HomeMy WebLinkAboutOrdinance - 9432-1991 - Issuance Of $7,500,000 Electric Light And Power System And Revenue Bonds 1991 - 04/25/1991.~ .
ORDINANCE NO. 9432
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AN ORDINANCE authorizing the issuance of
$7,500,000 "CITY OF LUBBOCK, TEXAS, ELECTRIC
LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES
1991"; prescribing the forms, terms, and
provisions of said bonds; pledging the net
revenues of the City's Electric Light and Power
System to the payment of the principal of and
interest on said bonds; enacting prov1s1ons
incident and related to the issuance, payment,
security, sale and delivery of said bonds,
including the approval and distribution of an
Official Statement pertaining thereto, and
providing an effective date.
WHEREAS, this City Council has heretofore caused
notice of its intention to issue bonds for the purpose of
improving and extending the electric light and power system of
this City to be published once a week for two consecutive
weeks, the date of the first publication being not less than 15
days prior to the date set for the passage of the ordinance
authorizing the issuance of the bonds; and
WHEREAS, such notice was published in the Lubbock
Avalanche-Journal on the 24th day of March, 1991 and the 31st
day of March, 1991; and
WHEREAS, no petition, signed by 10% of the qualified
voters of the City, has been presented to the City Secretary or
other officials of the City requesting that an election be held
on the question of whether such bonds should be issued; and,
therefore, this Council is authorized to authorize, issue and
deliver the bonds herein authorized; and ·
WHEREAS, the City Council has further determined and
hereby finds that said bonds can and should be issued on a
parity with other outstanding revenue bonds of the City
(hereinafter called and defined as "Previously Issued Bonds")
payable from and secured by a first lien on and pledge of the
net revenues of the City's Electric Light and Power System
(hereinafter called the "System") and that the terms and
conditions for the issuance of "additional bonds" on a parity
with the Previously Issued Bonds can be met and satisfied, to
wit: (i) the Mayor and City Treasurer can certify that the
City is not now in default as to any covenant, condition or
obligation prescribed by the ordinances authorizing the
issuance of the outstanding Previously Issued Bonds, including
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showings that all interest, sinking, and reserve funds have
been fully maintained in accordance with the provisions of said
ordinances; (ii) applicable laws of the State of Texas now in
force permit and authorize the issuance of the bonds and will
be fully complied with, (iii) the City can secure from an
independent Certified Public Accountant a written report
demonstrating that the net revenues of the System were, during
the last completed fiscal year, equal to at least 1-1/2 times
the average annual principal and interest requirements of all
the bonds which will be secured by a first lien on and pledge
of the net revenues of the System and which will be outstanding
upon the issuance of the bonds herein authorized; and further
demonstrating that the net revenues of the System during the
last completed fiscal year were equal to at least 1-1/5 times
the maximum annual principal and interest requirements of all
such bonds as will be outstanding upon the issuance of the
bonds herein authorized, (iv) the bonds herein authorized will
mature on April 15 in each year, and (v) the "Reserve Portion••
of the Bond Fund shall be accumulated and supplemented as
necessary to maintain therein a sum equal to at least the
average annual principal and interest requirements of all bonds
secured by a first lien. on and pledge of the net revenues of
the System which will be outstanding upon the issuance of the
bonds herein authorized; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK:
SECTION 1: Authorization -Designation -Principal
Amount -Purpose. Revenue bonds of the City shall be and are
hereby authorized to be issued in the aggregate principal
amount of $7,500,000, to be designated and bear the title "City
of Lubbock, Texas, Electric Light and Power System Revenue
Bonds, Series 1991" (hereinafter referred to as the "Bonds"),
for the purpose of constructing improvements and extensions to
the electric light and power system of the City, in conformity
with the Constitution and laws of the State of Texas, including
Article 1111, et seq., Article 2368a, Revised Civil Statutes of
Texas, 1925, as amended and Chapter 252 of the Local Government
Code.
SECTION 2: Fully Registered Obligations
Authorized Denominations Stated Maturities Interest
Rates -Date. The Bonds are issuable in fully registered form
only; shall be dated May 15, 1991 (the "Bond Date") and shall
be in denominations of $5,000 or any integral multiple thereof
(within a Stated Maturity) and the Bonds shall become due and
payable on Apri 1 15 in each of the years and in principal
amounts (the •stated Maturities") and bear interest at per
annum rates in accordance with the following schedule:
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Year of Principal Interest
Stated Maturity: Amount Rate
1992 $375,000 9.20\
1993 375,000 9.20\
1994 375,000 9.20\
1995 375,000 9.20\
1996 375,000 9.20\
1997 375,000 9.20\
1998 375,000 8.75\
1999 375,000 6.20\
2000 375,000 6.20\
2001 375,000 6.30\
2002 375,000 6.40\
2003 375,000 6.50%
2004 375,000 6.50\
2005 375,000 6.25\
2006 375,000 6.25\
2007 375,000 6.25\
2008 375,000 6.25\
2009 375,000 6.25\
2010 375,000 6.25\
2011 375,000 6.25\
SECTION 3: Payment of Bonds Pay:ing Agent/
Registrar. The principal of, premium, if any, and the interest
on the Bonds shall be payable, without exchange or collection
charges to the owner or holder thereof, 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.
The Bonds shall bear interest on the unpaid principal
amounts from the Bond Date at the per annum rates shown above
in Section 2 hereof (computed on the basis of a 360-day year of
twelve 30-day months); such interest to be payable on April 15
and October 15 of each year commencing October 15, 1991.
The selection and appointment of Texas Commerce Bank
National Association, Lubbock, Texas, to serve as Paying
Agent/Registrar for the Bonds is hereby approved and confirmed,
and the City agrees and covenants to cause 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 Bonds (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 Bonds.
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The City covenants to maintain and ·provide a Paying
Agent/Registrar at all times until the Bonds are paid and
discharged and any successor Paying Agent/Registrar shall be a
bank, trust company, financial institution or other entity duly
qualified and legally authorized to serve as, and perform the
duties and services of, Paying Agent/Registrar. Upon any
change in the Paying Agent/Registrar for the Bonds, the City
agrees to promptly cause a written notice thereof to be sent to
each registered owner of the Bonds by United States Mail, first
class postage prepaid, which notice shall also give the address
of the new Paying Agent/Registrar.
Both principal of, premium, if any, and interest on
the Bonds, due and payable by reason of maturity, redemption,
or otherwise, shall be payable only to the registered owner or
holder of the Bonds (hereinafter referred to as the
"Bondholder" or "Bondholders") appearing on the Security
Register, and, to the extent permitted by law, neither the City
nor the Paying Agent/Registrar or any agent of either, shall be
affected by notice to the contrary.
Principal of and premium, if any, on the Bonds, shall
be payable only upon presentation and surrender of the Bonds to
the Paying Agent/Registrar at its principa 1 office. Interest
on the Bonds shall be paid to the Bondholder 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 shall be paid by the
Paying Agent/Registrar (i) 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 (ii) by such other method, acceptable to the Paying
Agent/Registrar, requested by the Bondholder at the
Bondholder's risk and expense. If the date for the payment of
the principal of or interest on the Bonds shall be a Saturday,
Sunday, a legal holiday, or a day on which 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 on which 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.
In the event of a non-payment 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
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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 Bondholder appearing on the Security Register
at the close of business on the last business day next
preceding the date of mailing of such notice.
SECTION 4: Redemption. (a) Optional Redemption.
The Bonds having Stated Maturities on and after April 15, 2002,
shall be subject to redemption prior to maturity, at the option
of the City, on April 15, 2001 or any date thereafter, 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), 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 date set for the redemption of
Bonds (unless a shorter notification period shall be
satisfactory to the Paying Agent/Registrar), the City shall
notify the Paying Agent/Registrar of its decision to exercise
the right to redeem Bonds, the principal amount of each Stated
Maturity to be redeemed, and the date set for the redemption
thereof. The decision of the City to exercise the right to
redeem Bonds shall be entered in the minutes of the governing
body of the City.
(c) Selection of Bonds for Redemption. If less than
all Outstanding Bonds of the same Stated Maturity are to be
redeemed on a redemption date, the Paying Agent/Registrar shall
select by lot the Bonds to be redeemed, provided that if less
than the entire principal amount of a Bond is to be redeemed,
the Paying Agent/Registrar shall treat such Bond then subject
to redemption as representing the number of Bonds Outstanding
which is obtained by dividing the principal amount of such Bond
by $5,000.
(d) Notice of Redemption. Not less than thirty (30)
days prior to a redemption date for the Bonds, 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 Bondholder of a Bond to be redeemed in whole
or in part at the address of the Bondholder appearing on the
Security Register at the close of business on the business day
next preceding the date of 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
Bondholder.
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All notices of redemption shall (i) specify the date
of redemption for the Bonds, (ii) identify the Bonds 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) the redemption price, (iv) state that the
Bonds, 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 Bonds, 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 Bondholder. If a Bond is subject by
its terms to prior redemption and has been called for
redemption and notice of redemption thereof has been duly given
or waived as herein provided, such Bond (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 Bonds (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: Execution -Registration. The Bonds
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 Bonds
may be manual or facsimile. Bonds bearing the manual or
facsimile signatures of individuals who are or were the proper
officers of the City on the Bond Date shall be deemed to be
duly executed on behalf of the City, notwithstanding that such
individuals or either of them shall cease to hold such offices
at the time of delivery of the Bonds to the initial
purchaser(s) and with respect to Bonds delivered in subsequent
exchanges and transfers, all as authorized and provided in the
Bond Procedures Act of 1981, as amended.
No Bond shall be entitled to any right or benefit
under this Ordinance, or be valid or obligatory for any
purpose, unless there appears on such Bond 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, executed by an authorized officer,
employee or representative of the Paying Agent/Registrar, and
either such certificate upon any Bond shall be conclusive
evidence, and the only evidence, that such Bond has been duly
certified or registered and delivered.
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SECTION 6: Book-Entry Onl~ Transfers and
Transactions. Notwithstanding the prov1sions contained in
Sections 3 and 5 hereof relating to the payment, and
transfer/exchange of the Bonds, 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 Bonds.
Pursuant to the Depository Agreement and the rules of
DTC, the Bonds shall be deposited with DTC who shall hold said
Bonds for its participants (the "DTC Participants"). While the
Bonds are held by DTC under the Depository Agreement, the
Holder of the Bonds 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 Bond (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 Bonds 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 Bonds, the City covenants and agrees with
the Holders of the Bonds to cause Bonds to be· printed in
definitive form and provide for the Bonds to be issued and
delivered to DTC Participants and Beneficial Owners, as the
case may be. Thereafter, the Bonds in definitive form shall be
assigned, transferred and exchanged on the Security Register
maintained by the Paying Agent/Registrar and payment of such
Bonds shall be made in accordance with the provisions of
Sections 3 and 5 hereof.
SECTION 7: Registration -Transfer -Exchange of
Bonds -Predecessor Bonds. A Security Register relating to the
registration, payment, and transfer or exchange of the Bonds
shall at all times be kept and maintained by the City at the
principal office of the Paying Agent/Registrar, and the Paying
Agent/Registrar shall obtain, record, and maintain in the
Security Register the name and address of each registered owner
of the Bonds issued under and pursuant to the provisions of
this Ordinance. Any Bond may, in accordance with its terms and
the terms hereof, be transferred or exchanged for Bonds of
other authorized denominations upon the Security Register by
the Bondholder, in person or by his duly authorized agent, upon
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surrender of such Bond to the Paying Agent/Registrar for
cancellation, accompanied by a written instrument of transfer
or request for exchange duly executed by the Bondholder or by
his duly authorized agent, in form satisfactory to the Paying
Agent/Registrar.
Upon surrender for transfer of any Bond at the
principal office of the Paying Agent/Registrar, the Paying
Agent/Registrar shall register and deliver, in the name of the
designated transferee or transferees, one or more new Bonds
executed on behalf of, and furnished by, the City of authorized
denominations and having the same Stated Maturity and of a like
aggregate principal amount as the Bond or Bonds surrendered for
transfer.
At the option of the Bondholder, Bonds may be
exchanged for other Bonds of authorized denominations and
having the same Stated Maturity, bearing the same rate of
interest and of like aggregate principal amount as the Bonds
surrendered for exchange, upon surrender of the Bonds to be
exchanged at the principal office of the Paying Agent/
Registrar. Whenever any Bonds are so surrendered for exchange,
the Paying Agent/Registrar shall register and deliver new Bonds
executed on behalf of, and furnished by, the City to the
Bondholder requesting the exchange.
All Bonds issued upon any transfer or exchange of
Bonds shall be delivered at the principal office of the Paying
Agent/Registrar, or sent by United States mail, first class
postage prepaid, to the Bondholder at his request, risk, and
expense and, upon the delivery thereof, the same shall be valid
obligations of the City, evidencing the same obligation to pay,
and entitled to the same benefits under this Ordinance, as the
Bonds surrendered in such transfer or exchange.
All transfers or exchanges of Bonds pursuant to this
Section shall be made without expense or service charge to the
Bondholder, except as otherwise herein provided, and except
that the Paying Agent/Registrar shall require payment by the
Bondholder requesting such transfer or exchang~ of any tax or
other governmental charges required to be paid with respect to
such transfer or exchange.
Bonds cancelled by reason of an exchange or transfer
pursuant to the provisions hereof are hereby defined to be
"Predecessor Bonds," evidencing all or a portion, as the case
may be, of the same obligation to pay evidenced by the new Bond
or Bonds registered and delivered in the exchange or transfer
therefor. Additionally, the term "Predecessor Bonds" shall
include any Bond registered and delivered pursuant to
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Section 32 hereof in lieu of a mutilated, lost, destroyed, or
stolen Bond which shall be deemed to evidence the same
obligation as the mutilated, lost, destroyed, or stolen Bond.
Neither the City nor the Paying Agent/Registrar shall
be required to transfer or exchange any Bond called for
redemption, in whole or in part, within 45 days of the date
fixed for redemption of such Bond; provided, however, that such
limitation of transfer shall not be applicable to an exchange
by the Bondholder of an unredeemed balance of a Bond called for
redemption in part.
SECTION 8: Initial Bond(s). The Bonds herein
authorized shall be initially issued as a single fu~ly
registered bond in the total principal amount of this ser1es
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 bonds, being one bond 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 Bond(s)") and, in
either case, the Initial Bond(s) shall be registered in the
name of the initial purchaser(s) or the designee thereof. The
Initial Bond(s) shall be the Bonds 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 Bond(s), the Paying Agent/Registrar, pursuant to
written instructions from the purchaser(s), or the designee
thereof, shall cancel the Initial Bond(s) delivered hereunder
and exchange therefor definitive Bonds of authorized
denominations, Stated Maturities, principa 1 amounts, and
bearing applicable interest rates for transfer and delivery to
the Bondholders 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: Forms. A. Forms Generally. The
Bonds, the Registration Certificate of the Comptroller of
Public Accounts of the State of Texas, the Certificate of
Registration, and the form of Assignment to be printed on each
of the Bonds, shall be substantially in the forms set forth in
this Section with such appropriate insertions, omissions,
substitutions, and other variations as are 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)
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and such legends and endorsements (including any reproduction
of an opinion of counsel) thereon as may, consistently
herewith, be established by the City or determined by the
officers executing such Bonds as evidenced by their execution
thereof. Any portion of the text of any Bonds may be set forth
on the reverse thereof, with an appropriate reference thereto
on the face of the Bond.
The definitive Bonds shall be printed, lithographed,
or engraved or produced in any other similar manner, all as
determined by the officers executing such Bonds as evidenced by
their execution thereof, but the Initial Bond(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 Bond for each Stated Maturity in the aggregate
principal amount of each Stated Maturity and (ii) for
registration of such Bonds 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
deli very of the Bonds to the initial purchasers but shall not
affect the City's obligation to pay t~e registered owners the
principal of and interest on the Bonds as the same become due.
While any Bond is registered in the name of a securities
depository or its nominee, references herein and in the Bonds
to the holder or owner of such Bond shall mean the securities
depository or its nominee and shall not mean any other person.
REGISTERED
NO.
B. Form of Definitive Bond.
United States of America
State of Texas
City of Lubbock, Texas
Electric Light and Power System Revenue Bond
Series 1991
REGISTERED $ ___ _
Bond Date: Interest Rate: Stated Maturity: CUSIP NO.
May 15,1991
Registered Owner:
Principal Amount: DOLLARS
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The City of Lubbock, Texas, (hereinafter referred to
as the "City"), a body corporate and municipal corporation in
the County of Lubbock, State of Texas, for value received,
hereby promises to pay to the Registered Owner named above, or
the registered assigns thereof, solely from the revenues
hereinafter defined, on the Stated Maturity date specified
above, the Principal Amount stated above (or so much thereof as
shall not have been paid upon prior redemption) and to pay
interest on the unpaid Principal Amount hereof from the Bond
Date at the per annum rate of interest specified above computed
on the basis of a 360-day year of twelve 30-day months; such
interest being payable on April 15 and October 15 of each year
commencing October 15, 1991. Principal of this Bond shall be
payable 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 shall be payable
to the registered owner of this Bond (or one or more
Predecessor Bonds, 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. If the
date for the payment of the principal of or interest on the
Bonds shall be a Saturday, Sunday, a legal holiday, or a day on
which 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 on which 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
Bond 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 made by the
Paying Agent/Registrar by check sent on or prior to the
appropriate date of payment by 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.
This Bond is one of the series specified in its title
issued in the aggregate principal amount of $7,500,000 (herein
referred to as the "Bonds") for the purpose of constructing
improvements and extensions to the electric light and power
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system of the City, under and in strict conformity with the
Constitution and laws of the State of Texas, including Articles
1111 et seq., and Article 2368a, Revised Civil Statutes of
Texas, 1925, as amended and Chapter 252 of the Local Government
Code and pursuant to an ordinance adopted by the City Council
of the City (herein referred to as the "Ordinance").
The Bonds maturing on and after April 15, 2002, may
be redeemed prior to their Stated Maturities, at the option of
the City, on April 15, 2001, or any date thereafter, 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) at the redemption price of par,
together with accrued interest to the date of redemption, and
upon 30 days prior written notice being given by United States
Mail, first class postage prepaid, to registered owners of the
Bonds to be redeemed, and subject to the terms and provisions
relating thereto contained in the Ordinance. If this Bond (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 Bond (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 Bond, payment of the redemption price of such
principal amount shall be made to the registered owner only
upon presentation and surrender of this Bond to the Paying
Agent/Registrar at its principal office and, there shall be
issued, without charge therefor, to the registered owner
hereof, a new Bond or Bonds of like maturity and interest rate
in any authorized denominations provided in the Ordinance for
the then unredeemed balance of the principal sum hereof. If
this Bond is called for redemption, in whole or in part, the
City or the Paying Agent/Registrar shall not be required to
transfer this Bond to an assignee of the Bondholder within 45
days of the redemption date therefor; provided, however, such
limitation on transferability shall not be applicable to an
exchange by the Bondholder of the unredeemed balance hereof in
the event of its redemption in part.
The Bonds are special obligations of the City and,
together with the outstanding and unpaid Previously Issued
Bonds (as defined in the Ordinance authorizing the issuance of
the Bonds), are payable solely from and secured by a first lien
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on and pledge of the Net Revenues (as defined in the Ordinance)
of the City's Electric Light and Power System (the "System").
The Bonds do not constitute a legal or equitable pledge,
charge, lien or encumbrance upon any property of the City or
the System, except with respect to the Net Revenues. The
holder hereof shall never have the right to demand payment of
this obligation out of any funds raised or to be raised by
taxation.
Subject to satisfying the terms and conditions
prescribed therefor, the City has reserved the right to issue
additional revenue obligations payable from and equally and
ratably secured by a parity lien on and pledge of the Net
Revenues of the System, in the same manner and to the same
extent as the Bonds.
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 of the provisions of which the
Bondholder by his acceptance hereof hereby assents, for
definitions of terms; the description of and the nature and
extent of the security for the Bonds; the properties
constituting the System; the Net Revenues pledged to the
payment of the principal of and interest on the Bonds; the
nature and extent and manner of enforcement of the lien and
pledge securing the payment of the Bonds; the terms and
conditions for the issuance of additional revenue obligations;
the terms and conditions relating to the transfer or exchange
of this Bond; the conditions upon which the Ordinance may be
amended or supplemented with or without the consent of the
Bondholders; the rights, duties, and obligations of the City
and the Paying Agent/Registrar; the terms and provisions upon
which the liens, pledges, charges and covenants made therein
may be discharged at or prior to the maturity or redemption of
this Bond, and this Bond deemed to be no longer Outstanding
thereunder; and for the other terms and provisions thereof.
Capitalized terms used herein have the same meanings assigned
in the Ordinance.
This Bond, 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 new fully registered Bonds of the same
Stated Maturity, of authorized denominations, bearing the same
rate of interest, and of the same aggregate principal amount
will be issued by the Paying Agent/Registrar to the designated
transferee or transferees.
-13-
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 surrender of this Bond 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 non-payment 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 Bondholder
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 and represented and
covenanted that the City is a duly organized and legally
existing municipal corporation under and by virtue of the
Constitution and laws of the State of Texas; that the issuance
of the Bonds 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 Bonds 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 Bonds 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 Bonds by a pledge of the Net Revenues of the
System as aforestated. In case any provision in this Bond 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
Bond and the Ordinance shall be construed in accordance with
and shall be governed by the laws of the State of Texas.
-14-
639&D
..
IN WITNESS WHEREOF, the City Council of the City has
caused this Bond to be duly executed under the official seal of
the City as of the Bond Date.
CITY OF LUBBOCK, TEXAS
Mayor
COUNTERSIGNED:
City Secretary
{City Seal)
C. *Form of Registration Certificate of Comptroller
of Public Accounts to Appear on Initial Bond(s) only.
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
OFFICE OF THE COMPTROLLER
OF PUBLIC ACCOUNTS
THE STATE OF TEXAS
()
()
()
()
REGISTER NO.
I HEREBY CERTIFY that this Bond 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.
(SEAL)
WITNESS my signature and seal of office this
Comptroller of Public Accounts
of the State of Texas
* NOTE TO PRINTER: Do not print on Definitive Bonds.
-15-
63980
..
D. Form of Certificate of Paying Agent/Registrar to
Appear on Bonds (other than a single fully registered
Initial Bond}.
This Bond has been duly issued and registered in the
name of the Registered Owner shown above under the provisions
of the within-mentioned Ordinance; the bond or bonds 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.
Registered this date:
E. Form of Assignment.
TEXAS COMMERCE BANK NATIONAL
ASSOCIATION
Lubbock, Texas
as Paying Agent/Registrar
By
Authorized Officer
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 Bond and all rights thereunder,
and hereby irrevocably constitutes and appoints ....••.••.•...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ .................. .
attorney to transfer the within Bond on the books kept for
registration thereof, with full power of substitution in the
premises.
DATED: . . . . . . . . . . . . . . . . . .
Signature guarantee:
. . . . . . . . . . . . . . . . . . . . . . . . . .
1io l 9 8 D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NOTICE: The signature on this
assignment must correspond with
the name of the registered owner
as it appears on the face of the
within Bond in every particular.
-16-
F. The Initial Bond(s) shall be in the form set forth in
paragraph B of this Section, except that the form of a single
fully registered Initial Bond shall be modified as follows:
(i) immediately under the name of the bond the
headings "Interest Rate
"Stated Maturity
be completed "As Shown Below";
" and --~,.---..,.-__,..., " shall both ~-----..,-----
(ii) Paragraph one shall read as follows:
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, hereby
promises to pay to the Registered Owner named above, or the
registered assigns thereof, solely from the revenues
hereinafter identified, on the 15th day of April in each of the
years and in principal amounts and bearing interest at per
annum rates in accordance with the following schedule:
PRINCIPAL
INSTALLMENTS
INTEREST
RATE
(Information to be inserted from schedule
in Section 2 hereof).
(or so much thereof as shall not have been prepaid prior to
maturity) and to pay interest on the unpaid principal amounts
hereof from the Bond 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 April 15
and October 15 of each year, commencing October 15, 1991.
Principal of this Bond shall be payable to the registered owner
hereof, upon presentation and surrender, at the principal
office of Texas Commerce Bank National Association, Lubbock,
Texas (the "Paying Agent/Registrar"). Interest shall be
payable to the registered owner of this Bond 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. If the date for the payment of the
principal of or interest on the Bonds shall be a Saturday,
Sunday, a legal holiday, or a day on which 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 on which banking
-17-6lt8D
L,
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 Bond 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 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.
SECTION 10: Definitions. That for all purposes of
this ordinance and in particular for clarity with respect to
the issuance of the Bonds herein authorized and the pledge and
appropriation of revenues therefor, the following definitions
are provided:
(a) The term "Additional Bonds• shall mean the
additional parity obligations the City reserves the right
to issue in accordance with the terms and conditions
prescribed in Section 21 hereof.
(b) The term "Bonds• shall mean
of Lubbock, Texas, Electric Light and
Bonds, Series 1991," dated May 15,
this ordinance.
the $7,500,000 "City
Power System Revenue
1991, authorized by
(c) The term "Bonds Similarly Secured• means the
Previously Issued Bonds, the Bonds and Additional Bonds.
(d) The term "Fiscal Year" shall mean the twelve
month accounting period used by the City in connection
with the operations of the System which may be any twelve
(12) consecutive month period established by the City.
(e) The term •Net Revenues• shall mean the gross
revenues of the System less expenses of operation and
maintenance. Such expenses of operation and maintenance
shall not include depreciation charges or funds pledged
for the Bonds Similarly Secured, but shall include all
salaries, labor, materials, repairs, and extensions
necessary to render services; provided, however, that in
determining "Net Revenues", only such repairs and
extensions as in the judgment of the City Council,
reasonably and fairly exercised, are necessary to keep the
System in operation and render adequate service to the
City and inhabitants thereof, or such as might be
necessary to meet some physical accident or condition
which otherwise would impair the security of the Bonds
Similarly Secured, shall be deducted.
-18-
63910
' .
(f) The term "Previously Issued Bonds" shall mean
the outstanding and unpaid revenue bonds, designated "CITY
OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REVENUE
BONDS" and payable from and secured by a first lien on and
pledge of the Net Revenues of the System, further
identified by issue or series as follows:
( 1) Series 1973, dated July 15, 1973, in the
original principal amount of $6,000,000;
(2) Series 1975, dated March 15, 1975, in the
original principal amount of $6,400,000;
(3) Series 1975-A, dated September 15, 1975, in
the original principal amount of $2,000,000;
(4) Series 1976, dated April 15, 1976, in the
original principal amount of $4,400,000;
(5) Series 1983, dated May 15, 1983, in the
original principal amount of $10,770,000;
(6) Series 1984, dated April 15, 1984, in the
original principal amount of $10,000,000;
(7) Series 1987, dated April 15, 1987, in the
original principal amount of $7,000,000; and
(8) Series 1988, dated May 15, 1988, in the
original principal amount of $17,000,000.
(g) The term "System" shall mean all properties,
real, personal, mixed or otherwise, now owned or hereafter
acquired by the City of Lubbock through purchase,
construction or otherwise, and used in connection with the
City's Electric Light and Power System and in anywise
pertaining thereto, whether situated within or without the
limits of the City.
SECTION 11: Pledge. That the City hereby
covenants and agrees that all of the Net Revenues derived from
the operation of the System, with the exception of those in
excess of the amounts required to establish and maintain the
special Funds created for the payment and security of the Bonds
Similarly Secured, are hereby irrevocably pledged for the
payment of the Previously Issued Bonds, the Bonds and
Additional Bonds, if issued, and the interest thereon, and it
is hereby ordained that the Previously Issued Bonds, the Bonds
and Additional Bonds, if issued, and the interest thereon,
shall constitute a first lien on the Net Revenues of the System.
-19-&l9SD
..
SECTION 12: Rates and Charges. That the City
hereby covenants and agrees with the owners of the Bonds that
rates and charges for electric power and energy afforded by the
System will be established and maintained to provide revenues
sufficient at all times to pay:
(a) all necessary and reasonable expenses of
operating and maintaining the System as set forth herein
in the definition "Net Revenues" and to recover
depreciation;
(b) the amounts required to be deposited to the Bond
Fund to pay the principal of and interest on the Bonds
Similarly Secured as the same becomes due and payable and
to accumulate and maintain the reserve amount required to
be deposited therein; and
(c) 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 13: Segregation of Revenues/Fund
Designations. All receipts, revenues and income derived from
the operation and ownership of the System shall be kept
separate from other funds of the City and deposited within
twenty-four (24) hours after collection in the "Electric Light
and Power System Fund" (created and established in connection
with the issuance of the Previously Issued Bonds), which Fund
(hereinafter referred to as the "System Fund") is hereby
reaffirmed and shall continue to be kept and maintained at an
official depository bank of the City while the Bonds remain
Outstanding. Furthermore, the "Special Electric Light and
Power System Revenue Bond Retirement and Reserve Fund"
(hereinafter referred to as the "Bond Fund"), created and
established in connection with the issuance of the Previously
Issued Bonds, is hereby reaffirmed and shall continue to be
maintained by the City while the Bonds remain Outstanding. The
Bond Fund is and shall continue to be kept and maintained at
the Ci ty• s official depository bank, and moneys deposited in
the Bond Fund shall be used for no purpose other than for the
payment, redemption and retirement of Bonds Similarly Secured.
SECTION 14: System Fund. The City hereby
reaffirms its covenant to the holders of the Previously Issued
Bonds and agrees with the owners of the Bonds that the moneys
deposited in the System Fund shall be used first for the
payment of the reasonable and proper expenses of operating and
maintaining the System, as identified in Section lO(e) hereof.
All moneys deposited in the System Fund in excess of the
amounts required to pay operating and maintenance expenses of
the System, as hereinabove provided, shall be applied and
appropriated, to the extent required and in the order of
priority prescribed, as follows:
-20-63910
'.
(i) To the payment of the amounts required to
be deposited in the Bond Fund for the payment of
principal of and interest on the Bonds Similarly
Secured as the same become due and payable; and
(ii) To the payment of the amounts, if any,
required to be deposited in the Bond Fund to
accumulate and maintain the reserve amount as
security for the payment of the principal of and
interest on the Bonds Similarly Secured.
SECTION 15: Bond Fund. (a) That, in addition to
the required monthly deposits to the Bond Fund for the payment
of principal of and interest on the Previously Issued Bonds,
the City hereby agrees and covenants to deposit to the Bond
Fund an amount equal to one hundred percentum (100\) of the
amount required to fully pay the interest on and principal of
the Bonds falling due on or before each maturity and interest
payment date, such payments to be made in substantially equal
monthly installments on or before the 1st day of each month
beginning on or before the 1st day of the month next following
the month the Bonds are delivered to the initial purchaser.
The required monthly deposits to the Bond Fund for
the payment of principal of and interest on the Bonds shall
continue to be made as hereinabove provided until such time as
(i) the total amount of deposit in the Bond Fund, including the
"Reserve Portion" deposited therein, is equal to the amount
required to fully pay and discharge all outstanding Bonds
Similarly Secured (principal and interest) or (ii) the Bonds
are no longer outstanding, i.e., the Bonds have been fully paid
as to principal and interest or all the Bonds have been
refunded.
Accrued interest and premium, if any, received from
the purchasers of the Bonds shall be deposited in the Bond
Fund, and shall be taken into consideration and reduce the
amount of the monthly deposits hereinabove required which would
otherwise be required to be deposited in the Bond Fund from the
Net Revenues of the System.
(b) In addition to the amounts to be deposited in
the Bond Fund to pay current principal and interest for the
Bonds Similarly Secured, the City reaffirms its covenant to the
holders of the Previously Issued Bonds and agrees to accumulate
and maintain in said Fund a reserve amount (the "Reserve
Portion") equal to not less than the average annual principal
and interest requirements of all outstanding Bonds Similarly
Secured (calculated and redetermined at the time of issuance of
each series of Bonds Similarly Secured).
-21-6398D
In accordance with the ordinances authorizing the
issuance of the Previously Issued Bonds, there is currently on
deposit to the credit of the Reserve Portion of the Bond Fund
the sum of $3,811,807. No additional amount is required to be
deposited to the credit of the Reserve Portion from
unencumbered available funds in order that the total amount is
not less than the average annual principal and interest
requirements of the outstanding Bonds Similarly Secured after
giving effect to the issuance of the Bonds (the •Required
Reserve Fund Amount•).
The Reserve Portion of the Bond Fund shall be made
available for and reasonably employed in meeting the
requirements of the Bond Fund if need be, and if any amount
thereof is so employed, the Reserve Portion in the Bond Fund
shall be fully restored to the Required Reserve Fund Amount as
rapidly as possible from the first available Net Revenues of
the System in the System Fund subject only to the priority of
payments hereinabove prescribed in Section 14. Any amounts in
excess of the Required Reserve Fund Amount shall be transferred
to the System Fund.
SECTION 16: Payment of Bonds. While any of the
Bonds are outstanding, the proper officers of the City are
hereby authorized to transfer or cause to be transferred to the
Paying Agent, from funds on deposit in the Bond Fund, including
the Reserve Portion, if necessary, amounts sufficient to fully
pay and discharge promptly as each installment of interest and
principal of the Bonds accrues or matures or comes due by
reason of redemption prior to maturity; such transfer of funds
to be made in such manner as will cause immediately available
funds to be deposited with the Paying Agent for the Bonds at
the close of the business day next preceding the date of
payment for the Bonds.
SECTION 17: Deficiencies in Funds. That, if in
any month the City shall, for any reason, fail to pay into the
Bond Fund the full amounts above stipulated, amounts equivalent
to such deficiencies shall be set apart and paid into said Fund
from the first available and unallocated Net Revenues of the
System in the following month or months and such payments shall
be in addition to the amounts hereinabove provided to be
otherwise paid into said Fund during such month or months.
SECTION 18: Excess Revenues. Any surplus Net
Revenues of the System remaining after all payments have been
made into the Bond Fund and after all deficiencies in making
deposits to said Fund have been remedied, may be used for any
other City purposes now or hereafter permitted by law,
including the use thereof for the retirement in advance of
-22-&l91D
maturity of the Bonds Similarly Secured by the purchase of any
of such Bonds Similarly Secured on the open market at not
exceeding the market value thereof. Nothing herein, however,
shall be construed as impairing the right of the City to pay,
in accordance with the provisions thereof, any junior lien
bonds legally issued and payable out of the Net Revenues of the
System.
SECTION 19: Security of Funds. That moneys on
deposit in the System Fund (except any amounts as may be
properly invested) shall be secured in the manner and to the
fullest extent required by the laws of the State of Texas for
the security of public funds. Moneys on deposit in the Bond
Fund shall be continuously secured by a valid pledge of direct
obligations of, or obligations unconditionally guaranteed by
the United States of America, having a par value, or market
value when less than par, exclusive of accrued interest, at all
times at least equal to the amount of money to be deposited in
said Fund. All sums deposited in said Bond Fund shall be held
as a trust fund for the benefit of the holders of the Bonds
Similarly Secured, the beneficial interest in which shall be
regarded as existing in such holders. To the extent that money
in the Reserve Portion of the Bond Fund is invested under the
provisions of Section 20 hereof, such security is not required.
SECTION 20: Investment of Reserve Portion of Bond
Fund. The custodian bank shall, when authorized by the City
Council, invest the Reserve Portion of the Bond Fund in direct
obligations of, or obligations guaranteed by the United States
of America, or invested in direct obligations of the Federal
Intermediate Credit Banks, Federal Land Banks, Federal National
Mortgage Association, Federal Home Loan Banks or Banks for
Cooperatives, and which such investment obligations must mature
or be subject to redemption at the option of the holder, within
not to exceed ten years from the date of making the
investment. Such obligations shall be held by the depository
impressed with the same trust for the benefit of the
bondholders as the Bond Fund itself, and if at any time
uninvested funds shall be insufficient to permit payment of
principal and interest maturities for the Bonds Similarly
Secured, the said custodian bank shall sell on the open market
such amount of the securities as is required to pay said Bonds
Similarly Secured and interest when due and shall give not ice
thereof to the City. All moneys resulting from maturity of
principal and interest of the securities shall be reinvested or
accumulated in the Reserve Portion of the Bond Fund and
considered a part thereof and used for and only for the
purposes hereinabove provided with respect to said Reserve
Portion, provided that when the full amount required to be
accumulated in the Reserve Portion of the Bond Fund (being the
-23-ri39&D
' .
amounts required to be accumulated by the ordinances
authorizing the Bonds Similarly Secured) is accumulated, any
interest increment may be used in the Bond Fund to reduce the
payments that would otherwise be required to pay the current
debt service requirements on Bonds Similarly Secured.
Amounts on deposit in any of the Funds herein
referred to and allocable to the Bonds or Additional Bonds, if
issued, shall be invested as provided in the Public Funds
Investment Act of 1987 and in this ordinance to the extent the
investment provisions of this ordinance are consistent with
such Act.
SECTION 21: Issuance of Additional Parity Bonds.
That, in addition to the right to issue bonds of inferior lien
as authorized by the laws of the State of Texas, the City
hereby reserves the right to issue Additional Bonds which, when
duly authorized and issued in compliance with the terms and
conditions hereinafter appearing, shall be on a parity with the
Previously Issued Bonds and the Bonds herein authorized,
payable from and equally and ratably secured by a first lien on
and pledge of the Net Revenues of the System. The Additional
Bonds may be issued in one or more installments, provided,
however, that none shall be issued unless and until the
following conditions have been met:
(a) That the Mayor and City Treasurer have certified
that the City is not then in default as to any covenant,
condition or obligation prescribed by any ordinance
authorizing the issuance of Bonds Similarly Secured then
outstanding, including showings that all interest, sinking
and reserve funds then provided for have been fully
maintained in accordance with the provisions of said
ordinances;
(b) That the applicable laws of the State of Texas
in force at the time provide permission and authority for
the issuance of such bonds and have been fully complied
with;
6391D
(c) That the City has secured from an independent
Certified Public Accountant his written report
demonstrating that the Net Revenues of the System were,
during the last completed Fiscal Year, or during any
consecutive twelve (12) months period of the last fifteen
(15) consecutive months prior to the month of adoption of
the ordinance authorizing the Additional Bonds, equal to
at least one and one-half (1-1/2) times the average annual
principal and interest requirements of all the bonds which
will be secured by a first lien on and pledge of the Net
-24-
..
Revenues of the System and which will be outstanding upon
the issuance of the Additional Bonds; and further
demonstrating that for the same period as is employed in
arriving at the aforementioned test said Net Revenues were
equal to at least one and one-fifth (1-1/5) times the
maximum annual principal and interest requirements of all
such bonds as will be outstanding upon the issuance of the
Additional Bonds;
(d) That the Additional Bonds are made to mature on
April 15 or October 15, or both, in each of the years in
which they are provided to mature;
(e) The Reserve Portion of the Bond Fund shall be
accumulated and supplemented as necessary to maintain a
sum which shall be not less than the average annual
principal and interest requirements of all bonds secured
by a first lien on and pledge of the Net Revenues of the
System which will be outstanding upon the issuance of any
series of Additional Bonds. Accordingly, each ordinance
authorizing the issuance of any series of Additional Bonds
shall provide for any required increase in the Reserve
Portion, and if supplementation is necessary to meet all
conditions of said Reserve Portion, said ordinances shall
make provision that same be supplemented by the required
amounts in equal monthly installments over a period of not
to exceed sixty (60) calendar months from the dating of
such Additional Bonds.
When thus issued, such Additional Bonds may be
secured by a pledge of the Net Revenues of the System on a
parity in all things with the pledge securing the issuance of
the Bonds and the Previously Issued Bonds.
SECTION 22: Maintenance and Operation -Insurance.
That the City hereby covenants and agrees to maintain the
System in good condition and operate the same in an efficient
manner and at reasonable cost. The City further agrees to
maintain insurance for the benefit of the registered owners of
the Bonds of the kinds and in the amounts which are usually
carried by private companies operating similar properties, and
that during such time all policies of insurance shall be
maintained in force and kept current as to premium payments.
All moneys received from losses under such insurance policies
other than public liability policies are hereby pledged as
security for the Bonds Similarly Secured until and unless the
proceeds thereof are paid out in making good the loss or damage
in respect of which such proceeds are received, either by
replacing the property destroyed or repairing the property
damaged, and adequate provisions are made within ninety (90)
days after the date of the loss for making good such loss or
damage. The premiums for all insurance policies required under
the provisions of this Section shall be considered as
maintenance and operation expenses of the System.
-25-,3910
SECTION 23: Records Accounts Accounting
Reports. That the City hereby covenants and agrees so long as
any of the Bonds or any interest thereon remain outstanding and
unpaid, it will keep and maintain a proper and complete system
of records and accounts pertaining to the operation of the
System separate and apart from all other records and accounts
of the City in accordance with generally accepted accounting
principles prescribed for municipal corporations, and complete
and correct entries shall be made of all transactions relating
to said System, as provided by applicable law. The registered
owner of any Bonds, or any duly authorized agent or agents of
such owner, shall have the right at all reasonable times to
inspect all such records, accounts and data relating thereto
and to inspect the System and all properties comprising same.
The City further agrees that as soon as possible 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. Each such audit, in addition to whatever
other matters may be thought proper by the Accountant, shall
particularly include the following:
(a) A detailed statement of the income and
expenditures of the System for such Fiscal Year;
(b) A balance sheet as of the end of such Fiscal
Year;
(c) The Accountant • s comments regarding the manner
in which the City has compiled with the covenants and
requirements of this ordinance and his recommendations for
any changes or improvements in the operation, records and
accounts of the System;
(d) A list of the insurance policies in force at the
end of the Fiscal Year on the System properties, setting
out as to each policy the amount thereof, the risk
covered, the name of the insurer, and the policy's
expiration date;
(e) A list of the securities which have been on
deposit as security for the money in the Bond Fund
throughout the Fiscal Year and a list of the securities,
if any, in which the Reserve Portion of the Bond Fund has
been invested.
(f) The total number of metered and unmetered
customers, if any, connected with the System at the end of
the Fiscal Year.
-26-
63980
Expenses incurred in making the audits above referred
to are to be regarded as maintenance and operating expenses of
the System and paid as such. Copies of the aforesaid annual
audit shall be immediately furnished to the Executive Director
of the Municipal Advisory Council of Texas at his office in
Austin, Texas, and, upon written request, to the original
purchasers and any subsequent registered owner of the Bonds.
SECTION 24: Remedies in Event of Default. That,
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
payments to be made to the Bond Fund as required by this
ordinance or (b) defaults in the observance or performance of
any other of the covenants, conditions or obligations set forth
in this ordinance, the registered owner of any of the Bonds
shall be entitled to a writ of mandamus issued by a court of
proper jurisdiction compelling and requiring the City Council
and other officers of the City to observe and perform any
covenant, condition or obligation prescribed in this ordinance.
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
acquiescence therein, and every such right or 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
specifications of such remedies shall not be deemed to be
exclusive.
SECTION 25: Special Covenants. The City hereby
further covenants as follows:
(a) That it has the lawful power to pledge the
revenues supporting this issue of Bonds and has
lawfully exercised said power under the Constitution
and laws of the State of Texas, including Article
1111 et seq., Article 2368a, Revised Ci vi 1 Statutes
of Texas, 1925, as amended, and Chapter 252 of the
Local Government Code; that the Previously Issued
Bonds, the Bonds and the Additional Bonds, when
issued, shall be ratably secured under said pledge of
income in such manner that one bond sha 11 have no
preference over any other bond of said issues.
(b) That, other than for the payment of the
Previously Issued Bonds and the Bonds, the Net
Revenues of the System have not been pledged to the
payment of any debt or obligation of the City or of
the System.
-27-
(c) That, so long as any of the Bonds or any
interest thereon remain outstanding, the City will
not sell, lease or encumber the System or any
substantial part thereof; provided, however, this
covenant shall not be construed to prohibit the sale
of such machinery, or other properties or equipment
which has become obsolete or otherwise unsuited to
the efficient operation of the System when other
property of equal value has been substituted
therefore, and, also, with the exception of the
Additional Bonds expressly permitted by this
ordinance to be issued, it will not encumber the Net
Revenues of the System unless such encumbrance is
made junior and subordinate to all of the provisions
of this ordinance.
{d) The City wi 11 cause to be rendered monthly
to each customer receiving electric services a
statement therefor and will not accept payment of
less than all of any statement so rendered, using its
power under existing ordinances and under all such
ordinances to become effective in the future to
enforce payment, to withhold service from such
delinquent customers and to enforce and authorize
reconnection charges.
(e) That the City will faithfully and
punctually perform all duties with respect to the
System required by the Constitution and laws of the
State of Texas, including the making and collecting
of reasonable and sufficient rates for services
supplied by the System, and the segregation and
application of the revenues of the System as required
by the provisions of this ordinance.
(f) No free service shall be provided by the
System and to the extent the City or its departments
or agencies utilize the services provided by the
System, payment shall be made therefor at rates
charged to others for similar service.
SECTION 26: Special Obligations. The Bonds are
special obligations of the City payable from the pledged Net
Revenues of the System and the registered owners thereof shall
never have the right to demand payment thereof out of funds
raised or to be raised by taxation.
SECTION 27: Bonds are Negotiable Instruments.
Each of the Bonds herein authorized shall be deemed and
construed to be a "Security", and as such a negotiable
instrument, within the meaning of Article 8 of the Uniform
Commercial Code.
-28-
'3980
•.
SECTION 28: Ordinance to Constitute Contract. The
provisions of the Ordinance shall constitute a contract between
the City and the registered owner or owners from time to time
of the Bonds and no change, variation or alteration of any kind
of the provisions of the Ordinance may be made, except as
permitted in this Section. The City may, without the consent
of or notice to any registered owner or owners, from time to
time and at any time, amend this Ordinance in any manner not
detrimental to the interests of the registered owner or owners
holding a majority in aggregate principal amount of the Bonds
then Outstanding affected. thereby, amend, add to, or rescind
any of the provisions of this Ordinance; provided that, without
the consent of all registered owners of Outstanding Bonds, 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 Bonds, reduce the principal amount thereof,
the redemption price therefor, or the rate of interest thereon,
or in any other way modify the terms of payment of the
principa 1 of, premium, if any, or interest on the Bonds, (2)
give any preference to any Bond over any other Bond, or (3)
reduce the aggregate principal amount of Bonds required for
consent to any such amendment, addition or rescission.
The terms "Outstanding" and "outstanding" when used
in this Ordinance with respect to Bonds means, as of the date
of determination, all Bonds theretofore issued and delivered
under this Ordinance, except:
(1) those Bonds theretofore cancelled
Paying Agent/Registrar or delivered to the
Agent/Registrar for cancellation;
by the
Paying
(2) those Bonds for which payment has been duly
provided by the City of the irrevocable deposit with
the Paying Agent/Registrar of money 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 Bonds 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;
(3) those Bonds that have been
destroyed, lost or stolen and replacement
been registered and delivered in lieu
provided in Section 32 hereof; and
mutilated,
Bonds have
thereof as
(4) those Bonds for which the payment of the
principal of, premium, if any, and interest on which
has been duly provided for by the City in accordance
with law.
-29-
SECTION 29: Covenants to Maintain Tax-Exempt Status.
(a) Definitions. When used in this Section, the
following terms shall have the following meanings:
"Code" means the Internal Revenue Code
amended by all legislation, if any, enacted
the date of delivery of the Bonds to
purchaser(s).
of 1986, as
on or before
the initial
"Computation Date" has the meaning stated in Treas.
Reg. § 1.148-8T(b)(l).
"Gross Proceeds" has
Reg. § 1.148-8T(d).
"Investment" has the
Reg. § 1.148-8T(e).
"Nonpurpose Investment"
Gross Proceeds of the Bonds
acquired to carry out the
Bonds.
the meaning stated in Treas.
meaning stated in Treas.
means any Investment in which
are invested and which is not
governmental purpose of the
"Rebatable Arbitrage" has the meaning stated in
Treas. Reg. § 1.148-2T.
"Yield of"
(1) any Investment shall be computed in
accordance with Treas. Reg. §1.148-2T, and
( 2) the Bonds has the meaning stated in Treas.
Reg. § 1.148-JT.
(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 Bond to become includable in the gross income, as defined
in section 61 of the Code, of the owner thereof for federal
income tax purposes. 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 exemption from
federal income tax of the interest on any Bond, the City shall
comply with each of the specific covenants in this Section.
-30-
·.
(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 Bonds,
(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 Bonds and not use or permit the use of
such Gross Proceeds or any property acquired, constructed,
or improved with such Gross Proceeds (including all
contractual arrangements with terms different than those
applicable to the general public) in any activity carried
on by any person or entity other than a state or loca 1
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
Bonds 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 Bonds
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 transact ion 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.
(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 Bonds, directly or indirectly
invest Gross Proceeds of the Bonds 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 Bonds.
-31-63910
(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 Bonds 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 Bonds 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,
(1) The City shall account for all Gross Proceeds of
the Bonds (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 Bonds until six years after the final Computation
Date; The City may, however, to the extent permitted by
section 148(f) of the Code and the regulations thereunder,
commingle Gross Proceeds of the Bonds 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. § 1.148-2T and rulings thereunder, the
Rebatable Arbitrage with respect to the Bonds. The City
shall maintain such calculations with the official
transcript of the proceedings relating to the issuance of
the Bonds until six years after the final Computation
Date.
(3) As additional consideration for the purchase of
the Bonds 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
-32-
63<JID
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-lT through 1.148-9T 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. § 1.148-1T(c)(2) and any penalty under Treas.
Reg. § 1.148-1T(c)(3)(ii)(B).
SECTION 30: Final Deposits; Governmental Obliga-
tions. (a) All or any of the Bonds shall be deemed to be paid,
retired and no longer outstanding within the meaning of this
Ordinance when payment of the principal of, and redemption
premium, if any, on such Bonds, plus interest thereon to the
due date thereof (whether such due date be by reason of
maturity, upon redemption, or other otherwise) either (i) shall
have been made or caused to be made in accordance with the
terms thereof (including the giving of any required notice of
redemption), or (ii) shall have been provided by irrevocably
depositing with, or making available to, the Paying Agent, in
trust and irrevocably set aside exclusively for such payment,
( 1) money sufficient to make such payment or (2) Government
Obligations, certified by an independent public accounting firm
of national reputation, to mature as to principal and interest
in such amounts and at such times as will insure the
availability, without reinvestment, of sufficient money to make
such payment, and all necessary and proper fees, compensation
and expenses of the Paying Agent pertaining to the Bonds with
respect to which such deposit is made shall have been paid or
the payment thereof provided to the satisfaction of the Paying
Agent. At such time as a Bond shall be deemed to be paid
hereunder, as aforesaid, it shall no longer be secured by or
entitled to the benefit of this Ordinance or a lien on and
pledge of the Net Revenues of the System, and shall be entitled
to payment solely from such money or Government Obligations.
The term "Government Obligations," as used in this
Section, shall mean direct obligations of the United States of
America, including obligations the principal of and interest on
-33-6l'JID
which are unconditionally guaranteed by the United States of
America, which may be United States Treasury obligations such
as its State and Local Government Series, and which may be in
book-entry form.
(b) That any moneys so deposited with the Paying
Agent may at the direction of the City also be invested in
Government Obligations, maturing in the amounts and times as
hereinbefore set forth, and all income from all Government
Obligations in the hands of the Paying Agent pursuant to this
Section which is not required for the payment of the Bonds, the
redemption premium, if any, and interest thereon, with respect
to which such money has been so deposited, shall be turned over
to the City or deposited as directed by the City.
(c) That the City covenants that no deposit will be
made or accepted under clause (a) (ii) of this Section and no
use made of any such deposit which would cause the Bonds to be
treated as arbitrage bonds within the meaning of section 148 of
the Internal Revenue Code of 1986, as amended.
(d) That notwithstanding any other prov1s1ons of
this Ordinance, all money or Government Obligations set aside
and held in trust pursuant to the provisions of this Section
for the payment of the Bonds, the redemption premium, if any,
and interest thereon, shall be applied to and used for the
payment thereof, the redemption premium, if any, and interest
thereon and the income on such money or Government Obligations
shall not be considered to be income or revenues of the System.
(e) The provisions of this Section and this
Ordinance are subject to the applicable unclaimed property laws
of the State of Texas.
SECTION 31: Notices to Holders-Waiver. Wherever
this Ordinance provides for notice to Bondholders 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 Bondholder as it appears in the Security Register.
In any case where notice to Bondholders is given by
mail, neither the failure to mail such notice to any particular
Bondholders, nor any defect in any notice so mailed, shall
affect the sufficiency of such notice with respect to all other
Bonds. Where this Ordinance provides for notice in any manner,
such notice may be waived in writing by the Bondholder 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 Bond-
-34-63980
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 32: Damaged, Mutilated, Lost, Stolen, or
Destroyed Bonds. (a) Replacement Bonds. In the event any
outstanding Bond is damaged, mutilated, lost, stolen, or
destroyed, the Paying Agent/Registrar shall cause to be
printed, executed and delivered, a new bond of the same
principal amount, Stated Maturity, and interest rate, as the
damaged, mutilated, lost, stolen or destroyed Bond, in
replacement for such Bond in the manner hereinafter provided.
(b) Application for Replacement Bonds. Application
for replacement of damaged, mutilated, lost, stolen or
destroyed Bonds shall be made to the Paying Agent/Registrar.
In every case of loss, theft, or destruction of a Bond, the
applicant for a replacement bond shall furnish to the City and
to the Paying Agent/Registrar such security or indemnity as may
be required by them to save each of them harmless from any loss
or damage with respect thereto. Also, in every case of loss,
theft, or destruction of a Bond, the applicant shall furnish to
the City and to the Paying Agent/Registrar evidence to their
satisfaction of the loss, theft, or destruction of such Bond,
as the case may be. In every cause of damage or mutilation of
a Bond, the applicant shall surrender to the Paying
Agent/Registrar for cancellation the Bond so damaged or
mutilated.
(c) No Default Occurred. Notwithstanding the
foregoing provisions of this Section, in the event any such
Bond shall have matured, and no default has occurred which is
then continuing in the payment of the principal of or interest
on the Bond, the City may authorize the payment of the same
(without surrender thereof except in the case of a damaged or
mutilated Bond) instead of issuing replacement bond, provided
security or indemnity is furnished as above provided in this
Section.
(d) Charge for Issuing Replacement Bonds. Prior to
the issuance of any replacement bond, the Paying Agent/
Registrar shall charge the registered owner of such Bond with
all legal, printing and other expenses in connection
therewith. Every replacement bond issued pursuant to the
provisions of this Section by virtue of the fact that any Bond
is lost, stolen or destroyed shall constitute a contractual
obligation of the City whether or not the lost, stolen, or
destroyed Bond shall be found at any time, or be enforceable by
anyone, and shall be entitled to all the benefits of this
Ordinance equally and proportionately with any and all other
Bonds duly issued under this Ordinance.
-35-63910
''
(e) Authority for Issuing Replacement Bonds. In
accordance with Section 6 of Vernon's Ann. Tex. Civ. St.
Article 717k-6, this Section of the Ordinance shall constitute
authority for the issuance of any such replacement bond without
necessity of further action by the governing body of the City
or any other body or person, and the duty of the replacement of
such bonds is hereby authorized and imposed upon the Paying
Agent/Registrar, and the Paying Agent/Registrar shall
authenticate and deliver such bonds in the form and manner and
with the effect, as provided in the Ordinance for Bonds issued
in conversion and exchange for other Bonds.
SECTION 33: Cancellation. All Bonds surrendered
for payment, redemption, transfer, exchange, or replacement, 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 Bonds previously
certified or registered and delivered which the City may have
acquired in any manner whatsoever, and all Bonds so delivered
shall be promptly cancelled by the Paying Agent/Registrar. All
cancelled Bonds held by the Paying Agent/Registrar shall be
disposed of as directed by the City.
SECTION 34: Confirmation of Sale. That sale of
the Bonds to Prudential Securities Incorporated at the price of
par, accrued interest is hereby confirmed. Delivery of the
Bonds shall be made to said purchasers as soon as may be
practical after the adoption of this Ordinance, upon payment
therefor in accordance with the notice of sale.
SECTION 35: Approval and Registration of Bonds. The
Mayor of said City is hereby authorized to have control of the
Bonds, including the Initial Bond(s), and all necessary records
and proceedings pertaining to said Bonds pending their delivery
and their investigation, examination and approval by the
Attorney General of the State of Texas. Upon registration of
the Initial Bond(s), said Comptroller of Public Accounts (or a
deputy designated in writing to act for said Comptroller) shall
manually sign the Comptroller's Registration Certificate
prescribed herein to be printed and endorsed on the Initial
Bond(s), and the seal of said Comptroller shall be impressed,
or printed, or lithographed on said Initial Bond(s).
-36-1!.3910
In addition, the Mayor, City Secretary, City Manager,
Assistant City Manager for Financial Services, and 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 Bonds, including a
certification as to facts 1 estimates I circumstances and
reasonable expectations pertaining to the use and expenditure
and investment of the proceeds of the Bonds as may be necessary
for the approval of the Attorney General, registration by the
Comptroller of Public Accounts and delivery of the Bonds 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 Bond(s)
to the purchasers.
SECTION 36: Approval of Official Statement. That
the form and substance of the Official Statement dated April 1,
1991, and any addenda, supplement or amendment thereto (the
"Official Statement"), is hereby in all respects approved and
adopted by the City Council and the Mayor and the City
Secretary are hereby authorized and directed to execute the
same and deliver appropriate numbers of executed copies thereof
to the purchasers of the Bonds. Said Official Statement as
thus approved, executed and delivered, with such appropriate
variations as shall be approved by the City Manager and the
purchasers of the Bonds, may be used by said purchasers in the
public offering and sale thereof. The City Secretary is hereby
authorized and directed to include and maintain a copy of the
Official Statement and any addenda, supplement or amendment
thereto thus approved among the permanent records of this
meeting.
SECTION 37: Legal Opinion. That the purchasers•
obligation to accept delivery of the Bonds herein authorized is
subject to their being furnished a final legal op1n1on of
Messrs. Fulbright & Jaworksi, Attorneys, approving such Bonds
as to their validity, said opinion to be dated and delivered as
of the date of delivery and payment of such Bonds. Printing of
a true and correct copy of said opinion on the reverse side of
each of the Bonds, with an appropriate certificate pertaining
thereto, is hereby approved and authorized.
SECTION 38: CUSIP Numbers. CUSIP numbers may be
printed on the Bonds. It is expressly provided, however, that
the presence or absence of CUSIP numbers on the Bonds shall be
of no significance or effect as regards the legality thereof
and neither the City nor the attorneys approving said Bonds as
to legality are to be held responsible for CUSIP numbers
incorrectly printed on the Bonds.
-37-
63910
..
SECTION 39: 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 Bondholders, 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 Bondholders.
SECTION 40: 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 41: 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 42: Severability. If any prov1s1on 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 this governing body hereby declares
that this Ordinance would have been enacted without such
invalid provision.
SECTION 43: 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.
-38-,39&0
SECTION 44: Effective Date. This ordinance shall
take effect and be in force immediately, from and after its
passage on second and final reading and IT IS SO ORDAINED.
PASSED AND APPROVED ON FIRST READING this the 25th day of
April, 1991.
PASSED AND APPROVED ON SECOND AND FINAL READING, this 26th
day of April, 1991.
CITY OF LUBBOCK, TEXAS
ATTEST:
Q~
(City Seal)
-39-
6 Z 3 S E
RECORD OF PROCEEDINGS
RELATING TO
$7,500,000
ELECTRIC LIGHT AND POWER
SYSTEM REVENUE BONDS
SERIES 1991
DATED MAY 15, 1991
Issued by
CITY OF LUBBOCK
COUNTY OF LUBBOCK
STATE OF TEXAS
Fulbright & Jaworski
2200 Ross Avenue, Suite 2800
Dallas, Texas 75201
L
TELEPHONE: 21<4/655·6000
F"ACSIMILE: 214/8S5·8200
FULBRIGHT & JAWORSKI
2200 Ross AVENUE
SUITE 2BOO
DALLAS, TEXAS 7!5201
MAY 2 3 1991
HOUSTON
WASHINGTON, D. C.
AUSTIN
SAN ANTONIO
DALLAS NEW YORK
LOS ANGELES
LONDON
ZURICH
HONG KONG
IN REGARD to the authorization and issuance of the
"City of Lubbock, Texas, Electric Light and Power System
Revenue Bonds, Series 1991" (the "Bonds"), dated May 15, 1991,
(the "Bond Date"), in the principal amount of $7,500,000, we
have examined into the legality and validity of the issuance
thereof by the City of Lubbock, Texas (the "City"), which Bonds
are issuable in fully registered form only, in denominations of
$5,000 or any integral multiple thereof (within a maturity),
have stated maturities of April 15, 1992 through April 15,
2011, unless redeemed prior to maturity in accordance with the
terms stated on the face of the Bonds, and bear interest on the
unpaid principal amount from the Bond Date at the rates per
annum stated in the ordinance authorizing the issuance of the
Bonds (the "Ordinance"); such interest being payable on
October 15 and Apri 1 15 in each year, commencing October 15,
1991, to the registered owners shown on the registration books
of the Paying Agent/Registrar on the Record Date (stated on the
face of the Bonds).
WE HAVE SERVED AS BOND COUNSEL for the City solely to
pass upon the legality and validity of the issuance of the
Bonds under the Constitution and laws of the State of Texas,
and with respect to the exemption of the interest on the Bonds
from federal income taxes and none other. We have not been
requested to investigate or verify, and have not independently
investigated or verified, any records, data or other material
relating to the financial condition or capabilities of the
City. Our examinations into the legality and validity of the
Bonds · included a review of the applicable and pertinent
provisions of the Constitution and laws of the State of Texas,
a transcript of certified proceedings of the City relating to
the authorization and issuance of the Bonds, including the
Ordinance, customary certifications and opinions of officials
of the City and other pertinent showings, and an examination of
the Bond executed and delivered initially by the City, which we
found to be in due form and properly executed.
6399D
-
Page 2
RE:
,·'
of Legal Opinion of Fulbright & Jaworski
$7,500,000 "City of Ltibbbck, Texas, Electric Light and
Power System Revenue Bonds, Series 1991", dated
May 15, 1991
BASED ON OUR EXAMINATIONS, IT IS OUR OPINION that the
Bonds have been duly authorized by the City in compliance with
the Constitution and laws of the State of Texas now in force,
and the Bonds issued in compliance with the provisions of the
Ordinance are valid and legally binding special obligations of
the City, in accordance with the terms thereof, and, together
with the outstanding Previously Issued Bonds (identified and
defined in the Ordinance), are payable solely from and equally
and ratably secured by a lien on and pledge of the Net Revenues
(as defined in the Ordinance) of the City's Electric Light and
Power System, 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 general principles of equity. The Ordinance
provides certain conditions under which the City may issue
additional obligations payable from the same source and secured
in the same manner as the Bonds.
IT IS FURTHER OUR OPINION THAT, assuming continuing
compliance after the date hereof by the City with the
provisions of the Ordinance and in reliance upon
representations and certifications of the City made in a
certificate of even date herewith pertaining to the use,
expenditure, and investment of the proceeds of the Bonds,
interest on the Bonds for federal income tax purposes (1) will
be excludable from the gross income, as defined in section 61
of the Internal Revenue Code of 1986, as amended to the date
hereof, of the owners thereof pursuant to section 103 of such
Code, existing regulations, published rulings, and court
decisions thereunder, and (2) will not be included in computing
the alternative m1n1mum taxable income of individuals or,
except as hereinafter described, corporations. Interest on all
tax-exempt obligations, such as the Bonds, owned by a
corporation will be included in such corporation's adjusted net
book income, 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.
63990
..
,...,
Page 3
RE:
of Legal Opinion of Full;>,right . & Jaworski
$7,500,000 •city tif ttibtl6cR, Texas, Electric Light and
Power System Revenue Bonds, Series 1991•, dated
May 15, 1991
WE EXPRESS NO OPINION with respect to any other
federal, state, or local tax consequences under present law or
any proposed legislation resulting from the receipt or accrual
of interest on, or the acquisition or disposition of, the
Bonds. Ownership . of tax-exempt obligations such as the Bonds
may result in collateral federal tax consequences to, among
others, financial institutions, life insurance companies,
·property and casualty insurance companies, certain foreign
corporations doing business in the United States, S
corporations with subchapter C earnings and profits, individual
recipients of Social Security or Railroad Retirement Benefits,
and taxpayers who may be deemed to have incurred or continued
indebtedness to purchase or carry, or who have paid or incurred
certain expenses allocable to, tax-exempt obligations.
~.y~·
63990
:
-
. .
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
AFFIDAVIT OF PUBLICATION
§
§
§
BEFORE ME, the undersigned authority, on this day
personally appeared T.J. Aufill , who, after being
by me duly sworn, deposes and says that (s)he is the
Account Manal:!er 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 SALE," hereto attached, was published in said paper
on the following dates:
MARCH 24, 1991;
MARCH 31, 1991;
APRIL 7, 1991;
APRIL 14, 1991;
APRIL 21, 1991;
the date of the first publication of said notice being at least
thirty (30) days prior to the date of the public sale for the
obligations referred to therein.
of
SWORN TO AND SUaSCRIBED BEFORE ME, this the 22 APril 1 1991 •
NOTIC::S OF SAL& ;
CITY OF LUBBOCK. TEXAS
Tl!e City COIIIICII of llle tJty tf
.Lubbock, Texas, will re~tlve
seete<l bids el lhe City Council
Chambers. Munlct~al ComJ>Iex, 1625 nth Street, LubboCk. Te~as, until t1 :00 A.M .• Central C.vllght Time. Al>rll 25. 1991, for the tollow• tng described I!On!b: ·
(Notary Seal) 17 .silo. GOD CIIY of LullboCII. feJCu EleCtriC Llthl end Power svstern RtVIIIUe Gonda, Series lf91 .
Dated MIIY 1$, 19911 lll'lntiPal clue A~>rll 15, of eaCh nar es followl:
U7s.ooo ••c:h vur 1m tbrouall 20th lnter-.t payable OCtober 15<
1991, and each Aorlll5 and otfobeo' IS thel'!lafter. Tha CIIY teserves the rtvht, at lis. option, lo rtdeem lilonds maturing on and after Al>rll
15, 2001. on A~>rll 15, 2001, Ill" llftV
date lhereafltr, at lha par value , thereof PIUS accrued Interest to lhe 1 date flxtd ~ payment.
Purfher InfOrmation mav. be I
' obtained ti'Qm the DtviSIOI1 of Fl·
llllflCI, CIIY of LUbboCk. P .0. 80IC
2000. Lubllock. Texas 79~571 or
' from Firat $0uthw-.t Comoanv, 500 First CIIY Canter, UOO Pacillc· Avenue, Dallas, Texat 15:101, FI-nancial Consultant. to the City. ·. ·
Ranette Bovd ,
' City SecretarY ,
CIIV Of LubboCk. TtKIS R·761 · ..
day
!'
-
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 14th day of March, 1991, 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:
B. C. MCMINN
T. J. PATTERSON
BILL MALOY
GARY D. PHILLIPS
JOAN BAKER
MAGGIE TREJO
M.J. ADERTON
all of said persons were present at
following: M. J. Aderton
MAYOR
MAYOR PRO TEM
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
said meeting, except the
business considered at said meeting, the
entitled:
• Among other
attached resolution
"A RESOLUTION by the City Council of the City of
Lubbock, Texas, approving and authorizing
the giving of notice of intention to issue
revenue bonds."
was introduced and submitted to the Council for passage and
adoption. After presentation and due consideration of the
resolutiQn, and upon a motion made by Councilmember
T. J. Patterson and seconded by Counci lmember Bill Maloy
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.
-1-
-
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 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 14th day
of March, 1991.
~·
City of Lubbock, Texas
(City Sea;!)
-2-
5940£
..
I·
-
,...
Resolution No.
March 14, 1991
Item #17
A RESOLUTION by the City Council of the City of
Lubbock, Texas, approving and authorizing
the giving of notice of intention to issue
revenue bonds.
WHEREAS, the City Council of the City of Lubbock,
Texas, has determined that revenue bonds should be issued in
accordance with the provisions of Articles 1111 et seq. and
2368a, V.A.T.C.S., and Chapter 252 of the Local Government
Code, to finance the cost of improving and extending the
electric light and power system of the City; and
WHEREAS, prior to the issuance of said revenue bonds,
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 1: That ·the City Secretary is hereby
authorized and directed to cause notice to be given of this
Council's intention to meet at 11:00 o'clock A.M. on the 25th
day of April, 1991, during such meeting, consider the passage
and adoption of an ordinance authorizing issuance of revenue
bonds in an amount not to exceed $7,500,000 for the purpose of
making improvements and extensions to the electric light and
power system of the City. 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 published and
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
revenue bonds.
PASSED AND APPROVED, this the 14th day of March, 1991.
~e.~,~
Mayor, City of Lubbock, Texas
ATTEST:
~GaiL Cit secretary
(SEAL)
S941E
-
,..
NOTICE OF INTENTION TO ISSUE
CITY OF LUBBOCK, TEXAS, REVENUE BONDS
EXHIBIT A··,
NOTICE IS HEREBY GIVEN that the City Counci 1 of the
City of Lubbock, Texas, will convene at its regular meeting
place in the City Hall of Lubbock, Texas at 11:00 o'clock A.M.
on the 25th day of April, 1991, and during such meeting, the
Council will consider the passage of an ordinance authorizing
the issuance of revenue bonds in a principal amount not to
exceed SEVEN MILLION FIVE HUNDRED THOUSAND DOLLARS ($7,500,000)
for the purpose of making improvments and extensions to the
electric light and power system of the City. Such bonds shall
mature not later than December 31, 2011, shall bear interest at
such rate or rates (not to exceed 15% per annum) as determined
by the City Council. Such bonds shall be payable solely from
and equally secured by a lien on and pledge of the net revenues
of the City's electric light and power system.
The holder of such bonds shall never have the right to
demand payment out of any funds raised or to be raised by
taxation.
This Notice is issued pursuant to authority and
direction of the City Council of the City of Lubbock, Texas,
and in accordance with the provisions of Article 2368a,
V.A.T.C.S. and Chapter 252 of the Local Government Code.
S94ZE
City s retary,
Lubbock, Texas
-
-
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
AFFIDAVIT OF PUBLICATION
§
§
§
BEFORE ME, the undersigned authority, on this day
personally appeared T, J. Auf i 1 1 , who, after being
by me duly sworn, deposes and says that (s)he is the
Account Manae:er 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, REVENUE
BONDS," hereto attached, was published in said paper on the
following dates:
March 24, 1991; and
March 31, 1991
the date of the first publication of said notice being
fifteen (15) days prior to the date stated therein
passage of the ordinance authorizing the issuance
revenue bonds.
at least
for the
of the
SWORN TO BEFORE ME, this the .~~:8 __ day
(Notary Seal)
5944£
.;,
-
,.... '
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 25th day of April, 1991, 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:
B. C. MCMINN MAYOR
T. J. PATTERSON
BILL MALOY
GARY D. PHILLIPS
JOAN BAKER
MAGGIE TREJO
M.J. ADERTON
MAYOR PRO TEM
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
all of said persoNs were present at said meeting, except the
following: oNf.....
business considered at said
entitled:
Among other
meeting, the attached ordinance
ORDINANCE NO. 9'!3d:.
AN ORDINANCE authorizing the issuance of
$7,500,000 "CITY OF LUBBOCK, TEXAS, ELECTRIC
LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES
1991"; prescribing the forms, terms, and
provisions of said bonds; pledging the net
revenues of the City's Electric Light and Power
System to the payment of the principal of and
interest on said bonds; enacting provisions
incident and related to the issuance, payment,
security, sale and delivery of said bonds,
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, aqd ueQ_n a motion made by tv\.~. A-d e.rfr::.,\) and
seconded by ......!oo..r..) ~\.!a(..K"" the ordinance was duly passed and
adopted by the Council on first reading by the following vote:
-
-4-voted '"For" 0 voted "Against" 0 abstained
all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
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 cdjarpe
officially and affixed the seal of said City, this the 1'9.
day of April, 1991.
Qk~~ ~Secretary
City of Lubbock, Texas
(City S~al)
~-
-2-. r. 4 7 l D
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,..
CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS §
§
§
§
§
COUNTY OF LUBBOCK
CITY OF LUBBOCK
I, the undersigned, City Secretary of the City of
Lubbock, Texas, DO HEREBY CERTIFY as follows:
1. That on the 26th day of April, 1991, 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 Counci 1 being as
follows:
B. C. MCMINN MAYOR
T. J. PATTERSON
BILL MALOY
GARY D. PHILLIPS
JOAN BAKER
MAGGIE TREJO
M.J. ADERTON
MAYOR PRO TEM
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
all of said persons were
following: (n.J. Adey+otJ
present at said meeting, except the
Among other
business considered at said meeting,
entitled:
the attached ordinance
ORDINANCE NO. q43cJ.
AN ORDINANCE authorizing the issuance of
$7,500,000 "CITY OF LUBBOCK, TEXAS, ELECTRIC
LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES
1991"; prescribing the forms, terms, and
provisions of said bonds; pledging the net
revenues of the City's Electric Light and Power
System to the payment of the principal of and
interest on said bonds; enacting prov1s1ons
incident and related to the issuance, payment,
security, sale and delivery of said bonds,
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
adoption. After presentation and due consi~ation of
ordinance, ~ upon a motion made byi.J.~,u
seconded by\\\ '{M\cl the ordinance was duly passed
and
the
and
and
adopted by the Council on second and final reading to be
effective immediately by the following vote:
_k_voted "For" Q voted "Against" 0 abstained
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 ;;)./p"!:..
day of April, 1991.
~~~ CitYSE(cret a ry
City of Lubbock, Texas
.... -.... .,...,.-
-2-
-
ORDINANCE NO. 9432
AN ORDINANCE authorizing the issuance of
$7,500,000 "CITY OF LUBBOCK, TEXAS, ELECTRIC
LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES
1991"; prescribing the forms, terms, and
provisions of said bonds; pledging the net
revenues of the City's Electric Light and Power
System to the payment of the principal of and
interest on said bonds; enacting provisions
incident and related to the issuance, payment,
security, sale and delivery of said bonds,
including the approval and distribution of an
Official Statement pertaining thereto, and
providing an effective date.
WHEREAS, this City Council has heretofore caused
notice of its intention to issue bonds for the purpose of
improving and extending the electric light and power system of
this City to be published once a week for two consecutive
weeks, the date of the first publication being not less than 15
days prior to the date set for the passage of the ordinance
authorizing the issuance of the bonds; and
WHEREAS, such notice was published in the Lubbock
Avalanche-Journal on the 24th day of March, 1991 and the 31st
day of March, 1991; and
WHEREAS, no petition, signed by 10% of the qualified
voters of the City, has been presented to the City Secretary or
other officials of the City requesting that an election be held
on the question of whether such bonds should be issued; and,
therefore, this Council is authorized to authorize, issue and
deliver the bonds herein authorized; and
WHEREAS, the City Council has further determined and
hereby finds that said bonds can and should be issued on a
parity with other outstanding revenue bonds of the City
(hereinafter called and defined as "Previously Issued Bonds")
payable from and secured by a first lien on and pledge of the
net revenues of the City's Electric Light and Power System
(hereinafter called the "System") and that the terms and
conditions for the issuance of "additional bonds" on a parity
with the Previously Issued Bonds can be met and satisfied, to
wit: { i) the Mayor and City Treasurer can certify that the
City is not now in default as to any covenant, condition or
obligation prescribed by the ordinances authorizing the
issuance of the outstanding Previously Issued Bonds, including
showings that all interest, sinking, and reserve funds have
been fully maintained in accordance with the provisions of said
ordinances; (ii) applicable laws of the State of Texas now in
force permit and authorize the issuance of the bonds and will
be fully complied with, (iii) the City can secure from an
independent Certified Public Accountant a written report
demonstrating that the net revenues of the System were, during
the last completed fiscal year, equal to at least 1-1/2 times
the average annua 1 principal and interest requirements of a 11
the bonds which wi 11 be secured by a first lien on and pledge
of the net revenues of the System and which will be outstanding
upon the issuance of the bonds herein authorized; and further
demonstrating that the net revenues of the System during the
last completed fiscal year were equal to at least 1-1/5 times
the maximum annual principal and interest requirements of all
such bonds as wi 11 be outstanding upon the issuance of the
bonds herein authorized, (iv) the bonds herein authorized will
mature on April 15 in each year, and (v) the "Reserve Portion"
of the Bond Fund shall be accumulated and supplemented as
necessary to maintain therein a sum equal to at least the
average annual principal and interest requirements of all bonds
secured by a first lien on and pledge of the net revenues of
the System which will be outstanding upon the issuance of the
bonds herein authorized; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK:
SECTION 1: Authorization -Designation -Principal
Amount -Purpose. Revenue bonds of the City shall be and are
hereby authorized to be issued in the aggregate principal
amount of $7,500,000, to be designated and bear the title "City
of Lubbock, Texas, Electric Light and Power System Revenue
Bonds, Series 1991" (hereinafter referred to as the "Bonds"),
for the purpose of constructing improvements and extensions to
the electric light and power system of the City, in conformity
with the Constitution and laws of the State of Texas, including
Article 1111, et seq., Article 2368a, Revised Civil Statutes of
Texas, 1925, as amended and Chapter 252 of the Local Government
Code.
SECTION 2: Fully Registered Obligations
Authorized Denominations Stated Maturities Interest
Rates -Date. The Bonds are issuable in fully registered form
only; shall be dated May 15, 1991 (the "Bond Date") and shall
be in denominations of $5,000 or any integral multiple thereof
(within a Stated Maturity) and the Bonds shall become due and
payable on April 15 in each of the years and in principal
amounts (the "Stated Maturities") and bear interest at per
annum rates in accordance with the following schedule:
-2-
6l91D
-
Year of Principal Interest
Stated Maturity Amount Rate
1992 $375,000 9.20\
1993 375,000 9.20\
1994 375,000 9.20\
1995 375,000 9.20\
1996 375,000 9.20\
1997 375,000 9.20\
1998 375,000 8.75\
1999 375,000 6.20\
2000 375,000 6.20\
2001 375,000 6.30\
2002 375,000 6.40\
2003 375,000 6.50\
2004 375,000 6.50\
2005 375,000 6.25\
2006 375,000 6.25\
2007 375,000 6.25\
2008 375,000 6.25\
2009 375,000 6.25\
2010 375,000 6.25\
2011 375,000 6.25\
SECTION 3: Payment of Bonds Paying Agent/
Registrar. The principal of, premium, if any, and the interest
on the Bonds shall be payable, without exchange or collection
charges to the owner or holder thereof, 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.
The Bonds shall bear interest on the unpaid principal
amounts from the Bond Date at the per annum rates shown above
in Section 2 hereof (computed on the basis of a 360-day year of
twelve 30-day months); such interest to be payable on April 15
and October 15 of each year commencing October 15, 1991.
The selection and appointment of Texas Commerce Bank
National Association, Lubbock, Texas, to serve as Paying
Agent/Registrar for the Bonds is hereby approved and confirmed,
and the City agrees and covenants to cause 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 Bonds (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 Bonds.
-3-63980
The City covenants to maintain and provide a Paying
Agent/Registrar at all times until the Bonds are paid and
discharged and any successor Paying Agent/Registrar shall be a
bank, trust company, financial institution or other entity duly
qualified and legally authorized to serve as, and perform the
duties and services of, Paying Agent/Registrar. Upon any
change in the Paying Agent/Registrar for the Bonds, the City
agrees to promptly cause a written notice thereof to be sent to
each registered owner of the Bonds by United States Mail, first
class postage prepaid, which notice shall also give the address
of the new Paying Agent/Registrar.
Both principa 1 of, premium, if any, and interest on
the Bonds, due and payable by reason of maturity, redemption,
or otherwise, shall be payable only to the registered owner or
holder of the Bonds (hereinafter referred to as the
"Bondholder" or "Bondholders") appearing on the Security
Register, and, to the extent permitted by law, neither the City
nor the Paying Agent/Registrar or any agent of either, shall be
affected by notice to the contrary.
Principal of and premium, if any, on the Bonds, shall
be payable only upon presentation and surrender of the Bonds to
the Paying Agent/Registrar at its principal office. Interest
on the Bonds shall be paid to the Bondholder 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 shall be paid by the
Paying Agent/Registrar (i) 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 (ii) by such other method, acceptable to the Paying
Agent/Registrar, requested by the Bondholder at the
Bondholder's risk and expense. If the date for the payment of
the principal of or interest on the Bonds shall be a Saturday,
Sunday, a ·legal holiday, or a day on which 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 on which 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.
In the event of a non-payment 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
-4-S398D
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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 Bondholder appearing on the Security Register
at the close of business on the last business day next
preceding the date of mailing of such notice.
SECTION 4: Redemption. (a) Optional Redemption.
The Bonds having Stated Maturities on and after April 15, 2002,
shall be subject to redemption prior to maturity, at the option
of the City, on April 15, 2001 or any date thereafter, 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), 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 date set for the redemption of
Bonds (unless a shorter notification period shall be
satisfactory to the Paying Agent/Registrar), the City shall
notify the Paying Agent/Registrar of its decision to exercise
the right to redeem Bonds, the principal amount of each Stated
Maturity to be redeemed, and the date set for the redemption
thereof. The decision of the City to exercise the right to
redeem Bonds shall be entered in the minutes of the governing
body of the City. '
(c) Selection of Bonds for Redemption. If less than
all Outstanding Bonds of the same Stated Maturity are to be
redeemed on a redemption date, the Paying Agent/Registrar shall
select by lot the Bonds to be redeemed, provided that if less
than the entire principal amount of a Bond is to be redeemed,
the Paying Agent/Registrar shall treat such Bond then subject
to redemption as representing the number of Bonds Outstanding
which is obtained by dividing the principal amount of such Bond
by $5,000.
(d) Notice of Redemption. Not less than thirty (30)
days prior to a redemption date for the Bonds, 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 Bondholder of a Bond to be redeemed in whole
or in part at the address of the Bondholder appearing on the
Security Register at the close of business on the business day
next preceding the date of 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
Bondholder.
-5-
6:1910
All notices of redemption shall (i) specify the date
of redemption for the Bonds, (ii) identify the Bonds 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) the redemption price, (iv) state that the
Bonds, 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 Bonds, 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 Bondholder. If a Bond is subject by
its terms to prior redemption and has been called for
redemption and notice of redemption thereof has been duly given
or waived as herein provided, such Bond (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 Bonds (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: Execution -Registration. The Bonds
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 Bonds
may be manual or facsimile. Bonds bearing the manual or
facsimile signatures of individuals who are or were the proper
officers of the City on the Bond Date shall be deemed to be
duly executed on behalf of the City, notwithstanding that such
individuals or either of them shall cease to hold such offices
at the time of delivery of the Bonds to the initial
purchaser(s) and with respect to Bonds delivered in subsequent
exchanges and transfers, all as authorized and provided in the
Bond Procedures Act of 1981, as amended.
No Bond shall be entitled to any right or benefit
under this Ordinance, or be valid or obligatory for any
purpose, unless there appears on such Bond 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 90, executed by an authorized officer,
employee or representative of the Paying Agent/Registrar, and
either such certificate upon any Bond shall be conclusive
evidence, and the only evidence, that such Bond has been duly
certified or registered and delivered.
-6-63t8D
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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 Bonds, 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 Bonds.
Pursuant to the Depository Agreement and the rules of
DTC, the Bonds shall be deposited with DTC who shall hold said
Bonds for its participants (the "DTC Participants"). While the
Bonds are held by DTC under the Depository Agreement, the
Holder of the Bonds 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 Bond (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 Bonds 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 Bonds, the City covenants and agrees with
the Holders of the Bonds to cause Bonds to be printed in
definitive form and provide for the Bonds to be issued and
delivered to DTC Participants and Beneficial Owners, as the
case may be. Thereafter, the Bonds in definitive form shall be
assigned, transferred and exchanged on the Security Register
maintained by the Paying Agent/Registrar and payment of such
Bonds shall be made in accordance with the provisions of
Sections 3 and 5 hereof.
SECTION 7: Registration -Transfer -Exchange of
Bonds -Predecessor Bonds. A Security Register relating to the
registration, payment, and transfer or exchange of the Bonds
shall at all times be kept and maintained by the City at the
principal office of the Paying Agent/Registrar, and the Paying
Agent/Registrar shall obtain, record, and maintain in the
Security Register the name and address of each registered owner
of the Bonds issued under and pursuant to the provisions of
this Ordinance. Any Bond may, in accordance with its terms and
the terms hereof, be transferred or exchanged for Bonds of
other authorized denominations upon the Security Register by
the Bondholder, in person or by his duly authorized agent, upon
-7-
6J98D
-
surrender of such Bond to the Paying Agent/Registrar for
cancellation, accompanied by a written instrument of transfer
or request for exchange duly executed by the Bondholder or by
his duly authorized agent, in form satisfactory to the Paying
Agent/Registrar.
Upon surrender for transfer of any Bond at the
principal office of the Paying Agent/Registrar, the Paying
Agent/Registrar shall register and deliver, in the name of the
designated transferee or transferees, one or more new Bonds
executed on behalf of, and furnished by, the City of authorized
denominations and having the same Stated Maturity and of a like
aggregate principal amount as the Bond or Bonds surrendered for
transfer.
At the option of the Bondholder, Bonds may be
exchanged for other Bonds of authorized denominations and
having the same Stated Maturity, bearing the same rate of
interest and of like aggregate principal amount as the Bonds
surrendered for exchange, upon surrender of the Bonds to be
exchanged at the principal office of the Paying Agent/
Registrar. Whenever any Bonds are so surrendered for exchange,
the Paying Agent/Registrar shall register and deliver new Bonds
executed on behalf of, and furnished by, the City to the
Bondholder requesting the exchange.
All Bonds issued upon any transfer or exchange of
Bonds shall be delivered at the principal office of the Paying
Agent/Registrar, or sent by United States mail, first class
postage prepaid, to the Bondholder at his request, risk, and
expense and, upon the delivery thereof, the same shall be valid
obligations of the City, evidencing the same obligation to pay,
and entitled to the same benefits under this Ordinance, as the
Bonds surrendered in such transfer or exchange.
All transfers or exchanges of Bonds pursuant to this
Section shall be made without expense or service charge to the
Bondholder, except as otherwise herein provided, and except
that the Paying Agent/Registrar shall require payment by the
Bondholder requesting such transfer or exchang~ of any tax or
other governmental charges required to be paid with respect to
such transfer or exchange.
Bonds cancelled by reason of an exchange or transfer
pursuant to the provisions hereof are hereby defined to be
"Predecessor Bonds," evidencing all or a portion, as the case
may be, of the same obligation to pay evidenced by the new Bond
or Bonds registered and delivered in the exchange or transfer
therefor. Additionally, the term "Predecessor Bonds" shall
include any Bond registered and delivered pursuant to
-8-
Section 32 hereof in lieu of a mutilated, lost, destroyed, or
stolen Bond which shall be deemed to evidence the same
obligation as the mutilated, lost, destroyed, or stolen Bond.
Neither the City nor the Paying Agent/Registrar shall
be required to transfer or exchange any Bond called for
redemption, in whole or in part, within 45 days of the date
fixed for redemption of such Bond; provided, however, that such
limitation of transfer shall not be applicable to an exchange
by the Bondholder of an unredeemed balance of a Bond called for
redemption in part.
SECTION 8: Initial Bond(s). The Bonds herein
authorized shall be initially issued as a single fully
registered bond in the total principal amount of this series
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 bonds, being one bond 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 Bond(s)") and, in
either case, the Initial Bond(s) shall be registered in the
name of the initial purchaser(s) or the designee thereof. The
Initial Bond(s) shall be the Bonds 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 Bond(s), the Paying Agent/Registrar, pursuant to
written instructions from the purchaser(s), or the designee
thereof, shall cancel the Initial Bond(s) delivered hereunder
and exchange therefor definitive Bonds of authorized
denominations, Stated Maturities, principal amounts, and
bearing applicable interest rates for transfer and delivery to
the Bondholders 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: Forms. A. Forms Generally. The
Bonds, the Registration Certificate of the Comptroller of
Public Accounts of the State of Texas, the Certificate of
Registration, and the form of Assignment to be printed on each
of the Bonds, shall be substantially in the forms set forth in
this Section with such appropriate insertions, omissions,
substitutions, and other variations as are 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)
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and such legends and endorsements (including any reproduction
of an opinion of counsel) thereon as may, consistently
herewith, be established by the City or determined by the
officers executing such Bonds as evidenced by their execution
thereof. Any portion of the text of any Bonds may be set forth
on the reverse thereof, with an appropriate reference thereto
on the face of the Bond.
The definitive Bonds shall be printed, lithographed,
or engraved or produced in any other similar manner, all as
determined by the officers executing such Bonds as evidenced by
their execution thereof, but the Initial Bond(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 Bond for each Stated Maturity in the aggregate
principa 1 amount of each Stated Maturity and ( ii) for
registration of such Bonds 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 Bonds to the initial purchasers but shall not
affect the City's obligation to pay the registered owners the
principal of and interest on the Bonds as the same become due.
While any Bond is registered in the name of a securities
depository or its nominee, references herein and in the Bonds
to the holder or owner of such Bond shall mean the securities
depository or its nominee and shall not mean any other person.
REGISTERED
NO.
B. Form of Definitive Bond.
United States of America
State of Texas
City of Lubbock, Texas
Electric Light and Power System Revenue Bond
Series 1991
REGISTERED $ ____ _
Bond Date: Interest Rate: Stated Maturity: CUSIP NO.
May 15,1991
Registered Owner:
Principal Amount: DOLLARS
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5.1980
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The City of Lubbock, Texas, (hereinafter referred to
as the "City"), a body corporate and municipal corporation in
the County of Lubbock, State of Texas, for value received,
hereby promises to pay to the Registered Owner named above, or
the registered assigns thereof, solely from the revenues
hereinafter defined, on the Stated Maturity date specified
above, the Principal Amount stated above (or so much thereof as
shall not have been paid upon prior redemption) and to pay
interest on the unpaid Principal Amount hereof from the Bond
Date at the per annum rate of interest specified above computed
on the basis of a 360-day year of twelve 30-day months; such
interest being payable on April 15 and October 15 of each year
commencing October 15, 1991. Principal of this Bond shall be
payable 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 shall be payable
to the registered owner of this Bond (or one or more
Predecessor Bonds, 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. If the
date for the payment of the principal of or interest on the
Bonds shall be a Saturday, Sunday, a legal holiday, or a day on
which 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 on which 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
Bond 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 made by the
Paying Agent/Registrar by check sent on or prior to the
appropriate date of payment by 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.
This Bond is one of the series specified in its title
issued in the aggregate principal amount of $7,500,000 (herein
referred to as the "Bonds") for the purpose of constructing
improvements and extensions to the electric light and power
-11-63'110
system of the City, under and in strict conformity with the
Constitution and laws of the State of Texas, including Articles
1111 et seq., and Article 2368a, Revised Civil Statutes of
Texas, 1925, as amended and Chapter 252 of the Local Government
Code and pursuant to an ordinance adopted by the City Counci 1
of the City (herein referred to as the "Ordinance").
The Bonds maturing on and after April 15, 2002, may
be redeemed prior to their Stated Maturities, at the option of
the City, on April 15, 2001, or any date thereafter, 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) at the redemption price of par,
together with accrued interest to the date of redemption, and
upon 30 days prior written notice being given by United States
Mail, first class postage prepaid, to registered owners of the
Bonds to be redeemed, and subject to the terms and provisions
relating thereto contained in the Ordinance. If this Bond (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 Bond (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 Bond, payment of the redemption price of such
principal amount shall be made to the registered owner only
upon presentation and surrender of this Bond to the Paying
Agent/Registrar at its principal office and, there shall be
issued, without charge therefor, to the registered owner
hereof, a new Bond or Bonds of like maturity and interest rate
in any authorized denominations provided in the Ordinance for
the then unredeemed balance of the principal sum hereof. If
this Bond is called for redemption, in whole or in part, the
City or the Paying Agent/Registrar shall not be required to
transfer this Bond to an assignee of the Bondholder within 45
days of the redemption date therefor; provided, however, such
limitation on transferability shall not be applicable to an
exchange by the Bondholder of the unredeemed balance hereof in
the event of its redemption in part.
The Bonds are special obligations of the City and,
together with the outstanding and unpaid Previously Issued
Bonds (as defined in the Ordinance authorizing the issuance of
the Bonds), are payable solely from and secured by a first lien
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on and pledge of the Net Revenues (as defined in the Ordinance)
of the City's Electric Light and Power System (the "System").
The Bonds do not constitute a legal or equitable pledge,
charge, lien or encumbrance upon any property of the City or
the System, except with respect to the Net Revenues. The
holder hereof shall never have the right to demand payment of
this obligation out of any funds raised or to be raised by
taxation.
Subject to satisfying the terms and conditions
prescribed therefor, the City has reserved the right to issue
additional revenue obligations payable from and equally and
ratably secured by a parity lien on and pledge of the Net
Revenues of the System, in the same manner and to the same
extent as the Bonds.
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 of the provisions of which the
Bondholder by his acceptance hereof hereby assents, for
definitions of terms; the description of and the nature and
extent of the security for the Bonds; the properties
constituting the System; the Net Revenues pledged to the
payment of the principal of and interest on the Bonds; the
nature and extent and manner of enforcement of the lien and
pledge securing the payment of the Bonds; the terms and
conditions for the issuance of additional revenue obligations;
the terms and conditions relating to the transfer or exchange
of this Bond; the conditions upon which the Ordinance may be
amended or supplemented with or without the consent of the
Bondholders; the rights, duties, and obligations of the City
and the Paying Agent/Registrar; the terms and provisions upon
which the liens, pledges, charges and covenants made therein
may be discharged at or prior to the maturity or redemption of
this Bond, and this Bond deemed to be no longer Outstanding
thereunder; and for the other terms and provisions thereof.
Capitalized terms used herein have the same meanings assigned
in the Ordinance.
This Bond, 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 1 the registered owner hereof 1 or his duly
authorized agent. When a transfer on the Security Register
occurs, one or more new fully registered Bonds of the same
Stated Maturity, of authorized denominations, bearing the same
rate of interest, and of the same aggregate principal amount
will be issued by the Paying Agent/Registrar to the designated
transferee or transferees.
-13-63910
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 surrender of this Bond 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 non-payment 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 Bondholder
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 and represented and
covenanted that the City is a duly organized and legally
existing municipal corporation under and by virtue of the
Constitution and laws of the State of Texas; that the issuance
of the Bonds 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 Bonds 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 Bonds 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 Bonds by a pledge of the Net Revenues of the
System as aforestated. In case any provision in this Bond 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
Bond and the Ordinance shall be construed in accordance with
and shall be governed by the laws of the State of Texas.
-14-6:!98D
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IN WITNESS WHEREOF, the City Council of the City has
caused this Bond to be duly executed under the official seal of
the City as of the Bond Date.
CITY OF LUBBOCK, TEXAS
Mayor
COUNTERSIGNED:
City Secretary
(City Seal)
c. *Form of Registration Certificate of Comptroller
of Public Accounts to Appear on Initial Bond(s) only.
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
OFFICE OF THE COMPTROLLER
OF PUBLIC ACCOUNTS
THE STATE OF TEXAS
()
()
()
()
REGISTER NO.
I HEREBY CERTIFY that this Bond 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.
(SEAL)
WITNESS my signature and seal of office this
Comptroller of Public Accounts
of the State of Texas
* NOTE TO PRINTER: Do not print on Definitive Bonds.
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63tiD
D. Form of Certificate of Paying Agent/Registrar to
Appear on Bonds (other than a single fully registered
Initial Bond).
This Bond has been duly issued and registered in the
name of the Registered Owner shown above under the provisions
of the within-mentioned Ordinance; the bond or bonds 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.
Registered this date:
E. Form of Assignment.
TEXAS COMMERCE BANK NATIONAL
ASSOCIATION
Lubbock, Texas
as Paying Agent/Registrar
By
Authorized Officer
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 Bond and all rights thereunder,
and hereby irrevocably constitutes and appoints ......•..•....... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
attorney to transfer the within Bond on the books kept for
registration thereof, with full power of substitution in the
premises.
DATED: . . . . . . . . . . . . . . . . . .
Signature guarantee:
. . . . . . . . . . . . . . . . . . . . . . . . . .
6J911D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NOTICE: The signature on this
assignment must correspond with
the name of the registered owner
as it appears on the face of the
within Bond in every particular.
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F. The Initial Bond(s) shall be in the form set forth in
paragraph B of this Section, except that the form of a single
fully registered Initial Bond shall be modified as follows:
{ i) immediately under the name of the bond the
headings "Interest Rate " and " Stated Mat u r i t y -----::: .. :---s-::h:-a:-1:-1. both
be completed "As Shown Below";
{ii) Paragraph one shall read as follows:
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, hereby
promises to pay to the Registered Owner named above, or the
registered assigns thereof, solely from the revenues
hereinafter identified, on the 15th day of April in each of the
years and in principal amounts and bearing interest at per
annum rates in accordance with the following schedule:
YEAR
PRINCIPAL
INSTALLMENTS
INTEREST
RATE
{Information to be inserted from schedule
in Section 2 hereof).
(or so much thereof as shall not have been prepaid prior to
maturity) and to pay interest on the unpaid principal amounts
hereof from the Bond 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 April 15
and October 15 of each year, commencing October 15, 1991.
Principal of this Bond shall be payable to the registered owner
hereof, upon presentation and surrender, at the principal
office of Texas Commerce Bank National Association, Lubbock,
Texas (the "Paying Agent/Registrar"). Interest shall be
payable to the registered owner of this Bond 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. If the date for the payment of the
principal of or interest on the Bonds shall be a Saturday,
Sunday, a legal holiday, or a day on which 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 on which banking
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,.,
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 Bond 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 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.
SECTION 10: Definitions. That for all purposes of
this ordinance and in particular for clarity with respect to
the issuance of the Bonds herein authorized and the pledge and
appropriation of revenues therefor, the following definitions
are provided:
(a) The term "Additional Bonds" shall mean the
additional parity obligations the City reserves the right
to issue in accordance with the terms and conditions
prescribed in Section 21 hereof.
(b) The term "Bonds" shall mean
of Lubbock, Texas, Electric Light and
Bonds, Series 1991," dated May 15,
this ordinance.
the $7,500,000 "City
Power System Revenue
1991, authorized by
(c) The term "Bonds Similarly Secured" means the
Previously Issued Bonds, the Bonds and Additional Bonds.
(d) The term "Fiscal Year" shall mean the twelve
month accounting period used by the City in connection
with the operations of the System which may be any twelve
(12) consecutive month period established by the City.
(e) The term "Net Revenues" shall mean the gross
revenues of the System less expenses of operation and
maintenance. Such expenses of operation and maintenance
shall not include depreciation charges or funds pledged
for the Bonds Similarly Secured, but shall include all
salaries, labor, materials, repairs, and extensions
necessary to render services; provided, however, that in
determining "Net Revenues", only such repairs and
extensions as in the judgment of the City Council,
reasonably and fairly exercised, are necessary to keep the
System in operation and render adequate service to the
City and inhabitants thereof, or such as might be
necessary to meet some physical accident or condition
which otherwise would impair the security of the Bonds
Similarly Secured, shall be deducted.
-18-IJ91D
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(f) The term "Previously Issued Bonds" shall mean
the outstanding and unpaid revenue bonds, designated "CITY
OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REVENUE
BONDS" and payable from and secured by a first lien on and
pledge of the Net Revenues of the System, further
identified by issue or series as follows:
( 1) Series 1973, dated July 15, 1973, in the
original principal amount of $6,000,000;
(2) Series 1975, dated March 15, 1975, in the
original principal amount of $6,400,000;
(3) Series 1975-A, dated September 15, 1975, in
the original principal amount of $2,000,000;
(4) Series 1976, dated April 15, 1976, in the
original principal amount of $4,400,000;
(5) Series 1983, dated May 15, 1983, in the
original principal amount of $10,770,000;
(6) Series 1984, dated April 15, 1984, in the
original principal amount of $10,000,000;
(7) Series 1987, dated April 15, 1987, in the
original principal amount of $7,000,000; and
(8) Series 1988, dated May 15, 1988, in the
original principal amount of $17,000,000.
(g) The term "System" shall mean all properties,
real, personal, mixed or otherwise, now owned or hereafter
acquired by the City of Lubbock through purchase,
construction or otherwise, and used in connection with the
City's Electric Light and Power System and in anywise
pertaining thereto, whether situated within or without the
limits of the City.
SECTION 11: Pledge. That the City hereby
covenants and agrees that all of the Net Revenues derived from
the operation of the System, with the exception of those in
excess of the amounts required to establish and maintain the
special Funds created for the payment and security of the Bonds
Similarly Secured, are hereby irrevocably pledged for the
payment of the Previously Issued Bonds, the Bonds and
Additional Bonds, if issued, and the interest thereon, and it
is hereby ordained that the Previously Issued Bonds, the Bonds
and Additional Bonds, if issued, and the interest thereon,
shall constitute a first lien on the Net Revenues of the System.
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SECTION 12: Rates and Charges. That the City
hereby covenants and agrees with the owners of the Bonds that
rates and charges for electric power and energy afforded by the
System will be established and maintained to provide revenues
sufficient at all times to pay:
(a) all necessary and reasonable expenses of
operating and maintaining the System as set forth herein
in the definition "Net Revenues" and to recover
depreciation;
(b) the amounts required to be deposited to the Bond
Fund to pay the principal of and interest on the Bonds
Similarly Secured as the same becomes due and payable and
to accumulate and maintain the reserve amount required to
be deposited therein; and
(c) 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 13: Segregation of Revenues/Fund
Designations. All receipts, revenues and income derived from
the operation and ownership of the System shall be kept
separate from other funds of the City and deposited within
twenty-four (24) hours after collection in the "Electric Light
and Power System Fund" (created and established in connection
with the issuance of the Previously Issued Bonds), which Fund
(hereinafter referred to as the "System Fund") is hereby
reaffirmed and shall continue to be kept and maintained at an
official depository bank of the City while the Bonds remain
Outstanding. Furthermore, the "Special Electric Light and
Power System Revenue Bond Retirement and Reserve Fund"
(hereinafter referred to as the "Bond Fund"), created and
established in connection with the issuance of the Previously
Issued Bonds, is hereby reaffirmed and shall continue to be
maintained by the City while the Bonds remain Outstanding. The
Bond Fund is and shall continue to be kept and maintained at
the City's official depository bank, and moneys deposited in
the Bond Fund shall be used for no purpose other than for the
payment, redemption and retirement of Bonds Similarly Secured.
SECTION 14: System Fund. The City hereby
reaffirms its covenant to the holders of the Previously Issued
Bonds and agrees with the owners of the Bonds that the moneys
deposited in the System Fund shall be used first for the
payment of the reasonable and proper expenses of operating and
maintaining the System, as identified in Section lO(e) hereof.
All moneys deposited in the System Fund in excess of the
amounts required to pay operating and maintenance expenses of
the System, as hereinabove provided, shall be applied and
appropriated, to the extent required and in the order of
priority prescribed, as follows:
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53980
( i) To the payment of the amounts required to
be deposited in the Bond Fund for the payment of
principal of and interest on the Bonds Similarly
Secured as the same become due and payable; and
(ii) To the payment of the amounts, if any,
required to be deposited in the Bond Fund to
accumulate and maintain the reserve amount as
security for the payment of the principal of and
interest on the Bonds Similarly Secured.
SECTION 15: Bond Fund. (a) That, in addition to
the required monthly deposits to the Bond Fund for the payment
of principal of and interest on the Previously Issued Bonds,
the City hereby agrees and covenants to deposit to the Bond
Fund an amount equal to one hundred percentum ( 100\) of the
amount required to fully pay the interest on and principal of
the Bonds falling due on or before each maturity and interest
payment date, such payments to be made in substantially equal
monthly installments on or before the 1st day of each month
beginning on or before the 1st day of the month next following
the month the Bonds are delivered to the initial purchaser.
The required monthly deposits to the Bond Fund for
the payment of principal of and interest on the Bonds shall
continue to be made as hereinabove pro~ided until such time as
(i) the total amount of deposit in the Bond Fund, including the
"Reserve Portion" deposited therein, is equal to the amount
required to fully pay and discharge all outstanding Bonds
Similarly Secured (principal and interest) or ( ii) the Bonds
are no longer outstanding, i.e., the Bonds have been fully paid
as to principal and interest or all the Bonds have been
refunded.
Accrued interest and premium, if any, received from
the purchasers of the Bonds shall be deposited in the Bond
Fund, and shall be taken into consideration and reduce the
amount of the monthly deposits hereinabove required which would
otherwise be required to be deposited in the Bond Fund from the
Net Revenues of the System.
(b) In addition to the amounts to be deposited in
the Bond Fund to pay current principa 1 and interest for the
Bonds Similarly Secured, the City reaffirms its covenant to the
holders of the Previously Issued Bonds and agrees to accumulate
and maintain in said Fund a reserve amount (the "Reserve
Portion") equal to not less than the average annual principal
and interest requirements of all outstanding Bonds Similarly
Secured (calculated and redetermined at the time of issuance of
each series of Bonds Similarly Secured).
-21-6J98D
In accordance with the ordinances authorizing the
issuance of the Previously Issued Bonds, there is currently on
deposit to the credit of the Reserve Portion of the Bond Fund
the sum of $3,811,807. No additional amount is required to be
deposited to the credit of the Reserve Portion from
unencumbered available funds in order that the total amount is
not less than the average annual principal and interest
requirements of the outstanding Bonds Similarly Secured after
giving effect to the issuance of the Bonds (the "Required
Reserve Fund Amount").
The Reserve Portion of the Bond Fund shall be made
available for and reasonably employed in meeting the
requirements of the Bond Fund if need be, and if any amount
thereof is so employed, the Reserve Portion in the Bond Fund
shall be fully restored to the Required Reserve Fund Amount as
rapidly as possible from the first available Net Revenues of
the System in the System Fund subject only to the priority of
payments hereinabove prescribed in Section 14. Any amounts in
excess of the Required Reserve Fund Amount shall be transferred
to the System Fund.
SECTION 16: Payment of Bonds. While any of the
Bonds are outstanding, the proper officers of the City are
hereby authorized to transfer or cause to be transferred to the
Paying Agent, from funds on deposit in the Bond Fund, including
the Reserve Portion, if necessary, amounts sufficient to fully
pay and discharge promptly as each installment of interest and
principal of the Bonds accrues or matures or comes due by
reason of redemption prior to maturity; such transfer of funds
to be made in such manner as will cause immediately available
funds to be deposited with the Paying Agent for the Bonds at
the close of the business day next preceding the date of
payment for the Bonds.
SECTION 17: Deficiencies in Funds. That, if in
any month the City shall, for any reason, fail to pay into the
Bond Fund the full amounts above stipulated, amounts equivalent
to such deficiencies shall be set apart and paid into said Fund
from the first available and unallocated Net Revenues of the
System in the following month or months and such payments shall
be in addition to the amounts hereinabove provided to be
otherwise paid into said Fund during such month or months.
SECTION 18: Excess Revenues. Any surplus Net
Revenues of the System remaining after all payments have been
made into the Bond Fund and after all deficiencies in making
deposits to said Fund have been remedied, may be used for any
other City purposes now or hereafter permitted by law,
including the use thereof for the retirement in advance of
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maturity of the Bonds Similarly Secured by the purchase of any
of such Bonds Similarly Secured on the open market at not
exceeding the market value thereof. Nothing herein, however,
shall be construed as impairing the right of the City to pay,
in accordance with the provisions thereof, any junior lien
bonds legally issued and payable out of the Net Revenues of the
System.
SECTION 19: Security of Funds. That moneys on
deposit in the System Fund (except any amounts as may be
properly invested) shall be secured in the manner and to the
fullest extent required by the laws of the State of Texas for
the security of public funds. Moneys on deposit in the Bond
Fund shall be continuously secured by a valid pledge of direct
obligations of, or obligations unconditionally guaranteed by
the United States of America, having a par value, or market
value when less than par, exclusive of accrued interest, at all
times at least equal to the amount of money to be deposited in
said Fund. All sums deposited in said Bond Fund shall be held
as a trust fund for the benefit of the holders of the Bonds
Similarly Secured, the beneficial interest in which shall be
regarded as existing in such holders. To the extent that money
in the Reserve Portion of the Bond Fund is invested under the
provisions of Section 20 hereof, such security is not required.
SECTION 20: Investment of Reserve Portion of Bond
Fund. The custodian bank shall, when authorized by the City
Council, invest the Reserve Portion of the Bond Fund in direct
obligations of, or obligations guaranteed by the United States
of America, or invested in direct obligations of the Feder a 1
Intermediate Credit Banks, Federal Land Banks, Federal National
Mortgage Association, Feder a 1 Home Loan Banks or Banks for
Cooperatives, and which such investment obligations must mature
or be subject to redemption at the option of the holder, within
not to exceed ten years from the date of making the
investment. Such obligations shall be held by the depository
impressed with the same trust for the benefit of the
bondholders as the Bond Fund itself, and if at any time
uninvested funds shall be insufficient to permit payment of
principal and interest maturities for the Bonds Similarly
Secured, the said custodian bank shall sell on the open market
such amount of the securities as is required to pay said Bonds
Similarly Secured and interest when due and shall give notice
thereof to the City. All moneys resulting from maturity of
principal and interest of the securities shall be reinvested or
accumulated in the Reserve Portion of the Bond Fund and
considered a part thereof and used for and only for the
purposes hereinabove provided with respect to said Reserve
Portion, provided that when the full amount required to be
accumulated in the Reserve Portion of the Bond Fund (being the
-23-63980
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amounts required to be accumulated by the ordinances
authorizing the Bonds Similarly Secured) is accumulated, any
interest increment may be used in the Bond Fund to reduce the
payments that would otherwise be required to pay the current
debt service requirements on Bonds Similarly Secured.
Amounts on deposit in any of the Funds herein
referred to and allocable to the Bonds or Additional Bonds, if
issued, shall be invested as provided in the Public Funds
Investment Act of 1987 and in this ordinance to the extent the
investment provisions of this ordinance are consistent with
such Act.
SECTION 21: Issuance of Additional Parity Bonds.
That, in addition to the right to issue bonds of inferior lien
as authorized by the laws of the State of Texas, the City
hereby reserves the right to issue Additional Bonds which, when
duly authorized and issued in compliance with the terms and
conditions hereinafter appearing, shall be on a parity with the
Previously Issued Bonds and the Bonds herein authorized,
payable from and equally and ratably secured by a first lien on
and pledge of the Net Revenues of the System. The Addi tiona!
Bonds may be issued in one or more installments, provided,
however, that none shall be issued unless and until the
following conditions have been met:
(a) That the Mayor and City Treasurer have certified
that the City is not then in default as to any covenant,
condition or obligation prescribed by any ordinance
authorizing the issuance of Bonds Similarly Secured then
outstanding, including showings that all interest, sinking
and reserve funds then provided for have been fully
maintained in accordance with the provisions of said
ordinances;
(b) That the applicable laws of the State of Texas
in force at the time provide permission and authority for
the issuance of such bonds and have been fully complied
with;
(c) That the City has secured from an independent
Certified Public Accountant his written report
demonstrating that the Net Revenues of the System were,
during the last completed Fiscal Year, or during any
consecutive twelve (12) months period of the last fifteen
(15) consecutive months prior to the month of adoption of
the ordinance authorizing the Additional Bonds, equal to
at least one and one-half (1-1/2) times the average annual
principal and interest requirements of all the bonds which
will be secured by a first lien on and pledge of the Net
-24-6311D
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Revenues of the System and which will be outstanding upon
the issuance of the Additional Bonds; and further
demonstrating that for the same period as is employed in
arriving at the aforementioned test said Net Revenues were
equal to at least one and one-fifth (1-1/5) times the
maximum annual principal and interest requirements of all
such bonds as will be outstanding upon the issuance of the
Additional Bonds;
(d) That the Additional Bonds are made to mature on
April 15 or October 15, or both, in each of the years in
which they are provided to mature;
(e) The Reserve Portion of the Bond Fund shall be
accumulated and supplemented as necessary to maintain a
sum which shall be not less than the average annual
principal and interest requirements of all bonds secured
by a first lien on and pledge of the Net Revenues of the
System which will be outstanding upon the issuance of any
series of Additional Bonds. Accordingly, each ordinance
authorizing the issuance of any series of Additional Bonds
sha 11 provide for any required increase in the Reserve
Portion, and if supplementation is necessary to meet all
conditions of said Reserve Portion, said ordinances shall
make provision that same be supplemented by the required
amounts in equal monthly installments over a period of not
to exceed sixty (60) calendar months from the dating of
such Additional Bonds.
When thus issued, such Additional Bonds may be
secured by a pledge of the Net Revenues of the System on a
parity in all things with the pledge securing the issuance of
the Bonds and the Previously Issued Bonds.
SECTION 22: Maintenance and Operation -Insurance.
That the City hereby covenants and agrees to maintain the
System in good condition and operate the same in an efficient
manner and at reasonable cost. The City further agrees to
maintain insurance for the benefit of the registered owners of
the Bonds of the kinds and in the amounts which are usually
carried by private companies operating similar properties, and
that during such time all policies of insurance shall be
maintained in force and kept current as to premium payments.
All moneys received from losses under such insurance policies
other than public liability policies are hereby pledged as
security for the Bonds Similarly Secured until and unless the
proceeds thereof are paid out in making good the loss or damage
in respect of which such proceeds are received, either by
replacing the property destroyed or repairing the property
damaged, and adequate provisions are made within ninety (90)
days after the date of the loss for making good such loss or
damage. The premiums for all insurance policies required under
the provisions of this Section shall be considered as
maintenance and operation expenses of the System.
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SECTION 23: Records Accounts Accounting
Reports. That the City hereby covenants and agrees so long as
any of the Bonds or any interest thereon remain outstanding and
unpaid, it will keep and maintain a proper and complete system
of records and accounts pertaining to the operation of the
System separate and apart from all other records and accounts
of the City in accordance with generally accepted accounting
principles prescribed for municipal corporations, and complete
and correct entries shall be made of all transactions relating
to said System, as provided by applicable law. The registered
owner of any Bonds, or any duly authorized agent or agents of
such owner, shall have the right at all reasonable times to
inspect a 11 such records, accounts and data relating thereto
and to inspect the System and all properties comprising same.
The City further agrees that as soon as possible 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. Each such audit, in addition to whatever
other matters may be thought proper by the Accountant, shall
particularly include the following:
(a} A detailed statement of the income and
expenditures of the System for such Fiscal Year;
(b) A balance sheet as of the end of such Fiscal
Year;
(c) The Accountant • s comments regarding the manner
in which the City has compiled with the covenants and
requirements of this ordinance and his recommendations for
any changes or improvements in the operation, records and
accounts of the System;
(d) A list of the insurance policies in force at the
end of the Fiscal Year on the System properties, setting
out as to each policy the amount thereof, the risk
covered, the name of the insurer, and the policy's
expiration date;
(e) A list of the securities which have been on
deposit as security for the money in the Bond Fund
throughout the Fiscal Year and a list of the securities,
if any, in which the Reserve Portion of the Bond Fund has
been invested.
(f) The total number of metered and unmetered
customers, if any, connected with the System at the end of
the Fiscal Year.
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63980
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Expenses incurred in making the audits above referred
to are to be regarded as maintenance and operating expenses of
the System and paid as such. Copies of the aforesaid annual
audit shall be immediately furnished to the Executive Director
of the Municipa 1 Advisory Counci 1 of Texas at his office in
Austin, Texas, and, upon written request, to the original
purchasers and any subsequent registered owner of the Bonds.
SECTION 24: Remedies in Event of Default. That,
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
payments to be made to the Bond Fund as required by this
ordinance or {b) defaults in the observance or performance of
any other of the covenants, conditions or obligations set forth
in this ordinance, the registered owner of any of the Bonds
shall be entitled to a writ of mandamus issued by a court of
proper jurisdiction compelling and requiring the City Council
and other officers of the City to observe and perform any
covenant, condition or obligation prescribed in this ordinance.
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
acquiescence therein, and every such right or 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
specifications of such remedies shall not be deemed to be
exclusive.
SECTION 25: Special Covenants. The City hereby
further covenants as follows:
{a) That it has the lawful power to pledge the
revenues supporting this issue of Bonds and has
lawfully exercised said power under the Constitution
and laws of the State of Texas, including Article
1111 et seq., Article 2368a, Revised Civil Statutes
of Texas, 1925, as amended, and Chapter 252 of the
Local Government Code; that the Previously Issued
Bonds, the Bonds and the Additional Bonds, when
issued, shall be ratably secured under said pledge of
income in such manner that one bond shall have no
preference over any other bond of said issues.
(b) That, other than for the payment of the
Previously Issued Bonds and the Bonds, the Net
Revenues of the System have not been pledged to the
payment of any debt or obligation of the City or of
the System.
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(c) That, so long as any of the Bonds or any
interest thereon remain outstanding, the City will
not sell, lease or encumber the System or any
substantial part thereof; provided, however, this
covenant shall not be construed to prohibit the sale
of such machinery, or other properties or equipment
which has become obsolete or otherwise unsuited to
the efficient operation of the System when other
property of equal value has been substituted
therefore, and, also, with the exception of the
Additional Bonds expressly permitted by this
ordinance to be issued, it will not encumber the Net
Revenues of the System unless such encumbrance is
made junior and subordinate to all of the provisions
of this ordinance.
(d) The City wi 11 cause to be rendered monthly
to each customer receiving electric services a
statement therefor and wi 11 not accept payment of
less than all of any statement so rendered, using its
power under existing ordinances and under all such
ordinances to become effective in the future to
enforce payment, to withhold service from such
delinquent customers and to enforce and authorize
reconnection charges.
(e) That the City will faithfully and
punctually perform all duties with respect to the
System required by the Constitution and laws of the
State of Texas, including the making and collecting
of reasonable and sufficient rates for services
supplied by the System, and the segregation and
application of the revenues of the System as required
by the provisions of this ordinance.
(f) No free service shall be provided by the
System and to the extent the City or its departments
or agencies utilize the services provided by the
System, payment shall be made therefor at rates
charged to others for similar service.
SECTION 26: Special Obligations. The Bonds are
special obligations of the City payable from the pledged Net
Revenues of the System and the registered owners thereof shall
never have the right to demand payment thereof out of funds
raised or to be raised by taxation.
SECTION 27: Bonds are Negotiable Instruments.
Each of the Bonds herein authorized shall be deemed and
construed to be a "Security", and as such a negotiable
instrument, within the meaning of Article 8 of the Uniform
Commercial Code.
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SECTION 28: Ordinance to Constitute Contract. The
provisions of the Ordinance shall constitute a contract between
the City and the registered owner or owners from time to time
of the Bonds and no change, variation or alteration of any kind
of the provisions of the Ordinance may be made, except as
permitted in this Section. The City may, without the consent
of or notice to any registered owner or owners, from time to
time and at any time, amend this Ordinance in any manner not
detrimental to the interests of the registered owner or owners
holding a majority in aggregate principal amount of the Bonds
then Outstanding affected thereby, amend, add to, or rescind
any of the provisions of this Ordinance; provided that, without
the consent of all registered owners of Outstanding Bonds, 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 Bonds, reduce the principal amount thereof,
the redemption price therefor, 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 Bonds, (2)
give any preference to any Bond over any other Bond, or (3)
reduce the aggregate principa 1 amount of Bonds required for
consent to any such amendment, addition or rescission.
The terms "Outstanding" and "outstanding" when used
in this Ordinance with respect to Bonds means, as of the date
of determination, all Bonds theretofore issued and delivered
under this Ordinance, except:
6l91D
(1) those Bonds theretofore cancelled
Paying Agent/Registrar or delivered to the
Agent/Registrar for cancellation;
by the
Paying
(2) those Bonds for which payment has been duly
provided by the City of the irrevocable deposit with
the Paying Agent/Registrar of money 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 Bonds 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;
( 3) those Bonds that have been
destroyed, lost or stolen and replacement
been registered and delivered in lieu
provided in Section 32 hereof; and
mutilated,
Bonds have
thereof as
( 4) those Bonds for which the payment of the
principal of, premium, if any, and interest on which
has been duly provided for by the City in accordance
with law.
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SECTION 29: Covenants to Maintain Tax-Exempt Status.
(a) Definitions. When used in this Section, the
following terms shall have the following meanings:
"Code" means the Internal Revenue Code
amended by all legislation, if any, enacted
the date of delivery of the Bonds to
purchaser(s).
of 1986, as
on or before
the initial
"Computation Date" has the meaning stated in Treas.
Reg. § 1.148-8T(b)(l).
"Gross Proceeds" has
Reg. § 1.148-8T(d).
"Investment" has the
Reg. § 1.148-8T(e).
"Nonpurpose Investment"
Gross Proceeds of the Bonds
acquired to carry out the
Bonds.
the meaning stated in Treas.
meaning stated in Treas.
means any Investment in which
are invested and which is not
governmental purpose of the
"Rebatable Arbitrage" has the meaning stated in
Treas. Reg. § 1.148-2T.
"Yield of"
(1) any Investment shall be computed in
accordance with Treas. Reg. §1.148-2T, and
( 2) the Bonds has the meaning stated in Treas.
Reg. § 1.148-3T.
(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 Bond to become includable in the gross income, as defined
in section 61 of the Code, of the owner thereof for federal
income tax purposes. 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 exemption from
federal income tax of the interest on any Bond, the City shall
comply with each of the specific covenants in this Section.
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(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 Bonds,
(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 Bonds and not use or permit the use of
such Gross Proceeds or any property acquired, constructed,
or improved with such Gross Proceeds (including all
contractual arrangements with terms different than those
applicable to the general public) 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
Bonds 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 Bonds
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.
(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 Bonds, directly or indirectly
invest Gross Proceeds of the Bonds 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 Bonds.
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(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 Bonds 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 Bonds 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,
(1) The City shall account for all Gross Proceeds of
the Bonds (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 Bonds until six years after the final Computation
Date. The City may, however, to the extent permitted by
section 148(f) of the Code and the regulations thereunder,
commingle Gross Proceeds of the Bonds 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. § 1.148-2T and rulings thereunder, the
Rebatable Arbitrage with respect to the Bonds. The City
shall maintain such calculations with the official
transcript of the proceedings relating to the issuance of
the Bonds unti 1 six years after the final Computation
Date.
(3) As additional consideration for the purchase of
the Bonds 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
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income of the owners thereof for federal income tax
purposes, the City sha 11 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-lT through 1.148-9T 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. § 1.148-1T(c)(2) and any penalty under Treas.
Reg. § 1.148-lT(c)(J)(ii)(B).
SECTION 30: Final Deposits; Governmental Obliga-
tions. (a) All or any of the Bonds shall be deemed to be paid,
retired and no longer outstanding within the meaning of this
Ordinance when payment of the principal of, and redemption
premium, if any, on such Bonds, plus interest thereon to the
due date thereof (whether such due date be by reason of
maturity, upon redemption, or other otherwise) either (i) shall
have been made or caused to be made in accordance with the
terms thereof (including the giving of any required notice of
redemption), or (ii) shall have been provided by irrevocably
depositing with, or making available to, the Paying Agent, in
trust and irrevocably set aside exclusively for such payment,
(1) money sufficient to make such payment or (2) Government
Obligations, certified by an independent public accounting firm
of national reputation, to mature as to principal and interest
in such amounts and at such times as will insure the
availability, without reinvestment, of sufficient money to make
such payment, and all necessary and proper fees, compensation
and expenses of the Paying Agent pertaining to the Bonds with
respect to which such deposit is made shall have been paid or
the payment thereof provided to the satisfaction of the Paying
Agent. At such time as a Bond sha 11 be deemed to be paid
hereunder, as aforesaid, it shall no longer be secured by or
entitled to the benefit of this Ordinance or a lien on and
pledge of the Net Revenues of the System, and shall be entitled
to payment solely from such money or Government Obligations.
The term "Government Obligations, • as used in this
Section, shall mean direct obligations of the United States of
America, including obligations the principal of and interest on
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which are unconditionally guaranteed by the United States of
America, which may be United States Treasury obligations such
as its State and Local Government Series, and which may be in
book-entry form.
(b) That any moneys so deposited with the Paying
Agent may at the direction of the City also be invested in
Government Obligations, maturing in the amounts and times as
hereinbefore set forth, and all income from all Government
Obligations in the hands of the Paying Agent pursuant to this
Section which is not required for the payment of the Bonds, the
redemption premium, if any, and interest thereon, with respect
to which such money has been so deposited, shall be turned over
to the City or deposited as directed by the City.
(c) That the City covenants that no deposit will be
made or accepted under clause (a)(ii) of this Section and no
use made of any such deposit which would cause the Bonds to be
treated as arbitrage bonds within the meaning of section 148 of
the Internal Revenue Code of 1986, as amended.
(d) That notwithstanding any other provisions of
this Ordinance, all money or Government Obligations set aside
and held in trust pursuant to the provisions of this Section
for the payment of the Bonds, the redemption premium, if any,
and interest thereon, shall be applied to and used for the
payment thereof, the redemption premium, if any, and interest
thereon and the income on such money or Government Obligations
shall not be considered to be income or revenues of the System.
(e) The provisions of this Section and this
Ordinance are subject to the applicable unclaimed property laws
of the State of Texas.
SECTION 31: Notices to Holders-Waiver. Wherever
this Ordinance provides for notice to Bondholders 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 Bondholder as it appears in the Security Register.
In any case where notice to Bondholders is given by
mail, neither the failure to mail such notice to any particular
Bondholders, nor any defect in any notice so mailed, shall
affect the sufficiency of such notice with respect to all other
Bonds. Where this Ordinance provides for notice in any manner,
such notice may be waived in writing by the Bondholder 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 Bond-
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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 32: Damaged, Mutilated, Lost, Stolen, or
Destroyed Bonds. (a) Replacement Bonds. In the event any
outstanding Bond is damaged, mutilated, lost, stolen, or
destroyed, the Paying Agent/Registrar shall cause to be
printed, executed and delivered, a new bond of the same
principal amount, Stated Maturity, and interest rate, as the
damaged, mutilated, lost, stolen or destroyed Bond, in
replacement for such Bond in the manner hereinafter provided.
(b) Application . for Replacement Bonds. Application
for replacement of damaged, mutilated, lost, stolen or
destroyed Bonds shall be made to the Paying Agent/Registrar.
In every case of loss, theft, or destruction of a Bond, the
applicant for a replacement bond shall furnish to the City and
to the Paying Agent/Registrar such security or indemnity as may
be required by them to save each of them harmless from any loss
or damage with respect thereto. Also, in every case of loss,
theft, or destruction of a Bond, the applicant shall furnish to
the City and to the Paying Agent/Registrar evidence to their
satisfaction of the loss, theft, or destruction of such Bond,
as the case may be. In every cause of damage or mutilation of
a Bond, the applicant shall surrender to the Paying
Agent/Registrar for cancellation the Bond so damaged or
mutilated.
(c) No Default Occurred. Notwithstanding the
foregoing provisions of this Section, in the event any such
Bond shall have matured, and no default has occurred which is
then continuing in the payment of the principal of or interest
on the Bond, the City may authorize the payment of the same
(without surrender thereof except in the case of a damaged or
mutilated Bond) instead of issuing replacement bond, provided
security or indemnity is furnished as above provided in this
Section.
(d) Charge for Issuing Replacement Bonds. Prior to
the issuance of any replacement bond, the Paying Agent/
Registrar shall charge the registered owner of such Bond with
all legal, printing and other expenses in connection
therewith. Every replacement bond issued pursuant to the
provisions of this Section by virtue of the fact that any Bond
is lost, stolen or destroyed shall constitute a contractual
obligation of the City whether or not the lost, stolen, or
destroyed Bond shall be found at any time, or be enforceable by
anyone, and shall be entitled to all the benefits of this
Ordinance equally and proportionately with any and all other
Bonds duly issued under this Ordinance •.
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(e) Authority for Issuing Replacement Bonds. In
accordance with Section 6 of Vernon's Ann. Tex. Civ. St.
Article 717k-6, this Section of the Ordinance shall constitute
authority for the issuance of any such replacement bond without
necessity of further action by the governing body of the City
or any other body or person, and the duty of the replacement of
such bonds is hereby authorized and imposed upon the Paying
Agent/Registrar, and the Paying Agent/Registrar shall
authenticate and deliver such bonds in the form and manner and
with the effect, as provided in the Ordinance for Bonds issued
in conversion and exchange for other Bonds.
SECTION 33: Cancellation. All Bonds surrendered
for payment, redemption, transfer, exchange, or replacement, 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 Bonds previously
certified or registered and delivered which the City may have
acquired in any manner whatsoever, and all Bonds so delivered
shall be promptly cancelled by the Paying Agent/Registrar. All
cancelled Bonds held by the Paying Agent/Registrar shall be
disposed of as directed by the City.
SECTION 34: Confirmation of Sale. That sale of
the Bonds to Prudential Securities Incorporated at the price of
par, accrued interest is hereby confirmed. Delivery of the
Bonds shall be made to said purchasers as soon as may be
practical after the adoption of this Ordinance, upon payment
therefor in accordance with the notice of sale.
SECTION 35: Approva 1 and Registration of Bonds. The
Mayor of said City is hereby authorized to have control of the
Bonds, including the Initial Bond(s), and all necessary records
and proceedings pertaining to said Bonds pending their delivery
and their investigation, examination and approval by the
Attorney General of the State of Texas. Upon registration of
the Initial Bond(s), said Comptroller of Public Accounts (or a
deputy designated in writing to act for said Comptroller) shall
manually sign the Comptroller's Registration Certificate
prescribed herein to be printed and endorsed on the Initial
Bond{s), and the seal of said Comptroller shall be impressed,
or printed, or lithographed on said Initial Bond{s).
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In addition, the Mayor, City Secretary, City Manager,
Assistant City Manager for Financial Services, and 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 Bonds, including a
certification as to facts, estimates, circumstances and
reasonable expectations pertaining to the use and expenditure
and investment of the proceeds of the Bonds as may be necessary
for the approval of the Attorney General, registration by the
Comptroller of Public Accounts and delivery of the Bonds 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 Bond(s)
to the purchasers.
SECTION 36: Approval of Official Statement. That
the form and substance of the Official Statement dated April 1,
1991, and any addenda, supplement or amendment thereto (the
•official Statement"), is hereby in all respects approved and
adopted by the City Council and the Mayor and the City
Secretary are hereby authorized and directed to execute the
same and deliver appropriate numbers of executed copies thereof
to the purchasers of the Bonds. Said Official Statement as
thus approved, executed and delivered, with such appropriate
variations as shall be approved by the City Manager and the
purchasers of the Bonds, may be used by said purchasers in the
public offering and sale thereof. The City Secretary is hereby
authorized and directed to include and maintain a copy of the
Official Statement and any addenda, supplement or amendment
thereto thus approved among the permanent records of this
meeting.
SECTION 37: Legal Opinion. That the purchasers'
obligation to accept delivery of the Bonds herein authorized is
subject to their being furnished a final legal op1n1on of
Messrs. Fulbright & Jaworksi, Attorneys, approving such Bonds
as to their validity, said opinion to be dated and delivered as
of the date of delivery and payment of such Bonds. Printing of
a true and correct copy of said opinion on the reverse side of
each of the Bonds, with an appropriate certificate pertaining
thereto, is hereby approved and authorized.
SECTION 38: CUSIP Numbers. CUSIP numbers may be
printed on the Bonds. It is expressly provided, however, that
the presence or absence of CUSIP numbers on the Bonds shall be
of no significance or effect as regards the legality thereof
and neither the City nor the attorneys approving said Bonds as
to legality are to be held responsible for CUSIP numbers
incorrectly printed on the Bonds.
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SECTION 39: 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 Bondholders, 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 Bondholders.
SECTION 40: 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 41: 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 42: Severability. If any provlSlOn 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 this governing body hereby declares
that this Ordinance would have been enacted without such
invalid provision.
SECTION 43: 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 44: Effective Date. This ordinance sha 11
take effect and be in force inunediately from and after its
passage on second and final reading and IT IS SO ORDAINED.
PASSED AND APPROVED ON FIRST READING this the 25th day of
April, 1991.
PASSED AND APPROVED ON SECOND AND FINAL READING, this 26th
day of April, 1991.
CITY OF LUBBOCK, TEXAS
ATTEST:
~
(City Seal)
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63980
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EXHIBIT A
PAYING AGENT/REGISTRAR AGREEMENT
THIS AGREEMENT entered into as of April 26, 1991 (this
"Agreement"), .by and between the City of Lubbock, Texas (the
"Issuer"), and Texas Commerce Bank National Association,
Lubbock, 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, Electric Light &
Power System Revenue Bonds, Series 1991" (the "Securities") in
the aggregate principal amount of $7,500,000, 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 May 30, 1991; 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
sha 11 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.
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:
6 4 7 S D
"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.
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"Fiscal Year" means the fiscal year of the Issuer,
ending September 30.
"Holder" and "Security Holder" each means the Person
in whose name a Security is registered in the Security
Register.
"Issuer Request" and "Issuer Order" means a written
request or order signed in the name of the Issuer by the
Mayor, City Secretary, City Manager, or Assistant City
Manager for Financial Services, any one or more of said
officials, and delivered to the Bank.
"Legal Holiday•• means a day on which the Bank is
required or authorized to be closed.
"Person" means any individual, corporation,
partnership, joint venture, association, joint stock
company, trust, unincorporated organization, or
government, or any agency or political subdivision of a
government.
"Predecessor Securities" of any particular Security
means every previous Security evidencing all or a portion
of the same obligation as that evidenced by such
particular Security (and, for the purposes of this
definition, any mutilated, lost, destroyed, or stolen
Security for which a replacement Security has been
registered and delivered in lieu thereof pursuant to
Section 4.06 hereof and the Resolution).
"Redemption Date" when used with respect to any Bond
to be redeemed means the date fixed for such redemption
pursuant to the terms of the Bond Resolution.
"Responsible Officer" when used with respect to the
Bank means the Chairman or Vice-Chairman of the Board of
Directors, the Chairman or Vice-Chairman of the Executive
Cornmi ttee 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 re-gister maintained by
the Bank on behalf of the Issuer providing for the
registration and transfer of Securities.
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"Stated Maturity" means the date specified in the
Bond Resolution the principal of a Security is scheduled
to be due and payable.
Section 2.02. Other Definitions.
The terms "Bank," "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
principa 1 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.
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ARTICLE FOUR
REGISTRAR
Section 4. 01. Security Register-Transfers and Exchanges.
The Bank agrees to keep and maintain for and on behalf of
the Issuer at the Bank Office books and records (herein
sometimes referred to as the "Security Register") for recording
the names and addresses of the Holders of the Securities, the
transfer, exchange, and replacement of the Securities and the
payment of the principal of and interest on the Securities to
the Holders and containing such other information as may be
reasonably required by the Issuer and subject to such
reasonable regulations as the Issuer and the Bank may
prescribe. All transfers, exchanges, and replacements of
Securities shall be noted in the Security Register.
Every Security surrendered for transfer or exchange shall
be duly endorsed or be accompanied by a written instrument of
transfer, the signature on which has been guaranteed by an
officer of a federal or state bank or a member of the National
Association of Securities Dealers, such written instrument to
be in a form satisfactory to the Bank and duly executed by the
Holder thereof or his agent duly authorized in writing.
The Bank may request
feels necessary to effect
exchange of the Securities.
any supporting documentation
a re-registration, transfer,
it
or
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.
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Section 4.03. Form of the Security Register.
The Bank, as Registrar, will maintain the Security
Register relating to the registration, payment, transfer, and
exchange of the Securities in accordance with the Bank's
general practices and procedures in effect from time to time.
The Bank shall not be obligated to maintain such Security
Register in any form other than those which the Bank has
currently available and currently utilizes at the time.
The Security Register may be maintained in written form
or in any other form capable of being converted into written
form within a reasonable time.
Section 4.04. List of Security Holders.
The Bank will provide the Issuer at any time requested by
the Issuer, upon payment of the required fee, a copy of the
information contained in the Security Register. The Issuer may
also inspect the information contained in the Security Register
at any time the Bank is customarily open for business, provided
that reasonable time is allowed the Bank to provide an
up-to-date listing or to convert the information into written
form.
The Bank will not release or disclose the contents of the
Security Register to any person other than to, or at the
written request of, an authorized officer or employee of the
Issuer, except upon receipt of a court order or as otherwise
required by law. Upon receipt of a court order and prior to
the release or disclosure of the contents of the Security
Register, the Bank will notify the Issuer so that the Issuer
may contest the court order or such release or disclosure of
the contents of the Security Register.
Section 4.05. Return of Cancelled Securities.
The Bank will, at such reasonable intervals as it
determines, surrender to the Issuer, Securities in lieu o~
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 32 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.
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In case any Security shall be mutilated, destroyed, lost,
or stolen, the Bank, in its discretion, may execute and deliver
a replacement Security of like form and tenor, and in the same
denomination and bearing a number not contemporaneously
outstanding, in exchange and substitution for such mutilated
security, or in lieu of and in substitution for such destroyed,
lost, or stolen Security, only upon (i) the filing by the
Holder thereof with the Bank of evidence satisfactory to the
Bank of the destruction, loss, or theft of such Security, and
of the authenticity of the ownership thereof and (ii) the
furnishing to the Bank of indemnification in an amount
satisfactory to hold the Issuer and the Bank harmless. All
expenses and charges associated with such indemnity and with
the preparation, execution, and delivery of a replacement
Security shall be borne by the Holder of the Security
mutilated, destroyed, lost, or stolen.
Section 4.07. Transaction Information to the Issuer.
The Bank will, within a reasonable time after receipt of
written request from the Issuer, furnish the Issuer information
as to the Securities it has paid pursuant to Section 3.01
hereof, Securities it has delivered upon the transfer or
exchange of any Securities pursuant to Section 4.01 hereof, and
Securities it has delivered in exchange for or in lieu of
mutilated, destroyed, lost, or stolen Securities pursuant to
Section 4.06 hereof.
ARTICLE FIVE
THE BANK
Section 5.01. Duties of the Bank.
The Bank undertakes to perform the duties
herein and agrees to use reasonable care in the
thereof.
Section 5.02. Reliance on the Documents, Etc.
set forth
performance
(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.
-7-64750
(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 sha 11 be protected in acting
or refraining from acting upon any resolution, certificate,
statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, note, security, or other paper
or document believed by it to be genuine and to have been
signed or presented by the proper party or parties. Without
limiting the generality of the foregoing statement, the Bank
need not examine the ownership of any Securities, but is
protected in acting upon receipt of Securities containing an
endorsement or instruction of transfer or power of transfer
which appears on its face to be signed by the Holder or an
agent of the Holder. The Bank shall not be bound to make any
investigation into the facts or matters stated in a resolution,
certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, note, security, or
other paper or document supplied by Issuer.
(e) The Bank may consult with counsel, and the written
advice of such counsel or any opinion of counsel shall be full
and complete authorization and protection with respect to any
action taken, suffered, or omitted by it hereunder in good
faith and in reliance thereon.
(f) The Bank may exercise any of the powers hereunder
and perform any duties hereunder either directly or by or
through agents or attorneys of the Bank.
Section 5.03. Recitals of the Issuer.
The recitals contained herein with respect to the
and in the Securities shall be taken as the statements
Issuer, and the Bank assumes no responsiblity for
correctness.
Issuer
of the
their
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.
-8-6"7SD
Section 5.05. M~o~n~e~y~s~H~e~l~d~b~y~---t~h~e~~B~a~n~k~------~S~e~p~a~r~a~t~e
Account/Collateralization.
A separate account shall at all times be kept and
maintained by the Bank for the receipt, safekeeping and
disbursement of moneys received from the Issuer hereunder for
the payment of the Securities, and money deposited to the
credit of such account until paid to the Holders of the
Securities shall be continuously collaterialized by securities
or obligations which qualify and are eligible under the laws of
the State of Texas to secure and be pledged as collateral for
accounts of the Issuer to the extent such money is not insured
by the Federal Deposit Insurance Corporation. Payments made
from such account shall be made by check drawn on such account
unless the owner of such Securities shall, at its own expense
and risk, request such other medium of payment.
The Bank shall be under no liability for interest on any
money received by it hereunder.
Subject to the applicable unclaimed property laws of the
State of Texas, any money deposited with the Bank for the
payment of the principal, premium (if any), or interest on any
Security and remaining unclaimed for four years after final
maturity of the Security has become due and payable will be
paid by the Bank to the Issuer, and the Holder of such
Security shall thereafter look only to the Issuer for payment
thereof, and all liability of the Bank with respect to such
moneys shall thereupon cease.
Section 5.06. Indemnification.
To the extent permitted by law, the Issuer agrees to
indemnify the Bank for, and hold it harmless against, any loss,
liability, or expense incurred without negligence or bad faith
on its part, arising out of or in connection with its
acceptance or administration of its duties hereunder, including
the cost and expense against any claim or liability in
connection with the exercise or performance of any of its
powers or duties under this Agreement.
Section 5.07. Interpleader.
The Issuer and the Bank agree that the Bank may seek
adjudication of any adverse claim, demand, or controversy over
its person as well as funds on deposit, in either a Federal or
State District Court located in the state and county where
either the Bank Office or the administrative office of the
Issuer is located, and agree that service of process by
certified or registered mail, return receipt requested, to the
-9-,4750
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address referred to in Sect ion 6. 03 of this Agreement sha 11
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. DT Services.
It is hereby represented and warranted that, in the event
the Securities are otherwise qualified and accepted for
"Depository Trust Company" services or equivalent depository
trust services by other organizations, the Bank has the
capability and, to the extent within its control, will comply
with the "Operational Arrangements", effective August 1, 1987,
which establishes requirements for securities to be eligible
for such type depository trust services, including, but not
1 imi ted to, requirements for the time 1 iness of payments and
funds availability, transfer turnaround time, and notification
of redemptions and calls.
ARTICLE SIX
MISCELLANEOUS PROVISIONS
Section 6.01. Amendment.
This Agreement may be amended only by an agreement in
writing signed by both of the parties hereto.
Section 6.02. Assignment.
This Agreement may not be assigned by either party
without the prior written consent of the other.
Section 6.03. Notices.
Any request, demand, authorization, direction, notice,
consent, waiver, or other document provided or permitted hereby
to be given or furnished to. the Issuer or the Bank shall be
mailed or delivered to the Issuer or the Bank, respectively, at
the addresses shown on page 12 of this Agreement.
Section 6.04. Effect of Headings.
The Article and Section headings herein are for
convenience only and shall not affect the construction hereof.
Section 6.05. Successors and Assigns.
All covenants and agreements herein by the Issuer shall
bind its successors and assigns, whether so expressed or not.
-10-
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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 6.08. Entire Agreement.
This Agreement and the Bond Resolution constitute the
entire agreement between the parties hereto relative to the
Bank acting as Paying Agent/Registrar and if any conflict
exists between this Agreement and the Bond Resolution, the Bond
Resolution shall govern.
Section 6.09. Counterparts.
This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and all
of which shall constitute one and the same Agreement.
Section 6.10. Termination.
This Agreement will terminate (i) on the date of final
payment of the principal of and interest on the Securities to
the Holders thereof or (ii) may be earlier terminated by either
party upon sixty (60) days written notice; provided, however,
an early termination of this Agreement by either party shall
not be effective until (a) a successor Paying Agent/Registrar
has been appointed by the Issuer and such appointment accepted
and (b) notice given to the Holders of the Securities of the
appointment of a successor Paying Agent/Registrar.
Furthermore, the Bank and the Issuer mutually agree that the
effective date of an early termination of this Agreement shall
not occur at any time which would disrupt, delay, or otherwise
adversely affect the payment of the Securities.
Upon an early termination of this Agreement, the Bank
agrees to promptly transfer and deliver the Security Register
(or a copy thereof), together with other pertinent books and
records relating to the Securities, to the successor Paying
Agent/Registrar designated and appointed by the Issuer.
-11-
6"7SD
-
The provisions of Section 1.02 and of Article Five shall
survive and remain in full force and effect following the
termination of this Agreement.
Section 6.11. Governing Law.
This Agreement shall be construed in accordance with and
governed by the laws of the State of Texas.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the day and year first above written.
[SEAL]
Attest:
City Secretary
(SEAL)
ATTEST:
Title:
CITY OF LUBBOCK, TEXAS
BY
Mayor
Address:
P. o. Box 2000
Lubbock, Texas 79457
TEXAS COMMERCE BANK
NATIONAL ASSOCIATION
Lubbock, Texas
BY
Mailing Address:
P. 0. Box 841
Lubbock, Texas 79408
Delivery Address:
1314 Avenue K
Lubbock, Texas 79401
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-.
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..
The Depository Trust Company
55 Water Street
New York, NY 10041
Attention: General Counsel's Office
Letter of Representations
TO BE COMPlETED BY ISSUER AND AGENT. IF ANY
City of Lubbock, Texas
~ .. me' I)( ($$\IC!I'
Texas Commerce Bank National Association
S.am.e of Ae;enl. if .any
Re: $7,500,000 "City of Lubbock, Texas, Electric Light and
Power System Revenue Bonds, Series 199111
Gentlemen: (Issue Oescllptionl
EXHIBIT B
April 26, 1991
(Date)
The purpose of this letter is to set out certain matters relating to the abo\·e·referenced Bonds (the "Bonds~). National Association
Texas Commerce Bank/ is acting as Trustee, Paying Agent, Fiscal Agent, or other Agent of the Issuer \O.ilh
(the ·Agent1
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 as of May 15 , 19 91 (the "Document(s)·).
-----------is distributing the Bonds through The Depository Trust Company ("OTC").
(the "UndetWrttet1
To induce DTC to accept the Bonds as eligible for deposit at DTC and act in accordance with its Rules with respect
to the Bonds, the Issuer and the Agent, if any, make the following representations to DTC:
1. Subsequent to Closing on the Bonds on May 30 • 19 91 • there shall be deposited with DTC
one Bond certificate in registered form registered in the name of DTC's nominee, Cede &: Co., for each stated maturity
of the Bonds in the face 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 $100,000,000, one
certificate wiiJ be issued with respect to each $100,000,000 of principal amount and an additional certificate will be
issued with respect to any remaining principal amount. Each $100,000,000 Bond certificate shall bear the follo\O.ing
legend:
"'Unless this certificate is presented by an authorized representative of The Depository Trust Company to the
Issuer or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name
of Cede &: Co. or such other name as requested by an authorized representative of The Depository Trust Company and
any payment is made to Cede &: Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGRJL since the registered owner hereof, Cede &: Co .• has an interest
herein."'
2. In the ~v~nt of any solicit.1tion of consents from and voting by hold~rs of the Bonds, the Issuer or Agent, shall
6 tablish a record date for such purposes and give DTC notice of such r«ord d.lh.• not less than 15 calendar days in
.:~dvance of such record d,lt~ to the extent possible.
3. (n the event of a redemption or any other similar transaction resulting in retirement of all Bonds outstanding or a
reduction in .lggregate principal amount of Bonds outstanding ("full or partial redemption") or an advance refunding
of all or part of the Bonds outstanding. the (ssuer or Agent, shall give DTC notice of such event 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 the proceeds are
deposited in escrow.
4. In the event of a partial redemption or an advance refunding of part of the Bonds outstanding, the Issuer or Agent
shall send DTC a notice specifying: 1) the amount of the redemption or refundingi 2} in the case of a refunding, the
maturity date(s} established under the refunding; and 3} the date such notice is to be mailed to Bondholders or
published ("the Publication Date"}. Such notice shall be sent to DTC by a secure means (e.g., legible facsimile
transmission, registered or certified mail, overnight express 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. The
Issuer or Agent wilt forward such notice either in a separate secure transmission for each CUSIP number or in a secure
transmission for multiple CUSIP numbers which includes a manifest or list of each CUSIP submitted in that
transmission. <The Issuer or Agent sending such notice shaiJ have a method to verify subsequently the use of such
means and timeliness of the notice.) The Publication Date shall be not Jess than 30 days nor more than 60 days prior to
the redemption date or, in the case of an advance refunding, the date the proceeds are deposited in escrow.
5. In the event of an invitation to tender the Bonds, notice to Bondholders by the Issuer or Agent, specifying the
terms of the tender and the date such notice is to be maiJed to Bondholders or published ("the Publication Date") shall
be sent to DTC by a secure means (e.g .• legible facsimile transmission, registered or certified mail, overnight express
delivery) in a timely manner designed to assure that such notice is in DTCs possession no later than the dose of
business on the business day before the Publication Date. (The Issuer or Agent sending such notice shalt have a
method to verify subsequently the use of such means and timeliness of the notice.)
6. All notices and payment ad\'ices sent to DTC shall contain the CUSIP number of the Bonds.
7. Notices to DTC by facsimile transmission shall be sent to DTC's Call Notification Department at (516} 227-4039 or
(516) 227-4190. The Agent shall confirm DTC's receipt of such facsimile transmission by telephoning the Call
Notification Department at (516) 227-1070. Notices to DTC by mail or any other means shall be sent to:
The Depository Trust Company
Call Notification Department
Muni Reorganization Manager
711 Stewart Av~nue
Garden City, NY 11530
8. Interest payments shall be received by Cede&: Co., as nominee of DTC, or its registered assigns in next-day funds
on each payment date (or the equivalent in accordance with existing arrangements between the Issuer or Agent and
OTC). Such payments shall be made payable to the order of Cede&: Co.
9. Payments of principal shall be received by Cede &: Co., as nominee of DTC, or its registered assigns in next-day
funds on each payment date. Principal payments shalt be made payable to the order of Cede &: Co., and shall be
addressed as foltows:
The Depository Trust Company
Muni Redemption Department
55 Water Street-50th Aoor
New York. NY 10041
Attention: Collection Supervisor
10. DTC may direct the Issuer or Agent to use any other telephone number for facsimile transmission, address. or
department of DTC as the number, address or department to which payments of interest or principal or notices may be sent.
11. In the event of a redemption, acceleration or any other similar transaction (e.g., tenders made and accepted in
response to the Issuer's or Agent's invitation) necessitating a reduction in aggregate principal amount of Bonds
outstanding or an advance refunding of part of the Bonds outstanding, DTC, in its discretion, (a) may request the
Issuer or Agent to issue and authenticate a new Bond certificate or (b) shall make an appropriate notation on the Bond
certificate indicating the date and amounts of such reduction in principal, except in the case of final maturity, in which
case the certificate must be presented to the Issuer or Agent prior to payment.
12. In the event the Issuer determines p~rsuant to the Document(s) that beneficial owners of the Bonds shall be able
to obtain certificated Bonds, the Issuer or Agent shall notify DTC of the availability of Bond certificates and shall issue,
transfer and exchange Bond certificates in appropriate amounts as required by DTC and others.
13. DTC may determine to discontinue providing its service as securities depository with respect to the Bonds at any
time by giving reasonable notice to the Issue or Agent (at which time DTC will confirm with the Issuer or Agent the
aggregate principal amount of the Bonds outstanding) and discharging its responsibilities with respect thereto under
applicable law. Under such circumstances, whenever DTC requests the Issuer and the Agent to do so, the Agent and
the Issuer will cooperate with DTC in taking appropriate action to make available one or more separate certificates
evidencing the Bonds to any DTC Participant having Bonds credited to its DTC account.
14. Nothing herein shall be deemed to require the Agent to advance funds on behalf of the Issuer.
,... Notes:
a. If there is no organization acting as Agent for the Issuer, and
an obl'.gations in this letler of Representations are to be assumed
solely by the Issuer. references to such Agent may be inked out.
b. Neither OTC nor (Cede & Co.) provides consents with respect
to anr security. Under its usual procedures. DTC mails an
Omnibus Proxy 10 lhe tssuer as soon as possible alter the record
date. "The Omnibus Proxy assigns Cede & Co.'s voting rights to
those Participants having the security credited to their accounts on
the record date (identified in a listing attached to the Omnibus
Proxy). The requirement to advise DTC of the recocd date for the
soflcitation of consents is set fOI"th in paragraph 2 of the letter.
c. Under Rules of the Municipal Securities Rulemaking Board
relating 1o •good delivery: a municipal securities dealer must be
able to determine the date that a notice of partial can or of an
advance refunding of pan of an issue is published (the "Publication
Oate1. The estabfiShment of such a Pubrtc:ation Date is addressed
in paragraph .C of the letter.
Received and Accepted:
THE DEPOSITORY TRUST COMPANY
Bro--------------------------..... CAI.Ithorized Off~~;U't Sisnature)
cc: Underwriter
.. Underwriter's Counsel
Very truly yours,
Texas Commerce Bank National Association
tAulhonzN Otficcor"s SigNiuret
City of Lubbock, Texas
In fssun-1
(Authorizrd Otli«r's SignAIUft")
Mayor
<lillcl
SCHEDULE A
.,..., Year of Principal Interest
Stated Maturity Amount Rate
1992 $375,000 \
1993 375,000 -\
1994 375,000 -\
1995 375,000 \
1996 375,000 \
1997 375,000 -\
1998 375,000 -\
1999 375,000 -\
2000 375,000 -\
2001 375,000 -\
2002 375,000 -\
2003 375,000 -\
2004 375,000 -\
2005 375,000 -\
2006 375,000 -\
2007 375,000 -\
2008 375,000 --\
2009 375,000 --\ --
2010 375,000 \
2011 375,000 -\ -
·'
. ,....
PAYING AGENT/REGISTRAR AGREEMENT
THIS AGREEMENT entered into as of April 26, 1991 (this
''Agreement"), by and between the City of Lubbock, Texas (the
"Issuer"), and Texas Commerce Bank -National Association,
Lubbock, 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, Electric Light &
i?ower System Revenue Bonds, Series 1991" (the "Securities") in
the aggregate principal amount of $7,500,000, 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 May 30, 1991; 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.
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:
1i475D
"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.
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647SD
"Fiscal Year" means the fiscal year of the Issuer,
ending September 30.
"Holder" and "Security Holder" each means the Person
in whose name a Security is registered in the Security
Register.
"Issuer Request" and "Issuer Order" means a written
request or order signed in the name of the Issuer by the
Mayor, City Secretary, City Manager, or Assistant City
Manager for Financial Services, any one or more of said
officials, and delivered to the Bank.
"Legal Holiday" means a day on which the Bank is
required or authorized to be closed.
"Person" means any individual, corporation,
partnership, joint venture, association, joint stock
company, trust, unincorporated organization, or
government, or any agency or political subdivision of a
government.
"Predecessor Securities" of any particular Security
means every previous Security evidencing all or a portion
of the same obligation as that evidenced by such
particular Security (and, for the purposes of this
definition, any mutilated, lost, destroyed, or stolen
Security for which a replacement Security has been
registered and delivered in lieu thereof pursuant to
Section 4.06 hereof and the Resolution).
"Redemption Date" when used with respect to any Bond
to be redeemed means the date fixed for such redemption
pursuant to the terms of the Bond Resolution.
"Responsible Officer" when used with respect to the
Bank means the Chairman or Vice-Chairman of the Board of
Directors, the Chairman or Vice-Chairman of the Executive
Committee of the Board of Directors, the President, any
Vice President, the Secretary, any Assistant Secretary,
the Treasurer, any Assistant Treasurer, the Cashier, any
Assistant Cashier, any Trust Officer or Assistant Trust
Officer, or any other officer of the Bank customarily
performing functions similar to those performed by any of
the above designated officers and also means, with
respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of his
knowledge of and familiarity with the particular subject.
"Security Register" means a register maintained by
the Bank on behalf of the Issuer providing for the
registration and transfer of Securities.
-3-
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"Stated Maturity" means the date specified in the
Bond Resolution the principal of a Security is scheduled
to be due and payable.
Section 2.02. Other Definitions.
The terms "Bank," "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. 05 hereof, sent by United States mai 1, 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.
-4-64750
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ARTICLE FOUR
REGISTRAR
Section 4.01. Security Register-Transfers and Exchanges.
The Bank agrees to keep and maintain for and on behalf of
the Issuer at the Bank Office books and records (herein
sometimes referred to as the "Security Register") for recording
the names and addresses of the Holders of the Securities, the
transfer, exchange, and replacement of the Securities and the
payment of the principal of and interest on the Securities to
the Holders and containing such other information as may be
reasonably required by the Issuer and subject to such
reasonable regulations as the Issuer and the Bank may
prescribe. All transfers, exchanges, and replacements of
Securities shall be noted in the Security Register.
Every Security surrendered for transfer or exchange shall
be duly endorsed or be accompanied by a written instrument of
transfer, the signature on which has been guaranteed by an
officer of a federal or state bank or a member of the National
Association of Securities Dealers, such written instrument to
be in a form satisfactory to the Bank and duly executed by the
Holder thereof or his agent duly authorized in writing.
The Bank may request
feels necessary to effect
exchange of the Securities.
any supporting documentation
a re-registration, transfer,
it
or
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 I 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 I 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.
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Section 4.03. Form of the Security Register.
The Bank, as Registrar, will maintain the Security
Register relating to the registration, payment, transfer, and
exchange of the Securities in accordance with the Bank's
general practices and procedures in effect from time to time.
The Bank shall not be obligated to maintain such Security
Register in any form other than those which the Bank has
currently available and currently utilizes at the time.
The Security Register may be maintained in written form
or in any other form capable of being converted into written
form within a reasonable time.
Section 4.04. List of Security Holders.
The Bank will provide the Issuer at any time requested by
the Issuer, upon payment of the required fee, a copy of the
information contained in the Security Register. The Issuer may
also inspect the information contained in the Security Register
at any time the Bank is customarily open for business, provided
that reasonable time is allowed the Bank to provide an
up-to-date listing or to convert the information into written
form.
The Bank will not release or disclose the contents of the
Security Register to any person other than to, or at the
written request of, an authorized officer or employee of the
Issuer, except upon receipt of a court order or as otherwise
required by law. Upon receipt of a court order and prior to
the release or disclosure of the contents of the Security
Register, the Bank will notify the Issuer so that the Issuer
may contest the court order or such release or disclosure of
the contents of the Security Register.
Section 4.05. Return of Cancelled Securities.
The Bank will, at such reasonable intervals as it
determines, surrender to the Issuer, Securities in lieu of
which or in exchange for which other Securities have been
issued, or which have been paid.
Section 4.06. Mutilated, Destroyed,
Securities.
Lost, or Stolen
The Issuer hereby instructs the Bank, subject to the
provisions of Section 32 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.
-6-
6<47SD
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In case any Security shall be mutilated, destroyed, lost,
or stolen, the Bank, in its discretion, may execute and deliver
a replacement Security of like form and tenor, and in the same
denomination and bearing a number not contemporaneously
outstanding, in exchange and substitution for such mutilated
Security, or in lieu of and in substitution for such destroyed,
lost, or stolen Security, only upon (i) the filing by the
Holder thereof with the Bank of evidence satisfactory to the
Bank of the destruction, loss, or theft of such Security, and
of the authenticity of the ownership thereof and (ii) the
furnishing to the Bank of indemnification in an amount
satisfactory to hold the Issuer and the Bank harmless. All
expenses and charges associated with such indemnity and with
the preparation, execution, and delivery of a replacement
Security shall be borne by the Holder of the Security
mutilated, destroyed, lost, or stolen.
Section 4.07. Transaction Information to the Issuer.
The Bank will, within a reasonable time after receipt of
written request from the Issuer, furnish the Issuer information
as to the Securities it has paid pursuant to Section 3.01
hereof, Securities it has delivered upon the transfer or
exchange of any Securities pursuant to Section 4.01 hereof, and
Securities it has delivered in exchange for or in lieu of
mutilated, destroyed, lost, or stolen Securities pursuant to
Section 4.06 hereof.
ARTICLE FIVE
THE BANK
Section 5.01. Duties of the Bank.
The Bank undertakes to perform the duties set forth
herein and agrees to use reasonable care in the performance
thereof.
Section 5.02. Reliance on the Documents, Etc.
(a) The Bank may conclusively rely, as to the truth of
the statements and correctness of the opinions expressed
therein, on certificates or opinions furnished to the Bank.
(b) The Bank shall not be liable for any error of
judgment made in good faith by a Responsible Officer, unless it
shall be proved that the Bank was negligent in ascertaining the
pertinent facts.
-7-64750
(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 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
and in the Securities shall be taken as the statements
Issuer, and the Bank assumes no responsiblity for
correctness.
Issuer
of the
their
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.
-8-
647$0
-
Section 5.05. M~o~n~e~y~s~H~e~l~d~b~y~--~t~h~e~B~a~n~k~------~S~e~p~a~r~a~t=e
Account/Collateralization.
A separate account shall at all times be kept and
maintained by the Bank for the receipt, safekeeping and
disbursement of moneys received from the Issuer hereunder for
the payment of the Securities, and money deposited to the
credit of such account until paid to the Holders of the
Securities shall be continuously collaterialized by securities
or obligations which qualify and are eligible under the laws of
the State of Texas to secure and be pledged as collateral for
accounts of the Issuer to the extent such money is not insured
by the Federal Deposit Insurance Corporation. Payments made
from such account shall be made by check drawn on such account
unless the owner of such Securities shall, at its own expense
and risk, request such other medium of payment.
The Bank shall be under no liability for interest on any
money received by it hereunder.
Subject to the applicable unclaimed property laws of the
State of Texas, any money deposited with the Bank for the
payment of the principal, premium (if any), or interest on any
Security and remaining unclaimed for four years after final
maturity of the Security has become due and payable will be
paid by the Bank to the Issuer, and the Holder of such
Security shall thereafter look only to the Issuer for payment
thereof, and all liability of the Bank with respect to such
moneys shall thereupon cease.
Section 5.06. Indemnification.
To the extent permitted by law, the Issuer agrees to
indemnify the Bank for, and hold it harmless against, any loss,
liability, or expense incurred without negligence or bad faith
on its part, arising out of or in connection with its
acceptance or administration of its duties hereunder, including
the cost and expense against any claim or liability in
connection with the exercise or performance of any of its
powers or duties under this Agreement.
Section 5.07. Interpleader.
The Issuer and the Bank agree that the Bank may seek
adjudication of any adverse claim, demand, or controversy over
its person as well as funds on deposit, in either a Federal or
State District Court located in the state and county where
either the Bank Office or the administrative office of the
Issuer is located, and agree that service of process by
certified or registered mail, return receipt requested, to the
-9-
fi<47SD
-
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. DT Services.
It is hereby represented and warranted that, in the event
the Securities are otherwise qualified and accepted for
"Depository Trust Company" services or equivalent depository
trust services by other organizations, the Bank has the
capability and, to the extent within its control, will comply
with the "Operational Arrangements", effective August 1, 19871
which establishes requirements for securities to be eligible
for such type depository trust services I including I but not
limited to, requirements for the timeliness of payments and
funds availability, transfer turnaround time, and notification
of redemptions and calls.
ARTICLE SIX
MISCELLANEOUS PROVISIONS
Section 6.01. Amendment.
This Agreement may be amended only by an agreement in
writing signed by both of the parties hereto.
Section 6.02. Assignment.
This Agreement may not be assigned by either party
without the prior written consent of the other.
Section 6.03. Notices.
Any request, demand, authorization, direction, notice,
consent, waiver, or other document provided or permitted hereby
to be given or furnished to the Issuer or the Bank shall be
mailed or delivered to the !~suer 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.
-10-
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..
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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 6.08. Entire Agreement.
This Agreement and the Bond Resolution constitute the
entire agreement between the parties hereto relative to the
Bank acting as Paying Agent/Registrar and if any conflict
exists between this Agreement and the Bond Resolution, the Bond
Resolution shall govern.
Section 6.09. Counterparts.
This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and all
of which shall constitute one and the same Agreement.
Section 6.10. Termination.
This Agreement will terminate (i) on the date of final
payment of the principal of and interest on the Securities to
the Holders thereof or (ii) may be earlier terminated by either
party upon sixty ( 60) days written notice; provided, however,
an early termination of this Agreement by either party shall
not be effective until (a) a successor Paying Agent/Registrar
has been appointed by the Issuer and such appointment accepted
and (b) notice given to the Holders of the Securities of the
appointment of a successor Paying Agent/Registrar.
Furthermore, the Bank and the Issuer mutually agree that the
effective date of an early termination of this Agreement shall
not occur at any time which would disrupt, delay, or otherwise
adversely affect the payment of the Securities.
Upon an early termination of this Agreement, the Bank
agrees to promptly transfer and deliver the Security Register
(or a copy thereof), together with other pertinent books and
records relating to the Securities, to the successor Paying
Agent/Registrar designated and appointed by the Issuer.
-11-
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The provisions of Section 1.02 and of Article Five shall
survive and remain in full force and effect following the
termination of this Agreement.
Section 6.11. Governing Law.
This Agreement shall be construed in accordance with and
governed by the laws of the State of Texas.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the day and year first above written.
[SEAlr]
-..... '·""'-
(SEAL)
ATTEST:
k.~ bi .•
& TRUST OFFIC~R
647SD
~~~----.. -------·-
CITY OF LUBBOCK, TEXAS
BY g: c.&;<~ .!Mayor ~7
Address:
P. o. Box 2000
Lubbock, Texas 79457
TEXAS COMMERCE BANK
NATIONAL ASSOCIATION
Lubbock, Texas
Mailing Address:
P. o. Box 841
Lubbock, Texas 79408
Delivery Address:
1314 Avenue K
Lubbock, Texas 79401
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. .
~ .
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"B" PAYING AGENT SERVICES PROPOSAL RESPONSE FORM
FEE SCHEDULE
BOND REGISTRARt TRANSFER AGENTt AND
PAYING AGENT-BOOK-ENTRY-ONLY
BANK NAME: TEXAS COMMERCE BANK NA LUBBOCK
OFFICIAL SUBMITTING:
OFFICIAL SIGNATURE:
TITLE OF OFFICIAL: ASSISTANT VP & TRUST OFFICER
TELEPHONE NUMBER: (806) 742-8511
ACCOUNT MAINTENANCE Per Accunt
Annual minimum
INTEREST PAYMENTS
Payment of Interest per interest payment date
Each additional ck over 50
PRINCIPAL PAYMENTS
Payment of registered bond at maturity or by call
OTHER ITEMIZED SERVICES, AS SUGGESTED BY BIDDING BANK:
Acceptance
Issuance of 1099s on taxable issue
Annual m~n~mum for up to 100
$ 1.00
100.00
$ 75.00
1.00
$ 5.00
$500.00
$100.00
-
-.
The Depository Trust Company
55 Water Street
New York, NY 10041
Attention: General Counsel's Office
Letter of Representations
TO BE COMPlETED BY ISSUER AND AGENT, IF ANY
City of Lubbock, Texas
~ .. """ Q#lss~
Texas Commerce Bank National Association
:-.:.amor o.d Agt'nl. if Any
Re: $7,500,000 "City of Lubbock, Texas, Electric Light and
Power System Revenue Bonds, Series 1991"
Gentlemen:
April 26, 199
(0a1tl
The purpose of this tetter is to set out certain matters relating to the abo\·e·referenced Bonds (the "Bonds''). Wational Association
Texas Commerce Bank/ is acting as Trustee, Paying Agent, Fiscal Agent, or other Agent of the Issuer \\ith
(the • Agent1
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 as of May 15 , 19 91 (the "Document(s)").
Incorporated Prudential Securities I is distributing the Bonds through The Depository Trust Company ("DTC'').
(the "UodeiWI'•ter1
To induce DTC to accept the Bonds as eligible for deposit at DTC and act in accordance with its Rules with respect
to the Bonds, the Issuer and the Agent, if any, make the following representations to OTC:
1. Subsequent to Closing on the Bonds on May 2L__, 19 91 , there shall be deposited with DTC
one Bond certificate in registered form registered in the name of DTC's nominee, Cede&: Co., for each stated maturity
of the Bonds in the face 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 $100,000,000, one
certificate will be issued with respect to each $100,000,000 of principal amount and an additional certificate will be
issued with respect to any remaining principal amount. Each $100,000,000 Bond certificate shall bear the following
legend:
"1Jnless this certificate is presented by an authorized representative of The Depository Trust Company to the
Issuer or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name
of Cede&: Co. or such other name as requested by an authorized representative of The Depository Trust Company and
any payment ts made to Cede&: Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof, Cede&: Co., has an interest
herein.'"
-
2. (n the event of .my solicitation of consents from and voting by holders of the Bonds, the Issuer or Agent, shall
6 tablish a record date for such purposes and give OTC notice of such record d.tt~ not k'Ss than 15 calendar days in
.1dvance of such record date to the extent possible.
3. In the event of a redemption or any other similar transaction resulting in retirement of all Bonds outstanding or a
reduction in aggregate principal amount of Bonds outstanding ("full or partial redemption") or an advance refunding
of all or part of the Bonds outstanding, the Issuer or Agent, shall give DTC notice of such event 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 the proceeds are
deposited in escrow.
-&. In the e••ent of a partial redemption or an advance refunding of part of the Bonds outstanding, the Issuer or Agent
shall send OTC a notice specifying: 1) the amount of the redemption or refunding; 2) in the case of a refunding. the
maturity date(s) established under the refunding; and 3) the date such notice is to be mailed to Bondholders or
published ("the Publication Date"). Such notice shall be sent to DTC by a secure means (e.g., legible facsimile
transmission, registered or certified mail, overnight express 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. The
Issuer or Agent will forward such notice either in a separate secure transmission for each CUSIP number or in a secure
transmission for multiple CUSlP numbers which includes a manifest or list of each CUSIP submitted in that
transmission. (The Issuer or Agent sending such notice shall have a method to verify subsequently the use of such
means and timeliness of the notice.) The 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 the proceeds are deposited in escrow.
5. In the event of an invitation to tender the Bonds, notice to Bondholders by the Issuer or Agent, specifying the
terms of the tender and the date such notice is to be mailed to Bondholders or published ("the Publication Date") shall
be sent to DTC by a secure means Ce.g., legible facsimile transmission, registered or certified mail, overnight express
delivery) in a timely manner designed to assure that such notice is in DrC's possession no later than the dose of
business on the business day before the Publication Date. <The Issuer or Agent sending such notice shall have a
method to verify subsequently the use of such means and timeliness of the notice.)
6. All notices and payment ad vices sent to ore shall contain the CUSIP number of the Bonds.
7. Notices to DTC by facsimile transmission shall be sent to DTC's Call Notification Department at (516) 2274039 or
(516) 227··1190. The Agent shall confirm DTCs receipt of such facsimile transmission by telephoning the Call
Notification Department at (516) 2274070. Notices to DTC by mail or any other means shall be sent to:
The Depository Trust Company
Call Notification Department
Muni Reorganization Manager
711 Stewart Avenue
Garden City, NY 11530
8. Interest payments shall be received by Cede & Co., as nominee of ore, or its registered assigns in next-day funds
on each payment date (or the equivalent in accordance with existing arrangements between the Issuer or Agent and
DTC). Such payments shall be made payable to the order of Cede & Co.
9. Payments of principal shall be received by Cede & Co., as nominee of ore, or its registered assigns in next-day
funds on each payment date. Principal payments shall be made payable to the order of Cede & Co., and shall be
addressed as follows:
-
The Depository Trust Comp.any
Muni Redemption Department
55 Water Street-50th Aoor
New York. NY 10041
Attention: Collection Supervisor
10. DTC may direct the Issuer or Agent to use any other telephone number for facsimile transmission, address. or
department of ore as the number, address or department to which payments of interest or principal or notices may be sent.
11. In the event of a redemption, acceleration or any other similar transaction (e.g., tenders made and accepted in
response to the Issuer's or Agent's invitation) necessitating a reduction in aggregate principal amount of Bonds
outstanding or an advance refunding of part of the Bonds outstanding, DTC. in its discretion, (a) may request the
Issuer or Agent to issue and authenticate a new Bond certificate or {b) shall make an appropriate notation on the Bond
certificate indicating the date and amounts of such reduction in principal, except in the case of final maturity, in which
case the certificate must be presented to the Issuer or Agent prior to payment.
12. In the event the Issuer determines p~rsuant to the Document(s) that beneficial owners of the Bonds shaiJ be able
to obtain certificated Bonds, the Issuer or Agent shall notify DTC of the availability of Bond certificates and shall issue,
transfer and exchange Bond certificates in appropriate amounts as required by ore and others.
13. DTC may determine to discontinue providing its service as securities depository with respect to the Bonds at any
time by giving reasonable notice to the Issue or Agent (at which time ore will confirm with the Issuer or Agent the
aggregate principal amount of the Bonds outstanding) and discharging its responsibilities with respect thereto under
applicable law. Under such circumstances, whenever DTC requests the Issuer and the Agent to do so, the Agent and
the Issuer will cooperate with DTC in taking appropriate action to make available one or more separate certificates
evidencing the Bonds to any DTC Participant having Bonds credited to its DTC account.
14 .. Nothing herein shall be deemed to require the Agent to advance funds on behalf of the Issuer.
Notet:
a. I there is no organization acting as Agent for the Issuer. and
an obligations in Ibis Lener of Representations are to be assumed
solely by the Issuer, references to such Agent may be inked out.
b. Neither DTC 1'101' (Cede & Co.) provides consents with respect
to any security. Under its usual procedures. DTC mails an
Omnibus Proxy 10 the Issuer as soon as possible after the record
date. The Omnibus Proxy assigns Cede & eo:s voting rights to
lhose Participants having the security credited to their accounts on
the record date (ldentif.ed in a listing attached to the Omnibus
Proxy). The requirement tc advise DTC of the record date for the
SOlicitation or consents is set fo(lh in paragraph 2 of the letter.
c. Under Rules of the Municipal Securities Rulemaking Board
relating to •good delivery, • a municipal securities dealer must be
able to determine the date that a notice of partial call or or an
advance refunding of part or an issue is published {the "Publication
Date,. The establishment of such a Pubfation Date is addressed
in paragraph 4 or the letter.
~vedand:;6?~
By.~~-------------------------------------~---CAutoorized Offlc:er·s Sipal'l.ft•
cc: Underwriter
Underwriter's Counsel
Very truly yours,
Texas Commerce Bank National Association
City of Lubbock. Texas
~ "tAut~natureJ
Mayor
ffitkll
SCHEDULE A
Year of Principal Interest
Stated Maturity Amount Rate
1992 $375,000 9.20 \
1993 375,000 9.20 \
1994 375,000 9.20 \
1995 375,000 9.20 \
-1996 375,000 9.20 \
1997 375,000 9.20 \
1998 375,000 8.75 \
1999 375,000 6.20\
2000 375,000 6.20\
2001 375,000 6:30\
2002 375,000 6.40\
2003 375,000 6.50 \
2004 375,000 6.'50\
2005 375,000 6.2'5\
2006 375,000 b.'25\
2007 375,000 6.2'5\
2008 375,000 o:2'5\
2009 375,000 b.'25\
2010 375,000 ~\
2011 375,000 6.25 \
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THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
GENERAL CERTIFICATE
§
§
§
§
§
We, the undersigned, Mayor, City Secretary, and
Assistant City Manager for Financial Services, respectively, of
the City of Lubbock, Texas, DO HEREBY CERTIFY as follows:
1. Relative to No-Default.
That the City of Lubbock, Texas, is not in default as to
any covenant, condition or obligation contained in the
ordinances authorizing the issuance of City of Lubbock, Texas,
Electric Light and Power System Revenue Bonds, Series 1973,
dated July 15, 1973; Series 1975, dated March 15, 1975; Series
1975-A, dated September 15, 1975; Series 1976, dated April 15,
1976; Series 1984, dated April 15, 1984; Series 1987 dated
Apri 1 15, 1987 and Series 1988 dated Apri 1 15, 1988; and City
of Lubbock, Texas, Electric Light and Power System Refunding
Revenue Bonds, Series 1983, dated May 15, 1983; and that there
is on hand in the Special Electric Light and Power System
Revenue Bond Retirement and Reserve Fund pertaining to the
aforesaid obligations the sum of $6,236,970, of which amount
the sum of $3,811,807 represents the reserve portion thereof.
2. Relative to Nonencumbrance.
Save and except for the pledge of the income and
revenues of the City• s Electric Light and Power System to the
payment of principal and interest to become due with respect to
the outstanding and unpaid "City of Lubbock, Texas, Electric
Light and Power System Revenue Bonds, Series 1973" dated July
15, 1973, currently outstanding in the principal amount of
$900,000; "City of Lubbock, Texas, Electric Light and Power
System Revenue Bonds, Series 1975" dated March 15, 1975,
currently outstanding in the principal amount of $1,280,000;
"City of Lubbock, Texas, Electric Light and Power System
Revenue Bonds, Series 1975-A" dated September 15, 1975,
currently outstanding in the principal amount of $500,000;
"City of Lubbock, Texas, Electric Light and Power System
Revenue Bonds, Series 1976" dated April 15, 1976, currently
outstanding in the principal amount of $1,320,000; "City of
Lubbock, Texas, Electric Light and Power System Refunding
Revenue Bonds, Series 1983" dated May 15, 1983, currently
outstanding in the principal amount of $5,545,000; "City of
Lubbock, Texas, Electric Light and Power System Revenue Bonds,
Series 1984" dated April 15, 1984, currently outstanding in the
principal amount of $6,500,000; "City of Lubbock, Texas,
Electric Light and Power System Revenue Bonds, Series 1987"
dated April 15, 1987, currently outstanding in the principal
amount of $5,600,000; "City of Lubbock, Texas, Electric Light
and Power System Revenue Bonds, Series 1988" dated May 15,
1988, currently outstanding in the principa 1 amount of
$14,450,000; and the proposed "City of Lubbock, Texas Electric
Light and Power System Revenue Bonds, Series 1991" dated May
15, 1991 to be issued in the principal amount of $7,500,000,
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 evidence the only liens, encumbrances
or indebtedness of said System or against the income and
revenues of such System.
3. Relative to No Petition.
No petition, signed by 10% of the qualified
voters of the City, has been presented to the office of the
City Secretary or other officials of the City protesting the
issuance of the proposed "City of Lubbock, Texas, Electric
Light and Power System Revenue Bonds, Series 1991" dated
May 15, 1991.
4. Relative to Income and Revenues.
The following is a schedule of the
operating expenses and net revenues of the
Light and Power System for the years stated:
Fiscal Year
Ending 9-30
1986
1987
1988
1989
1990
Gross
Receipts
$45,862,720
45,317,674
51,732,564
53,088,408
52,197,792
Operating
Expenses
$33,391,266
32,649,325
31,928,152
34,442,694
33,730,001
5. Relative to Utility Properties.
gross receipts,
City's Electric
Net
Revenues
$12,471,454
12,668,349
19,804,412
18,645,714
18,467,791
The electric light and power utility properties owned,
operated and rna intained by the City currently provides
electricity to approximately 45,114 customers.
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.
-2-6471JD
6. Relative to Rates and Charges.
The current monthly rates and charges for services
provided by the City• s Electric Light and Power System are as
shown in Exhibit A attached hereto and incorporated herein by
reference and made a part of this certificate for all purposes.
7. Relative to City Officials.
Certain duly qualified and acting officials of the City
are as follows:
B.C. McMINN
LARRY J. CUNNINGHAM
J. ROBERT MASSENGALE
RANETTE BOYD
MAYOR
CITY MANAGER
ASSISTANT CITY MANAGER FOR
FINANCIAL SERVICES -CITY
TREASURER
CITY SECRETARY
8. Relative to Interest Earnings.
That interest earnings on proceeds from the sale of
$7,500,000 "City of Lubbock, Texas, Electric Light and Power
System Revenue Bonds, Series 1991" will be deposited to the
Bond Fund reaffirmed 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.
9. Relative to Incorporation.
That the City of Lubbock, Texas, is incorporated under
the general laws of the State of Texas and is operating under
the Home Rule Amendment to the Texas Constitution, Section 5,
Article XI, as amended in 1912; that the City Charter was
adopted at an election held for that purpose on the 27th day of
December, 1917, and said Charter has not been amended or
revised in any respect since May 7, 1988, the date of the last
Charter Amendment election.
-3-
64780
-
WITNESS OQ:R ,,lJANDS AND THE SEAL OF THE CITY OF LUBBOCK,
TEXAS, this the~ day of April, 1991.
(City Sea~)
·~
6478D
7 Mayor, City of
Lubbock, Texas
~G~ itYSecretary, C'Of
Lubbock, Texas
-4-
-
ELECTRIC RATES
Ele<:tric rates in the City are set by City Council Ordinance and are the same for LP&L and Southwestern
Public Service except for church, school and municipal rates and minor variations in billing policies, and
South Plains Electric Cooperative customers. Current rates became effective June I, 19&91 (previous
rates were effective April I, 1988); on April 21 1990, LP&L aho significantly lowered its fuel cost factors.
The 6·1·19&9 rates were a reduction of approximately 1. U% and the revised fuel cost factors lowered
costs to the consumer by approximately 9%. Current rates and previous rates are compared in the rate
structures shown below, The territory for all rates is Lubbock, Texas.
Rates for Service Furnished in Cit;t ••• Rates to be charged for electric service furnished within the City
shall be in accordance with orders or resolutions of the City Council establishing such rates for all persons
engaged in furnishing such electric power service to the public including electric power furnished by the
City's ele<:tric power company. Said orders and resolutions establishing rates shall be kept available for
public inspection.
Fuel Cost Recovery
The charge per kilowatt hour shall be increased by a fuel factor per ldlowatt hour as provided in current
Southwestern Public Service Tariff 7100 (Public Utility Commission of Texas sheet IV-69). The fuel
factor remains constant for approximately one year. At this time the fuel factor is $0.020636/kWh, All
rates shown below are subject to fuel cost recovery.
Tax Adjustment
Billings under these schedules may be increased by an amount equal to the sum of the taxes payable under
federal, state and local sales tax acts, and of all additional taxes, fees, or charges (exclusive of ad
valorem, state and federal income taxes), payable by the utility and levied or assessed by any
governmental authority on the public utility services rendered, or on the right or privilege of rendering
the service, or on any object or event incidental to the rendition of service, as the result of any new or
amended laws after lune JO, 19U. All rates shown below are subject to tax adjustment where applicable.
Residential Service
Applicable: To residential customers for electric service used for domestic purposes ln private residences
and separately metered individual apartments. Single phase motors not to exceed 10 horsepower,
individual capacity, may be served under this rate,
Service Availability Charge
All kWh per month
Previous Rate
$,.00 per month
3. 93¢ per kWh
Ele<:tric Living Service
Current Rate
$4.66 per month
3.93¢ per kWh
Water Heating*s When customer has in regular use a permanently installed 2/fO volt, 30 gallon or greater,
storage type water heater of not &reater than'"' kilowatts, Individual rated ca~clty, the first '00 kWh
will be billed at the regular rate, the next '00 kWh at J,,~ per kWh, and aU additional kWh at the regular
rate.
Ali-Ele<:tric Space Heating*a When customer has in regular use permanently installed space heating
equipment of an ag®ate rated capacity of ) kilowatts or more, excluding bathroom heaters, billing
during the winter months will be the first '00 kWh at the regular rate, and all additional kWh .u .16¢ per
kWh. When customer has water heating in combination with all-electric space heating, the first '00 kWh
will be billed at the regular rate, the next '00 kWh at 1."¢ per kWh and all additional kWh at .16¢ per
kWh.
EXHIBIT A
~y~l
-
-
Add-On Heat Pume•: When customer has in regular use a permanently ins1alled heat pump used as the
prirnary heat source for the entire residence in conjunction with a gas or oil fired furnace for extreme
cold weather back-up, billing during the winter months will be the first 600 kWh at the regular rate and
all additional kWh at .86¢ per kWh. When customer has water heating in combination with the add on heat
pump, the first 600 kWh will be billed at the regular rate, the next SOO kWh at l.n¢ per kWh and all
additional kWh at .S6¢ per kWh.
For heat pump installation, the rated capacity shall be determined by adding the rated capacity of the
heat pump (I ton per kilowatt) and 1/2 of the rated capacity of any auxiliary heating elements used in
conjunction with the heat pump.
The rated capacity of space heating equipment may be measured by LP&L.
• Previous rates used energy blocks of .91¢ and 1.72¢ respectively.
Winter Months: The billing months of November to May, inclusive,
Character of Service: A-C; 60 hertz; single phase 120/240 volts; where available on secondary, three
phase 240 volts.
General Service
Applicable: To all commercial and industrial electric service where facilities of adequate capacity and
suitable voltage are adjacent to the premises to be served. Water heating and space heating service will
be furnished in conjunction with the standard Heating Rider,
Not applicable to temporary, breakdown, standby, supplementary, or to service for which a specific rate
Khedule is provided.
Service Availability Charge
First 1,000 kWh per month
Next 6,000 kWh per month
Next 61000 kWh per month
All additional kWh per month
Previous Rate
$14.00 per month
@ '. 34¢ per kWh•
@ 2.22¢ per kWh
@ 1.00¢ per kWh
@ .SS¢ per kWh
Current Rate
$12.9& per month
@ ,.24¢ per kWh ..
@ 2.22¢ per kWh
@ l.OS¢ per kWh
@ ·'%per kWh
• Add to the ,.34¢ block 200 kWh for every kW of demand in excess of 10 kW.
•• Add to the ,.24¢ block 200 kWh for every kW of demand in excess of 10 kW,
Demand: LP&L will furnish at its expense the necessary metering equipment to measure the customer's
kW demand for the 30-minute period of greatest use during the month.
Character of Service: A-C; 60 hertz; single or three phase.
Minimum Char e (identical for both resent rates and new rates $12.9! per month for demands of 10 kW
or ess, pus ),,0 per kW for next U kW above 10 kW, plus $2.30 per kW for all additional kW. No
demand shaD be taken as less than '0'76 of highest demand established in 12 months ending with current
month. Heating Rider
Applicable: To customers taking service under LP&L's General Service, Public and Parochial School
Service or Municipal Lighting and Power Service rates.
Water Heating Service•; When customer has in regular use one or more permanently installed )0 gallons
or greater storage type water heaters of not greater than '·' kilowatts, individual rated capacity, the
first 200 kWh per water heater will be billed at the regular rate, the next 300 kWh per water heater wUI
be billed at 1.58¢ per kWh, and aU additional kWh at the regular rate.
When customer has in regular use one or more approved, permanently installed storage type water heaters
of greater than '·' kilowatts, Individual rated capacity, the first 200 kWh for each' kilowatts of rated
capacity will be billed at the regular rate, the next 300 kWh for each .S kilowatts of rated capacity will be
billed at l.'S¢ per kWh, and all additional kWh at the regular rate. •
The dem ... ud !.;,: bl!l•n& purposes will be the measured kW demand less 7S96 of the rated capacity of the
first water heater and .SO% of the rated capacity of all additional water heaters, but not less than 7)'76 of
the measured kW demand.
-------------------------------·---
,..
flow-through w.:~ter heaters and other high wattage water heating devices wall be billed at the regular
rate.
All-Electric Space Heating Service•a When custoaner has in regular use permanently installed space
heating e quiprnent, including hot water systems, of an aggregate rated capacity of ' kilowatts or more,
billing during the winter m~nths un~r the reg.ular .ra.te will not exceed the average kW de.~and and kWh
consumption established durmg the farst precedmg btlhng months of ~ay and October. Addataonal demand
will not be billed, Additional kWh used per month will be billed at .36J: per kWh.
Add-On Heat Pump Service•: When customer has in regular use a permanently installed heat pump used
as the primary heat source for the entire building in conjunction with a gas or oil fired furnace for
extreme cold weather back-up, billing during the winter months under the regular rate will not exceed the
average kW billing demand and kWh consumption established during the first preceding billing months of
~ay and October. Additional demand will not be billed. Additional kWh used per month will be billed at
.86¢ per kWh.
Winter ~onths: The billing months of November through April, Inclusive.
Character of Service: A·C; 60 hertz; at one available standard voltage of 240 volts or greater,
• Previous rates used energy blocks of .91¢ and 1.72¢ respectively.
~unicipal Lighting and Power Service
Applicable: To municipal general lighting and power service except for street Ughtlng service.
All kWh per month
Previous Rate
2. 908¢ per kWh
Irrigation Power Service
Current Rate
2.388¢ per kWh
Applicable: Under contract, to irrigation power customers when the connected motor load is not less than
., h.p.
All kWh per month
Previous Rate
4.17¢ per kWh
Current Rate
4.67¢ per kWh
Character of Service: A-C; 60 hertz; three phase; at one available standard voltage.
Term of Contract: One year or longer.
Minimum Char e (identical for both resent rates and new rates): $24.00 per connected h.p. per season
name-plate rating , excluding fuel cost recovery revenue,
Public and Parochial School Service
Applicable: To public and separately metered parochial schools for Ughting and power service. AU
metering locations for each customer shaiJ be combined for billing purposes.
First 10,000 kWh used per month
Next 20,000 kWh used per month
Next )0,000 k'flh used per month
Additional kWh used per month
Previous Rate
@ '·"C per kWh @ *·U¢ per kWh
@ ).89¢ per kWh
@ 3.50¢ per kWh
Large CeneraJ Service
Current Rate
@ .-.uc per kWh
@ •.04¢ per kWh
@ ).II¢ per kWh
@ ).47¢ per kWh
Applicable•: To all commercial and industrial electric service supplied where facilities of adequate
capacity and suitable voltage are adjacent to the premises to be served. Not applicable to temporary,
breakdown, standby, or supplementary service,
.B.!!!=
Demand Charge•:
Previous Rate Current Rate
First 200 k1l, or less of demand per month
Additional k'fl of demand per month
$1,960.00 $1,960.00
$9.10/kW $9.10/kW
Energy Charce•& ·'5¢ per kWh for the first 230 kWh used per month per kW of demand, or the first
120,000 kWh used per month whichever ls greater .•tc per kWh foe the next 230 k"Wh used per month per kW of demand
.33¢ per kWh for all additional kWh used per month
EXHIBIT A
poje.-3
.......
,....
-
Determination of Demand•: The kW determined from LPL's demand meter for the 30-rninute period of
customer's greatest kW use during the month, but not less than 6096 or the highest demand e~lablished in
the preceding eleven months.
Power Factor Adjustment•: Bills computed under the above rate will be increased $0.25 for each kvar by
which the reactive demand exceeds, numerically, O.H times the measured kW demand, and will be
reduced $0.2.5 for each kvar by which the reactive demand is less than, numerically, 0.110 times the
measured kW demand.
Primary Service Discount•: A discount of 396 of the demand charges, energy charges (excluding all fuel
cost recovery amounts), and power factor adjustment charges will be allowed when service is supplied at a
line voltage of 12 kV, or greater, and no transformation Is made by Lubbock Power and Light at the
customer's location.
• Identical for both previous rates and current rates.
Character of Service: A-C; 60 hertz.
Contract Period: A period of not less than one year.
Minimum Charge-: The Demand Charge.
• Identical for both previous rates and current rates.
Street Lighting Service
Applicable: To municipal street lighting service.
Rate:
All kWh used per month
Previous Rate
3. 2269¢ per kWh
Oil Well Pumping Service
Current Rate
).21¢ per kWh
Applicable: Under contract, to power customers for oil well pumping, including incidental lighting and
small power loads required by customer in lease operation. All locations in one field are to be combmed
and billed together •
.!!!!!= Previous Rate Current Rate
Service Availability Charge
All kWh per month
$11.113 per meter per month
2 • .5~ per kWh
Sl0.29 per meter per month
2.4!¢ per kWh
Character of Service: A-Ca 60 hertz; three phase; at LPL's available primary voltage.
Power Factor: The customer agrees to maintain an average power factor of at least 1096.
Terms of Contract: One year, or longer.
Minimum Charge (identical for both present rates and new rates):
$20 per month on each meter for secondary voltage metering.
$.50 per month on each meter for primary voltage metering.
Industrial Feed Mill and Elevator Service
Applicable: Under contract, to all electric energy used for the operation of industrial feed mllls and grain
elevators. All industrial feed mill and elevator customers are to be served under this rate schedule,
except that customers having a measured demand of 200 kW, or greater, may be served under the large
general service rate.
Not applicable to temporary, breakdown, standby, or supplementary service.
EXHIBIT A
.pa~e, ·~
,.. ..
~:
Service Availability Charge
First 1,000 k\\'h used per month
Next 6,000 kWh used per month
Next 11,000 k\\'h used per month
All additional k\\'h used per month
Previous Rate
$17.91 per month
@ 6.17¢ per kWh•
@ .3.!2¢ per kWh
@ 2.10C per kWh
@ I • '0C per kWh
Current Rate
$17.91 per month
@ .5.7.3¢ per kWh ..
@ ) • .5!¢ per kWh
@ 2.,¢ per kWh
@ 1 • .50C per kWh
• Add to the 6.17¢ block, 14.5 kWh for each kW of demand in excess of 10 kW.
· •• Add to the .5.73¢ block, U' kWh for each kW of demand in excess of 10 kWh.
Terms of Payment: Net in .30 days after mailing date; 'CJ6 added to bill after .30 days.
Demand: The kW demand from LP&L's demand meter for the )0-minute period of customer's greatest use
dunng the month.
Character of Service: A-C; 60 hertz; single or three phase, at one standard voltage.
~inimum Char e (identical for both revious rates and current rates $16.46 for the first 10 kW, or less,
plus ) • .50 per kW for next I' kW 1 above 10 kW 1 plus 2.30 per kW for all additional kW of highest demand
established in twelve months ending with current month.
Term of Contract: A period of not less than one year.
Cotton Cin Service
Applicable: Under contract, to all electric energy used for the operation of cotton gins and de-linters,
whether partially or completely electrified. Cotton gins are not to be served under any rate schedule not
specifically designated for such service.
~ot applicable to temporary, breakdown, standby, or supplementary service.
Service Availability Charge
First 1,000 kWh used per month
All additional kWh used per month
Previous Rate
$21.60 per month
@ 7. 9&¢ per kWh•
@ .3.60C per kWh
Current Rate
$19.90 per month
@ 7 .lfl¢ per kWh ..
@ l.lf lC per kWh
• Add to the 7.9Jc block, 120 kWh for each kW of demand in excess of 10 kW.
•• Add to the 7.43¢ block, 120 k''h for each kW of demand in excess of 10 kW.
Terms of Payment: Net in lO days after mailing date1 'CJ6 added to bill after JO days.
Demand: The kW demand for LPL's demand meter for the .30 minute period of customers greatest use
during the month.
Character of Services A-C; 60 hertz; single or three phase, at one standard voltage.
~inimum Char e (identical for both evious rates and current rates • $n • .so per year per kW of demand
established during the contract year 1 but not less than 307.00.
Cuard Llght Service
Applicable; Under contract to all night outdoor lighting service where facilities of adequate capacity and
suitable voltage are adjacent to the premises to be served.
S!!!,: Each 1.5,000 lumen high pressure sodium, wood pole, overhead bracket type light for $1 • .57 per
month (previous rate $9.)2 per month).
Each 9,500 lumen high pressure sodium, wood pole, overhead bracket type light for $7.00 per month
(previous rate $7.62 per month).
Each 7,000 lumen mercury vapor, wood pole, overhead bracket type light for $7.00 per month (previous
rate $7.62 per month).
EXHIBIT A ./
-paje,-!:>
Coopers
&Lybrand
certified public acoountants
BEPORT OF CERTIFIED PUBLIC ACCOUNTANTS
THE STATE OF TEXAS S
s
COUNTY OF LUBBOCK S
s
CITY OF LUBBOCK S
I, the undersigned, of the firm of COopers & Lybrand, Certified Public
Accountants, Lubbock, Texas, do hereby make the following report:
1. That the total gross revenues, operation and maintenance
expenses, and net revenues from the operation of the Electric
Light and Power System of the City of Lubbock, Texas (the
"City"), for the fiscal year ending September 30, 1990, as
shown by the City's financial records, are as follows:
2.
Gross revenues
$ 52,197,792
Maintenance and
operation expenses
$ 33,730,001
Net revenues
$ 18,467,791
That, based on the audit of the financial records of the
City's Electric Light and Power System for the fiscal year
ending September 30, 1990, the net revenues of said Power
System are equal to at least one and one-half (1-1/2) times
the average annual principal and interest requirements of all
bonds which will be secured by a first lien on and pledge of
the net revenues of the System which will be outstanding after
the issuance of the proposed "CITY OF LUBBOCK, TEXAS 1 ELECTRIC
LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES 1991" dated
May 15, 1991 and further, that said net revenues are equal to
at least one and one-fifth (1-1/5) times the maximum annual
principal and interest requirements of all such bonds as will
be outstanding upon the issuance of the aforesaid Series 1991
Bonds.
Coopers & Lybrand
By:
-
CERTIFICATE AS TO TAX EXEMPTION
The undersigned, being the duly chosen and qualified
Assistant City Manager for Financial Services of the City of
Lubbock, Texas (the "Issuer"), hereby certifies with respect to
CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REVENUE
BONDS, SERIES 1991, in the principal amount of $7,500,000.00
(the "Bonds"), as follows:
A. General.
1. I, along with other officers of the Issuer, am
charged with the responsibility for issuing the Bonds.
2. This certificate is made pursuant to Sections
103, 141, and 148 of the Interna 1 Revenue Code of 1986, as
amended to the date hereof (the "Code"), and Treasury
Regulations Sections 1.103-13, 1.103-14, and 1.103-15 (the
"Regulations").
3. This certificate is based on the facts and
estimates described herein in existence on this date, which is
the date of delivery of the Bonds to and payment for the Bonds
by the initial purchasers thereof, and, on the basis of such
facts and estimates, the Issuer expects that the future events
described herein will occur.
4. The Issuer has never been disqualified by the
Commissioner of Internal Revenue from certifying an issue of
its obligations pursuant to Section 1.103-13(a) (2) (iv) of the
Regulations, has never been listed in a notice of
disqualification in the Internal Revenue Bulletin, and has
never been advised that such a disqualification is contemplated.
B. Purpose and Size.
1. The Bonds are being issued pursuant to Ordinance
No. 9432 of the Issuer adopted by the City Counci 1 of the
Issuer on April 26, 1991, (hereinafter referred to as the
"Ordinance") to finance the Issuer's estimated acquisition and
construction costs of various capital improvements and
ex tens ions to the Issuer • s existing Electric Light and Power
System, all as more fully described in the Ordinance (the
"Project"). Terms used and not defined herein have the same
meaning given to them in the Ordinance.
-.
2. The Issuer's Electric Light and Power System (the
"System") is owned, operated, and maintained by the Issuer, and
the Issuer has not contracted in any manner with any company,
firm or other person or entity to operate and/or maintain the
System or all or part of any of it, for and on behalf of the
Issuer. The Issuer does not expect to enter into any contract
for the operation, maintenance or management of the System or
all or part of any of it or for the sale of the System or any
part of it to any person.
3. There is not, and as of the date hereof the
Issuer does not anticipate entering into, any lease, contract
or other understanding or arrangement, such as a take-or-pay
contract or output contract, with any person other than a state
or local governmental unit pursuant to which the Issuer expects
that proceeds of the Bonds, or the facilities financed
therewith, will be used in the trade or business of such person
(including all activities of such persons who are not
individuals).
4. The Issuer has not entered into, and as of the
date hereof the Issuer does not anticipate entering into, any
contract with any person other than a state or local
governmental unit for the sale of electric light and power
which extends for a period greater than twelve months,
including optional renewals.
5. The amounts received from the sale of the Bonds,
when added to the amounts expected to be received from the
investment thereof, do not exceed the amounts required to pay
the costs of the Project and of issuing the Bonds.
6. No receipt from the sale of the Bonds or amounts
received from the investment thereof wi 11 be used to pay the
principal of or interest on any presently outstanding issue of
Bonds or other similar obligations of the Issuer other than the
Bonds.
C. Source and Disbursement of Funds.
1. The Bonds are being issued and delivered to the
purchaser thereof on the date hereof upon payment of the agreed
purchase price of $7,500,000.00, plus original issue premium of
$-0-, plus accrued interest thereon.
2. The amount received from the purchaser of the
Bonds representing accrued interest and premium, if any, are
being deposited on the date hereof in the Special Electric
Light and Power System Revenue Bond Retirement and Reserve Fund
(the "Bond Fund") for the Bonds to be used to pay the first
payment of interest to become due on the Bonds on October 15,
1991.
-2-
ft480D
3. Approximately $7,455,662.50 of the proceeds from
the sale of the Bonds is to be deposited in a separate checking
account of the Issuer (the "Construction Fund") and will be
used to pay costs of the Project. Costs of issuance relating
to the Bonds, which are expected to be approximately
$44,337.50, will be paid by the Issuer out of the proceeds of
the Bonds. The Issuer estimates that $375,000 in income and
profit will be received from the investment of the amounts
deposited to the Construction Fund pending the disbursement of
such amounts for the governmental purposes for which the Bonds
are being issued. All of such income and profit will be used
to pay any cost overruns on the Project or if there are none,
deposited to the Bond Fund and used to pay principal of and
interest on the Bonds within one year of receipt.
D. Temporary Periods and Time for Expenditures.
1. Within six months from the date hereof, the
Issuer will have incurred a binding obligation or commitment in
the amount of at least $100,000.00 for the Project by entering
into contracts for construction, architectural services,
engineering services, land acquisition, site development,
construction materials, or the purchase of equipment.
2. After entering into said contracts, work on the
construction or acquisition of the Project will proceed with
due diligence to completion.
3. The Issuer expects that all of the
proceeds of the Bonds, together with any earnings
investment thereof, will be spent by April 1994.
E. Reserve Portion.
original
from the
1. The Issuer is required by the Ordinance to
maintain the Reserve Portion of the Bond Fund during the term
of the Bonds for the purpose of accumulating and maintaining
funds as a reserve for the payment of the Bonds Similarly
Secured in an amount (the "Required Reserve•) equal to an
amount not less than the average annual principal and interest
requirements of all outstanding Bonds Similarly Secured after
giving effect to the issuance of the Bonds, which amount is
$3,456,759. This amount will be funded from the current
balance on deposit in the Reserve Portion for all Previously
Issued Bonds of $3,811,807. The Issuer has been advised by
First Southwest Company, financial advisor to the Issuer, that
a reserve fund balance of that amount was required in order to
market the Bonds at the interest rates set forth in the
Ordinance authorizing the Bonds, and for the purchase price set
forth on the Initial Purchaser's Certificate attached as
-3-54800
-
Exhibit A, and that funding a reserve fund for a lesser amount
would have resulted in a less favorable rating with respect to
the Bonds and sale of the Bonds at materially higher interest
rates or for a materially lower purchase price to the Issuer.
2. Of the aggregate amounts on deposit in the
Reserve Portion of $3,456,759, 10.6\, or $366,416.45, is
allocated to the Bonds on the basis of the original principal
amount of the Bonds and the Previously Issued Bonds. The
amount on deposit in the Reserve Portion and allocated to the
Bonds at all times will be an amount not in excess of the least
of (i) the maximum annual debt service requirement on the
Bonds, (ii) 125\ of the average annual debt service
requirements on the Bonds, or (iii) 10\ of the original
proceeds of the Bonds.
3. The Ordinance provides that any amounts held for
the credit of the Reserve Portion in excess of the Required
Reserve may be withdrawn and transferred by the Issuer to the
Electric Light and Power System Fund (the "System Fund"), to be
disbursed as provided therein. The Issuer expects that all
amounts received from investment of the Reserve Port ion wi 11,
within one year of receipt, either be expended to pay principal
of or interest on the Bonds or be commingled with other
substantial revenues of the Issuer for the governmental
purposes of the Issuer.
F. Bond Fund and System Fund.
1. The Bonds are payable solely from amounts held
for the credit of the Bond Fund and the Reserve Portion and are
secured solely by a pledge of the Net Revenues of the System.
The Issuer may credit against its required deposits to the Bond
Fund and the Reserve Portion all amounts received from the
investment of funds held therein.
2. The Ordinance requires that all Gross Revenues
received by the Issuer by reason of its ownership and operation
of the System shall be deposited as received in the System
Fund, to be disbursed in the following order of priority:
a. for payment of all necessary and reasonable
expenses of operating and maintaining the System;
64&00
b. for payment into the Bond Fund;
c. for payment into the Reserve Portion of the
Bond Fund.
-4-
3. The Bond Fund (excluding the Reserve Portion)
will be maintained by the Issuer primarily to achieve a proper
matching of revenues and debt service within each bond year.
The Issuer expects that the following will occur with respect
to the money in the portion of the Bond Fund (other than the
Reserve Portion of the Bond Fund and that portion of the Bond
Fund, if any, consisting of deposits made to defease in whole
or in part the obligations of the Issuer to make deposits
thereto) and each System Fund allocable to paying debt service
on the Bonds:
a. Such portions will be depleted at least
once a year except possibly for a carry-over amount
not greater than the larger of one year's income from
the investment of such portion or one-twelfth of
annual debt service requirements on the Bonds;
b. All amounts deposited to such portions to
pay debt service on the Bonds will be spent within 13
months of deposit;
c. All amounts received from the investment of
such portions will be deposited therein and will be
expended within twelve months of receipt.
4. Except as described above, no funds of the Issuer
have been or will be pledged to payment of the principal of or
interest on the Bonds or otherwise restricted so as to give
reasonable assurance of the availability of such funds for such
purpose.
G. Yield and Nonpurpose Investments.
1. The discount factor required to reduce the
principal and interest to be paid on the Bonds to a present
value on the date hereof, compounding semiannually, equal to
the initial offering prices at which a substantial amount of
each maturity of the Bonds was sold to the public, is
6.59599\. In determining the initial offering price at which a
substantial amount of each maturity of the Bonds was sold to
the public, the Issuer has relied on a certificate from the
purchaser of the Bonds.
2. No other obligations of the Issuer payable from
the same source of funds have been or will be issued within 31
days of the date hereof.
3. In accordance
Ordinance, unless the Bonds
section 148(f) of the Code,
I .ClOD
with
meet
not
-s-
Section 28(g) of the
an exception described in
less frequently than each
Computation Date (as defined in the Ordinance), the Issuer
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. §l.l48-2T and rulings
thereunder, the Rebatable Arbitrage (as defined in the
Ordinance) with respect to the Bonds. The Issuer shall
maintain such calculations with the official transcript of the
proceedings relating to the issuance of the Bonds until six
years after the final Computation Date (as defined in the
Ordinance).
In accordance with Section 28(g) of the Ordinance, the
Issuer will pay over timely to the United States the Rebatable
Arbitrage and the Correction Amount described in Sections 28(g)
and of the Ordinance and wi 11 make such reports as wi 11 be
required to insure that all such amounts are "rebated" to the
United States as required by Section 148(f) of the Code and
Treas. Reg. §§1.148-lT through 1.148-9T and rulings thereunder.
It is anticipated that the Bonds may meet the
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. The Issuer hereby makes the election
contained in section 148(f)(4)(C)(vi)(IV) of the Code to
exclude earnings of the Reserve Fund from "available
construction proceeds" for purposes of section 148(f)~4)(C) of
the Code, and will instead rebate earnings on.the Reserve Fund
allocable to the Bonds.
EXECUTED AND DELIVERED MAY 2 3 1991
CITY OF LUBBOCK, TEXAS
-6-
f>410D
The undersigned has read the foregoing Certificate,
has made the representations to the Issuer attributed to it
therein, believes such representations to be true, correct, and
complete as of the date hereof, and is not aware of any facts
or circumstances that would make such representations untrue,
inaccurate, or incomplete.
FIRST SOUTHWEST COMPANY
-7-
6480D
• ,...r
-
SIGNATURE AND NO-LITIGATION CERTIFICATE
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
§
§
§
§
§
WE, the undersigned, officials of the City of Lubbock,
Texas (the "Issuer"), do hereby certify as follows:
(1) That this Certificate is executed and delivered
with reference to the following described bonds: "CITY OF
LUBBOCK, TEXAS, ELECTRIC LIGHT & POWER SYSTEM REVENUE BONDS,
SERIES 1991," dated May 15, 1991 (the "Bond Date"), in the
aggregate principal amount of $7,500,000 (the "Bonds").
(2) The Bonds have been duly and officially executed
by the undersigned with their manual or facsimile signatures in
the same manner appearing thereon, and the undersigned hereby
adopt and ratify their respective signatures in the manner
appearing on each of the Bonds whether in manual or facsimile
form, as the case may be, as their true, genuine, and official
signatures.
(3) That on the Bond Date and on the date hereof, we
were and are the duly qualified and acting officers indicated
therein and authorized to execute the same.
(4) The legally adopted proper and official corporate
seal of the Issuer is impressed, imprinted, or lithographed on
all of the Bonds and impressed on this certificate.
(5) No litigation of any nature is now pending before
any federal or state court, or administrative body, or to our
knowledge threatened, seeking to restrain or enjoin the
issuance or delivery of the Bonds or questioning the issuance
or sale of the Bonds, the authority or action of the governing
body of the Issuer relating to the issuance or sale of the
Bonds, the collect ion of the revenues of the City • s Elect ric
Light and Power 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 Bonds, or that would
otherwise adversely affect in a material manner the financial
condition of the Issuer to pay the principal of and interest on
the Bonds; and that neither the corporate existence or
-,... ,"
,...
boundaries of the Issuer nor the right to hold office of any
member of the governing body of the Issuer or any other elected
or appointed official of the Issuer is being contested or
otherwise questioned.
(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 Bonds 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 Bonds, passed and adopted by the
governing body of the Issuer, has been amended, repealed,
revoked, rescinded, or otherwise modified since the date of
passage thereof, and all such proceedings and authority
relating to the issuance and sale of the Bonds remain in full
force and effect as of the date of this certificate.
EXECUTED AND DELIVERED this 05-23-91
(Issuer's Seal)
SIGNATURE
~~--/~ 0
<:::::::...__---
---------------------
OFFICIAL TITLE
Mayor, City of
Lubbock, Texas
City Secretary, City of
Lubbock, Texas
The signatures of the persons subscribed above are
hereby certified to be true and genuine.
(Bank S~al)
-2-64160
TEXAS COMMERCE BANK NATIONAL
ASSOCIATION
Lubbock, Texas
By:
DANMORA~m~
ATIORNEY GENER~
®fficc of tbc ~ttorncp ~cncral
~tate of tll:txas May 15, 1991
THIS IS TO CERTIFY that the City of Lubbock, Texas
(the "Issuer") has submitted to me City of Lubbock.
Texas. Electric Light and Power System Revenue Bond,
Series 1991 (the 11Bond11 ) in the principal amount of
$7,500,000 for approval. The Bond is dated May 15, 1991,
numbered T-1 and was authorized by Ordinance No. 9432 of
the Issuer passed on April 26, 1991 (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 Bond.
Based on my examination, I am of the opinion, as of the date
hereof and under existing law, as follows (capitalized terms,
except as herein defined, have the meanings given to them in the
Ordinance):
(1) The Bond has been issued in accordance with law and is a
valid and binding special obligation of the Issuer.
( 2) The Bond, together with the outstanding and unpaid
Previously Issued Bonds, is payable solely from and secured by
a first lien on and pledge of the Net Revenues of the Issuer•s
Electric Light and Power System.
(3) The owner of the Bond shall never have the right to
demand payment of the Bond out of any funds raised or to be
raised by taxation.
Therefore, the Bond is approved.
No. 24939
Book No. 89
spc
512/463-2100
Attorney General of the State of Texas
P.O. BOX 12548 AUSTIN, TEXAS 78711,2548
AN EQUAL EMPLOYMENT OPPORTUNITY EMPLOYER
~ ':':' 73-116
~ ":" (RIIIV.1·9115)
OFFICE OF COMPTROLLER
OF THE STATE OF TEXAS
l
l
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, Electric Light and Power System Revenue Bond,
Series 1991
T-1 numbered _____________________ of the denomination of
$ 7,500,000 dated May 15 91 ---------• 19 , as authorized by
. various lssuer,1nterest _____ percent, under and by authority of which said bonds were registered
15 May 91 inthisoffice,onthe -------dayof ,19 , asthesame
649 appears of record on page 92 ____ Bond Register of the Comptroller's Office, Vol. __ _
Register Number 53069
Given under my hand and seal of office. at Austin, Texas. the _1_5 ________ _
day of May . 19 ~.
JOHN SHARP
Comptroller of Public Accounts
State of Texas
RECEIPT FOR PAYMENT
THE STATE OF TEXAS §
§
§ COUNTY OF LUBBOCK
On the date hereof the following described bonds: "CITY
OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REVENUE
BONDS, SERIES 1991", dated April 1, 1991, in the aggregate
principal amount of $7,500,000 (the "Bonds") were delivered to
the purchaser(s) thereof, namely:
PRUDENTIAL SECURITIES INCORPORATED
following the receipt of immediately available funds from the
purchaser(s) in settlement of the agreed purchase price for the
Bonds as follows:
PRINCIPAL AMOUNT-------------$ 7,500,000.00
ACCRUED INTEREST ------------$ tJ1 JSiJ./7)
TOTAL AMOUNT RECEIVED ON
DELIVERY OF THE BONDS -------$ ~ 51.:11 /SlJ.t/P
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.
657:ZD
DELIVERED, this ~0~5-~2~3~-~9~1-------------------
TEXAS COMMERCE BANK NATIONAL
ASSOCIATION
LByubbock~ ~~
Title /}//' rr W
..
,,_.
CERTIFICATE AS TO OFFICIAL STATEMENT
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
§
§
§
§
§
RE: $7,500,000 "City of Lubbock, Texas, Electric Light &
Power System Revenue Bonds, Series 1991, dated May 15,
1991
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 Bonds, on the date of such
Official Statement, on the date of sale of
said Bonds and the acceptance of the best bid
therefor, and on the date of the delivery,
were and are true and correct in all material
respects;
(b) Insofar as the City and its
affairs, 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.
TO CERTIFY WHICH, witness my hands and the seal of the
City, this 05-23-91 ~~=-~--------------~-----------
CITY OF LUBBOCK, TEXAS
/MaYor '
~
(City Seal)
-2-6-4770
\ •
AMBAC.~
lNOEMIIIITY CQFIPQAATIOI'II I Munlci~al Bond Guaranty Insurance Policy
I i
Effective date:
I
M!.y 231 1991
A.MBAC lndemnitr Corpontion
c/o CT Corporation Systems
.ZZZ "'est Washington Avenue
Madison. Wisconsin 'S3703
Administntive Office:
One State Street Plaza
Sew York. Sew York 10004
Policy No.: 5676BE
A!\18:\C Indemnity Corporation tA.\IBAC). in consideration of the payment of the premium and subject to the terms of this policy.
herehy unc:onditionally and irrevocabl~· guarantees to any owner or holder. as hereinafter defined. of the following described
obligation~. the full and complete payment required to be made by or on behalf of the Issuer to:
I ' I I ~ ~ BANK NATIOOAL ASSOCIATION, I.DBBJCK, TEXAS l · I
or its successor nhe "Paying Agent") oi an amount equal to (il the principal of (either at the stated maturity or by any advancement
of maturit~[ pursuant to a mandatorr sinking fund payment) and interest on. the Obligations (as that term is definedbelow) as such
pa~·ments shall become due: but shall not be so pas~ (except that in the event of an}· acceleration of the due date of such principal by
reason of dtandatory or optional redemption or a celeration resulting from default or otherwise. other than any advancement of
maturity Pfrsuant to a mandatory sinking fund pa ·ment. the payments guaranteed hereby shall be made in such amounts and at
such times as such payments of principal would h, \'e been due had there not been any such acceleration); and (ii) the reimburse-
ment of any such payment which is subsequently ~ecovered from any owner or holder pursuant to a final judgement by a coun of
competent;jurisdiction that such payment constit~tes an avoidable preference to such owner or holder within the meaning of any
applicable ~ankruptcy law. The amounts referred ~o in clauses (i) and (ii) the preceding sentence shall be referred to herein collec-
tively as the "Insured Amounts" "Obligations" shall mean:
' ! $7~5oo,ooo City of IAlbbock, Texas (Inbbock County) El..ecti:ic Light am Power
~tem revenue Bonds, ser~es 1991, dated M!.y 15, 1991 and maturing on
Aptil 15 in the years 199~ thl:ouqh 2011, Wth inclusive.
l :
l"pon receipt of telephonic or telegraphic notice. ~uch notice: subsequently confirmed in writing by registered or certified mail. or
upon receipt of '1\'ritten notice by registered or cer:tified mail. by AMBAC or its designee from the Paying Agent or any owner or
holder of an Obligation or coupon thereof the payfnent of an Insured Amount for which is then due. that such required pa~·ment
has nor be~n made. AMBAC. on the due date of su~h pa)·ment or within one business day after receipt of notice of such nonpay-
ment. whiche\·er is later. will make a deposit of fuitds. in an account with United States Trust Companv of New York. in New
York. :'llewiYork. or its successor. sufficient forth¢ payment of any such Insured Amounts which arc: than due:. l 1pon presentment
and surrender of such Obligations or coupons or ~resentment of such other proof of ownership of the Obligations. together with
any appropriate instruments of assignment to evicknce the assignment of the: Insured Amounts due on the Obligations as are paid
by AMBAC I and appropriate instruments to effectthe :appointment of AMBAC as agent for such owners or holders of the Obliga-
tions or co* pons in any legal proceeding related 1 payment of Insured Amounts on the Obligations or coupons. such instruments
being in fo~m satisfactory to l!nited States Trust C mpany of New York. United States Trust Company of New York shall disburse
to such owpers holders or the Paying Agent paym~nt of the Insured Amounts due on such Obligations and coupons. less any
amount helld by the Paying Agent fouhe payment br such Insured Amounts and legally available therefore. This policy does not in-
sure against. I loss of any prepayment premium whitlth mar at any time be payable with respect to any Obligation or coupon.
I ' As used he~ein, the term "owner" shall mean the q:gistered owner of any Obligation as indicated In the books maintained by the
Paying Agent. the Issuer or any designee of the bs~er for such purpose and the term "holder" shall mean the bearer of any Obliga-
tion not re~istered as to principal or as 10 principal and interest for such purpose and. when used with reference 10 a coupon. shall
mean the bCarer of the coupon. The terms owner qr holder shall not include the Issuer or any party whose agreement with the . ---r!--~~ .. --.... _ ··-r~-t ... tnn c .. rnritv f'nr rhp {~hlhzations.
Oate ~flo '}
AMBAC~
II\IOEMNITV CORPORATION
Complaint Notice:
<"MB.-\c lnUcmnu~ Corpor;.~:tton
t:lo CT Corporation S~·stc:ms
222 West Washington Avroue
Madison, Wiscunsin '1;.,.0.~
Administrative: Office::
One State Street Plan
Should any dispute arise about your premium or about a claim that you have filed, write to the company that issued
the Policy. If the problem is not resolved, you may also write to the State Board of Insurance, Depanment c. 1110
San jacinto. Austin Texas 78976. This notice of complaint procedure is for information only and does not become a
pan or condition of this Policy.
Endorsement
Policy issued to: CITY OF LtiBBJCK, TEXAS
AMBAC Indemnity Corporation
c/o cr Corpo1'3tion Systems
222 West Washington Avenue
Madison, WISCOnsin 53703
Administrative Office:
One State Street Plaza
New York, New York 10004
Attached to and forming part of
Policy N:>. 5676BE
Effective Date of Endorsement
May 23, 1991
The Policy to which this endorsement Is attached and of which it forms a part is hereby amended by the insertion of the
following language:
"Notwithstanding anything contained herein to the contrary, when the Bonds are issued only In book entry form, the
Insurance Trustee shall disburse that portion of the principaJ and interest on the Bonds Due for Payment but unpaid by reason
of Nonpayment to a Bondholder only upon evidence satistactory to the Insurance Trustee of the Bondholder's right to receive
payment of the principaJ or interest then Due far Payment and that such right has been effectively transferred to AMBAC on the
books maintained for such purpose. Upon such disbursement AMBAC shall become the owner of the Bond, appurtenant
coupon or right of payment of prindpal or interest on such Bond and shall be fully subrogated to all the Bondholder's rights
thereunder, including the Bondholder's right to payment thereof."
Nothing herein contained shall be held to V31Y, alter, waive or extend any of the terms, conditions, provisions, agreements or
limitations of the above mentioned Polley other than as above stated.
Io. Witness Whereof, the Company has caused its Corporate Seal to be hereto affixed and these presents to be signed by its
duly authorized officers in fu.csimile to become effective as Its original seal and signatures and binding on the Company by
virtue of countersignature by its duly authorized agent
AMBAC Indemnity Corporadon
?n.e.~
Authorized Representative
Fonn II 28-000~ (5/90)
TEL NO: 212-797-.3407 ;;z:l? Pi212
---·-··j~·r -·"0-··=<1 ..L5:06 ID:RATING AGENCY DEPT •, Public Finance Oept•RATING AI'.IENCY DEPT ;1 1 SE~i 6Y•MOODY'S INVeSTORS SVC I 5•20·81 :10:48AM ~
-
Moody~ Investors Serv1ce
AMBAC Indemnity Corporat1on ona state street •laaa New York, New York 10004
Otntlamens
es Churoh ltreat, Ntw Vcrk, N.Y. 10007
Mlf 20, ·1ttl
Moody'& xnve1tor• Sarvia• haa aa•19ne4 the ratin; ct Aaa (AMBAC
In•ur~·Po11cy No. 11?6BE) to the e1,5oo,ooo City of Lubbcck, Taxa•,
Blactric t1;ht and Pow•r Sy•t .. Rev•nua Dond•, Sarias 1Stl, Wh1oh sold on April 2S, 1101.
DHaal
....
-
es/20/1991 16:09 sap
I ;
Standard It Poot Corporation
Bond lnaurance Ad niatratlon
26 Broedwav
New York, New Yor* 10004·1064
Telephone 2 1 2/208-!1 061
FAX 21 2/208·6262;
!
I
Ms. Zeyba Rahmai
Vice Pre$fdent ~
AMBAC IndemnitJ Corporation
One State Street PJpa-17th Floor
New York, New \'prk 10004
I
1ooe:st2e P.01
May 20, 1991
R.e: $1,SOO,OOO~~bbocl: (City & Count1 oj), Texas, Blectrlc Ught & Powtr Syrtem
Rtvenut B nd1, Series 1991, dtzted: May 15, 1991, due: April IS, 1992-2011
(pOUCY 676BEIACN 5420)
'·
Dear Ms. Rahman;
This is to advise ypu that we have changed lhe rating to 1AAA' from 'A+' on the subjccl
bonds. ·
The rating change(cflects our assessment of the Jikelihuod of repayment of principal and
interest based on tpe bond insurance poUey ynur company is providfn&.
When using this S~ndard & Poor's rating. Include S&l,'~ definition of the rating toaethcr
with a statement ~at thls may be changed, susllCnded or withdrawn u a result or changes in,
or unavailability o , information. This rating is not a "market rating", because it is not a
rcrommendation buyt hold or sell the obligations.
' If you have any q1estions, please contact us.
Very truly yourst
V vnCR.-1. + .-6. ~ 1-o le.J
lcf
~------------------......... ---........
CITY OF LUBBOCK, TEXAS
(Lubbock County) '
. . . . $!,500,000 •. .
rLECT···· RI·C···:· ·. uqH ..... TAN·:. D ... P. OWE ... ' .. : R.·SfSTEM REVENUE :BONDS, SERIES 1991
::''! ·': ·. :':!. ' ! :; :;: '' : ' :! •' ;
,I ' ' ' ' : : ·, ; .
. .
·. Sell~11,g Thursday, .Apri~ ;2~J 19Hl,
i. j~t 11':00 A4\1', PDT'I
q
,...
-
NOTICE OF SALE
AND
BIDDING INSTRUCTIONS
On
$7,.500,000
CITY OF LUBBOCK, TEXAS -
(Lubbock County)
ELECTRIC LIGHT AND POWER SYSTEM
REVENUE BONDS, SERIES 1991
Selling Thursday, April 2.5, 1991, at 11:00 AM, COT
THE SALE
Bonds Offered for Sale at Competitive Bidding
The City of Lubbock, Texas (the "City") is offering for sale its $7,.500,000 Electric Light and Power
System Revenue Bonds, Series 1991 (the ••sends").
Address of Bids
Sealed bids, plainly marked "Bid for Bonds", should be addressed and delivered to "Mayor and City Council,
City of Lubbock, Texas", and delivered to the City Secretary at the Municipal Complex, 162.5 Bth Street,
Lubbock, Texas, prior to 11:00 AM, COT, on the date of the bid opening. All bids must be submitted on
the Official Bid Form, without alteration or interlineation.
Place and Time of Bid Opening
The bids for the Bonds will be publicly opened and read in the City Council Chambers of the Municipal
Complex at 11:00 AM, COT, Thursday, April 2.5, 1991.
Award of the Bonds
The City Council will take action to award the Bonds (or reject all bids) on the date of the bid opening,
and adopt an ordinance authorizing the Bonds and approving the Official Statement (the ''Ordinance").
THE BONDS
Description
The Bonds will be dated May 1.5, 1991 (the "Bond Date"), and interest will be due on October 1.5, 1991, and
each April 1.5 and October 1.5 thereafter until the earlier of maturity or prior redemption. The Bonds will
be issued only in fully registered form in any integral multiple of $.5,000 for any one maturity. The Bonds
will mature on April 1.5 in each year as follows:
Principal Principal Principal
Year Amount Year Amount Year Amount
1992 $.37.5,000 1999 $.37.5,000 200.5 $Jn,ooo
199.3 .37.5,000 2000 .37.5,000 2006 .37.5,000
1994 .37.5,000 2001 .37.5,000 2007 37.5,000
199.5 37.5,000 2002 37.5,000 2008 37.5,000
1996 37.5,000 2003 .37.5,000 2009 37.5,000
1997 .375,000 2004 .37.5,000 2010 37.5,000
1998 37.5,000 2011 37.5,000
Book-Entry-Only System
The City intends to utilize the Book-Entry·Only System of The Depository Trust Co(npany (''DTC''). See
"Bond Information -Book-Entry-Only System" in the Official Statement.
Redemption
The City reserves the right, at its option, to redeem Bonds having stated maturities on and after April U,
2002, in whole or in part in principal amounts of $.5,000 or any integral multiple thereof, on April 1.5, 2001,
or any date thereafter, at the par value thereof plus accrued interest to the date Hxed for redemption.
Paying Agent/Registrar
The initial Paying Agent/Registrar shall be the Texas Commerce Bank National Association, Lubbock,
Texas (see "Paying Agent/Registrar" in Official Statement).
-1-
Source of Payment
The Bonds are payable, both as to prinCipal and interest, solely from and secured by a first lien on and a
pledge of the Net Revenues of the System after payment of maintenance and operating expenses.
Further details regarding the Bonds are set forth in the Official Statement.
CONDITIONS OF THE SALE
Type of Bids and Interest Rates
The Bonds wHl be sold in one block on an "All or None" basis, and at a price of not less than their par
value plus accrued interest to the date of delivery of the Bonds. Bidders are invited to name the rate(s) of
interest to be borne by the Bonds, p~ovided that each rate bid must be in a multiple of 1/8 of 196 or 1/20
of 196 and the net effective interest rate must not exceed 1.596. The highest rate bid may not exceed the
lowest rate bid by more than 396 in rate. No limitation is imposed upon bidders as to the number of rates
or changes which may be used. All Bonds of one maturity must bear one and the same rate. No bids
involving supplemental interest rates will be considered. Each bidder shall state in the bid the total
interest cost in dollars and the effective interest rate determined thereby (calculated in the manner
prescribed by Article 717k-2, 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 Bonds, the interest cost of each bid wHl be computed by
determining, at the rate or rates specified therein, the total dollar cost of all interest on the Bonds from
the Bond 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 and to waive any irregularities except time of filing, the Bonds will be awarded to
the bidder or syndicate account manager whose name first appears on the Official Bid Form (the
"Purchaser11) whose bid, based on the Net Interest Cost Calculation, produces the lowest net effective
interest cost to the City.
Good Faith Deposit
A Good Faith Deposit, payable to the "City of Lubbock, Texas", in the amount of $1.50,000.00 is required.
Such Good Faith Deposit shall be in the form of a Cashier's Check, or its equivalent, which is to be
retained uncashed by the City pending the Purchaser's compliance with the terms of the bid and the
Notice of Sale and Bidding Instructions. The Good Faith Deposit may accompany the Official Bid Form or
it may be submitted separately. If submitted separately, it shall be made available to the City prior to
the opening of the bids, and shall be accompanied by instructions from the bank on which drawn which
authorize its use as a Good Faith Deposit by the Purchaser who shall be named in such instructions. The
Good Faith Deposit of the Purchaser will be returned to the Purchaser upon payment for the Bonds. No
interest will be allowed on the Good Faith Deposit. In the event the Purchaser should fall or refuse to
take up and pay for the Bonds in accordance with the bid, then said check shall be cashed and accepted by
the City as full and complete liquidated damages. The checks accompanying bids other than the winning
bid will be returned immediately after the bids are opened, and an award of the Bonds has been made.
DELIVERY OF THE BONDS AND ACCOMPANYING DOCUMENTS
CUSIP Numbers
It is anticipated that CUSIP identification numbers will appear on the Bonds, but neither the faih·re to
print or type such number on any Bond nor any error with respect thereto shall constitute cause for a
failure or refusal by the Purchaser to accept delivery of and pay for the Bonds in accordance with the
terms of this Notice of Sale and Bidding Instructions and the terms of the Official Bid Form. All expenses
in relation to the printing or typing of CUSlP numbers on the Bonds shall be paid by the City; provided,
however, that the CUSIP Service Bureau charge for the assignment of the numbers shall be the
responsibility of and shall be paid for by the Purchaser.
Initial Delivery of Initial Bond
Initial Delivery will be accomplished by the issuance of one or more Initial Bonds (also called "Bonds"),
either in typed or printed form, in the aggregate principal amount of $7,.500,000, payable in stated
installments to the Purchaser, signed by the Mayor and City Secretary, approved by the Attorney General,
and registered and manually signed by the Comptroller of Public Accounts. Upon delivery of the Initial
Bond, it shall immediately be cancelled and one Bond for each maturity will be deposited with DTC in
connection with DTC's Book-Entry-Only System. Initial Delivery will be at the principal office of the
Paying Agent/Registrar. Payment for the Bonds must be made in immediately available funds for
unconditional credit to the City, or as otherwise directed by the City. The Purchaser will be given six
business days' notice of. the time fixed for delivery of the Bonds. It is anticipated that Initial Delivery of
the Initial Bond(s) can be made on or about May 30, 1991, and it is understood and agreed that the
-li-
Purchaser will accept delivery and make payment for the Bonds by 10:00 AM, COT, on May 30, 1991, or
thereafter on the date the Bond is tendered for delivery, up to and including June 13, 1991. If for any
reason the City is unable to make delivery on or before June 13, 1991, the City shall immediately contact
the Purchaser and offer to allow the Purchaser to extend its offer for an additional thirty days. If the
Purchaser does not elect to extend its offer within six days thereafter, then its Good Faith Deposit will be
returned, and both the City and the Purchaser shall be relieved of any further obligation. In no event shall
the City be liable for any damages by reason of its failure to deliver the Bonds, provided such failure is
due to circumstances beyond the City's reasonable control.
Conditions to Delivery
The obllgation of the Purchaser to take up and pay for the Bonds is subject to the Purchaser's receipt of
(a) the legal opinion of Fulbright &: Jaworski, Dallas, Texas, Bond Counsel for the City ("Bond Counsel"),
(b) the no-litigation certificate, and (c) the certification as to the Official Statement, all as further
described In the Official Statement.
In order to provide the City with information required to enable it to comply with certain conditions of
the Internal Revenue Code of 1986 relating to the exemption of interest on the Bonds from the gross
income of their owners, the Purchaser will be required to complete, execute, and deliver to the City (on
or before the date of delivery of the Bonds) a certification as to their "issue price" substantially in the
form and to the effect attached hereto or accompanying this Notice of Sale and Bidding Instructions. In
the event the successful bidder will not reoffer the Bonds for sale, such certificate may be modified in a
manner approved by the City. In no event will the City fail to deliver the Bonds as a result of the Initial
Purchaser's inability to sell a substantial amount of the Bonds at a particular price prior to delivery. Each
bidder, by submitting its bid, agrees to complete, execute, and deliver such a certificate by the date of
delivery of the Bonds, if its bid is accepted by the City. It will be the responsibility of the Purchaser to
institute such syndicate reporting requirements to make such investigation, or otherwise to ascertain the
facts necessary to enable it to make such certification with reasonable certainty. Any questions
concerning such certification should be directed to Bond Counsel.
Legal Opinions
The Bonds are offered when, as and if issued, subject to the approval of the Attorney General of the State
of Texas. Delivery of and payment for the Bonds is subject to the receipt by the Purchaser of opinions of
Bond Counsel, to the effect that the Bonds are valid and binding special obligations of the City and that
the interest on the Bonds will be excludable from gross income for federal income tax purposes under
existing law, subject to the matters described under "Tax Exemption" herein, including the alternative
minimum tax on corporations.
Certification of Official Statement
At the time of payment for, and Initial Dl!Uvery of, the Bonds, the City will execute and deliver to the
Purchaser a certificate in the form set forth in the Official Statement.
Change in Tax Exempt Status
At any time before the Bonds are tendered for delivery, the Purchaser may withdraw its bid if the interest
received by private holders on bonds of the same type and character shall be declared to be taxable
income under present federal income tax laws, either by ruling of the Internal Revenue Service or by a
decision of any Federal court, or shall be declared taxable or be required to be taken into account In
computing any federal income taxes, by the terms of any federal income tax law enacted subsequent to
the date of this Notice of Sale and Bidding Instructions.
GENERAL
Financial Advisor
First Southwest Company Is employed as Financial Advisor to the City In connection with the issuance of
the Bonds. The Financial Advisor's fee for services rendered with respect to the sale of the Bonds is
contingent upon the -issuance and delivery of the Bonds. First .Southwest Company.may submit a bid for
the Bonds, either independently or as a member of a syndicate organized to submit a bid for the Bonds.
First Southwest Company, in its capacity as Financial Advisor, has relled 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 bond documentation with respect to the federal income tax status
of the Bonds, or the possible impact of any present, pending or future actions taken by any legislative or
judicial bodies.
Blue Sky Laws
By submission of its bid, the Purchaser represents that the sale of the Bonds in states other than Texas
will be made only pursuant to exemptions from registration or, where necessary, the Purchaser will
register the Bonds in accordance with the securities law of the states in which the Bonds are offered or
-iii-
sold •. The City agrees to cooperate with the Purchaser, at the Purchaser's written request and expense, in
registering the Bonds or obtaining an exemption from registration in any state where such action is
necessary, provided, however, that the City shall not be obligated to execute a general or special consent
to service of process In any such jurisdiction.
Not an Offer to Sell
This Notice of Sale and Bidding Instructions does not alone constitute an offer to sell the Bonds, but is
merely notice of the sale of the Bonds. The offer to $ell the Bonds is being made by means of the Notice
of Sale and Bidding Instructions, the Official Bid Form and the Official Statement. Prospective
purchasers are urged to carefully examine the Official Statement to determine the investment quality of
the Bonds.
Issuance of Additional Bonds
The City has no plans for the issuance of additional Electric Light and Power System Revenue Bonds.
Ratings
The presently outstanding Electric Light and Power System Revenue Bonds, Series 1987 and Series 19881
are rated 11Aaa" by Moody's Investors Service, Inc. ("Moody's") and "AAA" by Standard & Poor's
Corporation ("S&P") through municipal bond insurance. The underlying credit rating for this debt and the
balance of the City's currently outstanding Electric Light and Power System Revenue Bonds is "Al" by
Moody's and "A+" by S&P. Requests for ratings on the Bonds have been made to both Moody's and S&P.
Municipal Bond lnstirance
In the event the Bonds 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 Pur<:haser to
disclose the existence of insurance, its terms and the effect thereof with respect to the reoffering of the
Bonds.
The Official Statement and Compliance with SEC Rule 1.5c2-12
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, ot 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 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 Bonds. 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 connection with the offering or
reoffering of the subject securities.
Additional Copies of Notice, Bid Form and Statement
A limited number of additional copies of this Notice of Sale and Bidding Instructions, the Official Bid
Form and the Official Statement, as available over and above the normal mailing, may be obtained at the
offices of First Southwest Company, Investment Bankers, .500 First City Center, 1700 Pacific Avenue,
Dallas, Texas 7.5201, Financial Advisor to the City.
On the date of the sale, the City Council will, in the Ordinance authorizing the issuance of the Bonds,
approve the form and content of the Official Statement, and any addenda, supplement or amendment
thereto, and authorize its use in the reoffering of the Bonds by the Purchaser.
ATTEST:
RANETTE BOYD
City Secretary
April I, 1991
-iv -
B. C. McMINN
Mayor
City of Lubbock, Texas ,_t
BOND YEARS
Accumulated
Year Amount Bond Years Bond Years Year
1992 $ 375,000 343.750 343.750 1992
1993 375,000 718.750 1,062.500 1993
1994 375,000 1,093.750 2,156.250 1994
.......
1995 375,000 1,468. 750 3,625.000 1995
1996 375,000 1,843.750 5,468.750 1996
1997 375,000 2,218.750 7,687.500 1997
1998 375,000 2,593.750 10,281.250 1998 -1999 375,000 2,968.750 13,250.000 1999
2000 375,000 3,343.750 16,593.750 2000
2001 375,000 3,118.750 20,312.500 2001
2002 . 375,000 4,093.750 24,406.250 2002
2003 375,000 4,468.750 28,875.000 2003
2004 375,000 4,843.750 33,718.750 2004
2005 375,000 5,218.750 38,937.500 2005
2006 375,000 5,593.~50 44,531.250 2006
2007 375,000 5,968.750 50,500.000 2007
2008 375,000 6,343.750 .56,843. 750 2008
2009 375,000 6,718.750 63,562.500 2009
2010 375,000 7,093.750 70,656.250 2010
2011 375,000 7,468.750 78,125.000 2011
Average Maturity -·-------------------------------10.417·Years
,f".
Honorable Mayor and City Council
City of Lubbock, Texas
Members of the City Council:
OFFICIAL BID FORM
April 2.5, 1991
Reference is made to your Official Statement and Notice of Sale and Biddlng Instructions, dated April I, 1991, of
$7,.500,000 CITY OF LUBBOCK, TEXAS ELECTRIC LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES 1991,
both of which constitute a part hereof.
For your legally Issued Bonds, as described In said Notice of Sale and Bidding Instructions and Official Statement, we
wut pay you par and. accrued interest from date of Issue to date of delivery to us, plus a cash premium of
$ for Bonds maturing and bearing Interest as follows:
Principal Interest Principal Interest
Maturity Amount Rate Maturiti Amount Rate
4-1.5-1992 $37.5,000 ___ 96 4-1.5-2002 $37.5,000 ___ 96
4-1.5-1993 37.5,000 ___ 96 4-1.5-2003 37.5,000 ___ 96
4-1.5-1994 3n,ooo ___ % 4-1.5-2004 37.5,000 ___ 96
4-1.5-199.5 37.5,000 ___ 96 4-1.5-200.5 37.5,000 ___ 96
4-1.5-1996 375,000 ___ 96 4-1.5-2006 37.5,000 ___ %
4-1.5-1997 37.5,000 ___ % 4-1.5-2007 37.5,000 __ %
4-1.5-1993 37.5,000 ___ % 4-1.5-2003 37.5,000 ___ %
4-1.5-1999 375,000 ___ 96 4-1.5-2009 375,000 ___ 96
4-1.5-2000 37.5,000 ___ % 11-1.5-2010 37.5,000 ___ 96
4-l.s-2001 37.5,000 ___ 96 4-1.5-2011 375,000 ___ 96
Our calculation (which Is not a part of this bid) of the Interest cost from the above Is:
Total Interest Cost $
Less Premium
NET INTEREST COST $
EFFECTIVE INTEREST RATE 96
We are having the Bonds of the following maturities Insured by
at a premium of $ , said premium to be paid by the Purchaser. ""A'""n-y'"'f'""e_e_s .,.to_,..be-pa....,..id'""to,--t"'h_e_r-ating agencies as a result of said Insurance will be paid by the City.
The Initial Bond shall be registered in the name of • We will advise The
Depository Trust Company ("DTC") of registration Instructions at least five business days prior to the date set for
Initial Delivery.
A Cashier's Check of the Bank, , in the amount of
$UO,OOO.OO, which represents our Good Faith Depos1t (is attached hereto) or (has been made available to you prior to
the opening of this bid), and is submitted In accordance with the terms as set forth In the Official Statement and
Notice of Sale and Bidding Instructions.
We agree to accept delivery of the Bonds utilizing the Book-Entry-Only System through DTC and make payment for
the Initial Bond In immediately available funds in the Corporate Trust Division, Texas Commerce Bank National
Association, Lubbock, Texas, not later than 10:00 A.M., CDT, on May 30, 1991, or thereafter on the date the Bonds
are tendered for delivery, pursuant to the terms set forth In the Notice of Sale and Bidding Instructions.
The undersigned agrees to complete, execute, and deliver to the City, at least six business days prior to delivery of
the Bonds, a certificate relating to the "issue price" of the Bonds in the form and to the effect accompanying the
Notice of Sale and Bidding Instructions, with such changes thereto as may be acceptable to the City.
We agree to provide In writing the initial reofferlng prices and other terms, if any, to the Financlal Advisor by the
close of the next bu!llness day after the award.
Respectfully submitted,
By-------.~~~'"~~~~~-----Authorlzed Representative
ACCEPTANCE CLAUSE
The above and foregoing bid Is hereby In all things accepted by the City of Lubbock, Texas, subject to and In
accordance with the Notice of Sale and Bidding Instructions, this the 2.Sth day of April, 1991.
Mayor
City of Lubbock, Texas
ATTESTs
City Secretary
r
"
r
Honorable Mayor and City Council
City of Lubbock, Texas
Members of the City Council:
OFFICIAL BID FORM
AprU 2,, 1991
Reference Is made to your Official Statement and Notice of Sale and Bidding Instructions, dated Aprlll, 1991, of
$7,,00,000 CITY OF LUBBOCK, TEXAS ELECTRIC LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES 1991,
both of which constitute a part hereof.
For your .legally issued Bonds, as described In said Notice of Sale and Bidding Instructions and Official Statement, we
will pay you par and . accrued Interest from date of issue to date of delivery to us, plus a cash premium of
$ for Bonds maturing and bearing Interest as follows:
Principal Interest Principal Interest
Maturity Amount Rate Maturity Amount Rate
4-U-1992 S3n,ooo ___ % 4-U-2002 $37,,000 ___ %
4-U-1993 3H,OOO ___ % 4-U-2003 37,,000 ___ %
lf-U-1994 37,,000 ___ % 4-U-2004 37,,000 ___ %
4-U-199' 37,,000 ___ % 4-U-200' 3n,ooo ___ %
4-U-1996 37,,000 ___ % 4-U-2006 37,,000 ___ %
4-U-1997 3n,ooo ___ % 4-U-2007 3n,ooo ___ %
4-1,-1998 37,,000 ___ % 4-U-2008 3n,ooo ___ %
4-U-1999 3n,ooo ___ % 4-U-2009 3H,OOO ___ %
4-1,-2000 37,,000 ___ % 4-U-2010 37,,000 ___ %
4-1,-2001 37,,000 __ % 4-1,-2011 3n,ooo __ %
Our calculation (which is not a part of this bid) of the interest cost from the above is:
Total Interest Cost $
Less Premium
NET INTEREST COST s
EFFECTIVE INTEREST RATE '16
We are having the Bonds of the following maturities Insured by
at a premium of $ , said premium to be paid by the Purchaser. -;A~n-y-;fre~es::-:-to~be~pa-1~· drt~o~th~e-r:-:atlng agencies as a result of said insurance will be paid by the City.
The Initial Bond shall be registered in the name of • We will advise The
Depository Trust Company ("DTC") of registration instructions at least five business days prior to the date set for
Initial Delivery.
A Cashier's Check of the Bank, , In the amount of
$1.50,000.001 which represents our Good Faith Deposit (is attached hereto) or (has been made available to you prior to
the opening of this bid), and is submitted in accordance with the terms as set forth in the Official Statement and
Notice of Sale and Bidding Instructions.
We agree to accept delivery of the Bonds utilizing the Book-Entry-Only System through DTC and make payment for
the lnltlal Bond in immediately available funds in the Corporate Trust Division, Texas Commerce Bank National
Association, Lubbock, Texas, not later than 10:00 A.M., COT, on May 301 19911 or thereafter on the date the Bonds
are tendered for delivery, pursuant to the terms set forth in the Notice of Sale and Bidding Instructions.
The undersigned agrees to complete, execute, and deliver to the City, at least six business days prior to delivery of
the Bonds, a certificate relating to the "issue price" of the Bonds in the form and to the effect accompanying the
Notice of Sale and Bidding Instructions, with such changes thereto as may be acceptable to the City.
We agree to provide 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.
Respectfully submitted,
By------~~~~~~~~~-----Authorized Representative
ACCEPTANCE CLAUSE
The above and foregoing bid is hereby in all things accepted by the City of Lubbock, Texas, subject to and in
accordance with the Notice of Sale and Bidding Instructions, this the 2'th day of April, 1991.
Mayor
City of Lubbock, Texas
ATTEST I
City Secretary
r"
NEW ISSUE OFFICIAL STATEMENT
Dated Aprlll, 1991
In the opinion of Bond Counsel, interest on the Bonds will be excludable from gross income for federal
income tax purposes under existing law, subject to the matters described under "Tax Exemption" herein,
including the alternative minimum tax on corporations.
$7,.500,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
ELECTRIC UGHT AND POWER SYSTEM REVENUE BONDS, SERIES 1991
Dated: May 1.5, 1991 Due: April 1.5, as shown below
Interest on the $7,500,000 City of Lubbock, Texas (the "City") Electric Light and Power System Revenue
Bonds, Series 1991 (the "Bonds") will accrue from the dated .date as shown above and will be payable
April 15 and October 15 of each year, commencing October 15, 1991, and will be calculated on the basis
of a 360-day year of twelve 30-day months. The City intends to utilize the Book-Entry-Only System of
The Depository Trust Company ("DTC"), but reserves the right on its behalf or on the behalf of DTC to
discontinue such system. Such Book-Entry-Only System will affect the method and timing of payment and
the method of transfer. See "Bond Information -Book-Entry-Only System" herein.
The Bonds are issued pursuant to the general laws of the State of Texas, particularly Articles 1111, et
seq., Article 2368a, VA TCS, Chapter 252 of the Local Government Code, and an ordinance (the
"Ordinance") passed by the City Council, and are special obligations of the City and, together with certain
other outstanding revenue bonds of the City, are payable, both as to principal and interest, solely from
and secured by a first lien on and pledge of the Net Revenues of the City's Electric Light and Power
System. The City has not covenanted nor obligated itself to pay the Bonds from monies raised or to be
raised from taxation (see "Authority for Issuance").
The initial Paying Agent/Registrar shall be the Texas Commerce Bank National Association, Lubbock,
Texas (see "Paying Agent/Registrar").
Proceeds from the sale of the Bonds will be used to construct a new South substation along with required
transmission and distribution lines, for the relocation of existing facilities from the right-of-way of an
east/west cross-city freeway to be constructed and to pay costs of issuance of the Bonds.
MATURITY SCHEDULE
Amount Maturitl Rate Yield Amount Maturitl ~ ~ $375,000 4-15-1992 $375,000 4-1.5-2002
375,000 4-15-1993 375,000 4-15-2003
37.5,000 4-15-1994 375,000 4-1.5-2004
375,000 4-1.5-1995 37.5,000 4-1.5-200.5
37.5,000 4-1.5-1996 37.5,000 4-1.5-2006
37.5,000 4-15-1997 375,000 4-15-2007
37.5,000 4-1.5-1998 375,000 4-1.5-2008
375,000 4-1.5-1999 375,000 4-15-2009
37.5,000 4-1.5-2000 37.5,000 4-15-2010
375,000 4-15-2001 375,000 4-15-2011
The City reserves the right, at its option, to redeem Bonds having stated maturities on and after April 15,
2002, in whole or in part in principal amounts of $5,000 or any integral multiple thereof, on April 1.5, 2001,
or any date thereafter, at the par value thereof plus accrued interest to the date fixed for redemption
(see "Redemption of Bonds").
The City's presently outstanding Electric Light and Power System Revenue Bonds, Series 1987 and Series
1988, are rated "Aaa" by Moody's Investors Service ("Moody's") and "AAA" by Standard & Poor's
Corporation ("S&:P") through municipal bond insurance. The underlying credit rating for this debt and the
balance of the City's currently outstanding Electric Light and Power System Revenue Bonds is "A1" by
Moody's and "A+" by S&:P. Requests for rating for the Bonds have been made to both Moody's and S&:P.
The Bonds are offered for delivery when, as and if issued and received by the purchaser(s) and subject to
the approving opinion of the Attorney General of the State of Texas and of Fulbright & Jaworski, Bond
Counsel, Dallas, Texas. The legal opinion will be printed on the Bonds (see Appendix B, ''Form of Bond
Counsel's Opinion").
It is expected that the Bonds will be tendered for delivery to the Initial purchasers through The Depository
Trust Company.
Delivery: Anticipated on or about May 30, 1991
This Official Statement does not constitute an offer to sell Bonds in any jurisdiction to any person tq whom it is unlawful to
make such offer in such jurisdiction. No dealer, salesman, or any other person has been authorized to give any information or
make any representation, other than those contained herein; in connection with the offering of these Bonds, and if given or made,
such information or representation must not be relied upon. The information and expressions of opinion herein are subject to
change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any
circumstances, create any implication that there has been no change in the affairs of the City since the date hereof.
TABLE OF CONTENTS
Official Statement Description of the Bonds _______ ..;_.., ______________________________________________ _
City Administration Elected Officials---------•-----.; _______________________________________________ _
Appointed Officials -------------------------------------------------------------
Consultants and Advisors·------------------------------------------------------""'-.-
Selected Data from the Official Statement --------------------------------------------
Bond Information
Authority for Issuance -----------------------------------------------------------
Security for Bonds --------------------------------------------------------------
Pledge of Net Revenues -------------------------------------------------.,.-------
Rates ------------------------------------------------------------------------Redemption of Bonds ------------------------------------------------------------
Additional Bonds--------------:--------------------------------------------------
Book-Entry-Only System -----------------------•---------------------------------Paying Agent/Registrar------.. ------------------------------------------------.,---
Transfer, Exchange and Registration--------------------------------------,.--------
Limitation of Transfer of Bonds Called For Redemption ------------------------------
Record Date for Interest Payment----------------------,-----------·---------------
UseofBond Proceeds------------------------------------------------------------
Sources and Uses of Funds-----------------------------------------.---------------
Electric Light and Power System
Operating Statement for Past Five Fiscal Years-------------------------------------
Projection of Gross Revenues, Operating Expense and Net Revenues ------------------
Anticipated Issuance of Revenue Bonds --------------------------------------------
Fixed Asset Value of the Electric Light and Power System----------------------------
City's Equity in the Electric Light and Power System --------------------------------
TheSystern ----------------------~---------------------------------------------Adobe Gas Pipeline Company ---------------:--------------------------------------
State of Texas-General Land Office -----------------------------------------------
Prudential-Bache Energy Growth Fund----:..----------------------------------------
Choctaw Partners---------------------------------------------------------------
Other Sources of Gas Supply------------------------------------------------------
Secondary Fuel -----------------------------------------------------·-----------West Texas Municipal Power Agency-----------------------------------------------
ElectricRates-----------------------------------------------------------------·
Fuel Cost Recovery -------------------------------------------------------------Tax Adjustment-----------------------------------------------------------------
Residential Service--------------------------------------------------------------
Electric Living Service ------•---------------------------------------------------
GeneralService-----------------------------------------------------------------
Heating Rider --------------~---------------------------------------------------Municipal Lighting and Power Service----------------------------------------------
Irrigation Power Service ---------------------------------------------------------
Public and Parochial School Service -------------'----------------------------..:-----Large General Service-----------------------------------------------------------
Street Lighting Service --------·----------------------•------------------------·--
011 Well Pumping Service --------------------------------------------------------
Industrial Feed Mill and Elevator Service-------------------------------------------
Cotton Gin Service --------------------------------'------------------------------
Guard Light Service ---------------------•---------------------------------------
Billings -------------------------------------------·-----------------------------
Comparison of Selected Current and Previous Rates '------'---------·-----------------
Comparison -of Selected Customer Usage and Billings --------------------------------
Ten Largest Customers ----------------------------------------------------------
Analysis of Electric Bills--------·---------------:..-----------------------·---------
Statistical Data----------------------------------------------------------------.:.
Graph-System Energy Requirements-------------------------.. --------------------
Graph -System Capacity and Demand ---------------------------------------------
Debt Information
Debt Service Requirements-------------------------------------------------------
Selected Provisions of the Bond Ordinance------------------------------------------
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Other Relevant Information
Ratings------------------------------------------------------------------------
Tax Exemption -----------------------------------------------------------------
T~~ Ac~ounting Treatment of Discount Bonds---------------------------------------
Ltttgatton ---------------------------------------------------:-------------------Registration and Qualification of Bonds for Sale-------------------------------------
Legal Investments and Eligibility to Secure Public Funds in Texas----------------------
Legal Opinions and No-Litigation Certificate ---------------------------------------
Authenticity of Financial Data and Other Information--------------------------------
Financial Advisor ---------------------------------------------------------------
Certification of the Official Statement --------------------------------------------
Appendices
General Information Regarding the City--------------------------------------------
Form of Bond Counset•s Opinion---------------------------------------------------
Audited Financial Statement
.34
.34
.34/.35
.35
.35
.3.5
.3.5/.36
.36
.36
.36
A
B
Audited Financial Statements, September .30, 1990 ----------------------------------Enclosure
The cover page hereof, this page, the appendices included herein, the Financial Statements and any
addenda, supplement or amendment hereto, are part of the Official Statement.
-.3 -
Elected Officials
City Council
B.C. McMinn
Mayor
T. J. Patterson
Mayor Pro-T em
Joan Baker
Councilwoman
M. J. Aderton
Councilman
Maggie Trejo
Councilwoman
Length
of Service
.5 Years
7 Years
11 Years
1 Year
7 Years
CITY ADMINISTRA noN
Term
Ex~ires Occu(!2tion
May, 1992 Retired; Investments
May, 1992 Co-Publisher, SouthWest Digest
May, 1992 Homemaker
May, 1994 Retired
May, 1994 Homemaker
Bill Maloy
Councilman
3 Years May, 1992 President, Sentry Property Management, Inc.
Gary D. Phillips
Councilman
.5 Years May, 1994 Phillips & Associates-Real Estate Appraisal
Appointed Officials
Name
Larry J. Cunningham
Bob Cass
John C. Ross, Jr.
Ranette Boyd
J. Robert Massengale
Rita P. Harmon
James E. Bertram
Carroll McDonald
Dan A. Hawkins
Don Bridgers
Consultants and Advisors
Position
City Manager
Deputy City Manager
City Attorney
Secretary-Treasurer
Assistant City Manager for Financial Services
Assistant City Manager for Public Safety
and Services
Assistant City Manager for Development Services
Assistant City Manager for Utilities
Director of Water Utilities
Chief of Police
Length of
Length of Employment
Time in With City
This Position of Lubbock
14 Years 24 Years
6 Years 1.5 Years
12 Years 12 Years
7 Years 17 Years
8 Years 11 Years
8 Years 1.5 Years
8 Years 21 Years
2 Years 12 Years
2 Years 3 Years
1 Year 23 Years
Auditors -----------------------------------------------------------------Coopers & Lybrand Certified Public Accountants
Lubbock, Texas
Bond Counsel ------------------------------------------------------------Fulbright & Jaworski
Dallas, Texas
Financial Advisor ----------------------------------------------------First Southwest Company Dallas and Abilene, Texas
For additional information regarding the City, please contact:
Mr. J. Robert Massengale
Assistant City Manager
for Financial Services or
City of Lubbock
P.O. Box 2000
Lubbock, TX 794.57
(806) 762-6411
Mr. Joe W. Smith
First Southwest Company
P.O. Box 27.54
Abilene, TX 79604-27.54
(91.5) 672-8432
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SELECTED DATA FROM THE OFFICIAL STATEMENT
The selected data on this page is subject in all respects to the more complete information and definitions
contained or incorporated in this Official Statement. The offering of the Bonds to potential investors is
made only by means of this entire Official Statement. No person is authorized to detach this data page
from this Official Statement or to otherwise use it without the entire Official Statement.
This data page was prepared to present the purchasers of the Bonds information concerning the Bonds, the
revenues pledged to payment of the Bonds, the description of the revenue base and other pertinent data,
all as more fully described herein.
The Issuer--------------The City of Lubbock, Texas is. a political subdivision located in Lubbock
County operating as a home-rule city under the laws of the State of Texas and
a charter approved by the voters in 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 two year terms
ending in even years. Each of the six members of the City Council resides in a
separate single-member district and is elected by the qualified voters of that
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.
The Bonds--------------
Security for the Bonds --
Optional Redemption ----
Tax Exemption----------
Use of Bond Proceeds----
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 is 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 Bonds are being issued in the principal amount of $7,.500,000 pursuant to
the general laws of the State of Texas, particularly Article 1111, et seq.,
Article 2368a, VATCS, and Chapter 2.52 of the Local Government Code, and an
Ordinance passed by the City Council of the City (see "Authority for
Issuance").
The Bonds constitute special obligations of the City payable, both as to
principal and interest, and secured, together with certain other outstanding
revenue bonds of the City, by a first lien on and pledge of the Net Revenues of
the City's Electric Light and Power System (the "System"). The City has not
covenanted or obligated itself to pay the Bonds from monies raised or to be
raised from taxation (see "Security for Bonds").
The City reserves the right, at its option, to redeem Bonds having stated
maturities on and after April 1.5, 2002, in whole or in part in principal amounts
of $.5,000 or any integral multiple thereof, on April1.5, 2001, or any date
thereafter, at the par value thereof plus accrued interest to the date fixed for
redemption (see"Redemption of Bonds").
In the opinion of Bond Counsel, the interest on the Bonds will be excludable
from gross income for federal income tax purposes under existing law, subject
to the . matters described under "Tax Exemption" herein, including the
alternative minimum tax on corporations.
Proceeds from the sale of the Bonds will be used to construct a new South
substation along with required transmission and distribution lines, for the
relocation of existing facilities from the right-of-way of an east/west cross-
city freeway to be constructed and to pay costs of issuance of the Bonds.
Payment Record --------The City has never defaulted.
Selected Issuer Indices
Fiscal S;r:stem Data Net Revenues Coverage
Year Estimated kWh System Available Annual Debt of Annual
Ended City to PeakkW Electric for Debt Service Debt
9/30 Po~lation S:r:stem Demand Connections Service ~uirements Service
1986 188,283 (1) 7.58,35.5,020 162,39.5 41,399 $12,471,4.54 4,293,21.5 2.90X
1987 188,694 (1) 782,064,690 17.5,004 42,702 12,668,349 4,123,828 3.07X
1988 190,017 (1) 837,3.52,010 183,300 43,781 19,804,412 4,889,198 4.05X
1989 il91,403 (1) 887,297,920 188,32.5 44,402 18,64.5,714 6,814,.514 2.74X
1990 !186,206 (2) 934,099,116 199,063 4.5,114 18,467,791 6,638,940 2.78X
(1) Source: Estimates by City of Lubbock, Texas.
(2) 1990 U.S. Census population.
-5-
BOND INFORMAnON
Authori~>: for Issuance
The Bonds are issued pursuant to the general Jaws of the State of Texas, particularly Articles 1111, et
seq., Article 2368a, VATCS, and Chapter 2.52 of the Local Government Code, and an Ordinance as
. authorized in the City Charter.
Security for Bonds
The Bonds are special obligations of the City payable, both as to principal and interest, solely from and
secured by a fitst lien on and pledge of the Net Revenues of the City's Electric Light and Power System
(the "System") after the payment of maintenance and operating expenses. Maintenance and operating
expenses include contractual payments which under Texas laws and their provisions are established as
operating expenses. The Bonds are not a charge upon any other income or revenues of the City and shall
never constitute an indebtedness or pledge of the general credit or taxing powers of the City. The
Ordinance does not create a lien or mortgage on the System and any judgment against the City may not be
enforced by levy and execution against any property owned by the City,
As additional security, there has been established a Reserve Portion of the Bond Fund (the "Interest and
Sinking Fund'') which shaH be funded in an amount at least equal to the average annual debt service
requirements of the outstanding Previously Issued Bonds, and the Bonds and any Additional Bonds issued on
a parity with the Bonds (colJectively, the "Bonds Similarly Secured''). The Reserve Portion of the Bond
Fund will be fully established on the date of delivery of the Bonds.
Pledge of Net Revenues
All of the Net Revenues derived from the operation of the System, with the exception of those in excess
of the amounts required to establish and maintain the Special Funds created for the payment and security
of the Bonds Similarly Secured, are irrevocably pledged by the Ordinance for the payment of the
Previously Issued Bonds, the Bonds and Additional Bonds, if issued, and the interest thereon, and the
Ordinance ordains that the Previously Issued Bonds, the Bonds and the Additional Bonds, if issued, and the
interest thereon, shall constitute a first lien on the Net Revenues of the System.
As defined in the Ordinance:
"Net Revenues" shall mean the gross revenues of the System less expenses of operation and maintenance.
Such expenses of operation and maintenance shall not include depredation charges or funds pledged for
the Bonds Similarly Secured, but shall include all salaries, labor, materials, repairs, and extensions
necessary to render services; provided, however, that in determining "Net Revenues", only such repairs
and extensions as in the judgment of the City Council, reasonably and fairly exercised are necessary to
keep the System in operation and render adequate service to the City and inhabitants thereof, or such as
might be necessary to meet some physical accident or condition which otherwise would impair the
security of the Bonds Similarly Secured, shall be deducted.
"System" shall mean all properties real, personal, mixed or otherwise, now owned or hereafter acquired by
the City of Lubbock through purchase, construction or otherwise, and used in connection with the City's
Electric Light and Power System and in anywise pertaining thereto, whether situated within or without
the llmits of the City.
"Previously Issued Bonds" shall mean the outstanding and unpaid revenue bonds, designated "CITY OF
LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REVENUE BONDS", and payable from and
secured by a first lien on and pledge of the Net Revenues of the System.
"Additional Bonds" shall mean the additional parity obligations the City reserves the right to issue in
accordance with the terms and conditions of the Ordinance,
"Bonds Similarly Secured'' shall mean the Previously Issued Bonds, the Bonds and Additional Bonds,
See "Selected Provisions of the Bond Ordinance",
Rates
The City has covenanted in the Ordinance that rates and charges for electric power and energy afforded
by the System will be established and maintained to provide revenues sufficient at all times to pay:
(a) all necessary and reasonable expenses of operating and maintaining the System as set forth herein in
the definition "Net Revenues" and to recover depreciation;
(b) the amounts required to be deposited to the Bond Fund to pay the principal of and interest on the
Bonds Similarly Secured as the same becomes due and payable and to accumulate and maintain the reserve
amount required to be deposited therein; and
(c) 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.
-6-
r
Redemption of Bonds
The City reserves the right, at its option, to redeem Bonds having stated maturities on and after April U,
2002, in whole or in part in principal amounts of $.S,OOO or any integral multiple thereof, on April U, 2001,
or any date thereafter, at the par value thereof plus accrued interest to ,the date fixed for redemption. If
less than aU of the Bonds 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 Bonds, or portions thereof, within such maturity to be
redeemed.
Not less than 30 days prior to a redemption date for the Bonds, the City shall cause a notice of
redemption to be sent by United States mail, first class, postage prepaid, to each registered owner of a
Bond to be redeemed, in whole or in part, at the address of the registered owner appearing on the
registration books of the Paying Agent/Registrar at the dose of business on the business day next
preceding the date of maiUng such notice. Any notice of redemption so mailed shall be conclusively
presumed to have been duly given irrespective of whether received by the bondholder.
Additional Sonds
The City has no plans for the issuance of additional Electric light and Power System Revenue Bonds.
Book-Entry-Only System
The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the
Sonds. The ownership of one fully registered Bond, respectively, for each maturity as set forth on the
cover page hereof, each in the aggregate principal amount of such maturity, will be registered in the
name of Cede & Co., as nominee for DTC. DTC is a limited purpose trust company organized under 'the
laws of the State of New York, a member of the Federal Reserve System, a "dearing corporation" within
the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to
the provisions of Section 17 A of the Securities Exchange Act of 1934, as amended. DTC was created to
hold securities of its participants (the "DTC Participants") and to facilitate the clearance and settlement
of securities transactions among DTC Participants in such securities through electronic book-entry
changes in accounts of the DTC Participants, thereby eliminating the need of physical movement of
securities certificates. DTC Participants include securities brokers and dealers, banks, trust companies,
clearing corporations, and certain other organizations, some of whom (and/or their representatives) own
DTC. Access to the DTC system is also available to others such as banks, brokers, dealers and trust
companies that clear through or maintain a custodial relationship with a DTC Participant, either directly
or indirectly (the "Indirect Participants").
Ownership interest in the Bonds may be purchased by or through Participants. The DTC Participants shall
receive a credit balance in the records of DTC. The ownership interest of each actual purchaser of each
Bond (the "Beneficial Owner") will be recorded through the records of the DTC Participant. It is ,the
responsibility of each Beneficial Owner to make the necessary arrangements with its DTC Participant.
Beneficial Owners are expected to receive a written confirmation of their purchase providing details of
the Bond acquired. Transfers of ownership interests in the Bonds will be accomplished by book entries
made by DTC and, in turn, by the DTC Participants who act on behalf of the Beneficial Owners.
Beneficial Owners will not receive certificates representing their ownership interest in the Bonds, except
as specifically provided in the Agreement with DTC for utilization of such Book-Entry-Only System (the
"Agreement").
So long as Cede & Co. is the registered owner of the Bonds, as nominee of DTC, references herein, in the
Ordinance, or in the Bonds, to the Bondowners or registered owners of the Bonds shall mean Cede & Co.
and shall not mean the Beneficial Owners of the Bonds.
DTC may determine to discontinue providing its service with respect to the Bonds at any time by giving
notice to the City and discharging its responsibilities with respect thereto under applicable law. Under
such circumstances, bond certificates are required to be delivered as described in the Agreement. The
Beneficial Owner, upon registration of bond certificates held in the Beneficial Owner's name, will become
the registered owner of the Bonds.
The City may determine that continuation of the system of book-entry transfers through DTC (or a
successor securities depository) is not in the best interest of the Beneficial Owners. In such event, bond
certificates will be delivered as described in the Agreement.
The City and the Paying Agent/Registrar will recognize DTC or its nominee as the Bondowner for all
purposes, including notices and voting. Conveyance of notices and other communications by DTC to DTC
Participants, by DTC Participants to Indirect Participants,· and by DTC Participants and Indirect
Participants to Beneficial Owners wlll be governed by arrangements among them, subject to any statutory
and regulatory requirements as may be in effect from time to time. Each Beneficial Owner should ensure
that it has made satisfactory arrangements with the appropriate DTC Participant.
-7-
Principal and interest payments on the Bonds will be made to DTC or its nominee, Cede &:. Co., as
registered owner of the Bonds. Upon receipt of moneys, OTC's current practice is to immediately credit
the accounts of the DTC Participants in accordance with their respective holdings shown on the records of
OTC •. Payments by DTC Participants and Indirect Participants to Beneficial Owners will be governed by
standing instruCtions' and customary practices, as is now the case with municipal securities held for the
accounts of customers in bearer form or registered in "street name", and wlll be the responsibility of such
· DTC Participant or Indirect Participant and not of DTC, the Paying Agent/Registrar or the City, .subject
to any statutory and regulatory requirements as may be in effect from time to time. Each ;Beneficial
Owner should ens~re that it has made satisfactory arrangements with the appropriate OTC Participant.
Paying Agent/Registrar ·
; The initial Paying Agent/Registrar is Texas Commerce Bank National Associati~n, Lubbock, Texas. In the
Ordinance the City retains the right to replace the Paying Agent/Registrar. The City covenants to
maintain and provide a Paying Agent/Registrar at all times while the Bonds are outstanding and any
successor Paying Agent/Registrar shall be a commercial bank or trust company organized under the laws
of the State of Texas or other entity duly qualified and legally authorized to serve as and perform the
duties and services of Paying Agent/Registrar for the Bonds. Upon any change in the Paying
Agent/Registrar for the Bonds, the City agrees to promptly cause a written notice thereof to be sent to
each registered owner of the Bonds 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, or its use by the City, should be discontinued, the Bonds. 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 Bond may be
assigned by the execution of an assignment form on the Bond or by other instrument of transfer and
assignment acceptable to the Paying Agent/Registrar. A new Bond or Bonds will be delivered by the
Paying Agent/Registrar, in lieu of the Bond being transferred or exchanged, at the principal office of the
Paying Agent/Registrar, or sent by United States mail, first class, postage prepaid, to the new registered
owner or his designee. To the extent possible, new Bonds issued in an exchange or transfer .of Bonds will
be delivered to the registered owner or assignee of the registered owner in not more than three business
days after the receipt of the Bonds to be cancelled, and the written instrument of transfer or request for
exchange duly executed by the registered owner or his duly authorized agent, in form satisfactory to the
Paying Agent/Registrar. New Bonds registered and delivered in an exchange or transfer shall be in any
integral multiple of $.5,000 for any one maturity and for a like aggregate principal amount as the Bond or
Bonds surrendered for exchange or transfer. See "Book-Entry-Only System" herein for a description of the
system to be utilized initially in regard to ownership and transferabillty of the Bonds.
Limitation on Transfer of Bonds Called for Redemption
Neither the City nor the Paying Agent/Registrar shall be required to transfer or exchange to an assignee
of the owner of the Bonds any Bond called for redemption, in whole or in part, within 11.5 days of the date
fixed for redemption; provided, however, such limitation of transfer shall not be appllcable to an exchange
by the registered owner of the uncalled balance of a Bond.
Record Date for Interest Payment
The record date ("Record Date") for the interest payable on any interest payment date means the close of
business on the last business. day of the preceding month.
In the event of a non-payment of interest on a scheduled payment date, and .for 30 days thereafter, a new
record date for such interest payment (a "Special Record Date") wHl 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 1.5 days after the Special Record Date) shall be sent at least flve business
days prior to the Special Record Date by United States mailt first class postage prepaid, to the address of
each Holder of a Bond appearing on the registration books of the Paying Agent/Registrar at the close of
business on the last business day next preceding .the date of mailing of such notice •
. Use of Bond Proceeds
Proceeds from the sale of the Bonds will be used to:
1. Construct a new System substation to meet expected load growth in South and Southwest Lubbock; and
2. Relocate several existing System facilities from the construction area of the route of a new cross-city
freeway (the "East/West" Freeway).
-8-
I'
I .....
Sources and Uses of Funds
Sources:
Uses:
Proceeds from Sale of Bonds
Substation Construction
East/West Freeway clearing
Total Uses of Funds
(I) Includes costs of issuance of the Bonds.
-9-
$7 • .500,000
$3,900,000
3 600 000 sz:soo:ooo( 1) .
ELECTRIC LIGHT AND POWER SYSTEM
(Lubbock Power and Light)
Operating Statement for Past Five Fiscal Years
REVENUES 1990
For Fiscal Year Ended Seetember 301 1989 1988 1987
Operating Revenues:
Charges for Services (1) $49,271,634 $49,28.5,97.5 $49,102,9.51 $1+4 • .51'#, .574
Non-Operating Income 2 926 1.58 3 802 433 2 629 613 803 100
GROSS REVENUES ~.52:197:792 ~.53:088:408 ~.51:732:.564 ~4.5 1 317:674
OPERATING EXPENSE (2)
Personal Services $ 3,9.51 ,348 $ 4,479,0.5.5 $ 4' 111 '6.51 $ 3,688,037
Supplies 386,710 326,267 31.5,831 322,.529
Maintenance 468,221 694,814 627,760 .504,.506
Power Plant Fuel 17,294,422 17,481,480 17,766,872 18,039,787
Purchase Power 8,09.5,769 8,279,323 6,080,.5.51 .5,991,61.5
Uncollectible Accounts .526,.533 972,176 937,09.5 2,1+43,429(3)
Other Charges 31006 1998 21209 1.579 21088 1392 116.59 1422
TOTAL OPERATING EXPENSE ~33 1 7301 001 ~341 1+42 1 694 ~31 1928 1 1.52 ~32 1 6491 32.5
NET REVENUES ~18 1 4671 791 ~18 1 64.5 1 714 ~19 1804 1 412 ~12 1 668 1349
Electric Connections 4.5,114 44,402 43,781 42,702
1986
$44,873,.526
989 194 ~4.51862:720
$ 3,641,886
342,863
423,1+41
19,603,1.52
6,8.54,.5.50
6.54,971+
11870 11+00
~331 391 1 266
~12 1 471 1 4.54
41,399
(I) The current rate structure became effective June 1, 1989; the present fuel cost recovery factor
became effective April 2, 1990. The revised rates resulted in an initial annual revenue decrease of
approximately $.567,000 (1.1.596) and the lower fuel cost adjustment resulted in an annual revenue decrease
of approximately $4,42.5,000 (9%); however, load growth increases in 1989 and 1990 offset these decreased
revenues.
Charges for Services exclude profit-sharing and fuel cost refunds returned to customers of Lubbock Power
and Light as follows:
(2) Excludes depreciation.
Fiscal Year
Ended 9-30
1987
1989
1990
Refunds to
Customers
$2,817,783
1,617,172
1,981,91+6
(3) Write-off of total accumulated uncollectible accounts for the three Fiscal Years Ended 9-30-84
through 86. For fiscal years subsequent to Fiscal Year Ended 9-30-87, uncollectible account write-offs
are those outstanding for the previous fiscal year.
Net Revenues, Fiscal Year Ended 9-30-90 -------------------------------------------$18,467,791
Average Annual Principal and Interest Requirements, 1992/2011 (including the Bonds)----$ 3,473,974
Coverage by Net Revenues, Fiscal Year Ended 9-30-90 ------------------------------.5.32 Times
Maximum Principal and Interest Requirements, 1992 ---------------------------------$ 6, 934,780
Coverage by Net Revenues, Fiscal Year Ended 9-30-90 ------------------------------2.66 Times
Electric Light and Power System Revenue Bonds to be Outstanding After
Issuance of the Bonds-----------------------------------------------------------$43,29.5,000
Interest and Sinking Fund, 2-1.5-91 ------------------------------------------------$ .5, 989,32.5
Reserve Fund, 2-1.5-91* ---------------------------------------------------------$ 3,811,807
* The present Reserve Portion of the Bond Fund (the Interest and Sinking Fund) is fully established; the
"Required Reserve Fund Amount" (calculated following issuance of $17,000,000 Electric Light and Power
System Revenue Bonds, Series 1988, the last previous sale) is $3,811,807. In the Ordinance the City will
convenant to maintain in the Reserve Portion of the Bond Fund a Required Reserve Fund Amount which is
not less than the average annual principal and interest requirements of all outstanding Bonds calculated
following sale of the Bonds; this Required Reserve Fund Amount is estimated to be $3,473,974; as a result
upon delivery of the Bonds the Reserve Fund Portion of the Bond Fund will be reduced to the Required
Reserve Fund amount which will be fully established.
-10-
,....., •
.,...
Projection of Gross Revenues, Operating Expense and Net Revenues
For Fiscal Year Ended Se~tember 301
REVENUES 1991 1992 1993 1994 199.5
Operating Revenues:
$.53,292,199 $.5.5,423,887 $.57,640,843 $.59,946,477 Charges for Services $.51,242,499
Non-Operating Income 310431204 31164 1932· : 31291 1530 31423 1191 31.560 1119
GROSS REVENUES $.54,285,703 $.56,4.57,131 $58,715,417 $61,064,034 $63,.506,596
OPERATING EXPENSE (1)
Personal Services $ 4,188,429 $ 4,439,735 $ 4,706,119 $ 4,988,486 $ 5,287,79.5
Supplies 398,311 410,261 422,.568 43.5,246. 448,303
Maintenance 482,268 496,736 526,450 .547,601 569,505
Power Plant Fuel 17,640,310 18,169,520 18,896,301 19,841,116 21,031,.583
Purchase Power 8,257,684 8,505,415 8,760,577 9,023,395 9,384,330
Uncollecl:ible Accounts 537,064 547,805 558,761 569,936 .581,335
Other Charges 311571348 31315 1215 31480 1976 31655 1025 31837 1776
TOTAL OPERATING EXPENSE $341661,414 $35,884,687 $37,351,842 $39,0601804 $41 1140,627
NET REVENUES $19,624.289 $20,.572,444 $21,363,57.5 $22,003,230 $22,365,969
(1) Excludes depreciation.
Note: The above projection takes into account:
(1) The current rate structure and fuel cost recovery factor.
(2) An annual LP&L growth rate of 3%; long-term historical annual growth rates have been 3% to
7.6%.
Through April!, 1991, LP&L refunded $88,727 to customers.
Source: City of Lubbock, Texas, Lubbock Power and Light ("LP&L").
Anticipated Issuance of Revenue Bonds
After issuance of the Bonds, the City has no authorized but unissued Electric Light and Power System
Revenue Bonds, and has no present plans for the authorization of Additional Bonds.
Fixed Asset Value of the Electric Light and Power System
For Fiscal Year Ended Se~tember 301
REVENUES 1990 1989 1988 1987 1986
Land (Net of Deletions) '$ 461,010 $ 461,010 $ 461,010 $ 461,010 $ 461,010
Buildings $ 1,703,621 $ 1,697,783 $ 1,689,867 $ 1,672,663 $ 1,667' 191
Less: Allowance for
Depreciation 11121 1963 1 11161133 110821883 11049 1900 11016185.5
$ 581,658 $ 581,650 $ 606,984 $ 622,763 $ 650,336
Improvements Other Than
Buildings $85,985,832 $88,015,331 $88,042,938 $79,656,457 ·$74,237,371
Less: Allowance for
Depreciation 39 1!461005
$46,139,827
41 1203 1372
$46,811 '9.59
38 1671 1215
$49,371,723
36 1368 1608
$43,287,849
34 11042550
$40,132,821
Machinery and Equipment $ 3,811 ,.515 $ 3,817,821 $ 3,677,013 $ 3,541,816 $ 3,672,816
Less: Allowance for Depreciation 214641734 31008 1633 21709 1030 21456 1.536 21032 1872
~ 113461781 ~ 809 1188 ~ 9671983 ~ 1208.5 1280 ~ 11639 1944
Construction in Progress ~31 1 381 1 384 ~191537 1 464 ~ 413281592 ~ 61659 1352 ~ 91311 1918
Net Fixed Asset Value ~Z2s21Q.~~O ~6812011271 ~5.5 1 7361 292 ~52 1 1161254 ~.521 1961 029
-11 -
City's Equity in the Electric Light and Power System
For Fiscal Year Ended Seetember .301 1990 1989 1988 1987 1986
Net Fixed Asset Value s 79,910,660 $68,201~271 $.5.5,736,292 $.52, 116,2.54 $.52,196' 029-
Plus:
Capital Projects Fund 3,630,333 16,136,724
Permanent Capital Maintenance
22,498,171 8.263,970 1,291,039
Fund 3~.566,001 3,93.5,496 1,982,893 1,814,0.59 661,993
System Improvement Fund 2,126,.50.5 4,749,182 2,064,344 1~764,043 2,167,93.5
Economic Development Fund .531,840 48.5,041 2.50,000 -o,. -0-
Advance to Other Funds 1 ,76.5 ,.513 1,76.5,.513 -0--0--0-Deferred Charge 1,143,966 1,103,893 -0--0--0-
Net Working Capital
Value of the System
9 16971210
$102,372,028
21119 1896
$98,497,016
11 11481.561
$93,680,261
61 1.501786
$70,109' 112
4,896,218
$61,213,214
Net Debt
Revenue Bonds Outstanding $ 39,00.5,000 $42,230,000 $4.5,47.5,000 $30,890,000 $2.5,97.5,000
Less: Interest and Sinking
and Reserve Fund 81.548 1698 718491247 713291897 .5,2221839 4,.583,867 $ 30,4.56,302 $34,380,7.53 $38, 14.5,103 $2.5,667' 161 $21,391,133
Plus:
ITriamortized Premium 41,.532 .53,398 66,748 81,.581 97,893
Accrued Revenue Bond Interest 1,439,201 1,.564,723 1,.582,622 1,134,007 934,463
Accrued Vacation and
Sick Leave 1,02.5,341 627,968 .5.56,086 .510,777 .546,.527
Arbitrage Rebate Liability 239 847 -0--0--0--0-
Net Debt ~ 331202:223 ~36 1 626 1842 ~401 3.50 1 .5.59 ~27 1 3931.526 $22,970,016
City's Equity in System ~ 69 1 169 180.5 ~61 1870 1 174 ~.53 1 729 1 702 ~42 1 715 1.586 $38,2431198
Percentage City's Equity
in System 67 • .57% 62.81% .57.3.5% 60.93% 62.48%
The System
Lubbock Power and Light (''LP&L") was established in 1916, and is presently the largest municipal system
in the West Texas region and the third largest in the State of Texas. LP&L and Southwestern Public
Service Company (''Southwestern Public Service"), 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 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.
Southwestern Public Service was granted a new 20-year franchise in 1982. The company pays the City a
franchise tax of 2% of its gross receipts which is deposited into the City's General Fund. At present,
Southwestern Public Service supplies power to approximately 43% of the customers in Lubbock.
LP&L generates part of its power requirements through the use of thref; generating stations located
within the City. These plants are geographically separated and deliver bulk power to substations through
a 69 kilovolt {kV) transmission loop system.
LP&L contracts _for the purchase of 20 megawatts (M W) of, power from Southwestern Public Service;
power is delivered via two interconnections, the first energized in 1981 and the second energized in 1986.
Each of these two interconnections is capable of delivering up to 100 MW to LP&L. The capability of
buying up to 200 MW of additional power assures LP&L of sufficient resources to meet all expected load
growth well past 2010.
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Generating. Stations ••• The total generating capacity of LP&L is 220,.500 kilowatts (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)
will be base loaded. Generating units consist of the following: · ·
Manufacturer
Nordberg
Nordberg
Westinghouse
Westinghouse
Westinghouse
Westinghouse
General Electric
Worthington
General Electric
General Electric
General Electric
Year
Installed
1946
1947
19.52
19.53
19.58
1964
196.5
1971
1974
1978
1990
Station
2*
2*
2*
2*
2*
Holly
Holly
Holly
Holly
Holly
E.Z. Brandon
Prime Mover
Diesel
Diesel
Steam Turbine
Steam Turbine
Steam Turbine
Gas Turbine
Steam Turbine
Gas Turbine
Gas Turbine
Steam Turbine
Gas Turbine**
Fuel
Dual Fuel
Dual Fuel
Gas or Oil
Gas or OH
Gas or Oil
Gas or 011
Gas or Oil
Gas or 011
Gas or Oil
Gas or Oil
Gas
Generator
Capacity
in kW
2,.500
2,.500
11,.500
11,.500
22,000
12,.500
44,000
18,000
22,000
.54,000
20,000
220,.500
* Since the completion of the second interconnection with Southwestern PubHc 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 Public Service was completed and the City
commenced buying power from Southwestern PubHc Service in December, 1981; the original contract for
the purchase of 10 M W of power was increased to 1.5 M W in February, 1982 and to 20 M W in December,
1988. In April, 1986, a second interconnection with Southwestern Public Service was energized; each
interconnection is capable of providing up to 100 MW to Lubbock Power and Light. The capability of
buying up to 200 MW of additional power assures Lubbock Power and Light sufficient resources to meet all
expected load growth well past 2010. Southwestern Public Service operates in the City under a franchise
and serves an area covering the Panhandle and South Plains of Texas and parts of Eastern New Mexico
with an integrated electric generating and distribution system.
Fuel Supply ••• Present primary fuel supply for Lubbock Power· and Light's generating system is natural
gas, which is supplied by Adobe Gas Pipeline Company, a subsidiary of Adobe Gas Company; the State of
Texas General Land Office (Gas Marketing Department) and by Prudential-Bache Energy Growth Fund;
the City has other alternative gas supplies. These major gas suppliers are under long term contracts
which provide Lubbock Power and Light with maximum flexibility in securing the lowest cost energy at all
times.
Adobe Gas Pipeline Company
In summary, the existing gas contract with Adobe Gas Pipeline Company ("Adobe") dated .5-26-1988
provides for a minimum take-or-pay of 4 billion cubic feet ("bcf'') through calendar year 1994 then a 1 bcf
minimum take-or-pay through calendar year 1996. LP&L has the option of reducing this take-or-pay by
up to 1 bcf per year by acquiring or owning gas leases. LP&L will pay Adobe $0.20 per MMBTU to deliver
gas from these leases.
From Janury 1, 1990, through the remainder of the contract, the price for delivered gas shall be
calculated as an amount equal to fifty percent (.50%) higher than the average of the middle of the price
range for spot gas delivered to the following three groups:
(1) El Paso Natural Gas Company
(2) Transwestern Pipeline Company
(3) Northern Natural Gas Company
plus $0.12 per MMBTU.
On an annual basis, Adobe has also agreed that the actual billing price will not exceed the equivalent cost
of firm purchased electric power.
In addition, LP&L has the option of taking spot gas purchase quotes from Adobe when the actual gas usage
exceeds one-twelfth (1/12) of the annual take-or-pay amount. LP&L also has the option of purchasing
more electric power from Southwestern Public Service Company, and will continually use the lowest cost
source of1energy available.
Starting on May 26, 1988, and throughout the remaining contract term, LP&L will receive five percent
(.5%) of all before tax revenue from deliveries of gas to LP&L and all other customers served from the
Adobe transmission line.
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State of Texas-General Land Office
On December 14, 1989, LP&L entered into a contract with the State of Texas-General Land Office to
purchase natural gas to fuel the newly constructed 20MW combustion turbine E.Z. Brandon generating
station located on the campus of Texas Tech University. This contract allows LP&L to purchase
approximately 1,700,000 MMBTU of gas per year at a price determined by the General Land Office-Gas
Marketing Division. The price is set by their monthly in-kind weighted average cost of gas plus
transportation costs. Historically, these base costs have been similar to LP&L's cost of spot· gas. This
contract has assured a long-term low cost of gas for LP&L's cogeneration project.
Prudential-Bache Energy Crowtb Fund
On 2-11-1988 LP&L entered into a gas contract with Prudential-Bache Energy Growth Fund. This
contract allows LP&L to purchase up to 4,000,000 cubic feet of gas per day. The first year gas price was
$2.16 per MMBTU. The price increases one percent (1%) each year for the second through the fifth years.
Beginning with the sixth year through the term of the contract, the gas price will be eighty-five percent
{8.5%) of LP&L's weighted gas price from other sources. LP&L has the option not to purchase this gas if it
can purchase electric power at a price below the price being paid for gas. The term of this contract is 20
years beginning in 1988. The amount to be purchased is approximately twelve percent {12%) of LP&L's
total gas requirements.
In order to transport this gas, a pipeline which runs from the Holly Plant site to Garza County was
purchased from Power-Tex Joint Venture on 2-11-1988. LP&L pays Adobe to operate and maintain the
pipeline at. the rate of 2 cents per MMBTU for the gas that is transported. The pipeline crosses a large 30
inch line 7 miles east of the Holly Plant, and in the event that LP&L ever taps this line, Adobe has
reserved the right to use any excess capacity in the line at the time.
Choctaw Partners
On 12-8-1988 LP&L entered into a contract with Choctaw Partners to purchase gas reserves in the
ground. The contract allowed LP&L to initially purchase up to 2,000,000 MMBTU with the option to
purchase 2,000,000 MMBTU of additional reserves. LP&L agreed to pay $1 • .56 per MMBTU for the proven
resources of the first three wells {proven reserves of 338,000 MMBTU). LP&L has agreed to pay $0.78 per
MMBTU on wells above the first three upoh proven gas reserves as verified by an independent petroleum
engineer and an additional $0.78 per MMBTU upon delivery of the gas to LP&L's system. On June 28,
1990, LP&L elected to receive the additional 2,000,000 MMBTU of in-ground reserves. The payments are
made on a well by well basis. Through January, 1991, LP&L has acquired 2,.500,664 MMBTU of in-ground
reserves and has received 643,000 MMBTU of gas deliveries from this source.
Other Sources of Cas Supply
LP&L has contracted with Gas Marketing, Inc. {a subsidiary of Westar Corp.) to provide back-up gas
supply if needed; facilities for immediate delivery are maintained in place.
Secondary Fuel
The City's present storage capability of fuel oil, for standby, secondary fuel, is over 1,.500,000 gallons, an
adequate supply of fuel oil for .5 days operation; with expected resupply, this period would be substantially
extended. The 1978 Holly steam generator has a multi-fuel capability as it is designed to burn natural gas
or all grades of fuel oil. In practice the City maintains approximately 600,000 gallons of fuel oil in
storage due to the availability of purchased power and gas supplies.
Note: Copies of the Gas Sales Agreements may be obtained upon request from Mr. J. Robert Massengale,
Assistant City Manager, City of Lubbock, P. 0. Box 2000, Lubbock, Texas 794.57 {Telephone
{806) 767-2015).
Transmission and Distribution ••• A 69,000 volt (69 kV) transmission loop system, 7:3 • .59 miles in length,
provides bulk power to ten 69,000/12470 bulk substations with a combined base capacity of 322 megavolt
amps {MVA). With all cooling systems in operation, these substations could provide up to 467 MVA. Of
the above 69kV transmission lines, 27.41 miles have been constructed for operation at 11.5 kV. When
system load dictates, these lines will be energized to 11.5kV and provide an additional 2.50% of
transmission capacity on these lines due to the increased voltage. LP&L also has two interconnections
with Southwestern Public Service Company 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 6.52.91 miles of overhead distribution lines and approxi-
mately 18.5.34 miles of underground distribution lines. There are six 12,470/4160 volt substations in the
distribution system. Net system load for Fiscal Year Ended September 30, 1990 was 934,099,116 kilowatt
hours (kWh) with a peak demand of 208,.500 kW.
Continuing Transmission and Distribution System Improvement Program ••• A transmission and
distribution system construction and improvement program using internally generated funds is in progress.
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Transmission System Improvements ••• The continuing transmission system program includes installation
of a 12 • .5 kV transformer along with required breakers, relays, steel .transmission and distribution lines,
and miscellaneous items to a new South Substation and reconductoring of approximately seven miles of
the existing twenty--one miles of 69 kV transmission line from 4/0 ACSR to 477 MCM ACSR.
Distribution System Improvements ••• Extensions of and improvements to the existing distribution system
continue including additional distribution circuits for substations, extensions· from existing line terminals
to new areas of service, transformers, meter pedestals, poles and crossarms, regulators, meters, service
lines and appurtenances, addition of capacitor switches to improvement system power factor and
upgrading two of the six existing 4,160 volt substations to 12,470 volt service.
Construction Program and Facilities Relocation ••• The proceeds of the Bonds will be used to:
Construct a "South Substation" to meet expected load growth in south and southwest Lubbock and
expected load growth along the I-27 corridor;· this substation will also prevent future voltage problems in
this region. This project will consist of two 1.5/20/2.5 MVA transformers with all required substation
facilities, 69 kV transmission ·Hne extensions and construction of new 12.5 kV distribution feeder lines.
Estimated cost, South Substation -$3, 900,000.
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 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. This project will
relocate these lines.
Estimated cost of relocation-$3,600,000
West Texas Municipal Power Agency ("Agency")
The Cities of Lubbock, Brownfield, Floydada and Tulla, Texas (the "Cities") have created the Agency
under the provisions of Section 4a and 4b of Article 1435a, Revised Civil Statutes of Texas, as amended,
as a joint power agency, a separate municipal corporation, a political subdivision of the State of Texas and
a body politic and corporate with the powers provided in Sections 4a and 4b of Article 1435a, in Article
143.5b and in other laws. The Agency has no taxing power. Each of the Cities owns and operates a
municipal electric light and power system, and all are within a 75-mlle radius of Lubbock. The 8-place
Board of Directors of the Agency consists of 2 directors from each City.
The purpose of the Agency is to engage in the generation, transmission, sale and exchange of electric
energy to the member Cities and to any private entities who may be joint owners with the Agency of an
electric generating facility. The Agency has outstanding $9.5,000 Revenue Bonds, Series 1987, the
proceeds of which were used to pay costs of issuance, including validation of the Agency and its bonds in a
District Court of Lubbock County, and for planning purposes. Debt service on these bonds and any other
payments to the Agency are secured by payments due from each member City which are apportioned
under Power Sales Contracts between the Agency and each City. Debt service and other payments under
the Power Sales Contracts constitute an operating expense of each City's electric light and power system.
The Agency has no plans for the issuance of additional bonds.
Electric Rates
Electric rates in the City are set by City Council Ordinance and are the same for LP&L and Southwestern
Public Service except for church, school and municipal rates and minor variations in billing policies, and
South Plains Electric Cooperative customers.· Current rates became effective June 1, 1989, (previous
rates were effective April l, 1988); on April 2, 1990, LP&L also significantly lowered its fuel cost factors.
The 6-1-1989 rates were a reduction of approximately 1.15% and the revised fuel cost factors lowered
costs to the consumer by approximately 9%. Current rates and previous rates are compared in the rate
structures shown below. The territory for all rates is Lubbock, Texas.
Rates for Service Furnished in City ••• Rates to be charged for electric service furnished within the City
shall be in accordance with orders or resolutions of the City Council establishing such rates for all persons
engaged in furnishing such electric power service to the public including electric power furnished by the
City's electric power company. Said orders and resolutions establlshing rates shall be kept available for
public inspection.
Fuel Cost Recovery
The charge per kilowatt hour shall be increased by a fuel factor per kilowatt hour as provided in current
Southwestern Public Service Tariff 7100 (Public Utility Commission of Texas sheet IV-69). The fuel
factor remains constant for approximately one year. At this time the fuel factor is $0.020636/kWh. All
rates shown below are subject to fuel cost recovery.
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Tax Adjustment
Billings under thes~ schedules may be increased by an amount equal to the sum of the taxes payable under
federal, state and local sales tax acts, and of all additional taxes, fees, or charges (exclusive of ad
valorem, state and federal income taxes), payable by the utility and levied or assessed by any
governmental authority on the publlc utility services rendered, or on the right or privilege of rendering
· the service, or on any objeet or event incidental to the rendition of service, as the result of any new or
amended laws after June 30, 1965. All rates shown below··are subject to tax adjustment where applicable.
Residential Service
AppHcable: To 'residential customers for electric service used for domestic purposes in private residences
and separately metered individual apartments. Single phase motors not to exceed 10 horsepower,
individual capacity, may be served under this rate.
Service Availability Charge
All kWh per month
Electric Living Service
Previous Rate
$5.00 per month
3. 98¢ per kWh
Current Rate
$4.66 per month
3.93¢ per kWh
Water Heating*: When customer has in regular use a permanently installed 240 volt, 30 gallon or greater,
storage type water heater of not greater than 5.5 kilowatts, individual rated capacity, the first .500 kWh
will be billed at the regular rate, the next .500 kWh at 1 • .58¢ per kWh, and all additional kWh at the regular
.rate.
All-Electric Space Heating*: When customer has in regular use permanently installed space heating
equipment of an aggregate rated capacity of 3 kilowatts or more, excluding bathroom heaters, billing
during the winter months will be the first .500 kWh at the regular rate, and all additional kWh at .86¢ per
kWh. When customer has water heating in combination with all-electric space heating, the first 500 kWh
will be bllled at the regular rate, the next .500 kWh at 1 • .58¢ per kWh and all additional kWh at .86¢ per
kWh.
Add-On Heat Pump*: When customer has in regular use a permanently installed heat pump used as the
primary heat source for the entire residence in conjunction with a gas or oil fired furnace for extreme
cold weather back-up, bHling during the winter months will be the first 600 kWh at the regular rate and
all additional kWh at .86¢ per kWh. When customer has water heating in combination with the add on heat
pump, the first 600 kWh will be bHled at the regular rate, the next .500 kWh at 1 • .58¢ per kWh and aU
additional kWh at .86¢ per kWh.
For heat pump installation, the rated capacity shall be determined by adding the rated capacity of the
heat pump (1 ton per kilowatt) and 1/2 of the rated capacity of any auxiliary heating elements used in
conjunction with the heat pump.
The rated capacity of space heating equipment may be measured by LP&:L.
* Previous rates used energy blocks of .91¢ and 1.72¢ respectively.
Winter Months: The bHling months of November to May, inclusive.
Character of Service: A-C; 60 hertz; single phase 120/240 volts; where available on secondary, three
phase 240 volts.
General Service
Applicable: To all commercial and industrial electric service where facilities of adequate capacity and
suitable voltage are adjacent to the premises to be served. Water heating and space heating service will
be furnished in conjunction with the standard Heating Rider.
Not applicable to temporary, breakdown, standby, supplementary, or to service for which a specific rate
schedule is provided.
Rate:
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
Previous Rate
$14.00 per month
@ 5.34¢ per kWh*
@ 2.22¢ per kWh
@ 1.00¢ per kWh
@ .55¢ per kWh
Current Rate
$12.98 per month
@.5.24¢ per kWh**
@ 2.22¢ per kWh
@ 1.0.5¢ per kWh
@ • 55¢ per kWh
* Add to the .5.34¢ block 200 kWh for every kW of demand in excess of 10 kW.
** Add to the .5.24¢ block 200 kWh for every kW of demand in excess of 10 kW.
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I"'.
Demand: LP&L will furnish at its expense the necessary metering equipment to measure the customer's
kW demand for the 30-minute period of greatest use during the month.
Character of Service: A-C; 60 hertz; single or three phase.
Minimum Charge (identical for both present rates and new rates): $12.98 per month for demands of 10 kW
or less, plus $3 • .50 per kW for next 1' kW above 10 kW, plus $2~30 per kW for all additional kW. No
demand shall be taken as less than .5096 of highest demand established in 12 months ending with current
month.
Heating Rider
Applicable: To customers taking service under LP&L's General Service, Public and Parochial School
Service or Municipal Lighting and Power Service rates.
Water Heating Service*: When customer has in regular use one or more permanently installed 30 gallons
or greater storage type water heaters of not greater than '·' kilowatts, individual rated capacity, the
first 200 kWh per water heater will be billed at the regular rate, the next 300 kWh per water heater will
be billed at 1 • .58¢ per kWh, and all additional kWh at the regular rate.
When customer has in regular use one or more approved, permanently installed storage type water heaters
of greater than .5 • .5 kilowatts, individual rated capacity, the first 200 kWh for each .5 kilowatts of rated
capacity will be billed at the regular rate, the next 300 kWh for each .5 kilowatts of rated capacity will be
billed at 1.,8¢ per kWh, and all additional kWh at the regular rate.
The demand for billing purposes will be the measured kW demand less 7.596 of the rated capacity of the
first water heater and .50% of the rated capacity of all additional water heaters, but not less than 7.596 of
the measured kW demand.
Flow-through water heaters and other high wattage water heating devices will be billed at the regular
rate.
All-Electric Space Heating Service*: When customer has in regular use permanently installed space
heating equipment, including hot water systems, of an aggregate rated capacity of .5 kilowatts or more,
billing during the winter months under the regular rate will not exceed the average kW demand and kWh
consumption established during the first preceding billing months of May and October. Additional demand
will not be billed. Additional kWh used per month will be billed at .86¢ per kWh.
Add-On Heat Pump Service*: When customer has in regular use a permanently installed heat pump used
as the primary heat source for the entire building in conjunction with .a gas or. oil fired furnace for
extreme cold weather back-up, billing during the winter months under the regular rate will not exceed the
average kW billing demand and kWh consumption established during the first preceding billing months of
May and October. Additional demand will not be bi1led. Additional kWh used per month will be billed at
.86¢ per kWh.
Winter Months: The billing months of November through April, inclusive.
Character of Service: A-C; 60 hertz; at one available standard voltage of 240 volts or greater.
* Previous rates used energy blocks of .91¢ and 1.72¢ respectively.
Municipal Lighting and Power Service
Applicable: To municipal general lighting and power service except for street lighting service.
Rate:
All kWh per month
Irrigation Power Service
Previous Rate
2. 908¢ per kWh
Current Rate
2.888¢ per kWh
Applicable: Under contract, to irrigation power customers when the connected motor load is not less than
.5 h.p.
All kWh per month
Previous Rate
4.87¢ per kWh
Current Rate
4.69¢ per kWh
Character of Service: A-C; 60 hertz; three phase; at one available standard voltage.
Term of Contract: One year or longer.
Minimum Char e (identical for both resent rates and new rates): $24.00 per connected h.p. per season
name-plate rating , excluding fuel cost recovery revenue.
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Public and Parochial School Service
ApPlicable: To public and separately metered parochial schools f6r lighting and power service. All
metering locations for each customer shall be combined for billing purposes.
Rate:
First 10,000 kWh used per month.
Next 20,000 kWh used per month
Next 30,000 kWh used per month
Additional kWh used per month
Large Gelleral Service ..
Previous Rate
@ 4.58¢ per kWh
@ 4.15¢ per kWh
@ 3.89¢ per kWh
@ 3.50¢ per kWh
Current Rate
@ 4.43¢ per kWh
@ 4.04¢ per kWh
@ 3.81¢ per kWh
@ 3.47¢ per kWh
Applicable*: To aU commercial and industrial electric service· supplied where facilities of adequate
capacity and suitable voltage are adjacent to the premises to be served. Not applicable to temporary,
breakdown, standby, or supplementary service.
Rate:
Demand Charge*:
Previous Rate Current Rate
First 200 kW, or less of demand per month
Additional kW of demand per month
$1,960.00 $1,960.00
$9.10/kW $9.10/kW
Energy Charge*: .55¢ per kWh for the first 230 kWh used per month per kW of demand, or the first
120,000 kWh used per month, whichever is greater
.41¢ per kWh for the next 230 kWh used per month per kW of demand
.33¢ per kWh for all additional kWh used per month
Determination of Demand*: The kW determined from LPL's demand meter for the 30-minute period of
customer's greatest kW use during the month, but not less than 60% of the highest demand established in
the preceding eleven months.
Power Factor Adjustment*: Bills computed under the above rate will be increased $0.25 for each kvar by
which the reactive demand. exceeds, numerically, 0.53 times the measured kW demand, and will be
reduced $0.25 for each kvar by which the reactive demand is less than, numerically, 0.40 times the
measured kW demand.
Primary Service Discount*: A discount of 3% of the demand charges, energy charges (excluding all fuel
cost recovery amounts), and power factor adjustment charges will be allowed when service is supplied at a
line voltage of 12 kV, or greater, and no transformation is made by Lubbock Power and Light at the
customer's location.
* Identical for both previous rates and current rates.
Character of Service: A-C; 60 hertz.
Contract Period: A period of not Jess than one year.
Minimum Charge*: The Demand Charge.
* Identical for both previous rates and current rates.
Street Lighting Service
Applicable: To municipal street lighting service.
Rate:
All kWh used per month
Oil Well Pumping Service
Previous Rate
3.2269¢ per kWh
Current Rate
3.21¢ per kWh
Applicable: Under contract, to power customers for oil well pumping, including incidental lighting and
small power loads required by customer in lease operation. All locations in one field are to be combined
and billed together.
Rate:
Service Availability Charge
All kWh per month
Previous Rate
$11.43 per meter per month
2.56¢ per kWh
-18 -
Current Rate
$10.29 per meter per month
2.48¢ per kWh
\
Character of Service: A-C; 60 hertz; three phase; at LPL's available primary voltage.
Power Factor: The customer agrees to maintain an average power factor of at least 8096.
Terms of Contract: One year, or longer.
Minimum Charge (identical for both present rates and new rates):
$20 per month on each meter for secondary voltage metering.
$.50 per month on each meter for primary voltage metering.
Industrial Feed Mill and Elevator Service
Applicable: Under contract, to all electric energy used for the operation of industrial feed mills and grain
elevators. All industrial feed mill and elevator customers are to be served under this rate schedule,
except that customers having a measured demand of 200 kW, or greater, may be served under the large
general service rate.
Not applicable to temporary, breakdown, standby, or supplementary service.
Service Availability Charge
First l,OOO kWh used per month
Next 6,000 kWh used per month
Next 11,000 kWh used per month
All additional kWh used per month
Previous Rate
$17.91 per month
@6.17¢ per kWh*
@ .3.82¢ per kWh
@ 2.70¢ per kWh
@ 1.50¢ per kWh
Current Rate
$16.46 per month
@ .5. 7.3¢ per kWh**
@ .3 • .58¢ per kWh
@ 2 • .55¢ per kWh
@ !.50¢ per kWh
* Add to the 6.17¢ block, 14.5 kWh for each kW of demand in excess of 10 kW.
** Add to the .5.7.3¢ block, 14.5 kWh for each kW of demand in excess of 10 kWh.
Terms of Payment: Net in .30 days after mailing date; .5% added to bill after .30 days.
Demand: The kW demand from LP&:L's demand meter for the .30-minute period of customer's greatest use
during the month.
Character of Service: A-C; 60 hertz; single or three phase, at one standard voltage.
Minimum Char e identical for both revious rates and current rates: $16.46 for the first 10 kW, or Jess,
plus .3 • .50 per kW for next 1.5 kW, above 10 kW, plus 2 • .30 per kW for all addltional kW of highest demand
established in twelve months endlng with current month.
Term of Contract: A period of not less than one year.
Cotton Gin Service
Applicable: Under contract, to all electric energy used for the operation of cotton gins and de-linters,
whether partially or completely electrified. Cotton gins are not to be served under any rate schedule not
specifically designated for such service.
Not applicable to temporary, breakdown, standby, or supplementary service,
Service Availability Charge
First 1,000 kWh used per month
All addltional kWh used per month
Previous Rate
$21.60 per month
@ 7.98¢ per kWh*
@ .3.60¢ per kWh
Current Rate
$19.90 per month
@ 7 .4.3¢ per kWh**.
@ .3.41¢ per kWh
* Add to the 7.98¢ block, 120 kWh for each kW of demand in excess of 10 kW.
** Add to the 7.4.3¢ block, 120 kWh for each kW of demand in excess of 10 kW.
Terms of Payment: Net in .30 days after mailing date; 596 added to bill after .30 days.
Demand: The kW demand for LPL's demand meter for the 30 minute period of customers greatest use
during the month.
Character of Service: A-C; 60 hertz; single or three phase, at one standard voltage.
Minimum Char e (identical for both revious rates and current rates): $24 • .50 per year per kW of demand
establishe~ during the contract year, but not less than .307.00.
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-~---------------------------------------------------~-------··-
Guard Light Service
Applicable: Under contract to all night outdoor lighting service where facilities of adequate capacity and
suitable voltage are adjacent to the premises to be served.
~: Each 1.5,000 lumen high pressure sodium, wood pole, overhead bracket type light for $8 • .57 per
month (previous rate $9.32 per month). ·
Each 9,.500 lumen high pressure sodium, wood pole, overhead bracket type light for $7.00 per month
(previous rate $~ .62 per month).
Each 7,000 lumen mercury vapor, wood pole, overhead bracket type light for $7.00 per month (previous
rate $7.62 per month).
One span of secondary line not exceeding 1.50 feet in length may be furnished under the above rate.
Service requiring more than one span of secondary line per light wilJ be furnished by LP&:L, provided the
customer pays a rental charge of $2.00 per month for each additional span not exceeding 1.50 feet in
length.
Conditions of Service: LP&:L wiUconstruct, own, operate, and maintain on the customer's premises, the
required number of overhead lights, mounted on Lubbock Power and Light's service pole, a separate 30
foot pole, or installed on any suitable mounting device belonging to the customer and having a secondary
line span not exceeding 1.50 feet in length. Lights wll! not be installed on any mounting device which, in
the opinion of LP&:L, is unsafe or not suitable for this purpose.
Character of Service: A-C; 60 hertz; single phase; 120 volts.
Billings
Customers of LP&:L and the City's water, sewer and sanitationdepartments are blUed simultaneously on
one statement; ,garbage charges are also included. A 2% discount is given to residential electric
customers who pay their bill within 1.5 days of the date it is mailed to them; an additional!% is deducted
if payment is by bank draft. All water and electric customers who do not pay their water and electricity
bill within .30 days of the date it is mailed to them are charged a .5% late payment penalty; the .5% late
payment penalty wiH apply after 22 days. If the biJl has not been paid on the next billing date, a
statement is maiJed showing the past due bill together with the current blll. If the bill remains delinquent
15 days after the date of the second statement, a cut-off notice is mailed. The cut-off notice specifies
that service will be discontinued in 7 days if payment in full is not made. At the end of the 7-day period,
a collector calls on the customer and if he is unable to collect payment, water and electric service is cut
off •. The reconnection charge is $15.00 before 5:00 PM and $2.5.00 after 5:00 PM and during weekends and
holidays.
Avera e BHUn Plan Residential Customers Onl ): Upon request any residential customer, whose average
monthly bill is 25.00 or more, may be b1lled monthly based upon his average bill (estimated if applicable)
plus a portion of any unbUled balance. Customers having delinquent or disputed bills are not eligible for
billing under this plan.
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.-
"""· '
,..,
Comparison of Selected Current and Previous Rates
Residential
Previous Rates (Effective 4-1-88)
Service AvailabiHty Charge: $5.00 per month,
AU kWh per month @ 3.98¢ per kWh
Plus: Fuel Cost Recovery
Current. Rates (Effective 6-1-89)
Service AvaiJabillty Charge: $4.66 per month
All kWh per month@ .3.93¢ per kWh
Plus: Fuel Cost Recovery
General Service
Previous Rates (Effective 4-1-88)
Service Availability Charge: $14.00 per month
First 1,000 kWh per month 5.34¢ per kWh*
Next 6,000 kWh per month 2.22¢ per kWh
Next 6,000 kWh per month 1.00¢ per kWh
All additional kWh per month 0.55¢ per kWh
* Add to the 5.34¢ block 200 kWh for every kW
of demand in excess of 10 kWs.
Demand: Measured as the customer's kW de-
mand for the 3D-minute period of greatest use
during the month.
£!!:!!: Fuel Cost Recovery.
Minimum Charge: $14.00 per month for de-
mand 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.
Comparison of Selected Customer Usage and Billings
Residential Customer
Commercial Customer
Fuel Cost Recovery Per kWh
(1) Effective April 2, 1990.
..ll!:!_
700
13,500
Current Rates (Effective 6-1-89)
Service Availability Charge: $12.98 per month
First 1,000 kWh per month 5.24¢ per kWh*
Next 6,000 kWh per month 2.22¢ per kWh
Next 6,000 kWh per month 1. 05¢ per kWh
Additional kWh per month 0.55¢ per kWh
* Add to the 5.24¢ block 145 kWh for every kW
of demand in excess of 10 kWs.
Demand: Measured as the customer's kW de-
mand for the 30-minute period of greatest use
during the month.
£!!:!!: Fuel Cost Recovery.
Minimum Charge: $12.98 per month for de-
mand 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.
Previous Current
Rate Rate
~ (4-1-88) ~6-1-89)
$ 50.86 $ 46.62
36 838.37 763.30
$0.025710 $0.020636( 1)
Ten Largest Customers (Annual Consumption and Revenue)
Customers
Texas Tech University
City of Lubbock
Plains Co-op 011 Mill
Lubbock Independent School District
Methodist Hospital
Southern Cotton Oil MiU
University Medical Center
United Supermarkets
Weingarten Realty
Lubbock County Jail
-21 -
kWh Billed
126,503,775
82,707,578
53,360,472
26,576,562
16,564,319
11,512,617
6,217' 130
5,382,141
5,400,900
5,151,300
Dollars Billed
$5' 355,179.14
4,285,494.87
2,092,807.54
1,534,699.02
697,379.39
576,459.08
260,742.39
246,179.54
242,813.57
222,617.12
Analysis of Electric Bills
For Fiscal Year Ended Se[;!tember 301 All Customers: 1990 1989 1988 1987 1986
Average Monthly,kWh Per Meter 1,611 1,.5.58 1,490 1,420 1,420
Average 'Monthly Bill Per Meter ~ 91.01 ~ 92 • .50 $ 93.46 $ 86.87 $ 90.33
Average Monthly Revenue Per kWh 0.0.56.504 0.0.593.53 $0.062711 $0.061177 $0.063628
Residential Customers:
Average Monthly kWh Per Meter 679 6.58 629 621 .591
Average Monthty Bill Per Meter $ 43.69 $ 44.37 $ 44.70 $ 42 • .50 $ 42.71
Average Monthly Revenue Per kWh $0.064364 $0.067428 $0.071118 $0.068394 $0.07221.5
Commercial and Industrial:
Average Monthly kWh Per Meter 7,.592 7,2.54 6,803 6,248 6,337
Average Monthly Bill Per Meter $ 39.5.52 ~ 398.2.5 $ 395 • .50 $ 3.57.71 $ 373.37
Average Monthly Revenue Per kWh $0.0.52096 0.054901 $0.0.5813.5 $0.0.572.52 $0.0.58922
Munici[;!al and Street Lighting:
Average Monthly kWh Per Meter 10,164 9,7.58 9,468 8,967 9,47.5
Average Monthly Bill Per Meter $ .519.43 $ .520.90 $ .534.18 $ 487.93 $ .5.51.06
Average Monthly Revenue Per kWh $0.0.51103 $0.0.53379 $0.0.56418 $0.0.54412 $0.0.581.58
Statistical Data
For Fiscal Year Ended Seetember 301 1990 1989 19&8 1987 1986
kWh TO SYSTEM 934,099,116 887,297,920 837,3.52,010 782,064,690 7.58,3.5.5,020
Sales of kWh:
Residential Service 320,017,.504 304,806,428 286,373,971 27.5,74.5,734 2.54,083,202
Commercial and Industrial
Service 4691282 10.59 44.5 1948 1836 417 1897 1647 37.5 17021996 373196.5 1472
Total General Consumers 789,299,.563 7.50,7.5.5,264 704,271,618 6.51,448, 730 628,048,674
Municipal and Street Lighting 821697 1991 79 16291276 781737 1010 76 11871408 771204 1774
Total Sales to All Consumers 871,997,.5.54 830,384,.540 783,008,628 727,636' 138 70.5,253,448
,.-
Loss and Unaccounted For 621101 1.562 .56 19131380 .541343 1382 .54142815.52 .531101 1.572
kWh TO SYSTEM 934,099' 116 887,297,920' 837,3.52,010 782,064,690 7.58,35.5,020
Average Residential Meters 39,28.5 38,.598 37,969 36,983 35,802
Average Commercial and
Industrial Meters 5,151 .5,124 5,119 5,011 4,918
Average Municipal Meters 678 680 693 708 679
Average Total 4.5,114 44,402 43,781 42,702 41,399
Total Plant Peak kW Demand 208,500 196,000 l89,500 180,000 167,500
System Peak kW Demand 199,063 188,32.5 183,300 175,004 162,39.5
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"" ""' I
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1 1 ') )
LUBBOCK POWER & LIGHT
SYSTEM ENERGY REQUIREMENTS 1050~-------------------------------------------------~
t..-i-----ACTUAL .. , ..
1000
950
900
850
800
750
700 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
FISCAL YEAR ENDING SEPTEMBER 30th
SOURCE: CITY OF LUBBOCK. TEXAS
I
N .-I>'
I
LUBBOCK POWER & LIGHT
SYSTEM CAPACITY AND DEMAND · 500~--------------~----~----------------------------~
450
400
350
300
250
200
150
100
50
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
FISCAL YEAR ENDING SEPTEMBER 30th
~ PEAK DEMAND · ~ SYSTEM CAPAC!TY
SOURCE: CITY OF LUBBOCK, TEXAS
' ) ) ) ) ) ) ) )
) 1 ) J )
Debt Service Requirements
YEAR % OF
ENDING OUTSTANDING BONDS THE BONDS GRANO TOTAL PRINCIPAL
~ PRINCIP~[ INTEREST TOTA[ PiHNCIPA[ 1HT£R£sT ToTJ{L REQUIREMENTS RETIRED
1991 $ 3,210,000 $ 3,140,075 $ 6,350,075 $ $ $ $ 6,350,075
1992 3,205,000 2,866,655 6,071,655 375,000 488,125 863,125 6,934,780
1993 3,195,000 2,602,755 5,797,755 375,000 505,875 880,875 6,678,630
1994 2,885,000 2,342,273 5,227,273 375,000 479,250 854,250 6,081,523
1995 2,875,000 2,096,288 4,971,288 375,000 452,625 827,625 5,798,913 36.28% ~ 1996 2,545,000 1,862,098 4,407,098 375,000 426,000 801,000 5,208,098
1997 2,430,000 1,641, 523 4,071,523 375,000 399,375 774,375 4,845,898 -1
' 1998 2,195,000 1,446,683 3,641,683 375,000 372,750 747,750 4,389,433 z
N 1999 2,180,000 1,269,795 3,449,795 375,000 346,125 721,125 4,170,920 cg "' 2000 2,165,000 1,092,400 3,257,400 375,000 319,500 694,500 3,951,900 65.07%. ,.,
2001 2,145,000 915,450 3,060,450 375,000 292,875 667,875 3,728,325 !::
2002 2,125,000 739,450 2,864,450 375,000 266,250 641,250 3,505,700 ~ 2003 I ,700,000 572,700 2,272,700 375,000 239,625 614,625 2,887,325 ~ 2004 1, 700,000 444,025 2,144,025 375,000 213,000 588,000 2,732,025
2005 1,200,000 315,000 1,515,000 375,000 186,375 561,375 2,076,375 88.17%
2006 1,200,000 227,500 1,427,500 375,000 159,750 534,750 1,962,250
2007 1,200,000 143,500 1,343,500 375,000 133,125 508,125 1,851,625
2008 850,000 59,500 909,500 375,000 106,500 481,500 1,391,000
2009 375,000 79,875 454,875 454,875
2010 375,000 53,250 428,250 428,250 99.19%
2011 375.000 26!625 401 2625 4011625 100.00%
$ 39,005,000 $ 23,777,670 $ 62,782,670 $ 7,500,000 $ 5,546,875 $ 13,046,875 $ 75,829,545
INTEREST ON THE BONDS HAS BEEN CALCULATED AT THE RATE OF 7.100% FOR PURPOSES OF IllUSTRATION.
Selected Provisions of the Bond Ordinance
The City Council will adopt an ordinance (the "Ordinance") authorizing the Bonds, which will be in
substantially the same form as the Ordinances authorizing the outstanding Electric Light and Power
System Revenue Bonds, pertinent provisions of which are shown below:
"SECTION 10: Definitions. That for all purposes of this ordinance and in particular for clarity with
respect to the issuance of the Bonds herein authorized and the pledge and appropriation of revenues
therefor, the following definitions are provided: ,
(a) The term ,.Additional Bonds" shall mean the additional parity obligations the City reserves the right
to issue in accordance with the terms and conditions prescribed in Section 21 hereof.
(b) The term "Bonds" shall mean .the $7,.500,000 "City of Lubbock, Texas, Electric Light and Power
System Revenue Bonds, Series 1991", dated May 1.5, 1991, authorized by ,this ordinance.
(c) The term "Bonds Similarly Secured" means the Previously Issued Bonds, the Bonds and Additional
Bonds.
(d) The term "Fiscal Year" shall mean the twelve-month accounting period used by the City in
connection with the operations of the System which may be any twelve (12) consecutive month period
established by the City.
(e) The term "Net Revenues" shall mean the gross revenues of the System less expenses of operation
and maintenance. Such expenses of operation and maintenance shall not include depredation charges or
funds pledged for the Bonds Similarly Secured, but shall include all salaries, labor, materials, repairs, and
extensions necessary to render services; provided, however, that in determining "Net Revenues," only such
repairs and extensions as in the judgment of the City Council, reasonably and fairly exercised are
necessary to keep the System in operation and render adequate service to the City and inhabitants
thereof, or such as might be necessary to meet some physical accident or condition which otherwise would
impair the security of the Bonds Similarly Secured, shall be deducted.
(f) The term "Previously Issued Bonds" shall mean the outstanding and unpaid revenue bonds, designated
"CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REVENUE BONDS," and payable
from and secured by a first Hen on and pledge of the Net Revenues of the System, further identified by
issue or series as follows:
(1) Series 1973, dated July 1.5, 1973, in the original principal amount of $6,000,000;
(2) Series 197.5, dated March 1.5, 197.5, in the original principal amount of $6,400,000;
(3) Series 197.5-A, dated September 1.5, 197.5, in the original principal amount of $2,000,000;
(4) Series 1976, dated April 1.5, 1976, in the original principal amount of $4,400,000;
(.5) Series 1983, dated May 1.5, 1983, in the original principal amount of $10,770,000;
(6) Series 1984, dated April 1.5, 1984, in the original principal amount of $10,000,000;
(7) Series 1987, dated April L5, 1987, in the original principal amount of $7,000,000; and
(8) Series 1988, dated May 1.5, 1988, in the original principal amount of $17,000,000.
(g) The term "System" shall mean all properties real, personal, mixed or otherwise, now owned or
hereafter acquired by the City of Lubbock through purchase, construction or otherwise, and used in
connection with the City's Electric Light and Power System and in anywise pertaining thereto, whether
situated within or without the limits of the City.
SECTION 11: Pledge. That the City hereby covenants and agrees that all of the Net Revenues derived
from the operation of the System, with the exception of those in excess of the amounts required to
establish and maintain the special Funds created for the payment and security of the Bonds Similarly
Secured, are hereby irrevocably pledged for the payment of the Previously Issued Bonds, the Bonds and
Additional Bonds, if issued, and the interest thereon, and it is hereby ordained that the Previously Issued
Bonds, the Bonds and the Additional Bonds, if issued, and the interest thereon, shall constitute a first lien
on the Net Revenues of the System.
SECTION 12: Rates and Charges. That the City hereby covenants and agrees with the owners of the
Bonds that rates and charges for electric power and energy afforded by the System will be established and
maintained to provide revenues sufficient at all times to pay:
(a) all necessary and reasonable expenses of operating and maintaining the System as set forth herein in
the definition "Net Revenues" and to recover depreciation;
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r
(b) the amounts required to be deposited to the Bond Fund to pay the principal of and interest on the
Bonds Similarly Secured as the same becomes due and payable and to accumulate and maintain the reserve
amount required to be deposited therein; and
(c) 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 13: Segregation of Revenues/Fund Designations. All receipts, revenues and income derived
from the operation and ownership of the System shall be kept separate from other funds of the City and
deposited within twenty-four (24) hours after collection in the "Electric Light and Power System Fund''
(created and established in connection with the issuance of the Previously Issued Bonds), which Fund
(hereinafter referred to as the "System Fund") is hereby reaffirmed and shall continue to be kept and
maintained at an official depository bank of the City while the Bonds remain outstanding. Furthermore,
the "Special Electric Light and Power System Revenue Bond Retirement and Reserve Fund'' (hereinafter
referred to as the 11Bond Fund"), created and established in connection with the issuance of the Previously
Issued Bonds, is hereby reaffirmed and shall continue to be maintained by the City while the Bonds remain
outstanding. The Bond Fund is and shall continue to be kept and maintained at the City's official
depository bank, and moneys deposited in the Bond Fund shall be used for no purpose other than for the
payment, redemption and retirement of Bonds Similarly Secured.
SECTION 14: System Fund. The City hereby reaffirms its covenant to the holders of the Previously
Issued Bonds and agrees with the owners of the Bonds that the moneys deposited in the System Fund shall
be used first for the payment of the reasonable and proper expenses of operating and maintaining the
System, as identified in Section lO(e) hereof. All moneys deposited in the System Fund in excess of the
amounts required to pay operating and maintenance expenses of the System, as hereinabove provided,
shall be applied and appropriated, to the extent required and in the order of priority prescribed, as
follows:
(i) To the payment of theamounts required to be deposited in the Bond Fund for the payment of
principal of and interest on the Bonds Similarly Secured as the same become due and payable; and
(ii) To the payment of the amounts, if any, required to be deposited in the Bond Fund to
accumulate and maintain the reserve amount as security for the payment of the principal of and interest
on the Bonds Similarly Secured.
SECTION 1.5: Bond Fund. (a) That, in addition to the required monthly deposits to the Bond Fund for the
payment of principal of and interest on the Previously Issued Bonds, the City hereby agrees and covenants
to deposit to the Bond Fund an amount equal to one hundred percentum (10096) of the amount required to
fully pay the interest on and principal of the Bonds falling due on or before each maturity and interest
payment date, such payments to be made in substantially equal monthly installments on or before the 1st
day of each month beginning on or before the 1st day of the month next following the month the Bonds are
delivered to the initial purchaser.
The required monthly deposits to the Bond Fund for the payment of principal of and interest on the Bonds
shall continue to be made as hereinabove provided until such time as (i) the total amount on deposit in the
Bond Fund, including the "Reserve Portion" deposited therein, is equal to the amount required to fully pay
and discharge all outstanding Bonds Similarly Secured (principal and interest) or (ii) the Bonds are no
longer outstanding, i.e., the Bonds have been fully paid as to principal and interest or all the Bonds have
been refunded.
Accrued interest and premium, if any, received from the purchasers of the Bonds shall be deposited in the
Bond Fund, and shall be taken into consideration and reduce the amount of the monthly deposits
hereinabove required which would otherwise be required to be deposited in the Bond Fund from the Net
Revenues of the System.
(b) In addition to the amounts to be deposited in the Bond Fund to pay current principal and interest for
the Bonds Similarly Secured, the City reaffirms its covenant to the holders of the Previously Issued Bonds
and agrees to accumulate and maintain in said Fund a reserve amount (the "Reserve Portion") equal to not
less than the average annual principal and interest requirements of all outstanding Bonds Similarly
Secured (calculated and redetermined at the time of issuance of each series of Bonds Similarly Secured).
In accordance with the ordinances authorizing the issuance of the Previously Issued Bonds, there is
currently on deposit to the credit of the Reserve Portion of the Bond Fund the sum of $3,811,807. No
additional amount is required to be deposited to the credit of the Reserve Portion from unencumbered
avaHable funds in order that the total amount is not less than the average annual principal and interest
requirements of the outstanding Bonds Similarly Secured after giving effect to the issuance of the Bonds
(the "Required Reserve Fund Amount").
The Reserve Portion of the Bond Fund shall be made available for and reasonably employed in meeting the
requirements of the Bond Fund if need be, and if any amount thereof is so employed, the Reserve Portion
in the Bond Fund shall be fully restored to the Required Reserve Fund Amount as rapidly as possible from
-27-
the first available Net Revenues of the System in the System Fund subject only to the priority of
payments hereinabove prescribed in Section 14. Any amounts in excess of the Required Reserve Fund
Amount shall be transferred to the System Fund.
SECTION 16: Payment of Bonds. While any of the Bonds are outstanding, the proper officers of the City
are hereby authorized to transfer or cause to be transferred to the Paying Agents therefor, from funds on
·deposit in the Bond Fund, including the Reserve Portion, if necessary, amounts sufficient to fully pay and
discharge promptly as each installment of interest and principal of the Bonds accrues or matures or comes
due by reason of redemption prior to maturity; such transfer of funds to be made in such manner as will
cause immediately available funds to be deposited with the Paying Agent for the Bonds at the close of the
business day next preceding the date of payment for the Bonds~
SECTION 17: Deficiencies in Funds. That, if in any month the City shall, for any reason, fail to pay into
the Bond Fund the full amounts above stipulated, amounts equivalent to such deficiencies shall be set
apart and paid into said Fund from the first available and unallocated Net Revenues of the System in the
following month or months and such payments shall be in addition to the amounts hereinabove provided to
be otherwise paid into said Fund during such month or months.
SECTION 18: Excess Revenues. Any surplus Net Revenues of the System remaining after all payments
have been made into the Bond Fund and after all deficiencies in making deposits to said Fund have been
remedied, may be used for any other City purposes now or hereafter permitted by law, including the use
thereof for the retirement in advance of maturity of the Bonds Similarly Secured by the purchase of any
of such Bonds Similarly Secured on the open market at not exceeding the market value thereof. Nothing
herein, however, shall be construed as impairing the right of the City to pay, in accordance with the
provisions thereof, any junior lien bonds legally issued by it and payable out of the Net Revenues of the
System. ·
SECTION 19: Security of Funds. That moneys on deposit in the System Fund (except any amounts as may
be properly invested) shall be secured in the manner and to the fullest extent required by the laws of the
State of Texas for the security of public funds. Moneys on deposit in the Bond Fund shall be continuously
secured by a valid pledge of direct obligations of, or obligations unconditionally guaranteed by the United
States of America, having a par value, or market value when less than par, exclusive of accrued interest,
at all times at least equal to the amount of money to be deposited in said Fund. All sums deposited in said
Bond Fund shall be held as a trust'fund for the benefit of the holders of the Bonds Similarly Secured, the
beneficial interest in which shall be regarded as existing in such holders. To the extent that money in the
Reserve Portion of the Bond Fund is invested under the provisions of Section 20 hereof, such security is
not required.
SECTION 20: Investment of Reserve Portion of Bond Fund. The custodian bank shall, when authorized by
the City Council, invest the Reserve Portion of the Bond Fund in direct obligations of, or obligations
guaranteed by the United States of America, or invested in direct obligations of the Federal Intermediate
Credit Banks, Federal Land Banks, Federal National Mortgage Association, Federal Home Loan Banks or
Banks for Cooperatives, and which such investment obligations must mature or be subject to redemption
at the option of the holder, within not to exceed ten years from the date of making the investment. Such
obligations shall be held by the depository impressed with the same trust for the benefit of the
bondholders as the Bond Fund itself, and if at any time uninvested funds shall be insufficient to permit
payment of principal and interest maturities for the Bonds Similarly Secured, the said custodian bank shall
sell on the open market such amount of the securities as is required to pay said Bonds Similarly Secured
and interest when due and shall give notice thereof to the City. All moneys resulting from maturity of
principal and interest of the securities shall be reinvested or accumulated in the Reserve Portion of the
Bond Fund and considered a part thereof and used for and only for the purposes hereinabove provided with
respect to said Reserve Portion, provided that when the full amount required to be accumulated in the
Reserve Portion of the Bond Fund (being the amounts required to be accumulated by the ordinances
authorizing the Bonds Similarly Secured) is accumulated, any interest increment may be used in the Bond
Fund to reduce the payments that would otherwise be required to pay the current debt service
requirements on Bonds Similarly Secured.
Amounts on deposit in any of the Funds herein referred to and allocable to the Bonds or Additional
Bonds, if issued, shall be invested as provided in the Public Funds Investment Act of 1987 and in this
ordinance to the extent the investmment provisions of this ordinance are consistent with such Act.
SECTION 21: Issuance of Additional Parity Bonds. That, in addition to the right to issue bonds of inferior
lien as authorized by the laws of the State of Texas, the City hereby reserves the right to issue Additional
Bonds which, when duly authorized and issued in compliance with the terms and conditions hereinafter
appearing, shall be on a parity with the Previously Issued Bonds and the Bonds herein authorized, payable
from and equally and ratably secured by a first lien on and pledge of the Net Revenues of the System.
The Additional Bonds may be issued in one or more installments, provided, however, that none shall be
issued unless and until the following conditions have been met:
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(a) That the Mayor and City Treasurer have certified that the City is not then in default as to any
covenant, condition or obligation prescribed by any ordinance authorizing the issuance of Bonds Similarly
Secured then outstanding, including showings that all interest, sinking and reserve funds then provided for
have been fully maintained in accordance with the provisions of said ordinances;
(b) That the applicable laws of the State of Texas in force at the time provide permission and authority
for the issuance of such bonds and have been fully complied with;
(c) That the City has secured from an independent Certified Public Accountant his written report
demonstrating that the Net Revenues of the System were, during the last completed Fiscal Year, or
during any consecutive twelve (12) months period of the last fifteen (1.5) consecutive months prior to the
month of adoption of the ordinance authorizing the Additional Bonds, equal to at least one and one-half
(1-l/2) times the average annual principal and interest requirements ofall the bonds which will be secured
by a first lien on and pledge of the Net Revenues of the System and which will be outstanding upon the
issuance of the Additional Bonds; and further demonstrating that for the same period as is employed in
arriving at the aforementioned test said Net Revenues were equal to at least one and one-fifth (1-1/.5)
times the maximum annual principal and interest requirements of all such bonds as will be outstanding
upon the issuance of the Additional Bonds;
(d) That the Additional Bonds are made to mature on April 1.5 or October 1.5, or both, in each of the
years in which they are provided to mature;
(e) The Reserve Portion of the Bond Fund shall be accumulated and supplemented as necessary to
maintain a sum which shall be not less than the average annual principal and interest requirements of all
bonds secured by a first Hen on and pledge of the Net Revenues of the System which will be outstanding
upon the issuance of any series of Additional Bonds. Accordingly, each ordinance authorizing the issuance
of any series of Additional Bonds shall provide for any required increase in said Reserve Portion, and if
supplementation is necessary to meet all conditions of said Reserve Portion, said ordinances shall make
provision that same be supplemented by the required amounts in equal monthly installments over a period
of not to exceed sixty (60) calendar months from the dating of such Additional Bonds.
When thus issued, such Additional Bonds may be secured by a pledge of the Net Revenues of the System on
a parity in all things with the pledge securing the issuance of the Bonds and the Previously Issued Bonds.
SECTION 22: Maintenance and Operation -Insurance. That the City hereby covenants and agrees to
maintain the System in good condition and operate the same in an efficient manner and at reasonable
cost, The City further agrees to maintain insurance for the benefit of the registered owners of the Bonds
of the kinds and in the amounts which are usually carried by private companies operating similar
properties, and that during such time all policies of insurance shall be maintained in force and kept
current as to premium payments. All moneys received from losses under such insurance policies other
than public liability policies are hereby pledged as security for the Bonds Similarly Secured until and
unless the proceeds thereof are paid out in making good the loss or damage in respect of which such
proceeds are received, either by replacing the property destroyed or repairing the property damaged, and
adequate provisions made within ninety (90) days after the date of the loss for making good such loss or
damage. The premiums for ~1 insurance policies required under the provisions of this Section shall be
considered as maintenance and operation expenses of the System.
SECTION 23: Records-Accounts-Accounting Reports. That the City hereby covenants and agrees so
long as any of the Bonds or any interest thereon remain outstanding and unpaid, it will keep and maintain
a proper and complete system of records and accounts pertaining to the operation of the System separate
and apart from all other records and accounts of the City in accordance with generally accepted
accounting principles prescribed for municipal corporations, and complete and correct entries shall be
made of all transactions relating to said System, as provided by applicable law. The registered owner of
any Bonds, or any duly authorized agent or agents of such owner, shall have the right at all reasonable
times to inspect aU such records, accounts and data relating thereto and to inspect the System and all
properties comprising same. The City further agrees that as soon as possible 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. Each such audit, in addition to whatever other matters may be thought
proper by the Accountant, shall particularly include the following:
(a) A detailed statement of the income and expenditures of the System for such Fiscal Year;
(b) A balance sheet as of the end of such Fiscal Year;
i (c) The Accountant's comments regarding the manner in which the City has complied with the
covenants and requirements of this ordinance and his recommendations for any changes or improvements
in the operation, records and accounts of the System;
(d) A list of the insurance policies in force at the end of the Fiscal Year on the System properties,
setting out as to each policy the amount thereof, the risk covered, the name of the insurer, and the
policy's expiration date;
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(e) A list of the securities which have been on deposit as security for the money in the Bond Fund
throughout the Fiscal Year and a list of the securities, if any, in .which the Reserve Portion of the Bond
Fund has been invested;
(f) The total number of metered and unmetered customers, if any, connected with the System at the
.end of the Fiscal Year.
Expenses incurred in making the audits above referred to are to be regarded as maintenance and operating
expenses of the System and paid as such. Copies of the aforesaid annual audit shall be immediately
furnished to the Executive Director of the Municipal Advisory Council of Texas at his office in Austin,
Texas, and, upon written request, to the original purchasers and any subsequent registered owner of the
Bonds.
SECTION 211: Remedies in Event of Default. That, in addition to all the rights and remedies provided by
laws of the State of Texas, the City covenants and agrees particularly that in the event the City (a)
defaults in payments to be made to the Bond Fund as required by this ordinance or (b) defaults in the
observance or performance of any other of the covenants, conditions or obligations set forth in this
ordinance, the registered owner of any of the Bonds shall be entitled to a writ of mandamus issued by a
court of proper jurisdiction compelling and requiring the City Council and other officers of the City to
observe and perform any covenant, condition or obligation prescribed in this ordinance~
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 acquiescence therein, and every such
right or power may be exercised from time to time and as often as may be deemed expedient. The
specific r.emedies herein provided shall be cumulative of all other existing remedies and the specifications
of such remedies shall not be deemed to be exclusive.
SECTION 25: Special Covenants. The Chy hereby further: covenants as follows:
(a) That it has the lawful power to pledge the revenues supporting this issue of Bonds and has lawfully
exercised said power under the Constitution and laws of the State of Texas, including Article llll et seq.,
and Article 2368a, Revised Civil Statutes of Texas, 1925, as amended and Chapter 252 of the Local
Government Code; that the Previously Issued Bonds, the Bonds and the Additional Bonds, when issued,
shall be ratably secured under said pledge of income in such manner that one bond shall have no
preference over any other bond of said issues.
(b) That, other than for the payment of the Previously Issued Bonds and the Bonds, the Net Revenues of
the System have not been pledged t~ the payment of any debt or obligation of the City or of the System.
(c) That, so long as any of the Bonds or any interest thereon remain outstanding, the City will not sell,
lease or encumber the System or any substantial part thereof; provided, however, this covenant shall not
be construed to prohibit the sale of such machinery, or other properties or equipment which has become
obsolete or otherwise unsuited to the efficient operation of the System when other property of equal value
has been substituted therefor, and, also, with the exception of the Additional Bonds expressly permitted
by this ordinance to be issued, it will not encumber the Net Revenues of the System unless such
encumbrance is made junior and subordinate to all of the provisions of this ordinance.
(d) . The City will cause to be rendered monthly to each customer receiving electric services a statement
therefor and will not accept payment of less than all of any statement so rendered, using its power under
existing ordinances and under all such ordinances to become effective in the future to enforce payment,
to withhold service from such delinquent customers and to enforce and authorize reconnection charges.
(e) That the City will faithfully and punctually perform all duties with respect to the System required
by the Constitution and laws of the State of Texas, including the making and collecting of reasonable and
sufficient rates for services supplied by the System, and the segregation and application of the revenues
of the System as required by the provisions of this ordinance.
(f) No free service shall be provided by the System and to the extent the City or its departments or
agencies utilize the services provided by the System, payment shall be made therefor at rates charged to
others for similar service.
SECTION 26: Special Obligations. The Bonds are special obligations of the City payable from the pledged
Net Revenues of the System and the registered owners thereof shall never have the right to demand
payment thereof out of funds raised or to be raised by taxation.
SECTION 27: Bonds are Negotiable Instruments •. Each of the Bonds herein authorized shall be deemed
and construed to be a "Security," and as such a negotiable instrument, within the meaning of Article 8 of
the Uniform Commercial Code.
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SECTION 28: Ordinance to Constitute Contract. The prov1s1ons of the Ordinance shall constitute a
contract between the City and the registered owner or owners from time to time of the Bonds and no
change, variation or alteration of any kind of the provisions of the Ordinance may be made, except as
permitted in this Section. The City may, without the consent of or notice to any registered owner or
owners, from time to time and at any time, amend this Ordinance in any manner not detrimental to the
interests of the registered owner or owners holding a majority in aggregate principal amount of the Bonds
then Outstanding affected thereby, amend, add to, or rescind any of the provisions of this Ordinance;
provided that, without the consent of all registered owners of Outstanding Bonds, 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 Bonds, reduce the principal amount thereof, the redemption price therefor, 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 Bonds, (2) give any preference to any Bond over any other Bond, or (3) reduce the
aggregate principal amount of Bonds required for consent to any such amendment, addition or rescission.
The terms "Outstanding" and noutstanding" when used in this Ordinance with respect to Bonds means, as of
the date ofdetermination, all Bonds theretofore issued and delivered under this Ordinance, except:
(1) those Bonds theretofore cancelled by the Paying Agent/Registrar or delivered to the Paying
Agent/Registrar for cancellation;
(2) those Bonds for which payment has been duly provided by the City of the irrevocable deposit
with the Paying Agent/Registrar of money 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 Bonds 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;
(3) those Bonds that have been mutilated, destroyed, lost or stolen and replacement Bonds have
been registered and delivered in lieu thereof as provided in Section 32 hereof; and
(~) those Bonds for which the payment of the principal of, premium, if any, and interest on which
has been duty provided for by the City in accordance with law.
SECTION 29: Covenants to Maintain Tax-Exempt Status.
(a) Definitions. When used in this Section, 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 Bonds to the initial purchaser(s).
"Computation Date" has the meaning stated in Treas. Reg.§ t.l~8-8T(b)(l).
"Gross Proceeds" has the meaning stated in Treas. Reg.§ 1.1~8-8T(d).
"Investment" has the meaning stated in Treas. Reg.~ 1.1~8T-8T(e).
"Nonpurpose Investment" means any Investment in which Gross Proceeds of the Bonds are invested
and which is not acquired to carry out the governmental purpose of the Bonds.
"Rebatable Arbitrage" has the meaning stated in Treas. Reg.~ 1.1~8-2T.
"Yield of'1
(1) any Investment shall be computed in accordance with Treas. Reg.~ 1.1~8-2T, and
(2) the Bonds has the meaning stated in Treas. Reg.~ 1.1~8-3T.
(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 Bond to become includable in the gross income, as defined in
section 61 of the Code, of the owner thereof for federal income tax purposes. Without limiting the
generality of the foregoing, unless and until the City shall have received a wri.tten 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 exemption from federal income tax of the interest on any Bond, 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 1~1 of the Code and the
regulations and rulings thereunder, the City shall, at all times prior to the last Stated Maturity of Bonds,
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(1) exclusively own, operate, and possess all property the acquisition, construction, or improvement
of which is to be financed with Gross Proceeds of the Bonds and not use .or permit the use of such
Gross Proceeds or any property acquired, constructed, or improved with . such Gross Proceeds
(including all contractual arrangements with terms different than those applicable to the general
public) in any activity carried on by any person or entity other than a state or local government,
~ 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 Bonds 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 llfl of the Code and the regulations
and rulings thereunder, the City shall not use Gross Proceeds of the Bonds to make or finance loans to any
person or entity other th?-n 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 burdents and benefits of ownership, of such Gross Proceeds or any property
acquired, constructed, or improved with such Gross Proceeds are otherwise transferred ln a transaction
which is the economic equivalent of a loan. ·
(e) Not to Invest at Higher Yield. Except to the ex'tent permitted by section llf8 of the Code and the
regulations and rulings thereunder, the City shall not, at any time prior to the final Stated Maturity of the
Bonds, directly or indirectly invest Gross Proceeds of the Bonds in any Investment (or use such Gross
Proceeds to replace money so invested), .if as a result of such investment the Yield allocated to such Gross
Proceeds whether then heid or previously disposed of, exceeds the Yield of the Bonds.
(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 Bonds to be federally guaranteed within the meaning of section 149(b) of the Code and the regulations
and rulings thereunder.
(g) Information Re ort. 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 Bonds 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,
(1) The City shall account for all Gross Proceeds of the Bonds (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 Bonds until six years
after the final Computation Date. The City may, however, to the extent permitted by section 148(f)
of the Code and the regulations thereunder, commingle Gross Proceeds of the Bonds 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 0) cause to be
calculated by a nationally recognized accounting or financial advisory firm or (H) 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. ~
1.148-2T and rulings thereunder, the Rebatable Arbitrage with respect to the Bonds. The City shar:!
maintain such calculations with the official transcript of the proceedings relating to the issuance of
the Bonds until six years after the final Computation Date.
(3) As additional consideration for the purchase of the Bonds 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 ancl 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-lT through 1.148-9T
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
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within a reasonable amount of time thereafter, including payment to the United States of any
Correction Amount as described in Treas. Reg. § 1.148-l T(c)(2) and any penalty under Treas. Reg.
§ 1.148-1 T(c)(:))(H)(B).
SECTION 30: Final Deposits; Governmental Obligations. (a) All or any of the Bonds shall be deemed to be
paid, retired and no longer outstanding within the meaning of this Ordinance when payment of 'the
principal of, and redemption premium, if any, on such Bonds, plus interest thereon to the due date thereof
(whether such due diite be by reason of maturity, upon redemption, or otherwise) either (i) shall have been
made or caused to be made in accordance with the terms thereof (including the giving of any required
notice of redemption), or (ii) shall have been provided by irrevocably depositing .with, or making available
to, the Paying Agent, in trust and irrevocably set aside exclusively for s~ch payment, (1) money sufficient
to make such payment or (2) Government Obligations, certified by an independent public accounting firm
of national reputation, to mature as. to principal and interest in such amounts and at such times as will
insure the availability, without reinvestment, of sufficient money to make such payment, and all
necessary and proper fees, compensation and·expenses of the Paying Agent pertaining to the Bonds with
respect to which such deposit is made shall have been paid or the payment thereof provided to the
satisfaction of the Paying Agens. At such time as a Bond shall be deemed to be paid hereunder, as
aforesaid, it shall no longer be secured by or entitled to the benefit of this Ordinance or a lien on and
pledge of the Net Revenues of the System, and shall be entitled to payment solely from such money or
Government Obligations.
The term ttGovernment Obligations", as used in this Section, 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, which may be United States Treasury obligations such as its
State and Local Government Series, and which may be in book-entry form.
(b) That any moneys so deposited with the Paying Agent may at the direction of the City also be
invested in Government Obligations, maturing in the amounts and times as hereinbefore set forth, and all
income from all Government Obligations in the hands of the Paying Agent pursuant to this Section which
is not required for the payment of the Bonds, the redemption premium, if any, and interest thereon, with
respect to which such money has been so deposited, shall be turned over to the City or deposited as
directed by the City.
(c) That the City covenants that no deposit will be made or accepted under clause (a)(H) of this Section
and no use made of any such deposit which would cause the Bonds to be treated as arbitrage bonds within
the meaning of Section 1 03(c) of the Internal Revenue Code of 19.54, as amended.
(d) That notwithstanding any other provisions of this Ordinance, all money or Government Obligations
set aside and held in trust pursuant to the provisions of this Section for the payment of the Bonds, the
redemption premium, if any, and interest thereon, shall be applied to and used for the payment thereof,
the redemption premium, if any, and interest thereon and the income on such money or Government
Obligations shall not be considered to be income or revenues of the System.
(e) The provisions of this Section and this Ordinance are subject to the applicable unclaimed property
laws of the State of Texas."
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OTHER RELEVANT INFORMATION
Ratings
The Cityts presently outstanding Electric Light and Power System Revenue Bonds; Series 1987 and Series
1988, are rated "Aaa" by Moody's Investors ServiCe, Jnc. ·("Moody's") and "AAA" by Standard &. Poor's
Corporation'("S&P") through municipal bond insurance. The underlying credit rating for this debt and the
balance of the City's currently outstanding Electric Light and Power System Revenue Bonds is' rated "AI''
by Moody's and "A+" by S&P. Applications for contract ratings on this issue have been made to Moody's
and S&P. An explanation of the significance of such ratings may be obtained from the company furnishing
the rating. The ratings reflect only the respective views of such organizations and the City makes no
representation as to the appropriateness of the ratings~. There is no assurance that such ratings will
continue for any given period of time or that they wm not be revised downward or withdrawn entirely by
either or both of such rating companies~ if in the judgment of either or bOth companies, circumstances so
warrant. Any such downward revision or withdrawal of such ratings, or either of them, may have an
adverse effect on the market price of the Bonds.
Tax Exemption
The delivery of the Bonds is subject to the opinion of Bond Counsel to the effect that interest on the
Bonds for federal income tax purposes (I) will be excludable from gross income, as defined in section 61 of
the Internal Revenue Code of 1986, as amended to the date of such opinion (the "Code"), pursuant to
section 103 of the Code and existing regulations, published rulings, and court decisions; and (2) will not be
included in computing the alternative minimum taxable income of the owners thereof who are individuals
or, except as hereinafter described, corporations. The statute, regulations, rulings, and court decisions on
which such opinion is based are subject to change.
Interest on all tax•exempt obligations, including the Bonds, owned by a corporation will be included in
such corporation's adjusted current earnings for tax years beginning after 1989 for purposes of cal~ulating
the alternative minimum taxable income of such corporation, other than an S corporation, a qualified
mutual fund, a real estate investment trust (REIT), or a real estate mortgage investment conduit
(REMIC). A corporation's alternative minimum taxable income is the basis on which the alternative
minimum tax imposed by the Tax Reform Act of 1986 and the environmental tax imposed by the
Superfund Revenue Act of 1986 will be computed.
In rendering the foregoing opinions, Bond Counsel will rely upon representations and certifications of the
City made in a certificate dated the date of delivery of the Bonds pertaining to the use, expenditure, !lnd
investment of the proceeds of the Bonds and will assume continuing compliance by the City with the
provisions of the Ordinance subsequent to th~ issuance of the Bonds. The Ordinance contains covenants by
the City with respect to, among other matters, the use of the proceeds of the'Bonds and the facilities'
financed therewith by persons other than state or local governmental units, the manner. in which the
proceeds of the Bonds are to be invested, the periodic calculation and payment to the United States
Treasury of arbitrage "profits" from the investment of the proceeds, and the reporting of certain
information to the United States Treasury. Failure to comply with any of these covenants would cause
interest on the Bonds to be includable in the gross income of the owners thereof from date of the issuance
of the Bonds.
Except as described above, Bond Counsel expresses no other opinion with respect to any other federal,
state or local tax consequences under present law, or proposed legislation, resulting from the receipt or
accrual of interest on, or the acquisition or disposition of, the Bonds. Prospective purchasers of the Bonds
should be aware that the ownership of tax·exempt obligations such as the Bonds may result in collateral
federal tax consequences to, among others, financial institutions, life insurance companies, property and
casualty insurance companies, certain foreign corporations doing business in the United States, S
corporations with subchapter C earnings and profits, individual recipients of Social Security or Railroad
Retirement benefits, and taxpayers who may be deemed to have incurred or continued indebtedness to
purchase or carry, or who have paid or incurred certain expenses allocable to, tax·exempt obligations.
Prospective purchasers should consult their own tax advisors as to the applicability of these consequences
to their particular circumstances.
Tax Accounting Treatment of Discount Bonds
The initial public offering price to be paid for certain Bonds may be less than the principal amount
payable on such Bond at maturity (the "Discount Bonds"). An amount equal to the difference between the
initial public offering price of the Discount Bond (assuming that a substantial amount of the Discount
Bonds 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 Bonds. A portion of such interest, allocable
to the holding period of such Discount Bond by the initial purchaser, will, upon the disposition of such
Discount Bonds (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 accrued actuarially in accordance with the constant interest method over the life of a Discount Bond,
taking into account the semiannual compounding of accrued interest, at the yield to maturity on such
Discount Bond.
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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 profits tax applicable to certain foreign corporations doing business
in the United States, even though there will not be a corresponding cash .payment. In addition, the accrual
of such interest may result in certain other collateral federal income tax consequences to, among others,
financial institutions, life insurance companies, property and casualty insurance companies, S corporations
with subchapter C earnings and profits, individual recipients of Social Security or Railroad Retirement
benefits, and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or
carry or who have paid or incurred certain expenses allocable to tax-exempt obligations.
In the event of the sale or other taxable disposition of a Discount Bond prior to maturity, the amount
realized by the owner in excess of the basis of such Discount Bond in the hands of such owner (adjusted
upward by the portion of the original issue discount allocable to the period for which such Discount Bond
was held) is includable in gross income.
Owners of Discount Bonds should consult with their own tax advisors with respect to the determination for
federal income tax purposes of accrued interest upon disposition of Discount Bonds and with respect to
the state and local tax consequences of owning Discount Bonds. It is possible that, under applicable
provisions governing determination of state and local income taxes, accrued interest on Discount Bonds
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 against the City
that would have a material adverse financial impact upon the City or its operations.
Registration and Qualification of Bonds for Sale
The sale of the Bonds has not been registered under the Federal Securities Act of 1933, as amended, in
reliance upon the exemption provided thereunder by Section 3(a) (2); and the Bonds have not been qualified
under the Securities Act of Texas in reliance upon various exemptions contained therein; nor have the
Bonds been qualified under the securities acts of any jurisdiction. The City assumes no responsibility for
qualification of the Bonds under the securities laws of any jurisdiction in which the Bonds may be sold,
assigned, pledged, hypothecated or otherwise transferred. This disclaimer of responsibility for qualifi-
cation for sale or other disposition of the Bonds shall not be construed as an interpretation of any kind
with regard to the availability of any exemption from securities registration provisions.
Legal Investments and Eligibility to Secure Public Funds in Texas
Section 9 of the Bond Procedures Act provides that the Bonds "shall constitute negotiable instruments,
and are investment securities governed by Chapter 8, Texas Uniform Commercial Code, notwithstanding
any provisions of law or court decision to the contrary, and are legal and authorized investments for
banks, savings banks, trust companies, building and loan associations, savings and loan associations,
insurance companies, fiduciaries, and trustees, and for the sinking fund of cities, towns, villages, school
districts, and other political subdivisions or public agencies of the State of Texas". Texas law further
provides that if the Bonds 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 Bonds are eligible to secure deposits of
any public funds of the state, its agencies and political subdivisions, and are legal security for those
deposits to the extent of their market value. No review by the City has been made of the laws in other
states to determine whether the Bonds are legal investments for various institutions in those states. To
determine whether the Bonds described herein are eligible to secure public deposits, reference should be
made to current ratings shown herein under Ratings (see "Ratings").
Legal Opinions and No-Litigation Certificate
The City will furnish a complete transcript of proceedings had incident to the authorization and issuance
of the Bonds, including the unqualified approving legal opinion of the Attorney General of Texas approving
the Initial Bond and to the effect that the Bonds are valid and legally binding special obligations of the
City, and based upon examination of such transcript of proceedings, the approving legal opinion of Bond
Counsel, to like effect and to the effect that the interest on the Bonds will be excludable from gross
income for federal income tax purposes under Section 103(a) of the Code, subject to the matters described
under "Tax Exemption" herein, including the alternative minimum tax on corporations. The customary
closing papers, including a certificate to the effect that no litigation of any nature has been filed or is
then pending to restrain the issuance and delivery of the Bonds, or which would affect the provision made
for their payment or security, or in any manner questioning the validity of said Bonds will also be
furnished. Bond Counsel was not requested to participate, and did not take part, in the preparation of the
Notice of Sale and Bidding Instructions, the Official Bid Form and the Official Statement, and such firm
has not assumed any responsibility with respect thereto or undertaken independently to verify any of the
information contained therein, except that, in its capacity as Bond Counsel, such firm has reviewed the
-3.5 -
information describing the Bonds in the Official Statement to verify that such description conforms to the
provisions of the Ordinance. The legal fee to be paid Bond Counsel for services rendered in connection
with the issuance of the Bonds is contingent on the sale and delivery of the Bonds. The legal opinion will
be printed.on the Bonds.
Authenticity of Financial Data and Other Information
The financial data and other information contained herein have been obtained from the City's records,
audited financial statements and other sources which are believed to be reliable. There is no guarantee
that any of the assumptions or estimates contained herein will be realized. All of the summaries of the
statutes, documents and resolutions contained in this Official Statement are made subject to all of the
provisions of such statutes, documents and resolutions. These summaries do not purport to be complete
statements of such provisions and reference is made to such documents for further information.
Reference is made to original documents in all respects.
Financial Advisor
First Southwest Company is employed as Financial Advisor to the City in connection with the issuance of
the Bonds. The Financial Advisor's fee for services rendered with respect to the sale of the Bonds is
contingent upon the issuance and delivery of the Bonds. First Southwest Company may submit a bid for
the Bonds, either independently or as a member of a syndicate organized to submit a bid for the Bonds.
First Southwest Company, in its capacity as Financial Advisor, has relied on the opinion of Bond Counsel
and has not verified and does not assume any responsibility for the information, covenants and
representations contained in any of the legal documents with respect to the federal income tax status of
the Bonds, or the possible impact of any present, pending or future actions taken by any legislative or
judicial bodies.
Certification of the Official Statement
At the time of payment for and delivery of the Bonds, the Purchaser will be furnished a certificate,
executed by proper officers, acting in their official capacity, to the effect that to the best of their
knowledge and belief: (a) the descriptions .and statements of or pertaining to the City contained in its
Official Statement, and any addenda, supplement or amendment thereto, on the date of such Official
Statement, on the date of sale of said Bonds and the acceptance of the best bid therefor, and on the date
of the delivery, were and are true and correct in all material respects; (b) insofar as the City and its
affairs, including its financial affairs, are concerned, such Official Statement did not and does not contain
an untrue statement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances under which they were made,
not misleading; (c) insofar as the descriptions and statements, including financial data, of or pertaining to
entities, other than the City, and their activities contained in such Official Statement are concerned, such
statements and data have been obtained from sources which the City believes to be reliable and the City
has oo reason to believe that they are untrue in any material respect; and (d) there has been no material
adverse change in the financial condition of the City since the date of the last audited financial
statements of the City.
The Ordinance authorizing the issuance . of the Bonds will also approve the form and content of this
Official Statement, and any addenda, supplement or amendment thereto, and authorize its further use in
the reoffering of the Bonds by the Purchaser.
ATTEST:
RANETTE BOYD
City Secretary
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B. C. McMINN
Mayor
City of Lubbock, Texas
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I
APPENDIX A
GENERAL INFORMATION REGARDING THE CITY
• Amarillo
LUBBOCK Fort Worth •• Dallas
aso
*Austin
• • San Antonio
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Location and Area
The City of Lubbock, County Seat of Lubbock County, Texas, is located on the South Plains of West
Texas. Lubbock is the economic, educational, cultural and medical center of the area.
Population
Lubbock is the ninth largest City in Texas:
Agriculture
1910 Census
1920 Census
1930 Census
1940 Census
19.50 Census
1960 Census
1970 Census
1980 Census
1990 Census
City of Lubbock
(Corporate Limits)
1,938
4,0.51
20,.520
31,8.53
71,390
128,691
149,101
173,979
186,206
Metropolitan Statistical Area ("MSA11) (Lubbock County)
1970 Census 179,295
1980 Census 211,651
1990 Census 222,636
Lubbock is the center of a highly mechanized agricultural area with a majority of the crops irrigated with
water from underground sources. Principal crops are cotton and grain sorghums with livestock a major
additional source of agricultural income. The estimated 1990 cotton crop in the 2.5-county area around
Lubbock was approximately 2,6.5.5,000 bales; 1989 official production was 1,608,200 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 204 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,
foodstuffs, mobile and prefabricated homes, poultry and livestock feeds, boilers and pressure vessels,
automatic sprinkler system heads, structural steel fabrication and soft drinks.
Lubbock MSA Labor Force Estimates
CiviHan Labor Force
Total Employment
Unemployment
Percent Unemployed
(1) Subject to revision.
February
1991 (1)
11.5,000
109,700
.5,300
4.6%
Source: Texas Employment Commission.
January
1991
113,900
107,900
6,000
.5.3%
December
1990
116,900
111,400
5,.500
4.7%
February
1990
113,200
107,800
.5,400
4.8%
January
1990
113,200
108,300
4,900
4.3%
December
1989
11.5,400
110,400
.5,000
4.3%
Estimated non-agricultural wage and salaried jobs in various categories as of January, 1991, were:
Manufacturing
Mining
Construction
Transportation
Trade
Finance, Insurance and Real Estate
Services
Government
Total
A-1
7,200
200
3,200
.5,300
28,300
.5,700
2.5,300
23,400
98,600
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Some larger industries in Lubbock (with 300 employees or more) are:
Company
Texas Tech University
Lubbock Independent School District
Methodist Hospital
Reese Air Force Base
City of Lubbock
St. Mary's Hospital
University Medical Hospital
Texas Instruments, Incorporated
Furr's Incorporated
United Supermarkets
Lubbock State School
U.S. Postal Service
Furr's Cafeterias
Southwestern Bell Telephone Company
Lockheed Corporation
Fleming Companies, Inc.
ARA Food Services
Eagle Picher Industries
Southwestern Public Service Company
Marriott Corporation
McCrory's Stores
United Parcel Service
Lubbock Regional Mental Health
and Mental Retardation Center
Lubbock Avalanche-Journal
Energas Company
Texas Department of Human Services
Coca Cola-Or. Pepper
Seven-Up Bottling Company
* Full and part time.
** Military and Civilian.
Education ••• Texas Tech University •••
State University
Public Schools
Hospital
Product
U.S. Military Installation
City Government
Hospital
Hospital
Electronics Manufacturer
Retail Groceries
Retail Groceries
School for Mentally Retarded
Post Office
Cafeterias
Telephone Utility
Contract Aircraft Maintenance at Reese AFB
Wholesale Groceries
Food Broker
Earth Moving Equipment
Electric Utility
Hotel/Housekeeping and Hotel Management
Wholesale Distribution
Express Delivery Service
State of Texas Agency
Daily Newspaper
Natural Gas UtlHty
State of Texas Agency
Soft Drink Bottling
Estimated
Employees
February,
1991
6,715*
2,850
2,800
1 ,993**
2,022
1,687
1,627
1,314
1,300
1 ,070*
979
750
625
540
509
449*
425
379
363
355*
349
341t
334*
330
322
3oo
300*
Established in Lubbock in 1923, Texas Tech University is the fifth largest State-owned University in Texas
and had a Spring 1991 enrollment of 23,443. Accredited by the Southern Association of Colleges and
Schools, the University is a co-educational, State-supported institution offering the bachelor's degree in
158 major fields, the master's degree in 106 major fields, the doctorate degree in 61 major fields, and the
professional degree in 2 major fields (law and medicine).
The University proper is situated on 451 acres of the 1,829 acre campus, and has over 160 permanent
buildings with additional construction in progress. Spring, 1991, faculty membership is 868 full-time and
712 part-time. lncludin~ the Health Science Center, the University's operating budget for 1990:-91 .is
$209.9 million of which ~110.4 miUion is from State appropriations; book value of physical plant assets,
including the Health Science Center, is in excess of $300 million.
The medical school had an enrollment of 385 for the Spring Semester, 1991, not including residents; there
are 36 graduate students. The School of Nursing has a Spring Semester, 1991, enrollment of 270 including
the Permian Basin Program, located in Midland/Odessa; there were 42 graduate students. The Allied
Health School has a Spring Semester, 1991, enrollment of 120 •
A-2
Other Education Information
The Lubbock Independent School District, with an area of 87 • .5 square miles, includes over 90% of the City
of· Lubbock. September, 1990, enrol!ment was 30,684; there were approximately 2,8.50 total employees,
including 2,308 certified (professional) personnel and .542 other employees. The District operates five
senior high schools, nine junior high schools, 40 elementary schools and other educational programs.
Scholastic Membership History*
School
Year
1981-82
1982-83
1983-84
1984-8.5
198.5-86
1986-87
1987-88
1988-89
1989-90
1990-91
Student
Membership
28,942
28,647
28,424
28,223
29,209
29,490
30,9.5.5
30,828
30,861
. 30,684
Refined
Average
Daily
Attendance .
26,995
27,059
27' 13.5
26,8.53
27,521
27,837
28,194
28' 1.59
28,373
N.A.
* Source: Superintendent's Office, Lubbock Independent School District.
Lubbock Christian University, a privately owned, co-educational senior colJege located in Lubbock, has an
enrollment of 944 for the Spring Semester, 1991.
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. Course offerings cover
technical/vocational subjects, and Spring Semester, 1991, enrollment is 1,272. The ColJege also operates
a major off-campus learning center at Reese Air Force Base; course offerings are in primarily academic
subjects and Spring Session, 1991, enrollment is .593.
The State of Texas School for the Mentally Retarded, located on a 226-acre site in Lubbock, now consists
of 40 buildings with bed-capacity for 440 students; 439 students were in residence in March, 1991. The
School's operating budget for 1990/91 is in excess of $20.0 million; there are 979 professional and other
employees.
Transportation
Scheduled airline transportation at Lubbock International Airport is furnished by American Airlines, Delta
Airlines, Southwest Airlines, America West Airlines, Continental Express and American Eagle; non-stop
service is provided to Dallas-Fort Worth International Airport, Dallas Love Field, El Paso, Austin,
Amarillo, Midland-Odessa, Albuquerque and Phoenix. 1990 passenger boardings totaled 61.5,639.
Extensive private aviation services are located at the airport.
Rail transportation is furnished by the Atchison, Topeka and Santa Fe Railway Company and the
Burlington-Northern, Inc., with through service to Dallas, Houston, Kansas City, Chicago, Los Angeles,
and San Francisco. Short-haul rail service is also furnished by the Seagraves, Whiteface and Lubbock
Railroad. Texas, New Mexico and Oklahoma Bus Lines, a subsidiary of Greyhound Corporation, provides
bus service. Several motor freight common carriers provide service.
Lubbock has a well developed highway network including Interstate 27 (Lubbock-Amarillo), 4 U.S.
Highways, 1 State Highway, a controlled-access outer loop and a county-wide system of paved
farm-to-market roads.
Government and Military
Reese Alr Force Base, located 5 miles west of Lubbock, is an undergraduate Jet Pilot Training Base of the
Air Training Command. The Base covers over 3,000 acres and has approximately 1,614 military and
approximately 379 civilian personnel. Lockheed Corporation has .509 employees at the Base under an
aircraft maintenance contract with the Air Force.
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.
A-3
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Hospi1als and Medical Care
There are eight hospitals in the City with approximately 1,930 beds. Methodist Hospital is the largest and
also operates an accredited nursing school. Lubbock County Hospital District, with boundaries contiguous
with Lubbock County, owns the University Medical Center which it operates as .a teaching hospital for the
Texas Tech University Medical School. There are numerous clinics and over 400 practicing physicians 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.
Recreation and Entertainment
Lubbock's Mackenzie State Park. and over 6.5 City parks and playgrounds provide recreation centers,
shelter buildings, a garden and art center, swimming pools, a golf course, tennis and volley ball courts,
baseball diamonds and picnic areas, including the Yellowhouse Canyon Lakes system of four lakes and .500
acres of adjacent parkland extending from northwest to southeast Lubbock along the Yellowhouse Canyon.
There are several privately-owned public swimming pools and golf courses, and country clubs.
The City of Lubbock has developed a 36 square block area of approximately 100 acres adjacent to
downtown Lubbock under the Lubbock Memorial Civic Center program. Approximately .50 acres contain
the 300,000 square foot Lubbock Memorial Civic Center, the main City library building and State
Department of Public Safety Offices; a .50 acre peripheral area has been redeveloped privately with office
buildings, hotels and motels, a hospital and other facilities.
Available to residents are Texas Tech University programs and events, Texas Tech University Museum,
Planetarium and Ranch Heritage Center exhibits and programs, Lubbock .Memorial Civic Center and its
events, Lubbock Symphony Orchestra programs, Lubbock Theatre Center, Lubbock Civic Ballet, Municipal
Auditorium and Coliseum programs and events, the library and its branches, the annual Panhandle-South
Plains Fair, college and high school football, basketball and other sporting events; modern movie theatres.
Churches
Lubbock has approximately 22.5 churches representing more than 2.5 denominations.
Utility Services
Water and Sewer-City of Lubbock.
Gas-Energas Company.
Electric -City of Lubbock (Lubbock Power & Light) and Southwestern Public Service Company; and, in a
small area, South Plains Electric Co-operative.
Economic Indices ( 1)
Year
1981
1982
1983
1984
198.5
1986
1987
1988
1989
1990
Building
Permits
106,7.57,064
130,720,.599
230,440,777
212,3.53,170
168,740,229
139,317,2.52
100 , 046, 309
10.5,1.59,.52.5
10.5,363,072
140,8.5.5,719
Water
.5.5,.527
.56,172
.58,034
.59,262
60,0.51
60,7.51
61,027
61,628
61,8.57
62,178
Utility Connections
Gas
.53,78.5
.54,6.50
.54,927
.56,.540
.56,600
.56,900
.57,266
.57,886
60,312
60, 1760)
Electric
(LP&L Only) (2)
33,716
34,987
37,282
39,037
40,.506
41,7.59
42,696
43,781
44,.518
4.5,301
(1) All data as of 12-31 unless otherwise noted; Sources: City of Lubbock; Lubbock Board of City
Development.
(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.
(3) As of November 30, 1990.
A-4
Building Permits by Classification
Residential Permits Commercial,
single i!!amilx DuQiexes A~rtments ~I) Total Residential Public Total
No. Permits No. Dwelling and Other . Building
Year No. Units Value (Units~ Value No. Units Value Units Value Permits Permits
1981 655 $47,760,510 13( 23 * s 1,389,500 748 $20,415,552 1,426 s 69,565,562 s 37 , 191 , 502 SI06,757,064
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(270) 11,786,500 2,520 59,356,586 3,956 159,973,841 70,466,936 230,440,777
1984 919 65,815,115 56(112) 6,068,500 645 16,546,000 1,676 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
I v. 1986 599 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--0-508 44,466,937 55,579,372 100,046,309
1988 414 35,588,945 -0--0--0--0-414 35,588,945 69,570,580 105,159,525
1989 368 31,345,375 6 440,800 -0--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
(I) Data shown under "No. Units" is for each individual apartment dwelling unit, and is not for separate buildings; includes triplex and quadruplex
permits.
* As reported by City.
Source: City of Lubbock, Texas.
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The following tax and debt information with respect to the City of L~ Texas, has been lnduded in
the Appendix solely to provide a general description of the community served by the Electric Light and
Power System (the "System"). The Bonds are special obligations of the City payable solely from the Net
Revenues of the System and do not constitute an indebtedness to which the full faith and credit or taxing
power of the City will be pledged.
TAX INFORMATION
Ad Val«em Tax Law
The appraisal of property within the City is the responsibiUty of theLubbock Central Appraisal District.
Excluding agricultural and open-space land, which may be taxed on the basis of productive capacity, the
Appraisal District is required under the Property Tax Code to appraise all property within the Appraisal
District on the basis of 100% of its market value and is prohibited from applying any assessment ratios.
The value placed upon property within the Appraisal District is subject to review by an Appraisal Review
Board, consisting of three members appointed by the Board of Directors of the Appraisal District. The
Appraisal District is required to review the value of property within the Appraisal District at least every
four years. The City may require annual review at its own expense, and is entitled to challenge the
determination of appraised value of property within the City by petition filed with the Appraisal Review
Board.
Reference Is made to the VTCA, Property Tax Code, for identification of property subject to taxation;
property exempt or which may be exempted from taxation, if claimed; the appraisal of property for ad
valorem taxation purposes; and the procedures and limitations applicable to the levy and collection of ad
valorem taxes.
Article VIII of the State Constitution ("Article VIII") and State law provide for certain exemptions from
property taxes, the valuation of agricultural and open-space lands at productivity value, and the
exemption of certain personal property from ad valorem taxation.
Under Section 1-b, Article VIII, and State law, the governing body of a political subdivision, at its option,
may grant:
(1) An exemption of not less than $3,000 of the market value of the residence homestead of persons
65 years of age or older and the disabled from all ad valorem taxes thereafter levied by the political
subdivision;
(2) An exemption of up to 20% of the market value of residence homesteads; minimum exemption
$5,000.
State law and Section 2, Article VIII, mandate an additional property tax exemption for disabled veterans
or the surviving spouse or children of a deceased veteran who died while on active duty in the armed
forces; the exemption applies to either real or personal property with the amount of assessed valuation
exempted ranging from $1,500 to a maximum of S3,000.
Article VIII provides that eligible owners of both agricultural land (Section 1-d) and open-space land
(Section 1-d-1), including open-space land devoted to farm or ranch purposes or open-space land devoted
to timber production, may elect to have such property appraised for property taxation on the basis of its
productive capacity. The same land may not be qualified under both Section 1-d and 1-d-1.
Nonbusiness vehicles, such as automobiles or light trucks, are exempt from ad valorem taxation unless the
governing body of a political subdivision elects to tax this property. Boats owned as nonbusiness property
are exempt from ad valorem taxation.
Article VIII, Section 1-j of the Texas Constitution, provides for "freeport property" to be exempted from
ad valorem taxation. Freeport property is defined as goods detained in Texas for 175 days or less for the
purpose of assembly, storage, manufacturing, processing or fabrication. The exemption became effective
for the 199Q-91 fiscal year and thereafter unless action to tax such property has been taken prior to
Apri11, 1990. Decisions to continue to tax may be reversed in the future; decisions to exempt freeport
property are not subject to reversal. The City has taken action to tax freeport property.
The City grants an exemption to the market value of the residence homestead of persons 65 years of age
or older of $16,700; the disabled are granted an exemption of $10,000.
The City has not granted an additional exemption of 20% of the market value of residence homesteads;
minimum exemption of $5,000. ·
The City doesl not tax nonbusiness vehicles; and the Lubbock Central Appraisal District collects taxes for
the City of L~bock.
A-6
Valuation, Exemptions and Debt Obligations
1990 Market Valuation Established by Lubbock Central·
Appraisal District
Less Exemptions/Reductions at Market Value:
Residence Homestead (Over 65 or Disabled)
Disabled Veterans Exemptions
Open-Space Land Use
Value lost because property is exempted from taxation under
the Property Redevelopment and Tax Abatement Act (l)
Value of property in a Reinvestment Zone created under the
Tax Increment Financing Act (2)
Taxable Assessed Valuation
City Funded Debt Payable From Ad Valorem Taxes (3)(4):
General Obligation Debt (as of 2-15-91)
The General Obligation Bonds
The Waterworks Certificates
The Solid Waste Certificates
The Exhibition Hall/Auditorium Certificates
The Contractual Obligations
Funded Debt Payable From Ad Valorem Taxes
Less: Self-Supporting Debt (5):
Waterworks System General Obligation Debt
Sewer System General Obligation Debt
Golf Course General Obligation Debt
Solid Waste Disposal System General Obligation Debt
General Purpose Funded Debt Payable From Ad Valorem Taxes
Interest and Sinking Fund (as of 2-15-91)
$4,9.31,021 '795
$161,405,526
3,322,281
34,569,789
5,034,673
981 1 312 205 13131581
$4,725,708,214
$ 71,403,752
2,000,000
16,120,000
1,145,000
4,030,000
110851000
$ 95,783,752
$ 37,615,432
13,878,404
670,000
11145 1000 5313081836
$ 42,474,916
$ 2,042,182
Ratio Total Funded Debt to 1990 Taxable Assessed Valuation--------------------------------2.03%
Ratio General Purpose Funded Debt to 1990 Taxable Assessed Valuation ----------------------0.90%
1990 U.S. Census Population -186,206
Per Capita 1990 Taxable Assessed Valuation-$25,378.93
Per Capita General Purpose Funded Debt -$228.11
Area-104 Square Miles
(l) Article 1066f, VTCA, permits the 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 tax abatement relief 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. 1. Appraised value of the property is $5,263,952 and the taxable value of
the property after abatement is $229,279 resulting in an abated value of $5,034,673.
(2) The City participates in a tax increment district ("TID"} pursuant to Article 1066e, VTCS. State law
provides that the base of such tax increment districts is to be frozen at the level of the taxable values for
such district as of January 1 of the year following creation. The TID was created in December, 1986, and
covers an approximately .71 square mile area which includes part of the central business district, the
Overton addition and the Broadway corridor of the City of Lubbock. Taxes relating to the growth of the
tax increment district's tax base above the frozen base may be used only to finance improvements within
the TID. The tax base of the TID as of January 1, 1987, was $91,919,040; the 1990 assessed valuation is
$92,900,352, resulting in an increment of $981,312.
(3} The statement of indebtedness does not include outstanding $39,005,000 Electric Light and Power
System Revenue Bonds or $7,500,000 Electric Light and Power System Revenue Bonds selling April 25,
1991, as these bonds are payable solely from the net revenues derived from the System. The statement
also does not include outstanding $710,000 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.
A-7
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(4) On April 2.5, 1991, the City will offer for sale:
$ 2,000,000 General Obligation Bonds, Series 1991 (the "General Obligation Bonds");
$16,120,000 Combination Tax and Waterworks System Subordinate Lien Revenue Certificates of
Obligation, Series 1991 (the "Waterworks Certificates");
$ 1,14.5,000 Combination Tax and Solid Waste Disposal System Revenue Certificates of Obligation,
Series 1991 (the "Solid Waste Certificates"); ·
$ 4,0.30,000 Combination Tax and Exhibition Hall/Auditorium (Limited Pledge) Revenue Certificates
of Obligation, Series 1991 (the 11Exhibition Hall/Auditorium Certificates"); and
$ 1,08.5,000 Public Property Finance Contractual Obligations, Taxable Series 1991 (the "Contractual
Obligations").
(.5) See "Computation of Self-Supporting Debt''.
A-8
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I
\D
Taxable Assessed Valuations by Category
Taxable Appraised Value For Fiscal Year Ended September 30,
1991 1990 1989
Category
Real, Residential, Single-Family
Real, Residential, Multi-Family
Real, Vacant Lots/Tracts
Real, Acreage (Land Only)
Real, Farm and Ranch Improvements
Real, Commercial and industrial
Real, 011, Gas and Other Mineral Reserves
Real and Tangible Personal, Utilities
Tangible Personal, Commercial and Industrial
Tangible Personal, Other
Real Property, Inventory (1)
Total Appraised Value Before Exemptions
Less: Total Exemptions/Reductions
Net Taxable Assessed Valuation
Amount
$2,413,925' 206
313,170,381
117,839,348
52,453,590.
13,508,943
1,076,715,771
22,182,456
153,608,032
745,511,197
6,360,698
15,746,173
$4,931,021,795
205 313 581
$4,725>08:214
%of
Total
48.95%
6.35%
2.39%
1.06%
0.27%
21.84%
0.45%
3.12%
15.12%
0.13%
0.32%
100.00%
Amount
$2,383,736,852
319,554,804
114,489,842
49,704,917
21,391,576
1,063,031,842
17,009,395
153,052,116
696,846,104
9,805,356
19,736,977
$4,848,359,781
202 445 071
$4,645:914:710
%of
Total
49.17%
6.59%
2.36%
1.02%
0.44%
21.93%
0.35%
3.16%
14.37%
0.20%
0.41%
100.00%
Amount
$2,346,063,915
331,959,071
100,449,123
68,423,836
15,765,945
1,024,709,193
13,059,266
1117,145,068
680,408,987
12,548,767
18,277,912
$4,758,811,083
. 191,423,346
$4,567,387,737
Taxable Appraised Value For Fiscal Year Ended September 30,
Category
Real, Residential, Single-Family
Real, Residential, Multi-Family
Real, Vacant Lots/Tracts
Real, Acreage (Land Only)
Real, Farm and Ranch Improvements
Real, Commercial and Industrial
Real, Oil, Gas and Other Mineral Reserves
Real and Tangible Personal, Utilities
Tangible Personal, Commercial and Industrial
Tangible Personal, Other
Real Property, Inventory (1)
Total Appraised Value Before Exemptions
Less: Total Exemptions/Reductions
Net Taxable Assessed Valuation
1988 1987
Amount
$2,311,452,929
349,669,150
104,432,370
63,791,046
18,862,566
1,008,946,758
9,096,810
137,318,274
638,050,142
19,785,495
-0-
$4,661,405,540
184,833,272
$4,476,572,268
%of
Total
49.59%
7.50%
2.24%
1.37%
0.40%
21.64%
0.20%
2.95%
13.69%
0.42%
0.00%
100.00%
Amount
$2,276,202,090
363,811,180
94,789,630
72,565,374
16,309,030
1,012,045,109
7,340,010
131,044,689
592,190,179
20,754,776
-0-
$4,587,052,067
178,726,668
$4,408,325,399
. %of
Total
49.62%
7.93%
2.07%
1.58%
0.36%
22.06%
0.16%
2.86%
12.91%
0.45%
0.00%
100.00%
%of
Total
49.30%
6.98%
2.11%
1.44%
0.33%
21.54%
0.27%
3.09%
14.30%
0.26%
0.38%
100.00%
(1) Residential inventory properties in the hands of developers or builders; each group of properties in this category is appraised on the basis of its
value as a whole as a sale to another developer or builder. This category initiated in 1988.
Note: Basis of assessment for all years is 100% of appraised (market) value. Taxable properties are revalued each year.
-·
-
·--
-
-
.-
Valuation and Funded Debt History
Ratio
General General
Purpose Purpose
Funded Funded General
Fiscal Taxable Tax Debt Debt to Purpose
Year Taxable Assessed Outstanding Taxable Funded
Ended Estimated Assessed Valuation at End Assessed Debt
9-30 Poeulation Valuation (1) Per Caeita of Year (3 Valuation Per Caeita
"19i'2 178,282 $2,682,330,673 $1.5,045 36,177,778 1.3596 $203
1983 181,500 3,224,288,000 17,765 46,653,756 1.4596 257
1984 182,103 3,233,722,496 17,7.58 47,257,744 1.4696 260
1985 187,629 3,764,763,644 20,065 43,320,601 1.1596 231
1986 188,283 4,012,901,338 21,313 39,848,682 0.9996 212
1987 188,694 4,408,325,399 23,362 37,540,011 0.8596 199
1988 190,017 4,476,572,268 23,558 39,670,291 0.8996 209
1989 191,403 4,567,387,737 23,863 43,066,998 0.9496 225
1990 186,206 (2) 4,645,914,710 24,950 39' 179,106 0.8496 210
1991 186,206 (2) 4,725,708,214 25,379 42,474,916 (4) 0.9096 228
(1) Basis of assessment for all years 10096 of market value. Since 1982 aU taxable property has been
revalued each year.
(2) 1990 U.S. Census population.
(3) Funded Tax Debt less Self-Supporting Funded Tax Debt. Derivation of General Purpose Funded Tax
Debt is:
General
Purpose
Funded Funded
Fiscal Tax Debt Less: Tax Debt
Year Outstanding Self-Supporting Outstanding
Ending at End Funded Tax at End
9-30 of Year Debt of Year "19i'2 $67,900,000 $31,722,222 $36,177,778
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 39,848,682
1987 78,279,070 40,739,059 37,540,011
1988 82,958,752 43,288,461 39,670,291
1989 86,898,7.52 43,831,754 43,066,998
1990 79,088,752 39,909,646 39,179,106
1991 (4) 95,783,752 53,308,836 42,474,916
Note: For all years Self-Supporting Debt includes Waterworks System and Sewer System General
Obligation Debt. 1988-1991 includes Golf Course General Obligation debt. 1991 includes Solid Waste
Disposal System General Obligation Debt (see "Valuation, Exemptions and Debt Obligations").
(4) Anticipated; includes the General Obligation Bonds, the Waterworks Certificates, the Solid Waste
Certificates, the Exhibition Hall/ Auditorium Certificates and the Contractual Obligations, all selling
April 25, 1991.
Tax Rate, Levy and Collection History
Fiscal
Year Distribution
Ended Tax General Board of City Interest and 96 Current
9-30 Rate Fund Develoement Sinking Fund Tax Lev~ (1) Collections
"19i'2 $0.66 $0.3225 $0.05 S0.2875 $17,703,382 95.5596
1983 0.61 0.2791 0.05 0.2809 19,168,157 93.0596
1984 0.61 0.2230 0.05 0.3370 19,725,707 95.32%
1985 0.61 0.2105 0.05 0.3495 22,965,058 93.7796
1986 0.60 0.2553 0.05 0.2947 24,077,408 94.16%
1987 0.60 0.2762 0.05 0.2738 26,449,952 95.7496
1988 0.61 0.2767 0.05 0.2833 27,307,091 95.9396
1989 0.64 0.3171 0.05 0.2729 29,231,282 96.0196
1990 0.64 0.3314 0.05 0.2586 29,733,854 96.1596
1991 0.64 0.3768 o.oo 0.2632 30,244,533 94.1096 (2)
(1) Fiscal years 9-30-82 through 9-30-90 have been corrected for errors and adjustments.
(2) Collections for part year only, through 2-28-1991.
A-10
96 Total
Collections
98.9796
97.4196
97.9496
95.9396
96.60%
98.8496
98.9496
98.9896
99.1096
95.4896 (2)
Property within the City is assessed as of January 1 of each year (except for business inventory which
may, at the option of the taxpayer, be assessed as of September 1); taxes become due October 1 of the
same year, and become delinquent on February 1 of the following year. Split payments are not permitted.
QiS(;ounts are not allowed. Taxpayers 65 ·years old or older are permitted by State law to pay taxes on
homesteads in four installments with the first due on February 1 of each year and the final installment
due on August 1.
Charges for penalty and interest on the unpaid balance of delinquent taxes are made as follows:
Month Penalt>,: Interest Total
February 6% 1% 7'%""
March 7% 2% 9%
April &% 3% 11%
May 9% 4% 13%
June 10% 5% 1.5%
July 12% 6% 18%
After July penalty remains at 12%, and interest increases at the rate of 1% each month. In addition, if an
account is delinquent in July, a 1.5% attorney's collection fee is added to 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
Purr's Incorporated
Plains Co-op 011 Mill
Farmers Co-op Compress
First National Bank at Lubbock
Fleming Companies, Inc.
Sentry Savings Association (1)
Nature of Property
Electronics Manufacturer ·
Regional Shopping Mall
Telephone Utility
Electric Utility
Retail Groceries
Agricultural Processing
Cotton Compress
Bank
Wholesale Groceries
Savings and Loan; Residential/
Commercial Properties
(1) Now Consolidated Federal Savings Bank.
Tax Rate Limitation
1990 %of Total
Taxable Taxable
Assessed Assessed
Valuation Valuation s 89,851,906 1.90%
71,320,087 1.51%
71,004,114 1 • .50%
39,&83,026 0.84%
36,828,694 0.78%
23, 18.5,122 0.49%
20,106,438 0.43%
19,.57.5,019 0.43%
17,269,140 0.37%
1615771249 0.3.5%
$405;600,79.5 8.58%
All taxable property within the City is subject to the assessment, levy and collection by the City of a
continuing, direct annual ad valorem tax sufficient to provide for the payment of principal of and interest
on all ad valorem tax debt within the limits prescribed by Jaw. Article XI, Section .5, of the Texas
Constitution is applicable to the City, and limits its maximum ad valorem tax rate to $2 • .50 per $100
Assessed Valuation for all City purposes. The City operates under a Home Rule Charter which adopts the
constitutional provisions. ·
By each September 1 or as soon thereafter as practicable, the City Council adopts a tax rate per $100
taxable value for the current year. The tax rate consists of two components: (1) a rate for funding of
maintenance and operation expenditures, and (2) a rate for debt service.
Under the Tax Code:
The City must annually calculate and publicize its "effective tax rate" and "rollback tax rate". The City
Council may not a9opt a tax rate that exceeds the lower of the rollback tax rate or 103% of the effective
tax rate until it has held a public hearing on the proposed increase following notice to the taxpayers and
otherwise.complied with the Tax Code. If the adopted tax rate exceeds the rollback tax rate the qualified
voters of the City by petition may require that an election be held to determine whether or not to reduce
the tax rate adopted for the current year to the rollback tax rate.
"Effective tax rate" means the rate that will produce last year's total tax levy (adjusted) from this year's
total taxable values (adjusted). "Adjusted" means lost values are not included in the calculation of last
year's taxes and new values are not included in this year's taxable values.
"Rollback tax rate" means the rate that will produce last year's maintenance and operation tax levy
(adjusted) from this year's values (adjusted) multiplied by 1.08 plus a rate that will produce this year's debt
service from this year's values (unadjusted) divided by the anticipated tax collection rate.
Reference is made to the Tax Code for definitive requirements for the levy and collection of ad valorem
taxes and the calculation of the various defined tax rates.
A-ll
-
-
Assessed Valuations, Tax Rates, Outstanding Debt and Authorized But Unissued Bonds of Overlapping
Taxing Jurisdictions
1990 Outstanding Authorized
Taxable 19~ Tax Supported But Unissued
Assessed Tax Debt As of Debt As of
Taxing Jurisdiction Valuation Rate 2-1.5-91 2-1.5-91
Lubbock Independent School District $4,339,186,138 $1.20000 s 49,024,989 $1.5,600,000
Lubbock County .. .5,6.59,377,32.5 0.17630 6,47.5,000 -0-
Lubbock County Hospital District .5,6.50,201,098 0.109.50 -0--:-0-
High Plains Underground Water
Conservation District No. 1 .5,6.50,201,098 0.00720 -0--0-
Lubbock-Cooper Independent School District 1.50,718,978 1.19000 .5,310,000 -0-
Frenship Independent School District 414,082,26.5 0.90000 27,4.5.5,000 -0-
Roosevelt Independent School District 104,484,821 1.03.500 -0--0-
Idalou Independent School District 11.5,444,48.5 0.88680 966,000 -0-
New Deal Independent School District 81,471,.533 . 0.9.5229 -0--0-
Sources: Lubbock Central Appraisal District and "Texas Municipal Reports" published by the Municipal
Advisory Council of Texas.
Estimated Direct and Overlapping Funded Debt Payable From Ad Valorem Taxes (As of 2-U-1991)
Expenditures of the various taxing bodies within the territory of the City are paid out of ad valorem taxes
levied by these taxing bodies on properties within the City. These political taxing bodies are independent
of the City and may incur borrowings to finance their expenditures. The following statement of direct
and estimated overlapping ad valorem tax bonds was developed from information contained in "Texas
Municipal Reports" published by the Municipal Advisory Council of Texas and from data furnished by the
Lubbock Central Appraisal District. Except for the amounts relating to the City, the City has not
independently verified the accuracy or completeness of such information, and no person should rely upon
such information as being accurate or complete. Furthermore, certain of the entities listed below may
have issued additional bonds since 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
determined. The following table reflects the estimated share of overlapping funded debt of these various
taxing bodies.
Taxing Jurisdiction
City of Lubbock
Lubbock Independent School District
Lubbock County
Lubbock County Hospital District
Lubbock-Cooper Independent School District
Frenship Independent School District
Roosevelt Independent. School District
New Deal Independent School District
Idalou Independent School District
Total Direct and Overlapping Funded Debt
Estimated
Total 96
Funded Debt Applicable
$42,474,916 (1) 100.0096
49,024,989 98.19%
6,47.5,000 (2) 86 • .5.596
-0-86.6996
.5,310,000 14.1796
27,4.5.5,000 63.2996
-0-4.67%
-0-0.0296
966,000 0.7.596
Overlapping
Funded Debt s 42,474,916
48,137,637
.5,604,113
-0-
7.52,427
17,376,270
-0-
-0-
7,24.5
$114,3.52,608
Ratio of Direct and Overlapping Funded Debt to Taxable Assessed Valuation -----------------2.4296
Per Capita Overlapping Funded Debt ---------------------------------------------------$614.12
(1) General purpose funded debt.
(2) Includes a preliminary amount of $4,000,000 Certificates of Obligation to be sold on May 28, 1991
(sale date tentative), to finance the construction of a community correctional facility and to provide
partial funding for courthouse remodeling and improvements.
Interest and Sinking Fund Budget Protection
General Obligation Debt Service Requirements for Fiscal Year Ending 9-30-91 -----------$13,204,770
Plus: Fiscal Agent, Tax Collection and Other Fees---------------------------------.. --139,602
$13,344,372
Sources of Funds:
Interest and Sinking Fund, All General Obligation Issues, 9-30-90 ---------
1990 Interest and Sinking Fund Tax Levy at 98% Collection --------------
Estimated Interest .Earned and Transfers From Other
City Funds, as budgeted ----"------------------------·--·-----------
s 639,.570
12,174,920
667,01.5 13,481,.50.5
Estimated Balance at 9-30-91 -----------------------------------------------------$ 137.133
A-12
Computation of Self-Supporting Debt
Net System Revenue Available
Less: Revenue Bond Requirements
Balance Available for Other Purposes
Waterworks System (1)
System General Obligation Debt Requirements
Balance
Percentage of System General Obligation Debt Self-Supporting
Fiscal Year
Ended
9-30-89
$8,878,899 -o-
$8,878,899
415851.5.53
~41293 1 346
100%
Fiscal Year
Ended
9-30-90
$12,848,112
-0-
$12,848,112
41.562 1964
~ 8128.5 1148
100%
(1) It is the City's policy each Fiscal Year to transfer from Water Enterprise Fund surplus to the General
Fund an amount at least equivalent to debt service requirements on Waterworks System General
Obligation Bonds. The City has no outstanding revenue bonds payable from a lien on the net revenues of
the Waterworks System.
Debt service requirements on the $16,120,000 Waterworks Certificates will be provided by direct deposit
into the Waterworks Certificates Interest and Sinking Fund from Water Enterprise Fund net revenue.
In Fiscal Year Ended 9-30-83 the City Council established a "Rate Stabilization Fund" within the Water
Enterprise Fund to be accumulated from System net revenues. At 9-30-90 the balance in the rate
stabilization account was $4,993,0.58.
Net System Revenue Available
Less: Revenue Bond Requirements
Balance Available for Other Purposes
Sewer System (1)
System General Obligation Debt Requirements
Balance
Percentage of System General Obligation Debt Self-Supporting
Fiscal Year
Ended
9-30-89
$4,972,.520
-0-
$4,972,.520
2 047 830
$2:924:690
100.00%
, Fiscal Year
Ended
9-30-90
$6,280,.56.5
-0-
$6,280,.56.5
2 311 728
$3:968:837
100.00%
(!) It is the City's policy each Fiscal Year to transfer from Sewer Revenue Fund surplus to the General
Fund an amount at least equivalent to debt service requirements on Sewer System General Obligation
debt; and this policy will continue for outstanding Sewer System General Obligation Debt. The City has
no outstanding revenue bonds payable from a lien on the net revenues of the Sewer System.
In Fiscal Year Ended 9-30-90 the City Council establlshed a "Rate Stabilization Fund" within the Sewer
Enterprise Fund to be accumulated from System net revenues, At 9-30-90 the balance in the rate
stabilization account was $933,489.
Solid Waste Disposal System (1)
Fiscal Fiscal
Year Year
Ended Ended
9-30-89 9-30-90
Net System Revenue Available $ 823,680 $1,448,149
. Less: Revenue Bond Requirements -0--0-
. Balance A vai1able for Other Purposes $ 823,680 $1,448,149
System General Obligation Debt Requirements -0--0-
Balance $ 823,680 $1,448,149
Percentage of System General Obligation Debt Self-Supporting N.A. N.A.
(1) It is the City's intention to transfer each year from Solid Waste Enterprise Fund to the General Fund
an amount at least equivalent to debt service requirements on Solid Waste Disposal System General
Obligation debt, currently anticipated to be the $1,14.5,000 Solid Waste Certificates. Although there has
been no Solid Waste Disposal System General Obligation debt, estimated maximum ann!Jal debt service of
$1.58,088 (1992) on the Solid Waste Certificates would have historically been self-supported.
A-13
/"
-
-
-
-
-
-
Net System Revenue Available
Less: Revenue Bond Requirements
Balance Available for Other Purposes
Golf Course Facilities (I)
System General Obligation Debt Requirements
Balance
Percentage of System General Obligation Debt Self-Supporting
Fiscal
Year
Ending
9-30-89 s 73,611
-0-
$ 73,611
861.566
~(12 1 9.5.5)
8.5.03%
Fiscal
Fiscal Year
Year Ending
Ending 9-30-91
9-30-90 (Budget) s 8,980 $183,362
-0--0-
$ 8,980 $183,362
8.51093 87 1167
~(761 113) ~ 96 119.5
10 • .5.5% 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
General Obligation debt. This transfer was made in Fiscal Year Ended 9-30-89 in the amount of $91,906;
golf course facilities general obligation debt service was $86,.566. This transfer was made in Fiscal Year
Ended 9-30-90 in the amount of $8.5,602; gotf course facilities general obligation debt service was $8.5,093.
The City has no outstanding revenue bonds payable from a lien on the net revenues of the Golf Course
Facilities. A subordinate lien on Net Revenues is held by outstanding Combination Tax and Golf Course
Revenue Certificates of Obligation, Series 1988; debt service on this issue is included in "Golf Course
Facilities General Obligation Requirements" in the schedule of Debt Service Requirements.
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 service requirements in
Fiscal Years Ended 9-30-89 and 9-30-90.
An increase in green fees and other charges was effective 10-1-90. Recent improvements are expected to
enhance use of the golf course. Operating revenues for Fiscal Year Ending 9-30-1991 are budgeted to
increase 10.73% above those for Fiscal Year Ended 9-30-1990. Budgeted Net Revenues are projected to
fully provide for debt service.
As a result of the transfers to the General Fund that were made in Fiscal Years Ended 9-30-89 and
9-30-90 and budgeted Net Revenues and the debt service transfer that will be made in Fiscal Year Ending
9-30-91, Golf Course Facilities General Obligation Debt is treated as fully self-supporting.
Authorized General Obligation Bonds
Purpose
Waterworks System
Waterworks System
Sewer System
Sewer System
Street Improvements
Date
Authorized
11-21-81
10-17-87
.5-21-77
10-17-87
10-17-87
Amount
Authorized
$ .5,226,000
2,810,000
3,303,000
2,.53.5,000
13 127.5,000
$27,149,000
A-14
Amount
Heretofore
Issued
$ 5,000,000
200,000
2,17.5,000
2,.535,000
71227,000
$17,137,000
Amount
Being
Issued
4-2.5-1991
$ -0-
-0-
-0-
-0-
2,000,000
$2,000,000
Unissued
Balance $ 226,000
2,610,000
1,128,000
-0-
4z048z000
$8,012,000
Anticipated Issuance of Authorized General Obligation Bonds and 01her Obligations
1992
Citizens Advisory Committee
Waterworks System
Sewer System
Street Improvements
$2,836,000
1,128,000
4 048 000
$8:012:ooo
A City Council appointed Citizens Advisory Committee is studying a three year (1992-1994) capital
improvements program and will report to the City Council in late Spring, 1991. The City anticipates that
an election for the authorization of bonds for various purposes will be held in the Fall, 1991.
State Revolving Fund ("SRF") Loan Program
As explained in ''The Sewer System" under "Wastewater Treatment and Disposal Improvement and
Expansion Project", below, the City applied In March, 1991, to the Texas Water Development Board
("TWDB'') for loans under the State SRF program for wastewater treatment and disposal improvements.
The loan application anticipates that the City will issue three separate series of Combination Tax and
Sewer System Subordinate Lien Revenue Certificates of Obligation ("Certificates") to evidence the loans
as follows:
Project
A
B c
Estimated
Amount
$ 1,655,000
39,125,000
9,820,000
$50,600,000
Certificate
Series
1991
1992
1993
Estimated
Loan Closing
Date
November, 1991
June, 1992
June, 1993
Anticipated
Completion
Date
May, 1993
July, 1994
May, 1995
Certificates of each Series will be delivered to the TWDB monthly as work progresses through completion
of the Project for which the Certificates are authorized.
The City anticipates that the TWDB will hear its application in Aprll, 1991, and believes the TWDB will
gr.ant these loan commitments, The TWDB has indicated that the interest rate on the Series 1991
Certificates will be 5.50%; interest rates on Series 1992 and Series 1993 will be set later by the TWDB.
Principal of each series of Certificates will mature in an approximately equal amount each year for a 20-
year period beginning within one year after Project completion.
Debt service requirements on these Certificates will be paid from net revenues of the Sewer System and
the Certificates will be self-supporting.
FWlded Debt Limitation
There is no direct debt limitation in the City Charter or under State Law. The City operates under a
Home Rule Charter that limits the maximum tax rate, for all City purposes, to $2.50 per $100 Assessed·
Valuation. Administratively, the Attorney General of the State of Texas wUl permit allocation of $1.50 of
the $2.50 maximum tax rate for general obligation debt service.
A-15
I"
,..,
,....,
':"·
-
-
...
Other Obligations
(1) The City has entered into lease agreements for the purpose of acquiring certain properties and
equipment. As of February 1 ;, 1991, capital leases were as follows:
Balance
Parable From 1991 1992 1993 1994 199.5 1996 Interest Outstanding
General Government
Telephone
Equipment ~ 381021 ~ 6.5 1177 ~ 6.5 1 177 ~ 6.5 1 177 ~21 1 726 ~ -0-~(38 1 .548) ~ 2161 730
Entererise Fund
Sewer-Sprinkler
Equipment $ 3,498 $ 3,998 $ -0-$ -0-$ -0-$ -0-$ (303) $ 7' 193
Golf-Golf
Equipment 33,788 16,894 -0--0--0--0-(2,915) 47,767
Solid Waste-
Scraper 391019 661890 661890 661890 661890 11 1 148 (.52 1027) 26.51700
Total Enterprise$ 76130.5 ~ 871782 ~ 661890 ~ 661890 ~66 1 890 ~11 1 148 ~(.5.5 1 245) ~ 320 1660
Combined
Requirements $114,326 $1.52,959 $132,067 $132,067 $88,616 $11 J 148 $(93,793) $ 537,390
(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 years 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 .5.5,000 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 4.50 vehicles.
Budget for the project was $3,600,000:
Acquisition of Sears building/site
Purchase of additional property
Renovation of .5.5,000 square feet
Contingencies and other costs
Total Cost
$ 7.51,000
302,925
2,201,849
344,226
$3,600,000
Shown below is the "Sears Building Finance Schedule", which was prepared by the City of Lubbock.
Salient elements of the City's agreement with "American" and the "Finance Schedule" includes:
(l) 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
1-15-1991. $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, 1-1.5-94, $2,917,818.
(3) Additional Site Ac uisition. 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 $1.59,000 and
combined payments on the 3 notes are demonstrated.
(4) Escrow Deeosits. 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.
(5) 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 Balance. The Escrow Balance 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 ~ccount" in amounts that, with interest earned, will exceed the outstanding Advance Balance
throughout the life of the agreement •
A-16
Sears Building
Finance Schedule
Additional Escrow Minimum
Advance Total Site Escrow Interest Escrow
Year Month Balance Par:ment Acguisition De2osits Earnings Balance
1982-83
10-15 $ 751 ,ooo $159,000 $1,073,000 $ 914,000
1-15 751,000 $ 23,938 5,331 $ 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 5,331 475,000 43,361 1,860,719
1983-84
10-15 2,251,000 55,813 5,331 525,000 58,147 2,382,723
1-15 2,824,001 93,750 5,331 575,000 74,460 2,933,102
4-15 2,820,266 93,750 5,331 91,659 2,925,680
7-15 2,816,412 93,750 5,331 91,428 2,918,027
1984-8.5
10-15 2,812,435 93,7.50 .5,331 91,188 2, 910,134
1-1.5 2,903,331 93,750 5,331 125,000 90,942 3,026,995
4-1.5 2,902,125 93,7.50 5,331 94,.594 3,022,507
7-15 2,900,880 93,750 .5,331 94,453 3,017,880
198.5-86
10-1.5 2,899,.596 93,7.50 .5,331 94,309 3,013,108
1-15 2,898,270 93,750 5,331 94,160 3,008,186
4-1.5 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 2,894,03.5 93,7.50 .5,331 93,684 2,992,480
1-15 2,892,.532 93,7.50 .5,331 93,51.5 2,986,914
4-1.5 2,890,982 93,7.50 5,331 93,341 2,981,174
7-1.5 2,889,382 93,7.50 .5,331 93,162 2,975,2.5.5
1987-88
10-15 2,887,731 93,750 .5,331 92,977 2,969,1.50
1-1.5 2,886,027 93,7.50 5,331 92,786 2,962,85.5
4-1.5 2,884,270 93,7.50 .5,331 92,589 2,9.56,363
7-15 2,882,456 93,7.50 .5,331 92,386 2,949,669
1988-89
10-1.5 2,880,.584 93,750 .5,331 40,000 92,177 2,982,76.5
1-1.5 2,878,6.53 93,7.50 .5,331 93,211 2,976,89.5
4-1.5 2,876,660 93,7.50 .5,331 93,028 2,970,842
7-1.5 2,874,603 93,7.50 .5,331 92,839 2,964,600
1989-90
10-1.5 2,872,481 93,7.50 5,331 92,644 2,9.58, 163
1-1.5 2,870,291 93,7.50 .5,331 92,443 2,9.51,52.5
4-15 2,868,032 93,750 .5,331 92,23.5 2,944,679
7-1.5 2,86.5,700 93,7.50 5,331 92,021 2,937,619
1990-91
10-15 2,863,29.5 93,750 .5,331 91,801 2,930,339
1-1.5 2,860,812 93,7.50 .5,331 91,573 2,922,831
4-15 2,8.58,2.51 93,750 .5,331 91,338 2,91.5,088
7-1.5 2,85.5,607 93,7.50 .5,331 91,097 2,907,104
1991-92
10-15 2,8.52,880 93,7.50 5,331 90,847 2,898,870
1-1.5 2,8.50,065 93,750 .5,331 90,590 2,890,378
4-1.5 2,847,161 93,7.50 .5,331 90,324 2,881,622
7-1.5 2,844,164 93,7.50 5,331 90,051 2,872,.591
1992-93
10-15 2,841,072 93,7.50 4,637 89,768 2,863,973
1-1.5 2,837,881 93,7.50 670 89,499 2,859,052
4-1.5 . 2,834,.589 93,7.50 670 89,34.5 2,8.53,977
7-1.5 2,831,191 93,7.50 670 89,187 2,848,744
1993-94
10-15 2,827,686 93,750 670 89,023 2,843,347
1-1.5 2,827,686 2 917 818 670 88 8.5.5 13,714 ~6:811 :383 ~374 1 896 ~3 1288 1 000 ~31911:993
A-17
Pension Fund
Texas Municipal Retirement System o • o 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 trustees appointed by the
Governor of T~xas. The System operates independently of its member cities. ·
The City of Lubbock joined the System in 19.50 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, .20 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 696 of gross salary. The City's contribution rate is
calculated each year using actuarial techniques applied to experience. The 1991 contribution rate is
11.3196. Enabling statutes prohibit any member city from adopting options which impose liabilities that
cannot be amortized over 2.5 years within a specified statutory rate.
On December 31, 1989, assets held by the System, not including those of the Supplemental Disability
Benefits Fund which Is "pooled", for the City of Lubbock were $.59,31j.013.5.5. Unfunded accrued liabilities
on December 31, 1989, were $17,302,189, which is being amortized over the period 1989 through
2012. Total contributions by the City to the System in Fiscal Year Ending 9-30-90 were $3,31j.8,997.
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 firemen, by vote of the department, in 19/j.l. 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 firemen are determined on a "formula" or a "final salary" plan. Actuarial reviews are
performed every three years, and the fund is audited annually. Firemen contribute 1196 of full salary into
the fund and the City must contribute a like amount; however, the City contributes on a basis of the
percentage of salary which is a ratio adjusted annually that bears the same relationship to the firemen's
contribution rate that the City's rate paid into the Texas Municipal Retirement System and FlCA bears to
the rate other employees pay into the Texas Municipal Retirement System and FlCA. The City's present
contribution rate is 11j..l396.
As of December 31, 1989, unfunded liabilities were $9,803103.5, and are being amortized over a 27 year
period beginning October, 1989.
The City contributed $1,139,21/j. to the Fund during Fiscal Year ended 9-30-90.
* Sources: Texas Municipal Retirement System, Comprehensive Annual Financial Report for Year Ended
December 31, 1989.
City of Lubbock, Texas.
A-18
General Fund Revenues and Expenditures
Budget Fiscal Years Ended ·.
Revenues 1990/91 9-30-90 9-30-89 9-30-88 9-30-87 9-30-86
Ad Valorem Taxes $16,039,069 $14,911,38.5 $14,329,641 $12,.538,368 $12,044,707 $10,.5.54,7.50
Sales Taxes 1.5,.598,330 1.5,.530,468 1.5,0.59,072 13,960,077 12,.563,90.5 12,9.53,236
Franchise Taxes 3,.529,.528 3,377,870 3,077,372 3,108,228 3, Ill ,362 2,970,720
Miscellaneous Taxes 686,736 712,203 629,320 669,292 646,777 474,172
Licenses and PermHs 611 '718 719,979 613,668 .579,369 628,144 98.5,118
Intergovernmental 1,497,366 1,.511,791 1,179,271 1,124,237 1,104,.58.5 1,132,721
Charges for Services 2,209,26.5 2,243,428 2,091,277 2,0.58,402 1,88.5,4.50 2,297,414
Fines and Forfeits 2,92.5,.500 2,489,471 2,36.5,787 2,063,207 1,.581,702 1,946,281
Miscellaneous 3,236,788 3,222,731 3,802,560 2,694,897 2,836,814 2,946,18.5
Transfer from Other Funds and
Other Financing Sources 141241 1.546 13 117.513.52 1211731i42 1213191367 12 1308 194.5 10 13.54 1498
Total Revenues and Transfers (From) $60,.57.5,846 $.57,894,678 $.5.5 ,321 '110 $.51:,11.5,444 $48,712,391 $46,61.5,09.5
)o
Expenditures -General Government $ 2,.532,772 $ 3,0.56,633 $ 2,433,374 $ 2,0.56,09.5 $ 2,444,6.59 s 2,308,491 \D
Financial Services 1,871,693 1,81.5,.589 1 ,7.51 ,968 1,671,7.52 1,.507,961 1,487,064 .
Management Services 2,387,917 2,.500,229 2,113,72.5 2,202' 132 2,031,032 2,264,031
Development Services 6,444,038 .5,831,381 . .5,.522,932 .5,312,624 .5,282,9.56 6,019,109
Public Safety and Services 43,623,309 39,968,471 37,432,994 34,111,128 33,088,839 32,6.59,988
Non-Departmental -0-26.5,108 16,761 .52,602 38,438 231,731
Transfer to Other Funds 311731844 31720 1260 .5 1941 1416 418091466 314021.501 21039 1289
Total Expenditures and Transfers (To) ~60 1 033 1 .573 ~57 z 1.571671 ~.5.5 1213 1 170 ~.50121.5 1799 ~471 7961 386 ~47 1 009 1 703
Excess of Revenues and Transfers (From)
Over Expenditures (To) $ .542,273 $ 737,007 s 107,940 s 899,64.5 s 916,00.5 s (394,608)
Adjustments -0--0-292,.597 -0--0'-2.5,.530
Fund Balance at Beginning of Year 91343 1076 81606 1069 8120.5 1.532 7130.5 1887 613891882 617.58 1960
Fund Balance at End of Year $ 9,88.5,349 $ 9,343,076 $ 8,606,069 $ 8,20.5,.532 $ 7,30.5,887 s 6,389,882
Less: Reserves and Designations N.A. (1 1945 1213) 0 1694 180.5) (118291358) 0 1381 1.549) (1 1494 1300)
Undesignated Fund Balance N.A. $ 7,397,863 $ 6,911,264 $ 6,376,174 $ 5,924,338 $ 4,89.5,582
-
Municipal Sales Tax History
The City has adopted the Municipal Sales and Use Tax Act, VTCA, Tax Code, Chapter 321, which
grants the City the power to impose and levy a 1% Local Sales and Use Tax within the City, the proceeds
are credited to the General Fund and are not pledged to the payment of the Bonds. Collections and
enforcements are effected through the offices of the Comptroller of Public Accounts, State of Texas,
who remits the proceeds of the tax, after deduction of a 2% service fee, to the City monthly. Revenue
from this source, for the years shown, has been:
Fiscal
Year %of Equivalent of
Ended Total Ad Valorem Ad Valorem
9-30 Collected Tax Leyy Tax Rate
1'981 $ 9,791,.566 .58.69% $0.646
1982 10,939,663 61.79% 0.408
1983 11 ,3.5.5,.581 .59.17% 0.361
1984 12,480,746 63.27% 0.386
198.5 13,310,10.5 .57. 9.5% 0.341
1986 12,9.53,236 .53.80% 0.323
1987 12,.563,90.5 47 • .50% 0.28.5
1988 13,960,077 .51.14% 0.312
1989 1.5,0.59,072 .51 • .52% 0.330
1990 1.5,.530,468 .52.23% 0.334
* Based on estimated (or U.S. Census) population for all years.
Financial Policies
Per
CaEita*
$.5.5.41
61.36
62 • .57
68 • .54
70.94
68.80
66 • ..58
73.47
78.68
83.40
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.
Use of Bond Proceeds, Grants, etc •••• The City's policy is to use bond proceeds, revenue sharing or other
non-recurring revenues for capital expenditures and non-recurring expenses only. Such revenues are not
used to fund normal City operations.
Budgetary Procedures ••• The City follows these procedures in establishing operating budgets.
1) Prior to August 1, the City Manager submits to the City Council a proposed operating budget for
the fiscal year commencing the following October 1. The operating budget includes proposed
expenditures and the means of financing them.
2) Public hearings are conducted to obtain taxpayer comments.
3) Prior to October l, the budget is legally enacted through passage of an ordinance.
4) The City Manager is authorized to transfer budgeted amounts between departments and funds.
Expenditures may not legally exceed budgeted appropriations at the fund level •
.5) Formal budgetary integration is employed as a management control device during the year for
the General, Revenue Sharing, Board of City Development, 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, Revenue Sharing, Board of City Development, Convention and Tourism,
Criminal Investigation, and Capital Projects Funds are adopted on a basis consistent with generally
accepted accounting principles (GAAP). ·
A-20
7) Appropriations for the General Fund and Board of City Development lapse at year end.
Unencumbered balances for the Revenue Sharing and Capital Projects Funds continue as authority
for subsequent period expenditures.
8) Budgetary comparisons are presented for the General Fund, Special Revenue Funds, and Capital
Projects Funds in. the combined financial statement sections of the Comprehensive Annual Flnancial
Report.
Fund Investments ••• The City's investment policy parallels State law which governs investment of public
funds. The City generally restricts .Investments to direct obligations of the United States Government and
insured or·fully collateralized investments.
Insurance ••• Except for Airport liabiHty insurance, the City is self-insured for liability, workers'
compensation, and health benefits coverage. Insurance policies are maintained with large deductibles for
fire and extended coverage and boiler coverage. An Insurance Fund has been establlshed in the Internal
Service Fund to account for insurance programs and budgeted transfers are made to this fund based upon
estimated payments for claim losses. ·
The reserve for self-insurance for health benefits was $1,306,4.59 on 9-30-90. The reserve for self-
insurance for liability and workers' compensation was $2,034,723 on 9-3Q-90.
At 2-1.5-91 the reserves had the following balances:
Reserve for self-insurance-health
Reserve for self-insurance -other than health
A-21
$1,462,276
2,301,239
-
-
The following information concerning the Waterworks System, the Sewer System, the Solid Waste Disposal
System, the Airport System and the Golf Course Facilities is for general information only.
The Waterworks 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, !coated on the
Canadian River about 50 miles north of Amarlllo, to member cities through an underground aqueduct
system. Lubbock is one of eleven member cities of CRMWA; other members are Amarillo, Pampa,
Borger, Plainview, Slaton, Levelland, Brownfield, Tahoka, O'Donnell and Lamesa. Lubbock received
31,160 acre feet of water from CRMWA in Calendar Year 19901 approximately 8096 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 • • • Part of the City's water supply is obtained from 238 potable water wells,
all producing from the Ogallala Acqulfer, which underlies the High Plains of Texas. Combined capacity of
these wells is over 45 mlllion gallons per day. Primary wells are located in the "Sand Hills" area about 60
miles northwest of Lubbock in Lamb and Balley Counties in which the City owns approximately 80,000
acres of water rights; the City has also contracted for the annual purchase of 1,260 acre feet of water
from private sources adjacent to the Sand Hills tract. These ground water sources are used primarily for
peaking purposes.
Lake Alan Henry ••• The Brazos River Authority ("BRA") on behalf of the City of Lubbock (the "City") is
constructing a dam and reservoir on the South Fork of the Double Mountain Fork of the Brazos River
("Lake Alan Henry") about 50 miles southeast of Lubbock to enhance provision of long term water supply
needs. The Texas Water Commission 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 in 1988, show a 60 to 78 percent increase in the City's population by the year 2040. As a result of
population growth, Lubbock's water use in high-use years is expected to increase 51.7 mgd assuming low
population growth.
Although historical population increases have not been as great as the Texas Department of Water
Resources (TDWR) 19&0 population estimates (which projected a 25 percent increase between 1975 and
1990), increased population and decreasing water supplies have required the City to pursue new sources of
supply.
Findings of a 1978 report by Freese and Nichols 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 of 23.3 mgd and an averase 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 better quality than water from Lake
Meredith.
The City has contracted with BRA to construct a dam and water supply reservoir at the Lake Alan Henry
site (the "Project"). 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 contributing drainage area is an estimated 394 square miles.
The Contract further provides for the City to acquire all of the land for the Project, upon which BRA will
be granted an easement to construct and operate the facilities, and to obtain all of the required permits.
All such permits have been obtained. Currently, all land for the construction of the dam and all but less
than 296 of the land to be inundated has been acquired.
Construction bids were received by BRA on December 6, 1990. Estimated cost of the completed Project
is $54,639,000.
BRA has issued $56,65.5,000 Special Facilities (Lake Alan Henry) Revenue Bonds: $16,970,000-Series 1989
and $39,685,000 -Series 1991 to provide funds for construction and establishment of reserve and repair
A-22
and replacement funds. The Special Facilities Revenue Borids are payable from net revenues derived ~rom
the operation and ownership of Lake Alan Henry, including payments to be made under the Contract to
BRA.
Under the Contract Lubbock 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: · '
(i) Capital costs (debt service) payable during such Fiscal Year; plus
(H) Maintenance and Operation Costs as adjusted, which, by the Authority's estimates
made prior to the beginning of such Fiscal Year, will be incurred during such Fiscal
Year; plus
(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 Special Facility
Revenue Bonds, witl be required to transport and treat the water from Lake Alan Henry. Such facilities
are not included in the costs shown above. ·
The System ••• Lubbock's Waterworks System is modern and efficient; property, plant and equipment are
valued at $78,144.418, after depreciation and including' cost of construction work in progress, at
September .30, 1990. 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 mltlion gallons per day.
Storage capacity includes a 1,200 acre-foot open storage reservoir near the water treatment plant, which
permits the storage of surplus water received from the "CRMWA" in off-peak periods. In addition, 14
ground storage reservoirs and 4 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
1986
1987
1988
1989
1990
Average
Daily
Consumption
(mgd)
.31.621
.31. 980
.34.981
.36 • .367
36.408
Maximum
Consumption
Day/Year
(mgd)
65.707
57.007
60.399
69.124
79.003
Water Treatment Facilities ••• The water treatment plant for the treatment of raw water received from
CRMWA has a design capacity of 61.4 mgd and a maximum hydraulic capacity of 75 mgd. The plant has a
1,200 acre-feet open storage reservoir which permits storage of raw water during "off-peak" periods, and
2.0 million gallons ("mg") clearwell storage for treated water. .
The plant also treats CRMWA raw water deliveries for the Cities of Brownfield, Lamesa, Levelland,
O'Donnell, Slaton and Tahoka prior to CRMWA delivery to those cities. Under contractual agreements
with these cities Lubbock is fully reimbursed for all costs of this treatment including capital costs and
debt service; the combined percentage in treatment plant costs by these cities is 20.34%. ·
Note: Lubbock's ground water supply does not require treatment (other than the addition of chlorine)
before introduction into the distribution system.
Water Treatment Plant Improvement Program
The $16,120,000 Waterworks Certificates are being sold to provide ma.jor funding for upgrading and
improving the water treatment plant. Estimated cost of the project is $17,070,000.
Objectives of the program are to (1) enable the plant to comply with the Safe Drinking Water Act of 1986
("SDWA'') and (2) upgrade the plant for safety, maintenance and repair.
A-23
.-
-
Condensed Statement of Operations Waterworks System
Fiscal Year Ended
9-30-90 9-30-89 9-30-88 9-30-87 9-30-86
Operating Revenues $19,668,087 $16,660,193 $1.5,381,.553 $13,713,018 $13,983,284
Non-Operating Revenues 11880194.5 626 1042 978 1.58.5 803.167 11328 1939
Gross Revenues $21,.549,032 $17,286,23.5 $16,360,138 $14,.516,18.5 $1.5,312,223
Operating Expense
(excluding depreciation)(!) 8 700 920 814071336 91494 1108 91863 1218 10 1.548 1979
Net Revenues hz:us: uz ~ 818781899 $ 61866 1030 ~ 416.52 1967 ~ 41763 1244
Water Meters 62,119 62,631 61,628 60,981 60,7.51
(1) Operating expense includes construction repayment costs and operating and maintenance charges paid
to CRMWA and to BRA.
Note: The City currently has no outstanding or authorized Waterworks System Revenue Bonds, however,
the City does have $21,49.5,432 general obligation debt outstanding which was issued for waterworks
system purposes and which is supported by revenues of the System.
Water Rates (Monthly)
First
Next
Next
All Over
Water Consumption
1 , 000 Gallons (Minimum)
49,000 Gallons (per thousand)
200,000 Gallons (per thousand)
2.50,000 Gallons (per thousand)
Present Rates
· Effective
October 11 1990 (1)
$7.31
1 • .53
1.37
1.31
Previous Rates
Effective
October 11 1989 (1)
$6.76
1.28
1.12
1.06
(1) The water rate increase effective October 1, 1989, and the subsequent increase effective October 1,
1990, have been designed to provide increased revenues to provide for debt service on financing for and
maintenance and operation costs of Lake Alan Henry and other projected Waterworks System costs. The
water rate increase effective October 1, 1989, provided estimated increased gross revenues in excess of
$2,000,000 during Fiscal Year Ended September 30, 1990. The subsequent water rate increase effective
October 1, 1990, will provide additional estimated increased gross revenues in excess of $3,000,000 during
Fiscal Year Ended September 30, 1991, or an estimated combined annual increase in excess of $.5,000,000.
The City will provide for debt service on the Waterworks Certificates by direct transfer to the Interest
and Sinking Fund from net revenues of the Waterworks System; the Waterworks Certificates will be self-
supporting. As a result, the City is evaluating the need for a water rate increase effective 10-1-1991 to
provide for this debt service, taking into account reimbursements for 20.34% of debt service that will be
received from the six participating cities and other factors.
Ernst &:: Young are preparing a report containing recommendations as to future water rate structure; .the
final report is expected to be available in late Spring, 1991.
A-24
The Sewer System
The Sewer System is. operated as a separate enterprise '.fund and is not combined with the Waterworks
System.
The Collection System ••• The sanitary sewage collection system, handled separately from the storm
drainage system, includes approximately 750 miles of trunk mains and colJection 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 filter
and activated sludge. The Northwest Plant uses the contract 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.
Wastewater Flows •••
Calendar
Year*
1986
1987
1988
1989
1990
Northwest
Plant
(mgd)
0.367
0.424
0.455
0.389
0.399
Southeast
Water
Reclamation
Plant
(mgd)
17.52
17.36
17.40
18.35.
18.50
* During the period 1986-1990 the recorded combined peak daily flow was 21.55 mgd.
Effluent Disposal ••• Treated effluent is used for beneficial purposes; no effluent is discharged into
streams. 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 5,800 acres owned by the
City, currently being upgraded.
(2) A 3,400 acre privately owned farmland site near Wilson, Texas, approximately 15 miles
southeast of Lubbock. There is storage capacity of 780 million gallons at this site for effluent
pending its use for irrigation.
Southwestern Public Service Company has a contract with the City to use treated effluent from the
Southeast Plant for 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 planning a
comprehensive wastewater treatment and effluent disposal program that wiU 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 treatment capacity to the design year 2010.
Effluent will continue to be disposed of through an enhanced land application system with alternative
effluent discharges to the North Fork Double Mountain Fork, Brazos River, ("NFDMF Brazos River")
below the plant.
A-25
The City plans to fund the Project through loans from the Texas Water Development Board's ("TWDB")
State Water Pollution Control Revolving Fund ("SRF") and applied to the TWDB in March, 1991, for loans
as follows:
SRF
Loan
Year Reguested*
1991 s 1,6.5.5,000
1992 39,125,000
1993 9,820,000
$50,600,000
Project
A.
B
c
. Brief Project Description
Replace effluent pipeline to land
application site with new 36" line
One new activated sludge treatment plant;
discharge pipeline to NFDMF Brazos River;
headworks facilities; solids handling facilities
digester rehabilitation; administration
maintenan.ce building ·
Renovate and upgrade two existing
treatment plants; convert existing
administration building to a laboratory
Estimated
Project
Completion
Date
May, 1992
July, 1994
May, 199.5
* 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" ooder "Anticipated
Issuance of Authorized General Obligation Bonds and Other Obligations").
The City anticipates that the TWDB will hear its application in April, 1991.
Condensed Statement of Operations -Sewer System
Fiscal Year Ended
9-30-1990 9-30-1989 9-30-1988 9-30-1987 9-30-1986
Operating Revenues $ 9,.571,277 $8,518,0.54 $6,070,743 $4,481,683 $3,433,423
Non-Operating Revenues 763 • .549 .5791026 3001024 .520.311 760 1663
Gross Revenues $10,334,826 $9,097,080 $6,370,167 $.5,001,994 $4,194,086
O~rating Exeenses (3) ~ 410541261 ~41 124 1 560 ~4 1 201 1 440 ~3 1 2481 237 ~21085 1 0U
Net Revenues ~ 6.:zaa.~6l ~4*972 1 .520 ~2.169.327 ~1 1 7531 757 ~2 1 1091 071
Sewer Meters (Estimated) 62,119 62,631 61,628 60,981 60, 7Sl
Sewer Rates (Monthly)
Residential
First
Commercial/Industrial (1) (2)
First 3, 000 gallons
Over 3,000 gallons
$.5.60 (Minimum) (3)
0.68/M gallons
First 3,000 gallons
Over 3,000 gallons
$4.60 (Minimum) (3)
0.33/M gallons
(1) Includes universities, schools, geriatric institutions, orphan homes, publlc or private institutions,
public schools, churches, multi-family residential and all other sewer service customers except
individually metered residents.
(2) Industrial waste that exceeds allowable limits is subject to surcharges; surcharges for treating
biochemical oxygen demand (B.O.D.) and suspended solids (S.S.) are:
B.o.D. s.s. $0.1076/lb.
$0.0918/lb.
$0.0800/lb.
$0.0683/lb.
(3) Based on .5/8" or 3/4" meter; higher minimums for larger meters up to a maximum charge for a 10"
meter of:
$766.3.5 $478.36
A -26
Discussion of Projected 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 (see "Sewer Rates", above).
As part of the Wastewater Project to be financed with SRF loans the City will adopt a formal User
Charge System by ordinance with rates and regulations in accordance with Federal regulations. The User
Charge System is now under development by the City and its rate consultants, Ernst &: Young, Denver,
Colorado, but is not yet at a stage that will permit a definitive descriptive analysis, but may be ready for
adoption by October 1, 1990.
Whether the final User Charge System structure is in place o~ not a sewer rate increase of approximately
18.896 will be implemented effective 10-1-:1991, the beginning of the City's Fiscal Year 1992-1992; this
rate increase is designed to initially anticipate and provide for the additional debt service requirements
incurred under the proposed SRF loan program. Further successive annual sewer rate increases of
approximately 6.9% each to pro'{ide for increasing levels of debt service through Fiscal Year Ending
9-30-1996 are projected each October 1, 1992 through 199.5. ·
A-27
-
....
The Solid Waste Disposal System
The Solid Waste Disposal System, operated by the Solid Waste Management Department of the City of
Lubbock, handles collection and disposal of both residential and commercial garbage in the City. The
residential collection system serviCes approximately 20,000 containers and 54:,000 accounts. Service is
provided twice weekly. Residential collection is provided through three cubic yard metal containers
serviced in alleys by 30-yard packer, side loading trucks on 38 separate routes.
The commercial portion of the system provides collection for approximately 2.5% of the commercial·solid
waste in the City, with the remainder serviced by private contractors. Collection for approximately 320
commercial accounts is provided through two yard to eight yard metal containers picked up by 30-yard
automated frontloading units, and collection for approximately 1,000 accounts is provided by the same
type container and pickup equipment as residential customers. Basic service is collection twice weekly,
with additional service available at an extra charge.
The City does not provide collection of brush or bulky waste. System customers may deliver covered
loads to the City's landfill. ·
Landfill and Disposal Operations ••• The City operates a Type I Landfill (Texas Department of Health
permit 1169) on a 320-acre site. The facility receives approximately 170,000 tons of solid waste annually,
and has a remaining life of approximately six years. The landfill is operated 7:00A.M. to .5:00 P.M.,
Monday through Saturday. Refuse is deposited into cells, compacted, and covered with six inches of
intermediate soil cover. Once a cell reaches maximum heigh~, final cover is applied and the area is
monitored by a series of wells and visual inspections.
The City is in the process of submitting a permit request to the Texas Department of Health which would
allow expansion onto a 1.50 acre tract adjoining the present landfill site; the new permit would include all
new and proposed landfill regulations.
The landfill currently operates as a defacto regional landfill, although it has not previously been marketed
as a regional landfill. The City is negotiating interlocallandfill use agreements with six area
communities. These agreements would include payment of a tipping fee plus collection of an additional
$2.00 per ton surcharge. Purpose of the surcharge would be to create a cleanup fund in the event future
cleanup of site was required, or the fund could be used for future landfill facilities.
Landfill Expansion Program ••• Proceeds of the Solid Waste Certificates will be used to:
1. Acquire a 1.50 acre tract of land adjacent to the present landfill;
the tract will be used for landfill expansion
2. Acquire a steel wheel, 76,000 lb. solid waste landfill compactor;
the compactor will permit maximum compaction on the landfill face
in accordance with State and Federal regulations
3. Acquire a landfill dozer (a 96,000 lb. crawler tractor) for ripping
and pushing application in the excavation on new solid waste cells
and to backup the landfill compactor
4. Acquire a 23 cubic yard landfill scraper to be used in the excavation
of landfill solid waste cells
Total Estimated Cost
Condensed Statement of OperatiOns Solid WaSte Disposal System
Fiscal Year Ending
9-30-90 9-30-89 9-30-88 9-30-87
Operating Revenues $5,630,037 $.5,240,173 $.5,269,732 $.5,045,469
Non-Operating Revenues 1.58z1.54 241028 891134 .57 1777
Gross Revenues $.5, 788,191 $.5,264,201 $.5,3.58,866 $.5,103,246
Operating Expense
(excluding depreciation) 413401042 414401.521 41400 1138 414.501446
Net Revenues $1,448,149 $ 823,680 $ 9.58,728 s 6.52,800
Number Residential Customers .51,.568 .51,380 .52,194 .52' 1.5.5
Number Commercial Customers 1,322 1,336 1,216 • 1,170
A-28
Estimated
Cost
s 200,000
32.5,000
300,000
320,000
$ 1,14.5,00
9-30-86
$.5,081 ,2CI3
1101.563
$.5,191,766
41381 1182
$ 810,.584
.54,034
2,788
Solid Waste Collection Rates (Monthly) .
. Residential (Twice Weekly Service)
The rate is scheduled to increase 1n 50¢ increments every six months until April, 1992, when it will be
$9.00 per month:
Size of Vehicle
Monthly Rate
$7.50
8.00
8.50
9.00
Effective Date
October 1, 1990
AprU 1, 1991
October 1, 1991
April l, ·1992
Commercial
(Effective October 1, 1985)
2 yard container with twice a week service $24.00 per month.
3 yard container with twice a week service $36.00 per month
4 yard container with twice a week service $48.00 per month
6 yard container with twice a week service $72.00 per month
8 yard container with twice a week service $96.00 per month
Extra Pickups for Commercial $1.50 per yard per pickup
Landfill Fees
Present Rates
Effective
October 1, 1991
Pickup, small trailers {1/2 ton or less)
Bobtail trucks, pickups over 1/2 ton
Semitrailers
s 4.25
12.75
21.75
Container trucks and packer trucks:
20 cubic yards
24 cubic yards
28 cubic yards
30 cubic yards
32 cubic yards·
40 cubic yards
42.50
51.00
59.50.
63.75
. 68.00
85.00
Previous Rates
Effective
October 1, 1990
$ 4.00
12.00
20.00
40.00
48.00
56.00
60.00
64.00
80.00
The City may, at its option,.supersede the above schedule with a charge per ton of waste of $8.00,
effective October, 1990, or $8.50, effective October 1, 1991.
BILLINGS
(Waterworks System, Sewer System, Solid Waste Disposal System and Electric Light and Power System)
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 5% late
payment penalty. If the bill has not been paid on the next billing date, a statement is mailed showing the
past due bill together with the current bill. If the bill remains delinquent 7 days after the date of the
second statement, a reminder/cut-off notice is mailed. The cut-off notice specifies that service will be
discontinued. in 7 days if payment in full is not made. At the end of the 7 day period, a field collector
calls on the customer and if he is unable to collect payment, service is cut off. The reconnection charge,
including electric service if the customer is connected to the City's electric system, is $15.00 before 5:00
p.m. and $25.00 after 5:00 p.m. and during weekends and holidays.
A-29
-
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 district and has an area of
3,148 acres, of which approximately 1,900 acres is used for farming and clear ~nes.
Scheduled Airline Service ••• Scheduled 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 Paso, Austin, Amarillo,
Midland-Odessa and Albuquerque. 1990 passenger enplanements totaled 615,639; 1989 enplanements were
61.5,1.54.
Lubbock International Airport Terminal ••• The terminal building contains approximately 222,000 square
feet; the terminal houses airport administrative offices, airline offices and ticket counters, the baggage
claim area, car rental offices, a restaurant and inflight meal preparation kitchen, air freight tenants,
meeting and press rooms, and 9 jetway equipped gates for airline use. Parking capacity is 1,820, including
140 employees. The old terminal building has been converted to government and commercial office space
and houses a Federal Aviation Administration ("FAA") Flight Standard District Office.
Runway System ••• The runway system consists of:
1 -11,.500' x 1.50', north/south, primary runway with high intensity lighting and a FAA-operated
instrument landing system and other navigational aids;
1-8,000' x 1.50', east/west, cross-wind runway, with high intensity lighting and a FAA operated
instrument landing system;
1 -2,8001 x 7.5' general aviation runway; and a taxiway system connecting the runways with aprons, the
terminal and other facilities.
General Aviation Facilities ••• A building designed for the use of private aviation is located on the east
side of the airport. This 8,779 square foot building still houses some general aviation services, 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 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.
Warehouses and Land Rentals ••• The airport has five 16,000 square foot warehouses and six other
warehouses for storage space rental.
Industrial • • • Located at the Airport are two steel companies, a research company and a manufacturing
company.
Condensed Statement of Operations Airport System
Fiscal Year Ended
9-30-90 9-30-89 9-30-88 9-30-87 9-30-86
Operating Revenues $3,816,316 $3,617,038 $3,223,095 $2,966,294 $2,881,641
Non-Operating Revenue 208166.5 .55 1.518 146.809 1131182 115118.5
Gross Income $4,018,981 $3,672,.556 $3,369,904 $3,079,476 $2,996,826
Operating Expense
(excluding depreciation) 31 1921614 31222 1437 31038117.5 217851283 217361319
Net Revenue s ~26.367 $ 4.50.119 $ 331.729 ~ 2941193 $ 2601.507
Maximum Principal and Interest Requirements, Airport Revenue Bonds,
Fiscal Year Ending 9-30-91 ------------------------------------------------------$ 122,720
Coverage Based on~ Income, Fiscal Year Ended 9-30-90 --------------------------31.05 Times
Airport Revenue Bonds Outstanding, 9-30-90 ----------------------------------------$ 710,000
Interest and Sinking Fund, 9-30-90 ----------------------------:---------------------$ 14,877
Reserve Fund, Cash and Investments, 9-30-90 ---------------------------------------$ 300,000
A-30
The Golf Course Facilities
Meadowbrook Golf Course was estabHshecJ in 1954 and is ownedand 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 barn, cart
shed and a maintenance storage facility.
Meadowbrook is located in the northeast quadrant of Mackenzie State Park; the Park is the property of
the State of Texas. Administration, maintenance and improvements to the land and facilities are the
responsibility of the City of Lubbock under a lease agreement with the State that extends to
December 31, 2015.
The Golf Enterprise Fund was first established in Fiscal Year Ended 9-30--871 having previously been
operated in the General Fund.
Condensed Statement of Operations -Golf Enterprise Fund
Fiscal Year Ended
Budget
1990-91 9-30-90 9-30-89 9-30--88 9-30-87
Operating Revenue $997,.540 $88.5,48.5 $840,47.5 $831,709 $876,764
Non-Operating Revenue -o .. (191619) (231 406) 291989 10,065
Gross Revenue $997,.540 $86.5,866 $817,069 $861,698 $886,829
Operating Expense
(excluding depreciation) 814,178 8562886 74314.58 7671860 8.571236
Net Revenues ~183,362 $ 81980 ~ 731611 ~ 93,838 ~ 291.593
Rounds of Golf N.A. 60,470 60,470 6.5,441 8.5,.553
Note; The City has no outstanding .or authorized Golf Course Facllities Revenue Bonds; the outstanding
$670,000 Combination Tax and Golf Course Revenue Certificates of Obligation, Series 1988, are payable
from an ad valorem tax and, additionally, from a lien on Net Revenues subordinate to any prior pledge of
and lien on Net Revenues which may hereafter be made.
Daily greens fees were increased effective October 1, 1990:
Present Fees
(Effective 10-1-1990)*
Weekdays Weekends
$7.00 $9.00
*No season discount.
Daily Greens Fees
Previous Fees
{Effective 10-1-1988)
Season Weekdays
March/October $6.50
November/February .5 • .50
Pro shop charges were also increased effective October 1, 1990.
A-31
Weekends
$8.00
7.00
APPENDIX 8
FORM OF BOND COUNSEL'S OPINION
-
T£1.£PHONE: 214/SSS•SOOO
TELECOPIER: 214/855•8200
FULBRIGHT & .JAWORSKI
2200 Ross AVENUE
SUITE 2SOO
DALLAS, TEXAS 75201
HOUSTON
WASHINGTON, O.C,
AUSTIN
SAN ANTONIO
DALLAS
NEW YORK
LOS ANGELES
LONDON
ZU~ICH
HONG KONG
IN REGARD to the authorization and issuance of the
"City of Lubbock, Texas, Electric Light and Power System
Revenue Bonds, Series 1991" (the "Bonds"),.dated May 15, 1991,
(the "Bond Date"), in the principal amount of $71500 I 000, we
have examined into the legal~ty and validity of the issuance
thereof by the City of Lubbock, Texas (the "City"), which Bonds
are issuable in fully registered form only, in denominations of
$51000 or any integral multiple thereof (within a maturity),
have stated maturities of April 15, 1992 through April 15,
2011, unless redeemed prior to maturity in accordance with the
terms stated on the face of the Bonds, and bear interest on the
unpaid principal amount from the Bond Date at the rates per
annum stated in the ordinance authorizing the issuance of the
Bonds (the "Ordinance"); such interest being payable on
October 15 and April 15 in each year, commencing October 15,
1991, to the registered owners shown on the registration books
of the Paying Agent/Registrar on the Record Date (stated on the
face of the Bonds).
WE HAVE SERVED AS BOND COUNSEL for the City solely to
pass upon the legality and validity of the issuance of the
Bonds under the Constitution and laws of the State of Texas,
and with respect to the exemption of the interest on the Bonds
from federal income taxes and none other. We have not been
requested to investigate or verify, and have not independently
investigated or verified, any records, data or other material
relating to the financial condition or capabilities of the
City. Our examinations into the legality and validity of the
Bonds included a review of the applicable and pertinent
provisions of the Const~tution and laws of the State of Texas,
a transcript of certified proceedings of the City relating to
the authorization and issuance of the Bonds, including the
Ordinance, customary certifications and opinions of officials
of the City and other pertinent showings, and an examination of
the Bond executed and delivered initially by the City, which we
found to be in due form and properly executed.
63990
-
Page 2
RE:
of Legal Opinion of Fulbright & Jaworski
$7,500,000 . "City of Lubbock, Texas, Electric Light and
Power System Revenue Bonds, Series 1991", dated
May 15, 1991
BASED ON OUR EXAMINATIONS, IT IS OUR OPINION that the
Bonds have been duly authorized by the City in compliance with
the Constitution and laws of the State. of Texas now in force,
and the Bonds issued in compliance with the provisions of the
Ordinance are valid and legally binding special obligations of
the City, in accordance with the terms thereof, and, together
with the outstanding Previously Issued Bonds (identified and
defined in the Ordinance), are payabl• solely from and equally
and ratably secured by a lien on and pledge of the Net Revenues
(as defined in the Ordinance) of the City's Electric Light and
Power System, 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 general principles of equity. The Ordinance
provides certain conditions under which the City may issue
additional obligations payable from the same source and secured
in the same manner as the Bonds.
IT IS FURTHER OUR OPINION THAT, assuming continuing
compliance after the date hereof by the City with the
provisions of . the Ordinance and in reliance upon
representations and certifications of the City made in a
certificate of even date herewith pertaining to the use,
expenditure, and investment of the proceeds of the Bonds,
interest on the Bonds for federal income tax purposes (1) will
be excludable from the gross income, as defined in section 61
of the Internal Revenue Code of 1986, as amended to the date
hereof, of the owners thereof pursuant to section 103 of such
Code, existing regulations, published rulings, and court
decisions thereunder, and (2) will not be included in computing
the alternative m1n1mum taxable income of individuals or,
except as hereinafter described, corporations. Interest on all
tax-exempt obligations, such as the Bonds, owned by a
corporation will be included in such corporation's adjusted net
book income, 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.
63990
Page 3
RE:
of Legal Opinion of Fulbright & Jaworski
$7,500,000 "City of Lubbock, Texas, Electric Light and
Power System Revenue Bonds, Series 1991", dated
May 15, 1991
WE EXPRESS NO OPINION with respect to any other
fede~ali state,. or local tax consequences under present law or
any proposed legislation resulting from the receipt'or accrual
of interest on, or the acquisition or disposition of, the
Bonds. Ownership of tax-exempt obligations such as the Bonds
may result in collateral federal tax consequences to, among
others, financial institutions, life insurance companies,
property and casualty insurance co'mpanies, certain fo'reign
corporations. doing business in the United States, S
corporations with subchapter C earnings and profits, individual
recipients of Social Secui:ity 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.
·-
i
! :r--
:! t''"
No Text
ORDINANCE NO.
AN ORDINANCE authorizing the issuance of
$7,500,000 "CITY OF LUBBOCK, TEXAS, ELECTRIC
LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES
1991"; prescribing the forms, terms, and
provisions of said bonds; pledging the net
revenues of the City's Electric Light and Power
System to the payment of the principal of and
interest on said bonds; enacting provisions
incident and related to the issuance, payment,
security, sale and delivery of said bonds,
including the approval and distribution of an
Official Statement pertaining thereto, and
providing an effective date.
WHEREAS, this City Council has heretofore caused
notice of its intention to issue bonds for the purpose of
improving and extending the electric light and power system of
this City to be published once a week for two consecutive
weeks, the date of the first publication being not less than 15
days prior to the date set for the passage of the ordinance
authorizing the issuance of the bonds; and
WHEREAS, such notice was published in the Lubbock
Avalanche-Journal on the 24th day of March, 1991 and the 31st
day of March, 1991; and
WHEREAS, no petition, signed by 10\ of the qualified
voters of the City, has been presented to the City Secretary or
other officials of the City requesting that an election be held
on the question of whether such bonds should be issued; and,
therefore, this Council is authorized to authorize, issue and
deliver the bonds herein authorized; and
WHEREAS, the City Council has further determined and
hereby finds that said bonds can and should be issued on a
parity with other outstanding revenue bonds of the City
(hereinafter called and defined as "Previously Issued Bonds")
payable from and secured by a first lien on and pledge of the
net revenues of the City's Electric Light and Power System
(hereinafter called the "System") and that the terms and
conditions for the issuance of "additional bonds" on a parity
with the Previously Issued Bonds can be met and satisfied, to
wit: ( i) the Mayo1 and City Treasurer can certify that the
City is not now in default as to any covenant, condition or
obligation prescribed by the ordinances authorizing the
issuance of the outstanding Previously Issued Bonds, including
showings that a 11 interest, sinking, and reserve funds have
been fully maintained in accordance with the provisions of said
ordinances; (ii) applicable laws of the State of Texas now in
force permit and authorize the issuance of the bonds and will
be fully complied with, (iii) the City can secure from an
independent Certified Public Accountant a written report
demonstrating that the net revenues of the System were, during
the last completed fiscal year, equal to at least 1-1/2 times
the average annual principal and interest requirements of all
the bonds which will be secured by a first lien on and pledge
of the net revenues of the System and which will be outstanding
upon the issuance of the bonds herein authorized; and further
demonstrating that the net revenues of the System during the
last completed fiscal year were equal to at least 1-1/5 times
the maximum annual principal and interest requirements of all
such bonds as will be outstanding upon the issuance of the
bonds herein authorized, (iv) the bonds herein authorized will
mature on April 15 in each year, and (v) the "Reserve Portion"
of the Bond Fund shall be accumulated and supplemented as
necessary to maintain therein a sum equal to at least the
average annual principal and interest requirements of all bonds
secured by a first 1 ien on and pledge of the net revenues of
the System which will be outstanding upon the issuance of the
bonds herein authorized; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK:
SECTION 1: Authorization -Designation -Principal
Amount -Purpose. Revenue bonds of the City shall be and are
hereby authorized to be issued in the aggregate principal
amount of $7,500,000, to be designated and bear the title "City
of Lubbock, Texas, Electric Light and Power System Revenue
Bonds, Series 1991" (hereinafter referred to as the "Bonds"),
for the purpose of constructing improvements and extensions to
the electric light and power system of the City, in conformity
with the Constitution and laws of the State of Texas, including
Article 1111, et seq., Article 2368a, Revised Civil Statutes of
Texas, 1925, as amended and Chapter 252 of the Local Government
Code.
SECTION 2: Fully Registered Obligations
Authorized Denominations Stated Maturities Interest
Rates -Date. The Bonds are issuable in fully registered form
only; shall be dated May 15, 1991 (the "Bond Date") and shall
be in denominations of $5,000 or any integral multiple thereof
(within a Stated Maturity) and the Bonds shall become due and
payable on April 15 in each of the years and in principal
amounts (the "Stated Maturities") and bear interest at per
annum rates in accordance with the following schedule:
-2-63910
"_ ... _~-.
,," ·~ .,
Year of Principal Interest
Stated Maturity Amount Rate
1992 $375,000 --%
1993 375,000 --%
1994 375,000 --%
1995 375,000 % --1996 375,000 % --1997 375,000 % --1998 375,000 % --1999 375,000 % --2000 375,000 %
2001 375,000 --%
2002 375,000 --% --2003 375,000 % --2004 375,000 %
2005 375,000 --%
2006 375,000 --%
2007 375,000 --%
2008 375,000 --%
2009 375,000 --% --2010 375,000 % --2011 375,000 % --
SECTION 3: Payment of Bonds Paying Agent/
Registrar. The principal of, premium, if any, and the interest
on the Bonds shall be payable, without exchange or collection
charges to the owner or holder thereof, 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.
The Bonds shall bear interest on the unpaid principal
amounts from the Bond Date at the per annum rates shown above
in Section 2 hereof (computed on the basis of a 360-day year of
twelve 30-day months); such interest to be payable on April 15
and October 15 of each year commencing October 15, 1991.
The selection and appointment of Texas Commerce Bank
National Association, Lubbock, Texas, to serve as Paying
Agent/Registrar for the Bonds is hereby approved and confirmed,
and the City agrees and covenants to cause to be kept .· ~nd
maintained at the principal office of the Paying
Agent/Registrar books and records for the registration, payment
and transfer of the Bonds (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 Bonds.
-3-6398D
The City covenants to maintain and provide a Paying
Agent/Registrar at all times until the Bonds are paid and
discharged and any successor Paying Agent/Registrar shall be a
bank, trust company, financial institution or other entity duly
qualified and legally authorized to serve as, and perform the
duties and services of, Paying Agent/Registrar. Upon any
change in the Paying Agent/Registrar for the Bonds, the City
agrees to promptly cause a written notice thereof to be sent to
each registered owner of the Bonds by United States Mail, first
class postage prepaid, which notice shall also give the address
of the new Paying Agent/Registrar.
Both principal of, premium, if any, and interest on
the Bonds, due and payable· by reason of maturity, redemption,
or otherwise, shall be payable only to the registered owner or
holder of the Bonds (hereinafter referred to as the
"Bondholder" or "Bondholders") appearing on the Security
Register, and, to the extent permitted by law, neither the City
nor the Paying Agent/Registrar or any agent of either, shall be
affected by notice to the contrary.
Principal of and premium, if any, on the Bonds, shall
be payable only upon presentation and surrender of the Bonds to
the Paying Agent/Registrar at its principal office. Interest
on the Bonds shall be paid to the Bondholder 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 shall be paid by the
Paying Agent/Registrar ( i) 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 (ii) by such other method, acceptable to the Paying
Agent/Registrar, requested by the Bondholder at the
Bondholder's risk and expense. If the date for the payment of
the principal of or interest on the Bonds shall be a Saturday,
Sunday, a legal holiday, or a day on which 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 on which 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.
In the event of a non-payment 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
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6 3 t II D
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 Bondholder appearing on the Security Register
at the close of business on the last business day next
preceding the date of mailing of such notice.
SECTION 4: Redemption. (a) Optional Redemption.
The Bonds having Stated Maturities on and after April 15, 2002,
shall be subject to redemption prior to maturity, at the option
of the City, on April 15, 2001 or any date thereafter, 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), 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 date set for the redemption of
Bonds (unless a shorter notification period shall be
satisfactory to the Paying Agent/Registrar), the City shall
notify the Paying Agent/Registrar of its decision to exercise
the right to redeem Bonds, the principal amount of each Stated
Maturity to be redeemed, and the date set for the redemption
thereof. The decision of the City to exercise the right to
redeem Bonds shall be entered in the minutes of the governing
body of the City.
(c) Selection of Bonds for Redemption. If less than
all Outstanding Bonds of the same Stated Maturity are to be
redeemed on a redemption date, the Paying Agent/Registrar shall
select by tot the Bonds to be redeemed, provided that if less
than the entire principal amount of a Bond is to be redeemed,
the Paying Agent/Registrar shall treat such Bond then subject
to redemption as representing the number of Bonds Outstanding
which is obtained by dividing the principal amount of such Bond
by $5,000.
(d) Notice of Redemption. Not less than thirty (30)
days prior to a redemption date for the Bonds, 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 Bondholder of a Bond to be redeemed in whole
or in part at the address of the Bondholder appearing on the
Security Register at the close of business on the business day
next preceding the date of 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
Bondholder.
-5-6 3 9 I D
.. _. . ..,,_ ... , ......... ~.
All notices of redemption shall (i) specify the date
of redemption for the Bonds, (ii) identify the Bonds 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) the redemption price, (iv) state that the
Bonds, 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 Bonds, 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 Bondholder. If a Bond is subject by
its terms to prior redemption and has been called for
redemption and notice of redemption thereof has been duly given
or waived as herein provided, such Bond (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 Bonds (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: Execution -Registration. The Bonds
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 Bonds
may be manual or facsimile. Bonds bearing the manual or
facsimile signatures of individuals who are or were the proper
officers of the City on the Bond Date shall be deemed to be
duly executed on behalf of the City, notwithstanding that such
individuals or either of them shall cease to hold such offices
at the time of delivery of the Bonds to the initial
purchaser(s) and with respect to Bonds delivered in subsequent
exchanges and transfers, all as authorized and provided in the
Bond Procedures Act of 1981, as amended.
No Bond shall be entitled· to any right or benefit
under this Ordinance, or be valid or obligatory for any
purpose, unless there appears on such Bond 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 90, executed by an authorized officer,
employee or representative of the Paying Agent/Registrar, and
either such certificate upon any Bond shall be conclusive
evidence, and the only evidence, that such Bond has been duly
certified or registered and delivered.
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63980
SECTION 6: Book-Entry Onl~ Transfers and
Transactions. Notwithstanding the prov1sions contained in
Sections 3 and 5 hereof relating to the payment, and
transfer/exchange of the Bonds, 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 Bonds.
Pursuant to the Depository Agreement and the rules of
DTC, the Bonds shall be deposited with DTC who shall hold said
Bonds for its participants (the "DTC Participants"). While the
Bonds are held by DTC under the Depository Agreement, the
Holder of the Bonds 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 Bond (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 Bonds 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 Bonds, the City covenants and agrees with
the Holders of the Bonds to cause Bonds to be printed in
definitive form and provide for the Bonds to be issued and
delivered to DTC Participants and Beneficial Owners, as the
case may be. Thereafter, the Bonds in definitive form shall be
assigned, transferred and exchanged on the Security Register
maintained by the Paying Agent/Registrar and payment of such
Bonds shall be made in accordance with the provisions of
Sections 3 and 5 hereof.
SECTION 7: Registration -Transfer -Exchange of
Bonds -Predecessor Bonds. A Security Register relating to the
registratic:>n, payment, and transfer or exchange of the Bonds
shall at all times be kept and maintained by the City at 'the
principal office of the Paying Agent/Registrar, and the Paying
Agent/Registrar shall obtain, record, and maintain in the
Security Register the name and address of each registered owner
of the Bonds issued under and pursuant to the provisions of
this Ordinance. Any Bond may, in accordance with its terms and
the terms hereof, be transferred or exchanged for Bonds of
other authorized denominations upon the Security Register by
the Bondholder, in person or by his duly authorized agent, upon
-7-63910
surrender of such Bond to the Paying Agent/Registrar for
cancellation, accompanied by a written instrument of transfer
or request for exchange duly executed by the Bondholder or by
his duly authorized agent, in form satisfactory to the Paying
Agent/Registrar.
Upon surrender for transfer of any Bond at the
principal office of the Paying Agent/Registrar, the Paying
Agent/Registrar shall register and deliver, in the name of the
designated transferee or transferees, one or more new Bonds
executed on behalf of, and furnished by, the City of authorized
denominations and having the same Stated Maturity and of a like
aggregate principal amount as the Bond or Bonds surrendered for
transfer.
At the option of the Bondholder, Bonds may be
exchanged for other Bonds of authorized denominations and
having the same Stated Maturity, bearing the same rate of
interest and of like aggregate principal amount as the Bonds
surrendered for exchange, upon surrender of the Bonds to be
exchanged at the principal office of the Paying Agent/
Registrar. Whenever any Bonds are so surrendered for exchange,
the Paying Agent/Registrar shall register and deliver new Bonds
executed on behalf of, and furnished by, the City to the
Bondholder requesting the exchange.
All Bonds issued upon any transfer or exchange of
Bonds shall be delivered at the principal office of the Paying
Agent/Registrar, or sent by United States mail, first class
postage prepaid, to the Bondholder at his request, risk, and
expense and, upon the delivery thereof, the same shall be valid
obligations of the City, evidencing the same obligation to pay,
and entitled to the same benefits under this Ordinance, as the
Bonds surrendered in such transfer or exchange.
All transfers or exchanges of Bonds pursuant to this
Section shall be made without expense or service charge to the
Bondholder, except as otherwise herein provided, and except
that the Paying Agent/Registrar shall require payment by the
Bondholder requesting such transfer or exchange· of any tax or
other governmental charges required to be paid with respect to
such transfer or exchange.
Bonds cancelled by. reason of an exchange or transfer
pursuant to the provisions hereof are hereby defined to be
"Predecessor Bonds," evidencing all or a portion, as the case
may be, of the same obligation to pay evidenced by the new Bond
or Bonds registered and delivered in the exchange or transfer
therefor. Additionally, the term "Predecessor Bonds" shall
include any Bond registered and delivered pursuant to
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63980
Section 32 hereof in lieu of a mutilated, lost, destroyed, or
stolen Bond which shall be deemed to evidence the same
obligation as the mutilated, lost, destroyed, or stolen Bond.
Neither the City nor the Paying Agent/Registrar shall
be required to transfer or exchange any Bond called for
redemption, in whole or in part, within 45 days of the date
fixed for redemption of such Bond; provided, however, that such
limitation of transfer shall not be applicable to an exchange
by the Bondholder of an unredeemed balance of a Bond called for
redemption in part.
SECTION 8: Initial Bond(s). The Bonds herein
authorized shall be initially issued as a single fully
. registered bond in the total principal amount of this series
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 bonds, being one bond 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 Bond(s)") and, in
either case, the Ini tia 1 Bond(s) sha 11 be registered in the
name of the initial purchaser(s) or the designee thereof. The
Initial Bond(s) shall be the Bonds 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 Bond(s), the Paying Agent/Registrar, pursuant to
written instructions from the purchaser(s), or the designee
thereof, shall cancel the Initial Bond(s) delivered hereunder
and exchange therefor definitive Bonds of authorized
denominations, Stated Maturities, principal amounts, and
bearing applicable interest rates for transfer and delivery to
the Bondholders 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: Forms. A. Forms Generally. The
Bonds, the Registration Certificate of the Comptroller of
Public Accounts of the State of Texas, the Certificate of
Registration, and the form of Assignment to be printed on each
of the Bonds, shall be substantially in the forms set forth in
this Section with such appropriate insertions, omissions,
substitutions, and other variations as are 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)
-9-
fi391D
.... ' ...,...,..~"""""".
and such legends and endorsements (including any reproduction
of an opinion of counsel) thereon as may, consistently
herewith, be established by the City or determined by the
officers executing such Bonds as evidenced by their execution
thereof. Any portion of the text of any Bonds may be set forth
on the reverse thereof, with an appropriate reference thereto
on the face of the Bond.
The definitive Bonds shall be printed, lithographed,
or engraved or produced in any other similar manner, all as
determined by the officers executing such Bonds as evidenced by
their execution thereof, but the Initial Bond(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 Bond for each Stated Maturity in the aggregate
principal amount of each Stated Maturity and (ii) for
registration of such Bonds 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 Bonds to the initial purchasers but shall not
affect the City's obligation to pay the registered owners the
principal of and interest on the Bonds as the same become due.
While any Bond is registered in the name of a securities
depository or its nominee, references herein and in the Bonds
to the holder or owner of such Bond shall mean the securities
depository or its nominee and shall not mean any other person.
REGISTERED
NO.
B. Form of Definitive Bond.
United States of America
State of Texas
City of Lubbock, Texas
Electric Light and Power System Revenue Bond
Series 1991
REGISTERED $ ___ _
Bond Date: Interest Rate: Stated Maturity: CUSIP NO.
May 15,1991
Registered Owner:
Principal Amount: DOLLARS
-10-
6398D
The City of Lubbock, Texas, (hereinafter referred to
as the "City"), a body corporate and municipal corporation in
the County of Lubbock, State of Texas, for value received,
hereby promises to pay to the Registered Owner named above, or
the registered assigns thereof, solely from the revenues
hereinafter defined, on the Stated Maturity date specified
above,: the Principal Amount stated above (or so much thereof as
shall not have been paid upon prior redemption) and to pay
interest on the unpaid Principal Amount hereof from the Bond
Date at the per annum rate of interest specified above computed
on the basis of a 360-day year of twelve 30-day months; such
interest being payable on April 15 and October 15 of each year
commencing October 15, 1991. Principal of this Bond shall be
payable to the registered owner hereof, upon presentation and
surren9er, at the principal office of the Paying
Agent/Registrar executing the registration certificate
appear1ng hereon, or its successor. Interest shall be payable
to the registered owner of this Bond (or one or more
Predecessor Bonds, 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. If the
date for the payment of the principal of or interest on the
Bonds shall be a Saturday, Sunday, a legal holiday, or a day on
which 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 on which 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
Bond 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 made by the
Paying Agent/Registrar by check sent on or prior to the
appropriate date of payment by 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.
This Bond is one of the series specified in its title
issued in the aggregate principal amount of $7,500,000 (herein
referred to as the "Bonds") for the purpose of constructing
impro'{ements and extensions to the electric light and power
-11-li3911D
~ ··-~·
system of the City, under and in strict conformity with the
Constitution and laws of the State of Texas, including Articles
1111 et seq., and Article 2368a, Revised Civil Statutes of
Texas, 1925, as amended and Chapter 252 of the Local Government
Code and pursuant to an ordinance adopted by the City Council
of the City (herein referred to as the "Ordinance").
The Bonds maturing on and after Apri 1 15, 2002, may
be redeemed prior to their Stated Maturities, at the option of
the City, on April 15, 2001, or any date thereafter, 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) at the redemption price of par,
together with accrued interest to the date of redemption, and
upon 30 days prior written notice being given by United States
Mail, first class postage prepaid, to registered owners of the
Bonds to be redeemed, and subject to the terms and provisions
relating thereto contained,in the Ordinance. If this Bond (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 Bond (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 Bond, payment of the redemption price of such
principal amount shall be made· to the registered owner only
upon presentation and surrender of this Bond to the Paying
Agent/Registrar at its principal office and, there shall be
issued, without charge therefor, to the registered owner
hereof, a new Bond or Bonds of like maturity and interest rate
in any authorized denominations provided in the Ordinance for
the then unredeemed balance of the principal sum hereof. If
this Bond is called for redemption, in whole or in part, the
City or the Paying Agent/Registrar shall not be required to
transfer this Bond to an assignee of the Bondholder within 45
days of the redemption date therefor; provided, however, such
limitation on transferability shall not be applicable to an
exchange by the Bondholder of the unredeemed balance hereof in
the event of its redemption in part.
The Bonds are special obligations of the City and,
together with the outstanding and unpaid Previously Issued
Bonds (as defined in the Ordinance authorizing the issuance of
the Bonds), are payable solely from and secured by a first lien
-12-
63980
on and pledge of the Net Revenues (as defined in the Ordinance)
of the City's Electric Light and Power System (the "System").
The Bonds do not constitute a legal or equitable pledge,
charge, lien or encumbrance upon any property of the City or
the System, except with respect to the Net Revenues. The
holder hereof shall never have the right to demand payment of
this obligation out of any funds raised or to be raised by
taxation.
Subject to satisfying the terms and conditions
prescribed therefor, the City has reserved the right to issue
additional revenue obligations payable from and equally and
ratably secured by a parity lien on and pledge of the Net
Revenues of the System, in the same manner and to the same
extent as the Bonds.
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 of the provisions of which the
Bondholder by his acceptance hereof hereby assents, for
definitions of terms; the description of and the nature and
extent of the security for the Bonds; the properties
constituting the System; the Net Revenues pledged to the
payment of the principal of and interest on the Bonds; the
nature and extent and manner of enforcement of the lien and
pledge securing the payment of the Bonds; the terms and
conditions for the issuance of additional revenue obligations;
the terms and conditions relating to the transfer or exchange
of this Bond; the conditions upon which the Ordinance may be
amended or supplemented with or without the consent of the
Bondholders; the rights, duties, and obligations of the City
and the Paying Agent/Registrar; the terms and provisions upon
which the liens, pledges, cparges and covenants made therein
may be discharged at or prior to the maturity or redemption of
this Bond, and this Bond deemed to be no longer Outstanding
thereunder; and for the other terms and provisions thereof.
Capitalized terms used herein have the same meanings assigned
in the Ordinance.
This Bond, 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 new fully registered Bonds of the same
Stated Maturity, of authorized denominations, bearing the same
rate of interest, and of the same aggregate principal amount
will be issued by the Paying Agent/Registrar to the designated
transferee or transferees.
-13-
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 surrender of this Bond as the owner entitled to payment
of principal hereof at its Stated Maturity or U:s 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 non-payment 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 Bondholder
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 and represented and
covenanted that the City is a duly organized and legally
existing municipal corporation under and by virtue of the
Constitution and laws of the State of Texas; that the issuance
of the Bonds 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 Bonds 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 Bonds 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 Bonds by a pledge of the Net Revenues of the
System as aforestated. In case any provision in this Bond 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
Bond and the Ordinance shall be construed in accordance with
and shall be governed by the laws of the State of Texas.
-14-
6l,&D
•
IN WITNESS WHEREOF, the City Council of the City has
caused this Bond to be duly executed under the official seal of
the City as of the Bond Date.
CITY OF LUBBOCK, TEXAS
Mayor
COUNTERSIGNED:
City Secretary
(City Seal)
C. *Form of Registration Certificate of Comptroller
of Public Accounts to Appear on Initial Bond(s) only.
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
OFFICE OF THE COMPTROLLER
OF PUBLIC ACCOUNTS
THE STATE OF TEXAS
()
()
()
()
REGISTER NO.
I HEREBY CERTIFY that this Bond 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.
(SEAL)
WITNESS my signature and seal of office this
Comptroller of Public Accounts
of the State of Texas
* NOTE TO PRINTER: Do not print on Definitive Bonds.
-15-63t8D
~· ......... .__.
D. Form of Certificate of Paying Agent/Registrar to
Appear on Bonds (other than a single fully registered
Initial Bond).
This Bond has been duly issued and registered in the
name of the Registered Owner shown above under the provisions
of the within-mentioned Ordinance; the bond or bonds 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.
Registered this date:
E. Form of Assignment.
TEXAS COMMERCE BANK NATIONAL
ASSOCIATION
Lubbock, Texas
as Paying Agent/Registrar
By ----~--~----~~----------Authorized Officer
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells,
assigns, and. transfers unto {Print or typewrite name, address,
and zip code of transferee:) .••........•.....•••••....•......••.
• • • • • • • • • • • • • • • • 41 ............................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
{Social Security or other identifying number: .........•••....•..
.....••.••.•••.••.. ) the within Bond and all rights thereunder,
and hereby irrevocably constitutes and appoints .......•......... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
attorney to transfer the within Bond on the books kept for
registration thereof, with full power of substitution in the
premises.
DATED: ...................
Signature guarantee:
..........................
foJ98D
. ................................ .
NOTICE: The signature on this
assignment must correspond with
the name of the registered owner
as it appears on the face of the
within Bond in every particular.
-16-
,.
F. The Initial Bond(s) shall be in the form set forth in
paragraph B of this· Section, except that the form of a single
fully registered Initial Bond shall be modified as follows:
(i) immediately under the name of the bond the
headings ''Interest Rate ----:::----:---::-:" and
"Stated Maturi~y " shall both
be completed "As Shown Below";
(ii) Paragraph one shall read as follows:
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, hereby
promises to pay to the Registered Owner named above, or the
registered assigns thereof, solely from the revenues
hereinafter identified, on the 15th day of April in each of the
years and in principal amounts and bearing interest at per
annum rates in accordance with the following schedule:
PRINCIPAL
INSTALLMENTS
INTEREST
RATE
(Information to be inserted from schedule
in Section 2 hereof).
(or so much thereof as shall not have been prepaid prior to
maturity) and to pay interest on the unpaid principal amounts
hereof from the Bond 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 April 15
and October 15 of each year, commencing October 15, 1991.
Principal of this Bond shall be payable to the registered owner
hereof, upon presentation and surrender, at the principal
office ·of Texas Commerce Bank National Association, Lubbock,
Texas (the "Paying Agent/Registrar"). Interest shall be
payable to the registered owner of this Bond 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. If the date for the payment of the
principal of or interest on the Bonds shall be a Saturday,
Sunday, a legal holiday, or a day on which 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 on which banking
-17-
6l91D
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 Bond 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 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.
SECTION 10: Definitions. That for all purposes of
this ordinance and in particular for clarity with respect to
the issuance of the Bonds herein authorized and the pledge and
appropriation of revenues therefor, the following definitions
are provided:
63980
(a) The term "Additional Bonds" shall mean the
additional parity obligations the City reserves the right
to issue in accordance with the terms and conditions
prescribed in Section 21 hereof.
(b) The term "Bonds" shall mean the $7,500,000 "City
of Lubbock, Texas, Electric Light and Power System Revenue
Bonds, Series 1991," dated May 15, 1991, authorized by
this ordinance.
(c) The term "Bonds Similarly Secured" means the
Previously Issued Bonds, the Bonds and Additional Bonds.
(d) The term "Fiscal Year" shall mean the twelve
month accounting period used by the City in connection
with the operations of the System which may be any twelve
{12) consecutive month period established by the City.
(e) The term •Net Revenues" shall mean the gross
revenues of the System less expenses of operation and
maintenance. Such expenses of operation and maintenance
shall not include depreciation charges or funds pledged
for the Bonds Similarly Secured, but shall include all
salaries, labor, materials, repairs, and extensions
necessary to render services; provided, however, that in
determining "Net Revenues", only such repairs and
extensions as in the judgment of the City Council,
reasonably and fairly exercised, are necessary to keep the ~
System in operation and render adequate service to the
City and inhabitants thereof, or such as might be
necessary to meet some physical accident or condition
which otherwise would impair the security of the Bonds
Similarly Secured, shall be deducted.
-18-
(f) The term ;.~revioti';"iy · Issued Bonds" shall mean
the outstanding and unpaid revenue bonds, designated "CITY
OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REVENUE
BONDS" and payable from and secured by a first lien on and
pledge of the Net Revenues of the System, further
identified by issue or series as follows:
( 1) Series 1973, dated July 15, 1973, in the
original principal amount of $6,000,000;
(2) Series 1975, dated March 15, 1975, in the
original principal amount of $6,400,000;
(3) Series 1975-A, dated September 15, 1975, in
the original principal amount of $2,000,000;
(4) Series 1976, dated April 15, 1976, in the
original principal amount of $4,400,000;
(5) Series 1983, dated May 15, 1983, in the
original principal amount of $10,770,000;
(6) Series 1984, dated April 15, 1984, in the
original principal amount of $10,000,000;
(7) Series 1987, dated April 15, 1987, in the
original principal amount of $7,000,000; and
(8) Series 1988, dated May 15, 1988, in the
original principal amount of $17,000,000.
(g) The term "System" shall mean all properties,
real, personal, mixed or otherwise, now owned or hereafter
acquired by the City of Lubbock through purchase,
construction or otherwise, and used in connection with the
City's Electric Light and Power System and in anywise
pertaining thereto, whether situated within or without the
limits of the City.
SECTION 11: Pledge. That the City hereby
covenants and agrees that all of the Net Revenues derived from
the operation of the System, with the exception of those in
excess of the amounts required to establish and maintain the
special Funds created for the payment and security of the Bonds
Similarly Secured, are hereby irrevocably pledged for the
payment of the Previously Issued Bonds, the Bonds and
Additional Bonds, if issued, and the interest thereon, and it
is hereby ordained that the Previously Issued Bonds, the Bonds
and Additional Bonds, if issued, and the interest thereon,
shall constitute a first lien on the Net Revenues of the System.
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6l'tiD
SECTION 12: Rates and Charges. That the City
hereby covenants and agrees with the owners of the Bonds that
rates and charges for electric power and energy afforded by the
System will be established and maintained to provide revenues
sufficient at all times to pay:
(a) all necessary and reasonable expenses of
operating and maintaining the System as set forth herein
in the definition "Net Revenues" and to recover
depreciation;
(b) the amounts required to be deposited to the Bond
Fund to pay the principal of and interest on the Bonds
Similarly Secured as the same becomes due and payable and
to accumulate and maintain the reserve amount required to
be deposited therein; and
(c) 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 13: Segregation of Revenues/Fund
Designations. All receipts, revenues and income derived from
the operation and ownership of the System shall be kept
separate from other funds of the City and deposited within
twenty-four (24) hours after collection in the "Electric Light
and Power System Fund" (created and established in connection
with the issuance of the Previously Issued Bonds), which Fund
(hereinafter referred to as the "System Fund") is hereby
reaffirmed and shall continue to be kept and maintained at an
official depository bank of the City while the Bonds remain
Outstanding. Furthermore, the "Special Electric Light and
Power System Revenue Bond Retirement and Reserve Fund"
(hereinafter referred to as the "Bond Fund"), created and
established in connection with the issuance of the Previously
Issued Bonds, is hereby reaffirmed and shall continue to be
maintained by the City while the Bonds remain Outstanding. The
Bond Fund is and shall continue to be kept and maintained at
the City's official depository bank, and moneys deposited in
the Bond Fund sha 11 be used for no purpose other than for the
payment, redemption and retirement of Bonds Similarly Secured.
SECTION 14: System Fund. The City hereby
reaffirms its covenant to the holders of the Previously Issued
Bonds and agrees with the owners of the Bonds that the moneys
deposited in the System Fund shall be used first for the
payment of the reasonable and proper expenses of operating and
maintaining the System, as identified in Section lO(e) hereof.
All moneys deposited in the System Fund in excess of the
amounts required to pay operating and maintenance expenses of
the System, as hereinabove provided, shall be applied and
appropriated, to the extent required and in the order of
priority prescribed, as follows:
-20-639&D
( i) To the payment of the amounts required to
be deposited in the Bond Fund for the payment of
principal of and interest on the Bonds Similarly
Secured as the same become due and payable; and
(ii) To the payment of the amounts, if any,
required to be deposited in the Bond Fund to
accumulate and maintain · the reserve amount as
security for the payment of the principal of and
interest on the Bonds Similarly Secured.
SECTION 15: Bond Fund. (a) That, in addition to
the required monthly deposits to the Bond Fund for the payment
of principal of and interest on the Previously Issued Bonds,
the City hereby agrees and covenants to deposit to the Bond
Fund an amount equal to one hundred percentum (100%) of the
amount required to fully pay the interest on and principal of
the Bonds falling due on or before each maturity and interest
payment date, such payments to be made in substantially equal
monthly installments on or before the 1st day of each month
beginning on or before the 1st day of the month next following
the month the Bonds are delivered to the initial purchaser.
The required monthly deposits to the Bond Fund for
the payment of principal of and interest on the Bonds shall
continue to be made as hereinabove provided until such time as
(i) the total amount of deposit in the Bond Fund, including the
"Reserve PortionM deposited therein, is equal to the amount
required to fully pay and discharge all outstanding Bonds
Similarly Secured (principal and interest) or (ii) the Bonds
are no longer outstanding, i.e., the Bonds have been fully paid
as to principal and interest or all the Bonds have been
refunded.
Accrued interest and premium, if any, received from
the purchasers of the Bonds shall be deposited in the Bond
Fund, and shall be taken into consideration and reduce the
amount of the monthly deposits hereinabove required which would
otherwise be required to be deposited in the Bond Fund from the
Net Revenues of the System.
·(b) In addition to the amounts to be deposited. in
the Bond Fund to pay current principal and interest for the
Bonds Similarly Secured, the City reaffirms its covenant to the
holders of the Previously Issued Bonds and agrees to accumulate
and maintain in said Fund a reserve amount (the "Reserve
Portion") equal to not less than the average annual principal
and interest requirements of all outstanding Bonds Similarly
Secured (calculated and redetermined at the time of issuance of
each series of Bonds Similarly Secured).
-21-
................
In accordance with the ordinances authorizing the
issuance of the Previously Issued Bonds, there is currently on
deposit to the credit of the Reserve Portion of the Bond Fund
the sum of $3,811,807. No additional amount is required to be
deposited to the credit of the Reserve Portion from
unencumbered available funds in order that the total amount is
not less than the average annual principal and interest
requirements of the outstanding Bonds Similarly Secured after
giving effect to the issuance of the Bonds (the "Required
Reserve Fund Amount").
The Reserve Portion of the Bond Fund shall be made
available for and reasonably employed in meeting the
requirements of the Bond Fund if need be, and if any amount
thereof is so employed, the Reserve Portion in the Bond Fund
shall be fully restored to the Required Reserve Fund Amount as
rapidly as possible from the first available Net Revenues of
the System in the System Fund subject only to the priority of
payments hereinabove prescribed in Section 14. Any amounts in
excess of the Required Reserve Fund Amount shall be transferred
to the System Fund.
SECTION 16: Payment of Bonds. While any of the
Bonds are outstanding, the proper officers of the City are
hereby authorized to transfer or cause to be transferred to the
Paying Agent, from funds on deposit in the Bond Fund, including
the Reserve Portion, if necessary, amounts sufficient to fully
pay and discharge promptly as each installment of interest and
principal of the Bonds accrues or matures or comes due by
reason of redemption prior to maturity; such transfer of funds
to be made in such manner as will cause immediately available
funds to be deposited with the Paying Agent for the Bonds at
the close of the business day next preceding the date of
payment for the Bonds.
SECTION 17: Deficiencies in Funds. That, if in
any month the City shall, for any reason, fail to pay into the
Bond Fund the full amounts above stipulated, amounts equivalent
to such deficiencies shall be set apart and paid into said Fund
from the first available and unallocated Net Revenues of the
System in the following month or months and such payments shall
be in addition to the amounts hereinabove provided to be
otherwise paid into said Fund during such month or months.
SECTION 18: Excess Revenues. Any surplus Net
Revenues of the System remaining after all payments have been
made into the Bond Fund and after all deficiencies in making
deposits to said Fund have been remedied, may be used for any
other City purposes now or hereafter permitted by law,
including the use thereof for the retirement in advance of
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63910
•.. · ... ~ ...... 6
maturity of the Bonds Similarly Secured by the purchase of any
of such Bonds Similarly Secured on the open market at not
exceeding the market value thereof. Nothing herein, however,
shall be construed as impairing the right of the City to pay,
in accordance with the provisions thereof, any junior lien
bonds legally issued and payable out of the Net Revenues of the
System.
SECTION 19: Security of Funds. That moneys on
deposit in the System Fund (except any amounts as may be
properly invested) shall be secured in the manner and to the
fullest extent required by the laws of the State of Texas for
the security of public funds. Moneys on deposit in the Bond
Fund shall be continuously secured by a valid pledge of direct
obligations of, or obligations unconditionally guaranteed by
the United States of America, having a par value, or market
value when less than par, exclusive of accrued interest, at all
times at least equal to the amount of money to be deposited in
said Fund. All sums deposited in said Bond Fund shall be held
as a trust fund for the benefit of the holders of the Bonds
Similarly Secured, the beneficial interest in which shall be
regarded as existing in such holders. To the extent that money
in the Reserve Portion of the Bond Fund is invested under the
provisions of Section 20 hereof, such security is not required.
SECTION 20: Investment of Reserve Portion of Bond
Fund. The custodian bank shall, when authorized by the City
Council, invest the Reserve Portion of the Bond Fund in direct
obligations of, or obligations guaranteed by the United States
of America, or invested in direct obligations of the Federal
Intermediate Credit Banks, Federal Land Banks, Federal National
Mortgage Association, Federal Home Loan Banks or Banks for
Cooperatives, and which such investment obligations must mature
or be subject to redemption at the option of the holder, within
not to exceed ten years from the date of making the
investment. Such obligations shall be held by the depository
impressed with the same trust for the benefit of the
bondholders as the Bond Fund itself, and if at any time
uninvested funds shall be insufficient to permit payment of
principal and interest maturities for the Bonds Similarly
Secured, the said custodian bank shall sell on the open market
such amount of the securities as is required to pay said Bonds
Similarly Secured and interest when due and shall give notice
thereof to the City. All moneys resulting from maturity of
principal and interest of the securities shall be reinvested or
accumulated in the Reserve Portion of the Bond Fund and
considered a part thereof and used for and only for the
purposes hereinabove provided with respect to said Reserve
Portion, provided that when the full amount required to be
accumulated in the Reserve Portion of the Bond Fund (being the
-23-6:S91D
amounts required to be accumulated by the ordinances
authorizing the Bonds Similarly Secured) is accumulated, any
interest increment may be used in the Bond Fund to reduce the
payments that would otherwise be required to pay the current
debt service requirements on Bonds Similarly Secured.
Amounts on deposit in any of the Funds herein
referred to and allocable to the Bonds or Additional Bonds, if
issued, shall be invested as provided in the Public Funds
Investment Act of 1987 and in this ordinance to the extent the
investment provisions of this ordinance are consistent with
such Act.
SECTION 21: Issuance of Additional Parity Bonds.
That, in addition to the right to issue bonds of inferior lien
as authorized by the laws of the State of Texas, the City
hereby reserves the right to issue Additional Bonds which, when
duly authorized and issued in compliance with the terms and
conditions hereinafter appearing, shall be on a parity with the
Previously Issued Bonds and the Bonds herein authorized,
payable from and equally and ratably secured by a first lien on
and pledge of the Net Revenues of the System. The Additional
Bonds may be issued in one or more installments, provided,
however, that none shall be issued unless and until the
following conditions have been met:
63980
(a) That the Mayor and City Treasurer have certified
that the City is not then in default as to any covenant,
condition or obligation prescribed by any ordinance
authorizing the issuance of Bonds Similarly Secured then
outstanding, including showings that all interest, sinking
and reserve funds then provided for have been fully
maintained in accordance with the provisions of said
ordinances;
(b) That the applicable laws of the State of Texas
in force at the time provide permission and authority for
the issuance of such bonds and have been fully complied
with;
(c) That the City has secured from an independent
Certified Public Accountant his written report
demonstrating that the Net Revenues of the System were,
during the last completed Fiscal Year, or during any
consecutive twelve (12) ·months period of the last fifteen
(15) consecutive months prior to the month of adoption of
the ordinance authorizing the Additional Bonds, equal to
at least one and one-half (1-1/2) times the average annual
principal and interest requirements of all the bonds which
will be secured by a first lien on and pledge of the Net
-24-
Revenues of the System and which will be outstanding upon
the issuance of the Addi tiona 1 Bonds; and further
demonstrating that for the same period as is employed in
arriving at the aforementioned test said Net Revenues were
equal to at least one and one-fifth (1-1/5) times the
maximum annual principal and interest requirements of all
such bonds as will be outstanding upon the issuance of the
Additional Bonds;
{d) That the Additional Bonds are made to mature on
April 15 or October 15, or both, in each of the years in
which they are provided to mature;
(e) The Reserve Portion of the Bond Fund shall be
accumulated and supplemented as necessary to maintain a
sum which shall be not less than the average annual
principal and interest requirements of all bonds secured
by a first lien on and pledge of the Net Revenues of the
System which will be outstanding upon the issuance of any
series of Additional Bonds. Accordingly, each ordinance
authorizing the issuance of any series of Additional Bonds
shall provide for any required increase in the Reserve
Portion, and if supplementation is necessary to meet all
conditions of said Reserve Portion, said ordinances shall
make provision that same be supplemented by the required
amounts in equal monthly installments over a period of not
to exceed sixty (60) calendar months from the dating of
such Additional Bonds.
When thus issued, such Additional Bonds may be
secured by a pledge of the Net Revenues of the System on a
parity in all things with the pledge securing the issuance of
the Bonds and the Previously Issued Bonds.
SECTION 22: Maintenance and Operation -Insurance.
That the City hereby covenants and agrees to maintain the
System in good condition and operate the same in an efficient
manner and at reasonable cost. The City further agrees to
maintain insurance for the benefit of the registered owners of
the Bonds of the kinds and in the amounts which are usually
carried by private companies operating similar properties, and
that during such time all policies of insurance shall be
maintained in force and kept current as to premium payments.
All moneys received from losses under such insurance policies
other than public liability policies are hereby pledged as
security for the Bonds Similarly Secured until and unless the
proceeds thereof are paid out in making good the loss or damage
in respect of which such proceeds are received, either by
replacing the property destroyed or repairing the property
damaged, and adequate provisions are made within ninety (90)
days after the date of the loss for making good such loss or
damage. The premiums for all insurance policies required under
the provisions of this Section shall be considered as
maintenance and operation expenses of the System.
-25-
'l'IID
SECTION 23: Records Accounts Accounting
Reports. That the City hereby covenants and agrees so long as
any of the Bonds or any interest thereon remain outstanding and
unpaid, it will keep and maintain a proper and complete system
of records and accounts pertaining to the operation of the
System separate and apart from all other records and accounts
of the City in accordance with generally accepted accounting
principles prescribed for municipal corporations, and complete
and correct entries shall be made of all transactions relating
to said System, as provided by applicable law. The registered
owner of any Bonds, or any duly authorized agent or agents of
such owner, shall have the right at all reasonable times to
inspect all such records, accounts and data relating thereto
and to inspect the System and all properties comprising same.
The City further agrees that as soon as possible 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. Each such audit, in addition to whatever
other matters may be thought proper by the Accountant, shall
particularly include the following:
(a) A detailed statement of the income and
expenditures of the System for such Fiscal Year;
(b) A balance sheet as of the end of such Fiscal
Year;
(c) The Accountant's comments regarding the manner
in which the City has compiled with the covenants and
requirements of this ordinance and his recommendations for
any changes or improvements in the operation, records and
accounts of the System;
'3 9 8 D
(d) A list of the insurance policies in force at the
end of the Fiscal Year on the System properties, setting
out as to each policy the amount thereof, the risk
covered, the name of the insurer, and the policy's
expiration date;
(e) A list of the securities which have been on
deposit as security for the money in the Bond Fund
throughout the Fiscal Year and a list of the securities,
if any, in which the Reserve Portion of the Bond Fund has
been invested.
(f) The total number of metered and unmetered
customers, if any, connected with the System at the end of
the Fiscal Year.
-26-
Expenses incurred in making the audits above referred
to are to be regarded as maintenance and operating expenses of
the System and paid as such. Copies of the aforesaid annual
audit shall be immediately furnished to the Executive Director
of the Municipal Advisory Council of Texas at his office in
Austin, Texas, and, upon written request, to the original
purchasers and any subsequent registered owner of the Bonds.
SECTION 24: Remedies in Event of Default. That,
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
payments to be made to the Bond Fund as required by this
ordinance or {b) defaults in the observance or performance of
any other of the covenants, conditions or obligations set forth
in this ordinance, the registered owner of any of the Bonds
shall be entitled to a writ of mandamus issued by a court of
proper jurisdiction compelling and requiring the City Council
and other officers of the City to observe and perform any
covenant, condition or obligation prescribed in this ordinance.
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
acquiescence therein, and every such right or 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
specifications of such remedies shall not be deemed to be
exclusive.
SECTION 25: Special Covenants. The City hereby
further covenants as follows:
(a) That it has the lawful power to pledge the
revenues supporting this issue of Bonds and has
lawfully exercised said power under the Constitution
and laws of the State of Texas, including Article
1111 et seq., Article 23 68a, Revised Ci vi 1 Statutes
of Texas, 1925, as amended, and Chapter 252 of the
Local Government Code; that the Previously Issued
Bonds, the Bonds and the Additional Bonds, when
issued, shall be ratably secured under said pledge of
income in such manner that one bond shall have no
preference over any other bond of said issues.
(b) That, other than for the payment of the
Previously Issued Bonds and the Bonds, the Net
Revenues of the System have not been pledged to the
payment of any debt or obligation of the City or of
the System.
-27-
(c) That, so long as any of the Bonds or any
interest thereon remain outstanding, the City will
not sell, lease or encumber the System or any
substantial part thereof; provided, however, this
covenant shall not be construed to prohibit the sale
of such machinery, or other properties or equipment
which has become obsolete or otherwise unsuited to
the efficient operation of the System when other
property of equal value has been substituted
therefore, and, also, with the exception of the
Additional Bonds expressly permitted by this
ordinance to be issued, it will not encumber the Net
Revenues of the System unless such encumbrance is
made junior and subordinate to all of the provisions
of this ordinance.
(d) The City wi 11 cause to be rendered monthly
to each customer receiving electric services a
statement therefor and will not accept payment of
less than all of any statement so rendered, using its
power under existing ordinances and under all such
ordinances to become effective in the future to
enforce payment, to withhold service from such
delinquent customers and to enforce and authorize
reconnection charges.
(e) That the City will faithfully and
punctually perform all duties with respect to the
System required by the Constitution and laws of the
State of Texas, including the making and collecting
of reasonable and sufficient rates for services
supplied by the System, and the segregation and
application of the revenues of the System as required
by the provisions of this ordinance.
(f) No free service shall be provided by the
System and to the extent the City or its departments
or agencies utilize the services provided by the
System, payment shall be made 'therefor at rates
charged to others for similar service.
SECTION 26: Special Obligations. The Bonds are
special obligations of the City payable from the pledged Net
Revenues of the System and the registered owners thereof shall
never have the right to demand payment thereof out of funds
raised or to be raised by taxation.
SECTION 27: Bonds are Negotiable Instruments.
Each of the Bonds herein authorized shall be deemed and
construed to be a "Security", and as such a negotiable
instrument, within the meaning of Article 8 of the Uniform
Commercial Code.
-28-6ltiD
•
SECTION 28: Ordinance to Constitute Contract. The
provisions of the Ordinance shall constitute a contract between
the City and the registered owner or owners from time to time
of the Bonds and no change, variation or alteration of any kind
of the provisions of the Ordinance may be made, except as
permitted in this Section. The City may, without the consent
of or notice to any registered owner or owners, from time to
time and at any time, amend this Ordinance in any manner not
detrimental to the interests of the registered owner or owners
holding a majority in aggregate principal amount of the Bonds
then Outstanding affected thereby, amend, add to, or rescind
any of the provisions of this Ordinance; provided that, without
the consent of all registered owners of Outstanding Bonds, 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 Bonds, reduce the principal amount thereof,
the redemption price therefor, 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 Bonds, (2)
give any preference to any Bond over any other Bond, or (3)
reduce the aggregate principal amount of Bonds required for
consent to any such amendment, addition or rescission.
The terms "Outstanding" and "outstanding" when used
in this Ordinance with respect to Bonds means, as of the date
of determination, all Bonds theretofore issued and delivered
under this Ordinance, except:
139&D
(I) those Bonds theretofore cancelled
Paying Agent/Registrar or delivered to the
Agent/Registrar for cancellation;
by the
Paying
(2) those Bonds for which payment has been duly
provided by the City of the irrevocable deposit with
the Paying Agent/Registrar of money 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 Bonds are
to be redeemed, notice of redemption thereof sha 11
have been duly given pursuant to this Ordinance or
irrevocably provided to be given to the satisfaction
of the Paying Agent/Registrar, or waived;
( 3) those Bonds that have been
destroyed, lost or stolen and replacement
been registered and delivered in lieu
provided in Section 32 hereof; and
mutilated,
Bonds have
thereof as
(4) those Bonds for which the payment of the
principal of, premium, if any, and interest on which
has been duly provided for by the City in accordance
with law.
-29-
SECTION 29: Covenants to Maintain Tax-Exempt Status.
(a) Definitions. When used in this Section, the
following terms shall have the following meanings:
"Code" means the Internal Revenue Code
amended by all legislation, if any, enacted
the date of delivery of the Bonds to
purchaser(s).
of 1986, as
on or before
the initial
"Computation Date" has the meaning stated in Treas.
Reg. § 1.148-8T(b)(l).
"Gross Proceeds" has
Reg. § 1.148-8T(d).
"Investment" has the
Reg. § 1.148-8T(e).
"Nonpurpose Investment"
Gross Proceeds of the Bonds
acquired to carry out the
Bonds.
the meaning stated in Treas.
meaning stated in Treas.
means any Investment in which
are invested and which is not
governmental purpose of the
"Rebatable Arbitrage" has the meaning stated in
Treas. Reg. § 1.148-2T.
"Yield of"
(1) any Investment shall be computed in
accordance with Treas. Reg. §1.148-2T, and
(2) the Bonds has the meaning stated in Treas.
Reg. § 1.148-JT.
(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 Bond to become includable in the gross income, as defined
in section 61 of the Code, of the owner thereof for federal
income tax purposes. 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 exemption from
federal income tax of the interest on any Bond, the City shall
comply with each of the specific covenants in this Section.
-30-
•
(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 Bonds,
(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 Bonds and not use or permit the use of
such Gross Proceeds or any property acquired, constructed,
or improved with such Gross Proceeds (including all
contractual arrangements with terms different than those
applicable to the general public) 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
Bonds 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
g~neral 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 Bonds
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.
(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 Bonds, directly or indirectly
invest Gross Proceeds of the Bonds 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 Bonds.
-31-6391D
(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 Bonds 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 Bonds 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,
63980
(1) The City shall account for all Gross Proceeds of
the Bonds (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 Bonds until six years after the final Computation
Date. The City may, however, to the extent permitted by
section 148(f) of the Code and the regulations thereunder,
commingle Gross Proceeds of the Bonds 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. § 1.148-2T and rulings thereunder, the
Reba table Arbitrage with respect to the Bonds. The City
shall maintain such calculations with the official
transcript of the proceedings relating to the issuance of
the Bonds until six years after the final Computation
Date.
(3) As additional consideration for the purchase of
the Bonds 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
-32-
.............. ·
•
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-lT through 1.148-9T 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. § 1.148-1T(c)(2) and any penalty under Treas.
Reg. § 1.148-1T(c)(3)(ii)(B).
SECTION 30: Final Deposits; Governmental Obliga-
tions. (a) All or any of the Bonds shall be deemed to be paid,
retired and no longer outstanding within the meaning of this
Ordinance when payment of the principa 1 of I and redemption
premium, if any, on such Bonds, plus interest thereon to the
due date thereof (whether such due date be by reason of
maturity, upon redemption, or other otherwise) either (i) shall
have been made or caused to be made in accordance with the
terms thereof (including the giving of any required notice of
redemption) I or (ii) shall have been provided by irrevocably
depositing with, or making available to, the Paying Agent, in
trust and irrevocably set aside exclusively for such payment,
(1) money sufficient to make such payment or (2) Government
Obligations, certified by an independent public accounting firm
of national reputation, to mature as to principal and interest
in such amounts and at such times as will insure the
availability, without reinvestment, of sufficient money to make
such payment, and all necessary and proper fees, compensation
and expenses of the Paying Agent pertaining to the Bonds with
respect to which such deposit is made shall have been paid or
the payment thereof provided to the satisfaction of the Paying
Agent. At such time as a Bond shall be deemed to be paid
hereunder, as aforesaid, it shall no longer ·be secured by or
entitled to the benefit of this Ordinance or a lien on and
pledge of the Net Revenues of the System, and shall be entitled
to payment solely from such money or Government Obligations.
The term "Government Obligations," as used in this
Section, shall mean direct obligations of the United States of
America, including obligations the principal of and interest on
-33-
6398D
which are unconditionally guaranteed by the United States of
America, which may be United States Treasury obligations such
as its State and Local Government Series, and which may be in
book-entry form.
(b) That any moneys so deposited with the Paying
Agent may at the direction of the City also be invested in
Government Obligations, maturing in the amounts and times as
hereinbefore set forth, and all income from all Government
Obligations in the hands of the Paying Agent pursuant to this
Section which is not required for the payment of the Bonds, the
redemption premium, if any, and interest thereon, with respect
to which such money has been so deposited, shall be turned over
to the City or deposited as directed by the City.
(c) That the City covenants that no deposit will be
made or accepted under clause (a) (ii) of this Section and no
use made of any such deposit which would cause the Bonds to be
treated as arbitrage bonds within the meaning of section 148 of
the Internal Revenue Code of 1986, as amended.
(d) That notwithstanding any other provisions of
this Ordinance, all money or Government Obligations set aside
and held in trust pursuant to the provisions of this Section
for the payment of the Bonds, the redemption premium, if any,
and interest thereon, shall be applied to and used for the
payment thereof, the redemption premium, if any, and interest
thereon and the income on such money or Government Obligations
shall not be considered to be income or revenues of the System~
(e) The provisions of this Section and this
Ordinance are subject to the applicable unclaimed property laws
of the State of Texas.
SECTION 31: Notices to Holders-Waiver. Wherever
this Ordinance provides for notice to Bondholders 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 Bondholder as it appears in the Security Register.
In any case where notice to Bondholders is given ·by
mail, neither the failure to mail such notice to any particular
Bondholders, nor any defect in any notice so mailed, shall
affect the sufficiency of such notice with respect to all other
Bonds. Where this Ordinance provides for notice in any manner,
such notice may be waived in writing by the Bondholder 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 Bond-
-34-,3980
'
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 32: Damaged, Mutilated, Lost, Stolen, or
Destroyed Bonds. (a) Replacement Bonds. In the event any
outstanding Bond is damaged, mutilated, lost, stolen, or
destroyed, the Paying Agent/Registrar shall cause to be
printed, executed and delivered, a new bond of the same
principal amount, Stated Maturity, and interest rate, as the
damaged, mutilated, lost, stolen or destroyed Bond, in
replacement for such Bond in the manner hereinafter provided.
(b) Application for Replacement Bonds. Application
for replacement of damaged, mutilated, lost, stolen or
destroyed Bonds shall be made to the Paying Agent/Registrar.
In every case of loss, theft, or destruction of a Bond, the
applicant for a replacement bond shall furnish to the City and
to the Paying Agent/Registrar such security or indemnity as may
be required by them to save each of them harmless from any loss
or damage with respect thereto. Also, in every case of loss,
theft, or destruction of a Bond, the applicant shall furnish to
the City and to the Paying Agent/Registrar evidence to their
satisfaction of the loss, theft, or destruction of such Bond,
as the case may be. In every cause of damage or mutilation of
a Bond, the applicant shall surrender to the Paying
Agent/Registrar for cancellation the Bond so damaged or
mutilated.
(c) No Default Occurred. Notwithstanding the
foregoing provisions of this Section, in the event any such
Bond shall have matured, and no default has occurred which is
then continuing in the payment of the principal of or interest
on the Bond, the City may authorize the payment of the same
(without surrender thereof except in the case of a damaged or
mutilated Bond) instead of issuing replacement bond, provided
security or indemnity is furnished as above provided in this
Section.
(d) Charge for Issuing Replacement Bonds. Prior to
the issuance of any replacement bond, the Paying Agent/
Registrar shall charge the registered owner of such Bond with
all legal, printing and other expenses in connection
therewith. Every replacement bond issued pursuant to the
provisions of this Section by virtue of the fact that any Bond
is lost, stolen or destroyed shall constitute a contractual
obligation of the City whether or not the lost, stolen, or
destroyed Bond shall be found at any time, or be enforceable by
anyone, and shall be entitled to all the benefits of this
Ordinance equally and proportionately with any and all other
Bonds duly issued under this Ordinance.
-35-
639110
••. _ .... lllfltw.-.
I
(e) Authority for. Issuing Replacement Bonds. In
accordance with Section 6 of Vernon's Ann. Tex. Civ. St.
Article 717k-6, this Section of the Ordinance shall constitute
authority for the issuance of any such replacement bond without
necessity of further action by the governing body of the City
or any other body or person, and the duty of the replacement of
such bonds is hereby authorized and imposed upon the Paying
Agent/Registrar, and the Paying Agent/Registrar shall
authenticate and deliver such bonds in the form and manner and
with the effect, as provided in the Ordinance for Bonds issued
in conversion and exchange for other Bonds.
SECTION 33: Cancellation. All Bonds surrendered
for payment, redemption, transfer, exchange, or replacement, 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 Bonds previously
certified or registered and delivered which the City may have
acquired in any manner whatsoever, and all Bonds so delivered
shall be promptly cancelled by the Paying Agent/Registrar. All
cancelled Bonds held by the Paying Agent/Registrar shall be
disposed of as directed by the City.
SECTION 34: Confirmation of Sale. That sale of
the Bonds to at the price
of par, accrued interest, plus a premium of is hereby
confirmed. Delivery of the Bonds shall be made to said
purchasers as soon as may be practical after the adoption of
this Ordinance, upon payment therefor in accordance with the
notice of sale.
SECTION 35: Approval and Registration of Bonds. The
Mayor of said City is hereby authorized to have control of the
Bonds, including the Initial Bond(s), and all necessary records
and proceedings pertaining to said Bonds pending their delivery
and their investigation, examination and approval by the
Attorney. General of the State of Texas. Upon registration of
the Initial Bond(s), said Comptroller of Public Accounts (or a
deputy designated in writing to act for said Comptroller) shall
manually sign the Comptroller's Registration Certificate
prescribed herein to be printed and endorsed on the Initial
Bond(s), and the seal of said Comptroller shall be impressed,
or printed, or lithographed on said Initial Bond(s).
-36-
'3 9 a o
I ,,. .. • • •• • • ... · _ ..... ...._.
In addition, the Mayor, City Secretary, City Manager,
Assistant City Manager for Financial Services, and 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 Bonds, including a
certification as to facts, estimates, circumstances and
reasonable expectations pertaining to the use and expenditure
and investment of the proceeds of the Bonds as may be necessary
for the approva 1 of the Attorney General, registration by the
Comptroller of Public Accounts and delivery of the Bonds 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 Bond(s)
to the purchasers.
SECTION 36: Approval of Official Statement. That
the form and substance of the Official Statement dated April 1,
1991, and any addenda, supplement or amendment thereto (the
"Official Statement"), is hereby in all respects approved and
adopted by the City Council and the Mayor and the City
Secretary are hereby authorized and directed to execute the
same and deliver appropriate numbers of executed copies thereof
to the purchasers of the Bonds. Said Official Statement as
thus approved, executed and delivered, with such appropriate
variations as shall be approved by the City Manager and the
purchasers of the Bonds, may be used by said purchasers in the
public offering and sale thereof. The City Secretary is hereby
authorized and directed to include and maintain a copy of the
Official Statement and any addenda, supplement or amendment
thereto thus approved among the permanent records of this
meeting.
SECTION 37: Legal Opinion. That the purchasers•
obligation to accept delivery of the Bonds herein authorized is
subject to their being furnished a final legal op1n1on of
Messrs. Fulbright & Jaworksi, Attorneys, approving such Bonds
as to their validity, said opinion to be dated and delivered as
of the date of delivery and payment of such Bonds. Printing of
a true and correct copy of said opinion on the reverse side of
each of the Bonds, with an appropriate certificate pertaining
thereto, is hereby approved and authorized.
SECTION 38: CUSIP Numbers. CUSIP numbers may be
printed on the Bonds. It is expressly provided, however, that
the presence or absence of CUSIP numbers on the Bonds shall be
of no significance or effect as regards the legality thereof
and neither the City nor the attorneys approving said Bonds as
to legality are to be held responsible for CUSIP numbers
incorrectly printed on the Bonds.
-37-
63980
•
SECTION 39: 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 Bondholders, 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 Bondholders.
SECTION 40: 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 41: 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 42: Severability. If any prov1s1on 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 this governing body hereby declares
that this Ordinance would have been enacted without such
invalid provision.
SECTION 43: 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.
-38-6J91D
... -~-.
SECTION 44: Eff~ct1ve Date. · This ordinance shall
take effect and be in force immediately from and after its
passage on~second and final reading and IT IS SO ORDAINED.
PASSED AND APPROVED ON FIRST READING this the 25th day of
April, 1991.
PASSED AND APPROVED ON SECOND AND FINAL READING, this 26th
day of April, 1991.
CITY OF LUBBOCK, TEXAS
Mayor
ATTEST:
City Secretary
(City Seal)
-39-63910
,(
' .
SECTION 44: Effective Date. This ordinance shall
take effect and be in force immediately from and after its
passage on second and final reading and IT IS SO ORDAINED.
PASSED AND APPROVED ON FIRST READING this the 25th day of
April, 1991.
PASSED AND APPROVED ON SECOND AND FINAL READING, this 26th
day of April, 1991.
CITY OF LUBBOCK, TEXAS
' J J
J
-39-6:1'f8D
EXHIBIT Ll
PAYING AGENT/REGISTRAR AGREEMENT
THIS AGREEMENT entered into as of April 26, 1991 (this
"Agreement"), by and between the City of Lubbock, Texas (the
"Issuer"), and Texas Commerce Bank National Association,
Lubbock, 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, Electric Light &
Power System Revenue Bonds, Series 1991" (the "Securities") in
the aggregate principal amount of $7,500,000, 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 May 30, 1991; 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.
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:
647SD
"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 wi 11 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.
-2-
,4750
"Fiscal Year" means the fiscal year of the Issuer,
ending September 30.
"Holder" and "Security Holder" each means the Person
in whose name a Security is registered in the Security
Register.
"Issuer Request" and "Issuer Order" means a written
request or order signed in the name of the Issuer by the
Mayor, City Secretary, City Manager, or Assistant City
Manager for Financial Services, any one or more of said
officials, and delivered to the Bank.
"Legal Holiday" means a day on which the Bank is
required or authorized to be closed.
"Person" means any individual, corporation,
partnership, joint venture, association, joint stock
company, trust, unincorporated organization, or
government, or any agency or political subdivision of a
government.
"Predecessor Securities" of any particular Security
means every previous Security evidencing all or a portion
of the same obligation as that evidenced by such
particular Security (and, for the purposes of this
definition, any mutilated, lost, destroyed, or stolen
Security for which a replacement Security has been
registered and delivered in lieu thereof pursuant to
Section 4.06 hereof and the Resolution).
"Redemption Date" when used with respect to any Bond
to be redeemed means the date fixed for such redemption
pursuant to the terms of the Bond Resolution.
"Responsible Officer" when used with respect to the
Bank means the Chairman or Vice-Chairman of the Board of
Directors, the Chairman or Vice-Chairman of the Executive
Committee of the Board of Directors, the President, any
Vice President, the Secretary, any Assistant Secretary,
the Treasurer, any Assistant Treasurer, the Cashier, any
Assistant Cashier, · any Trust Officer or Assistant Trust
Officer, or any other officer of the Bank customarily
performing functions similar to those performed by any of
the above designated officers and also means, with
respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of his
knowledge of and familiarity with the particular subject.
"Security Register" means a register maintained by
the Bank on behalf of the Issuer providing for the
registration and transfer of Securities.
-3-
"Stated Maturity" means the date specified in the
Bond Resolution the principal of a Security is scheduled
to be due and payable.
Section 2.02. Other Definitions.
The terms "Bank," "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 5.05 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.
-4-
647SD
..
ARTICLE FOUR
REGISTRAR
Section 4.01. Security Register-Transfers and Exchanges.
The Bank agrees to keep and maintain for and on behalf of
the Issuer at the Bank Office books and records (herein
sometimes referred to as the "Security Register") for recording
the names and addresses of the Holders of the Securities, the
transfer, exchange, and replacement of the Securities and the
payment of the principal of and interest on the Securities to
the Holders and containing such other information as may be
reasonably required by the Issuer and subject to_ such
reasonable regulations as the Issuer and the Bank may
prescribe. All transfers, exchanges, and replacements of
Securities shall be noted in the Security Register.
Every Security surrendered for transfer or exchange shall
be duly endorsed or be accompanied by a -written instrument of
transfer, the signature on which has been guaranteed by an
officer of a federal or state bank or a member of the National
Association of Securities Dealers, such written instrument to
be in a form satisfactory to the Bank and duly executed by the
Holder thereof or his agent duly authorized in writing.
The Bank may request
feels necessary to effect
exchange of the Securities.
any supporting documentation
a re-registration, transfer,
it
or
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.
c-5-
Section 4.03. Form of the Security Register.
The Bank, as Registrar, will maintain the Security
Register relating to the registration, payment, transfer, and
exchange of the Securities in accordance with the Bank's
general practices and procedures in effect from time to time.
The Bank shall not be obligated to maintain such Security
Register in any form other than those which the Bank has
currently available and currently utilizes at the time.
The Security Register may be maintained in written form
or in any other form capable of being converted into written
form within a reasonable time.
Section 4.04. List of Security Holders.
The Bank will provide the Issuer at any time requested by
the Issuer, upon payment of the required fee, a copy of the
information contained in the Security Register. The Issuer may
also inspect the information contained in the Security Register
at any time the Bank is customarily open for business, provided
that reasonable time is allowed the Bank to provide an
up-to-date listing or to convert the information into written
form.
The Bank will not release or disclose the contents of the
Security Register to any person other than to, or at the
written request of, an authorized officer or employee of the
Issuer, except upon receipt of a court order or as otherwise
required by law. Upon receipt of a court order and prior to
the release or disclosure of the contents of the Security
Register, the Bank will notify the Issuer so that the Issuer
may contest the ·court order or such release or disclosure of
the contents of the Security Register.
Section 4.05. Return of Cancelled Securities.
The Bank will, at such reasonable intervals as it
determines, surrender to the Issuer, Securities in lieu o~
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 32 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.
-6-
647SO
In case any Security shall be mutilated, destroyed, lost,
or stolen, the Bank, in its discretion, may execute and deliver
a replacement Security of like form and tenor, and in the same
denomination and bearing a number not contemporaneously
outstanding, in exchange and substitution for such mutilated
Security, or in lieu of and in substitution for such destroyed,
lost, or stolen Security, only upon (i) the filing by the
Holder thereof with the Bank of evidence satisfactory to the
Bank of the destruction, loss, or theft of such Security, and
of the authenticity of the ownership thereof and (ii) the
furnishing to the Bank of indemnification in an amount
satisfactory to hold the Issuer and the Bank harmless. All
expenses and charges associated with such indemnity and with
the preparation, execution, and delivery of a replacement
Security shall be borne by the Holder of the Security
mutilated, destroyed, lost, or stolen.
Section 4.07. Transaction Information to the Issuer.
The Bank will, within a reasonable time after receipt of
written request from the Issuer, furnish the Issuer information
as to the Securities it has paid pursuant to Section 3.01
hereof, Securities it has delivered upon the transfer or
exchange of any Securities pursuant to Section 4.01 hereof, and
Securities it has delivered in exchange for or in lieu of
mutilated, destroyed, lost, or stolen Securities pursuant to
Section 4.06 hereof.
ARTICLE FIVE
THE BANK
Section 5.01. Duties of the Bank.
The Bank undertakes to perform the duties set forth
herein and agrees to use reasonable care in the performance
thereof.
Section 5.02. Reliance on the Documents, Etc.
(a) The Bank may conclusively rely, as to the truth of
the statements and correctness of the opinions expressed
therein, on certificates or opinions ftirnished tb ·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.
-7-
647SD
I
(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 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
and in the Securities shall be taken as the statements
Issuer, and the Bank assumes no responsiblity for
correctness.
Issuer
of the
their
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.
-8-~47SD
Section 5.05. ~M~o~n~e~y~s~H~e~l~d~b~Y~--~t~h~e-=B~a~n~k~------~S~e~p~a~r~a~t~e
Account/Collateralization.
A separate account shall at all times be kept and
maintained by the Bank for the receipt, 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. Payment~ made
from such account shall be made by check drawn on such account
unless the owner of such Securities shall, at its own expense
and risk, request such other medium of payment.
The Bank shall be under no liability for interest on any
money received by it hereunder.
Subject to the applicable unclaimed property laws of the
State of Texas, any money deposited with the Bank for the
payment of the principal, premium (if any), or interest on any
Security and remaining unclaimed for four years after final
maturity of the Security has become due and payable will be
paid by the Bank to the Issuer, and the Holder of such
Security shall thereafter look only to the Issuer for payment
thereof, and all liability of the Bank with respect to such
moneys shall thereupon cease.
Section 5.06. Indemnification.
To the extent permitted by law, the Issuer agrees to
indemnify the Bank for, and hold it harmless against, any loss,
liability, or expense incurred without negligence or bad faith
on its part, arising out of or in connection with its
acceptance or administration of its duties hereunder, including
the cost and expense against any claim or liability in
connection with the exercise or performance of any of its
powers or duties under this Agreement.
Sectio.n 5. 07. Interplead.er.
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
-9-
6 4 7 5 D
•
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. DT Services.
It is hereby represented and warranted that, in the event
the Securities are otherwise qualified and accepted for
"Depository Trust Company" services or equivalent depository
trust services by other organizations, the Bank has the
capability and, to the extent within its control, will Gomply
with the "Operational Arrangements", effective August 1, 1987,
which establishes requirements for securities to be eligible
for such type depository trust services, including, but not
limited to, requirements for the timeliness of payments and
funds availability, transfer turnaround time, and notification
of redemptions and calls.
ARTICLE SIX
MISCELLANEOUS PROVISIONS
Section 6.01. Amendment.
This Agreement may be amended only by an agreement in
writing signed by both of the parties hereto.
Section 6.02. Assignment.
This Agreement may not be assigned by either party
without the prior written consent of the other.
Section 6.03. Notices.
Any request, demand, authorization, direction, notice,
consent, waiver, or other document provided or permitted hereby
to be given or furnished to the Issuer or the Bank shall be
mailed or delivered to the Is.suer 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.
-10-6 4 1 S D
..
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 6.08. Entire Agreement.
This Agreement and the Bond Resolution constitute the
entire agreement between the parties hereto relative to the
Bank acting as Paying Agent/Registrar and if any conflict
exists between this Agreement and the Bond Resolution, the Bond
Resolution shall govern.
Section 6.09. Counterparts.
This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and all
of which shall constitute one and the same Agreement.
Section 6.10. Termination.
This Agreement will terminate (i) on the date of final
payment of the principal of and interest on the Securities to
the Holders thereof or (ii) may be earlier terminated by either
party upon sixty (60) days written notice; provided, however,
an early termination of this Agreement by either party shall
not be effective until (a) a successor Paying Agent/Registrar
has been appointed by the Issuer and such appointment accepted
and (b) notice given to the Holders of the Securities of the
appointment of a successor Paying Agent/Registrar.
Furthermore, the Bank and the Issuer mutually agree that the
effective date of an early termination of this Agreement shall
not occur at any time which would· disrupt~ delay, or otherwise
adversely affect the payment of the Securities.
Upon an early termination of this Agreement, the Bank
agrees to promptly transfer and deliver the Security Register
(or a copy thereof), together with other pertinent books and
records relating to the Securities, to the successor Paying
Agent/Registrar designated and appointed by the Issuer.
-11-
641750
'
The provisions of Section 1.02 and of Article Five shall
survive and remain in full force and effect following the
termination of this Agreement.
Section 6.11. Governing Law.
This Agreement shall be construed in accordance with and
governed by the laws of the State of Texas.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the day and year first above written.
[SEAL]
Attest:
City Secretary
(SEAL)
ATTEST:
Title:
CITY OF LUBBOCK, TEXAS
BY ~---------------------------Mayor
Address:
P. 0. Box 2000
Lubbock, Texas 79457
TEXAS COMMERCE BANK
NATIONAL ASSOCIATION
Lubbock, Texas
BY ------------------------------
Mailing Address:
P. o. Box 841
Lubbock, Texas 7940~
Delivery Address:
1314 Avenue K
·Lubbock; Texas 7940·1
-12-
'
The Depository Trust Company
55 Water Street
New York, NY 10041
Attention: General Counsel's Office
Letter of Representations
TO BE COMPLETED BY ISSUER AND AGENT. IF ANY
City of Lubbock. Texas
S•m~ !)( bsuer
Texas Commerce Bank National Association
Re: $7.500,000 "City of Lubbock, Texas, Electric Light and
Power System Revenue Bonds. Series 1991"
Gentlemen: (Issue Oegnplion]
EXHIBIT i
April 26, 1991
(Oalel
The purpose of this letter is to set out certain matters relating to the abo\'e-referenced Bonds (the "Bonds"). National Association
Texas Commerce Bank/ is acting as Trustee, Paying Agent, Fiscal Agent, or other Agent of the Issuer \\ith
(the •Agent1
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 as of May 15 , 19 91 (the "Document(sn.
-----------is distributing the Bonds through The Depository Trust Company ("DTC").
(the "UI'Iderwnter1
To induce OTC to accept the Bonds as eligible for deposit at DTC and act in accordance with its Rules with respect
to the Bonds, the Issuer and the Agent, if any, make the following representations to DTC:
1. Subsequent to Clo~ing on the Bonds on May 30 , 19 91 , there shall be deposited with DTC
one Bond certificate in registered form registered in the name of DTC's nominee, Cede & Co:, for each stated maturity
of the Bonds in the face 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 $100,000,000, one
certificate will be issued with respect to each $100,000,000 of principal amount and an additional certificate will be
issued with respect to any remaining principal amount. Each $100,000,000 Bond certificate shall bear the following
legend:
""Unless this certificate is presented by an authorized representative of The Depository Trust Company to the
Issuer or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name
of Cede & Co. or such other name as requested by an authorized representative of The Depository Trust Company and
any payment is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof, Cede & Co., has an interest
herein."
I
2. (n the event of any solicitation of consents from and voting by hold~rs of the Bonds, the Issuer or Agent, shall
~tablish a record date for such purposes .md give DTC notice of such record d.ltc not 1\.'SS than 15 calendar days in
01dvance of such record date to the ~:dent possible.
3. In the event of a redemption or any other similar transaction resulting in retirement of all Bonds outstanding or a
reduction in aggregate principal amount of Bonds outstanding ("full or partial redemption") or an advance refunding
of all or part of the Bonds outstanding, the Issuer or Agent, shall give OTC notice of such event 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 the proceeds are
deposited in escrow.
4. In the event of a partial redemption or an advance refunding of part of the Bonds outstanding, the Issuer or Agent
shall send DTC a notice specifying: 1) the amount of the redemption or refunding; 2) in the case of a refunding, the
maturity date(s) established under the refunding; and J) the date such notice is to be mailed to Bondholders or
published ("the Publication Date"). Such notice shall be sent to DTC by a secure means (e.g., legible facsimile
transmission, registered or certified mail, overnight express 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. The
Issuer or Agent will forward such notice either in a separate secure transmission for each CUSIP number or in a secure
transmission fo~ multiple CUSIP numbers which includes a manifest or list of each CUSIP submitted in that
transmission. <The Issuer or Agent sending such notice shall have a method to verify subsequently the use of such
means and timeliness of the notice.) The 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 the proceeds are deposited in escrow.
5. In the event of an invitation to tender the Bonds, notice to Bondholders by the Issuer or Agent, specifying the
tenns of the tender and the date such notice is to be mailed to Bondholders or published ("the Publication Date") shalt
be sent to DTC by a secure means (e.g., legible facsimile transmission, registered or certified mail, overnight express
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. (The Issuer or Agent sending such notice shalt have a
method to verify subsequently the use of such means and timeliness of the notice.)
6. A It notices and payment ad vices sent to DTC shall contain the CUSIP number of the Bonds.
7. Notices to DTC by facsimile transmission shalt be sent to DTC's Call Notification Department at (516) 227-4039 or
(516) 227-4190. The Agent shall confirm DTC's receipt of such facsimile transmission by telephoning the Call
Notification Department at (516) 227-1070. Notices to DTC by mail or any other means shall be sent to:
The Depository Trust Company
Call Notification Department
Muni Reorganization Manager
711 Stewart Avenue
Garden City, NY 11530
8. Interest payments shall be received by Cede &: Co., as nominee of DTC, or its registered assigns in next-day funds
on each payment date (or the equivalent in accordance with existing arrangements between the Issuer or Agent and
OTC). Such payments shall be made payable to the order of Cede&: Co.
9. Payments of principal shall be received by Cede & Co., as nominee of DTC, or its registered assigns in next-day
funds on each payment date. Principal payments shall be made payable to the order of Cede&: Co., and shall be
addressed as foiJows:
The Depository Trust Company
Muni Redemption Department
55 Water Street·50th Aoor
New York, NY 10041
Attention: Collection Supervisor
10. DTC may direct the Issuer or Agent to use any other telephone number for facsimile transmission, address, or
department of OTC as the number, address or department to which payments of interest or principal or notices may be sent.
11. In the event of a redemption, acceleration or any other similar transaction (e.g., tenders made and accepted in
response to the [ssuer's or Agent's invitation) necessitating a reduction in aggregate principal amount of Bonds
outstanding or an advance refunding of part of the Bonds outstanding, DTC. in its discretion, (a) may request the
Issuer or Agent to issue and authenticate a new Bond certificate or (b) shall make an appropriate notation on the Bond
certificate indicating the date and amounts of such reduction in principal, except in the case of final maturity, in which
case the certificate must be presented to the Issuer or Agent prior to payment.
12. In the event the Issuer determines pursuant to the Document(s) that beneficial owners of the Bonds shall be able
to obtain certificated Bonds, the Issuer or Agent shall notify DTC of the availability of Bond certificates and shall issue,
transfer and exchange Bond certificates in appropriate amounts as required by ore and others.
13. DTC may determine to discontinue providing its service as securities depository with respect to the Bonds at any
time by giving reasonable notice to the Issue or Agent (at which time DTC will confirm with the Issuer or Agent the
aggregate principal amount of the Bonds outstanding) and discharging its responsibilities with respect thereto under
applicable law. Under such circumstances, whene\'er ore requests the Issuer and the Agent to do so, the Agent and
the Issuer will cooperate with ore in taking appropriate action to make available one or more separate certificates
evidencing the Bonds to any DTC Participant ha\'ing Bonds credited to its DTC account.
14. Nothing herein shall be deemed to require the Agent to advance funds on behalf of the Issuer.
Noles:
a. If lhere is no organization acting as Agent for the Issuer. and
an obr!Qations in this Letter of Representations are to be assumed
solely by the Issuer. references to such Agent may be inked out.
b. Neither DTC nor (Cede & Co.) provides consents with resped
to any security. Under its usual procedures. DTC mails an
Omnibus Proxy to the Issuer as soon as possible after the record
date. The Omnibus Proxy assigns Cede & Co.'s voting riQhts to
those Pal'licipants having the security credited to their accounts on
the record date (identified in a listing attached to the Omnibus
Proxy). The requirement to ac:Mse OTC of the record date for the
solicitation of consents is set forth it\ paragraph 2 of the letter.
c. Under Rules of the Municipal Securities Rutemaking Board
relating to •good derrvery; a municipal securities dealer must be
able to determine the date that a notice of partial call or of an
advance refunding of part of an issue is published (the "Publication
Date1. The establishment of such a Pubrution Date is addressed
in paragraph 4 of the letter.
Received and Accepted:
THE DEPOSITORY TRUST COMPANY
BY.------------------------------(Authori..ltftl Officer's Sign• turd
cc: Underwriter
Underwriter's Counsel
Very truly yours,
Texas Commerce Bank National Association
IAuthonzrd Offict'f"s Sigrwlu~l
City of Lubbock, Texas · ·
l.u lt5Ut'l't
!Authorized Olflct'f'S Signatu~)
Mayor
c
SCHEDULE A
Year of Principal Interest
Stated Maturity Amount Rate
1992 $375,000 \
1993. 375,000 --\
1994 375,000 --\
1995 375,000 ---\
1996 375,000 --\
1997 375,000 --\
1998 375,000 -\
1999 375,000 --%
2000 375,000 _%
2001 375,000 %
2002 375,000 --% -2003 375,000 %
2004 375,000 --% --2005 375,000 %
2006 375,000 --%
2007 375,000 --, -2008. 375,000 \
2009 375,000 --% --2010 375,000 %
2011 375,000 \
PAYING AGENT/REGISTRAR AGREEMENT
THIS AGREEMENT entered into as of April 26, 1991 (this
"Agreement"), by and between the City of Lubbock, Texas (the
"Issuer"), and Texas Commerce Bank National Association,
Lubbock, 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, Electric Light &
Power System Revenue Bonds, Series 1991" (the "Securities") in
the aggregate principal amount of $7,500,000, 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 May 30, 1991; 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 uwners 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.
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:
64750
"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.
-2-
••
647SD
"Fiscal Year" means the fiscal year of the Issuer,
ending September 30.
"Holder" and "Security Holder" each means the Person
in whose name a Security is registered in the Security
Register.
"Issuer Request" and "Issuer Order" means a written
request or order signed in the name of the Issuer by the
Mayor, City Secretary, City Manager, or Assistant City
Manager for Financial Services, any one or more of said
officials, and delivered to the Bank.
"Legal Holiday" means a day on which the Bank is
required or authorized to be closed.
"Person" means any individual, corporation,
partnership, joint venture, association, joint stock
company, trust, unincorporated organization, or
government, or any agency or political subdivision of a
government.
"Predecessor Securities" of any particular Security
means every previous Security evidencing all or a portion
of the same obligation as that evidenced by such
particular Security (and, for the purposes of this
definition, any mutilated, lost, destroyed, or stolen
Security for which a replacement Security has been
registered and delivered in lieu thereof pursuant to
Section 4.06 hereof and the Resolution).
"Redemption Date" when used with respect to any Bond
to be redeemed means the date fixed for such redemption
pursuant to the terms of the Bond Resolution.
"Responsible Officer" when used with respect to the
Bank means the Chairman or Vice-Chairman of the Board of
Directors, the Chairman or Vice-Chairman of the Executive
Committee of the Board of Directors, the President, any
Vice President, the Secretary, any Assistant Secretary,
the Treasurer, any Assistant Treasurer, the Cashier, any
Assistant Cashier, any Trust Officer or Assistant Trust
Officer, or any other officer of the Bank customarily
performing functions similar to those performed by any of
the above designated officers and also means, with
respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of his
knowledge of and familiarity with the particular subject.
"Security Register" means a register maintained by
the Bank on behalf of the Issuer providing for the
registration and transfer of Securities.
-3-
..
. ·
"Stated Maturity" means the date specified in the
Bond Resolution the principal of a Security is scheduled
to be due and payable.
Section 2.02. Other Definitions.
The terms "Bank," "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 5.05 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 wrl.ting 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.
-4-647$0
..
..
ARTICLE FOUR
REGISTRAR
Section 4.01. Security Register-Transfers and Exchanges.
The Bank agrees to keep and maintain for and on behalf of
the Issuer at the Bank Office books and records (herein
sometimes referred to as the "Security Register'') for recording
the names and addresses of the Holders of the Securities, the
transfer, exchange, and replacement of the Securities and the
payment of the pr incipa 1 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
feels necessary to effect
exchange of the Securities.
any supporting documentation
a re-registration, transfer,
it
or
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.
-5-64750
..
Section 4.03. Form of the Security Register.
The Bank, as Registrar, will maintain the Security
Register relating to the registration, payment, transfer, and
exchange of the Securities in accordance with the Bank's
general practices and procedures in effect from time to time.
The Bank shall not be obligated to maintain such Security
Register in any form other than those which the Bank has
currently available and currently utilizes at the time.
The Security Register may be maintained in written form
or in any other form capable of being converted into written
form within a reasonable time.
Section 4.04. List of Security Holders.
The Bank will provide the Issuer at any time requested by
the Issuer, upon payment of the required fee, a copy of the
information contained in the Security Register. The Issuer may
also inspect the information contained in the Security Register
at any time the Bank is customarily open for business, provided
that reasonable time is allowed the Bank to provide an
up-to-date listing or to convert the information into written
form.
The Bank will not release or disclose the contents of the
Security Register to any person other than to, or at the
written request of, an authorized officer or employee of the
Issuer, except upon receipt of a court order or as otherwise
-required by law. Upon receipt of a court order and prior to
the release or disclosure of the contents of the Security
Register, the Bank will notify the Issuer so that the Issuer
may contest the court order or such release or disclosure of
the contents of the Security Register.
Section 4.05. Return of Cancelled Securities.
The Bank will, at such reasonable intervals as it
determines, surrender to the Issuer, Securities in lieu of
which or in exchange for which other Securities have been
issued, or which have been paid.
Section 4.06. Mutilated, Destroyed,
Securities.
Lost, or Stolen
The Issuer hereby instructs the Bank, subject to the
provisions of Section 32 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.
-6-647SD
..
In case any Security shall be mutilated, destroyed, lost,
or stolen, the Bank, in its discretion, may execute and deliver
a replacement Security of like form and tenor, and in the same
denomination and bearing a number not contemporaneously
outstanding, in exchange and substitution for such mutilated
Security, or in lieu of and in substitution for such destroyed,
lost, or stolen Security, only upon (i) the filing by the
Holder thereof with the Bank of evidence satisfactory to the
Bank of the destruction, loss, or theft of such Security, and
of the authenticity of the ownership thereof and (ii) the
furnishing to the Bank of indemnification in an amount
satisfactory to hold the Issuer and the Bank harmless. All
expenses and charges associated with such indemnity and with
the preparation, execution, and delivery of a replacement
Security shall be borne by the Holder of the Security
mutilated, destroyed, lost, or stolen.
Section 4.07. Transaction Information to the Issuer.
The Bank will, within a reasonable time after receipt of
written request from the Issuer, furnish the Issuer information
as to the Securities it has paid pursuant to Section 3.01
hereof, Securities it has delivered upon the transfer or
exchange of any Securities pursuant to Section 4.01 hereof, and
Securities it has delivered in exchange for or in lieu of
mutilated, destroyed, lost, or stolen Securities pursuant to
Section 4.06 hereof.
ARTICLE FIVE
THE BANK
Section 5.01. Duties of the Bank.
The Bank undertakes to perform the duties set forth
herein and agrees to use reasonable care in the performance
thereof.
Section 5.02. Reliance on the Documents, Etc.
(a) The Bank may conclusively rely, as to the truth of
the statements and correctness of the opinions expressed
therein, on certificates or opinions furnished to the Bank.
(b) The Bank shall not be liable for any error of
judgment made in good faith by a Responsible Officer, unless it
shall be proved that the Bank was negligent in ascertaining the
pertinent facts.
-7-
6475D
..
(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 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 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.
-8-
64750
Section 5.05. Moneys Held by the Bank Separate Account/Collateraliza~t~i~o-n~.~~-==-~----~~~~~---------=~~~~
A separate account shall at all times be kept and
maintained by the Bank for the receipt, safekeeping and
disbursement of moneys received from the Issuer hereunder for
the payment of the Securities, and money deposited to the
credit of such account until paid to the Holders of the
Securities shall be continuously collaterialized by securities
or obligations which qualify and are eligible under the laws of
the State of Texas to secure and be pledged as collateral for
accounts of the Issuer to the extent such money is not insured
by the Federal Deposit Insurance Corporation. Payments made
from such account shall be made by check drawn on such account
unless the owner of such Securities shall, at its own expense
and risk, request such other medium of payment.
The Bank shall be under no liability for interest on any
money received by it hereunder.
Subject to the applicable unclaimed property laws of the
State of Texas, any money deposited with the Bank for the
payment of the principal, premium (if any), or interest on any
Security and remaining unclaimed for four years after final
maturity of the Security has become due and payable will be
paid by the Bank to the Issuer, and the Holder of such
Security shall thereafter look only to the Issuer for payment
thereof, and all liability of the Bank with respect to such
moneys shall thereupon cease.
Section 5.06. Indemnification.
To the extent permitted by law, the Issuer agrees to
indemnify the Bank for, and hold it harmless against, any loss,
liability, or expense incurred without negligence or bad faith
on its part, arising out of or in connection with its
acceptance or administration of its duties hereunder, including
the cost and expense against any claim or liability in
connection with the exercise or performance of any of its
powers or duties under this Agreement.
Section 5.07. Interpleader.
The Issuer and the Bank agree that the Bank may seek
adjudication of any adverse claim, demand, or controversy over
its person as well as funds on deposit, in either a Federal or
State District Court located in the state and county where
either the Bank Office or the administrative office of the
Issuer is located, and agree that service of process by
certified or registered mail, return receipt requested, to the
-9-
64750
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. DT Services ..
It is hereby represented and warranted that, in the event
the Securities are otherwise qualified and accepted for
"Depository Trust Company" services or equivalent depository
trust services by other organizations, the Bank has the
capability and, to the extent within its control, will comply
with the "Operational Arrangements", effective August 1, 1987,
which establishes requirements for securities to be eligible
for such type depository trust services, including, but not
limited to, requirements for the timeliness of payments and
funds availability, transfer turnaround time, and notification
of redemptions and calls.
ARTICLE SIX
MISCELLANEOUS PROVISIONS
Section 6.01. Amendment.
This Agreement may be amended only by an agreement in
writing signed by both of the parties hereto.
Section 6.02. Assignment.
This Agreement may not be assigned by either party
without the prior written consent of the other.
Section 6.03. Notices.
Any request, demand, authorization, direction, notice,
consent, waiver, or other document provided or permitted hereby
to be given or furnished to the Issuer or the Bank shall be
mailed or delivered to the Issuer or the Bank, respectively, at
the addresses shown on page 12 of this Agreement.
Section 6.04. Effect of Headings.
The Article and Section headings herein are for
convenience only and shall not affect the construction hereof.
Section 6.05. Successors and Assigns.
All covenants and agreements herein by the Issuer shall
bind its successors and assigns, whether so expressed or not.
-10-
64750
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 6.08. Entire Agreement.
This Agreement and the Bond Resolution constitute the
entire agreement between the parties hereto relative to the
Bank acting as Paying Agent/Registrar and if any conflict
exists between this Agreement and the Bond Resolution, the Bond
Resolution shall govern.
Section 6.09. Counterparts.
This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and all
of which shall constitute one and the same Agreement.
Section 6.10. Termination.
This Agreement wi 11 terminate ( i) on the date of fina 1
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 unti 1 (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.
-11-
64750
The provisions of Section 1.02 and of Article Five shall
survive and remain in full force and effect following the
termination of this Agreement.
Section 6.11. Governing Law.
This Agreement shall be construed in accordance with and
governed by the laws of the State of Texas.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the day and year first above written.
[SEAL}-
(SEAL)
ATTEST:
647SO
CITY OF LUBBOCK, TEXAS
Address:
P. 0. Box 2000
Lubbock, Texas 79457
TEXAS COMMERCE BANK
NATIONAL ASSOCIATION
Lubbock, Texas
s .
Mailing Address:
P. o. Box 841
Lubbock, Texas 79408
Delivery Address:
1314 Avenue K
Lubbock, Texas 79401
-12-
"B" PAYING AGENT SERVICES PROPOSAL RESPONSE FORM
FEE SCHEDULE
BOND REGISTRAR, TRANSFER AGENT, AND
PAYING AGENT-BOOK-ENTRY-ONLY
BANK NAME: TEXAS COMMERCE BANK NA LUBBOCK
OFFICIAL SUBMITIING:
OFFICIAL SIGNATURE:
TITLE OF OFFICIAL: ASSISTANT VP & TRUST OFFICER
TELEPHONE NUMBER: (806) 742-8511
ACCOUNT MAINTENANCE .Per Accunt
Annual minimum
INTEREST PAYMENTS
Payment of Interest per interest payment date
Each additional ck over 50
PRINCIPAL PAYMENTS
Payment of registered bond at maturity or by call
OTHER ITEMIZED SERVICES, AS SUGGESTED BY BIDDING BANK:
Acceptance
Issuance of 1099s on taxable issue
Annual m1n1mum for up to 100
\ \
$ 1.00 Ioo.oo
$ 75.00
1.00
$ 5.00
$500.00
$100.00
I_
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
GENERAL CERTIFICATE
§
§
§
§
§
We, the undersigned, Mayor, City Secretary, and
Assistant City Manager for Financial Services, respectively, of
the City of Lubbock, Texas, DO HEREBY CERTIFY as follows:
1. Relative to No-Default.
That the City of Lubbock, Texas, is not in default as to
any covenant, condition or obligation contained in the
ordinances authorizing the issuance of City of Lubbock, Texas,
Electric Light and Power System Revenue Bonds, Series 1973,
dated July 15, 1973; Series 1975, dated March 15, 1975; Series
1975-A, dated September 15, 1975; Series 1976, dated Apri 1 15,
1976; Series 1984, dated April 15, 1984; Series 1987 dated
April 15, 1987 and Series 1988 dated Apri 1 15, 1988; and City
of Lubbock, Texas, Electric Light and Power System Refunding
Revenue Bonds, Series 1983, dated May 15, 1983; and that there
is on hand in the Special Electric Ligh~ and Power System
Revenue Bond Retirement and Reserve Fund pertaining to the
aforesaid obligations the sum of $6,236,970, of which amount
the sum of $3,811,807 represents the reserve portion thereof.
2. Relative to Nonencumbrance.
Save and except for the pledge of the income and
revenues of the City's Electric Light and Power System to the
payment of principal and interest to become due with respect to
the outstanding and unpaid "City of Lubbock, Texas, Electric
Light and Power System Revenue Bonds, Series 1973" dated July
15, 1973, currently outstanding in the principal amount of
$900,000; "City of Lubbock, Texas, Electric Light and Power
System Revenue Bonds, Series 1975" dated March 15, 1975,
currently outstanding in the principa 1 amount of $1,280, 000;
"City of Lubbock, Texas, Electric Light and Power System
Revenue Bonds, Series 1975-A" dated September 15, 1975,
currently outstanding in the principal amount of $500,000;
"City of Lubbock, Texas, Electric Light and Power System
Revenue Bonds, Series 1976" dated April 15, 1976, currently
outstanding in the principal amount of $1,320,000; "City of
Lubbock, Texas, Electric Light and Power System Refunding
Revenue Bonds, Series 1983" dated May 15, 1983, currently
outstanding in the principal amount of $5,545,000; "City of
Lubbock, Texas, Electric Light and Power System Revenue Bonds,
Series 1984" dated April 15, 1984, currently outstanding in the
principal amount of $6,500,000; "City of Lubbock, Texas,
Electric Light and Power System Revenue Bonds, Series 1987"
dated April 15, 1987, currently outstanding in the principal
amount of $5,600,000; "City of Lubbock, Texas, Electric Light
and Power System Revenue Bonds, Series 1988" dated May 15,
1988, currently outstanding in the principal amount of
$14,450,000; and the proposed "City of Lubbock, Texas Electric
Light and Power System Revenue Bonds, Series 1991" dated May
15, 1991 to be issued in the principal amount of $7,500,000,
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 evidence the only liens, encumbrances
or indebtedness of said System or against the income and
revenues of such System.
3. Relative to No Petition.
No petition, signed by 10\ of the qualified
voters of the City, has been presented to the office of the
City Secretary or other officials of the City protesting the
issuance of the proposed "City of Lubbock, Texas, Electric
Light and Power System Revenue Bonds, Series 1991" dated
May 15, 1991.
4. Relative to Income and Revenues.
The following is a schedule of the
operating expenses and net revenues of the
Light and Power System for the years stated:
Fiscal Year
Ending 9-30
1986
1987
1988
1989
1990
Gross
Receipts
$45,862,720
45,317,674
51,732,564
53,088,408
52,197,792
Operating
Expenses
$33,391,266
32,649,325
31,928,152
34,442,694
33,730,001
5. Relative to Utility Properties.
gross receipts,
City's Electric
Net
Revenues
$12,471,454
12,668,349
19,804,412
18,645,714
18,467,791
The electric light and power utility properties owned,
operated and maintained by the City currently provides
electricity to approximately 45,114 customers.
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.
-2-
64780
6. Relative to Rates and Charges.
The current monthly rates and charges for services
provided by the City's Electric Light and Power System are as
shown in Exhibit A attached hereto and incorporated herein by
reference and made a part of this certificate for all purposes.
7. Relative to City Officials.
Certain duly qualified and acting officials of the City
are as follows:
B.C. McMINN
LARRY J. CUNNINGHAM
J. ROBERT MASSENGALE
RANETTE BOYD
MAYOR
CITY MANAGER
ASSISTANT CITY MANAGER FOR
FINANCIAL SERVICES -CITY
TREASURER
CITY SECRETARY
8. Relative to Interest Earnings.
That interest earnings on proceeds from the sale of
$7,500,000 "City of Lubbock, Texas, Electric Light and Power
System Revenue Bonds, Series 1991" will be deposited to the
Bond Fund reaffirmed 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.
9. Relative to Incorporation.
That the City of Lubbock, Texas, is incorporated under
the general laws of the State of Texas and is operating under
the Home Rule Amendment to the Texas Constitution, Section 5,
Article XI, as amended in 1912; that the City Charter was
adopted at an election held for that purpose on the 27th day of
December, 1917, and said Charter has not been amended or
revised in any respect since May 7, 1988, the date of the last
Charter Amendment election.
-3-6 4 18 D
WITNESS O~~ANDS AND THE SEAL OF THE CITY OF LUBBOCK,
TEXAS, this the 7day of April, 1991.
"
(City Seal)
64780
Lubbock, Texas
~~tiof
-4-
Lubbock, Texas
Assist~r
for Financial Services
City of Lubbock, Texas
ELECTRIC RATES
Electric rates in the Cily are set by City Council Ordinance and are the same for LP&L and Southwestern
Public Service except for church, school and municipal rates and minor variations in billing policies, and
South Plains Electric Cooperative customers. Current rates became effective June 1, 1919, (previous
rates were effective April I, 19&1); on April 2, 1990, LP&L also significantly lowered its fuel cost factors.
The 6·1-1919 rates were a reduction of approximately I.U% and the revised fuel cost factors lowered
costs to the consumer by approximately 996. Current rates and previous rates are compared in the rate
structuru shown below. The territory for all rates is Lubbock, Texas.
Rates for Service Furnished in City ••• Rates to be charged for electric service furnished within the City
shall be in accordance with orders or resolutions of the City Council establishing such rates for all persons
engaged in furnishing such electric power service to the public including electric power furnished by the
City's electric power company. Said orders and resolutions establishing rates shall be kept available for
public inspection.
Fuel Cost Recovery
The charge per kilowatt hour shall be increased by a fuel factor per kilowatt hour as provided in current
Southwestern Public Service Tariff 7100 (Public Utility Commission of Texas sheet IV -69). The fuel
factor remains constant for approximately one year. At this time the fuel factor is $0.020636/kWh. All
rates shown below are subject to fuel cost recovery.
Tax Adjustment
Billings under these schedules may be increased by an amount equal to the sum of the taxes payable under
federal, state and local sales tax acts, and of all additional taxes, fees, or charges (exclusive of ad
valorem, state and federal income taxes), payable by the utility and levied or assessed by any
governmental authority on the public utility services rendered, or on the right or privilege of rendering
the service, or on any object or event incidental to the rendition of service, as the result of any new or
amended laws after June 30, 19". All rates shown below are subject to tax adjustment where applicable.
Residential Service
Applicable: To residential customers for electric service used for domestic purposes in private residences
and separately metered individual apartments. Single phase motors not to exceed 10 horsepower,
individual capacity, may be served under this rate.
Service Availability Charge
All kWh per month
Previous Rate
$.S.OO per month
3.91¢ per kWh
Electric Living Service
Current Rate $ff ,(;6 per month
3.9)¢ per kWh
Water Heating*; When customer has ln regular use a permanently installed 240 volt, 30 gallon or greater,
storage type water heater of not &reater than .S • .S kilowatts, individual rated caF.city, the first .SOO kWh
will be billed at the regular rate, the next .SOO kWh at l • .s&c per kWh, and all additional kWh at the regular
rate.
All-Electric Space Heating*; When customer has in regular use permanently installed space heating
equipment of an aggregate rated capacity of 3 kilowatts or more, excluding bathroom heaters, billing
during the winter months will be the first .SOO kWh at the regular rate, and all additional kWh at .&6¢ per
kWh. When customer has water heating in combination with all-electric space heating, the first .SOO kWh
will be billed at the regular rate, the next .SOO kWh at l.,ac per kWh and all additional kWh at .16¢ per
kWh.
~HIBIT A
~J~'
Add-On Heat Pump•: \l'hcn custorner has in regular use a permanently installed heat pump used as the
prirnary he<~t source for the entire residence in conjunction with a gas or oil fired furnace for extreme
cold weather b.lck-vp, billing during the winter months will be the first 600 kWh at the regular rate and
all additional kWh at .S6C per kWh. When customer has water heating in combination with the add on heat
pump, the first 600 kWh will be billed at the regular rate, the next '00 kWh at t.nc per kWh and all
additional kWh at .l6C per kWh,
For heat pump installation, the rated capacity shall be determined by adding the rated capacity of the
he.1t pump {l ton per kilowatt) and 1/2 of the rated capacity of any auxiliary heating elements used in
conjunction with the heat pump.
The rated capacity of space heating equipment may be measured by LP&L.
• Previous rates used energy blocks of .91¢ and 1.72¢ respectively.
Winter Months: The billing months of November to May, inclusive,
Character of Service: A-C; 60 hertz; single phase 120/240 volts; where available on secondary, three
phase 240 volts.
Ceneral Service
Applicable: To all commercial and industrial electric service where facilities of adequate capacity and
suitable voltage are adjacent to the premises to be served. Water heating and space heating service will
be furnished in conjunction with the standard Heating Rider.
Not applicable to temporary, breakdown, standby, supplementary, or to service for which a specific rate
schedule is provided.
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
Previous Rate
$111.00 per month
@ .S. 34¢ per kWh*
@ 2.22¢ per kWh
@ a.ooc per kWh
@ • '.5¢ per kWh
Current Rate
$12.98 per month
@ ,.24¢ per kWh ..
@ 2.22¢ per kWh
@ 1. 0.5¢ per kWh
@ • .5.5¢ per kWh
• Add to the ,,34(: block 200 kWh for every kW of demand in excess of 10 kW.
u Add to the ,,24¢ block 200 kWh for every kW of demand in excess of 10 kW.
Demand: LP&L will furnish at its expense the necessary metering equipment to measure the customer's
kW demand for the .30-minute period of greatest use during the month.
Character of Service: A-C; 60 hertz; single or three phase.
Minimum Char e (identical for both resent rates and new rates • $12.98 per month for demands of 10 kW
or ess, plus l • .SO per kW for next U kW above 10 kW, plus $2.30 per kW for all additional kW. No
demand shaU be taken as less than '096 of highest demand established in 12 months ending with current
month.
Heating Rider
Applicable: To customers taking service under LP&L's General Service, Public and Parochial School
Service or Munidpal Li&hting and Power Service rates.
Water Heating Service•: When customer has in recuJar use one or more permanently installed 30 &allons
or &reater Storace type Water heaters Of not &reater than ,,, kilowatts, individual rated capacity, the
first 200 kWh per water heater wiU be billed at the recular rate, the next 300 kWh per water heater will
be billed at l • .SS¢ per kWh, and all additional kWh at the recular rate,
When customer has in regular use one or more approved, permanently installed storage type water heaters
of greater than .S • .S kilowatts, individual rated capacity, the first 200 kWh for each ' kilowatts of rated
capacity will be billed at the recular rate, the next 300 kWh for each' kilowatts of rated capacity will be
billed at J • .S~ per kWh, and all additional kWh at the regular rate. ·
The dem .. ,.:: ! .>r bdt:\8 purposes will be the measured kW demand less 7'96 of the rated capacity of the
first water heater and .S096 of the rated capacity of all additional water heaters, but not less than 75% of
the measured kW demand.
Flow-throush water heaters and other high wattage water heating devices wtll be billed at the regular
rate.
All-Electric Space Heating Service•: When customer has in regular use permanently installed space
heating equipment, including hot water systems, of an ag,regate rated capacity of } kilowatts or more,
billing during the winter months under the regular rate will not exceed the average kW demand and kWh
consumption established during the first preceding billing months of ~ay and October. Additional demand
will not be billed, Additional kWh used per month will be billed at .&~per kWh.
Add-On Heat Pump Service•! When customer has in regular use a permanently installed heat pump used
as the primary heat source for the entire building in conjunction with a gas or oil fired furnace for
extreme cold weather back-up, billing during the winter months under the regular rate will not exceed the
average kW billing demand and kWh consumption established durinf the tint preceding billing months of
May and October. Additional demand will not be billed. Additiona kWh used per month will be billed at
.&6¢ per kWh.
Winter ~onths: The billing months of November through April, Inclusive.
Character of Service: A·C; 60 hertz; at one available standard voltage of 2lf0 volts or greater.
• Previous rates used energy blocks of .91¢ and 1.72¢ respectively.
Municipal Lighting and Power Service
Applicable: To municipal general lighting and power service except for street lighting service.
Rate:
All kWh per month
Previous Rate
2. 90SC per kWh
lrriga tion Power Service
Current Rate
2.88&c per kWh
Applicable: Under contract, to irrigation power customers when, the connected motor load is not less than
' h.p.
All kWh per month
Previous Rate
lf.&7¢ per kWh
Current Rate
11.69¢ per kWh
Character of Service: A-C; 60 hertz; three phase; at one available standard voltage.
Term of Contract: One year or longer.
Minimum Char e (identical for both resent rates and new rates $24.00 per connected h.p. per season
name-plate rating, excluding fuel cost recovery revenue,
Public and Parochial School Service
Applicable: To public and separately metered parochial schools for lighting and power service, All
metering locations for each customer shall be combined for billing purposes.
First 10,000 kWh used per month
Next 201000 kWh used per month
Next 30,000 kWh used per month
Additional kWh used per month
Previous Rate
@ '·'SC per kWh @ 4.J}¢perkWh
@ 3.19¢ per kWh
@ '·'OC per kWh
Large General Service
Current Rate
@ •• U¢ per kWh
@ •• Oij.¢ per kWh
@ ).81¢ per kWh
@ 3.47¢ per kWh
Applicable•z To all commercial and industrial electric service supplied where facilities of adequate
capacity and suitable voltage are adjacent to the premises to be served. Not applicable to temporary,
breakdown, standby, or supplementary service.
Demand Charg,e•z
Previous Rate Current Rate
First 200 kW, or less of demand per month
Additional k'fr' of demand per month $1,960.00 $1,960.00
$9.10/k'&' $9.10/kW
Energy Charge*• .n¢ per kWh for the first 230 kWh used per month per k'l' of demand, or the first
120,000 kWh used per month whichever is greater
.•It per kWh for the next 230 k"Wh used per month per kW of demand
SJ¢ per kWh for all additional kWh used per month
EXHIBIT A
pojt-3
Determinati.)n of Demand•: Tl'le kW determined from LPL's demand meter for the )0-rninute period of
customer's greatest kW use during the rnonth, but not less th.:sn 60'!6 of the highest demand established in
the preceding eleven months.
Power Factor Adjustment•: Bills computed under tl'le above rate will be increased $0.2} for each kvar by
which the reactive demand exceeds, numerically, 0,}) tirnes the measured kW demand, and will be
reduced $0.2' for each kvar by which the reactive demand is less than, numerically, 0.40 times the
measured kW demand.
Primary Service Discount•: A discount of )'!6 of tl'le demand charges, energy charges (excluding all fuel
cost recovery amounu), and power factor adjustment charges will be allowed when service is supplied at a
line voltage of 12 kV, or greater, and no transformation is made by Lubbock Power and Light at the
customer's location.
• Identical for both previous rates and current rates.
Character of Service: A-C; 60 hertz.
Contract Period: A period of not less than one year.
Minimum Charge"': The Demand Charge.
• Identical for both previous rates and current rates,
Street Lighting Service
Applicable: To municipal street lighting service •
.!.!.!!=
All kWh used per month
Previous Rate
3.2269C per kWh
Oil Well Pumping Service
Current Rate
).21C per kWh
Applicable: Under contract, to power customers for oil well pumping, including incidental lighting and
small power loads required by customer in lease operation. All locations in one field are to be combined
and billed together.
Service Availability Charge
All kWh per month
Previous Rate
$11.43 per meter per month
2.,~ per kWh
Current Rate
$10.29 per meter per month
2.118¢ per kWh
Character of Service: A-C; 60 hertz; three phase; at LPL's available primary voltage.
Power Factor: The customer agrees to maintain an average power factor of at least &0'!6,
Terms of Contract: One year, or longer.
Minimum Charge (identical for both present rates and new rates):
$20 per month on each meter for secondary voltage metering.
$'0 per month on each meter for primary voltage metering.
Industrial Feed Mill and Elevator Service
Applicable: Under contract, to all electric energy used for the operation of industrial feed mills and grain
elevators. All industrial feed mill and elevator customers are to be served under this rate schedule,
except that customers having a measured demand of 200 kW, or greater, may be served under the large
general service rate.
Not applicable to temporary, breakdown, standby, or supplementary service.
EXHIBIT A
.pa;e, ·~
,
~:
Service Availability Charge
First 1,000 kWh used per month
Next 6,000 kWh used per month
Next 11,000 kWh used per month
All additional k'll'h used per month
Previous Rate
$17.91 per month
@ 6, 17¢ per kWh•
@ 3.12¢ per kWh
@ 2.10C per kWh
@ I • .SOC per kWh
Current Rate
$17.91 per month
@.S.73¢ per kWh ..
@ 3 • .SS¢ per kWh
@ 2 • .S.S¢ per kWh
@ I • .SO¢ per kWh
• Add to the 6.17¢ block, Jlf.S kWh for each kW of demand in excess of 10 kW,
.. Add to the .s.n¢ block, 14.S kWh for each k\V of demand in excess of 10 kWh.
Terms of Payment: Net in )0 days after mailing date; .S96 added to bill after 30 days.
Demand: The kW demand from LPA:L's demand meter for the 30-mlnute period of customer's greatest use
during the month.
Character of Service: A-C; 60 hertz; single or three phase, at one standard voltage.
~inlmum Char e (identical for both revious rates and current rates $16.46 for the first 10 kW, or less,
plus 3 • .50 per k\V for next U k\V, above 10 kW, plus 2.30 per kW for all additional kW of highest demand
established in twelve months ending with current month.
Term of Contract: A period of not less than one year.
Cotton Gin Service
Applicable: Under contract, to all electric energy used for the operation of cotton gins and de-linters,
whether partially or completely elec.trified, Cotton gins are not to be served under any rate schedule not
specifically designated for such serv1ce.
~ot applicable to temporary, breakdown, standby, or supplementary service.
!!!!=
Service Availability Charge
First 1,000 kWh used per month
All additional kWh used per month
Previous Rate
$21.60 per month
@ 7. 98¢ per kWh•
@ 3.6CC per kWh
Current Rate
$19.90 per month
@ 7 .If~ per kWhn
@ 3.41¢ per kWh
• Add to the 7.98¢ block, l20 kWh for each kW of demand in excess of 10 kW.
•• Add to the 7.43¢ block, 120 kWh for each kW of demand in excess of 10 kW.
Terms of Payment: Net in )0 days after mailing date; .S96 added to bill after 30 days.
Demand: The kW demand for LPL's demand meter for the 30 minute period of customers greatest use
during the month.
Character of Service: A-C; 60 hertz; single or three phase, at one standard voltage.
$24 • .SO per year per kW of demand
Guard Light Service
Applicable: Under contract to all night outdoor fighting service where facilities of adeq~.~ate capacity and
suitable voltage are adjacent to the premises to be served.
Rate: Each U,OOO lumen high pressure sodium, wood pole, overhead bracket type light for $B.n per
iliOilth (previous rat.e $9.32 per month).
Each 9,500 lumen high pressure sodium, wood pole, overhead bracket type light for $7.00 per month
(previous rat.e $7.62 per month).
Each 7,000 lumen mercury vapor, wood pole, overhead bracket type light for $7.00 per month (previous
rate $7.62 per month).
EXHIBIT A .,
-poje-!J
Coopers
&Lybrand
certified public accountants
REPORT OF CERTIFIED PUBLIC ACCOQNTANTS
THE STATE OF TEXAS S
s
COUNTY OF LUBBOCK S
s
CITY OF LUBBOCK S
I, the undersigned, of the firm of Coopers & Lybrand, Certified Public
Accountants, Lubbock, Texas, do hereby make the following report:
1. That the total gross revenues, operation and maintenance
expenses, and net revenues from the operation of the Electric
Light and Power System of the City of Lubbock, Texas (the
"City"), for the fiscal year ending September 30, 1990, as
shown by the City's financial records, are as follows:
Gross revenues
$ 52,197,792
Maintenance and
operation expenses
$ 33,730,001
Net revenues
$ 18,467,791
2. That, based on the audit of the financial records of the
City's Electric Light and Power System for the fiscal year
ending September 30, 1990, the net revenues of said Power
System are equal to at least one and o~e-half (1-1/2) times
the average annual principal and interest requirements of all
bonds which will be secured by a first lien on and pledge of
the net revenues of the System which will be outstanding after
the issuance of the proposed "CITY OF LUBBOCK, TEXAS, ELECTRIC
LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES 1991" dated
May 15, 1991 and further, that said net revenues are equal to
at least one and one-fifth (1-1/5) times the maximum annual
principal and interest requirements of all such bonds as will
be outstanding upon the issuance of the aforesaid Series 1991
Bonds.
Coopers & Lybrand
By:
April 25, 1991
Texas Commerce Bank
National Association
P. 0. Box 841
Lubbock, Texas 79408
Attention: Sherry Burger
RE: $7,500,000 "City of Lubbock, Texas, Electric Light &
Power System Revenue Bonds, Series 1991", dated May 15,
1991
Dear Ms. Burger:
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: Prudential Securities Incorporated,
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
transmit the proceeds thereof
immediately available funds
American State Bank, Lubbock,
obligations has occurred, please
by the fastest means available in
to the City's depository bank,
Texas, Attention: Selma Sedgwick.
Enclosed herewith you will find four copies of the
Signature and No-Litigation Certificate 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 to the purchasers and forward the
remaining copies of said Certificate and all executed and dated
copies of the Certificate and Receipt for Payment to Bond
Counsel at the address shown above.
64720-4
Page 2
April 25, 1991
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 off icia 1 of the City wi 11
notify you at once by telephone and by telegraph. You may thus
be assured that there is no such litigation at the time the
obligations are delivered to you unless you have been advised
otherwise in the manner aforementioned.
6<117ZD-5
Texas Commerce Bank
National Association
P. 0. Box 841
Lubbock, Texas 79408
Attention: Sherry Burger
April 25, 1991
RE: $7,500,000 "City of Lubbock, Texas, Electric Light &
Power System Revenue Bonds, Series 1991", dated May 15,
1991
Dear Ms. Burger:
Enclosed herewith you will find four Certificates as to
Official Statement relating to the sale of the above described
bonds, executed and completed except as to date. When payment
for the bonds occurs, you are authorized to date and release
one copy of this Certificate to the purchaser(s) thereof, and
forward the remaining three copies to Messrs. Fulbright &
Jaworski, 2200 Ross Avenue, Suite 2800, Dallas, Texas 75201.
Very truly yours,
d_c./?/~
Mayor, City of Lubbock, Texas
6 4 7 2 D-6
April 25, 1991
Attorney General of Texas
411 West 13th Street -8th Floor
Austin, Texas 78701
Attention: Public Finance Division
RE: $7,500,000 "City of Lubbock, Texas, Electric Light &
Power System Revenue Bonds, Series 1991", dated May 15,
1991
Ladies and Gentlemen:
Enclosed herewith is the Initial Bond 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 Bond 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 Bond to the Comptroller of Public Accounts
for registration.
Should any litigation in any way affecting the issuance
of the bonds or the security for the payment thereof develop
prior to that date, the undersigned or other officia 1 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 bonds are finally approved unless notice to the
contrary has been given in the manner aforementioned.
Very truly yours,
ayo r, ctY.,..OfLUbiiock, Texas
64720-1
--------------------------------------···-~--
April 25, 1991
Ms. Arlene Chisholm
Economic Analysis Center
Comptroller of Public Accounts
P.O. Box 13528, Capitol Station
Austin, Texas 78711
RE: $7,500,000 "City of Lubbock, Texas, Electric Light &
Power System Revenue Bonds, Series 1991", dated May 15,
1991
Dear Ms. Chisholm:
When the Initial Bond 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 firm 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 with the Initial Bond when
it is sent to said firm.
Very truly yours,
64720-2
April 25, 1991
Messrs. Fulbright & Jaworski
2200 Ross Avenue, Suite 2800
Dallas, Texas 75201
RE: $7,500,000 "City of Lubbock, Texas, Electric Light &
Power System Revenue Bonds, Series 1991", dated May 15,
1991
Gentlemen:
Enclosed you will find four Certificates as to Tax
Exemption executed but undated.
At such time as the above described bonds are delivered
to the purchaser, you are authorized to complete and date each
of these certificates.
Very truly yours,
~~~ ssistant City ana<ier for
Financial Services
City of Lubbock, Texas
647Z0-3
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 25th day of April, 1991, the City
Counci 1 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:
B. C. MCMINN MAYOR
T. J. PATTERSON
BILL MALOY
GARY D. PHILLIPS
JOAN BAKER
MAGGIE TREJO
M.J. ADERTON
MAYOR PRO TEM
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
all of said persons Nere present at said meeting, except the
following: ONk
business considered at said meeting,
entitled:
Among other
the attached ordinance
ORDINANCE NO. 9i3a
AN ORDINANCE authorizing the issuance of
$7,500,000 "CITY OF LUBBOCK, TEXAS, ELECTRIC
LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES
1991"; prescribing the forms, terms, and
prov1s1ons of said bonds; pledging the net
revenues of the City's Electric Light and Power
System to the payment of the principal of and
interest on said bonds; enacting provisions
incident and related to the issuance, payment,
security, sale and delivery of said bonds,
including the approval and distribution of an
Official Statement pertaining thereto, and
providing an effective date.
was introduced and submitted to the Counci 1 for passage and
adoption. After presentation and due consid~tion of the
ordinance, and UE.£n a motion made by fn,j &i'(.k:-loN and
seconded by ~~ke,...r the ordinance was duly passed and
adopted by the Council on first reading by the following vote:
--1---voted "For" Q voted "Against" 0 abstained
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 ~9~
officially and affixed the seal of said City, this the~
day of April, 1991.
~~~ ~Secretary
City of Lubbock, Texas
-2-6 4 73 D
I
I
,.
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 26th day of April, 1991, 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:
B. C. MCMINN MAYOR
T. J. PATTERSON
BILL MALOY
GARY D. PHILLIPS
JOAN BAKER
MAGGIE TREJO
M.J. ADERTON
MAYOR PRO TEM
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
all of said Oter,soifJ were present
following: ·'-'· e-r~,J at said meeting, except the
Among other
business considered at said meeting,
entitled:
the attached ordinance
ORDINANCE NO. q43c3
AN ORDINANCE authorizing the issuance of
$7,500,000 "CITY OF LUBBOCK, TEXAS, ELECTRIC
LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES
1991"; prescribing the forms, terms, and
prov1s1ons of said bonds; pledging the net
revenues of the City's Electric Light and Power
System to the payment of the principal of and
interest on said bonds; enacting prov1s1ons
incident and related to the issuance, payment,
security, sale and delivery of said bonds,
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
adoption. After presentation and due co~idjbation of
ordinance, ~· upon a motion made by z.J. 1te£6o tV
seconded by • I\ Chalo\1 the ordinance was duly passed
I
and
the
and
and
/ . .~ ,
adopted by the Council on second and final reading to be
effective immediately by the following vote:
fo voted "For" 0 voted "Against" 0 abstained
all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
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 ct<&rJJ~
officially and affixed the seal of said City, this the 'f1
day of April, 1991.
Q~
City of Lubbock, Texas
-2-
6474D
..
The Depository Trust Company
Muni Redemption Department
55 Water Street·SOth Floor
New York, NY 10041
Attention: Collection Supervisor
10. DTC may direct the Issuer or Agent to use any other telephone number for facsimile transmission, address, or
department of DTC as the number, address or department to which payments of interest or principal or notices may be sent.
11. In the event of a redemption, acceleration or any other similar transaction (e.g., tenders made and accepted in
response to the Issuer's or Agent's invitation) necessitating a reduction in aggregate principal amount of Bonds
outstanding or an advance refunding of part of the Bonds outstanding, OTC, in its discretion, (a) may request the
fssuer or Agent to issue and authenticate a new Bond certificate or (b) shall make an appropriate notation on the Bond
certificate indicating the date and amounts of such reduction in principal, except in the case of final maturity, in which
case the certificate must be presented to the Issuer or Agent prior to payment.
12. In the event the Issuer determines pursuant to the Oocument(s) that beneficial owners of the Bonds shall be able
to obtain certificated Bonds, the Issuer or Agent shall notify DTC of the availability of Bond certificates and shall issue,
transfer and exchange Bond certificates in appropriate amounts as required by DTC and others.
13. DTC may determine to discontinue providing its service as securities depository with respect to the Bonds at any
time by giving reasonable notice to the Issue or Agent (at which time DTC will confirm with the Issuer or Agent the
aggregate principal amount of the Bonds outstanding) and discharging its responsibilities with respect thereto under
applicable law. Under such circumstances, whenever DTC requests the Issuer and the Agent to do so, the Agent and
the Issuer will cooperate with DTC in taking appropriate action to make available one or more separate certificates
evidencing the Bonds to any DTC Participant having Bonds credited to its DTC account.
14. Nothing herein shall be deemed to require the Agent to advance funds on behalf of the Issuer.
Hole$:
a. H there is no organization acting as Agent for the Issuer. and
aD obligations in this Letter of Representations are to be assumed
solely by the Issuer, references to such Agent may be inked out.
b. Neither DTC nor (Cede & Co.) provides consents with respect
to anr seeurity. Under its usual proeedures. OTC mails an
Omnibus Proxy to the Issuer as soon as possible after the record
date. The Omnibus Proxy assigns Cede & Co.'s voting rights to
those Participants having the security credited to their accounts on
lhe record date (identified In a listing attached to the Omnibus
Proxy). The requirement to advise OTC or the record date for the
soriCitation or consents is set forth in paragraph 2 of the letter.
c. Under Rules of the Municipal Securities Rulemaking Board
relating to "good delivery: a municipal securities dealer must be
able to determine the date that a notice of panial call or or an
advance refunding of pan of an issue is published (the "Publication
Oate1. The establ'ashment of such a Publication Date is addressed
in paragraph 4 of the letter.
Received and Accepted:
THE DEPOSITORY TRUST COMPANY
By.--..... --------------------------(Authorized Offacer's Sign.atuntt
cc: Underwriter
Underwriter's Counsel
Very truly yours,
Texas Commerce Bank National Association
lasAg.mtl
tAulhonzed Officer's Sign.:~turel
Clidt~l
City of Lubbock, Texas
Cas lsnu:rl
U.uthonzed Officer's Signature)
Mayor
Clitlcl
Year of
Stated Maturity
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
SCHEDULE A
Principal
Amount
$375,000
375,000
375,000
375,000
375,000
375,000
375,000
375,000
375,000
375,000
375,000
375,000
375,000
375,000
375,000
375,000
375,000
375,000
375,000
375,000
Interest
Rate
% --%
--%
--%
-%
--%
--%
--%
--%
--%
--%
--%
--%
--%
--%
--%
--%
--%
--% ==%
EXHIBIT 4
PAYING AGENT/REGISTRAR AGREEMENT
THIS AGREEMENT entered into as of April 26, 1991 (this
"Agreement"), by and between the City of Lubbock, Texas (the
"Issuer••), and Texas Commerce Bank National Association,
Lubbock, 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, Electric Light &
Power System Revenue Bonds, Series 1991•• (the "Securities") in
the aggregate principal amount of $7,500,000, 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 May 30, 1991; 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.
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:
64750
"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 wi 11 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.
-2-
64750
"Fiscal Year" means the fiscal year of the Issuer,
ending September 30.
"Holder" and "Security Holder" each means the Person
in whose name a Security is registered in the Security
Register.
"Issuer Request" and "Issuer Order" means a written
request or order signed in the name of the Issuer by the
Mayor, City Secretary, City Manager, or Assistant City
Manager for Financial Services, any one or more of said
officials, and delivered to the Bank.
"Legal Holiday" means a day on which the Bank is
required or authorized to be closed.
"Person" means any indi vidua 1, 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 ~ursuant 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.
-3-
"Stated Maturity" means the date specified in the
Bond Resolution the principal of a Security is scheduled
to be due and payable.
Section 2.02. Other Definitions.
The terms "Bank," "Issuer," and ••securi ties (Security)"
have the meanings assigned to them in the recital paragraphs of
this Agreement.
The term "Paying Agent/Registrar" refers to the Bank in
the performance of the duties and functions of this Agreement.
ARTICLE THREE
PAYING AGENT
Section 3.01. Duties of the Paying Agent.
As Paying Agent, the Bank shall, provided adequate
collected funds have been provided to it for such purpose by or
on behalf of the Issuer, pay on behalf of the Issuer the
principal of each Security at its Stated Maturity, Redemption
Date, or Acceleration Date, to the Holder upon surrender of the
Security to the Bank at the Bank Office.
As Paying Agent, the Bank shall, provided adequate
collected funds have been provided to it for such purpose by or
on behalf of the Issuer, pay on behalf of the Issuer the
interest on each Security when due, by computing the amount of
interest to be paid each Holder and making payment thereof to
the Holders of the Securities (or their Predecessor Securities)
on the Record Date. All payments of principal and/or interest
on the Securities to the registered owners shall be
accomplished (1) by the issuance of checks, payable to the
registered owners, drawn on the fidicuary account provided in
Section 5.05 hereof, sent by United States mail, first class,
postage prepaid, to the address appearing on the Security
Register or (2) by such other method, acceptable to the Bank,
requested in writing by the Holder at the Holder • s risk and
expense.
Section 3.02. Payment 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.
-4-6415D
'.
ARTICLE FOUR
REGISTRAR
Section 4.01. Security Register-Transfers and Exchanges.
The Bank agrees to keep and maintain for and on behalf of
the Issuer at the Bank Office books and records (herein
sometimes referred to as the "Security Register") for recording
the names and addresses of the Holders of the Securities, the
transfer, exchange, and replacement of the Securities and the
payment of the principal of and interest on the Securities to
the Holders and containing such other information as may be
reasonably required by the Issuer and subject to such
reasonable regulations as the Issuer and the Bank may
prescribe. All transfers, exchanges, and replacements of
Securities shall be noted in the Security Register.
Every Security surrendered for transfer or exchange shall
be duly endorsed or be accompanied by a written instrument of
transfer, the signature on which has been guaranteed by an
officer of a federal or state bank or a member of the National
Association of Securities Dealers, such written instrument to
be in a form satisfactory to the Bank and duly executed by the
Holder thereof or his agent duly authorized in writing.
The Bank may request
feels necessary to effect
exchange of the Securities.
any supporting documentation
a re-registration, transfer,
it
or
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/Reg~strar.
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.
-5-647SD
..
Section 4.03. Form of the Security Register.
The Bank, as Registrar, will maintain the Security
Register relating to the registration, payment, transfer, and
exchange of the Securities in accordance with the Bank's
general practices and procedures in effect from time to time.
The Bank shall not be obligated to maintain such Security
Register in any form other than those which the Bank has
currently available and currently utilizes at the time.
The Security Register may be maintained in written form
or in any other form capable of being converted into written
form within a reasonable time.
Section 4.04. List of Security Holders.
The Bank will provide the Issuer at any time requested by
the Issuer, upon payment of the required fee, a copy of the
information contained in the Security Register. The Issuer may
also inspect the information contained in the Security Register
at any time the Bank is customarily open for business, provided
that reasonable time is allowed the Bank to provide an
up-to-date listing or to convert the information into written
form.
The Bank will not release or disclose the contents of the
Security Register to any person other than to, or at the
written request of, an authorized officer or employee of the
Issuer, except upon receipt of a court order or as otherwise
required by law. Upon receipt of a court order and prior to
the release or disclosure of the contents of the Security
Register, the Bank will notify the Issuer so that the Issuer
may contest the court order or such release or disclosure of
the contents of the Security Register.
Section 4.05. Return of Cancelled Securities.
The Bank will, at such reasonable intervals as it
determines, surrender to the Issuer, Securities in lieu of
which or in exchange for which other Securities have been
issued, or which have been paid.
Section 4.06. Mutilated, Destroyed,
Securities.
Lost, or Stolen
The Issuer hereby instructs the Bank, subject to the
provisions of Section 32 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.
-6-
•
In case any Security shall be mutilated, destroyed, lost,
or stolen, the Bank, in its discretion, may execute and deliver
a replacement Security of like form and tenor, and in the same
denomination and bearing a number not contemporaneously
outstanding, in exchange and substitution for such mutilated
Security, or in lieu of and in substitution for such destroyed,
lost, or stolen Security, only upon (i) the filing by the
Holder thereof with the Bank of evidence satisfactory to the
Bank of the destruction, loss, or theft of such Security, and
of the authenticity of the ownership thereof and (ii) the
furnishing to the Bank of indemnification in an amount
satisfactory to hold the Issuer and the Bank harmless. All
expenses and charges associated with such indemnity and with
the preparation, execution, and delivery of a replacement
Security shall be borne by the Holder of the Security
mutilated, destroyed, lost, or stolen.
Section 4.07. Transaction Information to the Issuer.
The Bank will, within a reasonable time after receipt of
written request from the Issuer, furnish the Issuer information
as to the Securities it has paid pursuant to Section 3.01
hereof, Securities it has delivered upon the transfer or
exchange of any Securities pursuant to Section 4.01 hereof, and
Securities it has delivered in exchange for or in lieu of
mutilated, destroyed, lost, or stolen Securities pursuant to
Section 4.06 hereof.
ARTICLE FIVE
THE BANK
Section 5.01. Duties of the Bank.
The Bank undertakes to perform the duties set forth
herein and agrees to use reasonable care in the performance
thereof.
Section 5.02. Reliance on the Documents, Etc.
(a) The Bank may conclusively rely, as to the truth of
the statements and correctness of the op1n1ons 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.
-7-
647SD
' .
(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 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 sha 11 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.
-8-647SD
' .
•
Section 5.05. M~o~n~e~y~s~H~e~l~d~b~y~---t~h~e~~B~a~n~k~------~S~e~p~a~r~a~t=e
Account/Collateralization.
A separate account shall at all times be kept and
maintained by the Bank for the receipt, safekeeping and
disbursement of moneys received from the Issuer hereunder for
the payment of the Securities, and money deposited to the
credit of such account until paid to the Holders of the
Securities shall be continuously collaterialized by securities
or obligations which qualify and are eligible under the laws of
the State of Texas to secure and be pledged as collateral for
accounts of the Issuer to the extent such money is not insured
by the Federal Deposit Insurance Corporation. Payments made
from such account shall be made by check drawn on such account
unless the owner of such Securities shall, at its own expense
and risk, request such other medium of payment.
The Bank shall be under no liability for interest on any
money received by it hereunder.
Subject to the applicable unclaimed property laws of the
State of Texas, any money deposited with the Bank for the
payment of the principal, premium (if any), or interest on any
Security and remaining unclaimed for four years after final
maturity of the Security has become due and payable will be
paid by the Bank to the Issuer, and the Holder of such
Security shall thereafter look only to the Issuer for payment
thereof, and all liability of the Bank with respect to such
moneys shall thereupon cease.
Section 5.06. Indemnification.
To the extent permitted by law, the Issuer agrees to
indemnify the Bank for, and hold it harmless against, any loss,
liability, or expense incurred without negligence or bad faith
on its part, arising out of or in connection with its
acceptance or administration of its duties hereunder, including
the cost and expense against any claim or liability in
connection with the exercise or performance of any of its
powers or duties under this Agreement.
Sectiop 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
-9-64750
•
•
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. DT Services.
It is hereby represented and warranted that, in the event
the Securities are otherwise qualified and accepted for
"Depository Trust Company" services or equivalent depository
trust services by other organizations, the Bank has the
capability and, to the extent within its control, will comply
with the "Operational Arrangements", effective August 1, 19871
which establishes requirements for securities to be eligible
for such type depository trust services I including, but not
limited to I requirements for the timeliness of payments and
funds availability, transfer turnaround time, and notification
of redemptions and calls.
ARTICLE SIX
MISCELLANEOUS PROVISIONS
Section 6.01. Amendment.
This Agreement may be amended only by an agreement in
writing signed by both of the parties hereto.
Section 6.02. Assignment.
This Agreement may not be assigned by either party
without the prior written consent of the other.
Section 6.03. Notices.
Any request, demand, authorization, direction, notice,
consent, waiver, or other document provided or permitted hereby
to be given or furnished to the Issuer or the Bank shall be
mailed or delivered to the Iisuer 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.
-10-64750
• ' .
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 6.08. Entire Agreement.
This Agreement and the Bond Resolution constitute the
entire agreement between the parties hereto relative to the
Bank acting as Paying Agent/Registrar and if any conflict
exists between this Agreement and the Bond Resolution, the Bond
Resolution shall govern.
Section 6.09. Counterparts.
This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and all
of which shall constitute one and the same Agreement.
Section 6.10. Termination.
This Agreement will terminate (i) on the date of final
payment of the principal of and interest on the Securities to
the Holders thereof or (ii) may be earlier terminated by either
party upon sixty ( 60) days written notice; provided, however,
an early termination of this Agreement by either party shall
not be effective until (a) a successor Paying Agent/Registrar
has been appointed by the Issuer and such appointment accepted
and (b) notice given to the Holders of the Securities of the
appointment of a successor Paying Agent/Registrar.
Furthermore, the Bank and the Issuer mutually agree that the
effective date of an early termination of this Agreement shall
not occur at any time which would disrupt, delay, or otherwise
adversely affect the payment of the Securities.
Upon an early termination of this Agreement, the Bank
agrees to promptly transfer and deliver the Security Register
(or a copy thereof), together with other pertinent books and
records relating to the Securities, to the successor Paying
Agent/Registrar designated and appointed by the Issuer.
-11-
64750
' I ~ I ..
•
The provisions of Section 1.02 and of Article Five shall
survive and remain in full force and effect following the
termination of this Agreement.
Section 6.11. Governing Law.
This Agreement shall be construed in accordance with and
governed by the laws of the State of Texas.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the day and year first above written.
[SEAL]
Attest:
City Secretary
(SEAL)
ATTEST:
Title:
647SD
CITY OF LUBBOCK, TEXAS
BY ~-----------------------------Mayor
Address:
P. o. Box 2000
Lubbock, Texas 79457
TEXAS COMMERCE BANK
NATIONAL ASSOCIATION
Lubbock, Texas
BY
Mailing Address:
P. o. Box 841
Lubbock, Texas 79408
Delivery Address:
1314 Avenue K
Lubbock, Texas 79401
-12-
..
The Depository Trust Company
55 Water Street
New York, NY 10041
Attention: General Counsel's Office
Letter of Representations
TO BE COMPLETED BY ISSUER AND AGENT. IF ANY
City of Lubbock, Texas
Texas Commerce Bank National Association
Nllme ol Agent, if •ny
Re: $7,500,000 "City of Lubbock, Texas, Electric Light and
Power System Revenue Bonds, Series 1991"
Gentlemen: (Issue Description)
EXHIBIT B
April 26, 1991
(Dale)
The purpose of this letter is to set out certain matters relating to the above·referenced Bonds (the "Bonds .. ). National Association
Texas Commerce Bank/ is acting as Trustee, Paying Agent, Fiscal Agent, or other Agent of the Issuer \\ith
(the •.t.gent1
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 as of May 15 , 19 91 (the "Document(sn.
---~~----,-----is distributing the Bonds through The Depository Trust Company ("DTC").
(the "Underwriter')
To induce DTC to accept the Bonds as eligible for deposit at DTC and act in accordance with its Rules with respect
lo the Bonds, the Issuer and the Agent, if any, make the folJowing representations to DTC:
1. Subsequent to Closing on the Bonds on May 30 , 19 91 , there shall be deposited with DTC
one Bond certificate in registered form registered in the name of DTC's nominee, Cede & Co., for each stated maturitv
of the Bonds in the face 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 $100,000,000, one
certificate will be issued with respect to each $100,000,000 of principal amount and an additional certificate will be
issued with respect to any remaining principal amount. Each $100,000,000 Bond certificate shall bear the following
legend:
"'Unless this certificate is presented by an authorized representative of The Depository Trust Company to the
Issuer or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name
of Cede & Co. or such other name as requested by an authorized representative of The Depository Trust Company and
any payment is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof, Cede & Co., has an interest
herein."
•
2. In the event of any solicit.1tion of consents from and voting by holders of th~ Bonds, the Issuer or Agent, shall
~tablish a record date for such purposes and give DTC notice of such record d.1t~ not less than 15 calendar days in
.1dvance of such record date to the extent possible.
3. In the event of a redemption or any other similar transaction resulting in retirement of all Bonds outstanding or a
reduction in aggregate principal amount of Bonds outstanding ("'full or partial redemption") or an advance refunding
of all or part of the Bonds outstanding, the Issuer or Agent, shall give DTC notice of such event 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 the proceeds are
deposited in escrow.
4. In the event of a partial redemption or an advance refunding of part of the Bonds outstanding, the Issuer or Agent
shall send DTC a notice specifying: 1) the amount of the redemption or refunding; 2) in the case of a refunding, the
maturity date(s) established under the refunding; and 3) the date such notice is to be mailed to Bondholders or
published ("the Publication Date"). Such notice shall be sent to DTC by a secure means (e.g .• legible facsimile
transmission, registered or certified mail, overnight express 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. The
Issuer or Agent will forward such notice either in a separate secure transmission for each CUSJP number or in a secure
transmission for. multiple CUSIP numbers which includes a manifest or list of each CUSIP submitted in that
transmission. (The Issuer or Agent sending such notice shall have a method to verify subsequently the use of such
means and timeliness of the notice.) The 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 the proceeds are deposited in escrow.
5. In the event of an invitation to tender the Bonds, notice to Bondholders by the Issuer or Agent, specifying the
tenns of the tender and the date such notice is to be mailed to Bondholders or published ("the Publication Date") shall
be sent to DTC by a secure means (e.g., legible facsimile transmission, registered or certified mail, overnight express
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. (The Issuer or Agent sending such notice shall have a
method to verify subsequently the use of such means and timeliness of the notice.)
6. All notices and payment ad vices sent to DTC shall contain the CUSIP number of the Bonds.
7. Notices to DTC by facsimile transmission shall be sent to DTC's Call Notification Department at (516) 227-4039 or
(516) 227--1190. The Agent shall confirm DTC's receipt of such facsimile transmission by telephoning the Call
Notification Department at (516) 227--1070. Notices to DTC by mail or any other means shall be sent to:
The Depository Trust Company
Call Notification Department
Muni Reorganization Manager
711 Stewart Avenue
Garden City, NY 11530
8. Interest payments shall be received by Cede&: Co., as nominee of DTC, or its registered assigns in next-day funds
on each payment date (or the equivalent in accordance with existing arrangements between the Issuer or Agent and
DTO. Such payments shall be made payable to the order of Cede&: Co.
9. Payments of principal shall be received by Cede &: Co., as nominee of DTC, or its registered assigns in next-day
funds on each payment date. Principal payments shall be made payable to the order of Cede&: Co., and shall be
addressed as follows:
I~,IRST s--·coMPANY
JOEW.SMITH
SENIOR VICE PRESIDENT
Ms. Ranette Boyd
City Secretary
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Dear Ranette:
INVESTMENT BANKERS
P .0. BOX 2'754-79604
402 CYPRESS, SUITE 103
ABILENE, TEXAS 79601
May 1, 1991 (915) 672-8432
Enclosed are five copies of a 3-page set of schedules marked "Exhibit A" covering
the general obligation issues sold on 4-25-1991. One copy should be attached to
your copy of the General Certificate covering each issue.
If you have any questions, please let me know.
JWS:gc
Enclosures
~-.. "'~-
. Page '' CITY OF LUBBOCK, TEXAS EXHIBIT A
GENERAL OBLIGATION DEBT SERVICE REQUIREMENTS
COMBINED REQUIREMENTS OF TAX ISSUES SOLO 4-25-1991
OEIIAII<W T.U AID
CXDIIlriar m AID w.uEIII)II'S I:DWIIQI IW./lllDitol1111 aliiiWil!I<W W AID SOLID nscu. Simi smmDWD LUI UVDUI {IJIItiD PJZII(Zl I.MIIUE 11.\Srl DJ5110SlL S!miiEVEIIUI PIIBLlC PDim m.utCE
rw QJD1L QlLIQII(II Baa c:muiC:ms 01 aiLIQII<W CllfUIWt:S or OIILI.WIOI cminWt:S 01 C&JQIIOI cmrJ.IL'!U.lL U!LIQIIW
IJI)IJr. . ' ImlESr mnrst Immf m~ IJrDISI QDlllJ)
9-30 PilJCIP.U. 1m: Imi!SI P.UICIP.U. lUI Imi!SI PIIJCIP.U. 1m Imi£Sf PlliCif.U. lUI Imlt:ST PIIICIP.U. W'l Imlt:S! WJQllli!DITS
1991
1992 100,000 1.75l 179,117 IOS,OOO 1.75l 1,07,159 200,000 1.75l 360,125 115,000 7.101 19,9.21 55,000 119,916 3,462,01S
1993 100,000 1.m· 133,'125 IOS,OOO 1.751 1,012,106 M,OOO 1.151 261,150 115,000 7.101 62,01S 55,000 90,30t 2,902,766
1994 100,000 1.151 12,,975 IOS,OOO 1.151 1,002,369 200,000 1.151 251,350 115,000 7.101 53,105 55,000 15,153 2,791,9Sl
1995 100,000 1.151 116,225 IOS,OOO 1.'151 931,9U 200,000 1.751 233,150 115,000 5.101 . 45,215 55,000 79,997 2,612,2&1
1996 100,000 1.151 107,6'15 IOS,OOO 1.75l W,4M 200,000 1.751 216,350 115,000 5.90& 31,551 55,000 9.mot 74,Ul 2,m,n1
1997 100,000 1.151 N,'I2S IOS,OOO 1.75l 791,0S6 200,000 1.1SI ua,a50 115,000 6.001 31,115 55,000 69,1U 2,4U,2JO
199& 100,000 1.151 lt,97S IOS,OOO 1.1SI 720,619 200,000 1.751 111,350 115,000 6.10l 24,'15& 55,000 65,126 2,356,121
1999 100,000 1.1SI u,m IOS,OOO a.m 650,111 200,000 1.7Sl 163,150 115,000 6.251 17,656 55,000 ~,369 2,248,211
2000 100,000 1.701 72,500 IOS,OOO • 1.~1 SIO,:J.U M,OOO 1.501 146,600 115,000 6.251 10,469 55,000 55,611 2,140,521
2001 100,000 6.251 6S,CUS IOS,OOO 6.251 520,516 200,000 6.251 131,150 110,000 6.251 3,01 55,000 1.65001 50,15& 2,11U,7U
200.2 100,000 6.401 51,700 IOS,OOO 6.401 469,6'0 200,000 6.401 119,200 55,000 46,000 1,1Sl,SOO
2003 100,000 6.501 52,250 IOS,OOO 6.501 417,731 200,000 6.501 106,300 55,000 41,050 1,m,3n
2004 100,000 6.501 65,750 IOS,OOO 6.501 36S,W 200,000 6.501 93,300 55,000 36,100 1,100,5&3
2005 100,000 6.501 39,250 IOS,OOO 6.501 313,01& M,OOO 6.50& 10,300 55,000 31,150 1,623,711
2006 100,000 6.lSl n,m IOS,OOO 6.251 261,769 205,000 6.25& 61,394 55,000 9.00001 26,200 1,553,231
2001 100,000 6.251 26,QS aos,ooo 6.lSl 211,456 205,000 6.251 5&,511 55,000 21,216 1,471,17a
2001 100,000 6.251 20,375 110,000 s.m 163,013 205,000 6.251 41,769 55,000 16,197 1,411,353
200t 100,000 5.1SI 14,375 110,000 5.1SI 116,01 205,000 5.751 29,469 50,000 11,406 1,336,"1
2010 100,000 5.751 I,QS 110,000 5.751 "·") 205,000 5.75& 17,611 50,000 6,144 1,2tii,Ol2
2011 1001000 5.751 2,175 uo,ooo 5.751 :n,211 205,000 5.15& 51 1M 50,000 9.12501 2,2&1 1,1,1331
$2,000,000 $1,370,737 $16,120,000 $10,910,962 $t,030,000 $2,761,913 $1,145,000 $376,915 $1,0&5,000 $990,564 $40,&61,161
All Issues dated 5-·15-1991; principal due 2-15 of each year as shown.
Interest rates shown are those established at sale of obligations.
Interest due 2-15-1992 and each 8-15 & 2-15 thereafter.
C I TV OF LUB80CK • TEXAS
liSClL
YEll lEW ISSUES
. EIDDIG oumJ.IDIIG DP.B1' CDBDIED IEQOWIEHfS GtiiD !OfAL CXli!BmD iEQOIIEIIElft'S
9--30 PIDICIPAL nrrmst IWAL PIIICIPAL ImUSl IWAL PIDICIPAL ImUSl IW1L
1991 $7,6&5,000 $5,519,770 $13,204,770 $7 ,6&5,000 $5,519,770 $13,204,770
1992 7,400,000 4,947,384 12,347,384 1,275,000 2,187,075 3,462,075 8,675,000 7,134,459 15,809,459
1993 6,910,000 4,402,aaa 11,312,&88 1,275,000 1,627,766 2,902,766 8,185,000 6,030,654 U,215,654
1994 6,045,000 3,882,851 10,527,851 1,275,000 1,516,952 2,791,952 7,920,000 5,399,103 13,319,803
1995 6,110,000 3,315,411 9,505,471 1,275,000 1,407,28& 2,612,28& 7,455,000 4,792,766 12,247,766
1996 6,280,000 2,897,366 9,177,366 1,275,000 1,298,717 2,573,717 7,555,000 4,196,083 11,751,083
1997 6,019,434 2,567,266 8,656, 700 1,275,000 1,190,230 2,4&5,230 7,3",434 3,757,496 11,121,930
1998 6,090,076 2,110,591 8,200,667 1,275,000 1,081,828 2,356,828 7,365,076 3,192,419 10,557,495
1999 5,976,493 1,652,184 7,621,677 1,275,000 973,281 2,248,281 7,251,493 2,625,465 9,&76,95&
2000 3,514,986 3,258,861 6,m,u1 1,275,000 865,528 2,140,528 4,789,9&6 4,124,389 8,914,375
2001 3,144,441 2,593,737 5,738,171 1,270,000 771,743 2,0«1,743 4,414,441 3,365,480 7,779,921
2002 2,141,639 1,724,224 4,572,863 1,160,000 693,560 1,853,560 4,008,639 2,417,784 6,426,423
2003 2,684,6&2 1,013,971 3,768,653 1,160,000 617,338 1,m,338 3,144,682 1,701,309 5,545,990
20CM 1,~,000 464,163 2,009,163 1,160,000 540,563 1,700,563 2,705,000 1,004,726 3,709,726
2005 1,~,000 356,700 1,901,700 1,160,000 463,788 1,623,70 2,705,000 820,4&8 3,525,488
2006 1,545,000 251,162 1,796,162 1,165,000 388,238 1,553,231 2,710,000 639,400 3,349,400
'1J111 1,~,000 145,450 1,690,450 1,165,000 313,878 1,471,878· 2,710,000 459,328 3,169,328
2008 895,000 63,225 958,225 1,170,000 241,353 1,411,353 2,065,000 304,578 2,369,578
2009 565,000 16,950 511,950 1,165,000 171,6&& 1,336,60 1,730,000 188,638 1,918,638
2010· 1,165,000 103,012 1,26&,012 1,165,000 103,012 1,261,012
2011 1,165,000 34,338 1,199,338 1,165,000 34,338 1,199,338
$79,011,751 $41,324,221 $120,412,972 $24,380,000 $16,411,161 $40,86.1,161 $103,461,751 $57,112,382 $161,211,133
• ..
\
~·
CITY OF LUBBOCK, TEXAS
DIVISION OF GENERAL OBLIGATION DEBT
LESS: LESS: LESS: LESS:
W!TEN>RKS SEWER SYSTEM OOLF <XXJRSE SOLID WASTE GEmAL
FISCAL SYSTEK SYSTEM SYSTEII DISPOSAL SYSTEK PURPOSE
YEA! G!lfDAL GEHEiAL GEHERAL GEmAL GEHERAL
EHDIIG COJIBIIED OBLIGATIO! OBLIGATIOIJ OBLIGA'fiOI OBLIGATIO! OBLIGATIO!
9·30 IEQOIIEKEHTS IEQOilEKEIITS IEQUIIEXEKTS IEQOIIEIIEliTS IEQUIIEKEITS IEQOUEKEIITS
1991 $13,204,770 $4,309,742 2,221,415 $87,167 $6,586,446
1992 15,809,459 6,235,314 2,128,357 84,01& 204,928 7,156,842
1993 14,215,654 5,471,509 2,022,397 85,642 177,075 6,459,030
1994 13,319,803 5,092,255 1,977,1&6 82,043 168,105 6,000,214
1995 12,247,766 4,673,211 1,837,489 83,218 160,285 5,493,563
1996 11,751,083 4,449,522 1,836,264 84,224 153,558 5,227,516
1997 11,121,930 4,199,102 1,761,828 85,302 146,715 4,928,983
1998 10,557,495 3,980,574 1,690,010 81,425 139,758 4,665,728
1999 9,876,958 3,716,002 1,600,608 82,400 132,656 4,345,292
2000 8,914,375 3,342,359 1,469,966 83,025 125,469 3,893,556
2001 7,779,921 3,037,573 1,022,392 83,300 113,438 3,523,218
2002 6,426,423 2,562,599 846,406 83,225 2,934,193
2003 5,545,991 2,224,496 722,311 82,800 2,516,384
2004 3,709,726 1,639,570 624,930 1,445,226
2005 3,525,488 1,561,747 589,248 1,374,493
2006 3,349,400 1,486,568 553,442 1,309,390
2007 3,169,328 1,412,395 517,461 1,239,472
2008 2,369,578 1,118,638 138,156 1,112,785
2009 1,918,638 1,029,524 111,958 m,156
2010 1,268,012 879,863 388,150
2011 1,199,338 833,288 366,050
$161,281,133 $63,255,848 $23,671,824 $1,087,789 $1,521,985 $71,743,687
Honorable Mayor and City Council
City of Lubbock, T exa.s
Members of the City Council:
OFFICIAL SID FORM
April 2,, 1991
Reference is made to your Official Statement and Notice of Sale and Bidding Instructions, dated April!, 1991, of
$7,,00,000 CITY OF LUBBOCK, TEXAS ElECTRIC LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES 1991,
both of which constitute a part hereof.
For your legally issued Bonds, as described in said Notice of Sale and Bidding Instructions and Official Statement, we
will .2'8~~ par and. accrued interest from date of issue to date of delivery to us, plus a cash premium of S (./ for Bonds maturing and bearing Interest as follows:
Principal Interest Principal Interest
Maturitl Amount Rate Maturity Amount Rate
4~15~1992 $375,000 ¢'.;? () 96 11~15~2002 $37,,000 ~~96 11-U-1993 3n,ooo 9t ;)o 96 11-U-2003 3n,ooo ~ () 96
11-15-1994 37,,000 tj_;lo 96 11-15-2004 37,,000 ~96
4-U-19, 3n,ooo ?~96 4-15-200, 37,,000 6,2 .,-96
11-15-1996 3n,ooo ~..2t!l 96 11-U-2006 375,000 ~ . 96
IJ-U-1997 375,000 t;-::IO 96 4-U-2007 375,000 ~'.£L96
4-15~1998 375,000 /.7i"" 96 4-U-2008 375,000 ,6,f'i-96
11-U-1999 375,000 ~.2a 96 11-15-2009 375,000 li,z, 96
4-U-2000 37,,000 t::F096 4-15-2010 37,,ooo 6", ~ r 96
4-15~2001 37,,000 6~96 4~15-2011 37,,000 ~i~96
Our calculation (which is not a part of this bid) of the interest cost from the above Is: _ U
Total Interest Cost S 5/.2 0.). / ..J6 C. ' J
Less Premium 0
NET INTEREST COST
EFFECTIVE INTEREST RATE
s J; .2a ::J, ...~-6 2." .J()
.;:::;;;6;....;::;;~..;._~..;;....;.~2~_96
We are having the Bonds of the foJio:w~ maturities Jl'l. L L insured by t4,ULM(. at a premium of S 1 ?qflll).-b 0 , said premium to be paid by the Purchaser.
J<ny fees to be paid to the rating agencies as a result of said insurance will be paid by the City.
The Initial Bond shall be registered in the name of Prudential Securities Incorpo.ra\4ldwlll advise The
Depository Trust Company (''DTC") of registration instructions at least five business days prior to the date set for
Initial Delivery.
A Cashier's Check of the First City National Bank, Austin. Texas , in the amount of
$1,0,000.00, which represents our Good Faith Deposit (is attached hereto) or (has been made available to you prior to
the opening of this bid), and is submitted in accordance with the terms as set forth in the Official Statement and
Notice of Sale and Bidding Instructions.
We agree to accept delivery of the Bonds utilh:ing the Book-Entry-Only System through DTC and make payment for
the Initial Bond in immediately available funds in the Corporate Trust Division, Texas Commerce Bank National
AS$0Ciation, Lubbock, Texu, not later than 10:00 A.M., COT, on May 30, 1!191, or thereafter on the date the Bonds
are tendered for delivery, pursuant to the terms set forth in the Notice of Sale and Bidding Instructions.
The undersigned agrees to complete, execute, and deliver to the City, at least six business days prior to delivery of
the Bonds, a certificate relating to the "issue price" of the Bonds in the form and to the effect accompanying the
Notice of Sale and Bidding Instructions, with such changes thereto as may be acceptable to the City.
We agree to provide in writing the initial reoffering prices and other terms, if any, to the Financial Advisor by the
dose of the next business day after the award.
Respectfully submitted,
Prudential Securities Incorporated
ACCEPTANCE CLA
The above and foregoing bid is hereby In all things accepted by the City of Lubbock, Texas, subject to and in
accordance with the Notice of Sale and Bidding Instructions, this the 2'th of April, 1991. ~ ..
FULBRIGHT & JAWORSKI
2200 Ross AVENUE
T£LEPHON E: 214/655•6000
TEL£COPIER: 214/855•6200
Ms. Ranette Boyd
City Secretary
1625 13th Street
Lubbock, Texas 79457
SUITE 2600
DALLAS, TEXAS 7S201
April 15, 1991
RE: City of Lubbock -Notice of Meeting
Dear Ranette:
HOUSTON
WASHINGTON, D.C.
AUSTIN
SAN ANTONIO
OALLAS
N£W YORK
LOS ANGELES
LONOON
ZURICH
HONG KONG
Enclosed are Notices of Meeting for posting in
accordance with the attached memorandum. Said Notic~s felate
to the meetings of the City Council on April 25th and
Apri 1 26th and are concerned with the passage of ordinances
authorizing the issuance of bonds and obligations.
If a Notice of Meeting has already been posted and said
Notice includes the subject matter regarding the bonds and
obligations, the enclosed Notices may be discarded.
Also enclosed is a copy of each ordinance for your
perusal.
Should you have any questions, please advise.
MSW/ler
Enclosures
cc: Mr. Joe Smith
Mr. J. Robert Massengale
0 0 0 I 0 -l 2
\,
FULBRIGHT & JAWORSKI
2200 Ross AVENUE
SUITE 2800
DALL..AS, TEXAS 715201
HOUSTON
WASHINGTON, D. C.
TEL.I:PHON£:214/855•8000
TEL.I:COPIER: 214/855 •8200
AUSTIN
SAN ANTONIO
CAl.. lAS
NEW YOFIK
LOS ANGEI.ES
LONDON
ZURICH
HONG KONG April 16, 1991
Ms. Sherry Burger
Texas Commerce Bank
National Association
1314 Avenue K
Lubbock, Texas 79401
RE: $2,000,000 "City of Lubbock, Texas, General Obligation
Bonds, Series 1991"
$7,500,000 "City of Lubbock, Texas, Electric Light and
Power System Revenue Bonds, Series 1991"
$1, 145,000 "City of Lubbock, Texas, Combination Tax
and Solid Waste Disposal System Revenue Certificates
of Obligation, Series 1991"
$4,030,000 "City of Lubbock, Texas, Combination Tax
and Exhibition Hall/Auditorium (Limited Pledge)
Revenue Certificates of Obligation, Series 1991"
$16, 120,000 "City of Lubbock, Texas, Combination Tax
and Waterworks System Subordinate Lien Revenue
Certificates of Obligation, Series 1991"
$1,085,000 "City of Lubbock, Texas, Public Property
Finance Contractual Obligations, Taxable Series 1991"
Dear Ms. Burger:
As Paying Agent/Registrar for the six captioned series
of obligations, Texas Commerce Bank, together with the City and
The Depository Trust Company (DTC) will need to execute a
Letter of Representation relating to the book-entry delivery
through DTC. In this connection, we are enclosing herewith six
sets (4 copies -each set) of the Letter of Representations,
being one set for each issue.
We would request that these Letters be executed on
behalf of the Bank, and forwarded to Ms. Ranette Boyd, City
Secretary, at City Hall. The City proposes to approve and
execute these Letters on April 25, 1991. We will furnish you a
fully executed copy for each issue as soon as possible after
the meeting on April 25th.
6 s l 2 0
Ms. Sherry Burger
April 16, 1991
Page 2
If you
hesitate to call.
appreciated.
should have any questions, please do not
Your assistance in this matter is very much
MSW/ler
Enclosures
cc: Mr. Joe w. Smith
Ms. Ranette Boyd
Mr. J. Robert Massengale
6 5 3 Z D
Very truly yours,
Mark S. Westergard
FULBRIGHT & JAWORSKI
2200 Ross AVENUE
SUITE 2600
DALLAS, TEXAS 75201
HOUSTON
WASHINGTON, D.c.
TELEPHONE: 214/855·8000
TELECOPIER: 214/855·8200
AUSTIN
SAN ANTONIO
DALLAS
NEW YORK
LOS ANGELES
LONDON
ZURICH
HONG KONG April 15, 1991
Ms. Sherry Burger
Texas Commerce Bank
· National Association
1314 Avenue K
Lubbock, Texas 79401
RE: $2,000,000 "City of Lubbock, Texas, General Obligation
Bonds, Series 1991"
$7,500,000 "City of Lubbock, Texas, Electric Light and
Power System Revenue Bonds, Series 1991"
$1,145,000 "City of Lubbock, Texas, Combination Tax
and Solid Waste Disposal System Revenue Certificates
of Obligation, Series 1991"
$4,030,000 "City of Lubbock, Texas, Combination Tax
and Exhibition Hall/Auditorium (Limited Pledge)
Revenue Certificates of Obligation, Series 1991"
$16,120,000 "City of Lubbock, Texas, Combination Tax
and Waterworks System Subordinate Lien Revenue
Certificates of Obligation, Series 1991"
$1,085,000 "City of Lubbock, Texas, Public Property
Finance Contractual Obligations, Taxable Series 1991"
Dear Ms. Burger:
We have been advised that Texas Commerce Bank National
Association will serve as Paying Agent/Registrar for the six
captioned series of obligations. In this connection, we are
enclosing herewith six sets (4 copies -each set) of the Paying
Agent/Registrar Agreements, being one set for each issue.
We would request that these Agreements be executed on
behalf of the Bank, have attached to each copy a fee schedule
(Annex A) and forwarded to Ms. Ranette Boyd, City Secretary, at
City Hall. The City proposes to approve and execute these
Agreements on April 25, 1991. We will furnish you a fully
executed Agreement for each issue together with a copy of the
Ordinance passed by the City as soon as possible after the
meeting on April 25th.
6 5 l 9 D
Ms. Sherry Burger
April 15, 1991
Page 2
If you should have any questions, please do not
hesitate to call. Your assistance in this matter is very much
appreciated.
MSW/ler
Enclosures
cc: Mr. Joe W. Smith
Ms. Ranette Boyd
Mr. J. Robert Massengale
6 S 1 'J D
Very truly yours,
-rY/~4-Mar~ s. Westergar
FULBRIGHT & JAWORSKI
2200 Ross AvENUE
SUITE 2600
DALLAS, TEXAS 75201
HOUSTON
WASHINGTON, D.C.
TELEPHONE: 214/855·8000
TELECOPIER: 214/855•8200
AUSTIN
SAN ANTONIO
DALLAS
NEW YORK
LOS ANGELES
LONDON
ZURICH
HONG KONG
April 15, 1991
Ms. Sherry Burger
Texas Commerce Bank
National Association
1314 Avenue K
Lubbock, Texas 79401
RE: $2,000,000 •city of Lubbock, Texas, General Obligation
Bonds, Series 1991"
$7,500,000 "City of Lubbock, Texas, Electric Light and
Power System Revenue Bonds, Series 1991"
$1,145,000 "City of Lubbock, Texas, Combination Tax
and Solid Waste Disposal System Revenue Certificates
of Obligation, Series 1991"
$4,030,000 "City of Lubbock, Texas, Combination Tax
and Exhibition Hall/Auditorium (Limited Pledge)
Revenue Certificates of Obligation, Series 1991"
$16,120,000 "City of Lubbock, Texas, Combination Tax
and Waterworks System Subordinate Lien Revenue
Certificates of Obligation, Series 1991"
$1,085,000 "City of Lubbock, Texas, Public Property
Finance Contractual Obligations, Taxable Series 1991"
Dear Ms. Burger:
Enclosed herewith are four copies each of substitute
page 9 of the Paying Agent/Registrar Agreements relating to the
above described issues. In accordance with our conversation,
please substitute these pages in the documents you presently
have.
Should you have any questions, please advise.
JS/ler
cc: ~s. Ranette Boyd (w/encls.)
Mr. Joe Smith (w/encls.)
OOOlD-43
yours,
Slemmons
Legal Assistant
FULBRIGHT & JAWORSKI
2200 Ross AVENUE
SUITE 2600
DALLAS, TEXAS ?S201
HOUSTON
WASHINGTON, O.C.
TELEPHONE:214/S55•SOOO
TELECOPIER: 214/855•8200
AUSTIN
SAN ANTONIO
CALLAS
NEW YORII
LOS ANGELES
LONOON
ZURICH
HONG KONG
April 22, 1991
Ms. Ranette Boyd
City Secretary
P. 0. Box 2000
Lubbock, Texas 79457
RE: $2,000,000 "City of Lubbock, Texas, General Obligation
Bonds, Series 1991"
$7,500,000 "City of Lubbock, Texas, Electric Light and
Power System Revenue Bonds, Series 1991"
$1,145,000 "City of Lubbock, Texas, Combination Tax and
Solid Waste Disposal System Revenue Certificates of
Obligation, Series 1991"
$4,030,000 "City of Lubbock, Texas, Combination Tax and
Exhibition Hall/Auditorium (Limited Pledge) Revenue
Certificates of Obligation, Series 1991"
$16,120,000 "City of Lubbock, Texas, Combination Tax and
·Waterworks System Subordinate Lien Revenue Certificates
of Obligation, Series 1991"
$1,085,000 "City of Lubbock, Texas, Public Property
Finance Contractual Obligations, Taxable Series 1991"
Dear Ranette:
Enclosed herewith are two copies each of the Waiver of
Notice and Consent to Special Meeting to be executed by absent
member(s) in connection with the meeting to be held on
Apri 1 26, 1991.
Please return one copy of each Waiver and retain one
copy of each for the City's records.
yours,
Slemrnons
Legal Assistant
JS/ler
Enclosures
cc: Mr. Joe Smith (w/encls.)
OOOlD-41
FULBRIGHT & -JAWORSKI
2200 Ross AvENUE:
TELEPHONE: 214/855·8000
TELECOPIER: 214/8!55•8200
VIA FEDERAL EXPRESS
Ms. Ranette Boyd
City Secretary
1625 13th Street
Lubbock, Texas 79401
SUITE: 2800
DALLAS, TEXAS 7S201
May 2, 1991
HOUSTON
WASHINGTON, D.C.
AUSTIN
SAN ANTONIO
DALLAS
NEW YORK
LOS ANGELES
LONDON
ZURICH
HONG KONG
RE: $2,000,000 "City of Lubbock, Texas, General Obligation
Bonds, Series 1991"
$7,500,000 "City of Lubbock, Texas, Electric Light and
Power System Revenue Bonds, Series 1991"
$1,145,000 "City of Lubbock, Texas, Combination Tax and
Solid Waste Disposal System Revenue Certificates of
Obligation, Series 1991"
$4,030,000 "City of Lubbock, Texas, Combination Tax and
Exhibition Hall/Auditorium (Limited Pledge) Revenue
Certificates of Obligation, Series 1991"
$16,120,000 "City of Lubbock, Texas, Combination Tax and
Waterworks System Subordinate Lien Revenue Certificates
of Obligation, Series 1991"
$1,085,000 "City of Lubbock, Texas, Public Property
Finance Contractual Obligations, Taxable Series 1991"
Dear Ranette:
Enclosed are the minute
captioned ordinances and the
documents for each issue.
pages for each of
City's copies of
the above
executed
Thanks for all
finalized. If I can
advise.
JS/ler
Enclosures
cc: Mr. Joe Smith
00010-7
your help
be of any
in getting these documents
further assistance, please
truly yours,
f""UJ...-LA_.....,._ ~
Slemmons
Legal Assistant
FULBRIGHT & ~AWORSKI
2200 Ross AvENUE
SUIT£ 2600
DALLAS, TEXAS 7S201
HOUSTON
WASHINGTON, D.C.
£, TELEPHONE:214/S!IS•8000
~~0' «o.ECOPOEo. ,,./eos-a•oo
AUSTIN
SAN ANTONIO
DALLAS
NEW YORK
LOS ANGELES
LONDON
ZURICH
HONG KONG
~~· May 7, 1991
Ms. Ranette Boyd
City Secretary
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
RE: $2,000,000 "City of Lubbock, Texas, General Obligation
Bonds, Series 1991"
$7,500,000 "City of Lubbock, Texas, Electric Light and
Power System Revenue Bonds, Series 1991"
$1,145,000 "City of Lubbock, Texas, Combination Tax and
Solid Waste Disposal System Revenue Certificates of
Obligation, Series 1991"
$4,030,000 "City of Lubbock, Texas, Combination Tax and
Exhibition Hall/Auditorium (Limited Pledge) Revenue
Certificates of Obligation, Series 1991"
$16,120,000 "City of Lubbock, Texas, Combination Tax and
Waterworks System Subordinate Lien Revenue Certificates
of Obligation, Series 1991"
$1,085,000 "City of Lubbock, Texas, Public Property
Finance Contractual Obligations, Taxable Series 1991"
Dear Ranette:
Enclosed herewith is a fully executed Letter of
Representations relating to each of the above described issues
for the records of the City.
Very truly yours,
~---
Elbert M. Morrow
EMM/ler
Enclosures
cc: Mr. Joe Smith
00010-13
. . .
The Depository Trust Company
55 Water Street
New York, NY 10041
Attention: General Counsel's Office
Letter of Representations
TO BE COMPlETED BY ISSUER AND AGENT. IF ANY
City of Lubbock, Texas
~am<' ol Issuer
Texas Commerce Bank National Association
Re: $7,500,000 "City of Lubbock, Texas, Electric Light and
Power System Revenue Bonds,, Series 1991"
Gentlemen: (Issue Description)
April 26, 1991
!Date I
The purpose of this letter is to set out certain matters relating to the abo\'e-referenced Bonds (the "Bonds''). National Association
Texas Commerce Bank/ is acting as Trustee, Paying Agent, Fiscal Agent, or other Agent of the Issuer \\ilh
(lhe "Agent1
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 as of May 15 • 19 91 (the "Oocument(s)").
• . Incorporated P,rudential Securities I is distributing the Bonds through The Depository Trust Company ("'OTC").
(lhe "Underwnter1
To induce DTC to accept the Bonds as eligible for deposit at DTC and act in accordance with its Rules with respect
to the Bonds, the Issuer and the Agent, if any, make the following representations to DTC:
1. Subsequent to Closing on the Bonds on May 30 • 19 91 , there shall be deposited with OTC
one Bond certificate in registered form registered in the name of DTC's nominee. Cede&: Co., for each stated maturity
of the Bonds in the face 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 $100,000,000, one
certificate will be issued with respect to each $100,000,000 of principal amount and an additional certificate will be
·issued with respect to any remaining principal amount. Each $100,000,000 Bond certificate shall bear the following
legend:
"Unless this certificate is presented by an authorized representative of The Depository Trust Company to the
Issuer or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name
of Cede &: Co. or such other name as requested by an authorized representative of The Depository Trust Company and
any payment is made to Cede&: Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
. OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof, Cede &: Co., has an interest
herein.• ·
2. [n th~ event of any solicitation of consents from .md voting by holders of the Bonds, the Issuer or Agent, shall
~tablish a record date for such purposes and give DTC notice of such record dat~ not k-ss than 15 calendar days in
advance of such record date to th~ extent possible.
3. [n the event of a redemption or any other similar transaction resulting in retirement of all Bonds outstanding or a
reduction in aggregate principal amount of Bonds outstanding ("full or partial redemption") or an advance refunding
of all or part of the Bonds outstanding, the Issuer or Agent, shall give DTC notice of such event 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 the proceeds are
deposited in escrow.
4. In the event of a partial redemption or an advance refunding of part of the Bonds outstanding, the Issuer or Agent
shall send DTC a notice specifying: 1) the amount of the redemption or refunding; 2) in the case of a refunding, the
maturity date(s) established under the refunding; and 3) the date such notice is to be mailed to Bondholders or
published ("the Publication Date"). Such notice shall be sent to DTC by a secure means (e.g., legible facsimile
transmission. registered or certified mail, overnight express 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. The
Issuer or Agent will forward such notice either in a separate secure transmission for each CUSIP number or in a secure
transmission for multiple CUSIP numbers which includes a manifest or list of each CUSIP submitted in that
transmission. <The Issuer or Agent sending such notice shall have a method to verify subsequently the use of such
means and timeliness of the notice.) The 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 the proceeds are deposited in escrow.
5. In the event of an invitation to tender the Bonds, notice to Bondholders by the Issuer or Agent, specifying the
tenns of the tender and the date such notice is to be mailed to Bondholders or published ("the Publication Date") shall
be ~nt to DTC. by a secure means (e.g .• legible facsimile transmission, registered or certified mail, overnight express
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. (The Issuer or Agent sending such notice shall have a
method to verify subsequently the use of such means and timeliness of the notice.)
6. All notices and payment advices sent to DTC shall contain the CUSIP number of the Bonds.
7. Notices to DTC by facsimile transmission shall be sent to DTC's Call Notification Department at (516) 227-4039 or
(516) 227-4190. The Agent shall confirm DTC's receipt of such facsimile transmission by telephoning the Call
Notification Department at (516) 227-4070. Notices to DTC by mail or any other means shall be sent to:
The Depository Trust Company
Call Notification Department
Muni Reorganization Manager
711 Stewart Avenue
Garden City, NY 11530
8. Interest payments shall be received by Cede & Co., as nominee of DTC, or its registered assigns in next-day funds
on each payment date (or the equivalent in accordance with existing arrangements between the Issuer or Agent and
DTC). Such payments shall be made payable to the order of Cede&: Co.
9. Payments of principal shall be received by Cede & Co., as nominee of DTC, or its registered assigns in next-day
funds on each payment date. Principal payments shall be made payable to the order of Cede & Co., and shall be
addressed as follows:
The Depository Trust Company
Muni Redemption Department
55 Water Street-50th Floor
New York, NY 10041
Attention: Collection Supervisor
10. DTC may direct the Issuer or Agent to use any other telephone number for facsimile transmission, address, or
department of DTC as the number, address or department to which payments of interest or principal or notices may be sent.
11. In the event of a redemption, acceleration or any other similar transaction (e.g., tenders made and accepted in
response to the Issuer's or Agent's invitation) necessitating a reduction in aggregate principal amount of Bonds
outstanding or an advance refunding of part of the Bonds outstanding, DTC, in its discretion, (a) may request the
lsstier or Agent to issue and authenticate a new Bond certificate or (b) shall make an appropriate notation on the Bond
certificate indicating the date and amounts of such reduction in principal, except in the case of final maturity, in which
case the certificate must be presented to the Issuer or Agent prior to payment.
12. In the event the Issuer determines pursuant to the Document(s) that beneficial owners of the Bonds shall be able
to obtain certificated Bonds, the Issuer or Agent shall notify DTC of the availability of Bond certificates and shall issue,
transfer and exchange Bond certificates in appropriate amounts as required by DTC and others.
13. DTC may determine to discontinue providing its service as securities depository with respect to the Bonds at any
time by giving reasonable notice to the Issue or Agent (at which time DTC will confirm with the Issuer or Agent the
aggregate principal amount of the Bonds outstanding) and discharging its responsibilities with respect thereto under
applicable law. Under such circumstances, whenever DTC requests the Issuer and the Agent to do so, the Agent and
the Issuer will cooperate with DTC in taking appropriate action to make available one or more separate certificates
evi~endng the Bonds to any DTC Participant having Bonds credited to its DTC account.
l~. Nothing herein shall be deemed to require the Agent to advance funds on behalf of the Issuer.
Note•:
a. If there is no organization acting as Agent for the Issuer, and
aii.Obrtgations in this Letter of Representations are to be assumed
solely by the Issuer. references to such Agent may be inked out.
1): Neither DTC nor (Cede & Co.) provides consents with respect
to :any security. Under Its usual procedures. DTC mails an
omnibus Proxy to the Issuer as soon as possible after the record
date. The Omrubus Proxy assigns Cede & Co. 'I voting rights to
thOse Participants having the security credited to their accounts en
the record date (identified in a listing attached to the Omnibus
PrOxy). The requirement to advise DTC of the record date for the
.solicitation of consents is set forth in paragraph 2 of the letter.
~ Under Rules of the Municipal Securities Rulemaking Board
relating to •good delivery,· a municipal securities dealer must be
able 10 determine the date that a notice of partial call or of an
adVance refunding of part of an issue is published (the ·Publication
Date1. The establishment of such a Publication Date is addressed
in Paragraph 4 of the letter.
cc: Underwriter
Underwriter's Counsel
Very truly yours,
Bank National Association
City of Lubbock, Texas
/ • "iAUtt\\riZedd~rr's Signature)
Mayor
lntlcl
SCHEDULE A
Year of Principal Interest
Stated Maturity Amount Rate
1992 $375,000 9.20 \
1993 375,000 9.20 \
1994 375,000 9.20 \
1995 375,000 9.20 \
1996 375,000 9.20 \
1997 375,000 9.20 \
1998 375,000 8. 75 \
1999 375,000 6.20 \
2000 375,000 6.20 \
2001 375,000 6.30 \
2002 375,000 6.40 \
2003 375,000 6..5'0%
2004 375,000 6.50 \
2005 375,000 b.'25\
2006 375,000 b.'25\
2007 375,000 b.'25\
2008 375,000 b":Z's-\
2009 375,000 b.'25\
2010 375,000 o:n-,
2011 375,000 6.25 \
....
FULBRIGHT & JAWORSKI
2200 Ross AVENUE
TELEPHONE: 214/855·8000
TELECOPIER: 214/855•8200
Ms. Ranette Boyd
City Secretary
P. 0. Box 2000
Lubbock, Texas 79457
SUITE 2800
DALLAS, TEXAS 75201
April 16, 1991
HOUSTON
WASHINGTON, D.C.
AUSTIN
SAN ANTONIO
DALLAS
NEW YORK
LOS ANGELES
LONDON
ZURICH
HONG KONG
RE: $7,500,000 "City of Lubbock, Texas, Electric Light and
Power System Revenue Bonds, Series 1991"
Dear Ms. Boyd:
Enclosed herewith are the proceedings relating to the
issuance of the above described bonds. 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 Texas Commerce Bank and requested that signed
copies be delivered to you before April 25th. The enclosures
are as follows:
I . f 1. Two cop1es o
issuance of the bonds. When
executed, one copy is for the
be returned to us.
/
the Ordinance authorizing the
completed (Sections 2 and 34) and
City's records and one copy is to
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. Five1copies 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. Five/ copies of the General Certificate to be
completed as to paragraph 1, dated and executed. Retain one
copy for your files and return four copies to us.
J 5. Five copies of Signature and No-Litigation
Certificate to be executed by the Mayor and City Secretary and
their signatures verified by the City's depository bank. The
65l7D
• Ms. Ranette Boyd
April 16, 1991
Page 2
seal of the City and the seal of the bank are to be impressed
on each Certificate. DO NOT DATE these Certificates as they
will be dated 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 Bond.
6. Four/ copies of Certificate as to Official
Statement to be signed but is not to be dated. Return all
signed copies to ~
7. Two copies each of five letters 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 .
./
8. The Initial Bond to be signed, sealed and
returned to us. I 9. Twenty definitive bonds, being one bond for each
year of maturity, to be signed and sealed. These are prepared
because of the book-entry delivery provisions. Return all
signed bonds to us.
10. Three copies of Form 8038-G to be signed and
returned to us. We will complete the form and file with
Internal Revenue Service after delivery of the bonds.
Should you have any questions
enclosures, please advise. I will be attending
April 25th and 26th to offer any assistance
documents completed and executed.
regarding the
the meetings on
in getting the
Very truly yours,
MSW/ler
Enclosures
cc: Joe w. Smith (w/encls.)
65270
-w;~--r.~~
Mark s. Westergard
•'
. ..
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
AFFIDAVIT OF PUBLICATION
§
§
§
BEFORE ME, the undersigned authority, on this day
personally appeared I,.!. Auf; 1 1 , who, after being
by me duly sworn, deposes and says that (s)he is the
Account Manal!i!er 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 SALE," hereto attached, was published in said paper
·on the following dates:
MARCH 24, 1991;
MARCH 31, 1991;
APRIL 7, 1991;
APRIL 14, 1991;
APRIL 21, 1991;
the date of the first publication of said notice being at least
thirty (30) days prior to the date of the public sale for the
obligations referred to therein.
of
SWORN TO AND SUBSCRIBED BEFORE ME, this the 22
APril , 1991.
day
r--,---.~ ""t ~,·~-!"'-'l't-~~P'_<''"-'
. IIIOTICE 01' SALE .
CITY OF LUBBOCK. 1'1XA1
' . u. Cit¥ eounc« 01111e cnv 01
Lubbock. T~xu. will receive , =-?.::e,..;:o.a::====~~~I-"~:-?S~..::!oo..a..-:;l>-.t!=:};...t:::=:;.c~ sealed bids at the City Council • ~ Chambers. Municipal c:omptex.
1.625 l3th Street, Lubbock, Texas. until n:oo A.M .. Cefttral oevntM My Time. Aorll 2S. 1991. ror 111e (ollow-
"'" deKrlbed bOnds: .
(Notary Seal) . .
S7..500.000 cnv Oll.llllbOC:k. Taxes EleCtric Lklhl end Power S~tem
Revenue Bonds. iSei'IH 1991
59 6 1 E
Dated May !$; 1991; p(lnciPel ctillt APril IS. 01 each vear ts follow1: us,aoo each year 1992 throwh 20111 lntenst roavable Cctober 1$, lt91,1incleiocll APtiiiUncl October ,, lherealler. TheCIIY reserves the rltht, •t .n. oplion. to redeem
lloncls melurlllll on and after APfll '15. 1002. on Aprll 15. 2001. or ,.,,., dille thereafter, at the par .value ·tllereol plus accrued Interest to the dilte tl~ tor roavment. . ·
. Further lntormiltlon may be
.obtained from the DIVIsion of 1'1-nllnca, cnv. of I..UilllaC:k. p .o. IIIDX sooo, Lubbock. Texas 1,.51; or trom First SOIIthwesl C:omroanv.
' 5110 .FitS! Cit., C•nter, 1100 Peclftc Avenue, Dltllas. Texas 7$201. Flo
Mnclel Conlullant•llllbe c;nv.
Renetta 8DYd
~~ ::t:k. TeJCU
R·761
,.
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
AFFIDAVIT OF PUBLICATION
§
§
§
BEFORE ME, the undersigned authority, on this day
personally appeilred T.J. Aufill , who, after being
by me ··duly ·sworn, deposes and says that · (s)he is the
Account Manaser of the Lubbock Avalanche-Journal, which is a
newspaper published and having general circulation in the City
of Lubbock, Texas, and that a true and correct copy of the
"NOTICE OF INTENTION TO ISSUE CITY OF LUBBOCK, TEXAS, REVENUE
BONDS," hereto attached, was published in said paper on the
following dates:
March 24, 1991; and
March 31, 1991
the date of the first publication of said notice being
fifteen ( 15) days prior to the date stated therein
passage of the ordinance authorizing the issuance
revenue bonds.
of
SWORN TO APril
TONYA HENRY
Notaty Public
STATE OF TEXAS
tar Comrn bp .NOll !S f994
' ..
(Notary Seal)
5944£
~-h t
the
at least
for the
of the
6 day
·.
R-793
THE STATE OF TEXAS
COUNTY OF LUBBOCK H"
Before me Ton ':I a en r ':I Notary Public in and for Lubbock County, Texas on this day
personallyappeared T.J. Aufill' Account Mana.E!er · oftheSouthwesternNewspa-
pers Corporation, publishers of the Lubbock Avalanche-Journal -Morning, and Sunday, who being by me duly
sworn did depose and say that said newspaper has been published continuously for more than fifty-two weeks pri-
or to the first insertion of this _.._1 e:==s_,a_.l........:.n.:..:o::...t=-i=c-=-e---------------------
------.,---:--....---.-.,.....---no. 8 2 2 54 3 at Lubbock County, Texas and the attached print-
ed copy of the I e .E! a I n ° t i c e is a true copy of the original and was printed in the Lubbock
Avalcuscg7-J~uina}~B th~ f~WJ~Il§eates:_.....~:A:u:P:...!..r...e.i...!...l--'2~7~·~1~9~9=1 ___________ _
Account Mana.E!er
LUBBOCK AVALANCHE-JOURNAL
Southwestern Newspaper Corporation
FORM 58-Ill
-·~~\-
OROIIIIANCI!· NO. fA31 "
fAN ORDINANCE AUTHOR1Z!NO ~"THE 1$SVANCE OF-"CITY OF',
LVBBOCK, TEXAS, CQMBINA·
TION T4X AND SOLID WASTE
. DISPOSAL SYSTEM R"EVENUE ~ CERTIFIC4TES OF OBLIGA·
I"TION. SERIES 1'191"1 LEVYING
i ~~L'i>~~!l;~:EP~J:tR~;~: r~~~ ~~JE~~~:~~~~~~i~~ f~~I;!DF~:s:~E D~~~:~T$~~ ~SAID CERTIFICATES; P·RE· ~SCRIBING THE TERMSAt,IO DE·
;TAILS OF SUCH CERTIFICATES ~AND RESOLVING OTHER MAT• ~ TERS INCIDENT AND RELATED <TO THE ISSVANCE, SALE, SECU·
IRITY, PAYMENT AND OELIV•
ERY OF SAID CERTIFICATES,
INCLUDING THE APPROVAL
'
"AND DISTRIBUTION OF AN OF·
FICIAL STATEMENT PERTAIN•
lNG THERETO; AND PROVID•
lNG AN EFFECTIVE DATE. ' (11.1-45.000) . . ' .
" .
I . ORDINANCE NO; Jl32
fAN ORDINAtfCE AUTHORIZING ~THE ISSVANCE.OF $7,500.000
, "CITY OF LUBBOCK, TEXAS, i ELECTRIC LIGHT AND POWER
t SYSTEM REVENUE BONDS. $E·
IRIES lt9l"; PRESCRIBING THE
· FORMS, TERM$. AND PROVI· SIONS OF SAID BONOS; PI..EOO. ' lNG THE NET REVENUES OF THE CITY'$ ELECTRIC LIGHT
AND POWER SYSTEM TO THE
PAYMENT OF THE PRINGIPAL OF AND INTEREST ON SAID BONOS; ENACTING PROVI•
I
SIONS INCIDENT AND RE\;AT·
EO TO THE ISSUANCE. PAY·
111\I!NT, SEC:ORil'V, SAI.I!! AND
DEI.IVERY OF SAID 80NOS, INr
Q.UOINO 'n4E APPROVAL AND Oit.T11180TION OF AN OPFI· Cllt.LSTATEMEMTPERTAINING
THERETO. AND PROVIDING AN
EFFECTIVE DATiii. _
ORDINANCE NO. 946. ,, . ,
AN ORDINANCE AUTHOR;,INq THE ISSUANCE OF "CITY OF' ~UB80CK, TEXAS, (OM81!'i!A,-TION TAX AND EXH181TIOti
HALLIAUOITORIUM (LIMITE!)
·PLEDGE) REVENUE CERJIFI·
CATES ()F OBLIGATION, Sliit
liliES It'll" I SPI:CIFYING THE
TERMS AND FEATURES OF
SAID CERTIFICATIU: PROVII>-
, lNG FOR THE PAYMENT OF SAID CERTIFICATE$ OF OBLI; GATION IIY THE LEVY OF AN
: AO VALOREM TAX UPON ALL l'AXA8LE PROPERTY WITHIN : THE CitY· AND A LIMITED
VPLEDGE OF THE NET. REV·
:• ENUES FROM THE OWNERSHIP
OF THE CITY'S EXHIBI.T.ION
HALL/AUDITORIUM; AND R&·
SOLVING OTHER MATTERS IN· .CIOENT AND RELATING TO THE ISSUANCE, PAYMENT, SE·
CURITY, SALE AND DE&..IV'eRY .OF SAID CERTIFICATES, IN· 1:1.UDINO THE APPROVAL AND
OISTRI8UTION OF AN OFFI•
CIAL STATeMENT PERTAiNING
fliiERETQ _AND THE I!QC:U• TION OF A PA'W'Ut$
AGENT/RI!()ISTRAR AGREE!·
MI!:NT IN CONNECTION THERI!"
WITH; AND PROVIDING FOR AN I!I'F~~Trve ~.!!:._1_~~(1001,
l.~~;;:v;;;;:.F;;,~
I.UII80CK, TEXAS, COMBINa..
,TION TAX AND WATERWORKS
·SYSTEM SUBORDINATE LIEN
,REVENUE CERTIFICATES OF
OBLIGATJO.N, SERIES 1991'';
tLEVYING AN AD VALOREM' ,TAX UPON ALL TAXABLE •PROPERTY IN THE CITY AND
:.PLEDGING THE NET REV•
. ENUES OF THE CITY'S WAT£R~·
, WORKS SYSTEM FOR THE.PA\'.~.
.ME NT OF SAID CERTIFICATES· 'PRESCRIBING THE TERMS AND
,DETAILS OF SUCH CERTIFI· CATES; PRESCRIBING THE
>TERMS AND DETAILS OF SlJ<;M ·
,CERTIFICATES AND RESOLY·
· ttfG OT.HER MATTERS'INCW
DENT AND RELATED TO·TttE
,·ISSUANCE,_SALE, SECURi'l'y·>
:PAYMENT AND DELIVERY OF
1SAIO CERTIFICATES, INC:LUO··
, lNG THE APPROVAL AND DIS·
1TRIBUTION OF AN OFFICIAL ,STATEMENT PERTAINING
'_ .. T.HERETO:.AND PROVIDING AN EFFECTIVE OATE. 1$16,120,000) <' ' d O~INANCE NQ.9<13;1-
ll\N ORDINANCE APPROVING AND AUTHORIZING THE EXe.'
CUT ION AND DELIVERY OF
, "CITY OF~_ LUBBOCK, TEX!~$
PUBLIC PROPERTY FINANCE CON'TRACTUAL OBLIGATION$.
TAXABLE SERII:s 1'191"; SPECI· FYING THE TERMS OF·SUCH CONTRACTS; MAKING PROVI-SIONS FOR THE PAYMENT
THEREOF;"ANO RESOLVmG·
OTHER MATTERS INCIDENT
AND RELATED TO THE EXECw" TION, PERFORMANC!;, AN .
PAYMENT OF SUCH Cll" ;·
"TRACTS, INCLUDING Ttl!! AP,
PllOVAL AtflHiX&CI,ITlON OF A
SPeCIAL I!SCROW Ol!f>OSIT
AGREEMENT FOR THE ACQW· · SittON OF PROPERTY; AN(> PRO'IIIOING AN &FFI!CTIY& DATE. ISl.oB$.000)
R-1h