HomeMy WebLinkAboutOrdinance - 8440-1983 - Auth. Issuance Of $10,770,000 "City Of Lubbock, Texas, Electric Light And Power - 06/15/1983·-
ORD. NO.-8t..4b
(See Ord. No. 8232)
AN ORDINANCE by the Ci'ty Council of the City of
Lubbock, Texas, authorizing the issuance of
$10,770,000 "CITY OF LUBBOCK, TEXAS, ELECTRIC
LIGHT AND POWER SYSTEM REFUNDING REVENUE
BONDS, SERIES 198311 ; prescribing the form of
the bonds and the form of the interest
coupons; pledging the net revenues of the
City's Electric Light and Power System to the
payment of the principal of and interest on
said bonds; enacting provisions incident and
related to the issuance, payment, security
and delivery of said bonds 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, the City of Lubbock, Texas (the "City"} has
duly issued and delivered, and there are currently out-
standing, the following series or issue of revenue bonds
payable from and secured by a first lien on and pledge of
the net revenues of City's Electric Light and Power System,
to wit:
"City of Lubbock, Texas, Electric Light and Power
System Revenue Bonds, Series 1981" dated
August 15, 1981, and now outstanding in the
aggregate principal amount of $8,550,000.
AND WHEREAS, a proposal has been submitted to the City
to refund the above described series of bonds, which
refunding will result in a total interest cost savings to
the City on such indebtedness of appr~ximately
$876,249; and
WHEREAS, the City Council hereby finds and determines
that refunding bonds should be issued and sold for the
reasons stated above in an amount sufficient to refund all
the outstanding revenue bonds of the series described above
and to pay the costs of issuance incurred in connection
therewith; such refunding bonds to be issued under and
pursuant to the general laws of the State of Texas,
including Article 717k, V.A.T.C.S.; and
WHEREAS, the City Council has further determined and
hereby finds that said refunding bonds can and should be
issued on a parity with other outstanding revenue bonds of
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the · City (hereinafter called and defined as "Previously
Issued Bonds 11 ) payable from · and secured by a first lien on
and pledge of the net revenues -of the City's Electric Light
and Power System (hereinafter called the "System") and that
the terms and conditions for the issuance of II additional
bonds" on a parity with the Previously Issued Bonds can be
met and satisfied, to wit: (i) the Mayor and City Treasurer
can certify that the City is not now in default as to any
covenant, condition or obligation prescribed by the
ordinances authorizing the issuance of the outstanding
Previously Issued Bonds, including showings that all
interest, sinking and reserve funds have been fully
maintained in accordance with the provisions of said
ordinances; (ii) applicable laws of the State of Texas now
in force permit and authorize the issuance of the refunding
bonds and will be fully complied with, (iii) the City can
secure from an independent Certified Public Accountant a
written report demonstrating that the net revenues of the
System were, durin9 the last completed fiscal year, equal to
at least 1-1/2 times the average annual ~rincipal and
interest requirements of all the bonds which will be secured
by a first lien on and pledge of the net revenues of the
System and which will be outstanding upon the issuance of
the refunding bonds herein authorized; and further
demonstrating that the net revenues of the System during the
last completed fiscal year were equal to at least 1-1/5
times the maximum annual principal and interest requirements
of all such bonds as will be outstanding upon the issuance
of the refunding bonds herein authorized, (iv) the refunding
bonds herein authorized will mature on April 15 in each year
and (v) the "Reserve Portion" of the Bond Fund will be
accumulated and supplemented as necessary to maintain
therein a sum equal to at least the average annual principal
and interest requirements of all bonds secured by a first
lien on and pledge of the net revenues of the System which will be outstanding upon the issuance of the refunding bonds
herein authorized and any additional amount required to be
maintained therein will be accumulated in equal monthly
installments over a period of not to exceed sixty (60)
calendar months from the date of the refunding bonds herein
authorized; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1: Authorization -Principal Amount -Series
Desiraation. For the purpose of refunding all the
outs anding "CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND
POWER SYSTEM REVENUE BONDS, SERIES 1981," and paying costs
of issuance incurred in connection therewith, there shall be
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and there is hereby authorized to be issued a series of
bonds, each payable to bearer, in the principal amount of
TEN MILLION SEVEN HUNDRED ··· SEVENTY THOUSAND DOLLARS
{$10,770,000), to be designated "CITY OF LUBBOCK, TEXAS,
ELECTRIC LIGHT AND POWER SYSTEM REFUNDING REVENUE BONDS,
SERIES 1983" (the "Bonds"), pursuant to authority conferred
by and in conformity with the laws of the State of Texas,
particularly Article 717k, as amended, V.A.T.c.s.
SECTION 2: Date -Denomination -Numbers -Maturities
-Interest Rates. The Bonds shall be dated May 15, 1983;
shall each be in the denomination of Five Thousand Dollars
( $5, 000); shall consist of 2, 154 bonds numbered consecu-
tively from One (1) upward and shall mature .on April 15 in
each of the years and bear interest at per annum rates in
accordance with the following schedule:
Aggregate
Bond Numbers Maturity'\ Principal c,, Interest
(All Inclusive) Date Amount Rate
1 to 168 1984 $ 840,000 5.50%
169 to 306 1985 690,000 5.75%
307 to 439 1986 665,000 6.25%
440 to 568 1987 645,000 6.50%
569 to 693 1988 625,000 6.75%
694 to 814 1989 605,000 7.00%
815 to 931 1990 585,000 7.40%
932 to 1045 1991 570,000 7.70%
1046 to 1158 1992 565,000 8.00%
1159 to 1269 1993 555,000 8.15%
1270 to 1378 1994 545,000 8.30%
1379 to 1485 1995 535,000 8.40%
1486 to 1590 1996 525,000 8.50%
1591 to 1692 1997 510,000 8.65%
1693 to 1791 1998 495,000 8.75%
1792 to 1887 1999 480,000 8.90%
1888 to 1980 2000 465,000 9.00%
1981 to 2069 2001 445,000 9.00%
2070 to 2154 2002 425,000 9.00%
SECTION 3: Interest. The Bonds shall bear interest
from date until paid, or the redemption thereof in accor-
dance with the terms prescribed therefor, at the per annum
rates shown above, such interest to be evidenced by interest
coupons attached to each of said bonds and said interest
shall be payable on October 15~ 1983, and semiannually
thereafter on April 15 and October 15 in each year.
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SECTION 4: Payment of Bonds-Paying Agent. Both
principal of and interest · on the Bonds shall be payable in
lawful money of the United -states of America, without
exchange or collection charges to the owner or holder
thereof, upon presentation and surrender of such bonds or
proper coupons, at the CITIBANK, NATIONAL ASSOCIATION, New
York, New York, or, at the option of the holder, the TEXAS
COMMERCE BANK, NATIONAL ASSQCIATION, Lubbock, Texas (the
"Paying Agents").
If the date for making any principal or interest
payment on the Bonds is a Saturday;-sunday, or legal holiday
or a day on which banking institutions in the city where the
principal corporate office of a Paying Agen~ is located are
authorized or required by law or executive order to close,
such payment may be made on the next succeeding day which is
not a Saturday, Sunday, or legal holiday or day on which
such banking institutions are authorized or required by law
to close with the same force and effect as if made on the
specified date of payment.
SECTION 5: Optional Redemption. The City reserves
the right to redeem the Bonds maturing on and after
April 15, 1994, in whole or any part thereof, on April 15,
1993, or on any interest payment date thereafter, at the
redemption price of par plus accrued interest to the date of
redemption and without premium.
-SECTION 6: Notice of Redemption. At least
thirty (30) days prior to a date any of the Bonds are to be
redeemed pursuant to the provisions of Section 5 hereof, the
City shall cause a written notice of redemption (specifying
the serial numbers and amount of bonds to be redeemed) to be
filed with the Paying Agents and to be published at least
once in a financial publication of general circulation in
The City of New York, New York. If such written notice of
redemption is filed with the Paying Ag~nts and published as
provided above, and if due provision for payment of the
redemption price is made with the Paying Agents by the
redemption date, the Bonds so redeemed shall cease to bear
interest after the date fixed for redemption and shall not
be regarded as being outstanding except for the right of the
holder to receive the redemption price from the Paying
Agents out of the funds provided for such payment.
SECTION 7: Execution of Bonds. The seal of said
City shall be impressed on each of said Bonds or, in the
alternative, a facsimile of such seal shall be printed on
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the said Bonds. The Bonds and interest coupons appurtenant
thereto may be executed · by the imprinted facsimile
signatures of the Mayor and City Secretary and execution in
such·manner shall have the same effect as if such Bonds and
coupons had been signed by the Mayor and City secretary in
person by their manual signatures. Inasmuch as such Bonds
are required to be registered by the Comptroller of Public
Accounts of the State of Texas, only his signature (or that
of a deputy designated in writing to act for the
Comptroller) shall be required to be manually subscribed to
such Bonds in connection with his registration certificate
to appear thereon, as hereinafter provided; all in
accordance with the provisions of Article 717j-l, V.A.T.c.s.
SECTION 8: Forms. The form of the· B·onds, including
the form of interest coupons to be attached thereto and the
form of registration certificate of the Comptroller of
Public Accounts of the State of Texas shall be substantially
as follows, to wit:
NO. ____ _
(Form of Bond)
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK, TEXAS
$5,000
ELECTRIC LIGHT AND POWER SYSTEM REFUNDING REVENUE BOND
SERIES 1983
The City of Lubbock, a municipal corporation in the
County of Lubbock, State of Texas, FOR VALUE RECEIVED,
hereby promises to pay to the bearer hereof, solely from the
revenues hereinafter identified and as hereinafter stated,
on the FIFTEENTH DAY OF APRIL, ----, the principal sum
of
FIVE THOUSAND DOLLARS
($5,000), in lawful money of the United States of America,
and to pay interest thereon from the date hereof until paid,
or the redemption hereof in accordance with the terms
prescribed therefor, at the rate of ______ percentum
( %) per annum, such interest being payable on
October 15, 1983, and semiannually thereafter on April 15
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and October 15 in each year and evidenced by interest
coupons attached hereto.
BOTH PRlNCIPAL AND INTEREST are payable only upon
presentation and surrender of this bond and the interest
coupons hereto attached as the same severally become due at
the CITIBANK, NATIONAL ASSOCIATION, New York, New York, or,
at the option of the holder, the TEXAS COMMERCE BANK,
NATIONAL ASSOCIATION, Lubbock, Texas (the "Paying Agents"),
without exchange or collection charges to the owner or
holder, and the bearer of this bond and its appurtenant
interest coupons shall be deemed the owner thereof for
purposes of receiving payment and all other purposes, and
neither the City nor the Paying Agents shall. be affected by
any notice to the contrary. If the date for the payment of
the principal of or interest on this Bond shall be a
Saturday, Sunday, a legal holiday, or a day on which banking
institutions in the city where the . principal corporate
office of a Paying Agent is authorized by law or executive
order to close, then the date for such payment shall be the
next succeeding day which is not a Saturday, Sunday, legal
holiday, or day on which banking institutions are authorized
to close; and payment on such date shall have the same force
and effect as if made on the specified date of payment.
THIS BOND is one of a series of bonds (the "Bonds"),
dated May 15, 1983, numbered consecutively from One (1)
upward, each in the denomination of $5,000, aggregating in
principal amount $10,770,000, issued for the purpose of
refunding all presently outstanding "City of Lubbock, Texas,
Electric Light and Power System Revenue Bonds, Series 1981"
and paying costs of issuance incurred in connection
therewith, pursuant to and in conformity with the laws of
the State of Texas, particularly Article 717k, V.A.T.C.S.,
as amended, the Charter of the City and an ordinance (the
"Ordinance") duly passed by the City Council of the City and
duly recorded in the Minutes of said Council.
THE BONDS maturing on and after April 15, 1994, may be
redeemed prior to maturity at the option of the City, in
whole or any part thereof, on April 15, 1993, or on any
interest payment date thereafter at the redemption price of
par and accrued interest to the date of redemption and
without premium, provided, however, at least thirty ( 3 O )
days prior to the date fixed for a redemption the City shall
cause a written notice of such redemption ( specifying the
serial numbers and amount of Bonds to be redeemed) to be
filed with the Paying Agents and to be published at least
once in a financial publication of general circulation in
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The City of New York, New York. If such written notice of
redemption is filed with the·Paying Agents and published all
as provided above, and if due provision for payment of the
redemption price is made with the Paying Agents by the
redemption date, the Bonds so redeemed shall cease to bear
interest after the date fixed for redemption and shall not
be regarded as being outstanding except for the right of the
bearer to receive the redemption price from the Paying
Agents out of the funds provided for such payment.
THE BONDS constitute special obligations of the City
and, together with the outstanding. Previously Issued Bonds
(identified and defined in the Ordinance), are payable
solely from and equally secured by a first lien on and
pledge of the "Net Revenues" (as such term is defined in the
Ordinance) of the City's Electric Light and Power System.
For a more complete description and identification of the
revenues pledged to the payment of the Bonds, reference is
hereby made to the Ordinance.
THE CITY has reserved the right, subject to the re-
strictions stated in the Ordinance, to issue and incur
additional revenue obligations payable from and equally
secured by a first lien on and pledge of the Net Revenues of
the Electric Light and Power System, in the same manner and
to the same extent as the Bonds and the Previously Issued
Bonds.
THE HOLDER HEREOF shall never have the right to demand
payment of this obligation out of any funds raised or to be
raised by taxation.
IT IS HEREBY CERTIFIED AND RECITED that the issuance of
the Bonds is duly authorized by law; that all acts, condi-
tions and things required to exist and to be done precedent
to and in the issuance of the Bonds to render the same
lawful and valid 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 hereinabove mentioned; that the
Bonds do not exceed any constitutional or statutory
limitation; and that provision has been made for the payment
of the principal of and interest on the Bonds by irrevocably
pledging the Net Revenues of the Electric Light and Power
System of the City of Lubbock, Texas, as hereinabove
recited.
IN TESTIMONY WHEREOF, the City Council of the City of
Lubbock, Texas, in accordance with the provisions of Article
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717j-1, V.A.T.C.S., has caused the seal of said City to be
impressed or a facsimile thereof to be printed hereon, and
this bond and its appurtenant -coupons to be executed with
the imprinted facsimile signatures of the Mayor and City
Secretary of said City.
Mayor, City of Lubbock, Texas
COUNTERSIGNED:
City secretary, City of
Lubbock, Texas
(Form of Interest Coupon)
NO. ON THE 15TH DAY OF ------________ , _____ ,
$ ______ _
unless the bond to which this coupon pertains has been
redeemed in accordance with its terms, the CITY OF LUBBOCK,
a municipal corporation in the County of Lubbock, State of
Texas, hereby promises to pay to the bearer he.reof the
amount shown hereon, out of funds specified in the bond to
which this coupon is attached (without right tq · demand
payment out of any funds raise~ or to be raised by
taxation), in lawful money of the· United States of America,
upon presentation and surrender of this coupon, at the
CITIBANK, NATIONAL ASSOCIATION, New York, New York, or, at
the option of the holder, the TEXAS COMMERCE BANK, NATIONAL
ASSOCIATION, Lubbock, Texas, without exchange or collection
charges, said amount being interest due on such date on
"CITY OF LUBBOCK, TEXAS ELECTRIC LIGHT AND POWER SYSTEM
REFUNDING REVENUE BOND, SERIES 1983,11 dated May 15, 1983.
Bond No.
City Secretary Mayor
(Form of Registration Certificate)
COMPTROLLER'S REGISTRATION CERTIFICATE REGISTER NO.
I hereby certify that this Bond has been examined,
certified as to validity and approved by the Attorney
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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 this
Comptroller of Public
Accounts of the
State of Texas
SECTION 9: Definitions. For all purposes of this
ordinance and in particular for clarity with respect to the
issuance of the Bonds herein authorized and the pledge and
appropriation of revenues for the payment of the Bonds, the
following definitions are provided:
(a)
additional
to issue
prescribed
The term "Additional Bonds" shall mean the
parity revenue bonds the City reserves the right
in accordance with the terms and conditions
in Section 20 hereof.
(b) The term "Bonds" shall mean the refunding revenue
bonds authorized by this ordinance.
(c) The term "Bonds Similarly Secured" shall mean the
Previously Issued Bonds, -the Bonds and Additional Bonds.
(d) The term "Fiscal Year" Shall mean the twelve-month
accounting period used by the City in connection with the
operations of the System which may be any twelve consecutive
month period established by the City.
( e) The term "Net Revenues II shall mean the gross
revenues of the System less expenses of operation and
maintenance. Such expenses of operation and maintenance
shall not include depreciation charges or funds pledged for
the Bonds Similarly Secured, but shall include all salaries,
labor, materials, repairs, and extensions necessary to
render services; provided, however, that in determining "Net
Revenues", only such repairs and extensions as in the
judgment of the City Council, reasonably and fairly
exercised are necessary to keep the System in operation and
render adequate service to the City and inhabitants thereof,
or such as might be necessary to meet some physical accident
or condition which c;>therwise would impair the security of
the Bonds Similarly Secured, shall be deducted.
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(f) The term "Previously Issued Bonds" shall mean the
outstanding and unpaid revenue bonds, designated "CITY OF
LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REVENUE
BONDS" and payable from and secured by a first lien on and
pledge of the Net Revenues of the System, further identified
by issue or series as follows:
(1)
(2)
Series 1964, dated March 15, 1964, in the
original principal amount of $4,500,000;
Series l 965, dated March 15, 1965, in the
original principal amount of $3,000,000;
( 3) Series 1973, dated July 15, 1973, in the
original principal amount of $6,000,000;
(4) Series 1975, dated March 15, 1975, in the
original principal amount of $6,400,000;
(5) Series 1975-A, dated September 15, 1975, in
the original principal amount of $2,000,000;
and
(6) Series 1976, dated April 15, 1976, in the
original principal amount of $4,400,000;
(g) The term "Refunded Bonds" shall mean the "City of
Lubbock, Texas, Electric Light a~d Power System Revenue
Bonds, Series 1981", dated August 15, 1981, and now
outstanding in the aggregate principal amount of $8,550,000.
(h) The term "System" shall mean all properties, real,
personal, mixed or otherwise, now owned or hereafter
acquired by the City of Lubbock through purchase,
construction or otherwise, and used in connection with the
City's Electric Light and Power System and in anywise
appertaining thereto, whether situated within or without the
limits of the City.
SECTION 10: Pledge. That the City hereby covenants
and agrees that all of the Net Revenues derived from the
operation of the system, with the exception of those in
excess of the amounts required to establish and maintain the
special Funds created for the payment and security of the
Bonds Similarly Secured, are hereby irrevocably pledged for
the payment of the Previously Issued Bonds, the Bonds and
Additional Bonds, if issued, and the interest thereon, and
it is hereby ordained that the Previously Issued Bonds, the
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Bonds and the Additional Bonds, if issued, and the interest
thereon, shall constitute a· first lien on the Net Revenues
of the System.
SECTION 11: Rates and Charges. That the City hereby
covenants and agrees with the holders of the Bonds that
rates and charges for electric power and energy afforded by
the system will be established and maintained to provide
revenues sufficient at all times to pay:
(a) all necessary and reasonable expenses of
operating and maintaining the .System as set forth
herein in the definition "Net Revenues" and to
recover depreciation;
(b) the amounts required to be deposited to
the Bond Fund to pay the principal of and interest
on the Bonds Similarly Secured as the same becomes
due and payable and to accumulate and maintain the
reserve amount required to be deposited therein;
and
(c) any other legally incurred indebtedness
payable from the revenues of the System and/or
secured by a lien on the System or the revenues
thereof.
SECTION 12: Segregation of Revenues/Fund Designations.
All receipts, revenues and income_·derived from the operation
and ownership of the System shall be kept .$eparate from
other funds of the City and deposited within twenty-four
(24) hours after collection in the "Electric Light and Power
system Fund" (created and established in connection with the
issuance of the Previously Issued Bonds), which Fund
(hereinafter referred to as the "System Fund") is hereby
reaffirmed and shall continue to be kept and maintained at
an official depository bank of the City while the Bonds
remain outstanding. Furthermore, the "Special Electric
Light and Power system Revenue Bond Retirement and Reserve
Fund" (hereinafter referred to as the "Bond Fund"), created
and established in connection with the issuance of the
Previously Issued Bonds, is hereby reaffirmed and shall
continue to be maintained by the City while the Bonds remain
outstanding. The Bond Fund is and shall continue to be kept
and maintained at the City's official depository bank, and
moneys deposited in the Bond Fund shall be used for no
purpose other than for the payment, redemption and
retirement of Bonds Similarly Secured.
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SECTION 13: System Fund. The City hereby reaffirms
its covenant to the holders of the Previously Issued Bonds
and agrees with the holders of the Bonds that the moneys
deposited in the System Fund shall be used first for the
payment of the reasonable and proper expenses of operating
and maintaining the System, as identified in Section 9(e)
hereof. All moneys deposited in the System Fund in excess
of the amounts required to pay operating and maintenance
expenses of the System, as hereinabove provided, shall be
applied and appropriated, to the extent required and in the
order of priority prescribed, as follows:
( i) To the payment of the amounts required
to be deposited in the Bond Fund for ·the payment
of principal of and interest on the Bonds
Similarly Secured as the same become due and
payable; and
(ii) To the payment of the amounts, if any,
required to be deposited in the Bond Fund to
accumulate and maintain the reserve amount as
security for the payment of the principal of and
interest on the Bonds Similarly Secured.
SECTION 14: Bond Fund. (a) That, in addition to the
required monthly deposits to the Bond Fund for the payment
of principal of and interest on the Previously Issued Bonds,
the city hereby agrees and covenan~s to deposit to the Bond
Fund an amount equal to one hundred percentum (100%) of the
amount required to fully pay the interest on and principal
of the Bonds falling due on or before each maturity and
interest payment date, such payments to be made in
substantially equal monthly installments on or before the
1st day of each month beginning on or before the 1st day of
the month next following the month the Bonds are delivered
to the initial purchaser.
The required monthly deposits to the Bond Fund for the
payment of principal of and interest on the Bonds shall
continue to be made as hereinabove provided until such time
as (i) the total amount on deposit in the Bond Fund,
including the "Reserve Portion" deposited therein, is equal
to the amount required to fully pay and discharge all
outstanding Bonds Similarly Secured (principal and interest)
or (ii) the Bonds are no longer outstanding, i.e. , fully
paid as to principal and interest or all the Bonds have been
refunded.
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Accrued interest and premium, if any, received from the
purchasers of the Bonds shall be deposited in the Bond Fund,
and shall be taken into consideration and reduce the amount
of the monthly deposits hereinabove required which would
otherwise be required to be deposited in the Bond Fund from
the Net Revenues of the System.
(b) In addition to the amounts to be deposited in the
Bond Fund to pay current principal and interest for the
Bonds Similarly Secured, the City reaffirms its covenant to
the holders of the Previously Issued Bonds and agrees to
accumulate and maintain in said Fund a reserve amount (the
"Reserve Portion") equal to not less than the average annual
principal and interest requirements of all outstanding Bonds
Similarly secured (calculated and redetermined at the time
of issuance of each series of Bonds Similarly Secured).
In accordance with the ordinances authorizing the
issuance of the Previously Issued Bonds, there is currently
on deposit. to the credit of the Reserve Portion of the Bond
Fund the sum of $ h7$'3,7o,,tJO . By reason of the issuance
the Bonds, the Reserve Portion to be maintained in said Fund
shall be $2,007,000, which amount totals not less than the
average annual principal and interest requirements of the
outstanding Bonds Similarly Secured after giving effect to
the issuance of the Bonds. The City agrees and covenants
that, in addition to the monthly deposits required in
paragraph (a) of this Section, _there shall cxmtinue to be
deposited in the Bond Fund on or-before the 1st day of each
month the sum of $6,367.00 until the Bond Fund contains such
Reserve Portion in cash and book value of investment
securities. In the event the City elects to increase the
monthly deposits to the Bond Fund applicable to the
accumulation of the Reserve Portion, the amount in excess of
the required monthly deposit shall serve as a credit to the
amount required to be deposited in the next month or months.
The Reserve Portion of the Bond Fund shall be made
available for and reasonably employed in meeting the
requirements of the Bond Fund if need be, and if any amount
thereof is so employed, the Reserve Portion in the Bond Fund
shall be fully restored as rapidly as possible from the
first available Net Revenues of the System in the System
Fund subject only to the priority of payments hereinabove
prescribed in Section 13.
SECTION 15: Payment of Bonds. While any of the Bonds
are outstanding, the proper officers of the City are hereby
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authorized to transfer or cause to be transferred to the
Paying Agents therefor, from funds on deposit in the Bond
Fund, including the Reserve Portion, if necessary, amounts
, sufficient to fully pay and discharge promptly as each
installment of interest and principal of the Bonds accrues
or matures or comes due by reason of redemption prior to
maturity; such transfer of funds to be made in such manner
as will cause immediately available funds to be deposited
with the Paying Agents for the Bonds at the close of the
business day next preceding the date of payment for the
Bonds. The Paying Agents shall cancel and destroy all paid
Bonds, and the coupons, if any, appertaining thereto, and
furnish the City with an appropriate certificate of
cancellation or destruction.
SECTION 16: Deficiencies in Funds. That, if in any
month the City shall, for any reason, fail to pay into the
Bond Fund the full amounts above stipulated, amounts
equivalent to such deficiencies shall be set apart and paid
into said Fund from the first available and unallocated Net
Revenues of the System in the following month or months and
such payments shall be in addition to the amounts
hereinabove provided to .be otherwise paid into said Fund
during such month or months.
SECTION 17: Excess Revenues. Any surplus Net Revenues
of the System remaining .after all payments have been made
into the Bond Fund and after al+ deficiencies in making
deposits to said Fund have been _·remedied, may be used for
any other City purposes now or hereafter permitted by law,
including the use thereof for the retirement in advance of
maturity of the Bonds Similarly Secured by the purchase of
any of such Bonds Similarly Secured on the open market at
not exceeding the market value thereof. Nothing herein,
however, shall be construed as impairing the right of the ·
City to pay, in accordance with the provisions thereof, any
junior 1ien bonds legally issued and payable out of the Net
Revenues of the System.
SECTION 18: Security of Funds. That moneys on deposit
in the System Fund ( except any amounts as may be properly
invested) shall be secured in the manner and to the fullest
extent required by the laws of the State of Texas for the
security of public funds. Moneys on deposit in the Bond Fund
shall be continuously secured by a valid pledge of direct
obligations .of, or obligations unconditionally guaranteed by
the United States of America, having a par value, or market
value when less than par, exclusive of accrued interest, at
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'
all times at least equal to the amount of money to be
deposited in said Fund. All sums deposited in said Bond
Fund shall be held as a trust· fund for the benefit of the
holders of the Bonds Similarly Secured, the beneficial
interest in which shall be regarded as existing in such
holders. To the extent that money in the Reserve Portion of
the Bond Fund is invested under the provisions of Section 19
hereof, such security is not required.
SECTION 19: Investment of Reserve Portion of Bond
Fund. The custodian bank shall, when authorized by the City
Council, invest the Reserve Portion of the Bond Fund in
direct obligations of, or obligations guaranteed by the
United States of America, or invested in direct obligations
of the Federal Intermediate Credit Banks, Federal Land
Banks, Federal National Mortgage Association, Federal Home
Loan Banks or Banks for Cooperatives, and which such
investment obligations must mature or be subject to
redemption at the option of the holder, within not to exceed
ten years from the date of making the investment. Such
obligations shall be held by the depository impressed with
the same trust for the benefit of the bondholders as the
Bond Fund itself, and if at any time uninvested funds shall
be insufficient to permit payment of principal and interest
maturities for. the Bonds similarly Secured, the said
custodian bank shall sell on the open market such amount of
the securities as is required to pay said Bonds Similarly
Secured.and interest when due and shall give notice thereof
to the City. All moneys resulting from maturity of
principal and interest of the securities shall be reinvested
or accumulated in the Reserve Portion of the Bond Fund and
considered a part thereof and used for and only for the
purposes hereinabove provided with respect to said Reserve
Portion, provided that when the full amount required to be
accumulated in the Reserve Portion of the Bond Fund (being
the amounts required to be accumulated by the ordinances
authorizing the Bonds Similarly Secured), any interest
increment may be used in the Bond Fund to reduce the
payments that would otherwise be required to pay the current
debt service requirements on Bonds Similarly Secured.
SECTION 20: Issuance of Additional Parity Bonds.
That, in addition to the right to issue bonds of inferior
lien as authorized by the laws of the State of Texas, the
City hereby reserves the right to issue Additional Bonds
which, when duly authorized and issued in compliance with
the terms and conditions hereinafter appearing, shall be on
a parity with the Previously Issued Bonds and the Bonds
herein authorized, payable . from and equally and ratably
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secured by a first lien on and pledge of the Net Revenues of
the System. The Additionar Bonds may be issued in one or
more installments, provided, however, that none shall be
issued unless and until the following conditions have been
met:
(a) That the Mayor and City Treasurer have certified
that the City is not then in default as to any covenant,
condition or obligation prescribed by any ordinance
authorizing the issuance of Bonds Similarly Secured then
outstanding, including showings that all interest, sinking
and reserve funds then provided for have been fully
maintained in accordance with the provisions of said
ordinances;
(b) That the applicable laws of the State of Texas in
force at the time provide permission and authority for the
issuance of such bonds and have been fully complied with;
(c) That the City has secured from an independent
Certified Public Accountant his written report demonstrating
that the Net Revenues of the System were, during the last
completed Fiscal Year, or during any consecutive twelve (12)
months period of the last fifteen (15) consecutive months
prior to the month of adoption of the ordinance authorizing
the Additional Bonds, equal to at least one and one-half
( 1-1/2) times the average annual principal and interest
requirements of all the bonds which will be secured by a
first lien on and pledge of the Net Revenues of the System
and which will be outstanding upon the issuance of the
Additional Bonds; and further demonstrating that for the
same period as is employed in arriving at the aforementioned
test said Net Revenues were equal to at least one and
one-fifth ( 1-1/5) times the maximum annual principal and
interest requirements of all such bonds as will be
outstanding upon the issuance of the Additional Bonds;
(d) That the Additional Bonds are made to mature on
April 15 or October 15, or both, in each of the years in
which they are provided to mature;
( e) The Reserve Portion of the Bond Fund shall. be
accumul.ated and supplemented as necessary to maintain a sum
which shall be not less than the average annual principal
and interest requirements of al.l bonds secured by a first
lien on and pledge of the Net Revenues of the System which
will be outstanding upon the issuance of any series of
Additional Bonds . Accordingly, each ordiI).ance authorizing
the issuance of any series of Additional. Bonds shall provide
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for any required increase in the Reserve Portion, and if
supplementation is necessary to meet all conditions of said
Reserve Portion, said ordinances shall make provision that
same be supplemented by the required amounts in equal
monthly installments over a period of not to exceed sixty
( 60) calendar months from the dating of such Additional
Bonds.
When thus issued, such Additional Bonds may be secured
by a pledge of the Net Revenues of the System on a parity in
all things with the pledge securing the issuance of the
Bonds and the Previously Issued Bonds.
SECTION 21: Maintenance and Operation -Insurance.
That the City hereby covenants and agrees to maintain the
system in good condition and operate the same in an
efficient manner and at reasonable cost. The City further
agrees to maintain insurance for the benefit of the holder
or holders of the ·Bonds of the kinds and in the amounts
which are usually carried by private companies operating
similar properties, and that during such time all policies
of insurance shall be maintained in force and kept current
as to premium payments. All moneys received from losses
under such insurance policies other than public liability
policies are hereby pledged as security for the Bonds
Similarly Secured until and unless the proceeds thereof are
paid out in making good --· the loss or damage in respect of
which such proceeds are received,. either by replacing the
property destroyed or repairing ~·the property damaged, and
adequate provisions are made within ninety (90) days after
-the date of the loss for making good such loss or damage.
The premiums for all insurance policies required under the
provisions of this Section shall be considered as
maintenance and operation expenses of the System.
SECTION 22: Records Accounts -Accounting Reports.
That the City hereby covenants and agrees so lo~g as any of
the Bonds or any interest thereon remain outstanding and
unpaid, it will keep and maintain a proper and complete
system of records and accounts pertaining to the operation
of the System separate and apart from all other records and
accounts of the City in accordance with generally accepted
accounting principles prescribed for municipal corporations,
and complete and correct entries shall be made of all
transactions relating to said System, as provided by
applicable law. The holder or holders of any Bonds, or any
duly authorized agent or agents of such holders, shall have
the right at all reasonable times to inspect all such
records, accounts and data -relating thereto and to inspect
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the System and all properties comprising same. The City
further agrees that as soon·· as possible following the close
of each Fiscal Year, it will cause an audit of such books
and accounts to be made by an independent firm of Certified
Public Accountants. Each such audit, in addition to
whatever other matters may be thought proper by the
Accountant, shall particularly include the following:
(a) A detailed statement of the income and
expenditures of the System for such Fiscal Year;
(b) A balance sheet as of the end of such
Fiscal Year;
(c) The Accountant's comments regarding the
manner in which the City has complied with the
covenants and requirements of this ordinance and
his recommendations for · any changes or improve-
ments in the operation, records and accounts of
the System;
(d) A list of the insurance policies in
force at the end of the Fiscal Year on the System
properties, setting out as to each policy the
amount thereof, the risk covered, the name of the
insurer, and the policy's expiration date;
(e) A list of the securi~ies which have been
on deposit as security .for the money in the Bond
Fund throughout the Fiscal Year and a list of the
securities, if any, in which the Reserve Portion
of the Bond Fund has been invested.
( f) The total number of metered and
unmetered customers, if any, connected with the
System at the end of the Fiscal Year.
Expenses incurred in making the audits above referred
to are to be regarded as maintenance and operating expenses
of the System and paid as such. Copies of the aforesaid
annual audit shall be immediately furnished to the Executive
Director of the Municipal Advisory Council of Texas at his
office in Austin, Texas, and, upon written request, to the
original purchasers and any subsequent holder of the Bonds .
SECTION 23: Remedies in Event of Default. That, in
addition to all the rights and remedies provided by the laws
of the State of Texas, the City covenants and agrees
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particularly that in the event the City (a) defaults · in
payments to be made to the·· Bond Fund as required by this
ordinance or (b) defaults in the observance or performance
of any other of the covenants, conditions or obligations set
forth in this ordinance, the holder or holders of any of the
Bonds shall be entitled to a writ of mandamus issued by a
court of proper jurisdiction compelling and requiring the
City council and other officers of the City to observe and
perform any covenant, condition or obligation prescribed in
this ordinance.
No delay or omission to exercise any right or power
accruing upon any default shall impair any such right or
power, or shall be construed to be a waiver of any such
default . or acquiescence therein, and every such right or
power may be exercised from time to time and as often as may
be deemed expedient. The specific remedies herein provided
shall be cumulative of all other existing remedies and the
specifications of such remedies shall not be deemed to be
exclusive:
SECTION 24: Special Covenants. The City hereby
further covenants as follows:
(a) That it has the lawful power to pledge
the revenues supporting this issue of Bonds and
has lawfully exercised said power under the
Constitution and laws of the State of Texas,
including Article 1111 et seq., V.A.T.c.s.; that
the Previously Issued Bonds, the Bonds and the
Additional Bonds, when issued, shall be ratably
secured under said pledge of income in such manner
that one bond shall have no preference over any
other bond of said issues .
(b) That, other than for the payment of the
Previously Issued Bonds, the Bonds and the
Refunded Bonds (until the lien and pledge securing
the payment thereof has been def eased) , the Net
Revenues of the System have not been pledged to
the payment of any debt or _obligation of the City
or of the System.
(c) That, so long as any of the Bonds or any
interest thereon remain outstanding, the City will
not sell, lease or encumber the System or any
substantial part thereof; provided, however, this
covenant shall not be construed to prohibit the
sale of such machinery, or other properties or
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•
equipment which has become obsolete or otherwise
unsuited to the efficient operation of the System
when other property of equal value has been sub-
stituted therefor, and, also, with the exception
of the Additional Bonds expressly permitted by
this ordinance to be issued, it will not encumber
the Net Revenues of the System unless such
encumbrance is made junior and subordinate to all
of the provisions of this ordinance.
(d) The City will cause to be rendered
monthly to each customer receiving electric
services a statement therefor and will not accept
payment of less than all of any statement so
rendered, using its power under existing
ordinances and under all such ordinances to become
effective in the future to enforce payment, to
withhold service from such delinquent customers
and to enforce and authorize reconnection charges.
(e) That the City will faithfully and
punctually perform all duties with respect to the
System required by the Constitution and laws of
the State of Texas, including the making and
collecting of reasonable and sufficient rates for
services supplied by the System, and the
segregation and application of the revenues of the
System as required by the _provisions of this
ordinance.
(f) No
System and
departments
provided by
therefor at
service.
free service shall be provided by the
to the extent the City or its
or agencies utilize the services
the System, payment shall be made
rates charged to others for similar
SECTION 25: Special Obligations. The Bonds are
special obligations of the City payable from the pledged Net
Revenues of the System and the holders hereof shall never
have the right to demand payment thereof out of funds raised
or to be raised by taxation.
SECTION 26: Bonds are Negotiable Instruments. Each
of the Bonds herein authorized shall be deemed and construed
to be a "Security", and as such a negotiable instrument,
within the meaning of Article 8 of the Uniform commercial
Code.
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SECTION 27: Ordinance to Constitute Contract. The
provisions of this Ordinance shall constitute a contract
between the City and the holder-or holders from time to time
of the Bonds and, no change, variation or alteration of any
kind of the provisions of this Ordinance may be made, until
such Bonds are no longer outstanding. ·
SECTION 28: No-Arbitrage. The City covenants to and
with the purchasers of the Bonds that it will make no use of
the proceeds of the Bonds, investment income or other funds
at any time throughout the term of this issue of Bonds which
would cause the Bonds to be arbitrage bonds within the
meaning of Section 103 ( c) of the Internal Revenue Code of
1954, as amended, or any regulations or rulings pertaining
thereto.
SECTION 29: Final Deposits; Governmental Obliga-
tions. (a) All or any of the Bonds shall be deemed to be
paid, retired and no longer outstanding within the meaning
of this Ordinance when payment of the principal of, and
redemption premium, if any, on such Bonds, plus interest
thereon to the due date thereof (whether such due date be by
reason of maturity, upon redemption, or otherwise) either
(i) shall have been made or caused to be made in accordance
with the terms thereof (including the giving of any required
notice of redemption), or (ii) spall have been provided by
irrevocably depositing with, or making available to, the
Paying Agents therefor, in trust and irrevocably set aside
exclusively for such payment, ( 1-) money sufficient to make
such payment or (2) Government Obligations, certified by an
independent public accounting firm of national reputation,
to mature as to principal and interest in such amounts and
at such times as will insure the availability, without
reinvestment, of sufficient money to make such payment, and
all necessary and proper fees, compensation and expenses of
the Paying Agents pertaining to the Bonds with respect to
which such deposit is made shall have been paid or the
payment thereof provided to the satisfaction of the Paying
Agents. At such time as a Bond shall be deemed to be paid
hereunder, as aforesaid, it shall no longer be secured by or
entitled to the benefit of this Ordinance or a lien on and
pledge of the Net Revenues of the system, and shall be
entitled to payment solely from such money or Government
Obligations.
The term "Government Obligations" , as used in this
Section, shall mean direct obligations of the United States
of America, including obligations the principal of and
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,. .,_
interest on which are unconditionally guaranteed by the
United States of America,·· which may be United states
Treasury obligations such as its state and Local Government
Series, and which may be in book-entry form.
(b) That any moneys so deposited with the Paying
Agents may at the direction of the City also be invested in
Government Obligations, maturing in the amounts and times as
hereinbefore set forth, and all income from all Government
Obligations in the hands of the Paying Agents pursuant to
this Section which is not required for the payment of the
Bonds, the redemption premium, if any, and interest thereon,
with respect to which such money has been so deposited,
shall be turned over to the City or deposited as directed by
the City.
( c) That the City covenants that no deposit will be
made or accepted under clause (a)(ii) of this Section and no
use made of any such deposit which would cause the Bonds to
be treated as arbitrage bonds within the meaning. of
Section 103 ( c) of the Internal Revenue Code of 1954, as
amended.
(d) That notwithstanding any other provisions of this
Ordinance, all money or Government Obligations set aside and
held in trust pursuant to the provisions Of this Section for
the payment of the Bonds-~ the redemption premium, if any,
and interest thereon, shall be app_lied to and used for the
payment thereof, the redemption premium, if any, and
interest thereon and the income on such money or Government
Obligations shall not be considered to be income or revenues
of the System.
SECTION 30: City Manager-Director of Finance to Have
Charge of Records and Bonds. The City Manager and Director
of Finance shall be and they are hereby authorized to take
and have charge of all necessary orders and records pending
investigation by the Attorney General of the State of Texas,
and shall take and have charge and control of the Bonds
herein authorized pending their approval by the Attorney
General, their registration by the Comptroller of Public
Accounts and delivery to the initial purchasers.
SECTION 31: Sale of Bonds. The Bonds are hereby
sold and shall be delivered to Rauscher Pierce Refsnes, Inc.
and Blyth Eastman Paine Webber Incorporated, on behalf of
the ultimate purchasers thereof, in accordance with the
Purchase Contract attached hereto as Exhibit A, which
Purchase contract is hereby approved as to form and
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-,. I II
substance and it is hereby found and determined by the City
council that the price and terms specified in such Purchase
~ontract are the most advantageous and reasonably obtainable
by the City. The Mayor and City Secretary are 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.
SECTION 32: Approval of Official Statement. The
Preliminary Official Statement, dated May 4, 1983, relating
to the Bonds, in substantially the form submitted at this
meeting, is hereby approved and authorized to be distributed
to the ultimate purchasers of the Bonds, with such changes
therein as shall be approved by ·the Mayo_r or the City
Manager of the City and the distribution of the Preliminary
Official Statement, as amended and supplemented in final
form to conform to the terms of sale of the Bonds is hereby
in all respects ratified, confirmed and approved.
SECTION 33: Proceeds of Sale. Delivery of the Bonds
shall occur at the Texas Commerce Bank-Dallas, N. A.,
Dallas, Texas, hereby designated as the Bank of Delivery.
Upon payment being made for the Bonds at the Bank of
Delivery, certain proceeds of sale of the Bonds shall be
transmitted in immediately available funds to the Texas
Commerce Bank, National Association, Lubbock, Texas (the
"Escrow Agent"), and such -proceeds, less accrued interest on
the Bonds (which shall be deposite~ in the Bond Fund), shall
be used for the purpose of refunding, discharging and
retiring ail of the Refunded Bonds and paying the costs and
expenses of issuance of the Bonds; all in accordance with
and pursuant to written instructions to the Bank of Delivery
and Escrow Agent from the City's Assistant City Manager for
Financial Services . By a resolution of the City Council
passed and adopted on May 12, 1983, the City Council has
authorized the execution of a II Special Escrow Fund
Agreement" between the City and the Escrow Agent, which
governs the use and application of said proceeds for purpose
of refunding, discharging and retiring of the Refunded
Bonds.
SECTION 34: Printed Legal Opinion on Bonds. That
the purchaser's obligation to accept delivery of the Bonds
is subject to their being furnished a final opinion of
Messrs. Dumas, Huguenin, Boothman and Morrow, Attorneys,
Dallas, Texas, approving such Bonds as to their validity,
said opinion to be dated and delivered as of the date of
. delivery and payment for such Bonds. Printing of a true and
correct copy of said opinion on the reverse side of each o~
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said Bonds with appropriate certificate pertaining thereto
executed by facsimile signature of the City Secretary is
hereby approved and authorized.-
SECTION 35: CUS IP Numbers. That CUS IP numbers may
be printed on the Bonds herein authorized. It is expressly
provided, however, that the presence or absence of CUSIP
numbers on the Bonds shall be of no significance or effect
as regards the legality thereof and neither the City nor the
attorneys approving said Bonds as to legality are to be held
responsible for CUSIP numbers incorrectly printed on the
Bonds.
SECTION 36: Effective Date. This o_rdinance shall
take effect and be in force immediately from and after its
passage, on second and final reading and IT IS so ORDAINED.
PASSED AND APPROVED ON FIRST READING, this 12th day of
May, 1983.
PASSED AND APPROVED ON SECO
of May, 1983.
ST:
·ty Secretary,
Lubbock, Texas
(City Seal)
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/.;?J-day
..... ...
DUMAS, HUGUENIN, BOOTHMAN & MORROW FULSRIGHT & J~Wl'.ORSKI OFFICES
ZOOI . SR'l'AN TOWER. &VITE 1400
DALLAS, TEXAS 75201
TELEPHONE 12141 91S9•09159
LANDMARK BUILDING. SUITE 200
705 EAST HOUSTON AVENUE
SAN ANTONIO, TEXAS 78205
TELEPHONE (512! 22<4·6622
ED H. ESQUIVEL
PARTNER
July 14, 1983
eANK ot TH.\" S~Q\J.f~·w·£s~ •~•LDJ,NG
HOUSTON, TCXAS 7700,
Tt.Lt~HONC ;7t3l 8!51--5151
TCLl:X 76 ·2829
1150 CONNECTICUT AVE. ,N.W
WASHINGTON, O.C. 2003$
T[LEPHONE l2021 •52•4S600
TtLEX ee.ze.02
.-.M£AJCAN BANK TOWER, SU-ITI: 1740
221 Wt.ST SIXTH STA££T
AUSTIN, TEXAS 78701
TELEPHONE i512) 47A-5101
LANDMARK BUILDING. S_UITC 200
105 I.AST HOUSTON AVENUE
SA~ ANTONIO, TEXAS 78205
T[LEPHONE tsiz: 22<4-5575
2001 •RT'AN TOWCR
SUITE 1400
OALLAS. TEXAS 75201
TLLEPH0Jt1£ 12141) 969·19GQ
2 ST~ .JAMES'S.PUCC
t.ONOON,'SWIA lNP
TCllEll9HON£ lOII 9'29·1207
TCU::X 28310
Rauscher Pierce Refsnes, Inc.
Plaza of the Americas
Hutchinson Price B.oyle & Brooks
211 North Ervay Buildimg
2400 North Tower
Dallas, T~xas 75201
First Southwest Company
800 Mercantile Dallas Building
Dall~s, Texas 75201
Suite 1500
Dallas, Texas 75201
City of Lubbock
P. o. Box 2000
Lubbock, Texas 79457
Texas Commerce Banlf;-N-:-A-:-··
P.O. Box 841
.( --,,T-
Lubbock, Texas 79408
Re: $10,770,000 "City of Lubbock, Texas, Electric Light amd
Power System Refunding Revenue Bonds, Series 1983-" ,.
dated May 15, 1983
Gentlemen:
Enclosed herewith is a transcript of proceedings re·lating
to the issuance of the above described bonds for your fil£.~s.
EHE:dfc
Enclosure
Very truly yours,
' /
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' L \
TRANSCRIPT OF PROCEEDINGS
RELATING TO
CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER
SYSTEM REFUNDING REVENUE BONDS
DOCUMENT NUMBER
1
2
3
4
5
6
7
8
9
10
11
12
13
14
SERIES 1983
DATED MAY 15, 1983
DESCRIPTION OF DOCUMENT
Ordinance Authorizing the
Issuance of the Bonds
Purchase Contract
Preliminary Official Statement
Executed Official Statement
Resolution Providing for the
Redemption of Series 1981 Bonds
Executed Notice of Redemption
Resolution Approving and
Authorizing the Execution of
the Special Escrow Fund Agreement
Executed Special Escrow Fund
Agreement
Corporate Authority of Texas
Commerce Bank-Lubbock, N .A·.
Report of Certif-fed Public
Accountant
Ge.neral Certificate
Instruction letter to Texas
Commerce Bank-Dallas, N.A •
Instruction letter to Texas
Commerce Bank-Lubbock, N.A.
Special Report of Ernst &
Whinney, Certified Public
Accountants
,, ..
.....
. ..
,,.
,,
,a<
,.., .
' t
·i
~
--
DOCUMENT NUMBER
15
16
17
18
19
20
21
22
23
24
25
DESCRIPTION OF DOCUMENT
Attorney General's Opinion and
Comptroller's Registration Certificate
No-Arbitrage Certificate
Certificate of Mayor
Certificate of City Secretary
Opinion of Bond Counsel
Supplemental Opinion
Opinion of Underwriter's Counsel
Signature and No-Litigation Certificate
Treasurer's Receipt
Receipt of Texas Commerce Bank-Dallas,
N.A.
Receipt of Texas Commerce Bank-Lubbock,
N.A.
,.
,.
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CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS §
§
COUNTY OF LUBBOCK §
§
CITY OF LUBBOCK §
I, the undersigned, City Secretary of the City of
Lubbock, Texas, DO HEREBY CERTIFY as follows:
1. That on the 12th day of May, 1983, the City Council
of the City of Lubbock, Texas, convened in regular session
at its regular meeting place in the•city Hall of said City;
the duly constituted members of the Council being as follows:
BILL MC ALISTER
ALAN HENRY
JOAN BAKER
M.J. ADERTON
E. JACK BROWN
)
)
)
)
MAYOR
MAYOR PRO TEM
COUNCILMEMBERS
and all of said persons were present at said meeting, except
the following: Mayor Bill .McAJister • Among
other business considered at said meeting, the attached
ordinance entitled: ORD. NO. 8440
"AN -ORDINANCE by the City Council of the City of
Lubbock, Texas, authorizing the issuance of
$10,770,000 'CITY OF LUBB.OCK, TEXAS, ELECTRIC
LIGHT AND POWER SYSTEM REFUNDING REVENUE BONDS,
SERIES 1983' prescribing the form of the bonds
and the form of the interest coupons; pledging
the net revenues of the City's Electric Light
and Power System to the payment of the principal
of and interest on said bonds; enacting provisions
incident and related to the issuance, payment,
security and delivery of said bonds 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 du_e consideration of the
ordinance, a motion was made by Counci Jman M.J.Aderton that
the ordinance be passed on the first reading. The motion
was seconded by Counci 1woman Joan Baker and carried by the
following vote: absent (McAlister)
4 voted "For" 0 voted "Against" --~l~
;~,
..
...
\ r,
all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
2. That on the 12th day of -May, 1983, the City Council
of the City of Lubbock, Texas, convened in Spec i a 1 session
at its regular meeting place in the City Hall of said City;
the duly constituted members of the Council being as follows:
BILL MC ALISTER
ALAN HENRY
JOAN BAKER
M.J. ADERTON
E. JACK BROWN
)
)
)
)
MAYOR
MAYOR PRO TEM
COONCILMEMBERS
and all of said persons were present at said meeting, except
the following: Mayor Bi 11 McA 1 is te r •
Among other business considered at said meeting the attached
ordinance entitled: ORD. NO. 8440
"AN ORDINANCE by the City Council of the City of
Lubbock, Texas, authorizing the issuance of
.$10,770,000 'CITY OF LUBBOCK, TEXAS, ELECTRIC
LIGHT AND POWER SYSTEM REFUNDING REVENUE BONDS,
SERIES 1983'; prescribing the form of the bonds
and the form of the interest coupons: pledging
the net revenues of the City's Electric Light
and Power System to the payment of the principal
of and interest on said bonds; enacting provisions
incident and related to the issuance, payment,
security and delivery· of s~id bonds including
the approval and distribtuion of an Official
Statement pertaining thereto; and providing
and effective date."
was introduced and submitted to the Council for passage and
adoption. After presentation and due consideration of the
ordinance, a motion was made by Councilwoman Joan Bakeithat the
ordinance be passed on the second and final reading. The
motion was seconded byCounci Jman M.J.Aderton and carried by the
following vote:
4 voted "For" ----0 voted "Against" ---
a6sent (McAJiste
~ts~ax ---
all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
,.
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. ·--•"'·~
3. 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 meetings
are those persons shown above and, according to the records
of my office, advance notice of the time, place and purpose
of each meeting was given to each member of the Council:
and that said meetings, and the deliberation of the aforesaid
public business, was open to the public and written ,notice
of said meetings, including the subject of the entitled ordinance,
was posted and given in advance thereof in advance of each
meeting in compliance with the provisions of Article 6252-
17, Section 3A, V.A.T.C.S.
IN WITNESS WHEREOF, I have hereunto signed my name
officially and affixed the seal of said City, this the L~ day of May, 1983.
?.~R?J~~ City Secre ary,'Cityof
Lubbock, Texas
{City Seal)
r'
,,
...... •--·'!'...
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AN ORDINANCE by the City Council of the City of
Lubbock, Texas, authorizing the issuance of
$10,770,000 "CITY OF LUBBOCK, TEXAS, ELECTRIC
LIGHT AND POWER SYSTEM REFUNDING REVENUE
BONDS, SERIES 1983" ; prescribing the form of
the bonds and the form of the interest
coupons; pledging the net revenues of the
City's Electric Light and Power System to the
.. pa.yment :::;ofi;;the '.:(principal ·of.\and · interest,\on.: .,
said bondsf enacting provisions incident and
. related to .. the 'issuance,. payment, security
and delivery of said bonds 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, the City of Lubbock, Texas (the ticity") has
duly issued and delivered, and there are currently out-
standing, · the following . series or .issue of revenue bonds
payable from • and secured . by a · first lien on and pledge of
the net revenues of City's Electric Light and Power System, :to -wit:<· ,,.· ~/0-,·".';::f: .. ,<i,.· .·.:. .. . .. . ..
_-.-. _:,:: ~--. -~-=.:::_··;;: :~.~-:~'_:-::--:;.._,·,;~~:~:-:; ·f >::·::;:-~_;~{ ;\~~--..__ .. -0 .: ii.:.:_·.
·"City of Lubbock, Texas, Electric . Light and Power, ..... ,
System Revenue Bonds, Series 198111 dated
August 15., . 1981 ~ and now outstanding in the · . · · · ·
aggregate principal amount o! $8,550,000~
·:::~;;..;. ___ · · · --·-··· ·AND-~WHEREAs :,:-.:'a 9propos·a:i·· has --been·-submitted to·-1:he City:.::_ .... __ _
"· to refund the above . described series of bonds, which
refunding will result in a total interest cost savings to ...
the · ·City · cin ~--··such .. ,, ·indebtedness of :·:approximately>?
$876,249; and .
WHEREAS, the City Council hereby finds and determines ..
that refunding bonds should be issued and sold for the
reasons stated above in an amount sufficient .. to refund all
the outstanding.· .revenue bonds of the series described above·
and to· pay the costs of· issuance incurred in connection
therewith; such refunding bonds to be issued under and
pursuant to the general laws · of the State of Texas,
including Article 717k,· V~A:.T.C.s~·; and
WHEREAS~ , :.the City council has further , determined· and · ··
hereby finds · that >said refunding bonds can and should · be
issued on a parity with other outstanding revenue bonds of
··~•-·!"' .:-•, .·
.. ,.
. .
-the City (hereinafter called and defined as "Previously
Issued Bonds") payable from · and secured by a first lien on
and pledge of the net revenues-of the City's Electric Light
and Power System (hereinafter called the "System") and that
the terms and conditions for the issuance of "additional
bonds" on a parity with the Previously Issued Bonds can be
met and satisfied, to wit: (i) the Mayor and City Treasurer
.•· ·. can certify that the City is not now in default as to any ,-. .. 'L.~: covenant, .. condition or · obligation prescribed by the
riii~~\:/:: ··~;:,~~~!i~~r;,:151:;~~i~~f~llna~e . i~~~~di~; , ~16w?n~s ou{h;f1d!11 :
''.\;:\ interest, sinking·: :and reserve .funds have been fully \:~'{t,i maintained . .-.. in accordance with ·. the provisions of said
-.~_--·.',·_·.~·;··.·-.•.•.:_.' .. ·.~•.--~.-.--~.::_-:·_·:,·:_·~-·.,=.·.:. ___ ~.tj_.·.·.r ... :.~.:::.:.:,:, •. ·.· .. :·•-:•·.·:_··.· .. · ... · ... · .. ·.·... !~lT~:;\*1Y bt:}}f i!:~:E:.0!!~;{i:if i~ ~g~ai; -.~.;::c-;0: -.-_. .... ·;.:·-secur~Jitfrom'.ttan;::?.J:D.dependent Certified Public·' Accountane::~a '·'·' ·
written report dfmlonstrating that the net ~evenues of the '.'~!1~ Sys:tem were;:·auriri$ ·the last completed fiscal year, equal to
· •j at least 1-1/2 times the average annual ~rincipal and -,J· interest requirements of all the bonds which will be secured
· :.}t~ · by a · first lien on·--'and pledge of the net revenues of the ·
'-· ~~~I System and 11hich. ~ill ~e · ou1:standing upon the issuance . of
~t · • the ,.:refunding ,;::/bonds : a.: ·~erein · authorized; • ·:: · and : further
·. '.,.; . ·-~· ~-:~-·-;
•·:•.-... ;.
~·:,:...., j
. :":;. ;-~~3 \
'
demonstrating'.:':that}±he· ·net ::revenues•. of . the '·system during-',:the
last completed fiscal year were equal _:to at least 1.;.;1;s
times the maximum annual principal and interest·reguirements
of all such ,bonds :as will be outstanding upon the issuance. ·
of the refunding bonds herein authorized, (iv) the refunding
bonds hereinj;authorized will mature·. on April 15 in each year .
--·--------.. and._c{:v-) . ....::the :: !!Reser:.ve.;.2P-0rtion~L-.. of---the.:.--Bond.:.._Fund-:~will~be ::c. .. : ... --
accumulated · · and ·,-, supplemented as·: necessary ·· to maintain
therein a sum .· equal · .to at least. the average annual principal
and · .interest :;.requirements ,: of .,. all .bonds secured .by . a : f'irst
lien on and ·pledge ' ·of ' the net revenues of the System which
will be outstanding upon the issuance of the refunding bonds
herein authorized and any additional amount required to be
maintained therein will be . accumulated in · equal monthly
installments over a .period of not to exceed sixty (60)
c;alendar months .from.'"the date of the refunding bonds herein
authorized; now, 'tlierefore, · ·
BE IT .· .. CITY COUNCIL OF . TBE CITY . OF
LUBBOCK:
-. . '
. . .:SECTION 1: ,: ·,:Authorization -Principal Amount Series
Desiraation. , .· For the purpose . of refunding all the
outs anding "CITY · OF LUBBOCK, TEXAS, . ELECTRIC LIGHT AND
POWER SYSTEM REVENUE BONDS, SERIES 1981," and paying costs
of issuance incurred in connection therewith, there shall be
-2-
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_,..._
-and there is hereby authorized to be issued a series of
bonds, each payable to bearer, in the principal amount of
TEN MILLION SEVEN HUNDRED · SEVENTY THOUSAND DOLLARS
($10,770,000), to be designated "CITY OF LUBBOCK, TEXAS,
ELECTRIC LIGHT AND POWER SYSTEM REFUNDING REVENUE BONDS,
SERIES 1983" (the "Bonds"), pursuant to authority co:nferred
by and in conformity with the laws of the State of Texas,
particularly Article 717k, as amended, V.A.T.C.S.
. (:;?\-:;SECT1ON;~2 .:·:ec:{;.;;:Date"i~\~Deriominatioil"'"-Numb~rs . -·Matmrities
. :.Interest Rates ~-\\:?.The ' Bonds shall be dated May 15,. 1983;.
shall each · be iri . the denomination· .of Five Thousand . .JDollars
($5;000); shall consist of 2,154 bonds numbered . consecu-
tively from .One (1) upward and shall mature . on April 15 in
· · each of the,, years ,. and bear · interest at per annum '.'rates in.
accor!lance_: with the .£ol1owing · schedule: · ~\~~+. _ . .~:~-~~:_:_~-~ .:·. ·, -~::~;.~::~.__: ~;_;~i1~P.:~::~~-~~=~~~~~:~>~ -~:"· ... ~-, -~--~~:;r;l~5:f0~~:·:~ .
,· cl
,;.
Bond Numbers
(All Inclusive)
. ~ . \
Maturity
Date
1 to 168 .1984
. -169 to_c3o6 · -. :~·:1985 .
. ,, 301 io·,;·439·. -~?i986.;
· 440 to 568 : ·· .1987 ··
·-569 to 693 1988
· 694 to 814 .1989
815 to 931 1990
-932 to .1045 · __ 1991 -
Aggregate
Principal
Amount
Inteirest
~e
$ 840,000 --•::·< 5..50%
690, ooo . ·• s.;u5%
_.· ·::• 665 ,ooo "" .· : 6'..:25%
645,000 . :., :~~50% ..
625 ,ooo ·:·<5_751
_ 605,000 ., _ . .. 7':..IDO%
. 585,000 ,, 1'-40%
· 570,000 . . -"1-i10% .
. • . ·•< ... ,:·. ·~ :.; -·~~ ··-.•
_ .. · ·:.-'. --· ..... ··--. •---• ~•1046 • to~.1158-,,:.y .... ~ C> ',•-0-.1992~:.:...-.,, :. ....... V · 565 ,ooo :< _ ~ ... ., ,a;coi ----· ... ----_ . __ ., --.. 1 i'59 to 1269 · 1993 555 ,ooo &-15% ·
1270 to 1378 1994
1379 to /1485 1995
. · 545,000 . 8:.:..30%
535,000 . '. 8C...:40%
,1486 to 1590 1996 525,000 8 . ...50%
1591 to 1692 1997 510,000 .. ·:&.ES%
1693 to 1791 1998 495,000 . &.75%
1792 to 1887 1999 480,000 8;.90%
1888 to 1980 2000 .. 465 , 000 , 9 -CO%
-· 1981 to 2069 2001 445,000 ·. 9-00%
2010 to 2154 ',. ··2002 425,000 9'~00%
SECTION 3: . · Interest. The Bonds shall bear interest
from .. date ,unti1 paid, · or the redemption .thereof· in:·· accor-
dance with · the terms prescribed therefor, at the per annum
rates shown .. above,. such interest to be evidenced by _interest
coupons attached to each of said bonds and said i.Dterest
shall be payable on October 15, 1983, and .. semia::nnually
thereafter on April 15 and October 15 in each year.
·,..;. ·"
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SECTION 4: Payment of Bonds-Paying Agent. Both
principal of and interest on the Bonds shall be payable in
lawful money of the United -states of America, without
exchange or collection charges to the owner or holder
thereof, upon presentation and surrender of · such bonds or
proper coupons, at the CITIBANK, NATIONAL ASSOCIATION, New
York, New York,· or, at the option of the bolder, the TEXAS
;; COMMERCE BANK, NATIONAL ASSOCIATION, Lubbock, Texas (the · ,,,....
,,.;:.:i.;. ., . "Paying Agents~• l:-. . . . . . •· ...
~~~t:;;;.:t:=-p~~',r::: .. ~-::,\~~':~;:= .... :,,~~Rf.(:/':i:.~:.;j~~~}~tEf~~t·f~;i·±,;;i~,,:\+•:f:i~{o · . ··•·:'f.;_; ~~T-"i:_,::.,-;~{•'" ;,,,-._ '>.' ·· __ ~-.'.. :-:~ -~/\_ · ...
-··!--· · . If ' the ·,; date _for making any principal' or interest
... , '-:i:.~i ~-_t:1·
--... ,i! ~~
~L
'-~
payment on the .. Bonds is a Saturday;. Sunday,· or legal holiday ·
or a _day on-which banking institutions in the city where the
principal . corporate • .. office of a Paying Agent_ is located are
authori·zed or ·required by law or executive order to close,
, : .. such paymen.t, may be · !llade on the next succeeding day which is
· :~-:/·not'"· a:::;.:saturday;.;t:sunda.y-,·: or;lega.l?:holiday or .. day __ on which·:'
such. _banking institt1tions are authorized. or required by law ·,. ·
to close with .the same force and effect as · if made ·on the
specified date of payment.
·SECTION '"S: · 0p't.ional Redemption~:,• The City reserves
the right to . redeem the Bonds maturing on ·and after
April·::15;: 1994.j,V<.in-~•1who1e -·or _.any part. thereof, .. on April. ... 1s;:
-1993/'· or· oni ·any"'::'.i.n·fi{rest 'paymentL date ' thereafterr at·<the
redemption -price of par plus accrued interest to the_ date of
redemption· and without premium. · · ·
SECTION 6·: Notice of Redemption. At least
thirty:•(30). days, prior• to a date any of ,.the Bonds are .to be ..
........,....,... _____ ~----.-· redeemed-~pursuant:>to ;,.1:b,e .;'.provisions. of--SEiction :.5 ... hereo£., ~the._..,._. ~::<:_1 City shall cause a written· notice. of redemption ( specifying
the serial numbers and amount of -bonds to be .redeemed).to be
· filed -with1· the:C.•'Paying+Agents. and . to be published at . l.east .....
once in a financial publication ~of general circulation in
The City of New York, New York. If such written notice of
. redemption is filed with the Paying Agents and published as
provided above, and if due . provision for payment of the
redemption price is made with . the Paying Agents by the
redemption date, the .Bonds ._ so redeemed shall cease to bear
·interest after the -"date '£ixed for redemption and shall. not
be regarded as being outstanding except for the.right of the
holder. to receive the redemption price from the Paying
Agents tout · of~. the funds provided for such payment •.
,SECTION -7::,"> Execution of Bonds. The seal . of .. said .
City shall be impressed on each of said Bonds or, in the
alternative, a facsimile of such seal . shall be printed on
~4-
,: . ~:-.. _:, ,"':
,,..·l
--.
,..
j.
i
, .....
...
.. . '
,:,• . ..., ~ .... -.
the said Bonds. The Bonds and interest compons appurtenant
thereto may be executed by the imprinted facsimile
signatures of the Mayor and City Secretary and execution in
such manner shall have the same effect as L£ such Bonds and
coupons had been signed by the Mayor and C:ity Secretary in
person by their manual signatures. Inasmuch as such Bonds
are required to be registered by the Comptroller of Public
Accounts of the State of Texas, only his si.,gnature (or that
of a deputy designated in writing to act for . _ the
Comptroller) sha~:L.., be required to be manual..J.y subscribed to
') suc!i,. _B_onds :in :.~connection•' with his .:registration certificate
·-to ·_ ·• appear thereon~ -as -_ -her'einafter provided; all in
accordance with the provisions of Article 71.'7j-l, V.A.T.c.s.
SECTION 8: -·-· _--Forms. · The form of the .lB·o~ds, including
the form of interest coupons to be attached. thereto and the
form · of .... -, .. registration ·. certificate · of the .... Comptroller . of ·
-,Public Accounts;:'of'·':'.tbe· -state-;of Texas•~ shal.r.:1:>e·• substantia1ly
as follows, .to wit:
NO. ----
• .. ---.. !',
. (F~rm of Bond)
UNITED STATES OF AMERICA
STATE :OF TEXAS ··.
COUNTY OF LUBBOCK
---~-
: .. ~: '."'~· . .-~-~,, :'.
CI TY OF . LUBBOCK, TEXAS "'.
$5,000
ELECTRIC LIGBTAND POWER SYSTEM REFUNDING:REVENUE BOND _
; -r---------SERIES -,1983:_-
The ,--City of~ .. Lubbock,, :.:•a municipal corporation in ithe
County of Lubbock, State of Texas, FOR ' VALUE RECEIVED,
hereby promises to pay to the bearer hereof~ solely from the
revenues hereinafter identified and as . hereinafter stated,
on the FIFTEEN'XB DAY OF APRIL, ----, ·-t!ne principal sum
of
,FIVE ·TBOUSAND DOLLARS
($5,000), in lawful money of the United ·States of America,
and· to pay .. interest thereon. from the date .he:reof until paid,
or the redemption hereof in accordance · with the terms
-prescribed therefor, . at the rate of ______ -percentum
( __ %) per annum, such interest being pay~le on
October 15, 1983 ·, and semiannually thereaflber on April 15
,: ....
__ -s-
-
,...,
-
,,..._
..,__:
~.-." . _-
and October 15 in each year and evidenced by interest
coupons attached hereto.
BOTH PRINCIPAL AND INTEREST are payable only upon
presentation and surrender of this bond and -the interest
coupons hereto attached as the same severally become due at
the CITIBANK, NATIONAL ASSOCIATION, New York, New York, or,
at the option of the holder, the TEXAS COMMERCE BANK,
_NATIONAL, ASSOCIATION, . Lubbock, Texas (the "Paying Agents"),
,;>without,tJf exchange ;,,0:or:-~>collectionr --charges .;,.to .... the<owner .. _or ._ ·
holder'/:' -and .:·the'.-bearer -· of -this· ' bond and ' its -appurtenant(_
:interest _ coupo'ns shall be deemed the owner thereof £or
purposes of · receiving ·payment and all other -purposes, and .
neither the City nor·. the Paying Agents shall_ be affected by
· any notice to·.•:-the contrary.. ·-If the date for the payment of
the · principal\, j of or,:: interest , on _ this . Bond shall be a
·,:~~_.Saturday}-Su.n~~Y(i;'r~tg~,ga.l' ho.liday; or · a day;,on _which ,c banking
· institutions >in .--the city where--· the principal corporate ""
office' '-of a Paying Agent is authorized by law or executive .
order. to close, then the date for such payment shall be the
next s\.lcceeding day :which is not a Saturday, Sunday, legal
holiday, or day-on which banking institutions are authorized ,,,
to close; and payment on such date shall have the same force
/,:and effect ,as~,1;-.:1f .. :-made·-..on the specified >,date of payment_.,<.'..';
--y.,-.. r---_ _ .. : c',.-:2r,:,?,/"~--?i?'.~i:;;~ <p,., -·• _ ·,c\, _. .ti,;fr.:L -, _ . , < :. <:i•);:' {_r,:;:-~~
THIS BOND _'is one of a series of bonds (the "Bonds"),·,-,~-~-~
dated · May 15/-i> 1983~ numbered consecutively . from ·one (1) : :' ...
:-upward,_ ·each .in the -;denomination ·C?f $5,000, aggregating in,
principal a.mount $10;.770;000, issued for · the purpose·:of ··"
:-refunding all~,presently .. outstanding "City of Lubbock, Texas, _
.-~Electric -Light~d_:__p.ower_:System.:.Revenue..,.:Bo:nds_,_,,:_;~~rA~.S.--~~~:1:-u~_ · .·. __ . : :;~---
and paying ,·:costs ·• of issuance incurred in:;-connection :' ..,..--..,.~--:
therewith, pursuant to and in conformity with the laws of-·
the State of,,1::!t'exas,:<-Particularly -.Article _ _:717k, v ,.A.T.C.S.~, ··
as amended, 'tlie Charter of the City and an ordinance ·(the
"Ordinance") duly passed by the City Council of the City and
duly recorded .. in the Minutes of said Council •
. THE BONDS /maturing on and after April 15, 1994, may be
redeemed prior to ·maturity at the option of the City, _ in
whole ·<.·or any,' 'partt,thereof, on April 15, 1993, ·-,--or-on any
interest payment date thereafter at the redemption price of
par and accrued interest to the date . of redemption and
without premium, provided, however, at -least :: 'thirty (30).
days prior to>the date ·fixed for a redemption the-· City ·shall
·:/cause. a _ written notice. of such redemption . ( specifying .. the
seriai nwnbers ··_ and · amount of Bonds to be redeemed) to be
filed -with the Paying Agents and to be published at least
once in a financial publication of general circulati,on in
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-.. ---.----... , ..
··-~----.
•
The City of New York, New. York. If such written notice of
redemption is filed with the-Paying Agents and published all
as provided above, and if due provision for payment of the
redemption price is made with the Paying Agents by the
redemption date, the Bonds so redeemed shall cease to bear
interest after the date fixed for redemption and shall not
be regarded as being outstanding except for the right of the
bearer . to receive the redemption price from the Paying
Agents out of the funds provided for such payment.
. .
.. :'::i,TBE .:_BONDs.:::f"constitute 'special.• obligations . of the City .
and~'·,··together ·:~ith ·the·:foutstanding Previously -Issued 'Bonds -·-
( identified -and · defined in · the Ordinance), are payable
solely . from · and equally secured by a first lien on and
pledge·of the ."Net Revenues" (as such term is· defined in the
Ordinance) of the City's Electric Light and Power system.
For_ :a . more complete · de·scription and identification of ·· the
revenuei(;:'pledged:,'..eto -_;the':'ipayment of the ·Bonds,.· reference •is. _
hereby made to -tile Ordinance •. -. . . '· ,, .. ~ .. ·
.>:_·: ... _:·. . .·'." -~-;,-~--''7----. ·-
THE CITY. has reserved the right, subject to the re-
strictions stated · in the Ordinance, to issue and incur
additional revenue ob1igations payable Ci from and equally
secured by a first lien:-on and pledge of the Net Revenues of
the .. ~Electric ,.Light and: Power System, .in the same manner and
to ·the"✓•sa:me· extent: as i:;the Bonds and ·the -Previously Issued
Bonds.·: .· ~-· · .. ,.-.f
THE .• HOLDER HEREOF -shall never. have the right to demand
payment ·of this· obligation out of any ·funds raised or to .be
raised by taxation. · . . --~~ ,.,
0":: -----------~··---:----...,_-. ~-... -.--, .... ,.; -----~~------..
. IT 1s· HEREBY CERTIFIED AND RECITED•o-that--the ·I -ssuance-crf--·---··-·--'--
the Bonds is duly authorized by law; that all acts,-.condi-
., ...... tions and things required .to exist and to,be done prec·edent
to ·and in the .. ·issuance of 'the -Bonds to render the same
lawful and valid 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 hereinabove mentioned; that the
Bonds do _ .not : . exceed , any cons ti tutiorial or statutory
limitation; and that provision has been made for the payment
of the principal of and interest on the Bonds by irrevocably
pledging the Net Revenues of the Electric Light and Power
System · of ·,the -· .. City of Lubbock, Texas, as hereinabove
recited.
IN TESTIMONY WHEREOF, the City Council of the City ·of
Lubbock, Texas, in accordance with the provisions of Article ·
-7-
,-
... ~4~~,,.
· ... -~~--·-
-·~. f ~ •
,,., _·-::
·,.;.· --•.• 4
717j-l, V.A.T.C.S., has caused the seal of said City to be
impressed or a facsimile thereof to be printed hereon, and
this bond and its appurtenant ·coupons to be executed with
the imprinted facsimile signatures of the Mayor and City
Secretary of said City.
City Secretary, •.. ·-City of
Lubbock~,. Texas
Mayor, City of Lubbock, Texas
({}is?J·'
.{::_:~--~-~----~-.• ~.-~---~-~.:_~.~.:~-~-• •• :.._}L_,._>_· .. _·. ,. --ci?;;J~\/> _·.-~~;i~~::.~·-.-·:'.L~~;.;~~.;1.~~-~ce-~f Interes~ __ c~upon) -·':-••~ . .:.... . ... '··" ··; N~:~:; .. ~;:·-:~.~;.?;1-:-:?,:::~.';~1.,.::~,~:~·:· ··();:·~ 15TB riAY .. OF :• . ,, ... _:. ;, .:7°~~,:--C•
.... ··• .•.• ... --~ _;• -. '•$" . -•: ~~.~:C:: -.
,,,... ,·
• • :'. ·i .-<~~t~~:~;~y;.:~ ··.
~-:---. ·: .
~---. ,•
; --~ =
--------________ , _____ ,
unless the bond _:to · which :this coupon pertains has been .
redeemed .in accordance with its terms, ·the CITY OF LUBBOCK,
a -munici,pal .corporation in the . County of Lubbock, State of
.. Texas;'0" .'hereby,,?~promises . to ' pay : to 'the:., bearer -·hereo£ tllef-.
amount shown hereon/· ·out of-funds specified in the bond to.
which this coupon · is attached (without right · to >·demand ·•
payment out of · any funds raise$! or to be ·· raised by
taxation'), in lawful money of the· United states of America,;·
upon ..•. presentation and surrender . of this _coupon, at the _·
.......... -·-· CIDBANK;:F,NATlONAL :.:ASSOCIATION., ___ New_~ YQ~Jt,_ New : York,·" or, _ at -
the option of the ·iiolder, the TEXAS COMMERCE--BANK,·•·NATIC>NAL ______ .
ASSOCIATION, Lubbock, Texas, without exchange or col1ection
charges ,-.~x said :.;amount being · interest due on , such .. date on
ncITY OF ' LUBBOCK, TEXAS ELECTRIC 'LiGHT ANII:. POWER "SYSTEM
REFUNDING REVENUE BOND, SERIES 1983," dated May 15, J.983.
Bond No.
·: .. city; Secretary Mayor
(Form of Registration Certificate)
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COMPTROLLER'S REGISTRATION CERTIFICATE ·REGISTER NO;;
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I . ·hereby certify that this Bond has 'been examined,
certified as tovalidity and approved by the Attorney·
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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 this
Comptroller of Public
Accounts of the
· State of .Texas.· "v.,,,:
SECTION 9: Definitions. For all purposes of this
ordinance and in-·particular for clarity with respect to .the ·.
issuance of the ;Bonds herein authorized and the pledge and
· appropriation of·revenues for the payment of tjle Bonds, the
foliowing . _defini):ions .· ar~.,provided:
~ '. -.~-~~:.:::,~:~: ·" :·~::,·.·::=::t!;:, .. '•:;~~~ ~; _·· -~·tt~:~\~.~-~ t • -~ • ' :·:,<. ·· •. :.,
(a).-,.The . ,.term "Additional Bonds" shal1 ···mean ·· the
additional parity··. revenue bonds the City reserves the right
to issue in accordance with the terms and conditions
prescribed.in Section 20 _hereof.
_ ___ (b) The term "Bonds"_ shall mean the refunding revenue
bonds authorized)by:.this ::.-ordinance.
;-,~--. . ·.·:· ,·:--.:. ·:.:~:. :·7 ::<·<-Fff.~~~\}~Y~.:-::-:-;·;:·.·:· ~}/\J.-::\\~ -"> ·;.·'tE?:;,/; ,-... ::·
(c) The term : "Bonds ·similarly Secured". shall. mean the :.
Previously Issued ·· Bonds, . .-the Bonds and Additional. Bonds;
l (d)' · :he t~~:;.l,Fiscal> Year" sh-all mean the tw~ve-month
t,: • _ . accounting ·:periop, : .used by ,the City in connectio'n with the
:~ c--~·-::-:--·--·" ·-·--·operationl;i·~-0£~e::S~stem::which':ma¥-:be . any . twelve .co~~~~~ve .• ..
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month period established by the City. · ·
( e) The · :.'term "Nett Revenues tr · .shall .. mean ·~e -gross
. revenues of the System less expenses of operation .. and
maintenance. -Such expenses of operation and maintenance
shall not include depreciation charges or funds pledged for
the Bonds Similarly Secured, but shall include all salaries,
labor, materials, repairs, and extensions necessary to
rendercservices;"provided, however, that in determining "Net
Revenues 11 , only\ ·· such '. repairs .. and . extensions as in the
judgment of the · City Council, reasonably and fairly
exerci$ed . are. necessary to keep the system in operation and
render adequate;: .. service /to the City and inhabitants thereof,
or such as might be necessary to meet some physical accident
· -or -condition · which otherwise would impair the security• of
the Bonds Similarly Secured, shall be deducted.
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(f) The term "Previously Issued Bonds" shall mean the
outstanding and unpaid revenue bonds, desigmated "CITY OF
LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REVENUE
BONDS II and payable from and secured by a first lien on and
pledge of the Net Revenues of the System, further identified
by issue or 1series as follows:
(l) Series 1964, dated March 1s·, 19641:, in the
. _ .. · .. • _.original , ·. principal amount of · $4,500,000;
:·:jfcii~;~t,·:.\·:1'F•?l~~r1~s~-i;;~~~t;~?''; --~f ~!J<'~:M~~~h 15 ;·'. ,-i ;i~']>': in ~~,-.. ·.
original . principal amount of $3, ooo, ooo; ·
-:·;_i_~~~---::-L .. ,..'"°~ ~-..
-(3) Series 1973, dated July 15, 19731,, in the
..... ...... ·original > principal amount · of ·$6, 000, 000;
, .. ::: !:.t, . 2rft?.:t . 2.'i-l/~c~r. . . . .
.. ::) . .(4) :::tS~iest£t1"9_75·/ · dated March-· 15, · 197'5,;·-in :.the ,
-original,, principal amount· of ·:$e,, 400, ooo f · .. . -:,~1-··.-e.•c• ,-
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(5) Series 1975-A, dated September 15, 1975, in
the original principal amount of $~,, 000, 000; arid. -·c•··.···--
·f6). --<Series-\Jl.976, · dated ·April.--15; l9'1li,, in the ·
· -~ · . . · :::original.'·~·: principal amount. :. of . $"41,,,400, 000;:
·1 .,, ..... ,·,,,• .. ·.•· '{·:·_·:;'':'
(g) The tefm •uRefunded Bonds11 'shall mean the "City of
Lubbock, Texas~ ... Electric Light and . Power >.system Revenue
Bonds·, Series :t98l"; · · dated August :. 15, ;;t :n..'981,· and >now .
· outstanding !in the. aggregate principal amount <Of $8,550,000.
(h) ·•;Je -te~r HSy~tem"' .sh;ll mean iii ;~ertie~:--reaf:·----:
personal,· mixed or otherwise, now owned or hereafter
acquired·i.)frby .•·· ·. tlle · >City of Lubbock thr.amgh . purchase,
constructfori. or 'otherwise, and used . in connection with tlie
City' s Electric Light and Power System and in anywise
appertaining thereto, whether situated withim. or without the
limits of the City. · ·
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SECTION 10:, .... Pledge.·. That the . City_ .hereby covenants
, and agrees ··:that al.1 of .the Net ·Revenues ·derived .from . the
operation of the System, with the exceptia:n of those in
excess of the amounts required to establish ·am.d maintain the
special Funcis created . for the payment and : ,security·· of the
Bonds Similarly Secured, are hereby irrevocabl.y pledged for
the payment: of . the Previously . Issued Bonci:S,., the . Bonds .. and
Additional ~onds,· if issued, and the interest thereon/· and
it is hereby ordained. that. the Previously Issued Bonds, the
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Bonds and the Additional Bonds, if issued, and the interest
thereon, shall constitute a · first lien on the Net Revenues
of the system.
SECTION 11: Rates and Charges. That the City hereby
covenants and agrees with the holders of the Bonds that
rates and charges for electric power and energy afforded by
the System will · be established and maintained to provide
revenues sufficient at all times to pay:
.:._~t,~·:;;~t~.;<,_, -~·-~_--it~.~~if t1:'.~\.:::t:\_~:~;;:~:l~t;_,i~:t)~---~:: .... -:.. ..:... --.. ··~:.· .'.·,.. , .. , .. ~\·::fa) :'alT necessary and ·reasonable· ex.penses .. of
operating and maintaining the _System as set forth
herein in the definition "Net Revenues" and to
recoyer depreciation;
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.,· ? (b) ·. the amounts required to be deposited to
the ·'.Bond._ Fund.;;to-2;pa.ytthe __ principal of _ and, interest , _ :, ..
on·'the Borids<Similarly Secured· as the · same becomes· < ···
due -"'and payable and· to accumulate and ·maintain ·the
reserve amount required to be deposited therein; and .
(c) any other legally incurred indebtedness
payable from the/ .. ,reyenues of the System and/or .
secured• by,:i,a _' . .lien >on:· ·the System or .the revenues . thereof~ ··•··-----.• ·~·,· . ..
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SECTION 12: : -Segregation of Revenues/FUnd Designations.
All-receipts, revenues and income_·derived from the ,operation
' and ownership of. the. ~System _ shall be kept . separate from
.... ;,;:: ·: '_.-.. _ .... other ;funds of .. the.,-citjr),.and · _deposited within twenty~four ;,,.:..---:----·:--·--· ··-r2·4 f ho~ a·fter -collection ·1:n-·the--"Elecfric--Liglit.,.and ·power---~--... -· ··7"--
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System Fund" (created and established in connection with the
issuance. of the Previously Issued Bonds), which Fund
(hereinafter referred·-·-tb ·••· .. as the "System· ·Fund") is hereby'
reaffirmed and shall continue to be kept and maintained at
an official depository bank of the City ·while the Bonds
remain outstanding. Furthermore, the "Special Electric
Light and Power system Revenue Bond Retirement and Reserve
Fund" (hereinafter referred to as the "Bond Fund"), created
and established ,' in connection with the issuance of ·the
Previously Issued Bonds,·-is hereby reaffirmed and shall
continue to be maintained by the City while the Bonds remain
· outstanding. The Bond Fund is and shall continue to be kept
and maintained at ·.· the city's official depository bank, · and
moneys deposited in the . Bond Fund shall be used for no
purpose 0
·" other ·· ·than · ·. for the payment, redemption · and
retirement of Bonds Similarly secured.
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SECTION 13: System Fund. The City hereby reaffirms
its covenant to the holders· of the Previously Issued Bonds
and agrees with the holders o-f the Bonds. that the moneys
deposited in th~ System Fund shall be used first for the
payment of the reasonable and proper expenses of operating
and maintaining the System, as identified in Section 9(e)
hereof. All moneys deposited in the System Fund in excess
of the amounts required to pay operating --and maintenance
expenses of the _ System, as hereinabove provided, shall be
applied-•. and -jappro,priated,.j,.to,,:,the 0-extent·•.required_._.and in the
order of '~jiriori ty'·prescribed: . as follows: 'J~ · -'-,· · . --,<·
(i):-To the payment of the amounts required
·to be. deposited in .the· Bond Fund for:__the payment
of principal.:, , of _:, and interest · on1\ the Bonds :. -
Similarly : Sec.ured· /as .. the same become -_ due and .
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<".(ii) • To•:. the :payment -of the · amounts, · if any,
required ·· to be deposited in -the Bond Fund to
accumulate and maintain -the reserve amount as -
security for the payment of the principal of and ·
interest on the Bonds ·Similarly _Secured ..
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SECTION ;:J.4: · :.:Bondt'Fund;.: (a). That, in ·addition _to•: the
required monthly deposits. to the Bond :Fun~t ·for-the payment
of principal of and interest on the Previou·s1y Issued Bonds,
the City hereby agrees .and covenants . to deposit to the Bond .. ·
Fund an amount equal' to O one hundr'ed'percentmn· (100%) of the · · · ·
amount required to .fully ·pay the interest. on and principal
, __ ,_of_;___the -~onds ?fa1J:ing':.~-~due_,on_.:._or ... __ before_~;....each __ maturity ........ :a.nd_ ,.·:-~------__
interest payment , date·, such payments '/ ~to be · made in ·
substantially equal monthly installments · on or before the
1st day of ,e~ch month,~beginning . on or befo_J:e the 1st day of
the month next following the month the Bonds are delivered
to the initial purchaser. _ -
The required monthly deposits to the Bond Fund for the
payment of principal of · and interest on _ the Bonds shall
continue to .. be made as hereinabove provided until .such.time
as (i) · the .total _ amount .. on · deposit -in the , Bond -.Fund,
including the "Reserve Portion" deposited _therein, is equal
to the amount required . to fully pay and discharge all
outstanding .Bonds Similarly}secured (principal.and .interest)
or · (ii) the Bonds are no longer outstanding, i.e. , · fully
paid as to principal _and interest or all the Bonds have been refunded.· .. ,.. .
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Accrued interest and premium, if any, received from the
purchasers of the Bonds shall be deposited in the Bond Fund,
and shall be taken into consideration and reduce the amount
of the monthly deposits hereinabove required which would
otherwise be required to be deposited in the Bond Fund from
the Net Revenues of the System.
(b) In addition to the amounts to be deposited in the.
Bond Fund to pay current principal and interest for · the ·
._ Bonds SimiJ~iarlyC;.Secured, .. the-City reaf£irms ,its covenant to
the"','bolders::: of ,;.the·':Previolisly '·Issued · Bonds·:.·~and agrees toT··.'
accumulate and maintain ·in said Fund a reserve amount (the·\
"Reserve Portion") equal to not less than the average annual . .'
principal <and interest requirements of all ou_tstanding Bonds _.·
Similarly Secured ( calculated and redetermined .. at the time .
of ~,;;issuance of.:,each series of Bonds Similarly Secured).-:; .. ~lt3!:-~::Z:<)-~~\~-~t:.;~f~;;~::.:<:·:~;f~J1ll!f2t.e~-rj;,: :··. ,_···:•·.'·:: . , __ ·.•· "'·;·'.t ;~~--~-~~-: ·-'·
In accordance _ with .. the ordinances authorizing the
issuance of the -Previously Issued Bonds, there is currently
on deposit to the credit of the Reserve Portion of the Bond
Fund the sum of $ /4 '1Jl',1tr7,tJeJ By reason of the issuance
the Bonds,·· the Reserve Portion to be maintained in said Fund
shall be $2 , 007, 000, which amount totals not less than the
average . annual_.;_. principal . and . interest requirements of . the
outstanding.: Bonds ··similarly Secured .. after giving effect .. to,
the . , issuance of .. the Bonds. The : City agrees and covenants~-
that, in addition to the monthly deposits required · in ·:' -
paragraph . ( a) of this · Section, _there _ shall continue to be :?.
/_·,...,i_::-~.~.:·•.;,'.; .. ·_'.····_~-•.~ ... -_~ .. ·._;;·:.·._ .. ~_:.·_·.'..,.•.:.i.t_.:··.~._-,f ... :._ •. r.~.-.'_·_'._:.;._·,~.;'.~.~-·-~ .. '..:.·.• ... ;.•·:.·.: .. : =~~~i:~. !~1!:-:6~~~7~d ~~i~rt!:f~~:~~~s~o!:!i~:-·::~:: .. ,..:_,.,,,_:,-: .. -'·--· -----· --, ... Reserve . .-.-Portion·:•<in cash-· and book . value . of investment;::,
' ' ' securities~ I:ri'••'·the·-;vent~the ""c:i.ty-·~elects to-"'incr·eas·e---,-thef·'-·
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monthly deposits to the _ ~ond Fund applicable to the·
accumulation of,.;.the Reserve Portion, the amount,.in excess of·'
the required monthly deposit shall serve as a credit-to· the.·
amount required to be deposited in .the next month or months.
· The Reserve Portion of the Bond Fund shall be made.
available for . and reasonably employed in meeting the·
requirements of the Bond Fund if need be, and if any amount
thereof is so employed, the Reserve Portion in the Bond Fund .
shall be fully restored as rapidly as possible from the
first available Net Revenues of the System in the System
Fund subject only to the. priority of payments hereinabove.
prescribed in Section 13 • ·' · ·· ·
SECTION 15: Payment of Bonds. While any of the Bonds
are outstanding, the proper officers of the City are hereby
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authorized to transfer or· cause to be transferred to the
Paying Agents therefor, from funds on deposit in the Bond
Fund, including the Reserve Portion, if necessary, amounts
, sufficient to fully pay and discharge promptly as each
installment of interest and principal of the Bonds accrues
or matures or comes due by reason of redemption prior to
maturity;· such transfer of funds to be made in such manner
··,..... · .:_::· as will · cause immediately available funds to be deposited
,:c,·j /:,~\~;-_·,• <· • ··... ·< with the .,J>~ying Ag~nts for the Bonds at the close of the
~jI.f:.~try"f?t''',· .. ::-.:. :gf?~·business;g;:~ai::a.<next.'.~\preceding ·the.· .. date of, ,.payment .. ,for the .. ·.·
... ,.,,.,_ .... '... Bonds .. Thi{ Paying'Agents shall cancel and destroy·all paid <.
Bonds, and ·the coupons, if any, appertaining thereto, and
furnish the City with an appropriate certificate of
cancellation ·or destructio~: ·
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··,,:·, SECTION>-16: : , Deficiencies in Funds. That,· if in any
· month , :the:;\Ci ty .. ,:sha.i1~ :. for any :reason, . fail· , .. to pay.,:into }the
Bond Fund., the ·. full · amounts . above stipulated,-. ··· amounts
equi valerit-' to such .. deficiencies shall. be set apart and paid
into said Fund from the first available and unallocated Net
Revenues of the System in the following month or months and
such payments shall be in addition to the amounts
hereinabove .. provided to be otherwise paid into said Fund
·during · such;:month ·or,·months .. · •·;s . ..,,.:,:
·.· .,, .··":•;··:,\.:;·.-;: _·, ·:,.:::~:t;) ;~_):?::··.I~~L}.·;~---_·:~.·.~:: ... ·,·'j..~ .. _~.-./-~.:. -~.:.·::,~~:~g_;;._ '-~-/-. :-: ' .,•:-· ··:'. ,._
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. '. SECTION . 17: i'xcess Revenues. Any surplus Net-·Reveriues
of the System remaining after all payments have been made
into the ,;, Bond : -Fund . and after a1i . deficiencies in making
deposits to said Fund have been ,,:remedied, •· may be used·· for
=.'·,•.~_·?;·_·.·.• .. ·.·,'.:.~:.~.~.:.-.;_.••_''°.·.·:_1-.·_.·---.,.· .. ·, .. -.• ·.~.-·.".·.·_ .• _. -·~·· · any other Ci:tY;.Pu;poses now or hereafter permitted by law-,
• -c· _ ·· .... ...:.... ___ ····incl.uding· :the=.-useC:::.:.,thereof .~£or_ the .. retirement in .advance /of .
,-. .·· maturity of the Bonds Similarly Secured-by· the· purclias-e';-of·-··---·
any of such Bonds Similarly Secured on the open market at
not ·exceeding .;the : market value thereof. Nothing .her~,
however, shall.· be construed as impairing the right of ·.'·the · ·
City to pay, in accordance with the provisions thereof, any
junior 1ien bonds legally issued and payable out of the Net
Revenues of the system.
SECTIOR 18: Security of Funds. That moneys on deposit
in the System< Fund ( except any amounts as may be properl.y
invested) shall be secured in the manner and to the full.est
extent required by the laws of the State of Texas for the
·· security\of public funds. Moneys on deposit in the Bond Fllnd
shall be continuously secured by a valid pledge of direct
obligations·of, .or obligations unconditionally guaranteed by
the United States· of America, having a par value, or market
value when ·less than par, exclusive of accrue~ interest, at
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all times at least equal to the amount of money to be
deposited in said Fund. All sums deposited in said Bond
Fund shall be held as a trust-fund for the benefit of the
holders of the Bonds Similarly Secured, the beneficial
interest in which shall be regarded as existing in such
holders. To the extent that money in the Reserve Portion of
the Bond Fund is invested under the provisions of Section 19
hereof, such security is not required.
SECTION 19: ... Investment of Reserve Portion of Bond
Fund~. ·The:_custodian:.bank•·.shall, ·when authorized.by the City
Council, invest the Reserve Portion of the Bond Fund in
direct obligations · .of, or obligations guaranteed by . the
United States of .America, or invested in direct obligations
of the Federal · Intermediate Credit Banks; Federal .. Land
Banks, Federal National Mortgage Association, Federal · Eome
Loan Banks,;,, .. or, , .. Baajcs.L_for_;·Cooperatives, and which ... such
investment·:· obligati'Ons, , must mature or be subject to
redemption ·at· the -option .. of the holder, within not to exceed
ten years· from the · date of making the investme~t-such
obligations shall be held by the depository impressed with
the same trust for the benefit of the bondholders as the
Bond Fund itself, and if at any time uninvested funds shall
be.insufficient to_prz:mit payment of principal and interest
maturitie,s·;-. for.\:'.' the};/ Bonds Simil.arly · . secured, the.,' .said
custodian'-ba.nk shall 'sel.l on the open market such amount of
the securities as is required to pay said Bonds Simil.arly
Secured and interest when due and shal.l give notice thereof
to the .. city. Al1 moneys resuiting from maturity of
principal and intere.st of the securities shall be reinvested
. or accumul.ated in .the· Reserve . Portion of the Bond Fund and .. -------, ·-considered ____ a ___ part · .. tliitreofTarid--tiEied · Jfor--'--and · -·only -for-· ·the ·--------
purposes hereinabove provided with respect to said Reserve
Portion, provided ~atwhen the 'full amount required to be
accumulated in the.'. Reserve Portion of the Bond ·Fund (being
the amounts required to be accumulated by· the ordinances
authorizing the Bonds Similarly Secured), any interest
increment may be · used in the Bond Fund to reduce the
payments that would otherwise be required to pay the cwcrent
debt service requirements ··on Bonds Similarly Secured.
SECTION 20: Issuance of Additional Parity Bc:mds.
That, in addition to the right to issue bonds of inferior
lien as authorized by the laws of the State of Texas, the
City hereby reserves the right to issue Additiona1' Bonds
which, when duly author_ized and issued in compliance with
the terms·· and conditi.ons hereinafter appearing, shall be on
a parity with the Previously Issued Bonds and the Bonds
herein authorized, payable from and equally and ra1tably
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secured by a first lien on and pledge of the Net Revenues of
the System. The Additional·· Bonds may be issued in one or
more installments, provided, however, that none shall be
issued unless and until the following conditions have been
met:
(a) That the Mayor and City Treasurer have certified
that the City is not then in default as to any covenant,
condi "t:ion or.. obligation prescribed by any ordinance
, ,authoi:-.l:"iing,;::,:the,.;~.::isis.ucU1ce_. of .• Bonds Similarly __ SeC1J.red .-.. then
··-outstanding, : :·,incluclirig showings that all :interest, sinking
and reserve funds then provided for · have been fully
maintained in accordance with the provisions of said
-ordinances; :, ... ,:' ..
. .. : (b} , ___ That. the a.pplicable laws _ of. the_ state of Texas in
Ifforce);:~:E,;:.th~}t#iJ!l~ \proyide,·permission-· and <authority· for •the,.0 .:0
issuance·. ·of such bonds ··and have been ful1y complied with; .. ~ .. ;.· ____ ;,:. ----_,.. .· ·. ·-.: · ... ; .. --:·~-·· .
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( c) That the City has secured from an independent
Certified Public Accountant his.written report demonstrating
't;hat the Net Revenues of the System were, during the last
completed Fiscal Year, or during any consecutive twelve (12)
months .. /·periodstof th.r :last fifteen ( 15_) .. consecutive months
, ·prior/ito '' the):month·>of ;adoption of the ordinance authorizing.
the Additional Bonds, equal to at least one and one-ha1.f
(1-1/2) times .. the average annual principal · and ... -. interest
requirements of all:.--the bonds wh~ch will' be secured by a
· first ·.iien on·,and pledge of the Net Revenues of the System
and w.hich will _be. outstanding upon the issuance of._ the
.-,:...Additii>nal.-.Bonds; _ ··and~....further .. demonstrating·~_:that :£or the-'-----
same period a.it is empl.oyed in arriving at 'the aforementfoned
test said Net Revenues were equal to at least one and
· one-fi:fth. (1-1/5) .. _ :.times the maximum annual principal and
interest requirements . of all · such bonds as . will be
outstanding upon the issuance of the Additional Bonds;
(d) That the Additional Bonds are made to mature on
April · 15 or October J.5, or both, in each of the years in
-which they are prov~ded to mature;
(e) The Reserve Portion of the Bond Fund shall be
accumulated and suppl.emented as neces·sary to maintain a sum
c: which :·._shall _;·be not_ 1ess than the average annual principal
and interest requirements of all bonds secured by a first
''" lien on and ._.pledge .<>f the Net Revenues of the System which
will be outstanding upon the issuance of any series of
Additional Bonds. Accordingly, each ordinance authorizing
the issuance of any series of Additional Bonds shall provide
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for any required increase in the Reserve Pe>rtion, and if
supplementation is necessary to meet all conditions of said
Reserve Portion, said ordinances shall make ~rovision that
same be supplemented by the required amounts in equal
monthly installments over a period of not 'bo exceed sixty
( 60) calendar months from the dating of s:.uch Additional
Bonds •
. When th~s issued, such Additional Bonds :may be secured
by ,.a,.pledg~:.--·?£?:the:.>N~t; Revenues of ·the __ System_ on a parity in
all · thingsa:· with .. the pledge securing the issuance of ·the
Bonds ·and the Previously Issued Bonds.
SECTION 21: Maintenance and Operation -Insurance.
That the City hereby covenants and agrees tlo maintain the
System, . i11.> good , •· condition and operate the same in an
efficient'.:~":manner}:and at ,reasonable ··c_ost. The City.· further;. ·
agrees to ·maintain insurance for the benefit· of the holder
or holders of the Bonds of the kinds and :in the amounts
which are usually carried by private companies operating
similar properties, and that during such time all policies
of insurance shall be maintained in force amrd kept current
as to premium payments.. All moneys received from losses
under ,suc::h ·insuJ::"ance.;.policies other.than p'm>lic liability
policies· are_,-. hereby<.· pledged'. as security <;ffor the Bonds
similarly .Secured until and unless · the proceeds thereof are
paid out in making good_.-the loss or damage in respect of
which·, such _proceeds are· received,_ either by-. replacing· the
property destroyed or repairing .·the prope~ damaged, and
adequate .. provisions.·••· are made within ninety ('90) days after
---· ·· ---the .. -date...:.,.of.;.:.the.,..;1oss.:.~for .. making goo.d __ such.;_Loss · br._ damage
The premiums for all insurance policies reg:c.:ired under ·the
provisions of this Section. shall be considered as
maintenance •. and j:>peration expenses of. the System.
• ·,, .... ~-.·. . . .. r .:. ' , , ',
SECTION 22: Records Accounts--Acc.o;mnting Reports.
That the City hereby covenants and agrees so long as any of
the Bonds or any interest thereon remain outstanding and
unpaid, it will keep and maintain a proper and complete
system of records and accounts pertaining to the operation
of the ·system separate and apart from all 01:i:a.er records and
accounts of the City in accordance with generally accepted
accounting principles prescribed for municipal. corporations,
and complete and correct entries shall be made of all
transactions relating to said system, as provided by
applicable law. The ho:Lder or holders ·of any Bonds, or any
duly authorized agent or agents of such holders, shall have
the right· at all reasonable times to inspect all such
records, accounts and data relating thereto and to inspect
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the System and all properties ·comprising same. The City
further agrees that as soon· · as possible fol1owing the close
of each Fiscal Year, it will cause an audit of such books
and accounts to be made by an independent firm of Certified
Public Accountants. Each such audit, in addition to
whatever other matters may be thought proper by the
Accountant, shall particularly include the following:
(a) A detailed statement of the income and
expendituresi:,,of ::c:the::,:System .for ·_ such. Fiscal .. Year; . . ~ ...... _ ... ~~~~·\?Yi:{/:Z:~-:t ,::.::,:_·.~r;:~::: ,~·>· -·.::; _,. ~~;~l{E:ft~?-~r::_ -:-:.·:_·:r.,.: :~\·.-· -· · · ,-. --· ... -. •·
· (b) A .. balance sheet as .of the end of such
Fiscal Year:; ·
.... .;:; .~--:.: ..... , .
(c) The Accountant's comments regarding the
. _ manner in_. _which . the _ City _ has _ complied with the
. ··:., coveriants~iiari~ requirements of · this -ordinance. and
. -· lus ---:recommendations--'• for ' any changes or 1.mprove-
ments :in the'· operation, records and accounts of
the ·system;
( d) A -list of the insurance po1icies in
force at the end of the Fiscal Year on the System
properties,;·;:csetting,: out,\;as .to .. ,.each ,.·policy ·,the·::
-amount· thereof~ <.the\risk::covered,·;the name of<:the
insurer, and :tlie j,-o1icy' s · expiration:· "date;
_,_ (e) A 1ist of.,the securi,:ties which have been
on deposit .. as security for .. :the .. money in the Bond •.
, . ---~-::. ·. _.,-.
Fund throughout the ( Fiscal Year · and a .1ist of the
~-----..:.•.•·-· securities., .. ~i: i.f ___ ,any}~:in __ which_ the; .Rese:rye_Por.tion __ ··-------
of the :Bond -Fund bas been invested. . . ·-. .
, .. -(fl;, :Xbe .. ,~.total · ,number of , metered .-~-and
unmetered . ciusto~~::rs'; · if any, connected with 'the
System at the end of the Fiscal Year.
Expenses incurred _ in making the audits above referred
to are to be regarded . as maintenance and operating expenses
of the system and paid · as such. Copies of the aforesaid
annual audit shal1 be immediately furnished to the Executive
Director of the Municipal Advisory Council of Texas at his
office in Austin, Texas, and, upon written request, to the
original purcha~ers an4.;:,~Y subsequent holder of the Bonds.
SECTION 23: . Remedies in Event of Def au1 t. That, in
addition to al.l the rights and remedies provided by the laws
of the State of Texas, the City covenants and agrees
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particularly that in the event the City (a) defaults in
payments to be made to the · Bond FUnd as required by this
ordinance or (b) defaults in the observance or performance
of any other of the covenants, conditions or obligations set
forth in this ordinance, the holder or holders of any of the
Bonds shall be entitled to a writ of mandamus issued by a
court of proper jurisdiction compelling and requiring the
City Council and other officers of the City to observe and
perform any covenant, condition or obligation prescribed in
this ordinance.
;·i. :/::;::f.'½:,::i-i/zt·:.:·:z,cS( {;'f,':.$.:kt'i}i.~.:;-;~:?.<;;/15'A\:.'' ':.'.'! :-, ;;; . .;< ,, . ·, · . ,.,, 'No -deiii ' or'" omission to exercise any right or power
accruing· upon ' any default shall impair any such right or
power, or . shall be · construed to be a waiver of any such
default or · acquiescence therein, and every such right or
,power.may be -exercised from time to time and as often as may
be deemed expedient. _ The specific remedies herein provided
.. :. :· shall'.,t°bEf""cumulative __ , pf al1 __ other ,· existing remedies and-:'the ·. ·
specificatio~s of such remedies shall not be deemed to · be·
exclusive. · ·
SECTION 24: .Special Covenants.
further covenants as follows:
·-
The City hereby
· s:,·J.cn <;. (.a)\ .That .,.it. has the 1.awful,.power to pledge
\):(the' "revenues' supporting . this ' i.ssue ···of Bonds -... and.
has 1.awfully · exercised said ·power. under the _
constitution and laws of ~~e State of Texas,
including , Article 1111 et seq.,, V.A.T.C.S.; that
·the · Previously -· Issued Bonds, · the Bonds and the
-Additional Bonds, when issued, shall be ratably
-----~ecured.;.':-.under--said-p1edg·e ... of .. income.:.:.:in ..;,such manner __ -·-· .. ·---······-·--
. that one bonci ''shal1 have -no preference over any
other bond of said issues •..
( ) That, other than· for the payment of the
Previously Issued Bonds, the Bonds and the
Refunded Bonds (until the lien and pledge securing
the payment thereof has been defeased), the Net
Revenues of the System have not been pledged to
the payment of . any debt · or obl.igation of the City
• or -· of the System .
. (c) That, so long as any of.the Bonds or any
·-,.interest thereon remain outstanding, the City will
not sell, lease or encwnber the System or any
substantial part thereof; provided,· however, this
covenant '· shall not be construed to prohibit the
sale of such machinery, or other properties or
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equipment which has become obsolete or otherwise
unsuited to the efficient operation of the system
when other property of equal value has been sub-
stituted therefor, and, also, with the exception
of the Additional Bonds expressly permitted by
this ordinance to be issued, it will not encumber
the Net Revenues of the System unless such
encumbrance is made junior and subordinate to all
of the provisions.· of this ordinance.
•' ~--•:;.: ::·.t·tt;7\1~\f.:/:-t•'. ::,,:;:_N~i.ff·.i,'.f;i7;._:~,}:;~:,·\·S\l~~i•b;:;~:~: '"+{~:)'.:.: ~•i:::,.#~:/i:,, :.· ,.
(d) The :~city will cause to be rendered
monthly to each customer receiving electric
services a statement therefor and will not accept
payment of less than al.l of any st~tement so
rendered, ·. · using:' its power under existing
ordinances:_and .. ~der .. all such ordinances to._:become
· effective ,i.n•• 'thet:.future to . enforce ·payment, to·
withhold service from .. such delinquent customers
and to enforce and authorize reconnection charges.
( e) That the City will faithfully and
punctually perform all duties with respect to the
System required by . the Constitution and laws of
the State_. of ,Texc1s; ·•· ·including the · making and
collecting.of<reasonable and sufficfent·rates-for
services· supplied . by the System, and. . th~
segregation and application of the revenues of the
System as required by the ,._provisions of this
ordinance. ···· -
·----·-----'"" (.f)-' ., . :NO .. £ree;:.:.service --sha11 .. be--provided:..by ::the_· ··•·-----· ----,--·--
System and to the extent the ·city or its
departments or .·. agencies utilize the services
provided by <th~); System1 payment ·· shall be made ·
therefor at rates charged to others for similar
service.
SECTION 25: Special Obligations . The Bonds are
special obligations of the City payable from the pledged Net
Revenues of the .System and the holders hereof shall never
have the right·to demand payment thereof out of funds raised
or to be raised by taxation.
SECTION 26: Bonds are Negotiable Instruments. Each
of the Bonds herein authorized shall be deemed and construed
to be a. 11 Security", . and as such · a negotiable instrument,
within the meaning of Article 8 of the Uniform Commercial
Code.
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SECTION 27: Ordinance to Constitute Contract. The
provisions of this Ordinance shall constitute a contract
between the City and the holder-or holders from time to time
of the Bonds and, no change, variation or alteration of any
kind of the provisions of this Ordinance may be made, until
such Bonds are no longer outstanding.
SECTION 28: No-Arbitrage. The City covenants to and
with the purchasers of the Bonds that it will make no use of
, the proceEiqs,:: of:;:fth~;~Bonds;:.;•,iiivestment income or:-other flJl?.~, :
at any time;,throughout 'the term of this issue of Bonds which
would cause · the Bonds to be arbitrage bonds within the
meaning of Section 103(c) of the Internal Revenue Code of
1954, as .. amended, .... or any regulations or rul~ngs pertaining
thereto ~• t, , . ·:~,,, -.. ,.,
·, -;,>:;;,~;;;::' •,: •cc;•::i','..f:,::"]c,,/,,, '.'.'_,. /}i,-/\_<· , .. .
SECTION '29:~~3::_~;-"-'F1na1 Deposits; . Governmental Obliga~ .··
tions. (a) All or any of the Bonds shall be· deemed to be
paid, retired and 'no longer outstanding within the .meaning ··
of this Ordinance _ when payment of · the principal of, and
redemption premium, if any, on such Bonds, plus interest
thereon to the due date thereof (whether such due date be by
reason of maturity, upon redemption, or otherwise) either
. ( i).. sha11) have :·.been made Jor caused '. to be made in accordance .
with: the terms thereof (including the giving of,. any-required .
notice of redemption), or (ii) shall have been provide_d by ·
irrevocably. depositing with, or making available to, ·· the
Paying Agents thereforr; ·_ in trust ~d irrevocably set aside
exclusively for such payment, ( 1-f money ··s:ufficient to make -_ .. ·
.·. . such :payment or , (2) Government Obligations, certified by an ...,:-£:-·-------.. ,-.-:,-i.ndependent:·-public~accounting ... firm-c'Of -nationa1 .,.reputati.on, __ ;,.
,,._ to mature as to principal and interest in such amounts and
at such times as will insure the availability, without
reinvestment, of sufficient money to make such payment, and
all ,necessary a.net' proper 'fees, compensation and expenses of
the Paying Agents pertaining to the Bonds with respect to
which such deposit is made shall have been paid or the
payment thereof provided to the satisfaction of the Paying
Agents. At _ such time as a Bond shall pe , deemed to be paid ·
hereunder, as aforesaid, :it. shall Iio longer be , secured by or ·
entitled to the \benefit of this Ordinance or a lien on and
pledge of the Net Revenues of the System, and shall be
entitled to payment solely from such money or Government
Obligations.
-The :i .-term ,."Government , Obligations", as used in this
Section, shall mean direct obligations of the United States
of Ame;rica, including obligations the principal of and
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interest on which are unconditionally guaranteed by the
United States of America,·· which may be United States
Treasury obligations such as its State and Local Government
Series, and which may be in book-entry form.
(b} That any moneys so deposited with the Paying
Agents may at .the direction of the City also be invested in
Government Obligations, maturing in the amounts and times as
hereinbefore set forth, -and all income from all Government
Obliga:tioris_,;in\:'i,the)_,,hands,{,of,e:,the ·,Paying Agents· pursuant ___ to
this Section i -which' 'ii:t ~'not required for the payment of the
Bonds, the redemption premium, if any, and interest thereon,
with respect to which such money has been so deposited,
shall be turned over to_-the City or deposited_ as directed by
the City.':::~::·-·._. ..: '.i::'j:~:f{,c:
-· ... . . ·-,-·.::·' :· . .,; .. ~ ..
---:,:.-:,.-;•cc::}\::: .. Thit.(i~~:t c:±~?~~ovenants ··that .• no deposit·-wil1 . be
made or accepted unde£:clause (a) (ii) of this Section and no
use made of any ·such ·deposit which would cause the· Bonds to
be treated as arbitrage bonds within the meaning of
Section 103(c) of .the Internal ~evenue Code of 1954, as
amended.
( d.) _ ,Tha.t' ·_notwitllstanding any other provisions of ,.this
Ordinance,:·,, a.11<:moriey·:orj,.Government Obl.igations set aside ; and
held in trust 'pursuant .to'.the provisions of this Section for
the payment of the Bonds-; 'the redemption premium, if any,
and interest _thereon, .. shall b~ app_lied to --and used for the
payment thereof,-· the ···",<redemption ·premium, if any, .. and
interest thereon .and the income on such money or Government
. -Obligations ~-sball~ot?fbe.Lcorisidered to be_:income.i'or .. zevenues~ -· :. · ;: ______ _
of the System. · · ·>"'"\i. •·• · · ·
SECTION 30: City Manager--Director of Finance to Have '·:'
Charge · of Records and 'Bonds. The City Manager and Director .'
of Finance shall be and they are hereby authorized to take
and have charge of al.l necessary orders and records pending
investigation .by the Attorney General of the State of Texas;
and shall take . and have charge and control of the Bonds
herein authorized pending their approval by the Attorney
General, their-registration by the comptroll.er· of Public
Accounts and delivery to the initial purchasers.
SECTION 31: Sale of Bonds. The Bonds are hereby
sold and shall be delivered to Rauscher Pierce Refsnes, Inc.
and Blyth Eas:tman. Paine Webber · Incorporated, on behalf 0£
the ultimate 'purclias'ers thereof, in accordance with the
Purchase Contract attached hereto as Exhibit A, which
Purchase Contract is hereby approved as · to form and
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substance and it is hereby found and determined by the City
Council that the price and terms specified in such Purchase
Contract are the most advantageous and reasonably obtainable
by the City. The Mayor and City Secretary are 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.
SECTION 32: Approval of Official Statement. The
Pr_elimi11ary_ Of'f;~iala.~"t:atement, dated May .4, 1983, relating ...
tc;''the ,''Bonds /~1:11{t substan.tfally the form submitted at this"·
meeting, is hereby approved and authorized. to be distributed
to the ultimate purchasers of the Bonds, with such changes
therein as . shal.l be approved by the Mayo_r or the City
Manager of the<.Ci ty and the distribution _ of the Preliminary ..
Official Statement, as · amended and supplemented in · final ··
form, to<conforn,i/;to . the[-tt:erms . of sale· of the Bonds is .hereby =-<· .. -
··in· al1·'·respects·".'~ratified; · confirmed and approved.·· .. · ·
SECTION 33: Proceeds of Sale. Delivery of the_ Bonds
shall occur at the Texas Commerce Bank-Dallas, N. A.,
Dallas, Texas, hereby designated as the Bank of Delivery.
Upon payment being made for the Bonds at the Bank of
Delivery, .. certain proceeds of sale ___ of. the ·Bonds shall be
transmitted _.iri.;;iimmediately available·· __ funds to the __ Texas
Commerce ·Bank, National Association~ Lubbock, Texas (the
· "Escrow Agent"), and such.-proceeds, less accrued interest on
the Bonds (which shall .be deposited_ in the Bond Fund), shall
be ·· used __ for ,:the purpose of refunding, ·• discharging and ·
retiring all of the Refunded Bonds and paying the costs and
... _· .·;_/ _:·-~----~~~_!l~es ,o~-,.!.!-SU!J-ll~~ . of .. th,.e...::_Bo11-ds.·i '.: _a~l, _AI1.~-a~cordaI19.~ __ ~i tjl __ ..
-.· and pursuant to written''instructions to the ·Bank of Delivery
,-.. and Escrow Agent from the City's Assistant City Manager for
Financial Services. .By . a resolution of the City Council
passed and adopted on May 12, 1983, · the City Council has
authorized the execution of a II Special Escrow Fund
Agreement" between the City and the Escrow Agent, whic'h
governs the use and application of said proceeds for purpose
of refunding, discharging and retiring of the Refunded
Bonds.
f"',.
SECTION 34: Pr:i.nted Legal Opinion on Bonds. That
the purchaser's obligation to accept delivery of the Bonds
is .. subject .. to ,their . being furnished a final opinion of
Messrs. Dumas·,, Hugueirl.n, Boothman and Morrow, Attorneys,
Dallas, . Texas, approving such Bonds as to their validity,
said opinion to be dated ·•·'and delivered as of the · date of
delivery and payment for such Bonds. Printing of a true and
correct copy of said opinion on. the reverse side of each of
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said Bonds with appropriate certificate pertaindi.ng thereto
executed by facsimile signature of the City Secretary is
hereby approved and authorized.-
SECTION 35: CUSIP Numbers. That CUSIP numbers may
be printed on the Bonds herein authorized. It is expressly
provided, however, . that the presence or absence of CUSIP
numbers on the Bonds shall be of no significance or effect
as regards the legality thereof and neither the C:ity nor the
attorneys".-approving/said :Bond_s as .•to legality ar.e to be held
· responsibl.e , fof/•:· cus1p:><nwnbers incorrectly printed on· the
Bonds.
SECTION 36~ Effective Date. This ordinance shall
take effect and · be , in .. force immediately from andl . after· its
passage, on second .. and final reading and IT IS .so ORDAINED • . :< :.:/_~.;,.::·.}:~:;~: ·::·-.;:>·=·;:··_;_;.c._.:·;·_;.~:-;-:~~~fi4;-~;~'·c;.·.:.;·.-::-~,~--·:·;~)C~;}}~)FO\:/ :-.. :~<;~:~·:?0i<.~ .. _u __ ._:·. ~-. , •• --.--~~--., • -· ------,_ ._ .. ___ _
.. ··-=~----'" ;_ • .....,,~--: _ _,_,~;;~~J;ff,: ~i~:-:.;,:,.:: __,.~~;\-=~~ ~:--:.' . -~.t.;'._--''·,v,
PASSED AND 'APPROVED .ON .FIRST READING, this 12th day of
· May, 1983.
PASSED AND APPROVED
of May, 1983.
_~-;
(City Seal)
Mayorv City
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PURCHASE CONTRACT RELATING TO
$10,770,000
CITY OF LUBBOCK, TEXAS
ELECTRIC LIGHT AND POWER SYSTEM
REFUNDING REVENUE BONDS
SERIES 1983
The Honorable Mayor and City Council
City of ,Lubbock ,,, ,
Lubbock, Texas
Dear· Mayor and Members of the Council:
The undersigned Rauscher Pierce Refsnes, Inc., and Blyth Eastman Paine
Webber lncorpo~at~d (hereinafter called the "Underwriters"), acting on behalf of
themselves, hereby offer to enter into this Purchase Contract with the City of
Lubbock, Texas, (hereinafter. sometimes called the "City"). This offer is made
subject to the City's acceptance of this Purchase Contract on or before 5:00
o'clock p.m., Central Daylight Time, on May 12, 1983, and if not so accepted,
will be subject to withdrawal by the Underwriters upon notice delivered to the
City at any time prior to the acceptance hereof by the City. The Underwriters
represent that Rauscher Pierce Ref snes, Inc. has been duly authorized by the
Underwriters to execute this Purchase Contract for the Underwriters.
· · 1. Upon the terms and conditions and upon the basis of the
representations set forth herein, the Underwriters, hereby agree to purchase
from the City, and the City hereby agrees to sell and deliver to the
Underwriters an aggregate of $10,770,000 principal amount of City of Lubbock,
Texas,_ Electric Light and Power System Refunding Revenue Bonds, Series 1983
(the "Bonds"). The Bonds shall be dated May 15, 1983, and shall have the
maturities and bear interest from their date at the rate or rates per annum
shown on Exhibit .A hereto, such interest being payable on October 15, 1983, and
semiannually thereafter on April 15 and October 15 in each year until maturity
or earlier redemption. The purchase price for the Bonds shall -be $10,600,049.40
plus interest accrued on the Bonds from. their date to the date of the payment
for and delivery of the Bonds (such payment and delivery being herein sometimes
called the "Closing").
Exhibit B hereto is the Official Statement, including the cover page and
Appendices thereto, of the City, dated May 12, 1983, with respect to the Bonds.
The · Official Statement, including the cover page and the Appendices thereto, as
further amended only in the manner hereinafter provided, is hereinafter called
the "Official Statement."
2. The Bonds shall be described in and shall be issued and secured
under the provisions of the Ordinance adopted by the City on first reading on
May 12, 1983 and on second reading on May 13, 1983 (the "Ordinance"). The
Bonds shall be subject to redemption and shall be payable as provided in the
Ordinance.
3. 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 Ordinance be adopted on
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first and second reading as specified in paragraph 2 above and that the entir
$10,770,000 principal amount of the Bonds authorized by the Ordinance shall b
sold and delivered by the City and accepted and paid for by the Unrlerwriter
at the Closing. The Underwriters agree to make a bona fide public offering o
all of the Bonds, at not in excess of the initial public offering prices, as se
forth on the cover page of the Official Statement, plus interest accrued thereo:
from the date of the Bonds.
4. . The City hereby authorizes ·the Ordinance, the Official Statemen
and the information therein contained to be used by the Underwriters iJ
connection with the public offering and sale of the Bonds. The City-confirm
its consent to the use by the Underwriters prior to the date hereof of th4
Preliminary Official Statement, dated May 4, 1983 (the "Preliminary Officia
Statement"), in connection with the public offering of the Bonds.
5.
follows:
On the date hereof, the City represents, warrants and agrees a:
(a) · The City is a municipal corporation, a political sabdivisio1
of the S~te of Texas and a body politic and corporate, and has full lega
right, power and authority to enter into this Purchase Contract. to adop·,
the Ordinance, to sell the Bonds, and to-issue and deliver tl)e Bonds to thE
Underwriters as provided herein and to carry out and consummate al
other transactions contemplated by the Ordinance and . this PurchasE
Contract;
(b) By official action of the City prior to or concurrently witt
the acceptance hereof, the City has duly adopted the Ordinanc~ has dul~
authorized · and approved the execution and delivery of, and the perfor-
mance by the City of the obligations contained in the Bonds and thh
Purchase Contract and has duly authorized and approved the performance
by · the City of its obligations contained in the Ordinance and in thh
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 agreeme:nt, 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; and the execution and delivery of thi!i
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 Cit;y of its
obligations to sell and deliver the Bonds hereunder will have been obtained
prior to the Closing;
(e) At the time of the City's acceptance hereof, the· Official
Statement does not contain any untrue statement of a material fact or
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omit to state a material fact required to be stated therein or necessary
to make the statements therein, in the light of the circumstances under
which they were made, not misleading;
{f) Between the date of this Purchase Contract and the Closing,
the City will not, without the prior written consent of the Underwriters,
issue any additional bonds, notes or other obligations for borrowed money,·
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's combined electric light and power
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 to
their respective offices, or seeking to restrain or enjoin the issuance or
delivery of the Bonds~ or the collection of receipts or assets of the Cfty
pledged to pay the principal of and interest on the Bonds, or in any way
contesting or affecting the validity or enforceability of the Bonds, the
· Ordinance, or this Purchase Contract, or contesting the powers of the
City, or any authority for the· Bonds, the Ordinance, or this Purchase
Contract or contesting in any way the completeness, accuracy or fairness
of the Preliminary Official Statement or the Official Statement;
{h) The City will, at the -sole expense of the Underwriters,
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 its best efforts to continue such qualifications in effect so long as
required for distribution of the Bonds; provided, however, that the City
wil: not be required to execute a special or general consent to service of
process or-qualify to do business in connection with any such qualification
in any jurisdiction;
(i) The descriptions contained in the Official Statement of the
City's electric light and power system, the Bonds, and the Ordinance
accurately describe certain aspects of the System and certain Pl'.'OVisions
of such instruments, and the Bonds, when validly executed, registered and
delivered in accordance with the Ordinance and sold to the Underwriters
as provided herein, will be validly issued and -outstanding special
obligations of the City _entitled to the benefits of 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 City and
the Underwriters such event requires a supplement or amendment to the
Official Statement, · the City will supplement or amend ·the Official
Statement in a form and in a manner approved by the Underwriters and
Bond Counsel to the Cit_y.
6. At 10:00 a.m., Central Daylight Time, on June 15, 1983 (or on such
other date as may be mutually agreed upon by the City and the Underwriters,
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but not later than June 30, 1983} (the "Closing"), the City will deliver the Bonds
to the Underwriters in definitive form, duly executed, together with the other
documents hereinafter mentioned, and the Underwriters will accept such delivery
and pay the purchase price of the Bonds as set forth in Paragraph l hereof by
check or checks payable in immediately available funds to the order of the City.
Delivery and paytl}ent as aforesaid shall be made at Texas Commerce Bank -
Dallas N.A., Dallas, Texas, or such other place, as shall have been mutually
agreed upon by the City and the Underwriters. The Bonds shall be prepared and
delivered as coupon bonds in the denomination of $5,000 each; 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.
7. The Underwriters have entered into this Purchase C.Ontract 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 of the City and its obligations hereunder,
both as of the date hereof and as of the date of Closing. Accordingly, t.ne
Underwriters' oblig~tions under this Purchase Contract to purchase 8I!ld pay for
the Bonds shall be subject to the performance by the City of its obligations to
be_ pel_'formed 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 City1 contained
herein shall be true, complete and correct in all material respects at the
date hereof and on and as of the date of Closing, as if made cm the date
of Closing;.
(b) At the time of the Closing, the Ordinance shall be in full
force and· effe.t?t, and the Ordinance shall not have been amended,
modifiea, or supplemented and the Official Statement shall not bave been
amended, modified or supplemented, ·e,xcept as may have been agreed to
by the Underwriters; ·
(c) At the time of the Closing, all official action at. the City
related to the Ordinance shall be in full force and e_ffect and shall not
have been amended, modified or supplemented;
{d) The City shall not have failed to pay principal ar interest
when due on any of its outstanding e>bligations for borrowed money;
(e) At or prior to the Closing, the Underwriters shall have
received each of the following documents:
(1) The Official Statement of the City executed on
behalf of the City by the Mayor of the City;
(2) The Ordinance certified by the City Secretary 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 bond opinion in substantially the form
. attached hereto as Exhibit C, dated the date of Closing, of Messrs.
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Dumas, Huguenin, Bootqman & Morrow, Dallas, Texas, Bond
Counsel to the City;
(4) The supplemental op1mon of Messrs.· Dumas,
Huguenin, Boothman & Morrow, dated the date of Closing and
addres.sed to the Underwriters in substantially the form attached
hereto as Exhibit D.
(5) An unqualified opinion or certificate, dated on or
prior to the date of Closing, of the Attorney General of Texas,
approving the Bonds as requlred by law;
(6) The opinion, dated the date of Closing, of Messrs.
Hutchison Price Boyle & Brooks, Counsel to the Underwriters, in
form and substance satisfactory to the Underwriters;
(7) A certificate, dated the date of Closing, signed by
the Mayor 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 person, threatened in any court to restrain or enjoin the
issuance or delivery of the Bonds, or the collection of revenues and
assets of the City 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, the Ordinance, 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
sole discretion, accept certificates or opinions of the City
Attorney, that, in his opinion, the issues raised in any such pending
or threatened litigation are 'without substance or that the con-
tentions of all plaintiffs therein are without merit); and (iii) to the
best of his knowledge, no event a.ff ecting 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 Mayor
of the City that there has not been any material adverse change
in the financial condition of the System, including the Net
Revenues derived therefrom, since September 30, 1982. the latest
date as of which audited financial information is available and as
otherwise disclosed in the Official Statement;
(9) A. certificate of the City with respect to arbitrage in
form and substance satisfactory to the Underwl'iters;
(10) Such additional legal opinions, certificates, instru-
ments and other documents as the Underwriters may reasonably
request, including the opinion of the City Attorney, to evidence the
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truth, accuracy ~nd 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 tlhen to be satisfied by the
City; and .
(11) A copy of all proceedings oif the City relating to the
authorization of this Purchase Contract and to the authorization
and issuance of the Bonds, certified as trme, accurate and complete
by the City Secretary of the City.
All the opinions, letters, certifies tes, instrumemts 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
tne Underwriters. ,,,,..
If the City shall be unable to satisfy the condi.tions to the obligations of
the Underwriters to purchase, to accept delivery of emd to pay for the Bonds
contained in this Purchase Contract, or if the .obligatiom 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 tPurchase Contract shall
terminate and neither the Underwriters nor the City shall be under further
obligation hereunder, except ~hat: (i) the respective ob!Iigations of the City and
the Underwriters set forth in Paragraph 9 and 11 hereof shall continue in full
force and effect •
8. The Underwriters may terminate their Gtbligation to purchase at
any time before the Closing if any of the following sm.ould occur:
. (a) · (i)· Legislation shall have been elll!l.(Cted by the Congress of
the United States, or recommended to the Coogress for passage by the
President of the United States or favorably repcrited for passage to either
House of the Congress by any Committee of such Jlouse, or (ii) a decision ·
shall have been rendered by a court established! under Article m 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 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), would 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 in such a manner as in the judgment
of the Underwriters would materially impair Ute marketability or mate-
rially reduce the market price of obligations of tbe general character of
the Bonds.
(b) Legislation shall have been enacted by the Congress of the
United States to become effective on or prier to the Closing, or a
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decision of a court of the United States shall be rendered, or a ruling.
regulation or proposed regulation by or on behalf of the Securities and
Exchange Commission or other agency having jurisdiction over the subject
matters shall be issued or made, to the effect that the issuance, sale and
delivery of the Bonds, or any other obligations of any similar public body
of the general character of the City, is in violati"on of the Securities Act
of 1933, as amended, or the Securities Exchange Act of 1934, as amended,
or the execution and delivery of the Ordinance or any indenture of similar
character is in violation of the Trust Indenture Act of 1939, as amended,
or with the purpose or effect of otherwise prohibiting the issuance, sale
or delivery of the Bonds as contemplated hereby or by the Official
Statement or of obligations of the general character of the Bonds.
(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 rendered as to 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 genera.I 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 5(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 S_tate of
Texas.
9. Costs related to the issuance and sale of the Bonds shall be paid
out of the proceeds received from the sale of the Bonds which shall include the
fees and expenses of Bond Counsel, Texas Commerce Baruc, National Association,
Lubbock, Texas, as Escrow Agent, the fees and expenses of the City's Financial
Advisor, all costs incurred in connection with the printing and rating of the
Bonds, the printing and shipping of the Official Statement,. and the computer
calculations and the arithmetical verification of the yield on the Bonds and
related miscellaneous costs. The Underwriters shall pay their expenses incurred
in connection with the offering and distribution of the Bonds, including the fees
a.nd expenses of their counsel.
10. 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
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be given to the Underwriters under this Purchase Contract may be given by
delivering the same in writing to Rauscher Pierce Refsnes, Inc., Plaza of the
Americas, 2400 North Tower, Dallas, Texas 75201.
11. This Purchase Contract is made solely for the benefit of the City
and the Underwriters (including the successors or assigns of the Underwriters}
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 Bonds hereunder; and the City's representations
and warranties contained in Paragraph 5 of this Purchase Contract shall remain
operative and in full force and effect, regardless of any termination of this
Purchase Contract.
12. This Purchase Contract shall become effective upon the execution
of the acceptance hereof by the Mayor of the City and shall be valid and
enforceable as of. the time of such acceptance.
ACCEPTED":.
. I .... -11. /'""v, /I This ~day of ///11; , 1983
Very truly yours,
RAUSCHER PIERCE REFSNES, INC.
BLYTH ·EASTMAN PAINE WEBBER
INCORPORATED
By: Rauscher Pierce
CITY OF LUBBOCK, TEXAS .
as
f"',. [SEAL]
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EXHIBIT A
,,.. Maturity
Amount (April 15) Interest Rate
$840,000 1984 5.5096
690,000 1985 5.7596
665,000 1986 6.2596 ~ 645,000 1987 6.5096
625,000 1988 6.7596
605,000 1989 7.0096
585,000 1990 7.40%
570,000 1991 7.70%
,,... 565,000 1992 8.0096
555,000 1993 8.1596
545,000 1994 8.3096 -535,000 1995 8~4096
525,000 1996 8.5096
510,000 1997 8.6596 ,... 495,000 1998 8. 7596
480,000 1999 8.9096
465,000 2000 9.0096
445,000 2001 9.0096
425,000 2002 9.0096 ,...
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EXHIBIT B.
(Official Statement)
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EXHIBIT C
(Approving Opinion of Bond Counsel)
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EXHIBIT D
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OFFICIAL STATEMENT
Dated May 12, 1983
INTEREST EXEMPT, IN THE OPINION OF BONO COUNSEL,
FROM PRESENT FEDERAL INCOME TAXES UNDER LAW
-$10,770,000
CITY OF LUBBOCK, TEXAS
(Lubboct County)
ELECTRIC LIGHT AND POWER SYSTEM
REFUNDING REVENUE BONDS, SERIES 1983
Dated: May 15, 1983 Denomination: $5,000
Principal and semi"".annual interest ·(April 15 and October 15) payable at .
Citibank, N. A., New York, New York,
or, at the option of the holder, at
Texas Commerce _Bank, National .Association, Lubbock, Texas.
First interest coupon due October 15, 1983.
Coupon bearer bonds, not registrable.
These bonds (the "Bonds") will be authorized by ordinance (the "Ordinance") as authorized by
the General Laws of the State of Texas, pursuant to authority of Article 717k, V.A.T.C.S., and
will _ constitute, together with outstanding Electric Light and Power System Revenue Bonds (ex-
cluding the bonds being refunded), special obligations of the City of Lubbock, Texas, payable,
both as to principal and interest, solely from and secured by a first lien on and pledge of ttie
revenues of the Electric Light and Power System, after deduction of reasonable expenses of
operation and maintenance.
--The proceeds of the Bonds _will be used to provide moneys .which will be sufficient to refund the
City's Electric Light and Power System Revenue Bonds, Series 1981 (the "Refunded Bonds"),
originally issued in the amount of $9,000,000, and now outstanding in the amount of $8,550,000,
and to pay the costs related to the issuance of the Series 1983 Bonds.
MATURITY SCHEDULE
Amount Maturit~ Rate Price Amount Maturii Rate Price
$840,000 4-15-198 ~ 100 $545,000 4-15-19 * s.!0% 100 -690,000 4-15-1985 5.75% 100 535,000 4-15-1995* 8.40% 100
665,000 4-15-1986 6.25% 100 525,000 4-15-1996* 8.50% 100 645,000 4-15-1987 6.50% 100 510,000 4-15-1997* 8.65% 100
625,000 4-15-1988 6.75% 100 495,000 4-15-1998* 8.75% 100
605,000 4-15:-1989 7.00% 100 480,000 4-15-1999* 8.90% 100
585,000 4-15-1990 7.40% 100 465,000 4-15-2000* 9.00% 100 570,000 4-15-1991 7.70% 100 445,000 4-15-2001* 9.00% 100
565,000 4-15-1992 8.00% 100 425,000 • 4-15-2002* 9.00% 100 555,000 4-15-1993 8.15% 100
* The City reserves the right, at its option, to red.eem Bonds maturing April 15, 1994, through
April 15, 2002, both inclusive, in whole or any part thereof, on April 15, 1993, or any interest
payment date thereafter, at the par value thereof plus accrued interest to the date fixed for
redemption.
The Bonds are offered when, as and if issued subject to the approval of legality by the Attorney
General of the State of Texas and Messrs. Dumas, Huguenin, Boothman & Morrow, Bond Counsel.
Certain legal matters are subject to the approval of Messrs. Hutchison Price Boyle & Brooks,
Counsel to the Underwriters. Opinion printed on the Bonds; see legal opinions.
Payment Record:. The City has never defaulted.
Delivery: Anticipated on or about June 15, 1983.
RAUSCHER PIERCE REFSNES, INC. BLYTH EASTMAN PAINE WEBBER INCORPORATED
This Official Statement does not constitute an offer to sell Bonds in any jurisdiction to any person to whom it is
unlawful to make such offer in such jurisdiction. No dealer, salesman, or any other person has been authorized to
give any information or make any representation, other than those contained herein, in connection with the offering
of these Bonds, and if given-or made, such information or representation must not be relied upon. The information
and expressions of opinion herein are subject to change without notice and neither the delivery of this Official
Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no
change in the affairs of the City since the date hereof.
TABLE OF CONTENTS
Page
Official Statement:
:oescription of the Bonds------------------------------------------------·-----1
Elected Officials---------------------------------------------------------------3 Appointed Officials--------------:.. _______ ... _____________________ ,. ______ ""_~-------3 Consultants and Advisors __________ .,. ____ .:,; ___ __. _________ .,_ ...... ,._____________________ 3
Introductory Statement ---------------__ .;. __ ------------·--... __ -------------,----:._ -4/ 5
Refunding Pl an --· ' -· -· --, .. ----·· ·--· --. ----' ·--------· -· ------· · -----------5/6
Electric Light and Power System -Operating Statement ---------------------------'.6/7 Coverage and Fund Ba 1 ances _________ : __ ;._ ... _:_ ___________ ;._________________________ 7
Debt Service Requirements ------------------------------------,-------7----------8 . Value of the System -------------'------------·------'--------,----------------·:-------9
City's Equity in Electric Light and Power System ------------"------.-----------,--9
Authotized Revenue Bonds------------.. -----------,--------------------------------· 10 Lubbock Power and Light-----'"'----------------.. -------:-----.,.-:..:-----------:-----;,.-10/12
· Electric Rtte~ --------------------------------------------------------------12/15 Bi 11 i ngs ---·--· ·. ------------------------·----· ---------·-----------· ---. --· · -15
Average Monthly 1981/82 Customer Usage and Billings----------------------------16 Lubbock Power and Light -Ten Largest Customers ______________ '."_________________ 16
-Analysis of: Electric ·. Bi 11 s ---------------------.. -----------------------,----"'.'---. 17
Stat ist ica 1 Data ----------------------· -----------· --. ---------·-----------.17 -Selected Provisions of the Ordinance-------------------------------------:-------18/24 General Information Regarding· the City and Its Economy __________________ -_____ ... :.. 25/31
Ratings----------------------------------.------------------------------------32
Tax Exemption----------------------------------------------------------------32 Verification of Arithmetical and Mathematical Computations -----------------:-.----32
Regi st rat ion and Qua l if i cation of Bonds for Sa 1 e -----------.--------------.""------32 Legal Investments and Eligibility to Secure Public Funds in Texas --7-----------_ __ 33 Legal Matters and No-Litigation Certificate ----------------7--------------------· -· ---33
Authenticity of Financial Information------------------------------------------33
Underwriting ----------------------------------------------------------------33 Financial Advisor---------------------------------------------------------""------33 Cert ifi c:at ion of the Official Statement ____________________________ , ____ ;._______ 34
Appendices: .. Appendix A: Audited Financial Statements -Electric Revenue Fund,
September 30, 1982, examined l>y Mason, Nickels & Warner,
Certified Public Accountants
Appendix B: Form of Bond Counsel's Opinion
Appendix C: Information Concerning General Obligation Bonds,
Valuations, Taxes and Pension Funds
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City Council
Bi 11 McA 1 i ster
Alan Henry
Mayor Pro-Tern
Joan Baker Councilwoman .
M. J. Aderton
Councilman
E. Jack Brown
Councilman
ELECTED OFFICIALS · :
Term
Length of Service
Elected Mayor Aprils. 1980;
Exeires*
April 1984
served 4 years previously as
City Councilman
9 Years · April 1986
3 Years April 1984
5 Years April 1986
3 Years April 1984
* See "Introductory Statement", pages 4 and 5.
Name Larry J. Cunningham
· Jim c. Blagg
John C. Ross, Jr.
Evelyn E. Gaffga
J. Robert Massengale
Rita P. Harmon
James E. Bertram
Bob Cass
Samuel W. Wahl
Carro 11 McDonald
Thomas J. Nichols
APPOINTED OFFICIALS
Position
City Manager
Deputy City Manager
City Attorney
Secretary-Treasurer
Assistant City Manager for
Financial Services
Assistant City Manager for
· Management Services
Assistant City Manager for Development Services
1\ssistant City Manager for
Public Safety and Services
Director of Water Utilities
Director of Electric Utilities
Chief of Police
Occueation :
President and Co-Owner. KAMC-TV
Alan Henry Insurance Agency
Homemaker
Retired Chairman of the Board,
Snook & Aderton. Inc.
President, Brown McKee. Inc.
Length of Time
In This Position 6 Years
Appointed 10/82
· '4 Years
4 Years
Appointed 10/82
Appointed 10/82
Appointed 10/82
Appointed 10/82
13 Years
4 Years Appointed 2/83
Length of
Employment
With City of Lubbock 16 Years
6 Years
4 Years
4 Years
3 Years
·7 Years
14 Years
7 Years
30 Years
4 Years
Appointed
2/83
CONSULTANTS AND ADVISORS
Auditors-----------------------------------------------------Mason, Nickels & Warner, CPA's Lubbock, Texas
Bond Counsel---------------------------------------------Dumas,. Huguenin, Boothman & Morrow
Dallas. Texas
Consultants and Engineers, .Water Treatment Plant
Expansion and Airport----..:---------------------------------------Parkhill, Smith & Cooper
Lubbock, Texas
Engineers for Generator System------------------------------------------------Tippett & Gee Abilene, Texas
Engineers for 50 Year Water Supply---------------------------------Freese and Nichols. Inc.
Fort Worth, Texas
Engineers for Transmission Lines and Substations-------~-----------Hicks & Ragland Company
Lubbock, Texas
Financial Advisor--------------------------------------------------First Southwest Company Dallas, Texas
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INTRODUCTORY STATEMENT
This Official Statement of the City of Lubbock, Texas (the "City"), a political subdivision
located in Lubbock County, is provided to furnish information in connection with the sale of
the City's $10,770,000 Electric Light and Power System Refunding Revenue Bonds; Series 1983
(the "Bonds").
The Official Statement was prepared to present for the purchaser of the Bonds information
concerning the Bonds, the refunding plan, the revenues of the Electric Light and Power System
pledged to the payment of the Bonds, the description of the revenue base, factors that may
affect pledged revenues, and other pertinent data, all as more fully described herein.
Purpose ••• The proceeds of the Bonds will be used to provide moneys which will be sufficient to
refund the City's Electric Light and Power System Revenue Bonds, Series 1981 (the "Refunded
Bonds"), originally issued in the amount of $9,000,000, and now outstanding in the amount of
$8,550,000, and to pay the· costs related to the issuance of the Bonds.
Source of Pa~ent ••• The Bonds are special obligations payabl'e, .both as to principal and
interest, soley from and secured by a first lien on and pledge of the revenues of the Electric
Light and Power System after deduction of reasonable expenses of operation and maintenance.
Future Bond Issues ••• The City has no plans to sel 1 additional Electric Light and Power System
Revenue Bonds this year, but does contemplate selling bonds in 1984.
Administration of the City ••• The City operates under a Home Rule Charter which was approved
by the electorate December 27, 1917, and thereafter amended from time to time. The Charter
provides for the Council-Manager form of government for the City. Policy-making and super-
visory functions are the responsibility of and vested in the Mayor and City Council.
Litigation Concernin~ the At-Large System for the Election of Citt Council Members ••• Since 1917, under the provisions of the City of Lubbock's Home Rule Char er, the four members of the
City Council and the Mayor have been elected at-1 arge, majority vote required, for each
posit ion.
On January 20, 1983, in Civil Action No. CA-5-76-34, Rev. Roy Jones, et al., City of Lubbock;
Texas, Plantiffs v. City of Lubbock, Texas, the United States District Court for the Northern
District of Texas, Lubbock Division (Halbert O. Woodward, Chief Judge, Northern District of
Texas) ruled that the at-large system for the election .of City Council members in the City of
Lubbock violates the Fifteenth Amendment of the Constitution of 'the United States and the
Voting Rights Act of 1965, as amended on June 29, 1982.
The Court prepared and attached to the Order two proposed plans for creating single member
districts for election of City Council members: (1) a four-member plan, and (2) a six-member
plan, both prepared by the Court from stipulated statistics and evidence, with the Mayor, under
both pl ans, elected at 1 arge. ·
On March 4, 1983, the Court entered its Final Judgment. The Final Judgment orders that:
1. Co1T111encing with the regular city elections to be held in April, 1984, the City Council
shall be comprised of six members, each elected from geographical districts drawn by the Court,
and a Mayor, elected at-large. Each council candidate must be a resident of his district at
time of filing, and, if elected, must continue to reside therein during his term of office.
2. The mayor shall serve for a period of two years, to be elected initially at the City
election to be held in April, 1984, and every two years thereafter •.
3. City councilmen shall be elected for terms of four years, except:
(1) Councilmen from Districts 1, 3, and 5 shall initially be elected for a two year
term co1T111encing in April, 1984, and for four year terms commencing in April, 1986.
(2) Councilmen from Districts 2, 4, and 6 shall be elected for four year terms
co1T111encing April, 1984.
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4. In the case of the six councilmen, only qualified voters who are bona fide residents
within a district may vote for or against the. candidates running for councilman in · that
district. The mayor is to be elected at-large by a majority vote of all the qualified voters in
the City.
5. Each councilman and the mayor shall have a vote on all matters; the City Council shall
set its own rules of procedure, including establishment of a quorum for transacting business
and the resolution of a tje-vote.
6. The members of the City Council shall elect a mayor pro tern from among its own members at the first regular meeting of the City Council after the newly elected members have qualified
and taken their seat.
Note: The Court's plan is based on an ideal district population of 28,997 (based on the 1980
U.S. Census population of 173,979). As established by the Courf in Exhibit A of the Final
Judgment, greatest population was in District 3 (30,580) and lowest population was in District
4 (27,260). Generally, District boundaries are set by a grouping of election precincts. In the
Court's opinion this plan substantially complies with the one man-one vote requirement.
The City on March 31, 1983 decided to appeal the Final Judgment.
REFUNDING PLAN
The Ordinance provides that the proceeds from the sale of the Bonds, net of financing expenses
and underwriting discount, will be held by Texas Corrmerce Bank, National Association, Lubbock,
Texas (the l'Escrow Agent"), in an .escrow account (the "Escrow Fund"), and used to purchase
direct obligations of the United States of America (the "Federal Securities"). Ernst &
Whinney, Certified Public Accountants, will verify at the time of delivery that the Federal
Securities will mature at such time and yield interest in such amounts, such that together with
uninvested funds, will be sufficient to pay, when due, the principal and interest on the
Refunded Bonds.
Under a certain Special Escrow Fund Agreement, dated as of the date of delivery of the Bonds,
between the City and the Escrow Agent (the "Escrow Agreement"), the Escrow Fund is. irrevocably
pledged to the payment of principal and interest on the Refunded Bonds.
By the deposit of the Federal Securities with the Escrow Agent pursuant to the Escrow Agree-
ment, the City will have defeased the lien on and pledge of the net revenues securing the
payment of the Refunded Bonds. In the opinion of Bond Counsel, as a result of such defeasance,
the Refunded Bonds will no longer be payable from, or secured by a lien on, the revenues of the
System but will be payable solely from the principal of and interest on the Federal Securities
held for such purpose by the Escrow Agent, and the lien securing the payment of the Refunded
Bonds, together with all other obligations of the City to .the holders ·of the Refunded Bonds
under the ordinance pursuant to which the Refunded Bonds were issued, will be discharged • .
All of the Refunded Bonds will be called for .redemption at the par value thereof on April 15, 1991. .
The Series 1981 Bonds are the only series of. City of Lubbock Electric Light and Power System
Revenue Bonds being refunded. There remain outstanding the unmatured Series 1964, 1965, 1973,
1975, 1975-A and 1976 Bonds •. The bond covenants set out. in the ordinances authorizing these bonds are not being modified or altered, and the Bonds are being issued on a parity with the
outstanding bonds. The ~eries 1981 Bonds .are being refunded to effect an interest s·avings.
- 5 -
Source . and Application of Funds ••• · The proceeds fr!)m the . sa l.e of the Bonds will be applied as
follows:
Source
---r>roc"eeds From Sale of Bonds
Accrued Interest from May 15, 1983
to June 15, 1983
Total
Use Cost of Escrow Investments
Beginning Cash in Escrow Issuance Expenses
Underwriter's Discount
Available for Interest and Sinking Fund Total ·
ELECTRIC LIGHT AND POWER SYSTEM
$10,770,000.00
. 68,050.83
$10,838.050.83
$10,497,600.00
71.55
100,225.00
169,950.60 .
70,203.68
$10.838.050.83
Operating Statement for Past Five Fiscal .Years
Fiscal Year Ended 9-30-82 ·9-30-81 9-30-80 9-30-79 9-30-78
OPERATIN~ INCOME
Metered Sales $39,890,883* $30,113,232 $26,077,709 $21,109,705 ·$20,153,034
Municipal Sales . e:O'"'. 3,889,496 3,082,155 2,510,013 2,294,684 _ Non-Operating Income · 1,7981852 690,388 731 2676 '826,106 624,791
TOTAL INCOME -$.U,689,735 $3it,693,II6 S29,M1,sito $2it.~it5,82it $23,072,509
.OPERATING EXPENSE
$17,956,119 Production $30,110,696 $27,551,799 $22,490,802 $15,566,681
Electric Distribution 1,743,827' 1,554,206 . 1,270,853 1,159,884 1,022,227
Utility Collections 881,071 765,206 668,440 582,617 454,623
-Promotion 396,187 347,132 306,735 286,567 233,569
Administrative 201,043 175,484 134.021 92.292 78,143
TOTAL EXPENSE $33,332,82it $30,393,827 · $2it 18?0,8Sl $20,07?,it79 . U7,355,2U
NET INCOME AVAILABLE
FOR DEBT SERVICE $8,356.911 $4,299,289" $ 5,020,689 $4,368,345 . $ 5,717,266
ELECTRIC CONNECTIONS 34,610 33,370 . 32,051 30,390 :29,204
* Includes metered and municipal sales.
lncome and Expense .for 6 Months
Period Ending 3-31-83 and 3-31-82
OPERATING INCOME
General Customer Sales Municipal .S.ales .
Less: Refunds and Allowances
. Non-Operating . Income TOTAL INCOME
OPERATING EXPENSE
Personal Services Power Plant Fuel
Purchased Power
Other Supplies
Maintenance
Other Charges
TOTAL EXPENSE
NET INCOME AVAILABLE FOR
DEBT SERVICE
ELECTRIC CONNECTIONS
Budget Actual
3-31-83 3-31-83 3-31-82
$17,535,878 $17,833,834 $16,002,591
2,028,755 -2,041,275 2,064,617
{44,000) (59,039) -(66,532)
826,348 1,186,781 1,415,609
$20,3it6,981 $21,002,851 , U9,it16,285
$ 2,203,552
11,197,458
2,164,052
424,242
152,850
709,686
$16,851,Mo
· $ 3,495,141
-6.,-
$2,008,194
11,727,160
2,673,485
268,181
171,444
770,774
$17,619.238
$ 3.383,613
35,612
$1,863,730
10,746,335
1,346,416
246,191
162,049
604,440
$1it,969,161
$ 4.447,124
34,192
(
Note: The decrease in net income from the first six months of last year compared to the first six months of the current year is caused by several reasons; the three major significant ones
are as follows:
1. The ordinance that establishes the formula for the fuel pass through does not allow
the City to pass through the entire cost of the purchase • power _ from Southwestern
Public Service Company. The only pass through that the City has is the fuel portion of that purchased power. ·· ·
2. Inflation costs for the past year also contribute to the decrease in net income.
3~ Decrease in interest earnings because of fewer construction funds on hand for invest-
ment and also the decrease i n interest ra.tes on .investments.
Members of the City's staff are preparing ·a reconmendation to be submitted to the City Council
in the near future, requesting a change in the ordinance to -pass through the entire purchase
power cost in the fuel cost adjustment pass through.
Source: Department of Finance, City of Lubbock, Texas.
·. Pro ected Income and Ex erise
For ,sea --Year En - 3
INCOME .
General Customer Sales
Municipal Sales
Less: Refunds and Allowances
Non-Operating Income
TOTAL INCOME
OPERATING EXPENSE
Personal Services
Power Plant Fuel
Purchased Power
Other Supplies
Maintenance Other Charges
TOTAL EXPENSE
NET INCOME AVAILABLE FOR DEBT SERVICE .
Source: Department of Finance, City of Lubbock, Texas.
$39,854,269
. 4,610,809 .
. (100,000)
1,873.442
$46,238.520 .
$5,508,881
25,448,769
4,918,302
1,060,605
. 452,221
1,774,216 $39,162,994
$ 7,075,526
COVERAGE AND FUND BALANCES
Net Income, Fiscal Year Ended 9-30-82 ---------------------:---------------------$8,356,911
Projected Net Income, Fiscal Year Ending 9-30-83 --.. -:-:--------------------------$ 7,075,526
Average Annual -Principal and Interest Requirements, 1984/2002 (including the Bonds)--------------------------------------~~---------.:. ______ .;. __________ $ 1,823,189
Coverage by Net Income, Fiscal Year Ending 9-30-82 -----~-----~-----------------4.58 Times Coverage by Projected Net Income, Fiscal Year Ending 9-30-83 -------------------3.88 Times
Maximum Principal and Interest Requirements, 1984 ______________ _. _______________ $ 3,471,190
Coverage by Net Income, Fiscal Year Ended 9-30-82 --------------------.:.---------2.41 Times Coverage by Projected Net Income, Fi_scal Year Ending 9 .. 30-83 -.:-__ :_ __ ;..___________ 2.04 Times ·
Electric Light and Power System Revenue Bonds to be Outstanding After
Issuance of these Bonds (secured by first lien on and pledge of the net revenues of the System)(does not include the Refunded Bonds) ____ :_ ________ $22,350,000
Interest and Sinking Fund, 4-15-83* .., _______ "'.'"" __________________________________ $ 26,198
Reserve Fund, 4:-15-83** __________ ,;. ____ _."'.' __ "". ______________ .;. __ :---------;;;_., _______ $1,752,340
* After payment, on 4-15-83, of $1,615,000 principal and $945,184 interest, a total of
$2,560,184 due 4-15-83.
** The Reserve Fund is presently being increased to $2,007,000 by equal monthly ·installments
of $6,367.00; these payments will continue upon issuance of these Bonds.
- 7 -
DEBT SERVICE REQUIREMENTS YEAR % OF ENDING OUTSTANDING BONDS THE BONDS GRAND. TOTAL PRINCIPAL 9/30· ·PRINCIPAL INTEREST TOTAL · PRINCIPAL INTEREST TOTAL ~IREMENTS RETIRED I 1983 $ 1,390,000 $ 714,781 $ 2,104,781 $. $ $ $ 2,104,781 1984 1,240,000 642,631 1,882,631 840,000 748,559 1,588,559 3,471,190 1985 1,090,000 577,587 1,667,587 690,000 770,410 1,460;410 3,127,997 1986 940,000 522,230 1,462,230 665,000 730,735 1,395,735 2,857,965 1987 940,000 471,280 1,411,280 645,000 689,173 1,334,173 2,745,453 35.42% 1988 940,000 419,550· 1,359,550 625,000 647,248 1,272,248 2,631,798 1989 940.000 367,200 1,307,200 605.000 605,060 1.210;060 2,517.260 1990 940.000 314,330 1,254,330 585.000 562,710 1,147,710 2,402,040 1991 940,000 260.630 1;200.630 570,000 519.420 1,089,420 2,290,050 • <:;,:, 1992 .940,000 206,100 1.146.100 565.000 475,530 1,040,530 2,186,630 67.52% 1993 940,000 151,150 1,091,150 555.000 430,330 985.330 2,076.480 1994 640,000 100,900 740.900 545.000 385,098 930,098 1.670,998 ·1995 640.000 65,650 705,650 535.000 339,863 874,863 1,580,513 1996 320.,000 32,500: 352,500 525,000 294,923 819,923 1.172.423 1997 • 220,000 13,750 233,750 510,000 250.298 760,298 . 994.048 90.31% 1998 .. 495,000 206,183 701,183 701,183 1999 ·480~000 162,870 642,870 642.870 2000 465-~000 . 120,150 585,150 585.150 2001 445,000 78,300 523,300 523,300 2002 425.000 38,250 463,250 463,250 100.00% $13,060,000 $ 4,860,269 $17,920,269 $10,110.000 $ 8.055,110 $ 18,825,110 .$ 36.745,379 Not~: Interest on the Bonds computed at .the interest rates as set forth on the cover page.
VALUE .. OF THE SYSTEM Fiscal Year Ended 9-30-82 9-30-81 9-30-80 9-30-:79. ' 9-30-78 Land and Betterments $ 475,485 $ 445,227 $ 246,201 $ 246,201 · $ 246,201 Less: Provision for Depreciation . 51976 51678 52388 . 51099 42385 $ 4i>925M $ 4391549 $ 2402S13 241 .1o2 2412S16 . Building and Improvements $ 1,667,191 $ 1,667,191 $ 1,667,191 $ 1,756,460 $ 1,667,191 Less: Provision for Depreciation 884,102 850,829 816,843 783,515 741,165 $ 1B3.lffl9 $ . Bl61362 s Mo.Ms s 972,945 $ 926.026 Improvements Other Than Buildings $65,169,949 $51,512,765 $ 54,995,2M· · $ 41,575,450 $43,559,148 Less: Provision for Depreciation 25,721,152 2410091483 22,303,637 2016751309 181992,602 $ 39,3BB,191 $ 33,5031282 $ 32,6911661 $ 26z900zin $ 2415661546 Machinery and Equipment $ 1,144,IsG $ 1,379,369 $ 1,196,560 $ 1,304,224 $ 1,036,079 Less: Provision for Depreciation 9391973 847.214 739,761 670.542 484,159 $ M41213 $ 532.155 $ 456,799 $ 633,682 $ 551,920 Value after Depreciation $ 41,4451608 $ 35.291,348 $34,239,621 $28,747.870 $ 26,286,308 CITY'S EQUITY IN ELECTRIC LIGHT AND POWER SYSTEM Fiscal Year Ended 9-30-82 9-30-81 9-30-80 9-30-79 -· 9-30-78 Electric Light Plant $ 68,996,811 $61,004,552 $ 58,105,250 $50,882,335 $46,508,619 Less: Accumulated Depreciation (27,551.203) (25,713,204) (23,865,629) (221134,465) ·. (20,2221311) 1,0 $41,445,608 $35,291,348 $ 34,239,621 $28,747,870 ·s 26,286,30B Plus: Construction Work in Progress 1,749,087 5,435,624 4~412,231 9,277,198 10,854,445 Cap.it a 1 Projects Fund 5,371,296 9,396,314 21365,359 2,6941803 3,755,340 Electric Light Plant-Net $48,565.991 $ 50.123.286 $41,017,211 $ 401]192871 s· 4018961093 Net Debt Revenue Bonds Outstanding $ 22,060,000 $23,450,000 $15,840,000 $17,230,000 $18,620,000 Repayable Advance from General -· Fund 712561635 8,206,635 · 41506,635 3,650,635 2,607,000 s 29,316,635 $31,656,635 s 20,346,635 $ 2o,BB0,635 $21,227,000 Less: Interest and Sinking and Reserve Fund 31289,804 3,0441158 3.376,461 4,2731711 3,500.403 Net Debt $ 26.026,831 $ 28,612,477 $16,970,174 $16,606,924 $ 171726z597 City's Equity in Electric Light Plant $22,539,160 $ 21.510.809 $ 241047.037 $ 24,112.947. $ 23.1691496 Percentage of. City's Equity in Plant 46.41% 42.9~ 58.63% 59.22% 56.65%
AUTHORIZED REVENUE BONDS
The City has no authorized but unissued Electric Light and Power. Sy~tem 1teven_ue Bonds, but
contemplates selling additional electric light .and power system revenue bonds in 1984. ,, . . ' . ..
I )··
LUBBOCK POWER AND LIGHT 1i
. ' . ii . . '
Lubbock Power and Light was established in 1916~ and is pre~ently the largest munlcipal system
in the;West Texas region and the third largest in the State !of Texas •.. Lubbock Power. and· Light
and Southwestern Public Service Company ("Southwestern Public Service"), a privately owned
utility .company operating within the corporate· limits of the City, each provide. electric
service to residents and businesses of the City. The entire area of the City is covered byboth
systems, each of which have parallel lines throughout·the Ctty. Electric; rates in the City are
set bi City Council Ordinance and are the same for lubbock Power and Light 1'-nd Southwestern PubliciService. · · · · ·
Southwestern Public Service was granted a new 20-year franchise fo 1982. The company pays the
City a franchise tax of 2% of its gross receipts which is deposited _into the City's General
Fund. At present, Southwestern Public Service supplies power to approximately 50% of the
customers in Lubbock. ·
Lubbock Power . and Light generates part of its power requirements through I the use of two
generating stations located within the City. These plants are geographically separated from
one to seven miles and deliver bulk power to substations through a 69 KV transmission loop
system.
In December, 1981 the City corrrnenced buying 10 MW of power through an interconnection with
Southwestern Public Service. In February, 1982 this was increased to 15 MW. ·
Generating Stations ••• The total generating capacity of Lubbock Power and Light is 216,500 KW.
Gas turbines and internal combustion generators provide the system with 55,500 KW of ready
reserve and quick-start generation for emergency and peaking service. Generating units consii,t
of the following:
Manufacturer
Nordberg
Nordberg
Westinghouse
Westinghouse
Westinghouse
Westinghouse
Westinghouse
General Electric
Worthington
General Electric
General Electric
Year
Installed
1946
1947
1952
1953
1957*
1958
1964
1965
1971
1974
1978
Station 2
2
2
2
2
2
Holly
Holly
Holly
Holly
Holly
Prime Mover
Diesel
Diesel
Steam Turbine
Steam Turbine
Steam Turbine
Steam Turbine
Gas Turbine
Steam Turbine
Gas Turbine
Gas Turbine
Steam Turbine
Fuel
Dual Fuel
Dual Fuel
Gas or Oil
Gas or Oil
Gas or Oil
Gas or Oil
Gas or Oil
Gas or Oil
.Gas or Oil
Gas or Oil
Gas or Oil
Generator
Capacity
in KW 2,500
2,500
11,500
. 11,500 . 22,000
22,000
12,500
44,000
18,000
20,000
50,000 216,500
* The 1957 Westinghouse unit was damaged ina recent explosion and is not presently available
for service. The City has received $414,260 in insurance proceeds, $50,000 of which has been
set aside for repair of the unit. The remaining $364,260 has been deposited to the System Fund.
Lubbock Power and Light employees will repair the unit as time is available, and it cannot now
be determined when the unit will be returned to service.
Since the completion of the interconnection with Southwestern Public Service, Station 2 has
been kept on standby and will be used in the future for peak power purposes only.
Transmission· and Distribution ... A 69,000 volt (69 KV) transmission loop system, 38.25 miles
in length, provides bulk power to six 20 MVA-69,000/12470 volt-substations. A second 69 KV
transmission loop system insulated for operation at 115 KV is under construction. As of
January, 1983, 13.94 miles of 115 KV insulated transmission line have been constructed. A 3.3
mne 230 KV transmission line ties Lubbock Power and Light to Southwestern Public Service.
-10 -
The distribution system includes approximately 639 miles of overhead· distribution lines and
approximately 110 miles of underground distribution lines. There are twelve 12.470/4160 volt
substations in the ·d1stribution system. Net system load for Fiscal Year Ending September 30.
1982 was 708.070,860, KWH with a peak demand of 151.000 KW. ·
. . . . ~· . '-' . ' .
Construction Program ••• A major transmission system and distribution system construction and
improvement program is under way utilizing proceeds of the Refunded Bonds. A brief :description
of such program is set forth below.
Transmission System ••• The transmission system program includes upgrading of 3 major substa-
tions, extension of a 69 KV transmission Hne. extension of a second circuit of can :existing 115
KV transmission line, construction of a major .substation in Northeast Lubbock. upgrading of
computer capabilities, and installation of remotes in all major substations to. fully coordinate
relay and line switching capabilities. The upgrading of the substations and the extension of
the 69 KV transmission line was completed in September,.1982.: The :remainder of the items are
still under construction.
Distribution System ••• The distribution system program includes extension of and improvements
to the existing distribution .system including additional distribution circuits for sub-
stations, extensions to new service areas, transformers, meter pedestals. poles and crossarms,
regulators, capacitors, meters, service lines and other appurtenances.
Interconnection ••• An _ interconnection with Southwestern -Public Service has_ been completed and
the City conrnenced buying power from Southwestern Public Service on December 1~ 1981. Lubbock
Power and Light has contracted with Southwestern Public Servi.ce for ; the purchase of 10 MW of
power. In February, 1982. the purchase amount was increased to 15 MW. The contract allows
purchase of up to 100 MW upon proper notice. Southwestern Public Service operates in the City
under a franchise and serves an area covering the Panhandle and South Plains of Texas and parts
of Eastern New Mexico with an integrated electric generating and distribution system.
Fuel Suaply "'" Primary fuel supply for Lubbock's generating system is natural gas which is
supplie by Westar Transmission Company and Energas Company, divisions of Pioneer Corporation,
Amarillo, Texas, under long term contracts. ___ Secondary fuel in the form ·of fuel oil is
maintained in storage in the City.
Due to transmission system limitations, some brief curtailments of natural gas supplies have
_ been experienced in the past few years, and some 50% to 70% short duration (48 hours or less)
curtailments, during peak gas usage periods, may be experienced in the future. No curtailments
in excess of 70% are projected by Westar and Energas nor will total annual curtailment exceed 5%
of annual volume.
The City's present storage capacity of fuel oil, for standby, secon~ary fuel, is over 1,500,000
gallons and an adequate supply of fuel oil for 10 days' operation at 50% natural gas curtailment
. is maintained in inventory at all times; with expected resupply, this period would be sub-
stantially extended. The newest Holly steam generator has a multi-fuel capability as it is
designed to burn natural gas or all grades of fuel oil.
In the City's opinion. its fuel supply ts .favorably positioned due to the long term. natural gas
reserves presently owned, contracted for and under development by Westar and Energas.
Carbon Dioxide Recover¥ ••• The Carbon-Dioxide Technology Corporation, H·ouston, Texas, has _
constructed a carbon d10xide (CO2) recovery plant on a three acre site adjacent to the Holly
Plant. CO2 :is being recovered from Holly Plant stack gasses. for use in a tertiary-level on
recovery program ; in nearby . Garza County fields. The estimated cost of the plant was
$30.000,000, and the estimated annual revenues to Lubbock Power and Light include $360,000 from
the sale of CO2. and $150,000 from the sale of electric power. The CO2 recovery plant project
was completed and began operations in December.-1982.
Fuel Supply Contract with Westar Transmission Company and Energas Company
The City's current fuel supply contracts with Westar Transmission Company and Energas Company
("Westar/Energas"}, divisions of Pioneer Corporation, Amarillo, Texas, dated December 12,
1979, as amended December 10, 1981, such amendments effective January 1. 1982. provide, among
other things:
(1) ~ -Westar/Energas agree to deliver to the City up to a maximum of 30.000 MCF/day;
the m1n1mum "take-or-pay" volume the City must accept is 5,000.000 MCF annually •
.;. 11 -
(2) .t:ost -The City's cost is determined as follows:. , ,
(a)
(b)
(c)
(d)
(e)
Westar's/Energas' weighted average cost (!ls defined); plus an increme~t of fifty and
six tenths cents (50.6¢) per MCF, adjusted to 1,000· BTU/cubic .foot. · . . ,
On or before July 1, 1983, and each two years thereafter, the City and Westar/Energas
will meet to·determine the price to become effective the fol lowing January L . Jf the
City and Westar/Energas cannot agree, the contract .will terminate on January 1, 1984,
or January 1 each two years thereafter.
The term weighted average includes not only the cost-of the gas itself but also is
.. adjusted to include interest costs on gas developments;. a ·five year amortization of
nonproductive developments; and any costs of transportation, gathering, compressing~
treating, handling, or taxes.
Pltis, any new production, severance, gathering processing, transmission; sale_s, or
delivery taxes in excess of or in addition to those in .existence on January ,1, 1980,
which are levied upon or : attributable to all or any portion of the 'gas to be
delivered.
The price will be reduced if gas curtailments for the next preceding year exceed
either 3% or 4% of the actual gas volume.·, If the gas curtailment was between 3% and
4% then the price for the current year will be reduced one and two tenths cents (l.2¢)
·per MCF. If the curtailment was over 4%, then the price will be reduced two and four
tenths cents (2.4¢) per MCF.
(3) Term of Contract -The current agreement : was effective January 1, 1982, and remains in
full force and effect to December 31, 1985, and may be 'extended from time to time as the parties
agree under the following formula:
"It being 'the intention of the parties that so long as Buyer. requires gas for its said
· plants which may be satisfied in whole or in part by Seller upon terms and .conditions
acceptable to both parties, the parties sha 11 endeavor to reach agreement for succes-
sive one-year extensions of the term provided in the agreement. Any such one-year
extensions shall be made only after a positive determination by Seller of the ad.,
equacy of its gas supply and the determination by Seller, in its sole, discretion, ·
that it has sufficient gas supplies to .perform its obligations during such exten-
sions".
lf the City and Westar/Energas ·cannot agree, the contracts win terminate on January l .each two
years thereafter.
Fuel cost purchases are an operating expense of the System.
Note: (1) Copies of the Gas Sales Agreements between Westar Transmission Company and
Energas Company as "Seller" and City of Lubbock as "Buyer", may be obtained upon request from
Mr. J. Robert Massengale, Director of Finance, City of Lubbock·; Box 2000, Lubbock, Texas 79457
(806) 762..!6411.
ELECTRIC RATES •
The City Council sets electric rates for both Lubbock Power and :Li~ht and Southwestern·Publfc
Service, Rates are the same for both systems. The present rates went into effect on August 1,
1980, except for the fuel cost formula which went into effect December 2, 1981, and are set
forth below. :•
' ' Rates for Service Furnished ·in City ••• Rates ·to, be charged for electric service furnished
within the City shall be in accordance with orders or resolutions of the City Council estab-
lishing such . rates for all persons engaged in furnishing such electric power service to the
public including electric power furnished by the City's electric power company. Said orders
and resolutions establishing rates shall .be kept available for public inspection.
-12 ..
Fuel Cost Adjustment Formula
The fuel cost factor shall be computed according to the following formula:
Fuel Cost Factor ($/KWH)= Fm5; C
Fm = Fuel Cost Estimated for current Month in Dollars.
F = Total Cost of fossil fuel consumed in utilities own plants plus the _actual . identi-
fiable fossil fuel cost associated with firm energy purchased plus the net energy
cost of energy purchased on an economic dispatch basis or emergency or scheduled
outage. ·
Sm= KWH sales estimated for'current month. Where for any reason billing system cannot be
coordinated wtth fuel cost for the billing period, sales may be equated to the sum of
(1) net generation, plus (2) purchased, less (3) total system losses.
C = Correction factor which shall be calculated as follows:
C = e - a
e = Actua 1 fue 1 cost bil 1 ed in the second preceding month in do 11 ars.
a = Actual cost in the second preceding month in dollars.
The fuel cost factor may be further modified to _al low recovery of gross receipts and other
similar revenue based tax charges occasioned by the fuel factor revenues. ·
The fuel cost factor shall app1y to al 1 bi 11 ings during the calendar·month of _the '."Fm" estimate.
Residential Service
Apelicable: To residential customers for electric service used for domestic;·purposes in
private residences and separately metered individual apartments when all service is supplied at
one point of delivery, and measured through one kilowatt hour meter, where facilities of
adequate capacity and suitable voltage are adjacent to the premises to be served. Single phase
motors not to exceed 10 horsepower, individual cap'acity, 'may be served under this rate.
Territory: Lubbock, Texas.
Rate:· Service Availability Charge:_· $5.10 per month, which includes _ 30 KWH per month;
All KWH used per month in excess of 30 KWH@ 2.62¢ per KWH
Fuel Cost Adjustment: As above provided.
Total Electric Living Service
When customer has in regular use 1) permanently installed space heating equipment of .. an
aggregate rated capacity of 5 kilowat~s or more, excluding bathroom heaters and 2) a permanent-
ly installed 240 volt, 30 gapons or greater. storage type water heater of not greater than.5.5
kilowatts, individual rated capacity~ then, billing during the wi.nter months will be the first
500 KWH at the regular rate, and all additional KWH at 1.15¢ per KWH. Billing during the sunmer
months will be the first 500 KWH at the regular rate, the next 500 KWH at 1.15¢ per KWH and all
additional KWH a~ the regular rate.
-.
· Winter Months:· The billing month of November to May, inclusive.
Fuel Cost Adjustment: As above provided.
Conditions and Regulations: _ Water heating equipment served on this rate shall be of insulated
storage type bearing the approval of the Underwriter's Laboratories,, Inc., and shall ,have a
demand of not greater than 5.5 kilowatts, individual capacity. Space heating equipment and the
installation of the equipment shall be subject to the approval of the supplying utility. A
customer must have permanently installed and in regular use space heating equipment having a
total connected load of not less than 5 kilowatts, excluding bathroom heaters.
-13 -
Character of Service: The voltage and characteristics of equipment applied shall meet require-
.ments of the supplying utility. . . · ·.·.
Minimum: $5.10 per month.
Cormiercial Service
Applicable: To all cormiercial places of.business, including stores. shops. factories. ware-
houses, hotels, lodges, churches, apartment houses on one meter. garages and filling stations.
Territory: Lubbock. rexas.
Rate: All energy used shall be billed in accordance with the following rate:
Service Availability Charge
First 1~000 KWH used per month
Next 41 000 KWH used per month
Next 15 1 000 KWH used per month
Additional KWH used per month
$10.00 per month .
3.7o¢·per KWH
2.91¢ per KWH
2.01¢ per KWH
. 1. 21¢ per KWH
Discount: Where primary metering is used. 10% will be deducted on the above base rate portion
of all bills except minimum monthly bills. provided that primary metered load is greater than
secondary metered load. The Fuel Cost Adjustment portion of a bill is not subject to the 10%
discount. ··
Fuel Cost Adjustment: As above provided.
Character of Service: If metered on secondary side of distribution transformers. lighting
service may be either 120/240 vo1t. 3 wire single phase. or 120 volt. 2 wire single phase. If
polyphase service is required. it, shall be 3 phase. 240 volts unless otherwise specified.
Where primary metering is used, service supplied will be the primary voltage serving the area.
single or polyphase, as the case may require. ·
Minimum: $10.00 per month.
Schools
Applicable: . To all institµtions whether private,. parochial or public. engaged in providing
instruction or education, intluding elementary schools, junior high schools. high schools. and ·
colleges or universities.
Rate: Shall be the same as established for co1T111ercial places 6f business. above; provided
however:, that where such $Choo ls and school facilities are operated under one authority or
entity or as one district, but at several locations within the City. the consumption at all such
1 ocat i ans may be added together and the authority• entity or district billed as if a 11 such
consumption was on one meter.
Fuel Cost Adjustment: As above provided~ . ,
Character of Service: If metered on secondary side of distribution transformers•. lighting
service may be either 120/240 volt. 3 wire. sjngle phase, or 120 volt. 2 wire single phase. If
polyphase service is required. it shall be' 3 phase, 240 volts,. unless otherwise specified.
Where primary metering is used, service supplied will be primary yo 1 tage serving the area,
single or polyphase as the case may require.
Discount: Where .primary metering is used, 10% will be deducted on the above base rate portion
of all bills except minimum monthly bills, provided that primary metered load is greater than
secondary metered load. The fuel cost adjustment portion of a bill is not subject to the 10%
discount.
Irrigation Power Service
Applicable: To power service for a well used for irrigation of crop and/or pasture land.
Service to be furnished under contract. Not applicable to wells used. for domestic house
service.
Territory: Lubbock~ Texas.
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Character of Service: Service shall b.e 240 volt single phase or 240 volt three phase unless
otherw1se specified.
Rate: Winter Months -All KWH per month at 1.8¢ per KWH. Winter months include from regular
meter readings made in October to meter readings made in May.
Sumner Months -All KWH.per month at 3.18¢ per KWH. Sumner months include from regular
meter readings made in May to regular meter readings made in October.
Pa~ent: Statements will be rendered at regular meter reading dates each month. The amount of
sue statement shall then become payable ten days after the bill for such service is r-endered.
Conditions: Service will be supplied through a circuit to which no equipment except the
irrigation well motor will be connected.
Minimum: $24.00 per connected horsepower (nameplate rating) per year beginning in January.
Electric Heating Service
Applicable: To residential and commercial customers for space heating service, including
resistance heating, radiant heating and heat pumps, when all heating service is supplied at one
point of de 1 i very and measured through one kilowatt hour meter which meter must be separate from the meter which measures the energy for lighting and general use.
Rate: November through April: All KWH used per month@ $0.0115 per KWH.·
. May through October: All KWH used per month shall be billed under the applicable
residential or coornercial rate.
Conditions and Regulations: Space heating equipment and the installation of the equipment
shall be subject to the approval of the supplying utility. To be eligible for the space heating
rate, a customer must have permanently installed and in regular use space heating equipment
having a total connected load of not less than five kilowatts.
For heat pump installation, the rated capacity shall be determined by.adding the rated capacity
of any auxilliary heating elements used in conjunction with the heat pump.
Fuel Cost Adjustment: As above provided.
Electric Water Heating
Applicable: To water heating service, on a separate meter, for residential customers or
conmercial establishments. Service under this rate is subject to the conditions and regula-
tions governing water heating as stated below.
Rate: All KWH per month at 1.15¢ per KWH.
Conditions and Regulations: 1) Water heating equipment served on this rate shall be of
insulated storage type bearing the approval of the Underwriter's Laboratories, Inc., and shall
have a demand of not greater than 5.5 kilowatts individual capacity; 2) Service will be
supplied through a separate circuit to which no equipment except the water heater will be
connected. A separate meter will be furnished by the supplying utility.
Fuel Cost Adjustment: As above provided.
BILLINGS
Customers of Lubbock's Electric Department and Water Department are billed simultaneously on
one statement. Garbage and sewer charges are also included. No discounts are allowed. Bills
are due upon receipt. If a bill remains delinquent 13 days after the date of statement, a
reminder notice is mailed to the customer. Should the statement still be delinquent on the next
billing date, a statement is mailed showing the past due bill together with the current bill.
If the bill remains delinquent 13 days after the date of second statement~ a cut-off notice is
mailed. The cut-off notice specifies that service will be discontinued in 5 days if payment in
full is not made. At the end of the 5-day period, a collector calls on the customer and if he is
unable to collect payment, water and electric service is cut off. The reconnection charge is $6.00 before 5:00 .p.m. and $15.00 after 5:00 p.m. and during weekends and holidays.
-15 -
AVERAGE MONTHLY 1981/82 CUSTOMER USAGE AND BILLINGS
Average Residential Customer
Average ColTITlercial Customer (Usage)
* Includes fuel cost adjustment.
KWH Billing* ~ $ 51.53
13,917 $999.78-
LUBBOCK POWER AND LIGHT
(12 Month Period Ending 1-31-83)
Ten Largest Customers
(Annual Consumption and Revenue)
Customers
Texas Tech University
City of Lubbock
Plains Co-op Oil Mill
Lubbock Independent School District
Lubbock Cotton Oil Mill
Furrs Warehouse
Caprock Shopping Center
Texas Commerce Bank, N.A.
Town & Country Shopping Center
Court Place Office Building
-16 -
KWH Billed
86,508,862·
71,472,233
59,091,556
20,202,278
17,259,118
6,756,840
5,393,875
4,886,108
4,053,600
3,659,040
Do 11 ars Bil led
$4,883,711.11
4,196,557.37
3,184,955.88
1,089,750.23
1,044,591.83
378,141.02
303,369.30
· 272,316.49
223,067.92
207,636.12
ANALYSIS OF ELECTRIC BILLS Fiscai Year Ended 9-30-82 9-30-81 ' 9-30-80 9-30-79 9-30-78 9-30-77 9-30-76 All Customers: Average Monthly KWH Per Customer 1,822 1,884 1,951 1,978 1,962 1,898 1,912 Average Monthly Bill Per Customer $112.99 $101.69 $90.04 $79.23 $74.10 $65.41 $57.42 Average Monthly Revenue Per KWH $0.062009 $0.053976 $0.046149 $0.040052 $0.037758 ·. $0. 034454 $0.030020 Residential Customers: Average Monthly KWH Per Customer 643 668 708 672 675 627 566 Average Monthly Bill Per Customer $47.31 $43.26 $38.48 $32.76 $31.12 $26.93 $22.18 . Average Monthly Revenue Per KWH $0.073547 $0.064760 $0.054331 $0.048698 $0.046081 $0.042913. $0.039123 . Conmercial and Industrial: . Average Monthly KWH Per Customer 13,917 13,779 13,644 14,100 13,953 13,439 13,784 Average Monthly Bill Per Customer $791.02 $685.65 $578.13 $516.17 $480.71 $421.18 $374.42 Average Monthly Revenue Per KWH $0.056836 $0.049761 $0.042024 $0 • .036606 $0.034452 $0.031339 $0.027163 Municieal and Street Lighting: Average Monthly KWH Per Customer 907 11,444 11,854 10,771 10,167 9,418 8,973 Average Monthly Bill Per Customer $598.41 $516.13 $488.99 $372.86 $326.61 $270.89 $220.02 Average Monthly Revenue Per KWH $0.055309 $0.045100 $0.041249 $0.034615 $0.032123 $0.028763 $0.024519 ... Note: Computations based on number of customers and not number of meters. ~ I STATISTICAL DATA Fiscal Year Ended 9-30-82 9-30-81 9.;.30-80 9-30-79 · 9-30-78 9-30-77 9-30-76 KWH TO SYSTEM 703,210,820 681,659,700 682,657,030 637,988,480 638,632,420 606,578,940 568,976,780 Sales of KWH: Residential Service 204,408,298 202,748,289 204,559,675 180,844,490 182,524,256 163,638,408 138,613,152 Conmercial and Industrial Service 36015772057 352,020,288 345,4722241 339,423,448 33725512687 3251125,133 3281344,823 Total General Consumers 564,985,355 554,768,577 · 550,031,916 520,267,938 520,075,943 488,763,541 466,957,975 Municipal and Street Lighting 73,615,095 Total Sales to All Consumers 638,600,450 77,729,495 632,498,072 75,252,778 625,284,694 72,515,941 592,783,879 71,740,239 591,816,182 65,323,812 554,087,353 581793,926 525,751,901 Loss and Unaccounted For 64,6101370 49,1612628 57,372,336 4522041601 46,8161238 52,4912587 43,224,879 KWH TO SYSTEM 703,2l0,820 681,659,700 682,657,030 637,988,480 638,632,420 606,578,940 568,976,780 Average Residential Customers 26,477 25,286 24,067 22,405 22,525 21,727 20,376 Average Conmercial and Industrial Customers 2,159 2,129 2,110 2,006 2,016 2,016 1,985 Average Municipal Meters 567 566 529 561 588 578 546 Total Plant Peak KW Demand 151,000 149,000 144,000 131,500 142,500 125,500 116,000 System Peak KW Demand 142,800 140,060 135,600 123,000 134,600 119,200 109,700 Note: Computations based on number of customers and not number of meters.
SELECTED PROVISIONS OF THE ORDINANCE
The City Council w)l l adopt the Ordinance, selected provisions .of whic~ are shown below. Such
provisions do not purport to be complete and referencejs hereby made ,to the Ordinance for a
full description of th~ terms tnereof.
'
"SECTION 9: Definitions. :For all purposes of this ordinance and in parttcular for clarity with
respect to the issuance of the Bonds herein authorized and the pledge and appropriation of
revenues for the payment of the Bonds, the following definitions are provided:
(a) The term "Additional Bonds" shall mean the addi.tional parity revenue bonds';the City
reserves the right to issue ln accordance with the terms and conditions prescribed•in Section
20 hereof. ' ·
(b) The term "Bonds" shall mean the refunding revenue bonds authorized by this ordinance.
(c) The term "Bonds Similarly Secured" shall mean the Previously Issued Bonds, the Bonds and
Additional Bondsi
(d) the term "Fiscal Year" shall mean the twelve-month accoun~ing period used by the City in
connection with the operations of the System which may be any twelve consecutive month period
established by the City.
(e) The term "Net Revenues" shall mean the gross revenues of the System less expenses of
operation and maintenance. Such expenses of operation and maintenance shall . not include .
depreciation charges or funds pledged for the Bonds Similarly Securedi .but shall include all
salaries, labor, materialst repairs, and extensions necessary to render services; provided,
however, that in :determinjng "Net Revenues," only such repairs and extensions as in the ·
judgment of the City CouncH, reasonably and fairly exercised are necessary to keep the System ·
in operation and render adequate service to the City and inhabitants thereof, or such as might
be necessary to meet some physical accident or condition which otherwise would impair the
security of the Bonds Similarly Secured, shall be deducted.
(f} The term "Previously Issued Bonds" shall mean the outstanding and ,unpaid revenue bonds,
designated "CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER SYSTEM .REVENUE BONDS," and payable
· from and secured by a first lien on and pledge of the Net R~venues of the System, further
identified by issue or series as fol lows: · · ·
(1) Series 1964, dated March 15, 1964, · in the original principal amount of $4,500,000;
; ( 2) Series 1965, dated March 15, 1965, in the ori~inal principal am<>unt of $3,000,000;
(3) Series 1973, dated July 15, 1973, in the original piincipal amount of $6,000,000;
(4) Series 1975, dated March 15, 1975, in the original principal amount of $6,400,000;
(5) Series 1975-A, dated September 15, 1975, in the original principal amount of
;$2,000,000; and
(6) Series 1976, dated April 15, 1976, in the original principal i!lllOU~t of $4,400,000.·
(g) The term "Refunded Bonds" shall mean the "City of Lubbock, Texas, Electric Light and Power
System Revenue Bonds, Series 1981", dated August 15, 1981, and now outstandi rig in the aggregate
principal amount of $8,55D,OOO.
(h} The term ~•System" shall mean all properties real,' personal, mixed or otherwise, now owned
or hereafter acquired by the City of Lubbock through purchase, construction or otherwise, and
-used in connection with the City's Electric Light and Power System :and in anywise appertaining
·thereto, whether situated within or without the limits e>f the City~. ·
"SECTION 10: ~ledge. That the City hereby.covenants and .agrees .that all of.the Net Revenues
derived from t e operation of the System, with the exception of thos.e in excess of the, b)nounts
requ'ired to establish and maintain the special Funds ,created for the payment and security of
. the Bonds Similarly Secured, are hereby irrevocably pledged for the payment of the Previously
. Issued Bonds, the Bonds and Additional Bonds ., if issued,. and the interest thereon, and it is
hereby ordained that the Previously Issued Bonds, the Bonds and the Additional Bonds, if
issued, and the interest thereon, shall constitute a first lien on the Net Revenues of the
System.
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"SECTION 11: Rat.es and Charges. That the City. hereby covenants and agrees with the holders of
·the Bonds that rates .and charges for electric power and energy afforded by the System will be
established and maintained to provide revenues sufficient at all times.to -pay:
(a) all necessary and reasonable expenses -of operating and maintaining the System as set
forth herein in the definition "Net Revenues" and to recover depreciation;
(b) the amounts .. ,required to be deposited to the Bond Fund to pay the principal of and
interest on the Bonds Similarly Secured as the same becomes due and payable and to accumulate
and maintain the reserve amount required to ·be deposited therein; and
(c) any other legally incurred indebtedness payable from the revenues of the System
and/or secured by a lien on the System or the revenues thereof.
"SECTION 12: Segregation of Revenues/Fund Designations. All receipts, revenues and income
derived from the operation and ownership of the ·System shall be kept separate from other funds
of the City and deposited within twenty-four (24) hours after collection in the "Electric Light
and Power System Fund" (created and established in connection with the issuance of the Pre-
viously Issued Bonds), which Fund (hereinafter referred to as the "System Fund") is hereby
reaffirmed and shall continue to be kept and maintained at an official depository bank of the
City while the Bonds remain outstanding. Furthermore, the "Special Electric Light and Power
System Revenue Bond Retirement and Reserve Fund" (hereinafter referred to as .the "Bond Fund"),
created and established in connection with the issuance .of the Previously Issued Bonds, is
hereby reaffirmed and shall continue to be maintained by ·the City while , the .Bonds remain
outstanding. The Bond Fund is and shall continue to be kept and maintained at the City's
official depository bank, and moneys deposited in the Bond Fund shall be ·used for no purpose
other than for ·the payment,-redemption and retirement of Bonds Similarly Secured.
"SECTION 13: S~stem · Fund. The City hereby reaffirms its covenant to ·the holders of the
Previously Issue .Bonds and agrees with the holders of the Bonds that the moneys deposited in
the System Fund shall be used first for the payment -of the reasonable .and proper expenses of
operating and maintaining the System, as identified in Section 9(e) hereof. All moneys
deposited in the System Fund in excess of the amounts required to pay operating and maintenance
expenses of the "System, as hereinabove provided, shall be applied and appropriated, to the
extent required ·and_ in the order of priority prescribed, as follows:
(i) To the payment of the amounts required to be deposited in the Bond Fund for the
payment of principal of and interest on the Bonds SimilarlrSecured as the same become due and
payable; and
(ii) To the payment of the amounts, if any, required to be deposited in the Bond Fund to
accumulate and maintain the :reserve amount as security-for the payment of the principal of and
interest on the Bonds Similarly Secured.
"SECTION 14: Bond Fund. (a) That .. in addition to the required monthly .deposits to the Bond
Fund for the payment .of principal of and interest on the Previously Issued .Bonds, the City
hereby agrees and covenants to deposit to the Bond Fund an amount equal to one hundred percentum
{100%) of the amount required to fully pay the interest on and ,principal of the Bonds falling
due on or before each maturity and interest payment date, such payments to ·be made in substan-
tially equal monthly installments on or before the 1st day of each month beginning on or before
the 1st day of the month next following the month ,the Bonds are delivered to the initial
~~~~-~
The .required monthly deposits to the Bond Fund for .the payment of principal of and interest on
the Bonds shall continue to be made as hereinabove provided until such time as (i) the total
amount on deposit in the Bond Fund, including the "Reserve Portion" deposited therein, is equal
to the amount required to fully pay and discharge all outstanding Bonds ,Similarly Secured
(principal and interest) or (ii) the Bonds .are no longer outstanding, i.e., fully paid as to
principal and interest or all the Bonds have been refunded.
Accrued interest and ·premium, if any, received ·from the · purchasers of the Bonds shall be
deposited in the Bond Fund, and shall .be taken .into consideration and 'reduce the amount of the
monthly deposits hereinabove required which would otherwise be required to be deposited in the
Bond Fund from the Net Revenues of the System.
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(b} In addition to the amounts to be deposited in the Bond Fund to pay current principal
and interest for the Bonds Similarly Secured, the City reaffirms its covenant to the holders of
the Previously Issued Bonds and agrees to accumulate and maintain in said Fund a reserve amount
(the "Reserve Portion") equal to not less than the average annual principal and interest
requirements of all outstanding Bonds Similarly Secured (calculated and redetermined at the
time of issuance of each series of Bonds Similarly Secured).
In accordance with the ordinances authorizing the issuance of the Previously Issued Bonds,
there is curr·ently on deposit to the credit of the Reserve Portion of the Bond Fund the. sum of
$1,758,707. By reason of the issuance of the Bonds, the Reserve Portion to·bemaintained in
said Fund shall be $2,007,000, which amount totals not less than the average annual principal
and interest requirements of the outstanding Bonds Similarly Secured after giving effect to the
issuance of the Bonds. The City agrees and covenants that, in addition to the monthly deposits
required in paragraph (a) of this Section, there shall continue to be deposited in the Bond Fund
on or before the 1st day of each month the sum of $6,367 ~00 unt i1 the Bond Fund contains such
Reserve Portion in cash and book va 1 ue of investment securities. In the event the City e 1 ects
to increase the monthly deposits to the Bond Fund applicable to the accumulation of th.e Reserve
Portion, the amount in excess of the required monthly deposit shall serve as a credit to th~
amount required to be deposited in the next month or months.
The Reserve Portion of the Bond Fund shall be made available for and reasonably employed in
meeting the requirements of the Bond Fund if need be, and if any ameunt thereof is so employed,
the Reserve Portion in the Bond Fund shall be fully restored as rapidly as possible from the
first available Net Revenues of the System in the System Fund subject only to the priority of
payments hereinabove prescribed in Section 13.
"SECTION 15: Payment of Bonds. While any of the Bonds are outstanding, the proper officers of
the City are hereby authorized to transfer or cause to be transferred to the Paying Agents
therefor, from funds on deposit in the Bond Fund, including the Reserve Portion, if necessary,
amounts sufficient to fully pay and discharge promptly as each installment of interest and
principal of the Bonds accrues or matures or comes due by reason of redemption prior to
maturity; such transfer of funds to be made in such manner as will cause immediately available
funds to be deposited with the Paying Agents for the Bonds at the close of the business day next
preceding the date of payment for the Bonds. The Paying Agents shall cancel and destroy all
paid Bonds, and the coupons, if any, appertaining thereto, and furnish the City with an
appropriate certificate of cancellation or destruction.
"SECTION 16: Deficiencies in Funds. That, if in any month the City shall, for any reason,
fail to pay into the Bond Fund the full amounts above stipulated, amounts equivalent to such
deficiencies shall be set apart and paid into said Fund from the first available and unallo-
cated Net Revenues of the System in the following month or months and such payments shall be in
addition to the amounts hereinabove provided to be otherwise paid into said Fund during such
month or months.
"SECTION 17: Excess Revenues. Any surplus Net Revenues of' the System remaining after a.Tl
payments have been made into the Bond Fund and after all deficiencies in making deposits to said
Fund have been remedied, may be used for any other City purposes now or hereafter permitted·by
law;including the use thereof for the retirement in advance of maturity of the Bonds Similarly
Secured by the purchase of any of such Bonds Simi 1 arly Secured on the open market at not
exceeding the market value thereof. Nothing herein, however, shall be construed as impairing
the right of the City to pay, in accordance with the provisions thereof, any junior lien bonds
legally issued by it and payable out of the Net Revenues of the System.
"SECTION 18: Security of Funds. That moneys on deposit in the System Fund (except any amounts
as may be properly invested) shall be secured ·in the manner and to the fullest extent required
by the laws of the State of Texas.for the security of public'fu11ds. Moneys on deposit in the
Bond Fund shall be continuously secured by a valid pledge of direct obligations of; or obliga~
tions unconditionally guaranteed by the United States of America, having a par 'value,' or market
value when less than par, exclusive of accrued interest, at all times at least equal to the
amount of money to be deposited in said Fund. All sums deposited in said Bond Fund shall be
held as a trust fund for the benefit of the holders of the Bonds Similarly Secured, the
beneficial interest in which shall be .regarded as existing in such holders. To the extent that
money in the Reserve Portion of the Bond Fund is invested under the provisions of Section 19
hereof, such security is not required.
-20 -
"SECTION 19: In.vestment of Reserve Portion of Bond Fund. The custodian' bank shall, when
authorized by the City Council, invest the Reserve Portion of the Bond Fund i.n direct obliga-
tions of, o.r obligations guaranteed by the United States of America, or invested in direct
obligations of the Federal Intermediate _Credit Banks, Federal · ;Land :Banks, Federal . National
Mortgage Association, Federal Home Loan Banks or Banks for Cooperatives, and whic.h such invest-
ment obligations must mature or be subject to redemption at the .option of the holder, within not
to exceed ten years from the date of making t~e investment. Such obligations shall be held by
the depository impressed with the sam~ trust ,for the benefit of the bondholders as the Bond Fund
itself, and if at any time uninvested funds shall be insufficient to permit payment of prin-
cipal and interest _maturities for the Bonds Similarly Secured, the said custodian bank shall
sell on the open market such amount of the securities as is required to pay said Bonds Similarly
Secured and interest when due and shall give notice thereof to the City. All moneys resulting
from maturity of principal and interest of the securities shall be reinvested or accumulated in
the Reserve Portion of the ·Bond F1md and considered a-part -thereof and used for and only for the
purposes hereinabove provided with respect to said Reserve Portion, provided that when the full
amount .required to be accumulated in the Reserve Port;i,on of the Bond Fund (being the amounts
required to be accumulated by the ordinances authorfzing the Bonds Similarly Secured), any
interest increment may be used . in the Bond Fund to reduce the payments that would otherwise be
required to pay the current debt service requirements' .on Bonds Similarly Secured.
!'SECTION 20: Issuance of Additional Paritl Bonds. That, in addition to .the right to issue
bonds of inferior lien as authorized by theaws of the State of .Texas, the City hereby reserves
the right to issue Additional Bonds which,when duly authorized and is~ued in compliance with
the terms and conditions hereinafter ,appearing, shall b.e on a parity with the Previously Issued
Bonds and the Bonds herein authorized, payable from and equally and ratably secured by a first
lien on and pledge of the Net Revenues of the System. The Additional Bonds may be issued in one
or more installments, provided, however, that none shall be issued unless and until the
following conditions have been met:
(a) That the Mayor and City Treasurer have certified that the City is not then in default
as to any covenant, condition or obligation prescribed by any ordinance authorizing the issu-
ance of Bonds Similarly Secured then outstanding, including showings that all interest, sinking
and reserve funds then provided for have been fully maintained in accordance with the provi-
sions of said ordinances;
(b) That the applicable laws of the State of Texas in force at the time provide per-
mission and authority for the issuance of such bonds and have been fully complied with;
(c) That the City has secured from an independent Certified Public Acc<>untant his written
report demonstrating that the Net Revenues of the System were, during the last completed Fiscal
Year, or during any consecutive twelve (12) months period of the last fifteen (15) consecutive
months prior to the month of adoption of the ordinance authorizing the Additional Bonds, equal
to at least one and one-half (11/2) times the average annual principal and interest require-
ments of all the bonds which wil 1 be secured by a first lien on and .pledge .of the Net Revenues
of the System and which will be outstanding upon the issuance of the Additional Bonds; and
further demonstrating that,for the same period as is employed in arriving at the aforementioned
test said Net Revenues were equal to at least one and one-fifth (1-1/5) times the maximum annual
principal and interest requirements of all such bonds as will be outstanding upon the issuance
of the Additional Bonds;
(d) That the Additional Bonds .are made to mature on April 15 or October 15, or both, in
each of the years in which they are provided to mature; ··
(e) The Reserve Portion of the Bond Fund shall be accumulated and supplemented as nec-
essary to maintain_a sum which shall,be not less than .the average .annual principal and interest
requirements of aH bonds secured by a first lien on and pledge of the Net Revenues of the
System which.will be outstanding upon the .issuance of any series of Additional Bonds. Accord-
ingly~ each .ordinance authorizing the issuance of any series of Additional Bonds shall provide
for any required increase in said Reserve Portion, and if supplementation is necessary to meet
all conditions of said Reserve Portion, said ordinances shall make provision that same be
supplemented by the required amounts in equal monthly installments over a period of not to
exceed sixty (60) calendar months from the dating of such Additional Bonds.
When. thus issued, such Additional Bonds may be secured by a pledge of the Net Revenues of the
System on a parity in all things with the pledge securing the issuance of the Bonds and the
Previously Issued Bonds.
-21 -
"SECTION 21:. Maintenance and Operation -Insurance •. That the City hereby covenants and a9rees
to ma,nta,n ihe System in good condition and operate the same in an efficient manner and at
reasonable costs·. · ihe City further agrees to maintain insurance for the benefit of the holder
.or holders: of the Bonds of t~e kinds and in the amounts which are usually carried by private
companies operating similar ·properties, and that during such time all policies of insurance •
shall be maintained in force· ~nd keptcurrent as to premium payments~ All moneys received from
losses under such insurance policies other than public liability policies are hereby pledged as
security for the Bonds Similarly Secured until and unless the proceeds thereof are paid ·out in
making good the loss or damage in respect of which such proceeds are . received, either by
,replacing the property destroyed or repairing the property damaged, and adequate provisions
made within ninety (90) days after the date of the loss for making good such loss or damage.
The premiums for aJl insurance policies required under the provisions of this Section shall be
considered as maintenance and operation expenses of the System. ·
"SECTION 22: Records -Accounts -Accounting Reports. That ihe City hereby covenants and
agrees so long as any of the Bonds or any interest thereon remain outstanding and unpaid, it
will keep and maintain a proper and complete system of records and accounts pertaining to the
operation of the System and its component parts separate and apart from all other records and
accounts of the City in accordance with .generally accepted accounting principles prescribed for
municipal corporations, and complete and correct entries shall be made of all transactions
relating to said System, as provided by applicable law. The holder or holders of any Bonds, or
any duly authorized agent or agents of such holders, shall have the right at all reasonable
times to inspect all such records, accounts and data relating thereto and to inspect the System
and all properties comprising same. The City further agrees that as soon as possible following
the close of each Fiscal Year, it will cause an audit of such books and accounts to be made by
an independent firm of Certified Public Accountants. Each such audit, in addition to whatever
other matters may be thought proper by the Accountant, shall particularly include the
following:
(a) A detailed statement of the income and expenditures of the System for such Fiscal
Year;
(b) A balance sheet as of the end of such Fiscal Year;
(c) The Accountant's comments regarding the manner in which the City has complied with
the covenants and requirements of this ordinance and his reconmel)dations for any changes or
improvements in the operation, records and accounts of the System;
( d) A list of the insurance policies in force at the end of the Fi seal Year on System
properties, setting out as to each policy the amount· thereof, the risk covered, the name of the
insurer, and the policy's expiration date; ·
(e) A list of the securities which have been on deposit as security for the money in the
Bond Fund throughout the Fiscal Year and a list of the securities, if any, inwhich the Reserve
Portion of the Bond Fl.ind has been invested; ·
( f) The tot a 1 number of metered and unmetered customers, if any, . connected with the
System at the end of the Fiscal Year. ·
Expenses incurred in making the audits .above referred to are to be regarded as maintenance and
operating expenses of the System and paid as such. Copies of the aforesaid annual audit shall
be immediately furnished to the Executive Oirector of the Municipal 'Advisory Council of Texas
at his office in Austin, Texas, and, upon written request, to the original purchasers and any
subsequent holder of the Bonds.
· "SECTION 23: Remedies in Event of Default. That, in addition to all the rights and remedies
prov1ded by laws of the State of Texas, the City covenants and agrees particularly that in the
event · the Cit)' {a) defaults in payments to be made to the Bond Fund as required by -this
· ordinance or (b) defaults in the observance or performance of any other of the covenants,
conditions or obligations set forth in this ordinance, the holder or holders of any of the Bonds
shall be entitled to a writ of mandan11Js issued by a court of proper jurisdiction compelling and
requiring the City Council and other officers of· the City to observe and perform any covenant,
condition or obligation prescribed in this ordinance. · ·
-22 -
No delay or. omission to exercise any right or power accruing upon any default shall impair any
such right or power, or shall be ,construed to be a waiver of any such default, or acquiescence
therein. and every such right .or power may be exercised from time .to time and as often as may be
deemed expedient. The specific remedies herein provided shall be cumulative ,of all other
existing remedies and the specifications of such remedies shall not be deemed to be exclusive.
"SECTION 24: Special Covenants. The City hereby fur.ther covenants as follows:
(a) That it has the lawful power to pledge the revenues supporting this issue of Bonds
and has lawfully exercised said power under the Constitution and laws of the State of Texas,
including Articlellll et seq., V.A.T.C.S.; that the Previously Issued Bonds, the Bonds and the
Additional Bonds, when issued, shall be ratably secured under said· pledge of income in such
manner that one bond sha 11 have no preference over any other bon.d of said issues •
. (b} That,· other than for the payment of the Previously Issued Bonds, the Bonds and the
Refu.nded Bonds (until the lien and pledge securing the payment thereof has been defeased), the
Net Revenues of the System have not been pledged to the payment of any debt or obligation of the
City or of the System. ·
(c) . That, so Jong as any of the Bonds or any interest thereon remain outstanding, the
City will not sell, lease or encumber .the System or any substantial part thereof; provided,
however, this covenant shall not be construed to prohibit the sale of such machinery, or other
properties or equipment which has become obsolete or otherwise unsuited to . the efficient
operation of the System when other property of equal value has been substituted therefor, and,
also, with the exception of the Additional Bonds expressly pennitted by this ordinance to be
issued, it will not encumber the Net Revenues of the System unless such encumbrance is made
junior and subordinate to all of the provisions of this ordinance.
(d} The City will cause to be rendered monthly to each customer receiving electric
services a statement therefor and will not accept payment of less than all of any statement so
rendered, using its . power un.der extsting ordinances and under all such ordinances to become
effective in the future to enforce payment, to withhold service from such delinquent customers
and to enforce and authorize reconnection charges.
(e) That the City will faithfully and punctually perform all duties with respect to the
System required by the Constitution and laws of the State of Texas, including the making and
collecting of reasonable and sufficient rates for services supplied by the System, and; the
segregation and application of the revenues of the System as required by the provisions of this
ordinance.
(f) No free service shall be provided by the System and to the extent the City or its
departments or agencies utilize the services provided by the System, payment shall be made
therefor at ·rates charged to others for similar service.
"SECTION 25: Special Obligations. The Bonds are special obl igatfons of the City payable from
the pledged Net Revenues of the System and the holders hereof shall never have the right to
demand payment thereof out of funds raised or to be raised by taxation.
"SECTION 26: Bonds are Negotiable Instruments. Each of the Bonds herein authorized shall be
deemed and construed to be a "Security," and as such a negotiable instrument, within the
meaning of Article 8 of the Uniform Conrnercial Code.
"SECTION 27: Ordinance to Constitute Contract. The provisions of this ordinance shall con-
stitute a contract between the City and the holder or holders from time to time of the Bonds
and, no change, variation or alteration of any kind of the provisions of this ordinance may be
made, until such Bonds are no longer outstanding.
"SECTION 28: No-Arbitrage. The City covenants to and with the purchasers of the Bonds that it
will make no use of the proceeds of the Bonds, investment income or other funds at any time
throughout the term of this issue of Bonds which would cause the Bonds to be arbitrage bonds
within the meaning of Section 1O3(c) of the Internal Revenue Code of 1954, as amended, or any
regulations or rulings pertaining thereto.
"SECTION 29: Final Deposits; Governmental Obli~ations. (a) All or any of the Bonds shall be
deemed to be paid, retired and no longer outstan ing within the meaning of this Ordinance when
payment of the principal of, and redemption premium, if any, on such Bonds, plus interest
thereon to the due date thereof (whether such due date be by reason of maturity, upon redemp-
tion, or otherwise) either (i) shall have been made or caused to be made in accordance with the
-23 -
terms· thereof (including .the giving of any required riot1ce of redemption), or {ii) shall-have
been provided by irrevocably depositing with, or making available to, the Paying Agents there.:.
for, in trust and :irrevocably set aside exclusively for such payment, (1)-money sufficient to
make s.uch payment or (2) Government Obligations, certified by an independent public accounting
firm of national reputati.on, to mature as to principal -and interest in such amounts and at such
times as will insure the availability, without reinvestment, of sufficient money to make such
payment, and all necessary and proper fees, compensation and expenses of the Paying Agents
pertaining to the Bonds with respect to which such deposit is made shall have been paid or the
payment thereof provided to·the satisfaction of the Paying Agents. At such time as a Bond shall
be deemed to be paid hereunder, as aforesaid, it shall no longer be secured by or entitled to
the benefit of this Ordinance or a 1 ien on and pl edge of the Net Revenues of the System, and
shal L be entitled to payment, solely fran such money or Government Obligations. · · ·
The term "Government Obligations", as used in this Section, shall mean direct obligations of
the United States of America, including obligations the principal of and •interest on which are
unconditionally guaranteed by the United States of America, which may be United States Treasury
obligations such as its State and Local Government Series, and which may be ih book-entry form.
(b) That any moneys so deposited with the Paying Agents may at the direction of the City
also be invested in Government Obligations, maturing in the amounts and times as hereinbefore
set forth, and all income from all Government Obligations in the hands of the Paying Agents
pursuant to this Section which is not required for the payment of the Bonds, the redemption
premium, if any, and interest thereon, with respect to which such money has been so deposited,
shall be turned over to the City or deposited as directed by the City.
(c) That the City covenants that no deposit wi 11 be made or accepted under . clause
(a)(ii) of this Section and no use made of any such deposit which would cause the Bonds to be
treated as arbitrage bonds within the meaning of Section lO3(c) of the Internal Revenue Code of
1954,. as_ amended.
(d) That notwithstanding any other provisions of this Ordinance, all money or Government
Obligations set aside and held in trust pursuant to the provisions of this Sectionfor ,the
payment of the Bonds, the redemption premium, if any, and interest thereon, shal 1 be applied to
and used for the payment thereof, the redemption premium, if any, and interest thereon and the
income on such money or Government Obligations shall not be considered to be income or revenues
of the System .• "
24 -
The information set forth herein under the heading ,•General Information Regarding the City and
Its EconomyN has been furnished by the sources indicated. but it is not guaranteed as to accuracy or completeness by the Underwriters.
GENERAL INFORMATION REGARDING THE C:ITY AND ITS ECONOMY
LOCATION AND AREA
Th~ City of Lubboc;k. County Seat of Lubbock County. Texas. is located on the South Plains of
West Texas. 327 miles to the west of Dallas. Lubbock is the economic. educational. cultural and medical center of the area.
POPULATION
Lubbock is the eighth largest City in Texas:
1910 Census
1920 Census
1930 Census
1940 Census
1950 Census
1960 Census
1970 Census
1980 Census
1983 Estimate
City of Lubbock
(Corporate Limits) 1.938
4.051
20,520
31,853
71.390
128.691
149.101
173.979 181.50()1<
Standard Metropolitan Area (Lubbock County)
1970 Census 179.295
1980 Census 211.651
* Source: City of Lubbock. Texas.
AGRICULTURE •••
Lubbock is the center of a highly mechanized agricultural area with a majority of .the crops
irrigated with water fran underground sources~ Principal crops are cotton. grain sorghums and
corn with livestock. sunflowers and soybeans as additional sources of agricultural income.
The Texas Department of Agriculture and the Statistical Reporting Service. U.S. Department of · Agr i culture report as f o 11 ows : ·
Lubbock County's 1981 cotton production was 275.400 bales; grain sorghum production was
30.490.000 pounds; and corn production was 140.000 bushels.
On January 1. 1982. there were an estimated 63.000 head of cattle and calves located on farms or
in feed lots in Lubbock County.
Lubbock County Cash Receipts from farm marketings. 1979/81. were:
All Crops Livestock and Products
U.S. Government Payments
Total Cash Receipts
* Preliminary -subject to revision.
1979 s ?4.101.000
39.255.000
5,971,000
$119,927.000
1980 $ 89.845.000
33,771.000
6,434,000
1981* $70,692,000
33.902.000
N.A.
$130.050,000 $ N~A.
I 1981 cotton proauction in a 23 county (including Lubbock County) area surrounding Lubbock was
2.840.700 bales; 1981 grain sorghum production in this same area was 1.357.640.000 pounds; and grain corn production ·was 57.141.300 bushels.
Three major vegetable oil pl ants located in Lubbock have a combined weekly capacity of over
2.400 tons of cottonseed and soybean oil.
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Several major seed .companies are headquartered ·in Lubbock.
BUSINESS AND INDUSTRY .•.
Lubbock SMSA Labor Force Estimates*.
February January December February
· 1983** 1983 1982 1982 Civilian Labor Force 107,200 107,300 108,000 ,103,900 Total Employment ·100,800 . 101,200 103,150 98,900 Unemployment 6,400 6,100. · 4,850 · 5,000
Percent Unemployed 6.0% 5.7% 4.5% 4.8%
State of Texas Labor Force Estimates*
(in thousands)
February January December February
1983** -1983 1982 1982
Civilian Labor Force 7,543.3 7,589.1 7,495.4 7,236.0 Total Employment 6,877.5 6,943.4 6,938.5 · 6,814.7
Unemployment 665.8 645.7 556.9 421.'3
Percent Unemployed 8.8%. 8.5% 7.4% ·5.8%
United States Labor Force Estimates*
(in thousands)
February January
1983** 1983
Civilian Labor Force 109,647.0 l09,779.0
Total Employment 97,265.0 97,262.0
Unemployment 12,382.0 12,517.0
Percent Unemployed 11.3% . 11.4%
* Source: Texas Employment Conmission.
** Subject to revision.
December
1982 110,477 .o
98,849.0
11,628.0
10.5%
February
'1982
108,324.0
97,946.0
10,378.0
9.6%
January December
1982 1981'. lOl,950 103,750
97,550 . 102,950
_ 4,400 '3,800
4.3% 3.7%
January December
1982 1981 7,169.3 7,127.5
6,743.2 6,802.6
426.l 324.9
5.9% 4.6%
January December
1982 1981 1os,o14.0 108,574.0
97,831.0 99,562.0
10,183.0 9,013.0
9.4% 8.3%
The Texas Employment Conmission reported in March, 1983, that February, 1983, non-agricultural
employment in the Lubbock area totaled 89,000, down from 89,900 in February, 1982; of this total an estimated 11,400 were employed in manufacturing compared to 11,800 1n February,-1982.
Over 240 manufacturing plants in Lubbock produce such products as consumer products utilizing
semi-conductor elements, · vegetable oils, heavy earth-moving machineryi · irrigation , equipment
and pipe, farm _ equipment, electronic instruments, paperboard boxes, foodstuffs, mobile and prefabricated homes, poultry and livestock feeds, boilers and pressure vessels, automatic
sprinkler system heads, structural steel fabrication and soft drinks. ·
Some larger industries in Lubbock (with 100 employees or more) are:
Company
Texas Instruments, Inc.
Lubbock Avalanche-Journal Southwestern
Newspaper Corporation _-
Litton Data Systems, Guidance and Control
Systems Division, Litton Industries, Inc.
Plains Co-op Oil Mill
Frito-Lay, Inc. (Subsidiary of
Pepsico, Inc.) , Evans-Transportation Company (Division of
Evans Products Company}
Goulds Pumps, Inc.
Coca-Cola Bottling Company
Product
Consumer Products with Semi-Conductor
Elements
Newspaper
Navigational Equipment; Electronic Computer Systems
Vegetable Oil Products, Cottonseed
Products
Potato and Corn Chi p_s
Pressure Vessels for Rail Cars
Vertical Turbine Pumps
Soft Drinks
-26 -
·Estimated
Employees
January
1983*
5,000
350
325**
325
300
250 -
200
175 ·
· Company
'Grinnell Fire Protection Systems Company
(Subsidiary of Tyco Laboratories) ·
Rainbo Baking Company, subdivi sion of
Cambell-Taggart Associated Bakeries, Inc.
Mrs. Baird's Bakeries
Johnson Manufacturing Company (Division of
Eagle-Picher Industries)
Bell DairyProducts, Inc.
Lubbock.Cotton Oil Company
Dr. Pepper-Seven Up Bottling Company
* Source: Lubbock Chamber of Co1T111erce •
Product
Automatic' Sprinkler Heads . ;
Bread Products ·
Bread Products
Heavy Earth-Moving Machinery and
Farm Equipment
Dairy Products
Cottonseed Oil and Other Cottonseed
-Products, Soyean Oi 1 Soft 0rinks• ·
..,.. Litton has announced that it will -close its operation in Lubbock ~ fall, 1983.
Estimated
Employees
January
1983*
150
130
125
125
100
100
100
Texas Instruments, Inc., world leading developer and producer of semi-conductors and other electronic products, convnenced manufacturing operations in Lubbock in April, 1973~ The company
employs approximately 5,000 in the manufacture of consumer products 1,1tilizing semi-conductor
elements, and the servicing of these products. · The Company's Consumer Products Division
headquarters is 1 o_cated in Lubbock.
Wholesale distribution represents a major sector of the Lubbock economy, with hundreds of
outlets serving a 54 county area in West Texas and New Mexico.
. . .
The ,u.s. Bureau of the Census; Census of Business, 1977, estimated Lubbock County (Lubbock
Standard Metropolitan Area) retail trade at $866 mill ion in 1977. Sales & Market in, Manag-
ement, Survey of Buying Power, estimates .Lubbock County 1981 retail sales at $1,413,6 9~000.
'I 1·
There are ten banks in the City ••• American State Bank, established 1948; Texas Commerce Bank
(formerly Citizens National Bank), established 1906; First National Bank, established 1901;
Lubbock National Bank, established 1917; The Plains National Bank, established 1955; Security
National Bank, established 1963; Bank of the West, established 1973; Texas Bank & Trust Co.,
established 1973; Southwest Lubbock National Bank, established 1978; and Liberty State Bank, established 1979. There are six savings and loan associations in the City.
Year End
1971
1972
1973
1974
Deposits
$527,314,293
596,697,439
723,327,701
793,915,466
1977
Combined Bank Statistics
Year End
1975
1976
1977
1978
Deposits
$ 878,164,171
1~013,973,289 ·
1,104,602,863
1,104,896,188
Sales Mana6ement Estimates
Lub ock SMSA ·
1978 1979
Year End
1979
·1980 1981 •
1982
Deposits
Sl,219,990,ooo
1,369,037,000
1,500,160,000
1,586,469,000
1980 1981
Total Retail Sales
Effective Buying Income
Per Capita
Per Household
s so§.911.ooo
$1,240,202,000
5,943
14,390
S 818,428,000
$1,360,566,000
6,627
15,767
Sl,134,430.000
Sl,606,509,ooo 7,828
18,488
$1,279,860,000
$1,755,658,000
8,193
19,445
$1,413,677,000
sl,952,741,ooo
8,966
20,978 Number of
Households
Households Earnin§:
$8,000 -$ 9,9 9
$10,000 -$14,999
$15,000 -$24,999
$25,000 and over
$25,000 -$49,999
$50,000 and over
(a) Reporting groups changed.
71,100
8.9%
18.5% .
21.1%
10.4%
71,200
7.1%
17 ;8%
28.5%
24.0%
71,700 74,500 76,800
5.8% 5.4% (a)
15.2% .14.5% ··•13.3%
27 .5% · 26.9% 25.7%
·32.9% 35.8% · ,. (a)
31.9%
8.2%
Lubbock ranked 11th in the Nation in 1981 in per household retail sales with $18,407; the U. s. average was
$12,630.
-27 -
EDUCATION ••• TEXAS TECH UNIVERSITY •••
Established in Lubbock in 1925, Texas Tech University is the third largest State-owned Univer-
sity ·in Texas and had a Spring, 1983 .enrollment of 21,226. Accredited by the Southern
Association of Colleges and Schools, the University is a co-educational. State-supported insti-
tution offering the bachelor's degree in 109 major fields, the masteris degree in 73 major
fields, the doctorate degree in 59 major fields, and the professional degree in 2 major fields
(law and medicine}.
The University proper ·is' situated on 451 acres of the 1,829 acre campus, and has over 90
permanent buildings with additional construction in progress. 1982-83 faculty membership is
over 1,500, and there are over 4,500 other full and part-time employees -including professional
and administrative staff • .Including the Medical School, the University's operating budget for
1982-83 is over $176.l million of which $118.3 million is from State appropriations; book value
of physical plant assets, including the Medical School, is $321.9 million.
In 1969, the State Legislature authorized _the establishment of a medical school at the Univer-
sity. Construction of Pods A and B of the school is complete, and construction on Pod C is near
completion. The medical school opened in 1972, and ·had an enrollment of 366 for the Sprihg
Semester, 1983, not including residents. There are 47 graduate students. The -School .of
Nursing admitted its first class in Fall, 1981 and had a Spring Semester, 1983 enrollment of
108~ The Allied Health School admitted its first class in Fall, 1982, and Spring Semester, 1983
enrollment, is 7 physical therapy students.
·OTHER EDUCATION INFORMATION •••
The Lubbock Independent School District, with an area of 87.5 square miles, includes over 95%
of 'the City of Lubbock. October, 1982, enrollment was 28~825; there were 1,977 faculty and
professional personnel and 1,238 other employees. The District operates 5 senior high schools,
8 junior high schools, 35 elementary schools and other educational programs. The District
currently has under construction 3 new elementary schools and expects these to be completed and
in ·use for the Fall, 1983 semester •.
SCHOLASTIC MEMBERSHIP HISTORY*
School
Year
1972-73
1973-74
1974-75
1975-76
1976-77
1977-78
1978•79
1979-80
1980_;81
1981-82
1982-83
Student
Membership
32,063
32,499
32,209
31,733
31,502
31,163
29,877
. 29,377
28,828
28,942
28,825**
Refined
Average
Daily
Attendance
30,716
30,477
30,255
29,888
29,683
29,554
28,284
27,257
27,044
26,995
* Source: Superintendent's Office, Lubbock Independent, School District.
** As of October, 1982 (end of first six.weeks period}.
· Lubbock Christian College,a privately owned, co-educational senior college located in Lubbock,
had an enrollment of approximately 860 for the Spring Semester, 1983, and offers 23 bachelor
degree programs.
South Plains College, Levelland, Texas (South Plains Junior College District} operates a major
off-campus learning center in a downtown Lubbock, 7-story building owned by the College.
Course offerings cover technical/vocational subjects, and Spring', 1983 enrollment was ap-
proximately 1,020. The College also operates a major off-campus learning center at. Reese Air -
Force Base; course offerings are in primarily academic subjects and Spring, 1983 enrollment was
411.
-28 -
The State of Texas School for the Mentally Retarded, located on a ,220 acre site in Lubbock, now
consists of 37 buildings with ·acconvnodations for 556 students. The School's operating budget
for 1982/83 is in excess of $12.0 million. The School .is operating at 100% capacity, and has
over' 800 professional and other employees. · ·· ·
TRANSPORTATION •••
Scheduled airline transportation at Lubbock International Airport is furnished by American
Airlines, Delta Airlines, Continental Airlines, and Southwest Airlines. Non-stop service is
provided to Dallas-Fort Worth Regional Airport, Dallas Love Field, Houston, Amarillo, Austin,
El Paso and Midland-Odessa. 1982 passenger boardings totaled 505,871. Extensive private
· aviation services are located at the airport. Federal Express services are available.
Rail transportation is furnished by the Atchison, Topeka and Santa Fe Railway Company and the
Burlington-Northern, Inc., with through service to Dallas, Houston, Kansas City, Chicago, Los
Angeles, and San Francisco. Texas, New Mexico and Oklahoma Bus L-ines, a subsidiary of Grey-
hound Corporation, provides bus service. Headquarters for T.I.M.E.-DC, Inc., a transcon-
tinental motor carrier, are located in Lubbock, and several motor freight cOITIIIOn carriers
provide service.
Lubbock has a well developed highway network including 4 ·u. S. Highways, 1 State Highway, a
controlled-access outer loop and a county-wide system of paved farm-to-market roads. The U.S.
Department of Transportation is extending the Interstate Highway System to Lubbock through
construction of a 125 mile .interstate highway (Interstate ·Highway 27) linking Lubbock to
Interstate 40 ~t Amarillo; construction is in progress.
GOVERNMENT AND MILITARY •••
Reese Air Force Base, located 5 miles west of Lubbock, is an undergraduate Jet Pilot Training
Base of the Air Training Command. The Base covers over 3,000 acres and has 2,634 military and
568 civilian personnel.
State of Texas ••• More than 25 State of Texas boards, departments, agencies and commissions
have offices in Lubbock; several of these offices. have multiple units or offices.
Federal Government ••• Several Federal departments and various other administrations and agen-
cies have offices in Lubbock; a Federal District Court is located jn the City.
HOSPITALS AND MEDICAL CARE •••.
There are seven ho.spitals with a January, 1983 total of 1,508 licensed beds. Methodist
Hospital, the largest; employs 533 of its licensed 549 beds. and also operates an accredited
nursing school; St. Mary's of the Plains Hospital utilizes 203 beds of its licensed 222 beds. •
Others include West Texas Hospital with 166 beds, Highland Hospital with 123 beds, University
Hospital, Inc. with 99 beds and Community Hospital of Lubbock with 76 beds. Lubbock County
Hospital District, with boundaries contiguous with Lubbock County. owns the Lubbock General
Hospital which it operates as a teaching hospital for the Texas Tech University Medical School,
utilizing 210 of its licensed 273 ,beds.
Lubbock has over. 200 practicing physicians _and surgeons (M.D.) plus the Texas Tech University
Medical School Staff, and over 90 dentists. A radiology center for the treatment of malignant
diseases is located in the City.
RECREATION AND ENTERTAINMENT •••
Lubbock's Mackenzie State Park and 60 City parks and playgrounds provide recreation centers,
shelter buildings, a garden and art center, swimming pools, a golf course, tennis and volley
ball courts, baseball diamonds and pi cnic areas, including the Yellowhouse Canyon Lakes system
of four lakes and 500 acres of adjacent parkland extending from northwest to southeast Lubbock
along the Yellowhouse Canyon. There are several privately-owned public swimming pools and golf
courses, and 2 country clubs, each with a golf course, swimming pool and tennis courts.
The City of Lubbock has developed a 36 square block area of approximately 100 acres adjacent to
downtown Lubbock under the Lubbock Memorial Civic Center program. Approximately 50 acres
contain the 300,000 square foot Lubbock Memorial Civic Center, the main City library building
and State Departme·nt of Public Safety Offices. The west and south periphery, about 50 acres, is
being redeveloped privately with office buildings, hotels and motels, a hospital and other
facilities.
-29 -
Available -to residents are''Texas Tech University programs and events, Texas -Tech University
Museum,·Planetariuin ·and· Ranch Heritage Center exhibits and programs, Lubbock Memorial Civic
Center and ·,ts events, Lubbock Symphony Orchestra pr.cigrams, Lubbock Theatre Center, Lubbock
Civic Ballet, Municipal Auditorium and Coliseum programs and · events, the · library and its
branches, the annual Panhandle-South Plains Fair, college and high school football, basketball
and other sporting events; modern movie theatres.
CHURCHES •••
Lubbock has approximately 200 churches representing more -than 25 denominations.
_:; ': .. i, ;, .... ,'
UTILITY SERVICES •••
Water and Sewer -City of Lubbock.
Gas· -Energas Company {a division -of Pioneer Corporation).
Electric -City of Lubbock :(Lubbock Power & Light) and Southwestern Public Service:Company._.
Telephone -Southwestern Bell Telephone Company. ,,-; . .,·
MEDIA .·~. :-:---
Newspapers -1 daily (morning and evening); others semi--weekly ,and weekly.
Television and Radio -3 network TV channels and 1 educational public service TV channel; cable
TV services; AM and FM radio stations.
Year ·Tm>
1971
1972
1973
1974
1975
1976
1977
1978 ·
1979
1980
1981
1982
Bank
De~osits $ 47 ,247,184
527,314,293
596,697,439
723,327,701
793,915,466
878,164,171
1,013,973,289
1,104,602,863
1,104,896,188
. 1,219,990,000
1,369,037,000 ·
1,500,160,000
1!586,469,000
ECONOMIC INDICES (1) : -
Building
Permits
$40,035,768
69,209,358
64,278,038
78,844,779
118,718,253
114,823,400
91,904,380
131,951,646
132,600,657
104,883,750
88,829,331 -
106,757,064
130,720,599
Water
42,"ilbO
'43,012
44,331
45,565
46,745
47,817
49,933
50,825
52,629
53,705
54,788
·s5,527
·5s,112
Utility ·connections Postal
Gas Electric Telephone(2) Receipts ~ 48,966 1 _·, N.A. . $ 4,o43,407
44,421 49,970 :N.A. 4,323,582
45,168 50,717 N.A. 5,241,799
45,650 50~994 · .N.A; 5,317i985
46,548 51,739 :.N~A. 5~737~352
47,671 52,451 N.A. 6,662,348
48,809 56,0t:18(3), _ N.A. 8~027~363
50,062 60,077 83,646 10,778,787
5h266 -63,123 87,159 . 11,006,891
·52, 199 · , 65,294 . 89,873 . 11,758,260
53,083 66,885 91,546 12,882,061
53,785 ' 74,224 93,860 13,867,490
'54,650 75,975 96,950 15,875,810
Notes: (1) All · data 1970-1982 as of 12-31, except _Postal Receipts which are as of 6-30 for
1967-76 and as of 12-31 for 1977/82.
(2) Total mains plus equivalent mains -count of telephone 1 ines of all types to
'residences and businesses; not a count of·telephone·instruments.,
(3) Electric connections include those'of-a privately owned utility company. 12,.31.,.16
electric connections reflect institution of metering of individual apartment
units.
r -. , ~
' ~' . '
.:.\._:
J;'
-,30 .,.
BUILDING PERM.ITS BY CLASSIFICATION : : {Source: Citx of Lubbock2 Texas} •. Residential Permits Co11111ercial, Single Familx ouelexes Aeartments{Il Total Residentiai Public Total No. Permits No. Dwelling and Other Building Year No. Units Value ~Units~ Value No. Units Value Units Value Permits Permits 1969 427 $10,077,800 . 6( 72 $ 754,000 52 $ 364,000 . 551 tII,195,800 $!8,568,662 $ 29,764,462 1970 485 10,942,391 15( 30) 429,700 633 5,966,400 1,148 17,338,491 22,697,277 40,035,768 1971 864 20,782,556 67(134) ., 2,297,700 894 10,079;491 1,892 33,159,747 36,049,611 69,209,358 1972 852 22;667,238 75(150) 3,008,650 1,171 11,315,898 2,173 36,991,786 27,286,253 64,278,039 w 1973 815 22,702,186 52(104) .2,317,050 949 9,121,400 1,868 34,140,636 44,704,143 78,844,779 .... 1974 893 29,446,897 34( 68) 1,440,500 773 7,315,500 1,734 38,202,897 80,515~356 118,718,253 1975 1,002 37,766,603 23( 46)' 1,165,450 734 5,592,000 1,782 44,524,053 70,299,347 114,823,400 1976 1,164 44,220,463 48( 96) 2,723,150 712 6,908,000 1,972 53,851,613 .38,052,767 91,904,380 1977 1,713 72,055,014 72(144) 4,011,400 1,654 22,571,000, 3,511 98,637,414 33,314,232 131,951,646 1978 1,276 62,785,400 80(160) ?,074,550 636 9,479,000 2,072 77,338,950 55,261,707 132,600,657 1979 935 50,207;289 16( 32) 897,000 300 5,144,680 1,267 56,248,969 48,634,781 104,883,750 1980 , 895 50,943,410 . 36( 72) 2,293,900 216 3,535,500 1,183 56,772,810 32,056,521 88,829,331 1981 655 47,760,510 13f 23)* 1,389,500 748 20,415,552 1,426 69,565,562 37,191,502 106,757,064 1982 733 56,023,000 34 68) · 2,442,250 860 18,504,660 1,661 76,969,910 53,750,689 130,720,599 Notes: (1) Data· shown under "No. Units" is for each individual apartment dwelling unit, and is not for separate buildings. * As reported by City.
RATINGS
Applications for contract ratings on this issue have been made to Moody's Investors Service,
Inc. and Standard & Poor's Corporation. An explanation of the significance of such ratings may
be obtained from the company furnishing the rating. The ratings reflect only the respective
views of such organizations and the City makes no representation as to the appropriateness of
the ratings. There is no assurance that such ratings will continue for any giv.en period of time
or that they will not be revised downward or withdrawn entirely by either or both of such rating
companies, if in the judgment of either or both companies, circumstances so warrant. Any such
downward revision or withdrawal of such ratings, or either of them, may have an adverse effect on the market price of the Bonds.
TAX EXEMPTION
The City will issue its certificate to the effect that on the basis of the facts, estimates and
circumstances in existence on the date of the delivery of the Bonds, it is not expected that the
proceeds of the Bonds wi 11 be used in a manner that would cause the Bonds to be "arbitrage
bonds" under Section 103(c) of the Internal Revenue Code of 1954, as amended,
For purposes of Section 103(c) of the Internal Revenue Code of 1954, as amended, relating to
arbitrage bonds, the City has taken into account the Underwriters' discount and certain costs
of issuance in computing the yield on the Bonds. This treatment is in accordance with the
decision of the United States Tax Court, which was affirmed by the United States Court of
Appeals for the District of Columbia Circuit, in State of lWashington v. Conrnissioner, 77 T.C.
656 (1981), aff'd, 692 F.2d 128 (D.C. Cir. 1982). In their decisions the courts held invalid certain portions of the Treasury Regulations promulgated under Section 103(c) which would
prohibit such treatment of the Underwriters '.· discount and costs of issuance and under which the
Bonds would be considered to be arbitrage bonds, the interest on which :would not be exempt from
federal income tax. 1
In a news release dated March 2, 1983, the Internal Revenue Service announced that it will not
seek to. have the United States Supreme Court review the decision of the Circuit Court of
Appeals, that regulations to be published in the near future will specifically address the
issue raised in the State of Washington case, and that, until those regulations are published,
reasonable administrative costs incurred in issuing governmental obligations, including under-
writing spread may be taken into account in computing yield on governmental obligations under
Section 103(c). First Southwest Company, Financial Advisor to the City, has advised the City that the administrative costs incurred in issuing the Bonds, including underwriting spread, are
in their opinion reasonable. ·
Bond Counsel is of the opinion that the interest on the Bonds is exempt from federal income tax
under existing law. (See "Appendix B -Form of Bond Counsel's Opinionll.)
VERIFICATION OF ARITHMETICAL AND MATHEMATICAL COMPUTATIONS
The accuracy of (a) the arithmetical computations of the adequacy of the maturing principal and
interest of the Federal Securities and uninvested cash on hand under the Escrow Agreement to
pay, when due, the principal of and interest and redemption premiums, .if any, on the Refunded
Bonds and (b) the mathematical computations supporting the :conclusion of Bond Counsel that the
Series 1983 Bonds are not "arbitrage bonds 11 under Section 103(c) of the Internal Revenue Code
of 1954, as amended, will be verified by the firm of Ernst & Whinney, independent Certified
Public Accountants. Such verification sha 11 be based upon information supp 1 i ed to Ernst & Whinney by the City.
REGISTRATION AND QUALIFICATION OF BONDS FOR SALE
The sale of the Bonds. has not been registered under the Federal Securities Act of 1933, as
amended, in reliance upon the exemption provided thereunder by Section 3(a)(2); and the Bonds
have not been qualified under the Securities Act of Texas in rel iance upon various exemptions contained therein; norhave the Bonds been qualified under the securities acts of any juris-
diction. The City assumes no responsibility for qualification of the Bonds under the securi-
ties laws of any jurisdiction in which the Bonds maybe sold, assigned, pledged, hypothecated
or otherwise transferred. This disclaimer of responsibility for qualification for sale or
other disposition of the Bonds shall not be construed as an interpretation of any kind with
regard to the ava i.1 ability of any exemption from securities regi st rat ion provisions.
-32 -
LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TEXAS
All . bonds issued by an issuer shall constitute negotiable instruments, and are investment
securities governed by Chapter 8, Texas Uniform Co11111ercial Code, notwithstanding any pro,visions
of law or court decision to the contrary,' and are legal and authorized investments for banks,
savings banks, trust companies, building and loan associations, savings and loan associations,
insurance companies, fiduciaries, trustees, and guardians, and for the interest and .sinking funds and other public funds of the State of Texas or any department, agency or instrumentality .
of the State of Texas or any county, muni~ipal corporation, taxing district or other political
districf or subdivision of the State of Texas having power to borrow money and issue bonds,
notes or other evidences of indebtedness.1 No review by the City has been made of the laws in
other states to determine whether the bonds are legal investments for various institutions in
those states.
LEGAL MATTERS AND NO-LITIGATION CERTIFICATE
The City will furnish a complete transcri'pt of proceedings had incident to the authorization
and issuance of the Bonds, including the unqualified approving legal opinion of the Attorney General of. the State of Texas, to ·the. effect that the Bonds are valid and legally binding
ob 1 i gat ions of the City, and based upon examination of such transcript of proceedings, the
unqualified approving legal opinion of Bond Counsel, to like effect and to the effect that the
interest on the Bonds is exempt from Federal income taxation under existing law. The customary
c.losing papers, including a certificate to the effect that no litigation of any nature has been filed or is then pending to restrain the issuance and delivery of the Bonds, or which would
affect the provision made .for their payment or security, or in any manner questioning the
validity of said Bonds or the coupons appertaining thereto, will also be furnished. Bond
Counsel was not requested to participate, and did not take part, in the preparation of the
Official Statement, and such firm has not assumed any responsibility with respect thereto or undertaken independently to verify any of the information contained therein, except that, in
its capacity as Bond Counsel, such firm has reviewed the information contained in the cover
page of this Official Statement and under the captions "Refunding Plan", "Selected Provisions
of the Ordinance" and "Tax Exemption" and such firm is of the opinion that the information
relating to the Bonds and the Ordinance contained in such portions of the Official Statement in
all material respects accurately and fairly reflects the Provisions thereof. The legal fees to
be paid Bond Counsel for services rendered in connection with the issuance of the Bonds are
contingent on the sale and delivery of the Bonds. The legal opinion of Bond Counsel will be printed on the Bonds. Certain legal matters will be passed upon for the Underwriters by Messrs.
Hutchison Price Boyle & Brooks. ·
AUTHENTICITY OF FINANCIAL INFORMATION
The financial data and other information contained herein have been obtained from the City's
records, audited financial statements and other sources which are believed to be reliable.
There is no guarantee that any of the assumptions or estimates contained herein will be
realized. All of the surrmaries of the statutes, documents and resolutions contained in this
Official Statement are made subject to all of the provisions of such statutes, documents and
resolutions. These su11111aries do not purport to be complete statements of such provisions and
reference is made to such documents for further information. Reference is made to original
documents in all respects.
UNDERWRITING
The Underwriters, Rauscher Pierce Refsnes, Inc. and Blyth Eastman Paine Webber Incorporated
have jointly and severally agreed, subject to certain conditions, to purchase the Bonds from
the City, at a discount of $169,950.60 from the initial public offering prices set forth on the
cover page hereof. The Underwriters' obligations are subject to certain conditions precedent,
and they will be obligated to purchase all of the Bonds if .any Bonds are purchased. The Bonds
may be offered and sold to certain dealers and others at prices lower than such public offering
prices, and such public prices may be changed, from time to time, by the Underwriters.
FINANCIAL ADVISOR
First Southwest Company is employed as Financial Advisor to the City in connection with the
issuance of the Bonds. The Financial Advisor's fee for services rendered with respect to the
sale of the Bonds is contingent upon the issuance and delivery of the Bonds. First Southwest
Company is not a member of the underwriting group purchasing the Bonds.
-33 -
CERTIFICATION OF THE OFFICIAL STATEMENT
At the .time of payment for and delivery of the Bonds,-the Underwriters will be furnished .a
certificate, executed by ·proper officers, acting in their official capacity, tq the effect that
to ,the best of their knowledge and .belief: (a) the descriptions and statements of or pertain-
ing to the City contained in its Official Statement on the date of such Official Statement, on
the date of sale of said Bonds and on the date of the delivery, were and are true and correct .in
all material respects; (b) insofar as the City and .its affairs, including . its financial
affairs, are concerned,.such Official Statement did not and does not contain an untrue state-
ment of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances under which they
were made, not misleading;· (c) insofar as the descriptions and statements, including financial
data, of or pertaining to entities, other than the City, and their activ,ties contained.in such
Official Statement are concerned, such statements and data have been obtained from sources
which the City believes to be reliable and . that the City has no reason to believe that they are
untrue in any material respect; and (d) there has been .no material adverse change in the
financial condition of the City since the date of the last audited financial statements of the City. · . ...
This Official Statement was 'approved, and the execution and delivery of this Official Statement
authorized, by the City on May 12, 1983.
/s/ BILL McALISTER
Mayor
ATTEST:
/s/ EVELYNE. GAFFGA
City Secretary \ '
' .. _,
. '
-34 -
APPENDIX A
The information contained in this Appendix has been reproduced
from the City of Lubbock, Texas Annual Audit Report for the
Fiscal Year Ended September 30, 1982. The information pre-
sented represents only a part of the Annual Audit Report and does not purport to be a complete sta'tement ;of : the City's
financial condition. Reference is made to the complete Annual
Audit Report for further information.
· [THIS PAGE INTENTIONALLY I..EFf BLANK]
MASDN, NICKELS & WARNER
r•or•{]~[w
CIE!ATll"IE,::) PUBLIC ACCOUNTANTS
SUITE 4S0 I TOWER OF THE PLAINS 15010 UNIVERSITY AVENUE IP.•. BOX :3B70 I LUBBOCK, TEXAS 79452 ICBOSJ 797-:3251
Uonorable Bill McAlister, Mayor
Members of the City Council
~Hy of Lubbock, Texas
We have examined the balance sheet of the Electric Enterprise Fund (Lubh9ck
Power and Light) of the City of Lubbock, Texas; as of September 30, 1982 and
September 30, 1981, and the related statements of operations and changes in
financial position for the years then ended. Our examination was made in ac-
cordance with generally accepted auditing standards and, accordingly, included .
such tests of the accounting records as we considered necessary in the
circumstances.
. . ,
In our opinion, the financial statements referred to above present fairly the
financial position of the Electric Enterprise Fund (Lubbock Power and Light) of
the City of Lubb<;>ck as of September 30, 1982, and September 30, 1981, and the
results of its .operations and changes in financial position for the years then
ended, in conformity with generally accepted accounting principles applied on a
consistent basis.
The Statement of Operating Expenses By Department and Schedule of Fixed Assets
And Depreciation was derived from the accounting records tested by us s a part
of the auditing procedures followed in our examination of the aforementioned
financial statements and in our opinion it is fairly presented ,in all material
respects in relation to the financial statements taken as a whole; however,
they are not necessary for a fair presentation of the financial position,
r~sults of operations and changes in finartcial position.
Lubbock, Texas
December 10, 1982
A-1
M •M •l!R• I AMERICAN INSTITUTE OF CEATIFIEO PUBLIC ACCOUNTANTS I TEXAS SOCIETY OF CERTIFIEO PUBLIC ACCOUNTANTS
CITY OF LUBBOCK; TEXAS
ELECTRIC .ENTERPRISE FUND
LUBBOCK,: POWER '& LIG~T
COMPARATIVE BALANCE S~EET
_ September )0, · 1982 a~d 1981
----==---------------=-------------------======---------==--~--=-------------===----
Assets' 1982 ' 1981
--.--------------------------------------------------------------------------------Current assets:
Cash and investments
Accounts receivable-less allowance
for doubtful accounts (1982-$328,579
1981-$433,929)
Due from other funds
Interest receivable
Inventory less allowance for obsolete
inventory (1982-$12,526: 1981~$12,52~)
Prepaid: expenses · · · · ·
..
'Total Current assets
Restrfctea' 'assets:
Revenue bond· construction account
Cash and investments
Revenue bond current debt services account
• di.sh' ind fovestments · :
,-, Reveriue. bond_ futui-e d~bt service account
Cash and investments ·
Total ·restrictea~assets
Property, plant, and equipment:
Land
Buildings··
Improvements · other . than buildings ·
Machinery and equipment
Consttuction ih_~rogr~ss
Less accumulated depreciation
Net prope-rty, p~ant and equipment
Total assets
A-2
$ 1,981,844 $
309,317 '
1,229,675
-_ 39,989
229,693
4,90t,·045
__ 2,852
228,451
1,692,405
·14 ,836 ---------~ -. -
9,607,357 7-1135,282
---------------
5,371,296
536~748
:· 2., 753,056
. 475,485
1_,667 ,191
65,109,949
i, 744 ,'186
1,749,087
· 70,745,898
(27,551,203)
9,396 ,31:4
1~3s~·~593 -
-· .
---1_ .-• -----.. 1~ ,440 ,~72
44'5, 227
. ·1, 667,:191
--. 57,512,765
·1,379 ,369
_ 5,435, 62/+
66,440,176
(25,713,204)
-------------------·-------43,194,695 40,726,972
$ 61,463,152 $ 60,302,726
=========~ ~ =============
CITY OF LUBBOCK, TEXAS
ELECTRIC ENTERPRISE FUND
LUBBOCK :POWER & LIGHT COMPARATIVE BALANCE SHEET
September 30, 1982 and 1981
Liabili~ies and Fund Equity 1982 1981
------------------------------------------------------------------·-----------------Liabilities:
C~rrent liabilities (payable from current assets): -
Accounts and vouchers payable
Due to other funds
Other accrued expenses
States sales tax payable
Deferred revenue
Total current liabilities
(payable from current assets)
Current liabilities (payable from restricted assets):
Accounts and vouchers payable
Current portion of revenue bonds payable
(includes unamortized premium (1982-$22,249; 1981-
$23,732)
Accrued revenue bond interest
Total current liabilities (payable from
restricted assets
Long-term liabilities:
Revenue 1 bonds' ( net of current port ion includes
unamortized premium-1982-$155,745; 1981-$177,994)
Advance from other funds
Total long-term liabilities
Total liabilitieA
Fund Equity:
Contributed capital
Municipa'lity ·
Total tontributed capital
R_etained ea_rnings:
Reserved per revenue bond indentures
Reserved for capital improvement
Unreserved
Total retained earnings
Total fund equity
Total liabilities and fund equity
See accompanying notes to financial statements
A-3
$ 2,962,964
157,128
81,517
3,201,609
30,000
1,862,249
869,753
2,762,002
20,375,744
7,256,635
27,632,379
$ .. 2,245,258
10,'332
133,020
54,497
8,958
2,452,065
9,155
1,413,732
509,609
1,932,496
22,237,994
8,206,635
30,444,629 ·
--------·------------------,., '
33,595,990
7,725,981
7,725,981
5;899,098
822,069
13,420,014
20,141, IR 1
27,867,162
34,829,190
7,720,261
7,720,261
10,507,975
522,667
6,722,633
17,753,275
25,473,536
$61,463,152 $60,302,726 s~-=------~-=: ===========z=
cro: ,OF LUBBOCK, ,TEXAS
ELECTRIC ENTERPRISE FUND
LUBBOCK, POWER & LIGHT --
COMPARATIVE STATEMENT OF REVENUES,
EXPENSES~ -AND CHANGES IN RETAINED EARNINGS
Year Ended September 30, 1982 arid "'1981 .
--------------=-----------------====--====-----==---================================
1982 1981
----------.------------------------------------------------------------------------Operatin'g Revenues-
charges for services
Operating Expenses:
Personal setvices
Power plant fuel
Purchased power
Supplie·s ---
Maintenance
Other charges
Depreciation
Total operating expenses
Operating income
Nonoperat ing reve·nues (expenses):
Interest
Disposition of p~operties
Miscel.laneous income
Interest expense
Total nonoperating·revenues (expenses)
Transfers· in (out):
To debt service fund
To general .fund
Total transfers
Net income (loss)
Retain~d earnings at beginning of year
Retained earnings at end of year
See accompanying notes to. financial statements
A-4
$ 39,890,883 $ 34,002,728
3,454,699
23,635,233
4~149,909
451,.267
442 ,'755
1,198,961
1,952,041 ·
35,284,865
4~606,018
1,579,820 • , . I
169,225
49,807
(1,909,272)
( 110,420)
3,059,580
25,084,135
393,860
657,310
1,198,942
--,1,886,725
32,280,552
1,722,176
615,724
.8,376
66,288
( 826,443)
( 136,055)
_ ( 42,234)
(2:10/,692) '(1,753,134)
(2,107,692)
2,387,906
'17,753,275
(1,795,368)
(' 209,247)
17,962,522
-------· ------------------$ 20,141,181 $17,753,275
============== =============
CITY OF LUBBOCK, TEXAS
ELECTRIC ENTERPRISE FUND
LUBBOCK, POWER & LIGHT
COMPAR.AT!VE STATEMENT OF CHANGES
IN FINANCIAL POSITION
Year Ended September 30, 1982 and 1981
==============================================================================~=====
Sources of working capital:
Operations:
Net income
Item not requiring working capital-
depreciation
Working capital provided by operations
D~crease in re~tricted assets
Increase in contributed capit~l
· increase long-term liabilities
Increased liabilities payable from
restricted assets
Total sources of working capital
Uses of working capital:
Acquisition of fixed assets
Increase in restricted assets
Decrease in lohg-term liabilities
Total uses of --working capital
Net increase (decrease) in working capital
Elements of net · increase (decrease) _in net working
capital:
Cash and investments
Receivables (net)
Due from other funds
Inventory of materials and supplies
Prep.aid expenses
Accounts payable
Due to other funds
Deferred revenue
Accrued liabilities
Net increase (decrease) in working capital
See accompanying notes to financial statements
A-5
-1982
$ 2,387,906
1,952,041
4,339,947
3,779,372 -
5,720
829,506
8,954,545
4,419,764
2,812,250
7,232,014
$1,722,531
'1981
$ ( 209,247)
1,886,725
1,677,478 -
11,286,268
85,061
13,048,807
3,961,-845
6,698,652
,--
10,660,497
$' 2,388,310
============== =============
$1,752,151
1,220,353
( 2,852)
( 462,730)
( 34,847)
( 744,726)
10,332
8,958
( 24,108)
$1,722,531
$ 200,934
113,626
(3,232,120)
( 18 :,569)
( 43,567)
2;215,802
3,208,796
-( 69)
( 56,523)
$2,388,310
============== =============
CITY OF LUBBOCK, TEXAS
· ELECTRIC ENTER~RISE F;UND
COMPARATIVE STATEMENT OF OPERATING
EXPENSES ·BY DEPARTMENT
/
Year Ended September 30, 1982 and 1981
----=-=----=-=--------a-~-s--:-s-=-=--=-s-=-=--=-~-~-=-=----x-===----------------=--
1982 1981
--------------------------------------------------------------------------------Administration;.
Personal services
Supplies
·Maintenance
Other services and charges
E lee tric ·,production:
Personal services
Supplies
Maintenance
Other charges
El~ctric distribution:
Personal services
Supplies
Maintenance •
Other charges
Electric promotion:
Personal services
Supplies
Maintenance
Other charges
C~llections:
· Personal services
Supplies
Maintenance
Other charges
Uncollectible accounts
See accompanying notes to financial statements
A-,6
:$ 150.002 $ 133,833
3,989 3,252
1,962 1,183
45,090 37,216
201,043 175,484 ---.---------1,636,965
28,003,412
179,523
290,796 '.
30,110,696
1,202,765
. , 138 ,_406 ,
249,450 .-
153, 206
1,502,508
25,275,956
433,369
339,966 ---.-'-------· ' . '
27,551,799
1,025, 791
121,100
.. , .210,804
. 196,511
1,743,827 1,554,206
185,052 -
10,554
4.122 ,
196,459
144,637
10,199 .
4,587
187,709
396,187~ 347,132
-279, 915
80,048 .
7,700,)
153,258
360,150
252,811
67,487
7,367
127,325
310,216
881,,Cgl i . ..: 765,206
$ 33,332,824 $ 30,393,827
)> I ..... ~·J CITY OF LUBBOCK, TEXAS ELECTRIC ENTERPRISE FUND SCHEDULE OF FIXED ASSETS AND DEPRECIATION Year Ended September 30, 1982 ' ' ••az=~•••=2=~•=•=•==~=•=a•=•••====•==z~=•c====•=•====•••====:=••••=•=~•••=•=••a•=sz=~•====~•======••===•==•a•===:2aa•••=•••••x•••• _ Pr-operty and Equipment ·Allowance for Depreciation -------·---------·-· -----------------------------------------------------------· -----------·-----------09-30-81 Additions Deletions 09-30-82-09-30-81 Additions Deletions 09-30..;82 Book Value . . ·. -------------------------------------------·-----------------·-----------------------------------------------------------$ 445;228 $ 30,289 · $ -· 475,485 $ $ Land 32 $ 5,678 $ 298 --$ 5,976 $ 469,509 Buildings 1,667,191 ----1,667:191 -850,829 33,273 --884,102 783,089 Improvements other than buildings 57,512,765 7,810,297 213,li3. 65,109,949 24,00?,483, 1,747,313 35,644 25,721,152 39,388,797 Machinery and equipment ,-1,379 ,3~9 444,606 79,789 · 1, 744,186_.· .. 847,ii4 _171,156 78,397, 939,973 804,213 Construction in progress s·,435 ,624 4,043-,538' 7,730,075 1,749,087 ------·--1,749,087 -----------------------------------·--------------·. ---------------------------------------· Total $66,440,177 $12,328,730 $8,023,009 $70,745,898 .$25 ,,713 ,204. $1,952,040 $114,041 $27,551,203 $43,194,695 •=::s=·=••-== ••:a==•=-•= •c:11•=2=••• -==-•a•caza =-•••2=-=a•• -----~----••==r=a•••= ---------= -------•::.:=
CITY OF LUBBOCK, TEXAS
ELECTRIC ENTERPRISE FUND
Notes to Financial Statements
September JO, 1982
(1) Summary of Significant Accounting Policies
The accounting policies of the City of Lubbock, Texas conform to gen-
erally accepted accounting principles as applicable to governments. The
following is a summary of the more significant policies:
A. Fund Accounting
The accounts of the City are organized on the basis of funds and
account groups, each of which is considered a separate accounting
entity. The operations of each fund are accounted for with a
separate set of self balancing ac~ounts that comprise its assets,
liabilities, fund equity, revenues, and expenditures, or expenses,
as appropriate.
Enterprise Funds are used to account for operations: (a) that are
financed and operated in a manner similar to private business
enterprises where the intent of the governing body is that the cost
(expense including·depreciatioh) of providing goods or services to
the general public on a continuing basis be financed or recovered
primarily through user charges; or (b) where the governing body has
decided that periodic :determination of revenues earned, expenses
incurred, and/or net income is appropriate for capital maintenance,
public policy, 'management control, accountability, or other purposes. I
8. Fixed Assets and Long-Term Liebiliti~~
The accounting end reporting treatment applied to the fixed assets
end long-term liabilities associated with a fund are determined by
its measurement focus. The Electric Enterprise Fund is accounted
for on a cost of services or "capital maintenance" measurement
focus. This means that all assets and all liabilities (whether
current or noncurrent) associated with their activities· are included
on their balance sheet. The reported fund equity (net total assets)
is segregat.,.d into contributed capital and retained earnings
components. Operating statements present increases (revenues) and
decreases (expenses) in .net total assets.
·A-8
Depreciation of all exhaustible fixed assets used by the Electric
Enterprise fund is charged as an expense against its operations •
. Accumulated depreciation isi reported on proprietary fund balance
sheets. Depreciation has been provided over the estimated useful
lives using the straight line method. The estimated useful lives
are as follows:
Land Betterments
Bµildings
Improvements
Equipment
C. Basis of Accounting
5 100 years
5 -50 years
5 -100 years
·2 -100 years
I
Basis of accounting refers to when revenues and expenditures or
expenses are recognized in the accounts and reported in the fi-
nancial statements~·
The Electric Enterprise:fund is accounted for using· the accrual
basis of accounting. Revenues are recognized when they are earned,
and expenses are recognized when they are incurred. Unbilled
utility service receivables are recorded at year end.
D. Cash and Investments
Cash balances of most City funds are pooled and invested. Interest
earned from investments purchased with pooled cash is allocated to
each of the funds·based on the fund's average equity balance.
Investments are carried at cost or amortized cost.· The City
contract with the Depository Bank requires that an average monthly
balance be maintained in "demand" accounts to compensate for
services rendered. This compensating balance is based on a formula
which assumes bank earnings at the average 30 day Treasury Bill
Yield rate to·allow $150,000 annual earnings on these uninvested
funds.
E. Inventories
Enterprise funds -Inventories of materials arid supplies are stated
at cost determined on a moving average. As inventory is used, its
cost is considered an expense.
. !
. F. ..-. Reserves• and Designations ·
' . . Portions of· fund .equity. ere: · ( 1) legally restricted (reserved) for
future use, or (2} not available for future appropriation or
expenditure.
G. Accumulated Unpaid Vacation, Sick Pay, and other Employee Benefit
Amounts
The City does not accrue accumulated vacation or sick leave for
enterprise funds, but. rather expenses these costs as paid. Ac-
cumulated amounts, as of September 30, 1982, are immaterial and do
not exceed a normal year's accumulation.
H. Comparative Data
Comparative total data for the prior year have been presented in the
accompanying financial statements in order to provide an under-
st~nding pf changes in the Cit~•s financial .position and opera-
tions.
2) fixed Assets
Electric Enterprise fund property, plant, & equipment at ,9/30/82
fol-lows:
-i ·' '
Land
.Building
I~provements other
than building
Machinery & Equipment
Construction in progress
Total
less accumulated
depreciation
Ne~ Fixed Assets
(3) Changes in long-Term Debt
. 475,485
:1,667;191 ,
. 65,109,949
· 1,744,186
1,749,087
70,745,898
27,551,203 ,
43,194,695 .
Bonds payable at September 30, 1982 are comprised of the following (in
thousands of dollars):
A-10
Electric Revenue Bonds
Interest::Rate .
2. 75 to 4. 75 .
3.00 to 5.00
4.50 to 6.50
4.50 to 7.00
5.00 to 7.50
6.25*
12.9837
Issue·Oate
·4-15-64
3-15-65
7-15-73
3-15-75
9-15-75
4-15-76
8-27-81
final
Maturity
Date .
10-15-83
4-15-85
4-15-93
4-15-95
4-15-96
4-15-97
4-15-02
Amount
•Issued
$4,500
. 3,000 '
6,000
6,400
2,000
4,400
9,000
$35,300
Balance
Outstanding
September 30,
1982
$ ',450
450
3,300
4,160
1,400
3,300
9,000
$22,060
* These bonds were issued at a premium to yield an effective rate of
5.575783%.
(4) Retirement Commitments
The City participates in U.S. Social Security coverage for all its
employees, excluding firemen. Other contributory retirement plans for
employees have also been approved by the City, but the assets of the
plans are not the property of the City, end therefore are not included in
the accompanying financial statements.
All eligible permanent .employees of the City, other than firemen, are
covered by a statewide retirement plan administered by the Board of
Trustees of the Texas Municipal Retirement System (TMRS). The City's
contribution to the TMRS is determined by actuaries as a percentage of
participants' salaries in accordance with the Texas Municipal Retirement
System Act.
The City has adopted "updated service credit", increasing retirement
benefits effective January 1, 1983. Unfunded prior service liability is
being amortized over a period of 25 years.
Electric fund contributions to the retirement fund, charged to operations
during the fiscal year were as follows:
Social Security
TMRS
$ 270,699
264,255
A-11 ,
(5)
,, .. ~.
Litigation
The City is a defendant in litigation seeking alleged damages plus
potential interest and costs of $850,000. This case (a consolidation of
several cases)dnvolving a building fire was set for trial on December 3,
> 1982. The trial has been postponed and, because of the postponemeht., the
City Attorney is of the opinion that there is now no chance for this case
to effect the current fiscal year. The City Attorney is also of the
.: opinion that the City's defenses are unusually strong in this case and
the City will prevail.
·-··· '!,,
·: i, :
A ... 12 :
APPENDIX B
FORM OF BOND COUNSEL'S OPINION
. [THIS PAGE INTENT~ONALLY LEFT BLANK]
DUMAS, HUGUENIN, BOOTHMAN & MORROW P'ULBRIGHT & .JAWORSKI OFP'ICES
ll!OOI BRYAN TOWER, SUITE .1400
DALLAS, TEXAS 75_201
TELEPHONE li!14) 989·0989
BANK 0,,-THE SOUTHWEST BUILDING LANDMARK BUILDING, SUITE ZOO
HOUSTON, TEXAS 17002 705 EAST HOUSTON AVCNUE
TELEPHONE \713) 85_1-151151 SAN ANTONIO, TEXAS 7820!5
-TELEX 79~ze2• TEL!:.PHONE (SIZ) 214-5$15
1150 CONNECTICUT AVE,,N.W-2001 8RYAN·TOWER
WASHINGTON. o:c.200:se SUITE 1400
LANDMARK BUILDING, SUITE c!OO . . .. -
705 EAST HOUSTON AVENUE
SAN ANTONIO, TEXAS 78205
TELEPHONE \5121 c!24·SIS22
TltLEPHONE 12021 452·8800 DALLAS, TEXAS 75201
TELEX 89·2802 Tl:LEPHONE 1214) 989·1889
AMERICAN BANK TOWEFI, SUITE t740 Z ST . .JAME&0S _PLACE
221 WEST SIXTH STREET LONDON, SWIA INP
AUSTIN, TEXAS 78701 TELEPHONE 101) 1529·1Z07
TELEPHONE '5121474-SZOI TELEX 28310
$10,770,000
CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND
POWER SYSTEM REFUNDING REVENUE BONDS, SERIES 1983
DATED MAY 15, 1983
IN REGARD to the authorization and issuance of the
above.described Bonds (the "Bonds") by the City of Lubbock,
Lubbock.County, Texas, we have examined into the legality
and validity of the .Bonds, which are .numbered consecutively
from One (1) upward, each in the denomination of $5,000,
mature on April 15 in each of the years 1984 through 2002,
unless redeemed prior to maturity in accordance with the
terms and conditions stated on the face of the Bonds, and
bear interest from date until paid, or the redemption thereof,
at the following rates per annum:
bonds maturing in the year 1984 at 5.50%;
~onds maturing in the year 1985 at 5.75%;
bonds maturing in the year 1986 at 6.25%;
bonds maturing in the year 1987 at 6.5o%i
bonds matur.:Lng in the year 1988 at 6.75%;
bonds fuaturing in the year 1989 at 7.00\j
bonds maturing in the year 1990 at 7-. 40%;
bonds maturing in the year 1991 at 7.70%;
bonds maturing in the year 1992 at 8.00%;.
bonds maturing in the year 1993 at 8.15%;
bonds matuiing in the year 1994 at 8.30%;
bonds maturing in the year 1995-at 8. 40%;
bonds maturing in the year 1996 at 8.50%;
bonds maturing in the year 1997 at 8.65%;
bonds mafuring in the year 1998 at 8.75%;
bonds maturing in the year 1999 at 8.90%;
bonds maturing in the years 2000 through 2002 at 9.00%;
B-1
,.
such interest being evi<lenced by coupons and .payable on
October 15,·1983, and semiannually thereafter on April 15
and October 15 in each year. ·
. 'WE HAVE SERVED AS BOND COUNSEL TO THE CITY solely for
the purpose of· rendering an opinion as to the authorization,
issuan6e, delivery, legality and validity of the Bonds under
the -Constitution and laws of the ~tate of Texas, the release
and discharge of the lien on and pledge of the revenues
securing the payment of the City's bonds being refunded by
the Bonds, the exemption of interest on the Bonds from
federal income taxes and none other. We have not been requested
to investigate or verify, and have not independently investigated
or verified, any records, data or other material relating to
the financial condition or cap~bilities of the City or the .
City's Electric Light and Power System and have not assumed
any responsibi~ity with respect thereto.
WE HAVf EXAMINED applicable and pertinent provisions of the
Constitution and laws of the State of Texas, and the "Special
Escrow Fund Agreement" (the' "Escrow Agreement") between the
City and the Texas Commerce Bank, National Association, Lubbock,
Texas (the "Escrow Agent"), the report of Ernst & Whinney,
Certified Public Accountants, a ·transcript_· of the certified
proceedings of the City relating to the authorization and issuance
of the Bonds, including the ordinance authorizinij the issuance
of the Bonas· (the "Ordinance") , customary certifications and --
opinions of officials of th~ City and oth~r showings pertinent
to the authoriz~tion' and is~uance of the Bohds: . -· ·
WE ALSO HAVE EXAMINED executed Bond Number One .of said
series and find same in due form of law and properly executed.
. ! -. . .
BASED · ON OUR EXAMINATIONS I IT . IS OUR OPINION that thet Escrow
Agreement has been duly authorized;· executed ·and delivered
and constitutes a binding and enforceable agreement between the
parties thereto in accordance with its terms arid that the·
outstanding and unpaid "City of _Lubbock, Texas, Electric Light
and Power System Revenue Bonds, ·serj,.es 1981" being refunded,
discharged, paid and retired with the proceeds of the Bonds,
and the terms of the ord_inance authorizing their issuance,
have now been appropriately defeased and _are regarded as being
outstanding only for the purpose of receiving payment out of
the funds provided therefor now held in trust for that purpose
by the Escrow Agent, pursuant to the terms of the Escrow
Agreement and in accordance with .the· provisions of Article 717k,
V.A.T.C.S. In rendering·such: opinion~ we have relied upon
the verification of Ernst & Whinney as to the sufficiency of
cash arid investments deposited with the EscrowAgent for pti~poses
of paying the oblig~tions being refunded with the pioceed~'of
the Bonds and the interest thereon.
IT IS OUR FURTHER OPINION that the Bonds were duly authorized
and issued il'\ compliance with the Constitution and ·laws of the
State of Texas now in force and constitute valid and legally
binding special obligations of the City of Lubbock, Texas,
in accordance with the terms and conditions thereof and,
together with the outstanding Previously Issued Bonds (identified
and defined in the Ordinance),are payable solely from and equally
secured by a first lien on and pledge of the Net Revenues (as
defined in the Ordinance) of the City's Electric Light and Power
System. The City has reserved the right, subject to satisfying
the terms and conditions prescribed tllerefor in the Ordinance,
to issue additional parity obligations payable from the same
source and equally secured in the same manner as the Bonds .,.....-
and the Previously Issued Bonds. ·
IT IS ALSO OUR OPINION that interest on the Bonds is
·exempt from federal income taxes under existing law. In
considering the matter of whether the Bonds are "arbitrage
bonds" under Section 103(c) of the Internal Revenue Code of
1954, as amended, we have examined certain certifications
and other showings regarding the use and investment of the
proceeds of the Bonds and a report of Ernst·& Whinney,
Certified Public Accountants, wherein there are presented
yield calculations and methods employed in such computations.
In rendering our opinion with regard to the tax exempt status
of the Bonds, we have relied upon such certifications and the
report of Ernst & Whinney for the mathematical accuracy of
the yield calculations referred to above.
B-3
' ' S'--·
. . .
. [TH]S PAGE INTENIIONALLY LEFT BLANK]
APPENDIX C
INFORMATION CONCERN1NG GENERAL OBLIGATION .
BONDS, VALUATIONS, TAXES AND PENSION FUNDS
The information set forth in Appendix Chas been obtained from
the sources indicated therein which the City believes to be reliable, however, such information is subject to change with-
out notice and neither the delivery of the Official Statement
nor any sale made thereunder shall create any implication that
there has been no change in the information since the date of
the Official Statement. The Underwriters make no representa-
tion as to the accuracy or completeness of the information
contained in this Appendix C.
[THIS PAGE INTENTIONALLY LEFT. BLANK]
VALUATION AND DEBT INFORMATION ·
1982 Market (Appraised) Valuation $3,345,l~0,027
Less Reductions and Exemptions at Market (Appraised) Value(l):
Agricultural/Open-Space Reductions
Over 65
Disabled Veterans
Disabled
1982 Taxable Assessed Valuation (100% of
1982 Net J\ppraised Valuation) (2)
$10,090,967
104,433,990
t,183,380
4,181,680 120,890,017
$3,224,270,,010
City Funded Debt Payable From Ad Valorem· Taxes
(as Of 2-l-83}(see Notes 3 and 4): ..
' General Purpose Bonds (Including $13,575,000 Bonds sold 4-28-83)
Waterworks Bonds (Includes $5,200,000 Bonds sold 4-28-83)
. Sewer System Bonds
Total Funded Debt Payable from Ad Valorem Taxes
Less Self-Supporting Debt(3):
· Waterworks Bonds
Sewer System Bonds
Total General Purpose General Obligation Debt
$31~589,090
3,780,803
$35,369,893
Interest and Sinking Fund, All General Obligation Bonds (as of 2-1-83) ·
$48,705,107
. 31,589,090
3,780,803
$84,075,000
$48,705,107
$3,079,439
Ratio Tota 1 Funde'd Debt to Taxable Assessed Va 1 uat ion --------.. --------"--------------2. 61%
Ratio Total General Purpose General Obligation Debt to Taxable ·Assessed Valuation----1.51%
1983 Estimated Population -181,500*
Per Capita 1982 Taxable Assessed Valuation .. $17,764.57
Per Capita Total General Purpose General Obligation Debt -$g68.35
Ar~a -91.5 Square Miles
* Source: City of .Lubbock, Texas. :-
Note 1: Agricultural/Open-space reductions granted to owners of productive lands under Sec-
tions 1-d and l-d-1, Article ¥Ill of the State Consti~ution.
The exemptions apply to either real or personal property assessments to a maximum of: (1)
$16,700 market. value of a residence . homestead_ for those 65 years of age or older; (2) $3,000
Assessed Valuation for disabled veterans; and (3) $10,000 market value of a residence homestead
for the disabled. The above home stead exemptions must be declared between :January' l _and April
30 of the tax year, but, since delays in filing are permiss'able, some additional exemptions are
anticipated. · · · '
Note 2: Assessed values of the capital _shares of 10 banks(1982 Taxable Assessed Valuation -
$93,:942,590), which are under 1 itigatiOn, and certain other litigated ~982 Msessed Values
($3,223,290) are included in the 1982 Taxable Assess·ed Valuation. ·
'. l ,
Note 3: ·The City of Lubbock transfers to the General Fund each fiscal ·year.:
(1) from Water Revenue Fund surplus, an amount_ at least equivalent to debt
service requirements ori Waterworks System General _Obligation Bonds; ahd
· (2) from Sewer Revenue Fund surplus, an amount at .least equivalent to debt
service requirements on Sewer System Genera 1 Ob 11 gat ibn Bonds, . ·
'' . t.
Since both Waterworks and Sewer General Obligation Bonds are self-"stJpporting, due to these
transfers, the City's General Purpose General Obligation Debt has been calculated as -shown.·
C-1
Note 4: The above statement of indebtedness does not include outstanding $20,220,000 Electric
Light and Power System Revenue Bonds, or the $10~680,000 Electric Light and Power System
. Refunding Revenue Bonds being issued at this time, as these bonds are payable solely from the
riet revenues derived from the System. The statement also does not include outstanding
$2,140,000 Airport Revenue Bonds, as these bonds are payable solely from gross revenues derived
from the City of Lubbock Airport.· In addition, $2,600,000 General Obligations Bonds, due
February 1, 1983, have been deducted from outstanding General Obligation Debt. The Waterworks
System and the Sewer System are unencumbered with Revenue Bond Debt.
OTHER LIABILITIES
(1). On September 1, 1976, the City purchased the land and buildings,. owned by Auto Realty
Company, lnc., located illlllediately north of City Hall. For many years previously, this
property was the site of a Ford Motor Company dealership. Included in the purchase were 81,250
square feet of land and six buildings of various sizes totaling 52,614 square· feet. A part of
the property is being used as a City Hall Annex and the balance iS being converted to a Transit
~ystem maintenance and storage faci 1 ity. . · •. ·
Total purchase price was $389,820.00. Prior to purchase, the City obtained various appraisals
of the property which varied from a high of $1,432,095 to a low of $362,860. Of the $389,820
purchase price, the City paid $40,000 in cash at the time of closing and executed its note for
$349,820 for the balance. This note is classified as part of the City's General Long-Term Debt
and is payable from the General Fund. The outstanding principal balance on September 30, 1982
was $238,852 which matures in 9 annual installments, September 1, 1983 through September 1,
1990, with interest calculated at 7%.
Note Amortization Schedule
Fiscal
Year
. En~ing ·· Principal Outstanding
9-30 Interest Total Balance -rm-$238,852.00
1983 $23,280.40 $16,719.60 .$ 40,000.00 215,571.60
1984 24,910.00 15,090.00 40,000.00 190,661.60
1985 26,653.60 13,346.40 40,000.00 .164,008.00
1986 28,519.60 11,480.40 40,000.00 135,488.40
1987 30,515.60 9,484.40 40,000.00 104,972.80
1988 32,652.00 7,348.00 40,000.00 . 72,320,80
1989 34,937.60 5,062.40 40,000.00 37,383.20
1990 ., 371383.20 22616.80 . 402000.00 ·. ~o-
. $238,852.00 $81,148.00 $320,000.00
Jn order to provi.de for. a majority of each annual installment on the note, the City Council
directed the 'investment of $399,324.00 of General Fund surplus cash in. $384,000.00 par value of u •. · s. Treasury Bonds, the interest earnings on t~ese bonds to '. be applied to the annual
$40,000.00 installment on the note. Annual interest earnings on the bonds total $30,990.00,
leaving a balance of $9,010.00 to be budgeted from the General Fund each year. ·
(~) Leases Payable .... Qi, September 30, 1982, the City had an outstanding balance of $159,857
on two lease-purchas·e contracts covering the acquisition of . computers. The balance of one
lease, $126,775, was paid off on December 15, 1982. The second lease, payable in 16 monthly
installments of Jl,946 .and 1 ,final monthly installment of $1,940, from October, 1982 through
February, 1984, will have a b_alance of $9,725 on September 30, 1983. ·
>(3) Acquisition and. Renovation of Sears Building ... On Octobe~ 15, i982, the City of Lubbock
entered into an agreement with the American State Bank, Lubbock ("American"), to purchase the -
_96,810 square foot. "Searsll building located in downtown Lubbock. Originally constructed by
Sears, Roebuck. &_.Co., the building and site were sold to the adjacent American State Bank
following Sears construction of new facilities in South Plains Mall, Lubbock, several years
ago •. The City also acquired 3 additional sites near the .Sears site for parking expansion in the future. ' . . . . . . " . . .
C-2
The City is in the process of renovating and remodeling approximately 55.000 square feet of the
. Sears building to house administrative and City Council functions. The Sears site will provide
parking space for 205 vehicles; later expansion will expand parking capability to 450 vehicles.
Estimated cost of the entire completed project is $3,250,000:
Acquisition of Sears building/site
Purchase of additional property
Renovation of 55.000 square feet
Other cost · ·
· Total Estimated Cost
$ 751.000
302.925
· 1.soo,000
396,075 $3,250,000
Shown Cbelow · is the •sears Building .Finance Schedule",· which was prepared by the City of
Lubbock. Salient elements of the City's agreement with "American" and the "Finance Schedule"
includes:
(1) Advance Balance. Acquisition and remodeling cost of the Sears property is being
financed by ·advances from "American" •. Net advance balances are shown on a quarterly basis;
actual balances to 1-15-83; projected thereafter.
(2) Total Payment. 1-15-83 actual and future quarterly · payments thereafter to
"American" including interest quarterly at an annual rate of 12 3/4%. Final payment, 1-15-94,
$2,917,818. .
(3) Additional Site Acquisition.•. The City acquired 3 additional, adjacent sites for
future parking expansion, paying $159,000 in cash and assuming payments on 3 notes. Payment of
the $159,000 and combined payments on the 3 notes are demonstrated. · ·
(4) Escrow Deposits. The City has deposited and will continue to deposit funds for
Revenue Sharing into an "Escrow Account" at "American" from which payments wil 1 be made to
"American" as referred to in (3), above, and on the notes referred to in (4) above. Deposits
wil 1 total $3.123,000 by 1-15-84; except for 2, subsequent, minor deposits, the "Escrow Ac-
count• is essentially funded by 1-15-84. ·
The City anticipates that Revenue Sharing entitlements for fiscal years ending g;.30-83 and
9-30-84 will be fully adequate for deposits required through 1-15-84, and plans to make the 2,
minor future deposits from Revenue Sharing entitlements. · Anticipated Revenue Sharing en-
titlements (receipts) for fiscal year.ending 9-30-83 are$2,880,918 plus available earned and
unallocated interest of -$454.762, a total of $3,335,680. If Revenue Sharing Funds are not
available for .any of these deposits, .they will be ·made from General or other funds legally
available to the City.
(5) Escrow Interest Earnings.· "American" will pay the City interest quarterly on the
balance in the "Escrow Account" at the annual rate of 12 1/2%. '··
. . (6) Escrow Balance. "Escrow Account" actual balances on 10-15-83 and 1-15-83; projected
quarterly balances thereafter. The Escrow Balance at the end of any quarter will always exceed
the Advance Balance.
(7) In the opinion of the City Attorney the financial arrangement with "American" de-
scribed above does not constitute a legal debt of the City since funds wil 1 be pledged at all
times and placed in the "Escrow Account" in emounts that, with interest earned. will exceed the
outstanding Advance Balance throughout the life of the agreement.
C-3
·. Sears Building
• ·Finance Schedule
Additional Escrow Advance Total Site _ · Escrow · Interest Escrow ,
Year Month Balance Payment Acquisition Deposits Earnings Balance · 1982-83
10-15 $ 751,000 $ 159,000 $1 •. 073,000 · $ 914,000
1-15 751,000 . $ 23,938 5,331 $ 28,563 913,294 4-15 · 1,251,000 23,938 5,331 475,000 28,540 1,387,565
7-15 1,751,000 39,876 5,331 ,·. . 475,000 43,361 1,860,719 1983-84
10-15· 2,251,000 . 55,813 5,331 ·' 525,000 : 58,147 2,382,723
t-15 2,824,001 :·. . 93,750 5,331 · _ ! 575,000 ·74,460 2,.933, 102
4-15 2,820,266 93,750 5,331 91,659 · :2, 92.5, 680
7-15 2,816,412 93,750 5,331 91,428 2,918,027
, 1984-85
10-15 2,81.2,435 93,750 5,331 91~188 : 2,910,134 1-15 2,903,331 93,750 5,331 , 125,000 90,942 3,026,995
4-15 2,902,125 93,750 5,331 94,594 3,022,507
7-15 2,900,880 93,750 ~.331 94,453 3,017,880
· .1985-86
10-15 2,899,596 93,750 5,331 94,309 · 3;013,108
1-15 2,898,270 93,750 5,331 94,160 3,008,186
4-15 _ 2,896;903 93,750 .5,331·, 94,006 3,003,111
.7-15 2,895,491 93,750 5,331 93,847 2,997,877
1986-87
10-15 2,894,035 93,750 5,331 93,684 2,992,480 1...-15 , ,2, 892,532 93,750 5,331 '. · 93,515 2,986,914 4~15 2,890,982 93,750 5,331 ··•·93,341 2,981,174 .. 7,..15 2,889,382 93,750 5,331 93,162 2,975,255
1987-88
10-15 2,887,731 93,750 5,331 . , 92,977 2,969,150
1-15 2,886,027 93,750 5,331 92,786 2,962,855
4-15 2;884,270 . 93,750 , _ 5,331 ··,·92,589 2,956,363
7-15 2,882,456 93,750 5,331 ,. 92,386 2,949~669
1988-89 •
10-15 2,880,584 93,·750 5,331 , .40,000 : . 92.,177 2,982,765
1-15 2,878,653 93,750 5,331 93,211: 2,976,895 · 4-,-15 2,876,660 . · 93,750 5,331 93,028 2,970,842
7-15 2,874,603 93,750 · 5,331 -.,92,839 2,964,600
1989-90
10-15 2,872,481 . 93,750 5,331 ' 92,644 2,958,163
1-15 2,870,291 ' 93~ 750 ·5,331 -: . 92,443 · -2,951,525
4-15 2,868,032 93,750 5,331 92,235 2,944,679
1990-91
. 7-15 , 2,865,700 : 93,750 5,331 .· 92,021 2,937,619
10-15 2,863,295 93,750 5,331 91,801 2,930,339
1-15 2,860,812 93,750 5,331 91,573 2,922,831
4-15 2,858,251 93,750 · 5,331 91,338 2,915,088
7-15 2,855,607 93,750 5,331 .91,097 · 2, 907·, 104
.1991-92
10-15 2,852,880 93,750 5,331 90,847 · 2,898,870
1-15 2,850,065 93,750 5,331 90,590 2,890,378
4-15 2,847,161 93,750 5,331 90,324 2,881,622
7-15 2,844,164 93,750 5,331 90,051 2,872,591
1992-93
10-15 2,841,072 93,750 4,637 89,768 2,863,973
1-15 2,837,881 93,750 670 89,499 2,859,052
4-15 2,834,589 93,750 670 89,345 2,853,977
7-15 2,831,191 93,750 670 89,187 2,848,744
1993-94
10-15 2,827,686 93,750 670 89,023 2,843,347
1-15 2,827,686 2,917,818 670 88,855 13,714
4-15
7-15
$6,811,383 s 374,896 S3,288,ooo S3,9ll,993
C-4
FUNDED OEBLLIMITATION
There is no direct debt limitation in the City Charter or under State Law. The City operates
under a Home Rule Charter that limits the maximum tax rate. for all City purposes. to $2.50 per $100 Assessed Valuation. Administratively. the Attorney General of the State of Texas will
permit allocation of $1.50 of the $2.50 maximum tax rate for general obligation debt service.
Fiscal
Period
Ending
9-30
1972-73
1973-74
1974-75
1975-76
1976-77
1977-78
1978-79
1979-80
1980-81
1981-82
1982-83
VALUATION .AND FUNDED DEBT ~ISTORY
Taxable
Assessed
Valuation(l~ · ·
$ 659.742,5 3(2)
716,225.294(2)
797,387,868(2)
900,079,412~2) 997,553,829 2)
1,097,536.3122)
1,290,998,036(2)
1.397,872,411(2)
1,516,565,090(2) ·
2,682,330,673(2)
3,224,270,010
Basis
of
Assessment
60%
60%
60%
60%
60%
60%
60%
60%
60%
100%
100%
Total Funded ..
Debt Outstanding
Year End
$47.266,000
53,440.000
50.546,000
47,763,000
43,682,000
42,107,000
47,086,000
49,301,000
61,710,000 °: · · ·
67,900,000 .
75,725,000(3)
Ratio
Total Funded
Debt to Taxable
Assessed Valuation
7.16% ·7.46%
6.34%
5.31% . 4.38%
3.84%
·3.65%
3.53%
4.07%
2.53%
2.35%
(1) For all years Taxable Assessed Valuations are net of any exemptions. The City's Tax
Assessor-Collector maintained anon-going :reappraisal of real property in the City during the
period 1972-73 through 1981-82, reappraising approximately 1/4 of the City each year. The
Lubbock County Appraisal District reappraised all property 1n the .City for 1982-83.
(2) Taxable Assessed Valuations for Fiscal .Periods 1972-73 through .1981-82 hav.e been adjusted
for supplements and corrections to the tax rolls made subsequent to certification of the rolls.
(3) Anticipated.
TAXABLE ASSESSED VALUATIONS BY CATEGORY
Property Real Proeerti (1) Personal Proeertt Assessment (2) As % ·of Taxable ,, · Taxable ·. Taxable
Appraised Assessed % of Assessed % of Assessed
Year Value Valuation Total Valuation Total Valuation
ID2 60% $ 495,614,356 i'5":ffi $164,128,167 24.88% $ 659,7,42,523
1973 60% 524,133,396 73.18% 192,091,89g 26.82% 716,225,294
1974 60% 579,454,818 72.67% 217,933,b5 27.33% 797 .387,868
1975 60% 649,869,048 72.20% 250,210,364 27.80% ·900,079,412
1976 .60% 709,585,566 71.13% 287,968.263 28.87%,. 997,553,829
1977 60% 769.976,300 70.16% 327,560,012 29.84% · 1,097.536,312
1978 60% 932,343,503 72.22% 358,654,533 27.78% 1;290,998,036
1979 60% 1,098.254,972 78.57% 299,617,439(3) 21.43% 1.397,872,411
1980 60% 1. 187,443,564 78.30% 329,121.526 21.70% 1.516.565,090 1981 100% ·2,094,621,612 78.09% 587.709,061 21.91% 2,682,330,673
1982 100% 2,440,381,790 ' 75.69% _783,888,220 24.31% 3.224,270,010
(1) The City's Tax Assessor-:Collector maintained an on-going reappraisal program of real
property duringthe period 1972-1981, reappraising approximately 1/4 of real property in the
City each year. The Lubbock County Appraisal District reappraised all property in the City for
1982.
C-5
(2) Taxable Assessed Valuations for_ 1974,q982 are net after the following exemptions and
reductions (in terms of Assessed Valuation):
< • ' '
Year
ID4
1975
--1976 1977 ,:
1978
1979
1980
1981
1982
Over 65
Homestead
Exemptions S 11,395,000
13,323,150
11,888,760
14,159~830 · 34 1 991, 60()'k ·
49,793,34()'k
52,926 ,900*,
99,248,070*
104,433,990*
* As of 10-1 each year.
' Disabled Veteran Disabled
Exemptions Exemptions
Not Effective · Not JEffective
Not Effective Nof-IHecti ve
$ 11307 1 240 Not Effective
11646 1 220 Not 'Hfective
1,549,890* -Not Effective
11928,450*" Not Effective'
2,147,280* Not Effective·
2,072,270* $ 4,720~090*
2,183,380* 4,181,680*
Agricultural/
Open-Space
· Land : '
Reductions
-0-
-0-
-0-
,.;Q;,.
-0-.;.o-,,
·. -.. o--o-
$ 10,090,967
(3) Personal automobiles became exempt from ad valorem taxes in 1979~
ESTIMATED ·TAXABLE ASSESSED VALUATIONS (1)
-Fiscal
Period ,
1983-84 --
-1984-85
Estimated
Taxable
Assessed
Valuation , $3,soo,ooo.ooo
3,850,000,000 .
' . .,•'
{1} All estimates a.re' net after estimated :exemptions at 100% of net appraised value •. ·
Source: Lubbock County Appraisal District.
AUTHORIZED GENERAL OBLIGATION BONDS
Amount Amount
Date Amount • Heretofore Sold Unissued -· Purpose Authoriled Authorized Issued 4-28-83 · Balance
Waterworks System 5-21-77 $16,775,000 $11,625,000 $ 400,000 $4,750,000
Waterworks System 8~ 9-80 21,000.000 16,200~000 4,800,000 .·, -0-
Waterworks System .. 11-21--81 5,226,000 -0-" -0-5,226,000 '
Sewer • System 5:..21-11 3,303,000 '2,030,000 ,· -0-1,273,000
Sewer System 11-21-81 7,892,000 1,090,000 -0-6,802,000
Street Improvements 5-21-77 4,782,000 3,693,000 -0-1,089,000
Street Improvements··. 11-21~81 9,495,000 3,280,000 2;025,000 4,190,000
Storm Sewer and Drainage Fire Station (for adjacent 5-21-77 473,000 100;000 -0-373,000
.•areas. when · annexed) 5-21.-77 310,000 -0--0-310,000
Airport 11-21-81 12,854,000 812,000 :· '11,550,000 492,000
11-21.-81 -0-Fire Department 877,000
$82 1987i000
250,000
$39,080,000 srn.1151000
627,000
s::rn. n2. ooo
ESTIMATED GENERAL OBLIGATION BOND PROGRAM
Anticipated Issuance
Waterworks System
Sewer System
Street Improvements
Storm Sewer and Drainage
Fire Station (for adjacent
areas, when annexed)
Airport
1984
$9,976,000
5,000,000
2,279,000
373,000
937,000
492,000
$19,057,000
C-6
1985
$ -0-
3,075,000
3,000,000
-0-
-0-
-0-
$6,075,000
. .Total
$9,976,000
8,075,000
5,279,000
373,000
937,000
492,000
$25,132,000
AUTHORIZED BUT UNISSUED GENERAL OBLIGATION BONDS OF OVERLAPPING SUBDIVISIONS
The i..ubbodc Independent School Ofstrict has $100.000 authorized but unissued School Building
Unlimited Tax Bonds; these bonds were authorized in 1959 for stadium purposes. The District
does not anticipate ever issuing these bonds.
Lubbock County has ssoo.ooo unissued Unlimited Tax Road Bond.s, authorized in 1961, but has no
plans to issue these bonds.
ESTIMATED OVERLAPPING FUNDED DEBT PAYABLE FROM AD VALOREM TAXES
{As of 2-l-83)
Taxing Jurisdiction
City of Lubbock . . .
Lubbock Independent School District
Lubbock County
Lubbock County Hospital District
Lubbock County Water Control and
Improvement 'District ·No •. 1 ·
Lubbock-Cooper Independent School District ·
Frenshfp Independent ·School .District ·'
Roosevelt Independent School ·District
Idalou Itidependent ;School District
TOTAL OVERLAPPING FUNDED DEBT
Total
Funded Debt p~ $48.705,107 2 14.865;000 ,,
-0-
-0-
.:o-
! 1.191.000
3.626.441 ' . 453.000
1.213,000 .
Estimated
%
Ap!licable 00.00%. .. "98.99% .
81.29%
81.29%
81.29%
12.65%
43.56%'
17.29% 5.24% ·
Overlapping
Funded Debt
$48,705,l07
14.714,864
-0-
-0-
.;.Q-
150;662
1;579,678
78,324
63.561
$65,292,196
Ratio Overlapping' FUnded Debt to .Taxable Assessed Valuation --• .. ----~-----_:,_~_;_ ________ 2.03%
; :!, .. ·,• .
. Per Capita Overlapping Funded Debt -$359.74
(1) In each case~ 2-1.;.83 principal, if any, has been· deducted.
(2} General Purpose General Obligation Debt.
TAX DATA
(Year Ending 9-~0)
Distribution · (1) Tax · Tax General Board of C1ty Interest and (l) % Current % Total Year Rate Fund DeveloS;ent Sinkinj Fund ,·tax Lev~ Co 11 ect ions Co 11 ect ions 1972-73 lI:N $0.3600 $0. $0.8 00 S 8,5l0,6 a 93.72% 96.4ll 1973-74 1.36 0.4600 -0.05 0.8500 9,740,664 93.18% 96.39%
1974-75 1.36 0.5400 0.05 0.7700 10,844,475 93.16% 97.26%
1975-76 1.36 : 0.7000 0.05 · 0.6100 12,241,080 93.28% 97.15%
1976-77 1.41 0.7500 0.05 0.6100 14,065,509 .92.95% 95.67% 1977-78 1.41 0.8600 0.05 0.5000 . 15,475,262 93.59%' 96.17% 1978-79 1.12 0.7500 0.05 0.3200 14,459,178 92.71% 95.37% 1979-80 1.12 0.6800 0.05 0.3900 15,656,171 94.48% 98.67% 1980~81 1.10 0~6800 0.05 · 0.3700 16,682,216 93.80% 98.46%' 1981;.;82 0.66 0 0.3225 0.05 . 0.2875 17,703,382 95.55% 98.97% 1982-83 0.61 0.2791 0.05 0.2809 19,668,047(2) 85.88%(2} 86.90%(2).
(1) "Tax Levy" and "Percent Current Col 1 ections." for Tax Years 1972-73. through 1981-82 have
been adjusted to reflect final corrections and supplements to the tax ' rolls as audited at the end of each fiscal year. · · · · · ·
(2) As explained in Note 2, ••valuation and Debt Information'.', page 6, assessed values of 10
banks ($93,942~590) and other assessed values ($3,223,290) that are in 1 itigation are included
fn the 1982 Taxable Assessed Valuation •. As a result, the 1982..:83 Tax Levy ($19,668,047)
includes a tax levy of $592,712 on these values. In previous years, litigated values were not
included in the Taxable Assessed Valuation and the tax levy resulting from ·these values was not
included in that year's tax levy. If the assumption is made that the $592,712 litigated tax
levy would have been collected by 2-28-83 except for the litigation, then the adjusted per-
centages of collections as of 2-28-83 are:_ ·
% Current
Collections 88.89%
% Total
Collections 89.91%
Property within the City is assessed as of January 1 ·ot'~ach ~ear; ta~es become due October 1 of
,:the same year, and become delinquent after,)anuary 31 of the. following year. Split payments .11re
not permitted. Discounts are. not allowed; · · · · ·
Penalty and interest charges for late payment are:
Month
Paid
February
March
April
May
June
July·
Penalty
6%
7%
8%
9%
10%
.12%
Interest
'' 1% 2%
3%
4%
5%
6%
Total ------,.c
9%
11%
13%
15%
18%
After July penalty remains at 12%; interest increases 1% each month.
TAX RATE LIMITATIONS
All taxable property within the City.is subject to the assessment, levy and collection by the
City of a continuing, direct annual ad valorem tax sufficient to provide fpr the payment of
prtncipal of and interest on all types of tax obligations of the City within the limits
prescribed by law. Article XI, Section 5, of the Texas Constitution is applicable to the City
of Lubbock, and limits its maximum ad v,alorem tax rate to $2.50 per $100.assessed valuation (for
all city purposes). The City operates under a Home Rule Charter which adopts the Constitu-
tional provisions.
PETITIONS AFFECTING THE TAX RATE, ASSESSED VALUATION AND TAX LEVY
(Election January 15, 1983)
On July 12, 1979, three petitions calling for an election to amend ttie City's Home Rule Charter
in relation to ad valorem taxes were filed with the City Council. These petitions, separately,
asked for the following amendments: (1) limitation of the City's inaxim1Jm tax rate to $1.12 per
$100 Assessed Valuation; (2) limitation of the ratio at which property can be assessed for ad
valorem taxes to 60% of fair market value; and (3) that, "The annual ad valorem taxes levied by
the governing authority of the City government shall not be increased on the basis of an
increase in the rate of evaluation of taxable property now on the assessed valuation of
property subject to tax, from the preceding tax year, without first securing approval of said
increase .at an election submitting said proposed increase to the voters of the.City of Lubbock.
Said increase, if any, requiring a majority vote for its, approval."*
* Text of the 3rd petition quoted verbatim,
On July 26, 1979, the City Attorney reported to the City Council that, in his op1n1on, the
provisions of the petitions, if incorporated into the City Charter, would contravene provisions
of the Texas Constitution (the Tax Relief Amendment) and general laws recently enacted by the
Texas Legislature and recommended that no charter amendment election be called at that time.
The City Council then authorized the City Attorney to file a declaratory judgment action in the
District Court of Lubbock County to determine whether the Council, under such circumstances,
would be required to call such. an election and to determine the rights of the petitioners, other
citizens and the City Council in the premises. Such lawsuit was filed July 26, 1979, in the
140th Ju<Ucial D.istrict Court .of Lubbock .County, and on June 27, 1980, the Court, by summary
judgment, ruled in favor of the City in all respects, finding that the C.ity was under no legal
duty to call an election for the submission of the 3 proposed charter amendments and .that all 3
proposed charter amendments had been withdrawn from the field in which the initiatory process
is operative by the Constitution and .the general law of the State and the Property T.ax Code (SB
621). The. defendants appealed to the Court of Civil Appeals for the Seventh Supreme Judicial
'District of Texas (Amarillo, Texas), which reversed and remanded the District;Court judgment.
The City filed a motion for rehearing which was denied .by the Court. of Civil Appeals, Amarillo.
Th¢ Cjty fi,led an application for .writ of error, with the Supreme Court of. Texas, which was denied. . · · ·
Subsequently, the City Council ordered an election on all .3 propositions to be held January 15,
1983. All 3 propositions were submitted to the voters at the January 15, 1983, election and
were defeated.
C-8
The maximum tax rate of the City is s2·.so per $100 Assessed Valuation .with taxable property
assess_ed at 100% of appraised value. Tax levies are limited only by the procedures and
limitations in the "Property Tax Code" (V.T.C.A •• Tax Code) (See Ad Valorem Taxation).
1% MUNICIPAL SALES TAX
(Effecthe 4-l-68)
The City has adopted the provisions of Article 1066e. V.A.T.C.s •• and levies. a 1% Sales and Use
Tax within the City. This tax is collected and enforced by the State of Texas Comptroller of
Public Accounts. who remits the proceeds, less a service fee, to the City monthly. Revenues
from this source for the periods shownhave been: ·
Fiscal Net
Year Collections % of
Ended Remitted Ad Valorem ·
9-30 to Cit! Tax Levy
-n73 $3.780,38 44.42%
1974 4,537,048 46.58%
1975 4,763,912 43.93%
1976 5,690.591 46.49% 1977 6,806,680 48.39%
1978 7,421,615 47.96%
1979 8,160,916 56.44%
1980 8,722,450 55. 71%
1981 9,791,566 58.69%
1982 10,939,663 61.79%
* Based on U.S. Census, 1980, of 173,979.
Equivalent
· Ad Valorem
Tax Rate
$0.573
0.634
0.597
0.632
0.682
0.671
0.632
0.624
0.646
0.408
Estimated
Net
Collectfons
Per Capita
$50.14*
ESTIMATED 1982-83 TAX YEAR OVERLAPPING TAXES
Set forth below is an estimate of all 1982-83 Tax Year taxes levied on an average $50 0000
single-family residence by the shown taxing jurisdictions, assuming appraisals are as shown.
Basis of assessment in all cases is 100% of appraisal value. Actual tax billings will vary
according to each jurisdiction's assessing procedures and the follpwing does l'.IOt purport to be
an exact computation of such tax levies: · · ·
Taxing Jurisdiction
City of Lubbock .· .. Lubbock Independent School District
Lubbock County
Lubbock County Hospital District
High Plains Underground Water Con-
. servation District No. 1
Estimated Total 1982-83 Ad Valorem Taxes
* Market value.
Estimated
Appraised
and Assessed
Value
$50,000*
45,000**
50,000*
50,000*
50,000*
· ** After $5,000 market value residence homestead exemption.
C-9
1982
Tax Rate
$0.61000
1.00000
0.15000
0.13000
0.00725
Estimated
1982 Taxes
Levied
$305.00
450.00
75.00
65.00
3.63
$898.63
·i
Name of Taxpayer
Texas Instruments Incorporated
Southwestern . Bell, Telephone Cqmpany
.. South.western PubJ i c Service Company Furr's, Inc.
South Plafns Mall
Eagle Picher Industries
Plains Co-op Oil Mill
Farmers Co-op Compress Energas Company (a division of Pioneer Corporation) · ·
International Business Machines
, TOP TEN TAXPAYERS
; _ _. ;,
Nature of Property
Electronics Manufacturer
Telephone Utility
Electric Utility Retail Groceries . . Regional Shopping ·center
Earth Moving Machinery; Farm Equipment
Oil Mill
Cotton Compress
Gas Utility ·
· Computers., Business Machines
INTEREST AND SINKING FUND MANAGEMENT INDEX
1982 ··
Taxable
Assessed
Valuation
$ 71,899,897
66,777,960
31,069,770
27,586,463
2~.878,678
14,273,650
13,397,428
12,580,700
12,456,898
11,242,790 $284,164,234
% of 1982
Taxable
Assessed
Valuation 2.23%
2.07%
0.96%
0.86% . 0.71%
0.44%
0.41%
0.39%
0.39%
0.35%
8.81%·
General Obligation Debt Service Requirements for Fiscal Year Ending 9-30-83 ---:--$10,052,284
Interest and Sinking Fund, All General Obligatio~ .Issues, 9..:30..:82 --Si,541,495 1982 Interest and Sinking Fund Tax Levy @ 95% Collection _;,/_________ 8,604,125
Estimated Income from Other Sources, as budgeted -------------'-------· 838,480 10,984,100
~ .
Estimated Surplus --------------------------------· ------------------. --------$ 931,816
COMPUTATION OF SELF-SUPPORT! NG . DEBT
Net Systeni Reven~e Avail ab le for Fiscal° Yea·r Ending 9-30-82 ..
Less: Revenue Bond Requirements, 1982-83
Fiscal Year ,.·
~alance Available for Other Purposes
System General Obligation Bond Requirements,
1982-83 Fiscal Year
-Balance
cPercentage _of System Genera} Ob 11 gat ion Bonds
Self-Supporting
Waterworks
',System* ·
$6,290,676
-0-
$6,290,676
. Sewer
System*
$ 920~322 .
-0-
$920,322
3,894,479 ,, 619,050
$2,399,197 $ 30.1,272
100.00% 100.00%
* The 'City ·of Lubbock transfers to the Gene~~i Fund each fiscal year:
(l) from Water Revenue Fund surplus, an amount at Jeast . equiv~lent .,to , de-bF::~ervice
requirements on Waterworks System General Obligation Bonds; and · ·
(2) from Sewer Revenue Fund surplus, an amount at least equivalent to debt service
requirements on Sewer System General Obligation Bonds.
C-10
PENSION FUNDS
Texas Municipal Retirement System ~-~:A11 · permanent~ full.:.time City employees who are not
firemen and who were less than 50 years of age when employed by the City are covered by the
Texas Municipal Retirement System. The System is a contributory, annuity-purchase type plan
which is covered by a State statute and is administered by six trustees, appointed by the
Governor of Texas. The System operates independently of its member cities. . ' i _,
The City of Lubbock joined the System inl950 to supplement Social Security. Options offered
under the System,. and adopted by the City, include current. prior . and antecedent service .
credits, 20 year vesting, updated .service credit, and . regular and supplemental disability
benefits. An employee who ~etires receives .an annuity based on the amount of the employee's
contributions over-matched two for one by the City. Employee contribution rate is 5% of gross
salary. The City's contribution rate-is calculated each year using actuarial techniques
applied to experience; the 1983 contribution rate ls 7 .30%. Enabling statutes prohibit any
member city from adopting options which impose liabilities that cannot be amortized over 25
years within a specified statutory rate.
On 9-30-82 assets held by the System, not
Benefits Fund which -is "pooled", were:
City
Employees
including those of the Supplemental Disability
$12,036,804
8,912,810
Total payments by _the City for the year ended 9-30-82, not including contributions to the
Supplemental Disability Benefits Fund which are "pooled", were $1,677,152.
See page C-12, Actuarial Information,.furnished by the Texas Municipal Reti,rement System.
Fireman's Relief and Retirement Fund ... City of Lubbock firemen are members of the locally
administered Lubbock Firemen's Relief and Retirement Fund, operating under an act passed in
1937 by the State Legislature and adopted by City firemen, by vote of the department, in 1941.
Firemen are not covered by Social Security.
--. .
The fund is governed by seven trustees, three firemen, two outside trustees (one appointed by
the fi.remen trustees and one appointed by the Mayor). the Mayor or his representative and the
Director. of, Finance of the City. Execution of the act is monitored by the Firemen's Pension
Conmissioner, who is. appointed by the Governor.
' '
Benefits· of retired firemen · are determined on a· "formula" or a "final salary"• pl an. Actuarial
reviews are performed every three years, and the fund is audited annuany. Firemen contribute
10% of fuTl salary into the fund and the City must contribute a like amount; however, the City
contributes on a basis of the percentage of salary which is a ratio adjusted annually that bears
the same relationship to the firemen's contribution rate that the City's rate paid into the
Texas Municipal Retirement System and FICA bears to the rate other employees pay into the Texas
Municipal Retirement System and F.ICA. The City's present contribution rate is 11.97%.
An actuarial . evaluation as of 3-31-80 was ·conducted by the firm of Rudd and w·isdom, Inc.,
Austin, Texas. The valuation balance,sheet ·estimated unfunded liabilfties of $5,336,161, The
study found that the plan would be actuarially sound if a funding program is maintained which
would completely amortize this unfunded liability in approximately 25 years, and concludes
"Since your present funding period is approximately 19 years. we consider your plan, based on
present levels of benefits and contributions, to be actuarially sound".
C-11
TEXAS MUNICIPAL RETIREMEN1 ,SYSTEM
City of --~L~u~b~b~o~ck.,,_ __ _
Actuarial Information
1. Valuation Date -The date of the most recent actuarial valuation is December 31, 1981.
The valuation was based on,. the plan of benefits .in effect on January. 1, 1982.
2. Actuarial Cost Method -The actuarial cost method used w~s 'the Uriit Credit Actuarial •·
Cost Method. The unftmded •accrued liability is being amorti.z_ed with' a level per-.
centage of ·payroll, over a period of 25 years which began i/80 ~
3. Actuarial Cos.t for 1981 (as a percent of payroll)
Normal cost contribution rate 5.30%
Prior service contribution rate 2.16
Total retirement contribution rate 7.46%
It. ' f.ctuarial· Present.· Value of· Accrued· Benefits
Vested
December 31,
1981
December 31,
'· 1980
a. Annuitants
b. Nonretired members
Nonvested
Total · ·
'$ 3,792,747
18,024,040
7,714,894 $29,531,681
$ 3,302,907
16,300,234
7,228,578
·$26,831,719
5. Total Assets (book value) $19,865,090
$9,666,591
$16,955,007
$9,876,712 6. Unfunded Accrued Liability
7. · ·-. Actuarial Assumptions --There have been no changes in . the actuarial cost· method
since the previous valuation; however, the interest rate arid annuitant mortality
assumptions have been changed. The impact of the change as of the valuation date
was to increasethe unfunded accrued liability by $97 1575 and to increase the
1983 prior service contribution rate by 0.02%.
8. •.· . . '• .. -Benefit Changes .-~ere have been no changes in benefits ,since the previous valuation.
: 9. Exclusion of Employees -All° employees who were members of the System on the valua-.
tion date have been included in the valuation~ ' ·
10. Gains and Losses -Since t)'le System is of the money-purchase type. the interest ·
earned .by the System and realized investment gains and, iosses are dist.ributed an~
nually to the ·accounts of the members and the municipalities. Gains .(losses) from
, · other -sour.ces decrease (increase) the unfunded accrued liability and are thus ·amor-
tized using a spread method. There has been no change.in the treatment :cf,actuar-ial
gains and losses. since the previous valuation. ·
11. Interest Rate -Because ·or the money-purchase nature of the System, there is no
need for an interest rate assumption in valuing the actuarial present value of accrued
benefits J'cii;-nonretired members. .For' armuitants, · the actuar4al present value ;or ; . .
benefits is calcuiated using a 5% interest rate assumption·. The 5% assumption is.
also used in calculating tbe prior service contribution rate.
RUDD AND WISDOM, INC.
Mark R. Fenlaw ·
Fellow, Society of Actuaries
C-12
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PRELIMINARY OFFICIAL STATEMENT
Dated May 4, 1983
INTEREST EXEMPT, IN THE OPINION OF BOND COUNSEL, FROM PRESENT FEDERAL INCOME TAXES UNDER EXISTING STATUTES, REGULATIONS ANO COURT DECISIONS
Dated: May 15, 1983
$10,680,000"
C ITV . OF LUBBOCK, TEXAS
(Lubbock County)
ELECTRIC LIGHT ANO POWER SYSTEM
REFUNDING REVENUE BONDS, SERIES 1983
Denomination: $5,000
Principal and semi-annual interest {April 15 and October 15) payable at
Citibank, N. A., New York, New York,
or, at the option of the holder, at .
Texas Conmerce Bank, National.Association, Lubbock, Texas.
First interest coupon due Oi;tober 15, 1983 •.
Coupon bearer bonds, not registrable.
These bonds (the "Bonds") will be authorized by ordinance (the "Ordinance") as authorized by
the General Laws of the Sta_te of Texas, pursuant to authority of Article 717k, V • .A..l.C,S., and
will constitute, together with outstanding Electric Light and Power System Revenue Bonds (ex-
cluding the bonc!s being refunded), special obligations of the City of Lubbock, .Texas, payable,
both as to principal and interest, solely from and secured by a first lien on and pledge of the
revenues of the Electric Light and Power System, after deduction of . reasonable expenses of
operation and.maintenance. ·
The proceeds of the Bonds will be used to provide moneys which wi 11 be sufficient to refund the
City's Electric Light and Power System Revenue Bonds, Series 1981 (the "Refunded Bonds"),
originally iss·ued in the amount of $9,000,000, and now outstanding in the amount of $8,550,000,
and to pay the costs related to the issuance of the Series 1983 Bonds.
Amount
$830,000
675,000 650,000
630,000
615,000
600,000
580,000
570,000
560,000 550,000
Maturity
4-15-1984
4-15-1985
4-15-1986
4-15-1987
4-15-1988
4-15-1989
4-15-1990
4-15-1991
4-15-1992 . 4-15-1993
Rate
MATURITY SCHEDULE*
Price Amount
$540,000
530,000 520,000
510,000
495,000
480,000
465,000
450,000
430,000
Maturity
4-15-1994*
4-15-1995*
4-15-1996*
4-15-1997*
· 4-15-1998*
4-15-1999*
4-15-2000*
4-15-2001*
4-15-:2002*
_Rate
' , . . . .
Price
* The City reserves the right, at its option~ to redeem Bonds maturing April 15, 1994, through
April 15, 2002, both inclusive, in whole or any part thereof, on April 15, 1993, or any interest
payment date thereafter, at the par value thereof plus accrued interest to the date fixed for
redemption. ·
The Bonds are offered when, as and if issued subject to the approva 1 of leg a 1 ity by the Attorney
General of the State of Texas and Messrs. Dumas, Hliguenin,·Boothman & Morrow, Bond Counsel.
Certain legal matters are subject to the approval of Messrs. Hutchison Price Boyle & Brooks,
Counsel to the .Underwriters. Opinion printed on the Bonds; see legal opinions.
Payment Record: The City has never defaulted.
Delivery: Anticipated on or about June 15, 1983.
RAUSCHER PIERCE REFSNES, INC. BLYTH EASTMAN PAINE WEBBER INCORPORATED
* Preliminary; subject to change.
This Official Statement does not constitute an offer to sell Bonds in any jurisdiction to any person to whom it is
unlawful to make such offer in such jurisdiction •. No dealer, salesman, or any other person has been authorized to
give any information or make any representation, other than those contained herein~ in connection with the offering
of these Bonds, and if giveh or made, such information or representation must not be relied upon. The information
and expressions of opinion herein are subject to ch~nge without notice and neither the delivery of this Official
Statement nor any sa 1 e made hereunder sha 11, under. any circumstances, create any implication that there has been no
change in the affairs of the City since the date hereof.
TABLE OF CONTENTS
Page
Official Statement:
Description of the Bonds ___________________ ;... ______________ _. __________ ;..._________ 1
Elected Officials _________________________ :., ___________________ _,________________ 3
Appointed Officials __________ .:._,:...------~----------_. ____________ _-_-~--------------3 Consultants and Advisors _________________ ;..._____________________________________ 3
Introductory Statement---------------------------------------------------------4/5
Refunding Plan------------------------------------------------------------5 Electric Light and Power System -Operating• Statement --------------------------6/7 Coverage and Fund Balances---:-------------:---------------,----:,____________________ .7 Authorized Revenue Bonds ______________ .;. __ :., ____ ., _______________ ;... ___ -, _____ :., ____ .;. .. __ ·7
Debt Service Requirements""----------------------:-______ _. ________ :-..---: _ _-__________ 8 Value ·of the System ________________ _. ________________ .;. _____ _.____________________ 9
City's Equity in Electric Light and Power System -------------------------------9
Lubbock Power and Light--------------------------------------------------------10/12
Electric Rates-------------------------------------- -----------------------12/15
Billings ... -··-···-. ---·--·--------·--------·-------------. -· -.•-----------15 Average 1981/82 Customer Usage and Billings _____________ .;. _________ ;... _____ _. _____ _. 15 Lubbock Power and Light -Ten Largest Customers ___________________ _.;...___________ 15 Analysis of Electric Bills_:,_ ________ ;...__________________________________________ 16
Statistical Data------------------------------------------------------------16 Selected Provisions of the Ordinance _____ _-_____________________________________ 17/23
General Information Regarding the City and Its Economy-------------------------24/30
Ratings-----·--------------------·-------------------------------------------· 31
Tax Exemption--------,.-.----------------------------------------·-----------31 Verification of Arithmetical and Mathematical Computations --------.:.._:.. _______ :,___ 31 Registration and Qtialificition of Bonds for Sale __________ _. _______ _-____________ 31
Legal Investments and Eligibility to Secure Public Funds in Texas--------------32
Legal Matters and No-Litigation Certificate------------------------------------32
Authenticity of Financial Information------------------------------------------32 Underwriting------.·•-,------------~-----------------------_____ :,__ ---------32
Financial Advisor--------------------------------------------------------------32
Certification of t~e Official Statement----------------------------•-,---,-------33
Appendices:
Appendix A: Audited Financial Statements -Electric Revenue Fund,
September 30, 1982, examined by Mason, Nickels & Warner, .
Certified Public Accountants
Appendix B: Form of Bond Counsel's Opinion
Appendix C: ·· Information Concerning General Obligation Bonds,
Valuations, Taxes and Pension Funds
- 2 -
·'
' ELECTED OFFICIALS
Term
City Council
Bi 11 McA lister
Length of Service
Elected Mayor April 5, 1980;
Exeires* April 1984
served 4 years previously as
City Councilman
Alan Henry
Mayor Pro-Tern
Joan Baker
Counc i l woman
M. J. Aderton
Councilman
E. Jack Brown Councilman
9 Years
3 Years
5 Years
3 Years
April 1986
April 1984
April 1986
April 1984
* See II Introductory Statement", pages 4 and 5.
Name
Larry J. Cunningham
Jim c. Blagg
John C. Ross, Jr.
Evelyn E. Gaffga
J. Robert Massengale
Rita P. Harmon
James E. Bertram
Bob Cass
Samuel W. Wahl
Carroll McDonald
Thomas J. Nichols
APPOINTED OFFICIALS
Position
City Manager
Deputy City Manager
City Attorney
Secretary-Treasurer
Assistant City Manager for
Financial Services
Assistant City Manager for
Management Services
Assistant City Manager for
Development Services
Assistant City Manager for
Public Safety and Services
Director of Water Utilities
Director of Electric Utilities
Chief of Police
President Occueation
and Co-Owner. KAMC-TV
Alan Henry Insurance Agency
Homemaker
Retired Chairman of the Board;
Snook & Aderton, Inc.
President, Brown McKee, Inc.
Length of Time
In This Position 6 Years Appointed 10/82
4 Years
4 Years
Appointed 10/82
Appointed 10/82
Appointed 10/82
Appointed 10/82
13 Years
4 Years
Appointed 2/83
Length of
Employment
With City
of Lubbock
16 Years
6 Years
4 Years
4 Years
3 Years
7 Years
14 Years
7 Years
30 Years
4 Years
Appointed
2/83
CONSULTANTS AND ADVISORS
Auditors-----------------------------------------------------Mason, Nickels & Warner, CPA's
Lubbock, Texas
• Bond Counsel -------· .+------------------------------Dumas, Huguenin, Boothman & Morrow Da 11 as, Texas
Consultants and Engineers, Water Treatment Plant
Expansion and Airport--------------------------------------------Parkhill, Smith & Cooper
Lubbock, Texas
Engineers for Generator System---------------------~--------------------------Tippett & Gee
Abilene, Texas
Engineers for 50 Year Water Supply------------------~--------------Freese and Nichols, Inc.
Fort Worth, Texas
Engineers for Transmission Lines and Substations-------------------Hicks & Ragland Company
Lubbock, Texas
Financial Advisor--------------------------------------------------First Southwest Company
Dallas, Texas
- 3 -
INTRODUCTORY STATEMENT ~
This Official Statement of the City of Lubbock, Texas (the "City"), a political subdivision
located fo Lubbock County, is provided to furnish information in connection with the sale of
the· City's $10,680,000 Electric Light and Power System Refunding Revenue Bonds, Series 1983
(the ''Bonds"). ·
The Offkial Statement was prepared to present for the purchaser of the Bonds information
concerning -the Bonds, the refunding-plan, the revenues of the Electric Light and Power System
pledged to the payment of the Bonds, the description of the revenue base, factors that may
affect pledged revenues, and other pertinent data, all as more fully described herein. See
"Table of Contents". ·
Purpose ••• The proceeds of the Bonds will be used to provide moneys which will be sufficient to
refund the City's Electric Light and Power System Revenue Bonds, Series 1981 (the "Refunded
Bonds"), originally iss-ued in the amount of $9,000,000, and now outstanding in the amount of
$8,550,000, and to pay the costs related to the issuance of the Bonds.
Source of P a~ent • • • The Bonds are special ob l i gat ions payable. both as to pr inc i pal and
interest, soley from and secured by a first lien on and pledge of the revenues of the Electric
Light and Power System after deduction of reasonable expenses of operation and-maintenance.
Future Bond Issues ••• The City has no plans to sell additional Electric Light and Power System
Revenue Bonds this year, but does contemplate selling bonds in 1984.
Administration of the City ••• The City operates under a Home Rule Charter which was approved
by the· electorate December 27, 1917, and thereafter amended from time to time. The Charter
provides for the Council:-Manager form of government for the City. Policy-making and super-
visory functions are the responsibility of and vested i_n the Mayor and City Council.
Litigation Concerning the At-Large System for the Election of City Council Members ••• Since
1917, under the provisions of the City of Lubbock's Home Rule Charter, the four members of the
City Council and the Mayor have been elected at-1 arge, majority vote required, for each
position.
On January 20, 1983, .in Civil Action No. CA-5-76-34, Rev. Roy Jones, et al.• City of Lubbock,
Texas, Plantiffs v. City of Lubbock, Texas, the United States District Court for the Northern
District of Texas, Lubbock Division (Halbert O, Woodward, Chief Judge, Northern District of
Texas) ruled that the at .. large system for the election of City Council members in the City of
Lubbock violates the Fifteenth Amendment of· the Constitution of the United States and the
Voting Rights Act of 1965, as amended on June 29, 1982.
The Court prepared and attached to the Order two proposed plans for creating single member
districts for election of City Council members: (1) a four-member plan, and (2) a six-member
plan, both prepared by the Court from stipulated statistics and evidence, with the Mayor, under
both plans, elected at large. ' ·
On March 4, 1983, the Court entered its Final Judgment. The Final Judgment orders that:
1. Corrmencing with the regular city elections to be held in April, 1984, the City Council
shall be comprised of six members, each elected from geographical districts drawn by the Court,
and a Mayor, elected at-large. Each council candidate must be a resident of his district at
time of filing, and, if elected, must continue to reside therein during his term of office.
2. The .mayor shall serve for a period of two years, to be elected initially at the City
election-to be held in April, 1984, and every two years thereafter.
3. City councilmen shall be elected for terms of four years, except:
(1) Councilmen from Districts 1, 3, and 5 shall initially be elected for a two year
term corrmencing in April, 1984, and for four year terms commencing in April. 1986.
(2) Councilmen from· Districts 2, 4, and 6 shall be elected for four year terms
conmencing April, 19B4.
-4 -
'
4. In the case of the six councilmen, only qualified voters who are bona fide residents
within a district may vote for or against the candidates running . for councilman in that
district. The mayor is to be elected at-large by a majority vote of all the qualified voters in
the City.
5. Each councilman an_d the mayor shall have a vote on all matters; the City Council shall
set its own rules of procedure,. including es tab 1 i shment of a quorum for transacting business
and the resolution of a tie-vote.
6. The members of the City Council shall elect a mayor pro tern from among its own members
at the first regular meeting of the City Council after the newly elected members have q'ualified
and taken their seat.
Note: The Court's plan is based on an ideal district population of 28,997 (based on the 1980
U.S. Census population of 173,979) •. As established by .the Court in Exhibit A of the Final
Judgment, greatest population was in District 3 (30,580)and lowest population was in District
4 (27,260). Generally, District boundaries are set by a grouping of election precincts. In the
Court's opinion this plan substantialiy complies with the one man-one vote requirement.
The City on March 31, 1983 decided to appeal the Final Judgment.
REFUNDING PLAN
The Ordinance provides that the proceeds from the sale of the Bonds, net of financing expenses
and underwriting discount, will be held by Texas C011111erce Bank, National Association, Lubbock,
Texas (the "Escrow Agent"), in an escrow account (the "Escrow Fund"), and used to purchase
direct obligations of the United States of America ~the "Federal Securities"). Ernst &
Whinney, Certified Public Accountants, will verify at 1the time of delivery that the Federal
Securities will mature at such time and yield interest in such amounts, such that together with
uninvested funds, will be sufficient to pay, when due, the principal and interest on the
Refunded Bonds.
Under a certain Special Escrow Fund Agreement, dated as of the date of .the Bonds, between the
City and the Escrow Agent (the "Escrow Agreement"), the Escro\tt Fund is irrevocably pledged to
the payment of principal and interest on the Refunded Bonds.
By the deposit of the Federal Securities with the Escrow Agent pursuant to the Escrow Agree-
ment, the City will have defeased the lien and pledge of all of the Refunded Bonds. In the
opinion of Bond Counsel, as a result of such defeasance, the Refunded Bonds will no longer be
payable from, or secured by a lien on, the revenues of the System but will be payable solely
from the principal of and interest on the Federal Securities held for such purpose by the Escrow
Agent, and the lien of the Refunded Bonds, together with all other obligations of. the City to
the holders of the Refunded Bonds under the ordinance pursuant to which the R_efunded Bonds were
issued, will be discharged.
All of th~ Refunded Bonds will be called for redemption at the par value thereof on April 15,
1991. .
The Series 1981 Bonds are the_ .only series of City of Lubbock Electric Light and Ppwer System
Revenue Bonds being refunded; -There remain outstanding·the unmatured Series 1964, 1965, 1973,
1975, 1975-A and 1976 -Bonds. The bond covenants set out in the · ordinances .authorizing these
-bonds are not being modified or altered, and .the Bonds are being issued on :a parity with the
outstanding bonds. The Series 1981 Bonds are being refunded to effect an interest savings.
Source and Application of Funds
follows:
The proceeds from the sale of the Bonds ·will be applied as
Source bf Funds
Proceeds From Sale of the Bonds
Apglication of Funds ·
eposit to Escrow Fund
Issuance Expenses
Underwriter's Discount
-5 ..
$10.680,000
$10,313,000
100,000
267,000
$10,680,000
ELECTRIC LIGHT AND POWER SYSTEM
O~erating Statement for Past Five Fiscal Years
Fiscal Year Ended 9-30-82 9-30-81 9-30-80 9-30-79 9-30-78
OPERATING IRCOME
M~tered . Sales $39 ;890,883* $30,113,232 $26,077,709 $21~109,705 $20,153,034
Municipal Sales -0-3,889,496 3,082,155 2,510,013 2,294,684 Non-Operating Income 11798 1852 690 1388 731,676 826,106 624,791
TOTAL INCOME $41,689,735 $34,693,116 $29,891 1540 $24 1445 1824 $23,0721509
OPERATING EXPENSE
Production .. $30,110,696 $27,551,799 $22~490,802 $17,956,119 ,. $15,566,~81
Electric.Distribution 1,743,827 1,554,206 1,270,853 1,159,884 1,022,227
Utility Collections 881,071 765,206 668.~440 582,617 454,623 Promotion · · 396,187 347,132 306,735 286,567 233,569
Administrative . 201 2043 175 1484 1341021 922292 78,143
TOTAL EXPENSE $332332,824 $30,393,827 $24,8701851 $2010771479 $17 ,3551243
NET INCOME AVAILABLE
FOR DEBT SERVICE $ 813561911 $ 4,299 1289 $ 5,0201689 $ 413681345 $ 51717 1266
ELECTRIC CONNECTIONS 34,610 •' 33,370 32,051 30,390 29,204
* ·. Includes metered and municipal sales.
Income and Ex~ense for 6 Months
. Period Ending-31-83 and 3-31-82
Bud~et Actual
3-31-83 3-31-83 3-31-82
OPERATlNG INCOME
General Customer Sales $17,535,878 $17,833,834 ' $16;002,591
Municipal Sales 2,028,755 . 2,041,275 2,064,617
Less: Refunds and Allowances (44,000) (59,039) •, (66,532)
·Non-Operating Income 826,348 1,186,781 .1,415,609 -: ::
TOTAL INCOME . $20,346,981 $21,002,851 $191416,285
OPERATING EXPENSE
Personal Services $2,203,552 $ 2,008,'194 S l,863, 730 Power Pl anf Fue 1 11,197,458 11,727,160 10,746,335
Purchased Power 2,164,052 2,673,485 1,346,416
Other Supplies 424,242 268,181 246,191 Maintenance · 152,850 111·,444 162,049
Other Charges 7091686 7701774 604,440
TOTAL EXPENSE $16 1851 2840 $17,619,238 $141969,161 '
NET INCOME AVAILABLE FOR
DEBT SERVICE $ 3,4951141 $ 3,3832613 .$ 41447,124
ELECTRIC CONNECTIONS _35,612 34,192,
Note: The decrease in net income from the first ·six months of last year compared to the first sixmonths of the current year is caused by several reasons; the three major, significant ones are as fo 11 ows : · · · · ·
1. The ordinance that est ab 1 i shes the formula for the fuel pass through does not a 11 ow
. the ,City to pass through the entire cost of the purchase power from -Southwestern
Pub Uc Service Company. The only pass through that theJit)' has is the ,fuel portion of that purchased power. · · · ·
2. Inflation costs for the past year also contribute to the decrease in net income.
- 6 .,.
",
'
3. Decrease in interest earnings because of fewer construction funds on hand for invest-
_ment and also the decrease in interest rates on investments.
Members of the City's staff are preparing a reconmendation to be s~bmitted to the City Council
in the near future, requesting a change in the ordinance to pass thr·ough the entire purchase
power cost, in the fuel cost adjustment pass through.
Source: Department of Finance, City of Lubbock, Texas.
Pro~ected Income and Exp-ense . -
Foriscal Year Ending 9-30-83
INCOME ~ral Customer Sales
Municipal Sales
Less : Refunds and
Allowances
·Non-Operating Jncome ·
TOTAL. INCOME
OPERATING EXPENSE
Personal Services
Power Plant Fuel Purchased Power Other Supplies
Maintenance
Other Charges
TOTAL EXPENSE
NET INCOME AVAILABLE FOR
.DEBT SERVICE
Source: Department of Finance, City of Lubbock, Texas.
$39.-854,269
4,610,809
(100,000)
1,873.442
$46,238,250
$ 5,508,881
25,448,769 4,918,302 1,060,605 452,221
1,774.216
$39,162.994
$ 7.075,256
COVERAGE AND FUND BALANCES
Net Income, Fiscal Year Ended 9-30-82 ------------------------~-----------------$ 8,356,911
Projected Net Income, Fiscal Year Ending 9-30-83 -------------------------------$ 7,075,256
Average Annual Principal and Interest Requirements, 1984/200f (including
the Bonds)----~--------------------------------------------------------------$ 1,829,573
Coverage by Net Income, Fiscal Year Ending 9-30-82 ---------------------------~-4.57 Times Coverage by Projected Net Income, Fiscal Year Ending 9-30-83 ____ .; ______________ 3.87 Times
Maximum Principal and Interest Requirements, 1984 ____________ ., ____ :..,.~----------$ 3,479,049
Coverage by Net Income, Fiscal Year Ended 9-30-82 ;.---:--------------------------2.40 Times Coverage by .Projected Net Income, Fiscal Year Ending 9-30-83 ;. __________________ 2.03 Times
Electric Light and Power System Revenue Bonds to be Outstanding After·
Issuance of these Bonds (secured by first lien on and pledge of the
net revenues of the System)(does not include the Refunded Bonds)--•----------$22,350,000
Interest and Sinking Fund, 4-15-83* --------------------------------------------$ 26,198
Reserve Fund, 4-15-83** ----~-~-------------~---------:--------------------------$1,752,340
* After payment, on 4-15-83, of $1,615,000 principal and $945,184 interest, a total of
$2,560,184 due 4-15-83.
** The Reserve Fund is presently being increased to $2,007,000 by equal monthly installments
of $6,367.00; these payments will ·continue upon issuance of th~~e _Bonds.
AUTHORIZED REVENUE BONDS
The City has no authorized but unissued Electric Light and Power System Revenue Bonds, but
contemplates selling additional electric light and power system revenue bonds in 1984.
- 7 -
-DEBT SERVICE REQUIREMENTS YEAR S OF ENDING OUTSTANDING BONDS THE BONDS GRAND TOTAL PRINCJPAL 9/30 PIURC?P;l{[ IRTEffEsT TOTA[ 15ffIRCll5;1{[ tRTEffEsT TOT;!{[ REQUIREMENTS RETIRED 1983_ $ 1,390,000 $ 714,781 $ 2,104,781 $ $ $ $ 2,104,781 1984 1,240,000 642,631 1,882,631 830,000 766,418 1,596,418 3,479,049 1985 1,090,000 577,587 1,667,587 675,000 791,273 1,466,273 3,133,860 1986 940,000 ·522,230 1,462,230 650,000 751,448 1,401,448 2,863,678 1987 940,000 471,280 1,411,280 630,000 709,848 1,339,848 2,751,128 35.32% 1988 940,000 419,550 1,359,550 615,000 666,378 1,281,378 2,640,928 1989 940,000 367,200 1,307,200 600,000 620,868 1,220,868 2,528,068 1990 940,000 314,330 , 1,254,330 580,000 575,268 1,155,268 2,409,598 1991 . 940,000 260,630 1,200,630 570,000 530,318 1,100,318 2,300,948 0) 1992 940,000 206,100 1,146,100 560,000 485,288 1,045,288 2,191,388 67.44% 1993 940,000 151,150 1,091,150 550,000 440,488 990,488 2,081,638 1994 640,000 100;900 740,900 540,000 395,113 935,113 1,676,013 1995 640,000 65,650 705,650 530,000 349,213 879,213 l,584,tJ63 1996 320,000 32,500 352,500 520,000 303,103 823,103 1,175,603 1997 220,000 13,750 233,750 510,000 257,343 767,343 1,001,093 90 •. 23t 1998 495,000 211,953 706,953 706~953 1999 480,000 167,403 647,403 647,403 2000 465,000 123,723 588,723 588,723 2001 450,000 81,175 531,175 531,175 2002 430,000 39,775 469,775 469,775 : 100.00% $13,060,000 $ 4,860,269 $ ,17 ,920,269 $ 10,680,000 $ 8,266,396 $18,946,396 $ 36,866~665 -Note: Interest on the Bonds computed at varying interest rates from 5.40% to 9.25% that produces an average interest rate of 8.519%. · .. ' >
.. , ,,. VALUE OF THE SYSTEM Fiscal Year Ended 9-30-82 9-30-81 9-30-80 9-30-79 9;.30-78 Land and Betterments $ 475,485 $ 445,227 $ 246,201 $ 246,201 $ 246,201 Less: Provision for Depreciation 51976 51678 51388 51099 41385 $ 4691509 $ 4391549 $ 2401SI3 2411102 2lJ11Slli Building and Improvements $ 1.667,191. $ 1.667,191 $ 1,667,191 $ 1,756,460 $ 1,667,191 Less: Provision for Depreciation 8841102 8501829 8161843 7831515 7411165 S 7S310S9 s !3161362 $ S50134S $ 9721945 $ · 9261026 Improvements Other Than Buildings s 65,l09,949 $57,512,765 $ 54,995,29S $47,575.450 s 43.559,llJS Less: Provision for Depreciation 2517211152 2420091483 2213031637 2016751309 1829921602 $ 3913881797 $ 3315031282 $ 3216911661 $ 2619002141 $ 2415661546 Machinery and Equipment $ 1,744,186 $ 1.379,369 $ 1,196,560 s 1.304,224 s 1,036,079 Less: Provision for Depreciation 9391973 8471214 7391761 6701542 4841159 $ S0412l3 $ 5321155 $ 4562799 $ 6331682 $ 5511920 Value after Depreciation $41,445,608 $ 3512911348 $ 3412391621 $28,747,870 $ 2612861308 CITY'S EgUITY IN ELECTRIC LIGHT AND POWER SYSTEM Fiscal Year Ended 9-30-82 9-30-81 9-30-80 9-30-79 9-30-78 Electric Light Plant $68,996,811 S 61,004,552 $58,105,250 $50,882,335 $46,508,619 Less: Accumulated Depreciation 27 551 203) (2517131204) (2328651629) {2221342465) (2012222311) \0 4 ,445,6 S 35,291,348 S 34,239,621 s 28,747,S1o $26,286,308 Plus: Construction Work in .Progress 1,749.087 5,435.624 4.412.231 9,277,198 10.854,445 Capital Projects Fund 5137li296 913961314 213651359 216941803 317551340 Electric Light Plant-Net $ 4815651991 $ 5011231286 $ 411017 2211 $ 4017191871 $ 4028962093 Net Debt Revenue Bonds Outstanding $22,060,000 $ 23.450,000 $ 15.840,000 $17,230,000 $18,620,000 Repayable Advance from General Fund 712561635 822061635 425062635 316502635 226072000 $29,316,635 S 31,656,635 S 20.346,635 s 20,Mo.635 S 21.221.000 Less: Interest and Sinking and Reserve Fund 312891804 310441158 313761461 412731711 315001403 Net Debt $ 2610261831 $ 2816121477 $ 1629701174 $ 1616061924 $ 1727261597 City's Equity in Electric Light Plant $22,539,160 $ 2115101809 $ 2410471037 $ 241112,947 $ 23,1691496 -· Percentage of City's Equity in Plant 46.411; 42.9~ 58.63% 59.22% 56.65%
LUBBOCK POWER AND LIGHT
Lubbock Power and Light was established in 1916, and is presently the largest municipal system·
in the West Texas region and the third largest in the State of Texas. Lubbock Power and Light
and Southwestern Public Service Company, a privately owned utility company operating within the
corporate limits of the City, each provide electric service to residents and businesses of the
City. The entire area of the City is covered by both systems, each of which have parallel lines
throughout the City. Electric rates in the City are set by City Council Ordinance and are the
same for Lubbock Power and Light and Southwestern Public Service.
Southwestern Public Service was granted a new 20-year franchise 1982. The company pays the
City a franchise tax of 2% of its gross receipts which is deposited into the City's General
Fund. At present, . Southwestern Pub 1 i c Service supplies power to approximately 50% of the
customers in Lubbock.
Lubbock .Power and Light generates part of its power requirements through the use of two
generating stations 1 ocated within the City. These pl ants are geographically separated from
one to seven miles and deliver bulk power to substations through a 69 KV transmission loop
system.
In December, 1981 the City commenced buying 10 MW of power through an interconnection with
Southwestern Public Service.-In February, 1982 -this was increased to 15 MW.
Generat.ing Stations •• , The total generating capacity of Lubbock Power and Light is 216,500 KW.
Gas turbines and i nterna 1 combustion generators provide the system with 55,500 KW of ready
reserve and quick-.start generation for emergency and peaking service. Generating units consist
of the following:
Manufacturer
Nordberg
Nordberg
Westinghouse
Westinghouse
Westinghouse
Westinghouse
Westinghouse
General Electric
Worthington
General Electric
General Electric
Year
Installed
1946
1947
1952
1953
1957*
1958
· 1964
1965
1971
1974
1978
Station
2
2
2
2
2
2
Holly
Holly
Holly
Holly
Holly
Prime Mover
Diesel
Diesel
Steam Turbine
Steam Turbine
Steam Turbine
Steam Turbine
Gas Turbine
Steam Turbine
Gas Turbine
Gas Turbine
Steam Turbine
Fuel
Dual Fuel
Dual Fuel
Gas or Oil
Gas or Oil
Gas or Oil
Gas or Oil
Gas or Oil
Gas or Oil
Gas or Oil
Gas or Oil
Gas or Oil
Generator
Capacity
in KW
2,500
2,500
11,500
11,500
22,000
22,000
12,500
44,000
18,000
20,000
50,000
216,500
* ·The 1957 Westinghouse unit was damaged in a recent explosion and is not presently available
for service. The City has received $414,260 in insurance proceeds, $50,000 of which has been
set aside for repair of the unit. The remaining $364,260 has be deposited to the System Fund.
Lubbock Power and Light employees will repair the unit as time is available, and it cannot now
be determined when the unit wi 11 be returned to service.
Since the completion of the interconnection with Southwestern Public Service, Station 2 has
been kept on standby and will be used in the future for peak power purposes only.
Transmission and Distribution ••• A 69,000 volt (69 KV) transmission loop system, 38.25 miles
in length, provides bulk power to six 20 MVA-69,000/12470 volt-substations. A second 69 KV
transmission loop system· insulated for operation at 115 KV is under construction. As of
January, 1983, 13.94 miles of 115 KV insulated transmission line have been constructed •. A 3.3
mile 230 KV .transmission line ties Lubbock Power and Light to Southwestern Public Service.
The distribution system includes approximately 639 miles of overhead distribution lines and
approximately 110 miles of underground distribution lines. There are twelve 12,470/4160 volt
substatiohs in the distribution system. Net system load for Fisc1l Year Ending September 30,
1982 was 708,070,860 KWH with a: peak demand of 151,000 KW. ·
Construction Pro9ram ... ·A major transmission system and distribution system coRstruction and
improvementprogtam is under way utilizing proceeds of the Refunded Bonds. A brief description
of such program is set forth below.
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Transmission System ••• The transmission system program includes upgrading of 3 major substa-
tions, extension of a 69 KV transmission line, extension of ·a second circuit of an existing 115
KV transmission line, construction of a major substation in Northeast Lubbock, upgrading of
computer capabilities, and installation of remotes in all major substations to fully coordinate
relay and line switching capabilities. The upgrading of the substations and the extension of
the 69 KV transmission line was completed in September, 1982. The remainder of the items are
still under construction. ·
Distribution System ••• The distribution system program includes extension of and improvements
to the existing distribution system including additional distribution circuits for sub-
stations, extensions to new service areas, transformers, meter pedestals, poles and crossarms,
regulators~ capacitors, meters, service lines and other appurtenances.
Interconnection ••• An interconnection with Southwestern Public Service has been completed and
the City conmenced buying power from Southwestern Public Service on December 1, 1981. Lubbock
Power and Light has contracted with Southwestern Public Service for the purchase of 10 MW of
power. In February, 1982, the purchase amount was increased to 15 MW. The contract allows
purchase of up to 100 MW upon proper notice. Southwestern Public Service operates in the City
under a franchise and serves an area covering the Panhandle and South Plains of Texas and parts
of Eastern New Mexico with an integrated electric generating and distribution system.
Fuel Su~ply ••• Primary fuel supply for Lubbock's generating system is natural gas which is
supplie by Westar Transmission Company and Energas Company, divisions of p·ioneer Corporation,
Amarillo, Texas, under long term contracts. Secondary fuel in the form of fuel oil is
maintained in storage in the City.
Due to transmission system limitations, some brief curtailments of natural gas supplies have
been experienced in the past few years, and some 50% to 70% short duration (48 hours or less)
curtailments, during peak gas usage periods, may be experienced in the future. No curtailments
in excess of 70% are projected by Westar and Energas nor will total annual curtailment exceed 5%
of annual volume.
The City's present storage capacity of fuel oil, for standby, secondary fuel, is over 1,500,000
gallons and an adequate ·supply of fuel oil for 10 days' operation at 50% natural gas curtailment
is maintained in inventory at all times; with expected resupply, this period would be sub-
stantially extended. The newest Holly steam generator has a multi-fuel capability as it is
· designed to burn natural gas or all grades of fuel oil.
In the City's opinion, its fuel supply is favorably positioned due to the long term natural gas
reserves presently owned, contracted for and under development by Westar and Energas.
Carbon Dioxide Recovery ••• The Carbon-Dioxide Technology Corporation, Houston, Texas, has
constructed a carbon dioxide (CO2) recovery plant on a three acre site adjacent to the Holly
Plant. CO2 is being recovered from Holly Plant stack gasses for use in a tertiary-level oil
recovery program in nearby Garza County fields. Estimated cost of the plant was $30,000,000;
estimated annual revenues to Lubbock Power and Light include $360,000 from sale of CO2, and
$150,000 from the sale of electric power. The CO2 recovery plant project was completed and
began operations in December, 1982.
Fuel Supply Contract with Westar Transmission Company and Energas Company ·
The City's current fuel supply contracts with Westar Transmission Company and Energas Company,
di visions of Pioneer Corporation ( "Westar/Energas"), Amarillo, Texas, dated December 12, 1979,
as amended December 10, 1981, such amendments effective January 1, 1982, provide, among other things: ·
(1) Volume -Westar/Energas agree to·deliver to the City up to a maximum of 30,000 MCF/day;
the mTiiTriiuni "take-or-pay" volume the City must accept is 5,000,000 MCF annually.
(2) Cost -·The City's cost is determined as follows:
(a)
(b)
Westar's/Energas' weighted average cost (as defined); plus an increment of fifty and
six tenths cents (50.06¢) per MCF, adjusted to 1,000 BTU/cubic foot.
On or before July 1, 1983, and each two years thereafter, the City and Westar/Energas
will meet to determine the price to become effective the following January 1. If the
City and Westar/Energas cannot agree, the contract will terminate on January 1, 1984,
or January 1 each two years thereafter. ·
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(c) The term weighted average includes not only the cost of the gas itself but also is
adjusted to include interest costs on gas developments; a five year amortization of
nonproductive developments; and any costs of transportation, gathering, compressing,
treating, handling, or taxes. . .
(d) Plus, any new production, severance, gathering processing, transmission, sales, or
delivery taxes in excess of or in addition to those in existence on January 1, 1980,
which are levied upon or attributable to all or any portion of the gas to be
delivered.
(e) The price will be reduced if gas curtailments for the next preceding year exceed
either 3% or 4% of the actual gas volume. If the gas curtailment was between 3% and
4% then the price for the current year will be reduced one and two tenths cents (1.2¢)
per MCF. If the curtailment was over 4%, then the price wil 1 be reduced two arid fciur
tenths cents (2.4¢) per MCF.
(3) Term of Contract -The current agreement was effective January 1, 1982, and remains in
full force and effect to December 31, 1985, and may be extended from time to time as the parties
agree under the following formula:
"It being the intention of the parties that so long as Buyer requires gas for its said
plants which may be satisfied in whole or in part by Seller upon terms and.conditions
acceptable to both parties, the parties shall endeavor to reach agreement for succes-
sive one-year extensions of the term·provided in the agreement. Any such one-year
extensions shall be made only after a positive determination by Seller of the ad-
equacy of its gas supply and the deter.mination by Seller, in its sole, discretion,
that it has sufficient gas supplies to perform its obligations during such exten-
sions".
If the City and Westar/Energas cannot agree, the contracts wi 11 termlnate on January 1 each two
years thereafter.
Fuel cost purchases are an operating expense of the System.
Note: (1) Copies of the Gas Sales Agreements between Westar Transmission Company and
Energas Company as "Seller" and City of Lubbock as "Buyer", may be obtained upon request from
Mr. J. Robert Massengale, Director of Finance, City of Lubbock, Box 2000, Lubbock, Texas 79457
(806) 762-6411.
ELECTRIC RATES
The City Council sets electric rates for both Lubbock Power and Light and Southwestern Publi.c
Service. Rates are the same for both systems. The present rates went into effect on August l,
1980, and are set .forth below. · · · ·
Rates for Service Furnished ·in City ~ .. The following rates shall be charged for electric
service furnished in the City according to classifications herein set out, by all persons,
firms or corporations engaged in furnishing such electric power service to the public, includ-
ing electric service furnished by Lubbock Power and Light; provided, however, the net charge
per kilowatt hour, as specifically set out hereinafter, shall be increased or decreased 0.0067
cent per KWH for each 0.5 cent increase or decrease, or major fractions thereof, in the cost of
fuel delivered at Lubbock Power and Light generating stations, above or below 21 cents per
1,000,000 BTU. The cost of .fuel shall be determined as follows:
1. Natural Gas: Per thousand cubic feet @ 1,000,000 BTU during 'the second month preceding
month of service.
2. Fuel Oil: Cost per 1,000,000 BTU based on a six month moving average through the end of
the next prior month; by the last in first out inventory cost method.
Residential Service
Applicable: To residential customers for electric service used for domestic purposes ·in
private residences and separately metered individual apartments when all service is supplied at
one point of delivery, and measured through one kilowatt hour meter, where facilities of
adequate capacity and suitable voltage are adjacent to the premises to be served. Single phase
motors not to exceed 10 horsepower, individual capacity, may be served under this rate.
Territory: Lubbock, Texas.
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I'
'
Rate: Service Availability Charge: $5.10 per month, which includes 30 KWH per month;
All KWH used per month in excess of 30 KWH@ 2.62¢ per KWH
Fuel Cost Adjustment: As above provided.
Total Electric Living Service
When customer has in regular use 1) permanently installed space heating equipment of an
aggregate rated capacity of 5 kilowatts or more, excluding bathroom heaters and 2) a pennanent-
ly installed 240 volt, 30 gallons or greater, storage type water heater of not greater than 5.5
kilowatts, individual rated capaci.ty, then, billing during the winter months will be the first
500 KWH at the regular rate, and all additional KWH at 1.15¢.per KWH. Billing during the su11111er
months will be the first 500 KWH at the regular rate, the next 500 KWH at 1.15¢ per KWH and all
additional KWH at the regular rate.
Winter Months: The billing month of November to May, inclusive.
Fuel Cost Adjustment: As above provided.
Conditions and Re~ulations: Water heating equipment served on this rate shall be of insulated
storage type bearing the approval of the Underwriter's Laboratories, Inc., and shall have a
demand of not greater than 5.5 kilowatts, individual capacity. Space heating equipment and the
installation of the equipment shall be subject to the approval of the supplying utility. A
customer must have permanently installed and in regular use space heating equipment having a
total connected load of not less than 5 kilowatts, excluding bathroom heaters.
Character of Service: The voltage and characteristics of equipment applied shall meet require-
ments of the supplying utility.
Minimum: $5,.10 per month.
Comnercial Service
Applicable: To all cormiercial places of business, including stores, shops, factories, ware-
houses, hotels, lodges, churches, apartment houses on one meter, garages and filling stations.
Territory: Lubbock, Texas.
Rate: All energy used shall be billed in accordance with the following rate:
Service Availability Charge
First 1,000 KWH used per month
Next 4,000 KWH used per month
Next 15,000 KWH used per month
Additional KWH used per month
$10.00 per month
3.70¢ per KWH
2.91¢ per KWH
2.01¢ per KWH
1.21¢ per KWH
Discount: Where primary metering is used, 10% will be deducted on the above base rate portion
of all bills except minimum monthly bills, provided that primary metered load is greater than
secondary metered load. The Fuel Cost Adjustment portion of a bill is not subject to the 10%
discount.
fuel Cost Adjustment:· As above provided.
Character of . Service: If metered on secondary side of distribution transformers, 1 ighting
service may be either 120/140 volt, 3 wire single phase, or 120 volt, 2 wire single phase. If
polyphase service is required, it shall be 3 phase, 240 volts unless otherwise specified.
Where primary metering is used, service supplied will be the primary voltage serving the area,
single or polyphase, as the case may require.
Minimum: $10.00 per month.
Schools
Applicable: To all institutions whether private, parochial or public. engaged in providing
instruction or education. including elementary schools. junior high schools, high schools. and
colleges or universitites.
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Rate: Shall be the same as established for conmercial places of business, above; provided
however, that where such schools and schoo 1 facilities are operated under one authority or
entity or as one district, but at several locations within the City, the consumption at all such
locations may be added together and the authority, entity or district billed as if all such
consumption was on one meter.
Fuel Cost Adjustment: As above provided.
Character of Service: If metered on secondary side of distribution transformers, lighting
service may be either 120/240 volt, 3 wire single phase, or 120 volt, 2 wire single phase. If
polyphase service is required, it shall be 3 phase, 240 volts, unless otherwise specified.
Where primary metering is used, service supplied will be primary voltage serving the area,
single or polyphase as the case may require.
Discount: Where primary metering is used, 10% will be deducted the above base rate portion of
all bills except minimum monthly bills, provided that primary metered load is greater than
secondary metered load. The fuel cost adjustment portion of a bill is not subject to the 10%
discount.
Irrigation Power Service
Applicable: To power service for a well used for irrigation of crop and/or pasture land.
Service to be furnished under contract. Not applicable to wells used for domestic house
service.
Territory: Lubbock, Texas.
Character of Service: Service shall be 240 volt single phase or 240 volt three phase unless
otherwise specified.
Rate: Winter Months -All KWH per month at 1.8¢ per KWH. Winter months include.from regular
meter readings made in October to meter readings made in May.
Summer Months -All KWH per month at 3.18¢ per KWH. Summer months include from regular
meter readings made in May to regular meter readings made in October.
Pa~ent: Statements will be rendered at regular meter reading dates each month. The amount of
sue statement shall then become payable ten days after the bill for such service is rendered.
Conditions: Service will be supplied through a circuit to which no equipment except the
1rrigat1on well motor wil 1 be connected.
Minimum: $24.00 per connected horsepower (nameplate rating) per year beginning in January.
Electric Heating Service
Applicable: To residential and commercial customers for space heating service, including
resistance heating, radiant heating and heat pumps, when all heating service is supplied at one
point of delivery and measured through one kilowatt hour meter which meter must be separate
from the meter which measures the energy for lighting and general use.
Rate: November through April: All KWH used per month @ $0.0115 per KWH.
May through October: All KWH used per month shall be billed under the applicable
residential or commercial rate.
Conditions and Regulations: Space heating equipment and the ins ta 11 at ion of the equipment
shall be subject to the approval of the supplying utility. To be eligible for the space heating
rate, a customer. must have permanently installed and in regular use space heating equipment
having a total connected load of not less than five kilowatts.
For heat pump installation, the rated capacity shall be determined by adding the rated capacity
of any auxilliary heating elements used in conjunction with the heat pump.
Fuel Cost Adjustment: As above provided.
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' Electric Water Heating
Applicable: To water heating service, on a separate meter. for residential customers or
coomercial establishments. Service under this rate is subject to the conditions and regula-
tions governing water heating as stated below:
Rate: All KWH per month at 1.15¢ per KWH.
Conditions and Regulations: 1) Water heating equipment served on this rate shall be of
insulated storage type bearing the approval of the Underwriter's Laboratories. Inc •• and shall
have a demand of not greater than 5.5 kilowatts individual capacity. 2) Service wi 11 be
supplied through a separate circuit to which no equipment except the water heater will be
connected. A separate meter will be furnished by the supplying utility.
Fuel Cost Adjustment: As above provided.
BILLINGS
Customers of Lubbock's Electric Department and Water Department are billed simultaneously on
one statement. Garbage and sewer charges are also included. No discounts are allowed. Bills
are due upon receipt. If a bill remains delinquent 13 days after the date of statement. a
reminder notice is mailed to the customer. Should the statement still be delinquent on the next
bil 1 i ng date. a statement is mailed showing the past due bi 11 together with the current bi 11.
If the bill remains delinquent 13 days after the date of second statement. a cut-off notice is
mailed. The cut-off notice specifies that service will be discontinued in 5 days if payment in
full is not made. At the end of the 5-day period, a collector calls on the customer and if he is
unable to collect payment. water and electric service is cut off. The reconnection charge is
_$6.00 before 5:00 p.m. and $15.00 after 5:00 p.m. and during week-ends and holidays.
AVERAGE 1981/82 CUSTOMER USAGE AND BILLINGS
Average Residential Customer
KWH Bi 11 i ng* ~ $ 51.53
Average Conmercial Customer (Usage)
* Includes fuel cost adjustment.
13,917 $999.78
LUBBOCK POWER AND LIGHT
(12 Month Period Ending l-31-83)
Ten Largest Customers
(Annual Consumption and Revenue)
Customers
Texas Tech University
City of Lubbock
Plains Co-op Oil Mill
Lubbock Independent School District
Lubbock Cotton Oil Mill
Furrs Warehouse
Caprock Shopping Center
Texas Conmerce Bank. N.A.
Town & Country Shopping Center
Court Place Office Building
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KWH Billed
86,508,862
71,472,233
59,091,556
20,202,278
17,259,118
6,756,840
5,393,875
4,886,108
4,053,600
3,659,040
Do 11 ars Bi 11 ed
$4,883. 711.11
4,196,557.37
3,184,955.88
1,089,750.23
1,044,591.83
378,141.02
303,369.30
272,316.49
223,067.92
207,636.12
ANALYSIS OF ELECTRIC BILLS Fiscal Year Ended 9-30-82 9-30-81 9-30-80 9-30-79 9-30-78 9-30-77 9-30-76 All Customers: Average Monthly KWH Per Customer 1,822 1,884 1,951 1,978 1,962 1,898 1,912 Average Monthly Bill Per Customer $112.99 $101.69 $90.04 $79.23 $74.10 $65.41 $57.42 Average Monthly Revenue Per KWH $0.062009 $0.053976 $0.046149 $0.040052 $0.037758 $0.034454 $0.030020 Residential Customers: Average Monthly KWH Per Customer 643 668 708 672 675 627 566 Average Monthly Bill Per Customer $47.31 $43.26 $38.48 $32.76 $31.12 $26.93 $22.18 Average Monthly Revenue Per KWH $0.073547 $0.064760 $0.054331 $0.048698 $0.046081 $0.042913 $0.039123 Conmercial and Industrial: Average Monthly KWH Per Customer 13,917 13,779 13,644 14,100 13,953 13,439 13,784 Average Monthly Bi 11 Per Customer·· $791.02 $685.65 $578.13 $516.17 $480.71 $421.18 $374.42 Average Monthly Revenue Per KWH $0.056836 $0.049761 $0.042024 $0.036606 $0.034452 $0.031339 $0.027163 Municieal and Street Lighting: Average Monthly KWH Per Customer 907 11,444 11,854 10,771 10,167 9,418 8,973 Average Monthly Bill Per Customer $598.41 $516.13 $488.99 $372.86 $326.61 $270.89 $220.02 Average Monthly Revenue Per KWH $0.055309 $0.045100 $0.041249 $0.034615 $0.032123 $0.028763 $0.024519 ,_. Note: Computations based on number of customers and not number of meters. 0' STATISTICAL DATA Fiscal Year Enqed 9-30-82 9-30-81 9-30-80 9-30-79 9-30-78 9-30-77 9-30-76 KWH TO SYSTEM 703,210,820 681,659,700 682,657,030 637,988,480 638,632,420 606,578,940 568,976,780 Sales of KWH: Residential Service 204,408,298 202,748,289 204,559,675 180,844,490 182,524,256 163,638,408 138,613,152 Conmercial and Industrial Service 36015771057 35210201288 345,472,241 33914231448 33715511687 325,1251133 3281344,823 Total General Consumers 564,985,355 554,768,577 550,031,916 520,267,938 520,075,943 488,763,541 466,957,975 Municipal and Street Lighting 7316151095 7717291495 75,2521778 721515!941 711740,239 65,3231812 581793,926 Total Sales to All Consumers 638,600,450 632,498,072 625,284,694 592,783,879 591,816,182 554,087,353 525,751,901 Loss and Unaccounted For 6416101370 4911611628 57,3721336 4512041601 461816,238 5214911587 4312241879 KWH TO SYSTEM 703,210,820 681,659,700 682,657,030 637,988,480 638,632,420 606,578,940 568,976,780 Average Residential Customers 26,477 25,286 24,067 22,405 22,525 21,727 20,376 Average Conmercial and Industrial Customers 2,159 2,129 2,110 2,006 2,016 2,016 1,985 Average Municipal Meters 567 566 529 561 588 578 546 Total Plant Peak KW Demand 151,000 149,000 144,000 131,500 142,500 125,500 116,000 System Peak KW Demand 142,800 140,060 135,600 123,000 134,600 119,200 109,700 Note: Computations based on number of customers and not number. of meters.
SELECTED PROVISIONS OF THE ORDINANCE
The City Council will adopt the Ordinance, selected provisions of which are shown below. Such
provisions do not purport to be complete and reference is hereby made to the Ordinance for a
full description of the terms thereof. ·
IISECTION 9: Definitions. For all purposes of this ordinance and in particular for clarity with
respect to the issuance of the Bonds herein authorized and the pledge and appropriation of
revenues for the payment of the Bonds, the following definitions are provided:
(a) The term "Additional Bonds" shall mean the additional parity revenue bonds the City
reserves the right to issue in accordance with the terms and conditions prescribed in Section
20 hereof.
(b) The term •Bonds" shall mean the refunding revenue bonds authorized by this ordinance.
(c) The term "Bonds Similarly Secured" shall mean the Previously Issued Bonds, the Bonds and
additional Bonds. ·
(d) The term "Fiscal Year" shall mean the twelve-month accounting period used by the City in
connection with the operations of the System which may be any twelve consecutive month period
established by the City.
(e) The term "Net Revenues" shall mean the gross revenues of the System less expenses of
operation and maintenance. Such expenses of operation and maintenance shall not include
depreciation charges or funds pledged for the Bonds Similarly Secured, but shall include all
salaries, labor, materials, repairs, and extensions necessary to render services; provided,
however, that in determining "Net Revenues," only such repairs and extensions as in the
judgment of the City Council, reasonably and fairly exercised are necessary to keep the System
in operation and render adequate service to the City and inhabitants thereof,or such as might
be necessary to meet some physical accident or condition which otherwise would impair the
security of the Bonds Similarly Secured, shall be deducted.
(f) The term "Previously Issued Bonds" shall mean the outstanding and unpaid revenue bonds,
designated "CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REVENUE BONDS," and payable
from and secured by a first lien on and pledge of the Net Revenues of the System, further
identified by issue or series as follows:
~
(1) Series 1964, dated March 15, 1964, in the original principal amount of $4,500,000;
(2) Series 1965, dated March 15, 1965, in the original principal amount of $3,000,000;
(3) Series 1973, dated July 15, 1973, in the original principal amount of $6,000,000;
(4) Series 1975, dated March 15, 1975, in the original principal amount of $6,400,000;
(5) Series 1975-A, dated September 15, 1975, in the original principal amount of
$2,000,000; and
(6) Series 1976, dated April 15, 1976, in the original principal amount of $4,400,000,
(g) The term "Refunded Bonds" shall mean the "City of Lubbock, Texas, Electric Light and Power
System RevenueBonds, Series 1981", dated August 15, 1981, and now outstanding in the aggregate
principal amount of $8,550,000. .
(h) The term "System" shall mean all properties real, personal, mixed or otherwise, now owned
or hereafter acquired by the City of Lubbock through purchase, construction or otherwise, and
used in connection with the City's Electric Light and Power System and in anywise appertaining
thereto, whether situated within or without the limits of the City. .
"SECTION 10: ~ledge. That the City hereby covenants and agrees that all of the Net Revenues
derived from t e operation of the System, with the exception of those in excess of the· amounts
required to establish and maintain the special Funds created for the payment and security of
the Bonds Similarly Secured, are hereby irrevocably pledged for the payment of the Previously
Issued Bonds, the Bonds and Additional Bonds, if issued, and the interest thereon, and it is
hereby ordained that the Previously Issued Bonds, the Bonds and the Additional Bonds, if
issued, and the interest thereon, shall constitute a first lien on the Net Revenues of the
System.
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"SECTION 11: Rates and Charges. That the City hereby covenants and agrees with the holders of
the Bonds that rates and charges for electric power and energy afforded by the System will be
established and maintained to provide revenues sufficient at all times to pay:
(a) all necessary and reasonable expenses of operating and maintaining the System as set
forth herein in the definition "Net Revenues" and to recover depreciation;
(b) the amounts required to be deposited to the Bond Fund to pay the principal of and
interest on the Bonds Similarly Secured as the same becomes _due and· payable and to accumulate
and maintain the reserve amount required to be deposited therein; and
(c) any other _ legally incurred indebtedness payable from the revenues· of the System
and/or secured by a lien on the System or the revenues thereof.
"SECTION 12: Segregation of Revenues/Fund Desi gnat ions. A 11 receipts, revenues and income
derived from the operation and ownership of the System shall be kept separate from other funds
of the City and deposited within twenty-four (24) hours after collection in the"Electric Light
and Power System Fund" (created and established in connection with the issuance of the Pre-
viously Issued Bonds), which Fund (hereinafter referred to as the "System Fund") is hereby
reaffirmed and shall continue to be kept and maintained at an official depository bank of the
City while the Bonds remain outstanding. Furthermore, the ''Special Electri c Light and Power
System Revenue Bond Retirement and Reserve Fund" (hereinafter referred to as the "Bond Fund"),
created and established in connection with the issuance of the Previously Issued Bonds, is
hereby reaffirmed and shall continue to be maintained by the City while the Bonds remain
outstanding. The Bond Fund is and shall continue to be kept and maintained at the City's
official depository bank, and moneys deposited in the Bond Fund shall be used for no purpose
other than for the payment, redemption and retirement of Bonds Similarly Secured.
"SECTION 13: S~stem Fund. The City hereby reaffirms its covenant to the holders of the
Previously Issue Bonds and agrees with the holders ·of the Bonds _ that the moneys deposited in
the System Fund shall be used first for the payment of the reasonable and proper expenses of
operating and maintaining the System, as identified in Section 9(e) hereof. All _ moneys
deposited in the System Fund in excess of the amounts required to pay operating and maintenance
expenses of the System, as hereinabove provided, shall be applied and appropriated, to the
extent required and in the order of priority prescribed, as follows:
( i) To the payment of the amounts required to be deposited in the Bond Fund for the
payment of principal of and interest on the Bonds Similarly Secured as the same become due and
payable; and ·
(ii) To the payment of the amounts, if any, required to be deposited in the Bond Fund to
accumulate and maintain the reserve amount as security for the payment of the principal of and
interest on the Bonds Similarly Secured.
"SECTION 14: Bond Fund. (a) That, in addition to the required monthly deposits to the Bond
Fund for the payment of principal of and interest on the Previously Issued Bonds, the City
hereby agrees and covenants to deposit to the Bond Fund an amount equa 1 to one hundred percent um
(100%) of the amount required to fully pay the interest on and principal of the Bonds falling
due on or before each maturity and interest payment date, such payments to be made in substan-
tially equal monthly installments on or before the 1st day of each month beginning on or before
the 1st day of the month next fo 11 owi n.9 the month the Bonds are delivered to the initial
purchaser.
The required monthly deposits to the Bond Fund for the payment of principal of and interest on
the Bonds sha 11 continue to be made as herei nabove provided until such time as ( i) the tot a 1
amount on deposit in the Bond Fund, including the "Reserve Portion" deposited therein, is equal
to the amount required to fully pay and discharge all outstanding Bonds Similarly Secured
(principal and interest) or (ii) the Bonds are no longer outstanding, i.e., fully paid as to
principal and interest or all the Bonds have been refunded.
Accrued interest and premium, if any, received from the purchasers of the Bonds shall be
deposited in the Bond Fund, and .shall be taken into consideration and reduce the amount of the
monthly deposits hereinabove required which would otherwise be required to be deposited in the
Bond Fund from the Net Revenues of the System •
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(b) In addition to the amounts to be deposited in the Bond Fund to pay current principal
and interest for the Bonds Similarly Secured. the City reaffirms its covenant to the holders of
the Previously Issued Bonds and agrees to accumulate and maintain in said .Fund a reserve amount
(the "Reserve Portion") equal to not less than the average annual principal and interest requirements of all outstanding Bonds Similarly Secured (calculated and redetermined at the
time of issuance of each series of Bonds Similarly Secured).
In accordance with the ordinances authorizing the issuance of the Previously Issued Bonds,
there is currently on deposit to the credit of the Reserve Portion of the Bond Fund the sum -of
$ • By reason of the issuance of the Bonds. the Reserve Portion to be maintained in
sa1d Fund shall be$~----• which amount totals not less than the average annual princi-
pal and interest requirements of the outstanding Bonds Similarly Secured after giving effect to
the issuance of the Bonds. Beginning on or before the 1st day of July, 1983, and on or before
the 1st day of each following month. the City agrees and covenants that, in addition to the monthly deposits required in paragraph (a) of this Section, there shall also be deposited in
the Bond Fund the sum of$___, ______ .,....... until the Bond Fund contains such Reserve Portion in cash
and book value of investment secur1t1es. In the event the City elects to increase the monthly
deposits to the -Bond Fund applicable to the accumulation of the Reserve Portion, the amount in
excess of the required monthly deposit shall serve as a credit to the amount required to be
deposited in the next month or months.
The Reserve Portion of the Bond Fund shall be made available for and reasonably employed in
meeting the requirements of the Bond Fund if need be, and if any amount thereof is so employed.
the Reserve Portion in the Bond Fund shall be fully restored as rapidly as possible from the
first available Net Revenues of the System in the System Fund subject only to the priority of
payments hereinabove prescribed in Section 13.
"SECTION 15: Payment of Bonds. While any of the Bonds are outstanding, the proper officers of
the City are hereby authorized to transfer or cause to be transferred to the Paying Agents
therefor, from funds on deposit in the Bond Fund, including the Reserve Portion, if necessary,
amounts sufficient to fully pay and discharge promptly as each installment of interest and
pr.incipal of the Bonds accrues or matures or comes due by reason of redemption prior to
maturity; such transfer of funds to be made in such manner as will cause immediately available
funds to be deposited with the Paying Agents for the Bonds at the close of the business day next
preceding the date of payment for the Bonds. The Paying Agents shall cancel and destroy all
paid Bonds, and · the coupons, if any, appertaining thereto, and furnish the City with an
appropriate certificate of cancellation or destruction.
"SECTION 16: Deficiencies in Funds. That, if in any month the City shall, for any reason,
fail to pay into the Bond Fund the full amounts above stipulated, amounts equivalent to such
deficiencies shall be set apart and paid into said Fund from the first available and unallo-
cated Net Revenues of the System in the following month or months and such payments shall be in
addition to the amounts hereinabove provided to be otherwise paid into said Fund during such
month-or months.
"SECTION 17: Excess Revenues. Any surplus Net Revenues of the System remaining after all
payments have been made into the Bond Fund and after all deficiencies in making deposits to said
Fund have been remedied, may be used for any other City purposes now or hereafter permitted by
law, including the use thereof for the retirement in advance of maturity of the Bonds Similarly
Secured by the purchase of any of such Bonds Similarly Secured on the open market at not
exceeding the market value thereof. Nothing herein, however, shall be construed as impairing
the right of the City to pay, in accordance with the provisions thereof, any junior lien bonds
legally issued by it and payable out of the Net Revenues of the System.
NSECTION 18: Security of Funds. That moneys on deposit in the System Fund (except any amounts
as may be properly invested) shall be secured in the manner and to the fullest extent required
by the laws of the State of Texas for the security of public funds. Moneys on deposit in the
Bond Fund shall be continuously secured by a valid pledge of direct obligations of, -or obliga-
tions unconditionally guaranteed by the United States of America, having a par value, or market
value when less than par, exclusive of accrued interest, at all times at least equal to the
amount of money to be deposited in said Fund. All sums deposited in said Bond Fund shall be held as a trust fund for the benefit of the holders of the Bonds Similarly Secured, the
beneficial interest in which shall be regarded as existing in such holders. To the extent that
money in the Reserve Portion of the Bond Fund is inv.ested under the provisions of Section 19
hereof, such security is not required;
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"SECTION 19: Investment of Reserve Portion of Bond Fund. The custodian bank shall, when
authorized by the City Council, invest the Reserve Portion of the Bond Fund in direct obliga-
tions of, or obligations guaranteed by the United States of America, or invested in direct
obligations of the Federal Intermediate Credit Banks, Federal Land Banks, Federal National
Mortgage Association. Federal Home Loan Banks or Banks for Cooperatives• and which such invest-ment obligations must mature or be subject to redemption at the option of the holder, within not to exceed ten years from the date of making the investment. Such obligations shall be held by
the depository impressed with the same trust for the benefit of the bondholders as the Bond Fund
itself, and if at any time uninvested funds shall be insufficient to permit payment of prin-
cipal and interest maturities for the Bonds Similarly Secured, the said custodian bank shall
sell on the open market such amount of the securities as is required to pay said Bonds Similarly
Secured and interest when due and shall give notice thereof to the City. All moneys resulting
from maturity of principal and interest of the securities shall be reinvested or accumulated in
the Reserve Portion of the Bond Fund and considered a part thereof and used for and only for the
purposes hereinabove provided with respect to said Reserve Portion, provided that when the full
amount required to be accumulated in the Reserve Portion of the Bond Fund (being the amounts
required to be accumulated by the ordinances authorizing the Bonds Similarly Secured), any interest increment may be used in the Bond Fund to reduce the payments that would otherwise be
required to pay the current debt service requirements on Bonds Similarly Secured.
"SECTION 20: Issuance of Additional Parit~ Bonds. That, in addition to the right to issue
bonds of inferior lien as authorized by the aws of the State of Texas, the City hereby reserves
the right to issue Additional Bonds which, when duly authorized and issued in compliance with
the terms and conditions hereinafter appearing, shall be on a parity with the Previously Issued
Bonds and the Bonds herein authorized, payable from and equally secured by a first lien on and
pledge of the Net Revenues of the System. The Additional Bonds may be issued in one or more
installments, provided, however, that none shall be issued unless and until the following
conditions have been met:
(a) That the Mayor and City Treasurer have certified that the City is not then in default
as to any covenant, condition or obligation prescribed by any ordinance authorizing the issu-
ance of Bonds Similarly Secured then outstanding, including showings that all interest, sinking
and reserve funds then provided for have been fully maintained in accordance with the provi-
sions of said ordinances;
(b) That the applicable laws of the State of Texas in force at the time provide per-
mission and authority for the issuance of such bonds and have been fully complied with;
(c) That the City has secured from an independent Certified Public Accountant his written
report demonstrating that the Net Revenues of the System were, during the last completed Fiscal
Year, or during any consecutive twelve (12) months period of the last fifteen (15) consecutive
months prior to the month of adoption of the ordinance authorizing the Additional Bonds, equal
to at least one and one-half (1 1/2) times the average annual principal and interest require-
ments of all the bonds which will be secured by a first lien on and pledge of the Net Revenues
of the System and which will be outstanding upon the issuance of the Additional Bonds; and
further demonstrating that for the same period as is employed in arriving at the aforementioned
test said Net Revenues were equal to at least one and one-fifth (1-1/5) times the maximum annual
principal and interest requirements of all such bonds as will be outstanding upon the issuance
of the Additional Bonds;
(d) That the Additional Bonds are made to mature on April 15 or October 15, or both, in
each of the years in which they are provided to mature;
( e) The Reserve Portion of the Bond Fund sha 11 be accumulated and supplemented as nec-essary to maintain a sum which shall be not less than the average annual principal and interest
requirements of all bonds secured by a first lien on and pledge of the Net Revenues of the
System which will be outstanding upon the issuance of any series of Additional Bonds. Accord-
ingly, each ordinance authorizing the issuance of any series of Additional Bonds shall provide
for any required increase in said Reserve Portion, and if supplementation is necessary to meet
all conditions of said Reserve Portion, said ordinances shall make provision that same be
supplemented by the required amounts in equal monthly installments over a period of not to
exceed sixty (60) calendar months from the dating of such Additional Bonds.
When thus issued, such Additional Bonds may be secured by a pledge of the Net Revenues of the
System on a parity in all things with the pledge securing the issuance of .the Bonds. and the
Previously Issued Bonds.
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'
.. •SECTION 21: Maintenance and Operation -Insurance. That the City hereby covenants and agrees
to ma1nta1n the System in good condition and operate the same in an efficient manner and at
reasonable costs. The City further agrees to maintain insurance for the benefit of the holder
or holders of the Bonds of the kinds and in the amounts which are usually carried by private companies operating similar properties. and . that during such time an policies of insurance
shall be maintained in force and kept current as to premium payments. All moneys received from
losses under such insurance policies other than public liability policies are hereby pledged as
security for the Bonds Similarly Secured until and unless the proceeds thereof are paid out in
making good the loss or damage in respect of which such proceeds are received. either by
replacing the property destroyed or repairing the property damaged. and adequate provisions made within ninety (90) days after the date of the loss for making good such loss or damage.
The premiums for all insurance policies required under the provisions of this Section shall be
considered as maintenance and operation expenses .of the System.
"SECTION 22: Records -Accounts -Accounting Reports. That the City hereby covenants and
agrees so long as any of the Bonds or any interest thereon remain outstanding and unpaid. it
will keep and maintain a proper and complete system of records and accounts pertaining to the operation of the System and its component parts separate and apart from all other records and
accounts of the City in accordance with generally accepted accounting principles prescribed for
municipal corporations. and complete and correct entries shall be made of all transactions
relating to said System. as provided by applicable law. The holder or holders of any Bonds. or
any duly authorized agent or agents of such holders. shall have the right at all reasonable
times to inspect all such records. accounts and data relating thereto and to inspect the System
and all properties comprising same. The City further agrees that as soon as possible following the close of each Fiscal Year, it will cause an audit of such books and accounts to be made by
an independent firm of Certified Public Accountants. Each such audit. in addition to whatever
other matters may be thought proper by the Accountant. shall particularly include the
following:
(a) A detailed statement of the income and· expenditures of the System for such Fiscal
Year;
(b) A balance sheet as of the end of such Fiscal Year;.
(c) The Accountant's comments regarding the manner in which the City has complied with the covenants and requirements of this ordinance and his recorrmendations for any changes or
improvements in the operation. records and accounts of the System;
(d} A list of the insurance policies in force at the end of the Fiscal Year on System
properties. setting out as to each policy the amount thereof, the risk covered. the name of the insurer. and the policy's expiration date;
. (e} A list of the securities which have been on deposit as security for the money in the
Bond Fund throughout the Fiscal Year and a list of the securities. if any. in which the Reserve Portion of the Bond Fund has been invested;
(f) The total number of metered and unmetered customers. if any. connected with the System at the end of the Fiscal Year.
Expenses incurred in making the audits above referred to are to be regarded as maintenance and operating expenses of the System and paid as such. Copies of the aforesaid annual audit shall
be immediately furnished to the Executive Director of the Municipal Advisory Council of Texas
at his office in Austin. Texas. and, upon written request. to the original purchasers and any subsequent holder of the Bonds.
"SECTION 23: Remedies in Event of Default That,. in addition to all the rights and remedies provided by laws of the State of Texas, the City covenants and agrees particularly that in the
event the Cit,Y (a) defaults in payments to be made to the Bond Fund as required by this
ordinance or (b) defaults in the observance or performance of any other of the covenants, conditions or obligations set forth in this ordinance. the holder or holders of any of the Bonds shall be entitled to a writ of mandamus issued by a court of proper jurisdiction compelling and
requiring the City Council and other officers of the City to observe and perform any covenant,
condition or obligation prescribed in this ordinance.
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No delay or omission to exercise any right or power accruing upon any default sha 11 impair any
such right or power, or shall be construed to be a waiver of any such default or acquiescence
therein, and every such right or power may be exercised from time to time and as often as may be
deemed expedient. The specific remedies herein provided shall be cumulative of all other
existing remedies and the specifications of such remedies shall not be deemed to be exclusive.
"SECTION 24: Special Covenants. The City hereby further covenants as follows:
(a) That it has the lawful power to pledge the revenues supporting this issue of Bonds
and has lawfully exercised said power under the Constitution and laws of the State of Texas,
including Article 1111 et seq., V.A.T.C.S.; that the Previously Issued Bonds, the Bonds and the
Additional Bonds, when issued, shall be ratably secured under said pledge of income in such
manner that one bond shall have no preference over any other bond of said issues.
{b) That, other than for the payment of the Previously Issued Bonds, the Bonds and the
Refunded Bonds (until the lien and pledge securing the payment thereof has been defeased), the
Net Revenues of the System have not been pledged to the payment of any debt or obligation of the
City or of the System.
(c) That, so long as any of the Bonds or any interest thereon remain outstanding, the
City will not sell, lease or encumber the System or any substantial part thereof; provided,
however, this covenant shall not be construed to prohibit the sale of such machinery, or other
properties or equipment which has become obsolete or otherwise unsuited to the efficient
operation of the System when other property of equal value has been substituted therefor, and,
also, with the exception of the Additional Bonds expressly permitted by this ordinance to be
issued, it wil 1 not encumber the Net Revenues of the System unless such encumbrance is made
junior and subordinate to all of the provisions of this ordinance.
(d) The City will cause to be rendered monthly to each customer receiving electric
services a statement therefor and will not accept payment of 1 ess than a 11 of any statement so
rendered, using its power under existing ordinances and under all such ordinances to become
effective in the future to enforce payment, to withhold service from such delinquent customers
and to enforce and authorize reconnection charges.
(e) That the City will faithfully and punctually perform all duties with respect to the
System required by the Constitution and laws of the State of Texas, including the making and
collecting of reasonable and sufficient rates for services supplied by the System, and the
segregation and application of the revenues of. the System as• required by the provisions of this
ordinance. ·
(f) No free service shall be provided by the System and to the extent the City or its
departments or agencies utilize the services provided by the System, payment shall be made
therefor at rates charged to others for similar service.
"SECTION 25: Special Obligations. The Bonds are special obligations of the City payable from
the pledged Net Revenues of the System and the holders hereof shall never have the right to
demand payment thereof out of funds raised or to be raised by tax at ion.
"SECTION 26: Bonds are Negotiable Instruments. Each of the Bonds herein authorized shall be
deemed and construed to be a "Security,11 and as such a negotiable instrument, within the
meaning of Article 8 of the Uniform Ccmnercial Code.
"SECTION 27: Ordinance to Constitute Contract. The provisions of this ordinance shall con-
stitute a. contract between the City and the holder or holders from time to time of the Bonds
and, no change, variation or alteration of any kind of the provisions of this ordinance may be
made, until such Bonds are no longer outstanding. · ·
"SECTION 28: No-Arbitrage. The City covenants to and with the purchasers of the Bonds that it
will make no use of the proceeds of the Bonds, investment income or other funds at any time
throughout·the term of this issue of Bonds which would cause the Bonds to be arbitrage bonds
within the meaning of Section 1O3(c) of the Internal Revenue Code of 1954, as amended, or any
regulations or rulings pertaining thereto.
"SE CTI ON 29: Fina 1 Deposits; Governmenta 1 Ob 1 i ~at ions. (a) A 11 or any of the Bonds sha 11 be
deemed to be paid, retired and no longer outstan ,ng within the meaning of this Ordinance when
payment of th'e pr inc i pa 1 of, and redemption · premium, if any, on such Bonds, p 1 us interest
thereon to the due date thereof (whether such due date be by reason of maturity, upon redemp-
tion, or otherwise) either (i) shall have been made or caused to be made in accordance with the
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' terms thereof (including the giving of any required notice of redemption), or (ii) shall have
been provided by irrevocably depositing with, or making available to, the Paying Agents there-
for, in trust and irrevocably set aside exclusively for such payment, (1) money sufficient to
make such payment or (2) Government Obligations, certified by an independent public accounting
firm of national reputation, to mature as to principal and interest in such amounts and at such
times as will insure the availability, without reinvestment, of sufficient money to make such payment, and all necessary and proper fees, compensation and expenses of the Paying Agents
pertaining to the Bonds with respect to which such deposit is made shall have been paid or the
payment thereof provided to the satisfaction of the Paying Agents. At such time as a Bond shall
be deemed to be paid hereunder, as aforesaid, it shall no longer be secured by or entitled -to
the benefit of this Ordinance or a lien on and pledge of the Net Revenues of the System, and
shall be entitled to payment solely fran such money or Government Obligations.
The term "Government Obligations", as used in this Section, shall mean direct obligations of
the United States of America, including obligations the principal of and interest on which are
unconditionally guaranteed by the United States of America, which may be United States Treasury
obligations such as its State and Local Government Series, and which may be in book-entry form.
(b) That any moneys so deposited with the Paying Agents may at the direction of the City
also be invested in Government Obligations, maturing in the amounts and times as hereinbefore set forth, and all income from all Government Obligations in the hands of the Paying Agents
pursuant to this Section which is not required for the payment of the Bonds, the redemption
premium, if any, and interest thereon, with respect to which such money has been -so deposited,
shall be turned over to the City or deposited as directed by the City.
(c) That the City covenants that no deposit will be made or accepted .under clause
(a)(ii) of this Section and no use made of any such deposit which would cause the Bonds to be
treated as arbitrage bonds within the meaning of Section 103(c) of the Internal Revenue Code of
1954, as amended.
(d) That notwithstanding any other provisions of this Ordinance, all money or Government _
Obligations set aside and held in trust pursuant to the provisions of this Section for the
payment of the Bonds, the redemption premium, if any, and interest thereon, shall be applied to
and used for the payment thereof, the redemption premium, if any, and interest thereon and the
income on such money or Government Ob 1 i gat ions shall not be considered to be income or revenues
of the System."
-23 -
The information set forth herein under the heading "General Information Regarding the City and
Its Economy" has been furnished by the sources indicated, but it is not guaranteed as to
accuracy or completeness by the Underwriters.
GENERAL INFORMATION REGARDING THE CITY ANO ITS ECONOMY
LOCATION ANO AREA
The City of Lubbock, County Seat of Lubbock County, Texas, is located on the South Plains of
West Texas, 327 miles to the west of Dallas. Lubbock is the economic, educational, cultural and
medical center of the area.
POPULATION
Lubbock is the eighth largest City in Texas:
1910 Census
1920 Census
1930 Census
1940 Census
1950 Census
1960 Census
1970 Census
1980 Census .
1983 Estimate
City of Lubbock
(Corporate Limits) 1,938
4,051
20,520
31,853
71,390
128,691
149,101
173,979
181,500*
Standard Metropolitan Area (Lubbock County)
1970 Census _179,295
1980 Census 211,651
* Source: City of Lubbock, Texas.
AGRICULTURE .••
Lubbock is the center of a highly mechanized agricultural area with a majority of the crops
irrigated with water from underground sources. Principal crops are cotton, grain sorghums and
corn with livestock, sunflowers and soybeans as additional sources of agricultural income.
The Texas Department of Agriculture and the Statistica1 Reporting Service, U.S. Department of
Agriculture report as follows:
Lubbock County's 1981 cotton production was 275,400 bales; grain sorghum production was
30,490,000 pounds; and corn production was 140,000 bushels.
On January 1, 1982, there were an estimated 63,000 head of cattle and calves located on farms or
in feed lots in Lubbock County.
Lubbock County Cash Receipts from farm marketings, 1979/81, were:
All Crops
Livestock and Products
U.S. Government Payments
Total Cash Receipts
* Preliminary -subject to revision.
1979
$ 74,701,000
39,255,000
519711000
$119,927,000
1980 1981*
$ 89,845,000 $ 70,692,000
33,771,000 33,902,000
61434 1000 N.A.
$130,050,000 $ N.A.
1981 cotton production in a 23 county (including Lubbock County) area surrounding Lubbock was
2,840,700 bales; 1981 grain sorghum production in this same area was 1,357,640,000 pounds; and
grain corn production was 57,141,300 bushels.
Three major vegetable oil plants located in Lubbock have a combined weekly capacity of over
2,400 tons of cottonseed and soybean oil.
-24 -
..
\
Several major seed companies are headquartered in Lubbock •
BUSINESS ANO INDUSTRY •••
Lubbock SMSA Labor Force Estimates*
Civilian Labor Force
Total Employment
Unemployment Percent Unemployed
February
1983**
107,200
100,800
6,400
6.0%
January
1983 107,300
101,200
6,100 5.7%
December February
1982 1982
108,000 103,900
103,150 98,900
4,850 5,000 4.5% 4.8%
State of Texas Labor Force Estimates*
Civilian Labor Force
Total Employment Unemployment
Percent Unemployed
February
1983**
7,543.3
6,877.5 665,8
8.8%
(in thousands)
January December February
1983 1982 1982 7,589.1 7,495.4 7,236.0
6,943.4 6,938.5 6,814.7
645.7 556.9 421.3
8.5% 7.4% 5.8%
United States Labor ·Force Estimates* (in thousands)
Civilian Labor Force
Total Employment
Unemployment
Percent Unemployed
February
1983**
l09,647.0
97,265.0 12,382.0
11.3%
January
1983
109,779.0
97,262.0
12,517.0
11.4%
* Source: Texas Employment Conmission.
** Subject to revision.
December
1982
110,477 .o
98,849.0
11,628.0
10.5%
February
1982
108,324.0
97,946.0
10,378.0
9.6%
January December
1982 1981
101,950 103,750
97,550 102,950
4,400 3,800 4.3% 3.7%
January December
1982 1981 7,169.3 7,127.5
6,743.2 6,802.6
426.1 324.9
5.9% 4.6%
January December
1982 1981
108,014.0 1oa,s14.o
97,831.0 99.562.0
10,183.0 9,013.0
9.4% 8.3%
The Texas Employment Conmission reported in March, 1983, that February, 1983, non-agricultural
employment in the Lubbock area totaled 89,000, down from 89,900 in .February, 1982; of this total an estimated 11~400 were employed in manufacturing compared to 11,800 in February, 1982.
Over 240 manufacturing plants in Lubbock produce such products as consumer products utilizing
semi-conductor elements, vegetable oils, heavy earth-moving machinery,· irrigation equipment
and pipe, farm equipment, electronic instruments, paperboard boxes·, foodstuffs, mobile and
prefabricated homes, poultry and livestock feeds, boilers and pressure vessels, automatic
sprinkler system heads, structural steel fabrication and soft drinks.
Some larger industries in Lubbock (with 100 employees or more) are:
Company
Texas Instruments, Inc.
Product Consumer Products with Semi-Conductor
Elements
Lubbock Avalanche-Journal Southwestern Newspaper
Newspaper Corporation
Litton Data Systems, Guidance and Control Navigational Equipment; Electronic
Systems Division, Litton Industries, Inc. Computer Systems . Plains Co-op Oil Mill Vegetable Oil Products, Cottonseed
Products
Frito~Lay, Inc. (Subsidiary of Potato and Corn Chips
Pepsico, Inc.)
Ev_ans Transportation Company (Division of
Evans Products Company)
Goulds Pumps, Inc. Coca-Cola Bottling Company
Pressure Vessels for Rail Cars
Vertical Turbine Pumps Soft Drinks
-25 -
Estimated
Employees
January 1983*
5,000
350
325**
325
300
250
200 175
Company Grinnell Fire Protection Systems Company (Subsidiary of Tyco Laboratories)
Rainbo Baking Company, subdivision of
Cambell-Taggart Associated Bakeries, Inc.
Mrs. Baird's Bakeries
Johnson Manufacturing Com.· pany (Division of
Eagle-Picher Industries)
Bell Dairy Products, Inc.
Lubbock Cotton Oil Company
Dr. Pepper-Seven Up Bottling Company
* Source: Lubbock Chamber of Commerce.
Product
Automatic Sprinkler Heads
Bread Products
Bread Products
Heavy Earth-Moving Machinery and Farm Equipment ·
Dairy Products
Cottonseed Oi 1 and Other Cottonse.ed
Products, Soyean Oil
Soft Drinks
Estimated Employees January
1983*
150
130
125
125
100
100
100
** Litton has announced that it wil 1 close its operation in Lubbock, fall, 1983.
Texas Instruments, Inc., world .leading developer and producer of semi-conductors and other
electronic products, co11111enced manufacturing operations in Lubbock in April, 1973. The company
employs approximately 5,000 in the manufacture of consumer products utilizing semi-conductor
elements, and the servicing of these products. The Company's Consumer Products Division
headquarters is located in Lubbock.
Wholesale distribution represents a major sector of the Lubbock eonomy, with hundreds of
outlets serving a 54 county area in West Texas and New Mexico.
The U.S. Bureau of the Census, Census of Business, 1977, estimated Lubbock County (Lubbock
Standard Metropolitan Area) retail trade at $866 million in 1977. Sales & Marketin~ Manag-
ement, Survey of Buying Power, estimates Lubbock County 1981 retail sales at $1,413,6 9,000.
There are ten banks in the City ••• American State Bank, established 1948; Texas Co11111erce Bank
(formerly Citizens National Bank), established 1906; First National Bank, established 1901;
Lubbock National Bank, established 1917; The Plains National Bank, established 1955; Security
National Bank, established 1963; Bank of the West, established 1973; Texas Bank & Trust Co.,
established 1973; Southwest Lubbock National Bank, established 1978; and Liberty State Bank,
established 1979 •. There are six savings and loan associations in the City.
Year End
1971
1972
1973
1974
Deposits
$527,314,293
596,697,439
723,~27,701
793,915,466
1977
Combined Bank Statistics
Year End
1975
1976 1977
1978
Deposits
$ 878,164,171
1,013,973,289
1,104,602,863
1,104,896,188
Sales Mana6ement Estimates
UJ6 ock SMSA
1978 1979
Year End
1979
1980 1981
1982
De~osits $1,21,990,000
1,369,037,000
1,500,160,000
1,586,469,000
1980 1981
Total Retail Sales $ ao9 1!n1.ooo $ a1S 142a1000 $1.134,430.000 $1.279,860.000 $1,413,677 .ooo
$1,240,202,000 $1,360,566,000 $1,606,509,000 $1,755,658,000 $1.952,741,000 Effective Buying Income
Per Capita 5,943 6,627 7,828 8,193 8,966
Per Household 14,390 15,767 18,488 19,445 20,978
Number of Households 71,100 71,200 71,700 74,500 76,800
Households Earnin~: $8,000 -$ 9,9 9 8.9% 7.1% 5.8% 5.4%
$10,000 -$14,999 13.3%
$10,000 -$14,999 18.5% 17.8% 15.2% 14.5%
$15,000 -$24,999 25.7%
$15,000 -$24,999 21.1% 28.5% 27.5% 26.9%
$25,000 -$49,999 31.9%
$25,000 and over 10.4% 24.0% 32.9% 35.8%
$50,000 and over 8.2%
Lubbock ranked 11th in the Nation in 1981 in per household retail sales with $18,407; the U. S. average was
$12,630.
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EDUCATION ••• TEXAS TECH UNIVERSITY .•••
Established in Lubbock in 1925, Texas Tech University is the third largest State-owned Univer-
sity in Texas and had a Spring, 1983 enrollment of 21,226. Accredited by the Southern
Association of Colleges and Schools, the University is a co-educational, State-supported insti-
tution offering the bachelor's degree in 109 major fields, the master's degree in 73 major
fields, the doctorate degree in 59 major fields, and the professional degree in 2 major fields
(law and medicine).
The University proper is situated on 451 acres Of the 1,829 acre campus, and t,as over 90
permanent bui 1 dings with additional construction in . progress. 1982-83 faculty membership is
over 1,500, and there are over 4,500 other full and part-time employees including professional
and administrative .staff. Including the Medical Sc'1ool, the University's operating budget for
1982-83 is over $176.l million of which $118.3 million is from State appropriations; book value
of physical plant assets, including the Medical School, is $321.9 million.
In 1969. the State Legis,lature authorized the establishment of a medical school at the Univer-
sity. Construction of Pods A and B of the school is complete, and construction on Pod C is near
completion. The medical school opened in 1972, and had an enrollment of 366 for the Spring
Semester, 1983, not including residents. Tt,ere are 47 .graduate students. The School of
Nursing admitted its first class in Fall, 1981 and had a Spring Semester, 1983 enrollment of
108. The Allied Health School admitted its first class in Fall, 1982, and Spring Semester, 1983
enrollment, is 7 physical therapy students.
OTHER EDUCATION INFORMATION •••
The Lubbock Independent School District, with an area of 87 .5 square miles, includes over 95%
of the City of Lubbock •. October, 1982, enrollment was 28,825; there were 1,977 faculty and
professional personnel and 1~238 other employees •. The District .operates 5 senior high schools,
8 junior high schools, 35 elementary schools and other educational programs. The District
currently has under construction 3 new elementary schools and expects these to be completed and
in use for the Fall, 1983 semester.
. . ' . .,
SCHOLASTIC MEMBERSHIP HISTORY*
School
Year
1972-73
·. 1973-74
1974-75
1975-76
1976"'.77
1977-78
1978-79
1979-80
1980-81
1981-82
1982-83
Student
Membership
32,063 ·
32,499 .
32,209
31,733
31,502
31,163
29,877
29,377
28,828
28,942
28,825**
Refined
Average
Daily
Attendance
. 30,716
30,477
30,255
29,888
29,683
29,554
28,284
27,257
27,044
26,995 .
* Source: Superintendent's Office, Lubbock Independent School District.
** As of October, 1982 (end of first six weeks period).
Lubbock Christian College, a privately owned, co-educational senior college located in Lubbock,
had an enrollment of approximately 860 for the Spring Semester, 1983, and offers 23 bachelor
degree programs. ·
South Plains College, Levelland, Texas (South Plains Junior College Qistrict) operates a m~or
off-campus learning center in a downtown Lubbock, 7-story building owned by the College.
Course offerings. cover technical/vocational subjects, and Spring, i 1983 enrollment was . ap-
proximately 1,020. The College also operates a major off-campus learning center at Reese Air
Force Base; course offerings are in primarily academic subjects and Spring, 1983 enrollment was
411.
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The State of Texas School for the Mentally Retarded, located on a 220 acre site in Lubbock, now
consists of 37 buildings with accommodations for 556 students. The School's operating budget
for 1982/83 is in excess of $12.0 million. The School is operating at 100% capacity, and has
over 800 professional and other employees.
TRANSPORTATION •••
· Scheduled airline transportation at Lubbock International Airport is furnished by American
Airlines, Delta Airlines, Continental Airlines, and Southwest Airlines. Non-stop service is
provided to Dallas-Fort Worth Regional Airport, Dallas Love Field, Houston, Amarillo, Austin,
El Paso and Midland-Odessa. 1982 passenger boardings totaled 505,871. · Extensive private
aviation services are located at the airport. FedeNl Express services are available. ·
Rail transportation is furnished by the Atchison, Topeka: and Santa Fe .Railway Company and the
Burlington-Northern, Inc., with through service to Dallas, Houston, Kansas City, Chicago, Los
Angeles, and San Francisco. Texas, New Mexico and Oklahoma Bus Lines, a subsfdiary of Grey-
hound Corporation, provides bus service. Headquarters for T.I.M.E.-DC, Inc., a transcon-
. tinental motor carrier, are located in Lubbock,· and several motor freight common carriers
·provide service.
Lubbock has a well developed highway network including 4 U. s. Highways, 1 State Highway, a
control led-access outer· loop and a county-wide system of paved farm-to-market roads. The U. S.
Department of Transportation is extending the Interstate Highway System to Lubbock through
construction of a 125 mile interstate highway (Interstate Highway 27) 1 inking Lubbock to
Interstate 40 at Amarillo; construction is in progress.
GOVERNMENT AND MILITARY •••
Reese Air Force Base, located 5 iniles west of Lubbock, is an undergraduate Jet Pilot Training
Base of the Air Training Command. The Base covers over 3,000 acres and has 2,634 military and
568 c i vi 1 i an personne 1 •
State of Texas ... More than 25 State of Texas boards, departments, agencies and commissions
have offices in Lubbock; several of these offices have multiple units or offices.
Federal Government ••• Several Federal departments and various other administrations and agen-
cies have offices in Lubbock; a Federal District Court is located in the City.
HOSPITALS AND MEDICAL CARE •••
There are seven hospitals with a January, 1983 total of 1,508 licensed beds. Methodist.
Hospital, the largest, employs 533 of its licensed 549 beds, and also operates an accredited
nursing school; St. Mary's of the Plains Hospital utilizes 203 beds of its licensed 222 beds.
Others include West Texas Hospital with 166 beds, Highland Hospital with 123 beds, University
Hospital, Inc. with 99 beds and C0111nunity Hospital of Lubbock· with 76 beds. Lubbock County
Hospital District, with boundaries contiguous with Lubbock County, owns the Lubbock General
Hospital which it operates as a teaching hospital for the Texas Tech University Medical School,
utilizing 210 of its licensed 273 beds.
Lubbock has over 200 practicing physicians and surgeons (M.D.J plus the Texas Tech University
Medical School Staff, and over 90 dentists. A radiology center for the treatment of malignant
diseases is located in the City.
RECREATION AND ENTERTAINMENT •••
Lubbock's Mackenzie State Park and 60 City parks and playgrounds provide_recreation centers,
shelter buildings, a garden and art center, swimming pools, a golf course, tennis and volley
ball courts, baseball diamonds and picnic areas, including the Yellowhouse Canyon lakes system
of four lakes and 500 acres of adjacent parkland extending from northwest to southeast Lubbock
along the Yellowhouse Canyon. There are several privately-owned public swimming pools and golf
courses, and 2 country clubs, each with a golf course, swimming pool and tennis courts.
The City of Lubbock has .developed a 36 square block area of approximately 100 acres adjacent to
downtown Lubbock · under the Lubbock Memorial Civic Center program. Approximately · 50 acres
contain the 300,000 square foot Lubbock Memorial Civic Center, the main City library building
and State Department of Public Safety Offices. The west and south periphery~ about 50 acres, is
being redeveloped privately with office buildings, hotels and motels, a hospital and other
facilities.
.,. 28 -,
.. Available to residents are Texas Tech University programs and events, Texas Tech University
Museum, Planetarium and Ranch Heritage Center exhibits and programs, Lubbock Memorial Civic
Center and its events, Lubbock Symphony Orchestra programs, Lubbock Theatre Center, Lubbock Civic Ballet, Municipal Auditorium and Coliseum programs and events, the 1 ibrary and its
branches, the annual Panhandle-South Plains Fair, college and high school football, basketball
and other sporting events; modern movie theatres.
CHURCHES •••
Lubbock has approximately 20.0 churches representing more than 25 denomi nat i ans.
UTILITY SERVICES •••
Water and Sewer -City of Lubbock.
Gas -Energas ·company (a division of Pioneer Corporation).
Electric -City of Lubbock (Lubbock Power & Light) and Southwestern Public Service Company.
Telephone -Southwestern Bell Telephone Company.
MEDIA •••
Newspapers -1 daily (morning and evening); others semi-weekly and weekly.
Television and Radio -3 network TV channels and 1 educational public service TV channel; cable
TV services; AM and FM radio stations.
Year nm
1971
1972
1973
1974
1975
1976
1977
1978 1979
1980
1981
1982
Bank
Oe~osits $ 47 ,247,184
527.314,293
596.697.439
723,327.701
793,915,466
878,164,171
1,013.973,289
1,104,602,863
1,104,896,188
1.219.990,000
1,369,037,000
1,500,160,000
1,586,469.000
Building
Permits $40,035,768
69,209,358
64,278,038
78,844.779
118,718,253
114.823,400
91.904,380
131,951,646
132,600,657
104,883,750
88,829,331
106,757,064
130,720,599
ECONOMIC INDICES (1)
Water ~ 43,012
44,331
45,565 46,745
47,817
49,933
50,825
52,629
53,705
54,788
55,527
56,172
Utilit~ Connections .
Gas E ectric Telephone(2)
~ 48,966 N.A.
44,421 49,970 N.A.
45,168 50,717 N.A.
45,650 50,994 N.A.
46,548 51,739 N.A.
47,671 52,451 N.A.
48,809 56,008(3) N.A.
50,062 60,077 83,646
51,266 63,123 87,159
52,199 65,294 89,873
53,083 66,885 91,546
53,785 74,224 93,860
54,650 75,975 96,950
Postal
Receipts S 4,043,407
4,323,582
5,241,799
5,317,985
5,737,352
6,662,348
8,027,363
10,778,787
11,006,891 11,758,260
12,882,061
13,867,490
15,875,810
Notes: (1) All data 1970-1982 as of 12-31, except Postal Receipts which are as of 6-30 for
1967-76 and as of 12-31 for 1977/82.
(2) Total mains plus equivalent mains -count of telephone lines of all types to
residences and businesses; not a count of telephone instruments.·
(3) Electric connections include those of a privately owned utility company. 12-31-76
electric connections reflect institution of metering of individual apartment units. ·
-29 -
BUILDING PERMITS BY CLASSIFICATION {Source: Citt of Lubbock1 Texas} Residential Permits Cormiercial, Single Familt Duelexes Aeartments n l Tota1 Residential Public Total No. Permits No. Dwe 11 ing and Other Building Year No. Units Value (Units1 Value No. Units Value Units Value Permits Permits 1969 427 $10,077,800 36( 72 $ 754,000 52 $ 364,000 551 $11,195,800 $18,568,662 $29,764,462 1970 485 10,942,391 15( 30) 429,700 633 5,966,400 1,148 17,338,491 22,697,277 40,035,768 1971 864 20,782,556 67(134) 2,297,700 894 10,079,491 1,892 33,159,747 36,049,611 69,209,358 1972 852 22,667,238 75(150) 3,008,650 1,171 11,315,898 2,173 36,991,786 _27,286,253 64,278,039 w 1973 815 22,702,186 52(104) 2,317,050 949 9,121,400 1,868 34,140,636 44,704,143 78,844,779 0 1974 893 29,446,897 34 ( 68) 1,440,500 773 7,315,500 1,734 38,202,897 80,515,356 118,718,253 1975 1,002 37,766,603 23 ( 46) 1,165,450 734 5,592,000 1,782 44,524,053 70,299,347 114,823,400 1976 1,164 44,220,463 48( 96) 2,723,150 712 6,908,000 1,972 53,851,613 38,052,767 91,904,380 1977 1,713 72,055,014 72(144) 4,011,400 1,654 22,571,000 3,511 98,637,414 33,314,232 131,951,646 1978 1,276 62,785,400 80(160) 5,074,550 636 9,479,000 2,072 77,338,950 55,261,707 132,600,657 1979 935 50,207,289 16( 32) 897,000 300 5,144,680 1,267 56,248,969 48,634,781 104;883,750 1980 895 50,943,410 36( 72) 2,293,900 216 3,535,500 1,183 56,772,810 32,056,521 88,829,331 1981 655 47,760,510 '13( 23)* 1,389,500 -748 20,415,552 1,426 69,565,562 37,191,502 106,757,064 1982 733 56,023,000 34( 68) 2,442,250 860 18,504,660 1,661 76,969,910 53,750,689 130,720,599 Notes: (1) Data shown under "No. Units" is for each individual apartment dwelling unit, and is not for separate buildings. * As reported by City.
..
RATINGS
Applications for contract ratings on this issue have been made to Moody's Investors Service,
Inc. and Standard & Poor's Corporation. Ari explanation of the significance of such ratings may
be obtained from the company furnishing the rating. The ratings reflect only the respective
views of such organizations and the City makes no representation as to the appropriateness of
the ratings. There is no assurance that such ratings will cqntinue for any given period of time
or that they will not be revised downward or withdrawn entirely by either or both of such rating
companies, if in the judgment of either or both companies, circumstances so warrant. Any such
downward revision or withdrawal of such ratings, or either of them, may have an adverse effect
on the market price of the Bonds.
TAX EXEMPTION
The City will issue its certificate to the effect that on the basis of the facts, estimates and
circumstances in existence on the date of the delivery of the Bonds, -it is not expected that the
proceeds of the Bonds wi 11 be used in a manner that would cause the Bonds to be "arbitrage
bondsi• under Section 103(c) of the Internal Revenue Code of 1954, as amended.
For purposes of Section 103(c) of the Internal Revenue Code of 1954, as amended, relating to
arbitrage bonds, the City has taken into account the Underwriters' discount and certain costs of issuance in computing the yield on the Bonds. This treatment is in accordance with the
decision of the United States Tax Court, which was affirmed by the United States Court of
Appeals for the District of Columbia Circuit, in State of Washington v. Coomissioner, 77 T.C.
656 (1981), aff'd, 692 F.2d 128 (D.C. Cir. 1982). In their decisions the courts held invalid
certain portions of the Treasury Regulations promulgated under Section l03(c) which would
prohibit such treatment of the Underwriters' discount and costs of issuance and under which the
Bonds would be considered to be arbitrage bonds, the interest on which would not be exempt from
federal income tax.
In a news release dated March 2, 1983, the Internal Revenue Service announced that it will not
seek to have the United States Supreme Court review the decision of the Circuit Court of
Appeals, that regulations to be published . in the near future will specifically address the
issue raised in the State of Washington case, and that, until those regulations are published,
reasonable administrative costs incurred in issuing governmental obligations, including under-
writing spread may be taken into account in computing yield on governmental obligations under
Section 103(c). First Southwest Company, Financial Advisor to the City, has advised the City
that the administrative costs incurred in issuing the Bonds, including underwriting spread, are
in their opinion reasonable.
Bond Counsel is of the opinion that the interest on the Bonds is exempt from federal income tax
under existing law. (See "Appendix i3 -Form of Bond Counsel's Opinion".)
VERIFICATION OF ARITHMETICAL ANO MATHEMATICAL COMPUTATIONS
The accuracy of (a) the arithmetical computations of the adequacy of the maturing principal and
interest of the Federal Securities and uninvested cash on hand under the Escrow Agreement to
pay, when due, the principal of and interest and redemption premiums, if any, on the Refunded Bonds and (b) the mathematical computations supporting the conclusion of Bond Counsel that the
Series 1983 Bonds are not "arbitrage bonds" under Section 103(c) of the Internal Revenue Code
.of 1954, as amended, will .be verified by the firm of Ernst & Whinney, independent Certified
Public Accountants. Such verification shall be based upon information supplied to Ernst &
Whinney by the City.
REGISTRATION ANO QUALIFICATION OF BONDS FOR SALE
The sale of the Bonds has not been registered under the Federal Securities Act of 1933, as
amended, in reliance upon the exemption provided thereunder by Section 3(a) (2); and .the Bonds
have not been qualified under the Securities Act of Texas in reliance upon various exemptions
contained therein; nor have the Bonds been qualified under the securities acts of any juris-
diction. The City assumes no responsibility for qualification of the Bonds under the securi-
ties laws of any jurisdiction in which the Bonds may be sold, assigned, pledged, hypothecated
or otherwise transferred. This disclaimer of responsibility for qualification for sale or
other disposition of the Bonds shall not be construed as an interpretation of any kind with
regard to the availability of any exemption from securities registration provisions.
-31 -
LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TEXAS
All bonds issued by an issuer shall constitute negotiable instruments, and are investment
securities governed by Chapter 8, Texas Uniform Coornercial Code, notwithstanding any provisions
of law or court decision to the contrary, arid are legal . and authorized investments for banks,
savings banks, trust companies, building and loan associations, savings and loan associations,
insurance companies, fiduciaries, and trustees, and for the sinking fund of cities, towns,
villages, school districts, and other political subdivisions or public agencies of the State of
Texas. Said bonds also are eligible to secure deposits of any public funds of the state or any
political subdivision or public agency of the state, and are lawful and sufficient security for
the deposits to the extent of their market value, when accompanied by any unmatured coupons
attached to the bonds. No review by the City has been made of the · laws in other states to
determine whether the bonds are legal investments for various institutions in those states.
LEGAL MATTERS AND NO-LITIGATION CERTIFICATE
The City will furnish a complete transcript of proceedings had incident to the authorization
and issuance of the Bonds, including the unqualified approving legal opinion of the Attorney
General of the State of rexas, to the effect that the Bonds are valid and legally binding
obligations of the City, and based upon examination of such transcript of proceedings, the
unqualified approving legal opinion of Bond Counsel, to like effect and to the effect that the
interest on the Bonds is exempt from Federal income taxation under existing statutes, regula-
tions, rulings and court decisions. The customary closing papers, including a certificate to
the effect that ·no litigation of any nature has been filed or is then pending to restrain the
issuance and delivery of the Bonds, or which would affect the provision made for their payment
or security, or in any manner questioning the validity of said Bonds or the coupons appertain-
ing thereto, will also be furnished. Bond Counsel was not requested to participate, and did not
take part, in the preparation of the Official Statement,. and such firm has not assumed any
responsibility with respect thereto or undertaken independently to verify any of the informa-
tion contained therein, except that, in its capacity as Bond Counsel, such firm has reviewed
the information contained in the cover page .of this Official Statement and under the captions
"Refunding Plan", "Selected Provisions of the Ordinanceu and "Tax Exemption" and such firm is
of the opinion that the information relating to the Bonds and the Ordinance contained in such
portions of the Official Statement in all material respects accurately and fairly reflects the
Provisions thereof. The legal fees to be paid Bond Counsel for services rendered in connection
with the issuance of the Bonds are contingent on the sale and delivery of the Bonds. The legal
opinion will · be printed on the Bonds •. Certain legal matters will be passed upon for the
Underwriters by Messrs. Hutchison Price Boyle & Brooks. ·
AUTHENTICITY OF FINANCIAL INFORMATION
The financial data and other information contained herein have been obtained from the City's
records, audited financial statements and other sources which are believed to be reliable.
There is no guarantee that any of the assumptions or estimates . contained herein will be
realized. All of the sunmaries of the statutes, documents and resolutions contained in this
Official Statement are made subject to all of the provisions of such statutes, documents and
resolutions. These sunmaries do not purport to be complete .statements of such provisions and
reference is made to such documents for further information. Reference is made to original
documents in all respects.
UNDERWRITING
The Underwriters, Rauscher Pierce Refsnes, Inc. and Blyth Eastman Paine Webber Incorporated
have jointly and severally agreed, subject to certain conditions, to purchase the Bonds from
the City, at a discount of $~~-~~ from the initial public offering prices set forth on
the cover page hereof. The Underwriters' obligations are subject to certain conditions prece-
dent, and they wi 11 be ob 1 i gated to purchase a 11 of the Bonds if any Bonds are purchased. The
Bonds may be offered and sold to certain dealers and others at prices lower than such public
offering prices, and such public prices may be changed, from time to time, by the Underwriters.
FINANCIAL ADVISOR
First Southwest Company is employed as Financial Advisor to the City in connection with the
issuance of the Bonds. The Financial Advisor's fee for services rendered with respect to the
sale of the Bonds is contingent upon the issuance and delivery of the Bonds. First Soµthwest
Coml)any is not a member of the underwriting group purchasing the Bonps.
-32 -
CERTIFICATION OF THE OFFICIAL STATEMENT
At the time of payment for and delivery of the Bonds, the Underwriters will be furnished a certificate, executed by proper officers, acting in their official capacity, to the effect that
to the best of their knowledge and belief: (a) the descriptions and statements of or pertain-
ing to the City contained in its Official Statement on the date of such Officia1 ·statement, on the date of s a 1 e of said Bonds and on the date of the de 1 iver y. were and are true and correct in
all material respects; (b) insofar as the City and its affairs, including its financial
affairs, are concerned, such Official Statement did not and does not contain an untrue state-ment of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances under which they
were made, not misleading; (c) insofar as the descriptions and statements, including financial data, of or pertaining to entities, other than the City, and their activities contained in such
Official Statement are concerned, such statements and data have been obtained from sources which the City believes to be reliable and that the City has no reason to believe that they are
untrue in any material respect; and (d) there has been no material adverse change in the
financial condition of the City since the. date of the last audited financial statements of the
City.
This Official Statement was approved, and the execution and delivery of this Official Statement
authorized, by the City on May--• 1983.
ATTEST: Mayor
City Secretary
-33 -
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'
'
APPENDIX A
The information contained in this Appendix has been reproduced
fran the City of Lubbock, Texas Annual Audit Report for the
Fi sea 1 Year Ended September 30, 1982. The information pre-
sented represents only a part of the Annual Audit Report and
does not purport to be a complete statement of the City's
financial .condition. Reference is made to the complete Annual
Audit Report for further information.
[THIS PAGE INTENTIONALLY LEFT BLANK]
'
MASON, NICKELS Q WARNER
r•or•J~[l;,J
CERTIFIED PUBLIC ACCOUNTANTS
SUITE 460 I TOWER OF THE PLAINS 150IO UN1VERSITY AVENUE IP.O. BOX 3670 I LUBBOCK, TEXAS 79452 lceosl 797-325 ..
Honorable Bill McAlister, Mayor
Members of the City Council
City of Lubbock, Texas
We have examined the balance sheet of the Electric Enterprise Fund (Lubbock
Power and Light) of the City of Lubbock, Texas, as of September 30, 1982 and
September 30, 1981, and the related statements of operations and changes in
financial position for the years then ended. Our examination was made in ac-
cordance with generally accepted auditing standards and, accordingly, included
such tests of the accounting records as we considered necessary in the
circumstances.
In our opinion, the financial statements referred to above present fairly the
financial position of the Electric Enterprise _Fund (Lubbock Power and Light) of
the City of Lubbock as of September 30, 1982, and September 30, 1981, and the
results of its operations and changes in financial position for the years then
ended, in conformity with generally accepted accounting principles applied on a
consistent basis.
The Statement of Operating Expenses By Department and Schedule of Fixed Assets
And Depreciation was derived from the accounting records tested by us s a part
of the auditing procedures followed in our examination of the aforementioned
financial statements and in our opinion it is fairly presented in all material
respects in relation to the financial statements taken as a whole; however,
they are not necessary for a fair presentation of the financial position,
results of operations and changes in financial position.
Lubbock, Texas
December 10, 1982
A-1
MEMBER• I AMEFIICAN INSTITUTE OF CERT1F1Eo PUBLIC ACCOUNTANTS I TEXAS soc1ETY oF CERT1F1ec PUBLIC ACCOUNTANTS
CITY OF LUBBOCK, TEXAS
ELECTRIC ENTERPRISE FUND
LUBBOCK~ POWER & LIGHT
COMPARATIVE B~ANCE SHEET
September 30, 1982 and 1981
••-----------------zma2=-------------=•==---==-------=---=====---------------•=m----
Assets 1982 1981
------------------------------------------------------------------------------------Current assets:
Cash and investments
Accounts receivable-less allowance
for doubtful accounts (1982-$328,579
1981-$433,929)
Due from other funds
Interest receivable
Inventory less allowance for obsolete
inventory (1982-$12,526: 1981-$12,526)
Prepaid expenses
Total current assets
Restricted assets:
Revenue bond construction account
Cash and investments
Revenue bond current debt services account
Cash and investments
Revenue bond future debt service account ·
Cash and investments
Total restricted assets
Property, plant, and equipment:
Land
Buildings
Improvements other than buildings
Machinery and equipment
Construction in progress
Less accumul.9:ted depreciation
Net property, plant and equipment
Total assets
A-2
$ 1,981,844
6,046,532
309,317
1,229,675
39,989
9,607,357
5,371,296
536,748
2,753,056
8,661,100
475,485
1,667,191
65,109,949
1,744,186
1,749,087
70,745,898
(27,551,203)
43,194,695
$ 229,693
4,907,045
2,852
228,451
1,692,405
74,836
7,135,282
1,386,593
1,657,565
12,440.472
445,227
1,667,191
57,512,765
1,379,369
5,435,624
66,440,176
( 25 , 713 , 204)
40,726,972
$ 61,463,152 $ 60,302,726
--~=~======= =============
'
CITY OF LUBBOCK, TEXAS ,
ELECTRIC ENTERPRISE FUND
LUBBOCK . POWER & LIGHT COMPARA1IVE BALANCE SHEET
September 30, 1982 and 1981
Liabilities and Fund Equity 1982 1981 . -, _· : . . ' . . ------------------------------------------------------------------------------------Liabilities:
Current liabilities (payable from current assets):
Accounts and vouchers payable
Due to other funds
Other accrued expense~
States sales tax payable
Deferred revenue
Total current liabilities
(p~yable from current assets)
Current liabilities (payable from restricted assets):
Accounts and vouchers payable
Current portion of revenue bonds payable
(includes unamortized premium (1982-$22,249; 1981-
$23, 732)
Accrued revenue hood interest
Total current liabilities (payable from
restricted assets
Long-term liabilities:
Revenue bonds (net of current portion includes
unamortized premium-1982-$155,745; 1981-$177,994)
Advance from other funds
Total long-term liabilities
Total liabilitieR
Fun<l Equity:
Contributed capital
Municipality
Total contributed capital
Retained earnings:
Reserved per revenue bond indentures
Reserved for capital improvement
Unreserved
Total retained earnings
Total fund equity
Total liabilities and fund equity
See accompanying notes to financial statements
A-3
$ 2,962,964
157,128
81,517
3,201,609
$ 2,245,258 ·
10,332 .·
133,020
54,497
8,958
2,452,065
--------------------------
30,000
1,862,249
869,753
2,762,002 --~.;.. _______ ._...,
20,375,744
7,256,635
27,632,379
33,595,990
9,155
1,413,732
509,609
1,932,496
22,237,994
8,206,635
30,444,629
34,829,190 ------------------------
7 • 725,981 7,720,261
---------------------------7,725,981
5,899,098
822,069
lJ,420,014
20, 141 , 181
. .
7,720,261
10,507,975
522,667
6,722,633
17,753,275
--· ----·--· --. -------------27,867,162 25,473,536
$61,463,152 $60,302,726
CITY OF LUBBOCK, TEXAS
ELECTRIC ENTERPRISE FUND
LUBBOCK, POWER & LIGHT
COMPARATIVE STATEMENT OF REVENUES,
EXPENSES, AND CHANGES IN RETAINED EARNINGS
Year Ended September 30, 1982 and 1981
c===c======================= ==.===~=•===== .. ===================== ===== ==~=.======
1982 1981
-------------------------------------------------------------------------------------Operating Revenues-.
charges for services
Operating Expenses:
Persbnal services
Power plant fuel
Purchased power
Supplies
Maintenance
Other charges
Depreciation
Total operating expenses
Operating income
Nonoperating revenues (expenses):
Interest
Disposition of properties
Miscellaneous income
Interest expense
Total nonoperating revenues (expenses)
Transfers in (out):
To debt service fund
To general fund
Total transfers
Net income (loss)
Retained earnings at _beginning of year
Retained earnings at end of year
See accompanying notes to financial statements
A-4
$ 39,890,883 $ 34,002,728
3,454,699
23.,635,233
4,149,909
451,267
442,755
1,198,961
1,952,041
35,284,865
4,606,018
1,579,820
169,225
49,807
(1,909,272)
( 110,420)
(2,107,692)
(2,107,692)
3,059,580
25,084,135
393,860
657,310
1,198,942
1,886, 725
32,280,552
1,722,176
615,724
8,376
66,288
( ·826 ,443)
( 136,055)
( 42,234)
(1,753,134)
(1,795,368) -------· -------------------
2,387,906
17,753,275
( 209,247)
17,962,522
$ 20,141,181 $ 17,753,275
============== =============
CITY OF LUBBOCK, TEXAS
ELECTRIC ENTERPRISE FUND
LUBBOCK, POWER & LIGHT
.COMPARATIVE STATEMENT 'OF CHANGES
IN FINANCIAL POSITION
Year Ended September 30, 1982 and 1981
Sources of working capital:
Operations:
· Net income
Item not requiring working capital-
depreciation
Working capital provided by operations
Decrease in restric~ed assets
· .Increase in contributed capital
Increase long~term liabilities
Increased liabilities payable from
restricted assets
Total sources of working capital
Uses of working capital:
Acquisition of fixed assets
Increase in restricted assets
Decrease in long-term liabilities
Total uses of working capital
Net increase (decrease) in working capital
Elements of net increase (decrease) in net working
capital:
Cash and investments
Receivables (net)
Due from other funds
Inventory of materials and supplies
Prepaid expenses
Accounts payable
Due to other funds
Deferred revenue
Accrued liabilities
Net increase (decrease) in working capital
1982
$ 2,387,906
·1 ;952 ,041
4,339,947
3,779,372
5,720
829,506
8,954,545
4,419,764
2,812,250
7,232,014
$ 1,722,531
$ ~, 752,151
1,220,353
( 2,852)
( 462,730)
( 34,847)
( 744,726)
10,332
8,958
( 24,108)
$1,722,531
1981
$ ( 209,247)
1,886,725
1,677,478
11,286,268
85,061
13,048,807
·3, 961,845
6,698,652
.--
10,660,497
$ 2,388,310
$ 200,934
113,626
{3,232,120)
( 18,569)
{ 43,567)
2,215,802
3,208,796
( 69)
( 56,523)
$ 2;388,310
===~••====•c== =============
See accompanying ·notes to financial .statements
A-5
CITY OF LUBBOCK, TEXAS
ELECTRIC ENTERPRISE FUND
COMPARATIVE STATEMENT OF OPERATING
EXPENSES BY DEPARTMENT
Year Ended September 30, 1982 and 1981
:::a::======nz==========·=•========:z•=====·:z:aaa:z===z:11:sa:::z=:a==-===-=-=============:a===s====·==-===
Administration:
Personal services
Supplies
Maintenance
Other services and ·charges
Electric productioni
Personal services
Supplies
Maintenance
Other charges
Electric distribution:
Personal services
Supplies
Maintenance ·
Other charges
Electric promotion:
Personal services
Supplies
Maintenance
Other charges
Collections:
Personal services
Supplies
Maintenance
Other charges
--Uncollectible accounts
See accompanying notes to financial statements
A-6
$
1982
150,002 ' $
3,989
1,962
45,090
1981
i33,833
3,252 -
1,183
37,216
201;043 175,484
1,636,965
28,003;412
179,523
290,796
:----··---------
1,502,508
25,275,956
433,369
339,966
.Jo, 110,696 . 21, 55r, 799
l, 202; 765
138,406
249,450 .
153,206
1,025, 791
121,100
· 210,804
196,511
1,743,827 1,554,206
185,052
10,554 '
4,122
196,459
144,637
10,199
4;587
187,709
----------½ .·. ----------
396, l87 347,132
' .· ----·-. ----.. ' ---------------
279,915'
80,048
7,700
153,258
360,150
252,811
67,487
7,367
127,325
310,216 ---. -. --. . .. ----·----------
881,071 765,206
. $ 33,332,824 $ 30,393,827
=-=z-------=-= --====-------
> I ...., CITY OF LUBBOCK, · TEXAS ELECTRIC ENTERPRISE FUND SCHEDULE OF FIXED ASSETS AND DEPRECIATION Year Ended September 30, 1982 ., aa=-=-====------===---------------=---------------=------===-s=-===m-====--=-==z====-=--=---=••-===-==-=•-==s-a--=-=•==•••••••=•••• Property and Equipment 09-30-81 Additions Deletions 09-30-82 --------------------------------------------------------------------Land Buildings Improvements other than buildings Machinery and equipment Construction in progress $ 445,228 $ 1,667,191 57,512,765 1,379,369 5,435,624 ----------30,289 $ 32 $ 7,810,297 213,113 444,606 79,789 4,043,538 7,730,075 -------------475,485 $ 1,667,191 65,109,949 1,744,186 1,749,087 -------Allowance for Depreciation ------------------------------09-30-81 Additions 5,678 $ 850,829 24,009,483 847,214 --298 33,273 1,747,313 171,156. ------------ ----------Deletions $ 35,644 78,397 ------------$ 09-30-82 Book Value 5,976 $ 884,102 25,721,152 939,973 ------------469,509 783,089 39,388,797 804,213 1,749,087 Total $66,440,177 $12,328,730 $8,023,009 $70,745,898 $25,713,204 $1,952,040 $114,041 $27,551,203 $43,194,695 =••==-==in::sa= a=iaaaaaaa= =••===-••= aaaaaaaaaa aaaaaaaa•z --=-•=-=-•=--aa::r:saa:saa:2 =----=-----•==-••••aaa
CITY or LUBBOCK, TEXAS
ELECTRIC ENTERPRISE FUND
Notes to Financial Statements
September JO, 1982
(1) Summary of Significant Accounting Policies
The accounting policies of the City of Lubbock, Texas conform to gen-
erally accepted accounting principles as applicable to governments. The
following is a summary of the more significant policies:
A. Fund Accounting
The accounts of the City are organized on the basis of funds and
account groups, each of which is considered a ·separate accounting
entity. The operations of each fund are accounted for with a
separate set of self balancing accounts that comprise its assets,
liabilities, fund equity, revenues, and expenditures, or expenses,
as appropriate. · ·
Enterprise Funds are used to account for operations: (a) that are
financed and operated in a manner similar to private business
enterprises .where the intent of the governing body is that the cost
(expense including depreciation) of providing goods or services to
the general public on a continuing basis be financed or recovered
primarily through .user charges; or (b) where the governing body has
decided that periodic determination of revenues earned, expenses
incurred, and/or net income is appropriate for capital maintenance,
public policiy, management control, accountability, or other purposes.·
B. Fixed Assets and Long-Term Liabilities
The accounting and reporting treatment applied to the fixed assets
end long-term liabilities associated with a fund are determined by
its measurement focus. The Electric Enterprise Fund is accounted
for on a cost of services or "capital maintenance" measurement
focus. This means that all assets and all liabilities (whether
current or noncurrent) associatedwith their activities are included
·on their balance sheet. The reported fund equity (net total assets)
is segregated into contributed capital and retained earnings
components. Operating statements present increases (revenues) and
decreases (expenses) in net total assets.
A-8
c.
Depreciation of all exhaustible fixed assets used by the Electric
Enterprise fund is charged es an expense against its operations.
Accumulated depreciation is reported on proprietary fund balance
sheets. Depreciation has been provided over the estimated useful
lives using the straight line method. The estimated useful lives
ere as follows:
Land Betterments 5 -100 years
Buildings 5 50 years
Improvements 5 -100 years
Equipment 2 -100 years
Basis of Accounting
Basis of accounting refers to when revenues and expenditures or
expenses are recognized in the accounts and reported in the fi-
nancial statements.
The Electric Enterprise furid is accounted for using the accrual
basis of accounting. Revenues ere recognized when they ere earned,
end expenses are recognized when they are incurred. Unbilled
utility service receivables are recorded at year end.
D. Cash and Investments
Cash balances of most City funds are pooled and invested. Interest
earned from investments purchased with pooled cash is allocated to
each of the funds based on the fund's average equity balance.
Investments ere carried at cost or amortized cost. · The City
contract with the Depository Bank requires that en average monthly
balance be maintained in "demand" accounts to compensate for
services· rendered. This compensating balance is based on a formula
which assumes bank earnings et the average 30 day Treasury Bill
Yield rate to allow $150,000 annual earnings on these uninvested
funds.
E. Inventories
Enterprise funds -Inventories of materials and supplies are stated
et cost determined on a moving average. As inventory is used, its
cost is considered an expense.
A-9
F. Reserves and Designations
Portions of fund equity are:· (1) legally restricted (reserved) for
future use, or (2) not available for future appropriation or
expenditure.
G. Accumulated Unpaid Vacation, Sick Pay, and other Employee Benefit
Amounts
The City does not accrue accumulated vacation or sick leave for
enterprise funds, but rather expenses these costs as paid. Ac-
cumulated amounts, as of September 30, 1982, are immaterial and do
not exceed a normal year's accumulation.
H. Comparative Data
Comparative total data for the prior year have been presented in the
accompanying financial statements in order to provide an under-
standing of changes in the City's financial position and opera-
tions.
(2) Fixed Assets
Electric Enterprise Fund property, plant, & equipment at 9/30/82
follows:
Land
Building
Improvements other
than building
Machinery & Equipment
Construction in progress
Total
Less accumulated
depreciation
Net Fixed Assets
(3) Changes in Long-Term Debt
475,485
1,667,191
65,109,949
1,744,186
1,749,087
70,745,898
27,551,203
43,194,695
Bonds payable at September 30, 1982 are comprised of the following (in
thousands of dollars):
A-10
Electric Revenue Bonds
Balance ·
final Outstanding
Maturity Amount September 30,
Interest Rate Issue Date Date Issued 1982
2.75 to 4.75 4-15-64 10-15-83 $ 4,500 $ 450
3.00 to 5.00 3-15-65 4-15-85 3,000 450
4.50 to 6.50 7-15-73 4-15-93 6,000 3,300
4.50 to 7.00 3-15-75 4-15-95 6,400 4,160
5.00 to 7.50 9-15-75 4-15-96 2,000 1,400
6.25* 4-15-76 4-15-97 4,400 3,300
12.9837 8-27-81 4-15-02 9,000 9,000
$351300 $22.060
* These bonds were issued at a premium to yield an effective rate of
5.575783%.
(4) Retirement Commitments
The City participates in U.S. Social Security coverage for all its
employees, excluding firemen. Other contributory retirement plans for
employees have also been approved by the City, but the assets of the
plans are not the property of the City, and therefore are not included in
the accompanying financial statements.
All eligible permanent employees of the City, other than firemen, are
covered by a statewide retirement plan administered by the Board of
Trustees of the Texas Municipal Retirement System (TMRS). The City's
contribution to the TMRS is determined by actuaries as a percentage of
participants' salaries in accordance with the Texas Municipal Retirement
System Act.
The City has adopted "updated service credit", increasing retirement
benefits effective January 1, 1983. Unfunded prior service liability is
being amortized over a period of 25 years.
Electric fund contributions to the retirement fund, charged to operations
during the fiscal year were as follows:
Social Security
TMRS
$ 270,699
264,255
A-11
I
(5) Litigation
The City is a defendant in litigation seeking alleged damages plus
potential interest and costs of $850,000. This case (a consolidation of
several cases) involving a building fire was set for trial on December 3,
1982. The trial has been postponed and, becaus~ of the postponement, the
City Attorney is of the opinion that there is now no chance for this case
to effect the current fiscal year. The City Attorney is also of the
opinion that the City's defenses are unusually strong in this case and
the City will prevail.
A-12
'
APPENDIX B
FORM OF BOND COUNSEL'S OPINION
[THIS PAGE INTENTIONALLY LEFT BLANK]
'
FORM OF BOND COUNSEL'S OPINION
CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND
POWER SYSTEM REFUNDING REVENUE BONDS, SERIES 1983
DATED MAY 15, 1983
IN REGARD to the authorization and issuance of the above described Bonds
(the 11 Bonds 11 ) by the City of Lubbock, Lubbock County, Texas, we have examined
into the legality and validity of the Bonds, which are numbered consecutively
from One (1) upward, each in the denomination of $5,000, mature on April 15 in
each of the years 1984 through 2002, unless redeemed prior to maturity in ac-
cordance with the terms and conditions stated on the fac~ of the Bonds, and bear
interest from date until paid, or the redemption thereof, at the following rates
per annum:
such interest being evidenced by coupons and payable on October 15, 1983, and
semiannually thereafter on April 15 and October 15 in each year.
WE HAVE SERVED AS BOND COUNSEL TO THE CITY solely for the purpose of
rendering an opinion as to the authorization, issuance, delivery, legality and
validity of the Bonds under the Constitution and laws of the State of Texas, the
rel ease and discharge of the lien on and pledge of the revenues securing the
payment of the City's bonds being refunded by the Bonds, the exemption of inter-
est on the Bonds from federal income taxes and none other. We have not been
requested to investigate or verjfy, and have not independently investigated or
verified, any records, data or other material relating to the financial condition
or capabilities of the City or the City's Electric Light and Power System and
have not assumed any responsibility with respect thereto.
WE HAVE EXAMINED applicable and pertinent provisions of the Constitution
and laws of the State of Texas, and the 11 Speci al Escrow Fund Agreement" (the
"Escrow Agreement") between the City and the Texas Co111Tierce Bank, National Asso-
ciation, Lubbock, Texas, (the "Escrow Agent"), the report of Ernst & Whinney,
Certified Public Accountants, a transcript of the certified proceedings of the
City relating to the authorization and issuance of the Bonds, including the
ordinance authorizing the issuance of the Bonds (the "Ordinance"), customary
certifications and opinions of officials of the City and other showings pertinent
to the authorization and issuance of the Bonds.
WE ALSO HAVE EXAMINED executed Bond Number One of said series and find same
in due form of law and properly executed.
B-1
BASED ON OUR EXAMINATIONS, IT IS OUR OPINION that the Escrow Agreement has
been duly authorized, executed and delivered and constitutes a binding and en-
forceable agreement between the parties thereto in accordance with its terms and
that the outstanding and unpaid "City of Lubbock, Texas, Electric Light and Power
System Revenue Bonds, Series 1981 11 being refunded, discharged, paid and retired
with the proceeds of the Bonds, and the terms of the ordinance authorizing their
issuance, have now been appropriately defeased and are regarded as being out-
standing only for the purpose of receiving payment out of the funds provided
therefor now held in trust for that purpose by the Escrow Agent, pursuant to the
terms of the Escrow Agreement and in accordance with the provisions of Article
717k, V .A.T .C.S. In rendering such opinion, we have relied upon the verification
of Ernst & Whinney as to the sufficiency of cash .and investments deposited with
the Escrow Agent for purposes of paying the obligations being refunded with the
. proceeds of the Bonds and the interest thereon.
IT IS OUR FURTHER OPINION that the Bonds were duly authorized and issued in
compliance with the Constitution and laws of the State of Texas now in force and
constitute valid and legally binding special obligations of the City of Lubbock,
Texas, in accordance with the terms and conditions thereof and, together with the
outstanding Previously Issued Bonds {identified and defined in the Ordinance),
payable solely from and equally secured by a first lien on and pledge of the Net
Revenues {as defined in the Ordinance) of the City's Electric Light and Power
System. The City has reserved the right, subject to satisfying the terms and
conditions prescribed therefor in the Ordinance, to issue additional parity
obligations payable from the same source and equally secured in the same manner
as the Bonds.
IT IS .ALSO OUR OPINION that interest on the Bonds is exempt from federal ·
income taxes under existing law. In considering the matter of whether the Bonds
are "arbitrage bonds" under Section 1O3{c) of the Internal Revenue Code of 1954,
as amended, we have examined certain certifications and other showings regarding
the . use and investment of the proceeds of the Bonds and a report of Ernst &
Whinney, Certified Public Accountants, wherein there are presented yield calcu-
lations and methods employed in such computations. In rendering our opinion with
regard to the tax exempt status of the Bonds, we have relied upon such certifica-
tions and the report of Ernst & Whinney for the mathematical accuracy of the
yield calculations referred to above.
B-2
APPENDIX C
INFORMATION CONCERNING GENERAL OBLIGATION
BONDS, VALUATIONS, TAXES AND PENSION FUNDS
[THIS PAGE INTENTIONALLY LEFT BLANK]
'
VALUATION AND DEBT INFORMATION
1982 Market (Appraised) Valuation $3,345,160,027
Less Reductions and Exemptions at Market (Appraised) Value(l):
Agricultural/Open-Space Reductions
Over 65
Disabled Veterans
Disabled
1982 Taxable Assessed Valuation (100% of 1982 Net Appraised Valuation) (2)
$10,090,967
104,433,990
2,183,380
4,181,680 120,890,017
$3,224,270,010
City Funded Debt Payable From Ad Valorem Taxes
(as of 2-l-83)(see Notes 3 and 4):
General Purpose Bonds (Including $13,575,000 Bonds sold 4-28-83)
Waterworks Bonds (Includes $5,200,000 Bonds sold 4-28-83)
Sewer System Bonds
Total Funded Debt Payable from Ad Valorem Taxes
Less Self-Supporting Debt(3):
Waterworks ·Bonds
Sewer System Bonds
Total General Purpose General Obligation Debt
$31,589,090
3,780,803
$35,369,893
Interest and Sinking Fund, All General Obligation Bonds (as of 2-1-83)
$48,705,107
31,589,090
3,780,803
$84,075,000
$48,705,107
$ 3,079,439
Ratio Total Funded Debt to Taxable Assessed Valuation--------------------------------2.61%
Ratio Total General Purpose General Obligation Debt to Taxable Assessed Valuation----1.51%
1983 Estimated Population -181,500*
Per Capita 1982 Taxable Assessed Valuation -$17,764.57
Per Capita Total General Purpose General Obligation Debt -$268.35
Area -91. 5 Square Mil es
* Source: City of Lubbock, Texas.
Note 1: Agricultural/Open-space reductions granted to owners of productive lands under Sec~
tions 1-d and l-d-1, Article VIII of the State Constitution.
The exemptions apply to either real or personal property assessments to a maximum of: (1)
$16,700 market value of a resi.dence homestead for those 65 years of age or older; (2) $3,000
Assessed Valuation for disabled veterans; and (3) $10,000 market value of a residence homestead
for the disabled. The above home stead exemptions must be declared between January 1 and April
30 of the tax year, but, since delays in filing are permissable, some additional exemptions are
anticipated.
Note 2: Assessed values of the capital shares of 10 banks (1982 Taxable Assessed Valuation -
$93,942,590), which are under litigation, and certain other litigated 1982 Assessed Values
($3,223,290) are included in the 1982 Taxable Assessed Valuation.
Note 3: The City of Lubbock transfers to the General Fund each fiscal year:
(1) from Water Revenue Fund surplus, an amount at least equivalent to debt
service requirements on Waterworks System General Obligation Bonds; and
(2) from Sewer Revenue Fund surplus, an amount at least equivalent to debt
service requirements on Sewer System General Obligation Bonds.
Since both Waterworks and Sewer General Obligation Bonds are self-supporting, due to these
transfers, the City's General Purpose General Obligation Debt has been calculated as shown.
C-1
Note 4: The above statement of indebtedness does not include outstanding $20,220,000 Electric
Light and Power System Revenue Bonds, or the $10,680,000 Electric light and Power System
Refunding Revenue Bonds being issued at this time, as these bonds are payable solely from the
net revenues derived from the System. The statement also does not include outstanding
$2,140,000 Airport Revenue Bonds, as these bonds are payable solely from gross revenues derived
from the City of Lubbock Airport. In addition, $2,600,000 General Obligations Bonds, due
February 1, 1983, have been deducted from outstanding General Obligation Debt. The Waterworks
System and the Sewer System are unencumbered with Revenue Bond Debt.
OTHER LIABILITIES
(1) On September 1, 1976, the City purchased the land and buildings, owned by Auto Realty
Company, Inc., located inmediately north of City Hall. For many years previously, this
property was the site of a Ford Motor Company dealership. Included in the purchase were 81,250
square feet of land and six buildings of various sizes totaling 52,614 square feet. A part of the property is being used as a City Hall Annex and the balance is being converted to a Transit
System maintenance and storage facility.
Total purchase price was $389,820.00. Prior to purchase, the City obtained various appraisals
of the property which varied from a high of $1,432,095 to a low of $362,860. Of the $389,820 purchase price, the City paid $40,000 in cash at the time of closing and executed its note for
$349,820 for the balance. This note is classified as part of the City's General Long-Term Debt
and is payable from the General Fund. The outstanding principal balance on September 30, 1982
was $238,852 which matures in 9 annual installments, September 1, 1983 through September l,
1990, with interest calculated at 7%.
Note Amortization Schedule
Fiscal Year Ending Outstanding
·9-30 Principal Interest Total Balance
79S2 $238,852.00
1983 $ 23,280.40 $16,719.60 $40,000.00 215,571.60
1984 24,910.00 15,090.00 40,000.00 190,661.60
1985 26,653.60 13,346.40 40,000.00 164,008.00
1986 28,519.60 11,480.40 40,000.00 135,488.40
1987 30,515.60 9,484.40 40,000.00 104,972.80
1988 32,652.00 7,348.00 40,000.00 72,320.80
1989 34,937.60 5,062.40 40,000.00 37,383.20
1990 371383.20 21616.80 40.000.00 -0-
$238,852.00 $ 81,148.00 $320,000.00
In order to .provide for a majority of each annual installment on the note, the City Council
directed the investment of $399,324.00 of General Fund surplus cash in $384,000.00 par value of
U. S. Treasury Bonds, the interest earnings on these bonds to be applied to the annual
$40,000.00 installment on the note. Annual interest earnings on the bonds total $30,990.00,
leaving a balance of $9,010.00 to be budgeted from the General Fund each year.
(2) Leases Payable ••• On September 30, 1982, the City had an outstanding balance of $159,857
on two lease-purchase contracts covering the acqulsition of computers. The balance of one
lease, $126,775, was paid off on December 15, 1982. The second lease, payable in 16 monthly
installments of $1,946 and 1 final monthly installment of $1,940, from October, 1982 through
February, 1984, will have a balance of $9,725 on September 30, 1983.
(3) Acquisition and Renovation of Sears Building ••• On October 15, 1982, the City of Lubbock
entered into an agreement with the American State Bank, Lubbock ("American"), .to purchase the
96,810 square foot "Sears" building located in downtown Lubbock. Originally constructed by
Sears, Roebuck & Co., the building and site were sold to the adjacent American State Bank
following Sears construction of new facilities in South Plains Mall, Lubbock, several years
ago. The City also acquired 3 additional sites near the Sears site for parking expansion in the
future.
C-2
'
. . The City is in the process of renovating and remodeling approximately 55,000 square feet of the
Sears building to house administrative and City Council functions. The Sears site will provide
parking space for 205 vehicles; later expansion will expand parking capability to 450 vehicles.
Estimated cost of the entire completed project_is $3,250,000:
Acquisition of Sears building/site
Purchase of additional property Renovation of 55,000 square feet Other cost ·
· Total Estimated Cost
$ 751,000
302,925 1,800,000
396,075
$3,250,000
Shown below is the "Sears Building Finance Schedule", which was prepared by the City of
Lubbock. Salient elements of the City's agreement with "American" and the "Finance Schedule"
includes:
(1) Advance Balance. Acquisition and remodeling cost of the Sears property is being
financed by advances from "American". Net advance balances are shown on a quarterly basis;
actual balances to 1-15-83; projected thereafter.
(2) Total Payment. 1-15-83 actual and future quarterly payments thereafter to
"AmericanN including interest quarterly at an annual rate of 12 3/4%. Final payment, 1-15-94,
$2,917,818.
(3) Additional Site Ac.9uisition. The_ City acquired 3 additional, adjacent sites for
future parking expansion, paying $159,000 in cash and assuming payments on 3 notes. Payment of
the $159,000 and combined payments on the _3 notes are demonstrated.
(4) Escrow Deposits. The City has · deposited and will continue to deposit funds for Revenue Sharing into an "Escrow Account" at "American" from which payments wi 11 be made to
"American" as referred to in (3), above, and on the notes referred to in (4) above. Deposits
will total $3,123,000 by 1-15-84; except for 2, subsequent, minor depos.its, the "Escrow Ac.,.
count" is essentially funded by 1-15-84.
The City anticipates that Revenue Sharing entitlements for fiscal years ending 9-30-83 and 9-30-84 will be fully adequate for deposits required through 1-15-84, and plans to make the 2,
minor future deposits from Revenue Sharing entitlements. Anticipated Revenue Sharing en-
titlements (receipts) for fiscal year ending 9-30-83 are $2,880,918 plus available earned and
unallocated interest of $454,762, a total of $3,335,680. If Revenue Sharing Funds are not
available for any of these deposits, they will be made from General or other funds legally
available to the City.
(5) Escrow Interest Earnings. "American" will pay the City interest quarterly on the
balance in the "Escrow Account" at the annual rate of 12 l/2%.
(6) Escrow Balance. "Escrow Account" actual balances on 10-15-83 and 1-15-83; projected quarterly balances thereafter. The Escrow Balance at the end of any quarter will always exceed the Advance Balance.
(7) In the opinion of the City Attorney the financial arrangement with "American" de-scribed above does not constitute a legal debt of the City since funds will be pledged at all
times and placed in the "Escrow Account" in amounts that, with interest earned, wi 11 exceed the
outstanding Advance Balance throughout the life of the agreement.
C-3
• Sears Building
Finance Schedule
Additional Escrow
Advance Total Site Escrow Interest Escrow Year Month Balance Payment Acquisition Deposits Earnings Balance
1982-83
10-15 $ 751,000 $ 159,000 $1,073,000 $ 914,000
1-15 751,000 $ 23,938 5,331 $ 28,563 913,294
4-15 . 1,251,000 23,938 5,331 475,000 28,540 1,387,565
7-15 1,751,000 39,876 5,331 475,000 43,361 1,860,719
1983-84
10-15 2,251,000 55,813 5,331 525,000 58,147 . 2,382,723
. 1-15 2,824,001 93,750 5,331 575,000 74,460 2,933,102
4-15 2,820,266 93,750 5,331 91,659 2,925,680
7-15 2,816,412 93,750 5,331 91,428 2,918,027
1984-85
10-15 2,812,435 93,750 5,331 91,188 2,910,134
1-15 2,903,331 93,750 5,331 125,000 90,942 3,026,995
4-15 2,902,125 93,750 5,331 94,594 3,022,507
7-15 2,900,880 93,750 5,331 .· 94,453 3,017,880
1985-86
10-15 2,899,596 93,750 5,331 94,309 3,013,108
1-15 2,898,270 93,750 5,331 94,160 3,008,186
4-15 2,896,903 93,750 5,331 94,006 3,003,111
7-15 2,895,491 93,750 5,331 93,847 2,997,877
1986-87
10-15 2,894,035 93,750 5,331 93,684 2,992,480
1-15 2,892,532 93,750 5,331 93,515 2,986,914
4-15 2,890,982 93,750 5,331 93,341 . 2,981;174
7-,15 2,889,382 93,750 5,331 93,162 2,975,255
1987-88
10-15 2,887,731 93,750 5,331 92,977 2,969,150
1-15 2,886,027 93,750 5,331 92,786 2,962,855
4-15 . 2,884,270 93,750 5,331 92,589 2,956,363
7-15 2,882,456 93,750 5,331 92,386 2,949,669
1988-89
10-15 2,880,584 93,750 5,331 · 40,000 92,177 2,982,765
1-15 2,878,653 93,750 5,331 93,211 2,976,895
4-15 2,876,660 93,750 5,331 93,028 2,970,842
7-15 2,874,603 93,750 5,331 92,839 2,964,600
1989-90
10-15 2,872,481 93,750 5,331 92,644 2,958,163
1-15 2,870,291 93,750 5,331 92,443 2,951,525
4-15 2,868,032 93,750 5,331 92,235 2,944,679
7-15 2,865,700 93,750 5,331 92,021 2,937,619
1990-91
10-15 2,863,295 93,750 5,331 91,801 2,930,339
1-15 2,860,812 93,750 5,331 91,573 2,922,831
4-15 2,858,251 93,750 5,331 91,338 2,915,088
7-15 2,855,607 93,750 5,331 91,097 2,907,104
1991-92
10-15 2,852,880 93,750 5,331 90,847 2,898,870
1-15 2,850,065 93,750 5,331 90,590 2,890,378
4-15 2,847,161 93,750 5,331 90,324 2,881,622
7-15 2,844,164 93,750 5,331 90,051 2,872,591
1992-93
10..;15 2,841,072 93,750 4,637 89,768 2,863,973
1-15 2,837,881 93,750 670 89,499 2,859,052
4-15 2,834,589 93,750 670 89,345 2,853,977
7-15 2,831,191 93,750 670 89,187 2,848,744
1993-94
10-15 2,827,686 93,750 670 89,023 2,843,347
1-15 2,827,686 2,917,818 670 88,855 13,714
4-15
7-15
$6,811,383 $ 374,896 $3,288,000 $3,911,993
C-4
FUNDED DEBT LIMITATION
There is no direct debt limitation in the City Charter or under State Law. The City operates
under a Home Rule Charter that limits the maximum tax rate, for all City purposes, to $2.50 per
$100 Assessed Valuation. Administratively, the Attorney General of the State of Texas will
permit allocation of $1.50 of the $2.50 maximum tax rate for general obligation debt service.
See "Tax Adequacy".
Fiscal Period
Ending
9-30 1972-73
1973-74
1974:.75
1975-76
1976-77
1977-78
1978-79
1979-80
1980-81
1981-82
1982-83
VALUATION AND FUNDED DEBT HISTORY
Taxable
Assessed
Yaluation(l~ S 659,742,5 3(2) 716,225,294(2)
797,387,868(2)
900,079,412~2) 997,553,829 2
1,097,536,312 2~
1,290,998,036(2)
1,397,872,411(2)
1,516,565,090(2)
2,682,330,673(2)
3,224,270,010
Basis
of
Assessment 60%
60%
60%
60%
60%
60%
60%
60%
60%
100%
100%
Total Funded
Debt Outstanding
Year End $47,266,000
53,440,000
50,546,000
47,763,000
43,682,000 42,107,000 47,086,000
49,301,000
61,710,000
67,900,000
75,725,000(3)
Ratio
Total Funded
. Debt to Taxable
Assessed Valuation 7.16%
7.46%
6.34%
5.31%
4.38%
3.84%
3.65%
3.53%
.4.07%
2.53%
2.35%
(1) For all years Taxable Assessed Valuations are net of any exemptions. The City's Tax
Assessor-Collector maintained an on-going reappraisal of Real Property in the City during the
period 1972-73 through 1981-82, reappraising approximately 1/4 of the City each year. The
Lubbock County Appraisal District reappraised all property in the City for 1982-83.
(2) Taxable Assessed Valuations for Fiscal Periods 1972-73 through 1981-82 h.ave been adjusted
for supplements and corrections to the tax rolls made subsequent to certification of the rolls.
(3) Anticipated.
TAXABLE ASSESSED VALUATIONS BY CATEGORY
Property Real Proeerti (ll Personal Proeerti
Assessment (2)
As% of Taxable Taxable Taxable
Appraised Assessed % of Assessed % of Assessed
Year Value Valuation Total Valuation Total Valuation
Im" 60% $ 495,614,356 75':IlJ $164,128,167 ~ $ 659,742,523
1973 60% 524,133,396 73.18% 192,091,898 26.82% 716,225,294
1974 60% 579,454,818 72.67% 217,933,050 27.33% 797,387,868
1975 60% 649,869,048 72.20% 250,210,364 27.80% 900,079,412
1976 60% 709,585,566 71.13% 287,968,263 28.87% 997,553,829
1977 60% 769,976,300 70.16% 327,560,012 29.84% 1,097,536,312
1978 60% 932,343,503 72.22% 358,654,533 27.78% 1,290,998,036
1979 60% 1,098,254,972 78.57% . 299,617 ,439(3) 21.43% 1,397,872,411
1980 60% 1,187,443,564 78.30% 329,121,526 21.70% 1,516,565,090
1981 100% 2,094,621,612 78.09% 587,709,061 21.91% 2,682,330,673
1982 100% 2,440,381,790 75.69% 783,888,220 24.31% 3,224~270,010
(1) The City's Tax Assessor-Collector maintained an on-going reappraisal program of real
property during the period 1972-1981, reappraising approximately 1/4 of real property in the
City each year. The Lubbock County Appraisal District reappraised all property in the City for
1982.
C-5
(2) Taxable Assessed Valuations for 1974-1982 are net after the following exemptions and
reductions (in terms of Assessed Valuation):
Year !974
1975
1976
1977
1978
1979
1980
1981
1982
Over 65
Homestead
Exemptions
S 11,395,000
13,323,150
11,888,760
14,159,830
34,991,600"'
49,793,340"'
52,926,900"'
99,248,070"'
104,433,990"'
"' As of 10-1 each year.
Disabled
Veteran
Exem~tions Not Ef ective
Not Effective
$ 1,307,240
1,646,220
1,549,890"'
1,928,450"'
2,147,280"'
2,072,270"'
2,183,380"'
Disabled
Exemptions
Not Effective
Not Effective
Not Effective
Not Effective Not Effective
Not Effective
Not Effective
$ 4,720,090"'
4,181,680"'
Agricultural/ Open-Space
Land
Reductions
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
$ 10,090,967
(3) Personal automobiles became exempt from ad valorem taxes in 1979.
ESTIMATED TAXABLE ASSESSED VALUATIONS (1)
Fiscal
Period
1983-84
1984-85
Estimated
Taxable
Assessed
Valuation
$3,500,000,000
3,850,000,000
(1) All estimates are net after estimated exemptions at 100% of net appraised value.
Source: Lubbock County Appraisal District.
AUTHORIZED GENERAL OBLIGATION BONDS·
Amount Amount
Date Amount Heretofore Sold Unissued
Purpose Authorized Authorized Issued 4-28-83 Balance
Waterworks System 5-21-77 $16,775,000 Sll,625,000 $ 400,000 $4,750,000 Waterworks System 8--9-80 21,000,000 16,200,000 4,800,000 -0-Waterworks.System 11-21-81 5,226,000 -0--0-5,226,000
Sewer System 5-21-77 3,303,000 2,030,000 -0-1,273,000
Sewer System 11-21-81 7,892,000 . 1,090,000 -0-6,802,000
Street Improvements 5-21-77 4,782,000 3,693,000 -0-1,089,000
Street Improvements 11-21-81 9,495,000 3,280,000 2,025,000 4,190,000
Storm Sewer and Drainage 5-21-77 473,000 100,000 -0-373,000
Fire Station (for adjacent
areas, .when annexed) 5-21-77 310,000 -0--0;.. 310,000 Airport 11-21.:81 12,854,000 812,000 11,550,000 492,000
11-21-81 -,0-Fire Department 8771000
$8219871000
2501000
$3910801000 $1817751000
6271000
$2511321000
ESTIMATED GENERAL OBLIGATION BOND PROGRAM
Waterworks System Sewer System
Street Improvements
Storm Sewer and Drainage
Fire Station (for adjacent areas, when annexed)
Airport
Anticipateo Issuance
1984
,$ 9,976,000
5,000,000
2,279,000
373,000
937,000
4921000
$1910571000
C-6
1985
$ -0-
3,075,000
3,000,000
-0-
-0-·-o-
$61075.000
Total
$ 9,976,000
8,075,000
5,279,000
373,000
937,000
4921000
$251132,000
\
AUTHORIZED BUT UNISSUED GENERAL OBLIGATION BONDS OF OVERLAPPING SUBDIVISIONS
The Lubbock Independent School District has $100,000 authorized but unissued School Building
Unlimited Tax Bonds; these bonds were authorized in 1959 for stadium purposes. The District
does not anticipate ever issuing these bonds.
Lubbock County has $500,000 unissued Unlimited Tax Road Bonds, authorized in 1961, but has no
plans to issue these bonds.
ESTIMATED OVERLAPPING FUNDED DEBT PAYABLE FROM AD VALOREM TAXES .· (As of 2-l-83)
Taxing Jurisdiction city of Lubbock Lubbock Independent School District
Lubbock County
Lubbock County Hospital District
Lubbock County Water Control and
Improvement District No. 1
Lubbock-Cooper Independent School District
Frenship Independent School District
Roosevelt Independent School District Idalou Independent School District
TOTAL OVERLAPPING FUNDED DEBT
Total
Funded Debt ili $48,705,Io? 2 14,865,000
-0-
-0-
-0-
1,191,000
3,626,441 453,000
1,213,000
Estimated
%
Ap~licable 00.00%
98.99%
81.29% 81.29%
81.29%
12.65% 43.56%
17.29% 5.24% ·
Overlapping
Funded Debt $48,705,107
14,714,864
-0-
-0-
;.Q.
150,662 1,579,678
78,324
63.561
$65,292,196
Ratio Overlapping Funded Debt to Taxable Assessed Valuation __________ ..; _______________ 2.03%
Per Capita Overlapping Funded Debt -$359.74
. (1) In each case, 2-1-83 principal, if any, has been deducted. (2) General Purpose General Obligation Debt.
Tax
Year
1972-73
1973-74
1974-75
1975-76
1976-77
1977-78
1978-79
1979-80
1980-81
1981-82
1982-83
Tax
Rate n:-g
1.36
1.36
1.36
1.41
1.41
1.12
1.12 1.10
0.66
0.61
General
Fund $0.3600
0.4600
0.5400
0.7000
0.7500
0.8600
0.7500
0.6800 0.6800
0.3225
0.2791
TAX DATA (Year Ending 9-30)
Distribution .. (1)
(1) % Current Board of City Interest and
DeveloMent Sinkin§ Fund so. $0.8 00 Tax Levi, Collections $ 8,510,~8 93.72%
0.05 0.8500 9,740,664 93.18%
0.05 0.7700 10,844,475 93.16%
0.05 0.6100 12,241,080 93.28% 0.05 0.6100 14,065,509 92.95%
0.05 0.5000 15,475,262 93.59%
0.05 0.3200 14,459,178 92.71% 0.05 0.3900 15,656,171 94.48%
0.05 0.3700 16,682,216 93;80%
0.05 0.2875 17,703,382 95.55%
0.05 0.2809 19,668,047(2)·85.88%(2)
% Total
Collections 96.41i
96.39%
97.26%
97.15%
95.67%
96.17% 95.37%
98.67%
98.46%
98.97%
86.90%(2)
(1) "Tax Levy" and "Percent Current Collections" for Tax Years 1972-73 through 1981-82 have
been adjusted to reflect final corrections and supplements to the tax rolls as audited at the
end of each fiscal year.
(2) As explained in Note 2, "Valuation and Debt Information", page 6, assessed values of 10
banks ($93,942,590) and other assessed values ($3,223,290) that are in litigation are included
in the 1982 Taxable Assessed Valuation. As a result, the 1982-83 Tax Levy ($19,668,047)
includes a tax levy of $592,712 on these values. In previous years, ;litigated values were not
included in the Taxable Assessed Valuation and the tax levy resulting from these values was not
included in that year's tax levy. If the assumption is made that the $592,712 litigated tax
levy would have been collected by 2-28-83 except for the litigation, then the adjusted per-
centages of collections as of·2-28-83 are:
% Current Collections 88.89%
C-7
% Total
Collections 89.91%
\.
''. ' ·' Property within the City is assessed as of January 1 of each year; taxes become due October 1 of
the same year, and become delinquent on January 31 of the following year. .Split payments are
not permitted. Discounts are not allowed.
Penalty and interest charges for late payment are:
Month
Paid Penaltl Interest Total
February 6% 1% .~
·March 7% 2% 9%
April 8% 3% 11%
May 9% 4% 13%
June 10% 5% 15%
July 12% 6% 18%
After July penalty remains at 12%; interest increases 1% each month.
TAX RATE LIMITATIONS
All taxable property within the City is subject to the assessment, levy and collection by the
City of a continuing, direct annual ad valorem tax sufficient to provide for the payment of
principal of and interest on all types of tax obligations of the City within the limits
prescribed by law .. Article XI, Section 5, of the Texas Constitution is applicable to the City
of Lubbock, and limits its maximum ad valorem tax rate to $2.50 per $100 assessed valuation (for
all city purposes). The City operates under a Home Rule Charter which adopts the Constitu-
tional provisions. ·
PETITIONS AFFECTING THE TAX RATE, ASSESSED VALUATION AND TAX LEVY
(Election January 15, 1983)
On July 12, 1979, three petitions calling for an election to amend the City's Home Rule Charter
in relation to ad valorem taxes were filed with the City Council. These petitions, separately,
asked for the following amendments: (1) limitation of the City's.maximum tax rate to $1.12 per
$100 Assessed Valuation; (2) limitation of the ratio at which property can be assessed for ad
valorem taxes to 60% of fair market value; and (3) that, "The annual ad valorem taxes levied by
the governing authority of the City government shall not be increased on the basis of an
increase in the rate of evaluation of taxable property now on the assessed valuation of
property subject to tax, from the preceding tax year, without first securing approval of said
increase at an election submitting said proposed increase to the voters of the City of Lubbock.
Said increase, if any, requiring a majority vote for its approval."*
* Text of the 3rd petition quoted verbatim.
. .
On July 26, 1979, the City Attorney reported to the City Council that, in his op1n1on, the
provisions of the petitions, if incorporated into the City Charter, would contravene provisions
of the Texas Constitution (the Tax Relief Amendment) and general laws recently enacted by the
Texas Legislature and recoornended that no charter amendment election be called at that time.
The City Council then authorized the City Attorney to file a: declaratory judgment action in the
District Court of Lubbock County to determine whether the Council, under such circumstances,
would be required to call such an election and to determine the rights of the petitioners, other
citizens and the City Council in the premises. Such lawsuit was filed July 26, 1979, in the
140th Judicial District Court of Lubbock County, and on June 27, 1980, the Court, .by surrmary
judgment, ruled in favor of the City in all respects, finding that the City was under no legal
duty to call an election for the submission of the 3 proposed charter amendments and that all 3
proposed charter amendments had been withdrawn from the field in which the initiatory process
is operative by the Constitution and the general law of the State and the Property Tax Code (SB
621). The defendants appealed to the Court of Civil Appeals for the Seventh Supreme Judicial
District of Texas (Amarillo, Texas), which reversed and remanded the District .Court judgment.
The City filed a motion for rehearing which was denied by the Court of Civil Appeals, Amarillo.
The City filed an application for writ of error with the Supreme. Court of Texas, which was
denied.
Subsequently, the City Council ordered an election .on all 3 propositions to be held January 15,
1983. All 3 propos i tions were submitted to · the voters at the January 15, 1983, election and
were defeated.
C-8
/
The maximum tax rate of the City is $2.50 per $100 Assessed Valuation with taxable property
assessed at 100% of appraised value. Tax levies are 1 imited only by the procedures and
limitations in the "Property Tax Code" {V. T.C.A., Tax Code) {See Ad Valorem Taxation).
1% MUNICIPAL SALES TAX
(Effective 4-l-68)
The City has adopted the provisions of Article 1066e, V.A.T.C.S., and levies a 1% Sales and Use
Tax within the City. This tax is collected and enforced by the State of Texas Comptroller of
Public Accounts, who remits the proceeds, less a service fee, to the City monthly. Revenues
from this source for the periods shown have been:
Fiscal Net
Year Collections % of
Ended Remitted Ad Valorem
9-30 to Citf Tax Levy ··""TI73 $3,780, 38 44.42%
1974 4,537,048 46.58%
1975 4,763,912 43.93%
1976 5,690,591 46.49%
1977 6,806,680 48.39%
1978 .7 ,421,615 47.96%
1979 8,160,916 56~44%
1980 8,722,450 55.71%
1981 9,791,566 58.69%
1982 10,939,663 61.79%
* Based on U.S. Census, 1980, of 173,979.
Equivalent
Ad Valorem
Tax Rate
$0.573
0.634
0.597
0.632
0.682
0.671
0.632 0.624
0.646
0.408
Estimated
Net
Collections
Per Capita
--$50.14*
ESTIMATED 1982-83 TAX YEAR OVERLAPPING TAXES
Set forth below is an estimate of all 1982-83 Tax Year taxes levied on an average $50,000
single-family residence by the shown taxing jurisdictions, assuming appraisals are as shown.
Basis of !lSSessment in all cases is 100% of appraisal value. Actual tax billings will vary
according to each ·jurisdiction's assessing procedures and the following does not purport to be
an exact computation of such tax levies:
Taxing Jurisdiction
City of Lubbock
Lubbock Independent School District
Lubbock County .
Lubbock County Hospital District
High Plains Underground Water Con-servation District No. 1
Estimated Total 1982-83 Ad Valorem Taxes
* Market value.
Estimated
Appraised
and Assessed
Value
$50,000*
45,000**
50,000*
50,()(){)1t
50,000*
** After $5,000 market value residence homestead exemption.
C-9
1982
Tax
Rate
$0.61000
1.00000
0.15000
0.13000
0.00725
Estimated
1982 Taxes
Levied
$305.00
450.00
75.00 65.00
3.63
$898.63
Name of Taxpayer
Texas Instruments Incorporated
Sout.hwestern Bell Telephone Company
Southwestern Pub 1i c Service Company
Furr's, Inc.
South Plains Mall
Eagle Picher Industries
Plains Co-op Oil Mill
Farmers Co-op Compress
Energas Company (a division of
Pioneer Corporation)
International Business Machines
TOP TEN TAXPAYERS
Nature of Property
Electronics Manufacturer
Telephone Utility
·Electric Utility
Retail Groceries
Regional Shopping Center
Earth Moving Machinery; Farm
Equipment
Oil Mil 1
Cotton Compress
Gas Utility
Computers, Business Machines
INTEREST AND SINKING FUND MANAGEMENT INDEX
1982
Taxable
Assessed
Valuation S 71,899,897
66,777,960
31,069,770
27,586,463
22,878,678
14,273,650
13,397,428
12,580,700
12,456,898
11,242,790 $284,164,234
% of 1982
Taxable
Assessed
Valuation 2.23%
2.07%
0.96%
0.86%
0.71%
0.44%
0.41%
0.39%
0.39%
0.35% s.m
General Obligation Debt Service Requirements for Fiscal Year Ending 9-30-83 -----$10,052,284
Interest and Sinking Fund, All General Obligation Issues, 9-30-82 --$1,541,495
1982 Interest and Sinking Fund Tax Levy l!l 95% Collection-----------8,604,125
Estimated Income from Other Sources, as budgeted-------------------838,480 10,984,100
Estimated Surplus---------------------------------------------------------------$ 931,816
COMPUTATION OF SELF-SUPPORTING DEBT
Net System Revenue Available for Fiscal Year
Ending 9-30-82
Less: Revenue Bond Requirements, 1982-83
Fiscal Year
Balance Available for Other Purposes
System General Obligation Bond Requirements,
1982-83 Fiscal Year
Balance
Percentage of System General Obligation Bonds
Self-Supporting
Waterworks
System*
$6,290,676
-0-
$6,290,676
3,894,479
$2,396,197
100.00%
* The City of Lubbock transfers to the,General Fund each fiscal year:
Sewer
System*
$ 920,322
-0-
$ 920,322
619,050
$ 301,272
100.00%
(1) from Water Revenue Fund surplus, an amount at least equivalent to debt service
requirements on Waterworks System General Obligation BoRds; and
(2) from Sewer Revenue Fund surplus, an amount at least equivalent to debt service
requirements on Sewer System General Obligation Bonds.
C-10
•.
PENSION FUNDS
Texas Municipal Retirement System •• , All permanent; full-time City employees who are not
firemen and who were less than 50 years of age .when employed by the City are covered by the
Texas Municipal Retirement System. The System is a contributory, annuity-purchase type plan
which is covered by a State statute and is administered by six trustees appointed by the
Governor of Texas. The System operates independently of its member cities.
The City of Lubbock joined the System in 1950 to supplement Social Security. Options Offered
under . the System, and adopted by the. City, include current, prior and antecedent service
credits, 20 year vesting, updated service credit, and regular and · supplemental disability
benefits. An employee who retires receives an annuity based on the amounf of the_ employee's
contributions over-matched two for one by the City. Employee contribution rate is 5% of gross
salary. The City's contribution rate is calculated each year using actuarial ·techniques
applied to experience; the 1983 contribution rate is 7.30%. Enabling statutes prohibit any
member city from adopting options which impose liabilities that cannot be amortized over 25
years within a specffied statutory rate. . ·
On 9-30-82 assets held by the System, not
Benefits Fund which is "pooled", were:
City
-Employees
including those of the Supplemental Clisability
$12,036,804
8,912,810
Total payments by the CitY for the year ended 9-30-82, not including contributions to the
Supplemental Disability Benefits Fund which are "pooled", were $1,677,152.
. . ·, '";
See page C-12, Actuarial Information, furnished by the Texas Municipal Retireinerit,S,rstem.
Fireman's . Relief and Retirement Fund ... City of Lubbock firemen are members of the locally
administered Lubbock .Firemen's Relief and Retirement Fund, operating under ari act passed in
1937 by the State Legislature and adopted by City firemen, by vote of the department, in 1941.
Firemen are not covered by Social Security.
The fund is governed by seven trustees, three firemen, two outside trustees' (one appointed by
the firemen trustees and one appointed by the Mayor), the Mayor or his representative and the
Director of Finance of the City. Execution of the act is monitored by the. Firemen's Pens.ion
Corrmissioner, who is appointed by the Governor. · · · ·
Benefits of retired firemen are determined on a "formula" or a "final salary'' plan. Actuarial
reviews are performed every three years, and the fund is audited annually. flreme·n contribute
10% of full salary into the fund and the City must contribute a like amount; however, the City
contributes on a basis of the percentage of salary which is a ratio adjusted annually that bears
the same relationship to the firemen's contribution rate that the City's rate paid into the
Texas Municipal Retirement System and FICA bears to the rate other employees pay into the Texas
Municipal Retirement System and FICA. The City's .present contribution rate is 11.97%.
An actuarial evaluation as of 3.,;31-80 was conducted by the firm of Rudd and Wisdom, Inc.•
Austin, Texas. The valuation balance sheet estimated unfunded liabilities of $5,336,161. The
study found that the plan would be actuarially sound if a funding program is maintained which
would completely amortize this unfunded liability in approximately 25 years, and concludes
"Since your present funding period is approximately 19 years, we consider your plan, based on
present levels of benefits and contributions, to be actuarially sound".
C-11
TEXAS MUNICIPAL RETIREMENT SYSTEM
City of --~L~u~b~b~o~c=k-'----
Actuarial Information
1. Valuation Date -The date of the most recent actuarial valuation is December 31, 1981.
· The •. valuation was based on the plan of. benefits in effect on January 1, 1982.
2. Acttiarial:Cost -Method -The actuarial cost method used was the Unit Credit Actuarial
Cost Method; The unfunded accrued liability is being amortized ~j,th a level per-
9entage of,' payr,oll over a pel'i~d of 25 years which began 1/80 •
-3. ,ActuariaLCost for 1981 (as a percent of payroll)
Normal c.ost contribution rate 5 • 307.
,Prior, service contribution rate 2.16
' Total retirement contribution rate 7.467.
I!. :.ctuarfa.1 Present Value of Accrued Benefits
Vested
December 31,
1981
December 31,
1980
5.
6. -
a. Annuitants
b. Nonretired members
_Nonvested
Total
Total Assets (book value)
Unru'nded Accrued Liability
$ 3,792,747
18,024,040
7,714,894 $29,531,681
$19,865,090
$ 9,666,591
$ 3,302,907
16,300,234
7.228.578
· $26.831. 719
$16,955,007
$ 9,876,712
, 7 •. ··Actuarial Assumptions .:. There have been no changes in the actuarial cost method
since the previous valuation; however, the interest rate and annuitant mortality
assumptions have been changed. The impact of the change as of the valuation date
was to increase the unfunded accrued liability by $97,575 and to increase the
1983 prior service contribution rate by 0.027..
8. Benefit Changes -There have been no changes in benefits since the previous valuation.
9~ Exclusion of Employees -All employees who were members of the System on the valua-
tion date have been included in the valuation.
10. Gains .and Losses -Since the System is of the money-purchase type, the interest
earr:ied py the System and realized investment gains and losses are.distributed an-
nually to the accounts of the members and the municipalities. Gains (losses) from
other sources deer.ease (increase) the unfunded accrued liability and are thus amor-
tized using a spread method. There has been no change in the treatment of .actuarial
gains,and losses since the previous valuation.
11. Interest Rate -Because of the money-purchase nature of the System, there is no
need for an interest rate assumption in valuing the actuarial present value of accrued
benefits Tor nonretired members. For annuitants, the.actuarial present value of
benefits is calculated using a 5j interest rate assumption. The 5j assumption is
also used in calculating the prior service contribution rate.
RUDD AND WISDOM, INC.
Mark R. Fenlaw
Fellow, Soci_ety of Actuaries
C-12
[THIS PAGE INTENTIONALLY LEFT BLANK]
No Text
(
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CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
s
§ s .
§
§
I, the undersigned, City Secretary of the City of
Lubbock, Texas, DO HEREBY CERTIFY as follows:
1. That on the 12th day of May, 1983, the City Council
of the City of Lubbock, Texas, convened in regular session
at its regular meeting place in the City Hall of said City;
the duly constituted members of the Council being as follows:
BILL MC ALISTER
ALAN HENRY
JOAN BAKER
M. J. ADERTON
E. JACK BROWN
)
)
)
)
MAYOR
MAYOR PRO TEM
COUNCILMEMBERS
and all of said persons were present at said meeting, except
the following: Mayor Bi 11 McAl ister • Among
other business considered at said meeting, the attached
resolution entitled: RESOLUTION NO. lJ88
"A RESOLUTION by the Ci~y Council of the City of
Lubbock, Texas, providing for the redemption of
'City of Lubbock, Texas, Electric Light and
Power System Revenue Bonds-~ Series 1981' and
resolving other matters incident and related
to the redemption of such bonds."
was introduced and submitted to the Council for passage and
adoption. After presentation and due consideration of the
resolution, a motion was made by Councl lman Aderton that
the resolution be finalfY passed and adopted. The motion
was seconded by Counc, fw9man Baker and carried by the
following vote:
4 voted "For" ---0 ---voted "Against"
absent (McAlister)
~tt~,ax
all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
2. That the attached resolution is a true and correct
copy of the original on file in the official records of the
City; the duly qualified and acting members of the City
Council of said City on the date of the aforesaid meeting
are those persons shown above and, according to the records
.--
,,..
' . ·, of my office, advance notice of the time, place and purpose
of the meeting was given to each member of the Council; and
that said meeting, and the deliberation of the aforesaid
public business, was open to the public and written notice
of said meeting, including the subject of the entitled
resolution, was posted and given in advance thereof in
compliance with the provisions of Article 6252-17, Section
3A, V.A.T.c.s.
IN WITNESS WHEREOF, I have hereunto signed my name
officially and affixed the seal of said City, this the 12th
day of May, 1983.
·(city seal)
..
""' ... ,., ..
,·
. ---~·. ,. --·.
"
RESOLUTION 1388 -5/12/83
A RESOLUTION by the City Council of the City of
Lubbock, Texas, providing for the redemption of
"City of Lubbock, Texas, Electric Light and
Power System Revenue Bonds, Series 198111 and
resolving other matters incident and related to
the redemption of such bonds.
WHEREAS, pursuant to Ordinance No. 8232 passed on second
and final reading August 28, 1981, the following described
bonds were duly authorized to be issued and are currently
outstanding, to wit:
"CITY:oF LUBBOCK,:TEXAS, ELECTRIC LIGHT AND POWER
SYSTEM REVENUE BONDS,: SERIES_l98l", dated August 15,
1981; aggregating ·in principal amount $8,550,000, and
scheduled to:mature on April 15 in each of the years
1984 through 2002:
,~'.r""; •, :·--• • • • • • • '
AND WHEREAS, in the proceedings authorizing the iss~nce
of said bonds, and as stated in each of said bonds, the City
reserved the right at its option to redeem prior to maturity ·
bonds maturing in the years 1992 through 2002, in whole or
any part thereof, .on April 15, 1991, or on any interest
payment date thereafter at the price of par and accrued
interest to the date fixed for redemption; and ·
WHEREAS, the City .. Council hereby finds and .determines
that all of ·said bonds maturing on and after April 15, 1992
should be redeemed on April 15, 1991~ and ·a notice of .
redemption should now be·.-given of such redemption date in
accordance with the terms and pro_vi.sions prescribed therefor
in the authorizing proceedings and said bonds: now, therefore,
BE IT RESOLVED BY -THE CITY COUNCIL OF. THE CITY OF LUBBOCK:
SECTION l: That the bonds of that series known as
"CITY OF LUBBOCK, TEXAS, EL°ECTRIC LIGHT AND POWER SYSTEM
REVENUE BONDS, SERIES 1981" maturing in the years 1992
through 2002, being those bonds numbered 811 through 1,800,
each in the denomination of $5,000, and aggregating in
principal amount $4,950,000, shall be redeemed, and the same
are hereby called for redemption, on April 15, 1991, at the
price of par and accrued interest to the date of redemption.
SECTION 2: That the City Secretary is hereby authorized
and directed to cause a notice of redemption to be filed
with the Texas Commerce Bank, National Association, Lubbock,
Texas and the Citibank, National Association, New York, New
York, the 11 paying agents 11 : such notice of redemption to read
,...
,..
~.:·,::: ...
•
t,-·-•. ~-:---
..
substantially as Exhibit A attached hereto and incorporated
herein by reference as a part of this resolution for all
purposes.
PASSED AND APPROVED, this the JJi!J. day of May, 1983.
... -.. ~--.---
.. ~.~----
Texas
". t
ATTEST: . . .
~e:~~ Lubbock, Texas· . · -
(City Seal)
---
,,,.. . . ~ l
EXHIBIT /1
NOTICE OF REDEMPTION
CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER
SYSTEM REVENUE BONDS, SERIES 1981
NOTICE IS HEREBY GIVEN that the City of Lubbock, Texas.
has called for redemption on April 15, 1991, the bonds of
the series described above and further described as follows:
Bonds numbered 811 through 1,800, each in the denomination
of $5,000, aggregating in principal amount $4,950,000, and
scheduled to mature on April 15 in each of the years
1992 through 2002.
NOTICE IS FURTHER GIVEN that due and proper arrangements
have been made for providing the Texas Commerce Bank, National
Association, Lubbock,,Texas and the Citibank, National Association,
New York, New York, the paying agents for such bonds, with_
sufficient funds to pay the principal amount of such bonds
and the accrued interest thereon to April 15, 1991, the
redemptio~ date therefor. In the event said bonds, or any
of them are not presented for payment by the date fixed for
redemption, such bonds not presented for payment shall cease
to bear interest from and after the date fixed for redemption.
THIS NOTICE is issued and given pursuant to the terms
and conditions prescribed for the redemption of said bonds
and pursuant to authority of a resolution passed by the City
Cou~cil of the City of Lubbock, Texas, on May_, 1983 •
. WITNESS MY OFFICIAL SIGNATUREr. this the
, 1983. · --.,...,
:,••
day of
------
·city Secretary, City of
Lubbock, Texas
The above and foregoing Notice of Redemption was duly
received and filed with the
, · this ---------. ---------
Authorized Officer of Bank
(BANK SEAL)
Bank Officer's Title
EXHIBIT A
I ;
.......
---
I
'
..
l
,...
NOTICE OF REDEMPTION
CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER
SYSTEM REVENUE BONDS, SERIES 1981
NOTICE IS HEREBY GIVEN that the City of Lubbock, Texas
has called for redemption on April 15, 1991, the bonds of
the series described above and further described as follows:
Bonds numbered 811 through 1,800, each in the denomination
of $5,000, aggregating in principal amount $4,950,000,
·and scheduled to mat~re on April 15 in each of the
years 1992 through 2002.
NOTICE IS FURTHER GIVEN that due and proper arrangements
have been made for providing the Texas Commerce Bank, National
Association, Lubbock, Texas and the Citibank, National
Association, New York, New York, the paying agents for such
bonds, with sufficient funds to pay the principal amount o.f-
such bonds and the accrued interest thereon to April 15,
1991, the redemption date therefor. In the event said
bonqs, or any of them are not presented for payment by the
·date fixed for redemption, such bonds not presented for
payment shall cease to bear interest from and after the date·
fixed for redemption.
THIS NOTICE is issued and given pursuant to the terms
and conditions prescribed for the redemption of said bonds
-and pursuant to authority of a resolution passed by the City
Council of the City of Lubb~ck, Texa~, on May 12, 1983.
-WITNESS MY OFFICIAL SIGNATURE, this the 12th day of
May , 1983.
Lubbock, Texas
The above and foregoing Notice of Redemption was duly
received and filed with the Texas Commerce Bank, National
Association, Lubbock, Texas, this Oaa6( I 't, J f.f...:3 •
(BANK SEAL)
TEXAS COMMERCE BANK, NATIONAL ASSOCIATION
Lubbo ,, Ta
To 1\J Y \\/AYL/..,.JD
SE:~:OR VICE f',~::: ·:•c•!T sn::'.)11 '1P<PL~:-·-· ,· .·.···. ---~
Bank Officer's Title
No Text
..
I,...,
-.
..
CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
§
§ ... §
§ -
§
I, the undersigned, City Secretary of the City of
Lubbock, Texas, DO HEREBY CERTIFY as follows:
1. That on the 12th day of May, 1983, the City Council
of the City of Lubbock, Texas, convened in regular session
at its regular meeting place in the City Hall of said City;
the duly constituted members of· the Council being as follows:
BILL MC ALISTER
ALAN HENRY
JOAN BAKER
M. J. ADERTON
E. JACK BROWN
)
)
)
)
MAYOR
MAYOR PRO TEM
COUNCILMEMBERS
and all of said persons were present at said meeting, except
the following: Mayor Bl 11 McAl ister • Among
other business considered at said meeting, the attached
resolution entitled:
NO. 1387
"A RESOLUTION by the City Council of the City of
Lubbock, Texas, -approving and authorizing the
execution of a 'Special Escrow Fund Agreement'
by and between the City and Texas Connnerce Bank,
National Association, Lubbock, Texas, in relation
to the refunding of certain outstanding revenue
bonds of the City; and resolving other matters
incident and related thereto."
was introduced and submitted to the Council for passage and
adoption. After presentation and due consideration of the
resolution, a motion was made by Councilwoman Baker that
the resolution be finally passed and adopted. The motion
was seconded by Councilman Brown and carried by the
following vote:
4 voted "For" ---o voted "Against" ---
absent (McAlister)
>8.bs:boo.a:itexlx ---
all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
2. That the attached resolution is a true and correct
copy of the original on file in the official records of the
City; the duly qualified and acting members of the City
,.
-
Council of said City on the date of the aforesaid meeting
are those persons shown above and, according 'to the records
of my office, advance notice of the time, place and purpose
of the meeting was given to each member of the Council; and
that said meeting, and the deliberation of the aforesaid
public business, was open to the public and .written notice
of said meeting, including the subject of the entitled
resolution, was posted and given in advance thereof in
compliance with the provisions of Article 6252-17, Section
3A, V.A.T.C.S.
IN WITNESS WHEREOF, I have hereunto signed my name
officially and affixed the seal of ~aid City, this the
12th day of May, 1983.
~~-~~~ ciy Secretary,Ct't?
. Lubbock, Texas
---(City Seal) :
.,.
,,
,,,.
RESOLUTION #1387 -5/12/83
A RESOLUTION by the City Council of the City of
Lubbock, Texas, approving and authorizing the
execution of a "Special Escrow Fund Agreement" by
and between the City and Texas Commerce Bank,
National Association, Lubbock, Texas, in .relation
to the refunding of certain outstanding revenue
bonds of the City; and resolving other matters
incident and related thereto.
WHEREAS, on this date the City Council of the City of .
Lubbock., .Texas passed and adopted on . first reading · an ordinance
authorizing the issuance ·of. "City of Lubbock., Texas, Electric .
Light and Power System Refunding Revenue Bonds, Series 1983"
(the "Bonds") in the aggregate principal amount $10,770,000
for the purpose of -refunding certain outstanding revenue
bonds of the City payable from and secured by a lien on and .
pledge of the net revenues of the City's Electric Light and_
· Power System _ {the::::~Refunded Bonds"); and
WHEREAS, in accordance with the provisions of Article
717k, V.A.T.C.S., the City is to deposit with the Texas
Commerce Bank, National Association, Lubbock,Texas (the
paying agent for the Refunded· Bonds) from the proceeds of .
sale of the Bonds .an amount ·sufficient to provide funds
necessary to fullypay the principal of and interest on the
Refunded Bonds as the same becomes_ due and payable; and
WHEREAS, to provide . for the safekeeping, investment, ..
administration and disposition of the funds to be deposited
with said Bank and to insure the availability of moneys in
amounts sufficient to provide for the scheduled payment of
the principal of -and interest on the .Refunded Bonds, a
"Special Escrow Fund Agreement" by and between the City and
Texas Commerce Bank, National Association, Lubbock, Texas,
has been prepared and submitted to the City Council for
approval and execution, such "Special Escrow Fund Agreement"
being attached hereto as Exhibit A and incorporated herein
by reference as a part of this resolution for all purposes;
and
WHEREAS, the City Council hereby finds and determines
that said "Special Escrow Fund Agreement" should be approved
and execution of the same for and on behalf of the City
authorized; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK:
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SECTION 1: That the "Special Escrow Fund Agreement"
(the "Agreement") by and between the City and Texas Commerce
Bank, National Association, Lubbock, Texas, attached hereto
as Exhibit A and incorporated herein by reference as a part
of this resolution for all purposes, is hereby approved as
to form and substance, and the Mayor and City Secretary of
the City of Lubbock, Texas, are hereby authorized and
directed to execute such Agreement for and on behalf of the
City and as .. the act .and deed of this Council.
SECTION 2: That; in connection with the purchase and
delivery of,,thei~F~c:leral Secµrities" referenced in the·
Agreement and to be\·acquired and deposited to the credit of
the ••special 1983 City of ·Lubbock Refunding Bond Escrow
Fund", the Texas Commerce Bank, National Association, Lubbock,
Texas, as. agent for .. the City, and the Assistant City Manager
for Financial Services (either or both) are hereby authorized
and directed to execu.te the appropriate subscription forms_
and make the·necessciry arrangements for the purchase and
acquisition, on the·aate of delivery and payment for Bonds
from the Federal Reserve Bank, Dallas, Texas, of the "Federal
Securities" in the principal amount of $10,497,600, bearing
interest at such rate or rates and maturing in such amounts
and at such·time as shall.be necessary to fully pay the ·
principal of and.interest on the Refunded Bonds; all as
contemplated and provided in Article 717k, V.A.T.c.s., the
ordinance authorizing.the issuance of the Bonds and the
Agreement.
PASSED AND APPROVED, this the _;12th day of May, 1983.
ATTEST:
(City Seal)
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tXHJBITA
SPECIAL ESCROW FUND AGREEMENT
THE STATE OF TEXAS
COUNTY OF LUBBOCK
§
§
§
. THIS ,SPECIAL .ESCROW .· FUND AGREEMENT . (the "Agreement"),
dated and ' ·effective•·: as of June 15, . 1983 / made. by · and
between° the CITY OF : LUBBOCK, TEXAS, a ·: duly incorporated · ·
municipal corporation of the state of Texas in the County of
Lubbock (the "City"), and the TEXAS COMME~CE BANK,NATIONAL
ASSOCIATION, Lubbock·, Texas ( the "Bank" ) , ', a national banking
association organized and existing under the laws of the
United ·states of America, _.
WITNESS ETH:
WHEREAS, the City. has hereto.fore issued, and there is
currently outstanding the following described issue or
series of revenue bonds (hereinafter called the "Outstanding
Bonds 11 ), payable solely from and secured by a lien on and ·
pledge of the net revenues of the City's E;lectric Light and.
Power System, to wit: .
CITY OF LUBBOCK,· TEXAS, E~CTRIC LIGHT AND POWER
SYSTEM REVENUE BONDS, . SERIE;S . 198111 ; ·. dated August 15,
1981 and now outstanding in the aggregate principal
· :amount · of $8,550,000;
AND WHEREAS, under the provisions of Article 717k,
V .A. T .c. s., as amended, (the "Act") the City is authorized
to sell refunding bonds in an amount sufficient to provide
for the payment of revenue obligations which are to be
refunded, deposit the proceeds of such refunding bonds with
the place of payment for the revenue obligations being
refunded and enter into an escrow or similar agreement with
such place of payment for the· safekeeping, investment,
reinvestment, administration and disposition of such de-
posit, upon such · terms and conditions .as the parties . may
agree; provided such deposits may be invested only in direct
obligations of the United States of America, including
obligations the principal of and interest on which are
unconditionally guaranteed by the United States of America,
and which may be in book entry form and which shall mature
anq/or bear interest payable at such times -and in such
amounts as will be sufficient to provide for the scheduled
payment of such revenue obligations; and ·
,t>fHJB/T A
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WHEREAS, the Outstanding Bonds are scheduled to mature
or be redeemed, and interest thereon is payable, on the
dates and in the manner set forth in Exhibit A attached
hereto and incorporated h~rein by reference as a part of the
Agreement for all purposes; and ·
·<.. WHEREAS, pursuant to an ordinance (the . "Bond Ordinance")
duly passed _and adopted by the City Council, the City has
authorized/ . .issued ·and sold revenue bonds in the aggregate
principal amount ,:of $10.,/?70, 000 . known as If City of Lubbock,
Texas, Electric'.-Ligbt and Power System Refunding Revenue~:
Bonds, Series . 1983 '~ · ( the "Bonds II) , to refund, discharge and
make ·fina1payment •of the principal of and interest on the
outstanding.Bonds; and
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WHEREAS,· upon the delivery of the Bonds, proceeds of ·
sale of the ·· Bonds ·in the sum of $10,497, 600 are to be -used
imme-diately~ by the, Bank . to purchase United States Treasury ··
Securities -State and Local Government Series (the "Federal
Securities")· in the principal amount of $10,497,600 and such
Federal Securities . together with cash in the amount of
$71.55 shall. be· credited to and deposited into the "Escrow
Fund" to be held by the Bank in accordance with this Agreement;
and . · · ·
, WHEREAS, a .-list or description of the · Federal Securities
to be purchased by the-'Bank and held for the account of the
Escrow Fund is attached hereto . as Exhibit B incorporated
herein by r~ference and made a· part of "this Agreement for
all purposes; and
WHEREAS, the Federal Securities shall .. mature· and the
interest thereon shall be payable at such times to insure
the existence of monies, ·together with other funds lawfully
available therefor, sufficient to pay the principal amount
of the outstanding Bonds upon maturity .or redemption prior
to maturity, and the accrued interest thereon, as the same
shall become due in accordance with their terms as set forth
in Exhibit A attached hereto; and
WHEREAS, the City has completed all arrangements re-
quired for the purchase of the Federal Securities listed in
Exhµ>it B and the credit of the same to· the Escrow Fund as
provided herein; and
WHEREAS, the Bank is a banking corporation organized
and. existing under the laws of the United States of America
and possessing trust powers and is fully. qualified and
empowered to enter into this Agreement; and
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WHEREAS, pursuant to a resolution adopted on May 12,
1983, the City Council approved and authorized the execution
of this Agreement in connection with the issuance of the
Bonds and the refunding of the Outstanding ·Bonds; and
NOW, THEREFORE, in consideration of the mutal agree-
ments herein contained, and to secure the payment of the
principal of and the interest on the Outstanding Bonds as
the same shall become due, whether upon maturity or redemp-
_tion prior .to maturity as the case may_ be, the City and. the
Bank hereby·· mutually undertake, promise and agree for them-
selves and-their-respective representatives and successors,
as follows:·
SECTION l: There is hereby created by the City with
the Bank a special segregated and irrevocable trupt fund
designated "SPECIAL 1983 CITY OF LUBBOCK REFUNDING BOND
ESCROW FUND" (hereinafter called the ·11Escrow Fund") for the
benefit of the holders of the outstanding Bonds, and, im-
mediately following the delivery of the Bonds, the City
agrees and covenants to cause to be deposited with the Bank
the following: ·
$10,497,600.00 for the purchase of the Federal Securities
listed in Exhibit B to be held for the
account of the Escrow Fund;
$
$
71.55 for deposit in the.Escrow Fund as
a beginning cash balance; and
16, 000 • 0 O ..... to pay fees and. charges of the Banlt
for the administration of this Agreement
and paying agents charges for the
Outstanding Bonds as provided in
Section 13 hereof.
The Bank hereby. accepts the Escrow Fund and further
agrees to receive said moneys, apply the same as set forth
herein, and to hold the cash and Federal Securities deposited
~d credited to the Escrow Fund for application and disbursemeJ
for the purposes and in the manner provided in this Agreement.
·sECTION 2: The City hereby ·represent!:?·that the cash
and Federal Securities specified in Section 1 hereof to be
deposited to the credit of the Escrow Fund is sufficient to
pay the principal of and interest on the Outstanding Bonds
as the same shall become due and payable, and such Outstanding
Bonds, and the interest thereon, are to mature and be paid
· at the times and in the amounts set forth and identified in
Exhibit A attached hereto.
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SECTION 3: The Bank agrees that all cash and Federal
Securities held in the Escrow Fund shall be and is hereby
irrevocably pledged to the. payment of the principal of and
interest on the outstanding Bonds which will mature and
become due on and after the date of this Agreement and such
principal of and interest on the Outstanding Bonds shall be
paid in the manner provided by the Act, this Agreement and
the ordinance authorizing the Outstanding Bonds with funds
initially deposited and to be received from maturing princip,
and interest .on the Federal Securities in the Escrow Fund.
SECTION 4: If,· for any reason, the funds on· hand· in
the Escrow Fund shall be insufficient to make the payments
set forth in Exhibit A attached hereto, as the same becomes
"''·due and payable, the City shall make timely deposits in .the
Escrow Fund, from lawfully available funds, additional funds
· · in the amounts required to make such payments • .,.,... Notice of
any such insufficiency shall be immediately given by the
fastest means possible, but the Bank shall in no manner be
responsib_le for the City's. failure to make such deposits.
SECTION 5: The Bank at all times shall hold said
Federal . securities and moneys in the Escrow Fund at all
times -as a special and separate trust fund for the benefit
of-the holders of the Outstanding Bonds, wholly segregated
from other morieys and securities on.deposit with the Bank;
· shall never commingle •.-said Federal Securities _and moneys
with other moneys or securities.of the Bank; and shall hold
and dispose of the assets therein only as set forth herein.
Nothing herein contained shall be construed as requiring the
Bank to,. keep __ the identical moneys, or any part thereof, in
said Escrow Fund, if it is impractical, but moneys of an
equal amount, except to the extent such are represented by
the Federal Securities shall always be maintained on deposit
in the Escrow Fund.by the Bank, as trustee; and a special
account evidencing such facts shall at all times be maintain
on the books of the Bank.
SECTION 6: The Bank shall from time to time collect
and receive for the credit of the Escrow Fund the principal
of and interest on the Federal Securities as they respective
mature and become due and credit the same to the Escrow
Fund. As set forth in Exhibit B~ the proceeds received on
the maturing principal and interest of the Federal Securitie
shall be made available to pay the principal of and interest
on the Outstanding Bonds in accordance with Exhibit A attact
hereto.
SECTION 7: · Except as provided in Section 8, moneys in
the Escrow Fund will be invested only in the Federal Securi1
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listed in Exhibit Band neither the City nor the Bank shall
reinvest any moneys deposited in the Escrow Fund unless
hereafter specifically autJ:iorized by law. The Bank shall
maintain the Escrow Fund until the date ·upon which said
Outstanding Bonds are fully paid as to principal and interes1
whereupon the Bank shall sell or redeem any Federal SecuritiE
remaining in the Escrow Fund and shall remit to the City the
proceeds thereof and accrued interest thereon, together with
cill oth~r monies, if any, then remaining in the Escrow Fund.
' ._ sEb¥ioN ~-·:-···•"it the direction of the City,. the ' Bank
shall redeem the Federal Securities and reinvest the proceed
thereof, together 'with other monies held in the Escrow Fund
provided. that .· the City delivers to the Bank the following:
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(1) an opinion by an independent -certified public
accountant that after such reinvestment the principal
amount of substituted securities (which shall be non-
callable direct obligations of the United States of
America), together with the interest thereon and other
available moneys, will be sufficient to pay, as the
same become due in accordance with Exhibit A, the
principal of, and interest on, the Outstanding Bonds
-which have not previously been paid, and
( 2) an unqualified opinion of nationally recog-
nized municipal bond counsel to the ef feet that (a)
such investment will not cause the Bonds or Outstandinc
Bonds to · be "arbitrage bonds" within the meaning of ·
Section l03(c) of the Internal Revenue Code of 1954, at
amended, .. and the regulations thereunder in effect on
the date of such investment, ··· or otherwise make the
interest on the Bonds or the Outstanding Bonds subjec1
to Federal income taxation and (b) such reinvestment
complies with the Constitution and laws of the State o
Texas and with all relevant documents relating to the
issuance of the outstanding Bonds and the Bonds.
SECTION 9: If at any time through redemption or cance
tion of the Outstanding.Bonds there exists or will exist
excesses of interest on or maturing principal of the Federa
Securities· in excess of the amounts necessary hereunder fo:
the Outstanding Bonds, the Bank may transfer such excess
amounts to or on the order of the City, provided that the
City delivers to the Bank the following:
-(1) an opinion by an independent certified publ:
accountant that after the transfer of such excess, th
principal amount of securities in the Escrow Fund,
together with the interest thereon and other availabl
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monies, will be sufficient to pay, as the same become
due, in accordance with Exhibit A, the principal of,
and interest on, the Outstanding Bonds which have not
previously been paid, and
(2) an unqualified opinion of ·nationally recog-
nized municipal bond counsel to the effect that (a)
such transfer will not cause the Bonds or the Outstanding
. Bonds t6 . .be "arbitrage bonds" within the meaning of _ ...
Section<l03(c) of the Internal Revenue Code of 1954, as ·
amended, and the regulations thereunder in effect on '.:' :. ·
the date of.such transfer,·or otherwise make the interest
on the Bonds or the Outstanding Bonds subject to .Federal
income taxation, and (b) such transfer complies with
the constitution and laws · of the state of Texas and
with ail-relevant documents relating to the issuance of --the Outstanding _Bonds or the Bonds.
SECTION 10: The Bank shall continuously secure the
monies in the Escrow Fund not invested in Federal Securities
if any, by a pledge .of obligations of the United States of
America, . in the par or face amount at least equal to the
principal amount of -said uninvested monies to the extent
such money is .not .insured by the Federal Deposit Insurance
Corporation.
SECTION 11: The Bank shall not be liable or respon~
sible for any loss resulting from any investment made in the
Federal Securities.··., -·
SECTION 12: . Should the Bank fail to account for any
funds or the Federal Securities received by it for the
account of the City, such funds, Federal Securities shall be
and remain the property of the Escrow Fund and the City and
the holders of the Outstanding Bonds shall be entitled to a
preferred claim and shall have a first lien upon such funds,
Federal Securities enjoyed by a trust beneficiary. The
funds, Federal Securities received by the Bank under this
Agreement shall not be considered as a banking deposit by
the City and the Bank shall have no right or title with
respect thereto. Such funds and Federal Securities shall
not be subject to checks or drafts drawn. by the City.
SECTION 13: The City agrees to pay the Bank for the
performance of services hereunder and as reimbursement for
anticipated expenses ·to· be incurred hereunder the amount of
$ i ?,z_~.ol) and the Bank hereby agrees said amount is full ~ 1 complete payment for the administration of this Agreement.
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The City also agrees to pay the Bank, concurrently with
the deposit to the Escrow Fund, the sum of $ /,,, 6 75:&) · .
which amount represents the-total charges for ~~11 paying
agents and co-paying agents for the Outstanding Bonds, and
the Bank hereby acknowledges and agrees that the foregoing
sum is and represents the total amount of compensation due
said Bank for said services, as well as the co-paying agent's
charges of --the Citibank, National Association, New York, New
York ( co-paying · agent · for the Outstanding Bonds); and the
Bank hereby:,agrees r to. pay,. assume and be fully responsible
for the payment of any additional charges ·· that may be incurred
by the Bank,. and ··the Citibank,· .National Association, New ··~·•·<., . ._ ·
York, New York representing paying agent's charges incurred
in relation to the outstanding Bonds •
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SECTION 14: Whenever under the terms of this Agr~ement
the.performance date.of any proyision hereof shall fall on a
holiday of the Bank, the performance thereof on the next ·
successive business day of the Bank shall be deemed to be in
full compliance •.
SECTION 15: Time shall be of the essence in the per-
formance of obligations from time to time imposed upon the
Bank by this Agreement.
SECTION 16: .In the event of any -·· disagreement or con-·
troversy hereunder or -·if conflicting demands or notices are
made upon Bank growing out of o;r relating to this Agreement
or in · the event that the Bank,::in good faith is in doubt as .
to what action should be taken hereunder, the City express~y
agrees and consents that the Bank shall have the absolute'
right at its election to do either or both of the following
things:
(a) Withhold and stop all further proceedings in,
and performance of, this Agreement and of all instruc-
ti_ons received hereunder.
(b) File a suit in interpleader and obtain an
order from a court of appropriate jurisdiction requir-
ing all persons involved to interplead and litigate in
such court their several claims and rights among them-
selves.
In the event the Bank becomes involved in litigation in
connection with this Agreement, the City agrees to indemnify
and save the Bank harmless from all loss, cost, damages,
exp~nses and attorney fees suffered or incurred by the Bank
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as a result thereof. The obligations of the Bank under this
paragraph shall be performable at the office of the Bank in
Lubbock, Texas.
The Bank may advise with legal counsel in the event of
any dispute or question as to the construction of any of the
provisions ... hereof · or its duties hereunder, and it shall
incur no liability and shall be fully protected .in acting ·in
accordance w;th the opinion and instructions of.such counsel~
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·SECTION .17.: :Promptly after December .31 of each calendar
year, commencing with the year ·1983, so:-iong as the Escrow
Fund ·is ·maintained · under this Agreement/ the Bank shall
forward by _letter to the City, to the att~ntion of the City
Manager,·a·statement in detail of the Federal Securities and .
monies held, and the current income and maturities thereof,
and the withdrawals .:of money from the Escrow Fund for the
preceding calendar year.
SECTION 18 ~ Any notice, authorization, request or
demand required or permitted to be given hereunder ~hall be
in writing .and shall be deemed to have ·been duly given when
mailed . by registered . or certified mail, postage prepaid
addressed .. as ,. follows:
. ,, ~-.,.
CITY OF LUBBOCK,TEXAS:
City of Lubbock, Texas
P. o~ · Box .2000 .:
Lubbock, Texas 79457
Attention: City Manager
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
Texas commerce Bank, N. A.
P. o. Box 841
Lubbock, Texas 79408
Attention: Corporate Trust Department
The United States Post Office registered or certified mail
receipt showing delivery of the aforesaid shall be conclu-
sive evidence of the date and fact of delivery.
Any party hereto may change the address to which notices
are to be delivered by giving to the other parties not less
than ten (10) days prior notice thereof.
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SECTION 19: Upon the taking of all the actions as
described herein by the Bank, the Bank shall have no further
obligations or responsibilities to the City or to any other
person or persons in connection with this Agreement.
SECTION 20: The Bank shall not be liable for any-act
done or step taken or omitted by it or any mistake of fact
or law or for anything which it may do or refrain from
doing, except for its gross negligence or its willful default
,. .. in ~e-performance of any obligation imposed under it hereund•
The Bank-shal'L not be responsible in any manner whatsoever
for the recitals or-statements ·contained in the outstanding
Bonds or the Bonds or any proceedings taken by the City in
connection therewith. ·
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SECTION 21: 'The Bank shall have no· responsibility to
any persons in connection herewith except those specifically
provided herein. The City will not commence any action
against the Bank at law, in equity or otherwise as a result
of any action taken o~ thing done by the Bank in compliance
with this Agreement.
SECTION 22: The Bank shall not be responsible or
liable to any person in any. manner whatever for. the suffi-
ciency, correctness, genuineness, effectiveness, or validity
of the deposits made pursuant to this Agreement, or for the
form or execution thereof, or for the identity or authority
of any. person . making or · executing such deposits. This
. Agreement is between the City_· and the Bank only and . in
connection therewith the Bank is authorized by the City to·
rely upon the representations of the City with respect to ·.
this Agreement and the deposits made pursuant hereto and as
to this City's right and power to execute and deliver this
Agreement, and the Bank shall not be liable in any manner as
a result of such reliance. The duty of the Bank hereunder
shall only be to the City and the holders of the Outstanding
Bonds. Neither the. City nor the Barut shall assign or at-
. tempt to assign or transfer any interest hereunder or any
portion of any such interest. Any such assignment or at-
tempted assignment shall be in direct conflict with this
Agreement and be without effect.
SECTION 23: This Agreement shall inure to the benefit
of and be binding upon the Bank and the City and their
respective successors.
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IN WITNESS WHEREOF, the City Council of the City of
Lubbock, Texas, has caused these presents to be executed by
the Mayor and attested by the City Secretary and its corporate
seal to be affixed hereto, and the Texas Commerce Bank,
National Association, Lubbock, Texas, has caused these
presents to be signed in its corporate name by one of its
Vice Presidents, sealed with its corporate seal and duly
attested by an authorized signer, all as of the date and
year above written. ,
ATTEST:·•··
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_City Secretary
(City Seal)
. ATTEST:-.•·
Authorized Signer
(Bank Seal)
CITY OF LUBBOCK, TEXAS
Mayor -
TEXAS COMMERCE BANK, NATIONAL
ASSOCIATION
Lubbock, Texas
Vice President
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RESOLUTION 1387 -5/12/83
SPECIAL ESCROW FUND AGREEMENT
THE STATE OF TEXAS
COUNTY OF LUBBOCK
§
§
§
THIS SPECIAL ESCROW FUND AGREEMENT (the "Agreement"),
dated and effective as of June 15, 1983, made by and
between the CITY OF LUBBOCK, TEXAS, a duly incorporated
municipal corporation of the State of Texas in the County of
Lubbock (the "City"), and the TEXAS COMMERCE BANK, NATIONAL
ASSOCIATION, Lubbock, Texas (the "Bank"), a national banking
associabion organized and existing under the laws of the
United States of America,
WITNESS ETH:
WHEREAS, the City has heretofore issued, and there is
currently outstanding the following described issue or
series of revenue bonds (hereinafter called the "Outstanding
Bonds 11 ) , payable solely from and secured by a lien on and
pledge of the net revenues of the City's Electric Light and
Power System, to wit:
CITY OF LUBBOCK, TEXAS, E~CTRIC LIGHT AND POWER
SYSTEM REVENUE BONDS, SERIES 198111 , dated August 15,
1981 and now outstanding in the aggregate principal
amount of $8,550,000;
AND WHEREAS, under the provisions of Article 717k,
V.A.T.C.S., as amended, (the "Act") the City is authorized
to sell refunding bonds in an amount sufficient to provide
for the payment of revenue obligations which are to be
refunded, deposit the proceeds of such refunding bonds with
the place of payment for the revenue obligations being
refunded and enter into an escrow or similar agreement with
such place of payment for the safekeeping, investment,
reinvestment, administration and disposition of such de-
posit, upon such terms and conditions as the parties may
agree; provided such deposits may be invested only in direct
obl.igations of the United States of America, including
obligations the principal of and interest on which are
unconditionally guaranteed by the United States of America,
and which may be in book entry form and which shall mature
and/or be~r interest payable at such times and in such
amounts as will be sufficient to provide for the scheduled
payment of such revenue obligations; and
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WHEREAS, the Outstanding Bonds are scheduled to mature
or be redeemed, and inte·rest thereon is payable, on the
dates and in the manner set forth in Exhibit A attached
hereto and incorporated herein by reference as a part of the
Agreement for all purposes; and
WHEREAS, pursuant to an ordinance (the "Bond Ordinance")
duly passed and adopted by the City Council, the City has
authorized, issued and sold revenue bonds in the aggregate
principal amount of $10,770,000 known as "City of Lubbock,
Texas, Electric Light and Power System Refunding Revenue
Bonds, Series 1983" (the "Bonds"), to refund, discharge and
make final payment of the principal of and interest on the
Outstanding Bonds; and
WHEREAS, upon the delivery of the Bonds, proceeds of
sale of the Bonds in the sum of $10,497,600 are to be used
immediately by the Bank to purchase United States Treasury
Securities -State and Local Government Series (the "Federal
Securities") in the principal amount of $10,497,600 and such
Federal Securities together with cash in the amount of
$71.55 shall be credited to and deposited into the "Escrow
Fund" to be held by the Bank in accordance with this Agreement;
and
WHEREAS, a list or description of the Federal Securities
to be purchased by the .. Bank and held for the account of the
Escrow Fund is attached hereto.as Exhibit B incorporated
herein by reference and made a· part of this Agreement for
all purposes; and
WHEREAS, the Federal Securities shall mature and the
interest thereon shall be payable at such times to insure
the existence of monies, together with other funds lawfully
available therefor, sufficient to pay the principal amount
of the Outstanding Bonds upon maturity or redemption prior
to maturity, apd the accrued interest thereon, as the same
shall become due in accordance with their terms as set forth
in Exhibit A attached hereto; and
WHEREAS, the City has completed all arrangements re-
quired for the purchase of the Federal Securities listed in
Exhibit B and the credit of the same to the Escrow Fund as
provided herein; and
WHEREAS, the Bank is a banking corporation organized
and existing under the laws of the United States of America
and possessing trust powers and is fully qualified and
empowered to enter into this Agreement; and
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WHEREAS, pursuant to a resolution adopted on May 12,
1983, the City Council approved and authorized the execution
of this Agreement in connection with the issuance of the
Bonds and the refunding of the Outstanding Bonds; and
NOW, THEREFORE, in consideration of the mutal agree-
ments herein contained, and to secure the payment of the
principal of and the interest on the Outstanding Bonds as
the same shall become due, whether upon maturity or redemp-
tion prior to maturity as the case may be, the City and the
Bank hereby mutually undertake, promise and agree for them-
selves and their respective representatives and successors,
as follows:
SECTION 1: There is hereby created by the City with
the Bank a special segregated and irrevocable,trust fund
designated "SPECIAL 1983 CITY OF LUBBOCK REFUNDING BOND
ESCROW FUND" (hereinafter called the "Escrow Fund") for the
benefit of the holders of the Outstanding Bonds, and, im-
mediately following the deli very of the Bonds, the City
agrees and covenants to cause to be deposited with the Bank
the following:
$10,497, 600 . 00
71.55
$ 16,000•00
for the purchase of the Federal Securities
listed in Exhibit B to be held for the
account of the Escrow Fund;
for deposit _in the Escrow Fund as
a beginning cash balance; and
to pay fees and charges of the Bank
for the administration of this Agreement
and paying agents charges for the
Outstanding Bonds as provided in
Section 13 hereof.
The Bank hereby accepts the Escrow Fund and further
agrees to receive said moneys, apply the same as set forth
herein, and to hold the cash and Federal Securities deposited
and credited to the Escrow Fund for application and disbursement
for the purposes and in the manner provided in this Agreement.
··sECTION . 2: The City hereby represents.: that the cash
and Federal Securities specified in Section 1·hereof to be
deposited to the credit of the Escrow Fund is sufficient to
pay the principal of and interest on the Outstanding Bonds
as the same shall become due and payable, and such Outstanding
Bonds, and the interest thereon, are to mature and be paid
at the times and in the amounts set forth and identified in
Exhibit A attached hereto.
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SECTION 3: The Bank agrees that all cash and Federal
Securities held in the Escrow Fund shall be and is hereby
irrevocably pledged to the payment of the principal of and
interest on the Outstanding Bonds which will mature and
become due on and after the date of this Agreement and such
principal of and interest on the outstanding Bonds shall be
paid in the manner provided by the Act, this Agreement and
the ordinance authorizing the Outstanding Bonds with funds
initially deposited and to be received from maturing principal
and interest on the Federal Securities in the Escrow Fund.
SECTION 4: If, for any reason, the funds on hand in
the Escrow Fund shall be insufficient to make the payments
set forth in Exhibit A attached hereto, as the same becomes
due and payable, the City shall make timely deposits in the
Escrow Fund, from lawfully available funds, additional funds
in the amounts required to make such payments. Notice of
any such insufficiency shall be immediately given by the
fastest means possible, but the Bank shall in no manner be
responsible for the City's failure to make such deposits.
SECTION 5: The Bank at all times shall hold said
Federal Securities and moneys in the Escrow Fund at all
times as a specia·1 and separate trust fund for the benefit
of the holders of the Outstanding Bonds, wholly segregated
from other moneys and securities on deposit with the Bank;
shall never commingle . .-said Federal Securities and moneys
with other moneys or securities.of the Bank; and shall hold
and dispose of the assets therein only as set forth herein.
Nothing herein contained shall be construed as requiring the
Bank to keep the identical moneys, or any part thereof, in
said Escrow Fund, if it is impractical, but moneys of an
equal amount, except to the extent such are represented by
the Federal Securities shall always be maintained on deposit
in the Escrow Fund by the Bank, as trustee; and a special
account evidencing such facts shall at all times be maintained
on the books of the Bank.
SECTION 6: The Bank shall from time to time collect
and receive for the credit of the Escrow Fund the principal
of and interest on the Federal Securities as they respectively
mature and become due and credit the same to the Escrow
Fund. As set forth in Exhibit B, the proceeds received on
the maturing principal and interest of the Federal Securities
shall be made available to pay the principal of and interest
on the Outstanding Bonds in accordance with Exhibit A attached
hereto.
SECTION 7: Except as provided in Section 8, moneys in
the Escrow Fund will be invested only in the Federal Securities
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listed in Exhibit Band neither the City nor the Bank shall
reinvest any moneys deposited in the Escrow Fund unless
hereafter specifically authorized by law. The Bank shall
maintain the Escrow Fund until the date upon which said
Outstanding Bonds are fully paid as to principal and interest
whereupon the Barut shall sell or redeem any Federal Securities
remaining in the Escrow Fund and shall remit to the City the
proceeds thereof and accrued interest thereon, together with
all other monies, if any, then remaining in the Escrow Fund.
SECTION 8: At the direction of the City, the Bank
shall redeem the Federal Securities and reinvest the proceeds
thereof, together with other monies held in the Escrow Fund
provided that the City delivers to the Bank the following:
(1) an opinion by an independent certified public
accountant that after such reinvestment the principal
amount of substituted securities (which shall be non-
callable direct obligations of the United States of
America), together with the interest thereon and other
available moneys, will be sufficient to pay, as the
same become due in accordance with Exhibit A, the
principal of, and interest on, the Outstanding Bonds
which have not previously been paid, and
(2) an unqualified opinion of nationally recog-
nized municipal bond counsel to the ef feet that (a)
such investment will not cause the Bonds or Outstanding
Bonds to be "arbitrage bonds" within the meaning of
section l03(c) of the Internal Revenue Code of 1954, as
amended, and the regulations thereunder in effect on
the date of such investment, or otherwise make the
interest on the Bonds or the Outstanding Bonds subject
to Federal income taxation and (b) such reinvestment
complies with the Constitution and laws of the State of
Texas and with all relevant documents relating to the
issuance of the Outstanding Bonds and the Bonds.
SECTION 9: If at any time through redemption or cancella-
tion of the Outstanding Bonds there exists or will exist
excesses of interest on or maturing principal of the Federal
Securities in excess of the amounts necessary hereunder for
the Outstanding Bonds, the Bank may transfer such excess
amounts to or on the order of the City, provided that the
City delivers to the Bank the following:
(1) an opinion by an independent certified public
accountant that after the transfer of such excess, the
principal amount of securities in the Escrow Fund,
together with the interest thereon and other available
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monies, will be sufficient to pay, as the same become
due, in accordance with Exhibit. A, the principal of,
and interest on, the Outstanding Bonds which have not
previously been paid, and
.. (2) '.,'.an unqualified opinion of nationally .recog-·.
nized municipal bond counsel to the ef feet that · (a) . :
.s~~h.f .. tr~!!r. w.-;_;1,:,:1.1:ot cause _c.the _Bonds~ or .. the __ Outstanding ,,;;,,;::,
.. Bonds ... to.'.G.~~e · __ ·_c9•arbi:t,rage·. bonds"· within the meaning of · .. ,, .. .-_?.\:·.:'
s~ction ~l03(c).<>f the• Internal Revenue Code of >l954, as·•,<:_::/•-.,··
. ,amended,:_: ~:and . the regulations thereunder in .. effect on ...
the···date i6f such.transfer, or otherwise make the interest .··.
; on\the Bo.?ldS or;the. Outstanding Bonds subject . to ''Federal
in~ome taxa1=,iont :/arid (b)-such transfer compiies ·wj.th ,-
the Constitution ·: and laws ,of the state-of Texas· and•~•---
with a11 ·r~levant.documents relating to the issuance of
the Outstanding Bonds or the Bonds.
SECTION 10:· The Bank shall continuously secure the
monies .in the .Escrow Fund not invested in Federal Securities
if any, by a pledge of obligations of the . United States of
America;· in the par :or· face amount at least equal to the
principal . amount of said uninvested monies to the extent
such money is . ·not insured by the Federal Deposit . Insurance
Corporation. · ·· ·
, ... ;:
SECTION '11': "The ;°-Bank shall not be . liable or respon-·
sible -for any ,loss resulting from any investment made .in the
Federa1·securities.
SECTION 12: Should the Bank fail · to account for any
funds or the Federal Securities received by it for the
account of the City, such funds, Federal Securities shall be
and remain the property of the Escrow Fund and the City and
the holders of the Outstanding Bonds shall be entitled to a
preferred claim and shall have a first lien upon such funds,
Federal Securities enjoyed by a trust beneficiary. The
funds, Federal Securities received by the Bank under this
Agreement shall not be considered as a banking deposit by
the City and the Barut shall have no right or title with
respect thereto. Such funds and Federal Securities shall
not be subject to checks or drafts drawn by the City.
SECTION 13: The City agrees to pay the Bank for the
performance of services hereunder and as reimbursement for
anticipated expenses to be incurred hereunder t:.he amount of
$ 9325.00 and the Bank hereby agrees said amount is full
and complete payment for the administration of this Agreement.
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The City also agrees to pay the Bank, concurrently with
the deposit to the Escrow Fund, the sum of $ 6675.00
which amount represents the total charges for all paying
agents and co-paying agents for the Outstanding Bonds, and
the Bank hereby acknowledges and agrees that the foregoing
sum is and represents the total amount of compensation due
said.Bank for.said services, as well as the co-paying agent's
_charg~};,.:of.th~~-Citib,.~k,_ National Association,. Ne~L.York,. New ..
York· (co-paying _agent, for-the Outstanding .BondsJ;.and .the ··
Bank hereby agrees to pay,. assume · and be fully responsible
for the7payment>of ·any additional charges that maybe incurred
by the· Bank, . and_ the . Citibank, National Association, · New ·
York, .New York .representing paying agent•. s charges incurred
in relation to'the·outstanding Bonds. · -SECTION 14: ·Whenever under the ·terms of this Agreement
the performance date_of any provision hereof .shall fall on a
holiday of the Bank, the performance thereof on the next
successive business day of the Bank shall be deemed to be in
full compliance.
SECTION 15: Time shall be of the essence in the per-
formance of obligations from time to time .imposed upon the
Bank by :this Agreement. .
SECTION 16: In .. the event of any disagreement or con-
troversy hereunder or if conflicting demands or notices are
made upon Bank growing out of or relating to this Agreement
or in the event that the Bank in good faith is in doubt as
to what action should be taken hereunder; the City expressly
agrees and consents that the Bank shall have the absolute
right at its election to do either or both of the following
things:
(a) Withhold and stop all further proceedings in,
and performance of, this Agreement and of all instruc-
tions received hereunder.
(b) File a suit in interpleader and obtain an ·
order from a court of appropriate jurisdiction requir-
ing all persons involved to interplead and litigate in
such court their several claims and rights among them-
selves.
In the event the Bank becomes involved in litigation in
connection with this Agreement, the City agrees to indemnify
and save the Bank harmless from all loss, cost, damages,
expenses and attorney fees suffered or incurred by the Bank
7
No Text
as a result thereof. The obligations of the Bank under this
paragraph shall be performable at the office of the Bank in
Lubbock, Texas.
The Bank may advise with legal counsel in the event of
any dispute or question as to the construction of any of the
provisions hereof or its duties hereunder, and it shall
incur no liability and shall be fully protected in acting in
accordance with the opinion and instructions of such counsel.
SECTION 17: Promptly after December 31 of each calendar
year, commencing with the year 1983, so long as the Escrow
Fund is maintained under this Agreement, the Bank shall
forward by letter to the City, to the attention of the City
Manager, a statement in detail of the Federal Securities and
monies held, and the current income and maturities thereof,
and the withdrawals of money from the Escrow Fund for the
preceding calendar year.
SECTION 18: Any notice, authorization, request or
demand required or permitted to be given hereunder shall be
in writing and shall be deemed to have been duly given when
mailed by registered or certified mail, postage prepaid
addressed as follows:
CITY OF LUBBOCK, TEXAS:
City of Lubbock, Texas
P. o. Box 2000
Lubbock, Texas 79457
Attention: City Manager
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
Texas Commerce Bank, N. A.
P. o. Box 841
Lubbock, Texas 79408
Attention: Corporate Trust Department
The United States Post Office registered or certified mail
receipt showing delivery of the aforesaid shall be conclu-
sive evidence of the date and fact of delivery.
Any party hereto may change the address to which notices
are to be delivered by giving to the other parties not less
than ten (10) days prior notice thereof.
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SECTION 19: Upon the taking of all the actions as
described herein by the Bank, the Bank shall have no further
obligations or responsibilities to the City or to any other
person or persons in connection with this Agreement.
SECTION 20: The Bank shall not be liable for any act
done or step taken or omitted by it or any mistake of fact
or law or for anything which it may do or refrain from
doing, except for its gross negligence or its willful default
in the performance of any obligation imposed under it hereunder.
The Bank shall not be responsible in any manner whatsoever
for the recitals or statements ·contained in the Outstanding
Bonds or the Bonds or any proceedings taken by the City in
connection therewith.
SECTION 21: The Bank shall have no responsibility to
any persons in connection herewith except those specifically
provided herein. The City will not commence any action
against the Bank at law, in equity or otherwise as a result
of any action taken or thing done by the Bank in compliance
with this Agreement.
SECTION 22: The Bank shall not be responsible or
liable to any person in any manner whatever for the suffi-
ciency, correctness, genuineness, effectiveness, or validity
of the deposits made pursuant to this Agreement, or for the
form or execution thereof, or for the identity or authority
of any person making or execu~ing such deposits. This
Agreement is between the City:· and the Bank only and in
connection therewith ~e Bank is authorized by the City to
rely upon the representations of the City with respect to
this Agreement and the deposits made pursuant hereto and as
to this City's right and power to execute and deliver this
Agreement, and the Bank shall not be liable in any manner as
a result of such reliance. The duty of the Bank hereunder
shall only be to the City and the holders of the Outstanding
Bonds. Neither the City nor the Bank shall assign or at-
tempt to assign or transfer any interest hereunder or any
portion of any such interest. Any such assignment or at-
tempted assignment shall be in direct conflict with this
Agreement and be without effect.
SECTION 23: This Agreement shall inure to the benefit
of and be binding upon the Bank and the City and their
respective successors.
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IN WITNESS WHEREOF, the City Council of the City of
Lubbock, Texas, has caused these presents to be executed by
the Mayor and attested by the City Secretary and its corporate
seal to be affixed hereto, and the Texas. Commerce Bank,
National Association, Lubbock, Texas, has caused these
presents to be signed in its corporate name by one of its
Vice Presidents, sealed with its corporate seal and duly
attested by an authorized signer, all as of the date and
year above written.
-ATTEST:
H-~ ~-~y scretr
(City Seal)
ATTEST:
-( Bank .s~al )
CITY OF LUBBOCK, TEXAS
·~~
TEXAS COMMERCE BANK, NATIONAL
ASSOCIATION
10
Lubbock, Texas
AYLAND
SENIOR VICE PRESIDENT
SENIOR DPERA TIONS OFFICER
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' $9,;'000t0,00 CITY OF LUBBOCK, TEXAS
P-:~ECTRiC LIGHT AND POWER SYSTEM -REVENUE BONDS
SERIES 1981 DATED, AUGUST 15, 1981
BONDS OUTSTANDING AS OF MAY 15, 1983
Delivery Date 05/15/83 ,..
Date
10/15/83
04/15/84
l,.Q/15/84
04/15/85
10/15/85
04/15/86
10/15/86
04/15/87
1....,/15/87
04/15/88
10/15/88
04/15/89
10/15/89
04/15/90
IJ/15/90
04/15/91
10/15/91
J4/15/92
10/15/92
JA/15/93
10/15/93
)4/15/94
10/15/94
04/15/95
10/15/95
~./15/96
10/1~/96
::>4/15/97 ·
10/15/97
:>4/15/98
10/15/98
~/15/99
10/15/99
)4/15/00
10/15/00
)4/15/01
l~/15/01
)-s/15/02
Principal Coupon Interest
558,675.00
558,675.00
527,737.50
527,737.50
496,800.00
496,800.00
465,862.50
465,862.50
434,925.00
434,925 .oo
403,987.50
403,987.50
373,050.00
3 7 3 ., 0 5 0 • 0 0
343~800.00
343,800.00
317,362.50
317,362.50
290,362.50
290,362.50
262,912.50
26~,912.50
450,000.00
450,000.00
450,000.00
450,000.00
450,000.00
450,000.00
~so,000.00
450,000.00
450,000.00
450,000.00
450,000.00
450,000.00
450,000.00
450,000.00
450,000.00
450,000.00
450, ooo ._oo
450,000.00
450,000.00
rotals: s,sso,000.00
13.750
13.750
13.750
13.750
13.750
13.750
13.000
11.750
12.000
12 ._200
12.400
12.600
12.800
13.000
13.100
13.200
13.250
13.250
13.250
-235,012.50
235,012.50
206,662.50
206,662.50
177,862 .so
177,862 .so
148,612.50
148,612.50
119,137.50
119,137.50
89,437.50
89,437.50
59,625.00
59,625.00
29,812.50
29,812.50
~ess Accrued From 04/15/83:
qet Cost:
11,083,275.00
93,112.50
10,990,162.50
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Talues From Dated Date:
Average Interest Rate
Bond Years
Average Life
>ay Basis is 30/360 ,,..
12.963
85,soo.ooo
10.000
EXHIBIT A
Total
558,675.00
1,008,675.00
527,737.50
977,737. so·
496,800.00-
946, 80 o .·oo
465,862. so
915,862.50
434,925.00
884,925.00
403,987.50
853,987.50
373,050.00
823,050.00
343,800.00
793,800.00
317,362.50
767,362.50
290,362.50
740,362.50
262,912. so
712,912.50
235,012.50
685,012.50
206,662.50
656,662.50
177,862.50
627,862.50
148,612.50
598,612.50
119,137.50
569,137.50
89,437.50
539,437 .so
59,625.00
509,625.00
29,812.50
479,812.50
19,633,275.00
93,112.50
19,540,162.50
Annua
--1,567,350.0
1,505,475.0
''"'-· "I ,_. 1 , 4 4 3 , 6 0 0 • 0
1,381,725.0
1,319,850.0
1,257,975.0
1,196,100.0
1,137,600.1)
1,084,725.0
1,030, 7.2 5. 0
975,825.0
920,025.0
863,325.0
805,725.0
747,225.0
688,275.0
628, 875 .. _0
569,250.0
509,625.0
19,633,275.0
(
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I I I I I I I I I I I I r I l ) ) } C ITV OF LUBBOCI< D•llv•ry Date 06/15/83 ------Het Dah Requ I r .. ,.nts Principal 06/15/83 -71,55 . 10115183 558,675,00 275,900 04115/84 1,008,675,00 557,300 I 0115/84 527,737,SO 114,500 04/1'185 . 977,737,50 569,500 10/1:1/85 496,800,00 113,100 04/15/86 946,800,00 567,900 t O/HS/86 -465,862,50 111,400 0•115/87 915,862.50 566,200 10115/87 434,925,00 109,700 04115/88 884,925,00 564,300 I 0115/88 403,987,50 I 07 ,600 04/15/89 853,987.50 562,100 I O/t:'189 373,050,00 105,200 04115/90 823,050,00 559,800 I 0115190 343,800.00 104,300 04/15/91 5,743,800,00 5,508,800 TOTALS 15,759,603,45 10,497,600 Vteld on Het SLG Receipts• 8,54133?. Beginning Cash • 71 ,55 -Pr•pared 8y-Rausch•r Piere• Retsn«s, Inc, Yall•Y Bank Center, Suite 3450 Pho•nlx, Arizona 85073 tlay I 0, 1983 ) ) ) l ) ) ) . ,, • . State and Local Covcrn••nt Purchase• ------O,?. Yield Hd SLC P•rlod Ending Coupon lnt.«r••t R«lnv«stiaents R•c•ipts Balance 71.55 8,00 282,784,39 558,684.39 80.94 8,25 451,454,99 1,008,754.99 160,93 8,50 413,140,61 527,640.61 64,04 8,61 408,274.36 977,774.36 100.90 8,61 383,757.38 496,857,38 158,28 8,61 378,888,42 946,788,42 146,70 8,61 354,440,32 465,840,32 124,52 8,61 30,644.55 915,844,55 106,57 8,60 325,269.64 434,969,64 ts,. 21 8,55 320,552.54 88•-. 852, 54 78,75 8,53 296,429,71 404,028, 71 119, 96 8,54 291,, 839, 57 853,939.57 72,03 8,55 267,837.90 373,1137,90. 59,93. 8,55 263,340.60 823,140,60 150.53 8,'5 239,409, 15 343,709,15 59,68 8,SJ 234,950,32 5,743,750,32 IO, 00 5,262,013,45 0 15,759,613,45 f\; .,. ~ ~ 0.,. "' . ,j "f G7
,..
) } ) ) ) ) ) STATE AHD LOCAL GOYERHMEHT IHYESTMEHTS CITV OF LUBBOCK . PRINCIPAL AMOUNT INTEREST RATE ISSUE DATE t1ATURITV DATE 275,900 8.00 06/,5183 10/15/83 557,J00 8.25 06/15/83 04/15/84 114.,500 8,50 06/15/93 1 0/15/84 · 569.,500 8.61 06/15/83 04/15/85 113.,100 8,61 06/15/83 1 0/15/85 567,900 8.61 06/15/83 04/15/86 111,400 8.61 06/15/83 10/15/86 566,200 8,61 06/15/83 04/15/87 109,700 8.60 06/15/83 10/15/87 564,300 .. 8,55 06/15/83 04/15/88 107,600 8.53 06/15/83 10/15/88 562,100 8.54 06/15/83 04/15/89 105,200 8,55 06/15/83 10/15/89 559,800 8.55 06/15/83 04/15/90 104,300 8.55 06/15/83 10/15/90 5,308,800 8.53 06/15l83 04/15/91 TOTAL, 10,497,600 ' l FIRST IHT PYNT DATE 10/15/83 10/15/83 10/15/93 10/15/83 10/15/83 10/15/83 10/15/83 1 0/15/83 10/15/83 10/15/83 10/15183 10/15/83 1 0115/83 10115/83 ) ) SECURITY TVPE CERTIFICATE CERTIFICATE NOTE NOTE HOTE HOTE NOTE HOTE HOTE HOTE HOTE NOTE HOTE HOTE NOTE NOTE . ,i . ) • ·1 . ... •· .
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--FORM PD '1U • O.ot. of·tfM TIUIU,Y ,._ 8ur. of'tlM Public Dabt (Rev. July 1977)
SUBSCRIPTION FOR PURCHASE ANO ISSUE Of-
U.S. TREASURY SECURITIES -
STATE ANO LO~AL GOVERNMENT SERIES
To: Federal Reserve Bank or Branch at __ D_a_l_l _a_s ______________________ _
1. Pursuant to the provisions of Department of the Treasury Circular, Public: Debt Serles No. 3-72, current revision, the ur.tl::;i'Slgm
hereby subscribes for the purchase of the following securities: ·
a. a United States Treasury CertJf'acates of Indebtedness -State and Local Govemment Series
(SCHEDULE 1) · 833 200 • · TOTALAMOUNT$ ____ , ____ _
b. 8 United States Treasury Notes -State and Local Government Series
(SCHEDULE 2)
TOTALAMOUNT$_9_,_6_6_4,_4_0_0_..,_ __
C. • United States Treasury Bondi -State and local Gowemment Series ·-,. (SCHEDULE 3) -0-TOTAL AMOUNT$ ________ _
GRANO TOTAL $ 10,497,600
as described on the attached schedules, which are Incorporated by reference to this subscription, to be used as entries on th
books of the Bureau of the Public Debt, Department of the Treasury.
2. The undersigned certifies that the total investment (1) consists only of the proceeds of obligations described in Section 103(,
of the Internal Revenue Code, and 2 is not more nor less, within authorized multiples $1,000 minimum and increments ,
$ 0 over such amount), directly subject to yield restrictions under Section 103(c) of the Code1 and the regulations issue
thereunder, except for any portion thereof required for a payment due less than 45 days from the date settlement is madtt.!!
the securities subscribed for. -
J. The undersigned requests that book-entry accounts be established for:·
Name of owner ·city of Lubbock, Texas
4. The undersigned:
a. Q submits payment in full herewith for the above securities, as shown below. .
b. ~ requests that issuance be deferred until 6-15-83 (not to exceed by more than 60 days the date ,
which this subscriptiQ!!_ Is received at a Federal Reserve Bank or Branch or, where mailed, by the stamp date appearing c,n t
f", registered or certified ma~velope in which It is received), and agrees to make payment on that date. ---. !l. The undersigned further certifies that the following official(s), by tltle(s), are authorized, subject to the provisions of the abc
circular, to request redemption prior to maturity of the securities (if no one has been so authorized, enter the word .. none").
-none-
Dated this 12th day 0 , __ M_ay ______ ,19 £ CITY OF LUBBOCK, TEXAS
(806) -762-6411
(The Issue date of the account will be the date specified In this subscription, provided payment therefor in readily avallablt! fu1
Is received herewith or within the time limitation specified above. Where payment is submitted separately, it should be accompan
by a copy of this subScription.) Name of Institution Texas Colll?lerce Bank -Lubbock
r.:J Check enclosed Lubbock
>00 Charge our reserve a/con 6-15-83 City-------...... ~-------,...,:;;;'---~-• CDate) Other
ACCOUNT NUMBERS
C OF I'S: From:-------Through:-------
NOTES: From:-------Through: ______ _
BONDS: From: -------Through:-------
Applicable Interest
Rate Table No.
Issue Date
FOR USE OF THE DIVISION OF SECURITIES OPERATIONS
ACIPrOYed
Date credited to Tre
Acct. (cannot N sut
quent to Issue [?ate)
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FOAM PO 4144•1 O.pt. ot the Treuury Bur. ol tne Public Debi SCHEDULE l pa_l_oFL SCHEDULE,oFrUNITED STATES TREASURY CERTIFICATES OF ltJDEBTEDNESS-ST ATE AND LOCAL GOVERNMENT SERIES The United Stales Treasury Certificates of lndebtedness••State and Local Government Series subscribed for on the FORM PD 4144 lo which this schedule is allached and incorporated, are'requested to be is~ued and held in book-e'ltry accounts on the books of the Department of the Treasury, u follows: NAME ANO ADDRESS OF OWNER ! NAME AND ADDRESS OF SUBSCRIBER'S BANK ,. I City of Lubbock, Texas· Texas Commerce Bank -Lubbock P. O. Box 2000 ,. ' P. O. Box 841 Lubbock, Texas 79457 Lubbock, Texas 79408 ,,, . ..,, ... \ EMPLOYER IDENTIFICATION N0.--1. .5_. -..[. JL JL~ .5,_ .2_ JL THE UNDERSIGNED REQUESTS THAT PAYMENT OF PRINCIPAL AND INT~REST AT MATURITY BE MADE FOR THE ACCOUNT OF THE OWNER AS BELOW: Ii;) CREDIT RESERVE ACCOUNT OF: Texas Co111J1erce Bank -Lubbgck 0 MAIL CHECK TO: P. O. Box 841 OR [u66oclc, Texas 79408 . NOTE: The interest rate on each certificate may not exceed the maximum interest rate for Treuury securities of comparable terms of maturity, as shown in the Treawry rate table applicable to this iuuance. The maturity dates specified must be not less than 45 days nor more than one year from dale of Issue. ACCOUNT NUMBERS PRINCIPAL AMOUNT INTEREST RATE fASSIGNEO BV FRBI $275.900 557 300 · TOTAL $833,200 NAME OF STATE OR LOCAL GOVERNMENT BODY: • CJ TY Qf I I IBBQCK, TEXAS _ .. J;~~:,1~ ( ( ( ( 8.00% R ?!1i l ISSUE DATE MATURITY DATE FOR TREASURY DEPARTMENT USE ONLY 6-15-83 10-15-83 fi-1;-A'-l 4-1!1-A4 . FOR FRB OR BRANCH USE ONLY: ACCOUNT NOS. ASSIGNED ev _____ FRB ________ _ FOR TREASURY DEPARTMENT USE ONLY: ACCOUNTS ESTABLISHED ev _____ ON ________ --i ( ( ( ( ( {
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FORM PO 4l•U;2 O.pt. of lhe T,c,sury Bur. of the Public Debi SCHEDULE OF UNITED STATES TREASURY NOTES-STATE P.ND LOCAL GOVERNMENT SERIES SCHEDULE 2 PG_l_oF _2_ The United States Treasury Notes-•State and Local Government Serles subscribed for on the FORM PO 4144 to which this schedule Is attached and Incorporated, are re• quested to be issued and held in book-entry accounts qn the books of the Department of the Treasury, as follows: NAME AND ADDRESS OF OWNER ,. NAME AND ADDRESS OF SUBSCRIBER'S BANK , City of Lubbock, Texas Texas Convnerce Bank -Lubbock P. 0. Box 2000 P. O. Box 841 Lubbock, Texas 79457 •Lubbock, Texas 79408 EMPLOYER IDENTIFICATION NO . ..L ..i, --2. _Q_ _Q_ Jl. 2. _2._ _Q_ THE UNDERSIGNED REQUESTS THAT PAYMENT OF INTEREST, AND PRINCIPAL WHEN DUE, BE MADE FOR THE ACCOUNT OF THE OWNER AS BELOW: ~ CREDIT RESERVE ACCOUNT OF: 0 MAIL CHECK TO: Texas Convnerce Bank -Lubbock . P. 0. Box 841 OR [u66ocl<, Texas 79~08 NOTE: The interest rate on each note may not exceed the milxlrrium Interest rate for Treasury notes of comparable terms to maturity, as shown In the Treasury rate table ap-plicable to this iuuance. The maturity dates specified must be not less than one year and one day nor more than ten years from date of Issue. Interest wlll be paid on the deslg• nated first Interest payment date and semi-annually thereafter, the final six months Interest to be paid at maturity wll_h the prl~lpal. If the date for the first Interest payplent Is less than 45 days from the date of Issue, such payment may be delayed. ACCOUNT NUMBERS PRINCIPAL AMOUNT INTEREST RATE ISSUE DATE MATURITY DATE FIRST INT PYMT ·· FOR TREASURY DEPARTMENT !ASSIGNED BY FRBI DATE USE ONLY $ 114.500 8.50% 6-15-83 10-15-84. 10-15-83 569,500' 8.61 6-15-83 4-15-85 10-15-83 113,100 8.61 6-15-83 10-15-85 10-15-83 . . 567.900 8.61 6-15-83 4-15-86 10~15-83 111,400 8.61 6-15-83 10-15-86 10-15-83 566.200 8.61 6-15-83 4-15-87 10-15-83 ·, 109,700 8.60 6-15-83 10-15-87 10-15-83 564.300 8.55 6-15-83 4-15-88 10-15-83 107,600 8.53 6-15 ... 83 10-15-88 10-15-83 562,100 8.54 6-15-83 4-15-89 10-15-83 TOTAL $3,386,300 . • •NAME OF STATE OR LOCAL GOVERNMENT BODY: FOR FRB OR BRANCH USE ONLY: ····~~dil~ ~-{ ACCOUNT NOS. ASSIGNED ev _____ FRB _________ I FOR TREASURY DEPAfHMENT USE ON~ V: ACCOUNT( EST ABLISHEI( 3V _ ( _ON__.(_-:-__ -_-_,..._-_-_-_"'-_ _ _.
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FORM PO 4U4•2 Oept. of th• Tr•Hury Bur. ol' th• Publl~ Debt SCHEDULE 2 1 I SCHEDULE OF UNITED STATES TREASURY NOTES-STATE AND LOCAL GOVERNMENT SERIES P02.oF .2_ I The United Stales Treasury Notes--Slale and Local Government Serles subscribed for on the FORM PO 4144 to which this schedule is attached and lncorpon1led, are re• quested to be issued and held in book-entry_ accounts qn the books of the Department of the Treasury, as follows: · NAME AND ADDRESS OF OWNER City of Lubbock, Texas P. o. Box 2000 · Lubbock, Texas 79457 ·, ' EMPLOYER IDENTIFICATION NO 7 5 -6 0 0 0 5 9 0 . ·---------NAME AND ADDRESS OF SUBSCRIBER'S BANK Texas Commerce Bank -Lubbock P. 0. Box 841 . Lubbock, Texas 79408 THE UNDERSIGNED REQUESTS THAT PAYMENT OF INTEREST, AND PRINCIPAL WHEN DUE, BE MADE FOR THE ACCOUNT OF THE OWNER AS BELOW: l]}cREDIT RESERVE ACCOUNT OF=----~------0 MAIL CHECK TO._• _______________ _ Texas Commerce Bank -Lubbock P. 0. Box 841 QR Lubbock, Texas 79408 NOTE: The Interest rate on each note may not exceed the maxim.um Interest rate for Treasury notes of comparable terms to maturity, as shown In the TreHury rite table ap-plicable to this issuance. The maturity dates specified must be not less than one year and one day nor more than ten years from date of Issue. Interest will be paid on the desig• nated first interest payment date and semi-annually thereafter, the final six months Interest to be paid at maturity wll_h the prln~lpal. If the dale for the first Interest payJnenl Is less than 45 days from the date of issu·e, such payment may be delayed. · ACCOUNT NUMBERS PRINCIPAL AMOUNT INTEREST RATE ISSUE DATE MATURITY DATE FIRST INT PYMT · FOR TREASURY DEPARTMENT (ASSIGNED BY FRBt DATE USE ONLY $ 105,200· 8.55% 6-15-83 10-15-89 10-15-83 . 559,800 8.55 6-15-83 · 4-15-90 10-15-83 104,300 8.55 6-15-83 10-15-90 10-15-83 . . 5.508.800 8.53" 6-15-83 4-15-91 10-15-83 . ', TOTAL $6,27H,1UO . . . ' NAME OF STATE OR LOCAL GOVERNMENT BODY: FOR FRB OR BRANCH USE ONL V: . ~'~~~~·~ ACCOUNT NOS. ASSIGNED ev _____ FRB ________ ---1 FOR TREASURY DEPARTMENT U$E ONLY: ( { ACCOUNT!~STA8LISHE!1JY_ ( ON _________ -t
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CERT'IFICATI-ON
I, the undersigned, Chairman of the Board of the Board of
Directors of Texas Commerce Bank, National Association, ~ubbock,
hereby certify that the foregoing is a full, true and com-
plete copy of a resolution duiy adopted by the Board of
Directors of said company at a meeting duly called and held
on February 9, 1983, at which a quorum was present and acting
throughout. r · also certify that said Senior Vice President
and Senior Operations Officer, Tony Wayland, and Vice President
and Cashier, Edwin Schulz, are duly authorized vice presidents
of the above named bank, and are authorized to sign on its
behalf.
Texas Commerce Bank
oard, President,
Officer
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On motion by W. G. McMillan -and seconded by James L:·Latch, the following
resolution, authorizing execution of instruments was unanimously approved:
a agreements, ind ns rs,
cer 1 icates es, releases, satisfac-
1:.ions, settlements, petitions, schedules, accounts, af onds,
Undertakings .. and proxies. . ··. '. ,· ·c:\,;_ •
• " • " •• -. • 1 -~H •~ :• ~' ';., _,-:•.-::/;;_• •
BE IT: FURTHER RESOLVED, that in each instanc~ of the conveyance "Ji"~-;
real property or the release of lien thereon, the signature of the
authorized officer_ shall be attested, under the seal of this Associa-
tion, by the _Secretary, Cashier, or any Operations Officer thereof.
BE IT FURTHER RESOLVED, that ·the Chief Executive Officer, President,
Vice· President, Cashier, or Operations Officer, · or any one of them, •;_
is authorized to sign checks and drafts of the Association with the •·
~xception of checks and drafts ~ade in payments for expenses of the .
Association. The Chief .Executive·officer, President, Secretary and :
Cashier are hereby authorized.to sign checks and drafts issued.in
payment of expenses of the Association. -·.::-::--·:· ..
On motion by w. G •. .f,icMillan and seconded by James L.· Latch, the following
resolution authorizing officers to accept _trust a6counts and assets, 'to ~~
invest funds, and to sell and transfer Real Estate and Securities of
Fiduciary Accounts was unanimously approved:
BE IT RESOLVED, that the Chief Executive Officer, President and/or.
any Trust ,Officer of this Bank be and. each of them is hereby authori-
zed and empowered for and in the name and on behalf of the bank to .
undertake and do all such things as my be advisable in acquiring,
handling, administering, or otherwi.se disposing of any and all real
estate, stocks, bonds, or other securities or other type of property
for the account of, or belonging to ·the Bank, in its fiduciary capa-
city as Trustee, Executqr, administrator, Guardian, Agent, Escrow
Agent, or otherwise, and incidental thereto, that they and each of
them be further authorized and empowered to execute for and in t~e 5 ·
name and on behalf of this Bank all such endorsements, registration•
~ransfers, certificates, deeds, deeds of trust, security _agreements;_
assignments, affidavits, releases or other documen~s as may be nece
sary, ~equired, or appropriate to effect the foregoing.
BE IT FURTHER RESOLVED, that in each instance of the conveyance of·
real property -or the release of lien thereon the signature of the ,
Chief Executive Officer, President, and/or any Trust Officer of thin·•
Bank shall b~ attested, under the seal of this Bank, by the secreta •
the ~ashier, or any Operations Officer thereof.
BE IT FURTHER RESOLVED, that Walter J. Taylor and Jeanelle Ward bc0 , •• 1 :
dulv authorized to accept new fiduciary accounts, pending the appr _.,._,
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REPORT OF CERTIFIED PUBLIC ACCOUNTANT
THE STATE OF TEXAS
COUNTY OF LUBBOCK
§ s s
I, the undersigned, of the firm of Mason, Nichels &
Warner, Certified Public Accountants, Lubbock, Texas, DO
HEREBY MAKE the following report:
1. That the total gross revenues, operation and maintenance
expenses and net revenues from the operation of the Electric
Light and Power System of the City of Lubbock, Texas, for
the fiscal year ending September 30, 1982, as shown by the
City's financial records, are as follows:
Gross
Revenues
$41,689,735
Maintenance and
Operation Expenses
$33~332,824
Net
Revenues
$8,356,911
2. That, based on the audit of the financial records of
the City's Electric Light and Power System for the fiscal year
ending September 30, 1982, the net revenues of said Power
System are equal to at lea~t one and one-half (1-1/2) times
the average annual principal and interest requirements of
all bonds which will be secured by a· first lien on and
pledge of the net revenues of the System which will be
outstanding after the issuance of the proposed "CITY OF
LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REFUNDING
REVENUE BONDS, SERIES 1983", dated May 15, 1983, and, further,
that said net revenues are equal to at least one and one-
fifth (1-1/5) times the maximum annual principal and interest
requirements of all such bonds as will be outstanding upon
the issuance of the aforesaid Series 1983 Bonds.
WARNER
By
d SWORN TO AND SUBSCRIBED BEFORE ME, this the /c,? day
of May_, 1983.
Notary Public, State of Texas
-, -(Notary Seal) My Commission Expires: /0 -/o -tP.S-
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THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
GENERAL CERTIFICATE
s ... s s -s s
WE, the undersigned, Mayor and City Secretary-Treasurer,
respectively, of the City of Lubbock, Texas, DO HEREBY
CERTIFY as follows:
1. Relative to No-Default.
That the City of Lubbock, Texas, is not in default as to
any covenant, condition or obligation cont·ained in the ordinances
authorizing the issuance of the outstanding "CITY.OF LUBBOCK,
TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REVENUE BONDS", SERIES
//
1964, dated.March 15, 1964, SERIES 1965, dated March 15, 1965,
SERIES 1973, dated July 15, 1973, SERIES 1975, dated March 15, 1975,
SERIES 1975-A, dated September 15, 1975, SERIES 1976, dated
April 1, 1976 or SERIES 1981, dated August 15, 1981; and
there is on hand in the special Fund created and established
for the payment and security of the aforesaid bonds the amounts
now required to be on deposit therein, to wit:$ 409.l";l~~-~o
in the Special Electric Light and Power System Revenue Bond
Retirement and Reserve Fund, of which amount the sum of $ t ,r~ 7tJ 7. e,o
represents the reserve por~ion thereof. ;,
2. Relative to Nonencumbrance-. ·
That, save and except for the pledge of the income and revenues
of the City's Electric Light and Power System to the payment of
the principal of and interest on the outstanding "CITY OF LUBBOCK,
TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REVENUE BONDS", SERIES 1964,
dated March 15, 1964, SERIES 1965, dated March 15, 1965, SERIES
1973, dated July 15, 1973, SERIES 1975, dated March 15, 1975,
SERIES 1975-A, dated September 15, 1975, SERIES 1976, dated
April 15, 1976 and "CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND
POWER SYSTEM REVENUE BONDS, SERIES 1981", dated August 15, 1981
(until the pledge securing the payment of said Series 1981 Bonds
has been defeased by the proposed "CITY OF LUBBOCK, TEXAS, ELECTRIC
LIGHT AND POWER SYSTEM REFUNDING REVENUE BONDS, SERIES 1983", dated
May 15, 1983) and the proposed "CITY OF LUBBOCK, TEXAS, ELECTRIC
LIGHT AND POWER SYSTEM REFUNDING REVENUE BONDS, SERIES 1983",
dated May 15, 1983, said income and revenues of said System have
not been pledged or hypothecated in any other manner or for any
other purpose; that the above bonds evidence the only lien,
encumbrance or indebtedness of said System or against the income
and revenues of such System.
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3. Relative to Income and Revenues.
That the following is a schedule of the gross receipts,
operating expenses and net revenues of the City's Electric Light
and Power System for the years stated:
Fiscal Year Gross Operating Net
Ending 9-30 Revenues Expenses Revenues
1978 $23,072,509 $17,355,243 $5,717,266
1979 24,445,824 20,077,479 4,368,345
1980 29,891,540 24,870,851 5,020,689
1981 34,698,116 30,393,827 4,299,289
1982 41,689,735 33,332,824 8,356,911
4. Relative to UtilitI Properties.
That the City of Lubbock, Texas, has owned and operated
its Electric Light and Power System since the acquisition thereof
by said City in the year 1916, said System currently providing
electricity to approximately 34,610 customers.
That, as of this date, no question is pending and no proceedings
of any nature have been instituted in any manner questioning
the City's right and title to said utility properties or its
authority to operate the same.
5. Relative to Electric Rates.
That the current monthly rates and charges for electricity
provided by the City's Electric Light and Power System are
as shown in Exhibit A attached hereto, which is incorporated
herein by reference and made a part of this certificate for
all purposes.
6. Relative to Sinking Funds.
That none of the "CITY OF LUBBOCK, TEXAS, ELECTRIC
LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES 1981", dated
August 15, 1981 have ever been held or purchased for the
account of the special Funds created and maintained for the
payment and security of said bonds and none of said bonds
are currently owned or have any of the same ever been purchased
or held for any account or fund of the City.
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7. Relative to City Officials.
That certain duly qualified and acting officials of the
City of Lubbock, Texas, are as follows:
BILL MC ALISTER
ALAN HENRY
EVELYNE. GAFFGA
JOHN C. ROSS, JR.
LARRY J. CUNNINGHAM
J. ROBERT MASSENGALE
·-MAYOR
MAYOR PRO TEM
CITY SECRETARY-TREASURER
CITY ATTORNEY
CITY MANAGER
ASSISTANT CITY MANAGER
FOR FINANCIAL SERVICES
8. Relative to Incorporation.
That the City of Lubbock, Texas, is incorporated under
the General Laws of the State of Texas and is operating
under the Home Rule Amendment to the Texas Constitution,
Section 5, Article XI, as amended in 1912; the City Charter
was originally adopted at an election held December 27,
1917, and said Charter has not been amended or revised in
any respect since January 24, 1967, the date of the last
Charter Amendment Election.
WITNESS OUR HANDS AND THE SEAL OF THE CITY OF LUBBOCK,
TEXAS, this the 12th day of May, 1983.
(City Seal)
&
Mayor.,_ City
RAD~,.,,
Texas
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EXHIBIT A
ELECTRIC RATES
The City Council sets electric rates for both Lubbock Power and Light . and Southwestern Public Service. Rates are the same for both $ystems. _The presen~ rates went into effect on August 1,
1980, and are set forth below. :. :·, . . .
Rates for Service Furnished ·in City ~ •• The following rates shall be charged for electric
service furnished in the City according to classifications herein set out, by all persons,
firms or corporations engaged in furnishing such electric power service to the public, includ-
1-ftg electric service furnished by Lubbock Power and Light; provided, however, the net charge per kilowatt hour, as specifically set out hereinafter, shall be increased or decreased 0.0067 cent per KWH for each 0.5 cent increase or decrease, or major fractions thereof, in the cost of
fuel de 1 ivered at Lubbock Power and Light generating stations, above or be low 21 cents per
1,000,000 BTU. The cost of fuel shall be determined as follows:
1. Natural Gas: Per thousand cubic feet i 1,000,000 BTU during the second month preceding
month of service. ·
2. Fuel Oil: Cost per 1,000,000 BTU based on a s1x month moving average through the end of the next prior month; by ~he last i~ first out inventory cost method.
Residential Service
Apelicable: To residential customers for electric service used for domestic purposes in
pr1vate residences and separately metered individual apartments when all service is supplied at
one point of de 11 very, and measured through one . k i1 owatt hour meter, where faci 1i ti es of adequate capacity and suitable voltage are adjacent to the premises to be served. Single pha.se
motors not to exceed 10 horsepower, individual capacity, may be served under this rate.
Territory: Lubbock, Texa.s.
Rate: Service Availability Ch~rge: $5.10 per month, which includes 30 KWH per month;
All KWH used per month in excess of 30 KWH i 2.62t per KWH
Fuel Cost Adjustment: As above provided.
Total Electric Living Service
When customer has in regular use 1) permanently . installed space heating equipment of an
aggregate rated capacity of 5 kilowatts or more, excluding bathroom heaters and 2) a permanent-
ly installed 240 volt, 30 gallons or greater, storage type water heater of not greater than 5.5 kilowatts, individual rated capacity, then, b;lling during the winter months will be the first
500 KWH at the regu1ar rate, and all additional KWH at l.15t per KWH. Billing during the sunmer
months will be the first 500 KWH at the regular rate, the next 500 KWH at 1.15¢ per KWH and al1 additional KWH at the regular rate.
Winter Months: The billing month of November to May, inclusive.
Fuel Cost ·Adjustment: As above provided. -
Conditions and Re1ulations: Water heating equipment served on this rate shall be of insulated
storage type bear ng the approval of the Underwriter's Laboratories, Inc., and shall have a demand of not greater than 5.5 kilowatts, individual capacity. Space heating equipment and the
installation of the equipment shall be subject to the approval of the supplying utility. A
customer must have permanently installed and in regular use space heating equipment having a total connected load of not less than S kilowatts, excluding bathroan heaters.
Character of Service: The voltage and characteristics of equipment applied shall meet require-
ments of the supplying utility. . .
Minimum: $5.10 per month.
Comnercial Service
Applicable: To all conmerc1al places of business, including stores, shops, factories, ·ware-houses, hotels, lodges, churches, apartment houses on one meter, garages and filling stations.
Territory: Lubbock, Texas.
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E!!ll All energy used shall be billed in accordance with the following rate:
Service Availability Charge
First 1,000 KWH used per month
Next 4,000 KWH used per month
Next 15,000 KWH used per month. Additional KWH used per month
Sl0.00 per month
3.70¢ per KWH
2.91¢ per KWH
2.01¢ per KWH
1. 21¢ per KWH
·Discount: Where primary metering is used, l°" will be deducted on the above base rate portion
of all bills except minimum monthly bills, provided that primary metered load is greater than secondary metered load. The Fuel Cost Adjustment portion of a bill is not subject to the 1°"
discount.
Fuel Cost Adjustment: As above provided.
Charact~r of Service: If metered on secondary side of distribution transformers, lighting
service may be either 120/140 volt, 3 wire single phase, or 120 volt, 2 wire single phase. If
polyphase service is required, it shall be 3 phase, 240 volts unless otherwise specified.
Where primary metering is used, service supplied will be the primary voltage serving the area, single or polyphase, as the case may require.
Minimum: $10.00 per month.
Schools
Applicable: To all institutions whether private, parochial or public, engaged in providing instruction or education, including elementary schools, Junior high schools, high schools, and
colleges or universitites. ·
Rate: Shall be the same as established for co11111ercial places of business, above; provided however, that where such schools and school facilities are operated under one authority or
entity or as one district, but at several locations within the City, the consumption at all such
locations may be added together and the authority, entity or district billed as if all such consumption was on one meter. ·
Fuel Cost Adjustment: As above provided.
Character of Service: If metered on secondary side of distribution transformers, lighting
service may be either 120/240 volt, 3 wire single phase, or 120 volt, 2 wire single phase. If
polyphase service is required, it shall be 3 pha_se, 240 volts, unless otherwise specified. Where primary metering is used, service suppli~d will · be primary voltage serving the area, single or polyphase as the case may require.
Discount: Where primary metering is used, l°" will be deducted the above base rate portion of .
all bills except minimum monthly bills, provided that primary metered load is greater than secondary metered load. The fuel cost adjustment portion of a bill is not subject to the l°" discount.
Irrigation Power Service
Applicable: To power service for a well used for irrigation of crop and/or pasture land.
Service to be furnished under contract. Not applicable to wells used for domestic house service.
Territory: Lubbock, Texas.
Character of Service: Service shall be 240 volt single phase or 240 volt three phase unless otherwise specified.
-~ Winter Months -All KWH per month at 1.8¢ per KWH. Winter months include from regular meter readings made in October to meter readings made in May.
Sumner Months -All KWH per month at 3.18¢ per KWH. SUtllller months include from regular meter readings made in May to regular meter readings made in October.
Pa~ent:· Statements will be rendered at regular meter reading dates each month. The amount of sue statement shall then become payable ten days after the bill for such service is rendered.
Conditions: Service will be supplied through a circuit to which no equipment except the irrigation well motor will be connected.
Minimum: S24~00 per connected horsepower (nameplate rating) per year beginning .in January.
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Electric Heating Service
Applicable: To residential and colll'l'lercial customers for space heating service, including
res;stance heating, radiant heating and heat pumps, when all heating service is supplied at one
point of delivery and measured through one kilowatt hour meter which meter must be separate
from the meter which measures the energy .. for 1 ighting and general use.
B.fil.:. November through April: All KWH used per month@ S0.0115 per KWH.
May through October: All KWH used per month shall be billed under the applicable
residential or conmercial rate.
Conditions and Regulations: Space heating equipment and the installation of the equipment
shall be subject to the approval of the supplying utility. To be eligible for the space heating
rate, a customer must have permanently installed and in regular use space heating equipment
having a total connected load of not less than five kilowatts.
For heat pump installation, the rated capacity shall .be determined by adding the rated capacity of any auxilliary heating elements used in conjunction with the heat pump. _
Fuel Cost Adjustment: As above provided.
Electric Water Heating
Applicable: To water heating service, on a separate meter, for residential customers· or
corrmerc,al establishments. Service under this rate is subject to the conQitions and regula-
tions governing water heating as stated below:
~ All-KWH per month at 1.15t per KWH.
Conditions and Regulations: 1) Water heating equipment served on this rate shall be of
insulated storage type bearing the approval of the Underwriter's Laboratories, Inc., and shall have a demand of not greater than 5.5 kilowatts individual capacity. 2) Service will be
supplied through a separate circuit to which no equipment except the water heater will be connected. A separate meter will be furnished by the supplying utility. ·
Fuel Cost Adjustment: As above provided.
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J112ra-t.t /Ji(u , 19 83
Texas Commerce Bank-Dallas, N.A.
P.O. Box 222265
Dallas, Texas 75222
Re: Delivery of "City of Lubbock, Texas, Electric Light and
Power System Refunding Revenue Bonds, Series 1983"
dated May 15, 1983, in the principal amount of $10,770,000
Ladies and Gentlemen:
Delivery of the above referenced bonds is scheduled to
occur at your Bank on June 15, 1983, and, in connection therewith,
you are hereby requested to make the following disbursements
with respect to the funds received in accordance with the
following instructions:
(1) The Bank will receive on June 15, 1983,
from Rauscher Pierce Refsnes, Inc. and Blyth Eastman
Paine Webber, Incorporated, the purchasers of the
bonds, the sum of:
Principal Amount of Bonds-------
Accrued Interest----------------
Less Discount-------------------
$10,770,000.00
68,050.83
( 169,950.60)
Total $10,668,100.23
(2) Immediately following payment for the bonds,
the Bank is requested to make the following disbursements
of the funds received:
(a) Transfer by the fa~test
means available in immediately
available funds to the Texas
Commerce Bank, National Association,
Lubbock, Texas, the sum of -------------$10,?83,875.23
(b) Issue to First Southwest
Company, Dallas, Texas, a Cashiers'
Check in the amount of-----------------84,225.00
Your assistance and cooperation in serving as the Bank of
Delivery for the aforementioned bonds is appreciated and should
additional instructions be required, please advise the undersigned.
Very truly yours,
ofild_~,JR I'(. Robert21.ssengle
Assistant City Manager for
Financ1al Services
City of Lubbock, Texas
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A4t1 ,,;z • 1983
\Texas Commerce Bank, N.A.
\p .o. Box 841
\Lubbock, Texas 79408
Instructions Relating to the Receipt and Disbursement
of Funds on the Date of Delivery of the "City of
Lubbock, Texas, Electric Light and Power System
Refunding Revenue Bonds, Series 1983" dated May 15,
I.~
1983, in the principal amount of $10~770,000 (the "Bonds")
Ladies and Gentlemen:
Delivery of the Bonds is scheduled to occur on June 15,
+983, at the Texas Commerce Bank-Dallas, N.A., Dallas, Texas
(the "Bank of Delivery") and immediately following payment
c>f the Bonds, said Bank of Delivery has been instructed to
transmit to the Texas Commerce Bank, N.A., Lubbock, Texas,
by the fastest means available the sum of $10,583,875.23.
Upon receipt of said funds, you are hereby requested to
iJm[lediately make the following disbursements and investment
df funds received, to wit: . .
(a) For the "Special 1983 City of Lubbock
Refunding Bond Escrow Fund" created and established
pursuant to the Special Escrow Fund Agreement by
and between the City .and the Bank --
. (i) Pay the Federal Reserve Ban,k,
·Dallas, Texas, for the purchase of the
United States Treasury Obligations --
State and Local Government Series
(identified in the _subscription forms
attached to Exhibit B to the Special
Escrow Fund Agreement}, the sum of-------$10,497,600.00
(ii) Deposit cash into the
"Special 1983 City of Lubbock Refunding
Bond Escrow Fund" for a beginning cash
balance, the sum of----------------------
(b) Retain and disburse for payment of the
Escrow Agent's fee and paying agent's charges
for the obligations being refunded by the Bonds
in accordance with the Special Escrow Fund
Agreement, the sum of-------------------------
. (c) beposit to the "Special Electric
Light and Power System Revenue Bond Retire-
ment and Reserve Fund", the sum of------------
71.55
16,000.00
70,203.68
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Page Two
Your assistance and coop_~ration in the receipt, disbursement
and application of funds in accordance with the above and
foregoing instructions on behalf-of the City is greatly
appreciated and should additional instructions :be required,
please advise the undersigned.
Very truly y'!.Ours,
%-~ fJ;A,-, ~~ ~-Robert Ma!ssengal
· :ssistant Cf_ty Manager for
Financiai Services
City of Lubbock, Texas
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Special Report
CITY OF LUBBOCK, TEXAS
$10,770,000 Electric Light and Power System
Refunding Revenue Bonds, Series 1983
Special Report. • • • • • • • • • • • • • • • • • • • • • • • • • • 1
Summary of Assumptions • • • • • • • • • • • • • • • • • • • • • • • 3
Sources and Uses of Funds. • • • • • • • • • • • • • • • • • • • • • 5
Flow of Funds. • • • • • • • • • • • • • • • • • • • • • • • • • • • 6
Receipts from Acquired Obligations Used to Pay Debt
Service Requirements of the Electric Light and
Power System Revenue Bonds to be Refunded. • • • • • • • • • • • • 7
Debt Service Requirements of the Electric Light and
Power System Revenue Bonds to be Refunded. • • • • • • • • • • • • 8
Computation of Yield on Acquired Obligations Purchased
with Bond Proceeds Subject to Yield Restriction. • • • • • • • • • 9
Computation of Yield and Debt Service Requirements
of the Electric Light and Power System Refunding
Revenue Bonds, Series 1983 •••••••••••••••••••• 10
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Ernst & Wllinney
City of Lubbock, Texas
Post Office Box 2000
Lubbock, Texas 79457
Dumas, Huguenin, Boothman & Morrow
2001 Bryan Tower
Suite 1400
Dallas, Texas 75201
1800 Home Federal Tower
Tucson, Arizona 85701
602/622-5801
Rauscher Pierce Refsnes, Inc.
2400 North Tower
Plaza of the Americas
Dallas, Texas 75201
Blyth Eastman Paine Webber
Incorporated
8200 Mopac Expressway, Suite 100
Austin, Texas 78759
$10,770,000 City of Lubbock, Texas, Electric Light and Power System
Refunding Revenue Bonds, Series 1983
We have completed our engagement to verify the mathematical accuracy of
certain computations, relating to the above-captioned bond issue, con-
tained in schedules prepared on behalf of the City of Lubbock, Texas by
Rauscher Pierce Refsnes, Inc., and provided to us by that firm. The
issue to be refunded (the "Outstanding Bonds") is:
$9,000,000 City of Lubbock,
and Power System Revenue
Texas, Electric Light
Bonds, Series 1981
Dated Date
Original
Amount Issued
Amount Outstanding
to be Refinanced
August 15, 1981 $9,000,000 $8,550,000
The scope of our engagement consisted of verification of the mathematical
accuracy of (1) the computations contained in such schedules to determine
that the anticipated receipts from the acquired obligations, together
with the initial cash deposit, will be sufficient to pay, when due, the
principal, whether at maturity or upon prior redemption, and interest
requirements of the Outstanding Bonds, and (2) the computations of
"yield" contained in such schedules and considered by bond counsel in its
determination that the $10,770,000 City of Lubbock, Texas Electric Light
and Power System Refunding Revenue Bonds, Series 1983 (the "Bonds") are
not "arbitrage bonds" within the meaning of Section 103 of the Internal
Revenue Code of 1954, as amended. The term "yield," as used herein,
means that yield which, when used in computing the present value of all
payments of principal and interest on an obligation, produces an amount
equal to the purchase price after consideration of certain adjustments as
shown in the attached schedules.
We were provided by Rauscher Pierce Refsnes, Inc., with the Official
Statement for the Bonds, subscription forms for the state and local
government series acquired obligations, and the Ordinance for the
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Ernst & Whinney
City of Lubbock, Texas
Dumas, Huguenin, Boothman & Morrow
Rauscher Pierce Refsnes, Inc.
Blyth Eastman Paine Webber Incorporated
Outstanding,Bonds, and we compared the information contained in the
schedules provided to us and used in the preparation of such schedules by
Rauscher Pierce Refsnes, Inc., with certain information set forth in such
documents with respect to principal maturity dates and amounts, interest
rates, dated dates, and offering price. We found that the information
provided to us and used in the preparation of such schedules by Rauscher
Pierce Refsnes, Inc., was in agreement with the above-mentioned
information set forth in such documents.
In the course of our verification of the mathematical accuracy of the
computations contained in the schedules provided to us by Rauscher Pierce
Refsnes, Inc., we prepared similar schedules based upon the information
provided to us by that firm. The schedules we prepared are included with
this report.
Certain assumptions and computational methods used in preparation of the
schedules are described in the Summary of Assumptions.
In our opinion, the computations contained in the schedules provided to
us by Rauscher Pierce Refsnes, Inc., are mathematically correct. The
schedules provided to us by Rauscher Pierce Refsnes, Inc., and those
prepared by us as part of our engagement to verify the mathematical
accuracy of the computations contained in such schedules, reflect that:
• The anticipated receipts from the acquired obligations together
with an initial cash deposit of $71.55, will be sufficient to pay,
when due, the principal, whether at maturity or upon prior redemp-
tion, and interest requirements of the Outstanding Bonds •
• The yield on the acquired obligations purchased with Bond proceeds
and subject to yield restriction is 8.5413%. The yield on the
Bonds is 8.5423%.
We express no opinion as to the reasonableness of the assumptions used in
preparing such schedules including assumptions used in the computations
of yield considered by bond counsel in its determination that the Bonds
are not arbitrage bonds within the meaning of Section 103 of the Internal
Revenue Code of 1954, as amended. The terms of our engagement are such
that we have no obligation to update this report because of events
occurring, or data or information coming to our attention, subsequent
to the date of this report.
Tucson, Arizona
June 15, 1983
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SUMMARY OF ASSUMPTIONS
CITY OF LUBBOCK, TEXAS
1. The Bonds are dated May 15, 1983, and the closing date of the Bonds
is June 15, 1983.
2. Computations of yields are based upon a 360-day year and semiannual
compounding.
3. Outstanding Bonds maturing on or after April 15, 1992, will be
redeemed on April 15, 1991, at a redemption price equal to the
principal amount of the Outstanding Bonds plus accrued interest as
follows:
Total
Prlrclp:11
Maturities
Original. Original Early and Early
t-bturity Cbupon Pri.Iripal Redemption kcrued Redempticn
Date Rate Maturities of Pdncip:11 Interest of Princip:11
4/15/91 11.75% $ 450,000.00 $4,950,000.00 $26,437.50 $5,400,000.00
4/15/92 12.00% 450,000.00 27,000.00
4/15/93 12.20% 450,000.00 27,450.00
4/15/94 12.40% 450,000.00 27,900.00
4/15/95 12.60% 450,000.00 28,350.00
4/15/96 12.80% 450,000.00 28,800.00
4/15/97 13.00% 450,000.00 29,250.00
4/15/98 13.10% 450,000.00 29,475.00
4/15/99 13.20% 450,000.00 29,700.00
4/15/00 13.25% 450,000.00 29,812.50
4/15/01 13.25% 450,000.00 29,812.50
4/15/02 13.25% 450,000.00 29 2812.50
$5,400,000.00 $4,950,000.00 $343,800.00 ~5,400,000.00
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SUMMARY OF ASSUMPTIONS (Cont'd)
CITY OF LUBBOCK, TEXAS
4. Total Costs of Issuance and Costs of Issuance allocable to the Bonds
are as follows:
Financial advisor
Bond counsel
Escrow agent
Verification fee
Bond printing
Official statement printing
Postage and shipping
Rating service
Computer fees
Closing and miscellaneous costs
Total Costs
of Issuance
$ 26,925.00
19,200.00
16,000.00
4,300.00
4,500.00
s,000.00
1,300.00
11,825.00
5,575.00
5,600.00
$100,225.00
Costs of
Issuance
Allocable to
the Bonds
$26,925.00
17,200.00
4,500.00
5,000.00
1,300.00
9,500.00
5,575.00
5,600.00
$75,600.00
5. Other sources and uses of funds are as shown in the schedule entitled
"Sources and Uses of Funds".
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SOURCES AND USES OF FUNDS
CITY OF LUBBOCK, TEXAS
SOURCES
Principal amount of the Bonds
Accrued interest on the Bonds
USES
Cost of acquired U.S. Treasury obligations--
state and local government series
Initial cash deposit to the escrow
Underwriter's discount
Costs of issuance
Amount available for debt service on the Bonds
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$10,770,000.00
68,050.83
$10,838,050.83
$10,497,600.00
71.55
169,950.60
100,225.00
70,203.68
$10,838,050.83
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,.._ CITY OF LUBBOCK, TEXAS
l .
r Debt Service
Requirements r Total Receipts of the
Payment Beginning From Acquired Funds Outstanding Ending
Date Balance Oblisations Available Bonds Balance ,..
r , 10/15/83 $ 71.55 $ 558,684.39 $ 558,755.94 $ 558,675.00 $ 80.94
4/15/84 80.94 1,008,754.96 1,008,835.90 1,008,675.00 160.90
10/15/84 160.90 527,640.58 527,801.48 527,737.50 63.98 r 4/15/85 063.98 977,774.33 977,838.31 977,737.50 100.81
10/15/85 . :100.81 496,857.36 496,958.17 496,800.00 158.17
4/15/86 158.17 946,788.40 946,946.57 946,800.00 146.57
r , 10/15/86 146.57 465,840.31 465,986.88 465,862.50 124.38
4/15/87 124.38 915,844.54 915,968.92 915,862.50 106.42
10/15/87 106.42 434,969.63 435,076.05 434,925.00 151.05
r 4/15/88 151.05 884,852.53 885,003.58 884,925.00 78.58
10/15/88 78.58 404,028.70 404,107.28 403,987 .so 119.78
4/15/89 119. 78 853,939.56 854,059.34 853,987.50 71.84
10/15/89 71.84 373,037.89 373,109.73 373,050.00 59.73
4/15/90 59.73 823,140.59 823,200.32 823,050.00 150.32
f ' l , 10/15/90 150.32 343,709.14 343,859.46 343,800.00 59.46
4/15/91 59.46 5,743,750.32 5,743,809.78 5,743,800.00 9.78
r ~15,759,613.23 $15,759,675.00
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RECEIPTS FROM ACQUIRED OBLIGATIONS USED TO PAY DEBT
SERVICE REQUIREMENTS OF THE ELECTRIC LIGHT AND POWER
SYSTEM REVENUE BONDS TO BE REFUNDED
CITY OF LUBBOCK, TEXAS
Receipts from U.S. Treasury Obligations--
State and Local Government Series
Date Total Interest Principal Coupon Rate
10/15/83 $ 558,684.39 $ 282,784.39 $ 275,900.00 8.00%
4/15/84 1,008,754.96 451,454.96 557,300.00 8.25%
10/15/84 527,640.58 413,140.58 114,500.00 8.50%
4/15/85 977,774.33 408,274.33 569,500.00 8.61%
10/15/85 496,857.36 383,757.36 113,100.00 8.61%
4/15/86 946,788.40 378,888.40 567,900.00 8.61%
10/15/86 465,840.31 354,440.31 111,400.00 8.61%
4/15/87 915,844.54 349,644.54 566,200.00 8.61%
10/15/87 434,969.63 325,269.63 109,700.00 8.60%
4/15/88 884,852.53 320,552.53 564,300.00 8.55%
10/15/88 404,028.70 296,428.70 107,600.00 8.53%
4/15/89 853,939.56 291,839.56 562,100.00 8.54%
10/15/89 373,037.89 267,837.89 105,200.00 8.55%
4/15/90 823,140.59 263,340.59 559,800.00 8.55%
10/15/90 343,709.14 239,409.14 104,300.00 8.55%
4/15/91 5,743,750.32 234,950.32 5,508,800.00 8.53%
$15,759,613.23 ~5,262,013.23 $10,497,600.00
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DEBT SERVICE REQUIREMENTS OF THE ELECTRIC LIGHT
AND POWER SYSTEM REVENUE BONDS TO BE REFUNDED
CITY OF LUBBOCK, TEXAS
$9,000,000 Issue*
Payment Dated August 15, 1981
Date Total Interest Principal
10/15/83 $ 558,675.00 $ 558,675.00
4/15/84 1,008,675.00 558,675.00 $ 450,000.00
10/15/84 527,737.50 527,737.50 .oo
4/15/85 977,737.50 527,737 .so 450,000.00
10/15/85 496,800.00 496,800.00 .oo
4/15/86 946,800.00 496,800.00 450,000.00
10/15/86 465,862.50 465,862.50 .oo
4/15/87 915,862.50 465,862.50 450,000.00
10/15/87 434,925.00 434,925.00 .oo
4/15/88 884,925.00 434,925.00 450,000.00
10/15/88 403,987.50 403,987.50 .oo
4/15/89 853,987.50 403,987 .so 450,000.00
10/15/89 373,050.00 373,050.00 .oo
4/15/90 823,050.00 373,050.00 450,000.00
10/15/90 343,800.00 343,800.00 .oo
4/15/91 5,743,800.00 343,800.00 5,400,000.00
$15,759,675.00 Fz209,675.oo $8,550,000.00
*Original amount issued of $9,000,000 of which $8,550,000 is the
remaining amount to be refunded.
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COMPUTATION OF YIELD ON ACQUIRED OBLIGATIONS PURCHASED
WITH BOND PROCEEDS SUBJECT TO YIELD RESTRICTION
CITY OF LUBBOCK, TEXAS
Present Value of Future
Receipts at June 15, 1983,
Receipt Receipts from Acquired Obligations Using Semiannually
Date Purchased with Bond Proceeds Compounded Yield of 8.5413%
10/15/83
4/15/84
10/15/84
4/15/85
10/15/85
4/15/86
10/15/86
4/15/87
10/15/87
4/15/88
10/15/88
4/15/89
10/15/89
4/15/90
10/15/90
4/15/91
$ 558,684.39
1,008,754.96
527,640.58
977,774.33
496,857.36
946,788.40
465,840.31
915,844.54
434,969.63
884,852.53
404,028.70
853,939.56
373,037.89
823,140.59
343,709.14
5,743,750.32
$15,759,613.23
The present value of the future receipts equals
the cost of U.S. Treasury obligations--
state and local government series
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$ 543,323.44
940,839.34
471,960.72
838,772.49
408,766.36
747,023.44
352,497.66
664,628.27
302,728.88
590,613.95
258,632.38
524,246.69
219,633.91
464,791.67
186,128.67
2,983,012.13
$10,497,600.00
$10,497,600.00
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r COMPUTATION OF YIELD AND DEBT SERVICE REQUIREMENTS OF THE ELECTRIC LIGHT
AND POWER SYSTEM REFUNDING REVENUE BONDS, SERIES 1983 ,...
l . CITY OF LUBBOCK, TEXAS
r ,..... Present Value of r Future Payments
at June 15, 1983,
$10,770,000 Issue Dated May 15, 1983 Using a Semian-,... Payment Coupon nually Compounded
I . Date Rate Principal Interest Total Yield of 8.5423%
I'" 10/15/83 $ 340,254.17 $ 340,254.17 $ 330,897.78 r 4/15/84 5.50% $ 840,000.00 408,305.00 1,248,305.00 1,164,251.90
I 10/15/84 .oo 385,205.00 385,205.00 344,551.32 l
4/15/85 5.75% 690,000.00 385,205.00 1,075,205.00 922,335.72
r 10/15/85 .oo 365,367.50 365,367.50 300,582.31 ,,. 4/15/86 6.25% 665,000.00 365,367.50 1,030,367.50 812,945.46
10/15/86 .oo 344,586.25 344,586.25 260,737.17
4/15/87 6.50% 645,000.00 344,586.25 989,586.25 718,115.69 r 10/15/87 .oo 323,623.75 323,623.75 225,225.16 l . 4/15/88 6.75% 625,000.00 323,623.75 948,623.75 633,149.50
10/15/88 .oo 302,530.00 302,530.00 193,649.54 -4/15/89 7.00% 605,000.00 302,530.00 907,530.00 557,114.89 -~
I 10/15/89 .oo 281,355.00 281,355.00 165,643.41 l ' 4/15/90 7.40% 585,000.00 281,355.00 866,355.00 489,160.26 ,.. 10/15/90 .oo 259,710.00 259,710.00 140,630.56
[ : 4/15/91 7.70% 570,000.00 259,710.00 829,710.00 430,876.80
10/15/91 .oo 237,765.00 237,765.00 118,415.99
,......,. 4/15/92 8.00% 565,000.00 237,765.00 802,765.00 383,430.48
l , 10/15/92 .oo 215,165.00 215,165.00 98,561.11
4/15/93 8.15% 555,000.00 215,165.00 770,165.00 338,340.11
10/15/93 .oo 192,548.75 192,548.75 81,123.40 r 4/15/94 8.30% 545,000.00 192,548.75 737,548.75 298,010.76
10/15/94 .oo 169,931.25 169,931.25 65,849.15
"· 4/15/95 8.40% 535,000.00 169,931.25 704,931.25 261,974.78
r 10/15/95 .oo 147,461.25 147,461.25 52,556.49
4/15/96 8.50% 525,000.00 147,461.25 672,461 ~25 229,853.70
10/15/96 .oo 125,148.75 125,148.75 41,024.80
4/15/97 8.65% 510,000.00 125,148.75 635,148.75 199,678.44 r 10/15/97 .oo 103,091.25 103,091.25 31,082.31 ,,,. 4/15/98 8.75% 495,000.00 103,091.25 598,091.25 172,939.69
10/15/98 .oo 81,435.00 81,435.00 22,582.60
r 4/15/99 8.90% 480,000.00 81,435 .oo 561,435.00 149,313.21
10/15/99 .oo 60,075.00 60,075.00 15,322.45 . '
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COMPUTATION OF YIELD AND DEBT SERVICE REQUIREMENTS OF THE ELECTRIC LIGHT
AND POWER SYSTEM REFUNDING REVENUE BONDS, SERIES 1983 (Cont'd)
'CITY OF LUBBOCK, TEXAS
Present Value of
Future Payments
at June 15, 1983,
$10!770,000 Issue Dated May 15, 1983 Using a Semian-
Payment Coupon nually Compounded
Date Rate Principal Interest Total Yield of 8.5423%
4/15/00 9.00% $ 465,000.00 $ 60,075.00 $ 525,075.00 $ 128,437.42
10/15/00 .oo 39,150.00 39,150.00 9,184.12
4/15/01 9.00% 445,000.00 39,150.00 484,150.00 108,923.53
10/15/01 .oo 19,125.00 19,125.00 4,126.47
4/15/02 9.00% 425,000.00 19,125.00 444,125.00 91,901.75
$10,770,000.00 $8,055!106.67 $18,825,lOp.67 $10,592,500.23
The present value of the future payments equals the following:
1Principal amount of the Bonds
Plus accrued interest
Less:
Underwriter's discount
Costs of issuance
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$10,770,000.00
68,050.83
(169,950.60)
(75,600.00)
$10,592,500.23
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The Attorney General of Texas
,-.. JIM MATTOX
Attorney General
JUN 15 1983
THIS IS TO CERTIFY that the following described
bonds, together with authenticated copies of the
proceedings relating to and authorizing the
issuance of same, have been submitted to me for
examination in accordance with the requirements
of the statutes of the State of Texas, to-wit:
Supreme Court Building
P. 0 . Box 12548
,.. Austin, TX. 78711-2548
5121475-2501
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CITY or LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REFUNDING
REVENUE BONDS, SERIES 1983 (the "Bonds"), issued by virtue of an
ordinance ( the "Ordinance") adopted by the City Council of the
City of Lubbock (the "City") on the 12th day of May, 1983, for
the purpose of refunding all presently outstanding "City of
Lubbock, Texas, Electric Light and Power System Revenue Bonds,
Series 1981" and paying costs of issuance incurred in connection
therewith; dated May 15, 1983; numbered consecutively from 1 to
2,154, inclusive; in the denomination of Five Thousand Dollars
($5,000) each; aggregating the principal sum of Ten Million Seven
Hundred Seventy Thousand Dollars ($10,770,000); maturing serially
on April 15 in each of the years as follows:
1984 $840,000 1991 $570,000 1997 $510,000
1985 690,000 1992 565,000 1998 495,000
1986 665,000 1993 555,000 1999 480,000
1987 645,000 1994 545,000 2000 465,000
1988 625,000 1995 535,000 2001 445,000
1989 605,000 1996 525,000 2002 425,000
1990 585,000
bearing interest fr om date until paid or the redemption thereof
at the following rates per annum, to-wit:
Bonds maturing 1984 5.50% Bonds maturing 1993 8.15%
Bonds maturing 1985 5. 7 S~o Bonds maturing 1994 8.30%
Bonds maturing 1986 6. 2 5~" Bonds maturing 1995 8.40%
Bonds maturing 1987 6.50% Bonds maturing 1996 8.50~o
Bonds maturing 1988 6. 7 5~" Bonds maturing 1997 8.65~o
Bonds maturing 1989 7 .om" Bonds maturing 1998 8.75%
Bonds maturing 1990 7.40% Bonds maturing 1999 8.90%
Bonds maturing 1991 7. 1m" Bonds maturing 2000/2002 9.00%
Bonds maturing 1992 8.00%
payable on October 15, 1983, and semiannually thereafter on April
15 and October 15 in each year; both principal and interest
payable at the Citibank, National Association, New York, New
York, or at the option of the holder, at the Texas Commerce Bank,
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National Association, Lubbock, Texas; the Bonds being subject to
prior redemption to the extent and in the manner provided in the
Ordinance.
From a careful examination o-f the Bonds and said proceedings
and the Constitution and laws of the State of Texas on the
subject of the execution and issuance thereof, I find the
following facts, to-wit:
(1) That the City was, at the time of the adoption of the
Ordinance, and is, as of this date, legally incorporated;
(2) That the Bonds constitute special obligations of the
City and, together with the outstanding Previously Issued Bonds
(identified in the Ordinance), are payable solely from and
equally secured by a first lien on and pledge of the "Net
Revenues" of the City's Electric Light and Power System; for a
more complete description and identification of the revenues
pledged to the payment of the Bonds, reference is made to the
Ordinance;
(3) That the City has reserved the right, subject to the
restrictions stated in the Ordinance, to issue and incur addi-
tional revenue obligations payable from and equally secured by a
first lien on and pledge of the Net Revenues of the Electric
Light and Power System, in the same manner and to the same extent
as the Bonds and the Previously Issued Bonds;
(4) That the holders of the Bonds shall never have the
right to demand payment of these obligations out of anj funds
raised or to be raised by taxation;
(5) That the Ordinance is in proper form and was legally
adopted;
(6) That the Bonds and interest coupons attached thereto
are proper in form and in accordance with the Ordinance.
The Comptroller is instructed that he may register the Bonds
without the cancellation of the underlying securities as autho-
rized by Art. 717k, V.A.T.C.S.
IT IS MY JUDGMENT, and I so find, that all of the require-
ments of the laws under which the Bonds were issued have been
met; that the Bonds were issued in conformity with the Consti-
tution and laws of the State of Texas and that the Bonds are
valid and binding special obligations of the City of Lubbock,
Texas.
WHEREFORE, the Bonds are hereby approved.
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IN TESTIMONY WHEREOF, I have hereunto signed my name
officially and caused the seal of my office to be impressed
hereon, in the City of Austin, Texas.
No. 18965
Book No. 73
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OFFICE OF COMPTROLLER
OF THE STATE OF TEXAS
I, Bob Bullock, Comptroller of Public Accounts of the State of Texas, do hereby
certify that the attachment is a true and correct copy of the opinion of the Attorney
General approving the City of Lubbock, Texas Electric Light and Power System
Refunding Revenue Bonds, Series 1983
1 numbered consecutively from _____ _ 2154 to _____ _ of the denomination of
$ _S_,_0_0_0_. 0_0 ___ each, dated May 15 83 See foregoing -------, 19 --, due _______ _
Various interest ______ percent, under and by authority of which said bonds were registered
in this office, on the l Sth day of June 19 ~, as the same appears of
record on page _4_7_7 __ Bond Register of the Comptroller's Office, Vol. __ 8_4 ___ _
Register Number 47297
Given under my hand and seal of office, at Austin, Texas, the 15th
June 83 day of __________ , 19 --·
~<:=-73-116
•-,,••-;:;:::-(Rev. 5-82)
BOB BULLOCK
Comptroller of Public Accounts
State of Texas
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OFFICE OF COMPTROLLER
OF THE STATE OF TEXAS
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I, ___ A_r_l_e_n_e_C_h_i_s_h_o_l_m ___ • Bond Clerk E Assistant Bond Clerk in the office
of the Comptroller of the State of Texas, do hereby certify that, acting under the direction and
authority of said Comptroller on the 15th dayof ____ J_u_n_e ______ , 19 .E._
I signed the name of said Comptroller to the certificate of registration indorsed upon each of the
City of Lubbock, Texas Electric Light and Power System Refunding Revenue
Bonds. Series 1983
numbered ·from __ 14 __ 0 __ 1 _____ to __ 2_1_5_4 __ inclusive, dated __ M_a_y_l_S_. _1_9_8_3 ___ __
and that in signing said certificate of registration I used the following signature: ~~
IN WITNESS WHEREOF I have executed this certificate this ___ l_S_t_h ___ day of
June 19 83 _______ ;;.;.;.;;.._ ___ . -----
I, Bob Bullock, Comptroller of Public Accounts of the State of Texas, do hereby certify
that the person who has signed the above certificates was duly designated and appointed by me
as Bond Clerk in the office of the Comptroller of Public Accounts of the State of Texas under
authority vested in me by Tex. Rev. Civ. Stat. Ann. art. 4362 (1969), with authority to sign my
name to all certificates of registration, and/or cancellation of bonds required by law to be registered
and/or cancelled by me, and was acting as such on the date first mentioned in said certificate, and
that the bonds described in said certificate have been duly registered in the office of said
Comptroller, as appears of record on page __ 4_7_7 __ of volume __ 8_4 __ under Registration
Number ___ 4_7_2_9_7 ____ in the Bond Register kept in the office of the said Comptroller.
GIVEN under my hand and seal of office at Austin, Texas, this __ l_S_t_h ___ day of
19 83 ----------· June
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OFFICE OF COMPTROLLER
OF THE STATE OF TEXAS
I, ___ B_e_t_t_y_Me_l_be_r _____ a Bond Clerk !Kl Assistant Bond Clerk in the office
of the Comptroller of the State of Texas, do hereby certify that, acting under the direction and
authority of said Comptroller on the 15th day of June , 19 .!!._
I signed the name of said Comptroller to the certificate of registration indorsed upon each of the
City of Lubbock, Texas Electric Light and Power System Refunding Revenue
Bonds, Series 1983
numbered ·from __ l ____ to __ l_4_oo ___ inclusive, dated ___ M_a_y_l_S_,_1_9_8_3 __ _,
and that in signing said certificate of r
15th IN WITNESS WHEREOF I have executed this certificate this _______ day of
June ,19 _8_3 ___ _
I, Bob Bullock, Comptroller of Public Accounts of the State of Texas, do hereby certify
that the person who has signed the above certificates was duly designated and appointed by me
as Bond Clerk in the office of the Comptroller of Public Accounts of the State of Texas under
authority vested in me by Tex. Rev. Civ. Stat. Ann. art. 4362 (1969), with authority to sign my
name to all certificates of registration, and/or cancellation of bonds required by law to be registered
and/or cancelled by me, and was acting as such on the date first mentioned in said certificate, and
that the bonds described in said certificate have been duly registered in the office of said
Comptroller, as appears of record on page __ 4_7;..;7 __ of volume __ 84 ___ under Registration
Number __ 4_7_2_9_7 _____ in the Bond Register kept in the office of the said Comptroller.
GIVEN under my hand and seal of office at Austin, Texas, this __ 15_t_h ___ day of
___ ..;;.J.:.;un;.;.:e::._ ___ , 19 83
BOB BULLOCK
Comptroller of Public Accounts of the
State of Texas
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NO-ARBITRAGE CERTIFICATE
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
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WE, the undersigned, Mayor and City Manager, respectively,
of the City of Lubbock, Texas (the "Issuer"), who with other
officers of the Issuer are charged with the responsibility
of issuing and delivering the "CITY OF LUBBOCK, TEXAS, ELECTRIC
LIGHT AND POWER SYSTEM REFUNDING REVENUE BONDS, SERIES
1983", dated May 15, 1983, in the principal amount of $10,770,000
(the "Bonds"), DO HEREBY CERTIFY that, to the best of our
knowledge and belief, the following facts and expectations
concerning the use and expenditures of proceeds of the Bonds
are reasonable, and we are not aware of any facts or circumstances
that would cause us to question the accuracy of the same, to
wit:
(a) Sale and Proceeds of Bonds.
(1) The Bonds were sold to Rauscher Pierce Refsnes,
Inc. and Blyth Eastman Paine Webber, Inc. (the "Underwriters")
on the 12th day of May, 1983, at the price of 98.422% of par and
accrued interest to the date of delivery, and payment therefor
occurred on the date of this Certificate, the Issuer having·
received the following amount from the Underwriters, to wit:
PRINCIPAL AMOUNT ---------------$10,770,000.00
ACCRUED INTEREST---------------68,050.83
LESS DISCOUNT-------------------169,950.60
TOTAL AMOUNT RECEIVED------$10,668,100.23
(2) The Underwriters have represented that the initial
offering price to the public (excluding bond houses, brokers
and other intermediaries) for the Bonds is $10,770,000.00,
plus accrued interest as evidenced by the cover page of the
final Official Statement of the Underwriters attached hereto
as Exhibit A and incorporated herein by reference as a part
of this Certificate for all purposes.
(b) Purposes for Issuing Bonds.
(1) The Bonds are being issued in an amount to provide
funds sufficient to refund certain outstanding revenue bonds
of the City (totalling in principal amount $8,550,000 and
hereinafter referred to as the "Outstanding Bonds") payable
from and secured by a lien on and pledge of the net revenues
of the City's Electric Light and Power System and to pay
certain costs of issuance.
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• (2) The reasons for refunding the Outstanding Bonds is
to reduce the total interest cost represented by the Outstanding
Bonds, the total interest costs saving to be realized by the
City being $876,249 and the present value of such savings
being $485,743.
(c) Source and Disbursement of Funds.
(1) The net proceeds received by the Issuer from the
sale of the Bonds as shown in paragraph (a) (1) above, will
be $10,668,100.23 and such net proceeds have been appropriated
and disbursed as follows:
(i) $70,203.68, representing the accrued interest
received from the Underwriters of the Bonds and the sum
of $2,152.85 has been deposited in the interest and
sinking fund (the "Bond Fund") to pay the first installment
of interest to become due on the Bonds on October 15,
1983.
(ii) $10,497,671.55 of the proceeds of the Bonds
has been deposited with the Texas Commerce Bank, N.A.,
Lubbock, Texas {the "Escrow Agent") for purposes of
refunding, discharging and making final payment of the
Outstanding Bonds in accordance with the terms and
provisions of a Special Escrow Fund Agreement, dated as
of June 15, 1983, between the Issuer and the Escrow
Agent and 'pursuant to which Agreement the Issuer has
created and established a special trust fund designated
"Special 1983 City of Lubbock Refunding Bond Escrow
Fund" (the "Escrow Fund").
(iii) $100,225 has been expended to pay costs of
issuance incurred in connection with the issuance of
the Bonds.
(2) The $10,497,671.55 of the proceeds of the Bonds to
accomplish the refunding of the Outstanding Bonds have been
disbursed and used as follows:
(i) $10,497,600 representing proceeds received
from the sale of the Bonds will be used to acquire an
equal amount of United States Treasury Securities -
State and Local Government Series (the "Federal Securities")
for deposit in the Escrow Fund and used to pay the
principal of and interest on the Outstanding Bonds.
The Federal Securities to be acquired are listed in
Exhibit B to the Special Escrow Fund Agreement.
{ii) • $71. 55 of proceeds received from the sale of
the Bonds will be used to establish a beginning cash
balance in the Escrow Fund.
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(d) Bond Fund.
(1) Pursuant to Section 12 of the Ordinance authorizing
the issuance of the Bonds, a "Special Electric Light and
Power System Revenue Bond Retirement and Reserve Fund (hereinafter
called the "Bond Fund") is required to be kept and maintained
by the City for purposes of accumulating funds to (i) pay
the current principal and interest on all parity lien revenue
bonds, including the Bonds, as the same become due and
payable (the "Debt Service Portion") and (ii) providing a
reserve amount (the "Reserve Portion") to pay principal of
and interest on the previously issued parity lien bonds and the
Bonds when other moneys available in the Debt Service Portion
of the Bond Fund may be insufficient for such purpose.
The Issuer reasonably expects that, except for the Bond
Fund, no other funds will be so used or pledged or otherwise
restricted so as to be available, with reasonable certainty,
to be so used. The Debt Service Portion of the Bond Fund
will be depleted at least once a year except for a reasonable
carry over not to exceed the greater of (i) one year's
earnings on the Fund or (ii) one-twelfth (1/12) of the
annual debt service on the Bonds.
(2) Any money deposited in the Debt Service Portion of
the Bond Fund will be spent within a thirteen-month period
beginning on the date of the deposit and any amount received
from the investment of money held in the Debt Service Portion
of the Bond Fund will be spent within a one-year period
beginning on the date of the receipt the.reef.
(3) Under the terms of the ordinances authorizing the
issuance of previously issued bonds secured by a parity lien
on and pledge of the net revenues of the City's Electric
Light and Power System, the total amount required to be
accumulated and maintained in the Reserve Portion of the
Bond Fund is an amount based on the average annual requirement
for all outstanding pa:r;ity lien revenue bonds (calculated
and redetermined at the time of issuance of each series of
parity lien revenue bonds). Currently, the City is making
monthly deposits to the Reserve Portion of the Bond Fund
from the net revenues of the System in the sum of $6,367.00
until there has been accumulated in said Fund the sum of
$2,007,000.00. No additional amount is required to be
accumulated in the Reserve Portion by reason of the issuance
of the Bonds, and the City will continue to make such monthly
deposits to said Reserve Portion of the Bond Fund until the
sum of $2,007,000 has been accumulated therein. The total
amount required to be accmnulated in the Reserve Portion of
the Bond Fund represents less than 15% of the original
principal amount of all the outstanding parity revenue
bonds, not being refunded, and the Bonds; such total original
principal amount of such outstanding parity lien revenue
bonds and the Bonds totalling $37,070,000.
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(e) Temporary Period.
(1) Except as described in (e) (2) below, none of the
original proceeds of the Bonds will be invested for a temporary
period.
(2) Proceeds of the Bonds described in (c) (1) (i)
above representing accrued interest for a period of not more
than six months, will not be used to discharge outstanding
Bonds, and will be expended within one year from the date of
the issue of the Bonds. In addition, as described in (c) (1) (iii)
above, a portion of the proceeds of the Bonds will not be
used to discharge the Outstanding Bonds and will be used to
pay issuance costs. The proceeds described in the preceding
two sentences will be invested for a temporary period of not
more than a one year period beginning on the date of issue
of the Bonds.
(f) Proceeds of Outstanding Bonds.
As of the date of this certificate, approximately $..1,,~'iD.S,,iJo of proceeds received from the sale of the
Outstanding Bonds have not been expended. The date of the
issuance of the Outstanding Bonds was .JE,tJl?"ll-10~~ 221 J9J' / ,
and the temporary period prescribed in Section l.103-14(b)
of the Regulations applies to such Proceeds. As of this
date, substantial binding obligations for the projects
financed by the issuance of the Outstanding Bonds have been
incurred which equal in amount to not less than $.?,J~~e;.lJ.~o
work on the projects is proceeding with due diligence to
completion and, based on latest inf"ormation, the projected
completion date for all projects financed by the Outstanding
Bonds is J'~Jl~-,c., d~,c 1t:111l-t . All such Proceeds are reasonably
expected to have b~en expended for the projects financed by
t~ Outstanding Bonds on the projected completion date,
JE/A:?'.'!~~~ '£/1/j,:, which date is within three years from the
date of iss ance of the Outstanding Bonds.
(g) Price and Yield of Bonds and Federal Securities.
(1) In regard to matters relating to the yield on the
Bonds and the yield on the Federal Securities acquired for
the Escrow Fund, the Underwriters prepared certain schedules
(the "Schedules"), and the data contained in the Schedules
has been verified by Ernst & Whinney, Certified Public
Accountants in a report entitled "Special Report/City of
Lubbock, Texas, Electric Light and Power Refunding Revenue
Bonds, Series 1983" (the "Accountant!s Report"). In regard
to the yield on the Bonds and the yield on the Federal
Securities acquired for the Escrow Fund, the Schedules and
the Accountant's Report reflect that the yields on the Bonds
and the Federal Securities have been computed by determining
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the yield which when used in computing the present worth of
all payments of principal and interest to be paid on the
Bonds or Federal Securities produces an amount equal to
their purchase price. In the case o~ the Bonds, the term
"purchase price" was computed in the following manner, to
wit:
Initial Offering Price to Public ---------$10,770,000.00
plus accrued interest---------~~----68,050.83
minus Underwriter's discount--------169,950.60
minus certain costs of issuanc~ -----75,600.00
PURCHASE PRICE OF BONDS --------$10,592,500.23
Issuance costs.attributable to the issuance of the Bonds and
taken into account as a discount in determining the yield on
the Bonds are as follows:
Financial Advisor ---------------$26,925
Bond Rating/Travel-------------~ 9,500
Bond Printing-------------------4,500
Official Statement Printing/Postage 6, aoo
Bond Counsel-----------~--------17,200
Computer Fee--------------------5,575
Miscellaneous Closing Expenses 5,600
TOTAL EXPENSES $75,600
The Schedules and the Accountant's Report show that the
yield on the Bonds, taking into account Costs of Issuance in
the sum of $75,600 as a discount, isS.5423% and the yield
on the Federal Securities purchased for the Escrow Fund is
8.5413%.
(h) Miscellaneous.
(1) The Underwriters have represented that the initial
offering price to the public (excluding bond houses, brokers,
and other intermediaries) for the Bonds is $10,770,000.00,
plus accrued interest, based on their reoffering yields for
the Bonds shown in Exhibit A. The Issuer is not aware of
any facts or circumstances that would cause it to question
the accuracy of the representations made by ·the Underwriters.
(2) None of the Outstanding Bonds are or were "arbitrage
bonds" within the meaning of Section 103(c) of the Internal
Revenue Code of 1954, as amended and the Regulations.
(.3) The Issuer has not been notified of any listing or
proposed listing of the Issuer by the Internal Revenue
Service as an issuer that it may not certify its bonds.
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(4) The principal of and interest on the Federal
Securities together with the beginning cash balance in the
Escrow Fund will not exceed the amount required to pay the
principal of and interest on the-Outstanding Bonds. The
beginning cash balance and the maturing principal of and
interest on the Federal Securities will not be invested.
(5) The Issuer has, in addition to the moneys received
from the sale of the Bonds, certain other moneys that are
invested in various funds which are pledged for various
purposes. These other funds are not available to accomplish
the purposes described in paragraph (b) above.
(6) A& of the date 0f this Gortifioate, all of the
a,moyn~s reoei¥ed from the sale of the Outstandin~ Bonde havQ
-Oeen expended.
( 7) Any amo-u:~t of :income deri¥od from the i:aveeiefte:at.
of money recainad upon tl:l& &ala of the 8onds al.located for
Rew money purpo&&& or from the investment of suoh iw~Test.meRit
incorne with Gdtber (i) so enpe:adcd o:a the projecLs o:r (ii)
if aa.d when found net to ee re~ttired £or !mch e:xpendi tu.re,
will Jae deposi~ed ii.a. tho Send Fund and sfpended Lo pa}
pri:Acipal. and ia.t.srest on the Bonds, :withi:a thFee (3) years-
£rem t::he dat:e hereof or wi1&hiR ORO (1) year ef i:::oseip~.
CITY OF LUBBOCK, TEXAS
May"~
(City Seal)
UUN 15 1983
DATED:
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Dated May 12, 1983
INTEREST EXEMPT, IN THE OPINION OF BOND COUNSEL, FROM PRESENT FEDERAL INCOME
TAXES UNDER EXISTING STATUTES, REGULATIONS AND COURT DECISIONS
$10,770,000 _
CITY OF LUBBOCK, TEXAS
(Lubbock County) ELECTRIC LIGHT AND POWER SYSTEM
REFUNDING REVENUE BONDS, SERIES 1983
Dated: May 15, 1983 Denomination: $5,000
Principal and semi-annual interest (April 15 and October 15) payable at
Citibank, N. A., New York, New York,
or, at the option of the holder, at
Texas Commerce Bank, National Association, Lubbock, Texas.
First interest coupon due October 15, 1983.
· Coupon bearer bonds, not registrable.
These bonds (the "Bonds•) will be authorized by ordinance (the "Ordinance") as authorized by
the General Laws of the State of Texas, pursuant to authority of Article 717k, V.A.T.C.S., and will constitute, together with outstanding Electric Light and Power System Revenue Bonds (ex-
cluding the bonds being refunded), special obligations of the City of Lubbock, Texas, payable,
both as to principal and interest, solely from and secured by a first lien on and pledge of the
revenues of the Electric Light and Power System, after deduction of reasonable expenses of operation and maintenance.
The proceeds of the Bonds will be used to provide-moneys which will be sufficient to refund the
City's Electric Light and Power System Revenue Bonds, Series 1981 (the "Refunded Bonds•),
originally issued in the amount of $9,000,000,-and now outstanding in the amount of $8,550,000, and to pay the costs related to the issuance of the Series 1983 Bonds.
MATURITY SCHEDULE
Amount Maturit~ Rate Price Amount Maturit~ Rate Price $840,000 4-15-198 '530% ,w $545,000 4-15-199 * Doi -mo 690,000 4-15-1985 -5.75% 100 535,000 4-15-1995* 8.4oi 100 665,000 4-15-1986 6.25% 100 525,000 4-15-1996* 8.50% 100 645,000 4-15-1987 6.50% • 100 510,000 4-15-1997* 8.65% 100
625,000 4-15-1988 6.75% 100 495,000 4-15-1998* 8.75% 100 605,000 4-15-1989 1.ooi 100 480,000 4-15-1999* 8.9oi 100
580,000 4-15-1990 7.4oi 100 465,000 4-15-2000* 9.0oi 100
570,000 4-15-1991 7.70% 100 445,000 4-15-2001* 9.0oi 100 565,000 4-15-1992 s.ooi 100 425,000 4-15-2002* 9.0oi 100
555,000 4-15-1993 8.15% 100
* The City reserves the right, at its option, to redeem Bonds maturing April 15, 1994, through
April 15, 2002, both inclusive, in whole or any part thereof, on April 15, 1993, or any interest
payment date thereafter, at the par value thereof plus accrued interest to the date fixed for
redemption.
The Bonds are offered when, as and-if issued subject to the approval of legality by the Attorney
General of the State of Texas and Messrs. Dumas, Huguenin, Boothman & Morrow, Bond Counsel.
Certain legal matters are subject to the approval of Messrs. Hutchison Price Boyle & Brooks, Counsel to the Underwriters. Opinion printed on the Bonds; see legal opinions.
Payment Record: The City has never defaulted.
Delivery: Anticipated on or about June 15, 1983.
RAUSCHER PIERCE REFSNES, INC. BLYTH EASTMAN PAINE WEBBER INCORPORATED
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THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
CERTIFICATE OF THE MAYOR
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I, the undersigned, Mayor of the City of Lubbock, Lubbock
County, Texas (the "City"), DO HEREBY CERTIFY with respect
to the issuance and sale of "CITY OF LUBBOCK, TEXAS, ELECTRIC
LIGHT AND POWER SYSTEM REFUNDING REVENUE BONDS, SERIES
1983", dated May 15, 1983 (the "Bonds") as follows:
(1) That the representations and warranties of the
City contained .in the Purchase Contract (the "Purchase
Contract") by and between the City and Rauscher Pierce
Refsnes, Inc. and Blyth Eastman Paine Webber, Inc. (the
"Underwriters") are true and correct in all material respects
on and as of the date hereof as if made on this date;
(2) Except to the extent disclosed in the Official
Statement prepared in connection with the issuance and sale
of the Bonds, no litigation is pending or, to my knowledge,
threatened in any court to restrain or enjoin the issuance
or delivery of the Bonds, ·or the collection of revenues and
assets of the City pledged to pay the principal of and
interest on the Bonds, or the pledge thereof, or in any way
contesting or affecting th~ validity of the Bonds,• the
ordinance authorizing the issuance of the Bonds (the "Ordinance"),
or the Purchase Contract, or contes-ting 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;
(3) To the best of my 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; and
(4) There has not been any material adverse change in
the financial condition of the City's Electric Light and Power
System, including the Net Revenues derived therefrom, since
September 30, 1982, the latest date as of which audited
financial information is available and as otherwise disclosed
in the Official Statement.
this WITNESS MY BA:JflN1fi i§~~ SEAL
(City Seal)
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CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS S s
COUNTY OF LUBBOCK S s
CITY OF LUBBOCK §
I, the undersigned, •city Secreta-ry of the City of
Lubbock, Texas, DO HEREBY CERTIFY AND REPRESENT that the
attached ordinance (the "Ordinance"} authorizing the
issuance of the "CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT
AND POWER SYSTEM REFUNDING REVENUE BONDS, SERIES 1983",
finally passed and adopted by the City Council of the
City of Lubbock, Texas, on the~ day of May, 1983,
is a true and correct copy of the original on file and
of record in the official records of the City and said
Ordinance is in full force and effect and has not been
amended, modified or changed in any respect as of the
date hereof.
TO CERTIFY WHICH, witness my official hand and the
seal of the City of Lubbock .. , Texas, this , IUN 1 5 1983
(City Seal}
0~~-.Jtk~ EVELYN E". GAFFGA .
City Secretary, City of
Lubbock, Texas
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DUMAS, HUGUENIN, BOOTHMAN & MORROW FULBRIGHT & JAWORSKI OFFICES
2001 BRYAN TOWER, SUITE 1400
CALLAS, TEXAS 75201
TELEPHONE 1214) 9159·09159
BANK OF' THE SOUTHWEST BUILDING LANDMARK BUILDING, SUITE. 200
HOUSTON, TEXAS 77002
TELEPHONE (7131 851-5151
TELEX 78·28211
1150 CONNECTICUT AVE .. N.W.
705 EAST HOUSTON AVE HUE
SAN ANTONIO, TU(AS 78205
TELEPHONE 15121 224-5575
2001 &RYAN TOWER
WASHINGTON, o.c .20039 SUITE 1400
LANO~ARK BUILDING, SUITE ZOO
705 EAST HOUSTON AVENUE
SAN ANTONIO, TEXAS 78205
TELEPHONE 1512! 224·51522
TELEPHONE (202) 452·8800 DALLAS, TEXAS 75201
TELEX 811·2802 TELEPHONE 1214111811·111811
AMERICAN BANK TOWER, SUITE 1740 2 ST . .JAME.S'S PLACE
UUN 15 1983
$10,770,000
221 WC:ST SIXTH STREET
AUSTIN, TEXAS 78701
TELEPHONE 15121474-15201
LONDON, SWIA INP
TELEPHONE 101! 629-1207
TELEX 28310
CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND
POWER SYSTEM REFUNDING REVENUE BONDS, SERIES 1983
DATED MAY 15, 1983
IN REGARD to the authorization and issuance of the
above described Bonds (the "Bonds") by the City of Lubbock,
Lubbock County, Texas, we have examined into the legality
and validity of the Bonds, which are numbered consecutively
from One (1) upward, each in the denomination of $5,000,
mature on April 15 in each of the years 1984 through 2002,
unless redeemed prior to maturity in accordance with the
terms and conditions stated on the face of the Bonds, and
bear interest from date until paid, or the redemption thereof,
at the following rates per annum:
bonds maturing in the year 1984 at 5.50%;
bonds maturing in the year 1985 at 5.75%;
bonds maturing in the year 1986 at 6.25%;
bonds maturing in the year 1987 at 6.50%;
bonds maturing in the year 1988 at 6.75%;
bonds maturing in the year 1989 at 7.00%;
bonds maturing in the year 1990 at 7.40%;
bonds maturing in the year 1991 at 7.70%;
bonds maturing in the year 1992 at 8.00%;
bonds maturing in the year 1993 at 8.15%;
bonds maturing in the year 1994 at 8.30%;
bonds maturing in the year 1995 at 8.40%;
bonds maturing in the year 1996 at 8.50%;
bonds maturing in the year 1997 at 8.65%;
bonds maturing in the year 1998 at 8.75%;
bonds maturing in the year 1999 at 8.90%;
bonds maturing in the years 2000 through 2002 at 9.00%;
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such interest being evidenced by coupons and payable on
October 15, 1983, and semiannually thereafter on April 15
and October 15 in each year.
WE HAVE SERVED AS BOND COUNSEL TO THE CITY solely for
the purpose of rendering an opinion as to the authorization,
issuance, delivery, legality and validity of the Bonds under
the Constitution and laws of the State of Texas, the release
and discharge of the lien on and pledge of the revenues
securing the payment of the City's bonds being refunded by
the Bonds, the exemption of interest on the Bonds from
federal income taxes and none other. We have not been requested
to investigate or verify, and have not independently investigated
or verified, any records, data or other material relating to
the financial condition or capabilities of the City or the
City's Electric Light and Power System and have not assumed
any responsibility with respect thereto.
WE HAVE EXAMINED applicable and pertinent provisions of the
Constitution and laws of the State of Texas, and the "Special
Escrow Fund Agreement" (the "Escrow Agreement") between the
City and the Texas Commerce Bank, National Association, Lubbock,
Texas (the "Escrow Agent"}, the report of Ernst & Whinney,
Certified Public Accountants, a transcript of the certified
proceedings of the City relating to the authorization and issuance
of the Bonds, including the ordinance authorizing the issuance
of the Bonds (the "Ordinance"), customary certifications and
opinions of officials of the City and other showings pertinent
to the authorization and issuance of the Bonds.
WE ALSO HAVE EXAMINED executed Bond Number One of said
series and find same in due form of law and properly executed.
BASED ON OUR EXAMINATIONS, IT IS OUR OPINION that the Escrow
Agreement has been duly authorized, executed and delivered
and constitutes a binding and enforceable agreement between the
parties thereto in accordance with its terms and that the
outstanding and unpaid "City of Lubbock, Texas, Electric Light
and Power System Revenue Bonds, Series 1981" being refunded,
discharged, paid and retired with the proceeds of the Bonds,
and the terms of the ordinance authorizing their issuance,
have now been appropriately defeased and are regarded as being
outstanding only for the purpose of receiving payment out of
the funds provided therefor now held in trust for that purpose
by the Escrow Agent, pursuant to the terms of the Escrow
Agreement and in accordance with the provisions of Article 717k:,
V.A.T.C.S. In rendering such opinion, we have relied upon
the verification of Ernst & Whinney as to the sufficiency of
cash and investments deposited with the Escrow Agent for purposes
of paying the obligations being refunded with the proceeds of
the Bonds and the interest thereon.
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IT IS OUR FURTHER OPINION that the Bonds were duly authorized
and issued in compliance with the Constitution and .laws of the
State of Texas now in force and constitute valid and legally
binding special obligations of the City of Lubbock, Texas,
in accordance with the terms and conditions thereof and,
together with the outstanding Previously Issued Bonds (identified
and defined in the Ordinance),are payable solely from and equally
secured by a first lien on and pledge of the Net Revenues (as
defined in the Ordinance) of the City's Electric Light and Power
System. The City has reserved the right, subject to satisfying
the terms and conditions prescribed therefor in the Ordinance,-
to issue additional parity obligations payable from the same
source and equally secured in the same manner as the Bonds
and the Previously Issued Bonds.
IT IS ALSO OUR OPINION that interest on the Bonds is
.exempt from federal income taxes under existing law. In
considering the matter of whether the Bonds are "arbitrage
bonds" under Section 103{c) of the Internal Revenue Code of
1954, as amended, we have examined certain certifications
and other showings regarding the use and investment of the
proceeds of the Bonds and a report of Ernst & Whinney,
Certified Public Accountants, wherein there are presented
yield calculations and methods employed in such computations.
In rendering our opinion with regard to the tax exempt status
of the Bonds, we have relied upon such certifications and the
report of Ernst & Whinney for the mathematical accuracy of
the yield calculations referred to above.
EHE/js
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DUMAS, HUGUENIN, BOOTHMAN & MORROW
2001 BRYAN TOWER, !IUITE 1400
OALLAS, TEXAS 76201
TELEPHONE 12141 SUSlil·Olil6fil
'-"NDMARK BUILDING, SUITE 200 .. .
705 EAST HOUSTON AVENUE
SAN ANTONIO, TEXAS 7B205
TELEPHONE (5121 224·51522
~UN 151983
Rauscher Pierce Refsnes, Inc.
Plaza of the Americas
2400 North Tower
Dallas, Texas 75201
Blyth Eastman Paine Webber, Inc.
8200 Mopac Expressway, Suite 100
Austin, Texas 78759
FULBRIGHT & .JAWORSKI Of'F"ICES
BANK 0~ THE SOUTHWEST BUILDING LANDMARK BUILDING. SUITE 200
HOUSTON, TEXAS 77002 7015 EAST HOUSTON AVENUE
T£LEPHON£ 1713) e!51-!51&1 SAN ANTONIO, TE.XAS 78205
TELEX 78·2829 TELEPHONE,5121224·5575
1150 C.ONN£CTICUT AV£ .. N.W. 2001 BR'l'AN TOWER
WASHINGTON, 0-C. 2003e SUITE 1400
TELEPHONE 12021 .. 152·8800 DALLAS, TEXAS 715201
TE:LEX 811-2802 TELEPHONE 121 .. 111811·111611
AMERICAN BANK TOWER, SUITE 1740 2 ST . .JAMES1S PLACE
221 WEST SIXTH STREET LONDON, SWIA INP
AUSTIN, TEXAS 78701 TELEPHONE tOI) 829·1207
TELEPHONE 1512) 474·5201 TELEX 28310
Re: $10,770,000 "City of Lubbock, Texas, Electric Light and
Power Refunding Revenue Bonds, Series 1983" dated
May 15, 1983
Gentlemen:
In reference to the issuance and sale of the above ,
described Bonds, we have served as Bond Counsel for the City
of Lubbock, Texas (the "City") and, in such capacity, prepared
the ordinance (the "Ordinance") authorizing the issuance of
the Bonds, which also approved and authorized the execution
of the "Purchase Contract" relating to the Bonds (the "Purchase
Contract") by and between the City and Rauscher Pierce
Refsnes, Inc. and Blyth Eastman Paine Webber, Inc. (the
"Purchasers") and approved and authorized distribution of
the "Official Statement" (the "Official Statement") relating
to the Bonds, finally adopted by the City Council of the
City on the 12thday of May, 1983, and have examined certain
other proceedings relating to the issuance and sale of the
Bonds as· follows:
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Page Two
(a) Resolution of the City Council approving and
authorizing the execution of the "Special Escrow Fund
Agreement" (the "Escrow Agreement"), dated June 15,
1983, between the City and Texas Commerce Bank, N.A.,
Lubbock, Texas (the "Escrow Agent");
(b) A copy of the Ordinance certified by the City
Secretary of the City;
(c) An executed copy of the Escrow Agreement;
(d) An executed copy of the Purchase Contract;
(e) An executed copy of the Official Statement;
and
(f) A report (the "Report"} of Ernst & Whinney
verifying the sufficiency of cash and investments
deposited with the Escrow Agent ·pursuant to the Escrow
Agreement for the purpose of paying the Refunded Bonds
(as defined in the Ordinance) to be retired with the
proceeds of the Bonds and the interest thereon.
Insofar as our examination of the Official Statement is
concerned, our review was limited to the information and
data contained therein under the headings "Plan of Financing",
"The Series 1983 Bonds", "Selected Provisions of the Ordinance"
and "Tax Exemption" to verify that such information and
descriptions conform to the provisions of the laws of the
State of Texas and the instruments described therein, and,
save and except for the foregoing headings, we have not
undertaken to determine independently the accuracy, complete-
ness or fairness of any other information, data or descriptions
contained in the Official Statement, including particularly,
but not limited to, the financial and statistical data
included therein.
Based upon and subject to the above and foregoing, and
our examination of such other information and documents,
including provisions of the Constitution and laws of the State
of Texas as we believ·e necessary to enable us to render
this opinion, we are of the opinion that:
A. The information in the Official Statement relating
to the Bonds and the Ordinance contained under the captions
of the Official Statement entitled "Plan of Financing",
"The Series 1983 Bonds", "Selected Provisions of the Ordinance",
and "Tax Exemption" in all material respects accurately and
fairly reflect the provisions thereof.
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B. The Bonds are exempted securities within the meaning
of Section 3(a) (2) of the Securities Act of 1933, as amended,
and it is not necessary in connection with the sale of the
Bonds to the public to register the Bonds under the Securities
Act of 1933, as amended, or to qualify the Ordinance under the
Trust Indenture Act of 1939, as amended.
In the performance of our duties as Bond Counsel for
the City, and our limited participation in the review of the
Official Statement as noted above, no facts came to our
attention which would lead us to believe that, as of this
date, the Official Statement (except for the financial data
and statistical data included therein to which no view is
expressed) contains an untrue statement of a material fact
or omits to state any material fact required to be stated
therein or necessary to make the statements therein, in the
light of the circumstances under which they were made, not
misleading.
Very truly yours,
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LAW OP'P"ICES
HUTCHISON PRICE BOYLE & BROOKS
RAY HUTCHISON
RAYFORD PRICE
JOHN P'. BOYLE, JFI.
SEN A . BROOKS
ROBERT E • .JOHNSON
ROBERT 0 . OAANSF'IELO
ALLEN MOON
JAMES C. HOLLAND
RICHARD A. YAHR
JAMES J. PANIPINTO
MARTHA A. PEAK
CHRISTINE YOUNGS
ROBERT E. JOHNSON, JR.
ADRIENNE C. LEONARD
SANORA L,MARHOEP'EA
. JOHN W. EASTMAN
A ~tllO~CSSIONAL eo-.~IIATION
211 NORTH ERVAY BUILDING. SUITE 1500
DALLAS,TEXAS 75201
(2141 742 -:saa2
June 15, 1983
Rauscher Pierce Ref snes, Inc.
2400 North Tower
Plaza of the Americas
Dallas, Texas 75201
. Blyth Eastman Paine Webber Incorporated
· 1201 Elm Street
Dallas, Texas 75270
AUSTIN OP'FICE:
1108 LAVACA STREET, SUITE ~0
AUSTIN, TEXAS 711701
(512) ~77-4121
Re: City of Lubbock, Texas, Electric Light and Power System Refund-
ing Revenue Bonds, Series 1983 $10,770,000
.Gentlemen:
We have acted as counsel for you as the Underwriters of $10,770,000
principal amount of City of Lubbock, Texas, Electric Light and Power System
'Refunding Revenue Bonds, Series 1983 (the "Bonds"), dated May 15, 1983, issued
by the City of Lubbock, Texas, (the "Issuer"), pursuant to an Ordinance adopted '
by the City Council of the Issuer on first and second reading on May 12, 1983
(the "Ordinance"). You are purchasing the Bonds pursuant to a certain Purchase •
Contract (the "Purchase Contract") with respect thereto, dated May 12, 1983.
We have examined such documents and satisfied ourselves as to such
matters as we have deemed necessary in order to enable us to express the
opinions set forth below.
We have not examined the Bonds, except a specimen thereof, and have
relied upon a certificate of the Issuer as to the execution thereof. As to various
questions of fact material to these opinions, we have relied upon representations
of the Issuer and statements in the Official Statement (the "Official Statement")
of the Issuer related to the Bonds.
Based upon the foregoing, in our opinion -
1. The Purchase Contract has been fully authorized, executed and
delivered by the Underwriters and constitutes a valid and enforceable agreement
of . the Underwriters in accordance with its terms;
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2. The requirements contained in the Purchase Contract which are
conditions precedent to the obligations of the Underwriters to accept and pay
for the Bonds have been met or waived by the Underwriters; and
3. The Bonds are exempt securities within the meaning of Section 3(a)(2)
of the Securities Act of 1933, as amended, and it is not necessary in connection
with the sale of the Bonds to the public to register the Bonds under the
Securities Act of 1933, as amended, or to qualify the Ordinance under the Trust
Indenture Act of 1939, as amended.
Except as otherwise specified herein, we have not verified and are not
passing upon, and do not assume any responsibility for, the accuracy, com-
pleteness or fairness of the statements contained in the Official Statement. We
have, however, participated in its preparation. Such participation included a
review of the matters contained in the Official Statement in light of the
business and affairs of the Issuer. We also participated in conferences with
representatives of the Issuer and we examined various laws, documents, records
and official actions of the Issuer pertaining to the Bonds and to the matters
disclosed in the Official Statement. In the course of the above described review
and activities, no facts have come to our attention which would lead us to
believe that the Official Statement (except for financial and statistical data
contained therein as to which no opinion is expressed), as of the date thereof (i)
contained any untrue statement of a material fact or (ii) omitted to state any
material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading.
This letter is furnished to you by us as counsel for the Underwriters and
is solely for your benefit and no one other than the Underwriters is entitled to
rely upon this letter.
Respectfully submitted,
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SIGNATURE AND NO-LITIGATION CERTIFICATE
THE STATE OF TEXAS
COUNTY OF LUBBOCK
WE, the undersigned, hereby certify as follows:
(1) That this certificate is executed and delivered with
reference to the following described bonds:
"CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REFUNDING
REVENUE BONDS , SERIES 19 8 3" ..
dated May 15, 1983, ·in the aggregate principal amount of $10,770,000.
(2) That the undersigned officially executed and signed
or countersigned said bonds and the interest coupons attached
thereto by causing their facsimile signatures to be placed on
each of said bonds and interest coupons and they hereby adopt
said facsimile signatures as their own and declare that the same
constitute their signatures the same as if they had manually
signed each of said bonds and interest coupons.
(3) That on the date of such execution in such manner and
on the date hereof, we were the duly chosen, qualified and
acting officers indicated therein and authorized to execute
the same. ··
(4) That the legally adopted ~proper and only official
corporate seal of the issuer is impressed, imprinted or
lithographed on all of said bonds and impressed on this
certificate~
. (5) We further certify that no litigation of any nature
is now pending or, to our knowledge, threatened affecting
directly or indirectly the validity of said obligations or
restraining, enjoining or in any other manner affecting the
issuance, sale, execution or delivery thereof, or the fixing
or collection of the revenues, rates and charges pledged to
pay the principal of and interest thereon, or the pledge so
made, or affecting, in any way the right or authority of the
issuer to pay said obligations, and the interest thereon,
or otherwise carrying out the terms and provisions of the
authorizing proceedings, and the covenants and agreements
therein, and each or any of them, or the corporate existence
or boundaries of said issuer, or the title of ·the present
officers or any of them to their respective offices, and
that none of the proceedings or authority for the issuance
of said obligations has been repealed, revoked, rescinded,
modified, changes or altered in any manner.
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(6) That no petition or other request has been filed with or
presented to any official of the issuer of these bonds requesting
that any proceedings authorizing-the same be submitted to a
referendum or other election.
( EXECUTED AND DELIVERED this __ J __ (.-(_11..__._ ___ l--'.S..,_1.._/"""'C:C .... f--.l'"--________ .
" --(ISSUER'S SEAL)
OFFICIAL TITLE
Mayor, City of Lubbock, Texas
City Secretary, City of
Lubbock, Texas
The signatures of the officers subscribed
above are hereby certified to be true and
genuine.
TEXAS COMMERCE BANK, LUBBOCI<, TEXAS
TONY WAYLAND
SENIOR VICE PRESIDENT
SENIOR OPERATIONS OFFICER
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UNITED STATES OF
AMERICA
~/ ·---:cm::.i.:i:::DJ-~...,~~.
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STATE OF TEXAS
COUNTY OF LUBBOCK
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ON THE FIFTEENTH DAY OF APRIL, 2002
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la lawfal aoaeF ef tlo• Unite,! ltatoo of Ammc-. and lo ,..,. latonot tlwaoa ,_ tllo ate lloNof ntD pold, or &loo ndemptlo11 IMraof la ---wltll Ula ..._ 11...,riloed Ulonfor, ~ tllo rat• of
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TBll BONDS malllrias on and ofter AprQ IS, 1194, :, • I._ tllo option of the CltF, t• •~ole or HF -,.rt theroof, :;i:.':.-:1 ~f!:,1,, ;:,~"b~=.t ~•=t•fJ; Ta; • r • •eel to~f aP:!f!::u::~ Ji:;!n to .. !';: :-~~t~ ":!r.'i:t~i' .::: nden,pllon lopeclfrlnc u,, -1•1 •aa,bon 11.11d •-at of Hmed) to .. flied with tlle Parln,r .Ac•nto 11.11d to be pabll1h•d •t 1-1 """" ta a 11.nan.elal paMleaU011 of sen.-ral elreu.l11tlon In Th• C Tork. New Yol'k. tt each written eottce of ndemptton a. ftled with the Pa,-ln• .Apate u• pubHah.ed all u »l'O't'lde1t •bcr,e. at14 If du p in fOf' »-7ffl•nt of th• l'edtlllptiOII price 19 111ade with the P•~fns A"nt1 ~ the r .. •mpt.lcm date. th• Boada eo Nd•111ed ahall ..,.., to '9ar In.tenet: after the date theed for ftdnnptlott aad ehall aot M reearded u kin• nt1tandf•• -tor th rislrt of tlle ....... te neel•• tllo Nclomptlo11 ••loo from tloo l'ar!ac Acnt.l oat or tllo tnnclo 1JTOrldocl for oac:b P•Ylllfflt.
Onll~eer.0~~~J~~e1-:Tr!!. °!!1l"!!:t1:' .!:~~ ·:\:i-11::r .:1=.r:,::~;1\.":: .t"::1~:n!:~.!0:.!~ <::;:u:eu1:.1!lt:n:. •i::,~
-) of th Cltr'a EINlrio Licht and P•-• Snteta. For a -n -Pitta -ripllon and ldentlftc•Uoa ef tlae l'Offlla• plodcocl to tho paymont of Ula Bonda, nr-i. llorffF -d• lo tll• Ordln•nco.
mm~~ ... -=:t~ :":r::•r,;,. •::1~ ':,J: !T~~N:: t:::.!: !r't.~~:-..r.· ~.t~~:1.!:'.~11~:'t!:.0r:':::.: :!1::!!0::.r:::
-Glonl 10 tlle Bo•* -tile l'rnlon•IF laaod Bond••
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JT Ill Rl:lll:SY Clt:llTIFIED AND BECITl!lD that t111 IHaane• of the Bond• lo nl,. aatlloriaed IIF law; tll•t •R -. eondltlon• and tlllnco n-.-lnd to at•t ud to N ..,.. ,NHCMftt to •1'd In U.. lenance of tll• Bond, to nnder tile Nme lawrul and fl.ll• 'han '-en propuJ7 don•. h•ff happned and han '"n INl'formed tn ncul•r •ad 4ue time, tom. and mannn u ncaalred b,. the Con1tftatfon a11,d lawa of. the State of Tau and Ille Onllnance lllenln•boY• menttoned r that the Bonda do not ueeed a11-, eonUtatfonal or 1tatator-, limitation : ••• U.at n;mloa IIN ken •ad• ~•~•cr,::tl.t'i!':. 'r•=~!. or.._:.~=-~~• Boaclo •r lnff-hlr plodclns tlte Not --of Ula Elootrle ht aacl Po_, lntono
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COUNTERIIOHEI>:
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TREASURER'S RECEIPT
THE STATE OF TEXAS
COUNTY OF LUBBOCK
s s s
THE UNDERSIGNED HEREBY CERTIFIES as follows:
(1) That this certificate is executed and delivered
with respect to the following described bonds: "CITY OF
LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REFUNDING
REVENUE BONDS, SERIES 1983" dated May 15, 1983, in the
aggregate principal amount of $10,770,000. ·
(2) That on the date shown below as the date of execution.
and delivery of this instrument, the said bonds were delivered
to the purchaser thereof, namely: RAUSCHER PIERCE REFSNES, INC.,
Dallas, Texas and BLYTH EASTMAN PAINE WEBBER, INC., Dallas, Texas.
(3) That all of said bonds have been paid for in full
by the purchaser concurrently with the delivery of this
certificate, and the issuer of said bonds has received the
agreed purchase price for the said bonds, as follows:
PRINCIPAL AMOUNT-------------------
ACCRUED INTEREST-------------------
LESS DISCOUNT-•~----~--------------
TOTAL AMOUNT RECEIVED ON ~
$10,770,000.00
68,050.83
169,950.60
DELIVERY OF THE BONDS--------$10,668,100.23
(4) That the undersigned has executed this certificate in
the capacity hereinafter shown for and on behalf of the said
issuer of bonds. ·
EXECUTED AND DELIVERED this
~-7JA_~ CtyTreasurer
City of Lubbock~em
The foregoing signature of the foregoing designated official
of the issuer is hereby certified as genuine •
.IEXAs COMMERCE BANK, LUBBOCK, TEXAS
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(Bank Seal)
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RECEIPT OF
TEXAS COMMERCE BANK-DALLAS,·N.A., DALLAS, TEXAS
THE STATE OF TEXAS
COUNTY OF DALLAS
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The Texas Commerce Bank-Dallas, N.A., Dallas, Texas,
(the "Bank of Delivery"), in regard to the issuance and
delivery of $10,770,000 "CITY OF LUBBOCK, TEXAS, ELECTRIC
LIGHT AND POWER SYSTEM REFUNDING REVENUE BONDS, SERIES 1983"
dated May 15, 1983 (the "Bonds"), hereby acknowledges receipt
from Rauscher Pierce Refsnes, Inc. and Blyth Eastman Paine
Webber, Incorporated, the sum of $10,668,100.23.
. -Upon receipt of said amount, the following disbursements
were made:
· (1) Transferred by the fastest
means available in immediately ·
available funds to the Texas
Commerce Bank, N.A., Lubbock,
Texas, th~ sum of-------------:------------$10,583,875.23
(2) Issued to First Southwest
Company, Dallas, Texas, a Cashiers'
Check in the amount of--------------------84,225.00
DATED, this 6-/.S -i .3.
TEXAS COMMERCE BANK-DALLAS,N.A.
(Bc3.-nk -Se~l)
Dallas, Texas
BY R~~z{~
Title I). p .
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ACKNOWLEDGEMENT OF _RECEIPT AND DISBURSEMENT OF FUNDS
TEXAS COMMERCE BANK, N.A., LUBBOCK, TEXAS
THE STATE OF TEXAS
COUNTY OF LUBBOCK
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The Texas Commerce Bank, N.A., Lubbock, Texas (the "Bank"),
in regard to the delivery of the "City of Lubbock, Texas, Electric
Light and Power System Refunding Revenue Bonds, Series 1983"
dated May 1?, 1983, in the principal sum of $10,770,000 (the
"Bonds"}, and as Escrow Agent under and pursuant to the Special
Escrow Fund Agreement between the City of Lubbock, Texas and the
Bank, hereby acknowledges receipt from the ·Texas Commerce Bank-
Dallas, N.A., Dallas, Texas, the sum of $10,583,875.23, and
upon the receipt of said total amount, the following disbursements
were made:
(1) Payment to the Federal Reserve Bank,
Dallas, Texas, for the purchase of United
States Treasury Securities -State and Local
Government Series (identified in the sub-
scription forms attached to the Special
Escrow Fund Agreement as Exhibit B}, the
sum of---------------~------------------------$ 10,497,600.00
(2) Deposited into the "Special 1983
City of Lubbock Refunding Bond Escrow
Fund" for a beginning .-cash balance;
the sum of ------------------_-,----------------71. 55
(3) Payment of _:sEscrow Agent's fees and
paying agent's charges, the sum of------------
(4) Deposited into the "Special Electric
Light and Power System Revenue Bond Retire-
ment and Reserve Fund", the sum of------------
all in accordance with the instructions from the City of
Lubbock, Texas.
DATED, this Su, .. ~ I.S. I~</~ • --------. -----------
16,000.00
70,203.68
BANK,N.A., Lubbock,Texas
:.: (Bank Seal)
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