket counters, the baggage claim area, car n:ntal offices, a n:staurant
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 old terminal building has been converted to government and
commercial office space and houses a Federal Aviation Administration ("FAA") Flight Standard District Service Office.
Runway SVjltem ... The runway system consists of:
1 • 11,500' x 150', north/south, primary runway with high intensity lighting and a FAA-<>perated instrument landing
system and other navigational aids; ·
8,000' x 150', easl/we.t, cross-wind nmway, 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 lhe airport houses some general aviation
services, a National Weather Service office and a U.S. Customs office. General aviation services are mainly available from
two west-side located major fixed base operators who provide hangars, aprons, fuel sales and other services for private aviation.
100 T-Hangars house most of the approximately 200 private aircraft that are based at the airport. Construction was completed
in February, 1991, on a $5.2 million dollAr project, partially funded by Federal participation, to provide reconstruction of the
west cargo ramp which provides aircraft parking space for air freight operations, two bypau taxiways to improve traffic fiow
for runway 17 right and new underground wiring for all lighted taxiways of the airport. Tim new construction serves both
general and commercial aviation facilities.
Warehouse. Hangar and Land Rentals ... The airport has five 16,000 square foot warehouses and six other warehouses for
storage space rental.
A 40,000 square foot hangar was completed and leased to lhe FAA on March 9, 1992.
Industrial ... Two steel companies. two researeh companies and a manufacturing company are located at the airport.
Condeased Statement or Operations • Airport
Eiscal Year En~ 9-~Q
1991 1990 1989 1288 19!!7
Operating Revenues $4,064,177 $3,810,310 $3,617,038 $3,223,095 $2,966,294
Non-Operating Revenue ~-2J2 208,665 ~~-~18 146,809 U3,l82
Gross Income $4,330,414 $4,018,975 $3,672,556 $3,369,904 $3,079,476
Operating Expense
(excluding depreciation) ~.618,409 ~-12UiH: ~.222.432 J.031,m ::,78S,283
Net Revenue $ 712,005 $ 826,361 $ 450,119 $ 331,729 $ j!94,193
Maximum Principal and Interest Requirements, Airport Revenue Bonds,
Flllcal Year Ending 9-30-92 .•.....•...........................••.•...........•
Coverage by Net Revenue, Fiscal Year Ended 9-30-91 ..........•................••......
Airport Revenue Bonds Outstanding, 9-30-91 .•............ , ••..............•••....•..
Interest and Sinking Fund, 9-30-91 ............•............•.........••...........
Reserve Fund, Cash and Investments, 9-30-91 ........•...........••......•.......•....
A-10
$ 118,258
6.02 Times
$ 625,000
$ Sl,084
S 300,000
THIS PAGE LEFT BLANK INTENTIONALLY
APPENDIX B
FORM OF BOND COUNSEL'S OPINION
TELEPHONE: Z14/8$!M!OOO
F'ACSIMILI!:: 214/655~8200
FULBRIGHT & JAWORSKI
2200 Ross AVENUE
SUITE 21300
DALLAS, TEXAS 75201
HOUSTON
WASHINGTON, D.C.
AUSTIN
SAN ANTONIO
DALLAS
NEW YORK
LOS ANGELES
LONDON
ZURICH
HONG KONG
WE HA VE EXAMINED into the legality and validity of the issuance of the "City
of Lubbock, Texas, Tax and Waterworks System (Limited Pledge) Revenue Certificates
of Obligation, Series 1992" (the "Certificates"), dated August 15, 1992 (the "Certificate
Date"), in the principal amount of $7,565,000, 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, 1993 through February 15, 2012, unless redeemed prior to maturity,
in accordance with the terms stated on the face of the Certificates, and bear interest
on the unpaid principal amount from the Certificate Date at the per annum rates stated
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, 1993, to the registered owners shown on the registration books of the
Paying Agent/Registrar on the Record Date (stated on the face of the Certificates).
WE HA VE 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 the sources and secured in the manner provided in the Ordinance,
except to the extent that the enforceability 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.
29076
Page 2 of Legal Opinion of Fulbright & Jaworski
RE: $7,565,000 "City of Lubbock, Texas, Tax and Waterworks System (Limited
Pledge) Revenue Certificates of Obligation, Series 1992", dated August 15, 1992
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
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 net book income, for the tax year 1989, or 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 and the environmental tax imposed by
Sections 56 and 59A of the Code, respectively, will be computed for tax years beginning
after December 31, 1986.
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.
No Text
FU LB RIG HT &. JAWORSKI
TELEPHONE: .214/!l!SS-eooo
P'ACSIMILE:: 214/1!$5•8200
WFUTER'S OIR!!:CT CHAL NUM Bl!:A;
214/855·81!S4
Ms. Ranette Boyd
City Secretary
City of :{..,ubbock, Texas
1625 13th Street
Lubboc~, Texas 79401
2200 Ross AVENUE
SUITE 2800
DALLAS, TEXAS 75201
September 29, 1992
HOUSTON
WASHINGTON. O.C,
At.lSTIN
SAW ANTONIO
DALLA$
NEW YORK
LO$ ANGELES
LONOON
%URICH
MONG KONG
RE: $~,565,000 City of. Lubbock, Texas, Tax and Waterworks System (Limited
Ijledge) Revenue Certificates of Obligation, Series 1992
Dear Ms. Boyd:
l
Enclosed please find the transcript of proceedings relating to the captioned
certific~tes of obligation. · ·
!
Please call if you have any questions.
i
RFR:lc
Enclosure '
~~ Richard F. Roman
No Text
,...
TRANSCRIPT OF PROCEEDINGS
RELATING TO
$7,565,000
CITY OF LUBBOCK, TEXAS
TAX AND WATERWORKS SYSTEM (LIMITED PLEDGE)
REVENUE CERTIFICATES OF OBLIGATION,
SERIES 1992
ISSUED BY
CITY OF LUBBOCK
COUNTY OF LUBBOCK
STATE OF TEXAS
Fulbright & Jaworski
2200 Ross Avenue, Suite 2800
Dallas, Texas 75201
No Text
DOCUMENT
NUMBER
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
33552
'l'RAHSCRIPT OF PROCEEDINGS
Relating to
$7,565,000
City of Lubbock, Texas,
Tax and waterworks system (Limited Pledge)
Revenue Certificates of Obligation,
series 1992
DOCUMENT NAME
Opinion
Resolution Declaring Expectation to Reimburse
Expenditures with Proceeds of Future Debt
Resolution Approving and Authorizing Publication of
Notice of Intention to Issue Certificates of
Obligation
Affidavit of Publication Relating to Notice of
Intention
Affidavit of Publication Relating to Notice of Sale
Ordinance Authorizing the
certificates of Obligation
Issuance of the
Paying Agent/Registrar Agreement
Letter of Representations
General Certificate
Certificate as to Tax Exemption
Signature & No-Litigation Certificate
Attorney General
Registration
Receipt for Payment
Opinion and
Certificate as to Official Statement
Official Statement
8038-G
comptroller's
No Text
Tlt'-1::PHONIC: 214/8515•8000
f'ACSIMIL!:: 21,4/855.,$,i:OO
FULBRIGHT & JAWORSKI
2200 Ross AVENUE
SUITE 2eoo
DALLAS, TEXAS 75201
SEP O 9 1992
HOUSTON
WASHINGTON, C,,C,
AUSTIN
SAN ANTONIO
OAl.'-AS NEW YORK
1.0$ ANGl::1.£$
1.0NC,ON
ZURICH
HONG KONG
WE HA VE EXAMINED into the legality and validity of the issuance of the "City
of Lubbock, Texas, Tax and Waterworks System (Limited Pledge) Revenue Certificates
of Obligation, Series 1992" (the "Certificates"), dated August 15, 1992 (the "Certificate
Date"), in the principal amount of $7,565,000, 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, 1993 through February 15, 2012, unless redeemed prior to maturity,
in accordance with the terms stated on the face of the Certificates, and bear interest
,,... on the unpaid principal amount from the Certificate Date at the per annum rates stated
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, 1993, to the registered owners shown on the registration books of the
Paying Agent/Registrar on the Record Date (stated on the face of the Certificates).
WE HA VE 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 \\ith the
provisions of the Ordinance are valid, legally binding and enforceable obligations of the
City payable from the sources and secured in the manner provided in the Ordinance,
except to the extent that the enforceability 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.
No Text
,..
Page 2 of Legal Opinion of Fulbright & Jaworski
RE: $7,565,000 "City of Lubbock, Texas, Tax and Waterworks System (Limited
Pledge) Revenue Certificates of Obligation, Series 1992", dated August 15, 1992
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
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 net book income, for the tax year 1989, or 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 and the environmental tax imposed by
Sections 55 and 59A of the Code, respectively, will be computed for tax years beginning
after December 31, 1986.
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.
,.
,...
Resolution No. 3907
June 11, 1992
Item 1119
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 11th day of June, 1992, 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
T, J. PATTERSON
MAYOR
MAYOR PRO TEM
~ MAX INCE COUNCILMEMBER
~ ALEX "TY" C00KECOUNCILMEMBER
MAGGIE TREJO COUNCILMEMBER
M.J. ADERTON COUNCILMEMBER
RANDY NEUGEBAUER COUNCILMEMBER
all of said persons were present at said meeting, except the
following: NONE • Among other business
considered at said meeting, the attached resolution entitled:
A RESOLUTION declaring expectation to reimburse
expenditures with proceeds of future debt.
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 Councilmember Randy Neugebauer
and seconded by councilmember Maggie Trejo the resolution was
finally passed and adopted by the council by the following vote:
__ 7_ voted "For" __ o __ 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 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 the City
on the date of the aforesaid meeting are those persons shown above
and, according to the records of my office, each member of the
council was given actual notice of time, place and purpose of the
meeting and had actual notice that the matter would be considered;
and that said meeting, and deliberation of the aforesaid public
No Text
business, was open to the public and written notice of said
meeting, including the subject of the entitled resolution, was
posted and given in advance thereof in compliance with the
provisions of Article 6252-17, Section 3A, V.A.T.c.s.
IN WITNESS WHEREOF, I have hereunto signed my name officially
and affixed the seal of said City, this the 11th day of June, 1992.
(City Seal)
Z1007 -2-
Secretary Ranette Boy
f Lubbock, Texas
No Text
i !
I ',...
Resolution No. 3907
June 11, 1992
Item 1119
A RESOLUTION DECLARING EXPECTATION TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT
STATE OF TEXAS § s
COUNTY OF LUBBOCK S
WHEREAS, the city of Lubbock, Texas (the "Issuer") intends to
make capital expenditures for a 550-bed psychiatric hospital for
the Texas Department of Corrections (the "Expenditures") and
currently desires and expects to reimburse the Expenditures with
proceeds of debt to be incurred hereafter for such purpose;
WHEREAS, under Treas. Reg. S 1.J.03-18 (the "Regulation"), to
fund such reimbursement with proceeds of tax-exempt obligations the
Issuer must declare its expectation ultimately to make such
reimbursement before making the Expenditures; and
WHEREAS, the Issuer desires to preserve its ability to reimburse the Expenditures with proceeds of tax-exempt obligations.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF LUBBOCK, TEXAS, that the Issuer reasonably expects to reimburse
the Expenditures with proceeds of debt hereafter to be incurred by
the Issuer in a principal amount which the Issuer expects will not
exceed $2,600,000 and that this resolution shall constitute a
declaration of official intent under the Regulation.
(City Seal)
21004
No Text
,,,..
,..
,..
Resolution No. 3927
July 9, 1992
Item H22
CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS § 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 9th day of July, 1992, the City council of
the City of Lubbock, Tex:as, 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
MAGGIE TREJO
T. J. PATTERSON
M.J. "BUD" ADERTON
MAX INCE
RANDY NEUGEBAUER
ALEX "TY11 COOKE
MAYOR
MAYOR PRO TEM
COUNCILMEMBER COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
all of said persons were present at said meeting, except the
following: T • J • Patterson • 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
notice of intention to issue certificates of
obligation and a notice of sale with respect to
such certificates of obligation.
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 Councilmember Randy Neugebauer
and seconded by Councilmember Max Ince the resolution was
finally passed and adopted by the Council by the following vote:
6 voted "For" __ o_ 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 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 the City
on the date of the aforesaid meeting are those persons shown above
and, according to the records of my office, each member of the
No Text
..
Council was given actual notice of time, place and purpose of the
meeting and had actual notice that the matter would be considered;
and that said meeting, and deliberation of the aforesaid public
business, was open to the public and written notice of said
meeting, including the subject of the entitled resolution, was
posted and given in advance thereof in compliance with the
provisions of Article 6252-17, section 3A, V.A.T.c.s.
IN WITNESS WHEREOF, I have hereunto signed my name officially
and affixed the seal of said city, this the 9th day of July, 1992.
(City Seal)
26419 -2-
'·
,..
Resolution No. 3927
July 9, 1992
Item #22
A RESOLUTION by the City Council of the City of Lubbock,
Texas, approving and authorizing publication of
notice of intention to issue certificates of
obligation and a notice of sale with respect to
such certificates of obligation.
WHEREAS, the Citr Council of the City of Lubbock, Texas, has
determined that cert ficates 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) land acquisition and site
improvements including water system and sewer system extensions and improvements in connection with construction of a correctional
facility (approximately $4,000,000); (ii) solid waste disposal
system improvements (approximately $3,565,000); and (iii)
professional services rendered in connection therewith; 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 inappropriate to publish a notice of sale with respect to
such certificates; 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 $7,565,000 for the purpose of paying
contractual obligations to be incurred for (i) land acquisition and
site improvements including water system and sewer system
extensions and improvements in connection with construction of a
correctional facility (approximately $4,000,000); (ii) solid waste disposal system improvements (approximately $3,565,000); and (iii)
professional services rendered in connection therewith, such
certificates to be payable from ad valorem taxes and a limited lien
on and a limited pledge of the net revenues of the City's
waterworks System. The notice hereby approved and authorized to be
given shall read substantially in the form and content of Exhibit A hereto attached and incorporated herein by reference as a part of
this resolution for all purposes.
Section 2: That such notice 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 J: That the City Secretary is hereby authorized and
directed to cause a notice of sale to be published relating to the
26421
No Text
-
,..
sale of the certificates of obligation in the principal amount not
to exceed $7,565,000. The notice of sale hereby approved and
authorized to be published 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 4: That the City Secretary is hereby authorized and
directed to cause a notice of sale to be published once each week
for a period of thirty days.
26421
PASSED AND APPROVED, this the 9th day of July, 1992.
Mayor,,-.... . .£ .. .,.,
David R. Langston
Maggie Trejo, Mayor Pro-Tem
No Text
,..
,...
EXHIBIT A
NOTICE OF INTENTION TO ISSUE
CITY OF LUBBOCK, TEXAS, CERTIFICATES OF OBLIGATION
NOTICE IS HEREBY GIVEN that the City Council of the City of
Lubbock, Texas, will convene at its regu~ar meeting place in the
city Hall of Lubbock, Texas at 11:00 o'clock A.M. on the 13th day
of August, 1992, 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 SEVEN MILLION
FIVE HUNDRED SIXTY-FIVE THOUSAND DOLLARS ($7,565,000) for the
purpose of paying contractual obligations to be incurred for (i)
land acquisition and site improvements including water system and
sewer system extensions and improvements in connection with
construction of a correctional facility (approximately $4,000,000);
(ii) solid waste disposal system improvements (approximately
$3,565,000); and (iii) professional services rendered in connection
therewith, such certificates to be payable from ad valorem taxes
and a limited lien on and limited pledge of the net revenues
derived from the operation of the City's waterworks System. 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 Secretary, City of
Lubbock, Texas
No Text
,,..
EXHIBIT B
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., Central Daylight
Time, August 13, 1992, for the following described Certificates of
Obligation;
$7.565.ooo city of Lubbock. Texas
Tax and waterworks system (Limited Pledge)
Revenue Certificates of Obligation. series 1992
Dated August 15, 1992; principal due February 15 of each
year as follows: $635, 000 each year 1993 and 1994, $640,000 each year 1995 through 1997, $475,000 each year
1998 through 2002, $200,000 each year 2003 through 2012;
interest payable February 15, 1993 and each August 15 and
February 15 thereafter. The City reserves the right, at
its option, to redeem Certificates maturing on and after
February 15, 2003, on February 15, 2002, 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, First City Center Building, 1700
Pacific Avenue, Suite 500, Dallas, Texas 75201, Financial
Consultants to the City.
(City seal)
26467
Ranette Boyd
City Secretary
City of Lubbock, Texas
No Text
AFFIDAVIT OF PUBLICATION
THE STATE OF TEXAS S
COUNTY OF LUBBOCK S
CITY OF LUBBOCK S
BEFORE ME, the undersigned authority, on this day personally
appeared _...,_,~t-:-~r-n....,.-,-,:--:---:-~-• who, after being by me duly
sworn, depoJ'~s -vn~'4Ui'd that (s)he is the -=;y--.r.:c==~ of the Lubbock Avalanche-Journal, which is a nifff>li\&i'f'iMS!Eshed and having general circulation in the City of Lubbock, Texas, and that
a true and correct copy of the "NOTICE OF INTENTION TO ISSUE CITY
OF LUBBOCJC, TEXAS, CERTIFICATES OF OBLIGATION" hereto attached, was
published in said paper on the following dates:
July 12, 1992; and
July 19, 1992
the date of the first publication of said notice being 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.
SWORN TO AND SUBSCRIBED BEFORE ME, this the
-~A~u~•~uN•rlt-----• 1992. 6 day of
(Notary Seal)
PATTIT~~
• Notary Pllbf1c. Staie ot t exas
• My comm1!1S·,it hi11res &;~-96 J
~~,:,e.~~
NotaryPublic, state of/~J~,/ My Com.mission Expires: c;, 'O '9v, " .. t
No Text
,..
...
AFFIDAVIT OF PUBLICATION
THE STATE OF TEXAS S
COUNTY OF LUBBOCK S
CITY OF LUBBOCK S
BEFORE ME, the undersigned authority, on this day personally
appeared T 'if "Ii ~t;f~ , who, after being by me duly
sworn, depcfs& 7r ys that (s)he is the A~o!f.'\:: n~~ff' of the Lubbock Avalanche-Journal which is a new a e u shed and
having general circulation in the City of Lubbock, Texas, and that
a true and correct copy of the "NOTICE OF SALE," hereto attached,
was published in said paper on the following dates:
JULY 12 , 1992;
JULY 19, 1992;
JULY 26, 1992;
AUGUST 2, 1992;
AUGUST 9, 1992;
the date of the first publication of said notice being at least
thirty (JO) days prior to the date of the public sale for the
obligations referred to therein.
Accotm\ Hanattr
SWORN TO AND SUBSCRIBED BEFORE ME' this the , , day of
_.AMU~f~ti~64t-----• 1992
(Notary Seal)
26426
Nota~yPublic, ... State of ~ ,/
My Commission Expires: bJ '?~
#
No Text
CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS S 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 13th day of August, 1992, 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
MAGGIE TREJO
T. J. PATTERSON
M.J. "BUD" ADERTON
MAX INCE
RANDY NEUGEBAUER
ALEX "TY" COOKE
MAYOR
MAYOR PRO TEM
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 ordinance entitled:
ORDINANCE NO. 9542
AN ORDINANCE authorizing the issuance of "CITY OF
LUBBOCK, TEXAS, TAX AND WATERWORKS SYSTEM (LIMITED
PLEDGE) REVENUE CERTIFICATES OF OBLIGATION, SERIES
1992"; levying an ad valorem tax upon all taxable
property in the City and pledging 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 and
distribution of an Official Statement pertaining
thereto; and providing an effective date.
was 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. J. Patterson and seconded
by Randy Neugebauer the ordinance was duly passed and adopted by
the Council on first reading by the following vote:
__ ?_voted "For" o voted "Against" __Q_abstained
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all as shown in the official Minutes of the Council for the meeting
held on the aforesaid date.
2. That the attached ordinance 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 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
subject of the entitled ordinance, was posted and given in advance
thereof in compliance with the provisions of Article 6252-17,
section 3A, V.A.T.c.s.
IN WITNESS WHEREOF, I have hereunto signed my name
officially and affixed the seal of said City, this the 13th day of
August, 1992.
~--C3£ dt.Fecretary '
City of Lubbock, Texas
(City Seal)
29077 -2-
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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 14th day of August, 1992, the City Council of
the City of Lubbock, Texas, convened in special 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
MAGGIE TREJO
T. J. PATTERSON
M.J. "BUD" ADERTON
MAX INCE
RANDY NEUGEBAUER
ALEX 11TY11 COOKE
MAYOR
MAYOR PRO TEM
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 ordinance entitled:
ORDINANCE NO. 9542
AN ORDINANCE authorizing the issuance of "CITY OF
LUBBOCK, TEXAS, TAX ANO WATERWORKS SYSTEM (LIMITED
PLEDGE) REVENUE CERTIFICATES OF OBLIGATION, SERIES
1992"; levying an ad valorem tax upon all taxable
property in the City and pledging 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 and
distribution of an Official Statement pertaining
thereto; and providing an effective date.
was introduced and submitted to the Council for passage and
adoption. After presentation and due consideration of the
ordinance, and upon a motion made byf. J. Patterson and seconded
by Randy Neugebauer the ordinance was duly passed and adopted by the council on second and final reading by the following vote:
7 ___ voted "For" _o _____ voted "Against" '-0--abstained
No Text
all as shown in the official Minutes of the Council for the meeting
held on the aforesaid date.
2. That the attached ordinance 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 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 subject of the
entitled ordinance, was posted and given in advance thereof in
compliance with the provisions of Article 6252-17, Section 3A, .v.A.T.C,s.
iN WITNESS WHEREOF, I have hereunto signed my name officially
and affixed the seal of said city, this the 14th day of August,
1992.
G.-L3-;4 Cit.Secretary
City of LUbbock, Texas
(City seal)
29078 -2-
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ORDINANCE NO. 9542
AN ORDINANCE authorizing the issuance of "CITY OF
LUBBOCK, TEXAS, TAX AND WATERWORKS SYSTEM (LIMITED
PLEDGE) REVENUE CERTIFICATES OF OBLIGATION, SERIES
1992"; levying an ad valorem tax upon all taxable
property in the City and pledging 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 and
distribution of an Official statement pertaining
thereto; and providing an effective date.
WHEREAS, notice of the City council's intention to issue
certificates of obligation in the maximum principal amount of
$7,565,000 for the purpose of paying contractual obligations to be
incurred for (i) land acquisition and site improvements including
water system and sewer system extensions and improvements in
connection with construction of a correctional facility; (ii) solid
waste disposal system improvements; and (iii) professional services
rendered in connection therewith, has been duly published in the
Lubbock Avalanche-Journal, a newspaper hereby found and determined
to be of general circulation in the City of Lubbock, Texas, on
July 12, 1992 and July 19, 1992, the date of the first publication
of such notice being not less than fifteen (15) days prior to the
tentative date stated therein for the passage of the ordinance
authorizing the issuance of such certificates; and
WHEREAS, no petition, protesting the issuance of such
certificates and bearing valid petition signatures of at least 5%
of the qualified voters of the City, has been filed with the City
Secretary, any member of the Council or any other official of the
City on or prior to the date of the passage of this ordinance; and
WHEREAS, the council hereby finds and determines that all of
the certificates of obligation described in such notice should be
issued and sold at this time; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1: Authorization-Designation-Principal Amount-
PUrpose. certificates of obligation of the city shall be and are
hereby authorized to be issued in the aggregate principal amount of
$7,565,000 to be designated and bear the title "CITY OF LUBBOCK,
TEXAS, TAX AND WATERWORKS SYSTEM (LIMITED PLEDGE) REVENUE
CERTIFICATES OF OBLIGATION, SERIES 1992" (the "Certificates"), for
the purpose of paying contractual obligations to be incurred for
(i) land acquisition and site improvements including water system
and sewer system extensions and improvements in connection with
construction of a correctional facility; (ii) solid waste disposal
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system improvements; and (iii) professional services rendered in
connection therewith, pursuant to authority conferred by and in
conformity with the Constitution and laws of the State of Texas,
including V.T.C.A., Local Government Code, Subchapter c of Chapter
271. Pursuant to the resolution adopted by the City Council on
June 11, 1992, as much as $2,600, ooo of the proceeds of the
Certificates may be used to reimburse the City for the purchase of
land for the correctional facility.
SECTION 2: Fully Registered Obligations -Authorized
Denominations-stated Maturities-Date. The certificates are
issuable in fully registered form only; shall be dated August 15,
1992 (the "Certificate Date") and shall be in denominations of
$5,000 or any integral multiple thereof and the certificates shall
become due and payable on February 15 in each of the years and in
principal amounts (the "Stated Maturities") and bear interest at
the per annum rate(s) in accordance with the following schedule:
Year of Principal Interest
stated Matu;rity Amount Rate
1993 $635,000 6.75%
1994 635,000 6.75%
1995 640,000 6.75%
1996 640,000 6.75%
1997 640,000 6.30%
1998 475,000 4.75%
1999 475,000 4.75%
2000 475,000 4.90%
2001 475,000 5.00%
2002 475,000 5.20%
2003 200,000 5.375%
2004 200,000 5. 40%
2005 200,000 5.50%
2006 200,000 5.60%
2007 200,000 5.70%
2008 200,000 5.80%
2009 200,000 5.80%
2010 200,000 4.75%
2011 200,000 4.75%
2012 200,000 4.75%
Interest on the Certificates shall accrue from the Certificate
Date at the per annum rate(s) shown above in this Section, and such
interest shall be calculated on the basis of a 360-day year of
twelve 30-day months. Interest on the Certificates shall be
payable on February 15 and August 15 in each year, coltll'll.encing
February 15, 1993.
SECTION 3: Terms of Payment-Paying Agent/Registrar. The
principal of, premium, if any, and the interest on the
Certificates, due and payable by reason of maturity or redemption
or otherwise, shall be payable only to the registered owners or
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holders of the Certificates (hereinafter called the "Holders")
appearing on the registration and transfer books (the "Security
Register") maintained by the Paying Agent/Registrar and the payment
thereof shall be in any coin or currency of the United states of
America, which at the time of payment is legal tender for the
payment of public and private debts, and shall be without exchange
or collection charges to the Holders.
The selection and appointment of NationsBank of Texas, N.A.,
Fort Worth, Texas to serve as Paying Agent/Registrar for the
certificates is hereby approved and confirmed and the City agrees
and covenants to be kept and maintained at the principal office of
the Paying Agent/Registrar books and records for the registration,
payment and transfer of the Certificates (the "Security Register"),
all as provided herein, in accordance with the terms and provisions
of a "Paying Agent/Registrar Agreement" substantially in the form
attached hereto as Exhibit A and such reasonable rules and
regulations as the Paying Agent/Registrar and City may prescribe;
and the Mayor and City Secretary are authorized to execute and
deliver such Agreement in connection with the delivery of the
Certificates. The City covenants to maintain and provide a Paying
Agent/Registrar at all times until the Certificates are paid and
discharged, and any successor Paying Agent/Registrar shall be a
bank, trust company, financial institution or other entity
qualified and authorized to serve in such capacity and perform the
duties and services of Paying Agent/Registrar. 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 Holder by united States Mail, first class postage prepaid, which notice
shall also give the address of the new Paying Agent/Registrar.
Principal of and premium, if any, on the Certificates shall be
payable at the stated Maturities or the redemption thereof only
upon presentation and surrender of the Certificates to the Paying
Agent/Registrar at its principal office. Interest on the
Certificates shall be paid by the Paying Agent/Registrar to the
Holders whose name appears in the Security Register at the close of
business on the Record Date (the last business day of the month
next preceding each interest payment date) and payment of such
interest shall be (i) by check sent United States Mail, first class postage prepaid, to the address of the Holder recorded in the
Security Register or (ii) by such other method, acceptable to the
Paying Agent/Registrar, requested by, and at the risk and expense
of, the Holder. If the date for the payment of the principal of or
interest on the Certificates shall be a Saturday, Sunday, a legal
holiday, or a day when banking institutions in the City where the
Paying Agent/Registrar is located are authorized by law or
executive order to close, then the date for such payment shall be
the next succeeding day which is not such a Saturday, Sunday, legal
holiday, or day when banking institutions are authorized to close;
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and payment on such date shall have the same force and effect as if made on the original date payment was due.
In the event of a nonpayment of interest on a scheduled
payment date, and for thirty (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 (which shall be 15 days after the Special
Record Date) shall be sent at least five (5) business days prior to
the Special Record Date by United States Mail, first class postage
prepaid, to the address of each Holder appearing on the Security
Register at the close of business on the last business next
preceding the date of mailing of such notice.
SECTION 4: Redemption. (a) Optional Redemption. The
Certificates having Stated Maturities on and after February 15,
2003, shall be subject to redemption prior to maturity, at the option of the City, in whole or in part in principal amounts of
$5,000 or any integral multiple thereof (and if within a Stated
Maturity by lot by the Paying Agent/Registrar), on February 15,
2002 or on any date thereafter at the redemption price of par plus
accrued interest to the date of redemption.
(b) Exercise of Redemption Option. At least forty-five (45)
days prior to a redemption date for the Certificates (unless a
shorter notification period shall be satisfactory to the Paying
Agent/Registrar), the City shall notify the Paying Agent/Registrar
of the decision to redeem Certificates, the principal amount of
each Stated Maturity to be redeemed, and the date of redemption
therefor. The decision of the city to exercise the right to redeem
certificates shall be entered in the minutes of the governing body
of the City.
(c) Selection of Certificates for Redemption. If less than all outstanding certificates of the same Stated Maturity are to be
redeemed on a redemption date, the Paying Agent/Registrar shall
treat such certificates as representing the number of Certificates
outstanding which is obtained by dividing the principal amount of
such Certificates by $5,000 and shall select the certificates, or
principal amount thereof, to be redeemed within such Stated
Maturity by lot.
(d) Notice of Redemption. Not less than thirty (30) days
prior to a redemption date for the Certificates, a notice of redemption shall be sent by United States Mail, first class postage
prepaid, in the name of the City and at the City's expense, to each
Holder of a Certificate to be redeemed in whole or in part at the
address of the Holder appearing on the Security Register at the
close of business on the business day next preceding the date of
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mailing such notice, and any notice of redemption so mailed shall
be conclusively presumed to have been duly given irrespective of whether received by the Holder.
All notices of redemption shall ( i) specify the date of
redemption for the Certificates, (ii) identify the certificates to
be redeemed and, in the case of a portion of the principal amount
to be redeemed, the principal amount thereof to be
redeemed, (iii) state the redemption price, (iv) state that the
Certificates, or the portion of the principal amount thereof to be
redeemed, shall become due and payable on the redemption date
specified, and the interest thereon, or on the portion of the
principal a.mount thereof to be redeemed, shall cease to accrue from
and after the redemption date, and (v) specify that payment of the
redemption price for the Certificates, or the principal amount
thereof to be redeemed, shall be made at the principal office of
the Paying Agent/Registrar only upon presentation and surrender
thereof by the Holder. If a certificate is subject by its terms to
prior redemption and has been called for redemption and notice of
redemption thereof has been duly given as hereinabove provided,
such Certificate (or the principal amount thereof to be redeemed)
shall become due and payable and interest thereon shall cease to
accrue from and after the redemption date therefor; provided moneys
sufficient for the payment of such certificate (or of the principal
amount thereof to be redeemed) at the then applicable redemption
price are held for the purpose of such payment by the Paying
Agent/Registrar.
SECTION s: Registration Transfer -Exchange of
certificates-Predecessor Certificates. A security Register relating to the registration, payment, and transfer or exchange of
the certificates shall at all times be kept and maintained by the
City at the principal office of the Paying Agent/Registrar, as
provided herein and in accordance with the provisions of an
agreement with the Paying Agent/Registrar and such rules and
regulations as the Paying Agent/Registrar and the City may
prescribe. The Paying Agent/Registrar shall obtain, record, and
maintain in the Security Register the name and address of each and
every owner of the Certificates issued under and pursuant to the
provisions of this Ordinance, or if appropriate, the nominee thereof. Any Certificate may be transferred or exchanged for
certificates of other authorized denominations by the Holder, in
person or by his duly authorized agent, upon surrender of such
certificate to the Paying Agent/Registrar for cancellation,
accompanied by a written instrument of transfer or request for
exchange duly executed by the Holder or by his duly authorized
agent, in form satisfactory to the Paying Agent/Registrar.
Upon surrender of any Certificate for transfer at the
principal office of the Paying Agent/Registrar, the Paying
Agent/Registrar shall. register and deliver, in the name of the
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designated transferee or transferees, one or more new certificates
of authorized denominations and having the same Stated Maturity and
of a like aggregate principal amount as the certificate or
Certificates surrendered for transfer,
At the option of the Holder, Certificates may be exchanged for
other Certificates of authorized denominations and having the same
Stated Maturity, bearing the same rate of interest and of like
aggregate principal amount as the Certificates surrendered for
exchange, upon surrender of the certificates to be exchanged at the
principal office of the Paying Agent/Registrar. Whenever any
Certificates are surrendered for exchange, the Paying
Agent/Registrar shall register and deliver new certificates to the
Holder requesting the exchange.
All Certificates issued in any transfer or exchange of certificates shall be delivered to the Holders at the principal
office of the Paying Agent/Registrar or sent by United States Mail,
first class, postage prepaid to the Holders, and, upon the
registration and delivery thereof, the same shall be the valid
obligations of the City, evidencing the same obligation to pay, and entitled to the same benefits under this Ordinance, as the
certificates surrendered in such transfer or exchange.
All transfers or exchanges of Certificates pursuant to this
Section shall be made without expense or service charge to the
Holder, except as otherwise herein provided, and except that the
Paying Agent/Registrar shall require payment by the Holder requesting such transfer or exchange of any tax or other
governmental charges required to be paid with respect to such
transfer or exchange.
certificates cancelled by reason of an exchange or transfer pursuant to the provisions hereof are hereby defined to be
"Predecessor certificates," evidencing all or a portion, as the
case may be, of the same obligation to pay evidenced by the new
certificate or certificates registered and delivered in the
exchange or transfer therefor. Additionally, the term "Predecessor
Certificates" shall include any mutilated, lost, destroyed, or
stolen Certificate for which a replacement Certificate has been
issued, registered and delivered in lieu thereof pursuant to the
provisions of Section 28 hereof and such new replacement
Certificate shall be deemed to evidence the same obligation as the
mutilated, lost, destroyed, or stolen certificate.
Neither the City nor the Paying Agent/Registrar shall be
required to issue or transfer to an assignee of a Holder any
Certificate called for redemption, in whole or in part, within 45
days of the date fixed for the redemption of such certificate;
provided, however, such limitation on transferability shall not be
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applicable to an exchange by the Holder of the unredeemed balance
of a certificate called for redemption in part.
SECTION 6: Book-Entry Only Transfers and Transaction§.
Notwithstanding the provisions contained in Sections 3 and 5 hereof
relating to the payment, and transfer/exchange of the Certificates,
the City hereby approves and authorizes the use of "Book-Entry
Only" securities clearance, settlement and transfer system provided
by The Depository Trust Company (DTC), a limited purpose trust
company organized under the laws of the State of New York, in
accordance with the requirements and procedures identified in the
Letter of Representation, by and between the City, the Paying
Agent/Registrar and DTC (the "Depository Agreement") relating to
the Certificates.
Pursuant to the Depository Agreement and the rules of DTC,
the Certificates shall be deposited with DTC who shall hold said
Certificates for its participants (the "DTC Participants"). While
the certificates are held by DTC under the Depository Agreement,
the Holder of the certificates on the Security Register for all
purposes, including payment and notices, shall be Cede & Co., as
nominee of DTC, notwithstanding the ownership of each actual
purchaser or owner of each Certificate (the "Beneficial Owners")
being recorded in the records of DTC and DTC Participants.
In the event DTC determines to discontinue serving as
securities depository for the Certificates or otherwise ceases to
provide book-entry clearance and settlement of securities
transactions in general or the City determines that DTC is
incapable of properly discharging its duties as securities
depository for the Certificates, the City covenants and agrees
with the Holders of the Certificates to cause Certificates to be
printed in definitive form and provide for the Certificates to be
issued and delivered to DTC Participants and Beneficial Owners, as
the case may be. Thereafter, the Certificates in definitive form
shall be assigned, transferred and exchanged on the Security
Register maintained by the Paying Agent/Registrar and payment of
such Certificates shall be made in accordance with the provisions
of Sections 3 and 5 hereof.
SECTION 7: Execution -Registration. The certificates
shall be executed on behalf of the City by the Mayor under its
seal reproduced or impressed thereon and countersigned by the City
Secretary. The signature of said officers on the Certificates may
be manual or facsimile. Certificates bearing the manual or
facsimile signatures of individuals who are or were the proper
officers of the City on the certificate Date shall be deemed to be
duly executed on behalf of the City, notwithstanding that one or
more of the individuals executing the same shall cease to be such
officer at the time of delivery of the Certificates to the initial
purchaser(s) and with respect to Certificates delivered in
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subsequent exchanges and transfers, all as authorized and provided
in the Bond Procedures Act of 1981, as amended.
No Certificate shall be entitled to any right or benefit
under this Ordinance, or be valid or obligatory for any purpose,
unless there appears on such Certificate either a certificate of
registration substantially in the form provided in Section 9C,
manually executed by the Comptroller of Public Accounts of the
State of Texas, or his duly authorized agent, or a certificate of
registration substantially in the form provided in section 9D,
manually executed by an authorized officer, employee or
representative of the Paying Agent/Registrar, and either such
certificate duly signed upon any Certificate shall be conclusive
evidence, and the only evidence, that such certificate has been
duly certified, registered and delivered.
SECTION 8: Initial certificate(s). The certificates
herein authorized shall be initially issued either (i) as a single
fully registered certificate in the total principal amount of
$7,565,000 with principal installments to become due and payable
as provided in Section 2 hereof and numbered T-1, or (ii) as
twenty (20) fully registered certificates, being one certificate
for each year of maturity in the applicable principal amount and denomination and to be numbered consecutively from T-1 and upward
(hereinafter called the "Initial Certificate(s)") and, in either
case, the Initial Certificate(s) shall be registered in the name
of the initial purchaser(s) or the designee thereof. The Initial
Certificate(s) shall be the Certificates submitted to the Office
of the Attorney General of the State of Texas for approval,
certified and registered by the Office of the Comptroller of
Public Accounts of the State of Texas and delivered to the initial
purchaser(s). Any time after the delivery of the Initial
certificate(s), the Paying Agent/Registrar, pursuant to written
instructions from the initial purchaser (s), or the designee
thereof, shall cancel the Initial Certificate(s) delivered
hereunder and exchange therefor definitive certificates of
authorized denominations, Stated Maturities, principal amounts and
bearing applicable interest rates for transfer and delivery to the
Holders named at the addresses identified therefor; all pursuant
to and in accordance with such written instructions from the
initial purchaser ( s) , or the des ignee thereof, and such other
information and documentation as the Paying Agent/Registrar may
reasonably require.
SECTION 9: ~-A. Forms Generally. The certificates, the Registration certificate of the Comptroller of Public Accounts of the state of Texas, the Registration
certificate of Paying Agent/Registrar, and the form of Assignment
to be printed on each of the Certificates, shall be substantially
in the forms set forth in this section with such appropriate
insertions, omissions, substitutions, and other variations as are
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permitted or required by this Ordinance and may have such letters,
numbers, or other marks of identification (including identifying
numbers and letters of the Committee on Uniform Securities
Identification Procedures of the American Bankers Association) and
such legends and endorsements (including insurance legends in the
event the Certificates, or any maturities thereof, are purchased
with insurance and any reproduction of an opinion of counsel)
thereon as may, consistently herewith, be established by the City
or determined by the officers executing such Certificates as
evidenced by their execution. Any portion of the text of any
Certificates may be set forth on the reverse thereof, with an
appropriate reference thereto on the face of the certificate.
The definitive Certificates shall be printed, lithographed,
or engraved or produced in any other similar manner, all as
determined by the officers executing such certificates as
evidenced by their execution, but the Initial Certificate(s)
submitted to the Attorney General of Texas may be typewritten or
photocopied or otherwise reprgduced.
The City may provide (i) for issuance of one fully registered
Certificate for each Stated Maturity in the aggregate principal
amount of each stated Maturity and (ii) for registration of such
Certificates in the name of a securities depository, or the
nominee thereof. The Letter of Representations by and among the
City, the Paying Agent/Registrar, and the initial securities
depository (Depository Trust Company) a form of which is attached
hereto as Exhibit B, is approved and may be executed by the Mayor
and City Secretary on behalf of the City. The execution of a
Letter of Representations may occur either before or after
delivery of the certificates to the initial purchasers but shall
not affect the City's obligation to pay the registered owners the
principal of and interest on the Certificates as the same become
due. While any Certificate is registered in the name of a
securities depository or its nominee, references herein and in the
Certificates to the holder or owner of such Certificate shall mean
the securities depository or its nominee and shall not mean any
other person.
B. Form of certificates.
REGISTERED NO. __
2907'9
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF LUBBOCK, TEXAS,
TAX AND WATERWORKS SYSTEM
(LIMITED PLEDGE) REVENUE CERTIFICATE OF OBLIGATION
SE;RIES 1992
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REGISTERED $ ___ _
.-
Certificate
Date:
August 15, 1992
Registered owner:
Principal Amount:
Interest Rate: Stated Maturity: ____ % CUSIP NO:
DOLLARS
The City of Lubbock (hereinafter referred to as the "City"),
a body corporate and municipal corporation in the County of
Lubbock, State of Texas, for value received, acknowledges itself
indebted to and hereby promises to pay to the Registered Owner
named above, or the registered assigns thereof, the Principal
Amount stated above, on the Stated Maturity date specified above
(or so much thereof as shall not have been paid upon prior
redemption) and to pay interest (computed on the basis of a
360-day year of twelve 30-day months) on the unpaid Principal
Amount hereof from the Certificate Date at the per annum rate of
interest specified above; such interest being payable on February
15 and August 15 of each year, commencing February 15, 1993.
Principal of this Certificate is payable at its Stated Maturity or
redemption to the registered owner hereof, upon presentation and
surrender, at the principal office of the Paying Agent/Registrar
executing the registration certificate appearing hereon, or its
successor. Interest is payable to the registered owner of this
Certificate (or one or more Predecessor Certificates, as defined
in the Ordinance hereinafter referenced) whose name appears on the
"Security Register" maintained by the Paying Agent/Registrar at
the close of business on the "Record Date", which is the last
business day of the month next preceding each interest payment
date and interest shall be paid by the Paying Agent/Registrar by
check sent United States Mail, first class postage prepaid, to the
address of the registered owner recorded in the Security Register
on the Record Date or by such other method, acceptable to the
Paying Agent/Registrar, requested by, and at the risk and expense
of, the registered owner. If the date for the payment of the
principal of or interest on the Certificates shall be a Saturday,
Sunday, a legal holiday, or a day when banking institutions in the
City where the Paying Agent/Registrar is located are authorized by
law or executive order to close, then the date for such payment
shall be the next succeeding day which is not such a Saturday,
Sunday, legal holiday, or day when banking institutions are
authorized to close; and payment on such date shall have the same
force and effect as if made on the original date payment was due.
All payments of principal of, premium, if any, and interest on
this Certificate shall be without exchange or collection charges
to the owner hereof and in any coin or currency of the United
states of America which at the time of payment is legal tender for
the payment of public and private debts.
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This Certificate is one of the series specified in its title
issued in the aggregate principal amount of $7,565,000 (herein
referred to as the "Certificates") for the purpose of paying
contractual obligations to be incurred for (i) land acquisition
and site improvements including water system and sewer system
extensions and improvements in connection with construction of a
correctional facility; (ii} solid waste disposal system
improvements; and (iii) professional services rendered in
connection therewith, under and in strict conformity with the
Constitution and laws of the State of Texas, particularly
V.T.C.A., Local Government Code, Subchapter C of Chapter 271, and
pursuant to an Ordinance adopted by the governing body of the City
(herein referred to as the "Ordinance").
The Certificates maturing on and after February 15, 2003, may
be redeemed prior to their Stated Maturities, at the option of the
City, in whole or in part in principal amounts of $5,000 or any
integral multiple thereof (and if within a Stated Maturity by lot
by the Paying Agent/Registrar}, on February 15, 2002, or on any
date thereafter, at the redemption price of par, together with accrued interest to the date of redemption and upon 30 days prior
written notice being sent by United States Mail, first class
postage prepaid, to the registered owners of the Certificates to
be redeemed, and subject to the terms and provisions relating
thereto contained in the Ordinance. If this Certificate (or any
portion of the principal sum hereof) shall have been duly called
for redemption and notice of such redemption duly given, then upon
such redemption date this Certificate (or the portion of the
principal sum hereof to be redeemed) shall become due and payable,
and interest thereon shall cease to accrue from and after the
redemption date therefor, provided moneys for the payment of the
redemption price and the interest on the principal amount to be
redeemed to the date of redemption are held for the purpose of
such payment by the Paying Agent/Registrar.
In the event of a partial redemption of the principal amount
of this certificate, payment of the redemption price of such
principal amount shall be made to the registered owner only upon
presentation and surrender of this Certificate to the Paying
Agent/Registrar at its principal office and there shall be issued,
without charge therefor to the registered owner hereof, a new
Certificate or Certificates of like maturity and interest rate in
any authorized denominations provided by the Ordinance for the
then unredeemed balance of the principal sum hereof. If this
certificate is selected for redemption, in whole or in part, the
City and the Paying Agent/Registrar shall not be required to
transfer this Certificate to an assignee of the registered owner
within 45 days of the redemption date therefor; provided, however,
such limitation on transferability shall not be applicable to an
exchange by the registered owner of the unredeemed balance hereof
in the event of its redemption in part.
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The Certificates a.re payable from the proceeds of an a.d
valorem tax levied, within the limitations prescribed by law, upon
a.11 taxable property in the City and are additionally payable from
and secured by a lien on and limited pledge of the Net Revenues
(as defined in the Ordinance) of the City's Waterworks system (the
"System"), such lien and pledge, however, being junior and
subordinate to the lien on and pledge of the Net Revenues of the
System securing . the payment of uprior Lien Obligations" (as
defined in the Ordinance) now outstanding and hereafter issued by
the City. In the Ordinance, the City reserves and retains the
right to issue Prior Lien Obligations while the Certificates are
outstanding without limitation as to principal amount but subject
to any terms, conditions or restrictions as may be applicable
thereto under law or otherwise.
Reference is hereby made to the ordinance, a copy of which is
on file in the principal office of the Paying Agent/Registrar, and
to all the provisions of .which the Holder hereof by the acceptance
hereof hereby assents, for definitions of terms; the description
of and the nature and extent of the tax levied for the payment of
the Certificates; the properties constituting the system; the Net
Revenues pledged to the payment of the principal of and interest
on the certificates; the nature and extent and manner of
enforcement of the pledge; the terms and conditions relating to
the transfer of this Certificate; the conditions upon which the
Ordinance may be amended or supplemented with or without the
consent of the Holders of the Certificates; the rights, duties,
and obligations of the City and the Paying Agent/Registrar; the
terms and provisions upon which the tax levy and the liens,
pledges, charges and covenants made therein may be discharged at
or prior to the maturity of this Certificate, and this Certificate
deemed to be no longer Outstanding thereunder; and for the other
terms and provisions contained therein. Capitalized terms used
herein have the meanings assigned in the Ordinance.
This Certificate, subject to certain limitations contained in
the ordinance, may be transferred on the Security Register only
upon its presentation and surrender at the principal office of the
Paying Agent/Registrar, with the Assignment hereon duly endorsed
by, or accompanied by a written instrument of transfer in form
satisfactory to the Paying Agent/Registrar duly executed by, the
registered owner hereof, or his duly authorized agent. When a
transfer on the Security Register occurs, one or more fully
registered Certificates of authorized denominations and of the
same aggregate principal amount will be issued by the Paying
Agent/Registrar to the designated transferee or transferees,
The City and the Paying Agent/Registrar, and any agent of
either, may treat the registered owner hereof whose name appears
on the Security Register ( i) on the Record Date as the owner
entitled to payment of interest hereon, (ii) on the date of
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surrender cf this Certificate as the owner entitled to payment of
principal hereof at its Stated Maturity . er its redemption, in
whole or in part, and (iii) on any other date as the owner for all
other purposes, and neither the City nor the Paying
Agent/Registrar, or any agent of either, shall be affected by
notice to the contrary. In the event of nonpayment of interest
on a scheduled payment date and for thirty (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 (which shall be 15
days after the Special Record Date) shall be sent at least five
(5) business days prior to the Special Record Date by United
States Mail, first class postage prepaid, to the address of each
Holder appearing on the Security Register at the close of business
on the last business day next preceding the date of mailing of
such notice.
It is hereby certified, recited, represented and covenanted
that the City is a body corporate and political subdivision duly
organized and legally existing under and by virtue of the
Constitution and laws of the State of Texas; that the issuance of
the Certificates is duly authorized by law; that all acts,
conditions and things required to exist and be done precedent to
and in the issuance of the Certificates to render the same lawful
and valid obligations of the city have been properly done, have
happened and have been performed in regular and due time, form and
manner as required by the Constitution and laws of the State of
Texas, and the Ordinance; that the certificates do not exceed any
constitutional or statutory limitation; and that due provision has
been made for the payment of the principal of and interest on the
Certificates by the levy of a tax and a pledge of the Net Revenues
of the System as aforestated. In case any provision in this
Certificate or any application thereof shall be invalid, illegal,
or unenforceable, the validity, legality, and enforceability of
the remaining provisions and applications shall not in any way be
affected or impaired thereby. The terms and provisions of this
Certificate and the Ordinance shall be construed in accordance
with and shall be governed by the laws of the State of Texas.
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IN WITNESS WHEREOF, the r_.a,,1""17"-,;:,..
this Certificate to be duly
the City as of the certifica
(SEAL)
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c. * Form of Registration Certificate of comptroller of
Public Accounts to Appear on Initial Certificatels) only.
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
OFFICE OF THE COMPTROLLER
OF PUBLIC ACCOUNTS s s s s REGISTER NO.
THE STATE OF TEXAS
I HEREBY CERTIFY that this Certificate has been examined,
certified as to validity and approved by the Attorney General of
the State of Texas, and duly registered by the comptroller of
Public Accounts of the State of Texas.
WITNESS my signature and seal of office this
comptroller of Public Accounts
(SEAL) of the State of Texas
*NOTE TO PRINTER: Do not print on definitive Certificates
D. Form of certificate of Paying Agent/Registrar to Appear on certificates Cother than the single fully registered Initial certificate).
REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR
This Certificate has been duly issued and registered under
the provisions of the within-mentioned Ordinance; the certificate
or certificates of the above entitled and designated series
originally delivered having been approved by the Attorney General
of the state of Texas and registered by the comptroller of Public
Accounts, as shown by the records of the Paying Agent/Registrar.
Registration Date:
29079
NATIONSBANK OF TEXAS, N.A.
Fort Worth, Texas
as Paying Agent/Registrar
By-......,.---,.---------Authorized Signature
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E. Form of Assignment.
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns, and
transfers unto (Print or typewrite name, address, and zip code of
transferee:) ..................................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
• • • • • • • • • • • • • • • • (Social Security or other identifying number: ·····•···•····•··········•••·> the within Certificate and all rights thereunder, and hereby irrevocably constitutes and appoints ..................................................................
attorney to transfer the within Certificate on the books kept for
registration thereof, with full power of substitution in the
premises.
DATED:
Signature guaranteed:
........................
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NOTICE: The signature on this
assignment must correspond with the
name of the registered owner as it
appears on the face of the within
Certificate in every particular.
F. The Initial certificate(s) shall be in the form set forth in paragraph B of this section. except that the form of
a single fully registered Initial certificate shall be
modified as follows;
(i) immediately under the name of the certificate the
headings "Interest Rate ------" and "Stated Maturity
----" shall both be omitted;
(ii) paragraph one shall read as follows:
Registered Owner:
Principal Amount: Dollars
The city of Lubbock (hereinafter referred to as the "City"),
a body corporate and municipal corporation in the county of
Lubbock, State of Texas, for value received, acknowledges itself
indebted to and hereby promises to pay to the Registered OWner
named above, or the registered assigns thereof, the Principal
Amount hereinabove stated, on February 15 in each of the years and
in principal installments in accordance with the following
schedule:
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PRINCIPAL INSTALLMENTS
(Information to be inserted from
schedule in Section 2 hereof).
INTEREST
RATE
(or so much principal thereof as shall not have been prepaid prior
to maturity) and to pay interest on the unpaid Principal Amount
hereof from the Certificate Date at the per annum rates of
interest specified above computed on the basis of a 360-day year
of twelve 30-day months; such interest being payable on February
15 and August 15 of each year, commencing February 15, 1993.
Principal installments of this certificate are payable in the year
of maturity or on a prepayment date to the registered owner
hereof, upon its presentation and surrender at the principal
office of NationsBank of Texas, N.A., Fort Worth, Texas (the
"Paying Agent/Registrar")• Interest is payable to the registered
owner of this Certificate whose name appears on the "Security
Register" maintained by the Paying Agent/Registrar at the close of
business on the "Record Date", which is the last business day of
the month next preceding each interest payment date hereof and
interest shall be paid by the Paying Agent/Registrar by check sent
United states Mail, first class postage prepaid, to the address of
the registered owner recorded in the security Register or by such
other method, acceptable to the Paying Agent/Registrar, requested
by, and at the risk and expense of, the registered owner. If the
date for the payment of the principal of or interest on the
certificates shall be a Saturday, Sunday, a legal holiday, or a
day when banking institutions in the City where the Paying
Agent/Registrar is located are authorized by law or executive
order to close, then the date for such payment shall be the next
succeeding day which is not such a Saturday, Sunday, legal
holiday, or day when banking institutions are authorized to close;
and payment on such date shall have the same force and effect as
if made on the original date payment was due. All payments of
principal of, premium, if any, and interest on this Certificate
_ shall be without exchange or collection charges to the owner
hereof and in any coin or currency of the United States of America
which at the time of payment is legal tender for the payment of
public and private debts.
SECTION 10: Definitions. That for purposes of this
ordinance and for clarity with respect to the issuance of the
Certificates, and the levy of taxes and appropriation of Net
Revenues therefor, the following words or terms, whenever the same
appear herein without qualifying language, are defined to mean as
follows:
29079
(a) The term •Additional Certificates"
combination tax and revenue certificates of
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obligation
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29079
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 Net Revenues of the System of equal
rank and dignity with the lien and pledge securing the
payment of the Certificates.
(b) The term "Certificates" shall mean $7,565,000 "CITY
OF LUBBOCK, TEXAS, TAX AND WATERWORKS SYSTEM (LIMITED PLEDGE)
REVENUE CERTIFICATES OF OBLIGATION, SERIES 1992R authorized
by this Ordinance.
(c) The term "Certificate Fund" shall mean the special
Fund created and established under the provisions of
Section 11 of this Ordinance.
(d) The term "Collection Date" shall mean, when
reference is being made to the levy and collection of annual
ad valorem taxes, the date annual ad valorem taxes levied
each year by the City become delinquent.
(e) The term "Fiscal Year" shall mean the annual
financial accounting period used with respect to the
operations of the System now ending on September 30th of each
year; provided, however, the City Council may change, by
ordinance duly passed, such annual financial accounting
period to end on another date if such change is found and
determined to be necessary for budgetary or other fiscal
purposes.
(f) The term "Government Securities" shall mean direct
obligations of the United States of America, including
obligations the principal of and interest on which are
unconditionally guaranteed by the United States of America,
and the United States Treasury obligations such as its state
and Local Government Series in book-entry form.
(g) The term "Gross Revenues" shall mean all income,
receipts and revenues of every nature derived or received
from the operation and ownership (excluding gifts and grant
moneys, federal or state) of the System, including earnings
and income derived from the investment or deposit of moneys
in any special funds or accounts created and established for
the payment and security of the Prior Lien Obligations and
other obligations payable in whole or in part from and
secured by a lien on and pledge of the Net Revenues.
(h) The term "Net Revenues" shall mean the Gross
Revenues of the System, with respect to any period, after
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29079
deducting the system's Operating and Maintenance Expenses
during such period.
(i) The term "Operating and Maintenance Expenses" shall
mean all reasonable and necessary expenses directly related
and attributable to the operation and maintenance of the
system, including, but not limited to, the cost of insurance,
the purchase and carrying of stores, materials, and supplies,
the payment of salaries, labor and other expenses reasonably
and properly charged, under generally accepted accounting
principles, to the operation and maintenance of the System.
Depreciation charges on equipment, machinery, plants and
other facilities comprising the System and expenditures
classed under generally accepted accounting principles as
capital expenditures shall not be considered as "Operating
and Maintenance Expenses" for purposes of determining "Net
Revenues".
(j) The term "Outstanding" when used in this ordinance
with respect to Certificates means, as of the date of
determination, all Certificates theretofore issued and
delivered under this Ordinance, except:
(1) those Certificates cancelled by the
Paying Agent/Registrar or delivered to the Paying
Agent/Registrar for cancellation;
(2) those certificates deemed to be duly
paid by the City in accordance with the provisions
of Section 24 hereof by the irrevocable deposit
with the Paying Agent/Registrar, or an authorized
escrow agent, of money or Government Securities,
or both, in the amount necessary to fully pay the
principal of, premium, if any, and interest
thereon to maturity or redemption, as the case may
be, provided that, if such Certificates are to be
redeemed, notice of redemption thereof shall have
been duly given pursuant to this Ordinance or
irrevocably provided to be given to the
satisfaction of the Paying Agent/Registrar or
waived; and
(3) those Certificates that have
mutilated, destroyed, lost, or stolen
replacement Certificates have been registered
delivered in lieu thereof as provided
Section 28 hereof.
been and
and
in
(k) The term "Prior Lien Obligations" shall mean all bonds or other similar obligations now outstanding and
hereafter issued that are payable in whole or in part from
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and secured by a lien on and pledge of the Net Revenues of
the system. 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 Net Revenues securing the payment
of the certificates, including the City's "Combination Tax
and Waterworks system Subordinate Lien Revenue Certificates
of Obligation, Series 1991.11
(1) The term "System" shall mean the City's Waterworks
system, being all properties, facilities, and plants
currently owned, operated, and maintained by the City for the
supply, treatment, and transmission of treated potable water,
together with all future extensions, improvements, replacements and additions thereto.
SECTION 11: certificate Fund. That, for the purpose of
paying the interest on and to provide a sinking fund for the
payment and retirement of the Certificates, there shall be and is
hereby created a special Fund to be designated "SPECIAL 1992 CITY
OF LUBBOCK, TEXAS, TAX AND WATERWORKS SYSTEM (LIMITED PLEDGE)
REVENUE CERTIFICATE OF OBLIGATION FUND", which Fund shall be kept
and maintained at the City's depository bank, and moneys deposited in said Fund shall be used for no other purpose. Proper officers
of the City are hereby authorized and directed to cause to be
transferred to the Paying Agent for the Certificates, from funds
on deposit in the Certificate Fund, amounts sufficient to fully
pay and discharge promptly each installment of interest and
principal of the certificates as the same accrues or matures or
comes due by reason of redemption prior to maturity; such
transfers of funds to be made in such manner as will cause
immediately available funds to be deposited with the Paying Agent
for the Certificates at the close of business on the last business
day next preceding each interest and/or principal payment date for
the certificates.
Pending the transfer of funds to the Paying Agent/Registrar,
money in the Certificate Fund may, at the option of the city, be
invested in obligations identified in, and in accordance with the
provisions of the "Public Funds Investment Act of 1987" relating
to the investment of "bond proceeds"; provided that all such investments shall be made in such a manner that the money required
to be expended from said Fund will be available at the proper time
or times. All interest and income derived from deposits and
investments in said certificate Fund shall be credited to, and any
losses debited to, the said Certificate Fund. All such
investments shall be sold promptly when necessary to prevent any
default in connection with the Certificates.
SECTION 12: Tax Levy. That to provide for the payment of
the "Debt service Requirements" on the Certificates being (i) the
interest on said certificates and (ii) a sinking fund for their
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redemption at maturity or a sinking fund of 2t (whichever amount
shall be the greater), there shall be and there is hereby levied
for the current year and each succeeding year thereafter while
said Certificates or any interest thereon shall remain
outstanding, a sufficient tax on each one hundred dollars•
valuation of taxable property in said City, adequate to pay such Debt Service Requirements, full allowance being made for
delinquencies and costs of collection; said tax shall be assessed
and collected each year and applied to the payment of the Debt
Service Requirements, and the. same shall not be diverted to any
other purpose. The taxes so levied and collected shall be
deposited into the Certificate Fund. This governing body hereby
declares its purpose and intent to provide and levy a tax legally
and fully sufficient to pay the said Debt Service Requirements, it
having been determined that the existing and available taxing
authority of the City for such purpose is adequate to permit a
legally sufficient tax in consideration of all other outstanding
indebtedness.
The amount of taxes to be provided annually for the payment
of the principal of and interest on the Certificates herein
authorized to be issued shall be determined and accomplished in
the following manner:
(a) Prior to the date the City Council establishes the
annual tax rate and passes an ordinance levying ad valorem taxes
each year, the City Council shall determine:
(1) The amount on deposit in the Certificate
Fund after (a) deducting therefrom the total
amount of Debt Service Requirements to become due
on Certificates prior to the Collection Date for
the ad valorem taxes to be levied and (b) adding
thereto the amount of Net Revenues of the System
appropriated and allocated to pay such Debt
Service Requirements prior to the Collection Date
for the ad valorem taxes to be levied.
(2) The amount of Net Revenues if any,
appropriated and to be set aside for the payment
of the Debt Service Requirements on the
Certificates between the Collection Date for the
taxes then to be levied and the Collection Date
for the taxes to be levied during the next
succeeding calendar year.
(3) The amount of Debt Service Requirements
to become due and payable on the Certificates
between the Collection Date for the taxes then to
be levied and the Collection Date for the taxes to
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be levied during the next succeeding calendar
year.
(b) The amount of taxes to be levied annually each year to
pay the Debt Service Requirements on the Certificates shall be the
amount established in paragraph (3) above less the sum total of
the amounts established in paragraphs (l)and (2), after taking
into consideration delinquencies and costs of collecting such
annual taxes,
SECTION 13: Limited Pledge of Net Revenues. The City
hereby covenants and agrees that subject to the prior lien on and
pledge of the Net Revenues to the payment and security of the
Prior Lien Obligations, the Net Revenues (within the limitation of
a total amount of $2,500 during the time the Certificates or
interest thereon remain outstanding and unpaid) are hereby
irrevocably pledged to the payment of the principal of and
interest on the Certificates and the pledge of Net Revenues herein
made for the payment of the Certificates shall constitute a lien
on the Net Revenues in accordance with the terms and provisions
hereof and be valid and binding without any physical delivery
thereof or further act by the City,
SECTION 14: System Fund. The city hereby covenants and
agrees that all Gross Revenues (excluding earnings from the
investment of money held in any special funds or accounts created
for the payment and security of Prior Lien Obligations) shall be
deposited from day to day as collected into a "City of Lubbock,
Texas, Waterworks System OPerating Fund" (hereinafter called
"System Fund") which Fund shall be kept and maintained at an
official depository bank of the City. All moneys deposited in the
System Fund shall be pledged and appropriated to the extent
required for the following purposes and in the order of priority
shown, to wit:
.Ell:.l!t: To the payment of all necessary and
reasonable OPerating and Maintenance Expenses of
the System as defined herein or required by
statute to be a first charge on and claim against
the Gross Revenues.
Second: 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; and
~: To the payment of the amounts
required to be deposited in the special funds and
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accounts (the Certificate Fund) created and
established for the payment of the certificates
and Additional Certificates.
Any Net Revenues remaining in the System 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.
SECTION 15: Deposits to certificate Fund. The City hereby
covenants and agrees to cause to be deposited in the Certificate
Fund from the pledged Net Revenues in the system Fund, an amount
equal to $2,500.
The city covenants and. agrees that the amount of pledged Net
Revenues ($2,500), together with ad valorem taxes levied,
collected, and deposited in the Certificate Fund for and on behalf
of the Certificates, will be an amount equal to one hundred
percent (100%) of the amount required to fully pay the interest
and principal due and payable on the certificates, 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 Net Revenues.
SECTION 16: security of Funds. All moneys on deposit in
the Funds for which this Ordinance makes provision (except any
portion thereof as may be at any time properly invested) shall be
secured in the manner and to the fullest extent required by the
laws of Texas for the security of public funds, and moneys on
deposit in such Funds shall be used only for the purposes
permitted by this Ordinance.
SECTl:ON 17: Maintenance of System -Insurance. While the
Certificates remain outstanding, the City covenants and agrees to
maintain and operate the System with all possible efficiency and
to maintain casualty and other insurance on the properties of the
System and its operations of a kind and in such amounts
customarily carried by municipal corporations in the State of
Texas engaged in a similar type business; and that it will
faithfully and punctually perform all duties with reference to the
System required by the Constitution and laws of the State of
Texas.
SECTION 1a: Rates and Charges. The City hereby covenants
and agrees that rates and Charges for services provided by the
system will be established and maintained, on the basis of all
available information and experience and with due allowance for
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contingencies, that are reasonably expected to provide Gross
Revenues to pay:
(a) Operating and Maintenance Expenses of
the System;
(b) the interest on and principal of Prior
Lien Obligations and the amounts required to be
deposited into any special Funds created and
established for the payment and security of the
Prior Lien Obligations;
(c) the amounts required to be deposited in the special Funds or Accounts (the Certificate
Fund) created for the payment of the Certificates
and Additional certificates;
(d) any other legally incurred indebtedness
payable from the revenues of the system and/or
secured by a lien on the system or the revenues
thereof.
SECTION 19: Records and Accounts -Annual Audit. The city
further covenants and agrees that while any Certificates remain
outstanding, it will keep and maintain accurate and complete
records and accounts pertaining to the ownership, operation and
maintenance of the System. The Holders of the certificates or any
duly authorized agent or agents of such Holders shall have the
right to inspect the System and all properties comprising the
same. The city further agrees that following the close of each
Fiscal Year, it will cause an audit of such books and accounts to
be made by an independent firm of Certified Public Accountants.
copies of each annual audit shall be furnished to the Executive
Director of the Municipal Advisory Council of Texas at his office
in Austin, Texas and upon written request, to the initial
purchaser of the Certificates and any subsequent Holder of 10% or
more in principal amount of the Certificates Outstanding.
SECTION 20: Remedies in Event of Default. In addition to all the rights and remedies provided by the laws of the State of
Texas, the City covenants and agrees particularly that in the
event the City (a) defaults in the payments to be made to the
Certificate Fund, or (b) defaults in the observance or performance of any other of the covenants, conditions or obligations set forth
in this Ordinance, the owner or owners of any of the certificates
shall be entitled to a writ of mandamus issued by a court of
proper jurisdiction compelling and requiring the governing body of
the City and other officers of the City to observe and perform any covenant, condition or obligation prescribed in this Ordinance.
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No delay or omission to exercise any right or power accruing
upon any default shall impair any such right or power, or shall be
construed to be a waiver of any such default or acquiescense
therein, and every such right and power may be exercised from time
to time and as often as may be deemed expedient. The specific
remedies herein provided shall be cumulative of all other existing
remedies and the specification of such remedies shall not be
deemed to be exclusive.
SECTION 21: Special covenants. The city hereby further
covenants as follows:
(a) It has the lawful power to pledge the Net
Revenues of the System supporting this issue of
Certificates and has lawfully exercised said powers
under the constitution and laws of the State of Texas,
including said power existing under V.T.C.A., Loe. Govt.
Code, Subchapter C of Chapter 271, and Tex. Rev. Civ.
Stat. Ann. art. 1111-1118,
(b) Other than for the payment of the outstanding
Prior Lien Obligations and the Certificates, the Net
Revenues of the System have not in any manner been
pledged to the payment of any debt or obligation of the
city or of the system.
SECTION 22: Issuance of Prior Lien Obligations and
Additional certificates. The City hereby expressly reserves the
right to hereafter issue Prior Lien Obligations, without
limitation as to principal amount or any other limitation or
restriction. ·
In addition, the City reserves the right to issue Additional
Certificates, without limitation or any restriction or condition
being applicable to their issuance under the terms of this
Ordinance, payable from and secured by a lien on and pledge of the
Net Revenues of the system 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.
SECTION 23: subordinate to Prior Lien Obligations.
Covenants and Agreements. It is the intention of this governing
body and accordingly hereby recognized and stipulated that the
provisions, agreements and covenants contained herein bearing upon
the management and operations of the System and the administering and application of revenues derived from the operation thereof,
shall to the extent possible be harmonized with like provisions,
agreements and covenants contained in ordinances authorizing the
issuance of Prior Lien Obligations, and to the extent of any
irreconciable conflict between the provisions contained herein and
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in ordinances authorizing the issuance cf Prior Lien Obligations,
the previsions, agreements and covenants· contained therein shall
prevail to the extent cf such conflict and be applicable to this
ordinance but in all respects subject to the priority cf rights
and benefits, if any, conferred thereby to the holders or owners
of the Prior L_ien Obligations. Notwithstanding the above, any
change or modification affecting the application of revenues
derived from the operation of the System shall not impair the
obligation of contract with respect to the pledge of revenues
herein made for the payment and security of the Certificates.
SECITON 24: Satisfaction of Obligations of City. If the City shall pay or cause to be paid, or there shall otherwise be
paid to the Holders, the principal of, premium, if any, and
interest on the Certificates, at the times and in the manner
stipulated in this Ordinance, then the pledge cf taxes levied and
the lien on and pledge cf the Net Revenues cf the System under
this Ordinance and all covenants, agreements, and other
obligations cf the City to the Holders shall thereupon cease,
terminate, and be discharged and satisfied.
Certificates shall be deemed to have been paid within the
meaning and with the effect expressed above in this Section when
(i) money sufficient to pay in full such certificates or the
principal amount(s) thereof at maturity or (if notice cf
redemption has been duly given or waived or if irrevocable
arrangements therefor acceptable to the Paying Agent/Registrar
have been made) the redemption date thereof, together with all
interest due thereon, shall have been irrevocably deposited with
and held in trust by the Paying Agent/Registrar, or an authorized
escrow agent, or (ii) Government Securities shall have been
irrevocably deposited in trust with the Paying Agent/Registrar, or
an authorized escrow agent, which Government Securities have been
certified by an independent accounting firm to mature as to
principal and interest in such amounts and at such times as will
insure the availability, without reinvestment, of sufficient
money, together with any moneys deposited therewith, if any, to
pay when due the principal of and interest on such Certificates,
or the principal amount(s) thereof, on and prior to the stated
Maturity thereof or (if notice cf redemption has been duly given
or waived or if irrevocable arrangements therefor acceptable to
the Paying Agent/Registrar have been made) the redemption date
thereof. The City covenants that no deposit of moneys or
Government Securities will be made under this Section and no use
made of any such deposit which would cause the Certificates to be
treated as "arbitrage bonds" within the meaning of Section 148 of
the Internal Revenue Cede cf 1986, as amended, or regulations
adopted pursuant thereto.
Any moneys so deposited with the Paying Agent/Registrar and
all income from Government Securities held in trust by the Paying
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Agent/Registrar, or an authorized escrow agent, pursuant to this
section which is not required for the payment of the certificates,
or any principal amount(s) thereof, or interest thereon with
respect to which such moneys have been so deposited shall be
remitted to the City or deposited as directed by the City.
FUrthermore, any money held by the Paying Agent/Registrar for the
payment of the principal of and interest on the Certificates and
remaining unclaimed for a period of four (4) years after the
maturity, or applicable redemption date, of the Certificates such
moneys were deposited and are held in trust to pay shall upon the
request of the City be remitted to the City against a written
receipt therefor. Notwithstanding the above and foregoing, any
remittance of funds from the Paying Agent/Registrar to the City
shall be subject to any applicable unclaimed property laws of the
State of Texas.
SECTION 25: Ordinance a contract -Amendments. This Ordinance shall constitute a contract with the Holders from time
to time, be binding on the City, and shall not be amended or
repealed by the City so long as any Certificate remains
outstanding except as permitted in this Section. The City, may,
without the consent of or notice to any Holders of the
Certificates, from time to time and at any time, amend this
Ordinance in any manner not detrimental to the interests of the
Holders of the Certificates, including the curing of any
ambiguity, inconsistency, or formal defect or omission herein. In
addition, the City may, with the written consent of Holders of the
Certificates holding a majority in aggregate principal amount of
the certificates then outstanding affected thereby, amend, add to,
or rescind any of the provisions of this Ordinance; provided that,
without the consent of all Holders of Outstanding Certificates, no
such amendment, addition, or rescission shall (1) extend the time
or times of payment of the principal of, premium, if any, and
interest on the Certificates, reduce the principal amount thereof,
the redemption price, or the rate of interest thereon, or in any
other way modify the terms of payment of the principal of,
premium, if any, or interest on the Certificates, (2) give any
preference to any Certificate over any other certificate, or (3)
reduce the aggregate principal amount of certificates required to
be held by Holders for consent to any such amendment, addition, or
rescission.
SECTION 26: Notices to Holders -waivers. Wherever this Ordinance provides for notice to Holders of any event, such notice
shall be sufficiently given (unless otherwise herein expressly
provided) if in writing and sent by United States Mail, first
class postage prepaid, to the address of each Holder appearing in
the Security Register at the close of business on the business day
next preceding the mailing of such notice.
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In any case where notice to Holders is given by mail, neither
the failure to mail such notice to any particular Holders, nor any
defect in any notice so mailed, shall affect the sufficiency of such notice with respect to all other certificates. Where this
Ordinance provides for notice in any manner, such notice may be
waived in writing by the Holder entitled to receive such
notice, either before or after the event with respect to which
such notice is given, and such waiver shall be the equivalent of
such notice. Waivers of notice by Holders shall be filed with the
Paying Agent/Registrar, but such filing shall not be a condition
precedent to the validity of any action taken in reliance upon
such waiver.
SECTION 27: cancellation. certificates surrendered for
payment, redemption, transfer, or exchange, if surrendered to the
Paying Agent/Registrar, shall be promptly cancelled by it and, if
surrendered to the City, shall be delivered to the Paying
Agent/Registrar and, if not already cancelled, shall be promptly
cancelled by the Paying Agent/Registrar. The City may at any time
deliver to the Paying Agent/Registrar for cancellation any
certificates previously certified or registered and delivered
which the City may have acquired in any manner whatsoever, and all
certificates so delivered shall be promptly cancelled by the
Paying Agent/Registrar. All cancelled Certificates held by the
Paying Agent/Registrar shall be returned to the City,
SECTION 28: Mutliated. Destroyed. Lost and Stolen certi-ficates. In case any certificate shall be mutilated, or
destroyed, lost or stolen, the Paying Agent/Registrar may execute
and deliver a replacement Certificate of like form and tenor, and
in the same denomination and bearing a number not
contemporaneously outstanding, in exchange and substitution for
such mutilated certificate, or in lieu of and in substitution for
such destroyed, lost or stolen Certificate, only upon the approval
of the City and after (i) the filing by the Holder thereof with
the Paying Agent/Registrar of evidence satisfactory to the Paying
Agent/Registrar of the destruction, loss or theft of such
Certificate, and of the authenticity of the ownership thereof and
(ii) the furnishing to the Paying Agent/Registrar of
indemnification in an amount satisfactory to hold the City and the Paying Agent/Registrar harmless. All expenses and charges
associated with such indemnity and with the preparation, execution
and delivery of a replacement Certificate shall be borne by the
Holder of the certificate mutilated, or destroyed, lost or stolen.
Every replacement Certificate issued pursuant to this Section
shall be a valid and binding obligation, and shall be entitled to
all the benefits of this Ordinance equally and ratably with all
other outstanding certificates; notwithstanding the enforceability
of payment by anyone of the destroyed, lost or stolen
Certificates.
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The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with
respect to the replacement and payment of mutilated, destroyed,
lost, or stolen Certificates.
SECTION 29: Covenants to Maintain Tax-Exempt Status.
(a) Definitions. When used in this section 29, the
following terms have the following meanings:
"Code" means the Internal Revenue Code of 1986, as
amended by all legislation, if any, enacted on or before the date of delivery of the Certificates to the initial
purchaser(s) thereof.
"Computation Date" has the meaning stated in Treas.
Reg. S 1.148-S(b)(l),
"Gross Proceeds" has the meaning stated in Treas.
Reg. S 1.148-S(d).
"Investment" has the meaning stated in Treas.
Reg.§ 1,148-S(e).
"Net Proceeds" of the Certificates means the
proceeds of the Certificates.
11Nonpurpose Investment" means any Investment in
which Gross Proceeds of the Certificates are invested
and which is not acquired to carry out the governmental
purpose of the Certificates.
"Rebatable Arbitrage" has the meaning stated in
Treas. Reg. S 1.148-2.
"Yield of"
(1) any Investment shall be computed in
accordance with Treas. Reg. 51,148-2, and
(2) the Certificates has the meaning
stated in Treas. Reg. S 1.148-3.
(b) Not to Cause Interest to Become Taxable. The City shall
not use, permit the use of, or omit to use Gross Proceeds or any
other amounts (or any property the acquisition, construction, or
improvement of which is to be financed directly or indirectly with
Gross Proceeds) in a manner which, if made or omitted, respectively, would cause the interest on any Certificate to
become includable in the gross income, as defined in section 61 of
the Code, of the owner thereof for federal income tax purposes.
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Without limiting the generality of the foregoing, unless and until
the City shall have received a written opinion of counsel
nationally recognized in the field of municipal bond law to the
effect that failure to comply with such covenant will not
adversely affect the exclusion of interest on any Certificate from
gross income for federal income tax purposes pursuant to Section
103 of the Code, the City shall comply with each of the specific
covenants in this Section.
(c) No Priyate Use or Private Payments. Except as permitted
by section 141 of the Code and the regulations and rulings
thereunder, the City shall, at all times prior to the last stated
Maturity of Certificates,
(1) exclusively own, operate, and possess all
property the acquisition, construction, or improvement
of which is to be financed directly or indirectly with
Gross Proceeds of the Certificates and not use or permit
the use of such Gross Proceeds or any property acquired,
constructed, or improved with such Gross Proceeds in any
activity carried on by any person or entity other than
a state or local government, unless such use is solely as a member of the general public, or
(2) not directly or indirectly impose or accept
any charge or other payment for use of Gross Proceeds of
the certificates or any property the acquisition,
construction, or improvement of which is to be financed
directly or indirectly with such Gross Proceeds, other than taxes of general application within the City or
interest earned on investments acquired with such Gross
Proceeds pending application for their intended
purposes.
(d) No Private Loan. Except to the extent permitted by
section 141 of the Code and the regulations and rulings
thereunder, the City shall not use Gross Proceeds of the
certificates to make or finance loans to any person or entity
other than a state or local government. For purposes of the
foregoing covenant, such Gross Proceeds are considered to be
''loaned" to a person or entity if (1) property acquired,
constructed, or improved with such Gross Proceeds is sold or
leased to such person or entity in a transaction which creates a
debt for federal income tax purposes, (2) capacity in or service
from such property is committed to such person or entity under a
take-or-pay, output, or similar contract or arrangement, or (3)
indirect benefits, or burdens and benefits of ownership, of such
Gross Proceeds or any property acquired, constructed, or improved
with such Gross Proceeds are otherwise transferred in a
transaction which is the economic equivalent of a loan.
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(e) Not to Invest at Higher Yield. Except to the extent permitted by section 148 of. the Code and the regulations and
rulings thereunder, the City shall not, at any time prior to the
final Stated Maturity of the Certificates, directly or indirectly
invest Gross Proceeds of the Certificates in any Investment (or
use such Gross Proceeds to replace money so invested), if as a
result of such investment the Yield of all Investments allocated
to such Gross Proceeds whether then held or previously disposed
of, exceeds the Yield of the Certificates.
(f) Not Federally Guaranteed. Except to the extent
permitted by section 149(b) of the Code and the regulations and
rulings thereunder, the City shall not take or omit to take any
action which would cause the Certificates to be federally
guaranteed within the meaning of Section 149(b) of the Code and
the regulations and rulings thereunder.
(g) Information Report. The City shall timely file with the
Secretary of the Treasury the information required by section
149(e) of the Code with respect to the Certificates on such form
and in such place as such Secretary may prescribe.
(h) eanent of Rebatable Arbitrage. Except to the extent
otherwise provided in section 14B(f) of the Code and the
regulations and rulings thereunder,
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(1) The City shall account for all Gross Proceeds
of the Certificates (including all receipts,
expenditures, and investments thereof) on its books of
account separately and apart from all other funds (and
receipts, expenditures, and investments thereof) and
shall maintain all records of such accounting with the
official transcript of the proceedings relating to the
issuance of the Certificates until six years after the
final Computation Date. The City may, however, to the
extent permitted by law, commingle Gross Proceeds of the
Certificates with other money of the City, provided that
the City separately accounts for each receipt and
expenditure of such Gross Proceeds and the obligations
acquired therewith.
(2) Not less frequently than each Computation
Date, the city shall either (i) cause to be calculated
by a nationally recognized accounting or financial
advisory firm or (ii) calculate and cause its
calculations to be verified by a nationally recognized accounting or financial advisory firm, in either case in
accordance with rules set forth in section 14B(f) of the
Code and Treas. Reg. S 1.148-2 and rulings thereunder,
the Rebatable Arbitrage with respect to the
certificates. The City shall maintain such calculations
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with the official transcript of the proceedings relating
to the issuance of the Certificates until six years
after the final Computation Date.
(3) As additional consideration for the purchase
of the Certificates by the initial purchasers thereof
and the loan of the money represented thereby, and in
order to induce such purchase by measures designed to
result in the excludability of the interest thereon from
the gross income of the owners thereof for federal
income tax purposes, the City shall pay to the United
States the amount described in paragraph (2) above and
the amount described in paragraph (4) below, at the
times, in the installments, to the place, in the manner,
and accompanied by such forms or other information as is
or may be required by section 148(f) of the Code and
Treas. Reg.§§ 1,148-1 through 1.148-9 and rulings
thereunder.
(4) The City shall exercise reasonable diligence
to assure that no errors are made in the calculations
required by paragraph (2) and, if such error is made, to
discover and promptly to correct such error within a
reasonable amount of time thereafter, including payment
to the United states of any Correction Amount as
described in Treas. Reg. § 1. 148-1 (c) (2) and any penalty
under Treas. Reg. S l.148-l(c)(3)(ii) (B).
SECTION 30: Sale of the Certificates. The sale of the
certificates to Smith Barney, Harris Upham & co. Incorporated
(herein referredto as the "Purchasers") at the price of par and
accrued interest to the date of delivery is hereby approved and
confirmed. Delivery of the Certificates to the Purchasers shall
occur as soon as possible upon payment being made therefor iri
accordance with the terms of sale,
SECTION 31: Proceeds of Sale. The proceeds of sale of the
certificates, excluding the accrued interest received from the
Purchasers, shall be deposited in a construction fund maintained
at the City's depository bank. Pending expenditure for authorized
projects and purposes, such proceeds of sale may be invested in
authorized investments pursuant to the Public Funds Investment Act
of 1987 and any investment earnings realized may be expended for
such authorized projects and purposes or deposited in the
Certificate Fund as shall be determined by the City council. All
surplus proceeds of sale of the Certificates, including investment
earnings, remaining after completion of all authorized projects or
purposes shall be deposited to the credit of the Certificate Fund.
SECTION 32: control and custody of certificates. The
Mayor of the City shall be and is hereby authorized to take and
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have charge of all necessary orders and records pending
investigation by the · Attorney General of the state of Texas,
including the printing of the Certificates, and shall take and
have charge and control of the Certificates pending the approval
thereof by the Attorney General, the registration thereof by the
comptroller of Public Accounts and the delivery thereof to the
Purchasers.
Furthermore, the Mayor, City Secretary, City Manager, and
Assistant City Manager for Financial Services, any one or more of
said officials, are hereby authorized and directed to furnish and
execute such documents and certifications relating to the City and
the issuance of the Certificates, including a certification as to
facts, estimates, circumstances and reasonable expectations
pertaining to the use and expenditure and investment of the
proceeds of the Certificates as may be necessary for the approval
of the Attorney General, registration by the Comptroller of Public
Accounts and deli very of the Certificates to the purchasers
thereof and, together with the City's financial advisor, bond
counsel and the Paying Agent/ Registrar, make the necessary
arrangements for the delivery of the Initial certificate to the
purchasers.
SECTION 33: Official statement. The Official statement
prepared in the initial offering and sale of the certificates by
the city, together with all addendas, supplements and amendments
thereto issued on behalf of the City, is hereby approved as to
form and content, and the City Council hereby finds that the
information and data contained in said Official statement
pertaining to the City and its financial affairs is true and
correct in all material respects and no material facts have been
omitted therefrom which are necessary to make the statements
therein, in light of the circumstances under which they were made,
not misleading. The use of such Official statement in the
reoffering of the Certificates by the PUrchasers is hereby
approved and authorized.
SECTION 34: Printed Opinion. The Purchaser's obligation
to accept delivery of the Certificates is subject to being
furnished a final opinion of Fulbright & Jaworski, Attorneys,
approving such Certificates as to their validity, said opinion to
be dated and delivered as of the date of delivery and payment for
the Certificates. Printing of a true and correct reproduction of
said opinion on the reverse side of each of the definitive
Certificates is hereby approved and authorized.
SECTION 35: CUSIP Numbers. That CUSIP numbers may be
printed or typed on the definitive Certificates. It is expressly
provided, however, that the presence or absence of CUSIP numbers
on the definitive Certificates shall be of no significance or
effect as regards the legality thereof and neither the City nor
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attorneys approving said Certificates as to legality are to be
held responsible for CUSIP numbers incorrectly printed or typed on
the definitive Certificates.
SECTION 36: Benefits of Ordinance. Nothing in this
Ordinance, expressed or implied, is intended or shall be construed
to confer upon any person other than the City, the Paying
Agent/Registrar and the Holders, any right, remedy, or claim,
legal or equitable, under or by reason of this Ordinance or any
provision hereof, this Ordinance and all its provisions being
intended to be and being for the sole and exclusive benefit of the City, the Paying Agent/Registrar and the Holders.
SECTION 37: Inconsistent Provisions. All ordinances,
orders or resolutions, or parts thereof, which are in conflict or
inconsistent with any provision of this Ordinance are hereby repealed to the extent of such conflict and the provisions of this
Ordinance shall be and remain controlling as to the matters
contained herein.
SECTION 38: Governing Law. This Ordinance shall be
construed and enforced in accordance with the laws of the state of
Texas and the united States of America.
SECTION 39: Seyerability. If any provision of this
Ordinance or the application thereof to any circumstance shall be
held to be invalid, the remainder of this. Ordinance and the
application thereof to other circumstances shall nevertheless be
valid, and the City Council hereby declares that this Ordinance
would have been enacted without such invalid provision.
SECTION 40: Effect of Headings. The section headings herein
are for convenience only and shall not affect the construction
hereof.
SECTION 41: construction of Tegns. If appropriate in the
context of this Ordinance, words of the singular number shall be
considered to include the plural, words of the plural number shall
be considered to include the singular, and words of the masculine,
feminine or neuter gender shall be considered to include the other
genders.
SECTION 42: Public Meeting. It is officially found,
determined, and declared that the meeting at which this Ordinance
is adopted was open to the public and public notice of the time,
place, and subject matter of the public business to be considered
at such meeting, including this Ordinance, was given, all as required by Article 6252-17, Vernon's Texas Civil statutes, as
amended.
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SECTION 43: Effective Date. This Ordinance shall take
effect and be in force ill1111ediately from and after its passage on
second and final reading, and IT IS SO ORDAINED,
PASSED AND ADOPTED ON FIRST READING, this 13th day of August,
1992
this l.4th day
ATTEST:
{City Seal)
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tXHIBIT A
PAYING AGENT/REGISTRAR AGREEMENT
THIS AGREEMENT entered into as of August 14, 1992 (this
"Agreement"), by and between the City of Lubbock, Texas (the
"Issuer"), and NationsBank of Texas, N.A., Fort Worth, Texas, 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 Waterworks system
(Limited Pledge) Revenue Certificates of Obligation, Series 1992"
(the "Securities") in the aggregate principal amount of $7,565,000,
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 September 9, 1992; and
WHEREAS, the Issuer has selected the Bank to serve as Paying
Agent/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 has agreed to serve in such capacities for
and on behalf of the Issuer and has full power and authority to
perform and serve as Paying Agent/Registrar for the Securities;
NOW, THEREFORE, it is mutually agreed as follows:
ARTICLE ONE
APPOINTMENT OF BANK AS
PAYING AGENT AND 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
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 Bank hereby accepts its appointment, and agrees to serve
as the Paying Agent and Registrar for the Securities.
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,.,.
The Bank hereby accepts its appointment, and agrees to serve
as the Paying Agent and 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.
In addition, the Issuer agrees to reimburse the BanJt 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 BanJt will
notify the Issuer in writing of any change in location of the
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.
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"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.
"Security Register" means a register maintained by the
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.
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section 2.02. Other Definitions.
The terms "Bank," "Issuer," 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. OS 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 Dates.
The Issuer hereby instructs the Sank to pay the principal of
and interest on the Securities at the dates specified in the Bond
Resolution.
ARTICLE FOUR
REGISTRAR
section 4.01. Security Register-Transfers and Exchanges.
The Bank agrees to keep and maintain for and on behalf of the
:cssuer 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,
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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.
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.
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.
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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 a.s 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.
securities. Lost. or stolen
The Issuer hereby instructs the Bank, subject to the
provisions of Section 28 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 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
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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 s.01. Duties of the Baru;.
The Bank undertakes to perform the duties set forth herein and
agrees to use reasonable care in the performance thereof.
section s.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 Banlc.
(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
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 Banlc may rely and shall be protected in acting or
refraining from actinq upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent,
order, bond, note, security, or other paper or docu:ment believed by
it to be genuine and to have been signed or presented by the proper
party or parties. Without limiting the 9enerality of the foregoing
statement, the Banlc 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
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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) 'l'he 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 Issue~.
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 responsiblity 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.
section s. os. ,..M.,.o~n..,e..,y..,s._H.,.e..,1..,d..,_ ... b""'v __ _,t._.h...,e.....,_B...,,,a...,n..,k..._ ___ __,s...,e.,.pt<-a....._r.lda..,.t:.!i:e
Account1c011ateralization.
A separate account shall at all times be kept and maintained
by the BanJt 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 accot1nt unless the owner of such Securities shall, at its own
expense and risk, request such other medium of payment.
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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 s.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 s.oe. PT Services.
It is hereby represented and warranted that, in the event the
Securities are otherwise qualified and accepted for •oepository
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•, effective as of the date of this Agreement, 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.
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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. Seyerability.
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 6.01. 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
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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. Coyerning 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.
[SEAL}
Attest:
City Secretary
(SEAL)
ATTEST:
Title:
CITY OF LUBBOCK, TEXAS
BY ______________ _
Mayor
Address:
P. o. Box 2000
Lubbock, Texas 79457
NATIONSBANK OF TEXAS, N,A.
Fort Worth, Texas
BY ______________ _
Mailing Address:
P, o. Box 2911
Fort Worth, Texas 76113
Delivery Address: 511 w. Seventh, 11th Floor
Fort Worth, Texas 76102
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EXHIBIT B
,,:· . l 1300K-ESTlff·OXI.\" ~IUNICI11.\L IH>XDS s'
Letter of Representations
·.: . ..+ * ,., -·':.'~_,,._ •. ·.~· , .... ~ ...... ~•·'"·
City of Lubbock, Texas
:s•nl<' of lnu,,rJ
NatioosBank of Texas, N.A.
;s.ime of Agent I
August 14, 1992
Attention: Gener.ii Counsel's Office
The Depository Trust Company
55 Water Street: .t9th Floor
New York. XY 10041-0099
!Daiei
f\e: _ __,$'""'7.a.'.:..56.:..5;;..;,"-'000'-"-'_"_C_i_t_..y_o_f_L_ubbock ___ ,_T_e_xas;...;;...;,_Ta_x_an_d_Wa_t_e_rwo __ rks __
System (Limited Pledge) Revenue Certificates of
Cbligation, Series 1992"
Ladies and Gentlemen:
This letter sets forth our understanding with respect to certain matters relating to the
~-e-referenced issue (the •Bonds"). Agent .....;I] act as trustee, pa)ing agent, fiscal agent. or other
agent of Issuer with respect to the Bonds. The Bonds .....;I] be Issued pursuant to a trust indenture,
bond resolution. or other such document authorizing the issuance of the Bonds dated
_....:.::Aµgus==t..:l:.:4c.--, 199.l (the ~Document").-----,---,----,-----
illnderw.'riteri
is distributing the Boom through The Depository Trust Company (·OTC"}.
To induce DTC to accept the Bonds as eligible for deposit at DTC. and to act in accordance
with its Rules with respect to the Bonds, Issuer and Agent, if any, make the following
representations to DTC:
No Text
I. Prior to dosing on the Bon<l\ c111 September 9 • 199.1.., tlK•rc shall he tk1>osited \l.ith
DTC 01lt' Bond t1:rtifll11te rcgisl<•red in the name of DTC's nomint'<'. C..t-<le & Co .. for each ~taled
maturitv of tlw Bonds in the fal'e amounts ~t't forth on Sdwdulc A hereto, the total of which
represe.nts Hl0% of the principal amount of sul·h Bonds. If. however, the aggregate prindpal
amount of ,my maturity ex,-eeds 8150 million. one certiricate \\ill be issued \l.ith respect to ead1
.~150 million of prindpul amount and an additional certifk-ate will be issued with respect to any
remaining principal amount. Each $150 million Bond certiflcate shall bear the following legend:
Unless this certifk-ate is presented by an authorized representative of The Depository Trust
Comp.my. a New York corporation ("DTC"l. to Issuer or its agent for registration of transfer,
exchange. or payment, and any certificate issued Is registered in the name of Cede & Co. or in
such otJ1er name a., is requested by an authorized representative of DTC (and any pa)ment is
made to Cede & Co. or to such other entity as is requested by an authorized representative of
DTC), ANY TRANSFER. PLEDGE. OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ASY PERSO:S IS WRONGFUL inasmuch as the registered
owner hereof. Cede & Co .• has an interest herein.
2. In the event of any solicitation of consents from or voting by holders of the Bonds. Issuer or
Agent shall establish a record date for such purposes (with no provision for re\'OC"dtion o( consents or
\'Otes by subsequent holders) and shall. to the extent possible. send notice of such record date to
DTC not less than 15 calendar days in 00\'anCt" of such record date.
3. In the event of a full or partial redemption or an ad1111llce refunding of part of the outstanding
Bonds. Issuer or Agent shall send a notice to DTC specifying: (a) the amount of the redemption or
refunding; (b) in the case of a refunding, the maturity date(s) established under the refunding; and
(c) the date such notice is to be mailed to beneficial owners or published (the "Publication Date").
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 assure that such notice is in DTC's
possession no later than the close of business on the business day before the Publication Date.
Issuer or Agent shall forward such notice either in a separate secure transmission for each CUSIP
number or in a secure transmission for multiple CUSIP numbers (If applicable) which includes a
manifest or list of each CUSIP submitted in that transmission. (The party sending such notice shall
have a method to verify subsequently the use of such means and the timeliness of such notice.) Tbe
Publication Date shall be not less than 30 days nor more than 60 days prior to the redemption date
or. in the case of an advance refunding, the date that the proceeds are deposited in escrow.
4. In the event of an invitation to tender the Bonds, notice by Issuer or Agent to Bondholders
specifying the tenns of the tender and the Publkation Date of such notice shall be sent to OTC by a
secure means in the manner set forth in the preceding Paragraph.
S. AD notices and payment advices sent to OTC shall contain the CUSIP number of the Bonds.
6. Notices to DTC pursuant to Paragraph 2 by telecopy shall be sent to DTC's Reorganization
Department at (212) 709-6896 or (2121 709-6897, and receipt of such notices shall be
confumed by telephoning (212) 709-68i0. Notices to D1C pursuant to Paragraph 2 by mail or by
any other means shall be sent to:
Supervisor; Proxy
Reorganh:atlon Department
1be Depository Trust Company
7 Hanover Square: 23rd Floor
NeYV York. NY 10004-2695
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1. Xotil,A lo DTC p11r.-mmt to Paragr.1ph 3 hy h•l1-t11py ,Ii.JI 111· !il.'111 tu DTC's Call '.'\otilk.ition
D1•1mrh111·nt at /,516 1 227--116-4 or (516) 2:?7--1190. trthl' party !Wlll~n~ the.> notk't' dn1;,s not re<.-civc a
tt•l(•mpy l'l'{.'l•ipt frum DTC <.untinning that thl• notkt' ha.s lx't'n rl't't'iwd. sudi party shall telephone
(516) :?2i-t070. :,.,:oti<.'t's to OTC pur.mant to Pur.igr.iph 3 by mail or by .my otllt'r means shall be
st'llt to:
OJI ="otification Departmt-nt
Tht-Dt•pository Trust Company
il I Stewart Avenue
Carden City. NY l 1530--1719
8. !'-:otices to OTC pursuant to Par.1gn1ph 4 and notic.-es of other actions (including mandatory
tenders, exchanges. and capital changes) by telec.opy shall be sent to DTC's Reorganization
Department at (2121709-1093 or (212) i00-1094. and ret-eipt of such notices shall be conllnned by
telephoning (212) i00-6884. Notices to DTC pursuant to the above by mail or by any other means
shall be sent to:
~anager: Reorganization Department
Reorganization \\ indQI.V
The Depository Trust Company
i HanO\·er Square; 23rd Floor
:,,.ew York. NY UXXH-269.5
9. Tr&1sactions in the Bonds shall be eligible for next-dav funds settlement in DTC's Xext-Dav
Funds Settlement ("XDFS") system. · •
A. Interest pa~ments shall be recei\'ed by Cede & Co .• as nominee of OTC. or its registered
assigns in next-day funds on each pa~ment date (or the equi,..alent in accordance "'ith
existing arr.mgernents between Issuer or Agent and DTC). Such papnents shall be made
payable to the order of Cede & Co. Absent an~· other existing arrangements such
pa}ments shall be addressed as follows:
Manager; Cash Receipts
Oi,..idend Department
The Depository Trust Company
7 Hanover Square: 24th Floor
Sew York. ~-y 10004-2695
B. Principal ~ments shall be received by c.ede & Co .• as nominee of OTC, or its registered
assigns in next-day funds on each pa~ment date (or the equivalent in accordance \\ith
existing arr.mgements between Issuer or Agent and OTC). Such payments shaD be made
payable to the order of Cede & Co., and shall be addressed as follows:
NDFS Redemption Department
The Depository Trust Company
55 Water Street: 50th Floor
New York. :,,,.,y 10041-0099
10. DTC may direct Issuer or Agent to use any other telephone number or address as the
number or address to which notices or pa)-ments of interest or principal may be sent.
11. In the e\-ent of a redemption. acceleration, or any other similar transaction (e.g .• tender made
and accepted in response to Issuer's or Agent's imitation) necessitating a reduction in the aggregate
principal amount of Bonds outstanding or an adl,ance refunding of part of the Bonds outstanding,
OTC, in its discretion: (a) may request Issuer or Agent to issue and authenticate a new Bond
certificate, or (b) may make an appropriate notation on the Bond certiflcate indicating the date and
amount of such reduction in principal except in the case of final maturity, in which case the
certificate will be presented to Issuer or Agent prior to pa~ment if required.
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12. In the t•wnt tltat l!isut>r <ll'tc•nninc~ that lx:n('fkial m,,ii•:-s of Bonds shall Ix• ahle to obtain
1.,•rtiflt~1ted Bomk Issuer or Agent shall notify OTC of the amilahility of Bond tt•rtiflc:ates. In such
cvt·nt. Js5uer or .\gl•nt shnJI issue, transfor. and exchange Bond <.'\•rtiflcates in appropriate amounts,
as required by OTC and others.
13. DTC may diK'<mtinue prmidin~ its services as securities depository with respect to the
Bond~ at any time by gMng rea.'iOnabli:, notk-e to Issuer or Agent (at which time OTC wiO conflnn
with Issuer or :\gent the aggregati:, principal amount of Bonds outstanding). Under such
cir<:umstanc:es. at DTC's request Issuer and Agent shall cooperate fully with OTC by taking
appropriate adion to make a,-ailable one or more separ.1te Ct>rtifk .. .ates e\ioendng Bonds to any
OTC Partic.ipant ha,ing Bonds credited to its DTC acrounts.
14. Sothing herein shall be deemed to require Agent to ad"unce funds on behalf of Issuer.
Recei\-ro and • .\ccepted:
THE DEPOSITORYTRUSTCOMP:\ .. ,-Y
S~:-------------1Authoriird om.. .... ,
Veiy truly yours,
City of Lul:bock, Texas
1lssuerl
By: ---------------.,uthoriz.N:I Off,c,.r', Sig,urure I
NationsBank. of Texas, N.A., Ft. worth
(~nil
By: ----~---,--,,---------.,,i,horizrd om._..,,·, S~ure,
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SCHEDULE A
(Describe Issue)
CUSIP Pri!'1cipal Amount Maturity Date Interest Rate
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SAMPLE OFFICIAL STATEMENT LANGUAGE
DESCRIBING BOOK-ENTRY-ONLY ISSUANCE
SCHEDULES
(Prepared by DTC--bracketed material may be applicable only to certain issues!
1. The Depository Trust Company roTc·i. New Yon<.. NY. will act as securities depository for the secunties (the
•Securities;. The Securities will be issued as full}, •registered securities registered in the name of Cede & Co. (DTC's
partnership nominee). One fully-registered Securtty certificate will be issued for (each issue of] the Securities, leach) 11
the aggregate principal amount of such issue. and wil be deposited with OTC. pl, however, the aggregate principal
amount of (any] isSue exceeds $150 m~fion, one certificate WIii be issued ....-ith respect to each $150 million of principal
amount and an ack:fitionaJ certificate win be issued with respect to any remaining principal amount of such issue.I
2. OTC is a imited-purpose trust companv organized under the New Ycn< Banking Law, a "banking organization"
within the meaning of the New York Banking Law. a member of the Federal Resel've System, a "ciearing CO!PO'ation"
within the mearing of the New York Uniform Commercial Code, and a "clearing agency• registered l)Uf5uant to the
provisions of Section 17A of the Securities Exchange Act of 1934. OTC holds securities that its participants
rParticipMtsi deposit with OTC. OTC alsc facilitates the settlement among Participants of securities transactions.
such as transfers and pledges. in depcsited securities through electronic computerized book•entry changes in
Participants· accounts. thereby eliminatirg the need for physical movement of securities certificates. Direct
Participants include securities brokers and dealers, banks. trust companies. clearing CO!POfations. and certain other
organizations. OTC is owned by a number of its Direct Participants and by the New York Stock Exchange, Inc., the
AmeriCan Stock Exchange. Inc .• and the Nat,onal Association of Securities Dealers. Inc. Access to the OTC 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 indirect1y ("Indirect Participants;. The Rules
applicable to OTC and its Participants are on file with the Securities and Exchange Commission.
3. Pun:;hases of Securities under the OTC system must be made by or through Direct Participants. which w,11
receive a credit for the Sec\lritieS on DTC's records. The ownership inte<est of each actual purchaser of each Security
("Beneficial Owneri is in turn to be recorde<:1 on the Direct and Indirect Participants' records. Beneficial Owners wifl
not ieceve INl'itten CQnfirmation lrom OTC cf their purchase, but Beneficial Owners are expected to receive INl'itten
confirmations pn:,viding details of the transaction. as well as peliodic statements of the!r holdings, from the Direct or
Indirect ~ through which the Benefieial Owner emerad into the transaction. Transfers ot ownership interests
in the SectJri!ies 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 the!r ownership interests in Securities. except in
the event that use of the bOOk-entry SyStem !or the Seel.lilies is cbcominued.
4. To facilitate subSequellt transfers. an Securities deposited by Participants with OTC are registered n the name of
DTC's partnership nominee, Cede & Co. The deposit of Securities with OTC and their registration in the name of Cede
& Co. effect no change in beneficial ownersh,p. OTC has no knowlei:Jl1e of the actual Beneficial Owners of the
Securities: DTC's records: reflect orfy the identity of the Direct Participants to whose accounts such Secuities are
credited, which may or may not be the Beneficial Owners. The ParticipantS will remain responsible for keeping
accooot or their hoking$ on behalf ot their customers.
5. Conveyance of notices and other ccmmunicationS by OTC to Direct Participants. by Oirect Participants to
Indirect Participants, and by Direct Participants and lrdrect Participants to Beneficial Owners wil be governed by
arrangements among them, subject to any statutory or reguatory requirements as may be in effect ln:rn time to lime.
(6. Aedeml)tion ootices shall be sent to Cede & Co. II less than all of the Securities within an issue are being
redeemed, OTC'$ practi::e is lo determine by lot the amoc.nt of the interest of each Direct Participant in such issue to
be redeemed.}
7. Neilher OTC nor Cede & Co. will consent or vote with respect to Securities. Under its usual po,::edures, OTC
mails en Omnibus Proxy to the Issuer as soon as possible after the record date. The Ormibus Proxy assigns Cede &
Co. 's consenting or voting rights to those Direct Participants to whose accounts the Securities are credited er, the
record date fldentified in a listing attached to the Omnibus Proxy).
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8. Principal and interest payments on the S1::~unhes will be made to OTC. DTC's practice 1s to cred11 Otrect
Part1C1pan1s· accounts on payable date 111 accoroarce w,th their respective holdings shown on DTC's rec01,1:; unless
OTC has reason lo believe that 4 will no! rec81\1e i::ayment on payable date. Paymenls by Participants to Beneficial
e>,,,.,ners will be governed by stand,ng instructions and customary practices. as is the case with securities held ror the
accounts of customers in bearer form Of registere-:: ,n ·street name: and w,n be the responsibility of such Partieipant
and not of OTC. lhe Agent. or the Issuer. subject to any statutory or regulatory requirements as may be in effect from
time to time. Payment of principal and interest to OTC is the resPQnsiblity of the Issuer or the Agent, disbursement of
such payments to Direct Participants shall be the responsiblhty of OTC. and disbursement of such payments to the
Beneficial Owners shal be the responsibility of Direct and Indirect Part1c,pants.
(9. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered. through its
Participant. to the (Tender/RemariletingJ Agent. and shall effect delivery of such Securities by causing the Direct
Participant to transfer the Participant's interest in the Securities. on OTC's records, to the (Tender/RemariletingJ Agent.
The requirement for physical delivery of Securities in connection with a demand for purchase or a mandatory
purchase wiff be deemed satisfied when the ownership rights 1n the Securilies are transferred by Direct Participants on
OTC's records.]
1 o. OTC may discontinue providing its services as securities depository with respect to the Securities at any lime
by giving reasonable notice to the Issuer or the Agent. Under such circumstances, in the event that a successor
securities depository is not obtained. Security certificates are required to be printed and delivered.
11. The Issuer rret decide to ciscontinue use of the system of book-entry transfers through OTC (or a successor
securities depository). In that event, Security certificates will be printed and derrvered.
12. The infonnation in this section cmcerning OTC and OTC's book•entry system has been obtained from sources
that the Issuer belieYeS to be reliable, but the Issuer lakes no responsibility for the accuracy thereof.
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PAYING AGENT/REGISTRAR AGREEMENT
THIS AGREEMENT entered into as of August 14, 1992 (this
"Agreement"), by and between the city of Lubbock, Texas (the
"Issuer"), and NationsBank of Texas, N.A., Fort Worth, Texas, 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 Waterworks System
(Limited Pledge) Revenue certificates of Obligation, Series 1992"
(the "Securities") in the aggregate principal amount of $7,565, ooo,
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 September 9, 1992; and
WHEREAS, the Issuer has selected the Bank to serve as Paying
Agent/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 has agreed to serve in such capacities for
and on behalf of the Issuer and has full power and authority to
perform and serve as Paying Agent/Registrar for the Securities;
NOW, THEREFORE, it is mutually agreed as follows:
ARTICLE ONE
APPOINTMENT OF BANK AS
PAYING AGENT AND 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
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 Bank hereby accepts its appointment, and agrees to serve
as the Paying Agent and Registrar for the Securities.
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The Bank hereby accepts its appointment, and agrees to serve
as the Paying Agent and 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.
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.
"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.
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"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.
"Security Register" means a register maintained by the
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.
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section 2.02. other Definitions.
The terms 11Bank," "Issuer," 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. OS 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 Dates.
The Issuer hereby instructs the Bank to pay the principal of
and interest on the Securities at the dates specified in the Bond
Resolution.
ARTICLE FOUR
REGISTRAR
section 4.01. Se9urity Register-Transfers and Exchanges.
The Bank agrees to keep and maintain for and on behalf of the
i:ssuer 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,
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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.
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.
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.
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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.
securities. Lost. or stolen
The Issuer hereby instructs the Bank, subject to the
provisions of Section 28 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
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
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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 s.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
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
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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 responsiblity 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 s.o4. 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.
Section 5.05. MM~o~n~e~y.s'--"H~e~l~d.._sb.v __ ~t~h~e=----B~o~n"k..,,_ ____ ~s~e~p~a~r~a.....,,t~e
Account/Col lateralization.
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.
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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 s.06. Indemnification.
To the extent per:mi tted 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 s.01. 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 noepository
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", effective as of the date of this Agreement, 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.
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ARTICLE SIX
MISCELLANEOUS PROVISIONS
Section 6.01. Arnendment.
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.
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.os. 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
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Agreement and the Bond Resolution, the Bond Resolution shall
govern.
section 6.09. £ounterparts.
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.
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IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the day and year first above written •
. [SEAL]
(SEAL)
ATTEST:
Address:
P. o. Box 2000
Lubbock, Texas 79457
NATIONSBANK OF TEXAS, N.A.
Fort Worth, Texas
Mailing Address:
P. o. Box 2911
Fort Worth, Texas 76113
Delivery Address:
511 w. seventh, 11th Floor
Fort worth, Texas 76102
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NationsBank of Texas, N.A.
ColJ)Orate Trust
901 Main Street, 16th Floor
Dallas, TX 75202,3714
, Fax 214 508-3430 r•=·· ~---
NalionsBank
ANNEX A
PAYIHG AGENT SERVJ:CES PROPOSAL RESPONSE FORM
FEE SCHEDULE
BOND REGISTRAR, 'l'RARSFBR AGENT, AND
PAYING AGENT -BOOK ENTRY ONLY
City of Lubbock, TX Tax and Waterworks System
(Limited Pledge) Revenue Certificates of Obligation
Series 1992 $7,565,000
BANK NAME:
OFFICIAL SUBMITTING:
OFFICIAL SIGNATURE:
TITLE OF OFFICIAL:
TELEPHONE NUMBER1
NationsBank of Texas, N.A.
Reanne T; Barber
~ \ j ~
Vice President
214-508-1705
ACCOUNT MAINTENANCE (Annual Administration Fee) $ 200.00
INTEREST PAYMENTS -0-
Payment of interest per interest payment date
PRINCIPAL PAYMENTS -0-
Payment of registered bond at maturity or by call
OTHER ITEMIZED SERVICES, AS SUGGESTED BY BIDDING BANK:
Extraordinary or out-of-pocket expenses including, but not
limited to legal representation, publication costs, courier,
etc., will be billed to the issuer at cost.
Member FDIC
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,f -. · , . . : :·' HOOK·ENTH\"-<>XI.Y 1\IUNICll'AL ll<>XDS ·,: ,: · .. · '; . ,
Letter of Representations
-;, f:t? ·'.°:; ..... ::.. -:·-2,J C' • .S'.":.J:' ~.-,"J .:.~":•Y'"
City of Lubbock, Texas
'.Xamt' orluuerJ
NatiatsBank of Texas, N.A.
, X amt' of Agent I
Attention: Gener.ii Counsel's Office
The Depository Trust Company
55 Water Street: -19th Floor
New York, :,,JY 10041-0099
August 14, 1992
(Date)
Re: __ ..,.$7_, 5_6_5_,_ooo __ "_C_i_t=y_o_f_L_ubbock ___ ,_T_e_x_as_,_T_a_x_an_d_w_a_t_e_IWO __ r_ks __
System (Limited Pledge) Revenue Certificates of
ClJligation, Series 1992"
t Issue D=riplion \
Ladies and Gentlemen:
This letter sets forth our understanding with respect to certain matters relating to the
above-referenced issue (the "Bonds"), Agent will act as trustee, pa)ing agent, fiscal agent, or other
agent of Issuer with respect to the Bonds. The Bonds will be issued pursuant to a trust indenture,
bond resolution, or other such document authorizing the issuance of the Bonds dated
---=A""ug=---=us=-=t-=14..;;._ __ , 1992 (the "Document"). Smith Barney, Harris Upham & Co.
("Underwriter") Incorporated
is distributing the Bonds through The Depository Trust Company ("DTC").
To induce DTC to accept the Bonds as eligible for deposit at DTC, and to act in accordance
with its Rules with respect to the Bonds, Issuer and Agent, if any, make the following
representations to DTC:
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I. Prior to dosing on the Bond~ on September 9 , t99i, there shall be deposited with
DTC one Bond <:ertif1<:ate registered in the mune of DTC's nominee, Cede & Co., for each stated
maturity of the Bonds in the fa<..-e amounts set forth on Schedule A hereto, the total of which
represents 100% of the principal amount of such Bonds. If, however, the aggregate principal
amount of any maturity exceeds $150 million. one certiflcate will be issued with resix>ct to each
$150 million of principal amount and an additional certiflcate will be issued with respect to any
remaining principal amount. Each $150 million Bond certificate shall bear the following legend:
Unless this certiflcate is presented by an authorized representative of The Depository Trust
Company. a New York corporation ("DTc·t to Issuer or its agent for registration of transfer.
exchange, or payment, and any certificate issued is registered in the name of Cede & Co. or in
such other name as is requested by an authorized representative of DTC (and any pll}'ment is
made to Cede & Co. or to such other entity as is requested by an authorized representative of
DTC), ANY TRANSFER. PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSO~ IS WRONGFUL inasmuch as the registered
owner hereof, Cede & Co., has an interest herein.
2. In the event of any solicitation of consents from or voting by holders of the Bonds, Issuer or
Agent shall est-ablish a record date for such purposes (with no provision for revocation of consents or
votes by subsequent holders) and shall, to the extent possible, send notice of such record date to
DTC not less than 15 calendar days in am 11.11«" of such record date.
3. In the event of a full or partial redemption or an advance refunding of part of the outstanding
Bonds, Issuer or Agent shall send a notice to DTC specifying: (a) the amount of the redemption or
refunding; (b) in the case of a refunding, the maturity date(s) established under the refunding; and
(c) the date such notice is to be mailed to beneficial owners or published (the MPublication Date").
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 assure that such notice is in DTC's
possession no later than the close of business on the business day before the Publication Date.
Issuer or Agent shall foiward such notice either In a separate secure transmission for each CUSIP
number or in a secure transmission for multiple CUSIP numbers (if applicable) which includes a
manifest or list of each CU SIP submitted In that transmission. (The party sending such notice shall
have a method to verify subsequently the use of such means and the timeliness of such notice.) The
Publication Date shall be not less than 30 daJ'S nor more than 60 dll}''S prior to the redemption date
or, in the case of an advance refunding, the date that the proceeds are deposited in escrovv.
4.. In the event of an invitation to tender the Bonds, notice by Issuer or Agent to Bondholders
specifying the tenns of the tender and the Publication Date of such notice shall be sent to DTC by a
secure means in the manner set forth in the preceding Paragraph.
5. All notices and payment advices sent to DTC shall contain the CUSIP number of the Bonds.
6. Notices to DTC pursuant to Paragraph 2 by telecopy shall be sent to DTC's Reorganization
Department at (212) 709-6896 or (212} 709-6897, and receipt of such notices shall be
confirmed by telephoning (212) 709-6870. Notices to DTC pursuant to Paragraph 2 by mai1 or by
any other means shall be sent to:
Supervisor; Proxy
Reorgani7.ation Department
The Depository Trust Company
7 Hanover Square; 23rd Floor
New York, NY 10004-2695
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7. ~oti<..'<>s to DTC pursuant to Par.igmph 3 by tl'!(•mpy shall ht• sent to DTCs Cull ~otifk-alion
Dt-partment at (516l 227-U64 or (516) 22i--ll90. lftlw party sending the notkc does not re<..-cive a
tdetopy re<..-eipt frrnn OTC confinning that the noti<..-e has been n><..'t'ived. such party shall telephone
(516) 22i-4070. ~oti<..-es to OTC pursuant to Parngmph 3 by mail or by any other means shall be
sent to:
Call Notification Department
TI1e Depository Trust Company
ill Stewart Avenue
Garden City, NY 11530-4719
8. Notices to OTC pursuant to Paragraph 4 and notkes of other actions (including mandatory
tenders. exchanges. and capital changes) by telecopy shall he sent to DTC's Reorganization
Department at (2121709-1093 or (212) 709-1094. and ra-eipt of such notk-es shall be con.finned by
telephoning (212) 709-6884. Notices to OTC pursuant to the above by mail or by any other means
shall be sent to:
Manager; Reorganization Department
Reorganization Window
The Depository Trust Company
i Hanover Square; 23rd Floor
~ew York, NY 10004-2695
9. Transactions in the Bonds shall be eligible for next-day funds settlement in DTC's Xext-Day
Funds Settlement ("XDFS") system.
A. Interest pa~ments shall be received by Cede & Co .. as nominee of OTC, or its registered
assigns in ne:1.t-day funds on each pa1ment date (or the equivalent in accordance with
existing arrangements between Issuer or Agent and OTC). Such payments shall be made
payable to the order of Cede & Co. Absent any other existing arrangements such
pa)ments shall be addressed as follows:
Manager; Cash Receipts
DMdend Department
The Depository Trust Company
i Hanover Square; 24th Floor
New York. NY 10004-269.5
B. Principal pa~ments shall be received by Cede & Co., as nominee of DTC, or its registered
assigns in next-day funds on each pa:ment date (or the equiV'dlent in accordance ~1th
existing arrangements between Issuer or Agent and DTC). Such payments sha11 be made
payable to the order of Cede & Co., and shall be addressed as follows:
NDFS Redemption Department
The Depository Trust Company
5.5 Water Street; 50th Floor
New York, NY 10041-0099
10, DTC may direct Issuer or Agent to use any other telephone number or address as the
number or address to which notices or pa)ments of interest or pr:incipa) may be sent.
l 1. In the event of a redemption, acceleration, or any other similar transaction (e.g., tender made
and accepted in response to Issuer's or Agents ln\eitation) necessitating a reduction in the aggregate
principal amount of Bonds outstanding or an advance refunding of part of the Bonds outstanding,
DTC, in its discretion: (a) may request Issuer or Agent to issue and authenticate a new Bond
certificate, or (b) may make an appropriate notation on the Bond certificate indicating the date and
amount of such reduction In principal except in the case of final maturity, in which case the
certiBcate will be presented to Issuer or Agent prior to pa)ment if required.
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12. In die en·nt tl1at Issuer detennines tliat beneficial 0\1.1\t'.-s of Bonds shall be able lo obtain
t-crtifkated Bon&~. Issuer or Agent shall notify DTC of the a\1tilability of Bond certificates. In such
en,nt, Issuer or Agent shall issue, tmnsfer, and exchange Bond l.'l'rtifleates in appropriate amounts,
as required by DTC and others.
13. DTC may discontinue providing its se1>ices as seeurities depository with respect to the
Bond~ at any time by gh,ing reasonable notice to Issuer or Agent (at which time DTC will confirm
with Issuer or Agent the aggregate principal amount of Bonds outstanding). Under such
circumstances, at DTC's request Issuer and Agent shall cooperate fully with DTC by taking
appropriate action to make available one or more separate certilk·.ates evidencing Bonds to any
DTC Partidpant ha1;ing Bonds credited to its DTC accounts.
14. Nothing herein shall be deemed to require Agent to am 'l.lllc:e funds on behalf of Issuer.
~
A. If there is an Agent (as defined In this Letter o
Representations), Agent us weO as Issuer must sil!_!l this
ktter. If there is oo Agent, In signing this Letter Is.suer
iGelf undertakes to 1ierfonn all of the ~ set forth
henc-in.
B. t: nder Rules of the MIJ!llcipul Sea.trities Rulemaking
Bo.ird re~ to -~ delivel).-, a municipal saurities
rbler must he able to determine the date Iha! a rmc.e of a
~ Cllll or of illl ad,.»n<.t.> refundin£ of a pwt cl 1111 is.sue is published (the ·publicntion date")."The esmblishment of
iudi a publical:kin date is ..!dressexl in Puragmph '3 of the
l..etter.
C. Schedule B contains statements that OTC belie1:es
ocuirJ!eh: describe OTC. the method cf eff~'!in!!; book·
en~· tr.imfm of sm.uities distributed thiuigh DTC. and
(-ertlin re bed matters.
Recei\ -eel and Accepted:
THE DEPOSITORY TRUST COMPA~Y
a;gz1;<~
tt: Und,•twrner
Un&-rwritri, Cou"""I
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SQHEDULEA
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Principal Interest
QUSIP Am2unt Maturity Date Rate
549186X90 $635,000 February 15, 1993 6.75%
549186Y24 635,000 February 15, 1994 6.75%
549186Y32 640,000 February 15, 1995 6.75%
649186Y40 640,000 February 15, 1996 6.75%
549186Y57 640,000 February 15, 1997 6.30%
549186Y65 475,000 February 15, 1998 4.75%
549186Y73 475,000 February 15, 1999 4.75%
549186Y81 475,000 February 15, 2000 4.90%
549186Y99 475,000 February 15, 2001 5.00%
549186Z23 475,000 February 15, 2002 5.20%
549186Z31 200,000 February 15, 2003 5.375%
549186Z49 200,000 February 15, 2004 5.40%
549186Z66 200,000 February 15, 2005 5.50%
549186Z64 200,000 February 15, 2006 5.60%
549186Z72 200,000 February 15, 2007 5.70%
549186Z80 200,000 February 15, 2008 5.80%
549186Z98 200,000 February 15, 2009 5.80%
5491862Al 200,000 February 15, 2010 4.75%
5491862B9 200,000 February 15, 2011 4.75%
549186207 200,000 February 15, 2012 4.75%
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SAMPLE OFFICIAL STATEMENT LANGUAGE
DESCRIBING BOOK-ENTRY-ONLY ISSUANCE
SCHEDULES
(Prepared by DTC--bracketed material may be applicable only to certain issues}
1. Toe Deposito,y Trust Company ("DTC"J, New Yori<, NY, will act as securities deposit01y for the securities (the
•Securities;. The Sec1dies will 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 wiQ be deposited with OTC. (If, however, the aggregate principal
amount of [any) issue exceeds $150 minion, one certificate will be issued with respect to each $150 minion of principal
amount and an additional certificate will be issued with respect to any remaining principal amount of such issue.) .
2. OTC is a Umited-purpose trust company organized under the New York Banking Law. a "banking organization"
within the meaning of the New Yorl<: Banking Law. a member of the Federal Reserve System. a "clearing corporation"
within the meaning of the New Yori< Uniform Commercial Code, and a "clearing agency" registered pursuant to the
provisions of Section 17A of the Securities Exchange Act of 1934. OTC holds securities that its participants
("Participants") deposit with OTC. OTC also facmtates 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. OTC is owned by a number of its Direct Participants and by the New Yori< Stock Exchange, Inc., the
American Stock Exchange, Inc., and the Na1ional Association of Securities Dealers, Inc. Access to the OTC 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 OTC and its Participants are on file with the Securities and Exchange Commission.
3. Purchases of Securities under the OTC system must be made by or through Direct Participants, which will
receive a credit for the Securities on DTC's records. The ownership interest of each actual purchaser of each Security
("Beneficial Owner") iS in tum to be recorded on the Direct and Indirect Participants' records. Beneficial O!Nners 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 wtlich the Beneficial Owner entered into the transacoon. Transfers of ownership inlerests
in the Securities are to be accompished 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 Securities, except in
the event that usa of the book •entry system for the Securities is discontinued.
4. To facifitate subsequent transfers, all Securities deposited by Participants with DTC are registered n the name of
OTC'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. OTC has no knowledge of the actual Beneficial Owners of the
Securities; OTC's records reflect only the identity of the Direct Participants to whose accounts such Securities are
credited, which may or may not be the Beneftcial Owners. The Participants will remain responS1ble for keeping
account of their holdings on behalf of their customers.
5. Conveyance of notices and other communications by OTC to Direct Participants, by Direct Participants to
Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by
arrangements amorg them. subject to any statut01y or regulatory requirements as may be in effect from time to time.
(6. Redemption notices shall be sent to Cede & Co. H less than all of the Securities within an issue ere being
redeemed, OTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to
be redeemed.)
7. Neither OTC nor Cede & Co. will consent or vote with respect to Securities. Under its usual procedures, OTC
mails an Omnibus Proxy to the Issuer 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 Securities are credited on the
record date (Identified in a Rsting attached to the Omnibus Proxy).
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8. Principal and interest payments on the Securities will be made to OTC. DTC's practice is to credit Direct
Participants' accounts on payable date in accordance with their respective holdings shown on OTC's records unless
OTC 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 register&:1 in ·street name,· and will be the respcnsibility of such Participant
and not of OTC, the Agent. or the Issuer. subject to any statutory or regulatory requirements as may be in effect from
time to time. Payment of principal and interest to OTC is the responsibility of the Issuer or the Agent. disbursement of
such payments to Direct Participants shall be the responsibility of OTC. and disbursement of such payments to the
Beneficial Owners shall be the responsibility of Direct and Indirect Participants.
[9. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its
Participant, to the rrender/Remarketing] Agent, and shall effect delivery of such Securities by causing the Direct
Participant to transfer the Participant's interest in the Securities. on DTC's records, to the rreooer/Remarketing] Agent.
The requirement for physical delivery of Securities in connection with a demand for purchase or a mandatory
purchase will be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on
OTC's records.]
10. OTC may discontinue providing tts services as securities depositOI)' with respect to the Securities at arr; time
by giving reasonable notice to the Issuer or the Agent. Under such circumstances, in the 8118nt 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 book-entry transfers through OTC {or a successor
securities depos~ory). In that event. Security certificates will be printed and delivered.
12. The informaticin in this section concerning OTC and DTC's book-entry system has been obtained from sources
that the Issuer believes to be reliable. but the Issuer takes no responsibility for the accuracy thereof.
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GENERAL CERTIFICATE
THE STATE OF TEXAS §
§
COUNTY OF LUBBOCK §
§
CITY OF LUBBOCK §
WE, the undersigned, Mayor and City Secretary, respectively,
of the City of Lubbock, Texas, DO HEREBY CERTIFY as follows:
1. Relative to Tax-Supported Indebtedness.
That the total principal amount of indebtedness of the city,
including the proposed $7,565,000 "City of Lubbock, Texas, Tax and
waterworks system (Limited Pledge) Revenue Certificates of
Obligation, Series 1992," dated August 15, 1992, payable from ad
valorem taxes levied and collected by the City is as follows:
OUTSTANDING INDEBTEDNESS--------------$124,303,752
SERIES 1992 WATERWORKS CERTIFICATES ---7.565.000
TOTAL INDEBTEDNESS---------------$131,868,752
2. Relative to Debt Service Requirements.
That a debt service requirement schedule for the City's
above-described outstanding indebtedness as well as the proposed
$7,565,000 "City of Lubbock, Texas, Tax and Waterworks System
(Limited Pledge) Revenue Certificates of Obligation, Series 1992,"
dated August 15, 1992, is attached hereto as Exhibit A and made a
part of this certificate for all purposes.
3. Relative to city Officials.
That certain duly qualified and acting officers of said City
are as follows:
DAVID R. LANGSTON
RANETTE BOYD
LARRY J. CUNNINGHAM
J. ROBERT MASSENGALE
MAYOR
CITY SECRETARY
CITY MANAGER
ASSISTANT CITY MANAGER
FOR FINANCIAL SERVICES -
CITY TREASURER
4. Relative to Incorporation.
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;
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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 January 18, 1992. A true and correct copy of
the proceedings calling and canvassing such election, together with
the charter amendments, is attached hereto as Exhibit B.
5. Relative to Taxable Values.
That the assessed value of all taxable property (net of
exemptions) in the City, as shown by the tax rolls for the year
1991, 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-----------$4,467,519,371
6. Relative to Nonencumbrance.
save and except for the pledge of the income and revenues of
the City's Waterworks System to the payment of (i) principal and
interest to become due with respect to the proposed City of
Lubbock, Texas, Tax and Waterworks System (Limited Pledge) Revenue
certificates of Obligation, Series 1992, dated August 15, 1992,
(ii) city of Lubbock, Texas, Tax and Waterworks System Subordinate
Lien Revenue Certificates of Obligation, series 1991, dated May 15,
1991, and (iii) a contract with the Canadian River Municipal Water
Authority, said income and revenues of said System have not been
pledged or hypothecated in any other manner or for any other
purpose; and the above obligations and contracts evidence the only
liens, encumbrances or indebtedness of said System or against the
income and revenues of such System.
7. Relative to Income and Revenues.
The following is a schedule of the gross receipts, operating
expenses and net revenues of the City's Waterworks System for the
years stated:
Fiscal Year Gross Operating Net
EiD~imI ~-:rn Receipts Expenses Revenues
1987 $14,516,185 $ 9,863,218 $ 4,652,967
1988 16,360,138 9,494,108 6,866,030
1989 17,286,235 9,758,878 7,527,357
1990 21,549,032 11,310,532 10,238,500
1991 25,871,885 14,592,700 11,279,185
8. Relative to Utility f;i;:~erties 1
The water utility properties owned, operated and maintained
by the City currently provides water services to approximately
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62,119 inhabitants of the City. The City secures its water from
the Canadian Municipal Water Authority pursuant to contracts for the purchase of untreated water in addition to City-owned wells.
As of the date hereof, no question is pending and no
proceedings of any nature have been instituted in any manner
questioning the City's right and title to its utility properties or
its authority to operate the same.
9. Relative to Rates and Charges.
The current monthly rates and charges for services provided
by the city's waterworks System are as follows:
WATER RATES
First 1,000 gallons (minimum)
Next 49,000 gallons (per thousand)
Next 200,000 gallons (per thousand) All over 250,000 gallons (per thousand)
10. Relative to No Petition.
$ 7.31
$ 1.53
$ 1.37
$ 1.31
That no petition of any kind or character has been filed with
the Mayor, City Secretary or any other official of the City
protesting the issuance of the proposed "City of Lubbock, Texas Tax
and Waterworks System (Limited Pledge) Revenue Certificates of
Obligation, Series 1992".
11. Relative to Interest Earnings.
That interest earnings on proceeds from the sale of $7,565, 000
"City of Lubbock, Texas, Tax and Waterworks system (Limited Pledge)
Revenue Certificates of Obligation, Series 1992" will be deposited
to the Certificate Fund established by the ordinance authorizing
the issuance of the obligations, save and except during the time of
construction of improvements and extensions being financed by such
obligations, such interest earnings, upon approval of the governing
body of the City, will be used for the construction of improvements
and extensions for which such obligations are being issued.
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WITNESS OUR HANDS AND
this the 14th day of August
(City Seal)
-4-
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) ) } ) ) ) ') l Debt S!rrict, Reqal. rmmb Fiacal Yeor Endi111 9-ll! 1992 1993 1994 1995 1996 1!197 1!198 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 ClfflJ!al!l!inl D!!!l Ol I!!!~ticatet"' Combined f!incil!!I ll!f!ln!I 1114111 fl:!nciJ!!I _Jnten!I D!!!I ReauimneD11 $ 8,675,000"' $ 7,173,934 $ 15,848,934 $ $ s $ U,848,934 3,300,000 8,341,763 Ul,641,763 635,000 4S2,ffl 1,087,971 17,729,735 3,380,000 6,1177,210 15,257,210 63S,OOO 413,284 1,048,2114 16,30:5,494 9,630,000 6,229,749 IS,1159,749 640,000 373,"'40 1,013,440 16,873,189 9,670,000 S,S92,436 15,262,486 640,000 333,"'40 973,440 16,23S,926 9,374,434 S,161,817 14,536,251 640,000 293,"'40 933,440 U,469,691 9,270,076 4,603,747 13,873,823 475,000 2!18,596 733,596 14,607,419 9,~.493 4,044,171 13,090,664 475,000 228,908 703,908 13,794,572 6,524,986 S,504,942 12,029,928 475,000 199,220 674,220 12,704,148 6,134,442 4,662,221 10,796,663 475,000 169,532 644,532 11,441,19$ 5,718,639 3,630,595 9,349,234 475,000 139,844 614,1144 9,964,071 5,539,682 2,&30,103 8,369,785 200,000 118,750 318,750 8,6118,.535 4,SIS,000 2,041,752 6,556,752 200,000 Ul\S,250 306,2!10 6,863,002. 4,515,000 1,757,964 6,272,964 200,000 93,750 293,750 6,566,714 4,520,000 1,477,326 S,ffl,326 200,000 81,250 281,250 6,278,576 4,520,000 1,197,704 5,717,704 200,000 68,750 268,750 S,986,454 3,875,000 943,404 4,818,404 200,000 56,250 256,250 5,074,654 3,540,000 727,914 4,267,914 200,000 43,750 243,750 4,511,664 2,975,000 '42,738 3,517,738 200,000 31,250 231,250 3,748,988 2,9B0,000 374,376 3.354,376 200,000 18,750 2Ul,750 3,573,126 1,81',000 240,213 2,0SS,213 200,000 6,250 206,250 2,261,463 1,730,000 142,ru 1,m,ru 1,812.,72!1 l,i2il,!ll!! 4Z,m 1.m,m 1.m.~15 S 132,278,752 s 74.146.429 I 207,1;25.uu s 7.m,999 S 3.487.676 $ 11.0S:21676 S j21811'n1857 ffflemt 0ft dM Certifieatet hat been <11lc11laled •t 6.2!1 f, for pufl")Nl of ilklllrotion. (I) Jncludct $1,655,000 1991 Scwcr S)'"tffll C..rtilicale• :md $34,520,000 1992 Sewer s, .... m C.rtlftcatet <-"Velualion, Eumptiolll and DelK Obliptiono" and "Stalt Revolvin, Fund ("SRF") Loan l'rugNm"). (2) Thie $8,675,000principal l"'i4 oo Febnmy IS, 199:2. (l) $4,000,000 principl amcum of the Certifi•-will be tmlled by the City II lknef111 Purpooo 0-rol Ob)igllffllll Debi willt the proceeclt 10 be u!td for lm,hcqultilioo 111d site impl<)Yememain connectioo with C<>mlruc:ionoh Tent Deport-of Criminal JUS!ieo Comctioool Psychiatric Facility. Tho N>meining S3,S6S,000princip.el amoum of lhe Oortifie,iie. ia being iUIMNI for Soli4 Walle Di,poul S)"lem ~Ill• ond will be tnllted by lhe C'ety H Mlf...,pportin1 Soli4 Wallo Di,poul S7s1em Genenl Obligotion Debi; due lo 1he ""Jlfftod lifo oflheoo ;,,,,..,..._, dM City hu 111igned lhc $3,565,000prineipal a maturity of$43S,000eech :,e,.r 1993 ud 1994, U<IO,OOOueh y-1995 lhroush 1997 alld $275,000 each y,,ar 1998 lhn,ugh 1002. The $4,000,0000.nenl Purpooe principal lru been aniped a melllrity ofS200,000-" year 1993 lluoogl: 2012. Thue •lklcalion, have been inc~ in the ca!oulation of "Dlvioi01t of Debi Service luquiremer111•. following. ) ) 33.59\11\ 64.10'5 32.66!, ~ ~ 1:11 ~ -:::t: 96.10,. ~ Cl ,, =i ; 100.00f, i .:JI>,
No Text
-
EXECUl'lVE J)IVISION
P .0. Box 12697
Amtin, Te.w 78711-26117 .,.., (512) 463-5101
ELECTIONS DIVISION
P.O. Box 12060
Amtln, Tcxu 78711-2060
(512) 463-5650
Disclosun: Filings
t"' P.O. Boll 12070
Austin, Tc:ta1 78711-2070
(512} 463-5704
DATA SERVICES
DIVISION
P.O. Bal 12887 Amtln, Tau 71711-:!887 ,... (S 12) 463-5609
SUPPORT SERVICES
DIVISION
Fmancial Management
P.O. Box 12887
Austin, Texas 78711-28117
(S12) 463-5600 ,,...
Staff SclYiccs
P.O. Box 12887
Amlin, Texu 78711-2R87
(512) 463-5600
STATUTORY FILINGS
DIVISION
I"'-Corpond.om
P.O. Bol: 13697
Austin, Texas 78711-3697
(512} 463-Sill
S1411110,y Document.I
P.O. Bm 12887
Aorun, Texas 78711-2887 ,.. (512) 463-5654
Texas Register
P.O. Box 13824
Austin, Texas 78711-3824
(512) 463-5561
Uniform Cm,merclal Code ,... P.O. Bo,i; 13193
Austin, Texas 78711·3193
(S 12) 475-270!1
EXHIBIT B 1
Office of thi,
SECRETARY OF STATE
John Hannah, Jr.
SECRETARY OF STATE
February 19, 1992
Ms. Ranette Boyd, CMC/AAE
City Secretary
City of Lubbock
P.O. Box 2000
Lubbock, Texas 79457
RE: Amendment -Lubbock
Dear Ms. Boyd:
This is to inform you that your documents were filed
in this office on February 19, 1992.
These documents were recorded in .Book 471 pages 61 -
75 in the Book of City Charters and Amendments,
Sincerely,
~~
Director
Statutory Documents
ST/ls
No Text
""·
, ....
CERTIFICATE OF CHARTER AMENDMENT
THE STATE OF TEXAS
COUNTY OF LUBBOCK
-CITY OF LUBBOCK
§
§
§
I, the undersigned, Mayor of the City of Lubbock, Texas, DO HEREBY
. CERTIFY that the attached are authenticated copies of:
1. The ordinance providing for the submission of the charter amendment together with the minutes pertaining to the adoption of
such ordinance;
Z. Notice of the charter amendment election as published in a newspaper of general circulation within said City once a week for
two consecutive weeks, the date of the first publication being
fourteen days prior to the date set for the election;
3. The resolution canvassing the returns and declaring the result of
such charter amendment election together with the order declaring
the approved charter amendment to have been adopted.
I DO FURTHER CERTIFY that the charter amendment approved by the voters has been recorded at length upon the records of the City in a separate book by
the city secretary and that no other charter amendments have been passed or
adopted within two years preceding the 18th day of January, 1992.
I DO FURTHER CERTIFY that this certificate of charter amendment is being
forwarded to the secretary of state of the State of Texas pursuant to the
requirements of Section 9.007 of the Local Government Code of the State of
Texas and that this certificate is being made as soon as practicable following
the adoption of such charter amendment.
TO CERTIFY WHICH, witness my hand and seal of said City, this the ___ day of _______ , 1992.
B. c. McMINN, MAYOR
ATTEST:
Ranette Boyd, City Secretary
OOV:da/MI5C-D19/C-Cl!IW1D.DOC
No Text
DGV:da
First Reading
September 26, 1991
Item f/22
Second Reading
October 10, 1991
Item 17
ORDINANCE NO. _.9'-'4-'-79,_____
AN ORDINANCE CALLING FOR SUBMISSION TO THE QUALIFIED VOTERS OF THE
:1 CITY OF LUBBOCK, TEXAS, FOR ADOPTION OR REJECTION, THE FOLLOWING AMENDMENT i: TO THE EXISTING CHARTER OF THE CITY OF LUBBOCK: ,,
!1
ii
"SHALL THE CHARTER OF THE CITY OF LUBBOCK BE AMENDED BY REPEALING AND THUS DELETING THEREFROM CHAPTER 3 PERTAINING TO
THE BOARD OF CITY DEVELOPMENT; INCLUDING PROVISIONS FOR
ESTABLISHING MEMBERSHIP, TERMS OF OFFICE, VACANCIES AND APPOINTMENTS, AND APPROPRIATIONS FOR SUCH BOARD."
MAKING PROVISION FOR CONDUCT OF THE ELECTION ACCORDING TO APPLICABLE PROVI-
i! SIONS OF LAW; PROVIDING FOR NOTICE OF THIS ELECTION BY PUBLICATION OF THIS
ii ORDINANCE; PROVIDING FOR EXECUTION OF AN APPROPRIATE ELECTION ORDER HERE· ,, AFTER; ANO OTHER PROVISIONS INCIDENT AND RELATED TO THE PURPOSES HEREOF; NOW THEREFORE:
i BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1. THAT an election be held the 18th day of January, 1992, " which date is the first authorized uniform election date prescribed by the
Election Code that allows sufficient time to comply with all requirements of law and which occurs on or after the 30th day after the date that this
ordinance is adopted, at which election the following proposition to adopt
or reject amendment to the existing Charter of the City of Lubbock by
voting "FOR" or "AGAINST" the amendment sha 11 be submitted to the qua 1 ifi ed
voters for adoption or rejection:
;
Ii
Ii
11
PROPOSITION NO, _2_
"SHALL THE CHARTER OF THE CITY OF LUBBOCK BE AMENDED BY
REPEALING AND THUS DELETING THEREFROM CHAPTER 3 PERTAINING TO
THE BOARD OF CITY DEVELOPMENT; INCLUDING PROVISIONS FOR ESTABLISHING MEMBERSHIP, TERMS OF OFFICE, VACANCIES AND
APPOINTMENTS, AND APPROPRIATIONS FOR SUCH BOARD.•
II il In the event of approval of such proposition, the fo 11 owing change sha 11 be
1' made to the Charter of the City of Lubbock:
Chapter 3 shall be deleted in its entirety from the Charter of
the City of Lubbock and shall be of no further force or effect.
ii SECTION 2. THAT said election shall be held under the provisions of i! and in accordance with the Charter and ordinances of the City of Lubbock, jl insofar as the same may be app l i cab 1 e and in accordance with the laws of
the State of Texas, and the ballots for said election shall have printed
thereon the proposition as stated in Section 1 of this Ordinance, and such proposition shall appear under the following information for voters:
No Text
"Make a punch hole in the space provided beside the statement
indicating the way you desire to vote."
SECTION 3. THAT notice of this election shall be published in a
newspaper of general circulation published in the community by publication
of this Ordinance in its entirety upon the same day in each of two succes-
sive weeks, with the first publication occurring before the 14th day before
the date of the election. ·
SECTION 4. THAT the said election shall be conducted January 18,
1992, during the hours of 7:00 a.m. to 7:00 p.m. Absentee voting shall be
conducted at the office of the City Secretary during normal working hours
1 and from 8:00 a.m. to 5:00 p.m. on the last Saturday of the absentee voting
period at the Lubbock ~unicipal Building, 1625 13th Street, Lubbock, Texas.
SECTION 5. THAT an electronic voting system, as the term is defined
in the Texas Election Code, shall be utilized in connection with this elec-tion.
SECTION 6. THAT polling places and election officials shall be as is
set forth in an appropriate election order to be executed hereafter by the
Mayor of the City of Lubbock.
SECTION 7. THAT this election shall be held concurrently with an election to determine whether an additional sales and use tax (1/8 cent for
reduction of the City property tax and 3/8 cent for use by an economic
development corporation} shall be adopted within the City of Lubbock.
AND IT IS SO ORDERED.
Passed by the City Council on first reading this 26th day of
1991. September ,
,, Passed by the City Council on Ji \ I ' j second reading this 10th day of / !: ,)1111 ,,,october
'I'' , "Ii!
.: ' 1,•'l i
j 4..'). : ','
' ' ~ ~ I'
\\~1 T·~-' \' . ~, < , ) ; ''
11,,• .. :'~-Rante~
·' .
APPROVED AS TO CONTENT:
&er<;
1991. ----*('_,·~~ 8. C. McMI,MAYOR
Bob Cass, Deputy City Manager
- 2 -
No Text
,.
L
91-50B-667-580
(24.)
91-50B-667-581
(33.)
C ITV OF LUBBOCK
REGULAR CITY COUNCIL MEETING
SEPTEMBER 26. 1991
10:00 A.M.
Hold an Executive Session to discuss pending
litigation regarding Codes Enforcement.
Hold an Executive Session to discuss personnel
matters regarding duties. responsibilities and/or appointments to:
Civic Centers Board
The City Council of the City of Lubbock, Texas met in regular session on
the 26th day of September, 1991 in the City Council Chambers, first
floor, City Hall, 1625 13th Street, Lubbock, Texas at 10:00 A.M.
Present: Mayor B. C. McMinn, Mayor Pro Tern T. J. Patterson, Councilman
Gary Phillips, Councilman Bill Maloy, Councilwoman Joan Baker,
Councilwoman Maggie Trejo, Councilman M. J. Aderton, City Manager Larry J. Cunningham, City Attorney John C. Ross, Jr., and City Secretary
Ranette Boyd.
Mayor McMinn called the meeting to order at 10:00 A.M.
( I.)
( 2,)
( 3.)
( 4.)
91-508-667-582
( 5.)
The Invocation was given by Mark Hindman, Budget and
Research Director.
The Pledge of Allegiance was given in unison by
those in the Council Chambers.
Motion was made by Councilman Aderton, seconded by
Mayor Pro Tern Patterson to approve the Minutes of the September 12, 1991 Regular City Council meeting
as written. · Motion carried: 7 Yeas; 0 Nays.
Board Appointments
Bill Poteet. Chairman of the Chamber of Commerce Events Facility Task Force, will appear to present a
recommendation concerning the Events Facility.
According to Staff memo, on September 17, 1991, the
Chamber of Commerce Events Facility Task Force met
to consider the final report presented by David Petersen, Project Manager of Price Waterhouse.
Bill Poteet, Chairman of the Chamber of Commerce Events Fac11 ity Task Force, appeared to present Task
Force recommendations regarding an events facility
as follow:
1. Recommend construction of a new
events facility to replace the existing facility at some time in the future, and
September 26, 1991 Page·668
2. Recommend expansion of the Civic
Center to include an exhibit hall
with a minimum of 40,000 square feet
plus 10,000-20,000 square feet of
meeting room space, including
additional kitchen facilities, storage and office area. ·
Mr. Poteet stated that the Committee recommended
that the Municipal Coliseum be improved to ensure
the health and safety of the users but that
enhancements should not be considered. The Committee also concluded that decisions such as the
number of seats or the square footage of the arena floor, actual time for construction, and financing
methods for construction of the events facility
should be made by the City Council.
Councilman Aderton commented that he had received
calls and complaints from constituents regarding the possibility of the Coliseum being torn down and that
he opposed destruction of this facility. He stated
his opinion that it could be refurbished to accommodate as many as 9,000 people and recalled
that when it was a new structure it was used to its full capacity. Councilman Aderton stated that it
could be made comfortable so that it could be
occupied by the public year-round, and that it would be to the City's advantage to maintain the building.
'
· Councilman Aderton advised further that if the City must dispose of the Coliseum, that it should be
given to Tech if they would accept it, but expressed r· again that the structure is worth saving if only to
save the expense of replacing it. Mr. Aderton
stated that he favors the all sports arena at a
later date but is opposed to considering it at the present time.
Councilwoman Trejo stated that the only action
Council was taking at this meeting was to accept the report of the Task Force and expressed her opinion
that before a final decision is made about whether or not to build an all sports facility, it should be
taken to a vote of the people.
Mayor McMinn agreed and stated that the Task Force discussed and agreed that the appropriate thing to
do would be to call for a vote on the issue. Mayor
McMinn went on to say that at the time of such an
election, Council would have in place a
recommendation for financing the facility.
Mayor McMinn commented further that the Task Force
was not recommending destruction of the Coliseum,
but rather recommended that only minimal repairs be made to ensure the health, safety and welfare of
those using the facility and that it not be air [
conditioned or refurbished further. __
Motion was made by Councilman Maloy, seconded by Councilwoman Baker to accept report of the Chamber
of Commerce Events Facility Task Force as submitted.
Motion carried: 7 Yeas; 0 Nays.
f
91-SOB-669-583 . ( 6.)
September 26, 1991
Page 669
ORDINANCE #9475--Adopting Martin Luther King, Jr. Day as an Official City Holiday.
ORDINANCE #9475
AN ORDINANCE AMENDING CHAPTER 2 OF THE CODE OF ORDINANCES OF THE CITY OF LUBBOCK, TEXAS, BY AMENDING SECTION 2-6 THEREOF WHICH PROVIDES FOR HOLIDAYS FOR CITY EMPLOYEES.
91-508-669-584 ( 7.)
Motion was made by Mayor Pro Tern Patterson, seconded by Councilman Maloy to pass on second and final
reading Ordinance #9475. Motion carried: 7 Yeas; o
Nays.
ORDINANCE #9476--Abandoning and closing a
Transformer Pad Easement located jn Section 15, Block E-2 (8301 Vicksburg).
ORDINANCE #9476
AN ORDINANCE ABANDONING AND CLOSING A TRANSFORMER PAD EASEMENT OUT OF SECTION 15, BLOCK E-2, IN THE CITY OF LUBBOCK, LUBBOCK COUNTY, TEXAS, AS MORE PARTICULARLY DESCRIBED HEREINAFTER IN THIS ORDINANCE; DIRECTING
THE CITY ENGINEER TO MARK THE OFFICIAL MAPS OF THE CITY TO REFLECT SAID ABANDONMENT AND CLOSING; PROVIDING A SAVINGS CLAUSE; AND PROVIDING FOR PUBLICATION.
91-SOB-669-585
( 8.)
Motion was made by Mayor Pro Tem Patterson, seconded
by Councilman Maloy to pass on second and final reading Ordinance #9476 as recommended by Staff.
Motion carried: 7 Yeas; 0 Ntys.
ORDINANCE #9477--Amendjng Ordinance #9452 concerning Street and Alley Use Agreement with Southwestern
Bell Telephone Company.
ORDINANCE #9477
AN ORDINANCE AMENDING ORDINANCE NO. 9452 OF THE CITY OF LUBBOCK, TEXAS, WITH REGARD TO THE OPERATION OF A TELECOMMUNICATIONS BUSINESS BY SOUTHWESTERN BELL TELEPHONE COMPANY IN, ALONG, ACROSS, ON, OVER,
THROUGH, ABOVE AND UNDER ALL PUBLIC STREETS, AVENUES, HIGHWAYS, ALLEYS, SIDEWALKS, BRIDGES OR PUBLIC WAYS IN THE CITY OF LUBBOCK BY AMENDING
SECTION 13 OF SAID ORDINANCE, WHICH PERTAINS TO COMPENSATION TO THE CITY; PROVIDING FOR PUBLIC NOTICE OF THIS ORDINANCE; PROVIDING FOR WRITTEN ACCEPTANCE OF THIS ORDINANCE BY SOUTHWESTERN BELL TELEPHONE
COMPANY; AND PROVIDING FOR AN EFFECTIVE DATE.
Motion was made by Mayor Pro Tem Patterson, seconded by Councilman Maloy to pass on second and final reading Ordinance #9477 as recommended by Staff. Motion carried: 7 Yeas; O Nays.
September 26, 1991 Page 670
91-SOB-670-586
(15.) Consider Resolution #3715 authorizing the Mayor to sjgn a Right-Of-Way Easement located in Section 32, Block A with Energas {Lubbock International
Airport).
RESOLUTION #3715
BE IT RESOLVED BY THE CITY COUNCIL Of THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a
instrument entitled "Gas Line Easement" covering a part of Section 32, Block A, Lubbock, Lubbock County, Texas, unto Energas Company, a
Division of Atmos Energy Cor-poration, attached herewith, which shall be
spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if
fully copied herein in detail.
Passed by the City Council this 26th day of September, 1991.
ATTEST:
Isl Ranette .Boyd
Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
/s/ Ed Bucy Ed Bucy, Right-of-Way Agent
APPROVED AS TO FORM:
/sf J. ·Worth Fullingim
J. Worth Full ingim, Assistant City Attorney
/s/ B. c. McMinn B. C. McMINN, MAYOR
GAS LINE EASEMENT
THE STATE OF TEXAS
COUNTY OF LUBBOCK
§
§
KNOW ALL MEN BY THESE PRESENTS:
THAT, CITY OF LUBBOCK, the undersigned, hereinafter referred to as GRANTOR, for and in consideration of the sum of ONE AND N0/100 DOLLARS
($1.00), and other good and valuable consideration to GRANTOR in hand paid by ENERGAS COMPANY, a Division of Atmos Energy Corporation, hereinafter referred to as GRANTEE, the receipt of which is hereby acknowledged, does hereby GRANT, SELL and CONVEY unto GRANTEE, its
successors and assigns, a right-of-way and easement to lay, maintain,
r·
removal of the then existing line) gas distribution lines and service operate, remove, or replace (either in conjunction with or prior to the l.
laterals, meters, regulators and all necessary appurtenances thereto, -· in, along, under, across, over and through the following described property in Lubbock County, Texas, to-wit:
'
L.
September 26, 1991 Page 671
That certain tract of land out of Section 32, Block A, Lubbock, Lubbock County, Texas. This easement being more
particularly described by metes and bounds as follows:
BEGINNING at a point which bears West a distance of 40.00
feet and North a distance of 556.00 feet from the Southeast corner of Section 32, Block A, Lubbock, Lubbock County, Texas;
THENCE North a distance of 20.00 feet;
THENCE West a distance of 130.00 feet;
THENCE South a distance of 20.00 feet;
THENCE East a distance of 130.00 feet to the PLACE OF BEGINNING.
and this grant shall carry with it the right of GRANTEE to enter upon
said land at all times for the purposes of making improvements and
repairs to said lines, service laterals, meters, regulators, and
appurtenances thereto, with the right of ingress, egress and regress to
the said GRANTEE, its agents, workmen, employees and representatives at
all times and seasons and including the right of removing, repairing, maintaining and reading meters.
All work, maintenance, repair, etc. necessary to be done in
connection with any main and appurtenances thereto which will occupy the right-of-way and easement herein granted shall be done in an approved manner with as little damage to said above described premises as may be
practical considering the nature of any such work, repairs, maintenance, etc., and the main itself shall be buried to a depth at least forty-two
(42) inches below the surface of the ground, unless caliche or rock formations be encountered, in which event it shall be buried at least to
the depth of the top of said caliche or rock formation. GRANTOR may fully use and enjoy said premises, to the extent that the use and enjoyment thereof by Grantor does not hinder, conflict or interfere with
the exercises of the GRANTEE'S rights hereunder and it is agreed that no building, reservoir or structure shall be constructed by·GRANTOR upon,
under or across said right-of-way and easement without GRANTEE'S written
consent.
TO ·HAVE AND TO HOLD the above described rights and easements,
together with any other rights necessary to maintain, operate and keep in service at all times gas distribution mains and all appurtenances
thereto, over and through said above described premises unto the said
GRANTEE, its successors and assigns.
September 26, 1991
Page 672
It is hereby understood that the parties securing this grant in
behalfof the GRANTEE are.without authority to make any covenant or
agreements not herein expressed.
WITNESS THE EXECUTION HEREOF on the 26th day of September, 1991.
ATTEST:
/s/ Ranette Boyd
CITY OF LUBBOCK
BY: /s/ B. C. McMinn B. C. McMINN, MAYOR
Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
/s/ Ed Bucy Ed Bucy, Right-of-Way Agent
APPROVED AS TO FORM:
/s/ J. Worth Fullingim J. Worth Fullingim, Assistant City Attorney
THE STATE OF TEXAS
COUNTY OF LUBBOCK
§
§
BEFORE ME, the undersigned authority, a Notary .Public in and for
said County, Texas, on this day personally appeared B. C. McMINN, Mayor
of the CITY OF LUBBOCK,.known to-me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he
executed the same for the purposes and consideration therein expressed and in the capacity therein stated as the act and deed of the CITY OF
LUBBOCK.
1991.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this 26th day of September,
/s/ Olivia R. Solis Notary Public in and for the State of Texas
This Resolution authorizes the Mayor to execute a
Right-Of-Way Easement with Energas to cross a portion of City property with a gas line. The
Easement is 20' wide and 130' long and runs eastward from the east side of the Lubbock International
Airport control tower to the north-south County
Road.
[
l
Gas service was requested by the Federal Aviation I Administration to provide a more cost effective . energy source to the tower. Energas is a franchised
utility in the City of Lubbock which enables their
use of streets, alleys, and utility easements.
Since none of these are available, Energas must
cross an unplatted portion of City property under
the use of this Easement.
,·
f·
i I . l.
91-508-673-587
(16.)
Staff recommended approval.
September 26, 1991 Page 673
Motion was made by Mayor Pro Tern Patterson, seconded
by Councilman Aderton to authorize Resolution #3715 as recommended by Staff. Motion carried: 7 Yeas; O Nays.
Consider the closing of completed Community
Development pro.jects and associated ad,iustments to the Contingency Fund.
At the end of each fiscal year the Community
Development projects which have been completed during the previous year are closed and the budget
underruns and overruns are reconciled to the
Contingency Fund.
September 26, 1991
Page 674
According to. Staff memo, the following projects have
been completed during the past year:
Original Expenditures Under Over
Budget As of 5/31/91 Budget Budget
1987
13th YR Arnett
Benson $ 210,000 $ 189,317.29 $ 20,682.71
1988
14th YR Arnett
Benson 138,800 121,307.81 17,492.19
14th YR Onstte Red. 75,000 62,262.69 12,737.31
CD-Homestead Prop Mgt 10,000 9,299.79 700.21
CO-Parkway Ctr/Bldg. 113,000 113,000.00 .00
TR-Signal Upgrade/
Univ & Auburn 35,000 29,191.33 5,808.67
PR-Carlisle Annex
Park Development 67,000 68,835.29 (1,835.29)
1989
15th YR Resident Reh 600,000 595,297.11 4,702.89
15th YR Arnett Benson 138,800 132,010.34 6,789.66
15th YR Onsite Redev. 75,000 70,586.41 4,413.59
PR-Burns Playground 17,400 12,180.98 5,219.02 PR-Hodges Ballfield 28,500 28,376.27 123.73
PR-Mackenzie Park/
Park Lighting 92,600 68,564.21 24,035.79
PR-Park lighting/Hood
Simmons Guad. 40,120 32,151.40 7,968.60
CD-M.C. Overton Park
Expansion/II 245,503 140,881.56 104,621.44
CD-Sidewalks/AB 60,000 51,421.36 8,578.64
CD-New Directions 20,000 16,725.38 3,274.62
CO-Fair Housing
Analysis 5,000 3,896.00 1,104.00
EN-Franklin Estates 41,000 31.364 .60 9,635.40
PR-Helen Hodges
lighting 40,000 29,358.00 10,642.00
EN-Chapel Hill
Paving/Bates 34,000 26,978.61 7.021.39
1990
PR-Ballfield Bleacher
Replacement 26,500 25,059.22 1,440.78
PR-Butler/Outreach Prg 16,300 18,920.37 (2,620.37)
PR-Carlisle Park Dev./
Phase II 34,000 27,482.11 6,517.89
PR-Summer Recrea. Prg. 17,000 22,478.27 (5,478.27)
PR-Summer Recrea. Prg.
Phase II 20,600 10,442.26 10,157.74
CE-Cone. Code Enf. 191,393 178,983.53 12,409.47
CD-Sidewalks/AB 51,000 35,601.84 15,398.16
CD-Pai~t-Up Program 25,000 44,468.76 (19,468.76)
CD-Indirect Cost 100,000 116,999.66 (16,999.66)
CO-Planning Documents 4,000 4,188.13 (188.13)
CO-Parkway Ctr/Bldg.
Phase II 25,000 25,000.00
CD-Project Helping Hands 225,000 225,929.82 (929.82)
CD-Homes Security/Eld. 30,000 20,599.48 9,400.52
CD-Administration 172,000 169,798.05 2,201.95
CD-Field Services 253,000 245,374.49 7,625.51
3,004,332.42 320,703.88 273,183.58 (47,520.30)
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91-50B-675-588
(17.)
September 26, 1991
Page 675
Budget underruns are primarily because of
competitive bidding on park lighting projects and
the M.C. Overton Park acquisition and relocation project due to the following:
1.
2.
In-house construction of two
projects by the Parks and Recreation
Department.
Equipment purchases through the City
of Lubbock Central Warehouse.
3. Use of existing light poles to mount new lighting fixtures rather than
installing new poles.
4. The use of several items (i.e ••
locks. latches, •••• ) in the Parks and Recreation Department's existing inventory.
This reflects a total savings of approximately
$25,000. In addition, the M.C. Overton Park
expansion was under budget by $104,000 due to
relocation assistance payments.
The primary overrun was in the area of indirect cost
which reflects a payment of 100% of the allowable
cost to the City of Lubbock for services.
Additionally, there was a major overrun of $19,000
1n the Paint-Up Program due to an increase of over
50% in the participation of last year's program.
The closing of these accounts will increase the Contingency Fund Budget from $190,001.67 to
$463,185.25.
Staff recommended approval.
Motion was made by Mayor Pro Tern Patterson, seconded
by Councilman Maloy to authorize closing of completed Community Development projects and
associated adjustments to the Contingency Fund as
recommended by Staff. Motion carried: 7 Yeas; 0
Nays.
Consider the price and conditions of sale of Parcel Numbers 33500-17-150 and 33500-17-160 at 1104-06 2nd Place in the Guadalupe Urban Renewal Area.
This is a routine sale of property by the Urban Renewal Agency to Spectrum Construction, Inc., Gary Patton, President, for $600 (@ $300 per lot}. This
property is properly zoned and will be redeveloped
as a single-family residence. The proposed sale is according to the Marketing Plan for the Guadalupe
Area adopted by the Urban Renewal Board of
Commissioners on October 17, 1989, Staff recommended approval.
Motion was made by Councilwoman Trejo, seconded by
Mayor Pro Tern Patterson to accept the price and
conditions of sale of Parcel Numbers 33500-17-150
and 33500-17-160 at 1104-1106 2nd Place in the
Guadalupe Urban Renewal Area as recommended by Staff. Motion carried: 7 Yeas; 0 Nays.
September 26, 1991
Page 676
91-50B-676;.589
(18.) Consider Resolution #3716 authorizing the Mayor to
execute a Termination Agreement with Ackerley Airport Advertising. ·
RESOLUTION #3716
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized
and directed to execute for and on behalf of the City of Lubbock an
Agreement with Ackerley Airport Advertising, Inc. for an early
termination of the Agreement for Professional Services Display
Advertising between the City and Ackerley. Said Agreement is attached
hereto and incorporated in this Resolution as if fully set forth herein
and shall be included in the minutes of the Council.
Passed by the City Council this 26th day of September, 1991.
ATTEST:
/s/ Ranette Boyd Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
Isl Bern E. case Bern E. Case, Director of Aviation
APPROVED AS TO FORM:
/s/ Linda L. Chamales
Linda L. Chama1es, Assistant City Attorney
/s/ B. C. McMinn B. C. McMINN, MAYOR
SERVICES DISPLAY ADVERTISING TERMINATION AGREEMENT
This Agreement is made between the City of Lubbock, a municipal corporation in the State of Texas (hereinafter called "City"} and
Ackerley Airport Advertising, Inc., a corporation authorized to do business in the State of Texas (hereinafter called "Ackerley").
WHEREAS, the parties to this Agreement entered into an Agreement for Professional Services Display Advertising on March 27, 1986, which was to terminate March 27, 1992; and
WHEREAS, the parties have mutually agreed to terminate this previous agreement on July 31, 1991.
N.OW THEREFORE, for good and valuable consideration, the parties make the following agreements to facilitate termination of this
Agreement:
I.
City agrees to waive all percentage fees and payments which would
have been due under Section II of the previous agreement from August 1, 1991, to the end of said agreement, March 27, 1992.
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September 26, 1991
Page 677
Ackerley agrees to transfer all airport advertising display equipment to City on August 1, 1991, and to assign to City, all
contracts made and entered into between Ackerley and advertisers for the
renting of advertising facilities in the Terminal Building of Lubbock International Airport, for the balance of the time on such contracts.
8 Airport advertising display equipment" shall be herein defined as
permanent and removable trade fixtures, moveable advertising displays
and personal property used in advertising, with all electrical alterations, modifications, additions, and improvements; and shall
include, but not be limited to, the four units around the baggage claim areas, containing 18 back-lighted cannisters, 4 cannisters on the concourse, one circular display unit, and two phone centers.
Ackerley guarantees that there are no liens on the equipment and
agrees to pay any such liens that may occur that attach before August 1,
1991.
III.
Ackerley agrees to continue to conscientiously solicit and
endeavor to sell national advertisers and advertising agencies on the
use of advertising facilities located in Lubbock International Airport.
Ackerley shall not be considered as an exclusive agent for City for
national advertising.
IV.
City agrees to pay fifteen per cent (15%) of gross revenues
received by City for and from advertising arising from those national advertising accounts solicited by Ackerley for City after August 1,
1991.
•Gross revenues 0 as used herein shall be defined as the amount
billed by invoice for advertising less any advertising agency commission
fees.
September 26, 1991
Page 678
v.
This Agreement constitutes the entire Agreement between Ackerley
and City.
IN WITNESS WHEREOF, Ackerley and City have executed this Agreement
this 26th day of September, 1991.
CITY OF LUBBOCK·
BY:/sl B. C. McMinn B. C. McMINN, MAYOR
ATTEST:
Isl Ranette Boyd Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
/s/ Bern E. Case
Bern E. Case, Director of Aviation
APPROVED AS TO FORM:
/s/ Linda l. Chamales Linda L. Chamales, Assistant City Attorney
ACKERLEY AIRPORT ADVERTISING, INC.
BY:/s/ Ed Petrie Ed Petrie, Vice President
ATTEST:
/s/ Not legible Secretary
Ackerley Airport Advertising requested termination
of their Agreement which is due to expire in March.
1992. They are seeking relief from the minimum payments due under their present Contract and in
return agree to give the Airport the advertising
equipment (valued at $50,000) presently located at Lubbock International Airport. Ackerley agrees to
continue soliciting national accounts in return for
a 15% commission, but LIA will be responsible for soliciting local business. The Airport Board voted
in their August, 1991 meeting to recommended City
Council approval of the Advertising Contract
Termination Agreement.
LIA will immediately begin receiving payments to existing Contracts and since Ackerley was not able
to spend sufficient time soliciting locally, Staff
advised that there is good potential to increase
current billings. The Airport will test various approaches to expanding advertising earnings over
the next 90 days and recommend a permanent arrangement.
Motion was made by Councilwoman Baker, seconded by
Councilman Maloy to authorize Resolution #3716 as
recommended by Staff. Motion carried: 7 Yeas; 0 Nays.
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September 26, 1991 Page 679
91-508-679-590
(19.) Consider a Resolution #3717 authorizing the Mayor to
sign a Contract for construction of a hangar for the
EM....
RESOLUTION #3717
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized
and directed to execute for and on behalf of the City of Lubbock a Lease Agreement with G. Greenstreet, Inc., attached herewith, which shall be
spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if
fully copied herein in detail.
Passed by the City Council this 26th day of September, 1991.
ATTEST:
/s/ Beatrice Cervantes
Beatrice Cervantes, Deputy City Secretary
for Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
/s/ Bern Case
Bern Case, Director of Aviation
APPROVED AS TO FORM:
Isl John C. Ross, Jr. John C. Ross, Jr., City Attorney
Is/ B. C. McMinn B. C. McMINN, MAYOR
STATE OF TEXAS
COUNTY OF LUBBOCK
LEASE AND SUBLEASE AGREEMENT
§
§
This Lease and Sublease Agreement is hereby made and entered into on this the 26th day of September, 1991, by and between the City of
Lubbock and Municipal Corporation, hereinafter called "Lessorn, and G.
Greenstreet, Inc., a Texas corporation, hereinafter called "Lessee."
WHEREAS, Lessor operates the Lubbock International Airport and the adjoining grounds and facilities compatible with such operation; and
WHEREAS, Lessor finds it to be in the public interest and to the
best benefit of the citizens of the City of Lubbock to continue to develop the Lubbock International Airport as a major air transportation
hub; arid
WHEREAS, lessor finds that economic development 1s a vital part of
the ongoing operations of the Lubbock International Airport; and
WHEREAS, Lessor 1s authorized by Section 380.001 of the Local Government Code of the State of Texas and Article 46d-2, V.A.T.S. to undertake programs for economic development; and
WHEREAS, the United States of America (Department of Transportation) has proposed a lease agreement between itself and the
City of Lubbock for the construction of a forty thousand square foot newly constructed hangar to be located at the Lubbock International Airport; and
September 26, 1991
Page 680
WHEREAS, the operation by the United States of America Department
of Transportation of said hangar after construction will create a
minimum of fourteen to twenty new jobs within the City of Lubbock; and
WHEREAS, the operation of the proposed hangar by the United States of America Department of Transportation will facilitate and augment the ~
facilities of the Lubbock International Airport, allowing for growth and
expansion of said Airport; and f
WHEREAS, Lessee has expressed an interest to the City of leasing
from the City certain demised premises hereinafter described for the
purpose of building and constructing the hangar.above mentioned; and
WHEREAS, the City of Lubbock is authorized under Article 380.001
of the Texas Local Government Code to contract with Lessee for the implementation and administration of its economic development programs;
and
WHEREAS, Lessee has reviewed the proposed lease tendered by the United States of America to the City of Lubbock; and
WHEREAS, Lessee has represented to the City of Lubbock that it has the capacity to construct the hangar in accordance with the requirements
as set forth in said proposed lease between the United States of America and the City of Lubbock; and
WHEREAS, the City of Lubbock finds that it is in the best interest of the City to lease certain and demised property located at the Lubbock
International Airport to Lessee for the purposes of constructing the
aforementioned hangar; and
WHEREAS, Lessee has agreed upon completion of the hangar facility to sublease that facility to the City of Lubbock for the use by the City
in accomplishing its economic development goals at the Lubbock
International Airport; NOW THEREFORE:
THE PARTIES DO HEREBY AGREE AS FOLLOWS:
I.
.L.W.f
I.· In consideration of the sum of ONE DOLLAR {$1.00J and the
further consideration to construct a 40,000 square foot hangar at the Lubbock International Airport in accordance with the terms and
specifications as contained in a proposed lease between the United States of America and the City of Lubbock, a copy of which is attached
hereto as Exhibit A and made a part hereof for all purposes, the Lessor hereby demises and leases unto the Lessee and the Lessee hereby takes
from Lessor the demised premises as described in Exhibit B attached
hereto and made a part hereof for all purposes. To have and to hold said premises for the lease term hereinafter set forth on all the terms
and conditions set forth in this lease.
2. The term of this lease shall be for a period of twenty (20) years, which term shall commence on the day of execution of this lease
between Lessor and Lessee. However, there shall be added to such term
the length of time required to construct the hangar facilities herein f .. · contemplated, which additional time shall be determined as set forth in
paragraph II, subparagraph l(a) of this agreement.
· 3. The demised premises shall mean those premises as described and set forth on Exhibit B attached hereto and made a part hereof for
all purposes.
4. Lessee.hereby acknowledges, agrees and represents that it
will undertake the construction of the 40,000 square foot hangar to be
located at the Lubbock International Airport on the demised premises as set forth in Exhibit 8 as soon after the execution of this Lease
Agreement as is practical.
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September 26, 1991
Page.681
5. lessee represents that ft w111 prosecute the construction of
the aforementioned hangar with due diligence. Lessee's proposal calls for a completion date of February 1, 1992; and although that date is
considered reasonable by all parties, Lessee will attempt to meet a January 15, 1992 deadline imposed upon the Lessor by the FAA as
referenced in Exhibit E attached hereto and made a part hereof for all
purposes.
6. .lessee acknowledges that time is of th~ essence of this contract, which fact has been specifically called to the attention of Lessee as a result of the agreement set forth in Exhibit A attached
hereto and made a part hereof.
7. lessee agrees to assume the responsibility of procuring all
necessary architects, engineers, contractors and subcontractors
necessary to construct the facility contemplated by this Lease Agreement.
8. Lessee understands and agrees that the facility to be built by lessee as part of the consideration of this lease Agreement shall be
built to the standards and requirements of the United States of America Department of Transportation as expressed in the proposed Lease
Agreement attached hereto as Exhibit A and made a part hereof for all
purposes, and to this end lessee shall coordinate its construction activities with the appropriate federal agency to ensure that such
facility, upon completion, shall be acceptable to the United States
Government.
9. During the time of the construction of the hangar
aforementioned and until completion of said facility and acknowledgement
by the United States Government that said facility meets the criteria
and specifications of the United States of America Department of
Transportation, the Lessee shall provide the following:
a. Workers' compensation and employer's liability insurance.
b.
c.
d.
Owner's protective or contingent public liability insurance
naming the City of Lubbock as an additional insured and the
amount of such policy shall be as follows:
$ 1,000,000 CSL for bodily injuries, including accidental'
death, to any one person, but limited to
$1,000.000 CSL per occurrence and$ INCLUOEO for property
damage.
The Lessee shall obtain a contractor's protective
(contingent) liability insurance policy. The amount of said
policy shall be as follows:
An amount not less than$ 1,000.000 CSL for bodily injuries,
including accidental death to any one person, but not less
than$ 1,000,000 CSL per occurrence and an.the amount not
less than$ INCLUDED for property damage.
The Lessee shall procure automobile insurance providing coverage as follows:
An amount not less than$ 1,000.000 CSL for injuries, including accidental death to any one person, but not less
than$ 1,000,000 CSL per occurrence and an amount not less
than $ INCLUDED fo_r property damage.
The policies above set forth shall name the Lessor as an additional insured and shall extend coverage to Lessee and all of Lessee's
officers, employees, agents, contractors, subcontractors and other
persons in any way involved in the construction of the hangar hereinabove mentioned.
September 26, 1991
Page 682
10. Lessee shall furnish to lessor Certificates of Insurance
indicating that the above insurance policies have been procured by Lessee and containing a provision that no such policy shall be cancelled
or altered during the construction of the hangar abovement1oned without thirty (30) days notice of said cancellation or alteration being given
to the City of Lubbock.
11. Lessee agrees that it will indemnify and save the Lessor
harmless from all claims growing out of any demands of subcontractors,
laborers, workmen, mechanics, mater1almen and furnishers of machinery and parts thereof, equipment, power tools) all supplies, including
commissary, incurred in the furtherance of the performance of the
construction of the hangar contemplated by this Lease Agreement. When Lessor desires, the Lessee shall furnish satisfactory evidence that all
of the obligations of the nature hereinabove designated have been paid, discharged or waived.
12. lessee agrees that it shall be solely responsible for the demised premises and the construction of the hangar as contemplated by
this lease during the period of construction and prior to an indication
by the United States Government that said hangar has been constructed in
accordance with the criteria and specifications of that proposed Lease
Agreement as attached hereto in Exhibit A. lessee agrees that if said structure is damaged by fire, hail, lightning, floods, tornadoes,
hurricanes or any other natural phenomena, acts of God, or act of Nature, that Lessee shall immediately undertake any and all necessary
repairs. additional construction and any other act necessary to complete the construction of the aforementioned hangar in reasonable accordance
to the time schedule heretofore mentioned in this Lease Agreement.
13. Lessee hereby acknowledges that its agents have read and
reviewed the proposed Lease Agreement attached hereto as Exhibit A and
the letter attached as Exhibit E, and lessee hereby agrees that lessee
will hold the Lessor harmless from any claims, causes of action, demands
or liability made by the United States of America against the City of
Lubbock in the event that Lessee fails to timely perform its obligations
as heretofore set forth in this Lease Agreement.
14. Lessor hereby agrees with lessee that in the event there is
a change effected between the Lessor and the United States of America as to the date of delivery of the hangar between the City of Lubbock and
the United States of America that the Lessor shall hereby automatically extend the lessee's time of completion of the construction of the hangar
by the exact same amount of time extended to Lessor by the United States of America under any changes, alterations or amendments to Exhibit A.
II.
SUBLEASE
1. Upon completion of the construction of the hangar heretofore
mentioned by Lessee and the acknowledgment of the United States of America that said hangar has been constructed in accordance with the
terms, provisions, specifications and requirements of the United States
of America, all as set forth in Exhibit A attached hereto, then in such event, the Lessee does hereby agree to sublease the demised premises
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togethe'r with the hangar constructed thereon to the City of Lubbock
(hereinafter referred to as City) arid the 'City does hereby agree to take l said demised premises in accordance with the following terms and
cond it f ons: --
a. City agrees to sublease from Lessee the demised premises aforementioned for a period of twenty (20) years commencing
from the date of completion of the hangar facilities
abovementioned and acceptance of facilities by the United States of America, which date shall be reduced to writing
between the Lessee and the City of Lubbock and said writing
shall be filed in the office of the City Secretary of the City together with a copy of this Lease Agreement.
b.
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September 26, 1991
Page 683
The City does hereby agree to pay to Lessee as consideration for the sublease of this premises the sum of $8,600.00 per month.with such payment being due from the City to Lessee on
the 1st day of each month during' the existence of the term
of this sublease, with the understanding, however, that said
monthly lease payment shall be prorated in the event that the date of acceptance as mentioned in subparagraph (a)
above is less than one full calendar month. In the event
that City does not make the payment due Lessee as required by this subparagraph, then in such event Lessee shall make
written demand upon City allowing City fifteen (15) additional days from receipt of Lessee's demand to make the
appropriate payment. In the event the City fails to make
the payment after notice, as above set forth, then Lessee may require the payment from City of the total amount of
lease payments remaining due under this Sublease.
Upon acceptance as set forth in subparagraph (a) hereof, the
City agrees with Lessee that it shall keep the premises
fully insured as to fire and extended coverage and shall
further insure against liability claims by and through the
City's policy of insurance, a copy of which is attached as
Exhibit D and made a part hereof. The City agrees that
during the term it uses, occupies and leases the facilities
built upon the property described in Exhibit B attached
hereto, City shall hold Lessee harmless from any claim for damages, suits, or causes of action in any way arising out
of the City1 s use of the demised premises or the use of any
person taking possession of said premises by and through the
City, and the City further agrees to defend Lessee from any
such claims, suits, or causes of action made against Lessee
as a result of City's use of said premises or the use of
said premises as made by any party taking the premises under
the City.
Lessee agrees that it shall be responsible for any and all
taxes due against the facilities constructed on the demised
premises as set forth in Exhibit B up to $9,000.00 per year, and City agrees with Lessee that in the event such property
taxes exceed $9,000.00 per year, that City will be
responsible for any taxes due upon the demised premises in
excess of the sum of $9,000.00 per year.
The City agrees with Lessee that City shall be responsible
for all utility costs as a result of the operation of
facilities to be constructed on the demised premises. Lessee agrees with City that Lessee shall warrant the construction of the facilities to be built upon the premises
described in Exhibit B for a period of one year from the
date of acceptance as described in subparagraph (a) of this paragraph. In addition, Lessee agrees that it shall assign
to the City all manufacturers' extended warranties on
mechanical, electrical and hangar doors installed in the facilities to be built upon the premises described in
Exhibit B.
City agrees that it shall be responsible for all maintenance on the building and the mechanical features of the building,
including the electrical hangar doors, after the expiration
of one year as aforesaid in the abovementioned paragraph.
The City and Lessee agree that at the conclusion of any full year of this Sublease Agreement, the City may terminate this
Sublease Agreement as well as the Lease Agreement by the
City paying to Lessee the consideration as set forth in Exhibit C attached hereto and made a part hereof for all
purposes.
September 26, 1991
Page 684
h. In the event the City determines to terminate this Sublease
Agreement and Lease Agreement and complies with the
conditions of Exhibit C attached hereto and made a part
hereof for all purposes, then in such' event, Lessee hereby
agrees to execute in favor of the City any or all necessary documents releasing and waiving or abandoning any claimed
title, right of possession, right of entry or any other like
or similar claim as a result of Lessee's rights under this
lease and Sublease Agreement.
2. Notwithstanding any other provision of this lease or
sublease, at the end of twenty (20) years from the date that the City takes possession and occupies the premises as described in subparagraph
(a) above, all rights, title and interest in and to said property as
described in Exhibit B attached hereto .and made a part hereof, and the
facilities constructed thereon, as to the Lessee shall terminate and the
Lessee shall have no further right, title, interest or claim upon said
demised premises or the facilities constructed thereon and title to the
demised premises and the facilities constructed thereon shall be in the
City of Lubbock.
III.
MISCELLANEOUS
1. It is understood between the parties hereto that Lessee may
assign its interests herein set forth upon written approval of the City.
which approval will not be unreasonably withheld.
2. This Lease and Sublease shall be binding upon the parties hereto and any of their assigns.
3. City may sublease the premises to any party City may select.
4. This agreement has been made in and shall be construed in
accordance with the laws of the State of Texas.
5. This lease and sublease constitute the entire agreement
between the parties hereto.
G. GREENSTREET, INC.
/s/ Garv Greenstreet
GARY GREENSTREET, PRESIDENT
ATTEST:
/s/ Don Denton
CITY OF LUBBOCK, TEXAS
/s/ 8. C. McMinn B. C. McMINN, MAYOR
ATTEST:
/s/ Beatrice Cervantes Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
/s/ Bern Case
Bern Case.
Director of Aviation
APPROVED AS TO FORM:
ls/John C. Ross, Jr. John C. Ross, Jr.,
City Attorney
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STATE OF TEXAS
COUNTY OF LUBBOCK
§
§
September 26, 1991
Page 685
Before, a Notary Public, on this day personally appeared GARV
GREENSTREET, known to me to be the person whose name is subscribed to
the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed and in the
capacity therein stated as the act and deed of said corporation.
STATE OF TEXAS
COUNTY OF LUBBOCK
§
§
/s/ Judith Strickland
Notary Public in and for the State of Texas
Before, a Notary Public, on this day personally appeared 8. C. McMINN, Mayor of the City of Lubbock, Texas, known to me to be the
person whose name is subscribed to the foregoing instrument and
acknowledged to me that he executed the same for the purposes and consideration therein expressed and in the capacity therein stated as
the act and deed of the said City.
Isl Judith Strickland Notary Public in and for the
State of Texas
Copies of Exhibits A, B, C, D, and E are filed wiht Resolution No. 3717.
According to Staff memo, a Request for Proposals was
received in July from the Federal Aviation Administration for bid on an Airport Hangar Project
which would create 14-20 new jobs. At their September 12, 1991 Regular meeting, the City Council authorized the Mayor to sign the Lease with the FM
for this hangar project.
Acceptance of the Lease Agreement acknowledges the City's willingness to build a hangar and provides a
20-year lease to FM at $9,900 per month. The
project will be self-funding from revenue received
for FM lease payments.
The signature date on the lease Agreement with FM
starts the Contract timeline for design work, and it was necessary to postpone final execution of the
Lease, pending review of proposals for design and
construction. The timetable is critical since FM
has requested execution of the lease for the Fiscal
Vear ending September 30, 1991 and for completion of the project by January, 1992.
September 26, 1991
Page 686
Because of the short time frame between these dates,
two alternatives were reviewed:
1. For the City of Lubbock'to fund and
build the facility and hire an
engineering firm as project manager for the construction. This would
require the City to request bids from subcontractors and act as
contractor for the project. Problems are anticipated with this
alternative due to the uncertainty
of how long it will take for
receiving bids and for construction.
Additionally, specific costs
involved could not be confirmed and
finalized by the September 30
Contract deadline date.
2. To receive bids for a turn-key job
from private sector
developer/builder. In anticipation of this alternative, Staff sent
RFP's to 28 local vendors and a prebid conference was held September 13, 1991. Responses were received·
from three finns: (1) G.
Greenstreet. Inc. of Lubbock; (2) Tusha Building of Lubbock; and (3)
Lubbock Development Incorporated of
Lubbock.
r !
An eight member selection review committee reviewed l. the bids based on the following criteria:
Financing capability Participation in payment of taxes
Insurance
Building and•landscape maintenance
Schedule
Cost of lease Experience in similar projects
Utility participation
All three vendors indicated that a February 1
completion timetable is more attainable than the
January 1 timetable requested by FM.
Bids were reviewed on September 20 by the Selection
Review Committee. Based on the analysis of the
review committee, G. Greenstreet affords the City an
advantage based on lease revenue and tax participation and their proposal was $1,150 per
month more favorable than the second place firm.
G. Greenstreet Tusha Builders
L.D.I.
Cash Flow to City
+$333/mo. -$817/mo. -$737/mo.
In addition to a positive cash flow, the City will acquire a major facility with an estimated worth of
$1,000,000, for future lease. This is a one-year
Lease and FM has the standard option.
Staff recommended approval of the Contract with G. Greenstreet for development of the facility for
Lease to the FAA.
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91-50B-687-591
(20.)
September 26, 1991 Page 687
Motion was made by Councilwoman Baker, seconded by Councilman Maloy to approve Resolution #3717
authorizing the Mayor to execute the Lease-Sublease Agreement between the City and Greenstreet, Inc.,
conditioned, however, on the Mayor's satisfactory
negotiation between the City and the U.S. Government on the proposed Lease between the City and U.S.
Government for the construction of a new hanger so that both of the above mentioned leases are
compatible as to their terms and dates of completion. Motion carried: 7 Yeas; O Nays.
{In negotiations after the Council meeting, the FAA agreed to the January 15, 1992 completion date after the City agreed to provide interim storage space of
at least 30,000 square feet until the new building is complete.)
Consider a Resolution #3718 authorizing acceptance of water and sewer improvements for Lots 63 through 82, West View Addition.
RESOLUTION #3718
RESOLUTION ACCEPTING WATER AND SEWER SYSTEM IMPROVEMENTS FOR LOTS 63 THROUGH 82, WEST VIEW ADDITION.
WHEREAS, the developer of Lots 63 through 82, West View Addition has complied with the provision of the City of Lubbock Code, Chapter 28,
Article IV, by providing the water and sewer improvements for said addition in accordance with paragraph 156 of said Chapter 28, and
WHEREAS, the total utility cost to the developer is $26,383.62 with the improvements constructed by Craft Contracting Corporation
having a value of $22,303.63 as determined by the unit prices
established by said Chapter 28, and $4,079.99 cash paid to the City,
including $3,309.28 for adjacent line costs, with Craft Development
Corporation, the developer to receive a refund of $9,088.84 in
accordance with Chapter 28 of the Code of the City of Lubbock and a
refund of deposit in the amount of $0.00, and
WHEREAS, the construction of the said water and sewer improvements was performed under the supervision of the Water Utilities Engineer and
completed in accordance with the City of Lubbock's plans and specifica-
tions, NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION I. THAT the improvements BE and the same are hereby
accepted as an integral part of the water and sewer system of the City of Lubbock.
SECTION 2. THAT the refundable cost in the amount of $9,088.84 be made i~ accordance with s.aid Chapter 28.
September 26, 1991
Page 688
SECTION 3. THAT a refund of deposit be made in the amount of
$0.00.
SECTION 4. THIS resolution shall take effect and be in force from and after its passage.
PASSED ANO APPROVED this 26th day of September, 1991.
Isl B. c. McMinn B. C. McMINN, MAYOR
ATTEST:
Isl Ranette Boyd Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
/s/ Wilford D. Watson Wilford D. Watson, Chief Water Utilities Engineer
APPROVED AS TO FORM:
/sf J. Worth Fullingim
J. Worth Fullingim, Assistant City Attorney
91-508-688-592
(21.)
This is a routine acceptance of water and sewer improvements constructed in accordance with the
subdivision regulations. The total cost of the improvements is $26,383.62, including $22,303.63 in
construction costs and $4,079.99 in cash to the City including $3,309.28 for adjacent line costs. The
developer, Craft Development Corporation, will
receive a refund of $9,088.54 in accordance with Chapter 28 of the City of Lubbock Code of
Ordinances; there is no refund of deposit.
Staff recommended acceptance of these improvements.
Motion was made by Mayor Pro Tern Patterson, seconded
by Councilman Maloy to authorize Resolution #3718 as
, recommended by Staff. Motion carried: 7 Yeas; O Nays. ·
Consider ·ordinance #9478 calling a Special Election for January 18, 1992 to consider adoption of
additional sales and use taxes in the amount of 3/8
of one percent for economic development and 1/8 of one percent for reduction of the City property tax
rate.
ORDINANCE #9478
AN ORDINANCE ORDERING A SPECIAL ELECTION TO BE HELD ON JANUARY 18, l' 1992, FOR THE PURPOSE OF VOTING FOR OR AGAINST THE ADOPTION OF AN
ADDITIONAL ONE-HALF OF ONE PERCENT SALES ANO USE TAX WITHIN THE CITY TO -
BE USED FOR REDUCTION OF THE CITY PROPERTY TAX RATE (1/8 CENT) AND FOR
THE BENEFIT OF AN ECONOMIC DEVELOPMENT CORPORATION (3/8 CENT}; MAKING PROVISION FOR THE CONDUCT OF SUCH ELECTION ACCORDING TO APPLICABLE
PROVISIONS OF LAW; PROVIDING FOR NOTICE OF THIS ELECTION BY PUBLICATION
OF THIS ORDINANCE; PROVIDING FOR EXECUTION OF AN APPROPRIATE ELECTION ORDER HEREAFTER; AND OTHER PROVISIONS INCIDENT TO AND RELATED TO THE
PURPOSE HEREOF; NOW THEREFORE:
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91-508-689-593
{22.)
September 26, 1991
Page 689
Motion was made by Councilwoman Baker, seconded by
Councilman Maloy to pass on first reading Ordinance
#9478 as recommended by Staff. Motion carried: 7
Yeas; O Nays.
Consider Ordinance #9479 calling a Charter Amendment
Election for January 18. 1992 with regard to deletion from the Charter of Chapter 3 pertaining to
the Board of City Development. including funding and all other provisions.
ORDINANCE #9479
AN ORDINANCE CALLING FOR SUBMISSION TO THE QUALIFIED VOTERS OF THE CITY OF LUBBOCK, TEXAS, FOR ADOPTION OR REJECTION, THE FOLLOWING
AMENDMENT TO THE EXISTING CHARTER OF THE CITY OF LUBBOCK:
According to Staff memo, it is necessary to call two elections because of the nature of the propositions
to be voted on: {l) A Special Election and (2) a Charter Amendment Election. They will be held on
the same day and will be listed on one ballot.
The wording for the Sales and Use Tax/Reduction of
Property Tax Proposition is specifically provided
for in a new statute which became effective in May,
1991. The statute mandates combining the issues into one question and in their motion to pass the
ordinances, Council must designate the ballot order
for the two propositions.
The only changes from previous procedures for holding an election are:
I. Absentee voting by personal
appearance will be held at City Hall from 8:00 a.m. to 5:00 p.m. on the
Saturday immediately preceding
.Election Day. This is an effort to accommodate those who have
difficulty voting during weekday
office hours.
2. All absentee voting by personal
appearance will take place at City
Hall; there is no provision for a branch polling place for this
election.
Motion was made by Councilman Phillips, seconded by
Mayor. Pro Tern Patterson to pass on first reading Ordinance #9479 as recommended by Staff. Motion
carried: 7 Yeas; 0 Nays. {Note: Designation of
Proposition order will be October 10, 1991 at second reading.)
September 26, 1991
Page 690
91-50B-690-594
(23.) Consider Resolution #3719 authorizing the Mayor to sign an Amendment to the Agreement with the Lubbock International Cultural Center, Inc.
RESOLUTION #3719
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized
and directed to execute for and on behalf of the City of Lubbock an
Amendment to a Lease Agreement by and between the Lubbock International
Cultural Center, Inc. and the City of Lubbock, attached herewith, which
shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this
Resolution as if fully copied herein in detail.
Passed by the City Council this 26th day of September, 1991.
ls/ B. C. McMinn
B .. C. McMINN, MAYOR
ATTEST:
/s/ Ranette Boyd
Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
Is/ Rita Harmon Rita Harmon, Assistant City Manager
APPROVED AS TO FORM:
/s/ Donald G. Vandiver Donald G. Vandiver, First
Assistant City Attorney
STATE OF TEXAS
COUNTY OF LUBBOCK
AMENDMENT TO LEASE AGREEMENT
§
§'
WHEREAS, a Lease Agreement was made and entered into upon the 11th
day of May, 1989, by and between the Lubbock International Cultural
Center, Inc., hereinafter called "Lessor" and the City of Lubbock,
hereinafter called "lessee,• and
WHEREAS, the parties to said lease Agreement hereby agree to modify the terms of such agreement as follows; NOW THEREFORE:
WITNESSETH:
(1) Lessor desires to locate the facility which is the subject
of the lease Agreement upon the campus of Texas Tech University rather /·.·. · than at the location indicated in the said Lease Agreement.
(2) Lessor and Lessee hereby agree that prior to disbursement of
funds to lessor pursuant to said lease Agreement, Lessor shall satisfy
Lessee that it has a legal right to build, occupy and lease to Lessee
the building to be constructed on the Texas Tech University campus.
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September 26, 1991
Page 691
(3) All other terms and conditions of the said Lease Agreement
shall continue and be in effect as stated in said Lease Agreement.
Executed in duplicate by the parties hereto on the 26th day of September, 1991.
LUBBOCK INTERNATIONAL CULTURAL
CENTER, INC.:
CITY OF LUBBOCK:
/s/ Idris Rhea Traylor PRESIDENT Is/ B. C. McMinn B. C. McMINN, MAYOR
ATTEST:
/s/ Not Legible
Secretary
ATTEST:
Isl Ranette Boyd Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
/s/ Rita Harmon Rita Harmon, Assistant City Manager
APPROVED AS TO FORM:
/s/ Donald G. Vandiver Donald G. Vandiver, First Assistant City Attorney
The City of Lubbock was notified by George
Gilkerson, Attorney for Lubbock International
Cultural Center, Inc., of the Center's intent to construct their facility on the Texas Tech campus.
Since the May 11, 1989 original Agreement was site specific to locate the Center on a portion of Blocks
43 and 42 in Overton Addition, the Lease Agreement
had to be amended by Council to permit a site
change.
The proposed Amendment to the Lease Agreement states
that the site selected on the Tech campus must be mutually agreeable to Texas Tech University, the
International Cultural Center, Inc., and the City of Lubbock. When the location on the Texas Tech campus
is determined, City Staff will meet with the
International Cultural Center and Texas Tech University to ensure that the site is agreeable and
that all original provisions 1n the Lease Agreement are met.
The original Lease provided that construction
commence within three years·from the date of the
-Lease and be completed within five years or the agreement would terminate. The expiration date is
May 11, 1992.
Motion.was made by Councilwoman Trejo, seconded by
Councilwoman Baker to authorize Resolution 13719 as recommended by Staff. Motion carried: 7 Yeas; 0
Nays.
September 26, 1991
Page 692
91-50B-692-595
(25.) BID #11518--North Avenue N Strip Paving, and
authorize same (Streets Drainage-Engineering).
RESOLUTION #3720
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized ,--
and directed to execute for and on behalf of the City of Lubbock a Contract by and between the City of Lubbock and Ronnie Zahn Paving, Inc.
for North Avenue •N• -Strip Paving, attached herewith, which shall be
spread upon the minutes of the Council and as spread upon the minutes of
this Council shall constitute and be a part of this Resolution as if
fully copied herein in detail.
Passed by the City Council this 26th day of September, 1991.
ATTEST:
/s/ Ranette Boyd Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
/s/ Gene Eads Gene Eads, Purchasing Manager
APPROVED AS TO FORM:
/s/ Harold Willard Harold Willard, Assistant City
Attorney
STATE OF TEXAS
COUNTY OF LUBBOCK
/s/ B. c. McMinn B. C. McMINN, MAYOR
CONTRACT
THIS AGREEMENT, made and entered into this 26th day of September, 1991 by and between the City of Lubbock, County of Lubbock, State of
Texas, acting by and through B.C. McMinn, Mayor, thereunto authorized to do so, hereinafter referred to as OWNER, and Ronnie Zahn Paving, Inc. of
the City of Lubbock, County of Lubbock, and the State of Texas, hereinafter termed CONTRACTOR.
WITNESSETH: That for and in consideration of the payments and
agreements hereinafter mentioned, to be made and performed by the OWNER
.and under the conditions expressed in the bond bearing even date
herewith (if any) the CONTRACTOR hereby agrees with OWNER to commence
and complete the construction of certain improvements described as follows·:
BID NO. 11518 North Avenue N Strip Paving (Streets Drainage-Engineering)
in the amount of $46,561.25
and all extra work in connection therewith, under the terms as stated in
the contract documents and at his (or their) own proper cost and expense
to furnish all materials, supplies, machinery, equipment, tools,
superintendence, labor, insurance and other accessories and services
necessary to complete the said construction in accordance with the
contract documents as defined in the General Condition of Agreement.
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September 26, 1991
Page 693
The CONTRACTOR hereby agrees to commence work within ten days
after the date written notice to do so shall have been given to him and to substantially complete same within the time specified in the contract
documents.
The OWNER agrees to pay the CONTRACTOR in current funds for the
performance of the contract in accordance with the proposal submitted
therefore, subject to additions and deductions, as provided in the
contract documents and to make payment on account thereof as provided therein.
IN WITNESS WHEREOF, the parties to these presents have executed
this agreement in Lubbock, Lubbock County, Texas in the year and day
first above written.
ATTEST:
Isl Ranette Boyd Secretary
CITY OF LUBBOCK, TEXAS (OWNER)
/s/ B. C. McMinn Mayor
APPROVED AS TO CONTENT: APPROVED AS TO FORM:
ATTEST:
Secretary
CONTRACTOR
By: TITLE: ____ _
COMPLETE ADDRESS: Ronnie Zahn Paving, Inc.
91-50B-693-596 ( 26.) .
91-SOB-693-597
(27.)
Rt. 10 Box 820
Lubbock, Texas 79404
Motion was made by Mayor Pro Tern Patterson, seconded
by Councilwoman Baker to authorize Resolution 13720
as recommended by Staff. Motion carried: 7 Yeas; 0
Nays.
BID #11542--Public Safety System Computer Upgrade
(Communjcations Services).
Digital Equipment Corp.
Motion was made by Mayor Pro Tern Patterson, seconded by Councilwoman Baker to authorize low bid meeting
specifications. Motion carried: 7 Yeas; O Nays.
BID #11403--Annyal pricing for safety boots and shoes {yarious departments).
Safety Boot Store--641 pairs of safety boots and
shoes.
Motion was made by Mayor Pro Tem Patterson, seconded
by Councilwoman Baker to authorize low bid meeting specifications. Motion carried: 7 Yeas; 0 Nays.
September 26, 1991
Page 694
91-508-694-598
(28.) . BID #11604--Fuel Storage Monitor System (Citibusl.
91-50B-694-599
{29.)
91-508-694-600
(30.)
E.J. Ward, Inc., Ft. Worth--Citibus System System
Upgrade
Motion was made by Mayor Pro Tern Patterson, seconded by Councilwoman Baker to authorize low bid meeting specifications. Motion carried: 7 Yeas; 0 Nays.
BIO #11246--Co]lection services {Municipal Court).
Capital Assistance Group, Arlington--Overall rating
was 42; ranked #1. Proposals were evaluated on the
basis of contractor qualifications, collection
procedures, collection notices, computer network, management reports and fee structure. Overall · ·
ratings are the total evaluated score.
Motion was made by Mayor Pro Tern Patterson, seconded
by Councilwoman Baker to authorize low bid meeting specifications. Motion carried: 7 Yeas; 0 N~ys.
BID #11543--Dr11 l 1 nq Foundation Piers. and authorize
same (Electric Distribution).
RESOLUTION #3721
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized
and directed to execute for and .on behalf of the City of Lubbock a Contract by and between the City of Lubbock and Precision Drilling for
Drilling Foundation Piers, attached herewith, which shall be spread upon
the minutes of the Council and as spread upon the minutes of this
Council shall constitute and be a part of this Resolution as if fully
copied herein in detail.
Passed by the City Council this 26th day of September, 1991.
ATTEST:
Isl Ranette Boyd Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
Isl Gene Eads Gene Ea·ds, Purchasing Manager
APPROVED AS TO FORM:
Isl Harold Willard Harold Willard, Assistant City Attorney
Isl B. C. McMinn B. C. McMINN, MAYOR
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CITY OF LUBBOCK
REGULAR CITY COUNCIL MEETING OCTOBER 10, 1991
10:00 A.M.
The City Council of the City of Lubbock, Texas met in regular session on
the 10th day of October, 1991 1n the City Council Chambers, first floor,
City Hall, 1625 13th Street, Lubbock, Texas at 10:00 A.M.
Present: Mayor B. C. McMinn, Mayor Pro Tern T. J. Patterson, Councilman
Gary Phillips, Councilwoman Joan Baker, Councilwoman Maggie Trejo,
Councilman M. J. Aderton, City Manager Larry J. Cunningham, City Attorney John C. Ross, Jr., and City Secretary Ranette Boyd.
Absent:_ ~ouncilman Bill Maloy.
Mayor McMinn called the meeting to order at 10:00 A.M.
( 1.)
( 2.)
( 3.)
( 4.)
91-50B-707-610
( 5.)
The Invocation was given by Assistant City Manager Jim Bertram.
The Pledge of Allegiance was given in unison by
those in the Council Chambers.
Motion was made by Mayor Pro Tern Patterson, seconded
by Councilman Phillips to approve the Minutes of the October 10, 1991 Regular City Council meeting as
written. Motion carried: 6 Yeas; 0 Nays.
Board Appointments
PROCLAMATION
"October Fast Week" --October 13-20, 1991
Presentation of department awards for the 1991 City
of Lubbock Blood Drive.
Each year the City of Lubbock sponsors an employee
blood drive to benefit United Blood Services. Ron
lewis, Traffic Signals Office, was this year's Blood Drive Coordinator. The drive was held from July 15
through September 12, 1991 and as a result, over 266 pints of blood were donated.
October 10, 1991
Page 708
91-50B-708-611
( 6.)
The following departments were given awards for
first, or second place based on the highest percentage of donations in their class:
Class/Place
100+ Employees
1st Place
2nd Place
50-99 Employees
1st Place 2nd Place
25-49 Employees
1st Place
2nd Place
12-24 Employees
1st Place
2nd Place
6-11 Employees
1st Place 2nd Place
1-5 Employees
1st Place
2nd Place
Most Improved Department
Department
Water/Sewer Parks, Recreation &
Cemetery
Civic Center
library
Aviation
Traffic Engineering
Planning
Community Relations/
Public Information
Finance Budget
City Secretary
Radio Shop
Radio Shop
ORDINANCE #9478--Calling a Special Election for
January 18, 1992 to consider adoption of additional
sales and use taxes in the amount of 3/8 of one
percent for economic development and 1/8 of one
percent for reduction of the City property tax rate.
ORDINANCE #9478
AN ORDINANCE ORDERING A SPECIAL ELECTION TO BE HELD ON JANUARY 18,
1992, FOR THE PURPOSE OF VOTING FOR OR AGAINST THE ADOPTION OF AN
ADDITIONAL ONE-HALF OF ONE PERCENT SALES AND USE TAX WITHIN THE CITY TO BE USED FOR REDUCTION OF THE CITY PROPERTY TAX RATE (1/8 CENT) AND FOR
THE BENEFIT OF AN ECONOMIC DEVELOPMENT CORPORATION (3/8 CENT); MAKING
PROVISION FOR THE CONDUCT OF SUCH ELECTION ACCORDING TO APPLICABLE PROVISIONS OF LAW; PROVIDING FOR NOTICE OF THIS ELECTION BY PUBLICATION OF THIS ORDINANCE; PROVIDING FOR EXECUTION OF AN APPROPRIATE ELECTION
ORDER HEREAFTER; AND OTHER PROVISIONS INCIDENT TO AND RELATED TO THE
PURPOSE HEREOF; NOW THEREFORE:
Motion was made by Councilwoman Baker, seconded by Mayor Pro Tem Patterson to pass on second and final
reading Ordinance #9478, designating this Proposition as #1 on the ballot for the January 18,
1992 Special City Election. Motion carried: 6
Yeas; 0 Nays.
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October 10, 1991 Page 709
ORDINANCE #9479--Callinq a Charter Amendment
'E]ectjon for January 18. 1992 with regard to
ae]etion frgm the Charter of Chapter 3 pertaining to
the Board of City Development, including funding and
all other provisions.
ORDINANCE #9479
AN ORDINANCE CALLING FOR SUBMISSION TO THE QUALIFIED VOTERS OF THE CITY OF LUBBOCK. TEXAS, FOR ADOPTION OR REJECTlON, THE FOLLOWING AMENDMENT TO THE EXISTING CHARTER OF THE CITY OF LUBBOCK: .
91-SOB-709-613
( 8.)
Motion was made by Councilwoman Baker, seconded by
Councilwoman Trejo to pass on second and final reading Ordinance #9479, designating this Proposition as #2 on the ballot for the January 18,
1992 Special City Election. Motion carried: 6
Yeas; 0 Nays.
ORDINANCE #9480--Zone Case #2675 {various locations
along the south side of 19th Street from Upland to
Alcove Avenue)--Request of Boyd 0. Roberts et al for a zoning change from R-1 to C-4 on various tracts
out of Section 42, Block AK.
ORDINANCE #9480
AN ORDINANCE AMENDING ZONING ORDINANCE NO. 7084 AND THE OFFICIAL
MAP OF THE CITY OF LUBBOCK MAKING THE FOLLOWING CHANGES: ZONE CASE NO. 2675; A ZONING CHANGE FROM R-1 TO C-4 ZONING ON VARIOUS TRACTS OUT OF
SECTION 42, BLOCK A-K, LUBBOCK, TEXAS; SUBJECT TO CONDITIONS; PROVIDING A PENALTY; PROVIDING A SAVINGS CLAUSE AND PROVIDING FOR PUBLICATION.
91-508-709-614
( 9.)
Motion was made by Mayor Pro Tern Patterson, seconded
by Councilman Aderton to pass on second and final reading Ordinance #9480 as recommended by Staff.
Motion carried: 6 Yeas; 0 Nays.
ORDINANCE #9481--Zone Case #2460-E {southwest of
Loop 289 and Memphis to 75th Street)--Reguest of Henry L. Huneke (for Escondido Oil, Inc.) for a
zoning change from R-1, R-2 and GO to A-2 (limited to church and church related uses) on a tract out of Section 11. Block E-2.
ORDINANCE #9481
Ml ORDINANCE AMENDING ZONING ORDINANCE NO. 7084 AND THE OFFICIAL
MAP OF THE CITY OF LUBBOCK MAKING THE FOLLOWING CHANGES: ZONE CASE NO. 2460-E; A ZONING CHANGE FROM R-1, R-2 ANO GO TO A-2 ZONING, LIMITED CHURCH USES ON A TRACT OUT OF SECTION 11, BLOCK E-2, LUBBOCK, TEXAS;
SUBJECT TO CONDITIONS; PROVIDING A PENALTY; PROVIDING A SAVINGS CLAUSE AND PROVIDING FOR PUBLICATION.
Motion was made by Mayor Pro Tern Patterson, seconded
by Councilman Aderton to pass on second and final reading Ordinance #9481 as recommended by Staff.
Motton carried: 6 Yeas; O Nays.
October 10, 1991 Page 710
91-S0B-710-615
(10.) ORDINANCE #9482--Zone Case #2460-F {northeast corner of 78th Street and Quaker Avenue)--Reguest of Henry L. Huneke (for Escondido Oil. Inc.) for zoning
change from GO to C-2A on a tract out of Section 11, Block E-2.
ORDINANCE #9482
AN ORDINANCE AMENDING ZONING ORDINANCE NO. 7084 AND THE OFFICIAL
MAP OF THE CITY OF LUBBOCK MAKING THE FOLLOWING CHANGES: ZONE CASE NO. 2460-F; A ZONING CHANGE FROM GO TO C-2A SPECIFIC USE PERMIT FOR
REDUCTION OF SETBACK ON 78TH STREET ON A TRACT OUT OF SECTION 11, BLOCK
E-2, LUBBOCK, TEXAS; SUBJECT TO CONDITIONS; PROVIDING A PENALTY;
PROVIDING A SAVINGS CLAUSE AND PROVIDING FOR PUBLICATION.
91-50B-710-616
(11.)
Motion was made by Mayor Pro Tem Patterson, seconded
by Councilman Aderton to pass on second and final
reading Ordinance #9482 as recommended by Staff. Motion carried: 6 Yeas; O Nays.
ORDINANCE #9403
AN ORDINANCE ABANDONING AND CLOSING A PORTION OF 20TH STREET AS MORE PARTICULARLY DESCRIBED IN THE BODY OF THIS ORDINANCE; DIRECTING THE
CITY ENGINEER TO MARK THE OFFICIAL MAPS OF THE CITY OF LUBBOCK TO
REFLECT SAID ABANDONMENT AND CLOSING; PROVIDING A SAVINGS CLAUSE; AND r
PROVIDING FOR PUBLICATION. l
91-508-710-617
(12.)
This Ordinance, which was passed on first reading at
the December 13, 1990 City Council meeting, closes a
portion of 20th Street between Vicksburg Avenue and
Toledo Avenue in the area of Dunnhaven to be
platted. According to Staff memo, the final plat is
ready to be filed.
Staff recommended approval.
Motion was made by Mayor Pro Tern Patterson, seconded
by Councilman Aderton to pass on second and final reading Ordinance #9403 as recommended by Staff.
Motion carried: 6 Yeas; 0 Nays.
ORDINANCE #9483--Zone Case #1941-8 (northwest corner
of Colgate Street and Detroit Avenue)--Reguest of
City of Lubbock (for E.Z. Hogan. Jr.} for a zoning
change from C-2 to C-2 Specific Use {for self-
service gasoline sales) on Lots 6-12. Block 1,
Maddox Addition.
ORDINANCE #9483
AN ORDINANCE AMENDING ZONING ORDINANCE NO. 7084 AND THE OFFICIAL
MAP OF THE CITY OF LUBBOCK MAKING THE FOLLOWING CHANGES: ZONE CASE NO. 1941-B; A ZONING CHANGE FROM C-2 TO C-2 SPECIFIC USE PERMIT FOR
SELF-SERVICE GASOLINE SALES ON LOT 6-12, BLOCK, I, MADDOX ADDITION,
LUBBOCK, TEXAS; PROVIDING A PENALTY; PROVIDING A SAVINGS CLAUSE AND
PROVIDING FOR PUBLICATION.
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9l-50B-7ll-618
{17.}
October 10, 1991 Page 711
Motion was made by Mayor Pro Tem Patterson, seconded
by Councilman Aderton to hold passage of Ordinance
#9483 on second reading until signed Judgment is received. Motton carried: 6 Yeas; 0 Nays.
Consider Ordinance #9484 abandoning and closjng a
portion of an Electrical Line Easement located in Section 15, Block A (1602 N. Avenue J).
ORDINANCE #9484
AN ORDINANCE ABANDONING AND CLOSING A PORTION OF AN ELECTRICAL
LINE EASEMENT LOCATED IN SECTION 15, BLOCK A, LUBBOCK, LUBBOCK COUNTY,
TEXAS, AS MORE PARTICULARLY DESCRIBED HEREINAFTER IN THIS ORDINANCE;
DIRECTING THE CITY ENGINEER TO MARK THE OFFICIAL MAPS OF THE CITY TO REFLECT SAID ABANDONMENT AND CLOSING; PROVIDING A SAVINGS CLAUSE; AND
PROVIDING FOR PUBLICATION.
91-508-711-619 {18.)
This Ordinance abandons and closes a portion of an Electrical Line Easement for a guy wire located west
of 1-27, east of North Avenue N, and south of Loop
289 on an unplatted portion of property. The size
of this Easement is 2' by 40' and a new Easement is
being dedicated approximately 160' to the east. Larry Adams, the owner of the property, and LP&L are
the proponents of this closure.
Staff recommended approval.
Motion was made by Councilwoman Baker, seconded by
Councilwoman Trejo to pass on first reading
Ordinance #9484 as recommended by Staff. Motion carried: 6 Yeas; O Nays.
Consider Resolution #3722 authorizing the Mayor to sign the Cover Sheet of the plans prepared by the Texas Department of Transportation for Project FR-1107(30), consisting of refurbishing guide signs along Loop 289.
October 10, 1991
Page 712
RESOLUTION #3722
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock is hereby authorized and
directed to execute by signature on behalf of said City the cover
(title) sheet of the plans prepared by the Texas Department of [-.-Transportation for Project FR 1107(30), consisting of refurbishing guide
signs along Loop 289.
,
Passed by the City Council this 10th day of October, 1991.
Isl B. C, McMinn
B. C. McMINN, MAYOR
ATTEST:
/s/ Ranette Boyd
Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
Isl David E. Woosley
David E. Woosley,
City Traffic Engineer
APPROVED AS TO FORM:
Isl J. Worth Full1ngim
J. Worth Fullingim,
Assistant City Attorney
A copy of the Cover (Title) Sheet is filed with Resolution No. 3722.
91-50B-712-620
(19.)
This project consists of refurbishing most of the
guide signs along the length of Loop 289 within the
City by the Texas Department of Transportation.
According to Staff memo, the location and wording of
the signs are basically the same, but the signs need
to be refurbished because of loss of reflectivity. Staff recommended approval.
Motion was made by Mayor Pro Tem Patterson, seconded
by Councilwoman Baker to authorize Resolution #3722 as recommended by Staff. Motion carried: 6 Yeas; 0
Nays.
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RESOLUTION #3723
October 10, 1991 Page 713
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock is hereby authorized and
directed to execute by signature on behalf of said City the cover (title) sheet of the plans prepared by the Texas Department of
Transportation for Project IR 27-7(56) 301, consisting of refurbishing
guide signs along Interstate 27 from a point 0.2 mile South of N. Loop
289 to a point 1.685 miles North of Hale Center, Texas (insofar as same
applies to the City of Lubbock, Texas).
Passed by the City Council this 10th day of October, 1991.
Isl B. c. McMinn B. C. McMINN, MAYOR
ATTEST:
Isl Ranette Boyd Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
/sl David E. Woosley David E. Woosley, City Traffic Engineer
APPROVED AS TO FORM:
Isl J. Worth Fullingim J. Worth Fullingim,
Assistant City Attorney
A copy of the Cover (Title) Sheet is filed with Resolution No. 3723.
91-50B-713-621
(20.)
This project consists of refurbishing most of the guide signs along Interstate 27 between Lubbock and
Hale Center by the Texas Department of , Transportation. Since a portion of this project is within the City of Lubbock, approval by the City is
required. The location and wording of the signs are
basically the same, but the signs need to be
refurbished·because of loss of reflectivity. Staff
recommended approval.
Motion was made by Mayor Pro Tem Patterson, seconded
by Councilwoman Baker to authorize Resolution #3723
as recommended by Staff. Motion carried: 6 Yeas; O
Nays.
Consider Resolution #3724 authorizing the Mayor to sign a Lease Agreement with Swetech. Inc.
October 10, 1991
Page 714
RESOLUTION #3724
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized
and directed to execute for and on behalf of the City of Lubbock a lease
Agreement by and between the City of Lubbock and Swetech, Inc., attached f ,---herewith, which shall be spread upon the minutes of .the Council and as
spread upon the minutes of this Council shall constitute and be a part
of this Resolution as if fully copied herein in detail.
Passed by the City Council this 10th day of October, 1991.
/s/ 8. C. McMinn
B. C. McMINN, MAYOR
ATTEST:
/s/ Ranette Boyd Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
/s/ Bern E. Case Bern E. Case, Director of Aviation
APPROVED AS TO FORM:
Isl Harold Willard Harold Willard, Assistant City
Attorney
THE STATE OF TEXAS
COUNTY OF LUBBOCK
§
§
KNOW All MEN BY THESE PRESENTS:
LEASE AGREEMENT
Thi.s Lease Agreement, entered into at Lubbock, Texas, by and
between the City of Lubbock, hereinafter referred to as "lessor," and
Swetech, Inc., hereinafter referred to as "Lessee."
WITNESSETH
WHEREAS, lessor owns and operates a public airport designated as
Lubbock International Airport and herein called "Airport;" and
WHEREAS, Lessor also owns a hangar located on the east side of the
Airport which lessee desires to lease and utilize for the manufacture of a nutrient contained in cattle feed; and
W~EREAS, lessor deems it in the public interest to lease said
hangar to the Lessee for good and valuable consideration;
ARTICLE I
NOW THEREFORE, for and in consideration of the terms, covenants
and conditions hereinafter set forth, the Lessor does hereby lease unto lessee, for its use in the manufacture of a nutrient contained in cattle
feed, the hangar whose location at the Airport is depicted on Exhibit A
attached hereto and by this reference made a part hereof for all purposes, together with the right of ingress and egress.
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October 10, 1991
Page 715
The term of this Agreement shall be for a period of one (1) year
commencing on September 1, 1991, and ending on August 31, 1992, both
dates inclusive. However, this Agreement is subject to earlier termination as hereinafter provided.
ARTICLE II
In consideration of the rights and privileges herein granted,
Lessee shall pay to the Lessor a rental of SEVEN THOUSAND ONE HUNDRED TWENTY-FIVE AND N0/100 DOLLARS ($7,125.00) for the term of this Lease, payable in twelve {12) equal monthly installments of FIVE HUNDRED NINITY-THREE AND 75/100 DOLLARS ($593.75), in advance, by the fifteenth
(15th) day of each month this Lease is in effect.
All payments that become due and payable by Lessee shall be made
to the City of Lubbock at the office of the Director of Aviation, Lubbock International Airport, Lubbock, Texas.
ARTICLE III
This Lease is granted subject to the following provisions and conditions:
1. lessee shall use the hangar solely for the purpose herein
stated.
2. Lessee agrees that it will at all times during the term of this Lease maintain the hangar in good condition, ordinary
wear and tear excepted, such maintenance to be the sole
responsibility and obligation of Lessee.
3. Lessor will not be required to provide Lessee with access to the hangar by removing snow or ice from any portion of the
Airport.
4. Lessee will erect no signs and will distribute no advertising matter on Airport premises without the prior
written consent of the Director of Aviation. Such prior written consent shall not be required for advertising placed
by Lessee with Ackerley Airport Advertising, Inc. or any other party having the right to sell, rent or offer Airport
Terminal advertising space.
5. Lessee shall not permit any mechanic's. materialman's or contractor's liens to arise against the hangar, and Lessee expressly agrees that it will keep and save the hangar and
Lessor harmless from all costs and damages resulting from
any lien or liens of any character created or that may be asserted through any act or thing done by Lessee, its agents, officers or employees.
6. In the event any mechanic's liens or other liens or orders for payment shall be filed against the hangar while this
Agreement is in effect, Lessee shall within ten (10) days cause the same to be cancelled and discharged of record, by
bond or otherwise, at the election and expense of Lessee, and shall also defend on behalf of Lessor, at Lessee's sole cost and expense, any action, suit or proceeding which may
·be brought thereon or for the enforcement of such liens or
orders.
7. Lessor shall assume no responsibility as to the condition of
the hangar and Lessee herein expressly assumes all responsibility for maintenance, upkeep and repairs necessary to keep the hangar in a safe and serviceable co.ndition.
October 10, 1991
Page 716
8. The Lessee shall not make, permit or suffer any additions,
improvements or alterations to the hangar herein leased without prior written consent of the Director of Aviation of
the City of Lubbock. Any such additions, improvements or
alterations made with the consent of the Director of Aviation shall be solely at the expense of the lessee, and
unless such consent provides specifically that title to the
additions, improvements or alterations so made shall vest in the Lessee, title thereto shall at all times remain in the
Lessor, and such additions, im•provements or alterations shall be subject to all of the terms, covenants and
conditions of this Agreement.
9. The Lease herein granted is subject to any·and all
applicable laws, ordinances, rules and regulations pertaining to the Airport.
10. During time of war or national emergency, the Lessor shall
have the right to enter into an agreement with the United
States Government for military or naval use of all or part of the landing area, the publicly owned air navigation
facilities, and other area or facilities of the Airport. If
any such agreement is executed, the provisions of this
instrument, insofar as they are inconsistent with the
provisions of the agreement with the Government, shall be
suspended, but rent hereunder shall abate accordingly.
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11. This Agreement shall be subordinate to the provisions of any
existing or future agreement between the Lessor and the
United States pertaining to the operation or maintenance of the Airport, the execution of which has been or may be
required as a condition precedent to the receipt or
expenditure of federal funds for the development of the (·
Airport. Should the effect of such agreement with the
United States effectively destroy the commercial value of Lessee's rights under this Agreement, the Lessor shall not
be held liable therefor, but rent hereunder shall abate
accordingly.
12. All rights, privileges and interests acquired herein by
lessee may, at the option of the Lessor, be suspended if such suspension is found by the Lessor, acting in good
faith, to be necessary to secure federal financial aid for
the development of.the Airport, or further development or promotion of aeronautical operations thereon, but rent
hereunder shall abate accordingly.
13. The Lessor, acting by and through the Director of Aviation
or other designated representative, shall have the right to inspect the hangar at all reasonable times that this lease
is in effect.
14. Any property of the lessor or any property for which the
City of Lubbock may be responsible which is damaged or
destroyed incident to the exercise of the privileges herein granted, or as a result of acts or omissions of the employees or agents of Lessee, shall be properly repaired or
replaced by the Lessee to the satisfaction of the Lessor and
its authorized representatives, or in lieu of such repair or
replacement, the Lessee shall, if so required by the Lessor,
pay to the Lessor money in any amount deemed sufficient by the Lessor to compensate for the loss sustained by the
Lessor which results from the loss of, damage to or
destruction of such property.·
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October 10, 1991 Page 717
15. The Lessee agrees to indemnify, defend and forever save the
Lessor, its authorized agents, representatives and
employees, harmless from and against any and all penalties, liability, annoyances, expense or loss, including attorneys'
fees, resulting from claims or court action of any nature
arising directly or indirectly out of any acts or omissions
of the Lessee, its agents, servants, guests, employees or
business visitors under this Agreement.
16. The Lessee shall maintain at all times, at its sole expense, with an insurance underwriter authorized to do business in
the State of Texas and acceptable to the Lessor, insurance
against claims of public liability and property damage resulting from Lessee's activities at the Airport. The
amount of insurance coverage shall not be less than FIFTY THOUSAND AND N0/100 DOLLARS ($50,000) for property damage
arising out of any one accident or event, or less than ONE HUNDRED THOUSAND AND N0/100 DOLLARS ($100,000) for personal
injury or death of any one person in any one event, or less
than THREE HUNDRED THOUSAND AND N0/100 DOLLARS ($300,000)
for personal injury or death of two (2) or more persons in
any one event. Certificates of insurance or other
satisfactory evidence of coverage shall be filed with the
Director of Aviation prior to entry into the hangar premises by the lessee, Each policy shall name the Lessor, City of
Lubbock, as an additional insured as its interest may appear and shall contain a provision requiring the insurer to give
the Lessor written notice of cancellation or of any material change in said policy or certificates at least thirty (30) days in advance of the effective date of such cancellation
or material change. Each pol icy shall also contain a
provision waiving the right of such insurer to subrogation.
17. Lessee shall furnish to the Lessor satisfactory evidence
that it carries Workers' Compensation Insurance in accordance with the laws of the State of Texas.
18. The Lessee herein agrees to assume responsibility for the payment of all public utility charges connected with
lessee's use of the hangar including, but not limited to
water, gas, electricity, telephone and sewer service.
19 •· The Lessee warrants that it has not emp 1 oyed any person
employed by the Lessor to solicit or secure this Lease Agreement upon any agreement for a commission, percentage,
brokerage or contingent fee,
20. Lessee shall not assign nor sublet this Lease without prior
written consent of the Director of Aviation of the City of Lubbock, and no such assignment or subletting shall affect Lessee's obligations to make all required rental payments
hereunder.
21. The failure of the Lessor to insist upon performance of any
of the terms, covenants or conditions of this Lease shall not be construed as a waiver or relinquishment of the future
performance of any such terms, covenants or conditions, and the Lessee's obligation with respect to such future
performance shall continue in full force and effect.
22. lessee shall, at its sole expense, provide a complete and
property arrangement for the adequate sanitary handling and di sposa 1 away from the Airport of a 11 trash, garbage and other refuse that results from Lessee's use of the hangar.
October. IO, 1991
Page 718
23. In the event Lessee remains in possession of the hangar
after the expiration of this Agreement, such holding over
shall not be deemed as a renewal or extension of this Lease,
.but shall create only a tenancy from day to day which may be terminated at any time by Lessor.
24. Lessee shall prohibit both unauthorized persons and vehicles
from entering those Airport premises over which Lessee has r-cont ro 1 or usage of either exclusively or in common with
other Airport tenants, and Lessee agrees that in the event
that a civil penalty or fine is levied against the Airport
or City as a result of Lessee's failure to comply or act in
accordance with this provision or any other applicable
federal, state or local statutes, ordinances, rules and
regulations affecting the use, occupancy or operation of any
of said premises, Lessee shall immediately reimburse the
Airport or City the full amount of the penalty or fine and correct the act or omission leading to, causing or
contributing to the violation.
ARTICLE IV
This Lease Agreement shall terminate at the end of the initial term hereof•and Lessee shall have no further right or interest in the hangar except as provided in numbered Paragraph 23 of Article III of this Agreement.
This Agreement is also subject to termination for the reasons set forth below, provided that fifteen (15) days written notice i~ given to
the non-terminating party. Rental due hereunder shall be payable only to the effective date of said termination.
The Lessee. may terminate upon the happening of any of the following: ·
I. The permanent abandonment of the Airport as an airline
terminal.
· 2. The issuance by any court of competent jurisdiction of an
injunction in any way preventing or restraining the use of
the Airport, provided such injunction remains in force for at least thirty (30) days.
3. The breach by the Lessor of any of the terms, covenants or
conditions of this Agreement to be kept, performed and
observed by the Lessor, and the failure of the Lessor to remedy such breach for a period of thirty (30) days after
written notice from the Lessee of the existence of such
breach.
4. The assumption by the United States Government, or any
authorized agency of same, of the operation, control or use of the Airport and its facilities in such a manner as to
substantially restrict the Lessee from utilizing the hangar · under the terms of this Agreement for a period of at least
thirty (30) days.
The Lessor may terminate upon the happening of any of the
following:
I. If the Lessee shall file a voluntary petition of bankruptcy;
if Lessee is adjudicated as bankrupt; if a court shall take
jurisdiction of Lessee·and its assets pursuant to
proceedings brought under the provisions of any federal
reorganization act; if a receiver for Lessee's assets is appointed; or if Lessee is divested of its rights, powers
and privileges under this Agreement by other operation of
law.
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October 10, 1991 Page 719
2. If the lessee shall abandon and discontinue operations under
this Agreement.
3.
4.
5.
If the lessee shall default in or fail to make any payments
at any time and in the amounts required under this Agreement.
If the Lessee shall fail to perform, keep or observe any of
the terms, covenants or conditions contained in this
Agreement to be performed, kept or observed by lessee.
If the lessee sha 11 fa i1 to abide by a 11 app l icab 1 e laws, ordinances, rules and regulations of the United States,
State of Texas, City of Lubbock and Director of Aviation of the City of Lubbock.
6. If lessor, acting in good faith, finds termination of the rights, privileges and interests of lessee acquired under
this lease to be necessary to secure federal financial aid
for the development of the Airport, or further development or promotion of aeronautical operations thereon.
. In the event the hangar herein leased is damaged by fire or other accidental cause during the term of this Agreement so as to become
totally or partially unusable for purposes herein permitted, Lessor
shall have the option to restore the structure to its former condition. If Lessor exercises its option to restore the hangar, lessor shall
proceed with due diligence. If the damage is so extensive as to practically amount to the total destruction of the utility of the hangar for manufacturing purposes, Lessee's obligation to pay rent hereunder
shall abate for the time and to the extent that the hangar has been rendered unusable. Should Lessor not exercise its option to restore the structure, this Lease shall terminate, such termination to be effective
on the date of damage by fire or other accidental cause, and the rent
shall be apportioned to that date.
Within ten (10) days following the date of expiration or termination of this Agreement, the lessee shall, as required by the
Lessor, vacate said hangar, remove all property of Lessee, and restore the hangar to as good a condition on such date of expiration or
termination as when received, ordinary wear and tear excepted; provided,
however, .that Lessee's right to remove its property from the hangar upon expiration or tennination is subject to the condition that Lessee has
paid in full all amounts due lessor under this Agreement. If the Lessee shall fail or neglect to restor~ the hangar within ten (10) days of said
expiration or termination, then at the option of Lessor, said property of the lessee shall either become the property of the Lessor without
compensation therefor or the Lessor may restore the hangar at the
expense of the Lessee, and no claim for damages against the Lessor or
its officers, agents or employees shall be created or made as a result of either action. ·
ARTICLE V
Notices to the Lessor required or appropriate under this lease shall b.e deemed sufficient if in writing and mailed by registered mail
with postage prepaid to the Director of Aviation, Lubbock International
Airport, Route 3, Box 201, Lubbock, Texas 79401.
Notices to the lessee required or appropriate under this Lease shall be deemed sufficient if in writing and mailed by registered mail
with postage prepaid to Lessee at its address on file with the Director of Aviation of the Lessor.
October 10, 1991
Page 720
Should lessor institute legal action to collect rentals due under this lease Agreement or damages for breach of any covenant .made herein,
a reasonable sum shall be added to the amount of recovery for attorneys' fees together with all costs of court.
Both parties hereby agree that this instrument constitutes the
leases and contracts between the parties which pertain to the property final agreement of the parties and that all other previous agreements, , .. ··
described herein are hereby declared null and void.
EXECUTED this the 10th day of October, 1991.
. LESSOR: LESSEE: CITY OF LUBBOCK SWETECH, INC.
. BY:/s/ B. C, McMinn B. C. McMINN, MAYOR BY:/s/ Charles Sweeny Charles Sweeny, President
ATTEST: ATTEST:
/st Ranette Boyd Ranette Boyd, City Secretary Secretary
APPROVED AS TO CONTENT:
/s/ Bern E. Case Bern E. Case, Director of Aviation
APPROVED AS TO FORM:
Isl Harold Willard Harold Willard, Assistant City Attorney
Swetech, Inc. is an Agricultural Research Firm that
works closely with the Agricultural Department at
Texas Tech to develop nutritional food supplements
for livestock. This Agreement will allow Swetech,
Inc. to occupy a hangar on the east ramp known as
the old Burlington Hangar. Prior to Swetech's occupancy, the City is obligated to remove asbestos
contained in the building. The City. through a contractor, is rapidly proceeding with the process
to prepare the building for Swetech. The building will be used for mixing their supplement and as a base for distribution.
The term of this Lease is from September 1, 1991
through August 31, 1992, and the monthly rent will
be $625. The Airport Board approved the Agreement
in their June. 1991 meeting and recommended Council
approval.
l ·
Motion was made by Councilwoman Baker, seconded by
Councilman Phillips to authorize Resolution #3724 as I recommended by Staff. Motion carried: 6 Yeas; 0 · Nays. ~
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91-50B-721-622
(21.)
October 10, 1991
Page 721
Consider Resolution #3725 authorizing the Mayor to sjgn a grant application with the Texas Forest
Services,
RESOLUTION #3725
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized
and directed to execute for and on behalf of the City of Lubbock a Grant · Application and related documents for Small Business Administration National Tree Planting Program administered by the Texas Forest Service
on a cost-sharing basis, attached herewith, which shall be spread upon
the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully
copied herein in detail.
Passed by the City Council this 10th day of October, 1991.
/s/ B. C. McMinn B. C. McMINN, MAYOR
ATTEST:
Isl Ranette Boyd Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
Isl Lee Osborn
Lee Osborn, Director of Parks &
Recreation
APPROVED AS TO FORM:
Isl Dennis W, McGill Dennis W. McGill, Trial Attorney
A copy of the Small Business Administration National Tree Planting
Program Grant Application is filed with Resolution No. 3725.
Keep Lubbock Beautiful, Inc. is seeking funds to implement an Urban Reforestation Project within the
City of Lubbock, and in their grant proposal
requested $19,800 from the Small Business Administration. A local match of $19,200 is
provided by the City of Lubbock through personnel
salary, fringe benefits, equipment, planting and staking supplies, mulch, and hardware for the
installation of a drip irrigation system.
SBA funds will provide for the planting and maintenance of approximately 125 trees throughout
six park sites in the City of Lubbock which include George Dupree, Jan Jennings, Willie Lusk, Mae
·Simmons, Preston Smith, and C.B. Berry. Each park
will receive approximately 20 trees and average
caliper of the trees will be 2-1/2" to 3" with an average height of 8' to 12'.
Trees will be planted and cared for by Parks and Recreation Staff, supplemental water will be
provided during the first two years, and trees will
be fertilized twice yearly as part of the park fertilization program.
October 10, 1991
Page 722
91-50B-722-623
(22,)
The Keep Lubbock Beautiful Advisory Board will help
promote the Urban Reforestation Project. Board members will recruit media involvement in a publicity campaign aimed at local businesses to
donate trees to enhance the project. Board members will also promote the project at civic club and neighborhood group meetings.
The purpose of the Small Business Administration
National Tree Planting Program Gr.ant is to plant
trees on land owned or controlled by the State or a local government by obtaining services and supplies
from the small business owners. Funding is provided
by the Small Business Administration--Tree Planting
Grants. The Texas Forest Service has been
designated by Governor Ann Richards to administer this program in Texas.
Major provisions of the grant are:
(A) Grants require a Resolution from the
local governing body committing to providing its cost share of the
project as described in the grant
application.
(B) All agreements must be fully
executed within a period of 45 days
after the date of award.
(C) The Texas Urban Forestry Council
Grants Committee is required to
provide the State Forester a list of prioritized applications with
recommended funding levels. The Texas Forest Service.wt11 execute
all necessary agreements. Funds for
individual grants will not be
released until all required
_agreements have been executed.
Motion was made by Councilwoman Baker. seconded by
Mayor Pro Tern Patterson to authorize Resolution #3725 as recommended by Staff. Motion carried: 6 Yeas; 0 Nays.
Consider Resolution #3726 authorizing acceptance of
water and sewer improvements for Lots 95-126,
Preston Hills Addition.
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October 10, 1991
Page 723
RESOLUTION #3726
A RESOLUTION ACCEPTING WATER AND SEWER SYSTEM IMPROVEMENTS FOR
LOTS 95 THROUGH 126, PRESTON HILLS ADDITION TO THE CITY OF LUBBOCK,
LUBBOCK COUNTY, TEXAS.
WHEREAS, the developer of Lots 95 through 126, Preston Hills
Addition has complied with the provision of Article IV, Chapter 28 of
the Code of Ordinances of the City of Lubbock, by providing the water
and sewer improvements for said Addition in accordance with paragraph 156 of said Chapter 28; and
WHEREAS, the total utility cost to the developer is $31,129.74
with the improvements constructed by U.C.A. having a value of $17,732.47
as determined by the unit prices established by said Chapter 28,
$11,348.96 transferred for adjacent line costs, and $2,048.31 cash paid
to the City, with Lubbock Land Company, the developer to receive a refund of $6,913.40 in accordance with Chapter 28 of the Code of
Ordinances of the City of Lubbock and a refund of deposit in the amount
of $0.00; and ·
WHEREAS, the construction of the said water and sewer improvements
was performed under the supervision of the Water Utilities Engineer and
completed in accordance with the City of Lubbock's plans and specifications; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1. THAT the improvements be and the same are hereby accepted as an integral part of the water and sewer system of the City
of Lubbock.
SECTION 2. THAT the refundable cost in the amount of $6,913.40 be
made in accordance with said Chapter 28.
SECTION 3. THAT a refund of deposit be made in the amount of
$0.00.
SECTION 4. THAT this Resolution shall take effect and be in force from and after is passage.
Passed by the City Council this 10th day of October, 1991.
ATTEST:
/s/ Ranette Boyd Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
/sl Wilford D. Watson Wilford D. Watson, Chief Water
Utilitfes Engineer
APPROVED AS TO FORM:
Isl J. Worth Fullingim
J. Worth Fullingim, Assistant
City Attorney .
Isl B, c, McMinn B. C. McMINN, MAYOR
October 10. 1991 Page 724
91-50B-724-624
(23.}
This 1s a routine acceptance of water and sewer improvements constructed in accordance with the
subdivision regulations. The total cost of the improvements is $31,129.74 including value of
construction costs of $17,732.47, $11,348.96
transferred for adjacent line costs and $2,048.31
cash paid to the City. Lubbock Land Company, the Developer, will receive a refund of $6,913.40 in
accordance with Chapter 28 of the Code of the City of Lubbock. There is no refund of deposit.
Staff recommended acceptance of these improvements.
Motion was made by Mayor Pro Tern Patterson, seconded
by Councilman Phillips to authorize Resolution #3726
as recommended by Staff. Motion carried: 6 Yeas; 0
Nays.
Consider Resolution #3727 authorizing acceptance of
water jmprovements for Tract I. Kings Gate Addition.
RESOLUTION #3727
A RESOLUTION ACCEPTING WATER AND SEWER SYSTEM IMPROVEMENTS FOR
TRACT I, KINGS GATE ADDITION TO THE CITY OF LUBBOCK, LUBBOCK COUNTY,
TEXAS.
WHEREAS, the developer of Tract I, Kings Gate Addition has
complied with the provision of Article IV, Chapter 28 of the Code of Ordinances of the City of Lubbock, by providing the water and sewer
improvements for said Addition in accordance with paragraph 156 of said Chapter 28; and
WHEREAS, the total utility cost to the developer is $4,134.52 with the improvements constructed by Craft Construction having a value of $3,727.20 as determined by the unit prices established by said Chapter
28, and $407.32 cash paid to the City, with FNB (Lubbock}, the developer to receive a refund of $2,473.34 in accordance with Chapter 28 of the
Code of Ordinances of the City of Lubbock and a refund of deposit in the
amount of $0.00; and
WHEREAS, the construction of the said water and sewer improvements was performed under the supervision of the Water Utilities Engineer and
completed in accordance with the City of Lubbock's plans and specifications; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1. THAT the improvements be and the same are hereby
accepted as an integral part of the water and sewer system of the City
of Lubbock.
SECTION 2. THAT the refundable cost in the amount of ·$2,473.34 be
made in accordance with said Chapter 28.
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October 10, 1991
Page 725
SECTION 3. THAT a refund of deposit be made in the amount of
$0.00.
SECTION 4. THAT this Resolution shall take effect and be in force
from and after is passage.
Passed by the City Council this 10th day of October, 1991.
/s/ B. C. McMjnn B. C. McMINN, MAYOR
ATTEST:
Isl Ranette Boyd Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
/s/ Wilford D. Watson Wilford D. Watson, Chief Water Utilities Engineer
APPROVED AS TO FORM:
Isl J. Worth Fulljnqim
J. Worth Fullingim, Assistant
City Attorney
91-50B-725-625
(24.)
This is a routine acceptance of water improvements
constructed in accordance with the subdivision
regulations. The total cost of the improvements is
$4,134.52 including $3,727.20 in construction costs
and $407.32 paid to the City. The developer, FNB
(Lubbock) will receive a refund of $2,473.34 in
accordance with Chapter 28 of the Code of the City
of Lubbock. There is no refund of deposit.
Staff recommended acceptance of these improvements.
Motion was made by Mayor Pro Tern Patterson, seconded
by Councilman Phillips to authorize Resolution #3727
as recommended by Staff. Motion carried: 6 Yeas; 0
Nays.
RESOLUTION #3728
A RESOLUTION by the City Council of the City of Lubbock, Texas, approving and authorizing publication of notice of intention to issue
certiffcates of obligation. .
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) constructing improvements and extensions to the City's Wastewater Treatment System, to wit:
replacement of an existing effluent pipeline and (ii) professional services rendered in connection therewith; and
October IO, 1991
Page 726
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; now, therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS:
Section I: That the City Secretary is hereby authorized and
directed to cause notice to be published of this Council's intention to r·.-· issue certificates of obligation in the principal amount not to exceed
$1,655,000 for the purpose of paying contractual obligations to be
incurred for (i) constructing improvements and extensions to the City's
Wastewater Treatment System, to wit: replacement of an existing effluent
pipeline 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 net revenues of the City's Sewer System. The
notice hereby approved and authorized to be given shall read substantially in the form and content of Exhibit A hereto attached and incorporated herein by reference as a part of this resolution for all
purposes.
Section 2: That such notice 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.
PASSED AND APPROVED, this the 10th day of October, 1991.
/s/ B. C. McMinn B. C. McMinn, Mayor
ATTEST:
Isl Ranette Boyd Ranette Boyd, City Secretary
NOTICE OF INTENTION TO ISSUE
CITY OF LUBBOCK. TEXAS, CERTIFICATES OF OBLIGATION
NOTICE IS HEREBY GIVEN that the City Council of the City of
Lubbock, Texas, will convene at.its regular meeting place in the City
Hall of Lubbock, Texas, at 9:00 o'clock A.M. on the 14th day of
November, 1991, 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 ONE MILLION SIX HUNDRED FIFTY-FIVE THOUSAND DOLLARS ($1,655,000) for the purpose of paying contractual
obligations to be incurred for (i) the construction of improvements and
extensions to the City's Wastewater Treatment System, to wit: replacement of an existing effluent pipeline, and (11) professional
services rendered in connection therewith, such certificates to be
payable from ad valorem taxes and a lien on and pledge of the net revenues derived from the operation of the City's Sewer System. The Certifi'cates 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.
Isl Ranette Boyd
Ranette Boyd, City Secretary
City of Lubbock, Texas
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October 10, 1991 Page 727.
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 10th day of October, 1991, the City Council of the City of Lubbock, Texas, convened 1n regular session at its regular
meeting place in the City Hall of said City; the duly constituted members of the Council being as follows:
B. C. McMinn T. J. Patterson
Bill Maloy
Gary D. Phillips
Joan Baker
Maggie Trejo
M. J. Aderton
Mayor
Mayor Pro-Tem
Council member
Council member Counc i 1 member
Council member Council member
all of said persons were present at said meeting, except the following: Bill Maloy. 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 notice of intention to issue
certificates of obligation."
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 Councilmember Joan Baker and seconded by Councilmember
Maggie Trejo the resolution was finally passed and adopted by the
Council by the following vote:
.§. voted "For" Q voted "Against" Q abstained
all as shown in the official Minutes of the Council for the meeting held
on the aforesaid date.
2. That the attached resolution 1s 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 the City on the date
of the aforesaid meeting are those persons shown above and, according to
the records of my office, each member of the Council was given actual notice of time, place and purpose of the meeting and had actual notice that the matter would be considered; and that said meeting, and
deliberation of the aforesaid public business, was open to the public
and written notice of said meeting, including the subject of the
entitled resolution, was posted and given in advance thereof in
compliance with the provisions of Article 6252-17, Section 3A, V.A.T.C.S.
IN ~ITNESS WHEREOF, I have hereunto signed my name officially and affixed the seal of said City, this the 10th day of October, 1991.
Isl Ranette Boyd Ranette Boyd, City Secretary
City of Lubbock, Texas
In the Spring of 1991, the City Council authorized
Staff to proceed with the financing a $50 million Water Reclamation System Improvement Program through
the State Revolving Loan Fund, to be implemented
over a three-year period and financed.
October 10, 1991 Page 728 ·
This Resolution initiates the first segment of the
financing and the Certificates of Obligation will be issued to the Water Development Board and funds will be received on a draw-down basis, as needed.
The initial part process is publication of Notice of .-
Intent to Issue the Certificates of Obligation. The
amount of this segment of the financing is r···· $1,655,000, and the interest rate is 5.5%.
91-508-728-626
(26.)
Staff recommended approval of the Resolution.
Motion was made by Councilwoman Baker, seconded by Councilwoman Trejo to authorize Resolution #3728 as
recommended by Staff. Motion carried: 6 Yeas; 0
Nays.
BID #11570--LP&L Utility Collectjons Renovations. and authorize same {Building Services).
RESOLUTION #3729
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a
Contract by and between the City of Lubbock and Pharr Construction Company for LP&L Utility Collections office renovations, attached
herewith. which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part
of this Resolution as if fully copied herein in detail.
Passed by the City Council this 10th day of October, 1991.
ATTEST:
Isl Ranet'te Boyd Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
Isl Gene Eads Gene Eads, Purchasing Manager
APPROVED AS TO FORM:
/s/ Harold Willard Harold Willard, Assistant City
Attorney
/s/ B. c. McMinn B. C. McMINN, MAYOR
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STATE OF TEXAS
·coUNTY OF LUBBOCK
CONTRACT
October 10, 1991 Page 729
Tl-lIS AGREEMENT. made and entered into this 10th day of October, 1991 by and between the City of Lubbock, County of Lubbock, State of
Texas, acting by and through B.C. McMinn, Mayor, thereunto authorized to
do so, hereinafter referred to as OWNER, and Pharr Construction Company
of the City of Lubbock, County of Lubbock, and the State of Texas,
hereinafter termed CONTRACTOR.
WITNESSETH: That for and in consideration of the payments and agreements hereinafter mentioned, to be made and performed by the OWNER
and under the conditions expressed in the bond bearing even date herewith (if any) the CONTRACTOR hereby agrees with OWNER to commence
and complete the construction of certain improvements described as
follows:
BID NO. 11570--LP&L Utility Collection Renovations (Building Services)
in the amount of $63,981.00
and all extra work in connection therewith, under the terms as stated in
the contract documents and at his (or their) own proper cost and expense
to furnish all materials, supplies, machinery, equipment, tools,
superintendence, labor, insurance and other accessories and services necessary to complete the said construction in accordance with the
contract documents as defined in the General Condition of Agreement.
The CONTRACTOR hereby agrees to commence work within ten days
after the date written notice to do so shall have been given to him and to substantially complete same within the time specified in the contract documents.
The OWNER agrees to pay the CONTRACTOR in current funds for the
performance of the contract in accordance with the proposal submitted
therefore, subject to additions and deductions, as provided in the contract documents and to make payment on account thereof as provided
therein.
IN WITNESS WHEREOF, the parties to these presents have executed
this agreement in Lubbock, Lubbock County, Texas in the year and day
first above written.
ATTEST:
/s/ Ranette Boyd Secretary
CITY OF LUBBOCK, TEXAS (OWNER)
Isl B. c. McMinn Mayor
APPROVED AS TO CONTENT: APPROVED AS TO FORM:
ATTEST:
Secretary
Pharr Construction Company, Inc.
CONTRACTOR
By: TITLE: ____ _
COMPLETE ADDRESS: Pharr Construction Company, Inc. P.O. Box 2791 Lubbock, Texas 79408
Motion was made by Mayor Pro Tern Patterson, seconded
by Councilwoman Baker to authorize Resolution #3729 as recommended by Staff. Motion carried: 6 Yeas; 0 Nays.
.October 10, 1991
Page 730
91-508-730-627 {27.) BID #11516~-water Treatment Plant 1mprovements--. Contract I. and authorize same {Water Utilities).
RESOLUTION #3730
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
' THAT the Mayor of the City of Lubbock BE and is hereby authorized
and directed to execute for and on. behalf of the City of Lubbock a Contract by and between the City of Lubbock and Red River Construction
Company for Water Treatment Plant improvements -Contract I, attached
herewith, which shall be spread upon the minutes of the Council and as
spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail •.
Passed by the City Council this 10th day of October• 1991.
ATTEST:
/s/.Ranette Boyd Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
Isl Gene Eads Gene Eads, Purchasing Manager
APPROVED AS TO FORM:
/s/ Harold Willard . Harold Willard, Assistant City
Attorney
STATE OF TEXAS
COUNTY OF LUBBOCK
/s/ B. C. McMinn
B. C. McMINN, MAYOR
CONTRACT
THIS AGREEMENT, made and entered into this 10th day of October, 1991 by and between the City of Lubbock, County of Lubbock, State of
Texas, acting by and through B.C. McMinn, Mayor, thereunto authorized to do so, hereinafter referred to as OWNER, and Red River Construction
Company of the City of Dallas, County of Dallas, and the State of Texas,
hereinafter termed CONTRACTOR,
WITNESSETH: That for and in consideration of the payments and
agreements hereinafter mentioned, to be made and performed by the OWNER
and under the conditions expressed in the bond bearing even date
herewith (if any) the CONTRACTOR hereby agrees with OWNER to commence
and complete the construction of certain improvements described as
follows:
BID NO. 11516--Water Treatment Plant Improvements Contract I (Water
Utilities) in the amount of $4,330,000.00
and all extra work in connection therewith, under the terms as stated in the contract documents and at his (or their) own proper cost and expense
to furnish all materials, supplies,-machinery, equipment, tools, superintendence, labor, insurance and other accessories and services
necessary·to complete the said construction in accordance with the
contract documents as defined in the General Condition of Agreement.
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October 10, 1991
Page 731
The CONTRACTOR hereby agrees to commence work within ten days
after the date written notice to do so shall have been given to him and
to substantially complete same within the time specified in the contract documents.
The OWNER agrees to pay the CONTRACTOR in current funds for the
performance of the contract in accordance with the proposal submitted
therefore, subject to additions and deductions, as provided in the
contract documents and to make payment on account thereof as provided therein.
IN WITNESS WHEREOF, the parties to these presents have executed this agreement in Lubbock, Lubbock County, Texas in the year and day
first above written.
ATTEST:
/sl Ranette Boyd Secretary
CITY OF LUBBOCK, TEXAS (OWNER)
/s/ B. c. McMinn Mayor
APPROVED AS TO CONTENT: APPROVED AS TO FORM:
ATTEST:
Secretary
Red River Construction Company CONTRACTOR
By: TITLE: ____ _
COMPLETE ADDRESS: Red River Construction Company
13725 Omega Road
91-50B-731-628 (28.,) .
Dallas, Texas 75244
Motton was made by Mayor Pro Tem Patterson, seconded
by Councilwoman Baker to authorize Resolution #3730 as recommended by Staff. Motion carried: 6 Yeas; 0
Nays.
BID #11565--Rehab of Digester #8 Roof. and authorjze
same {Water Reclamation).
October 10, 1991 Page 732 •
RESOLUTION #3731
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized
and directed to execute for and on behalf of the City of Lubbock a
Contract by and between the City of Lubbock and Da 11 as Uren thane r .
Contractors, Inc. for Rehab of Digester #8 Roof, attached herewith,
which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this
Resolution as if fully copied herein in detail.
Passed by the City Council this 10th day of October, 1991.
ATTEST:
Isl Ranette Boyd Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
/s/ Gene Eads Gene Eads, Purchasing Manager
APPROVED AS TO FORM:
Isl Harold Willard
Harold Willard, Assistant City Attorney
STATE OF TEXAS
COUNTY OF LUBBOCK
Isl B, C. McMinn B. C. McMINN, MAYOR
CONTRACT
THIS AGREEMENT, made and entered into this 10th day of October,·
1991 by and between the City of Lubbock, County of Lubbock, State of
Texas, acting by and through B.C. McMinn, Mayor, thereunto authorized to
do so, hereinafter referred to as OWNER, and Dallas Urenthane
Contractors, Inc. of the City of Forney, County of Dallas, and the State of Texas, hereinafter termed CONTRACTOR.
WITNESSETH: That for and in consideration of the payments and
agreements hereinafter mentioned, to be made and performed by the OWNER
and under the conditions expressed in the bond bearing even date herewith (if any) the CONTRACTOR hereby agrees with OWNER to commence
and complete the construction of certain improvements described as follows:
BID NO. 11565--Rehab of Degester #8 Roof (Water Reclamation) in the
amount ~f $18,744.00
l
and all extra work in connection therewith, under the terms as stated in L. the contract documents and at his (or their) own proper cost and expense to furnish all materials, supplies, machinery, equipment, tools, superintendence, labor, insurance and other accessories and services
necessary to complete the said construction in accordance with the
contract documents as defined in the General Condition of Agreement.
The CONTRACTOR hereby agrees to commence work within ten days
after the date written notice to do so shall have been given to him and to substantially complete same within the time specified in the contract documents.
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October 10, 1991
Page·733
The OWNER agrees to pay the CONTRACTOR in current funds for the
performance of the contract in accordance with the proposal submitted
therefore, subject to additions and deductions, as provided in the
contract documents and to make payment on account thereof as provided therein.
IN WITNESS WHEREOF, the parties to these presents have executed this agreement in Lubbock, Lubbock County, Texas in the year and day
first above written.
ATTEST:
Isl Ranette Boyd Secretary
CITY OF LUBBOCK, TEXAS {OWNER)
Isl B. c. McMinn Mayor
APPROVED AS TO CONTENT: APPROVED AS TO FORM:
ATTEST:
Secretary
Dallas Urenthane Contractors, Inc. CONTRACTOR
By:
TITLE:
COMPLETE ADDRESS: Dallas Urenthane Contractors, Inc.
406 Ranch Road
91-50B-733-629
(29.)
91-508-733-630 (30.)
91-50B-733-631
(31.)
Forney, Texas 75126
Motion was made by Mayor Pro Tem Patterson, seconded by Councilwoman Baker to authorize Resolution #3731
as recommended by Staff. Motion carried: 6 Yeas; 0
Nays.
BID #11402--Yideo Pipe Inspection System {Fleet
Management).
Cues, Inc., Orlando, FL--1 ea. Sewer TV Inspection
System Spec 416.l; 1 ea. Step Van, one-ton Spec
416AB.
Motion was made by Mayor Pro Tem Patterson, seconded
by Councilwoman Baker to authorize low bid meeting specifications. Motion carried: 6 Yeas; o Nays.
BID #11599--TLETS II Software Interface {Information Services}.
US West Public Safety Group, Plano
Motton was made by Mayor Pro Tem Patterson, seconded
by Councilwoman Baker to authorize low bid meeting
specifications. Motion carried: 6 Yeas; 0 Nays.
BID #11511--Roofinq projects for various City buildings. and authorize same (Building Services).
October 10, 1991 Page 734
RESOLUTION #3732
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized
and directed to execute for and on behalf of the City of Lubbock a
Contract by and between the City of Lubbock and Lydick-Hooks Roofing
Company for various roofing projects for City buildings, attached I herewith, which shall be spread upon the minutes of the Counci.l and as
spread upon the minutes of this Council shall constitute and be a part
of this Resolution as if fully copied herein in detail.
Passed by the City Council this 10th day of October, 1991.
ATTEST:
Isl Ranette Boyd Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
Isl Gene Eads
Gene Eads, Purchasing Manager
APPROVED AS TO FORM:
/s/ Harold Willard Harold Willard, Assistant City Attorney
STATE OF TEXAS
COUNTY OF LUBBOCK
/s/ 8. C. McMinn
8. C. McMINN, MAYOR
CONTRACT
THIS AGREEMENT, made and entered into this 10th day of October, 1991 by and between the City of Lubbock, County of Lubbock, State of
Texas, acting by and through B.C. McMinn, Mayor, thereunto authorized to
do so, hereinafter referred to as OWNER, and Lydick-Hooks Roofing Company of the City of Lubbock, ·County of Lubbock, and the State of
Texas, hereinafter termed CONTRACTOR.
WITNESSETH: That for and in consideration of the payments and
agreements hereinafter mentioned, to be made and performed by the OWNER
and under the conditions expressed in the bond bearing even date herewith (if any) the CONTRACTOR hereby agrees with OWNER to commence
and complete the construction of certain improvements described as
follows:
BID NO. 11511--Roofing Projects for Various City Buildings (Building
Service_s) in the amount of $24,178.00
and all extra work in connection therewith, under the terms as stated in I
the contract documents and at his (or their) own proper cost and expense I. to furnish all materials, supplies, machinery, equipment, tools, superintendence, labor, insurance and other accessories and services
necessary to complete the said construction in accordance with the contract documents as defined in the General Condition of Agreement.
The CONTRACTOR hereby agrees to commence work within ten days after the date written notice to do so shall have been given to him and
to substantially complete same within the time specified in the contract
documents.
October 10, 1991
Page 735
The OWNER agrees to pay the CONTRACTOR in current funds for the performance of the contract in accordance with the proposal submitted therefore, subject to additions and deductions, as provided in the
contract documents and to make payment on account thereof as provided
therein.
IN WITNESS WHEREOF, the parties to these presents have executed this agreement 1n Lubbock, Lubbock County, Texas in the year and day first above written.
ATTEST:
Isl Ranette Boyd Secretary
CITY OF LUBBOCK, TEXAS (OWNER)
Isl B. C, McMinn Mayor
APPROVED AS TO CONTENT: APPROVED AS TO FORM:
ATTEST:
Secretary
COMPLETE ADDRESS:
91-SOB-735-632
(32.)
Lydick-Hooks Roofing Company
CONTRACTOR
By:
TITLE:
Lydick-Hooks Roofing Company
P.O. Box 2605 Lubbock, Texas 79408
Lydick-Hooks Roofing Co.--C1vic Center Kitchen; Holly Avenue Pl ant Maintenance Building.
Motion was made by Mayor Pro Tern Patterson, seconded
by Councilwoman Baker to authorize Resolution #3732
as recommended by Staff. Motion carried: 6 Yeas; O
Nays.
BIO #11567--Gateway Plaza--Phase I, and authorize
same (Parks and Recreation),
October 10, 1991
Page 736
RESOLUTION #3733
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a
Con.tract by and between the City of Lubbock and Pharr Construction
Company for paving at the Gateway Plaza -Phase I, attached herewith, r·
which shall be spread upon the minutes of the Council and as spread upon
the minutes of this Council shall constitute and be a part of this
Resolution as if fully copied herein in detail.
Passed by the City Council this 10th day of October, 1991.
ATTEST:
/st Ranette Boyd Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
Is/ Gene Eads
Gene Eads, Purchasing Manager
APPROVED AS TO FORM:
/s/ Jean E. Shotts, Jr. Jean E. Shotts, Jr .. , Assistant Trial Attorney
STATE OF TEXAS
COUNTY OF LUBBOCK
CONTRACT
Isl B. c. McMinn B. C. McMINN, MAYOR
THIS AGREEMENT, made and entered into this 10th day of October, 1991 by a_nd between the City of Lubbock, County of Lubbock, State of Texas, acting by and through 8.C. McMinn, Mayor, thereunto authorized to
do so, hereinafter referred to as OWNER, and Pharr Construction Company of the City of Lubbock, County of Lubbock, and the State of Texas,
hereinafter termed CONTRACTOR.
WITNESSETH: That for and in consideration of the payments and
agreements hereinafter mentioned, to be made and performed by the OWNER
and under the conditions expressed in the bond bearing even date
herewith (if any) the CONTRACTOR hereby agrees with OWNER to commence and complete the construction of certain improvements described as
follows:
BID NO. 11567--Gateway Plaza--Phase I (Parks and Recreation) in the
amount ~f $38,000.00
and all extra work in connection therewith, under the terms as stated in the contract documents and at his (or their) own proper cost and expense
to furnish all materials, supplies, machinery, equipment, tools, superintendence, labor, insurance and other accessories and services necessary to complete the said construction in accordance with the
contract documents as defined in the General Condition of Agreement.
The CONTRACTOR hereby agrees to commence work within ten days
after the date written notice to do so shall have been given to him and to substantially complete same with.in the time specified in the contract
documents.
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October 10, 1991 Page 737
The OWNER agrees to pay the CONTRACTOR in current funds for the performance· of the contract in accordance with the proposal submitted
therefore, subject to additions and deductions, as provided in the contract documents and to make payment on account thereof as provided
therein.
IN WITNESS WHEREOF, the parties to these presents have executed
this agreement in Lubbock, Lubbock County, Texas in the year and day
first above written.
ATTEST:
/s/ Ranette Boyd
Secretary
CITY OF LUBBOCK, TEXAS (OWNER)
/s/ B, c. McMinn
Mayor
APPROVED AS TO CONTENT: APPROVED AS TO FORM:
ATTEST:
Secretary
Pharr Construction Company, Inc.
CONTRACTOR
By:
TITLE: ------
COMPLETE ADDRESS: Pharr Construction Company, Inc.
91-SOB-737-633 (33.)
P.O. Box 2791
Lubbock, Texas 79408
Motion was made by Mayor Pro Tem Patterson, seconded
by Councilwoman Baker to authorize Resolution #3733 as recommended by Staff. Motion carried: 6 Yeas; O
Nays.
BID #11568--LP&l Substation Renovations, and
authorize same (Building Services).
October 10, 1991 Page 738
RESOLUTION f/3734
BE IT RESOLVED1 BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized
and directed to execute for and on behalf of the City of Lubbock a Contract by and between the City of Lubbock and Danny Klein Construction
Company for LP&L Substation renovations, attached herewith, which shall l· be spread upon the minutes of the Council and as spread upon the minutes
of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail.
Passed by the City Council this 10th day of October, 1991.
ATTEST:
Isl Ranette Boyd
Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
Isl Gene Eads Gene Eads, Purchasing Manager
APPROVED AS TO FORM:
Isl Jean E, Shotts, Jr. Jean E. Shotts, Jr., Assistant Trial
Attorney
STATE OF TEXAS
COUNTY OF LUBBOCK
CONTRACT
Isl B. C. McMinn B. C. McMINN, MAYOR
THIS AGREEMENT, made and entered into this 10th day of October,
1991 by and between the City of Lubbock, County of Lubbock, State of Texas, acting by and through B.C. McMinn, Mayor, thereunto authorized to
do so, hereinafter referred to as OWNER, and Danny Klein Construction
Company of the City of Lubbock, ·county of Lubbock, and the State of
Texas, hereinafter termed CONTRACTOR.
WITNESSETH: That for and in consideration of the payments and
agreements hereinafter mentioned, to be made and performed by the OWNER and under the conditions expressed in the bond bearing even date
herewith (if any) the CONTRACTOR hereby agrees with OWNER to commence and complete the construction of certain improvements described as
follows:
BID NO. 11568--LP&L Substation Renovations {Building Services) in the
amount pf $14,897.00
and all extra work in connection therewith, under the terms as stated in the contract documents and at his {or their) own proper cost and expense
to furnish all materials, supplies, machinery, equipment, tools,
superintendence, labor, insurance and other accessories and services necessary to complete the said construction in accordance with the contract documents as defined in the General Condition of Agreement.
The CONTRACTOR hereby agrees to commence work within ten days
after the date written notice to do so shall have been given to him and to substantially complete same within the time specified in the contract
documents.
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October 10, 1991
Page 739
The OWNER agrees to pay the CONTRACTOR in current funds for the
performance of the contract in accordance with the proposal submitted
therefore, subject to additions and deductions, as provided in the contract documents and to,nake payment on account thereof as provided
therein.
IN WITNESS WHEREOF, the parties to these presents have executed
this agreement in Lubbock, Lubbock County, Texas in the year and day
first above written.
ATTEST:
/s/ Ranette Boyd
Secretary
CITY OF LUBBOCK, TEXAS (OWNER)
/s/ B. c. McMinn Mayor
APPROVED AS TO CONTENT: APPROVED AS TO FORM:
ATTEST:
Secretary
Danny Klein Construction
CONTRACTOR
By: TITLE: ____ _
COMPLETE ADDRESS: Danny Klein Construction Co.
4310 93rd Street
91-508-739-634
(13.)
91-50B-739-635
(14.)
Lubbock, Texas 79423
Motion was made by Mayor Pro Tern Patterson, seconded
by Councilwoman Baker to authorize Resolution 13734
as recommended by Staff. Motion carried: 6 Yeas; 0 Nays.
Hold a Public Hearing to consider the request of
Texland Petroleum for an Oil and Gas Drilling Permit
for a tract located approximately 2571 1 south of FM
2641 and 2580' west of North University in Section 2, Block 0-4. Designation of well is Texland CLU
~
Consider approval of an Oil and Gas Drilling Permit for Texland CLU 29-9.
Dub Bratcher appeared on behalf of Texland Petroleum to request an Oil and Gas Drilling Permit.
No one spoke in opposition. Mayor McMinn closed the hearing at 10:23 a.m.
Staff received an application on September 18, 1991
for a permit to drill the above described well. The storage site is proposed in conjunction with a tank battery approved by an existing permit.
October 10,. 1991
Page 740
According to Staff memo, the application is
substantially in order. The well 1s part of a secondary recovery field and has no production unit.
Texland proposes earth sludge pits and no
landscaping at the well site. The blow-out protector has a minimum rating of 3,000 psi.
Disposal of waste materials is proposed at a
Railroad Commission approved landfill in l.ubbock County. Access to the drill and storage site is proposed from University or FM 2641. Staff
recommended that access be required on farm property, specifically prohibiting traffic through
the Crest Hill Subdivision on Purdue, Newcomb,
Marlboro and North Boston.
SHORT TERM IMPACTS: Undeveloped townhome lots are approximately 200' south and the developed townhome
pads are approximately 550' south. The land is under mineral lease to Texland.
POTENTIAL LONG TERM IMPACTS: The land area surrounding and including this Lease is designated
as single-family on the 1986 Comprehensive Land Use Plan. Five or six wells are in the immediate area,
one located 1070' west southwest and one located 1438' east southeast. Staff recommended the
following conditions:.
RECOMMENDED PERMIT CONDITIONS:
1. No hydrocarbon lubricant (waste oil}
will be used to free-up the hole
during drilling until after the
first series of surface casing has been set to 350' or greater.
2. The permittee will require that a
first series of casing be set when
drilling reaches a depth of 350 to 400'. The permittee will notify the
Lubbock Office of Texas Railroad
Commission for the intended dates for casing the well.
3. The first, and if necessary, the second series of casing will be in compliance with applicable portions
of Rule 13 of the Texas Railroad Commission.
4.
5.
The permittee will require all personnel and service vehicles to
enter the site from FM 2641 or on
private property aligned with Regis
Street. No traffic will be
permitted through the Crest Hill
residential subdivision.
The permittee will meet all other
conditions of Section 14, Article VI
of the Lubbock Code and those specification indicated within the application of Texland Petroleum for
CLU #29-9.
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91-50B~741-636
(15.}
91-50B-741-637
(16.}
·October IO, 1991 Page 741
Motion was made by Councilman Aderton, seconded by Councilman Ph111 ips to approve request of Texland
Petroleum for an Oil and Gas Drilling Pennit for Texland CLU 29-9 with conditions recommended by
Staff. Motion carried: 6 Yeas; O Nays.
Hold a Public Hearing on the proposed Animal Control
Ordinance,
Consider Ordinance #9485--Amending Chapter 4 of the Code of Ordinances with regard to Animal Control.
ORDINANCE #9485
AN ORDINANCE AMENDING CHAPTER 4 OF THE CODE OF ORDINANCES OF THE
CITY OF LUBBOCK, TEXAS, WITH REGARD TO REGULATING THE KEEPING OF ANIMALS
WITHIN THE CITY OF LUBBOCK; PROVIDING A PENALTY; PROVIDING A SAVINGS
CLAUSE; AND PROVIDING FOR PUBLICATION.
Greg Garrison, Chainnan of the Board of Health, stated that approximately two years ago the City
Council instructed the Board to review current animal control laws because of unprovoked dog
attacks, and numerous stray cat complaints. He went on to advise that the current ordinance has had no
revisions since 1981 and is incomplete, as well as being out of compliance with state standards.
Mr. Garrison went on to say that a subcommittee consisting of Dr. George Jury, Chairman, Jim Northcut and Jose Ramirez, was appointed to review
the Ordinance and that input was sought from the
People for Ani_mal Welfare organization, Heart of the Plains Kennel Club, South Plains Obedience Training
Organization, and Lubbock Veterinarian Association.
According to Mr. Garrison, the Board of Health held
a Public Hearing on June 13, 1991. Approximately
600 citizens attended, 42 of whom presented
testimony. The Board of Health then considered and
passed a revised ordinance which addressed many of
the issues raised in the hearing. He advised that the proposed ordinance is the result of in depth
study and in his opinion, is a balanced ordinance
with no provisions injected by special interest
. groups. It also addresses the issue of responsible
pet ownership, which is not addressed in the present
ordinance.
At this point, Doug Goodman, Health Administrator advised that letters and calls regarding the
ordinance had been sought by the Staff, but that only two letters had been received. One voiced total support--especially for the section regarding
"dangerous animals"t and the other letter indicated support, but suggested two changes: 1) that the
dogs and cats of the shelter should be given only to
a chartered, non-profit animal welfare group, and 2) that animals owned by a pet shop or kennel should be
destroyed by a licensed veterinarian or given to the
animal control section. According to Mr. Goodman, the Subcommittee and Board discussed these
suggestions and concluded they were too restrictive to be included in the ordinance.
October 10, 1991 Page 742
Mr. Goodman then pointed out the 8 major changes to the current ordinances as follows:
-Expanded animal care section to include provisions prohibiting the sale of animals
too young; coloring baby chicks and ducks for Easter; causing animals to fight;
mutilating animals and transporting
unrestrained animals in the back of a
truck.
-Provision that cats protected against
rabies, wearing City tags and not being a nuisance, may run free in the City;
however, any cat, tagged or untagged, which creates a nuisance, may be picked
up.
-Provision that Animal Control Supervisor has the right to humanely dispose of all
animals received at the Shelter, such as by auction, destroying the animal or
offering it to a local humane group for
adoption.
-Adds a section which creates standards · for construction and operation of pet shops, kennels and grooming salons.
-Provision for registration of dangerous animals with the City; the posting of
signs warning citizens of presence of
dangerous animal on the premises; and
muzzling of dangerous animals not caged.
Provides for a formal hearing for animal complaints, and if the animal is found to be dangerous, the Health Administrator may
require one or more of the following
actions to be taken: ordering removal of the animal from the City; ordering the
destruction of the animal; spaying or
neutering the animal; ordering
registration of the animal with the City
including showing proof of $100,000
liability insurance.
-Mr. Goodman advised that the old ordinance contained a section regarding
"wild animals" and alluded to the question of some regarding the appropriateness of
removing a wild animal from the wild.
This section was updated to allow ownership of wild animals in the City
limits with inspection by the Animal Control Supervisor to ensure the proper
care of the animal and safety of the citizens; and further to ensure that the
animal does not create a nuisance.
-The section regarding beekeeping will
protect the citizens and will also support
the industry in Lubbock.
-Addition of a section to allow keeping of
Vietnamese Potbellied Pigs.
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October 10, 1991
Page 743
-Dog and cat license provisions will not change, but provisions were added for
licensing dangerous animals and guard
dogs. New permits will also be required
for kennels, pet shops and grooming
parlors and the cost of the permit will be
based on the amount of time estimated to
handle inspections and/or complaints related to the business. According to Mr.
Goodman, recommended fees for animal establishments will produce approximately
$2000 per year.
-Provision that impoundment fee be
reimbursed to the owner if the animal is sterilized within 30 days of impoundment.
Mr. Goodman advised of staff support for the
ordinance and that it can be enforced with existing
personnel. He recommended that owners of wild
animals, cats and bees be given ample time to register their animals and obtain permits before
making the law effective.
Speaking at the public hearing were:
Dr. Don Hegi, President of the South Plains Veterinary Medicine Association, expressed support
of the proposed ordinance with the exception of the
provisions for fees and licenses in Section 4-33(a), except for the license fee of $2.50 and the
dangerous animal fee of $100.
Debbie West, representative of PAWS, stated their
support of the proposed ordinance with the following exceptions:
-Section 4-(a) "Impoundment, Redemption
and Disposition"--PAWS requested provisions for mandatory spaying or
neutering of auctioned dogs and cats.
-Section 4-1 Addition of a definition for
"Animal Humane Group" to read: "An animal humane group is a chartered, non-profit
group operating within the corporate City
limits of Lubbock."
-Section 4-9 change from "Sale or Destruction of Impounded Animals" to "Sale
or Destruction of Impounded Livestock."
-Section regarding general design
standards for commercial pet shops and
grooming establishments--provide for
destruction of animals under this provision to be done by a licensed
veterinarian or such animals be released
to the animal control supervisor.
October 10, 1991 Page 744
Joe Bil 1 Rogers commented that he had spent 5 1/2
hours with Mr. Goodman and three I-hour and 45-
minute sessions with Dr. Overstreet, the Animal
Control Supervisor. Mr. Rogers stated his opinion that the public nuisance portion of the present
ordinance addresses everything that can cause
problems in the City of Lubbock, as the Health
Director may declare anything to be a public
nuisance that is a problem. Mr. Rogers went on to say that much of the ordinance is good, and in his
opinion it is important to have a good ordinance;
however, he questioned and/or opposed the following:
-The definition of and how determinations will be made regarding •wild animals".
-The section regarding mutilation of
animals.
-The section regarding sale of animals for
purposes of "tormenting other animals.•
-The requirement to obtain liability insurance in the amount of $100,000
suggesting this be changed to track State
law provision regarding dogs, to allow for proof of financial responsibility.
-The provision which makes it illegal for
anyone other than a licensed veterinarian to dock an animalJs tail.
-Suggested that an individual who has a
State Permit for a wild animal be exempted from the local wild animal permit
requirements.
Cecil Puryear expressed opposition to the proposed
ordinance.
Marshall Chumley, owner of All American Board and
Grooming, requested the following changes to the
proposed ordinance:
-Deletion of "but not including veterinary
facilities" from the portion entitled
"Animal Establishment".
-Addition of a requirement for
verification of facts given in a dangerous
animal complaint.
-Deletion of requirement for $100,000
liability insurance coverage for dangerous
animals.
-Provide for keeping of hogs on properties
annexed into the City.
-Deletion of all permit/license fees other
than for dog and cat licenses for rabies.
-Deletion of requirements regarding cleaning of surfaces that animals come in
contact with.
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91-SOB-745-638
{25.)
October 10, 1991
Page 745
-Deletion of Item 6 under General Design
Standards, Specifications and Operating Procedures for Animal Establishments--!. Construction and Maintenance of Physical
Facilities -A. Building.
Mr. Goodman responded that the issues mentioned by
those giving testimony had been fully addressed by
the Subcommittee and the Board of Health. He advised specifically regarding the insurance
requirements, that the proposed changes track the
State Law, and that Sanford Agency advised that the required coverage with the thirty-day cancellation clause is available. Mr. Goodman went on to address
the issue of hogs in annexed areas stating that annexed areas are grandfathered, and that the proposed ordinance has expanded provisions for
Vietnamese Potbellied Pigs.
Councilwoman Baker suggested that staff check with
the Planning Department on whether or not the keeping of animals in certain areas is permissible
and if so, that the ordinance be amended to allow
FFA projects, etc. under specific guidelines.
Mayor McMinn commented that the reason for addition
of fees is not to increase revenues for the City,
and Mr. Goodman agreed, stating that the licensing
procedure is a contract between the City and the citizen and reflects the citizen's agreement to
comply with City rules and regulations; it also gives the City some way of enforcing the provisions
of the ordinance.
Councilwoman Baker asked if Health Inspectors will
check for the required permits and Mr. Goodman stated that they will.
Further brief discussion followed and Mayor McMinn
closed the public hearing at 11:44 a.m.
Motion was made by Councilwoman Baker, seconded by
Mayor Pro Tern Patterson to approve Ordinance #9485 on first reading, with the understanding that Staff
review provisions regarding insurance, the keeping of hogs and other issues raised during the hearing in light of making revisions to accommodate the
object ions.
Councilman Aderton expressed opposition to taking
action on the ordinance until the issues raised in
the hearing have been addressed. Mayor McMinn
replied that the Council will only be considering
passage on first reading and that second reading will be delayed until the ordinance is fine tuned. He went on to say that the staff and citizens will
be working together before second reading is held.
Motion carried 6 Yeas; 0 Nays.
Hold an Executive Session to discuss pending
litigation (Planning}.
,October IO, 1991
Page 746
91-SOB-746-639
(34.)
91-SOB-746-640
(35.)
Lubbock Central Appraisal District
Consider Resolution #3735 nominating board members for the Lubbock Central Appraisal District.
RESOLUTION #3735
WHEREAS, there has been enacted in the State of Texas an Act relating to ad valorem taxation of property (S.B. 621), and this Act
applies to and is controlling on the City of Lubbock, Texas, as a taxing
unit; and
WHEREAS, there is created under the provisions of this Act, a Board of Directors to govern the Appraisal District established by the
Act. The City of Lubbock is desirous of .nominating candidates to be placed on the ballot for election to this Board of Directors upon the
next election as provided by this Act.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the following persons are nominated by the governing body of the City of Lubbock as candidates for positions on the Board of
Directors of the Appraisal District created for the County of Lubbock,
and that the names of these candidates be submitted to the Chief
Appraiser of the Appraisal District by the Mayor to be placed on the
ballot for election to such positions at the next election for such purpose.
Aubrey Faulkner W. B. Criswell
.Passed by the City Council this 10th day of October, 1991.
ATTEST:
Isl Ranette Boyd , Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
Isl J. Robert Massengale Robert Massengale, Assistant City Manager for Financial Services
APPROVED AS TO FORM:
Isl Donald G. Vandiver Donald G. Vandiver, First
Assistant City Attorney
Isl B. C. McMinn B. C. McMINN, MAYOR
In accordance with the Texas Property lax Code it is
necessary to elect board members for the Central Appraisal District every two years. The City
Council is required to submit nominees to the District prior to October 15 and must cast its 1,469
votes (of 5,000 votes) prior November 15. Of 5,000
total possible votes from all jurisdictions, the
City Council is eligible to submit 1,469 votes.
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October 10, 1991
Page 747
According to Staff memo, two years ago, the City
Council nominated all incumbent board members and
when Phil Pirkle resigned, Marlon Ribble was elected to replace him. All existing board members have indicated an interest in continuing to serve and
Staff is satisfied with the operation of the Central Appraisal District and recommended reappointment of existing members.
The Lubbock Independent School Board has nominated
Buddy Forbess, Marlon Ribble, and Leroy Montoya. Staff recommended nominating W.B. Criswell and
Aubrey Faulkner.
Motion was made by Councilman Phillips, seconded by
Councilman Aderton to nominate W.B. Criswell and Aubrey Faulkner to serve on the Lubbock Central
Appraisal District. Motion carried: 6 Yeas; 0 Nays.
There being no further business to come before Council, motion was made
by Councilwoman Baker, seconded by Councilwoman Trejo to adjourn the meeting at 12:39 p.m. Motion carried: 6 Yeas; o Nays.
,,,.,,,.,,•• , •,,
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~ C ·ti;,~ B. C. McM~Mayor
, ; { ATTEST:
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Read and approved this the 22nd day of October, 1991.
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B. C. McMin,Mayor
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RESOLUTION
Resolution No. 3797
January 23. 1992
Item ff.20
A RESOLUTION CANVASSING THE RETURNS ANO DECLARING THE RESULTS OF THE SPECIAL CITY ELECTION FOR AN ADDITIONAL SALES ANO USE TAX ANO FOR CHARTER
AMENDMENTS HELD THE 18TH DAY OF JANUARY. 1992.
BE IT REMEMBERED THAT on the 23rd day of January, 1992, the City
Council of the City of Lubbock met at 10:00 o'clock A .M •• at the regu-
1 ar meeting place of the City Council in the City of Lu66ock Municipal
Building, with the following members present, to-wit: ·
B. C. •PECK• HcHINN
MAGGIE TREJO
T. J. PATTERSON
"· J. •euo• ADERTON BILL MALOY
GARY PHILLIPS
I I JOAN BAKER
I ii· On motion of Maggie Trejo , seconded by ! . Bud Aderton , it is unanimously carried that the returns
i of the Special City Election held January 18, 1992, for the purpose of sub-mitting a proposal for additional sales and use tax for economic develop-. ment and property tax reduction and a proposal for amending the Charter of
1
1
:
1
the City of Lubbock to eliminate the Board of City Development for approval or rejection be opened and canvassed, and the results of the election be II declared therefrom; and said returns having been duly canvassed, it is
1: found that the vote upon the various propositions was as follows: ' ii
PROPOSITION
No. 1.
No. Z.
"The adoption of a sales and use tax within the city for the promotion and
development of new and expanded busi-ness enterprises at the rate of three-
eighths of one percent and the adoption
of an additional sales and use tax
within the city at the rate of one-
eighth of one percent to be used to reduce the property tax rate."
"SHALL the charter of the City of
Lubbock be amended by repealing and
thus deleting therefrom Chapter 3
pertaining to the Board of City
Development; including provisions for establishing membership, terms of
office, vacancies and appointments.
and appropriations for such board.n
FOR: 10,322 AGAINST: 13,997
FOR: 20,101 AGAINST: 3,908
No Text
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I I I TOTAL VOTES CAST: _2:;;..4,.._,-57,_.7 __ _ l ii And it further appearing that said election was duly held as provided
p by law; NOW THEREFORE:
11
" ;: IT IS HEREBY FOUND, DECLARED AND CERTIFIED BY THE CITY COUNCIL OF THE CITY
. i OF LUBBOCK:
ij I, i: I I
THAT a majority of the qualified voters of the City of Lubbock voting
in said election are 1n favor of Proposition Number(s) ---=2,__ ____ _ and therefore it is declared that Proposition Number(s) ___,2...._ ____ _
are approved by the qualified voters; and
THAT a majority of the qualified voters of the City of Lubbock voting
in said election are opposed to Proposition Number(s} 1
IJ and therefore it is declared that Proposition Number(s,,.)-"""1'-------I
I
are not approved by the qua 1 i fi ed voters.
!, !• PASSED, APPROVED AND ADOPTED ON MOTION OF Maggie Tre~o •
i: SECONDED BY Bud Aderton THIS 23rd DA OF JANUARY. 1992. H I! " COUNCIL MEMBERS VOTING AYE: B. C. McMinn, T. J. Patterson
ji ii Joan Baker • Gary Phillips I I:
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11 COUNCIL MEMBERS VOTING NAY:
Maggie Trejo, Bud Aderton,
None
Bill Malor
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.·{ !I ATTEST: \. ~ \~~
* * * * * * *
, !! ~:PROVED AS TO FO:\ r, • .
"i:t~W.JSiL~;~ !: Assistant City Attorney
' 1, j I DGV:da/AGENDA-Dl/1-92ELEC.RES
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R-1066
THE STATE OF TEXAS
COUNTY OF LUBBOCK
Before me TonYZI Hen rY a lllotary Public in and for Lubbock County, Texas on this day
personally appeared I, J , A u f ii I • Ac c o u O t Man a e: e C 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 has been published continuously for more than fifty-two weeks pri-
,...
or to the first insertion of this ... 1 .... e ..... r! ... a ... lL-0 ....... 0 ... t .... i..,c..,e.._ _____________________ _
--------,---,-----,---~·o, ________ t Lubbock County, Texas and the attached print-
ed copy of the I e E!. a I no t 1 c e i8 a true copy of the original and was printed in the Lubbock
Ava13:31g~Eio:~na~ ~h~fo~~1M '18Jes: __ n..._e .... c .._ ...... 2 .... a...,, .......... 1""'9'""9....,1 ____________ _
Account HanaE!er:
LUBBOCK AVALANCHE-JOURNAL
Southwestern Newspaper Corporation
FORMSS-10
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CERTIFICATE AS TQ TAX EXEMPTION
THE STATE OF TEXAS S s
COUNTY OF LUBBOCK S s
CITY OF LUBBOCK S
:r, the undersigned, Assistant City Manager for Financial
Services of the City of Lubbock, Texas, (the 11Issuer"), who with
other officers are charged with the responsibility of issuing and
delivering the "CITY OF LUBBOCK, TEXAS, TAX AND WATERWORKS SYSTEM (LIMITED PLEDGE} REVENUE CERTIFICATES OF OBLIGATI:ON, SERIES 1992",
dated August 15, 1992, in the principal amount of $7,565,000 (the
"Certificates"), DO HEREBY CERTIFY that, to the best of my
knowledge and belief, the following facts and estimates are
reasonable expectations relating to the issuance and sale of the
certificates and the use and expenditures of proceeds thereof.
Unless otherwise noted, capitalized terms herein shall have the
same meanings ascribed thereto in the ordinance authorizing the
issuance of the Certificates.
1. PUrpose of the Certificates.
The Certificates are being issued to finance the costs of
constructing extensions and improvements to the City's Waterworks
system in connection with construction of a Criminal Justice System
Psychiatric Facility, construction of a Solid Waste Disposal System
improvements, reimbursement for purchase of land in connection with
the Criminal Justice correctional Psychiatric Facility (the
"Project"), and to pay contracts for professional services.
2. source and Disbursement of Funds.
2.1 The Certificates were issued and delivered to the
purchasers thereof on the date hereof upon payment of the agreed
purchase price as follows:
PRINCIPAL AMOUNT--------------$7,565,000.00
ACCRUED INTEREST--------------29,076.33
PREMIUM----------------------60.316,70
TOTAL PURCHASE PRICE------$7,654,393,03
2.2 The amount received from the purchasers of the
Certificates representing accrued interest and premium, if any, was
deposited in the interest and sinking fund (the "Certificate Fund")
for the certificates to be used to pay the first interest payment
to become due on the Certificates on February 15, 1993.
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2.3 The balance of the amount received will be used
to pay certain costs of issuance relating to the
Certificates (estimated to be $40,999.00) and expended to pay costs of the Projects.
The Issuer acknowledges and understands that based
on the certifications and representations appearing in
paragraph ( 3) below, the amounts received from the
purchaser of the Certificates, pending the expenditure
thereof for authorized projects and purposes, may be
invested without restriction as to Yield for a temporary
period not to exceed three (3) years from the date of
this Certificate, and in the event any of such proceeds
of the Certificates shall remain unexpended on the third
anniversary date of this Certificate, any investment of
such proceeds after such anniversary date shall be
restricted to obligations or accounts that have a Yield
not in excess of the Yield of the certificates.
3. Temporary Period,
3.1 Within six (6) months from the date of this
Certificate, the Issuer will have incurred substantial
binding obligations or commitments in the amount of at
least $100,000 for each Project to be financed by the
Certificates by entering into contracts for either
construction, architectural services, engineering
services, land acquisitions, site development, construction materials, or the purchase of equipment.
3. 2 After entering into said contracts, work on the
Projects will proceed with due diligence to completion,
which is expected to occur on or about September 10,
1994.
3. 3 All of the spendable proceeds of the
certificates will be expended for Project costs by the
end of the three-year period from the date hereof.
3. 4 Approximately $2,600,000 of the proceeds of the
Bonds will be used to reimburse the Issuer for Project
expenditures for land made by it from its own funds prior
to the date hereof. Approximately $910,000 of the
proceeds of the Bonds will be used to reimburse the
Issuer for Project expenditures for solid waste
improvements made by it from its own funds prior to the
date hereof. The expenditures to be reimbursed were made
subsequent to declarations of reasonable intent to
reimburse the expenditures (except for certain
preliminary expenditures such as design and engineering
fees}, copies of which are attached to this Certificate
111100831.0IR\00290S4,WP -2-
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As To Tax Exemption. With respect to the reimbursements,
( 1) the Bonds will be issued and the reimbursement
allocations will be made within one year after the
expenditures were paid or the property financed by the
expenditures were placed in service, whichever is later;
(2) the expenditures to be reimbursed were capital
expenditures; (3) the allocations and the Issuer's intent
are consistent with the budgetary and financial
circumstances of the Issuer; and (4) the Bond proceeds
allocated to the reimbursement will not be used directly
or indirectly to refund another bond issue, to create or
increase a debt service fund or a reserve or replacement
fund, or to reimburse any person (other than the Issuer)
for any expenditures originally paid with bond proceeds
of the Issuer.
4. certificate Fund and the system Fund.
4 .1 The Certificates are payable from an ad valorem
tax levied upon all taxable property in the Issuer, and
are additionally payable from a limited pledge of the Net
Revenues of the System, and all taxes levied and
collected for and on account of the Certificates up to a
cumulative maximum of $2,500.00 during the period the
Certificates are outstanding, together with Net Revenues
pledged and appropriated to pay the Certificates, are to
be to deposited into a special Fund or Account (the
"Certificate Fund") created and established for the
payment of the Certificates, as provided in Section 11 of the ordinance authorizing the issuance of the
Certificates. The Certificate Fund was created primarily
to achieve a proper matching of revenues and debt service
for the Certificates within each bond year and moneys
deposited therein will be used solely to pay the
principal of and interest on the Certificates as the same
becomes due and payable and the Issuer reasonably expects
that there will be no other funds that will be so used or
pledged or otherwise restricted so as to be available
with reasonable certainty, to be used.
4.2 To the extent taxes collected for the payment
of the Certificates equals the annual debt service paid,
amounts deposited in the Certificate Fund will be spent
within a thirteen month period beginning on the date of
the deposit. Any amounts deposited in such Certificate
Fund in excess of the annual debt service to be paid on
the certificates plus an amount not to exceed the greater
of (i) one year's earnings on the Certificate Fund or
(ii) one-twelfth (l/12) of the annual debt service on the
Certificates will, to the extent such money are invested,
be restricted to investments which have a Yield not in
MW00831.DIR\0029084.IIP -3-
No Text
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excess of the Yield of the Certificates. Any amount
received from the investment of money held in the
Certificate Fund will be spent within a one-year period
beginning on the date of receipt.
4.3 Any amounts deposited to the System Fund shall
be pledged in the priority set forth in Section 14 of the
Ordinance.
5. Miscellaneous.
5.1 The Issuer has not been notified of any listing
or proposed listing of the Issuer by the Internal Revenue
service as an issuer that may not certify its
Certificates.
5. 2 Any amount of income derived from the
investment of money received upon the sale of the
Certificates or from the investment of such investment
income will either (i) be expended on the Projects, or
(ii) if and when found not to be required for such
expenditure, will be deposited in the Certificate Fund
and expended to pay principal and interest on the
certificates, within three (3) years from the date hereof
or within one (1) year of receipt, whichever is sooner.
5.3 The Issuer has, in addition to the moneys
received from the sale of the Certificates, moneys that
are invested in various funds which are pledged for
various purposes. These other funds are not available to
accomplish the purposes described in 1 above, except as
described in Section 4 hereof.
5.4 The principal amount of the Certificates,
together with the investment income to be realized from
the investment thereof based on current market rates
(estimated to be $70,000.00), is not expected to be in
excess of the most recent estimates of the amounts
necessary to acquire, construct or equip, as the case may
be, the Projects and paying costs of issuance of the
certificates.
5.5 No person or group of persons will have access
to or use of or derive any special benefit (other than as members of the general public) from the facilities and
improvements to be constructed with the proceeds of the
Certificates, pursuant to any lease, management or
payment contract or any other arrangement, other than a
contract with Reese Air Force Base, under which water is
supplied to Reese Air Force Base in an amount less than 5% of the capacity of the City's Waterworks System.
lll/00831.D IR\0029084.WP -4-
No Text
,,..
5. 6 No other obligations of the Issuer payable from
the same source of funds as the Certificates and with a
ccimmon plan of financing have been or will be issued
within ·31 days of the date hereof.
5.7 The yield on the certificates, calculated on
the basis that the present worth of all payments of
principal and interest to be paid on the Certificates
produces an amount equal to the ''Issue Price" (as
represented by the initial purchasers) of the
Certificates is 5.2584 t.
5. 8 In accordance with Section 29 of the Ordinance,
unless the Certificates meet an exception described in
section 148(f) of the Code, the City will pay Rebatable
Arbitrage to the United States at the times and in the
amounts as provided in section 148 of the Code. The
Issuer hereby elects to treat $4,965,000 of the
Certificates (representing the face amount of the
Certificates minus the $2,600,000 expended for the land)
as a "construction issue" under sections 148(f)(4)(C)(v)
of the Code, for purposes of sections 148(f)(4)(B) and
148(f)(4)(C) of the Code. It is anticipated that the
"construction issue" portion of the certificates will
meet: the rebate exception contained in section
148(f)(4)(C) of the Code, relating to obligations the
proceeds of which are used for construction expenditures
and are spent within a twenty-four (24) month period. It
is anticipated that the land portion of the Certificates
will meet the rebate exception contained in section
148(f)(4)(B) of the Code, relating to obligations the
proceeds of which are spent within a six (6) month
p~riod.
NW00831.DIR\0029084,WP -s-
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,...
(City seal)
-
DATED: September 9, 1992
-
M\I00831.DIR\00290B4.WP
CIT¥ OF LUBBOCK, TEXAS
~~r'4==
Assistant City Manager for
Financial Services
-6-
No Text
SEP ~3 '92 11:31 CITY OF LU&BOCK, TX 806-762-3623 i.esolu:tion No. :r.,~2
April 23, 1992
I !-
Item US
RESOLUTION
A RESOLUTION DECLARING EXPECTATJON TO REIMBURSE EXPENDITURES VITH PROCEEDS OF fUlURE DEBi.
STAT£ Of TEXAS §
COUNTY OF LUBBOCK §
WHEREAS, the City of Lubbock, Texas (the "Issuer•) intends to make capital expenditures for the 1nsta11ation of a soil liner 1n the City of Lubbock Landf111 Cell Ill that at I min1111U11l is at least equivalent to, but in no case less than, three feet of so11 having a maximum coefficient of permeab111ty of 1.0 x 10-7 cm per sec. installation (the •Expenditures•) and
currently desires and expects to reimburse.the Expenditures with proceeds of debt to be incurred hereafter for such purpose; ·
WHEREAS, under Treas. Reg. §1.103-18 (the •Regulation"), to fund such reimbursement with proceeds of tax-exempt obligations the Issuer must declare its expectation ultimately to make such reimbursement before making the Expenditures; and
WHEREAS. the Issuer desires to preserve its ability to reimburse the Expenditures with proceeds of tax-exempt obligations; NOW THEREFORE:
BE JT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Issuer reasonably expects to reimburse the Expenditures with proceeds of debt hereafter to be incurred by the Issuer in a principal amount which the Issuer expects wtll not exceed $910.000 and that this Resolution shill constitute a declaration of official intent under the Regulation. ········• .. ·, Passed-by the City Council this 23rd
'• •, . .
DGV11lw
q1nda-D12/Llmdli 11.Jln
day of A-oril , 1992.
#.c.~~
No Text
,...
,..
Item 119
A RESOLUTION DECLARING EXPECTATION TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT
STATE OF TEXAS S s COUNTY OF LUBBOCK S
WHEREAS, the City of Lubbock, Texas (the "Issuer0 ) intends to
make capital expenditures for a 550-bed psychiatric hospital for
the Texas Department of Corrections (the "Expenditures") and
currently desires and expects to reimburse the Expenditures with
proceeds of debt to be incurred hereafter for such purpose;
WHEREAS, under Treas. Reg. S 1.103-18 (the "Regulation"), to
fund such reimbursement with proceeds of tax-exempt obligations the
Issuer must declare its expectation ultimately to make such
reimbursement before making the Expenditures; and
WHEREAS, the Issuer desires to preserve its ability to
reimburse the Expenditures with proceeds of tax-exempt obligations.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF LUBBOCK, TEXAS, that the Issuer reasonably expects to reimburse
the Expenditures with proceeds of debt hereafter to be incurred by
the Issuer in a principal amount which the Issuer expects will not
exceed $2,600,000 and that this resolution shall constitute a
declaration of official intent under the Regulation.
(City Seal)
21004
No Text
·,
,..,
SIGNATURE AND NO-LITIGATION CERTIFICATE
THE STATE OF TEXAS S s COUNTY OF LUBBOCK S s CITY OF LUBBOCK S
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 certificates of obligation:
"CITY OF LUBBOCK, TEXAS TAX AND WATERWORKS SYSTEM (LIMITED PLEDGE)
REVENUE CERTIFICATES OF OBLIGATION, SERIES 1992," dated August 15, 1992 (the "Certificate Date"), in the aggregate principal amount of
$7,565,000 (the "Certificates").
(2) The 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 Certificates whether in manual or facsimile form, as the
case may be, as their true, genuine, and official signatures.
(3) 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.
(4) The legally' adopted proper and official corporate seal of
the Issuer is impressed, imprinted, or lithographed on all of the
Certificates a~d impressed on this certificate.
(5) 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 Certificates or questioning the issuance or sale of the
certificates, the authority or action of the governing body of the
Issuer relating to the issuance or sale of the Certificates, the
levy of the tax or the assessment and collection thereof to pay the
principal of and interest on the Certificates, the collection of
the revenues of the City's Waterworks 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 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
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.
No Text
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' .
(6) 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 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 Certificates, 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 Certificates remain in full force and effect as of the date of
this certificate.
EXECUTED ANO DELIVERED this
seal)
SEP O 9 1992
OFFICIAL TITLE
Mayor, City of Lubbock, Texas
THE STATE OF TEXAS
COUNTY OF LUBBOCK
s s
City Secretary, City of
Lubbock, Texas
Before m.e, the undersigned, a Notary Public, on this day
personally appeared David R. Langston and Ranette Boyd, known to me
to be the Mayor and City secretary, respectively, of Lubbock,
Texas, and who in my presence each executed this instrument before
m.e in the capacity represented and each of said person's signature
is genuine.
of GIVEtI-UNDER MY HAND AND SEAL OF OFFICE, this the 14th .J:-1'::j U ,4-I 19 9 2 •
otary Public, state of
£ea+a.rz M. '2oda. i4:u,ez.
Printed name of Notary Public
(Notary Seal)
"29055 -2-
day
No Text
71:?
DAN MORALES
ATTORNEY GENERAL
~ffict of tl)t ~ttorntp ~tntral
~tatc of UI:cxas
September 4, 1992
THIS IS TO CERTIFY that the City of Lubbock, Texas
(the "Issuer") has submitted to me City of Lubbock,
Texas. Tax and Waterworks System (Limited Pledge) Revenue
certificate of Obligation. series 1992 (the
"Certificate") in the principal amount of $7,565,000 for
approval. The certificate is dated August 15, 1992,
numbered T-1, and was authorized by Ordinance No. 9542 of
the Issuer passed on August 14, 1992 (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 any Official Statement or
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 meaning 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 ad valorem
tax levied, within the limits prescribed by law, upon all
taxable property within the Issuer and is additionally payable
from and secured by a lien on and limited pledge of the Net
Revenues of the Issuer I s Waterworks System, such lien and
pledge being junior and subordinate to the lien on and pledge
of the Net Revenues of such system securing the payment of
Prior Lien Obligations now outstanding and hereafter issued by
the Issuer.
512/463,2100 P.O. BOX 12548 AUSTIN, TEXAS 78711,2548
AN EQUAL EMrLOYM6NT OPrDRTUNITI' EMPLOYER
No Text
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city of Lubbock, Texas, Tax and Waterworks System (Limited Pledge)
Revenue Certificate of Obligation,
series 1992 -$7,565,000 Page -2-
Therefore, the Certificate is approved.
No. 26288 ~
• Book No:92
;bi/
Texas
No Text
,..
OFFICE OF COMPTROLLER
OF THE STATE OF TEXAS
I, Sandra Johnson, Oeond Clerk [EjAsslstant Bond Clerk in the office of the Comptroller of the
State ol Texas, do hereby certify that, acting under the direction and authority of the Comptroller on
the September 4. 1992, l signed the name of the Comptroller to the certificate of registration
endorsed upon the:
City of Lubbock Texas. Tax and Waterworks System (Limited Pledge) Revenue Certificate ot
Obliaauon. senes 1992.
numbered I:l, dated August 15
following signature:
1992. and that in signing the certificate of registration I used the
J.Lk
IN WITNESS WHEREOF I have executed this cert~~le this the September 4 1992 . .s~1v.. ~fi Oc:::-,
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). wHh 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 described In this certificate have been duly registered in the office of the Comptroller, as
appears of record on page ~ of volume 2! under Registration Number ~ in the Bond
Register kept in the office of the Comptroller.
GIVEN under my hand and seal of office at Austin, Texas, this the September 4 1992.
f-4s4,
JOHN SHARP
Comptroller of Public Accounts
of the State of Texas
No Text
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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 Waterworks System (Limited Pledge)
Revenue Certificate of Obligation, Series 1992
numbered I:1, of the denomination of $ 7.565.000. dated August 15. 1992.
as authorized by issuer, interest yarjous percent, under and by authority of
which said bonds/certificates were registered in the office of the
Comptroller, on the September 4, 1992, as appears of record on page~
of volume 1M under Registration Number~ in the Bond Register kept
in the office of the Comptroller.
Given under my hand and seal of office, at Austin, Texas, the
September 4. 1992.
f-4s4,
JOHN SHARP
Comptroller of Public Accounts
of the State of Texas
No Text
...
_,.._
RECEIPT FOR PAYMENT
THE STATE OF TEXAS § s COUNTY OF LUBBOCK §
On the date hereof the following described bonds: "CITY OF
LUBBOCK, TEXAS, TAX ANO WATERWORKS SYSTEM (LIMITED PLEDGE) REVENUE
CERTIFICATES OF OBLIGATION, SERIES 199211 , dated August 15, 1992, in
the aggregate principal amount of $7,565,000 (the "Certificates")
were delivered to the purchaser(s) thereof, namely:
SMITH BARNEY, HARRIS UPHAM & CO. INCORPORATED
following the receipt of immediately available funds from the
purchaser(s) in settlement of the agreed purchase price for the
Certificates as follows:
PRINCIPAL AMOUNT-------------$7,565,000.00
ACCRUED INTEREST------------$ 29,076.33
TOTAL AMOUNT RECEIVED ON
DELIVERY OF THE CERTIFICATES $ 7,594,076.33
Furthermore, the undersigned 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.
29089
SEP O 9 1992 DELIVERED, this ____________ _
NATIONSBANK OF TEXAS, N.A.
Fort'?/)_ Texas
By~
Tit:: ,ASSI::: PRl:51DENT
No Text
> ,
I
CERTIFICATE AS TO OFFICIAL STATEMENT
THE STATE OF TEXAS § s
COUNTY OF LUBBOCK S
§
CITY OF LUBBOCK §
RE: $7,565,000 "City of Lubbock, Texas, Tax and Waterworks System
(Limited Pledge) Revenue Certificates of Obligation, Series
1992, dated August 15, 1992
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 Certificates, 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 audited financial statements of the City.
No Text
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TO CERTIFY WHICH, witness my hands and the seal of t.he city,
this SEP 0. 9 1992 . • ,...
(City Seal)
-2-
No Text
CITY OF LUBBOCK, TEXAS
. (Lubbock CoWlly)
$7,565,000
TAX AND WATERWORKS SYSTEM
(LIMITED PLEDGE) REVENUE
CERTIFICATES OF OBLIGATION,
SERIES 1992
Selling Thursday, August 13, 1992,
at 11:00 AM, CDT
,.
Ratings: Moody's: • Aa•
Standard & Poor'sCorp: *AA"
SUPPLEMENT TO
OfflCIAL STATEMENT
relating to
$7,565,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
TAX AND WATERWORKS SYSTEM (LIMITED PLEDGE)
REVENUE CERTIFICATES OF OBUGATION, SERIES lffl
Ou August 13, 1992, the above-captioned cerlmcates (lbe •Ca:tificates") were awarded to an Wlderwrit« or group
of uaderwriten managed by Smith Bamey, Harris Upham & Co. (the •Purcba.sers"). The interest rate with respect
to each maturity of Certificates and the initial reoffcring yields for each maturity are as follows:
~
$635,000
635,000
640,000
640,000
640,000
475,000
475,000
47.5,000
475,000
475,000
Maturity
2•15-1993
2-15-1994
2•1.5-1995
2·15-1996
2-1.5-1997
2-1.5-1998
2-1.5-1999
2-1.5-2000
2-15-2001
2-15-2002
~
6.7.5'Jli
6.7.5'Jli
6.15'Jli
6.7.5'Jli
6,30'Jli
4.7.55'
4.7.5'Jli
4.90'Jli
.5.00'Jli
5.20'Jli
MATURITY SCHEDULE
Inillal
Reoffering
Yield
2.70'Jli
3.40'Jli
3.90'Jli
4.20'Jli
4.451(,
4.15'Jli
4.90'6
5.10'6
.5.20!5
5.30'Jli
Amount
$ 200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
Maturity
2·15-2003
2-15-2004
2-15-200.5
2-15-2006
2-15•2007
2·15-2008
2-15-2009
2-15-2010
2-1.5-2011
2-15-2012
....&!L
5.315'Jli
5.400\lli
5.SOO'Jli
5.600'Jli
5.700'Jli
5.800'6
5.SOO'Jli
4.750'Jli
4.750'Jli
4.750'Jli
5.45'Jli
5.55'Jli
5,65'Jli
5.15'Jli
5.85'Jli
5.95'Jli
S.95'Jli
6.00'Jli
6.00'6
6.00'6
The initial reoffering yields were supplied to Che City by the Purehasers and sueh :initial reoffering yields for oae or
more ma.llllities ma.y be changed at any lime and from lime IO lime by lhe Pun:ha.scrs and olher dealers.
The Pur:chasers have indicated in fheir bid lhat the Certificates will not be illsuted.
Subject to circumstances oocurring subsequent IO the date hereof, this Supplement together with fhe Official Staiement
noted above, dated July 20, 1992, consdtute fhe "Final Offi¢ia1 Statement• within the meaning of SBC Rule l.5c2-12.
Dated: August 13, 1992
No Text
NOTICE OF SALE
AND
BIDDING INSTRUCTIONS
ON
$7,565,000
CITY OF LUBBOCK, TEXAS (Lubbock County)
TAX AND WATERWORKS SYSTEM (LIMITED PLEDGE)
REVENUE CERTIFICATES OF OBLIGA 11ON, SERIES 1992
Selling Thursday, August 13, 1992, at 11:00 AM, CDT
TIIE SALE
Certuates Offered ror Sale at Compditive Bidding
The City of Lubbock, Texas, is offering for sale its $7,565,000 Tax and Waterworks System (Limited Pledge) Revenue
Certificates of Obligation, Series 1992 (the "Certificates").
Address or Bids
Sealed bids, plainly marked "Bid for Certificates•, should be addressed and delivered lo "Mayor and City Council, City of
Lubbock, Texas" and delivered lo the City SecrclAry at the Municip!il 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,
Place and 11me or 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, August 13, 1992.
Award or the Certuicates
The City Council will lake action to award the Certificates (or reject all bids) immediately tollowing the bid opening and adopt
an ordinance authorizing the Certificates and approving the Official Statement (the "Ordinance").
THE CERTIFICATES
Description
The Certificates will be dated August 15, .1992 (the "Certificate Date"), and interest will be due on February 15, 1993 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 integn.J multiple of $5,000 for any one maturity. The Certificates will mature on February 15
in each year as follows:
Principal Principal Principal ....rm_ Amo!!!]t ~ Amo!,!nt _xer._ Amougt
1993 $ 635,000 2000 $ 475,000 2007 $ 200,000
1994 635,000 2001 415,000 2008 200,000
1995 640,000 2002 475,000 2009 200,000
1996 640,000 2003 200,000 2010 200,000
1997 640,000 2004 200,000 2011 200,000
1998 475,000 2005 200,000 2012 200,000
1997 475,000 2006 200,000
Book-Entry-Only System
The City intends to utilize the Book-Entry-Only System of The Depository Trust Company ("OTC'). See •Certificate
Information • Book-Entry-Only System• in the Official Statement.
Redemption
The City reserves the right, at its option, to redeem Certificates having stated maturities on and after February 15, 2003, in
whole or in part in principal amounts of $5,000 or any integral multiple thereof, on February 15, 2002, or any date thereafter,
at the par value thereof plus accrued interesl to the date fixed for redemption.
- i •
Paying Agent/Rq;istrar
The initial Paying Agent/Registrar shall be NationsBank of Texas, N. A., Fort Worth, Texas (see "Certificate Information •
Paying Agent/Registrar• in the Official Statement).
Source of Payment
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 prescribed by law, on all taltable property within the City, and (ii) a limited
pledge of net revenues of the City's Waterworks System, u provided in the Ordinance.
Further details regarding the Certificates are set forth in the Official Statement.
CONDITIONS OF SALE
Type of Bids and Interest Rates
The Certilicates 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
. Jnterest to lhe date of delivery of the Certificates. Bidden 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 1/8 of I% 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 bidden 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 Certificates from the Certificate Date to their respective
maturities, using the table of Bond Years nerein, and deducting therefrom the premium bid, if any (the "Net Interest Cost
Calculalion•). Subject to the City's right to raject 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 Fonn (the "Purchaser") whose bid, based on the Net Interest Cost Calculation, produces the lowest net effective
interest cost to lhe City.
Good Faith Deposit
A Good Faith Deposit, payable to the "City of Lubbock:, Texas", in the amount of $151,300.00, is required. Such Good Faith
Deposit shall be in the form of a Cashier's Check: which is to be retained uncashed by the City pending the Purchaser'•
compliance with tenns 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 Certiricatcs. 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 ACCOMPANYJNG DOCUMENTS
CUSJP 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 Purcha.ser to
accept delivery of and pay for the Certificates in accordance with the terms of Ibis 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.
Initial Deliffry or Initial Certiricate
Initial Delivery will be accomplished by the issuance of one or more Initial Certi!Icalea (also called "Certificates") either in typed
or printed form, in the aggregate principal amount of $7,565,000, 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 delivered 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 othexwise directed by the City. The Purchaser will be given six business days' notice
.. ii -
,..
of the time fixed for delivery of the Certificatcs. It is anticipated that Initial Delivery of the Initial Certfficate(s) can be made
on or about September 9, 1992, and it is understood and agreed that the Purchaser will accept delivery and make payment for
the Certificates by 10:00 AM, CDT, on September 9, 1992, or thereafter on the date the Certilieate is tendered for delivery,
up to and including September 23, 1992. If for any reason the City is wiable to malce delivc:ty on or befure September 23, 1992,
the City shaU immediately contact the Purchaser and offer to allow lhe Purchaser to extend its offer for an additional thirty days.
If the Pureba.ser does not eleet to extend its offer within aix days themlfter, then ill 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 ita failure to deliver the Certificates, provided aueh failure is due to circumstamx:s beyond the City's reasonable
control
Conditions lo Deliveey
The obligation of the Purchaser to take up and pay fur the Certificates ia aubj®t to the Purehaser'a receipt of (a) the legal
opinion of Fulbright & Jawonki, Dallas, Texas, Bond Counsel for the City c•Bond Counsel•), (b) the no-litigation certificate,
and (c) the certification as to the Official Statement, Ill.I as further described in the Official Statement.
In order to provide the City with information required to enable ii 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" aubstantially in the fonn and to the effect attached hereto or accompanying
this Notice of Sale and Bidding Instructions. In the event the Purchaser will not reoffer the Certificates for aale or is Wlahle
to sell a substantial amoWlt of the Certificates of any maturity by the date of delivery, such certif1CBtes may be modified in a
manner approved by the City. In no event will the City fail to deliver the Certu,cates as a result of the Purchuer's in.ability
to sell a substantial amount ofCertuicates at a particular price prior to deliveey. Each bidder, by submitting its bid, agrees
to complete, execute, and deliver such a certificate, if its bid is accepted by the City. It will be the rcaponsibility of the
Underwriter to institute such syndicate reporting requirements to make such investigation, or otherwise to ascertll.in the facts
necessary to enable it to make such certification with reasonable certainty. Any question, 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 lhe Attorney General of the State of Texas.
Delivery of and payment for the Certificates is subject to the reeeipt by the Purchaser of opinions of Bond Counsel, to the effect
that the c.ertificates are valid and binding obligations of the City and that the inten:ston the Certificatcs will beexeludable from
gross income for federal income lax purposes under existing law, subjeet to lhe matters described under "Tax Exemption" herein,
including the alternative minimum tax on corporations.
Certuacation of Ofracial Statement
At the time of payment for, and Initial Delivery of, the Initial Certificates, the City will execute and deliver to the Purchaser
a certificate in the fonn set forth in the Official Statement.
Change in 1'ax 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 shaU be declazed to be taxable inoome 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 tenns of any fedcnl 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' a 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 Cc:rtilicates, either independently or as a
member of a syndicate organa.ed to submit a bid for the Certificates. rll'St 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
infonnation, covenants and representations contained in sny of the legal document.a with respect to lhe 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 chat the sale of the Certifica1es in states other than Texas will be made only
pursuant to exemptions from registration or, where nc,:cssary, lhe Purchaser will register the CertifJCBtes in accordance with
the securities law of the states in wruch 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 Cltbmption from registration in any
state where such action is necessary.
-ill -
Not an Offer to Sell
Th.is Notice of Sale and Bidding Instructions does not alone constitute an offer to sell 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
In June, 1993, the City plans to authorize and deliver to the Texas Water Development Board an estimated $14,425,000
Combination Tax and Sewer System Subordinate Lien Revenue Certificates of Obligation, Series 1993; the proceeds will be used
to flll8.llce "Project C' of the City's wastewater treatment and disposal improvement program (see "State Revolving Fund
("SRF") Loan Program" in the Official Statement).
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
"M • 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 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 wjll be paid by the Pun;haser. 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 effeet
thereof with reapect to the reoffering of the Certificates.
The Ofl:kial Statement and Compliance with SEC Rule 1Sc2-12
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 addreased else11.-here 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 Purehaser(s), within seven (7) business days from the sale date an aggregate of 150 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 Certificate. The cost of preparation of the Supplement, or of a reprinted Official Statement, if the
Purchaser(s) shall so elect, and the cost of any Official Statement in excess of the number speeified 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 or Notice, Bid Form and Statement
A limited number of additional copies of this Notice of Sale and Bidding Instructions, the Official Bid Fann and the Official
Statement, as available over and above the normal mailing, may be obtained at the offices of First Southwest Company,
Investment Bankers, FJJ"St City Center Building, 1700 Pacific Avenue, Suite SOO, Dallas, Texas 7.S201, Financial Advisor to
the City.
On the date of the sale, the City Council will, in the Ordinance authorizing the issuance of the Certificates, confinn 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:
RANE1TEBOYD
City Secretary
July 20, 1992
... iv -
DAVID R. LANGSTON
Mayor
City of Lubbock, Texas
BOND YEARS
Accumulated
Year Amount Bond Years Bond Years Year
1993 $ 635,000 317.5 317.S 1993
1994 63S,000 952.5 1,270.0 1994
1995 640,000 1,600.0 2,870.0 1995
1996 640,000 2,240.0 5,110.0 1996
1997 640,000 2,880.0 7,990.0 1997
1998 475,000 2,612.5 10,602.5 1998
,.. 1999 475,000 3,087.5 13,690.0 1999
2000 475,000 3,562.5 17,252.5 2000
2001 475,000 4,037.5 21,290.0 2001
2002 475,000 4,512.5 25,802.5 2002
2003 200,000 2,100.0 27,902.5 2003
2004 200,000 2,300.0 30,202.5 2004
2005 200,000 2,500.0 32,702.5 2005
2006 200,000 2,700.0 35,402.5 2006 ,... 2007 200,000 2,900.0 38,302.5 2007
2008 200,000 3,100.0 41,402.5 2008
2009 200,000 3,300.0 44,702.5 2009
2010 200,000 3,500.0 48,202.5 2010
2011 200,000 3,700.0 51,902.5 2011
2012 200,000 3,900.0 55,802.5 2012
Average Maturity--·------····--·-··--~-------·-·· 7.376 Years
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No Text
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Honorable Mayor and City Council
aiy of Lubbock, Texas
Membeni of !be aiy Collllcil:
OfflCIAL BID FORM
August 13, 1992
RA>fm>nce u made to your Official Statament and Notice of Salo and l!iddillg Instructions, da!Od July 20, 1992, of $7,565,000 Cm' OF WBBOCK,
TEXAS TAX AND WATERWORKS SYSTEM (LIMITED Pl.EDGE) REVENUE CERTIFICATES OF OJ!UGA1lON, SERIES 1992, both of which
constituta a part hereof.
For yoor legally issued Certificates, as described In said Noti<e of S.16 and Bidding lmtructions and Official Statement, -will pay you par and llCC<lled
illterest from data of istrue to dale of delivery to us, plus a cash premium of$, ________ fur Certificate> maturing and llearing interest••
follows:
Principal Interest Principal futan,st
Maturity Amount Rate Maturity Amount Rate
2-15-1993 $635,000 ---" 2-15-2003 $200,000 ___ '11
2-15-1994 635,000 ---" 2-U-2004 200,000 ___ '11
2-15-1995 640,000 ___ ,i; 2-15-2005 200,000 ---"
2-15-1996 640,000 'II ---2-15-2006 200,000 ---"
2-15-1997 640,000 ---" 2-15-2007 200,000 ---"
2-15-1998 475,000 ___ ,; 2-15-2008 200,000 ---"
2-15-1999 475,000 " ---2-t.S-2009 200,000 ---"
2-15-2000 475,000 ---" 2-ts-2010 200,000 ---"
2-15-2001 47S,000 ---" 2-15-2011 200,000 --"
2-15-2002 475,000 ---" 2-t.S-2012 200,000 ---9'
Our calculation (which is not a part of this bid) of the interest cost from the above is:
Tots! htan,st Cost
Less Pn,mium
NEr INTEREST COST
EFFECTIVE INIEREST P.ATE
$ ______ _
$, ______ _
_______ '11
We are having the Certificates of the following mat\lriliu _________________ Insured by _________ _
---,--,,-_,..,..,..;at a premium of$ aaid w,,mium to be paid by iii, Pun:bruier. Any r.e, to be paid to the rating agencies
as• "'5Ult of said lllS111'.11DCO will be pold by the City.
The Initial Certificate sball be registered in the oame of~~-~----~~-~~~~---· W• will a(lvise The Depository Trust Compony ( "OTC") of registration instructiom at least Jive buaines, days prior to the date set for Initial Deliveey.
A cashier'• Check of the-____________ Banlc, _____________ , in the amount of $151,300.00, which
repreaenta our Clood Faith Deposit (ls attached hereto) or (has been made available to you prior to !be opening oftbia bid), and is ,ubmitted in =nlance
with the tarmo as set forth in the Official Statement and Notice of Sale and Bidding Instructions,
We ag-to aocept delivery of the Certificates utillzjng the Book-Entry-Only System through DTC and make paymellt for tho Initl3l Certiftcata in
immediately available fUnd• in the Corpol'Ble Trust Division, Nalioasllank of Texas, N.A., Fort Worth, Texas, not later than 10:00 AM, CDT, on
September 9, 1992, or tbe,.,.ftec on the data the Certificates ..,, tendered for delivery, pursuant to tbe tann• set forth in tbe Notice of Salo and Bidding
Instructions.
The undenigned agrees to com111e1e, execute, and deliver to the City, at 1 .... 1 six bu,ine., days prior to delivery of the Certificates, a cemficata relating
to the "issue price" of the Certiticata• in the form and to the effect accompanying the Notice of Sale and Bidding Instructio .. , with such ohsnges thereto
•• may be acceptsble to the City.
We llgrff to provide iD writing the luitial reol'fering prices and other tenns, if any, to the Finandal Advisor hy the close of lhe next business day after Che award.
Rsspectfully submitted,
By, _____________ _
Autborir.ed .R,pn,seatative
ACCEPTANCE CLAUSE
The above and foregoing bid is hereby in all things "'"'"llled by the Qty of Lubbock, Texas, ouhject to and in -=rdance with the Notia, of Salo and
Bidding Instructions, this the 13th day of August, 1992.
ATTEST: Mayor
City of Lubbock, Texas
City Secretary
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Honorable Mayor md City Council
City of Lvhboct, Tens
Members of the City Council:
OFFICIAL BID FORM
August 13, 1992
Rmenma, i• made to your Offu:ial Statement and Notice of Sale and Bidding Instniotions, dated July 20, 1992, of $7,565,000 CITY OF UJBBOCK,
TEXAS TAX AND WATERWOR.KS SYSTEM (UMITED PLEDGE) REVENUE CERTIFICATES OF OBUOATION, SERIES 1992, both of which
oonstltute a part l>ereof.
For your legally issued Certificatea, as described in said Notice of Sale and Bidding Instn!otions and Offl<i•l S!Atement, we will pay you par and &CCrlled int.erest from dale of issue to date of delivety to us, plus a cash premium of $, _______ for Certificates maturing and bearing inlerest ••
follows:
Principal Interest Principal Interest
Maturity Amount Rate MaJUrjty Amount Rate
2-15-1993 $ 63S,OOO ___ lli 2-lS-2003 $200,000 ___ %
2-lS-1994 635,000 ---% 2-lS-2004 200,000 ---%
2-1S-199S 640,000 ___ % 2-15-2005 200,000 ---"
2-15-1996 640,000 ___ % 2-15-2006 200,000 ---"
2-IS-19'J7 640,000 ___ % 2-15-2007 200,000 ---"
2-lS-1998 47S,OOO ---" 2-IS-2008 200,000 ---%
2-15-1999 475,000 ---" 2-15-2009 200,000 ---!Ii
2-IS-2000 475,000 'JI\ ---2-IS-2010 200,000 ---"
2-IS-2001 475,000 ---'JI\ 2-15-2011 200,000 ---"
2-15-2002 47S,OOO ---" 2-IS-2012 200,000 ---'JI\
Our calculation (which is not a part of thla hid) of the inteniat cost from the above i•:
Total Interest Cost
l.e9SPremium
$, ______ _
$, ______ _
_______ %
We are baving the Certificates of the following maturities ___ ----~-=------insured by ---,,.-,,-,-.,-·al• pn,mium of$ , oaid premium to be paid by ihe Purcltaser. Any fees to"'be-p111"'.-.d.,.to-t"he-n°"ti;-,og_l\ll"_""'..,.-..
.. a ""'°It of said insurance "ill be paid by the Cltv.
The Initial Certificate shall be n,gistered In the name of~----~---~-~~--~-· We will advise The Doposltoty Trust Company ('DTC•) of regislralioo instruction• at least five busmess days pnor to the date set for Initial Delivety.
A Cash!..r'• Cbed'; of the-----------~Ba.ok, ------------~• in the omount of $151,300.00, which "'l'""""'ts our Good Faith Deposit (is attached hereto) or (bas been made available to you prior to the opening of !Iii• bid), and It! submitted in 8"COrdanoe
with the terms as aet forth in the Official Statement and Notice of Sale and Bidding Instructions.
We agn,e to ac:a,pt delive,y of the Certlt'i<:ates utilizing the B001<-&tty-Ouly System through DTC and make payment for the Initial Certificate in
immedlllll!ly available fund& in the Corporate Trost Division, Nationi;Ba.ok of Texas, N.A., Fort Worth, Texas, not later than 10:00 AM, CDT, on
September 9, 1992, or thereafter oo the dale the O,rtitieate, are tendered for delivery, pursuant to the terms set forth in the Notioo of Sale and Bidding
Instn1Clions.
The undenligned agn,es IO complete, eDCUw, and deliver to the City, at least •ix busi ... s days prior to delivery of the Certifieatea, a certificate relating
to the "issue price• of the Certificates in the form 811<1 to the eft\,ct a«:ompanying the Notice of Sale and Bidding wtr:uetions, with such changes thereto
•• may be a«:eptable to the City.
We agree to provide In wridngtbe Initial NOll'oring priceo and olher tenm, if any, to theFlnandal Advisor by the close of the next hnslness day
after the award.
Respectfully submitted,
BY•~----,-,,-.,--,.....---,..,..-----Autborized Representative
ACCEPI'ANCE ctAUSB
The above and foregoing bid It! ltereby in all things aca,pi,,d by the City of labbock, Texas, subject to and in accordanoe with the Notice of Sale and
Bidding Iastructions, this the 13th day of August, 1992.
ATrEST: Mayor
City of Lubbock, Texas
No Text
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I~UE PRICE CERTIFICATE
Toe underlligned hereby certifies with respect to the sale of $7,56.S,OOO CITY OF LUBBOCK, TEXAS TAX AND
WATERWORKS SYSTEM (LIMITED PLEDGE} REVENUE CERTIFICATES OF OBLIGATION, SERIES 1992 (the
•Certificates"):
l. 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 ma.de a bona fide
offering to the public of the Certificates of esch maturity at the respective prices set forth below.
3. Toe initial offering price (expressed as a percentage of principal amount or yield and Cllclusive of accrued interest)
for the Certificates of each maturity at which a substantial amount of the Certificates of such maturity was sold to lhe
public is as set forth below:
Principal Offering Principal Offering
Amount Year of Price Amount Year of Price
M1turing ~ (2f!fYieldl M!SJ!J:ing ~ (!!fYield}
$635,000 1993 __ % $200,000 2003 ___ %
635,000 1994 ___ % 200,000 2004 ___ %
640,000 1995 __ % 200,000 2005 ___ %
640,000 1996 __ % 200,000 2006 ___ %
640,000 1997 __ % 200,000 2007 ___ %
475,000 1998 __ % 200,000 2008 ___ %
475,000 1999 __ % 200,000 2009 ___ %
475,000 2000 __ % 200,000 2010 ___ %
475,000 2001 __ % 200,000 2011 ___ %
475,000 2002 __ % 200,000 2012 ___ %
4. The term •public," as used herein, means persons other than bondhouses, brokers, dealers, and similar persons
or organi7Jltions acting in the capacity of underwriters or wholesalers.
S. The offering prices described above reflect current market prices at the lime 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 lhe Ceitific:ates. The bond insurance, if any, hu 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 ststed from aU other fees or charges payable to the Insurer. The premium does not exceed a reasonable
charge for the transfer of credit risk laking into account payments charged by guarantors in comparable transactions
(including transactions in which a guarantor has no involvement olher than as a guarantor). The present value of lhe
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 th.e 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 Clleludabilily of interest
on the Celtif1eates from the gross income of their owners.
EXECUTED and DELIVERED lhis _____ day of ______ , 1992.
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OfflCIAL STATEMENT
Dated Jul)' 20, 1992
l'n the opinion of Bond COUDBCI, interest 011 lhc C.mlicatea will lie excludable from"°"• lnco1116 for fodotal iru:ome tax purposea underoxisling
law, 1Ub,ic<:t to lhe mattera described under "Tax Exemption" herein, including the alternative minimum tax on corporatiOIIS.
Dated: August 15, 1992
$7,565,000
CITY OF LUBBOCK, TEXAS
(Lubbock Cuunty)
TAX AND WATERWORKS SYSTEM (LIMITED PLEDGE)
REVENUE CERT1f1CATES OF OBLIGATION, SERIES 1992
Due: Feliruary 15, as shown bElow
l.olereat on.the $7,S6S,000City of Lubbock, Texas (.lbo "City") Tax and Waterworta Systom (Umii.:4 Pledge)R.evcnueCertificate• of Obligation,
Serie• 1992 (the "Certificate$") will accrue from the dated date •s lbown above and will l'>c payable February 15 and August IS of each year,
commencing Fel>ruary U, 1993, and will be calculai.:4 on the bHia of a 360-day year of twelve 30-day monlh1. The City intends lo utilli!e 1he
Boot-Entry-Only Syatem of The Depository Tnist Company ("DTC"), bu.t'ftaervea lhe right on ita behalf or on lhc behalf of DTC to diaconlinue
ouch ayatern. Such Book-Entry-Only Syatcrn ,.;11 affect the melhod llid liming of payment and the method of lrllnmr (aee "Certificate
Information. Boot-Entry-Only Syatern"). '
1heac CertificatH constitute direct obligations of the City, payab'le from a combination of (i) the levy and collection of a direct and continuing
ad valonm tax, ,.;d,in the limits prescribed by law, on all taxable property wilhin the City, and (Ii) a limited pledge of nel ft Venues of.the City•,
Waterworks Syatem, as pn:wided in the ordinsnee authorizing lhe Certificates (!he "Ordinsru:e") (aee "Certificate Information• Authority for
lssuattCe and Security for Certif,catea"). ·
The initial Paying Agent/Registrar &hall be the Nation•Bank of Texas, N.A., Fort Worth, Texas (:sei 'Certificate Information -Paying
Agent/Registrar"),
Proceeds from the .. 1e of lhe Certificates will be used to pay contractual obligations incurred for (i) land acquisition and aite improvements
including Waterworka System and Sewer Syatem extensions and improvement& in connection wilh construction of a TCXlls Department of
Criminal Jusllce Correctional Pllychialrie Facility, (ii) Solid Waste DiSPOMI System improvements, and (Lii) professional IM>rvieea.
Amount
$635,000
635,000
640,000
640,000
640,000
475,000
47S,OOO
47S,OOO
475,000
47S,OOO
Maturity
1993
1994
l99S
1996
1997
1991\
1999
2000
2001
2002
MATURITY SCHEDULE
Price
or
--EJl!L. .;...)'.WL_ Amount
$200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
Maturity
2003
2004
200!!
2006
2007
2008
2009
lOIO
2011
2011
Price
or.
--EJl!L. .;...)'.WL_
The City ft:serves lho ri.eht, al ita option, to redeem Certificates having ll.llted maturillea on and after Febn.iary IS, 2003, in whole or in part
in principal amounta of $.5,000 or any bitegt11I multiple !hereof, on February 15, 2002, or any date thereafter, at the par value thereof plus
accrued interest lo die date fixed for redemption (tee 'Certificate Information• Redemption of Cerlilicatea").
lbe presently outstanding tax supponed debt of the City ia rated • Aa" by Moody's Jnvemor., Service, h, ('Moody'•") and •AA• by Standard
& Poor'• Corporation ('S&P"), Requests for mting for lhe C.rtiflC&les have been made to both rating aervices (see 'Ratings').
The Certilicstca are offered for delivery whon, as and if issued and received by the purchatera and subject lo the approving opinion of the
Auomcy General of the State of Texas and of Fulbright A Jaworski, Bond Counsel, DaUaa, Texas. The legal opinion will be printed on lhc
Certificate• (aee Appendix C, "Form of Bond Counsel'• Opinion"). Delivery of the O,_rtificate• ia &111Wipated on or about September 9, 1992.
This Ojfidal Starement dnes Mt roruti.tute an offer to sell Certificates i.n any jurisdiction to any person to whcm it is unlawfal
to make such offer in such jurisdiction. No dealer, salesman, or any other person has been authcri;;ed to give any information
or make any represento.ticn, other than these contained herein, in connection with the offering ef these Certificates, and if given
or ma,k such ilifonnation or representation must not be relied upon. The i,ifonnation and expressions ef opinion herein are
subject to change withcut notice and neilher the defivery of this Oj/idal Statement nor any sale made hereunder shall, under
any circumstances, create any impficarion that there has been no change in the affairs efthe 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 • , • . . . • • . . • . . . 3
SELECTED DATA FROM THE OFFICIAL
STATEMENT . . . . . . . . . . . . . . . . . . . . . 4
CERTIFICATE INFORMATION
Authority for Issuance ..•..•••....... ,
Security for Certificates • . . . • . • , • . • . • • .
Redemption of Certificates . , , • • • . • , . . • .
Book-Entry-Only System .•. , .•.• : · .•...
Paying Agent/Registrar ..•...•..•.•..•
Transfer, Exchange and Registration ...•••.
Limitation on Transfer of Certificates Called for
Redemption .................. .
Record Date for lnterest Payment • • • • • • . • •
Use ofCe:rtificate Proceeds .•.••••. , ••••
Sources and Uses of Funds
TAX INFORMATION
Ad V alorem Tax Law
6
6
6
6
7
7
8
8
8
8
9
Valuation, Exemptions and Debt Obligations . . 10
Tax.able Assessed Valuatiomi by Category· •·• • • 11
Valuation and Funded Debt History . . . . : • • . 12
Tax Rate, Levy and Collection History .. , . . . 13
Ten Largest Taxpayers . . . • • . . . . . . • . • . . 13
Tax Rate Limitation . . .. . . .. . . .. . . • . • 14
Assessed Valuations, Tax Rates, Outstanding Debt
and Authorized But U nissued Bonds of
Overlapping Taxing Jurisdictions IS
DEBT INFORMATION
Debt Service Requirements . . . . . . . . . • . • • 16
Division of Debt Service Requirements . . . • . • 17
Estimated Direct and Overlapping funded Debt
Payable Prom Ad Valorem Taxes . . . . . . 18
Interest and Sinking Pund Budget Projection • . . 19
Computation of Self-Supporting Debt ·
Waterworks System .•. , . • • . • • . . • . 19
Sewer System . . . . . . • . . . . . . • • • • . 20
Solid Waste Disposal System . . • • • . . • 20
Golf Course Facilities . . . . . . • . . . . • . 21
Authorized General Obligation Debt • • . . . . . . 21
Anticipated Issuance of Authorized General
Obligation Bonds and Other Obligations • • 21
Citizens Advisory Committee , • . . • . • . . . . . 21
State Revolving Fund ("SRF") Loan Program . • 22
2
Funded Debt Limitation
Other Obligations ....••••.•.....••.•
Pension Fund •.•.......••• , ....••.
FINANCIAL INFORMATION
22
23
26
General Fund Revenues and Expenditures 27
Municipal Sales Tax History • . • • . . . . . . . . 28
Financial Policies . .• . • . . • , • . . • • , . . • • . 28
THE WATERWORKS SYSTEM . . . . . . . . . . 30
THE SEWER SYSTEM .. . .. .. . . . .. . .. . 32
THE SOLID WASTE DISPOSAL SYSTEM ... 3S
THE GOLF COURSE FACILITIES ........ 37
OTHER RELEVANT INFORl\fATION
Ratings ......................... 38
Tax Exemption .•...• , , •.• , • . • • . . . . 38
Tax Accounting Treatment of Discount
Certificates ......•. _. , , . . • . . . • . · 38
Litigation .••..•....•.•• , ..• , . . . . . 39
Registration and Qualification of Certificates for
Sale . . . . • • . . . . . . . . . . . . • . . • • • 39
Legal Investments and Eligibility to Secure Public
Funds in Texas . , .... , • . • . • . . . . . 39
Legal Opinions and.No-Litigation Certificate ·., 39
Authenticity of Financial Data and Other
Infonnation . . . . . . .. .. .. . . .. .. . 40
Financial Advisor . • . . . . . . • . • , . . • • , . • 40
Certification of the Official Statement . . . . . • . 40
APPENDICES
General Infonnation R~,garding the City A
Form of Bond Counsel's Oplnion • . . . . . . . • . B
EXCERPTS FROM THE COMPREHENSIVE
ANNUAL FINANCIAL REPORT . .. . . Enclosure
The cover page hereof, this page, the appendices included
here, the Financial Statements, and any addenda,
supplement or amendment hereto, are part of the Official
Statement.
,,..
-
Ma111io Tn,jo
Mayo, Pro Tem ml!
Councilmember, DiaUic! l
T .J. l'llttenon
Couxicllmemh«, Di,,lrict 2
M. I .. "Bud• Adettou •
Cowtoilm"'1bcr, District 3
Maxlnco
Councilmembe, ,I>illtrict 4
R.u,dy Neugebeuer
Councilmember, Diatrlct 5
Alex 'Ty" C>ol::
C-Ouncllmember, District 6
Elcctod
May 2, 1992
8 y...,.
Elcct<d
May 30, 1991
E!«;led
Moy l, 1992
E""""" May 30, 1992
Term
Exp½,,
MAy, 1994
May, 1996
May. 1994
May, 1996
May, 1996 Inveatment»
• Mr. Allerton pteYi<>usly •crvod u a Cow:icllmemberfor 6 yean 1978-19114.
Appointed Ofticlal,
Name
larcy 1. Cwiningham
Bob Cua
lohn C. Rm•. Jr.
hn.-lk>)'d
1. J!obertMeo_.
IUtA P. Hmn<111 tam .. E. llertnun
Cam,U McD<>nald
Dav-1 Ellooa
DanA. Hawkin,
uonaMaxwoll
Rod lilli,
Don Bridge,.
C""""""""andAIMAon
CityM-ger
Deputy City Mooagor
City Att.omey
~-T-=r
Ass"111nt City Manager for Fmancial S.rvic<o
AM-City Mm,oger for Public Safety and Sen,.,..
Assismnt City Mannger for Development krvicu
Aaistant C'rty Mill:mg<rfor Utllidea
Aas Dtant City Manager f-or M~ Serv~
Director of Water Uti.Utiea
Director of C..tomer Serv.icta/Publie Relelio111
Director of Bwtiru::as .]telations/Ecocomic: I)eveJopmeot
Chief of Police
Lenglbof
Ti.mo in
This Poaition
16 y..,.
7y...,..
14 y...,. gy..,.
lOYean 1ov...,.
lOYem 3 y..,.
l Year
3Yoan zy...,. zy..,..
2Ycan
Leogthof
Employment
With Ci\)I
of I.ublxx:k
26Yean
16 y .. ,..
14y..,.
14Yeara
12Yean
16 Yean
l2Ye11,n
13 y..,..
lY-sy..,.,
33 Yean
gy..,.
24 y..,..
CM#ulting Eng°""'" for Lake Alan Hcru:y . . ••• , • . • • • . • • • • • • • . • . • • . • • • • • . • • • • • • • • • • • • • , ••••••••••• F...,.e and Niohol,, Inc.
Fo,t W011h, Tuas
Comulting Engineen for Waowwal« T""'tmrot ml! Dupow Projoct , ••.. , , .••••••••• , . , , .••• , ••••••••.•• , •.• , , • . Bl.eek & Veatch
Dalla,, Te,..
C.,.,..,Jting Engloeen fo, Solid Wute Projoct1 , •••. , ••.••••••••••••...•.••••••••.• , ••••••••••••••••••• HOR Eagi,,oen, Inc.
Dallaa, TWIii
Audiron ..•............. , , ............•..... , ...•......• , . , . . • . . . . . . . . . . ...•.•..... , •• Coopen & 41brand
Lubbock, T=u
BoNI Coumel , • , , , , , •• , • • • .•••• , .••••••• , ..• , •.••••••••.••• : •••••••••••.•.•.••.••••... , .. Fulbright&. Jawonki
· Dall.a.8. Toxu
FiPauclal Advisor , • • • • • . • • • • . • • , . . • • • • • . . . • • • . • • • . • • • •••••..••.•.••••••••••••••••.••• .Fm South,....t Compimy
Mr. J. Rob<lt Maa11et1plo
AMiltant City Mluu,ger for Fmanciol Servku
City of u,bbock
P. O. Box lOOO
Lubboclc, TX 19451
(806) 767-l0!S
Mr. Joe W. Smith
First 5<,uthw..t Company
P, 0, Box 2754
Abi!Mo, TX 79604--2154
(915) 67l..a432
3
.o.n.. !Ind Abil<ne, Ton&
SELECTED DATA FROM THE OFFICIAL STATEMENT
The selected data on this page is subject in all n:spects to the mon, complete information and definitions contained or
incorporated in this Official Statement. The offering of the Certificates to potential investors i.s made only by means of this
entire Official Statement. No person is authoriud 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 infonllation concerning the Certificates, revenues
pledged to the Certificates, a description of the revenue base and other pertinent data, all as more fully described lierein.
The Issuer .................... .
The Certiricates ................. .
Security for the
Certuicates . . . . . . . . . . . . . . . . . . . .
Optional Redemption ............. .
Tax Exemption ................. .
Use of Certirll:llte Proceeds . . . . . . . . . .
Payment Reconl ................ .
The City of Lubbock, Telllll! is a political subdivision located in Lubbock
County operating as a home-rule city under the laws of the State of Texas
and a chatter approved by the voters on December 27, 1917, and amended
from ti.me lo time. The Charter provides for the Council-Manager form of
government for the City. The Mayor is elected at-large for a two year reno
ending in an even year. Each of the six members of the City Council resides
in a separate single-member district a.nd is elected by the qu.alified voten 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 1990 U.S. Census population was 186,206 (1980 U.S. Census -
177,517). The City is approximately 104 square miles in area. Texas Tech
University, a major State institution, is located in Lubbock.
The Certificates are being issued in the principal amount of $7,565,000
pursuant lo the general laws of the State of Texas, particularly Subchapter
C of Chapter 271, Texas Looal Government Code (the Certificate of
Obligation Act of 1971), as amended, and an Ordinance passed by the City
Council of the City (•ee "Certificate Information -Authority for Issuance").
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 limited pledge of net revenues of the City's Waterworks
System (see "Certificate Information • Security for Certificates").
The City n:serves the right, at its option, lo redeem Certificates having stated
maturities on and after February 15, 2003, in whole or in part, on
February 15, 2002, or any date theresfter, at the par value thereof plus
accrued interest to the date fixed for redemption (see "Certificate Information
-Redemption of Certificates").
In the opinion of Bond Counsel, the interest on the Certificates will be
excludable from gross income for purposes of federal income tax purposes
under existing law, subject lo the matters described under "Tax Exemption"
herein, including the alternative minimum tax on corporations.
Proceeds from the sale of the Certificates will be used to pay contractual
obligations to be incurred for (i) land acquisition and site improvements
including Waterworks System and Sewer System extensions and
improvements in connection with construction of a 550 bed Texas
Department of Criminal Justice Correctional Psychiatric Facility, (ii)
improvements lo the City's Solid Waste Disposal System, and (iii)
professional services.
The City has never defaulted.
4
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Selecti!d Issuer Indices
Ratio
Genenl
Pct 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
~ Pooulati!llJ Valuation Valuation Debt (I) Debt Valyation Collections
1988 190,01711) $4,476,572,268 $ 23,SSB $ 39,670,291 $ 209 0.89% 98.94%
1989 191,403(2) 4,567,387,737 23,863 43,066,998 225 0.94% 98.98%
1990 186,206(1) 4,6-lS,914,710 24,950 39,179,057 210 0.84% 99.10%
1991 187,137(2) 4,718,788,593 25,216 42,474,916 227 0.90% 99.42%
1992 187,493(2) 4,741,607,780, 25,290 42,958,202 (<) 229<<, 0.91%(<) 96.17%0>
1993 187,493<:l> 4,667,519,371 24,894 38,990,305 (<) 20s<., 0.84% (<) N.A.
(1) Excludes self-supporting general obligation debt (see "Valuation, Exemptiom and Debt Obligations"; "Valuation and Funded
Debt History" and "Computation of Self-Supporting Debt").
(2) Source: Estimates by City of Lubbock, Te:iw.
(3) 1990 U.S. Census.
(4) Anticipated.
(S) Collections for part year only, through S-31-92.
·s
CERTIFICATE INFORMATION
Authority fo.r ls:iuance
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 an Ordinance passed
by the City Council.
Security for Certif"Jcates
All taxable property within the City is subject to a continuing direct annual ad valorem tax levied by the City sufficient to
provide for the payment of principal of and interest on all obligations payable in whole or in part from ad valorem taxes, which
tax must be levied within limits prescribed by law. Additionally, the Certificates are payable from and secured by a limited
pledge of surplus net revenues (not to exceed $2,SOO during the entire period the Certificates or interest thereon remain unpaid)
of the City's Waterworks System as provided in the Ordinance authorizing the Certificates. The City operates under a home-rule
cham:,r as authorized by Article Xl, Section S 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.
Redemption of Certificates
The City reserves the right, at its option, to redeem Certificates having stated maturities on and after February lS, 2003, in
whole or in part in principal amounts of $5,000 or any integral multiple thereof, on February 15, 2002, or any date thereafter,
at the par value thereof plus accrued interest to the date fixed for redemption. If. less than all of the Certificates are to .be
redeemed and if less than all of a maturity is to be redeemed, the Paying Agent/Registrar shall determine by lot the Certificates,
or portions thereof, within such maturity to be redeemed.
Not less than 30 days prior to a redemption date for the Certificates, the City shall cause a notice of redemption lo be sent by
United States mail, first class, postage prepaid, to each registered owner of a Certificate 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 certificateholder.
Book-Entry-Only System
The Depository Trust Company ("DTC"), New York, New Yott, will act as securities depository for the Certificates. The
Certificates will be iBsued 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.
OTC 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 the Federal Reserve System, a "clearing corporation" within the meaning
of the New Yorlc Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17 A of
the Securities Exchange Act of 1934. OTC holds securities that its participants ("Direct Participants") deposit with OTC. OTC
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 Assodation 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 Certificates under the OTC system must be made by or through Direct Participants, which will receive a credit
for the Certificates on DTC's records. The ownership interest of each actual purchaserof each Certificates ("Beneficial Owner")
is in tum to be reoorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written
confinnation from OTC 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. Transfe.rs 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 Certif~•• except in the event that use of the book-entry system is discontinued.
6
,..,
To facilitate subsequent transfers, all Certificates deposited by Direct Participants with DTC are registered in lhe 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. OTC bu no knowledge of the actual Beneficial Owners of the Certificates; DTC's records
reflect only the identity of lhe 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 OTC to Direct Participants, by Direct Participants to Indirect Participants,
and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by ammgements among them, subject
to any statutory or regulatory requirements as may be in effect from time to time.
Neither OTC nor Cede&. Co. will consent or vote with respect to the Certificates. Under its usual procedures, OTC 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 OTC. DTC's practice is to credit Direct Participants'
accounts on payable date in accordance with their respective holdings shown on DTC's records unless OTC has reason to believe
that it will not receive payment on payable date. Payments by Participants to Beneficial Owners will be governed by standing
instructiollll 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 OTC, the Paying Agent/Registrar or the City, subject
to any statutory or regulatory requirements as may be in effect Crom time to time. Payment of principal and interest to OTC
is the responsibility of the City, disbursement of such payments to Direct Participants shall be the reaponsibility of OTC, 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 us of the system of book-entry transfers through OTC (or a successor securities depository).
In that event, Certificates will be printed and delivered.
Use of Certain Terms in Other Sections of rhis Official Stalemelll. 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 intereat in the Certificates, but (i) all rights
of ownership must be exercised through OTC and the Book-Entry-Only System, and (ii) except as described above, notiees that
are to be given to registered owners under the Order will be given only to OTC.
Information concerning OTC and the Boole-Entry-Only System has been obtained from OTC and is not guaranteed as to accuracy
or completeness by, and is not to be construed as a representation by the City or the Underwriten.
Paying Agent/Registrar
The initial Paying Agent/Registrar is NationsBank of Texas, N.A., Fort Worth, 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/Registnir 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 lhe
Certificates, the City agrees to promptly cause a written notice thereor to be sent to each registered owner of the Certificates
by United States mail, first class, postage prepaid, which notice •hall also give the addreu of the new Paying Agent/Registrar.
Transfer, Exchange and Registratioo
In the event the Book-Entry-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 accq,table to the
Psying Agent/Registrar. A new Certificate or Certificates 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,
f=t class, postage ptepaid, tc the new registered owner or his designee. To the extent possible, new Certificates issued in an
7
exchange or tnnsfer of Certificates will be delivered to the registered owner or assignee of the registered owner in not mon:
than three business days after the receipt of the Certifwates to be cancelled, and the written instrument 9f transfer or request
for exchange duly executed by the registered owner or his duly authorized agent, in fonn satisfactory to the Paying
Agent/Registrar. New Certificates registered and delivered in an.exchange or transfer shall be in any integral multiple of SS,000
for any one maturity and for a lilce aggregate principal amount as the Certificate or Certifwates surrendered for exchange or
transfer.
Limitation -00 Transfer or Certificates Called for Redemption
Neither the City nor the Paying Agent/Registrar shaU be required to transfer or exchange to an assignee of the owner of the
Certificates any Certif=te called for redemption, in whole or in part, within 45 days of the date fixed for redemption; provided,
however, such limitation of transfer shall not be applicable to an exchange by the registered owner of the uncalled balance of
a Certificate.
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/Regilllrar, 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 sueh notice.
Use or Certificate Proceeds
Proceeds from the sale of the Certificates will be used to pay contractual obligations to be incurred for (i) land acquisition and
site improvementa including Waterworks System and Sewer System extensions and improvements in oonnection with construction
of a 550-bcd Texas Department of Criminal Justice Correctional Psychialric Facility, (ii) Solid Waste Disposal System
improvements, and (iii) professional services.
Sources and Uses of Funds
The construction program will be funded approximately as follows:
Sources:
Proceeds from Sale of Certificates
Uses:
Estimated Cost of land acquisition and site
improvements including Waterworks System and
Sewer System extensions and improvements
in connection with construction of a SS().bed
Texas Department of Criminal Justice Correctional
Pllyehiatric Facility
Estimated cost of Solid Waste Disposal System
improvements
Total
* Includes professional services and costs of issuance.
g
$7,565,000
$4,000,000
3,565.000
$715651000 *
,.
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TAX INFORMAnON
Ad Valorem Tax Law
The appraisal of property within the City is the responsibility of the Lubbock Central Appra.i.sal District .. Excluding agricultural
and open~ce 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 011 the basis of 100% of its market value and is
prohibited from applying any assessment ratios. The value placed upon property within the Appraisal District is IIUbject 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
limitatiom applicable to the levy and collection of ad valorem taxes.
Article VIII of the State Constiiution ("Article VIII") and State law provide for certain exemptions from property taxes, the
va!wttion of agricultural and open-space lands at productivity value, and lhe exemption· of ce.rtain personal property from ad
valorem taxation.
Under Section 1-b, Article Vnt, and St.at., law, the governing body of a politic/11 subdivision, at its option, may also 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 li:om 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.
State law and Section 2, Article Vlll, mandate an additional properly tax exemption for disabled vew-ans 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 properly with the amount of assessed valuation exempted ranging from $1,SOO to a maximum of $3,000.
Article VIII provides that eligible owners of l:,olh 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 l-d-1.
Nonbusiness personal property, such as automobiles, boats or light trucks, are exempt from ad valorem taxation unless the
governing body of a political subdivision elects to tax this property.
Article VIU, Section 1 ·j of the Texas Constitution provides for "freeport property• to be eltempted from ad va!orem taxation.
Freeport property is defined as goods detained in Teus 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 revemd. The City has taken action to tax freeport property.
The City grants an exemption to the market value of the residence homesread of persons 65 years of age or older of $16, 700;
the disabled are granted an exemption of $10,000.
The City has not granted an additional exemption of up to 20% of the mllfket value of residence homesleads; minimum
exemption of SS,000. ·
The City does not tax nonbusiness vehicles; and the Lubbock Central Apprais/11 District collects taxes for the City of Lubbock.
9
Valuation, Eumptions and Debt Obligations
1992 Market Valuation Established by Lubbock Ccncra.t Appraisal
District
Less Exemptions/Redw::tionsat 100% Market Value:
Residence Homestead (Over 65 or Disabled)
Disabled V etcrans Exemptions
· · Agricultural/Open-Space Land Use Redw:tions
Value lost because property is e,,.emptcd from taxation under the
Property Redevelopment IUld Tax Abatemeat Act m
Property Under Protest"'
1992 Tlll!Able Assessed Valuation
City Funded Debt Payable From Ad Valorem Taxes: "'
General Obligation Debt (as of 6-15-92)"'
The Cenificllles
Less Self-Supponing Debt: "'
Waterworks System General Obligation Debt
Sewer Syotem General Obligation Debt
Solid Waste Dispofial Syll!em General Obligation Debt l<I
Golf Course General Obligation Debt
General Purpose Funded Debt Payable From Ad Valorem T&lles
In-and Sinking Fund (u of 6-15-92)
s 170,811,066
3,415,191
33,.S.S.S,206
.S,004,673
72,548
$ 124,303,752
7,565.000
$ 34,665,883
48,929,386
4,680,2&1
~i-000
S 4,880,408,055
212,888,684
$ 4,667,519,371
S 131,868,752
$
$
8&,910,550
42,958,202
1,422,711
Ratio Total Funded Debt to 1992 Taxable.Assessed Valuation ..• , •..••••....•...•.•.•.... , •..... 2.83%
Ratio General Purpose Funded Debt to 1992 Tllltllble Assessed Valuation •••...•.•........•....•...•• 0.92%
1992 Estimated Population -·· 187,493 m
Per Capita 11192 Taxable Assessed Valuation• $24,894.37
Per Capita General Purpose Funded Debt• $229.12
(1) Anicle l066f, VTCA, permits grllllting of tax abatements for qualifying businesses; the City bas entered into one such agreement
with Mclane Foodservice-Lubbock, a divilion of Mclane, Inc., Temple, Texas, an institutloll41 food service distributor. The
abatement, which began in the 1988 tax year, covers McLane's improved real property in the City of Lubbock. The contract
provides for the agreement to expire when Mclane Foodservk:e receives $770,000 in total ta.x abatement relief from all of the
panicipants (collectively} or ten years, whichever comes rtrll! from date of execution, June 23, 1986; other participnnts in the
abatement include Lubbock County, Lubbock County Hospital District, Lubbock Independent School District nnd tbe High Plains
Underground Water Conservation District No. I . Market value of the property is $6,0 I 5, 985 IUld the Wable value of the property
after abatement is $981,312 resulting in an abated value of SS,004,673.
(2) Market valuation of property under protest on date of ceniftcation; final madcct valuation to be added tow rolls "'11en settled.
(3) The statement of mdebtedness does not include the outstanding $39,234,965 Electrk: Light and Power System Revenue Certificates
as these bonds are payable solely from the net revenues of the System. The statement also docs not Include outstanding $625,000
Airpon Revenue Bonds, u these bonds are payable solely from gross revenues derived from the City of Lubboclc Airpon .. The
Waterworks System and the Sewer System arc unencumbered with Revenue Bond Debt.
(4) Includes $J,6SS,000 Combination Tax and Sewer System Subordinate Lien Revenue Certificates of Obliglltion, Seri,.,. 1991 (the
• 1991 Sewer System Certificates"), in procesa of delivery to the Texas Water Development Board ("TWDB'); proceeds are being
used to pay costs of the 'Project A• segment of the City's major wastewater treatment plant improvement program. Also includes
$34,520,000 Combination Tax and Sewer System Subordinate Lien Revenue Certificates of Obligation, Series 1992 (the • 1992
Sewer Syatem Certificates') delivered to TWDB on June 8, 1992, the proceeds to pay costs of the Project "B' segment of the
wastewlller treatment plant program. Debt service on the 1991 and 1992 Sewer System Cenificates is and will be provided from
net revenues of the Sewer System a.nd they are included in "Self-SupporUng Debt', above. See "State Revolving Fund ('SRF")
Lonn Program•.
(5) See 'Computation of Self-Supporting Debt'.
(6) Include• $3,565 ,OOOprincipal amount of the Certificates.
(7) Source: City of Lubbock, Texas.
10
I"
l ) --J • ) Taxable Assessed Valuations by Catej!ory !&!mn Real, Residential, Si11gle-Family Real, Reaid<mtial, Mulfi..Family Real, Vacant Lote/Tnu:ts Real, A=agc (Land Only) Real, Farm and Ranch Improvements RCftl, Commercial 811d Industrial Real, OU, Gas and Other Mineral Reserves Real and Tangible Personal, Utilitice Tangible Personal, Commercial and Industrial Tangiole Personal, Other Real Property, Inventory 0> Total Appraised Valilc Before Exemptions Less: Total Exomptions/Reduetions TaxableAsseucd Value !&!egory Real, Residential, Single-Family Real, Residential,Multi-Family Real, Vaeant Lots/Tracts Real, Acreage (Land Only) s Rcsl, Farm and Ranch Improvements Real, Commercial and Industrial 1993 Aml!unt 2,479,218,812 304,357,639 101,678,443 47,958,020 14,042,6S7 1,011,377,194 24,859,646 150,001,444 717,976,88.S 7,746,728 l~,190J81 4,880,408,055 $ Real, Oil, Gas and Other Mineral Rcservea Real IIJ!d Tangible Personal, Utilities Tangible Personal, Commercial and lndusttial Tangible Pcnonal, Other Real Property, Inventory "' TOlal Appraised Value Before Exemptiona Less: Total Exemptions/Reductiona Taxable A-•sed Value s $ ) ) ) ) Taxable Al!l!raised Valye l:!U Fiscal Yw; Ew;lcd Seotcmber 30, I~ 1221 % of % or ...Ill!!!L Amount -1!ll!!_ AmOJ!lll 50.80% $2,449,828,200 49.49% $ 2,413,92.S,206 6.24% 304,256,344 6.!Sll 313,170,381 2.21% 111,914,454 2.26% 117,839,348 0.98% 48,816,013 0.98% S2,4S3,.S90 0.29% 13,063,630 0.26% 13,508,943 20.72% 1,073,602,333 21.69% 1,076,715,771 0.51% 25,638,500 0.52% 22,182,456 3.07% 147,789,832 2.98% 153,608,032 14.71% 755,234,901 l.S."26% 745,511,197 0.16% 7,363,639 0.15% 6,3fi0,698 __JL.ll% 12,759,249 _D.:M% 15,746,17~ 100.00% $ 4,950,267,095 100.00% $ 4,931,021,795(:!) 20816S9,31~ 212,~J.Z:!!~ i •.~ !.fi07 ,780 ! 4 ,Z 1117881~93 Taxable Appraised Value For Fiscal Year Ended September 301 1990 1989 Amount 2,383,736,852 319,554,804 114,489,842 49,704,917 21,391,S76 1,063,031,842 17,009,395 IS3,0S2,ll6 696,846, 104 9,805,356 19,736.977 4,848,359,781 202,44S,071 % of .....I!!lL 49.17% 6.59% 2.36% 1.02% . 0.44'6 21.93',IG 0.35% 3.16\'li 14.37% 0.20% ~% 100.00% $ $ $ Amount :Z,346,063,91.S 331,959,071 100,449,123 68,423,836 IS,76S,94S 1,024,709,193 13,059,266 147,145,068 680,408,987 12,548,767 18.271,912 4,7.SS,811,083 191,423,346 4.s6113s1 .n1 l'I> of ~ 49.30% 6.98% 2.111'1, 1.44% 0.33% 21.S4'!1i 0,27% 3.09\11, 14.30% 0.26% 0.38'6 100.009' ) % of ...Ill!!!L 48.95% 6.35% 2.39% 1.06% 0.27% 21.84% 0.45% 3.12% 15.12% 0.13% _!l,.ll% 100.00% (I) Retidential inventory properties In the hands of developers or builders; ei1eh group of properties in this category is appraited on the basis of its value u a whole as a 88.le to another developer or builder, Thia category initiated in 1988. (2) Includes an audited adjustment of $6,919,621 in taxable values. Note: Bll•i• of assessment for all years is 100% of appraised (marl«lt) value. TIIJ<Able properties are revalued each year. )
Valuation and Funded Debt History
Ratio
Geoeral General
Purpose Purpose
Funded Funded General
Fiscal Taxable Tax Debi Debt to Purpose
Year Taxable Assessed Outstanding Taxable Funded
Ended Estimated ASllessed Valuation at Bnd Assessed Debt
~ f21:!ulation !I> Yl!luation (2) Pe[ !&l!.!!!! of Yearm Valuation Per Capjta
1983 181,SOO $ 3,14S,9S2,S86 $ 17,333 $ 46,653,756 1.48% $ 257
1984 182,103 3,233,722,496 17,7.SS 47,257,744 1.46% 260
1985 187,629 3,764,763,644 20,065 43,320,601 1.15% 231
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,S.S8 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 42,474,916 0.90% 227
1992 187,493 4,741,607,780 25,290 42,958,202 (4' 0.91% 229 (4)
1993 187,493 4,667,519,371 24,894 38,990,305 ,., 0.84%(" 208 (4)
(1) Source: City of Lubboek, Texas, except 1990 is U.S. Census.
(2) Basis of assessment fur all years 100'!1, of)narket value. All taxable property is revalued each year.
(3) Funded Tax Debt leas Self-Supporting Funded Tax Debt. Derivation of General Purpose Funded Ta.x Debt is:
General
Purpose
Funded Funded
Fiscal Tax Debt Less: Tax Debt
Year Outstanding Self-Supporting Outstanding
Ending at End Funded Tax at End
_2:l!L of Year Debt of ):'.ear
1983 $ 81,500,000 $ 34,846,244 $46,653,756
1984 89,180,000 41,932,256 47,247,744
1985 82,.SJS,OOO 39,214,399 43,320,601
1986 79,889,070 40,040,388 39,848,682
1987 78,279,070 40,739,059 37,540,011
1988 82,958,752 43,288,461 39,670,291
1989 86,898,7.S2 43,831,754 43,066,998
1990 79,088,752 39,909,646 39,179,106
1991 9.S,783,752 53,308,836 42,474,916
1992("> 131,868,752 88,910,.SS0 42,958,202
1993('1 122,933,752 83,943,447 38,990,305
Note: For all years Self-Supporting Debt includes Waterworks System and Sewer System General Obligation Debt. 1988-1993
includes Golf Course General Obligation debt. 1991 and 1993 includes Solid Waste Disposal System General Obligation Debt.
See "Valuation, Exemptions and Debt Obligations•.
(4) Anticipated; includes the Certificate•.
12
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,...
.-
Tax Rate, Levy and Collection History
Fiscal
Year Distribution
Booed Tax General Economic Interest and % Current % Total
9-30 Rate ~ J;!evelooment Sinking Fund Tax !&!!I ~lJ!l9!l!nS Collections
1983 $0.61 $0.2791 $0.05 $ 0.2809 $19,190,311 92.94% 97.30%
1984 0.61 0.2230 o.os 0.3370 19,725,707 95.32% 97.94%
1985 0.61 0.2105 0.05 0.3495 22,966,969 93.76% 95.92%
1986 0.60 0.2553 0.05 0.2947 24,077,408 94.16% 96.60%
1987 0.60 0.2762 0.05 0.2738 26,448,985 9S.15% 98.85%
1988 0.61 0.2767 0.05 0.2833 27,303,606 95.94% 98.96%
1989 0.64 0.3171 0.05 0.2729 29,231,282 96.01 % 98.98%
1990 0.64 0.3314 0.05 0.2586 29,733,854 · 96.15% 96.10%'
1991 0.64 0.3468 0.03 0,2632 30,200,247 96.58% 99.42%
1992 1" 0.64 0.3754 0.03 0.2346· 30,397,225 94.81 t,(I) 96.17%(1)•
(1) C!)llec1ions for part year only, through 5-31-92. .
(2) The City's 1992tax rate for F°1Scal Year Ending 9-30-1993 will be fuwly levied on September 10, 1992. The preliminary 1992 tax rate used for budget planning is $0.64 ($0.4056 • General Fund; $0.03 -Economic Development; $0.2044 -
Interest and Sinking Fund).
Property within the Cify is ,assessed as of January 1 of each year (except for business inventory which may, at the option of tlie
taxpayer, be assessed as of September 1 ); taxes become due October 1 of the same y~, and become delinquent on February .1
of the following year. Split payments are not permitted. Discounts are not allowed. Taxpayer& 65 years of age or older are
permitted by Stare law lo pay taxes on homesteads in four installments widi the first due on Februaiy .1 of each year and the
final inst.ailment due on August 1.
Charges for penalty and interest on the unpaid balance of delinquent taxes are made as follows:
Month Pe!!!!.ltt Interest •Total
February 6% 1% ~
March 7% 2% 9%
April 8% 3% 11%
May 9% 4% 13%
June 10% 5% 15%
July 12% 6% 18%
After July, penalty Temains at 12%, and interest increases at the rate of I% each month. In addition, if an account is delinquent
in July, a IS% attorney's collection fee is added lo the total tax penalty and interest charge.
Ten Largest Taxpayers
Name of Taxpayer
Texas Instruments Incorporated
South Plains Mall
Southwestern Bell Telephone Company
Southwestern Public Service Company
Plains Co-op Oil Mill
First National Bank
Farmers Co-op Compress
H. A. Sessions
Fleming Companies
Energas Comp.any
Nature of Property
Electronics Manufacturer
Regional Shopping Mall
Telephone Utility
Electric Utility
Agricultural Processing
Bank
Cotton Compress
Commercial Property and Other Real Estate
Wholesale Groceries
0811 Utility
13
1992
Taxable
Assessed
Valuation
$ 79,873,471
72,148,441
69,274,591
41,871,856
20,985,250
18,936,523
16,793,487
15,384,330
14,516,286
11,963,640
!361,747,875
% of Total
Taxable
Asseased
Valuation
1.71%
1.55%
1.48%
0.90%
0.45%
0.40%
0.36%
0.33%
0.31%
~
7.7Sffi
Tax Rate Limitation
All tuable property within the City is wbjectto the assessment, levy and collection by the City of a continuing,direct annual ail valorem
tax suff"tdent to provide for the payment of principal of an<! interest on all 8'I valorem tax debt within the limits ~ibed by law.
Article XI, Seelion S, of the Texas Constitution is applicable to the City, and limits its maximum ad valorem IIIX rate to $2.50 per $100
Assessed Valuation for all City purposes. The City operale!I under a Home Rule Charter which adopts the constitutional provisions.
By each September I or as soon thereafter a.s practicable, the City Council adopts a tax ra!¢ per $100 taxable value for the current year.
The tax rate consists of two components: (I) a rme' for funding of ms.lntenance and operation expenditures, and (2) a rate for debt
service~
Under the Tax C,,de:
The City must annually calculate and publicize its "effective tax rate• and 'rollback tax rate". The City Council may not adopt a tax
rate thBI exceeds the lower of the rollback Wt rate or 103 'it, of !he effective tax rale until it has held 11. public bearing on the proposed
increase following notice to the taxpayers and otherwise complied with the Tax Code., If the adopted tax rate exceeds the rollback Wt
raie the qualified voters of the City by petition may require that an election be held to determine whether or not to reduce the Wt rate
adopted for the foU-ing year to the rollback tax rate.
'Effective tax rare• means the rate thal. will produce last year's total tax levy (adjusted) from this year's total taxable values (adjusted).
• Adjusted" means lost values a:re not included in tbe calculation oflast yCll.1''s taxes and aew values are not included in this year's taxable
values. ,
'Rollbac:k tax rate" means the rate lllilt will produce last year's maintenance and operation Wt levy (adjusted) from this year's values
{adjusted) from this year's values (adjusted) multiplied by I .OB plus a rate that will produce this year's debt service from this year'•
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 voterB to authorize 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
;:alculations re required to be offset by the revenue that will be gonerated by the salea Wt in the current )'Cll.1'. The City does not collect
the additional one-half cent sales taX.
Reference is made to the Tax Code for definitive requirements for the levy and collection of ad valorem Wtes and the ;:alculation of
the various defined rales.
14
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I I.
! ""'
Assessed Valuations, Tax Rates, Outstanding Debt and Authorize~ But llmssued Bonds of Overlapping Taxing JurisdictiODII
1991
Taxable
AsSC$SCd
Taxing Jurisdiction Valuation '"
Lubbodc Independent School District $ 4,349,847,667
Lubbock County 5,684,516,639
Lubbock County Hospital District 5,687,666,161
High Plains Underground Wa:er Conservation
DisUict No. I S,687,666,161
Lubbock-Cooper Independent School District ISS ,288,407
Frensbip lndependen! School District 430,276,751
Rooseveh Independent School District 108,494,241 ·
Idalou Independent School District 112,247,470
New Deal lndepcn,dent School District 81,340,230
County Educati(!n District No. 6 S,025,220,277 tll
(I) The 1992 Taxable Assessed Valuations of these Taxing Jurisdicti<l.rul are:
Taxing Jurisdictions
Lubbock Independent School District
Lubbock County
Lubbock County Hospital District
1991
Tu
~
$ 0.5300
0.1763
0.1095
0.0074
0.4980
0.3900
0.4300
0.3400
0.3333
0.7820
Oullltanding
Tu Supported
Debt AB of
6--15-92
$ 6S,674,989
5,280,000
-0-
-0-
S,430,000
27,330,000
-0-
2,960,000
1992
Tual>le
Assessed
Valuation
-0-
.:0.. "'
High Plains Underground Water Conservation District No. I
Lubbock-Cooper Independent School District
$ 4,257,707,757
5,S99,0SS,I 16
S,599,031,925
S .599 ,037 ,925
159,075,131
440,008,163
106,993,422
109,600,484
80,272,348
Frenship Independent School District
Roosevelt Independent School District
ldnlou Independent School District
New Deal Independent School District
County Education District No. 6
•Freeport property exemption applicable to County Education Dis1:ficts in 1992.
1992 Tu Rates will not be est11blished until late August or September.
4,904,S99,413*"'
Authorized
But Uni88Ucd
Debt AB of
6--15•2,
$ 100,000
500,000
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-ti)
{2) Assessed Valuation is for the school districts ln County Education District No. 6 that are assigned to Lubbock eo·uoty by the Central
Education Agency (Lubbock, Frenship, Idalou, Lubbock-Cooper, New Deal, Roosevelt, Shallowater and Slaton). County Education
District No. 6 is comprised of Oaines, Borden, Daw$on, Lubbock, Lynn, Terry and Yoakum Counties. A county education district
does not !Mlve the authority to issue debt, but levies lll1 operation and mainte.nance tax countywide for distribution to all school
districts located in the county or usigncd to the county by the Central Education Agency.
Soun:es: "Teus Municipal Reports• published by the Municipal Advisory Council ofTexas and the Lubbock CClltr8l Appraisal Disttict.
_15
Debt Serrice Reqail'l!llltnts Fiocal Year ,i; of Ending 2!!1>1anding Debt (II 1be Cel!ifioats •~ Combined Principal 9~0 fl:inoil!•I Inttrost T!!!!!I fl:imil!al Int•!!!! I!l!.111 Reguit!JD!ntt 11!!!!!!1 1992 s 8,675,000 ~ s 7,173,934 s 15,848,934 s $ $ $ 15,848,934 1993 8,300,000 8,341,763 16,641,763 63S,OOO 452,972 1,087,972 17,729,735 1994 8,380,000 6,Sn,210 15,257,210 635,000 413,284 1,048,284 16,305,494 1995 9,630,000 6,229,749 lS,859,749 640,000 373,440 1,013,440 16,873,189 1996 9,670,000 5,592,486 15,262,486 640,000 333,440 973,440 16,235,926 33.59,i; 1997 9,374,434 S,161,l!l7 14,536,251 640,000 293,440 933,440 15,469,691 1998 9,270,076 4,603,747 13,873,823 475,000 · 258,596 733,596 14,607,419 1999 9,046,493 4,044,171 , 13,090,664 475,000 228,908 703,908 13, 794,572· 2000 6,524,986 5,504,942 12,009,928 475,000 199,220 674,220 12,704,148 2001 6,134,442 4,662,221 10,796,663 475,000 169,532 644,532 11,441,195 64.tO,i; 2002 5,718,639 3,630,595 9,349,234 475,000 139,1144 614,844 9,964,078 2003 5,539,682 2,830,103 8,369,785 200,000 lll!,750 318,750 8,688,SJS 2004 4,515,000 2,041,752 6,556,752 200,000 106,250 306,250 6,863,002 2005 4,515,000 1,757,964 6,272,964 200,000 93,750 293,750 6,566,714 2006 4,520,000 1,477,326 5,997,326 200,000 81,250 281,250 6,278,576 82.66% 2007 4,520,000 1,197,704 5,717,704 200,000 68,750 268,750 5,986,454 i 2008 3,875,000 943,404 4,818,404. 200,000 56,250 256,250 5,074,654 = 2009 3,540,000 727,914 4,267,914 · 200,000 43,750 243,750 4,511,664 '"3, 2010 2,975,000 542,738 3,517,738 200,000 31,250 231,250 3,748,988 ~ .... 2011 2,980,000 374,376 3,354,376 200,000 18,750 218,750 3,573,126 96.10% "' 2012 J,BlS,000 240,213 2,055,213 200,000 6,250 206,250 2,261,463 ! 2013 1,730,000 142,725 1,872,725 1,872,725 2014 1,730,QQ!! 41,m I,111,m 1,m.~1s 100.00% 0 $ 132,978,752 $ 74,146,:129 s w,12s,181 $ ,,s6s,ooo $ 3.487,676 $ 11,052,676 $ 21s,m,§51 z Interest on the Certificates bu been calculated at 6 .25 % for purpoae• of illustration, (I) Includes $1,655,000 1991 Sewer System Cenilicate• and $34,520,000 J992Sewer System Certificat01 (Ne "Valuation, ExemptiOM and Debt Obligations' and 'State Revolving Fund ("SRF") Loan Progn,111 '). (2) Thi, $8,675,000 priru;ipal paid on February 15, 1992. (.l) $4,000,000 prinoipal amount of tho Ccnilicate• will be !teated by the City as General Puq,oae Genen,l Obligalion Debt with the proceeds to be ua.d for land acquisition and site improvements in eonneotion with oonstruotionof a Texas Department of Criminal Jurtioe Con:cotionalPsychiatric Facility, Th• remaining$3,56S,000principal amount of the Certificates is being isauod for Solid Waste Disposal System improvement,, and will be treated by tho City as a.If-supporting Solid Waste Dispoul System Gone111l Obligation Debt; due to the expected life of these improvements the City has Hsigned the $3,S6S,000principal a maturity of $435,000 caoh year 1993 and 1994, $440,000each year 1995 through 1997 and S275,000each year 1998 through 2002. The $4,000,000General Pwpose principal ha, been noigned • maturity of $200,000 eaoh year 1993 through 2012. Thosc allocations have been included in the calculation of "Division of Debt Service Requirements', following.
) ') ) 1 ) ) Dimion of Debt Service Reqnittmenls Fiscal Less: Less: Less: Less: Year Waterworks System Sewer System Solid Waste Disposal Golf Course Facilities General Purpose Ending Combined General Obligation General Obligation General Obligation General Obligation General Obligation 9.30 B£1!!!iremmts R!l9!!iml!J!l!JI§ Bsguirements B&m!irements 8£!1uiremS!Jts Bs911m;ments 1992 $ 15,848,934 $ 6,235,314 $ 2,167,832 s 226,691 s 84,018 s 7,135,079 1993 17,729,735 S,470,414 4,439,741 840,101 · 85,642 6,893,837 1994 16,305,494 S,103,228 4,102,879 803,286 82,043 6,214,058 1995 16,873,189 4,680,070 S,630,182 770,604 83,218 S,709,US 1996 16,235,926 4,307,124 S,326,3SS 731,111 84,224 S,787,112 1997 15,469,691 4,067,605 S,166,691 696,022 85,302 5,454,071 1998 14,607,419 3,856,023 5,004,592 501,122 81,425 5,164,257 1999 13,794,572 3,602,038 4,831,626 476,010 82,400 4,802,498 2000 12,704,148 3,373,352 4,799,222 453,885 83,025 3,994,664 2001 11,441,195 3,064,615 4,246,793 422,919 83,300 3,623,568 .... 2002 9,964,078 2,585,694 3,970,816 289,106 83,225 3,035,237 ~ 2003 8,688,535 2,243,662 3,741,597 3,440 82,800 2,617,036 2004 6,863,002 1,639,570 3,471,956 1,751,476 zoos 6,566,714 1,561,746 3,336,724 1,668,244 2006 6,278,576 1,486,568 3,201,368 1,590,640 2007 S,986,454 1,412,395 3,065,837 1,S'OS,222 2008 5,074,654 1,118,638 2,586,982 1,369,034 2009 4,511,664 1,029,524 2,461,234 .1,020,906 2010 3,748,988 879,863 2,249,726 619,399 2011 3,573,126 833,288 2,155,038 584,800 2012 2,261,463 2,0SS,213 206,250 2013 1,872,725 1,872,725 2014 1,777,575 1,m,s1s s 21s11:z:z,ss1 i S8JS2,Z3l ! 8J16621704 $ 61214,297 $ 1,000,m $ zo,z42,soo
Estimated Dired and Overlapping Funded Debt Payable From Ad Valorem Taxes (As or 6-15-92)
Expenditures of the various taxing bodies within the territory of the City are paid out of ad valorern 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
fmance their expenditures. The foUowing statement of direct and estimated overlapping ad valorem tax bonds was developed
from infonnation contained in "Texas Municipal Reports" published by the Municipal Advisory Council of Texas with respect
to "Total Funded Debt" and from infonnation furnished by the Lubbock Central Appraisal District with respect lo "Estimated
% Applicable". 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 below may have issued additional bonds aince the date stated in the table, and such
entities may have programs requiring the issuance of substantial amounts of additional bonds the amount of which cannot be
detennined. The following table reflects the estimated share of overlapping funded debt of these various taxing bodies.
Estimated
Total % Overlapping
Taxing Jurisdiction Funded Debt l!Jmlioable Funded Debt
City of Lubbock $ 43,108,202 100.00% $ 42,958,202 (I)
Lubbock Independent School District 65,674,989 98.55% 64,722,702
Lubbock County 5,280,000 83.27% 4,396,656
Lubbock County Hospital District ..().. 83.30% -0-
Lubbock-Cooper Independent School District 5,430,000 13.55% 735,765
Frenship Independent School District 27,330,000 64.77% 17,701,641
Rooseveh Independent School District -().. 5.25% ..()..
New Deal Independent School District -().. 0.03% -0-
Idalou Independent School District 2,960,000 1.01% ~9,896 s 130,544,862
Total Direct and Overlapping Funded Debt
Ratio of Direct and Overlapping funded Debt
to Taxable Assessed Valuation . . . . . . . . . . . . . . . . . • . . . • • . . . . . • . . • . . . . . . . . . . . . . 2.80%
$696.27 Per Capita Overlapping funded Debt • • , • . , • • . . . . • • . • . . . . . • . • • . . . • . • • . . . . • . . • .
(1) General Purpose Funded Dd>t Payable From Ad Valorem Taxes.
IS
,..,
'
',..,
Interest and Sinking Fund Budget Projection
As explained in Note (4) •Valuations, Exemptions and Debt Obligations" and under "State Revolving Fund ('SRF") Loan
Program' the City is in the process of delivering $1,6SS,OOO 1991 Sewer System Certirtcates to the Texas Wa.ter Development
Board ("TWDB•) and delivered $34,520,0001992 Sewer System Certificates to TWDB on June 8, 1992 (•SRF Debt"). Interest
and Sinking Funds established for SRF Debt are supported in full by monthly transfcn1 from net revenues of the Sewer Fund.
As a resuk the calculation of the "Interest and Sinking Fund Budget Projeetion ". below, is designed to demonstrate the
accumulation for SRF Debt separately from the City's provision for other genenil obligation debt service,
Oeneral
Obligation SRF
Debt Debt Total
(excluding SRf) {Estimated) Debt
Debt Service Requirements, Fiscal Year Ending
9-30-1992 $ 15,809,459 $ 39,475 O> $ 15,848,934
Plus: Fiscal Agent, Tax Collection and Other Uses
108 560 -0-108,560
$ 15,918,019 $ 39,475 $ 15,957,494
Sources of Funds:
Interest and Sinking Funds, 9-30-91 $ 483,457 $ -0-s 483,4S7
Budgeted Ad Valorcm Tax Receipts 10,884,324 --0-10,884,324
Budgeted Transfers:
From Water Fund 3,018,078 (2) -0-3,018,078
Prom Solid Waste Fund 226,692 (2) --0-226,692
From Hotel-Motel Tax 47S,714 -0-475,714
Budgeted Interest on Investments 1,490,000 -0-1,490,000
Estimated Accumulation of
Allocations from Sewer Pund
(including interest earnings on
proceeds) --0-582,223 (>) 582,223
Accrued Interest Received ti&,909 ~ 128,909
Total Sources of Funds ~ 16,7~7,124 ~ ~82,223 I 17,289,397
Estimated Balance, 9--30-92 $ 2891155 $ 542,748 $ 1,331,903
(1) Estimated interest due 8-15·92 on the 1991 Sewer System Certificates.
(2) See "Computation of Self-Supporting Debt": •waterworks System" and 'Solid Waste Disposal System".
(3) Reflects estimated monthly pro rata accumulation of principal due 2-15-93 and interest due 8-15-92 and,2-15-93.
Computation or Seit-Supporting Debt
Waterworks System (I)
Net System Revenue Available, Fiscal Year Ended 9-30-91 • , , . , ............ , . , . , , . , . , ..• ,
Less: Revenue Bond Requirements, Fiscal Year Ending 9-30-92 ... · •.. , ... , .. · .'' .....•..... , .•
Balance Available for Other Purposes • , •.•. , .••.•. , •• , •••.• , ....•••. .' ; , , • , ...•. , ;
System General Obligation Debt Requinmlents, Fiscal Year Ending 9-30:92 ... , ..... , ..... , ; , .•
$11,279,185
-0-
$11,279,185
'6,235,314
Balance ....... , .•.•..•. , ..... , .. , ••.• , •. , .............•.•... , , , . , , , . . $ 5.043.871
Percentage of System General Obligation Debt Self-Supporting 100.ooi·
(1) Through Fiscal Year Ended 9-30':9r it has 01'!"1 P,e City's policy each FiscalYear to transfer from Water E*i:prise Fund
surplus to the General Fund an amount . at r~ equivalent to i:lcl>t service tequiren\eiits on Wiitcrworkli System 'General
Obligation Debt. The City has no outstanding revenue bonds payable from a lien on the.net revenues of the Wai,,rwom System.
19
Beginning with the current Fiscal Year Ending 9-30-92, the City has budgeted. and commenced a planned shift over the next
several years 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 Fi.seal Year Ending 9-30-92 Waterworks System General Obligation
debt service is $6,23S,314; of this $3,018,078 is a budgeted transfer to the Interest and Sinking Fund and the $3,217,236balanee
will be transferred to the General Fund. When this staged shill is completed total Waterworks System General Obligation Debt
Services will be provided by direct transfer to the Interest and Sinking Fund from Water Enterprise Fund surplus. The staged
shill is necessary to avoid exceeding the City's "rollback tax rate• (see "Tax Rste 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 initial effect of this reallocation, for F'iscal Year Ending 9-30-92, can be seen under "Tax Rate,
Levy and Collection History" and "Interest and Sinking Fund Budget Projection•.
A "Rate Stabilization Fund" within the Water Enterprise Fund is accumulated from System net revenues; at 9-30-91 the balance
in the rate stabilization account was $7,301,S16.
See "The Waterworks System".
Sewer System <ll
Net System Revenue Available, Fiscal Year Ended 9-30-91 .............................. .
Less: Revenue Bond Requirements, Fiscal Year Ending 9-30-92 ......•...•. , ...•..........
Balance Available for Other Purposes .....••..................•••........•.......
System General Obligation Debt Requirements, Fiscal Year Ending 9-30-92 .............. , ..... .
Balance . . . . . . . . . . . . . . . . . . . . • . . . . . . • , . ; , , -. . . . • . . . . . , , , • , , • • , • -• • • • • -•
$6,278,623
-0-
$6,278,623
2,167,832
$4,110,791
Percentage of System General Obligation Debt Self-Supporting ....•.................... , . . . . . 100.00%
(1) It has been the City's policy each Fi.seal Year to transfer from Sewer Revenue Fund surplus to the General Fund amount
at least equivalent to debt service requirements on Sewer System General Obligation debt; and !hill policy will continue for
outstanding Sewer System General Obligation Debt except fur the State Revolving Fund loans discussed below.
As discussed in "Valuation, Exemptions and Debt Information•, "Interest and Sinking Fund Budget Projection" and "State
Revolving Fund ("SRF") Loan Program• debt service on the $1,655,000 1991 Sewer System Certificates (now in process of
delivery to TWDB} and the $34,520,000 1992 Sewer System Certificates (delivered to TWDB on 6-8-92) will be provided in
full from net revenues of the Sewer System.
A "Rate S!Abilrzation Fund" within the Sewer Enterprise Fund is accumulated from System net revenues; at 9-30-91 the balance
in the rate stabilization account was $2,675,815.
See "The Sewer System".
Solid Waste Disposal System (l)
Net System Revenue Available, Fi:<cal Year Ended 9-30-91 •..............•••. , •...........
Less: Revenue Bond Requirements, Fiscal Year Ended 9-30-92. . . , • , .......... , , ..... , .... .
Balance Available for Other Purposes , .•.•.••......•...•••... , .................•..
System General Obligation Debt Requirements, Fiscal Year Ended 9·30-92 ... , . , ..•......... , .•.
Balance • • . • • • . . . • ••••.•.••••••••••.•••••.•••••••••.••••••.••••••••••.
Pereentage of System General Obligation Debt Self-Supporting . • • . . . . . . . . • . . . • . . . . • . . . . • • . . . .
$1,751,967
-0-
$1,751,967
226.691
$1,SZS,276
100.00!11,
(1} Each Fiscal Year the City transfera from net revenues of the Solid Wute Enterprise Fund to the General Obligation Interest
and Sinking Fund an amount equal lo debt service requiremenls on System general obligation debt.
See "The Solid Waste Disposal System•.
20
,..
Golf' Course Fadlities (I)
Fiscal Year Ending 9-30
Revised
Budget
1991 1992
Net System Revenue Available $ .58,272 s 134,002
Less: Revenue Bond Requirements -0--0-
Balance Available for Other Purposes s 58,272 $ 134,002
System General Obligation Bond Requirements 87167 84018
Balance $ (28,895) $ 49,984
Percentage of System General Obligation Debt Self-Supporting 66.85% 100.00%
(1) It is the City's policy each Fiscal Year to transfer from Golf Course Enterprise Fund surplus to the General Fund an amount
at least equivalent to debt service requirements on Golf Course Facilities Oeneral Obligation debt, This transfer was made in
Fiscal Year Ended 9-30-91 in the amount of$87,168; golf ooune faeilities general obligation debt service was $87,167. The
City has no outstanding revenue bonds payable from a lien on the revenues of the Golf Course Facilities.
Primarily because of major renovations and upgrading of golf course faeilities, including equipment, net revenue was below the
level of Golf Course facilities General Obligation debt service requirements in Fiscal Year Ended 9-30-91. An increase in green
fees and other charges, effective 4-1-92, and recent improvements that enhance the golf course have resulted in the ability to
budget Golf Course Facilities General Obligation debt service as fully self-suppol'ling.
See "The Golf Course Facilities".
Authorized General Obligation Debt
Purpose
Waterworks System
Waterworks System
Sewer System
Sewer System
Street Improvements
Date
Authorized
11-21-81
10-17-&7
5-21-77
10-17-87
10-17-87
Amount
Authorized
$ 5,226,000
2,810,000
3,303,000
2,535,000
13,275.000
$27,149.000
Amo1mt
Heretofore
Issued
$5,000,000
200,000
2,175,000
2,535,000
9,227,000
$19.137,000
Anticipated Issuance of Authorized General Obligatlon Bonds and Other Obligations
Unissued
Balance
$ 226,000
2,610,000
1,128,000
-0-
4.048.000
$8,012,000
The City has no current plans for the sale of authorized general obligation bonds or other general obligation debt other than that
described below wider "State Revolving Fund ("SRF") Loan Program•.
Citizens Advisory Committee
A City Council appointed Citizens Advisory Commitlee has studied a three year cspital improvements program and reported
to the City Council. The City is considering reactivating the committee in anticipation of a bond election to be held in the Spring
of 1993.
21
State Revolving Fund ("SRF") Loan Program
The City bas received a commitment from the TeX!lS Water Development Board {"1WDB"} for loans under the SRF loan
program to finance a major wastewater treatment and disposal improvement program. The City anticipates the eventual iuuance
of three separate series of Combination Tax and Sewer System Subordinate Lien Revenue Certificates of Obligation (the "Sewer
System Certificates") to evidence these loans as follows:
Sewer
System Estimated Anticipated
Estimated Certificate Loan Closing Completion
~ Amouo1 Series Date Date
A s 1,655,000 m 1991 January, 1992 May, 1993
B 34,520,000 (2) 1992 June, 1992 July, 1994
C 14,42~.!m 1993 June, 1993 May, 1995
$ 50,600,000
Interest rate on both the 1991 and 1992 Sewer System Certificates is 5 .. 50%. Interest rates on the 1993 Sewer System
Certificates will be set later by 1WDB. Principal of each series of Certificates ill scheduled to mature in an approximately equal
amount each year for a 20-year period beginning within one year aller Project completion.
Debt service requirements on all Series of Sewer System Certificates will be paid from net revenues of the Sewer System and
the Certificates will be seif-supporting.
(1} Actual principal amount of the 1991 Sewer System Certificates; this loan closed in January, 1992, and the Certificates are
in process of delivery to 1WDB by installments as work progresses. At 6-15-1992 $1,500,000 of the Certificates had been
delivered, leaving an undelivered balance of $1SS,OOO. ·
(2) Delivered to TWDB on 6-8-92.
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, lo $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.
22
r
r
r
Other Obligatlons
(1) The City has entered into lease agreements for the purpose of acquiring certain properties and equipment. AB of May 31,
1992, capital leases were as follows:
Lease RS':l)uim!Jents fo[ Fiscal Year endil!i: 9-30 Balance
1996-Le:!s: Outstanding
fixable from: --122L _Jl2L ~ -122L 2012 Interest at S-31-92
Gene!:!] Oovemment
Telephone
Equipment $ 21,726 S 65,177 $ 65,177 $ 21,726 $ .(). $ (18,656) $ 155,150
Omnimax Theater 270.000 ~ __:2:: __:2:: ::2:: :!!: 360,000
Total General
Government $291,726 $155,177 $ 65,177 S 21,726 s -0-$ (18,656) s 515,150
Entemme Fund •
~
44,865 Golf-Golf Equipment 16,315 48,944 48,944 -0-(17,955) 141,113
Solid Waste-Scraper 22,297 66,890 66,890 66,890 S,514 (27,986) 200,555
Airport-Hangar
(leased to
Federal Aviation
Administration)* 31,400 ~ 94,200 94,200 1,546.450 {964,749) 895,701
Total Enterprise LlMll .ll10.!fil .ll10.!fil ~ ~.~52,~ i (1,0l0,690) I l,2J7,369
Combined Requirements $361.738 ~ $275.211 .. $227,681 s,ss21024 $ ,1,029,346) $ 1,752,519
"'The hangar was constructed to Federal Aviation Administration ("FAA") specifications in response tn a FAA Request for
Proposals. The hangar has a total area of 40,000 square feet of which 2,000 square feet is offJCe space.
The City pays its lessor $7,850 monthly under its lease agreement. FAA teases the hangar from the City under a one year lease
agreement commencing in March, 1992, with a base monthly tease payment of $9,900 and four one year renewal options (the
fourth renewal option ",ould extend the lease through February, 1997). Under the FAA tease, the City pays utility costs monthly
and is reimbursed by FAA quarterly; building maintenance costs are paid by FAA.
h is the City's opinion that FAA will annually renew its lease for the successive four one year renewal options through February,
1997 and that PAA will continue occupancy after February, 1997, with future terms to be negotiated.
(2) Acguisition and Renovation of Sears Building ... On October 15, 1982, the City of Lubbock entered into an agreement with
lhe American State Bank, Lubbock (•American") to purchase the 96,810 square foot •sears• building located in downtown
Lubbock. Originally comtructed by Sears, Roebuck & Co., the building and site were sold to the adjacent American State Bank
following Sears construction of new facilities in South Plains Mall, Lubbock, several years ago. The City also acquired 3
additional sites near the Sears site for parldng expamion in the future.
The City has renovated and remodeled apprmwnately SS ,000 square feet of the Sears building lo house administrative and City
Council functions, and this building is now the main Municipal Complex with parldng space for 205 vehicles and a future
expanded parking capability of 4SO vehicles.
Budget for the project was $3,600,000:
Acquisition of Sears building/site
Purchase of additional property
Renovation of 55,000 square feet
Contingencies and other costs
Total Cost
23
$ 751,000
302,925
2,201,849
344,226
$3,600,000
Shown below is the "Sean Building Finance Schedule", which wu prepared by the City of Lubbock. Salient elements of the
City's agreement with ~ American" and the "Finance Schedule" includes:
(1) Advance Balance. Acquisition and remodeling cost of the Sears property was financed by advances from •American".
Net advance balances are shown on a quarterly basis; actual balances to 1-15-92. $3,310,000 of the budgeted project cost
of $3,600,000 was financed through the advance process. The $290,000 balance was allocated from Revenue Sharing
Funds.
(2) Total Payment. Actual and future quarterly payments to • American" including interest quarterly at an annual rate of
12 3/4%. Final payment, 1-15-94, $2,917,818.
(3) Additional Site Acquisition. The City acquired 3 additional, adjacent sites for future parking expansion, paying
$159,000 in cash and assuming payments on 3 notes. Payment of the $159,000 and combined payments on the 3 notes are
demonstrated.
(4) Escrow Deposits. The City has deposited funds into an "Escrow Account" at "American" from which payments will
be made to • American" as referred to in (2), above, and on the notes referred to in (3) above. Deposits totaled $3,288,000
and the "Escrow Account" is funded.
(S) Escrow Interest Earnings. • American" pays the City interest quarterly on the balance in the "Escrow Account" at the
annual rate of 12 1/2$.
(6) Escrow Ba)ance. The Eserow Ballln<:9 at the end of any quarter will always exceed the Advance Balance.
(7) In the opinion of the City Attorney the financial arrangement with •American" described above does not constitute a
legal debt of the City since funds will be pledged at all times and placed in the "Escrow Account" in amounts that, with
interest earned, will exceed the outs1Jtnding Advance Balance throughout the life of the agreement.
24
,..
,...
Seara Buildini;:
Finance Sch~ule
Additiorutl Escrow Minimum·
Advance Total Site &crow Interest Escrow ,,... Yg[ ...M.!l.mh.. ~lance Paxment 6£guyjtiol! t!!!ll2•i!! ll!!mini;:s Balance
1982-83
10-15 $ 751,000 $159,000 $1,073,000 $ 914,000
1-15 751,000 $ 23,938 5,331 s 28,563 913,294
4-15 1,251,000 23,938 5,331 475,000 28,540 1,387,565
7-15 1,751,000 39,876 5,331 415,~ 43,361 1,860,719
1983-84
f"'-·10-15 2,251,000 55,813 5,331 525,000 58,147 2,382,722
1-15 2,824,001 93,750 5,331 515,000 74,460 2,933,101
4-15 2,820,266 93,750 5,331 91,659 2,925;679
7-15 2,816,412 93,750 5,331 91,428 2,918,026
1984-85
10-15 2,812,435 93,750 5,331 91,188 2,910,133
1-15 2,903,331 93,750 5,331 125,000 90,942 3,026,994
4-15 2,902,125 93,750 5,331 94,594 3,022,507
f"'. 7-15 2,900,880 93,750 5,331 94,453 3,017,879
1985-86
10-15 2,899,596 93,750 5,331 94,309 3,013,107
HS 2,898,270 93,750 5,331 94,160 3,008,186
4-15 2,896,903 93,750 5,331 94,006 3,003,111
7-15 2,895,491 93,750 5,331 93,847 2,997,877
1986-87
10-15 2,894,035 93,750 5,331 93,684 2,992,480
1-15 2,892,532 93,750 5,331 93,SlS 2,986,914
4-15 3,890,982 93,750 5,331 93,341 2,981,174
7-15 2,889,382 93,750 5,331 93,162 2,975,255
1987-88
10-15 2,887,731 93,750 5,331 92,977 2,969,151
1-15 2,886,027 . 93,750. 5,33.1 92,786 2,962,856
4-15 2,884,270 93,750 5,331 92,589 . 2,956,364
7-15 2,882,456 93,750 5,331 92,386 2,949,669
1988:.S9
10-15 2,880,584 93,750 5,331 40,000 92,177 . 2,982,765
1-15 2,878,653 93,750 5,331 93,211 2,976,895
4-15 2,876,660 93,750 5,331 93,028 2,970,842
If"
7-15 2,874,603 93,750 5,331 92,839 2,964,600
1989-90
10-15 2,872,481 93,750 5,331 92,644 2,958,163
1-15 2,870,291 93,750 5,331 92,443 2,951,525
4-15 2,868,032 93,750 5,331 92,235 2,944,679
7-15 2,865,700 93;750 5,331 92,021 · 2,937,619
1990-91
10-15 2,863,295 93,750 5,331 91,801 2,930,339
1-15 2,860,812 . 93,750 5,331 91,573 2,922,831
4-lS 2,858,25 93,750 S,331 91,338 2,915,088
fl"' 7.15 2,855,607 93,750 S,331 91,0?7 2,907,104
1991-92
10-15 2,852,880 93,750 5,331 90,847 2,898,870
1-15 2,850,065 93,750 5,331 90,590 2,890,379
4-15 2,847,161 93,750 5,331 90,324 2,881,622
7-15 2,844,164 93,750 5,331 90,051 2,872,592
1992-93
f" 10-15 2,841,072 93,750 4,637 89,768 2,863,973
1-15 2,837,881 93,750 670 89,499 2,859,052
4-15 2,834,589 93,750 670 89,345 2,853,977
7-15 2,831,191 93,750 670 89,187 2,848,744
1993-94
10-15 2,827,686 93,750 670 89,023 2,843,347
1-15 2,827,686 2.,91:Z,818 ___§ID, ll!!,855 13,714 ,... $6.811,383 $374,896 $3,288,000 $3,911,993
Pension Fund
Texas Munjcipal Retirement Sylltem ... All permanent, full time City employees who are not firemen are covered by the Texas
Municipal Retirement System. The System is a contributory, annuity-purchase type plan which is covered by a State statute
and is administered by six tnistecs appointed by the Oovemor of Texas. The System operate& independently of its member
cities.
The City of Lubbock joined the System in 1950 to supplement Social Security. All City employees except firemen 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 nrte is calculated esch year
using actuarial techniques applied to experience. The 1992 contribution rate is 11.21 %; the 1993 rate will be 10.34%. 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, 1991, assets held by the System, not including those of the Supplemental Disability Fund which is "pooled",
for the City of Lubbock were $74,489,163. Unfunded accrued liabilities on December 31, 1991, were $19,256,484, which is
being amortized over a 25 year period beginning in 1991. Total contributions by the City to the System in Calendar Year
Ending 12-31-91 were $4,469,819.
Firemen• s Relief and Retirement Fund . . . City of Lubbock firemen are members of the locally administered Lubbock Firemen's
Relief and Retirement Fund, operating under an act passed in 1937 by the State Legislature and adopted by City ruemen, by
vote of the department, in 1941. Firemen are not covered by Social Security.
The Fund is governed by seven trustees, three firemen, two outside trustees (appointed by the other trustees), the Mayor or his
representative and the Assistant City Manager for Financial Services of the City. Execution of the act is monitored by the
Firemen's Pension Commissioner, who is appointed by the Governor.
Benefits of retired fuemen are determined on a "lbrmula" ·or a •final salary• plan. Actuarial reviews are performed every three
years, and the fund ill audited annually. Firemen contribulle 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 frremen'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 1992 is 15.1985%.
As of December 31, 1990, unfunded liabilities were $10,714,913 which is being amortized over a 27 year period beginning
October, 1990.
The City contributed $1,246,618 to the Fund during Calendar Year.ended 12-31-91.
* Sources: · Tex.as Municipal Retirement System, Comprehensive Annual Financial Report for Year Ended December 31, 1990.
City of Lubbock, Texas.
26
,.
) ) l ) l ) ) Geuer1I Fund Revenues and Expenditures (GAAP,B•sls) Proposed Revised Budget Budget Fiscal Years Ended Rew,nues 1222·!!;1 1991-22 9-l!!::~l 9-30-2Q 9-30-89 9-30-88 9,.30-87 Ad Valo1em Taxes $19,086,282 $17,367,086 $ 16,213,91\'t $14,911,385 $14,329,641 $12,538,368 $ 12,044,707 Sales Taxes 16,148,950 16,010,296 15,907,117 15,530,468 15,059,072 13,960,077 12,563,905 Franchise Taxes 4,312,500 4,183,035 3,488,691 3,377,870 3,077,372 3,108,228 3,111,362 · Miscellaneous Taxe11 66S,714 664,571 667,478 712,203 629,320 669,292 646,m Licenses and Permits 807,703 710,535 768,924 719,979 613,668 579,369 628,144 lntetgovernm,,,ital 9'29,621 887,886 1,227,449 1,Sll,791 1,119,271 1,124,237 1,104,585 Charges for Services 2,160,812." 2,224,574. 2,081,955 2,243,428 2,091,277 2,058,402 1,885,450 Fines 2,246,840 2,141,839 2,378,986 2,489,471 2,365,787 2,063,207 1,581,702 Miscollaneous 2,772,290 3,042,170 4,042,185 3,222,731 3,802,560 2,694,897 2,836,814 Transfer from Other Funds ::a and Other Financing Sources 14J62,~ 14,163,717 13,890:i16 13,17S,3Si 12,173,1:IZ t2,lt9,l67 12,308,~;1 ~ Total Revenues an\! Transfers (From) $ 63 ,493 ,677; $61,995,709 $60,666;920 $57,894,678 $55,321,110 $ Si,115,444 $ 48,712,391 n 'Ilxpendirures ... General Government $ 1,S4S,417 $ 1,SSS,Sl8 $ 2,412,645 S 2,449,344 $ 2,966,651 $ 2,056,095 s 2,444,659 ~ !j Financial services; 2,542,416 2,653,406 1,910;799 l,SUi,589 1,751,968 1,671,752 1,507,961 ! Management Services 2,420,812'. 2,307,735 2,579,610 2,500,230 2,m;ns 2,202,132 2,031,032 i Development Services 7,364,831 7,373,154 6,274,866 S,831,381 5,522,932 . 5,312,624 S,282,956 ::: Public Safecy and Services . 46,497,238 44,995,146 42,247,744 39,9611,470 37,432,994 34,111,128 33,088,839 ; Non-Departmontlll 456,904 480,216 29,532 265,108 16,761 52,602 38,438 Tnulllfer to Other Funds ,,SS!,425 2,425,950 4,642,478_ 4,304,580 · 5,408,139 . 4,809,4!!§ 3,402,501 i . Total Expe~ditures and Transfer.: p-o) l 63 .n2,043 . l61,861,t2S f 60,097,674 lSZ,134,702 155,~l,170 1:!!l,215,799 I 41, 796,3§6 Excess of Revenu5 and Trs.nsfers (From) ti4,634 OYer Expendilures and Tnmsfers (To) s $ 134,584 $ 569,246 $ 759,976 $ 107,940 $ 899,645 $ 916,005 Residual Equity Transfer -0--0-(64,212) (22,969) 292,597 -0-.(). Furid Balance at Beginning of Year 2,9!12,69~ 9,848,110 9,343,076 1,606,069 8,205,532 7,lOS,887 6,~89,882 Fund Bal once at End of Year $ 9,982,694 ,. $ 9,848;110 $ 9,343,076 $ 8,(,()6,069 $ 8,205,532 $ 7,305,887 Less: Reservos and Designations · (1,7§2,:11!1) (1,169;$)1) (l,706,67.4) (t,694,80~ ( 1,822,3~8) (1,381,29) Undesigneted Fund Balance ! 812131187 I S,!l.z81603 I Z163614~ I 6,9p1264 ! ~!3761174 i s,~41338
Municipal Sales Tax History
The City hu adopted the Municipal Sales and Use Tax Act, VATCS, Tax Code, Chapter 321, which grants the City the power
to impose and levy a l % 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 Certificates. Collections and enforcements are effected through the offices of the Comptroller
of Public Accounts, State of Tex.as, who remits the proceeds of the tax, after deduction of a 2% service fee, to the City monthly.
Revenue from this source, for the years shown, has been:
Fiscal
Year 9' of Equivalent of
Ended Total Ad Valorem Ad Valorem Per
9-30 Collecled Iax Levx Tais R!!te Cal1i!!*
1982 $10,939,663 61.79% $0.408 $61.36
1983 11,355,581 59.17% 0.361 62.57
1984 12,480,746 63.27,i', 0.386 68.54
1985 13,310,105 57.95% 0.341 70.94
1986 12,953,236 53.80,i', 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 52.239' 0.334 83.40
1991 15,907,117 52.67W, 0.337 85.00
• Based on estimated population for all years except 1990 which is U.S. CensW<.
Financial Policles
Basis of Accounting ... The City's policy is to adhere to accounting principles as established by the Governmental Accounting
Standards Board. For governmental funds, this is the modified accrual basis and for proprietary funds the accrual basis of
accounting.
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 aufficient to provide fl!lllncing for necessary projects, unanticipated
contingencieli, 1111d fluctuations in anticipated revenues.
Debt Service Fund Balance . . . A reasonable debt service fund balance is maintained in order to . compensate for unexpected
contingencies.
Budgetary Procedures . • • The City follows these procedures in establishing operating b)ldgets:
l) Prior to August 1, lhe City Manager submits lo the City Council a proposed operating budget for the fiscal year
commencing the following October l. The operating budget includes proposed expenditures and the means of financing
them. .... 2) Public hearings arc conducted to obtain tupayer comments.
3) Prior to October 1, the budget is legally enacted through passage of an ordinance.
4) The City Manager is, authorized lo transfer budgeted amounts b~een departments and funds. Expenditures may
not legally exceed budgeted appropriations at the fund level.
5) Formal budgetsry integration is employed as a management control device during the year for the General,
Convention and Tourism, Criminal Investigation, and Capital Projects Funds. Budgets arc adopted on an annual basis.
Fonnal budgetsry integration is not employed for Debt Service Funds becauseeffei:tive budgetary control is alternatively
achieved through general obligation bond· indenture and other contract provisions.
6) Budgets for General, Convention and Tourism, Criminal Investigation, and Capital Projects Funds are adopted on
a basis consistent with generally accepted accounting principles (GAAP).
7) Appropriationa for the General Fund lapse at year end. Unencumbered balances for the Capital Projects Funds
continue as authority for subsequent period expenditures.
28
8) Budgetary comparisons are presented for the General Fund and certain Special Revenue Funds -in the -eombined
financial statement sectiollll of the ComprehCllllive Annual Financial Report.
Fund Investments •.. The City's investment policy parallels State law which governs investmcot of public funds. The City
genenlly restricts investments to direct obligations of the Uniled States Govemment, obligations of U.S. Clovernment agencies
and insured or fully collateralized investmenu:
Insurance ... Except for Airport liability insurance, lhe 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 estimaled payments for claim losses.
At S--31-92 the reserves had the following b&laooes:
Reserve for aelf-insur:ance -health
Reserve for self-insurance -other than heslth
29
$2,162,137
$1,004,139
THE WATERWORKS SYSTEM
Water Supply . • . Currently, the primary source of water fur Lubbock is lhe Canadian River Municipal Water Authority
("CRMWA~) which deliven raw waler 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 CRMW A;
other members are Amarillo, Pampa, Borger, Plainview, Slaton, Levelland, Bro"'11field, Tahoka, O'Donnell and Lamesa.
Lubbock received 32,376 acre feet of water from CRMWA in Calendar Year 1991, approximately 86% of the City's total
consumption. Cost of the project is. being repaid to the Bureau of Reclamation by CRMWA 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 fur .water received from revenues derived from operation of their respective waterworks
systems.
Other Water Supply Sou!WS •.. Approximately 1.5% of the City's water supply is.obtained from 23.8 potable water wells, all
producing from the Ogallala Acquifer, which underlies the High Plains of Texas. Combined capacity of these wells is over 4.5
million gallons per day. Primary .wells are located in the "Sand Hills" 11.l'U about 60 miles northwest of ,Lubbock in Lamb and
Bailey Counties in which the City owns apprmtlmately 81,23.5 acres. of water rights.
Lake Alan Henry ... The Brszo• River Authority ("BRA") on behalf of the City of Lubbock (the "City") is constructing 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 Jong tenn water supply needs. The U.S. Corps of Engineers has granted a pennit for
impoundment at the reaervoir 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 yean1 is expeded to increase to over SO million gallons per day ("mgd") by 2040
assuming low population growth. Although historical population increases have not been as great as the TWDR population
estimares, increased population and decreasing water supplies have required the City to pursue new sources of supply.
In 1978 Freese and Nichols, Inc., Consulting Engineers, estimated that Lake Alan Henry would have a firm yield of 26,100
acre-feet per year when the lake is fll"llt constructed, and 20,600 acre-feet per year after SO years of operation. If the reservoir
is operated with a variable rate of demand, an estimated average yield of30,200 acre-feet per year could be withdrawn initially.
After .50 years of operation, the variable demand yield would decrease to 27,000 acre-feet per year. This would provide
Lubbock with a reliable water supply of 23.3 mgd and an average water supply of 26.9 mgd. Assuming a worst case scenario
of: a 6S percent allocation from CRMWA (22.1 mgd), an average withdrawal from the Sand Hills Field (8.9 mgd), and a firm
yield from Lake Alan Henry (2:l.3 mgd), Lubbock would have a reliable supply of S4.3 mgd which would be sufficient to meet
projected normal water demands through about lhe year 2040. Based on the reaults of the water quality monitoring program
by the United States Geological Survey and Lubbock, it was concluded that water in Lake Alan Henry would be of similsr
quality to water from Lake Meredith.
The City has contracted with BRA (the "Contract") to coru,trucl the dam and water supply reservoir at the Lake Alan Henry site
(the "Project") and construction commenced in 1991. The Project will provide Lubbock with an average of 26.9 mgd of
municipal water supply. It is estimated that the Project will require two years to construct and three years to fill, based on
average runoff conditions. At coru,ervation storage the reservoir will contain 11.5,937 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.
Toial construction cost is estimated to be $54,639,000 and BRA has issued $56,655,000 Special Facilities (Lake Alan Henry)
Revenue Bonds to provide ti.inds for construction and establishment of reserve and repair and replacement funds. The Special
Facilities Revenue Bonds are payable from net revenues derived from the operation and ownership of Lake Alan Henry,
including payments to be made under the Contract to BRA.
Under the Contract the City will buy and pay for the entire amount ofwatcr which can be supplied by the Project whether used
or not. Payments to BRA during each Fiscal Year (beginning October 1 and ending September 30) shall equal the sum of;
30
, ,..
,..,
-
(1) Capital coats (debt service) payable during such Fiscal Year; plus
(ii) Maintenance and Operation Costs llfl adjusted, which, by lhe Authority's estimates made
prior to the beginning of such FJ.S<:al Year, will be incurred duringsuchFISClllYear;plw,
(ill) Management Fees for such Fiscal Year.
Payments under the Contract constitute operating expenses of the City's Waterworks System, payable from gross revenues of
the Waterworks System.
Additional facilities, which may be financed by the City directly or by BRA as Additional Specid Facility Revenue Bonds, will
be required to transpon and treat the water from Lake Alan Henry; such facilities are not included in the Atimated construction
costs shown above.
The System . . • Lubbock's Waterworb System is modern and efficient; property, plant and equipment are valued at
$86,054,721, after depreciation and including cost of construction work in progress, at September 30, 1991, 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.
Storage capacity includes a 1,200 acre-foot open storage reservoir near the water treatment plant, which pennits the storage of
surplus water received from CRMW A in off-peak periods. In addition, 14 ground storage reservoirs and 3 elevated steel storage
tanks provide storage capacity of 61,350,000 gallons, entirely adequate for peak hour and fire protection requirements.
Water Consumption
Calendar
Year
1987
1!188
1!189
1990
1991
Average
Daily
Conaumption
fmgd)*
31.980
34.981
36.367
36.408
33.674
Muimum
Consumption
Day/Year
{mgd)*
57.()07
60.3!1!1
69.124
79.003
67.377
* The City has water sales contracts for the sale of treated water to Reese Air Foree Base, the City of Lake Ransom Canyon
and Lubbock County Water Control and Improvement District No. 1 (Buffalo Springs Lake); deliveries to these entities,
averaging 0. 706 mgd in 1991, are included in the above calculations.
Water Treatment Facilities . . . The water tn:atment plant for the treatment of raw water received from CRMW A bu a
maximum hydraulie 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.
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 n:imbunied 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 Calendar 1991 deliveries from the plant totaled 12,544.17 mg of which 10,630.32 mg was for Lubbock and
1,913.!S mg wu delivered to the other participating cities.
Lubbock's ground water supply does not require treatment (other than the addition of chlorine).
Water Treatment Plant Improvement Program
The waterwon.s treatment plant is being upgraded and improved with major financing provided from the proceeds of
$16,120,000 Combination Tax and Waterworb System Subordinate Lien Revenue Certificates of Obligation; Series 1991.
Objectives are to (1) enable the plant to comply with the Safe Drinking Water Act of 19&6 ("SOWA") and (2) upgrade the plant
for safety, maintenance and repair. Total estimated cost of the program is $17,070,000.
31
Condensed Statement of Operations -Waterworks System
Proposed Revised
Budget Budget fjsca! Year lll!ded
2-30-93 9-32:;22 2-30-91 9-30-90 2-J2::89
Operating Revenues $24,047,590 $ 22,288,401 $21,821,722 $ 19,668,087 S 16,660,193
Non-Operating Revenues 2,081,:lm 2,252,282 4,050,163 l,880,9~~ 626,042
Gross Revenues $26,134,992 S 25,240,683 $25,871,885 $ 21,549,032 $ 17,286,235
Operating Expense
(excluding depreciation) m lli,116,11§ 16,707,747 14,592,700 11,310,532 9,7.S8181ll
Net R,:,venues $ 9,358,874 $ 8,532,936 $11,279,185 $ 10,238,500 $ 7,527.357
Water Meters N.A. N.A. 62,262 62,119 62,631
(1) Operating expense includes all payments to CRMWA and BRA.
Note: The City has no outstanding or authorized Watetworkll System Revenue Bonds, however, there is $34,665,883 general
obligation debt outstanding which was issued fur Watcrwo1b System purposes which is supported from net revenues of the
System;
Water Rates (Monthly)
First
Next
Next
All Over
Present Rates (Effective 10-1-90)
Water Consumption
1,000 Gallons
49,000 Gallons
200,000 Gallons
250,000 Gallons
Rate
$7.31 (Minimum)
1.53/M Gallons
1.37 /M Gallons
1.31/M Gallons
Proposed Rates (Effective 10-1-92) ti)
Base Rate (For Service) S7. 96
Flow Rate 1:.30/M gallons
(l) The City Council will consider the adoption of these rates on August 27, 1992, and September 10, 1992.
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 Bystcm, handled separately from the .stonn drainage system, includes
approximately 7S0 miles of trunk mains and collection lines with trunk mains installed for future expansion of the co1Jectio11
system.
Water Reclamation Facilities ... Trealment facilities consist ofthe S.outheast Plant, with an averai:;e daily fiow design capacity
of 2S million gallons and the Northwest Plant, with an average daily flow design caps.city of 0. 75 million gallons. The Southeast
Plant uses two processes for treatment; trickling filter and activated sludge. The No!'lhwest Plant uses the contact .stabilization
process for sewage treatment. Recent funding will provide for upgrading and expansion of the Southeast Plant which will permit
the City to consistently comply with. requirements of the Texas Water Commission for wastewater treatment and effluent disposal
by irrigation of.land-application sites.
-
Wa,itewater flows ...
Calendar
Yeo.rm
1987
1988
1989
1990
1991
Northwest
Plant
(mgd)
0.424
0.4SS
0.389
0.399
0.324
Southeast
Water
Reclamation
Plant
(mgd)
17.36
17.40
18.3S
18.SO
18.80
(1) During the period 1987-1991 the recorded combined peak daily Dow was 23.6 mgd.
Effiuent Disposal ... Treated effiuent is used for beneficial purposes; no effiuent is presently diBcbarged into streams. Treated
effluent from the Northwest Plant is used to irrigate Lpproxlmately 1,060 acres of farm land at Texas Tech University for
agricultural re&e11reh. Treated effluent from the Southeast Pls.nt is used to irrigate two land-applieation sites:
(1) A site located adjacent to the City on the southeast, consisting of S,997 acres owned by the City, currently being
upgraded; storage capacity for effluent pending use for irrigation iB 412 million ga.Uons.
(2) A 3,400 acre privately owned farmland site near Wilson, Texas, approximately lS 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 cooling
purposes in Southwestern Public Service Company's 512,000 kilowatt electric generating plant near Lubbock when the plant
is in use.
WasrewaterTmtmentand Disposal Improvement and ExpansionProiect ... The City is pursuing a comprehensivewastewater
treatment and effluent disposal program that will upgrade and expand the Southeast Water Reclamation Plant, the City's major
wastewater treatment facility. This program will enable the Plant to consistently comply with Texas Water Commission and
United States Environmental Protection Agency pemiit requirements and provide treatment capacity to the design year 2010.
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, c•NFDMF Brazos River") Lake Ransom Canyon.
The Project will be funded through loans from the Texas Water Development Board's ("TWDB") State Water PoUution .Control
Revolving Fund ("SRF") as follows:
Year
1991
1992
1993
$
SRF
Loan*
1,6S5,000
34,520,000
14.425.000 (l)
$ so,600.ooo
B
C
Brief Proiection Description
Replace effluent pipeline to land application
site with new 36" line
One new activated sludge treatment plant;
headvrorks facilities; solids handling facilities
digester rehabilitation; administration
maintcnsncc building
Discharge pipeline to NFDMF Brazos River;
renovate and upgrade two existing treatment
planlll; convert existing administration
building to a laboratory
Estimated
Project
Completion
Date
Completed
May lS, 1992
July, 1994
May, 1995
* To be evidenced by a separate series of Combination Tax and Sewer System Subordinate Lien Revenue Certificates of
Obligation for each loan (see "State Revolving Fund Loan Program• under • Anticipated fuuance of Authorized General
Obligation Bonds and Other Obligations").
(1) Estimated; construction bids to be accepted Much/April, 1993.
33
Condensed Statement or Operations -Sewer System
Proposed Revised
Budget Budget fi.:!cal Year En!.!i.g
9-3~23 9-30-92 9-30-91 9-30-90 9-30-82
Operating Revenues $10,972,240 $10,486,375 $ 9,696,057 s 9,s11,2n $ 8,518,054
Non-Operating Revenues 1,156,306 262.833 220,169 763,549 579,026
Gross Revenues $12,128,546 $10,749,208 $10,416,226 $10,334,826 S 9,097,080
Operating Expenses
(excluding depreciation) 5,181,783 5,072,370 4.137,603 4,054.261 4,124.560
Net Revenues ! 6,946,263 ! 5,676,838 ! 6,278,623 § 6,280,565 ! 4,972,520
Sewer Met.>n (Estimated) N.A. N.A. 62,262 62,119 62,631
Note: The City has no outstanding or authorized Sewer System Revenue Bonds; however, there is $48,929,386 generalob!igation
debt outstanding (including $34,520,000 1992 Sewer System Certificates delivered to lWDB on 6-3-92) which was issued for
Sewer System purposes and is supported by revenues of the System.
Sewer Rates (Monthly)
Base Rate
Flow Rate
New Rates
(Effective 10-1-92)
S2.49(l)
l.06/M gallons*
Residential
First
Next
Over
Previous Rates
/Effective 10-1-91}
3,000 gallons $ 6.10 (Minimum)
7,000 gallons 0.75/M gallons
10,000 gallons· No charge
(Maximum Monthly Charge -$15.21) (Maximum Monthly Charge· $11.35)
* Based on average monthly water consumption for
the three months December, 1991 · February, 1992;
no flow rate charged for consumption in excess of
12,000 gaUons per month.
Base Rate
Flow Rate
$2.49 rn
1.06/M gallons
Commercial/Industrial <I) ai
First
Over
3,000 gallons/water $ 6.10 (Minimum) (I)
3,000 gallons/water 0. 75/M gallons
(1) The Base Rate under "New Rates• for both Residential and Commercial/Industrial service is based on a 3/4• meter; there
are higher Base Rates for larger meters up to a maximum Base Rate of $556.10 for a 10" met.Ir.
Commercial/Industrial service minimum under "Present Rates" based on 3/4" meter; higher minimums for larger meten.
(2) Industrial waste that excess allowable limits is subject to surcharge for treating biochemical oxygen demand ("B.O.D. ") and
suspended solids ("S.S."). Present surcharges of B.O.D.IS0.0457/lb. and S.S./$0.0272/lb. will be recalculated on 10-1-92.
Djscussion of Sewer Rates
The City's present sewer rate structure is a modified user charge system based on water usage and surcharges for excessive
strength contributions to the wastewater system. A sewer rate increase designed to increase revenues .9.% was effective 10-1-
1991; this rate increase was designed to initially anticipate and provide for the additional debt service requirements incurred
under the SRF loan program. As part of the wastewater project being fmanced with SRF loans the City has adopted 'a User
Charge System with rates and regulati-Ons in accordance with Federal n:q11irements and a new rate structure effective October 1,
1992, that will increase Sewer System revenues approximately 9 % (see "Sewer Rates•, above). · ·U nder•the· User ChaJ'.&C System
rates will be reviewed each year and will provide for increasing levels of debt service.
,..
r
TIIE SOLID WASTE DISPOSAL SYSTEM
The Solid Waste Disposal System, operated by the City'• Solid Waste Management Dq,artment handles collection and disposal
of both residential and commercial garbage in the City. The residential collection system services approximately 20,000
containers and S0,000 accounts .. Service is provided twice weekly. Residential collection is provided through three cubic ya.rd
metal containers serviced in alleys by 30-yard packer, side loading trucks on 3S separate routes.
Collection for approximately 330 commercial accounts bi provided through two yard lo eight yard metal containers emptied by
30-yard automated frontloading units. Collection for an additional I ,600 accounts is provided by the same type container and
pickup equipment a,, 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 toads to the City's Landfill at no additional cost.
Recycling Operations •.. The City will initiate residential recycling operations effective August, 1992. The City will dispatch
recycling collection trucks lo collect blue bags which have been filled with recyclable commodities. The Program will be
operations in three phases between August, 1992, and February, 1993. First yeu projections are to reduce the waste stream
by S%. Thia prognim will supplement other recycling programs that the City currently operates; Oil Recycling, Gras•
Recycling, Don't Bag It Program, Christmas Tree Recycling, and others.
Landfill and Disposal Operations ... The City operates a Type 1 Landfill (Texas Department of Health permit #69) on a 320-
acre site. The f'acility receives approximately 200,000 tons of solid waste annually, and bu a remaining life of approximately
seven yea.rs. Refuse is deposited into cells of approximately 3 acres each, compacted, and covered with six inches of
intermediate soil eover. Once a cell reaches maximum height, final cover is applied and the area is morutored by a series of
wells and visual inspections.
The City is in the process of initiating an application to the Tel<lls Water Commission for a permit fur a new 640 acre landfill
site. The new permit would include all nev.: and proposed landfill operations.
The landfill currently operates as a defacto regional landfill; the City has negotiated 8¢Veral interlocal landfill use agreements
with area communities. These agn::emenl.l! include payment of the current 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.
Pre.sent Landfill Program ... $3,565,000 proceeds of the Certificates will be used for:
1. Closure of 144 acres of the existing landfill site that is at closure lllage. Closure will be performed in accordance with
Texas Water Commission Municipal Solid Waste Management regulations.
2. Install a compacted clay liner, as required by the Texas Water Commission, in Landfill Cell IV A South (an area of
approximately 3.5 acres).
3. Acquire a 21 cubic yard, dual engine, push-pull scraper and a compactor for use at the landfill.
35
Condemed Statement or Operations -Solid Waste Disposal System
Proposed Revised
Budget Budget Fgcal Year Ended
11-J2:~ 11-30-92 11-30-91 IJ..J2;90 11-:\Q:89
Opersting Revenues $ 8,4911,7611 $ 6,983,1156 $6,340,137 S 5,630,037 $ 5,240,173
Non-Operating Revenues §§,000 lll,3§§ ~1,452 158,154 2!!,028
Oross Revenues $8,585,769 S 7,115,344 $ 6,701,5811 $5,788,191 $ 5,264,201
Operating Expense (excluding
depreciation) 5,560,35!,! :i,218,421 ~,949,§22 4,340,042 ~,440,521
Net Revenues !310251419 ! 118961923 ! 1,7~111167 ! 11448,149 ! 8231680
Number Residential Customers N.A. N.A. 51,999 51,568 51,380
· Number Commercial Customers N.A. N.A. 1,337 1,322 1,336
Note: The City has no outstanding or authorized Solid Waste Disposal System Revenue Bonds, however, after issusnce of the
Certificates there will be $4,680,281 general obligation debt outstanding on which debt service is provided from revenues of
the System.
Solid Waste Collection Rates
Residential {Monthly)
(Twice Weekly Service)
Proposed Rates <11
(Effective 10-1-92)
3 yard container typically shared by
households with twice a week
service · $11.00
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 .:ontainer with twice a week service
8 yard container with twice a week service
Extra pickups for commercial
Landfill Fees
(Effective 10-1-91)
$24.00
$36.00
$48.00
$72.00
$96.00
$9.00
$ 1.50 per yard per pickup
Propolled Rates ~•> ro
(Effective 10-1-92)
j>rgent Rates °'
(Effective 10-1-91)
Size of Vehicle
Pickup, small trailers (1/2 t.on or less)
Bobtail truclts, pickups over 1/2 ton
Semitrailers
Container trucks and packer trucb:
20 cubic yards
24 cubic yards
28 cubic yard•
30 cubic yards
32 cubic yards
40 cubic yards
$ 6.25
18.75
250.00
75.00
90.00
105.00
112.so
120.00
150.00
$ 4.25
12.7S
21.75
42.SO
51.()()
59.50
63.75
68.00
85.00
(1) The City Council will consider adoption of these rates on August 27, 1992, and September 10, 1992.
(2) The City or the user may, at the option of either party, supersede the above schedule with a charge per ton of waste of
$8.SO per t.on (present rate) or $12.50 per (propoaed rate).
36
,...
Billings
Customers of Lubbock's water, sewer and sanitation systems are billed simultaneously on one statement; if the c\l$!0mer is
connected to the City's electric system, 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 a.lier
the date of the second statement, a reminder/cut-off notice is mailed. The cut-off notice specifies th.at 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 custome.
is connected to the City's electric system, is $15.00 before S:00 PM and $25.00 after 5:00 PM and during weekends and
holidays.
THE GOLF COURSE FACILITIES
Meadowbrook Golf Course was established in 1954 and is owned and operated by the City as its municipal golf facility.
Meadowbrook is a 36-hole golf facility (two 18-hole courses) encompassing approximately 260 acres of irrigated turf and
improvements, including a· clubhouse, driving range, maintenance bam, ea.rt shed and a maintenance storage facility.
Meadowbrook is located in Mackenzie Park, a City-owned regional park. Administration, maintenance and improvements to
the land and facilities are the responsibility of the City of Lubbock.
Condensed Statement of Operations • Golf Enterprise Fund
Proposed Revised
Budget Budget Eiscal Y~r ~ded
9.30-93 9-30-92 9-30-91 9-30-90 9-32:§9
Operating Revenue $ 1,123,842 $ 957,720 $ 853,926 s 885,485 $ 840,475
Non-Operating Revenue 8,792 §,000 ~5) (19,619) ~.406)
Gross Revenue $ 1,132,632 s 965,720 s 853,291 $ 865,866 s 817,069
Operating Expen•e
(excluding depreciation} 2Q!i,JS3 SJJ,718 195,019 856,886 7!!;l!,458
Net Revenues $ 226,279 s 134,002 $ 581272 $ 8,980 $ 73,611
Rounds of Golf N.A. N.A. 61,006 69,788 66,241
Note: The City has no outstanding or authorized Golf Course Facilities Revenue Bonds, however, there is $635,000 general
obligation debt outstanding which was issued for golf course facilities which is aupported by revenues of the Facilities.
Daily greens fees are (1) weekdays -$9.00; (2) weekends -$11.00.
37
OTHER RELEVANT INFORMATION
Ratings
The presently outstanding tax supported debt of the City is rated • Aa" by Moody's Investon 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. 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 maka 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 Certificates.
Tax Exemption
The delivery of the Certificates is sul!ject to the opinion of Bond Counsel to the effect that interest on the Certificates for federal
income tax purposes (1) will be excludable from the gross income, M defined in section 61 of the Internal Revenue Code of
11186, 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, corporation. The statute, regulation, ruling, and court
decisions on which such opinion is based are subject to change.
Interest on all tax-exempt obligations, including the Certificates, owned by a corporation will be included in such corporation's
adjusted net book income for the 1989 tax year, or adjusted current earnings, for tax years beginning after 11189, 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 11186 will be computed.
In rendering the foregoing opinions, Bond Counsel will rely upon representations and certifications of the City made in a
certificate 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 City with the provisions of the Ordinance subsequent to the issuance
of the Certificates. The Ordinance contains covenants by the City with respect to, among other matters, the use of the proceeds
of the Certificates and the facilities financed therewith by persons other than state or local governmental units, the manner in
which the proceeds of the Certificates are to be invested, 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 the issuance of the Certificates.
Except as described above, Bond Counsel expresses no other opinion with respect lo 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 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 e:q:,enses allocable to, tax-exempt obligations. Prospective purchasers should consult their own tax advisors
as to the applicability of these consequences to their particular circumstances.
The Tax Simplification Act of 1991, as proposed by the chairmen and the rankl11g minority members of the House Ways and
Means Committee and the Senate Finance Committee, would amend the Code to require certain "large partnerships" to include
in the computation of taxable income at the partnership level for partnership taxable years ending on or after December 31,
1992, interest on obligations such as the Certificates which otherwise would be excludable from gross income under Section
103(a) of the Code. Prospective purchasers of the Certificates who might be or become "large partnerships• should consult their
own tax advisors regarding the tax consequences of owning the Certificates.
Tax AcooW1ting Treatment or D~unt Certn,cates
The initial public offering price to be paid for certain Certificates may be less than the principal amount payable on such
Certificate at maturity {the "Discount Certificates"). An amount equal to the difference between the initial pubic offering price
of the Discount Certifieate (assuming that a substantial amount of the Discount Certificates of that maturity are sold to the public
at such price) and the principal amount payable at maturity constitutes interest to the initial purchaser of such Discount
3&
,..
,...
Certificates. A portion of such interest, allocable to the holding period of such Discount Certificate by the initial purchaser,
will, upon the disposition of such Discount Certificates (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. Such interest is considered to be
accruoo 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.
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 imposed by the Tax Reform Act of 1986 and
the environmental tax imposed by the Superfund Revenue Act of 1986, and the amount of the branch profilll 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 collllteral federal income tax consequences to, among others,
financial institutions, life insurance companies, property and casualty insurance companies, 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 eertsin expenses allocable to tax-
exempt obligatioru,.
In the event of the sale or other taxable disposition of a Discount Certificate prior to maturity, the amount realized by the 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 federal income
tax purposes of accrued interest upon disposition of Discount Certificates and with respect to the state and local tax oonsequences
of owning Discount Certificates. It is possible that, under applicable provisiorui governing determination of state and local
income taxes, aeerued 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.
Litigation
It is the opinion of the City Attorney and City Staff that there is no pending litigation sgainst the City that would have a material
adverse financial impact upon the City or its operations.
Registration and Qualification of Certif'ates 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 the Certificates have not been qualified Wider the Securities Act of Texas
in niliance upon various exemptions contained therein; nor have the Certificates been qualilied under the iecurlties 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 diselaimer of
responsibility for qualification for sale or other disposition of the Certificates shall not be construed as an interpretation of any
kind with regard to the availability of any exemption from securities registration provisions.
Legal IDYestmeats and Eligibility to Secure Public 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 1.uthorized investments for banks, 111.vings banks, trust companies, building and Joan
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 a11,encies of the Stale of Texas•. Texas law further
provides that if the Certificates have and maintain a current rating, as to investment quality, of not less than "A" or its
equivalent, by a nationally recognized rating agency, the Certificates are eligible to aeeure deposits of 1.ny 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 1.re legal investments for
various institutions in those states. To determine whether the Certificates described herein are eligibie to secure public
deposits, reference should be made to •Ratings", aboYe.
Legal Opinions ud No-Litigation Certificate
The City will furnish a oomplere transcript of proceedings incident to the issuance of the Certificates, including the unqualified
approving legal opinion of the Attorney General of TeX&S approving the Initial Certificate and to the effect that the Certificates
are valid and legally binding obligation,s 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 the interest on the Certificates will be excludable
39
from gross income for federal income tax purposes under Section 103(a) of the Code, subject to the matters descn'bed under
"Tax Exemption• herein, including the alternative minimum tax on corporations. The customary closing papers, including a
. certificate lo the effect that no litigation of any nature has been filed or is then pending lo restrain the issuance and delivery of
the Certificate,, or which would affect the provision made for their payment or IC<:Urity, or in any manner questioning the
validity of said Certificates will also be furnished. The legal fee to be paid Bond Counsel for services rendered in connection
with the issuanee of the Certificates is contingent on the sale and delivery of the Certificates. The legal opinion will be printed
on the Certiricates.
Authenticity or Financial Data and Other lnf'ormatlon
The financial data and other information contained herein have been obtained from the City's records, audited fmancial
statements and other sources which are believed lo be reliable. There is no guarantee that any of the assumptions or estimates
contained herein will be realized. All or the summaries of the statutes, documents and resolutiom contained in this Official
Statement are made subject to all or the provisiom of such statutes, documents and resolutions .. These summaries do not purport
to be complete statements of such provisions and reference is made lo 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 Certiftcates. The
Financial Advisor's fees for service, 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 Financisl
Advisor, has relied .on the opinion or Bond Counsel and has .not verified and does not as,sume any liability for the information,
covenants and representation• contained in any of the legal documents with resped lo lhe rederal income tax status of the
Certiftcates, or the possible impact of any present, pending or future actions taken by any legislative or judicial bodies.
Certification of the Omcial Statement
At the time of payment for and delivery of the Certificates, the Purchasers will be furnished a certificate, executed by proper
officers, acting in their official capacity, lo the effect that to the best of their knowledge and belief: (a) the descriptions and
statements of or pertaining to the City contained in this Official Statement, and any addenda, supplement or amendment thereto,
on the date of such Official Statement, on the date of sale or 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 Ofllcial Statement did not and does not contain an untrue statement of a material fact
or omit to state .a material fact reqwn:d to be stated therein or necessary lo. make the statements therein, in the light or .the
circumstanees under which they were made, not misleading; (c) ins_orar 11• the descriptioru1 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 lo believe
that they are untrue in any material respect; and (d) there has been no material adverse change in the financial condition or the
City since the date of the last audited 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 authorile its further use in the m:,ffering of the Certificaleo!. by the
Purchaser.
ATrEST:
RANE'ITE BOYD
City Secretary
40
DAVID ft. LANGSTON
MllYl)T•
City of Lubbock, Texas
APPENDIX A
OENE!RAL INFORMATION REOARDINO TIIE CITY
• Amari o
LUBBOCK
•
Fort Worth• • Dallas
aso
Location
The City of Lubbock, County Seat of Lubbock County, Texas, is located on lhe South Plains of West Tex.as. Lubbock is the
economic, educational, cullural and medical cente;r of the area.
Popuhluon
Lubbock is the ninth largest City in Texas:
1910 Census
1920 Census
1930 Census
1940 Census
19S0 Census
1960 Census
1970Ci,nsus
1980 Census
1990 Census
City of Lubbock
(Corporate Limits)
1,938
4,0Sl
20,S20
31,SS3
71,390
128,691
149,701
173,979
186,206
Metropolitan Statistical Area ('.'MSA ") {Lubbock County)
1970 Census 179,295
1980 Census 211,6S1
1990 Census 222,636
Agriculture; Business and Industry
Lubbock is the center of a highly mechanized agricullllral area with a majority of the crops irrigated wilh water from
underground sources. Principal crops are cotton and grain sorghums with livestock a major additional source of agricultural
income. Official 1991 cotton production in the 2S-county area around Lubbock was 2,327,700 bales; 1990 production was
2,950,900 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 Lubbook.
Over 200 manufacturing plants in Lubbock produce such products as semi-conductor products, vegetable oils, heavy earth·
moving machinery, irrigation equipment and pipe, farm equipment, paperboard boxes, foodsmffs, mobile and prefabricated
homes, pou1try and livestock feeds, boilers and p~re vessels, automatic sprinkler system heads, sttuctural steel fabrication
and soft drinks.
Lubbock MSA Labor Force Estimares
lune May April lune May Apr
1992 (I) -1.fil!L -1.fil!L 1991 ....122L 1991
Civilian Labor Force 118,600 116,279 116,600 117,100 114,800 115,300
Total Employment 109,300 109,059 109,300 110,300 108,700 108,800
Unemployment 9,300 7,220 7,300 6,800 6,100 6,S00
Percent Un~loyment 7,8% 6.2% 6.3% S.8% S.3% S.6%
(1) Subject to revision.
Source: Texas Employment Commission.
A-1
,,..
,..
Estimated non•agricullllral wage and salaried jobs in various camgorics as of May, 1992, were:
Manufacluring
Mining
Constniction
Transportation Trade .
7,000
200
3,900
S,200
27,000
Finance, Insurance and Real Estate
Services
4,600
26,400
23.700
98,000
Government
Total
Major employers in Lubbock (with 300 employees or more) are:
Company
Texas Tech University
TTU Health Sciences Center
Melhodist Hospital
Lubbock Independent School District
Reese Air Force Base
City of Lubbock
St. Mary's Hospital
University Medical Center
Texas lnstniments, Incorporated
Lubbock State School
United Supermarkets
Furr's Cafeterias
U.S. Postal Service
Fleming Companies, Inc.
Lockheed Corporation.
Southwestern Bell Telephone Company
Supermarkets lnco,porat.ed
Frito Lay
ARA Food Service
Texas Department of Human Services
Coca-COia, Dr. Pepper, Seven-Up Bottling Co.
Southwestern Public Service Company
Lubbock Regional Mental Health and
Mental Retardation Cent«
Lubbock Avalanche-Journal
Ma:rriott Corporation
* Full and part time. ** Military and civilian.
Product
State U Diversity
Medical and Allied Health School
Hospital
Public Schools
U.S. Military Installalion
City Government
Hospital
Hospital
Electronics Manufacturer
School for Ment.a.lly Retarded
Retail Groceries
Cafeterias
Post Office
Wholesale Groceries ·
Contract Aircraft Maintenance at
Reese Air Force Base •
Telephone Utility
Retail Groceries
Food Manufacturing and Sales
Food Broker
State of Texas Agency
Soft Drink Bottling
Electric Utility
State of Texas Agency
Daily Newspaper
Hotel/Housekeeping and Hotel
Management
Source: Office of Bcon.omic Development, Ci!¥ of Lubbock, Texas: ·
Education ••• Texas Tech University •••
Estimated
Employees
June, 1992
7,70S•
3,264
3,ZOO
3,lSO
2,320-*
2,114
1,867
1,700
1,200
964
92S*
800
644
S2S
464
44S
400
386
38S
381
350*
348
340*
340
303*
Eslllblished in Lubbock in 1923, Texas Tech Univenity is the fifth largest State,.owned University in Texas and had a Spring,
1992, enrollment of 22,766. Accredited by the Southern Association of Colleges and Schools, lhe University is a co-educational,
State-supported instilution offering lbe bachelor's degree in 158 major fields, the master's dei:n,e in 107 major fields, lhe
doctorate degree in 64 major fields, and the professional degree in 2 major fields (law and medicine).
The U lliv«sity proper is situated on 4Sl acres of lhe 1,829 acre campus, and has over 160 permanent buildings with additional
ccnsuuctionin progress. Spring, 1992, faculty membership was 867 fidl-time and 720 pan-time. Including the Heallh Science&
A·l
Center, the Univer:sity'a operating budget for 1991-92 is $360.3 milli<m of which $166.9.million is from State appropriations;
book value of physical plant assets, including the Health Sciences Center, io in excess of $562 million.
The medical school bad an enrollment of 390 for Spring, 1992, not including residents; there are 33 graduate students. The
School of Nursing had a Spring, 1992, enrollment of 307 including the Permian Basin Progn,m, located in Midland/Odessa;
there were 34 graduate students. The Allied Health School had a Spring, 1992; enrollment of 138.
Other Education Information
The Lubbock Independent School District, .with an area of 87 .S square miles, includes over 90% of the City of Lubbock:. There
are approximately 3,lSO total employees, including 2,461 certified (professional) personnel and 689 other employees. The
District operates five senior high schools, nine junior high schools, 40 elementary schools and other educational programs.
Scholastic Membersrup History•
School
Year
1986-~7
1987-88
1988-89
1989-90
1990-91
1991-92
Student
Membershjp
. 29,490
· 30,955
30,828
30,861
30,684 ·
30,736
* Source: Superintendent's Office, Lubbock Independent School _District.
Refined
Average
Daily
Attendance
27,837
28,194
28,159
28,373
28,101
28,090
Lubbock Christian University, a privately owned, co-wucational senior college localed in Lubbock, had an enrollment of 1,029
for the Spring Semester, 1992.
South Plains College, Levelland, Texas (South Plains Junior College District) operates a major off-campus leaming center in
a downtown Lubbock, 7-story building owned by the College, College offerings cover technical/vocational subjects; Spring
Semester, 1992, enrollment was 1,314. The College also operates a major off-campus learning center at Reese.Air Force Base;
course offerings are in primarily academic subjects; Spring Session, 1992. enrollment was, 860.
The State of Texas School for the Mentally Retarded, located on a 226-acre site in Lubbock, consists pf 4-0 buildings with ·bed-
capacity for 440 students; 422 students were in residence in June, 1992. The School's operating budget for 1991/92 is in excess
of $20.0 million; there are 964 professional and other employee&.
Transportation
Scheduled airline transportation at Lubbock International Airport is furnished by American Airlines, Deha Airlines, Southwest
Airlines, Continents! Express and American Eagle; non-stop service is provided to.Dallas-Port Worth lnternatio11nl Airport,
Dallas Love Field, El Paso, Austin, Amarillo and Albuquerque. 1991 passenger boardings totaled '561,588. 'Extensi~e privste
aviation sen1ices are located at the airport. ,,
Rail transportation is furnished by the Atcruson, 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·Seagravcs, 'Whiteface and Lubbock Railrosd. Texas, New Mexico and Oklahoma Bus Lines, a subsidiary of
Greyhound Corporation, provides bus service. Several motor freight common carriers provide service. .
L.ublmckhas a well de>'elopedhighway network fucludirig Interstate 27 {Lubbock~A.marillo), 4 U.S. Highways; 1 State Highway, a controlled-access ouier loop and a county-v.ide 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 Jet Pilot Training Base of the
Air Training Command, The Base covers over 3,000 acres and has approximately 1,744 military, 576 civilian and 683 contract
personnel.
,..
State of Texas . . . More than 2S State of TeJWJ boards, departments, agencies and commissions have offices in Lubbock;
several of these offiees have multiple units or offices.
Federal Government ... Several Federal departments and various other administrations and agencies have offices in Lubbock;
.• Federal District Court is located in the City.
Hospitals and Medical Care
There are eight hospitals in the City with over 1, 7SO 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 Univenity
Medical Center which it operates as a teaching hospital for the Texas Tech Univenity Medical School. There are numerous
clinics and over 400 practicing physicisns and surgeons (M.D.) plus the Texas Tech University Medical School Staff, and over
90 dentists. A radiology center for the treatment of malignant diseases is located in the City.
Recffllliml and Entertainment
Lubbock's Mackenzie Regions! Park and over 6S City parks and playgrounds provide recreation centers, shelter buildings, a
garden and a.rt center, swimming pools, a golf course, tennis and volley bsll courts, baseball diamonds and picnic areas,
including the Yellowhouse Canyon Lakes system of folll' lalces and SOO acres of adjacent parkland extending from northwest to
southeut Lubbock along the Yellowhouse Canyon. There are several privately-owned public swimming pools and golf courses,
and countey clubs.
The City of Lubbock has developed a 36 square block area of approx.imately iOO acres adjacent to downtown Lubbock under
the Lubbock Memorial Civic Center program. Approximately SO acres contain the 300,000 square foot Lubbock Memorial Civic
Center, the main City hbrary building and State Department of Public Safety offices; a SO acre peripheral area has been
redeveloped privately with office buildings, holds 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, LubbockSymphonyOrohestra 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 2.SS churches representing more than 25 denominations.
Utility Services
Water and Sewer -City of Lubbock.
Ga& -Energas Company.
Electric -City of Lubbock (Lubbock Power & Light) and Southwestern Public Service Company; and, in a small ai:u, South
Plains Electric Cc-operative.
A-4
Economic Indices (l)
...l'.eL.
1982
1983
1984
1985
1986
19&7
1988
1989
1990
1991
Building
Pennit.9
$130,720,599
230,440,777
212,353,170
168,740,229
139,317,252
100,046,309
105,159,525
105,363,072
140,855,719
131,333,756
(1) All data as of 12-31; Source: City of Lubbock.
.YiJ!.!£1:..
56,172
58,034
59,262
60,0Sl
60,751
61,027
61,628
61,857
62,178
62,267
Utility Connections
---9l!L..
54,650
S4,927
56,540
56,600
56,900
57,266
57,886
60,312
61,700
60,803
lLP&L Only)(2l
34,987
37,282
39,037
40,506
41,759
42,696
43,781
44,518
45,301
46,245
(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·S
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} t ) ) ) ) ) ) ) ) Building Permits by Clasm1e11tion Residenli!!I l!m:l!its Commercial, Sil!i!ef1milX Dyl!lexes Aoartments(ll I!lll!I Residm!i!J Public Total Calendar No. No. Permits No. No. Permits and Olher Building ...:..YaL. Units Value illnruil V@lue ..lbm!. Y!!l!!S: !,!nit§ Vgjue ~it! fm!!its 1982 733 $56,023,000 34( 68) $ 2,442,250 860 $18,504,660 1,661 $ 76,969,910 $ 53,750,689 $130,720,599 1983 1,166 88,830,755 135(720) 11,786,500 2,520 59,356,586 3,956 159,973,841 70,466,936 230,440,777 1984 919 65,815,11.5 56(112) 6,068,500 645 16,546,000 1,67{> 88,429,615 123,923,555 212,353,170 1985 601 50,100,350 33( 66) 2,586,300 96 2,664,000 763 55,350,650 113,389,579 168,740,229 1986 599 49,329,236 7( 14) 566,000 -..o.. -0-613 49,895,236 89,422,016 139,317,252 1987 508 44,466,937 -0--0--0--0-508 44,466,937 55,579,372 100,046,309 1988 414 35,588,945 -0--0--0-..().. 414 35,588,945 69,570,580 10S,159,S2S 1989 368 31,345,375 6( 12) 440,800 -0-..().. 374 31,786,175 73,576,897 105,363,072 1990 368 35,652,140 -0--0-8 416,000 376 36,068,140 104,787,579 140,855,719 1991 424 38,574,190 ..().. -0-.().. .().. 424 38,574,190 92,759,566 131,333,756 {1) Data shown under "No. Units" ia for each individual apartment dwelling unit, and is not for separate buildings; includes triplex and quadruplex pennits. Sourco: City oC Lubbock, Texas. )
The following in(ormatio11 collCel'lllllg the Electric Light and Power System and the Airport System is for ge11eral
information only.
Lubbock Power and Light
Lubbock Power and Light ("LP&L") was established in 1916, and is presently the largest mu~ipal system in the West Texas
region and the third largest in the State of Tens. LP&L and Southwestern Public Service C~mpany ("SouthwC8tem'), 11
privately owned utility company operating within the corporate limits of the Cily, each provide electric service to residents and
businc:8Ses 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. AJJ of January, 1992, the System served 57.3% ofall connections.
Southwestern was granted a new 20-year franchise in 1982. The'company pays the City a franchise tax of3% of its gross
receipts which is deposited into the City's General Fund; LP&L makes an equivalent in lieu of payment to the General Fund
of the City. AJJ of January, 1992, SouthwC8tem supplies power to approximately 43$ of the customers in Lubbock.
LP&L generates part of its power requirements through the use of three generating station• located within the City. These plants
are geographically separated and deliver bulk power to substations through a 69 kilovolt (kV) I.Tllnsmission loop system. ' '
LP&L currently contracts for the purchase of 25 megawatts (MW) of power from Southwestern; power is delivered via two
interconnections, each capable of delivering up to 100 MW to LP&L.
Generating Statjom ... The total generating capacity of LP&L is 220,500 kW. Gas turbine genenitors provide the system with
52,500 kW of ready reserve and quick-start generalion 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 th~ ·following:
Generator
Year Capacity
Manuf!cturer Installed Station fcime Mover fuel in kW
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 Gaa Turbine** . Gas or Oil -Z.!!J!QQ
220,500
* Since the completion of the second interconnection with Southwestern Public Service, Station No. 2 has been kep: 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 ,,,ith 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 3 l, 2004, with year to year extensions thereafter
subject to five years notice oftennination by either party: The contract provides for "fmn power•, •emergency energy• and
"non-finn • energy; non-firm energy purchases by LP&L are made on an economic dispatcll basis and 'are subject to
Southwest.em'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. The City specifies its fmn. power requirements five years
in advance subject to adjustment by plus. or minus 30'}(, at least one year in _advance. Ll'&L haf designated 25:~W for 1992,
30 MW for 1993, 40 MW for 1994 and 1995 and 45 MW for 1996. Southwestern will mll.U such fum power and energy
available to LP&L as specified, provided it has sufficient capacity in its existing facilities for any requested increase.
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Southwestern serves an area covering the Panhandle and South Plains of Texu and parts of eastern New Mexico with an
integrated electric generating and distribution system.
Fuel Supply ... Present primary fuel supply for LP&L's generating system is natural gas, wh.icli ill supplied by Adobe Gas
Pipeline Company, Adobe Gas Marketing Company and Prudential-Bache Energy Growth Fund; LP&L bas other alternative
gas supplies including in-ground reserves owned by LP&L. These major gas suppliers are under long lenn contracts which
provide LP&L with maximum flexibility in securing the lo"'CSI cost energy at all times.
Secondary fuel in the form of fuel oil ill maintained in storage in the City. LP&L '• present storage capability of fuel oil, for
standby, secondary fuel, is over 1,500,000 gallons, an adequate supply of fuel oil for S days openltion; with expected re-supply,
this period would the substantially extended. The 1978 Holly steam generator has a multi-fuel capability as it is designed to bum
natural gas or all grades of fuel oil. In practice LP&L maintains approximately 600,000 gallons of fuel oil in storage due to
the availability of purchased power and back-up gu supply.
Transmjsaion and Dmnnution ... A 69,000 volt (69 kV) transmission loop system, 74.45 miles in length, provides bulk power
to ten 69,000112470 bulk substations with a combined base capacity of 321 megavolt amps (MV A). W,th all cooling systems
in operation, these substations could provide up to 482 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
additional 2SO% 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 4.33
miles of 230 kV transmission lines.
The .distribution system includes approximately 656 miles of overhead distnoution lines and approximately 201 miles of
underground distribution lines. There are six 12,470l4160volt substations in lhe distribution system, Net system load for Fiscal
Year Ended September 30, 1991, was 958,946,7&4 kilowatt hours (kWh) with a pesk demand of 202,000 kW.
Continuing Transmis11jonand Distnnution Systgn Improvement Program .•• A transmission and distn'bution system construetion
and improvement program using internally generated funds is in progress.
Substation Construction and Facilities Relocation Program ... Proceeds of $7,500,000 Electric Light and Power System
Revenue Bonds, Series 1991, sold April 2S, 1991, are being used to:
(1) Construet a 'South Substation" to meet expected load growth in south and southwest Lubbock and expected load
growth along the 1-27 corridor; this substation will also prevent future voltage problems in this region; this substation
consists of two lS/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 indicate
that a major 69 kV transmission line along with numerous distnnution lines will nud to be relocated. The majority
of these lines are located on or along existing public streets and alleys and consequently are not eligible for
reimbursement by the Texas Department of Highways and will be relocated.
Ekctrlc 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 June 1, 1989.
A-8
Selected Electric Rates (Effective 6-1-1989)
Residential
Service Availability Charge
All kWh per month@ 3.93t; per kWh
Plus: Fuel Cost Recovery
General Service
Service Availability Charge:
First 1,000 kWh per month
Next 6,000 kWh per month
Next 6,000 kWh per month
All additional kWh per month
$ 4.66 per month
$12.48 per month
5.240 per kWh*
2.22,; pe.r kWh
1.05t; per kWh
0.55t; per kWh
* Add to the 5.240 block 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.
Minimum Charge: $12.98 per month for demand of 10 kW or less, plus $3.50 per kW for oext 15 kW above 10 kW, plus $2.30
per kW for all addition.al kW. No demand shall be taken as less than 50% of highest demand established in 12 months ending
with current month.
Condensed Statement of Operations • Electric Light and Power System
Fiscal Year Ended 9-30
1991 1990 1989 1988 1987
Operating Revenues $ 49,142,199 $ 49,271,634 $ 49,285,975 $ 49;102,951 $ 44,514,574
Non-Operating Income 3,247,106 i,926,158 3,802,433 i,629,613 8!/2,100
Gross Revenues $ 52,389,305 $ 52,197,792 $ 53,088,408 $ 51,732,564 $ 45,317,674
Operating Expense
(excluding depreciation) 33,225,153 ;'!3,7;!0,001 34,442,69~ ~1,928,152 32,§49,325
Net Revenues i 19,164,152 i 181467,791 ~ 18,6451714 ! 19,804,412 i 1216681349
Electric Connections 46,014 45,114 43,315 43,781 42,702
Maximum Principal and Interest Requirements, Electric System Revenue Bonds,
Fiscal Year Ending 9-30-92 ..•. " ••.•••..••.•. ,' ••.•••...•...•...••. , . . • . • • . $ 6,909,297
Coverage by Net Revenues, Fiscal Year Ended 9-30-91 •.•....•....••.•....•. , , ••••.•. , , . 2.77 Times
Electric Light and Power System Revenue Bonds Outstanding 9-30-91 . . . . • . . • • . • . • . . . . . . . . • $ 43,294,965
Interest and Sinking Fund, 9-30-91 . . . • . . . . . . . . • . • . . • . . . . . • . . • . . • . . . . . . . . . . . . . . . $ 5,880,712
Reserve Fund, 9-30-91 . • . . . . . . . . . . • . • . . . . . . . • . . . . • . . • • . . . . . . . . • • . • • • . . . . . . $ 3,413,183
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 ofTeJtaS sheet IV-69). The fuel fa.ctorwill remain constant for approximately
one year. At this time the fuel factor is $0.020636/kWh. All rates are subject to fuel cost recovery.
Airport System
The City has owned and operated its airport since 1929, with scheduled airline service beginning in 1946. Lubbock International
Allport is located six miles north of the central business district and bas an area of 3,148 acres, of which approximately 1,900
acres is used for farming and clear zones.
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Scheduled Airline Service ... Schedule airline transponation is furnished by American Air Lines, Delta Airlines, Southwest
Airlines, Continental Express and American Eagle. Non-stop scheduled service is provided IO Dallas-Fort Worth International
Airport, Dallas Love Field, El Paso, Austin, Amarillo and Albuquerque. 1991 passenger enplanements were 561,558.
Lubbock International Airport Terminal ... The terminal building contains approximately 222,000 square feet; the tenninal
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 i& 1,820, including 140 employees. The old terminal building hu been converted to government and
commercial office space and houses a Federal Aviation Administration ("FAA") Flight Standard District Service Office.
Runway System ... The runway system consists of:
I -11,500' x 150', north/south, primary runway with high intensity lighting and a FAA--0perated 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 some general aviation
services, a National Weather Service office and a U.S. Customs office. General aviation services are mainly available from
two west-side located major fixed base operaton 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 !.he airport. Construction was completed
in February, 1991, on a $S.2 million dollar project, partially funded by Federal participation, IO provide reconstruction of the
west cargo ramp which provides aircraft; parking space for air freight operations, two bypass taxiways to improve traffic flow
for runway 17 right and new underground wiring for all lighted taxiways of the airport. This new construction serves both
general and commercial aviation facilities.
Warehouse, Hangar and Land Rentals ... The airport has five 16,000 square foot warehouses and six other warehouses for
storage space rental.
A 40,000 square foot hangar was completed and leased to the FAA on March 9, 1992.
Industrial ... Two steel companies, two research companies and a manufacturing company are located at the airport.
Condensed Statement of Operations • Airport
Fiscal Year !;lnded 9-30
)991 )990 19!!9 12ss 1987
Operating Revenues $4,064,177 $3,810,310 $3,617,038 $3,223,095 $2,966,294
Non-Operating Revenue 2~.;p1 20§,~ ss,sis 146,809 U3,m
Gross Income S 4,330,414 $4,018,975 $3,672,556 $3,369,904 $3,079,476
Operating Expense
(excluding depreciation) 3,618,409 3,192,614 ;1,222,437 3,Q3S,11!! 2,785,283
Net Revenue s z121oos s 8261361 s 4~0,J19 s 3311ll9 s 294,193
Maximum Principal and Interest Requirements, Airport Revenue Bonds,
Fiscal Year Ending 9-30-92 ............•..••..................•.....••..•.•...
Coverage by Net Revenue, Fi.seal Year Ended 9-30-91 .•......•......•.......••. , •.......
Airport Revenue Bonds Outstanding, 9-30-91 .....................•....•....•.••....•.
Interest and Sinking Fund, 9-3()..91 ..........................••.....•..............
Reserve Fund, Cash and Investments, 9-30-91 .............•.................•.........
A-10
$ 118,258
6.02 Times
S 625,000
$ 51,084
$ 300,000
THIS PAGE LEFT BLANK INTENTIONALLY
APPENDIX B
FORM OF BOND COUNSEL'S OPINION
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TELEPHONE: 214/ess-aooo
P'ACSIMILE: 214/&55·5200
FULBRIGHT & JAWORSKI
2200 Ross AVENUE
SUITE 2800
DALLAS, TEXAS 7S201 HOUSTON
WASHINGiON1 0.C.
AUSTIN
SAN ANTONIO
DALLAS
NEW YORK
LOS ANGEL£$
LONDON
ZURICH
HONG KONG
WE HA VE EXAMINED into the legality and validity of the issuance of the "City
of Lubbock, Texas, Tax and Waterworks System (Limited Pledge) Revenue Certificates
of Obligation, Series 1992" (the "Certificates"), dated August 15, 1992 (the "Certificate
Date"), in the principal amount of $7,565,000, 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, 1993 through February 15, 2012, unless redeemed prior to maturity,
in accordance with the terms stated on the face of the Certificates, and bear interest
on the unpaid principal amount from the Certificate Date at the per annum rates stated
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, 1993, to the registered owners shown on the registration books of the
Paying Agent/Registrar on the Record Date (stated on the face of the Certificates).
WE HA VE 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 the sources and secured in the manner provided in the Ordinance,
except to the extent that the enforceability 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.
20078
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Page 2 of Legal Opinion of Fulbright & Jaworski
RE: $7,565,000 "City of Lubbock, Texas, Tax and Waterworks System (Limited
Pledge) Revenue Certificates of Obligation, Series 1992", dated August 15, 1992
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
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 net book income, for the tax year 1989, or 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 and the environmental tax imposed by
Sections 55 and 59A of the Code, respectively, will be computed for tax years beginning
after December 31, 1986.
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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FULBRIGHT & JAWORSKI
TELEPHONE: 214/855•&000
rAC$1MILI:: 214/85S•8ZOO
WFIITl:Fl'S CIFICCT OIAL NUMlll:R!
214/855•&154
2200 Ross AVENUE
SUITE 2800
DALLAS, TEXAS 75201
September 29, 1992
CERTIFIED MAIL #P-872-787-086
RETURN RECEIPT REQUESTED
Internal Revenue Center
Philadelphia, PA 19255
Re: Information Report Pursuant to Section 149 (e)
Ladies and Gentlemen:
HOUSTON
WASHINGTON, 0.C.
AUSTIN
SAN ANTONIO
CALLAS
NCW YORK
LOS ANGELI:$
LONDON
ZURICH
HONG KONG
Enclosed herewith is a statement by the City of Lubbock, Texas, concerning its
obligations styled ''City of Lubbock, Texas, Tax and Waterworks System (Limited
Pledge) Revenue Certificates of Obligation, Series 1992" 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 stamped, addressed
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.
RFRJlc
Enclosures
,.
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.m 12-119 3497
, ..... 8038-G
(Rw. October 1989)
Information Return for Tax-Exempt Governmental Obllgatlona • Und1r Stellon l49(t) • SH H!Mlr.tll lnstructlont
OM8No. 1$45-07:lll
l,pitu S-Jl·92
l)epar11Mnt of Illa ''""'"" -l'NI Rt-ut SOMOt
1 lssuer·s n.tme
Authorlt
City of Lul:bock, Texas
J N;11T1ber arid strflt
1625 13th Street
(Use Form 8038-GC If Ille issue priee is under $100,000)
Check box if Amended Retum •
2 l»uer"s empklyer ldent,fic.ltien numoer
75-6000590
4 Report number
GU 92 • 4
1 Texas, Tax and Waterworks System • CUSIPNufflber
Revenue Certificates of O:>li ation, 5491862C7
I Cheek box. if obligations are tax or other revenue anticipation bonds • 0
10 Check box if obligations ere in the form of I lease or instanment sale• 0
11 0 Education • , • • • • • • •
1Z O Health and hospital , • • • . • •
13 0 Transportation • • • • • • • •
14 0 Pubric safety • • • • • • • • •
15 0 Environment (Including sewage bonds)
H D Housing .••.•.•••
hsueprc1
3,593,423.70
!: 8 ::~ Des~ri~ (~e'1ns'tru'c:11~)•· Land. for. state" correciicinal. fad.tit}, .
19 finalrnaturity • 2 15 2012
zo
Proceeds used for accrued interest • • • • • • • • • • • • •
Issue priceof entire issue (enter line 20c) • • • • • • • • • . •
Proceeds used for bond issuance costs {including underwriters' discount).
Proceeds used for c1edit enhancement • • • • • . . • • • •
Proceeds allocated to reasonably ,equired reserve or replacement fund •
Proceeds used to refund prior issues • • • • • • • • • • • • •
Total (add lines 23, 24, 25, and 26) . . • , • , • • • • • • .
Nonrefund of the Issue subtract fine 27 from line 22 Ind enter amount here
29 Enter the remainine wtir,hted 1verage maturity of the bonds to be 11funded
SO Enter the last date on whidl the refunded IKlnds will be caaed
31 Enter lhe date(s) the refunded bonds were issued •
. • __ .,:N;:.i/,:;:A,__..1.:.1!:::•::.rs
J •• --------
ldW Miscellaneous
S2 £mer thumount of the state volume cap anoc:ated to the luue • • • • • • • • • • • • • • ___ -_o.,_-___ _
3.1 Enter the amount of the bonds desi&nated by the issuer under section 265(b)(3)(8)(1)(111) (smaa -0-Issuer exception) • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
34 PooleiS financinp:
a Enter the amount of the proceeds of this issue that ire to be used lo make loans to other &ovtmmtntal units • -0-
1, Check box if Ibis issue is I loan made from the proceeds of 1nothertax-exempt Issue • 0 and enter the name of the
Issuer • and the elate of the issue •
Please
Sip
Here
J. Robert Massengale
Assistant City Manager for
.:::=~~~~~!.!:::'.~~~~~~--___:9~/:..:9:!./=.92~-• Financial Services
'1na1\neloff°-Dote TJllllorpnnlNIMlfld-
ror Paperworl Reduction Ad Notice. IN pap 1 ofth1 lnstructJona. ,..., 8038-G (1kt. 10-«9>
(Tbt rien pa,e Is 3497-S.)
No Text
,,,.
m 12.n
3497
,_ 8038-G
(Rev. October 1989)
lnformatlo(O! ~xempl Governmenlal Obllgatlon1 • 1/ndu S•cUon IC9(1) • Su .. p&rall ln1lructlo111
OMtl No. 154S~20
Elpire1 S-Jl•IJ
Authorlt
1 Issuer's namt
City of Lubbock, Texas
I Humber and street
1625 13th Street
City or town. stall!, and ZIP coda
Lubbock, Texas 79401
(UH Form 8038-GC ii the issue price ls under Sl00,000)
Checlt box if Amended Return •
2 Issuer's employet IC!ent1l1t1lion nu"'"r
75-6000590
4 Report.number
GU 92 -4
N1meofl$sut y o L , Texas, Tax and Waterworks System • CUSIPNumber
(Limited Pl e) Revenue Certificates of O>li ation, 5491862C7
t Check box if obligations 1re tax or other revenue anticipation bonds• 0
10 Check box if obligations are In the fonncfa lea$1! or Installment sale• 0
11 D Education • • • • • • • • • • . , • . • . • •
U O Health and hospital • . . . • • •
11 0 Transportation . • • • • • • •
14 0 Puliticsafety •••••••••
U O Environment (including sewage bonds)
U5 0 Housll·ig • • • • • • • • • !! 8 ~=~ Oe~ri~ (~e·l~tr~)•· tand. for. state" c"oirectional 'facility .
Proceeds used for accrued interest , • • • • • • • • • • • •
Issue price ot entire issue (enter line 20e) • • • • • • • . • • •
Proceeds used for bond issuance ~ts (includin& underwriters• discount) •
Proceeds used for credit enhancement • • • • • • • • • • •
Proceeds allocated lo reasonably required reseM or replacement fund •
Proceeds used to ntlund prior Issues . • • • . • . . • • • • •
Tclal (ldd Ines 23, 24, 25, ll'ld is) . . . . , • . . . . . , ,
Nonrefundi of the issue subtract line 27 from line 22 and enter amount here
it Effler the rem1inl~ wti&httd rkrt';t'maturity of the llonds to l>e refunded •
JO Enter the Im date on whidl the refunded bonds win l>e celled • • • • • L Effler the date<s)the ntfunded bonds were Issued • . N Mlscellaneo111 ·• • ·
. • ' . •
JZ Enter the amount ot the state YQILl!l'le cap allocated to the i:ssue • • • • • • • • • • • • • •
31 Effler the amount of the bonds desl&n,ated by the i:ssuer under sedlon 265(b)(3XBXOOU) (SfflllD
issuer exception) • • • • • • • • • • • • • • • • , • • • • • • • • • • • •
3,593,423.70
N/A
-0-
-0-
34 Pooled ftnancinp:
• tnter the amovnt of the proceeds of this issue that are to lie used to 1111kt loans to other ~mental units • -0-
• Check box If thiS issue is a loan made fl'Offl lht proceeds of another tax'1!Xefflpt issue • 0 and enter the name of the
issuer • . Ind the date of the issue •
Please
Sl&n Hert 9/9/92
ITtle nat pp .1t ac11-1.1 .
for Paperwork Re4\ldlon Act Notke. '" pap 1 of th41 lnltnldlorlL C
J. Robert Massengale
Assistant City Manager for; • Financial Services
Tfl't • ftntlllffll llldldle
,_ 8038-G (Rer. JH
C
) ) RFR Lub ) ) P 872 7/fl 036 Certified Mall Receipt No Insurance Coverage Provided -Oo not use for International Mail ,:S:W,R:& (See Reverse) -.. Internal Revenue Center SlJNt&No. PO,. -& ZIP COde Philadelphia, PA 19255 } l ) ) l l l
No Text
C 0 "Cl li .I § • CGmploy-1""""'2""---I llllo wlah to receive the • ~-3,llld4".b. following aarvlCe8 (fo, an extlll • Print----..,tho-oflhia_oo ___ fM): _tllll_.., __ • ,._., lhla farm"' .... -of,... ........... 0,"" .... boGk If-1. 0 Add.,_'• Acklreu .... _.-,,II. • wi11a•-~~ ... ,...ma11p1oc,e-u..ar11o1e"""'°" 2. 0 Realricted DeUve,y • Thellotumllocelptl'Mwlll--yauthe ......... oftho_ ........ 10 Ind tho date of .......... Conault """tmaater for fee, 3, Article AdckeNed to: 4a. Af1lcleNumber P 872 787 036 Internal Revenue Center 4b, s.vlaeT~ Philadelphia, PA 19255 D Regi•ulred D lnaured ~ Cerlified •coo D &p,euMall D Return R~pt fo, 7. Data of Deliye,y 6. Slgnatul'9 IAddr ..... l 8. Addruue'• Add, ... !Only if r•QUNted andfeei•pflidl 6, Signature IA;entl PS Form .:la 11, November 1980 •U.S. GPO! 11191-aaNllll DOMESTIC RETURN RECEIPT 11 ~ I' I I I I I I I I I I I I I I I I I I I I I: ,· I
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