HomeMy WebLinkAboutOrdinance - 9226-1988 - Issuance Of $5,000,000 Combined Tax And Sewer System Subordinate Lien - 09/25/1988Ordinance #9226 First Read1ng, Aug. 25, J9RR
Second Reading, Aug. 26, 1988
AN ORDINANCE authorizing the issuance of $5,000,000
11 CITY OF LUBBOCK, TEXAS, COMBINATION TAX AND
SEWER SYSTEM SUBORDINATE LIEN REVENUE
CERTIFICATES OF OBLIGATION, SERIES 1988 u;
providing for the payment of said certifi-
cates of obligation by the levy of an ad
valorem tax upon all taxable property within
the City and a pledge of the net revenues
derived from the operation of the City's
Sewer System; providing the terms and
conditions of such certificates of obliga-
tion and resolving other matters incident
and relating to the issuance, payment, and
security, of said certificates of obliga-
tion, including the approval and execution
of a Purchase Contract and the approval and
distribution of an Official Statement
pertaining thereto; and providing an
effective date.
WHEREAS, notice of the City Council's intention to issue
certificates of obligation in the maximum principal amount of
$5,000,000 for the purpose of paying contractual obligations to
be incurred for (i) 'the purchase of (a) additional land for
authorized needs and purposes, to wit: a sewer farm and (b)
the expansion and upgrading of the land-application site
(including the construction of new irrigation systems and
piping on existing and newly acquired land, construction of a
terminal storage reservoir, and other construction and
improvement in connection therewith) , and (ii) the payment of
professional services, has been duly published in Lubbock
Avalanche Journal, a newspaper hereby found and determined to
be of general circulation in City of Lubbock, Texas, on
July 31, 1988, and August 7, 1988, the date of the first
publication of such notice being not less than fourteen ( 14)
days prior to the tentative date stated therein for the passage
of the ordinance authorizing the issuance of such certificates
of obligation; and
WHEREAS, no petition protesting the issuance of the
certificates of obligation described in the aforesaid notice,
signed by at least 5% of the qualified electors of the city,
has been presented to or filed with the City Secretary on or
prior to the date of the passage of this Ordinance; and
WHEREAS, the City Council hereby finds and determines
that the certificates of obligation described in such notice
should be authorized at this time; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK, TEXAS:
SECTION 1: Authorization, Desianation, Principal
Amount, Purpose. Certificates of obligation of the City shall
be and are hereby authorized to be issued in the aggregate
principal amount of $5, ooo, 000, to be designated and bear the
title 11 CITY OF LUBBOCK, TEXAS, COMBINATION TAX AND SEWER SYSTEM
SUBORDINATE LIEN REVENUE CERTIFICATES OF OBLIGATION, SERIES
1988" (hereinafter referred to as the "Certificates"), for the
purpose of paying contractual obligations incurred with respect
to {i) the purchase of (a) additional land for authorized needs
and purposes, to wit: a sewer farm and {b) the expansion and
upgrading of the land-application site {including the
construction of new irrigation systems and piping on existing
and newly acquired land, · construction of a terminal storage
reservoir, and other construction and improvement in connection
therewith), and ( ii) professional services, pursuant to
authority conferred by and in conformity with the Constitution
and laws of the State of Texas, including the Certificate of
Obligation Act of 1971, as amended (Subchapter c of Chapter
271, Local Government Code).
SECTION 2: Fully Registered Obligations -Authorized
Denominations -Stated Maturities -Interest Rates -Date. The
Certificates are issuable in fully registered form only, shall
be dated August 15, 1988 (the "Certificate Date"), and shall be
in denominations of $5,000 or any integral multiple thereof
{within a Stated Maturity) and the Certificates shall become
due and payable on February 15 in each of the years and in
principal amounts {the ,.Stated Maturities") and bear interest
at the per annum rates in accordance with the following
schedule:
Year of Principal Interest
Stated Maturity Amount Rate(s)
1990 $100,000 6.00\
1991 100,000 6.25\
1992 125,000 6.50\
1993 175,000 6.60\
1994 250,000 6.75\
1995 250,000 6.90\
1996 325,000 7.00\
1997 325,000 7.10\
1998 325,000 7.20\
1999 325,000 7.30\
2000 325,000 7.40\
2001 325,000 7.50\
2002 325,000 7.60%
2003 325,000 7.70\
2004 350,000 7.75%
2005 350,000 7.80\
2006 350,000 7.85\
2007 350,000 7.90\
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The Certificates shall bear interest on the unpaid
principal amount thereof from the Certificate Date at the per
annum rate(s) shown above in this section (computed on the
basis of a 360-day year of twelve 30-day months). Interest on
the Certificates shall be payable semiannually on February 15
and August 15 in each year, commencing February 15, 1989.
SECTION 3: Payment of Certificates -Paying Agent/
Registrar. The principal of, premium, if any, and interest on
the Certificates shall be payable, without exchange or
collection charges to the registered owner 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 selection and appointment of Texas Commerce Bank,
National Association, Lubbock, Texas, to serve as Paying Agent/
Registrar for the Certificates is hereby approved and confirm~
ed, 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 (the "Security Register") for
the registration, payment, and transfer of the Certificates,
all as provided herein, in accordance with the terms and
provisions of a "Paying Agent/ Registrar Agreement" and such
reasonable rules and regulations as the Paying Agent/Registrar
and the City may prescribe. The City covenants to maintain and
provide a Paying Agent/Registrar at .~11 times until the
Certificates are paid, and any successor Paying Agent/Registrar
shall be a bank, trust company, financial institution, or other
entity duly qualified and legally authorized to act as and
perform the duties and services of Paying Agent/Registrar.
Upon any change in the Paying Agent/Registrar for the
certificates, the City agrees to promptly cause a written
notice thereof to be sent to each registered owner of the
Certificates by United States mail, first-class postage
prepaid, which notice shall also give the address of the new
Paying Agent/Registrar.
Both principal of, premium, if any, and interest on the
Certificates, due and payable by reason of maturity or
otherwise, shall be payable only to the registered owners of
the Certificates (hereinafter referred to as the "Holder" or
"Holders") 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 Certificates,
shall be payable only upon presentation and surrender of the
certificates to the Paying Agent/Registrar at its principal
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office. Interest on the Certificates shall be paid to the
Holder 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 by United
States Mail, first class postage prepaid, to the address of the
registered owner recorded in the Security Register or ( ii) by
such other method, acceptable to the Paying Agent/Registrar,
requested by, and at the risk and expense of, the Holder.
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 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
3ail, first class postage prepaid, to the address of each
Holder appearing on the 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.
SECT I ON 4 : Redemption. (a) Option a 1 Redemption. The
Certificates having Stated Maturities on and after February 15,
1999, shall be subject to redemption prior to maturity, at the
option of the City, in whole or in part in principal amounts of
$5,000 or any integral multiple thereof (and if within a Stated
Maturity by lot by the_Paying Agent/Registrar), on February 15,
1998 or on any date thereafter at the redemption price of par
plus accrued interest to the date of redemption.
(b) Exercise of Redemption Option. At least forty-five
( 45) days prior to a redemption date for the Certificates
(unless a shorter notification period shall be satisfactory to
the Paying Agent/Registrar), the City shall notify the Paying
Agent/Registrar of the decision to redeem Certificates, the
principal amount of each Stated Maturity to be redeemed, and
the date of redemption therefor. The decision of the City to
exercise the right to redeem Certificates shall be entered in
the minutes of the governing body of the City.
(c) Selection of Certificates for Redemption. If less
than all OUtstanding Certificates of the same Stated Maturity
are to be redeemed on a redemption date, the Paying Agent/
Registrar shall treat such Certificates as representing the
number of Certificates Outstanding which is obtained by
dividing the principal amount of such Certificates by $5, ooo
and shall select the Certificates to be redeemed within such
Stated Maturity by lot.
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{d) Notice of Redemption. Not less than thirty {30)
days prior to a redemption date for the Certificates, a notice
of redemption shall be sent by United States Mail, first class
postage prepaid, in the name of the City and at the City • s
expense, to each Holder of a Certificate to be redeemed in
whole or in part at the address of the Holder appearing on the
Security Register at the close of business on the business day
next preceding the date of mailing such notice, and any notice
of redemption so mailed shall be conclusively presumed to have
been duly given irrespective of whether received by the Holder.
All notices of redemption shall {i) specify the date of
redemption for the Certificates, {ii) identify the Certificates
to be redeemed and, in the case of a portion of the principal
amount to be redeemed, the principal amount thereof to be
redeemed, {iii) state the redemption price, {iv) state that the
Certificates, or the portion of the principal amount thereof to
be redeemed, shall become due and payable on the redemption
date specified, and the interest thereon, or on the portion of
the principal amount thereof to be redeemed, shall cease to
accrue from and after the redemption date, and {v) specify that
payment of the redemption price for the Certificates, or the
principal amount thereof to be redeemed, shall be made at the
principal office of the Paying Agent/Registrar only upon
presentation and surrender of the Certificates. If a
Certificate is subject by its terms to prior redemption and has
been called for redemption and notice of redemption has been
duly given as hereinabove provided, such Certificate {or the
principal amount thereof to be redeemed) shall become due and
payable and interest thereon shall cease to accrue from and
after the redemption date therefor; provided moneys sufficient
for the payment of such Certificate {or of the principal amount
thereof to be redeemed) at the then applicable redemption price
are held for the purpose of such payment by the Paying
Agent/Registrar.
SECTION 5: Registration Transfer Exchange of
Certificates -Predecessor Certificates. A Security Register
relating to the registration, payment, and transfer or exchange
of the Certificates shall at all times be kept and maintained
by the City at the principal office of the Paying Agent/
Registrar, and the Paying Agent/Registrar shall obtain, record,
and maintain in the Security Register the name and address of
each registered owner of the Certificates issued under and
pursuant to the provisions of this Ordinance. Any Certificate
may, in accordance with its terms and the terms hereof, be
transferred or exchanged for Certificates of other authorized
denominations upon the Security Register by the Holder, in
person or by his duly authorized agent, upon surrender of such
Certificate to the Paying Agent/Registrar for cancellation,
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accompanied by a written instrument of transfer or request for
exchange duly executed by the Holder or by his duly authorized
agent, in form satisfactory to the Paying Agent/Registrar.
Upon surrender for transfer of any Certificate 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 Certifi-
cates, 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 Certificate or
Certificates surrendered for transfer.
At the option of the Holder, Certificates may be
exchanged for other Certificates of authorized denominations
and having the same Stated Maturity, bearing the same rate of
interest, and of like aggregate principal amount as the
Certificates surrendered for exchange upon surrender of the
Certificates to be exchanged at the principal office of the
Paying Agent/Registrar. Whenever any Certificates are so
surrendered for exchange, the Paying Agent/Registrar shall
register and deliver new Certificates, executed on behalf of,
and furnished by the City, to the Holder requesting the
exchange.
All Certificates issued upon any transfer or exchange of
Certificates shall be delivered at the principal office of the
Paying Agent/Registrar, or sent by United States mail, first
class postage prepaid, to the Holder 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 Certificates surrendered
in such transfer or exchange.
All transfers or exchanges of Certificates pursuant to
this Section shall be made without expense or service charge to
the Holder, except as otherwise herein provided, and except
that the Paying Agent/Registrar shall require payment by the
Holder requesting such transfer or exchange of any tax or other
governmental charges required to be paid with respect to such
transfer or exchange.
Certificates cancelled by reason of an exchange or
transfer pursuant to the provisions hereof are hereby defined
to be .. Predecessor Certificates, .. evidencing all or a portion,
as the case may be, of the same obligation to pay evidenced by
the new Certificate or Certificates registered and delivered in
the exchange or transfer therefor. Additionally, the term
"Predecessor Certificates" shall include any Certificate
registered and delivered pursuant to Section 24 hereof in lieu
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of a mutilated, lost, destroyed, or stolen Certificate which
shall be deemed to evidence the same obligation as the
mutilated, lost, destroyed, or stolen Certificate.
SECTION 6: Execution -Registration. The Certificates
shall be executed on behalf of the City by the Mayor under its
seal reproduced or impressed thereon and countersigned by the
City Secretary. The signature of said officers on the
Certificates may be manual or facsimile. Certificates bearing
the manual or facsimile signatures of said individuals who are
or were the proper officers of the City on the Certificate Date
shall be deemed to be duly executed on behalf of the City,
notwithstanding that such individuals or any of them shall
cease to hold such offices prior to the delivery of the
Certificates to the initial purchaser(s), and with respect to
Certificates delivered in subsequent exchanges and transfers,
all as authorized and provided in the Bond Procedures Act of
1981, as amended.
No Certificate shall be entitled to any right or benefit
under this Ordinance, or be valid or obligatory for any
purpose, unless there appears on such Certificate either a
certificate of registration substantially as set forth in the
form of the In~tial Certificate provided in Section sc,
manually executed by the Comptroller of Public Accounts of the
State of Texas or his duly authorized agent, or a certificate
of registration substantially as set forth in the form of the
definitive Certificates provided in Section SD, manually
executed by an authorized officer, employee, or representative
of the Paying Agent/Registrar, and either such certificate upon
any Certificate shall be conclusive evidence, and the only
evidence, that such Certificate has been duly certified,
registered, and delivered.
SECTION 7: Initial Certificate( s). The certificates
herein authorized shall be initially issued as a single fully
registered certificate in the total principal amount of
$5,000,000 with principal installments to become due and
payable as provided in Section 2 hereof and numbered T-1 or
alternatively as one certificate for each maturity of this
series, numbered consecutively T-1 and upward (hereinafter
called the "Initial Certificate") as determined by the
officials executing such Initial Certificate and, in either
case, the Initial Certificate shall be registered in the name
of the initial purchaser(s) or the designee thereof. The
Initial Certificate shall be the Certificate 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
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delivery of the Initial Certificate, the Paying Agent/Regi-
strar, pursuant to written instructions from the initial
purchaser(s), or the designee thereof, shall cancel the Initial
Certificate delivered hereunder and exchange therefor defini-
tive Certificates of authorized denominations, Stated Maturi-
ties, principal amounts, and bearing applicable interest rates
for transfer and delivery to the Holders named at the addresses
identified therefor; all pursuant to and in accordance with
such written instructions from the initial purchaser(s), or the
designee thereof, and such other information and documentation
as the Paying Agent/Registrar may reasonably require.
SECTION 8: Forms. A. Forms Generally. The
Certificates, the Registration Certificate of the Comptroller
of Public Accounts of the State of Texas, the Certificate of
Registration of the Paying Agent/Registrar, and the form of
Assignment to be printed on the Certificates, 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 identifica-
tion (including identifying numbers and letters of the
Committee on Uniform Securities Identification Procedures of
the American Bankers Association) and such legends and
endorsements (including any reproduction of an opinion of
counsel) thereon as may, consistently herewith, be established
by the City or be determined by the officers executing such
Certificates as evidenced by their execution thereof. Any
portion of the text of any Certificates may be set forth on the
reverse thereof, with an appropriate reference thereto on the
face of the Certificate.
The definitive Certificates shall be printed, litho-
graphed, or engraved or produced in any other similar manner,
all as determined by the officers executing such Certificates
as evidenced by their execution thereof, but the Initial
Certificate submitted to the Attorney General of Texas may be
typewritten or photocopied or otherwise reproduced.
B. Initial Certificate.
If a single Initial Certificate is delivered, as
permitted by Section 7, the form shall be as set forth in
Section 8C. If, in the alternative, multiple Initial Certifi-
cates are delivered, also as permitted by Section 7, the form
of the multiple Initial Certificates shall be the form of the
definitive certificates set forth in Section 8D which shall be
modified by utilizing the appropriate certificate numbers as
set forth in Section 7, deleting the reference to "CUSIP NO:,"
and by utilizing the Registration Certificate of the
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Comptroller of Public Accounts in place of the Registration
certificate· of Paying Agent/Registrar that appears in Section
8D.
c.
REGISTERED
NO. T-1
The Form of Initial Certificate.
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF LUBBOCK, TEXAS, COMBINATION TAX
AND SEWER SYSTEM SUBORDINATE LIEN REVENUE
CERTIFICATE OF OBLIGATION
SERIES 1988
REGISTERED
$5,000,000
Certificate Date: Interest Rate: Stated Maturity:
August 15, 1988 As shown below As shown below
Registered Owner: Thomson McKinnon Securities, Inc.
Principal Amount: Five Million Dollars
The City of Lubbock (hereinafter referred to as the
"City"), a body corporate and municipal corporation in the
County of Lubbock, State of Texas, for value received,
acknowledges itself indebted to and hereby promises to pay to
the order of the the Registered Owner named above, or the
registered assigns thereof, on the 15th day of February, in
each of the years and in principal amounts and bearing interest
at per annum rates in accordance with the following schedule:
Year of Principal Interest
Stated Maturity Amount Rate(s)
1990 $100,000 6.00%
1991 100,000 6.25%
1992 125,000 6.50%
1993 175,000 6.60%
1994 250,000 6.75%
1995 250,000 6.90%
1996 325,000 7.00\
1997 325,000 7.10%
1998 325,000 7.20%
1999 325,000 7.30%
2000 325,000 7.40%
2001 325,000 7.50%
2002 325,000 7.60%
2003 325,000 7.70%
2004 350,000 7.75%
2005 350,000 7.80\
2006 350,000 7.85%
2007 350,000 7.90%
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(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 Certificate Date at the per annum rate( s) of
interest specified above computed on the basis of a 360-day
year of twelve 30-day months; such interest being payable on
February 15 and August 15 of each year, commencing February 15,
1989. Principal of this Certificate 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
Certificate whose name appears on the "Security Register"
maintained by the Paying Agent/Registrar at the close of
business on the "Record Date", which is the last business day
of the month next preceding each interest payment date hereof.
All payments of principal of, premium, if any, and interest on
this Certificate 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 by United
States Mail, first class postage prepaid, to the address of the
registered owner recorded in the Security Register or by such
other method, acceptable to the Paying Agent/Registrar,
requested by, and at the risk and expense of, the registered
owner.
This Certificate is issued in the aggregate principal
amount of $5,000,000 (herein referred to as the "Certificates")
for the purpose of paying contractual obligations incurred with
respect to (i) the purchase of (a) additional land for
authorized needs and purposes, to wit: a sewer farm and (b)
the expansion and upgrading of the land-application site
(including the construction of new irrigation systems and
piping on existing and newly acquired 1 and, construction of a
terminal storage reservoir, and other construction and
improvement in connection therewith), and (ii) professional
services, under and in strict conformity with the Constitution
and laws of the State of Texas, particularly the Certificate of
Obligation Act of 1971, as amended, (Subchapter C of Chapter
271, Local Government Code) and pursuant to an ordinance
adopted by the governing body of the City (hereinafter referred
to as the "Ordinance .. ).
The Certificates maturing on and after February 15,
1999, may be redeemed prior to their Stated Maturities, at the
option of the City, in whole or in part in principal amounts of
$5,000 or any integral multiple thereof (and if within a Stated
Maturity by lot by the Paying Agent/Registrar), on February 15,
1998, or on any date thereafter, at the redemption price of
par, together with accrued interest to the
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date of redemption and upon 30 days prior. written notice being
sent by United States Mail, first class postage prepaid, to the
registered owners of the Certificates to be redeemed, and
subject to the terms and provisions relating thereto contained
in the Ordinance. If this Certificate (or any portion of the
principal sum hereof) shall have been duly called for
redemption and notice of such redemption duly given, then upon
such redemption date this Certificate (or the portion of the
principal sum hereof to be redeemed) shall become due and
payable, and interest thereon shall cease to accrue from and
after the redemption date therefor, provided moneys for the
payment of the redemption price and the interest on the
principal amount to be redeemed to the date of redemption are
held for the purpose of such payment by the Paying
Agent/Registrar.
In the event of a partial redemption of the principal
amount of this Certificate, payment of the redemption price of
such principal amount shall be made to the registered owner
only upon presentation and surrender of this Certificate to the
principal office of the Paying Agent/Registrar and there shall
be issued, without charge therefor to the registered owner
hereof, a new Certificate or Certificates of like maturity and
interest rate in any authorized denominations provided by the
Ordinance for the then unredeemed balance of the principal sum
hereof. If this Certificate is selected for redemption, in
whole or in part, the City and the Paying Agent/Registrar shall
not be required to transfer this Certificate to an assignee of
the registered owner within 45 days of the redemption date
therefor; provided, however, such limitation on transferability
shall not be applicable to an exchange by the registered owner
of the unredeemed balance hereof in the event of its redemption
in part.
This Certificate is payable from the proceeds of an ad
valorem tax levied, within the limitations prescribed by law,
upon all taxable property in the City and, together with the
outstanding "City of Lubbock, Texas, Combination Tax and Sewer
System Subordinate Lien Revenue Refunding Bonds, Series 1988",
(the "Bonds") are additionally payable from and secured by a
lien on and pledge of the Net Revenues (as defined in the
Ordinance) of the City's Sewer System (the "System"), such lien
and pledge being subordinate to the lien and pledge of the Net
Revenues securing the payment of the Prior Lien Revenue
Obligations (identified and defined in the Ordinance) hereafter
issued by the City. In the Ordinance, the City reserves and
retains the right to issue Prior Lien Revenue Obligations
without limitation as to principal amount but subject to any
applicable terms, conditions or restrictions under law or
otherwise as well as the right to issue additional obligations
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payable from the same sources as the Certificates and, together
with the Bonds and the Certificates, are equally and ratably
secured by a parity lien on and pledge of the Net Revenues of
the System.
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 registered
owner by the acceptance hereof hereby assents, for definitions
of terms; the description of and the nature and extent of the
tax levied for the payment of the Certificate; the properties
constituting the System; the Net Revenues pledged to the
payment of the principal of and interest on this Certificate;
the nature, extent, and manner of enforcement of the pledge;
the terms and conditions relating to the transfer or exchange
of this Certificate; the conditions upon which the Ordinance
may be amended or supplemented with or without the consent of
the registered owners; the rights, duties, and obligations of
the City and the Paying Agent/Registrar; the terms and
provisions upon which the tax levy and the liens, pledges,
charges, and covenants made therein may be discharged at or
prior to the maturity of this Certificate, and this Certificate
deemed to be no longer Outstanding thereunder; and for the
other terms and provisions thereof. Capitalized terms used
herein have the meanings assigned in the Ordinance.
This Certificate, subject to certain limitations
contained in the Ordinance, may be transferred on the Security
Register only upon its presentation and surrender at the
principal office of the Paying Agent/Registrar, with the
Assignment hereon duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Paying
Agent/Registrar duly executed by, the registered owner hereof,
or his duly authorized agent. When a transfer on the Security
Register occurs, one or more new fully registered Certificates
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.
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 the payment of the interest hereon, ( ii) on
the date of surrender of this Certificate as the owner entitled
to the payment of the principal hereof at its Stated Maturity,
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 a non-payment of interest on a
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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 registered owner appearing on the Security
Register at the close of business on the last business day next
preceding the date of mailing of such notice.
It is hereby certified, recited, represented, and
covenanted that the City is a 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 Certificates is duly authorized by law; that all acts,
conditions, and things required to exist and be done precedent
to and in the issuance of the Certificates to render the same
lawful and valid obligations of the City have been properly
done, have happened, and have been performed in regular and due
time, form, and manner as required by the Constitution and laws
of the State of Texas, and the Ordinance; that the Certificates
do not exceed any constitutional or statutory limitation; and
that due provision has been made for the payment of the
principal of and interest on the Certificates by the levy of an
ad valorem tax and a pledge of and lien on the Net Revenues of
the System as aforestated. In case any provision in this
Certificate or any application thereof shall be invalid,
illegal, or unenforceable, the validity, legality, and
enforceability of the remaining provisions and applications
shall not in any way be affected or impaired thereby. The
terms and provisions of this Certificate and the Ordinance
shall be construed in accordance with and shall be governed by
the laws of the State of Texas.
IN WITNESS WHEREOF, the City Counc i 1 of the City has
caused this Certificate to be duly executed under the official
seal of the City as of the Certificate Date.
CITY OF LUBBOCK, TEXAS
Mayor
COUNTERSIGNED:
City Secretary
(CITY SEAL)
-13-
326BB
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 Certificate has been
examined, certified as to validity, and approved by the
Attorney General of the State of Texas, and duly registered by
the Comptroller of Public Accounts of the State of Texas.
WITNESS my signature and seal of office this
(SEAL)
Comptroller of Public Accounts
of the State of Texas
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells,
assigns, and transfers unto (Print or typewrite name, address,
and zip code of transferee:) ................................ .
I I I I I I I I I-I I I I I I I t I I I I I I I I I t tl t I I I I a tl I I I I I I t I !I I I I t I a I I a I t I I I I I I I I
t I I a I I I I t I I I I I I I I I I I t I I I I I I I I a I I a I I I I I I I I I I t I I I I I I I I I I I I I I I I I I I
(Social Security or other identifying number: ................ .
. . . . . . . . . . . . . . . . . . . . . . . ) the within Certificate of Obligation
and all rights thereunder, and hereby irrevocably constitutes
and appoints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . attorney to
transfer the within Certificate of Obligation on the books kept
for registration thereof, with full power of substitution in
the premises.
DATED: ..................
Signature guaranteed:
I I I I I I I I I I I I I I I I I I I I I I I I I I
32688
I I I I • I I I I t a I I t I I I I I I I I I I I t I I I I I
NOTICE: The signature on this
assignment must correspond with
the name of the registered
owner as it appears on the face
the within Certificate of
Obligation in every particular.
-14-
D.
REGISTERED
NO.
Form of Definitive certificate.
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF LUBBOCK, TEXAS, COMBINATION TAX
AND SEWER SYSTEM SUBORDINATE LIEN REVENUE
CERTIFICATE OF OBLIGATION
SERIES 1988
REGISTERED
$
Certificate Date: Interest Rate: Stated Maturity CUSIP NO: ______ %
Registered OWner:
Principal Amount: Dollars
The City of Lubbock (hereinafter referred to as the
"City"), a body corporate and municipal corporation in the
County of Lubbock, State of Texas, for value received,
acknowledges itself indebted to and hereby promises to pay to
the order of the Registered OWner named above, or the register-
ed assigns thereof, on the Stated Maturity date specified
above, without right of prior redemption, the Principal Amount
stated above and to pay interest on the unpaid Principal Amount
stated above from the Certificate 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
February 15 and August 15 of each year, commencing February 15,
1989. Principal of this Certificate 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
Certificate (or of one or more Predecessor Certificates, as
defined in the Ordinance hereinafter referenced) whose name
appears on the "Security Register" maintained by the Paying
Agent/Registrar at the close of business on the "Record Date",
which is the last business day of the month next preceding each
interest payment date. All payments of principal of, premium,
if any, and interest on this Certificate 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 by United States Mail, first class
postage prepaid, to the address of the registered owner
recorded in the Security Register or by such other method,
acceptable to the Paying Agent/Registrar, requested by, and at
the risk and expense of, the registered owner.
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32688
This Certificate is one of the series specified in its
title issued in the aggregate principal amount of $5,000,000
(herein referred to as the 11Certificates") for the purpose of
paying contractual obligations incurred with respect to (i) the
purchase of (a) additional land for authorized needs and
purposes, to wit: a sewer farm and (b) the expansion and
upgrading of the land-application site (including the
construction of new irrigation systems and piping on existing
and newly acquired land, construction of a terminal storage
reservoir, and other construction and improvement in connection
therewith), and (ii) professional services, under and in strict
conformity with the Constitution and laws of the State of
Texas, particularly the certificate of Obligation Act of 1971,
as amended, (Subchapter C of Chapter 271, Local Government
Code) and pursuant to an ordinance adopted by the governing
body of the City (hereinafter referred to as the "Ordinance").
The Certificates maturing on and after February 15,
1999, may be redeemed prior to their Stated Maturities, at the
option of the City, in whole or in part in principal amounts of
$5,000 or any integral multiple thereof (and if within a Stated
Maturity by lot by the Paying Agent/Registrar), on February 15,
1998, or on any date thereafter, at the redemption price of
par, together with accrued interest to the date of redemption
and upon 30 days prior written notice being sent by United
States Mail, first class postage prepaid, to the registered
owners of the Certificates to be redeemed, and subject to the
terms and provisions relating thereto contained in the
Ordinance. If this Certificate (or any portion of the
principal sum hereof) shall have been duly called for
redemption and notice of such redemption duly given, then upon
such redemption date this Certificate (or the portion of the
principal sum hereof to be redeemed) shall become due and
payable, and interest thereon shall cease to accrue from and
after the redemption date therefor, provided moneys for the
payment of the redemption price and the interest on the
principal amount to be redeemed to the date of redemption are
held for the purpose of such payment by the Paying
Agent/Registrar.
In the event of a partial redemption of the principal
amount of this Certificate, payment of the redemption price of
such principal amount shall be made to the registered owner
only upon presentation and surrender of this Certificate to the
principal office of the Paying Agent/Registrar and there shall
be issued, without charge therefor to the registered owner
hereof, a new Certificate or Certificates of like maturity and
interest rate in any authorized denominations provided by the
Ordinance for the then unredeemed balance of the principal sum
hereof. If this Certificate is selected for redemption, in
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32688
whole or in part, the City and the Paying Agent/Registrar shall
not be required to transfer this Certificate to an assignee of
the registered owner within 45 days of the redemption date
therefor; provided, however, such limitation on transferability
shall not be applicable to an exchange by the registered owner
of the unredeemed balance hereof in the event of its redemption
in part.
The Certificates are payable from the proceeds of an ad
valorem tax levied, within the limitations prescribed by law,
upon all taxable property in the City and, together with the
outstanding "City of Lubbock, Texas, Combination Tax and Sewer
System Subordinate Lien Revenue Refunding Bonds, Series 1988
(the "Bonds"), are additionally payable from and secured by a
lien on and pledge of the Net Revenues (as defined in the
Ordinance) of the City•s Sewer System (the .. System .. ), such lien
and pledge being subordinate to the lien and pledge of the Net
Revenues securing the payment of the Prior Lien Revenue
Obligations (identified and defined in the Ordinance) hereafter
issued by the City. In the Ordinance, the City reserves and
retains the right to issue Prior Lien Revenue Obligations
without limitation as to principal amount but subject to any
applicable terms, conditions or restrictions under law or
otherwise as well as the right to issue additional obligations
payable from the same sources as the Certificates and, together
with the Bonds and Certificates, are equally and ratably
secured by a parity 1 ien on and pledge of the Net Revenues of
the System.
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 registered
owner by the acceptance hereof hereby assents, for definitions
of terms; the description of and the nature and extent of the
tax levied for the payment of the Certificates; the properties
constituting the System; the Net Revenues pledged to the
payment of the principal of and interest on the Certificates;
the nature, extent, and manner of enforcement of the pledge;
the terms and conditions relating to the transfer or exchange
of this Certificate; the conditions upon which the Ordinance
may be amended or supplemented with or without the consent of
the registered owners; the rights, duties 1 and obligations of
the City and the Paying Agent/Registrar; the terms and
provisions upon which the tax levy and the liens, pledges,
charges 1 and covenants made therein may be discharged at or
prior to the maturity~f this Certificate, and this Certificate
deemed to be no longer Outstanding thereunder; and for the
other terms and provisions thereof. Capitalized terms used
herein have the meanings assigned in the Ordinance.
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32688
This Certificate, subject to certain limitations
contained in the Ordinance, may be transferred on the Security
Register only upon its presentation and surrender at the
principal office of the Paying Agent/Registrar, with the
Assignment hereon duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Paying
Agent/Registrar duly executed by, the registered owner hereof,
or his duly authorized agent. When a transfer on the Security
Register occurs, one or more new fully registered Certificates
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.
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 the payment of the interest hereon, ( ii) on
the date of surrender of this Certificate as the owner entitled
to the payment of the principal hereof at its Stated Maturity,
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 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
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 registered owner appearing on the Security
Register at the close of business on the last business day next
preceding the date of mailing of such notice.
It is hereby certified, recited, represented, and
covenanted that the City is a 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 Certificates is duly authorized by law; that all acts,
conditions, and things required to exist and be done precedent
to and in the issuance of the Certificates to render the same
lawful and valid obligations of the City have been properly
done, have happened, and have been performed in regular and due
time, form, and manner as required by the Constitution and laws
of the State of Texas, and the Ordinance; that the Certificates
do not exceed any constitutional or statutory limitation; and
that due provision has been made for the payment of the
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32688
principal of and interest oh the Certificates by the levy of an
ad valorem tax and a pledge of and lien on the Net Revenues of
the System as aforestated. In case any provision in this
Certificate or any application thereof shall be invalid,
illegal, or unenforceable, the validity, legality, and
enforceability of the remaining provisions and applications
shall not in any way be affected or impaired thereby. The
terms and provisions of this Certificate and the Ordinance
shall be construed in accordance with and shall be governed by
the laws of the State of Texas.
IN WITNESS WHEREOF, the City Council of the City has
caused this Certificate to be duly executed under the official
seal of the City as of the Certificate Date.
CITY OF LUBBOCK, TEXAS
COUNTERSIGNED: Mayor
City Secretary
(CITY SEAL)
REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR
This Certificate of Obligation has been duly issued and
registered under the provisions of the within mentioned
Ordinance; the Certificate of Obligation or Certificates of
Obligation· 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:
32688
TEXAS COMMERCE BANK
NATIONAL ASSOCIATION,
Lubbock, Texas, as
Paying Agent/Registrar
By ~~--~~-=~~~--------Authorized Signature
-19-
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells,
assigns, and transfers unto (Print or typewrite name, address,
and zip code of transferee:) ................................ .
a t I I I I t I I I t I I I I I I I I I I I I I I I I I I I I I t t t I I I I t I I I I I I I I I I I I t I I I I t t 1 t 1 I
I t I t 1 t t t t t 1 I I t 1 t t I t I I I I I I I t I I I t I I I I t I I t I t I I I I I t I I I t I I I t 1 1 t t 1 t t t
(Social Security or other identifying number: ................ .
. . . . . . . . . . . . . . . . . . . . . . . ) the within Certificate of Obligation
and all rights thereunder, and hereby irrevocably constitutes
and appoints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . attorney to
transfer the within Certificate of Obligation on the books kept
for registration thereof, with full power of substitution in
the premises.
DATED: I I I I I I I • I t t t t t t I I t t I t I I t t I I • t I I I I I I I I I I I t I I I t I I I I
Signature guaranteed:
NOTICE: The signature on this
assignment must correspond with
the name of the registered
owner as it appears on the face
the within Certificate of
I t I t I I I I I I I I I I I I t I I t t t t I I t
Obligation in every particular.
SECTION 9: Definitions. For purposes of this
Ordinance and for clar1ty with respect to the issuance of the
Certificates herein authorized, and the levy of taxes and
appropriation of Net Revenues therefor, the following words or
terms, whenever the same appear herein without qualifying
language, are defined to mean as follows:
(a) The term "Additional Obligations.. shall mean
combination tax and revenue certificates of obligation
hereafter issued under and pursuant to the provisions of
Subchapter C of Chapter 271, Local Government Code, or any
similar law hereafter enacted, and payable from ad valorem
taxes and additionally payable from and secured by a lien on
and pledge of the Net Revenues on a parity with and of equal
dignity with the 1 ien and pledge securing the payment of the
Certificates.
(b) The term "Certificates .. shall mean the $5,000,000
11City of Lubbock, Texas, Combination Tax and Sewer System
Subordinate Lien Revenue Certificates of Obligation, series
1988" authorized by this Ordinance.
(c) The term "Certificate Fund" shall mean the
special Fund created and established under the provisions of
Section 10 of this Ordinance.
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32688
(d) The term "Collection Date11 shall mean, when
reference is being made to the levy and collection of annual ad
valorem taxes, the date the annual ad valorem taxes levied each
year by the City become delinquent.
(e) The term 11 Fiscal Year" shall mean the annual
financial accounting period used with respect to the System now
ending on September 30th of each year; provided, however, the
City Council may change, by ordinance duly passed, such annual
financial accounting period to end on another date if such
change is found and determined to be necessary for accounting
purposes.
(f) The term "Maintenance and Operation Expenses"
shall mean all reasonable and necessary expenses directly
related and attributable to the operation and maintenance of
the System, including, but not limited to, the cost of
insurance, the purchase and carrying of stores, materials, and
supplies, the payment of salaries and labor, and other expenses
reasonably and properly charged, under generally accepted
accounting principles, to the operation and maintenance of the
System. Depreciation charges on equipment, machinery, plants,
and other facilities comprising the System and expenditures
classed under generally accepted accounting principles as
capital expenditures shall not be considered as "Maintenance
and Operation Expenses" for purposes of determining "Net
Revenues" .
(g) The term "Net Revenues" shall mean , with respect
to any period, all income, revenues, and receipts received from
the operation and ownership of the System less Maintenance and
Operation expenses of the System during such period.
(h) The term "Outstanding" when used in this
Ordinance with respect to Certificates means, as of the date of
determination, all Certificates theretofore issued and
delivered under this Ordinance, except:
32688
(1) those
cancelled by the
delivered to the
cancellation;
Certificates theretofore
Paying Agent/Registrar or
Paying Agent/Registrar for
(2) those Certificates for which payment
has been duly provided by the City in accordance
with the provisions of Section 26 hereof by the
irrevocable deposit with the Paying Agent/
Registrar, or an authorized escrow agent, of money
or Government Securities, or both, in the amount
necessary to fully pay the principal of, premium,
if any, and interest thereon to maturity; and
-21-
(3) those Certificates that have been
mutilated, destroyed, lost, or stolen and for which
( i) replacement Certificates have been registered
and delivered in lieu thereof or (ii) have been
paid, all as provided in Section 24 hereof.
( i) The term "Prior Lien Revenue Obligations" shall
mean all bonds or other obligations hereafter issued by the
City of Lubbock which, by the ordinance authorizing the
issuance thereof, are payable from and secured by a first lien
on and pledge of the Net Revenues.
( j) The term "Similarly Secured Obligations" shall
mean collectively (i) the outstanding "City of Lubbock, Texas,
Combination Tax and Sewer System Subordinate Lien Revenue
Refunding Bonds, Series 1988", dated August 15, 1988,
authorized for. issuance concurrently with the Certificates and
(ii) additional combination tax and revenue obligations
hereafter issued under and pursuant to the provisions of
Subchapter c of Chapter 271, Local Government Code, or similar
law hereafter enacted and payable from ad valorem taxes and
additionally payable from and secured by a lien on and pledge
of the Net Revenues of the System on a parity with and of equal
rank and dignity with the lien and pledge securing the payment
of the Certificates.
(k) The term "System" shall mean the City's sanitary
sewer system, being all sanitary sewage collection system,
ground storage facilities, effluent disposal and treatment
facilities and/or other works and equipment.
SECTION 10: Certificate Fund. For the purpose of
paying the interest on and to provide a sinking fund for the
payment and retirement of the Certificates, there shall be and
is hereby created a special Fund to be designated "SEWER SYSTEM
DEBT SERVICE, .. which Certificates Fund shall be kept and
maintained at the City•s depository bank, and moneys deposited
in said Fund shall be used for no other purpose. Authorized
officials of the City are hereby authorized and directed to
make withdrawals from said Fund sufficient to pay the principal
of and interest on the Certificates as the same become due and
payable, and, shall cause to be transferred to the Paying
Agent/Registrar from moneys on deposit in the Certificate Fund
(on or prior to a principal and/or interest payment date) an
amount sufficient to pay the amount of principal and/or
interest falling due on the Certificates.
Pending the transfer of funds to the Paying Agent/
Registrar, money in the Certificate Fund may, at the option of
the City, be placed in time deposits or certificates of deposit
secured by obligations of the type hereinafter described, or be
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32688
invested, including investments held in book-entry form, in
direct obligations of the United States of America, obligations
guaranteed or insured by the United States of America, which,
in the opinion of the Attorney General of the United States,
are backed by its full faith and credit or represent its
general obligations, or invested in indirect obligations of the
United States of America, including, but not limited to,
evidences of indebtedness issued, insured, or guaranteed by
such governmental agencies as the Federal Land Banks, Federal
Intermediate Credit Banks, Banks for Cooperatives, Federal Home
Loan Banks, Government National Mortgage Association, Farmers
Home Administration, Federal Home Loan Mortgage Association,
Small Business Administration, Federal Housing Association, or
Participation Certificates in the Federal Assets Financing
Trust; provided that all such deposits and investments shall be
made in such a manner that the money required to be expended
from said Fund will be available at the proper time or times.
All interest and income derived from deposits and investments
in said Certificate Fund shall be credited to, and any losses
debited to, the said Certificate Fund. All such investments
shall be sold promptly when necessary to prevent any default in
connection with the Certificates.
SECTION 11: Tax Levy. To provide for the payment of
the "Debt Service Requirements" on the Certificates being (i)
the interest on said Certificates and (ii) a sinking fund for
their redemption at maturity or a sinking fund of 2% (whichever
amount shall be the greater), there shall be and there is
hereby levied for the current year and each succeeding year
thereafter while said Certificates or any interest thereon
shall remain OUtstanding, a sufficient tax on each one hundred
dollars' valuation of taxable property in said City, adequate
to pay such Debt Service Requirements, full allowance being
made for delinquencies and costs of collection; said tax shall
be assessed and collected each year and applied to the payment
of the Debt Service Requirements, and the same shall not be
diverted to any other purpose. The taxes so levied and
collected shall be paid into the Certificate Fund. The City
Council hereby declares its purpose and intent to provide and
levy a tax legally and fully sufficient to pay the said Debt
Service Requirements, it having been determined that the
existing and available taxing authority of the City for such
purpose is adequate to permit a legally sufficient tax in
consideration of all other outstanding indebtedness.
The amount of taxes to be provided annually for the
payment of the principal of and interest on the Certificates
shall be determined and accomplished in the following manner:
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32688
~~--···. -----------
(a) Prior to the date the City Council establishes
the annual tax rate and passes an ordinance levying ad valorem
taxes each year, the Council shall determine:
(1) The amount on deposit in the
Certificate Fund after (a) deducting therefrom the
total amount of Debt Service Requirements to become
due on Certificates prior to the Collection Date
for the ad valorem taxes to be levied and (b)
adding thereto the amount of the · Net Revenues of
the System appropriated and allocated to pay such
Debt Service Requirements prior to the Collection
Date for the ad valorem taxes to be levied.
(2) The amount of Net Revenues of the
System, appropriated and to be set aside for the
payment of the Debt Service Requirements on the
Certificates between the Collection Date for the
taxes then to be levied and the Collection Date for
the taxes to be levied during the next succeeding
calendar year.
( 3) The amount of Debt Service Require-
ments to become due and payable on the Certificates
between the Collection Date for the taxes then to
be levied and the Collection Date for the taxes to
be levied during the next succeeding calendar year.
(b) The amount of taxes to be levied annually each
year to pay the Debt Service Requirements on the Certificates
shall be the amount established in paragraph (3) above less the
sum total of the amounts established in paragraphs (1) and (2),
after taking into consideration delinquencies and costs of
collecting such annual taxes.
SECTION 12: Pledge of Revenues. The City hereby
covenants and agrees that, subject to the prior lien on and
pledge of the Net Revenues of the System to the payment and
security of Prior Lien Revenue Obligations, all the Net
Revenues of the System, with the exception of those in excess
of the amounts required to be deposited to the Certificate Fund
as hereafter provided, are hereby irrevocably pledged to the
payment of the principal of and interest on the Certificates
and Similarly Secured Obligations, and the pledge of Net
Revenues herein made for the payment of the Certificates shall
constitute a lien on the Net Revenues in accordance with the
terms and provisions hereof and be valid and binding without
any physical delivery thereof or further act by the City.
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32688
SECTION 13 : System FW1d. The City hereby covenants
and agrees that all revenues derived from the operation of the
System shall be kept separate and apart from all other funds,
accounts, and moneys of the City, and shall be deposited as
collected into the "City of Lubbock Sewer System Fund" hereby
created and established (hereinafter called the "System
Fund") . All moneys deposited in the System Fund shall be
pledged and appropriated to the extent required for the
following purposes and in the order of priority shown, to wit:
First: To the payment of the reasonable and proper
Maintenance and Operation Expenses of the System as
defined herein or required by statute to be a first
charge on and claim against the revenues of the
System.
second: To the payment of the amounts required to
be deposited in the special funds and accounts
created and established for the payment and
security of the Prior Lien Revenue Obligations in
accordance with the terms and provisions of the
ordinances authorizing the issuance of Prior Lien
Revenue Obligations.
Third: Equally and ratably to the payment of the
amounts required to be deposited in the special
funds and accounts created and established for the
payment of the Certificates and Similarly Secured
Obligations.
Any Net Revenues remaining in the System Fund after
satisfying the foregoing payments, or making adequate and
sufficient provision for the payment thereof, may be appropria-
ted and used for any other City purpose now or hereafter
permitted by law.
SECTION 14: Deposits to Certificate Fund. The City
hereby covenants and agrees to cause to be deposited in the
Certificate Fund prior to each principal and interest payment
date for the Certificates from the pledged Net Revenues in the
System Fund, after deduction of all payments required to be
made to the Special Funds or accounts created for the payment
and security of the Prior Lien Revenue Obligations, an amount
equal to one hundred per centum ( 100%) of the amount required
to fully pay the interest and principal then due and payable on
the Certificates, such deposits to pay maturing principal and
accrued interest on the Certificates to be made in
substantively equal monthly installments on or before the 15th
day of the month first to follow the date of delivery of the
certificates to the initial purchaser(s).
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32688
The deposits to be made to the Certificate Fund, as
hereinabove provided, shall be made until such time as such
Fund contains an amount equal to pay the principal of and
interest and premium, if any, on the Certificates to maturity.
Accrued interest and premium, if any, received from the
purchaser(s) of the Certificates shall be deposited to the
Certificate Fund and ad valorem taxes levied, collected, and
deposited in the Certificate Fund for and on behalf of the
Certificates may be taken into consideration and reduce the
amount of the deposits otherwise required to be deposited in
the Certificate Fund from the Net Revenues of the System. In
addition, any surplus proceeds from the sale of the
Certificates not expended for authorized purposes shall be
deposited in the Certificate Fund, and such amounts so
deposited shall reduce the sums otherwise required to be
deposited in said Fund from ad valorem taxes and the Net
Revenues of the System.
SECTION 15: Security of Funds. All moneys on deposit
in the Funds for which this Ordinance makes provision (except
any portion thereof as may be at any time properly invested)
shall be secured in the manner and to the fullest extent
required by the laws of Texas for the security of public funds,
and moneys on deposit in such Funds shall be used only for the
purposes permitted by this Ordinance.
SECTION 16: Maintenance of System -Insurance. The
City covenants and agrees that while the Certificates remain
OUtstanding, it will maintain and operate the System with all
possible efficiency and maintain casualty and other insurance
on the properties of the System and its operations of a kind
and in such amounts customarily carried by municipal corpora-
tions in the State of Texas engaged in a similar type business
to the extent the City may be subjected to liability; and that
it will faithfully and punctually perform all duties with
reference to the System required by the Constitution and laws
of the State of Texas; provided however, the City may also make
provision for self insurance to cover any liability of the City.
SECTION 17: Rates and Charges. The City hereby
covenants and agrees with the Holders of the Certificates that
rates and charges for the collection and disposal of sewage and
other services afforded by the System will be established and
maintained that are reasonably expected, on the basis of
available information and experience and with due allowance for
contingencies to provide revenues sufficient to pay:
(a)
System; and
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all Maintenance and Operation Expenses of the
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(b) ( i) the interest on and principal of the Prior
Lien Revenue Obligations, if any, as the same becomes due and
payable and the amounts required to be deposited in any special
Fund created and established for the payment and security
thereof and (ii) the amounts, if any, required to be deposited
in the special Fund created and established for the payment of
the Certificates {the Certificate Fund) and Similarly Secured
Obligations; and
(c) 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 18: Records and Accounts -Annual Audit. The
City further covenants and agrees that so long as any of the
Certificates remain Outstanding, it will keep and maintain
separate and complete records and accounts pertaining to the
operations of the System in which complete and correct entries
shall be made of all transactions relating thereto, as provided
by law. The Holders or any duly authorized agent or agents of
such Holders shall have the right to inspect the System and all
properties comprising the same. The City further agrees that
following the close of each Fiscal Year, it will cause an audit
of such books and accounts to be made by an independent firm of
Certified Public Accountants. Copies of each annual audit
shall be furnished to the Executive Director of the Municipal
Advisory Council of Texas at his or her office in Austin,
Texas, and, upon written request, to the original purchaser of
the Certificates and any subsequent Holder of 20\ or more in
principal amount of Certificates.
SECTION 19: Remedies in Event of Default. In
addition to all the rights and remedies provided by the laws of
the State of Texas, the City covenants and agrees particularly
that in the event the City (a) defaults in the payments to be
made to the Certificate Fund, or (b) defaults in the observance
or performance of any other of the covenants, conditions, or
obligations set forth in this Ordinance, any Holder shall be
entitled to a writ of mandamus issued by a court of proper
jurisdiction compelling and requiring the governing body of the
City and other officers of the City to observe and perform any
covenant, condition, or obligation prescribed in this Ordinance.
No delay or omission to exercise any right or power
accruing upon any default shall impair any such right or power,
or shall be construed to be a waiver of any such default or
acquiescense therein, and every such right and power may be
exercised from time to time and as often as may be deemed
expedient. The specific remedies herein provided shall be
cumulative of all other existing remedies and the specification
of such remedies shall not be deemed to be exclusive.
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SECTION 20: Special Covenants.
further covenants as follows:
The City hereby
(a) That it has the lawful power to pledge
the Net Revenues supporting this issue of certifi-
cates and has lawfully exercised said powers under
the Constitution and laws of the State of Texas.
(b) That other than for the payment of
the Certificates and the outstanding Similarly
Secured Obligations identified in Section 9(j )( i)
hereof, the Net Revenues have not in any manner
been pledged to the payment of . any debt or
obligation of the City or of the System.
(c) That, as long as any Certificates or
any interest thereon remain Outstanding, the City
will not sell, lease, or encumber the System or any
substantial part thereof, provided that 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.
SECTION 21: Issuance of Prior Lien Revenue Obligations
and Similarly Secured Obligations. That the City hereby
expressly reserves the right to hereafter issue Prior Lien
Revenue Obligations, without limitation as to principal amount
but subject to any terms, conditions or restrictions applicable
thereto under law or otherwise, and, also reserves the right to
issue Similarly Secured Obligations which, together with the
certificates, shall be equally and ratably secured by a parity
lien on and pledge of the Net Revenues of the System.
SECTION 22: Notices to OWners -Waiver. Wherever this
Ordinance provides for notice to Holders of any event, such
notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and sent by United States
Mail, first class postage prepaid, to the address of each
Holder appearing on the Security Register at the close of
business on the business day next preceding the mailing of such
notice.
In any case where notice to Holders is given by mail,
neither the failure to mail such notice to any particular
Holders, nor any defect in any notice so mailed, shall affect
the sufficiency of such notice with respect to all other
Certificates. Where this Ordinance provides for notice in any
manner, such notice may be waived in writing by the Holder
entitled to receive such notice, either before or after the
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event with respect to which such notice is given, and such
waiver shall be the equivalent of such notice. Waivers of
notice by Holders shall be filed with the Paying Agent/
Registrar, but such filing shall not be a condition precedent
to the validity of any action taken in reliance upon such
waiver.
SECTION 23: Cancellation. All Certificates surrender-
ed for payment, 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 Certificates previously
certified or registered and delivered which the City may have
acquired in any manner whatsoever, and all Certificates so
delivered shall be promptly cancelled by the Paying Agent/
Registrar. All cancelled Certificates held by the Paying
Agent/Registrar shall be returned to the City.
SECTION 24: Mutilated, Destroyed, Lost, and Stolen
Certificates. If (1) any mutilated Certificate is surrendered
to the Paying Agent/Registrar, or the City and the Paying
Agent/Registrar receive evidence to their satisfaction of the
destruction, loss, or theft of any Certificate, and (2) there
is delivered to the City and the Paying Agent/Registrar such
security or indemnity as may be required to save each of them
harmless, then, in the absence of notice to the City or the
Paying Agent/Registrar that such Certificate has been acquired
by a bona fide purchaser, the City shall execute and, upon its
request, the Paying Agent/Registrar shall register and deliver,
in exchange for or in lieu of any such mutilated, destroyed,
lost, or stolen Certificate, a new Certificate of the same
Stated Maturity and of like tenor and principal amount, bearing
a number not contemporaneously outstanding.
In case any such mutilated,
Certificate has become or is about
the City in its discretion may,
Certificate, pay such Certificate.
destroyed, lost, or stolen
to become due and payable,
instead of issuing a new
Upon the issuance of any new Certificate under this
Section, the City may require payment by the Holder of a sum
sufficient to cover any tax or other governmental charge
imposed in relation thereto and any other expenses (including
the fees and expenses of the Paying Agent/Registrar) connected
therewith.
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Every new Certificate issued pursuant to this Section in
lieu of any mutilated, destroyed, lost, or stolen Certificate
shall constitute a replacement of the prior obligation of the
City, whether or not the mutilated, destroyed, lost, or stolen
Certificate shall be at any time enforceable by anyone, and
shall be entitled to all the benefits of this Ordinance equally
and ratably with all other Outstanding Certificates.
The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies
with respect to the replacement and payment of mutilated,
destroyed, lost, or stolen Certificates.
SECTION 25: Covenants to Maintain Tax-Exempt Status.
The City shall not use, permit the use of, or omit to use Gross
Proceeds or any other amounts (or any property the acquisition,
construction, or improvement of which is to be financed
directly or indirectly with Gross Proceeds) in a manner which,
if made or omitted, respectively, would cause the interest on
any Certificate to become includable in the gross income, as
defined in section 61 of the Code, of the owner thereof for
federal income tax purposes. 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 Certificate pursuant
to section 103 of the Code, the City agrees, covenants and
represents that:
(a) Definitions. When used in this Section, the
following terms have the following meanings:
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"Code" means the Internal Revenue Code of 1986,
as amended by all legislation, if any, enacted on or
before the Issue Date.
"Gross Proceeds" when used with respect to the
Certificates or any other issue of obligations of the
City, means original proceeds, amounts received
(including repayments of principal) as a result of
investing the original proceeds of the issue,
transferred proceeds, sinking fund proceeds, amounts
invested in a reasonably required reserve or
replacement fund, securities or obligations pledged
by the City as security for payment of debt service
on the Certificates or such other issue, and any
other amounts used to pay debt service on the
Certificates or such other issue, together with
earnings from the investment of the foregoing.
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"Investment" means
(1) a share of stock in a corporation
or a right to subscribe for or to receive
such a share,
(2) any obligation, including United
States Treasury bonds, notes, and bills and
bank deposits, whether or not certified or
interest bearing, but excluding obligations
the interest on which is, in the opinion of
counsel nationally recognized in the field
of municipal bond law, excludable from the
gross income of any owner thereof and is
not included in computing the alternative
minimum taxable income of individuals under
the Code or the Internal Revenue Code of
1954, as amended to the date of issuance of
such obligations,
(3) any annuity contract, or any
other deferred payment contract acquired to
fund an obligation of the City, or
(4) any other property held for
investment.
u Issue Date" means the date on which the
Certificates are first authenticated and delivered to
the initial purchasers against payment therefor.
"Issue Price" of the Certificates of each Stated
Maturity means the aggregate initial offering price
of all the Certificates of such Stated Maturity to
the public (exclusive of underwriters, dealers,
bondhouses, brokers, and similar persons or
organizations acting in the capacity of underwriters
or wholesalers) at which a substantial number of
Certificates of such Stated Maturity are sold to the
public, including accrued interest to the Issue Date,
if any.
"Nonpurpose Investment" means any Investment in
which Gross Proceeds of the Certificates are invested
and which is not acquired to carry out the
governmental purpose of the Certificates.
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"Purchase Price" of any Investment means
( 1) if a United States Treasury
obligation acquired directly from the
United States Treasury, the amount paid
therefor,
(2) if a certificate of deposit
issued by a commercial bank, the bona fide
bid price quoted by a dealer who maintains
an active secondary market in such
certificates of deposit, and
(3) otherwise, generally the mean of
the bid price and the offered price
therefor on an established market on the
day on which such Investment is purchased
or contracted for or, if there are no bid
prices and offered prices on such date, on
the first day preceding such date for which
there are bid prices and offered prices.
"Yield" of
(1) any Investment means the discount
factor which, when used in computing the
present value of all scheduled payments of
principal of and interest on such
Investment on the date such Investment is
purchased with Gross Proceeds or otherwise
allocated to Gross Proceeds, results in an
amount equal to the Purchase Price thereof
(but excluding any commissions),
compounding semiannually, and
(2) the Certificates means the
discount factor which, when used in
computing the present value on the Issue
Date of all scheduled payments of principal
of and interest on the Certificates and on
other obligations which are part of the
same issue of obligations as the
Certificates under Treas. Reg.
§1.103-13(b)(lO) (the "Other Bonds"),
results in an amount equal to aggregate
Issue Prices of the Certificates and the
Other Bonds of each Stated Maturity,
compounding semiannually. For the purpose
of this clause (2), capitalized terms when
used with respect to any Other Bond have
the same meaning as that set forth in the
Ordinance under which such Other Bond was
issued.
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(b) No Private Use or Private Payments. Except as
permitted by section 141 of the Code and the regulations and
rulings thereunder, the City shall, at all times prior to the
last Stated Maturity of Certificates,
(1) exclusively own, operate, and possess the System
and all properties constituting the System and its
components, and all property the acquisition,
construction, or improvement of which is to be financed
directly or indirectly with Gross Proceeds of the
Certificates and not use or permit the use of such Gross
Proceeds or the properties constituting the System or any
property acquired, constructed, or improved with such
Gross Proceeds in any activity carried on by any person or
entity other than a state or local government, unless such
use is solely as a member of the general public or such
use is restricted or limited in such manner so as to not
adversely affect the exemption from federal income
taxation of the interest on the Certificates pursuant to
Section 103 of the Code, or
(2) not directly or indirectly impose or accept any
charge or other payment for use of Gross Proceeds of the
Certificates or the System 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.
(c) No Private Loan. Except to the. extent permitted by
section 141 of the Code and the regulations and rulings
thereunder, the City shall not use Gross Proceeds of the
Certificates to make or finance loans to any person or entity
other than a state or local government. For purposes of the
foregoing covenant, such Gross Proceeds are considered to be
"loaned" to a person or entity if (1) property acquired,
constructed, or improved with such Gross Proceeds is sold or
leased to such person or entity in a transaction which creates
a debt for federal income tax purposes, (2) capacity in or
service from such property is committed to such person or
entity under a take-or-pay, output, or similar contract or
arrangement, or (3) indirect benefits, or burdens and benefits
of ownership, of such Gross Proceeds or any property acquired,
constructed, or improved with such Gross Proceeds are otherwise
transferred in a transaction which is the economic equivalent
of a loan.
(d) Not to Invest at Higher Yield. Except to the extent
permitted by section 148 of the Code and the regulations and
rulings thereunder, the City shall not, at any time prior to
the final Stated Maturity of the Certificates, directly or
indirectly invest Gross Proceeds of the Certificates in any
Investment (or use such Gross Proceeds to replace money so
invested), if as a result of such investment the Yield from the
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Issue Date of all Investments acquired with such Gross Proceeds
(or with money replaced thereby) whether then held or
previously disposed of, exceeds the Yield of the Certificates.
(e) Not Federally Guaranteed. Except to the extent
permitted by section 149(b) of the Code and the regulations and
rulings thereunder, the City shall not take or omit to take any
action which would cause the Certificates to be federally
guaranteed within the meaning of section 149(b) of the Code and
the regulations and rulings thereunder.
(f) Information Report. The City shall timely file with
the Secretary of the Treasury the information required by
section 149(e) of the Code with respect to the Certificates on
such form and in such place as such Secretary may prescribe.
(g) Rebate of Arbitrage Profits. Except to the extent
otherwise provided in section 148(f) of the Code and the
regulations and rulings thereunder,
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(1) The City shall account for all Gross Proceeds of
the Certificates (including all receipts, expenditures,
and investments thereof) on its books of account
separately and apart from all other funds (and receipts,
expenditures, and investments thereof) and shall retain
all records of such accounting for at least six years
after the day on which the last outstanding Certificate is
discharged. The City may, however, to the extent
permitted by law, commingle Gross Proceeds of the
Certificates with other money of the City, provided that
the City separately accounts for each receipt and
expenditure of such Gross Proceeds and the obligations
acquired therewith.
(2) Not less frequently than annually, the City
shall calculate, in accordance with rules set forth in
section 148(f) of the Code and the regulations and rulings
thereunder, the excess of:
(i) the amount earned on all Nonpurpose
Investments (other than Investments attributable to
any excess previously calculated pursuant to this
paragraph (2)) acquired with Gross Proceeds of the
Certificates, over
( i i) the amount which would have been earned if
such Nonpurpose Investments were invested at a rate
equal to the Yield on the Certificates,
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plus any income attributable to any excess previously
calculated pursuant to this paragraph (2). In this
connection, the City hereby declines to make the election
provided for in section 148(f)(4)(A)(ii) of the Code.
(3) As additional consideration for the purchase of
the Certificates by the initial purchasers thereof and the
loan of the money represented thereby, and in order to
induce such purchase by measures desiqned to insure 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 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 the
regulations 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 delinquent amounts owed to it,
interest thereon, and any assessed penalty.
(i) Not to Divert Arbitrage Profits. 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 earlier of the Stated Maturity or final payment of the
Certificates enter into any transaction that reduces the amount
required to be paid to the United States pursuant to Subsection
(h) of this Section because such transaction results in a
smaller profit or a larger loss than would have resulted if the
transaction had been at arm's length and had the Yield of the
Certificates not been relevant to either party.
SECTION 26: Satisfaction of Obligations of City. If
the City shall pay or cause to be paid, or there shall
otherwise be paid to the Holders, the principal of, premium, if
any, and interest on the Certificates, at the times and in the
manner stipulated in this Ordinance, then the pledge of taxes
levied and the lien on and pledge of the Net Revenues of the
System under this Ordinance and all covenants, agreements, and
other obligations of the City to the Holders shall thereupon
cease, terminate, and be discharged and satisfied.
Certificates, or any principal amount(s) thereof, shall
be deemed to have been paid within the meaning and with the
effect expressed above in this Section when ( i) money suffi-
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cient to pay in full such Certificates or the principal
amount(s) thereof at maturity or to the redemption date
therefor, together with all interest due thereon, shall have
been irrevocably deposited with and held in trust by the Paying
Agent/Registrar, or an authorized escrow agent, or (ii)
Government Securities shall have been irrevocably deposited in
trust with the Paying Agent/Registrar, or an authorized escrow
agent, which Government Securities have been certified by an
independent accounting firm to mature as to principal and
interest in such amounts and at such times as will insure the
availability, without reinvestment, of sufficient money,
together with any moneys deposited therewith, if any, to pay
when due the principal of and interest on such Certificates, or
the principal amount(s) thereof, on and prior to the Stated
Maturity thereof or (if notice of redemption has been duly
given or waived or if irrevocable arrangements therefor
acceptable to the Paying Agent/Registrar have been made) the
redemption date thereof. The City covenants that no deposit of
moneys or Government Securities will be made under this Section
and no use made of any such deposit which would cause the
Certificates to be treated as "arbitrage bonds" within the
meaning of Section 148 of the Internal Revenue Code of 1986, as
amended, or regulations adopted pursuant thereto.
Any moneys so deposited with the Paying Agent/Registrar,
and all income from Government Securities held in trust by the
Paying Agent/Registrar, or an authorized escrow agent, pursuant
to this Section which is not required for the payment of the
Certificates, or any principal amount( s) thereof, or interest
thereon with respect to which such moneys have been so
deposited shall be remitted to the City or deposited as
directed by the City. Furthermore, any money held by the
Paying Agent/Registrar for the payment of the principal of and
interest on the Certificates and remaining unclaimed for a
period of four (4) years after the Stated Maturity of the
Certificates for which such moneys were deposited and are held
in trust to pay, shall upon the request of the City be remitted
to the City against a written receipt therefor. Notwith-
standing the above and foregoing, any remittance of funds from
the Paying Agent/Registrar to the City shall be subject to any
applicable unclaimed property laws of the State of Texas.
The term "Government Securities", as used herein, means
direct obligations of, or obligations the principal and
interest of which are unconditionally guaranteed by, the United
States of America, which are non-callable prior to the
respective Stated Maturities of the Certificates, and which may
be United States Treasury Obligations such as the State and
Local Government Series and which may be in book-entry form.
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SECTION 27: Ordinance a Contract -Amendments. This
Ordinance shall constitute a contract with the Holders from
time to time, be binding on the City, and shall not be amended
or repealed by the City so long as any Certificate remains
Outstanding except as permitted in this Section. The City,
may, without the consent of or notice to any Holders, from time
to time and at any time, amend this Ordinance in any manner not
detrimental to the interests of the Holders, including the
curing of any ambiguity, inconsistency, or formal defect or
omission herein. In addition, the City may, with the written
consent of Holders owning a majority in aggregate principal
amount of the Certificates and Additional Certificates then
Outstanding affected thereby, amend, add to, or rescind any of
the provisions of this Ordinance; provided that, without the
consent of all Holders of Outstanding Certificates, no such
amendment, addition, or rescission shall (1) extend the time or
times of payment of the principal of, premium, if any, and
interest on the Certificates, reduce the principal amount
thereof, or the rate of interest thereon, or in any other way
modify the terms of payment of the principal of, premium, if
any, or interest on the Certificates, (2) give any preference
to any Certificate over any other Certificate, or (3) reduce
the aggregate principal amount of Certificates required to be
held by Holders for consent to any such amendment, addition, or
rescission.
SECTION 28: Sale of the Certificates Official
Statement Approval. The Certificates authorized by this
Ordinance are hereby sold by the City to Thomson McKinnon
Securities, Inc. and others (herein referred to collectively as
the "Purchasers") in accordance with the Purchase Contract,
dated Auqust 26, 1988, attached hereto as Exhibit A and
incorporated herein by reference as a part of this Ordinance
for all purposes. The Mayor is hereby authorized and directed
to execute said Purchase Contract for and on behalf of the City
and as the act and deed of this Council, and in regard to the
approval and execution of the Purchase Contract, the Council
hereby finds, determines and declares that the representations,
warranties and agreements of the City (contained in paragraph 6
tbereof) are true and correct in all material respects and
shall be honored and performed by the City.
Furthermore, the use of the Preliminary Official
Statement, dated Auqust 12, 1988, by the Purchasers in
connection with the public offering and sale of the
Certificates is hereby ratified, confirmed and approved in all
respects. The final Official Statement, being a modification
and amendment of the Preliminary Official Statement to reflect
the terms of sale, attached as Exhibit A to the Purchase
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Contract (together with such changes approved by the May.or,
City Manager, Assistant City Manager for Financial Services, or
City Secretary/Treasurer, any one or more of said officials),
shall be and is hereby in all respects approved and the
Purchasers are hereby authorized to use and distribute said
final Official Statement, dated August 26, 1988, in the
reoffering, sale and delivery of the Certificates to the
public. The Mayor and City Secretary are further authorized
and directed to manually execute and deliver for and on behalf
of the City copies of said Preliminary Official Statement and
Official Statement in final form as may be required by the
Purchasers, and such final Official Statement in the form and
content manually executed by said officials shall be deemed to
be approved by the City Council and constitute the Official
Statement authorized for distribution and use by the Purchasers.
SECTION 29: Control and Custody of Certificates. The
Mayor of the City shall be and is hereby authorized to take and
have charge of all necessary orders and records pending
investigation by the Attorney General of the State of Texas,
including the printing and supply of definitive Certificates,
and shall take and have charge and control of the Initial
Certificate pending the approval thereof by the Attorney
General, the registration thereof by the Comptroller of Public
Accounts, and the delivery thereof to the Purchasers.
Furthermore, the Mayor, the City Secretary, the City
Manager, and the Assistant City Manager for Financial Services,
any one or more of said officials, are hereby authorized and
directed to furnish and execute such documents relating to the
City and its financial affairs as may be necessary for the
issuance of the certificates, the approval of the Attorney
General, and their registration by the Comptroller of Public
Accounts and, together with the City's financial advisor, bond
counsel, and the Paying Agent/Registrar, make the necessary
arrangements for the delivery of the Initial Certificate to the
Purchasers and the initial exchange thereof for definitive
Certificates.
SECTION 30: Printed Opinion. The initial purchasers'
obligation to accept delivery of the Certificates is subject to
being furnished a final opinion of Fulbright & Jaworski,
Attorneys, Dallas, Texas, approving the Certificates as to
their validity, said opinion to be dated and delivered as of
the date of delivery and payment for the Certificates by the
initial purchaser. Printing of a true and correct reproduction
of said opinion on the reverse side of each of the definitive
Certificates is hereby approved and authorized.
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SECTION 31: CUSIP Numbers. CUSIP numbers may be
printed or typed on the definitive Certificates. It is
expressly provided, however, that the presence or absence of
CUSIP numbers on the definitive Certificates shall be of no
significance or effect as regards the legality thereof and
neither the City nor the attorneys approving said certificates
as to legality are to be held responsible for CUSIP numbers
incorrectly printed or typed on the definitive Certificates.
SECTION 32: Benefits of Ordinance. Nothing in this
Ordinance, expressed or implied, is intended or shall be
construed to confer upon any person other than the City, the
Paying Agent/Registrar, and the Holders, any right, remedy, or
claim, legal or equitable, under or by reason of this Ordinance
or any provision hereof, this Ordinance and all its provisions
being intended to be and being for the sole and exclusive
benefit of the City, the Paying Agent/Registrar, the Holders,
and Bond Counsel.
SECTION 33: 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 34: 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 35: Effect of Headings. The Section headings
herein are for convenience only and shall not affect the
construction hereof.
SECTION 36: Severability. If any provision of this
Ordinance or the application thereof to any circumstance shall
be held to be invalid, the remainder of this Ordinance or the
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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 37: Construction of Terms. If appropriate in
the context of this Ordinance, words of the singular number
shall be considered to include the plural, words of the plural
number shall be considered to include the singular, and words
of the masculine, feminine or neuter gender shall be considered
to include the other genders.
SECTION 38: Incorporation of Findings and
Determinations. The findings and determinations of the City
contained in the preamble hereof are hereby incorporated by
reference and made a part of this Ordinance for all purposes as
if the same were restated in full in this Section.
SECTION 39: 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.
SECTION 40: Effective Date. This Ordinance shall be
in force and effect from and after its passage on the date
shown below.
-40-
32688
PASSED AND APPROVED ON FIRST READING, this .:J.S+&..d!z;,f';f~J /fl'i'
PASSED AND APPROVED ON SECOND AND FINAL READING,
this ~/,d. k-, fCA·a .. ,~.l /9 ''
CITY OF LUBBOCK, TEXAS
ayor
ATTEST:
~0....~ ~secretary
(City seal)
-41-
32688
$2,774,68ZAO
CombinatioD Tu: and Sewer
System Subordinate Uen
Revenue Reflmding Boads
Series 1988
iXHIBJT A
CITY OF LUBBOCK
$5,000,000
Com.binatioa Tu: and Sewer
System. Subordinate Uen
Revenue Certificates or
ObUgatioa, Series 1988
PURCHASE CONTRAcr
August 26, 1988
'11IE HONORABLE MAYOR AND CITY COUNcn. MEMBERS
City of Lubbock
1625 13th Street
Lubbock, Texas 79457
Dear Mayor and City Council Members:
The undersigned, on behalf of itself and Dean Witter Reynolds Inc. (the
"Underwriters•), offers to enter into this Purchase Contract with the City of
Lubbock, Texas (the. '"City•). This offer is made subject to the City's
acceptance of this Purchase Contract on or before 3:00p.m., Central Daylight
Time on August 26, 1988. ·
1. Purcb.s.se and Sale o£ tbe Bam:ls. Upon the terms and conditions and
upon the basis of the representations set forth herein, the Underwriters hereby
jointly and severally agree to purchase from the City, and the City hereby
agrees to sell and deliver to the Underwriters an aggregate of $2,774,682.40
principal amount of City of Lubbock, Texas Combination Tax and Sewer System
Subordinate Lien Revenue Refunding Bonds, Series 1988 (the "Series 1988 Bonds")
and $5,000,000 City of Lubbock, Texas Combination Tax and Sewer System
Subordinate Lien Revenue Certificates of Obligation, Series 1988 (the ''Series
1988 Certificates of Obligation''; the Series 1988 Bonds and the Series 1988
Certificates of Obligation shall hereinafter be referred to collectively as the
"Bonds"). The Bonds shall be dated August 15, 1988 and shall have the
maturities and, except for the Series 1988 Bonds maturing in the years 1997
through 2000 (the "Capital Appreciation Bonds"), bear interest from their date
at the rate or rates per annum as shown on the cover page of the Official
Statement (hereinafter defined), such interest being payable on February 15,
1989, and semi-annually thereafter on August 15 and February 15 in each year.
The Capital Appreciation Bonds shall compound interest from their date of
delivery as of February 15, 1989 and each August 15 and February 15 thereafter.
The purchase price for the Series 1988 Bonds shall be $2,748,322.92
(representing the par amount of the Series 1988 Bonds, other than the Capital
Appreciation Bonds, of $2, 100,000, less an underwriter • s discount on such
. ____ ___.IIUlAIT I
Series 1988 Bonds of $19,950, plus the par amount of the Capital Appreciation
Bonds of $674,682.40, less an underwriter's discount on the Capital
Appreciation Bonds of $6,409 .48) plus interest accrued on the Series 1988
Bonds, other than the Capital Appreciation Bonds, from their date to the date
of the payment: for and delivery of the Bonds (the "Closing") . The purchase
price of the Series 1988 Certificates of Obligation shall be $4,937,500
(representing the par amount of the Series 1988 Certificates of Obligation of
$5,000,000, less an underwriter's discount thereon of $62,500) plus accrued
interest: on the Series 1988 Certificates of Obligation from their date to the
date of Closing. Exhibit A hereto is the Official Statement, including the
cover page and Appendices there eo, of the City dated August: 26, 1988, with
respect to the Bonds. The Official Statement:, including the cover page and
Appendices thereto, as further amended only in the manner hereinafter provided,
is hereinafter called the "Official Statement:."
2. Ordizumce. The .Bonds shall be as described in and shall be issued
and secured under the provisions of separate ordinances adopted by the City on
August 25, 1988 and August 26, 1988 (collectively, the "Ordinance"). The
Series 1988 Certificates of Obligation shall be subject: to redemption and
shall be payable as provided in the Ordinance.
3. Public O££ering. It shall be a condition of the obligation of the
City to sell and deliver the .Bonds to the Underwriters, and of the obligation
of the Underwriters to purchase and accept delivery of the Bonds, that the
entire principal amount of the .Bonds authorized by the Ordinance shall be sold
and delivered by the City and accepted and paid for by the Underwriters at the
Closing. The Underwriters agree to make a bona fide public offering of all of
the .Bonds, at not in excess of the initial public offering prices, as set forth
on the cover page of the Official Statement, plus interest accrued thereon from
the date of the .Bonds (except for the Capital Appreciation Bonds) and confirm
in writing to the City the principal amount (or percentage of principal amount)
of each maturity and the corresponding price for each maturity (or the yield
from each maturity resulting from such price) at which the Bonds sold pursuant:
to such bona fide public offering.
4. Security Deposit. Delivered to the City herewith is a corporate
check of Thomson McKinnon Securities, Inc. payable to the order of the City in
the amount of $77,900. The City agrees to hold such check uncashed until the
Closing to ensure the performance by the Underwriters of their obligations to
purchase, accept delivery of and pay for the Bonds at the Closing.
Concurrently with the payment by the Underwriters of the purchase price of the
Bonds, the City shall return such check to Thomson McKinnon Securities, Inc. as
provided in Paragraph 7 hereof. Should the City fail to deliver the Bonds at:
the Closing, or should the City be unable eo satisfy the conditions of the
obligat:ions of the Underwriters to purchase, accept delivery of and pay for the
Bonds, as set: ford1 in this Purchase Contract (unless waived by the
Underwrit:ers), or should such obligat:ions of the Underwriters be terminated for
any reason permitted by this Purchase Contract, such check shall immediately be
returned to the Thomson McKinnon Securities, Inc. In the event the
Underwriters fail (other than for a reason permitted hereunder) to purchase,
accept delivery of and pay for the Bonds at the Closing as herein provided,
such check shall be retained by the City as and for full liquidated damages for
such failure of the Underwriters and for any defaults hereunder on the part: of
the Underwriters. !he Underwriters hereby agree not to stop or cause payment
2
on said check to be stopped unless the City has breached any of the terms of
this Purchase Contract.
5. Official Statement. The City hereby authorizes the Escrow Agreement,
hereinafter defined, the Ordinance and the Official Statement and the
information therein contained to be used by the Underwriters in connection with
the public offering and sale of the Bonds. The City confirms its consent to
the use by the Underwriter prior to the date hereof of the Preliminary Official
Statement dated August 12. 1988 (the "Preliminary Official Statement") in
connection with the public offering and sale of the Bonds.
6. RepresentstJ.cms, flarrsnties and Agreements of City. On the date
hereof, the City represents, warrants and agrees as follows:
(a) The City is a municipal corporation, a political subdivision of
the State of Texas and a body politic and corporate, and bas full legal
right, power and authority to enter into this Purchase Contract, and the
Escrow Agreement for the Series 1988 Bonds, between the City and the
Escrow Agent named in the Official Statement (the "Escrow Agreement"), to
adopt the Ordinance, to sell the Bonds, and to issue and deliver the Bonds
to the Underwriters as provided herein and to carry out and consummate all
other transactions contemplated by the Ordinance, the Escrow Agreement and
this Purchase Contract;
(b) By official action of the City prior to or concurrently with the
acceptance hereof, the City has duly adopted the Ordinance, bas duly
authorized and approved the execution and delivery of, and the performance
by the City of the obligations contained in the Bonds, the Escrow
Agreement and this Purchase Contract and has duly authorized and approved
the performance by the City of its obligations contained in the Ordinance,
the Escrow Agreement and in this Purchase Contract;
(c) The City is not in breach of or default under any applicable law
or administrative regulation of the State of Texas or the United States or
any applicable judgment or decree or any loan agreement, note, resolution,
agreement or other instrument, except as may be disclosed in the Official
Statement, to which the City is a party or is otherwise subject, which
would have a material and adverse effect upon the business or financial
condition of the City, including the sewer system of the City (the
"System•); and the execution and delivery of the Escrow Agreement and this
Purchase Contract by the City and the execution and delivery of the Bonds
and the adoption of the Ordinance by the City and compliance with the
provisions of each thereof will not violate or constitute a breach of or
default under any existing law, administrative regulation, judgment,
decree or any agreement or other instrument to. which the City is a party
or is otherwise subject;
(d) All approvals, consents and orders of any governmental authority
or agency having jurisdiction of any matter which would constitute a
condition precedent to the performance by the City of its obligations to
sell and deliver the Bonds hereunder will have been obtained prior to the
Closing;
3
(e) At the time of the City's acceptance hereof and at the time of
the Closing, the Official Statement· does not and will not contain any
untrue statement: of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statement:s therein,
in the light of the circumstances under which they were made, not:
misleading;
(f) Between the date of this Purchase Contract and Closing, the City
will not, without the prior written consent of the Underwriters, issue any
additional bonds, certificates of obligation, notes or other obligations
for borrowed money payable in whole or in part from ad valorem taxes or
revenues of the System, and the City will not incur any material
liabilities, direct or contingent, relating to, nor will there be any
adverse change of a material nature in the financial position of, the City
or the System;
(g) Except as described in the Official Statement, no litigation is
pending or, to the knowledge of the City, threatened in any court
affecting the corporate existence of the City, the title of its officers
=o their respective offices, or seeking to restrain or enjoin the issuance
or delivery of the Bonds, or the collection of the ad valorem taxes or the
collection of revenues of the System pledged or to be pledged to pay the
principal of and interest on the Bonds, or in any way contesting or
affecting the issuance, execution, delivery, payment, security or validity
of the Bonds, or in any way contesting or affecting the validity or
enforceability of the Ordinance, the Escrow Agreement or this Purchase
Contract, or contesting the powers of the City, or any authority for the
Bonds, the Ordinance, the Escrow Agreement, or this Purchase Contract or
contesting in any way the completeness, accuracy or fairness of the
Preliminary Official Statement or the Official Statement or materially and
adversely affecting the financial condition of the City or the System;
(h) The City will cooperate with the Underwriters in arranging for
the qualification of the Bonds for sale and the determination of their
eligibility for investment under the laws of such jurisdictions as the
Underwriters designate, and will use their best efforts to continue such
qualifications in effect so long as required for distribution of the
Bonds; provided, however, that the City will not be required to execute a
general consent to service of process or to qualify to do business in
connection with any such qualification in any jurisdiction;
(i) The descriptions contained in the Official Statement of the
Bonds, the Escrow Agreement and the Ordinance accurately reflect the
provisions of such instruments, and the Bonds , when validly executed,
authenticated and delivered in accordance with the Ordinance and sold to
the Underwriters as provided herein, will be validly issued and
outstanding obligations of the City entitled to the benefits of, and
subject to the limitations contained in, the Ordinance; and
(j) If prior to the Closing an event occurs affecting the City which
is materially adverse for the purpose for which the Official Statement is
to be used and is not disclosed in the Official Statement, the City shall
notify the Underwriters, and if in the opinion of the Underwriters such
event: requires a supplement or amendment to the Official Statement:, the
4
City will supplement or amend the Official Statement in a form and in a
manner approved by the Underwriters' Counsel.
7. Closb:Jg. At 10:00 A.M., Central Daylight Time, on September 27,
1988, :he City will deliver the initial bond or bonds (as defined in the
Ordinance) to the Underwriters and will have available for immediate exchange
the Bonds in definitive form, duly executed and authenticated, together with
the other documents hereinafter mentioned, and the Underwriters will accept
such delivery and pay the respective purchase prices of the Series 1988 Bonds
and the Series 1988 Certificates of Obligation as set forth in Paragraph 1
hereof in immediately available funds. Concurrently with such payment by the
Underwriters, the City shall return to Thomson McKinnon Securities, Inc., the
check referred to in Paragraph 4 hereof. Delivery and payment as aforesaid
shall be made at the offices of Fulbright & Jaworski, 2800 Texas Commerce Bank
Tower, 2200 Ross Avenue, Dallas, Texas 7 5201, or such other place, as shall
have been mueually agreed upon by the City and the Underwriters. The Bonds
shall be printed or 11 tho graphed; shall be prepared and delivered as fully
registered bonds in the denomination or maturity amount of $5,000 or any
multiple thereof; shall be registered in the names as shall be requested by the
Underwriters at least five days prior to the Closing; and, if the Underwriters
shall so request, shall be made available to the Underwriters at least one
business day before the Closing for purpose of inspection in New York, New
York.
8. Coadltians. The Underwriters have entered into this Purchase
Contract in reliance upon the representations and warranties of the City
contained herein and to be contained in the documents and instruments to be
delivered at the Closing, and upon the performance by the City of its
obligations hereunder, both as of the date hereof and as of the date of
Closing. Accordingly, the Underwriters' obligations under this Purchase
Contract to purchase and pay for the Bonds shall be subject to the performance
by the City of its obligations to be performed hereunder and under such
documents and instruments at or prior to the Closing, and shall also be subject
to the following conditions:
(a) The representations and warranties of the City contained herein
shall be true, complete and correct in all material respects on the date
hereof and on and as of the date of Closing, as if made on the date of
Closing;
(b) At the time of the Closing, the Ordinance and the Escrow
Agreement shall be in full force and effect, and the Ordinance and the
Escrow Agreement shall not have been amended, or supplemented and the
Official Statement shall not have been amended, modified or supplemented,
except as may have been agreed to by the Underwriters;
(c) At the time of the Closing, all official action of the City
related to the Ordinance and the Escrow Agreement shall be in full force
and effect and shall not have been amended, modified or supplemented;
(d) The City shall not have failed to pay principal or interest when
due on any of its outstanding obligations for borrowed money;
5
(e) The City will purchase the government securities necessary to
provide the funds needed to refund the City's outstanding obligations as
contemplated by the Escrow Agreement;
(f) At or prior to the Closing, the Underwriters shall have received
~o copies of each of the following documents:
(1) The Official Statement of the City executed on behalf of
the City by the Mayor and City Secretary of the City;
(2) The Ordinance certified by the City Secretary of the City
under its seal as having been duly adopted by the City and as being
in effect, with such changes or amendments as may have been agreed to
by the Underwriters;
(3) An unqualified opinion, dated the date of Closing, of
Fulbright & Jaworski, Bond Counsel to the City, in substantially the
forms and substance of Appendices E and F to the Official Statement;
(4) An unqualified opinion or certificate, dated on or prior to
the date of Closing, of the Attorney General of Texas, approving the
Bonds as required by law and a certificate of the Comptroller of
Public Accounts of the State of Texas regarding the registration of
the .Bonds as required by law;
(5) The supplemental opinion, dated the date of Closing, of
Fulbright & Jaworski, .Bond Counsel to the City, addressed to the City
and the Underwriters, to the effect that (A) in its capacity as Bond
Counsel, such firm has reviewed the information in the Official
Statement . under the captions, "Description of the Bonds, "
"Description of the Certificates," "Security for the Bonds and
Certificates• (except for the subcaptions "Tax Rate Limitation, ..
Payment Record," and .Bondholder and Certificateholder Remedies), "Tax
Exemption," ~Tax Accounting Treatment of Capital Appreciation .Bonds,"
and "Legal Investments and Eligibility to Secure Public Funds in
Texas• and such firm is of the opinion that the information relating
to the .Bonds and the Ordinance contained under such captions in all
respects accurately and fairly reflects the provisions thereof;
(.B) the .Bonds are exempt from registration pursuant to the Securities
Act of 1933, as amended, and the Ordinance is exempt from
qualification as an indenture pursuant to the Trust Indenture Act of
1939, as amended; (C) in the performance of their duties as Bond
Counsel for the City, without having undertaken to determine
independently the accuracy and completeness of the statements
contained in the Official Statement, nothing has come to the
attention of such counsel which would lead them to believe that the
Official Statement (excluding the financial and statistical data and
forecasts included therein, all as to which no view need be
expressed) contains any untrue statement of a material fact or omits
to state a material fact necessary to make the statements therein, in
light of the circumstances under which they were made, not
misleading;
6
(6) The opinion of McCall, Parkhurst & Horton, as Underwriters'
Counsel, dated the date of the Closing addressed to the Underwriters
to the effect that the Bonds are exempt from registration pursuant to
the Securities Act of 1933, as amended, and the Ordinance is exempt
from qualification as an indenture pursuant to the Trust Indenture
Act of 1939, as amended. The opinion of such Counsel shall also
state that, based upon their participation in the preparation of the
Official Statement, such Counsel has no reason to believe that the
Official Statement (except for the financial statements and other
ftaancial and statistical data contained therein, as to which no view
need be expressed), as of the date of the Official Statement,
contained any untrue statement of a material fact or omitted to state
any material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not
misleading;
(7) A certificate, dated the date of Closing, signed by the
Mayor and the City Attorney of the City, to the effect that (i) the
representations and warranties of the City contained herein are true
and correct in all material respects on and as of the date of Closing
as if made on the date of Closing; (ii) except to the extent
disclosed in the Official Statement, no litigation is pending or, to
the knowledge of such persons, threatened in any court to restrain or
enjoin the issuance or delivery of the Bonds I or the collection of
the ad valorem taxes or the Net Revenues of the System pledged or to
be pledged to pay the principal of and interest on the Bonds, or the
pledge thereof, or in any way contesting or affecting the validity of
the Bonds 1 the Ordinance, the Escrow Agreement or this Purchase
Contract, or contesting the powers of the City or contesting the
authorization of the Bonds or the Ordinance, or contesting in any way
the accuracy, completeness or fairness of the Preliminary Official
Statement or the Official Statement (but in lieu of or in conjunction
with such certificate the Underwriters may, in their discretion,
accept certificates or opinions of the City Attorney that, in his or
her opinion, the issues raised in any such pending or threatened
litigation are without substance or that the contentions of all
plaintiffs therein are without merit); and (iii) to the best of their
knowledge, no event affecting the City has occurred since the.date of
the Official Statement which should be disclosed in the Official
Statement for the purpose for which it is to be used or which it is
necessary to disclose therein in order to make the statements and
information therein not misleading in any respect;
(8) A certificate, dated the date of Closing, of the Assistant
City Manager for Financial Affairs of the City to the effect that
there has not been any material and adverse change in the affairs or
financial condition of the City since September 30, 1987, the latest
date as to which audited financial information is available;
(9) A certificate, dated the date of the Closing, of an
appropriate official of the City to the effect that, on the basis of
the facts, estimates and circumstances in effect on the date of
delivery of the Bonds, it is not expected that the proceeds of the
Bonds will be used in a manner that would cause the Bonds to be
7
arbitrage bonds within the meaning of Section 148(a) of the Internal
Revenue Code of 1986, as amended;
(10) A copy of a special report prepared by the independent
Certified Public Accountants named in the Official Statement,
addressed to the City, Bond Counsel, the Underwriters and
Underwriters• Counsel verifying the arithmetical computations of the
adequacy of the maturing principal and interest on the escrowed
securities and uninvested cash on hand under the Escrow Agreement to
pay, when due, the principal of and interest on the bonds being
refunded by the Series 1988 Bonds and the computation of the yield
with respect to such securities and the Series 1988 Bonds;
(11) Evidence of the ratings on the Bonds shall be delivered in
a form acceptable to the Underwriters; and
(12) Such additional legal opinions, certificates, instruments
and other documents as Bond Counsel or the Underwriters may
reasonably request to evidence the truth, accuracy and completeness,
as of the date hereof and as of the date of Closing, of the City's
representations and warranties contained herein and of the statements
and information contained in the Official Statement and the due
performance and satisfaction by the City at or prior to the date of
Closing of all agreements then to be performed and all conditions
then to be satisfied by the City.
All of the opinions, letters, certificates, instruments and other
documents mentioned above or elsewhere in this Purchase Contract shall be
deemed to be in compliance with the provisions hereof if, but only if, they are
satisfactory to the Underwriters.
If the City shall be unable to satisfy the conditions to the obligations
of the Underwriters to purchase, to accept delivery of and to pay for the Bonds
as set forth in this Purchase Contract, or if the obligations of the
Underwriters to purchase, to accept delivery of and to pay for the Bonds shall
be terminated for any reason permitted by this Purchase Contract, this Purchase
Contract shall terminate and neither the Underwriters nor the City shall be
under further obligation hereunder, except that: (i) the check referred to in
Paragraph 4 hereof shall be immediately returned to. Thomson McKinnon
Securities, Inc. by the City, and (ii) the respective obligations of the City
and the Underwriters set forth in Paragraphs 10 and 12 hereof shall continue in
full force and effect.
9. TerminacJ.OD. The Underwriters may terminate their obligation to
purchase at any time before the Closing if any of the following should occur:
(a) (i) Legislation (including any amendment thereto) shall have been
introduced in or. adopted by either House of the Congress of the United
States, or recommended to the Congress for passage by the President of the
United States or favorably reported for passage to either House of the
Congress by any Committee of such House, or (ii) a decision shall have
been rendered by a court established under Article III of the Constitution
of the United States or by the United States Tax Court, or (iii) an order,
ruling or regulation shall have been issued or proposed by or on behalf of
8
the Treasury Department of the United States or the Internal Revenue
Service or any other agency of the United States, or (iv) a release or
official statement shall have been issued by the President of the United
States or by the Treasury Department of the United States or by the
Internal Revenue Service, the effect of which, in any such case described
in clause (i), (ii), (iii), or (iv), •;1ould be to impose, directly or
indirectly, federal income taxation upon interest received on obligations
of the general character of the Bonds or upon income of the general
character to be derived by the City, other than as imposed on the Bonds
and income therefrom under the federal tax laws in effect on the date
hereof, in such a manner as in the judgment of the Underwriters would
materially impair the marketability or materially reduce the market price
of obligations of the general character of the Bonds.
(b) Any action shall have been taken by the Securities and Exchange
Commission or by a court which would require registration of any security
under the Securities Act of 1933, as amended, or qUa.lification of any
indencure under the Trust Indenture Act of 1939, as amended, in connection
~ith the public offering of the Bonds, or any action shall have been taken
by any court or by any governmental authority suspending the use of the
Official Statement or any amendment or supplement thereto, or any
proceeding for that purpose shall have been initiated or threatened in any
such court or by any such authority.
(c) (i) The Constitution of the State of Texas shall be amended or
an amendment shall be proposed, or (ii) legislation shall be enacted, or
(iii) a decision shall have been rendered as to matters of Texas law, or
(iv) any order, ruling or regulation shall have been issued or proposed by
or on behalf of the State of Texas by an official, agency or department
thereof, affecting the tax status of the City, its property or income, its
bonds (including the Bonds) or the interest thereon, which in the judgment
of the Underwriters would materially affect the market price of the Bonds.
(d) (i) A general suspension of trading in securities shall have
occurred on the New York Stock Exchange, or (ii) the United States shall
have become engaged in hostilities which have resulted in the declaration,
on or after the date of this Purchase Contract, of a national emergency or
war, the effect of which, in either case described in clause (i) and (ii),
is, in the judgment of the Underwriters, so material and adverse as to
make it impracticable or inadvisable to proceed with the public offering
or the delivery of the Bonds on the terms and in the manner contemplated
in this Purchase Contract and the Official Statement.
(e) An event described in Paragraph 6(j) hereof occurs which, in the
opinion of the Underwriters, requires a supplement or amendment to the
Official Statement.
(f) A general banking moratorium shall have been declared by
authorities of the United States, the State of New York or the State of
Texas.
(g) A lowering of the ratings initially assigned to the Bonds below
"Aa" and "AA" by either Moody's Investors Service, Inc. or Standard &
9
Poor's Corporation, respectively, shall occur prior to Closing or failure
to provide evidence of the confirmation of each rating.
(h) Any event occurs which prevents the United States Treasury
Depar~ent from delivering on the Closing Date the State and Local
Government Securities subscribed for by the City in connection with the
issuance of the Series 1988 Bonds.
10. Expenses. {a) The Underwriters shall be under no obligation to pay,
and the City shall pay, any expenses incident to the performance of the City's
obligations hereunder, including but not limited to: {i) the cost of the
preparation, printing and distribution of the Official Statement; (ii) the cost
of the preparation and printing of the Bonds; {iii) the fees and expenses of
Bond Counsel to the City; {iv) the fees and disbursements of the City's
accountants, advisors, and of any other experts or consultants retained by the
City; and {v) fees and premiums for bond ratings and bond insurance,
respectively, and any travel or other expenses incurred incident thereto.
(b) The Underwriters shall pay: (i) all advertising expenses of the
Underwriters in connection with the offering of the Bonds; {ii) the cost of the
preparation and printing of all the underwriting documents, including this
Purchase Contract and (iii) all other expenses incurred by them in connection
with their offering and distribution of the Bonds, including the fees of
Counsel to the Underwriters.
11. Notices. Any notice or other communication to be given to the City
under this Purchase Contract may be given by delivering the same in writing at
the address for the City set forth above, and any notice or other communication
to be given to the Underwriters under this Purchase Contract may be given by
delivering the same in writing to Thomson McKinnon Securities, Inc., 333 Clay
Street, Suite 1600, Houston, Texas 77002, Attention: Mr. Stephen A. Drury.
12. Parties in Interest. This Purchase Contract is made solely for the
benefit of the City and the Underwriters (including the successors or assigns
of any Underwriter) and no other person shall acquire or have any right
hereunder or by virtue hereof. The City's representations, warranties and
agreements contained in this Purchase Contract shall remain operative and in
full force and effect, regardless of (i) any investigations made by or on
behalf of the Underwriters and (ii) delivery of any payment for the Sonds
hereunder; and the City's representations and warranties contained in Paragraph
6 of this Purchase Contract shall remain operative and in full force and
effect, regardless of any termination of this Purchase Contract.
10 ______ .::..:._ ________________________ --
l.!. Ufaot:J.v• DlJ.tll. ru. Purc.haaa CGnt:rac.t aha11 bacoa effacc1va U'POil
the exacutiOD of the acca'Ptanca ha~eof by the Mayor of tha City and ahall be
vali4 and enforceable aa of the ttme of such acce'Pcanca.
!hia ~6th day of Auguat, 1988
By~ ~----------------------Mayor,
Cit.y of Lubbock., '!exaa
(SIAL)
Altelt:
City Sec~ea.ry.
City of LUbbock, Tez&l
Very truly your a,
moMSON MeKINNON ~INC.
DEAN Wtl*l'EI. lQtY.NOLDS INC.
~OMSON McKINNON SECDR1'11ES, INC.
!y: ~s.-!d-.-or~V~i-ce~f~r-ea~i~~~n-c __________ _
EDdbit A
Oflidal Statement
, ..
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 August, 1988, the City
Council of the City of Lubbock, Texas, convened in regular
session as its regular meeting place in the City Hall of said
City; the duly constituted members of the City Council being as
follows:
B. C. MCMINN
T. J. PATTERSON
MAGGIE TREJO
GARY D. PHILLIPS
JOAN BAKER
GEORGE W. CARPENTER
BILL MALOY
)
)
)
)
)
)
)
MAYOR
COUNCILMEMBERS
and all of said persons were present at said meeting except the
following: ~ .
Among other business considered at said meeting, the attached
ordinance entitled:
32658
AN ORDINANCE authorizing the issuance of $5,000,000
"CITY OF LUBBOCK, TEXAS, COMBINATION TAX AND
SEWER SYSTEM SUBORDINATE LIEN REVENUE
CERTIFICATES OF OBLIGATION, SERIES 1988";
providing for the payment of said certifi-
cates of obligation by the levy of an ad
valorem tax upon all taxable property within
the City and a pledge of the net revenues
derived from the operation of the City's
Sewer System; providing the terms and
conditions of such certificates of obliga-
tion and resolving other matters incident
and relating to the issuance, payment, and
security, of said certificates of obliga-
tion, including the approval and execution
of a Purchase Contract and 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 consid~on of the
ordinance, a motion was made by Councilmember ... £., that
the ordinance be passed and adopted on ~irst r ad11{g. The
motion was seconded by Councilmemberf""~~ and the
ordinance was passed and adopted on first read'Il<f by the City
Council by the following vote:
7 voted "For .. c2 voted "Against .. a 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 said 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 advance notice of the
time, place, and purpose of the meeting; 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 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 offi-
ci~~d affixed the seal of said City, this the a2_Sd., day
of , 1988.
(~~~ City cretarj"--
City of Lubbock, Texas
(City Seal)
3265B
.
'
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 August, 1988, the City
Council of the City of Lubbock, Texas, convened in special
session as its regular meeting place in the City Hall of said
City; the duly constituted members of the City Council being as
follows:
B. C. MCMINN
T. J. PATTERSON
MAGGIE TREJO
GARY D. PHILLIPS
JOAN BAKER
GEORGE W. CARPENTER
BILL MALOY
)
)
)
)
)
)
)
MAYOR
COUNCILMEMBERS
and all of said persons were present at said meeting except the
following: ~
Among other business considered at said meeting, the attached
ordinance entitled:
3 2 6 5 B
AN ORDINANCE authorizing the issuance of $5,000,000
"CITY OF LUBBOCK, TEXAS, COMBINATION TAX AND
SEWER SYSTEM SUBORDINATE LIEN REVENUE
CERTIFICATES OF OBLIGATION, SERIES 1988";
providing for the payment of said certificates of
obligation by the levy of an ad valorem tax upon
all taxable property within the City and a pledge
of the net revenues derived from the operation of
the City's Sewer System; providing the terms and
conditions of such certificates of obligation and
resolving other matters incident and relating to
the issuance, payment, and security, of said
certificates of obligation, including the
approval and execution of a Purchase Contract and
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~of the
ordinance, a motion was made by Counci lmember · • that
the ordinance be passed and adopted on second and final
reading. The motion was seconded by Councilmember 121~
and the ordinance was finally passed and adopted by theity
Council to be effective immediately by the following vote:
7 . voted "For" voted "Against" 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 said 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 advance notice of the
time, place, and purpose of the meeting; 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 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 offi-
cially and affixed the seal of said City, this the~~~day of
August, 1988.
~~2
City of Lubbock, Texas
(City Seal)
lZI'oS'B
. .
~:r
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
GENERAL CERTIFICATE
§
§
§
§
§
WE, the undersigned, Mayor and City secretary, respect-
ively, of the City of Lubbock, Texas, DO HEREBY CERTIFY as
follows:
1. Relative to Tax Supported Indebtedness.
That the total principal amount of indebtedness
of the City, including the proposed $5,000,000 "CITY OF
LUBBOCK, TEXAS, COMBINATION TAX AND SEWER SYSTEM SUBORDINATE
LIEN REVENUE CERTIFICATES OF OBLIGATIONS, SERIES 1988," dated
August 15, 1988, and the proposed $2,774,682.40 "CITY OF
LUBBOCK, TEXAS, COMBINATION TAX AND SEWER SYSTEM SUBORDINATE
LIEN REVENUE REFUNDING BONDS, SERIES 1988," dated August 15,
1988, payable in whole or in part from ad valorem taxes levied
and collected by the City is as follows:
Outstanding Indebtedness
The Series 1988 Bonds
The Series 1988 certificates
$75,184,070.00*
$ 2,774,682.40
$ 5,000,000.00
TOTAL INDEBTEDNESS-----------$82,958,752.40
2. Relative to Debt Service Requirements.
That a debt service requirement schedule for the
City's outstanding tax-supported indebtedness, as well as the
proposed "City of Lubbock, Texas, Combination Tax and Sewer
System Subordinate Lien Revenue Certificates of Obligation,
Series 1988," and the proposed "City of Lubbock, Texas,
Combination Tax and Sewer System Subordinate Lien Revenue
Refunding Bonds, Series 1988" , is attached hereto as Exhibit A
and made a part of this Certificate for all purposes.
* $2,700,000 of such amount is being refunded by "City of Lubbock,
Texas, Combination Tax and Sewer System Subordinate Lien Revenue
Refunding Bonds, Series 1988".
.. .
' .
J • '
3. Relative to Petition.
That no petition of any kind or character, signed
by at least 5% of the qualified electors of the City, has been
filed with the Mayor, City Secretary, or any other official of
the City protesting the issuance of the proposed $5, ooo, ooo
"CITY OF LUBBOCK, TEXAS, COMBINATION TAX AND SEWER SYSTEM
SUBORDINATE LIEN REVENUE CERTIFICATES OF OBLIGATION, SERIES
1988, .. dated August 15, 1988.
4. Relative to Taxable Values.
That the assessed value of all taxable property
(net of exemptions) in the City, as shown by the tax rolls for
the year 1987, and which have been duly approved and are the
latest official assessment of taxable property in the City, is
as follows:
TOTAL ASSESSED TAXABLE VALUES OF
REAL AND PERSONAL PROPERTY
5. Relative to Nonencumbrance.
$4,572,393,308
That, save and except for the proposed CITY OF
LUBBOCK, TEXAS, COMBINATION TAX AND SEWER SYSTEM SUBORDINATE
LIEN REVENUE CERTIFICATES OF OBLIGATION, SERIES 1988, dated
August 15, 1988, and CITY OF LUBBOCK, TEXAS, COMBINATION TAX
AND SEWER SYSTEM SUBORDINATE LIEN REVENUE REFUNDING BONDS,
SERIES 1988, dated August 15, 1988, the income and revenues of
said System have not been pledged or hypothecated in any other
manner or for any other purpose; and that the above obligations
evidence the only lien, encumbrance, or indebtedness of said
System or against the income and revenues of such System.
6. Relative to Rates and Charges.
That the current monthly rates and charges for
services provided by the City's Sewer System are as shown in
Exhibit B attached hereto and made a part hereof for all
purposes.
7. Relative to Sewer System.
That the City has obtained all requisite
licenses, permits, and approvals for the operation of a sewer
system and, as of the date hereof, no question is pending and
no proceedings of any nature have been instituted questioning
the City's right and title to its utility properties or its
authority to operate same.
-2-
3269B
•
8. Relative to Income and Revenues.
That the following is a schedule of the gross
revenues, operating expenses, and net revenues of the City's
Sewer System for the years stated:
FISCAL YEAR GROSS OPERATING NET
ENDING REVENUES EXPENSES REVENUES
1984 $3,652,528 $2,441,555 $1,210,973
1985 4,173,730 2,482,623 1,691,107
1986 4,194,086 2,085,015 2,109,071
1987 5,001,994 3,248,237 1,753,757
1988* 5,471,500 3,592,923. 1,878,577
*Rate increase effective 8-1-88
9. Relative to City Officials.
That certain duly qualified and acting officials
of the City are as follows:
B. C. McMINN
RANETTE BOYD
LARRY J. CUNNINGHAM
J. ROBERT MASSENGALE
MAYOR
CITY SECRETARY
CITY MANAGER
ASSISTANT CITY MANAGER FOR
FINANCIAL SERVICES -TREASURER
10. Relative to Incorporation.
That said City is incorporated under the General
Laws of the State of Texas, and is operating under the Home
Rule Amendment to the Texas Constitution, Section 5, Article
XI, as amended in 1912; the City Charter was originally adopted
at an election held on December 27, 1917, and said Charter has
not been amended in any respect since May 7, 1988, the date of
the last Charter Amendment election.
WITNESS OUR HAND AND AHE ~EAL OF THE CITY OF LUBBOCK,
TEXAS, this the cP&d day of~, 198l.
ayor, .-..
City of Lubbock, Texas
~-~ CitYCretarY City of Lubbock, Texas
(City seal)
-3-
3269B
.,, ... , ··--, .......... ............. --lo.lol8""""""' gQ ....,
.,
:' Exhibit A
.. I>RICED TO MATURITY .
" ..
am fBI!fCIPAl m!:!!. INT-UIT p!IT l!ltVU:! !I!!J?. mg
Z/15/19!9 18!,!50.00 18!,350.00
1/15/19!9 18!,350.00 18!,350.00
2/15!1990 100,000.00 6.CCO 18!,350.00 W,!5C.CO 6.000 100.000
ll/15/t990 180,150.00 110,~50.00
2/15/1991 100,000.00 6.250 180,350.00 280,3SC.DO 6.250 1Dt),DOO
lV15/1991 171,225.00 117,ZZS.OQ
i/1!/1~:2 125,000.00 6.500 177,225.00 302,225.00 6.500 100.000
8/1511992 tt.s, 16Z.5CJ 17!,162.50
211snm t75,0CO.OO 6.600 173,162.50 ~a. 162.5o 6.600 100.000
8!151199J 167,!87.50 ,,., ,3!7 .50
2/15/1994 2!0,000.~ 6.750 167,337.50 617,367.50 6.1'!0 100.000
8/15!1994 158,9$0,00 151,9$0.00
2/15/1995 250,000.00 6.900 158,950.00 408,950.00 6.900 100.000
8115/1995 1!0,32!.~ t!0,!2!.ca
2/15/1996 325,000.00 7.000 150,325.00 475,325.00 7.000 100.000
8/15/1996 1!&,950.00 118,950.00
2/15/1997 325,000.00 1.100 118,950.00 463,950.00 1.100 100.000
1/15/190? 127,412.50 t2?,41Z.!O
Z/15/1998 125,000.00 7.200 1ZT,412,50 451,412.50 7.200 100.000
l/15/1908 tt5,7U.50 115,712.50
V1S/1900 125,000.00 7.!00 1t5,712.50 "0,712.50 7.JOO 100.000
8115/1999 ....... _ 105,150.00 10!,850.00
Z/15/2000 325,000.00 7.400 103,150.00 '28,850.00 7.400 1CO.OQQ.
8/15/2000 91,125.00 91,825.00.
2/15/2001 325,000.00 7.500 ,,,125.00 414,!25.00 7.500 100.000
8115/2001 7'9,637.50 79,631.50
2/15/2002 325,000.00 7.600 7'9,637.50 404,637.50 7.600 100.000 1/15/2002 61,287.SO 67,2&1.50
Z/15/200! 325,COO.OQ 7.700 6T,U7.50 !~2.247.50 1:roo. 100.000
8/15/2003 54,775.00 54,775.CC
2/15/2004 350,000.00 7.750 !4,775.00 4ot.,m.ca 7.1'50 100.000
8/15/2004 41,2\2,50 41,2U.5C
2/1S/200S sso,coo.co 7.100 41,212.50 191,212.50 7.800 100.000
8/15/2005 Z7,!62.SD 27',562.50.
2/1!12006 !50,000.00 r.aso 27,562.50 177',562.50 7.850 100.000
11'5/2006 11,125.00 1!,825.00
2/15/2007 S5D,®O,OO 7.900 11,825.00 !63,825.00 7.900 100.000
TOTALC s,coo,ooo.ao 4,288,950.00 9,ZI!,950.00
/:.2...
..
. · ...
Exhibit B
SEWER RATES
(Monthly)
Sewer rates were increased effective August 1, 1988, and an additional rate increase is
planned to become effective during Fiscal Year Ending 9-30-89:
Residential
Present Rates
(Effective 8-1-88)
First 3,000 gallons $4.60 (Minimum)
Next 7,000 gallons 0.33/M gallons
Over 10,000 gallons No additional charge
(Maximum Monthly Charge -$6.91)
Commercial/Industrial*
First 3,000 gallons $4.60 (Minimum)**
Over 3,000 gallons 0.33/M gallons
Previous Rates
(Effective 8-1-86)
First 3,000 gallons $3.85 (Minimum
Next 7,000 gallons 0.33/M gallons
Over 10,000 gallons No additional charge
(Maximum Monthly Charge -$6.16)
First 3,000 gallons $3.85 (Minimum)**
Over 3,000 gallons 0.33/M gallons
* Industrial waste that exceeds the allowable strength is admitted to the sewer system
only by contract with the City; charges for treating biochemical oxygen demand (8.0.0.)
and suspended solids (S.S.) are:
8.0.0. s.s. $0.0800/lb.
$0.0683/lb.
$0.0545/lb.
$0.0463/lb.
** Based on 5/8" or 3/4" meter; higher minimums for larger meters up to a maximum
charge for a 10" meter of:
$478.36 $392.65
DEBT SERVICE REQUIREMENTS•
1•1scal
Year
Ending Outstandins Debt The Bonds The Certificates
9·30 'Pilnc~ lhterest Total Principal Interest m Total Principal Interest Total
19i8 n;ro ,ooo s ;;,~o;363 STJ;l9,,l6; s s s s s s
1989 7,ou,ooo ,,452,.,9 12,H7,49~ 22,,000 111,204 356,204 36,,788 3U,788
1990 6,930,000 4,796,438 11,726,438 22,,000 117,985 342,9U 100,000 362,788 462,788
1991 6,790,000 4,282,0U 11,072,043 23,,000 103,9,0 338,950 100,000 3,6,688 4'6,688
1992 6,4U1000 3,782,714 10,2'17,714 2,0,000 88,66' )]8,665 12,,000 n9,na 117lf,n8
1993 ,,910,000 3,3U,l21 9,225,321 26,,000 71,920 336,~20 17,,000 33~,au ,.,,au
19911 ,,,0,000 2,171,266 8,U8,266 285,000 n,,., JJ8,4U 2,0,000 32,,,38 ,7,,531
l99j ,,065,000 2,1168,1195 1,.533,11" 105,000 33,273 JJ8,273 2,0,000 308,1fiJ ,8,1fl3
1996 ,,07.5,000 2,072,507 7,11f7,507 32.5,000 11,375 336,37, 32,,000 288,1113 613,1113
1997 ,,ou,ooo 1,676,352 6,691,3.52 I 89 ,lflt, U0,,66 no,ooo 32,,000 2"·'00 '90,j00
1998 ,,030,000 1,278,9j8 6,308,9'1 175,076 l61f,924 3110,000 32,,000 2112,263 "1 ,263
1999 4,930,000 880,930 ,,810,930 161,49) 171,,07 3110,000 325,000 218,700 ,U,700
2000 2,1f81,307 2,,.2,780 ,,0211,087 1118,679 191,321 340,000 32.5,000 1911,813 519,813
2001 2,2.54,442 2,131,299 4,3.,,741 32j,000 170,600 119.5,600
2002 1,958,639 1,322,766 3,281,110.5 32S,OOO U6,063 1171,063
2003 1,794,682 7111 ',8 2,,36,21f0 32.5,000 121,281 4116,281
200'1 610,000 181,725 811 ,72' 350,000 95,375 4115,375
2005 630,000 13.5,375 765,375 no,ooo 68,331 '118,338
2006 610,000 91,12' 721' 125 350,000 41,125 391,12,
2007 610,000 t6,875 676,875 JSO,OOO 13,738 J6J,7J8
2008 3301000 121375 142 1375
$82,889,070 $U,680, 766 $128,.569,8]6 $2,789,682 $1,297,175 $1f,086,8.57 $.5,000,000 $'1,27'1,825 $9,274,82.5
(I) Interest cuh:ulah!ll at estimated rates for purposes of illu~tration.
Grand Total
Rec~lirements
Sl3,29,,J6;
13,2,9,491
I2,H2,2ll
I 1,867,681
11,060,967 ro,on ,on
9,n2,289
8,430,181
8,097,295
7,621,U2
7,216,221
6,694,610
.5,883,900
4,881,341
J,7j2,1J68
2,982,.521
1,257,100
1,183,713
1,112,2.50
1,0'10,613
342~E~
$141,931,.518
I!
92.9
99.6
100.0
Attorney General of Texas
P.O. Box 12548
Capitol Station
Austin, Texas 78711
August 26, 1988
Attention: Public Finance Division
RE: $5,000,000 "City of Lubbock, Texas, Combination Tax and
Sewer System Subordinate Lien Revenue Certificates of
Obligation, Series 1988"
Ladies and Gentlemen:
Enclosed herewith is the filing fee, the Initial
Certificate of the above series and a Signature and
No-Litigation certificate relating thereto, executed and
completed except as to date.
When the record of proceedings relating to the issuance
of the above referenced series and the Initial Certificate has
been approved by your office, this will be your authority to
date the Signature and No-Litigation Certificate and deliver
such Initial Certificate to the Comptroller of Public Accounts
for registration.
Should any litigation develop affecting the issuance of
the certificates or the security for the payment thereof, the
undersigned or other official of the City will notify you at
once by telephone or other means. You may thus be assured that
the statements appearing in paragraphs 5 and 6 of the Signature
and No-Litigation Certificate are accurate and complete at the
time the certificates are finally approved unless notice to the
contrary has been given in the manner aforementioned.
Very truly yours,
'MaYor, City of Lubbock, Texas
33106-1
August 26, 1988
Ms. Arlene Chisholm
Economic Analysis Center
Comptroller's Department
P. O. Box 13528, Capitol Station
Austin, Texas 78711
RE: $5,000,000 "City of Lubbock, Texas, Combination Tax and
Sewer System Subordinate Lien Revenue Certificates of
Obligation, Series 1988"
Dear Ms. Chisholm:
When the Initial Certificate of the series described
above has been received from the Attorney General, please
register the same on behalf of the City, and when so
registered, forward it by overnight delivery to the firm of
Fulbright & Jaworski, 2200 Ross Avenue, Suite 2800, Dallas,
Texas 75201, Attention: Shelby A. Beer, 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
Certificates when it is sent to said firm.
Very truly yours,
MaYQr, City of Lubbock, Texas
33108-2
Messrs. Fulbright & Jaworski
2200 Ross Avenue, Suite 2800
Dallas, Texas 75201
Gentlemen:
August 26, 1988
RE: $5,000,000 "City of Lubbock, Texas, Combination Tax and
Sewer System Subordinate Lien Revenue Certificates of
Obligation, Series 1988"
Enclosed you will find four Certificates as to Tax
Exemption executed but undated.
At such time as the above described certificates are
delivered to the purchaser, you are authorized to complete and
date each of these certificates.
Very truly yours,
33108-3