HomeMy WebLinkAboutResolution - 1592 - Notice Of Sale - General Obligation & Revenue Bonds - 02/23/1984RESOLUTION 1592 - 2/23/84
RESOLUTION
WHEREAS, the City Council of the City of Lubbock, Texas desires to receive
bids for the purchase of its $13,775,000 General Obligation Bonds, Series 1984 and
$10,000,000 Electric Light and Power System Revenue Bonds, Series 1984; and
WHEREAS, First Southwest Company, Dallas, Texas, has been authorized and
requested to prepare a Notice of Sale and Bidding Instructions, Official Bid Form
and Official Statement containing financial, economic and other data necessary
and desirable to attract bids for said bonds;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF LUBBOCK, TEXAS:
That the attached Notice of Sale and Bidding Instructions, Official Bid Form
and Official Statement relative to $13,775,000 City of Lubbock, Texas General
Obligation Bonds, Series 1984 and $10,000,000 Electric Light and Power System
Revenue Bonds, Series 1984, are hereby approved, both as to form and content, and
said First Southwest Company is authorized to distribute said Notice of Sale and
Bidding Instructions, Official Bid Form and Official Statement to prospective
bidders for, and purchasers of, the bonds.
PASSED AND APPROVED this the 23rd day of February, 1984, by the City
Council of the City of Lubbock, Texas, convened in regular session with a lawful
quorum present.
.ATTEST:
City Secretary
NOTICE OF SALE
AND
BIDDING INSTRUCTIONS
ON
$13,773,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
GENERAL OBLIGATION BONDS, SERIES 1984
Selling Thursday, March 22, 1984, at 11:00 AM, CST
THE SALE
Bonds Offered for Sale at Com titive Bidding .. The City of Lubbock, Texas (the "City"), Is offering for
sale its $13,775,000 General Obligation Bonds, Series 1984 (the "Bonds" or "Bond', which shall Include, for
purposes of definition, the Initial Bond).
Address of Bids ... Sealed bids, plainly marked "Bid for Bonds", should be addressed and delivered to
Mrs. Evelyn E. Gaffga, City Secretary, City of Lubbock, Texas", prior to 11:00 AM, CST, on the date of
the bid opening. All bids must be submitted on the Official Bid Form, without alteration or InterlineatIon.
Place and Time of Bid O enin ... The City Council will open and publicly read the bids for the purchase
of the Bonds at the City Hall, Lubbock, Texas, at 11:00 AM, CST, Thursday, March 22, 1984.
Award of the Bonds ... The City Council will take action to award the Bonds (or reject all bids) promptly
after the opening of bids, and adopt an ordinance authorizing the Bonds and approving the Official
Statement (the "Ordinance").
THE BONDS
Description ... The Bonds will be dated April 15, 1984 (the "Bond Date"), and interest will be due on
February 15, 1985, and each August 15 and February 15 thereafter until the earlier of maturit or prior
redemption. The Bonds will be issued only In fully registered form In any Integral multiple of 5,000 for
any one maturity, and principal and semi-annual Interest will be paid by ,
the paying agent/registrar (the "Paying Agent/Registrar"). Principal oft Bon will—payable to t
registered holder or owner (the "Holder" or "Owner") at maturity or redemption upon presentation at the
principal corporate office of the Paying Agent/Registrar. Interest on the Bonds will be payable by check,
dated as of the Interest payment date, and mailed by the Paying Agent/Registrar to registered Holders as
shown on the records of the Paying Agent/Registrar on the Record Date (see "Record Date for Interest
Payment" herein). The Bonds will mature on February 15 In each year as follows:
The City reserves the right, at Its option, to redeem Bonds maturing February 15, 1995, through
February 15, 2004, both Inclusive, In whole or any part thereof by lot, on February 15, 1994, or any
Interest payment date thereafter, at the par value thereof plus accrued Interest to the date fixed for
redemption. If less than all of the Bonds are to be redeemed by the City, the City shall determine the
maturity or maturities and the amounts thereof to be redeemed and shall direct the Paying Agent/
Registrar to call by lot Bonds, or portions thereof, for redemption. Not less than 30 days prior to a
redemption date for the Bonds, the City shall cause a notice of redemption to be sent by United States
mail, first class, postage prepaid, to each Holder of a Bond to be redeemed, In whole or in part, at the
address of the Holder appearing on the registration books of the Paying Agent/Registrar at the time such
notice of redemption is mailed.
Limitation on Transfer of Bonds Called for Redemption... Neither the City or the Paying Agent/
Registrar shall be required to Issue or transfer to an assignee of the Holder of the Bonds any Bond called
for redemption, In whole or In part, within 45 days of the date fixed for redemption; provided, however,
such limitation of transfer shall not be applicable to an exchange by the Bond Holder of the unredeemed
balance of a Bond called In part for redemption.
-I-
Principal
Principal
Principal
Year
Amount
Year
Amount
Year
Amount
985
30T,000
T9'92
75,000
T998
5700,000
1986
675,000
1993
675,000
1999
700,000
1987
675,000
1994
700,000
2000
700,000
1988
675,000
1995
700,000
2001
700,000
1989
675,000
1996
700,000
2002
700,000
1990
675,000
1997
700,000
2003
700,000
1991
675,000
2004
700,000
The City reserves the right, at Its option, to redeem Bonds maturing February 15, 1995, through
February 15, 2004, both Inclusive, In whole or any part thereof by lot, on February 15, 1994, or any
Interest payment date thereafter, at the par value thereof plus accrued Interest to the date fixed for
redemption. If less than all of the Bonds are to be redeemed by the City, the City shall determine the
maturity or maturities and the amounts thereof to be redeemed and shall direct the Paying Agent/
Registrar to call by lot Bonds, or portions thereof, for redemption. Not less than 30 days prior to a
redemption date for the Bonds, the City shall cause a notice of redemption to be sent by United States
mail, first class, postage prepaid, to each Holder of a Bond to be redeemed, In whole or in part, at the
address of the Holder appearing on the registration books of the Paying Agent/Registrar at the time such
notice of redemption is mailed.
Limitation on Transfer of Bonds Called for Redemption... Neither the City or the Paying Agent/
Registrar shall be required to Issue or transfer to an assignee of the Holder of the Bonds any Bond called
for redemption, In whole or In part, within 45 days of the date fixed for redemption; provided, however,
such limitation of transfer shall not be applicable to an exchange by the Bond Holder of the unredeemed
balance of a Bond called In part for redemption.
-I-
Tax Equity and Fiscal Res nsibilit Act of 1982 ("TEFRA") ... TEFRA, as amended, mandates, among
of er things, that all municipal nds texceptIng triose with a one year maturity or less) must be
registered in the owner's name, beginning with July 1, 1983.
Successor Paying Agent/Registrar ... Provision Is made In the Ordinance for replacement of the Paying
Agent Registrar. The City covenants to maintain and provide a Paying Agent/Registrar at all times while
the Bonds are outstanding and any successor Paying Agent/Registrar shall be a bank, trust company,
financial Institution, or other entity (which Includes the City of Lubbock, Texas) duly qualified and legally
authorized to serve as and perform the duties and services of Paying Agent/Registrar for the Bonds. Upon
any change in the Paying Agent/Registrar for the Bonds, the City agrees to promptly cause a written
notice thereof to be sent to each registered Owner of the Bonds by United States mail, first class, postage
prepaid, which notice shall also give the address of the new Paying Agent/Registrar.
Source of Payment ... The Bonds are direct and voted general obligations payable out of the receipts
from an ad valorem tax levied, within the limits prescribed by law, on taxable property located within the
City, as provided in the Ordinance authorizing the Bonds.
CONDITIONS OF THE SALE
Type of Bids and Interest Rates ... The Bonds will be sold In one block on an "Ali or None" basis, and at a
price of not less than their par value plus accrued interest to the date of delivery of the Bonds. Bidders
are invited to name the rate(s) of interest to be borne by the Bonds, provided that each rate bid must be In
a multiple of 1/8 of 1% or 1/20 of 1% and the effective interest rate must not exceed 15%. The highest
rate bid may not exceed the lowest rate bid by more than 3% in rate. No limitation Is Imposed upon
bidders as to the number of rates or changes which may be used. All Bonds of one maturity must bear one
and the same rate. No bids involving supplemental interest rates will be considered. Each bidder shall
state in his bid the total interest cost in dollars and the net effective Interest rate determined thereby
(calculated in the manner prescribed by Article 717k-2, VATCS), which shall be considered Informative
only and not as a part of the bid.
Basis for Award ... For the purpose of awarding the sale of the Bonds, the Interest cost of each bid will
be computed by determining, at the rate or rates specified therein, the total dollar cost of all Interest on
the Bonds from the Bond Date to their respective maturities, using the table of Bond Years herein, and
deducting therefrom the premium bid, If any. Subject to the City's right to reject any or all bids and to
waive any irregularities except time of filing, the Bonds will be awarded to the bidder or syndicate
account whose name first appears on the Official Bid Form (the "Initial Purchaser" or "Purchaser") whose
bid based on the above computation produces the lowest net effective Interest cost to the City.
Good Faith Deposit ... A Good Faith Deposit, payable to the "City of Lubbock, Texas", In the amount of
275,500.00, Is required. Such Good Faith Deposit shall be in the form of a Cashier's Check, or its
equivalent, which is to be retained uncashed by the City pending the Purchaser's compliance with the
terms of his bid and the Notice of Sale and Bidding Instructions. The Good Faith Deposit may accompany
the Official Bid Form or It may be submitted separately. If submitted separately, it shall be made
available to the City prior to the opening of the bids, and shall be accompanied by instructions from the
bank on which drawn which authorize its use as a Good Faith Deposit by the Purchaser who shall be named
In such instructions. The Good Faith Deposit of the Purchaser will be applied on the purchase price on the
date of delivery of the Bonds. No interest will be allowed on the Good Faith Deposit. In the event the
Purchaser should fail or refuse to take up and pay for the Bonds in accordance with his bid, then said
check shall be cashed and accepted by the City .as full and complete liquidated damages. The checks
accompanying bids other than the winning bid will be returned immediately after the bids are opened, and
an award of the Bonds has been made.
DELIVERY OF THE BONDS AND ACCOMPANYING DOCUMENTS
CUSIP Numbers ... It is anticipated that CUSIP Identification numbers will appear on the Bonds, but
neither the failure to print or type such number on any Bond nor any error with respect thereto shall
constitute cause for a failure or refusal by the Purchaser to accept delivery of and pay for the Bonds in
accordance with the terms of this Notice of Sale and the terms of the Official Bid Form. All expenses in
relation to the printing or typing of CUSIP numbers on the Bonds shall be paid by the City, provided,
however, that the CUSIP Service Bureau charge for the assignment of the numbers shall be the
responsibility of and shall be paid for by the Purchaser.
initial Deliver of Initial Bond ... Initial Delivery will be accomplished by the Issuance of one Initial Bond
a so ca e t e "Bonds"), either In typed or printed form, in the aggregate principal amount of
$13,775,000, payable In stated Installments to the Purchaser, signed by the Mayor and City Secretary,
either manual or facsimile, approved by the Attorney General, and registered and manually signed by the
Comptroller of Public Accounts. Initial Delivery will be at the principal corporate office of the Paying
Agent/Registrar. Payment for the Bonds must be made in immediately available funds for unconditional
credit to the City, or as otherwise directed by the City. The Purchaser will be given six business days'
notice of the time fixed for delivery of the Bonds. " It is anticipated that Initial Delivery of the Initial
Bond can be made on or about April 26, 1984,and It is understood and agreed that the Purchaser will
accept delivery and make payment for the Initial .Bond by 10:00 AM, CST, on April 26, 1984, or thereafter
on the date the Bond is tendered for delivery;;u'p;_to and Including May 10, 1984. The Purchaser will not be
required to pay for the Initial gond until such'"time as #lie efinitive Bonds are available and have been
duly registered. If for any reason the City Is unable to make delivery on or before May 10, 1984, then the
City shall Immediately contact the Purchaser and offer to allow the Purchaser to extend his offer for an
additional thirty days. If the Purchaser 'does not elect to extend his offer within six days thereafter, then
his Good Faith Deposit will be returned, and both the City and the Purchaser shall be relieved of any
further obligation. In no event shall the City be liable for any damages by reason of Its failure to deliver
the Bonds, provided such failure is due to circumstances beyond the City's reasonable control.
Delivery of Definitive Bonds ... Upon payment for the Initial Bond at the time of the initial Delivery, the
Paying Agent Registrar shall cancel the Initial Bond, provided registration instructions have been received
by the Paying Agent/Registrar, and shall register and deliver the registered definitive Bonds, In any
integral multiple of $5,000 for any one maturity, in accordance with Instructions received from the
Purchaser and/or members of the Purchaser's syndicate account. It shall be the duty of the Purchaser to
furnish to the Paying Agent/Registrar, at least five business days prior to the Initial Delivery, written
instructions on forms which the Purchaser must request and obtain from, and which shall be provided by,
the Paying Agent/Registrar designating the names In which the Bonds are to be registered, the addresses
of the registered Holders, the maturities, Interest rates and denominations. If such forms are not
available, written instructions by letter shall be furnished to Paying Agent/Registrar. The Paying
Agent/Registrar will not be required to accept registration instructions after the fifth business day prior
to Initial Delivery. If such written Instructions are not received within the specified time period, the
cancellation of the Initial Bond and delivery of registered definitive Bonds will be delayed until such
written instructions are received.
Conditions to Delivery ... The obligation of the Purchaser to take up and pay for the Bonds Is subject to
the Purchaser's receipt of. _(a) the legal opinion of Messrs. Dumas, Huguenin, Boothman do Morrow, Dallas,
Texas, Bond .Counsel for the City ("Bond Counsel"), (b) the no -litigation certificate, and (c) the
certification as to the Official Statement, all as further described In the Official Statement.
Legal Opinions ... The Bonds are offered when, as and If issued, subject to the unqualified legal opinion
of the Attorney General of the State of Texas, and Messrs. Dumas, Huguenin, Boothman do Morrow (see
Legal Opinions in Official Statement}, the opinion of said firm will be printed on the Bonds.
Certification of Official Statement ... At the time of payment for, and Initial Delivery of, the Initial
Bond, the City Will execute an iver to the Purchaser a certificate in the form set forth In the Official
Statement.
Change InTaxExem t Status At any time before the Bonds are tendered for delivery, the Purchaser
may withdraw his :bid It the Interest received by private holders from bonds of the same type and
character shall be declared to be taxable Income under present Federal income tax laws, either by ruling
of the internal Revenue Service or by a decision of any Federal court, or shall be declared taxable or be
required to be taken into account in computing any Federal Income taxes, by the terms of any Federal
Income tax law enacted subsequent to the date of this Notice of Sale and Bidding Instructions.
GENERAL
Future Registration ... The Bonds may be transferred, exchanged and registered only on the registration
books of the Paying Agent/Registrar, and such registration and transfer shallbe without expense or
service charge to the Holder, except for any tax or other governmental charges required to be paid with
respect to such registration and transfer. A Bond may be assigned by the execution of an assignment form
on the Bond or by other instrument of transfer and assignment acceptable to the Paying Agent/Registrar.
A new Bond or Bonds will be delivered by the Paying Agent/Registrar, in lieu of the Bond being
transferred or exchanged, at the principal corporate office of the .Paying Agent/Registrar, or sent by
United States mail, first class, postage prepaid, to the new registered Holder or his designee. To the
extent possible, new Bonds issued in an exchange or transfer of Bonds will be delivered to the registered
Holder or assignee of the Holder in not more than three business days after the receipt of the Bonds to be
cancelled, and the written Instrument of transfer or request for exchange duly executed by the Holder or
his duly authorized agent, In form satisfactory to the Paying Agent/Registrar. New Bonds registered and
delivered in an exchange or transfer shall be in any Integral multiple of $5,000 for any one maturity and
for a like aggregate principal amount as the Bond or Bonds surrendered for exchange or transfer.
Record Date for Interest Payment ... The record date C'Record Date") for the interest payable on any
interest payment date means the last business day of the preceding month.
In the event of a non-payment of interest on a scheduled payment date, and for 30 days thereafter, a new
record date for such interest payment (a "Special Record Date") will be established by the Paying
Agent/Registrar, if and when funds for the payment of such Interest have been received from the City.
Notice of the Special Record Date and of the scheduled payment date of the past due interest (the
"Special Payment Date" which shall be 13 days after the Special Record Date) shall be sent at least five
business days prior to the Special Record Date by United States mail, first class, postage prepaid, to the
address of each Holder of a Bond appearing on the books of the Paying Agent/Registrar at the close of
business on the last business day next preceding the date of mailing of such notice.
Financial Advisor's Right to Bid ... First Southwest Company, the City's Financial Advisor, reserves the
right to bid on the Bonds.
Blue Sky Laws ... By submission of his bid, the Purchaser represents that the sale of the Bonds in states
other than Texas will be made only pursuant to exemptions from registration or, where necessary, the
Purchaser will register the Bonds in accordance with the securities law of the states In which the Bonds
are offered or sold. The City agrees to cooperate with the Purchaser, at the Purchaser's written request
and expense, in registering the Bonds or obtaining an exemption from registration In any state where such
action is necessary.
Not an Offer to Sell ... This Notice of Sale does not alone constitute an offer to sell the Bonds, but is
merely notice of the sale of the Bonds. The offer to sell the Bonds Is being made by means of the Notice
of Sale and Bidding instructions, the Official Bid Form and the Official Statement. Prospective
purchasers are urged to carefully examine the Official Statement to determine the investment quality of
the Bonds.
Issuance of Additional Bonds ... Following sale of the Bonds, the City will have $11,357,000
authorized but unissued General Obligation Bonds. The CIty plans to market these bonds during the period
1985 through 1987; in addition, the Clty Council has the right to submit additional General Obligation
bond proposals to the voters for approval at any time.
Ratings ... The outstanding General Obligation Bonds of the City are rated "Aa" by Moody's Investors
Service, Inc. and "AA" by Standard do Pooes Corporation. Applications for contract ratings on this Issue
have been made to both Moody's and Standard do Poor's. The results of their determinations will be
provided as soon as possible. _.
Municipal Bond Insurance ... In the event the Bonds are qualified for municipal bond insurance, and the
Purchaser desires to purchase such Insurance, the cost therefor will be paid by the Purchaser.
The Official Statement ... The City will furnish to the Purchaser, without cost, 100 copies of the Official
Statement and 100 copies of any addenda, supplement or amendment thereto), complete except as to
interest rates and other terms relating to the reoffering of the Bonds. The Purchaser may arrange at his
own expense to have the Official Statement reproduced and printed If he requires more than 100 copies,
and may also arrange, at his total expense and responsibility, for completion and perfection of the first or
cover page of the Official Statement so as to reflect Interest rates and other terms and Information
related to the reoffering of the Bonds. The City assumes no responsibility or obligation for the
distribution or delivery of any of these copies to any one other than the Purchaser.
Additional Copies of Notice Bid Form and Statement ... A limited number of additional copies of this
Notice of Sale and Bidding Instructions, the Official Bid Form and the Official Statement, as available
over and above the normal mailing, may be obtained at the offices of First Southwest Company,
Investment Banken, 800 Mercantile Dallas Building, Dallas, Texas 75201, Financial Advisor to the City.
The City reserves the right to reject any and all bids and to waive Irregularities, except time of filing.
The City Council, by resolution adopted this 23rd day of February, 1984, approved the form and content of
the Notice of Sale and Bidding Instructions, the Official Bid Form and Official Statement, and has
authorized the use thereof in its Initial offering of the Bonds. On the date of the sale, the City Council
will, in the Ordinance authorizing the Issuance of the Bonds, reconfirm its approval of the form and
content of the Official Statement, and any addenda, supplement or amendment thereto, and authorize its
further use in the reoffering of the Bonds by the Purchaser.
ATTEST:
EVELYN E. GAFFGA
City Secretary
February 23, 1984
Iv -
ALAN HENRY
Mayor
BOND YEARS
Average Maturity ---------------------------------10.423 Years
Accumulated
Year
Amount -,
Bond,Years .,
Bond Years
Year
1985 S
675,000
562.500
562.500
1985
1986
675,000
1.237.500
1,800.000
1986
1987
675,000
1,912.500
3,712.500
1987
1988
675.000
2.587.500
6,300.000
1988
1989
675,000
3,262.500
9.562.500
1989
1990
675,000
3.937.500
13,500.000
1990
1991
675,000
4,612.500
18,112.500
1991
1992
675,000
5,287.500
23,400.000
1992
1993
675,000
5,962.500,
29,362.500
1993
1994
700,000
6,883.333
36.245.833
1994
1995
700,000
7,583.333
43.629.166
1995
1996
700.000
8,283.333
52,112.499
1996
1997
700,000
8,983.333
61.095.832
1997
1998
700,000
9,683.333
70,779.165
1998
1999
700.000
10,383.333
81,162.498
1999
2000
700.000
11,083.333
92,245.831
2000
2001
700,000
11,783.333
104,029.164
2001
2002
700,000
12,483.333
116,512.497
2002
2003
700,000
13,183.333
129,695.630
2003
2004
700.000
13,883.333
143,579.163
2004
Average Maturity ---------------------------------10.423 Years
OFFICIAL BID FORM
Honorable Mayor and City Council
City of Lubbock
Lubbock, Texas
March 22, 1984
Mayor and Members of the City Council:
Reference is made, to your Official Statement and Notice of Sale and Bidding Instructions, dated
February 23, 1984, of $13,773,000 CITY OF LUBBOCK, TEXAS GENERAL OBLIGATION BONDS, SERIES
1984, both of which constitute a part hereof.
For your legally issued Bonds, as described In said Notice of Sale and Bidding Instructions and Official
Statement, we will pay you par
and accrued interest from date of issue to date of delivery to us, plus a
cash premium of $
for Bonds maturing and bearing Interest as follows:
Interest
Interest interest
Maturity Rate
Maturity Rate Maturity Rate
2-15-1985 %
2-15-1992 % 2-15-1998 %
2-15-1986 %
2-15-1993 % 2-15-1999 %
2-15-1987 %
2-15-1994 % , 2-15-2000 %
2-15-1988 %
2-15-1995 % 2-15-2001 %
2-15-1989 %
2-13-1996 % 2-15-2002 %
2-15-1990 %
2-15-1997 % 2-15-2003 %
2-15-1991 %
2-13-2004 %
Our calculation (which is not
a part of this bid) of the interest cost from the above is:
Total Interest Cost $
Less Premium
NET INTEREST COST $
EFFECTIVE INTEREST RATE
We are having the Bonds insured by
The Initial Bond shall be registered In the name of
(syndicate account manager). We will advise
Corporate Trust Division,eas, the Paying Agen egstrar, on
forms which may be provide y the Paying Agent/Registrar, our registration instructions at least five
business days prior to the date set for Initial Delivery. We will not ask the Paying Agent/Registrar to
accept any registration instructions after the fifth business day prior to lnitial Delivery.
Check of the Bank,_� in
the amount of 275,500.00, which represents our Good Faith Deposit bz attac hereto or has been
made available to you prior to the opening of this bid), and is submitted to accordance with the terms as
set forth In the Official Statement and Notice of Sale and Bidding Instructions.
We agree to accept delivery of and make payment for the Bonds in immediately available funds in the
Corporate Trust. Division, rTexas, not later than 10:00 AM, CST,
on April 26, 1984, or thereafter on t tetBonds are teen re��for delivery, pursuant to the terms set
forth in the Notice of Sale and Bidding instructions.
Respectfully submitted,
By
Authorized Representative
ACCEPTANCE CLAUSE
The above and foregoing bid Is hereby In all things accepted by the City of Lubbock, Texas, this the 22nd
day of March, 1984.
ATTEST:
City Secretary
ws�tw�r
Return of Good Faith Deposit is hereby acknowledged:
By
Mayor----
I
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.
OFFICIAL STATEMENT
Dated February 23, 1984
INTEREST EXEMPT, IN THE OPINION OF BOND COUNSEL,
FROM PRESENT FEDERAL INCOME TAXES
$13,775,000 -
CITY OF LUBBOCK, TEXAS
(Lubbock County)
GENERAL OBLIGATION BONDS, SERIES 1984
Dated: April 15, 1984 (the "Bond Date") Due: February 15, as shown below
Interest on the Bonds will be payable February 15 and August 15 of each year commencing
February 15, 1985. The Bonds will be Issued only In fully registered form In any Integral multiple of
$5,000 for any one maturity. Principal of the Bonds will be payable to the registered holder or owner (the
"Holder" or "Owner") at maturity or redemption upon presentation at the principal corporate office of
, , Texas, the paying agent/registrar (the "Paying Agent/
Registrar" . Interest on the Bonds will be payable by check, dated as of the interest payment date, and
mailed by the Paying Agent/Registrar to registered Holders as shown on the records of the Paying
Agent/Registrar on the Record Date (see "Record Date for Interest Payment" herein).
These bonds (the "Bonds" or "Bond', which shall Include for purposes of definition, the Initial Bond) were
authorized at elections held on various dates, and constitute direct and voted general obligations of the
City, payable from an ad valorem tax levied, within the limits prescribed by law, on taxable property
located within the City, as provided in the ordinance authorizing the Bonds (the "Ordinance").
MATURITY SCHEDULE
Amount Maturity Rate Yield Amount Maturit Rate Yield
675,000 2-15-1985 700,000 2-15-1991*
675,000 2-15-1986 700,000 2-15-1996*
675,000 2-15-1987 700,000 2-15-1997*
675,000 2-15-1988 700,000 2-15-1998*
675,000 2-15-1989 700,000 2-15-1999-
675,000 2-15-1990 700,000 2-15-2000*
675,000 2-15-1991 700,000 2-15-2001*
675,000 2-15-1992 700,000 2-15-2002*
675,000 2-15-1993 700,000 2-15-2003*
700,000 2-15-1994 700,000 2-15-2004*
* The City reserves the right, at its option, to redeem Bonds maturing February 15, 1995, through
February 15, 2004, both inclusive, In whole or any part thereof by lot, on February 15, 1994, or any
Interest payment date thereafter, at the par value thereof plus accrued interest to the date fixed for
redemption. If less than all of the Bonds are to be redeemed by the City, the City shall determine the
maturity or maturities and the amounts thereof to be redeemed and shall direct the Paying Agent/
Registrar to call by lot Bonds, or portions thereof, for redemption. Not less than 30 days prior to a
redemption date for the Bonds, the City shall cause a notice of redemption to be sent by United States
mail, first class, postage prepaid, to each Holder of a Bond to be redeemed, in whole or In part, at the
address of the Holder appearing on the registration books of the Paying Agent/Registrar at the time such
notice of redemption is mailed.
Payment Record: The City has never defaulted.
General of the State of Texas. and
Delivery: Anticipated on or about April 26, 1984.
TABLE OF CONTENTS
Page
Official Statement:
Descriptionof the Bonds----------------------------------------------------------
1
ElectedOfficlals----------------------------------------------------------- ----
3
AppointedOfficials--------------------------------------------------------------
3
Consultantsand Advisors---------------------------------------------------------
3
Registration--------------------------------------------------------------------
4
IntroductoryStatement-----------------------------------------------------------
5/6
Valuation and Debt Information----------------------------------------------------
7
AdValorem Taxation-------------------------------------------------------------
8/9
Other Liabilities-----------------------------------------------------------------
9/11
Funded Debt Limitation----------------------------------------------------------
12
Valuation and Funded Debt History -------------------------------------------------
12
TaxableAssessed Valuations by Category ---------------------------------------- -
12/13
Estimated Taxable Assessed Valuation ---------- ---------------------------------
13
Authorized General Obligation Bonds -----------------------------------------------
13
Estimated General Obligation Bond Program ----------------------------------------
13
Authorized But Unissued General Obligation Bonds Of Overlapping Subdivisions ----------
13
Estimated Overlapping Funded Debt Payable From Ad Valorem Taxes -------------------
14
TaxData-----------------------------------------------------------------------
14
TaxRate Limitations------------------------------------------------------------
15
1% Municipal Sales Tax-----------------------------------------------------------
15
Estimated 1983-84 Tax Year Overlapping Taxes --------------------------------------
15
TopTen Taxpayers---------------------------------------------------------------
16
Interest and Sinking Fund Management Index ----------------------------------------
16
Computation Of Self -Supporting Debt ----------------------------------------------
16
DebtService Requirements-------------------------------------------------------
17
PensionFunds-------------------------------------------------------------------
18
General Fund Revenues and Expenditures -------------------------------------------
19
LubbockPower And Light---------------------------------------------------------
20/21
Comparison Of Selected Present And Previous Rates ---------------------------------
21/22
Condensed Statement of Operations, Electric Light And Power System ------------------
22
TheWaterworks System----------------------------------------------------------
22/23
Condensed Statement Of Operations, Waterworks System -----------------------------
23
IncreaseIn Water Rates----------------------------------------------------------
- 23
TheSewer System---------------------------------------------------------------
24
Condensed Statement Of Operations, Sewer System ----------------------------------
24
AirportSystem------------------------------------------------------------------
24/25
Condensed Statement Of Operations, Airport System ---------------------------------
25
General Information Regarding The City And Its Economy -----------------------------
26/31
Ratings------------------------------------------------------------------------
32
TaxExemption------------------------------------------------------------------
32
Registration and Qualification of Bonds for Sale -------------------------------------
32
Legal Investments and Eligibility to Secure Public Funds In Texas ----------------------
32
Legal Opinions and No-Litigatlon Certificate ----------------------------------------
32
Authenticity of Financial Information ----------------------------------------------
33
FinancialAdvisor----------------------------------------------------------------
33
Certification of the Official Statement ---------------------------------------------
33
Audited Financial Statements, September 30, 1983, examined by
Mason, Nickels do Warner, Certified Public Accountants -----------------------------
Enclosure
The cover page hereof, this page, the Financial Statements, and any addenda, supplement or amendment
hereto, are part of the Officlal Statement.
-2-
Councilman
+ See "Introductory Statement"
APPOINTED OFFICIALS
ELECTED OFFICIALS
Length of
x
Employment
Term
Length of Time
City Council
Length of Service
Ex ices*
Occupation
Alan Henry
Elected Mayor August 13, 1983;
April 1984
Alan Henry Insurance Agency
17 Years
served 9 years previously as City
Deputy City Manager
1 Year
7 Years
Councilman and Mayor Pro -Tem
City Attorney
S Years
George W. Carpenter
Elected December 6, 1983
April 1984
President, Armstrong Mechan-
Mayor Pro -Tem
J. Robert Massengale
Assistant City Manager for
ical, Inc.
Joan Baker
4 Years
April 1984
Homemaker
Councilwoman
Rita P. Harmon
Assistant City Manager for
1 Year
M. J. Aderton
6 Years
April 1986
Retired Chairman of the Board,
Councilman
James E. Bertram
Assistant City Manager for
Snook do Aderton, Inc.
E. Jack Brown
4 Years
April 1984
President, Brown McKee, Inc.
Councilman
+ See "Introductory Statement"
APPOINTED OFFICIALS
Consultants and Engineers, Water Treatment Plant
Expansion and Airport ---------------------------=--------------------- Parkhill, Smith do Cooper
Lubbock, Texas
Engineers for Generator System --------------------------------------------------- Tippett do Gee
Abilene, Texas
Engineers for SO Year Water Supply---------------------------------------- Freese and Nichols, Inc.
Fort Worth, Texas
Financial Advisor ------------------------------------------------------ First Southwest Company
Dallas, Texas
-3-
Length of
Employment
Length of Time
With City
Name
Position
In This Position
of Lubbock
Larry J. Cunningham
City Manager
7 Years
17 Years
Jim C. Blagg
Deputy City Manager
1 Year
7 Years
John C. Ross, Jr.
City Attorney
S Years
S Years
Evelyn E. Gaffga
Secretary -Treasurer
3 Years
S Years
J. Robert Massengale
Assistant City Manager for
1 Year
4 Years
Financial Services
Rita P. Harmon
Assistant City Manager for
1 Year
8 Years
Management Services
James E. Bertram
Assistant City Manager for
1 Year
13 Years
Development Services
Bob Cass
Assistant City Manager for
1 Year
8 Years
Public Safety and Services
Samuel W. Wahl
Director of Water Utilities
14 Years
31 Years
Carroll McDonald
Director of Electric Utilities
3 Years
3 Years
Thomas J. NIchols
Chief of Police
1 Year
1 Year
CONSULTANTS AND ADVISORS
Auditors-------------------------------------------------------------- Mason, Nickels do Warner
Certified Public Accountants
Lubbock, Texas
Bond Counsel ----------------------------------------------
Dumas, Huguenin,
Boothman do Morrow
Dallas, Texas
Consultants and Engineers, Water Treatment Plant
Expansion and Airport ---------------------------=--------------------- Parkhill, Smith do Cooper
Lubbock, Texas
Engineers for Generator System --------------------------------------------------- Tippett do Gee
Abilene, Texas
Engineers for SO Year Water Supply---------------------------------------- Freese and Nichols, Inc.
Fort Worth, Texas
Financial Advisor ------------------------------------------------------ First Southwest Company
Dallas, Texas
-3-
REGISTRATION
Tax Equity and Fiscal Responsibility Act of 1982 ("TEFRA") ... TEFRA, as amended, mandates, among
other things, that all municipal bonds excepting those with a one year maturity or less) must be
registered in the owner's name, beginning with July 1, 1983.
PaXinit A ent Re istrar ... The Bonds will be Issued only In fully registered form In any Integral multiple
of 5,000 for any one maturity. Principal of the Bonds will be payable to the registered holder or owner
(the "Holder" or. "Owner") at maturity or redemption upon presentation at the principal corporate office of
,, Texas, the Paying Agent/Registrar. Interest on the Bonds will
be payable by eek, date ash the interest payment date, and mailed by the Paying Agent/Registrar to
registered Holders as shown on the records of the Paying Agent/Registrar on the Record Date (see
"Record Date for Interest Payment" herein).
Successor Paying Agent/Registrar ... Provision is made In the Ordinance for replacement of the Paying
Agent Registrar. The City covenants to maintain and provide a Paying Agent/Registrar at all times while
the Bonds are outstanding and any successor Paying Agent/Registrar shall be a bank, trust company,
financial institution, or other entity (which includes the City of Lubbock, Texas) duly qualified and legally
authorized to serve as and perform the duties and services of Paying Agent/Registrar for the Bonds. Upon
any change in the Paying Agent/Registrar for the Bonds, the City agrees to promptly cause a written
notice thereof to be sent to each registered Owner of the Bonds by United States mail, first class, postage
prepaid, which notice shall also give the address of the new Paying Agent/Registrar.
Future Registration ... The Bonds may be transferred, exchanged and registered only on the registration
books of the Paying Agent/Registrar, and such registration and transfer shall be without expense or
service charge to the Holder, except for any tax or other governmental charges required to be paid with
respect to such registration and transfer. A Bond may be assigned by the execution of an assignment form
on the Bond or by other instrument of transfer and assignment acceptable to the Paying Agent/Registrar.
A new Bond or Bonds will be delivered by the Paying Agent/Registrar, in lieu of the Bond being
transferred or exchanged, at the principal corporate office of the Paying Agent/Registrar, or sent by
United States mail, first class, postage prepaid, to the new registered Holder or his designee. To the
extent possible, new Bonds Issued In an exchange or transfer of Bonds will be delivered to the registered
Holder or assignee of the Holder in not more than three business days after the receipt of the Bonds to be
cancelled, and the written Instrument of transfer or request for exchange duly executed by the Holder or
his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. New Bonds registered and
delivered in an exchange or transfer shall be In any integral multiple of $5,000 for any one maturity and
for a like aggregate principal amount as the Bond or Bonds surrendered for exchange or transfer.
Record Date for Interest Payment ... The record date ("Record Date") for the Interest payable on any
interest payment date means the last business day of the preceding month.
In the event of a non-payment of Interest on a scheduled payment date, and for 30 days thereafter, a new
record date for such interest payment (a "Special Record Date") will be established by the Paying
Agent/Registrar, if and when funds for the payment of such interest have been received from the City.
Notice of the Special Record Date ,and of the scheduled payment date of the past due interest (the
"Special Payment Date" which shall be 15 days after the Special Record Date) shall be sent at least five
business days prior to the Special Record Date by United States mail, first class, postage prepaid, to the
address of each Holder of a Bond appearing on the books of the Paying Agent/Registrar at the close of
business on the last business day next preceding the date of mailing of such notice.
Limitation on Transfer of Bonds Called for Redemption ... Neither the City or the Paying Agent/Regis-
trar shall be required to issue or transfer to an assignee of the Holder of the Bonds any Bond called for
redemption, in whole or In part, within 45 days of the date fixed for redemption; provided, however, such
limitation of transfer shall not be applicable to an exchange by the Bond Holder of the unredeemed
balance of a Bond called in part for redemption.
-4-
t
INTRODUCTORY-,STATEM ENT
This Official Statement of the City of Lubbock, Texas, a political subdivision located In Lubbock County
(the "City"), is provided to furnish information In connection with the sale of the City's $13,775,000
General Obligation Bonds, Series 1984 (the "Bonds").
The Official Statement was prepared to present for the purchaser of the Bonds information concerning the
Bonds, the revenues (ad valorem taxes) pledged to the Bonds, the description of the revenue base, factors
that may affect pledged revenues, and other pertinent data, all as more fully described herein. See "Table
of Contents".
Source of Payment ... The Bonds are direct and voted general obligations payable out of the receipts
from an ad valorem tax levied, within the limits prescribed by law, on taxable property located within the
City, as provided in the Ordinance authorizing the Bonds.
In each year, the City shall determine the specific amount of, and assess, a tax sufficient to (1) pay
current Interest on the Bonds, and (2) create and provide a sinking fund of not less than 2% of the
principal amount of the Bonds or not less than the principal payable out of such tax, whichever is greater,
with full allowance being made for tax delinquencies and the cost of the collections.
Purpose ... Proceeds from the sale of the Bonds will be used for Waterworks System, Sewer System,
street, fire department and Airport System improvements. See "Authorized General Obligation Bonds".
Future Bond Issues ... The City plans to market substantially all of its remaining authorized but unissued
11,357,000 General Obligation Bonds during the period 1985-1987. See "Estimated General Obligation
Bond Program".
Administration of the City ... The City operates under a Home Rule Charter which was approved by the
electorate December 27, 1917, and thereafter amended from time to time. The Charter provides for the
Council -Manager form of government for the City. Pollcy-making and supervisory functions are the
responsibility of and vested in the Mayor and City Council.
Litigation Concerning the At -Large System for the Election of City Council Members ... Since 1917,
under the provisions of the Cdty of Lubbock'$ Home Rule rter, the four members of the City Council
and the Maya have been elected at -large, 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, a3 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. Commencing 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
commencing 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 commencing
April, 1984.
-5-
4. In the case of the six councilmen, only qualified voters who are bona fide residents within a district
may vote far 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
tie -vote.
6. The members of the City Council shall elect a mayor pro tem 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 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 substantially
complies with the one man -one vote requirement.
The City appealed the Final Judgment to the United States Court of Appeals for the Fifth Circuit. The
Final Judgment orders that City elections commencing in April, 1984, be held in accordance with the
provisions of that Judgment. In addition, the terms of office of three elected members of the City
Council - Alan Henry, Mayor; Joan Baker, Councilwoman; and E. Jack Brown, Councilman, all elected
at -large - expire in April, 1984. Under the Texas Election Code, the uniform date for City Council
elections is Saturday, April 7, 1984. The City Council Is prepared to act as follows:
1. If the United States Court of Appeals for the Fifth Circuit does not rule on the City's
appeal, the City Council will call an election for April 7, 1984, in accordance with the Final
Judgment; however, the City reserves the right to seek a stay In execution of the Final
Judgment before calling an election for April 7, 1984, and if such a stay is sought and granted,
the City Council will call an election for the offices of Mayor and two Councilmen on an
at -large basis.
2. if the United States Court of Appeals for the Fifth Circuit affirms the Final Judgment
prior to April 7, 1984, the City Council will call an election for April 7, 1984, in accordance
with the Final Judgment but will reserve the right to appeal the decision of the Court of
Appeals, and will reserve the right to seek a stay pending application for Writ. of Certiorari to
the United States Supreme Court.
3. If the United States Court of Appeals for the Fifth Circuit reverses the Final Judgment of
the District Court before April 7, 1984, the City Council will call an election for April 7, 1984,
in compliance with the Home Rule Charter of the City of Lubbock, at which the Mayor and
two members of the City Council will be elected at -large.
-6-
VALUATION AND DEBT INFORMATION
1983 Market (Appraised) Valuation $3,362,373,412
Less Exemptions/Reductions at Market (Appraised) Value (1):
Residence Homestead (Over 65 or Disabled) $114,037,073
Disabled Veterans 2,549,188
Agricultural Reductions 12,066,655 128,652,916
1983 Taxable Assessed Valuation (100% of 1983
Net Market (Appraised) Valuation) $3,233,722,496
City Funded Debt Payable From Ad Valorem Taxes
(as of 2-1-84) (2) (3) (4) :
General Purpose Bonds $45,607,258
Waterworks Bonds 29,847,297
Sewer System Bonds 3,450,445
The Bonds 13,775,000
Total Funded Debt Payable from Ad Valorem Taxes $92,680,000
Less Self -Supporting Debt (2):
Waterworks Bonds (including $2,613,000 of the Bonds) $32,460,297
Sewer System Bonds (including $6,802,000 of the Bonds) 10,252,445 42,712,742
Total General Purpose General Obligation Debt $49,967,258
Interest and Sinking Fund, All General Obligation Bonds (as of 2-1-84) $ 4,077,112
Ratio Total Funded Debt to Taxable Assessed Valuation ------------------------------------- 2,87%
Ratio Total General Purpose General Obligation Debt to Taxable Assessed Valuation ------------ 1.55%
1984 Estimated Population - 186,427•
Per Capita 1983 Taxable Assessed Valuation - $17,345.78
Per Capita Total General Purpose General Obligation Debt - $268.03
Area - 94.4 Square Miles
* Source: City of Lubbock, Texas.
(1) 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) $10,000 market value of a
residence homestead for the disabled; and (3) $3,000 Assessed Valuation for disabled veterans.
Agricultural reductions granted to owners of productive open -space lands under Section 1-d-1, Article
VIII, State Constitution.
(2) 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.
(3) As of February 1, 1984, the above statement of indebtedness does not Include outstanding $32,215,000
Electric Light and Power System Revenue Bonds (including $10,000,000 Bonds selling March 22, 1984), as
these bonds are payable solely from the net revenues derived from the System. The statement also does
not Include outstanding $2,055,000 Airport Revenue Bonds, as these bonds are payable solely from gross
revenues derived from the City of Lubbock Airport. In addition, $2,595,000 General Obligation Bonds, due
February 1, 1984, have been deducted from outstanding General Obligation Debt. The Waterworks System
and the Sewer System are unencumbered with Revenue Bond Debt.
(4) The City's last General Obligation Bond sale was April 28, 1983, when $18,775,000 General Obligation
Bonds, Series 1983, were offered and sold.
-7-
AD VALOREM TAXATION
The Bonds are payable from ad valorem taxes levied upon all taxable property within the City. The
"Property Tax Code" (V.T.C.A., Tax Code), adopted in 1979, is a codification of Texas law as to ad
valorem taxation and reference Is hereby made thereto for Identification of property subject to taxation;
property exempt from taxation and other exemptions granted and allowed, If claimed; the appraisal of
property for purposes of taxation and the procedures to be followed and limitations applicable to the levy
and collection of ad valorem taxes. Among other features, the Property Tax Code provides for:
1. A single Appraisal District in each County of the State to appraise property for purposes of
taxation for all taxing units located wholly or partly within the County beginning January 1,
1982.
2. All property to be assessed at 100% of Its appraised value and prohibits the assessment of
property for taxation on the basis of a percentage of Its appraised value.
3. An increase in the effective tax rate of a taxing unit to be limited to not more than 3% unless
a public hearing is held. In calculating the effective tax rate, taxes for bonds or other
contractual obligations are excluded.
Recent amendments (Chapter 13, Acts of the 67th Legislature, First Called Session, 1981) to the Property
Tax Code (designed to clarify and remedy technical flaws experienced in Implementing various provisions
thereof) provide for:
1. Postponement of full implementation of an Appraisal District's operations, on a local option
basis, until 1983 or 1984.
2. Mandatory county participation in the Appraisal District.
3. Changes the provisions relating to an effective annual tax increase being subject to a
referendum election by:
a. Raising the amount of the annual tax increase necessary to trigger a referendum election
to 8%;
b. Reducing the number of qualified voters necessary to petition for a referendum election to
10%;
c. Extending the period available to collect signatures on a petition for a referendum election
to 90 days;
d. Eliminating the requirement that a minimum of 25% of the qualified voters must vote in a
referendum election to be valid.
4. The State Property Tax Board to conduct an annual ratio study In each Appraisal District to
determine the degree of uniformity of appraisals and the weighted average level of appraisals
within each major kind of property (effective 1-1-84).
S. An Increase In penalties for delinquent taxes. The new penalties are:
a. 6% - First month
1% - Additional penalty each month through June
12% - All delinquencies on July 1 regardless of delinquency period;
b. A taxing unit may add an additional penalty to a maximum of 13% of taxes, penalty and
interest due In order to defray costs of tax attorneys.
6. An increase in interest charged on delinquent taxes. The new interest charges are:
a. 1% - First month, and
b. An additional 1% increase each month thereafter.
7. Property within the Appraisal District to be reappraised at least once every 4 years (effective
1-1-84).
-9-
8. The establishment and application of uniform discovery and appraisal procedures on all types of
business inventories without regard to"ttie nature'of the property comprising the inventory.
9. The statute purports to provide an increase for the first time In the appraised value of property
above Its 1981 assessed value in any year from 1982 through 1985, which may be, at the option
of the local taxing unit, limited to 1 1/2 times the percentage of increase In the value of all
other property on the unit's tax rolls.
10. Changes In the composition and selection of board members, the allocation of Appraisal District
costs, the size of the Appraisal Review Board and the financial accountability of Appraisal
District.
11. Local taxing units to challenge the Appraisal Review Board's appraisals and judicial review of
challenges, and authorizes local taxing units of an Appraisal District to overturn and veto
actions of the Board of Directors of the Appraisal District.
12. Changes In the procedures and requirements pertaining to tax Increases by local taxing units.
The Property Tax Code as Applied to the City of Lubbock
1. Beginning 3anuary 1, 1982, the Lubbock County Appraisal District assumed responsibility for
appraising property In the City of Lubbock, as well as the other taxing units in the Appraisal District. The
Lubbock County Appraisal District is governed by a board of five directors appointed by votes of the
governing bodies of Lubbock County, the City of Lubbock, Lubbock Independent School District and the
other cities, towns and school districts In the District with votes weighted by relative tax levy.
2. The Lubbock County Appraisal District contracted with the City of Lubbock to collect City ad
valorem taxes, beginning In 1982.
3. The City of Lubbock does not tax personal automobiles.
4. The Lubbock County Appraisal District reviewed all appraisals in Lubbock County for 1983,
adjusting approximately 35% of the total; for 1984, the Appraisal District will review all appraisals,
adjusting an estimated 65% of the total. Beginning In 1985, the Appraisal District will reappraise all
taxable property in Lubbock County each year.
5. The City Council of the City of Lubbock has not acted to grant a local exemption of up to 40% of
market value of a residence homestead from ad valorem taxation beginning in 1982 as permitted under a
Constitutional Amendment authorized In November, 1981.
OTHER LIABILITIES
(1) On September 1, 1976, the City purchased the land and buildings, owned by Auto Realty Company,
Inc., located immediately 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, 1983 was $215,571.60 which matures in 8 annual
installments, September 1, 1984 through September 1, 1990, with interest calculated at 7%.
-9-
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) 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 do Co., the
building and site were sold to the adjacent American State Bank following Sears construction of new
facilities In South Plains Mall, Lubbock, several years ago. The City also acquired 3 additional sites near
the Sears site for parking expansion in the future.
The City 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 $ 751,000
Purchase of additional property 302,925
Renovation of 55,000 square feet 1,800,000
Other cost 396,075
Total Estimated Cost $3-,T50,000
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 ' Amer can". Net advance balances are shown on a quarterly basis; actual balances to
1-15-84;
(2) Total Payment. Actual and future quarterly payments to "American" Including interest quarterly
at an annual rate of 12 3/4%. Final payment, 1-15-94, $2,917,818.
(3) Additional Site Acquisition. The City acquired 3 additional, adjacent sites for future parkin
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 from Revenue Sharing
into an "Escrow Account" at "American" from which payments will be made to "American" as referred to
in (3), above, and on the notes referred to in (4) above. Deposits totaled $3,123,000 on 1-15-84; except for
2, subsequent, minor deposits, the "Escrow Account" is essentially funded. The City plans to make the 2,
minor, future deposits from Revenue Sharing entitlements; If Revenue Sharing Funds are not available for
either 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 ACCounrl at the annual rate of 12 1/2%.
(6) Escrow Balance. The Escrow Balance at the end of any quarter will always exceed the Advance
Balance.
(7) In the opinion of the City Attorney the financial arrangement with "American" described above
does not constitute a legal debt of the City since funds will be pledged at all times and placed in the
"Escrow Account" in amounts that, with Interest earned, will exceed the outstanding Advance Balance
throughout the life of the agreement.
-10-
Note Amortization Schedule
Fiscal
Year
Ending
Outstanding
9-30
Principal
Interest
Total
Balance
T�$215,571.0
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
235,573.60
2,616.80
4,4.40
40,000.00
280,000.00
- a
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) 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 do Co., the
building and site were sold to the adjacent American State Bank following Sears construction of new
facilities In South Plains Mall, Lubbock, several years ago. The City also acquired 3 additional sites near
the Sears site for parking expansion in the future.
The City 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 $ 751,000
Purchase of additional property 302,925
Renovation of 55,000 square feet 1,800,000
Other cost 396,075
Total Estimated Cost $3-,T50,000
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 ' Amer can". Net advance balances are shown on a quarterly basis; actual balances to
1-15-84;
(2) Total Payment. Actual and future quarterly payments to "American" Including interest quarterly
at an annual rate of 12 3/4%. Final payment, 1-15-94, $2,917,818.
(3) Additional Site Acquisition. The City acquired 3 additional, adjacent sites for future parkin
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 from Revenue Sharing
into an "Escrow Account" at "American" from which payments will be made to "American" as referred to
in (3), above, and on the notes referred to in (4) above. Deposits totaled $3,123,000 on 1-15-84; except for
2, subsequent, minor deposits, the "Escrow Account" is essentially funded. The City plans to make the 2,
minor, future deposits from Revenue Sharing entitlements; If Revenue Sharing Funds are not available for
either 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 ACCounrl at the annual rate of 12 1/2%.
(6) Escrow Balance. The Escrow Balance at the end of any quarter will always exceed the Advance
Balance.
(7) In the opinion of the City Attorney the financial arrangement with "American" described above
does not constitute a legal debt of the City since funds will be pledged at all times and placed in the
"Escrow Account" in amounts that, with Interest earned, will exceed the outstanding Advance Balance
throughout the life of the agreement.
-10-
. Sears Building
Ftnancce Schedule
I
Additional
Escrow
Minimum
Advance
Total
Site
Escrow
Interest
Escrow
Year
Month
Balance
Payment
Acquisition
Deposits
Earnings
Balance
982-83
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
1045
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
3,026,993
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
1,882,456
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
2,951,325
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
2,835,607
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
81 8
7 96
.- 0
YI91 ,9
-il-
I
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".
VALUATION AND FUNDED DEBT HISTORY
Fiscal
TAXABLE ASSESSED
VALUATIONS BY CATEGORY
Period
Taxable
Basis
Total Funded
Ending
Assessed
of
Debt Outstanding
9-30
Valuation(l)
Assessment
Year End
1973-74
716,225,294
60%
_
553,440,000
1974-75
797,387,868
60%
50,546,000
1975-76
900,079,412
60%
47,763,000
1976-77
997,553,829
60%
43,682,000
1977-78
1,097,536,312
60%
42,107,000
1978-79
1,290,998,036
60%
47,086,000
1979-80
1,397,872,411
60%
49,301,000
1980-81
1,516,565,090
60%
61,710,000
1981-82
2,682,330,673
100%
67,900,000
1982-83
3,145,952,586
100%
81,500,000
1983-84
3,233,722,496
100%
89,180,000(2)
(1) For all years Taxable Assessed Valuations are net of any exemptions.
Collector maintained an on-going reappraisal of Real Property in the City
through 1981-82, reappraising approximately 1/4 of the City each year. The
District has continued an on-going review and reappraisal of property
approximately 35% for the 1983 tax roll.
Ratio
Total Funded
Debt to Taxable
Assessed Valuation
7.46%
6.34%
5.31%
4.38%
3.84%
3.65%
3.53%
4.07%
2.53%
2.59%
2.76%
The City's Tax Assessor -
during the period 1972-73
Lubbock County Appraisal
in the City, reappraising
Taxable Assessed Valuations for Fiscal Periods. 1973-74 through 1982-83 have been adjusted for
supplements and corrections to the tax rolls made subsequent to certification of the rolls.
(2) Anticipated.
Year
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
(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 has continued an on-going review and reappraisal of all property in the City,
reappraising approximately 35% for the 1983 Tax Roll.
(2) Taxable Assessed Valuations for 1974-1982 are net after the following exemptions and reductions On
terms of Assessed Valuation}
-12-
TAXABLE ASSESSED
VALUATIONS BY CATEGORY
Property
Real Property
(1)
Personal Property
(1)
Assessment
(2 )
As % of
Taxable
Taxable
Taxable
Appraised
Assessed
% of
Assessed
% of
Assessed
Value
Valuation
Total
Valuation
Total
Valuation
60%
524,133,396
73.18%
192,091,898
26.82%
716,225,2W
60%
579,454,818
72.67%
217,933,050
27.33%
797,387,868
60%
649,869,048
72.20%
250,210,364
27.80%
900,079,412
60%
709,585,566
71.13%
287,968,263
28.87%
997,553,829
60%
769,976,300
70.16%
327,560,012
29.84%
1,097,536,312
60%
932,343,503
72.22%
358,654,533
27.78%
1,290,998,036
60%
1,098,254,972
78.57%
299,617,439(3)
21.43%
1,397,872,411
60%
1,187,443,564
78.30%
329,121,526
21.70%
1,516,565,090
100%
2,094,621,612
78.09%
587,709,061
21.91%
2,682,330,673
100%
2,442,455,891
77.64%
703,496,695
22.36%
3,145,952,586
100%
2,520,505,072
77.94%
713,217,424
22.06%
3,233,722,496
(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 has continued an on-going review and reappraisal of all property in the City,
reappraising approximately 35% for the 1983 Tax Roll.
(2) Taxable Assessed Valuations for 1974-1982 are net after the following exemptions and reductions On
terms of Assessed Valuation}
-12-
• As of 10-1 each year.
(3) Personal automobiles became exempt from ad valorem taxes in 1979.
Over 65
1986
Agricultural/
Total
and Disabled
Disabled
Open -Space
53,681,000
Homestead
Veteran
Land
Year
Exemptions*
Exemptions
Reductions
1974
5 11,395,000
Not Effective
-0-
1975
13,323,150
Not Effective
-0-
1976
11,888,760
$ 1,307,240
-0-
1977
14,159,830
1,646,220
-0-
1978
34,991,600
1,549,890
-0-
1979
49,793,340
1,928,450
-0-
1980
52,926,900
2,147,280
-0-
1981
103,968,160
2,072,270
-0-
1982,
108,615,670
2,183,380
$10,090,967
1983
114,037,073
2,549,188
12,066,655
• As of 10-1 each year.
(3) Personal automobiles became exempt from ad valorem taxes in 1979.
ESTIMATED GENERAL OBLIGATION BOND PROGRAM
Anticieated issuance
ESTIMATED TAXABLE ASSESSED VALUATION
1986
1987
Total
Estimated
-0-
53,682,000
53,681,000
Taxable
Sewer System
1,273,000
-0-
Fiscal Assessed
1,273,000
Street Improvements
1,881,000
Period Valuation
-0-
1,881,000
Storm Sewer and Drainage
10$43 , 600, 0 , 0*
-0-
-0-
* Net after estimated exemptions/reductions.
Fire Department
467,000
Source: Lubbock County Appraisal
District.
467,000
57,000
AUTHORIZED GENERAL OBLIGATION BONDS
Amount
Amount
Date Amount Heretofore
Being
Unissued
_Purse
Authorized Authorized Issued
Issued
Balance
aQ terworks System
—5 --ff 77 ,7_73-,"10-6-0 '5rF,"ffYW T—TM-,60
, 6T0,005
Waterworks System
11-21-81 5,226,000 -0-
2,513,000
2,713,000
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
6,802,000
-0-
Street Improvements
5-21-77 4,782,000 3,693,000
-0-
1,089,000
Street Improvements
11-21-81 9,495,000 5,305,000
3,398,000
792,000
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-
310,000
-0-
Fire Department
11-21-81 877,000 250,000
160,000
467,000
Airport
11-21-81 12 85k 000 12 362 000
700 85, 00,00
492,000
-0-
ESTIMATED GENERAL OBLIGATION BOND PROGRAM
Anticieated issuance
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.
_13-
1985
1986
1987
Total
Waterworks System
-0-
53,682,000
53,681,000
7,363-005,
Sewer System
1,273,000
-0-
-0-
1,273,000
Street Improvements
1,881,000
-0-
-0-
1,881,000
Storm Sewer and Drainage
373,000
-0-
-0-
373,000
Fire Department
467,000
-0-
0
-0-
467,000
57,000
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.
_13-
ESTIMATED OVERLAPPING FUNDED DEBT PAYABLE FROM AD VALOREM TAXES
As of 2 -1 -84T -
Penalty and interest charges for late payment are:
Month
Estimated
Paid
Total
%
Overlapping
Taxing Jurisdiction
Funded Debt (1)
Apelicable
Funded Debt
City of Lubbock
T4-9,967,259(2)
100.00%
49,967, 58
Lubbock Independent School District
12,473,000
97.69%
12,186,828
Lubbock County
-0-
81.56%
-0-
Lubbock County Hospital District
-0-
81.56%
-0-
Lubbock County Water Control and
12%
6%
18%
Improvement District No. 1
-0-
81.56%
-0-
Lubbock-Cooper Independent School District
1,072,000
23.33%
271,338
Frenship independent School District
3,463,000
50.70%
1,755,741
Roosevelt Independent School District
371,000
8.61%
31,943
idalou Independent School District
1,148,000
3.54%
40,639
New Deal Independent School District
134,000
3.54%
5,452
TOTAL OVERLAPPING FUNDED DEBT
$64,259,399
Ratio Overlapping Funded Debt to Taxable Assessed Valuation -------------------------------
1.99%
Per Capita Overlapping Funded Debt - $344.69
(1) In each case, 2-1-84 principal, if any, has been deducted.
(2) General Purpose General Obligation Debt, including the Bonds.
TAX DATA
(Year Ending 9-30)
Distribution
(1)
Tax Tax General Board of City
Interest and (1)
% Current
% Total
Year Rate Fund Development
Sinking FundTax Levy
Collections
Collections
1973-74 $1.36 $0.4600 $0.05
50.8500 9,740,664
9Y.Tf9_
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 0.7300 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 13,656,171
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 0.3225 0.05
0.2875 17,703,382
95.53%
98.97%
1982-83 0.61 0.2791 0.05
0.2809 19,190,311
92.94%
97.30%
1983-84 0.61 0.2230 0.05
0.3370 19,725,707
In Process of Collection
(1) "Tax Levy" and "Percent Current Collections" for Tax Years 1973-74
through 1982-83 have been
adjusted to reflect final corrections and supplements to the tax rolls as audited at the end of each fiscal
year.
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
Penalty
Interest
Total
Fe ><uary
6%
1%
7%
March
7%
2%
9%
April
8%
3%
11%
May
9%
4%
13%
June
10%
5%
15%
July
12%
6%
18%
After July penalty remains at 12%; Interest increases 1% each month.
-14-
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 Constitutional provisions.
1% MUNICIPAL SALES TAX
Effective 4-1-68
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
Estimated
Year
Collections
% of
Equivalent
Net
Ended
Remitted
Ad Valorem
Ad Valorem
Collections
9-30
to City
Tax Levy
Tax Rate
Per Capita
4-46.58%
974,
37,Ok8
0. 4
—
1975
4,763,912
43.93%
0.597
—
1976
5,690,391
46.49%
0.632
—
1977
6,806,680
48.39%
0.682
—
1978
7,421,613
47.96%
0.671
—
1979
8,160,916
36.44%
0.632
—
1980
8,722,450
55.71%
0.624
$50.14*
1981
9,791,566
58.69%
0.646
—
1982
10,939,663
61.79%
0.408
—
1983
11,355,581
59.17%
0.361
—
* Based on U.S. Census, 1980, of 173,979.
ESTIMATED 1983-84 TAX YEAR OVERLAPPING TAXES
Set forth below is an estimate of all 1983-84 Tax Year taxes levied on an average $80,000 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 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 1983-84 Ad Valorem Taxes
Estimated
Appraised 1983 Estimated
and Assessed Tax 1983 Taxes
Value Rate Levied
7 ,000 $U. 0-00 439.20
67,000* 1.00000 670.00
72,000 0.18000 129.60
72,000 0.13320 95.90
72,000 0.00730 5.40
* After $3,000 market value residence homestead exemption.
-15-
$1,340.10
Name of Taxpayer
Texas Instruments Incorporate
Southwestern Bell Telephone Company
Southwestern Public Service Company
South Plains Mail
Furr's, Inc.
Energas Company (a division of
Pioneer Corporation)
Plains Co-op Oil Mill
Farmers Co-op Compress
Eagle-Picher Industries
TOP TEN TAXPAYERS
Nature of Property
Electronics Manufacturer
Telephone Utility
Electric Utility
Regional Shopping Mall
Retail Groceries
Gas Utility
Oil Mill
Cotton Compress
Earth Moving Machinery; Farm
Equipment
1983 % of 1983
Taxable Taxable
Assessed Assessed
Valuation Valuation
Uf—,7 ,60 5 X695
67,374,000 2.08%
30,847,048 0.95%
23,282,255 0.72%
17,606,043 0.55%
14,785,168
0.46%
13,324,050
0.41%
13,145,130
0.41%
10,411,090
0.32%
International Business Machines
Corporation Computers, Business Machines 7,964,390 0.25%
$307,489,779 9.51%
INTEREST AND SINKING FUND MANAGEMENT INDEX
General Obligation Debt Service Requirements for Fiscal Year Ending 9-30-84------------ $12,392,771
Interest and Sinking Fund, All General Obligation Issues, 9-30-83----------- $ 783,882
1983 Interest and Sinking Fund Tax Levy at Approximately
97.5% Collection (as budgeted) -------------------------------------- 10,630,338
Estimated Interest Earned and Transfers from other City Funds------------ 1,363,356 12,777,776
EstimatedSurplus---------------------------------------------------------------- $ 383,005
COMPUTATION OF SELF-SUPPORTING DEBT
Waterworks Sewer
System* System*
Net System Revenue Available for Fiscal Year
Ending 9-30-83 $5,995,401 $ 838,053
Less: Revenue Bond Requirements, 1983-84
Fiscal Year
Balance Available for Other Purposes
System General Obligation Bond Requirements,
1983-84 Fiscal Year
Balance
Percentage of System General Obligation Bonds
Self -Supporting
-0- -0-
$5,995,401 $ 838,053
4,555,043 577,759
$1,440,358 $ 260,294
100.00% 100.00%
* 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.
-16-
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-17-
PENSION FUNDS
Texas Municipal Retirement System ... All permanent, full-time City employees who are not firemen and
who were less than 50 years of 7ge 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. All City employees except
firemen are covered by Social Security. Options offered under the System, and adopted by the City,
include current, prior and antecedent service credits, 20 year vesting, updated service credit, and regular
and supplemental disability benefits. An employee who retires 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 1984 contribution rate is 7.22% including 0.05% for supplemental disability benefits.
Enabling statutes prohibit any member city from adopting options which impose liabilities that cannot be
amortized over 25 years within a specified statutory rate.
On December 31, 1982, assets held by the System not including those of the Supplemental Disability
Benefits Fund which is "pooled', for the City of Lubbock were $23,732,680. Unfunded accrued liabilities
on December 31, 1982, were $13,968,949, which Is being amortized over the period January, 1983, through
January, 2008. Total contributions by the City to the System in Fiscal Year Ending 9-30-83 were
$1,947,304.
Fireman's Relief and Retirement Fund... City of Lubbock firemen are members of the locally
administered Lubbock Firemen's Re ief 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 (appointed by the other
trustees), the Mayor or his representative and the Director of Finance of the City. Execution of the act Is
monitored by the Firemen's Pension Commissloner, who is appointed by the Governor.
Benefits of retired firemen are determined on a "formula" or a "final salary" plan. Actuarial reviews are
performed every three years, and the fund Is audited annually. Firemen contribute 11% of full salary into
the fund and the City must contribute a like amount; however, the City contributes on a basis of the
percentage of salary which Is a ratio adjusted annually that bears the same relationship to the 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 13.16%.
An actuarial evaluation as of 2-28-83 was conducted by the firm of Rudd and Wisdom, Inc., Austin, Texas.
The valuation balance sheet estimated unfunded liabilities of $6,742,708, which is being amortized over a
21 year period, and the actuarial study concludes: "Consequently, we are of the opinion that the plan,
based on levels of benefits and contributions, has an adequate financing plan".
The City contributed $497,901 to the Fund during Fiscal Year ended 9-30-83
-18-
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- l9-
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 e'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 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 in 1982. The company pays the City a
franchise tax of 2% of its gross receipts which is deposited into the City's General Fund. At present,
Southwestern Public Service supplies power to approximately 50% of the customers In Lubbock.
Lubbock Power and Light generates part of its power requirements through 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 kilovolt (kV) transmission loop system.
In December, 1981, the City commenced buying 10 megawatts 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 222,500 kilowatts
(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 consist of the
following:
Manufacturer
Nordberg
Nordberg
Westinghouse
Westinghouse
Westinghouse
Westinghouse
Westinghouse
General Electric
Worthington
General Electric
General Electric
* The 1957 Westinghouse unit is under repair and is not presently available for service.
Since the completion of the Interconnection with Southwestern Public Service, Station No. 2 has been kept
on standby and is used for peak and emergency power purposes only.
Transmission and Distribution ... A 69,000 volt (69 kV) transmission loop system, 41.55 miles in length,
provides bulk power to six 69,000/12470 bulk substations with a combined base capacity of 201 megavolt
amps (MVA). A seventh bulk substation with a base capacity of 30 MVA is expected to be completed In
February, 1984. A second 69 kV transmission loop system insulated for operation at 115 kV is under
construction. As of January, 1984, 13.94 miles of 115 kV insulated transmission line have been
constructed with an additional 8.41 miles expected to be completed in February, 1984. 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
136 miles of underground distribution lines. There are twelve 12,470/4160 volt substations in the
distribution system. Net system load for Fiscal Year Ending September 30, 1983 was 710,668,170 kilowatt
hours (kWh) with a peak demand of 158,500 kW.
Construction Pro ram ... A major transmission and distribution system construction and improvement
program will be initiated using the proceeds of $10,000,000 Electric Light and Power System Revenue
Bonds selling March 22, 1984.
-20-
Generator
Year
Capacity
Installed
Station
Prime Mover
Fuel
In kW
1946
2
Diesel
5u ,ueT
tet, 500
1947
2
Diesel
Dual Fuel
2,500
1952
2
Steam Turbine
Gas or Oil
11,500
1953
2
Steam Turbine
Gas or Oil
11,500
1957*
2
Steam Turbine
Gas or OIl
22,000
1958
2
Steam Turbine
Gas or Oil
22,000
1964
Holly
Gas Turbine
Gas or Oil
12,500
1965
Holly
Steam Turbine
Gas or Oil
44,000
1971
Holly
Gas Turbine
Gas or Oil
18,000
1974
Holly
Gas Turbine
Gas or Oil
22,000
1978
Holly
Steam Turbine
Gas or Oil
54 000
222,500
* The 1957 Westinghouse unit is under repair and is not presently available for service.
Since the completion of the Interconnection with Southwestern Public Service, Station No. 2 has been kept
on standby and is used for peak and emergency power purposes only.
Transmission and Distribution ... A 69,000 volt (69 kV) transmission loop system, 41.55 miles in length,
provides bulk power to six 69,000/12470 bulk substations with a combined base capacity of 201 megavolt
amps (MVA). A seventh bulk substation with a base capacity of 30 MVA is expected to be completed In
February, 1984. A second 69 kV transmission loop system insulated for operation at 115 kV is under
construction. As of January, 1984, 13.94 miles of 115 kV insulated transmission line have been
constructed with an additional 8.41 miles expected to be completed in February, 1984. 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
136 miles of underground distribution lines. There are twelve 12,470/4160 volt substations in the
distribution system. Net system load for Fiscal Year Ending September 30, 1983 was 710,668,170 kilowatt
hours (kWh) with a peak demand of 158,500 kW.
Construction Pro ram ... A major transmission and distribution system construction and improvement
program will be initiated using the proceeds of $10,000,000 Electric Light and Power System Revenue
Bonds selling March 22, 1984.
-20-
Transmission System ... The transmission system program includes a second 230 -kV intertie with
Southwestern Public Service Company and a distribution substation In the vicinity of the intertie,
installation of capacitors and switches, replacement of an existing transmission line, and reconductoring
of an existing transmission line.
Distribution System ... Extensions of and improvements to the existing distribution system include
a dit onal distribution circuits for substations, extension from existing line terminals to new areas of
service, transformers, meter pedestals, poles and crossarms, regulators, meters, service lines and other
appurtenances. -- --
Interconnection ... An Interconnection with Southwestern Public Service has been completed and the
City commenced 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 Supply ... Present primary fuel supply for Lubbock's generating system is natural gas which is
supplied by a subsidiary 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, 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 substantially 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 Pioneer Corporation.
In addition, the City is presently negotiating with other natural gas suppliers to determine if a more
economical, long-term source and supply of natural gas is available.
Carbon Dioxide Recover ... The Carbon -Dioxide Technology Corporation, Houston, Texas, has con-
structed 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. 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.
Electric Rates ... The City Council sets electric rates for both Lubbock Power and Light and
Southwestern Public Service. Rates are the same for both systems. The present rates went into effect on
December 1, 1983, and a comparison of selected rates is set forth below.
COMPARISON OF SELECTED PRESENT AND PREVIOUS RATES
Residential
Present (Effective 12-1-83) Previous (Effective 8-1-80)
Service Availability Charge: $5.90 per month, Service Availability Charge: $5.10 per month,
which includes 30 kWh per month (Minimum) which Includes 30 kWh per month (Minimum)
All kWh per month in excess of 30 kWh @
3.99G per kWh
Plus: Fuel Cost Recovery
-21-
All kWh per month in excess of 30 kWh @
2.620 per kWh
Plus: Fuel Cost Recovery
General Service (Formerly Commercial)
Present (Effective 12-1-83)
Previous (Effective 8-1-80)
Service Availability Charge:
$12.00 per month
Service Availability Charge:
$10.00 per mont
First 1,000 kWh per month
5.640 per kWh*
First 1,000 kWh per month
3.700 per kWh
Next 6,000 kWh per month
2.500 per kWh
Next 4,000 kWh per month
2.910 per kWh
Next 6,000 kWh per month
1.230 per kWh
Next 15,000 kWh per month
2.010 per kWh
All additional kWh per month
0.530 per kWh
Additional kWh per month
1.210 per kWh
* Add to the 5.640 block 145 kWh for every kW
of demand in excess of 10 kWs.
Demand: Measured as the cusomer's kW de-
mand for the 30 -minute period of greatest use
during the month.
Plus: Fuel Cost Recovery.
Plus: Fuel Cost Recovery.
Minimum Charge: $12.00 per month for de- Minimum Charge: $10.00 per month.
mand of 10 kW or less, plus $3.00 per kW for
next 15 kW above 10 kW, plus $2.10 per kW for
all additional kW. No demand shall be taken as
less than 50% of highest demand established in
12 months ending with current month.
CONDENSED STATEMENT OF OPERATIONS
ELECTRIC LIGHT AND POWER SYSTEM
Fiscal Year Ended
Operating Revenues
Non -Operating Income
Gross Income
Operating Expense
(excluding depreciation)
Net Revenue
Electric Connections
9-30-83 9-30-82 9-30-81 9-30-80 9-30-79
45,143,848 39,890,883 $34,002,728 29,159,864 $23,619,719
1,818,071 _ 1,798,852 690,388 731,676 826,106
$46,961,919 $41,689,735 $34,693,116 $29,891,540 $24,445,824
37,168,663 33,332,824 30,393,827 24,870,851 20,077,479
9 793 234 8 356 911 4 299 289 $ 5,020,689 4 368 345
37,083 34,610 33,370 32,051 30,390
Maximum Principal and Interest Requirements, Electric System Revenue Bonds,
Fiscal Year Ending 9-30-84 (including $10,000,000 Bonds selling 3-22-84) ---------------- $ 4,640,497
Coverage by Net Income, Fiscal Year Ended 9-30-83----------------------------------- 2.11 Times
Electric Light and Power System Revenue Bonds Outstanding, 9-30-83------------------- $22,440,000
Electric Light and Power System Revenue Bonds Outstanding; 9-30-84 (Anticipated)-- ---- $30,360,000
Interest and Sinking Fund and Reserve Fund, Cash and Investments, 9-30-83-------------- $ 3,468,952
THE WATERWORKS SYSTEM
Water Supply ... Primary source of water for Lubbock is the Canadian River Municipal Water Authority
"CRMWA" which delivers water from Its Lake Meredith reservoir, located on the Canadian River about
30 miles north of Amarillo, to member cities through an underground aqueduct system. Lubbock is one of
eleven member cities of the Authority; other members are Amarillo, Pampa, Borger, Plainview, Slaton,
Levelland, Brownfield, Tahoka, O'Donnell and Lamesa. Lubbock received 30,615 acre feet of water from
the Authority in Calendar Year 1983, approximately 75% of the City's total consumption.
Financed through the Federal Bureau of Reclamation at a cost of $83,358,280, the Canadian River Project
will eventually yield 103,000 acre feet of water annually. Lubbock is entitled to receive 37.058% of the
available annual supply - 38,200 acre feet when yield reaches 103,000 acre feet. Cost of the Project is
being repaid to the Bureau of Reclamation by the Authority through a reimbursable loan maturing
annually through 2018; debt requirements are paid from revenues received by the Authority from sale of
water to member cities. Member cities make payments for water received from water revenues.
-22-
Other Water Supply Sources ... Part of the City's water, supply 1s obtained from 257 water wells, all
producing from the Ogallala Formation,= which underlies the High Plains of Texas. Combined capacity of
these wells is over 40,000,000 gallons per day. Primary underground supply wells are located in the "Sand
Hills" tract area about 60 miles northwest of Lubbock in Lamb and Bailey Counties, In which the City
owns approximately 75,500 acres of water rights; 19,500 acres have been developed with 145 producing
wells and the City plans the development of 30 additional wells. The City has contracted for the annual
purchase of 2,870 acre feet of water from private sources adjacent to the Sand Hills tract; these water
sources will be used primarily for peaking purposes.
The City Is Investigating the acquistion of additional underground water rights.
50 Year Water Supply Stud ... The City of Lubbock has conducted an Investigation of additional long
term water supply sources. Freese and Nichols, Inc., Consulting Engineers, Fort Worth, Texas, who
conducted this investigation for the City, have recommended consideration of a site on the North Fork of
the Double Mountain Fork of the Brazos River (the "Post Site") and a site on the South Fork of the Double
Mountain Fork of the Brazos River (the "Justiceburg Site"), about 35 and 50 miles southeast of Lubbock
respectively, for the development of additional surface supplies. Freese and Nichols reported to the City
that the quantity and quality of water available, particularly at the "Justiceburg Site", are suitable for
development. Development of these supplies would provide the City with a dependable supply of
approximately 29 million gallons per day. The City has submitted an application to the Texas Department
of Water Resources for rights to the Justiceburg Reservoir site.
TheSystem ... Lubbock's Waterworks System is modern and efficient and property, plant and equipment
valued at $61,303,318, after depreciation and Including cost of construction work In progress, at
September 30, 1983. Equipment includes remote control and communication facilities with centralized
operation and direction of the water supply system. The distribution system extends throughout the City
and is designed for expansion. Present pumping capacity is 165,000,000 gallons per day. Average daily
water consumption was 36.4 million gallons in 1983.
Storage capacity consists of a 1,200 acre foot open storage reservoir near the water treatment plant,
which permits the storage of surplus water received from the "CRMWA" In off-peak periods. In addition
14 ground storage reservoirs and 3 elevated steel storage tanks provide a storage capacity of 59,350,000
gallons, entirely adequate for peak hour and fire protection requirements.
Water Treatment Facilities ... A water treatment plant for the treatment of water received from the
"CR WA" was comp ete to 1967, and was recently expanded to a treatment capacity of 75 million
gallons per day from 56 million gallons per day. The plant also treats "CRMWA" water for several other
members of the Authority; the City of Lubbock is fully reimbursed for these costs.
CONDENSED STATEMENT OF OPERATIONS
WATERWORKS SYSTEM
Fiscal Year Ended
9-30-83 9-30-82
9-30-81 9-30-80 9-30-79
Operating Revenues
T17,702,961 TIT—,4 7-7-,—1 ff
VT,7$-9-, 8, 28,597 , ,698
Non -Operating Income
1,683,020 2,679,891
3,058,647 1,213,711 841,414
Gross Income
$15,385,981 $14,157,012
$14,247,801 $10,042,308 $7,660,112
Operating Expense
(excluding depreciation)*
9,390,580 7,866,336
7,283,700 6,927,147 5,937,631
Net Revenue
LL2L31401 6 290 676
6 964 101$ 3,115,161 ILJ22 481
Water Meters
58,000 55,844
55,511 54,589 53,458
* Operating expense includes construction repayment costs and operating and maintenance charges paid
to the Canadian River Municipal Water Authority.
Note: The City has no outstanding or authorized Waterworks System Revenue Bonds.
INCREASE IN WATER RATES
(Effective October 1,
Old Rates (Effective 10-1-82)
New Rates (Effective 10-1-83)
First 1,000 gallons
$5.20 (Minimu-mT First
1,000 gallons $5.46 Minimum
Next 49,000 gallons
1.08/M gallons Next
49,000 gallons 1.13/M gallons
Next 200,000 gallons
0.92/M gallons Next
200,000 gallons 0.97/M gallons
All over 250,000 gallons
0.87/M gallons Allover 250,000 gallons 0.91/M gallons
-23-
THE SEWER SYSTEM
The City owns and operates a modern sewage system, with sanitary sewage collection and treatment
handled separately from storm water drainage. Treatment facilities consist of the Southeast Plant, with
an average daily flow capacity of 25 million gallons, and the Northwest Plant, with an average daily flow
capacity of 0.73 million gallons. Treated effluent is used to Irrigate approximately 3,000 acres of farm
land, and Southwestern Public Service Company has a contract with the City to use part of the sewage
effluent for cooling purposes in Southwestern Public Service Company's 312,000 KW Clifford B. ]ones
electric generating plant near Lubbock. No effluent is discharged Into streams.
The sanitary sewage collection system Includes approximately 716 miles of trunk mains and collector lines
with trunk mains installed for future expansion of the collection system. Average dally sewage flow in
1983 was 17.1 million gallons.
There are no outstanding or authorized sewer revenue bonds.
CONDENSED STATEMENT OF OPERATIONS
EWER SYSTEM
Fiscal Year Ended
9-30-83
9-30-82
9-30-81
9-30-80
9-30-79
Income
$3,208,204
$2,961,655
2,758,240
52,635,801
$2,369,866
Expense
2,370,131
2,041,333
1,710,934
1,597,031
1,395,924
Net Income
838,033
920,322
ILLE71306
1 038 770
972 942
Sewer Customers*
58,000
55,844
35,511
54,589
53,458
* Estimated.
AIRPORT SYSTEM
The City has owned and operated its airport since 1929, with scheduled airline service beginning in 1946.
Lubbock International Airport is located six miles north of the central business district and has an area of
over 3,000 acres, of which approximately 1,900 acres is used for farming and clear zones.
Scheduled Airline Service ... Scheduled airline transportation is furnished by American Air Lines, Delta
Airlines, Southwest Airlines and Muse Air; all flights are by jet aircraft. Two commuter lines provide
service to Albuquerque and Denver. Non-stop scheduled service Is provided to Dallas -Fat Worth Regional
Airport, Dallas Love Field, Houston, El Paso, Austin, Amarillo and Midland -Odessa. 1983 passenger
enplanements totaled 512,637, compared to 505,871 in 1982.
Lubbock International Airport Terminal ... The terminal building, completed in April, 1976, contains
approximately 144,000 square feet; the terminal houses airport administrative offices, airline offices and
ticket counters, the baggage claim area, car rental offices, a restaurant and inflight meal preparation
kitchen, air freight tenants, meeting and press rooms, and 6 jetway equipped gates for airline use.
Parking capacity is 1,820, Including 140 employees. The old terminal building has been converted to
government and commercial office space and houses a Federal Aviation Administration ("FAA") General
Aviation District Office and Airway Facilities Sector. A "FAA" operated Flight Service Station is located
adjacent to the old terminal. Federal Express services are available.
The "FAA" operated control tower provides 24 hour service.
Runway System ... The runway system consists of:
I - 11,500' x 1501, north/south, primary runway with high Intensity lighting and a FAA -operated
instrument landing system and other navigational aids;
1 - 8,000' x 1501, east/west, cross -wind runway, with high Intensity lighting and a FAA operated
Instrument landing system;
1 - 2,800' x 150' general aviation runway; and a taxiway system connecting the runways with aprons, the
terminal and other facilities.
-24-
General Aviation Facilities ... A building designed for the use -of private aviation is located on the east
side of the airport. This 8,779 square foot building still houses'some general aviation services, a National
Weather Service office and a U. S. Customs office. General aviation services are mainly available from
two west -side located major fixed base operators who provide hangars, aprons, fuel sales and other
services for private aviation. 100 T -Hangars house most of the approximately 200 private aircraft that
are based at the airport.
Terminal and Apron Improvement Program ... $12,854,000 General Obligation Bonds for airport Improve-
ment purposes were -approved at the election on November 21, 1981; $11,550,000 of these bonds were sold
in 1983, and the proceeds are being used for terminal and terminal apron expansion. The terminal
expansion program will add approximately 77,000 square feet of space and includes space for airline ticket
counters, public use, baggage facilities, rental car agencies concessions plus 3 new jetway equipped
passenger gates and street modification. Terminal apron expansion is being accomplished by phased
construction as FAA grants are received eventually the project will provide space for 6 additional
aircraft parking positions. $492,000 of the Bonds are for airport improvements under the above programs.
Warehouses and Land Rentals ... The airport has five 16,000 square foot warehouses and six other
warehouses Fr storage space rental.
CONDENSED STATEMENT OF OPERATIONS
AIRPORT SYSTEM
Fiscal Year Ended
9-30-83
9-30-82
9-30-81
9-30-80
9-30-79
Operating Revenues
2,795,923
2, W4,784
2, 0, 70
31,930,716
TF,19Y,062
Non -Operating Revenue
239,644
334,366
396,976
279,961
413,953
Gross Income
$3,035,567
$2,999,150
$2,607,246
$2,230,677
$2,277,015
Operating Expense
(excluding depreciation)
2,510,823
2,258,552
1,972,780
1,732,584
1,467,720
Net Revenue 324,744 740,599 634,466 499,093 909,295
Maximum Principal and Interest Requirements, Alrport Revenue Bonds,
Fiscal Year Ending 9-30-84 (secured by Gross Income from System)--------------------- $ 318,881
Coverage Based on Gross Income, Fiscal Year Ended 9-30-83 -------------------------=-- 9.52 Times
Airport Revenue Bond Outstanding,9-30-83------------------------------------------2,055,000
Interest and Sinking Fund, 9-30-93 -------------------------------------------------- F 7889377
Reserve Fund, Cash and Investments, 9-30-83 ----------------------------------------- $ 300,000
-25-
GENERAL INFORMATION REGARDING THE CITY AND ITS ECONOMY
LOCATION AND AREA ...
The City of Lubbock, County Seat of Lubbock County, Texas, Is located on the South plains of West
Texas. Lubbock is the economic, educational, cultural and medical center of the area.
POPULATION ...
Lubbock is the eighth largest City in Texas:
* 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 Statistical Reporting Service, U.S. Department of
Agriculture report as follows:
Lubbock County's 1982 cotton production was 78,800 bales; grain sorghum production was 243,990,000
pounds; and corn production was 182,400 bushels.
On January 1, 1983, there were an estimated 660000 head of cattle and calves located on farms or in feed
lots in Lubbock County.
Lubbock County Cash Receipts from farm marketings, 1981/82, were:
1981 1982
All Crops 68,4 4,000 62,993,000
Livestock and Products 40,618,000 39,557,000
Total Cash Receipts $109,102,000 $102,550,000
1982 cotton production in a 23 county (including Lubbock County)area surrounding Lubbock was 1,153,800
bales; 1982 grain sorghum production in this same area was 3,431,820,000 pounds; and grain corn
production was 57,894,200 bushels.
Three major vegetable oil plants located In Lubbock have a combined weekly capacity of over 2,400 tons
of cottonseed and soybean oil.
Several major seed companies are headquartered in Lubbock.
- 26-
City of Lubbock
(Corporate Limits)
1910
Census
1,938
1920
Census
4,031
1930
Census
20,520
1940
Census
31,853
1950
Census
71,390
1960
Census
128,691
1970
Census
149,101
1980
Census
173,979
1984
Estimate
186,427*
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 Statistical Reporting Service, U.S. Department of
Agriculture report as follows:
Lubbock County's 1982 cotton production was 78,800 bales; grain sorghum production was 243,990,000
pounds; and corn production was 182,400 bushels.
On January 1, 1983, there were an estimated 660000 head of cattle and calves located on farms or in feed
lots in Lubbock County.
Lubbock County Cash Receipts from farm marketings, 1981/82, were:
1981 1982
All Crops 68,4 4,000 62,993,000
Livestock and Products 40,618,000 39,557,000
Total Cash Receipts $109,102,000 $102,550,000
1982 cotton production in a 23 county (including Lubbock County)area surrounding Lubbock was 1,153,800
bales; 1982 grain sorghum production in this same area was 3,431,820,000 pounds; and grain corn
production was 57,894,200 bushels.
Three major vegetable oil plants located In Lubbock have a combined weekly capacity of over 2,400 tons
of cottonseed and soybean oil.
Several major seed companies are headquartered in Lubbock.
- 26-
BUSINESS AND INDUSTRY ...
Lubbock SMSA Labor Force Estimates*
November October September November October September
1983** 1983 1983 1982 1982 1982
Civilian Labor ForceU 7f M,500 107,500 TO -3,70b 05, 00
Total Employment 105,700 104,600 104,000 102,200 100,400 99,200
Unemployment 7,800 6,200 7,500 5,300 5,300 6,100
Percent Unemployed 6.9% 5.6% 6.7% 4.9% 5.0% 5.8%
State of Texas Labor Force Estimates*
in thousands
November October September November October September
1983** 1983 1983 1982 1982 1982
Civilian Labor Force 7,673.3 7,666.0 7,724.3 7,456.9 7,362.9 7,353.0
Total Employment 7,151.8 7,133.8 7,061.6 6,891.3 6,804.8 6,762.2
Unemployment 521.5 532.2 662.7 565.6 558.1 590.8
Percent Unemployed 6.8% 6.9% 8.6% 7.6% 7.6% 8.0%
United States Labor Force Estimates*
in thousands
November October September November October September
1983** 1983 1983 1982 1982 1982
Civilian Labor Force 112,147.0 111,815.0 112,369.0 110,955.0 10,767.0 110,546.0
Total Employment 103,018.0 101,929.0 101,945.0 99,379.0 99,825.0 99,851.0
Unemployment 9,129.0 9,383.0 9,830.0 11,476.0 10,942.0 10,695.0
Percent Unemployed 8.1% 8.4% 8.8% 10.4% 9.9% 9.7%
* Source: Texas Employment Commission.
** Subject to revision.
The Texas Employment Commission reported In December, 1983, that November, 1983, non-agricultural
employment in the Lubbock area totaled 90,900, up from 90,600 in November, 1982; of this total an
estimated 10,200 were employed in manufacturing compared to 11,400 in November, 1982.
Over 240 manufacturing plants in Lubbock produce such products as semi -conductor products, vegetable
oils, heavy earth -moving machinery, Irrigation equipment and pipe, farm equipment, paperboard boxes,
foodstuffs, mobile and prefabricated homes, poultry and livestock feeds, boilers and pressure vessels,
automatic sprinkler system heads, structural steel fabrication and soft drinks.
Some larger industries in Lubbock (with 100 employees or more) are:
Comoanv
Texas Instruments, Inc.
Lubbock Avalanche -Journal Southwestern
Newspaper Corporation
Plains Co-op Oil Mill'
Johnson Manufacturing Company (Division of
Eagle-Picher Industries)
Frito-Lay, Inc. (Subsidiary of Pepsico, Inc.)
Evans Transportation Company (Division of
Evans Products Company)
Goulds Pumps, Inc.
Coca-Cola Bottling Company
Grinnell Fire Protection Systems Company
(Subsidiary of Tyco Laboratories)
Estimated
Employees
-27-
January
Product
1984*
Semi -Conductor Elements and Products
1
Newspaper
350
Vegetable Oil Products, Cottonseed
325
Products
Heavy Earth -Moving Machinery and
300
Farm Equipment
Potato and Corn Chips
300
Pressure Vessels for Rail Cars
200
Vertical Turbine Pumps
200
Soft Drinks
175
Automatic Sprinkler Heads
150
-27-
Company
Rainbo Baking Company, subdivision of
Cambell -Taggart Associated Bakeries, Inc.
Mrs. Baird's Bakeries
Bell Dairy Products, Inc.
Lubbock Cotton Oil Company
Dr. Pepper -Seven Up Bottling Company
Horn and Gladden
Hall Foundries
Randolph Manufacturing
* Source: Lubbock Chamber of Commerce.
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.
Sales do Marketing Management, Survey of Buying Power, estimates Lubbock County 1982 retail sales at
1,406,415,000, compared to an estimate of 1,413,679,000 for 1981.
Combined Bank Statistics
Year End
Estimated
Year End
Employees
1972
January
Product
1984*
Bread Products
130
Bread Products
125
Dairy Products
100
Cottonseed Oil and Other Cottonseed
100
Products, Soyean Oil
878,164,171
Soft Drinks
100
Steel Fabrication
100
Foundry Patterns
100
Gear Drives
100
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.
Sales do Marketing Management, Survey of Buying Power, estimates Lubbock County 1982 retail sales at
1,406,415,000, compared to an estimate of 1,413,679,000 for 1981.
Combined Bank Statistics
Year End
Deposits
Year End
Deposits
1972
$7596,697,439
978
51,104,996,18
1973
723,327,701
1979
1,219,990,000
1974
793,915,466
1980
1,369,037,000
1975
878,164,171
1981
1,500,160,000
1976
1,013,973,289
1982
1,586,469,000
1977
1,104,602,863
1983
1,683,241,000
EDUCATION ... TEXAS TECH UNIVERSITY...
Established in Lubbock in 1925, Texas Tech University is the third largest State-owned University in Texas
and had a Fall, 1983 enrollment of 23,704. Accredited by the Southern Association of Colleges and
Schools, the University is a co-educational, State -supported institution 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 has over 90 permanent
buildings with additional construction in progress. 1983-84 faculty membership is 1,519, and there are
4,689 other full and part-time employees including professional and administrative staff. Including the
Medical School, the University's operating budget for 1983-84 is $208.7 million of which $138.6 million is
from State appropriations; book value of physical plant assets, including the Medical School, is $339.7
million.
In 1%9, the State Legislature authorized the establishment of a medical school at the University.
Construction of Pods A and B of the school is complete, and construction of Pod C is near completion.
The medical school opened in 1972, and had an enrollment of 390 for the Fall Semester, 1983, not
including residents. There are 51 graduate students. The School of Nursing admitted its first class in
Fall, 1981 and had a Spring Semester, 1984 enrollment of 158. The Allied Health School admitted Its first
class in Fall, 1982, and Spring Semester, 1984 enrollment, is 68 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. January, 1984, enrollment was 29,033; there were 2,012 faculty and professional personnel
and other employees. The District operates 4 senior high schools, 8 junior high schools, 38 elementary
schools and other educational programs.
-28-
SCHOLASTIC MEMBERSHIP HISTORY*
* Source: Superintendent's Office, Lubbock Independent School District.
** As of January 19, 1984.
Lubbock Christian College, a privately owned, co-educational senior college located in Lubbock, had an
enrollment of approximately 930 for the Spring Semester, 1984, 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, 1984 enrollment was approximately 1,085. The College also
operates a major off -campus learning center at Reese Air Force Base; course offerings are in primarily
academic subjects and Spring, 1984 enrollment was 478.
The State of Texas School for the Mentally Retarded, located on a 220 acre site In Lubbock, now consists
of 38 buildings with accommodations for 536 students. The School's operating budget for 1983/84 is in
excess of $13.0 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, Southwest Airlines and Muse Air. Non-stop service Is provided to Dallas -Fort Worth Regional
Airport, Dallas Love Field, Houston, Amarillo, Austin, El Paso and Midland -Odessa. 1983 passenger
boardings totaled 512,637. 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 Lines,a subsidiary of Greyhound Corporation,
provides bus service. Headquarters for T.I.M.E.-DC, Inc., a transcontinental 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, I 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 at 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 2,588 military and 370 civilian
personnel.
State of Texas ... More than 23 State of Texas boards, departments, agencies and commissions have
offices in Lubbock; several of these offices have multiple units or offices.
Federal Government ... Several Federal departments and various other administrations and agencies have
offices in Lubbock; a Federal District Court Is located in the City.
-29-
Refined
Average
School
Student
Daily
Year
Membershl
Attendance
973-74
2,499
30,477
1974-75
32,209
30,233
1975-76
31,733
29,888
1976-77
31,502
29,683
1977-78
31,163
29,534
1978-79
29,877
28,284
1979-80
29,377
27,237 '
1980-81
28,828
27,044
1981-82
28,942
26,993
1982-83
28,647
27,039
1983-84
29,033**
* Source: Superintendent's Office, Lubbock Independent School District.
** As of January 19, 1984.
Lubbock Christian College, a privately owned, co-educational senior college located in Lubbock, had an
enrollment of approximately 930 for the Spring Semester, 1984, 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, 1984 enrollment was approximately 1,085. The College also
operates a major off -campus learning center at Reese Air Force Base; course offerings are in primarily
academic subjects and Spring, 1984 enrollment was 478.
The State of Texas School for the Mentally Retarded, located on a 220 acre site In Lubbock, now consists
of 38 buildings with accommodations for 536 students. The School's operating budget for 1983/84 is in
excess of $13.0 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, Southwest Airlines and Muse Air. Non-stop service Is provided to Dallas -Fort Worth Regional
Airport, Dallas Love Field, Houston, Amarillo, Austin, El Paso and Midland -Odessa. 1983 passenger
boardings totaled 512,637. 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 Lines,a subsidiary of Greyhound Corporation,
provides bus service. Headquarters for T.I.M.E.-DC, Inc., a transcontinental 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, I 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 at 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 2,588 military and 370 civilian
personnel.
State of Texas ... More than 23 State of Texas boards, departments, agencies and commissions have
offices in Lubbock; several of these offices have multiple units or offices.
Federal Government ... Several Federal departments and various other administrations and agencies have
offices in Lubbock; a Federal District Court Is located in the City.
-29-
HOSPITALS AND MEDICAL CARE ...
There are seven hospitals with a total of 1,308 licensed beds. Methodist Hospital, the largest, has 349
beds, and also operates an accredited nursing school; St. Mary's of the Plains Hospital has 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 and has 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 63 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 300 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 30 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 30 acres, Is being redeveloped
privately with office buildings, hotels and motels, a hospital and other facilities.
Available to residents are Texas Tech University programs and events, Texas Tech University Museum,
Planetarium and Ranch Heritage Center exhibits and programs, Lubbock Memorial Civic Center and its
events, Lubbock Symphony Orchestra programs, Lubbock Theatre Center, Lubbock Civic Ballet, Municipal
Auditorium and Coliseum programs and events, the library and its branches, the annual Panhandle -South
Plains Fair, college and high school football, basketball and other sporting events; modern movie theatres.
CHURCHES...
Lubbock has approximately 200 churches representing more than 23 denominations.
UTILITY SERVICES...
Water and Sewer - City of Lubbock.
Gas - Energas Company (a division of Pioneer Corporation).
Electric - City of Lubbock (Lubbock Power do Light) and Southwestern Public Service Company.
Telephone - Southwestern Bell Corporation.
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.
-30-
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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 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 delivery of the Bonds is subject to an opinion of Messrs. Dumas, Huguenin, Boothman do Morrow, Bond
Counsel to the City ("Bond Counsel"), to the effect that interest on the Bonds is exempt from all present
Federal income taxes under the applicable statutes, published rulings, regulations and court decisions
existing on the date of such opinion. The laws, regulations, court decisions and administrative regulations
and rulings upon which the conclusion stated in Bond Counsel's opinion will be based are subject to change
by the Congress, the Treasury Department and later judicial and administrative decisions.
REGISTRATION AND QUALIFICATION OF BONDS FOR SALE
The sale of the Bonds has not been registered under the Federal Securities Act of 1933, as amended, in
reliance upon the exemption provided thereunder by Section 3(a) (2); and the Bonds have not been qualified
under the Securities Act of Texas in reliance upon various exemptions contained therein; nor have the
Bonds been qualified under the securities acts of any jurisdiction. The City assumes no responsibility for
qualification of the Bonds under the securities laws of any jurisdiction in which the Bonds may be sold,
assigned, pledged, hypothecated or otherwise transferred. This disclaimer of responsibility for qualifica-
tion for sale or other disposition of the Bonds shall not be construed as an interpretation of any kind with
regard to the availability of any exemption from securities registration provisions.
LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TEXAS
Section 9 of the Bond Procedures Act of 1981 states: "All bonds issued by an issuer shall constitute
negotiable instruments, and are investment securities governed by Chapter 8, Texas Uniform Commercial
Code, notwithstanding any provisions of law or court decision to the contrary, and are legal and
authorized investments for banks, savings banks, trust companies, building and loan associations, savings
and loan associations, insurance companies, fiduciaries, and trustees, and for the sinking fund of cities,
towns, villages, school districts, and other political subdivisions or public agencies of the State of Texas".
The Act further provides that the bonds are eligible to secure deposits of public funds of the state, its
agencies and political subdivisions, and are legal security for those deposits to the extent of their market
value. No review by the City has been made of the laws in other states to determine whether the bonds
are legal investments for various Institutions in those states.
LEGAL OPINIONS AND NO -LITIGATION CERTIFICATE
The City will furnish a complete transcript of proceedings had incident to the authorization and issuance
of the Bonds, including the unqualified approving legal opinion of the Attorney General of the State of
Texas as to the Initial Bond and any changes in denominations or form authorized in said proceedings, 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 applicable
statutes, published rulings, regulations, 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 will also be furnished. Bond Counsel was
not requested to participate, and did not take part, in the preparation of the Notice of Sale and Bidding
Instructions, the Official Bid Form and the Official Statement, and such firm has not assumed any
responsibility with respect thereto or undertaken independently to verify any of the information contained
therein, except that, In its capacity as Bond Counsel, such firm has reviewed the information describing
the Bonds in the Official Statement to verify that such description conforms to the provisions of the bond
Ordinance. 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.
-32-
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 summaries of the
statutes, documents and resolutions contained in this Official Statement are made subject to all of the
provisions of such statutes, documents and resolutions. These summaries do not purport to be complete
statements of such provisions and reference is made to such documents for further information.
Reference is made to original documents in all respects.
FINANCIAL ADVISOR
First Southwest Company Is employed as Financial Advisor to the City in connection with the Issuance of
the Bonds. The Financial Advisor's fee for services rendered with respect to the sale of the Bonds is
contingent upon the Issuance and delivery of the Bonds. First Southwest Company may submit a bid for
the Bonds, either Independently or as a member of a syndicate organized to submit a bid for the Bonds.
CERTIFICATION OF THE OFFICIAL STATEMENT
At the time of payment for and delivery of the Bonds, the Purchaser will be furnished a certificate,
executed by proper officers, acting in their official capacity, to the effect that to the best of their
knowledge and belief: (a) the descriptions and statements of or pertaining to the City contained In Its
Official Statement, and any addenda, supplement or amendment thereto, on the date of such Official
Statement, on the date of sale of said Bonds and the acceptance of the best bid therefor, and on the date
of the delivery, were and are true and correct in all material respects; (b) Insofar as the City and Its
affairs, including its financial affairs, are concerned, such Offlcial Statement did not and does not contain
an untrue statement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances under which they were made,
not misleading; (c)insofar as the descriptions and statements, including financial data, of or pertaining to
entities, other than the City, and their activities contained In such Official Statement are concerned, such
statements and data have been obtained from sources which the City believes to be reliable and 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.
The Ordinance authorizing the issuance of the Bonds will also approve the form and content of this
Official Statement, and any addenda, supplement or amendment thereto, and authorize Its further use in
the reoffering of the Bonds by the Purchaser.
ATTEST:
EVELYN E. GAFFGA
City Secretary
-33-
ALAN HENRY
Mayor
NOTICE OF SALE
AND
BIDDING INSTRUCTIONS
ON
$10,000,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
ELECTRIC LIGHT AND POWER SYSTEM
REVENUE BONDS, SERIES 1984
Selling Thursday, March 22, 1984, at 11:00 AM, CST
THE SALE
Bonds Offered for Sale at Competitive Bidding ... The City of Lubbock, Texas (the "City"), is offering for
sale its $10,000,000 Electric Light and Power System Revenue Bonds, Series 1984 (the 'Bonds" or 'Bond",
which shall include, for purposes of definition, the Initial Bond).
Address of Bids ... Sealed bids, plainly marked 'Bid for Bonds", should be addressed and delivered to Mrs.
Evelyn E. Gaffga, City Secretary, City of Lubbock, Texas", prior to 11:00 AM, CST, on the date of the bid
opening. All bids must be submitted on the Official Bid Form, without alteration or interlineation.
Place and Time of Bid Opening ... The City Council will open and publicly read the bids for the purchase
of the Bonds at the City Hall, Lubbock, Texas, at 11:00 AM, CST, Thursday, March 22, 1984.
Award of the Bonds ... The City Council will take action to award the Bonds (or reject all bids) promptly
after the opening of bids, and adopt an ordinance authorizing the Bonds and approving the Official
Statement (the "Ordinance").
THE BONDS
Description ... The Bonds will be dated April 15, 1984 (the 'Bond Date"), and Interest will be due on
October 15, 1984, and each April 15 and October 15 thereafter until the earlier of maturity or prior
redemption. The Bonds will be issued only in fully registered form in any integral multiple of $5,000 for
any one maturity, and principal and semi-annual interest will be paid by ,
the paying agent/registrar (the "Paying Agent/Registrar"). Principal of the Bonds will be payable to the
registered holder or owner (the "Holder" or "Owner") at maturity or redemption upon presentation at the
principal corporate office of the Paying Agent/Registrar. Interest on the Bonds will be payable by check,
dated as of the interest payment date, and mailed by the Paying Agent/Registrar to registered Holders as
shown on the records of the Paying Agent/Registrar on the Record Date (see "Record Date for Interest
Payment" herein). The Bonds will mature on April 15 in each year as follows:
The City reserves the right, at its option, to redeem Bonds maturing April 15, 1995, through April 15,
2004, both inclusive, in whole or any part thereof by lot, on April 15, 1994, or any interest payment date
thereafter, at the par value thereof plus accrued interest to the date fixed for redemption. If less than all
of the Bonds are to be redeemed by the City, the City shall determine the maturity or maturities and the
amounts thereof to be redeemed and shall direct the Paying Agent/Registrar to call by lot Bonds, or
portions thereof, for redemption. Not less than 30 days prior to a redemption date for the Bonds, the City
shall cause a notice of redemption to be sent by United States mail, first class, postage prepaid, to each
Holder of a Bond to be redeemed, in whole or in part, at the address of the Holder appearing on the
registration books of the Paying Agent/Registrar at the time such notice of redemption is mailed.
Limitation on Transfer of Bonds Called for Redemption ... Neither the City or the Paying Agent/ -
Registrar shall be required to issue or transfer to an assignee of the Holder of the Bonds any Bond called
for redemption, in whole or in part, within 45 days of the date fixed for redemption; provided, however,
_I-
.! 01
Principal
Principal
Principal
Year
19r
Amount
$500,000
Year
1992
Amount
5500,000
Year
1998
Amount
5500,000
1986
500,000
1993
500,000
1999
500,000
1987
500,000
1994
500,000
2000
500,000
1988
500,000
1995
500,000
2001
500,000
1989
500,000
1996
500,000
2002
500,000
1990
500,000
1997
500,000
2003
500,000
1991
500,000
2004
500,000
The City reserves the right, at its option, to redeem Bonds maturing April 15, 1995, through April 15,
2004, both inclusive, in whole or any part thereof by lot, on April 15, 1994, or any interest payment date
thereafter, at the par value thereof plus accrued interest to the date fixed for redemption. If less than all
of the Bonds are to be redeemed by the City, the City shall determine the maturity or maturities and the
amounts thereof to be redeemed and shall direct the Paying Agent/Registrar to call by lot Bonds, or
portions thereof, for redemption. Not less than 30 days prior to a redemption date for the Bonds, the City
shall cause a notice of redemption to be sent by United States mail, first class, postage prepaid, to each
Holder of a Bond to be redeemed, in whole or in part, at the address of the Holder appearing on the
registration books of the Paying Agent/Registrar at the time such notice of redemption is mailed.
Limitation on Transfer of Bonds Called for Redemption ... Neither the City or the Paying Agent/ -
Registrar shall be required to issue or transfer to an assignee of the Holder of the Bonds any Bond called
for redemption, in whole or in part, within 45 days of the date fixed for redemption; provided, however,
_I-
.! 01
r
such limitation of transfer shall not be applicable to an exchange by the Bond Holder of the unredeemed
balance of a Bond called in part for redemption.
Tax Equi y and Fiscal Responsibility Act of 1982 ("TEFRA") ... TEFRA, as amended, mandates, among
other things, that all municipal bonds excepting those with a one year maturity or less) must be
registered in the owner's name, beginning with July 1, 1983.
Successor Paving Agent/Registrar ... Provision is made in the Ordinance for replacement of the Paying
Agent/Registrar. The City covenants to maintain and provide a Paying Agent/Registrar at all times while
the Bonds are outstanding and any successor Paying Agent/Registrar shall be a bank, trust company,
financial institution, or other entity (which includes the City of Lubbock, Texas) duly qualified and legally
authorized to serve as and perform the duties and services of Paying Agent/Registrar for the Bonds. Upon
any change in the Paying Agent/Registrar for the Bonds, the City agrees to promptly cause a written
notice thereof to be sent to each registered Owner of the Bonds by United States mail, first class, postage
prepaid, which notice shall also give the address of the new Paying Agent/Registrar.
Source of Payment ... The Bonds are special obligations, payable solely from and secured by a first lien
on and pledge of the revenues of City's Electric Light and Power System, after deduction of reasonable
expenses of operation and maintenance.
CONDITIONS OF THE SALE
Type of Bids and Interest Rates ... The Bonds will be sold in one block on an "All or None" basis, and at a
price of not less than their par value plus accrued interest to the date of delivery of the Bonds. Bidders
are invited to name the rate(s) of interest to be borne by the Bonds, provided that each rate bid must be in
a multiple of 1/8 of 1% or 1/20 of 1% and the effective interest rate must not exceed 13%. The highest
rate bid may not exceed the lowest rate bid by more than 3% in rate. No limitation is imposed upon
bidders as to the number of rates or changes which may be used. All Bonds of one maturity must bear one
and the same rate. No bids involving supplemental interest rates will be considered. Each bidder shall
state in his bid the total interest cost in dollars and the net effective interest rate determined thereby
(calculated in the manner prescribed by Article 717k-2, VATCS), which shall be considered informative
only and not as a part of the bid.
Basis for Award ... For the purpose of awarding the sale of the Bonds, the interest cost of each bid will
be computed by determining, at the rate or rates specified therein, the total dollar cost of all interest on
the Bonds from the Bond Date to their respective maturities, using the table of Bond Years herein, and
deducting therefrom the premium bid, if any. Subject to the City's right to reject any or all bids and to
waive any irregularities except time of filing, the Bonds will be awarded to the bidder or syndicate
account whose name first appears on the Official Bid Form (the "Initial Purchaser" or "Purchaser") whose
bid based on the above computation produces the lowest net effective interest cost to the City.
Good Faith Deposit ... A Good Faith Deposit, payable to the "City of Lubbock, Texas", in the amount of
200,000.00, is required. Such Good Faith Deposit shall be in the form of a Cashier's Check, or its
equivalent, which is to be retained uncashed by the City pending the Purchaser's compliance with the
terms of his bid and the Notice of Sale and Bidding Instructions. The Good Faith Deposit may accompany
the Official Bid Form or it may be submitted separately. If submitted separately, it shall be made
available to the City prior to the opening of the bids, and shall be accompanied by instructions from the
bank on which drawn which authorize its use as a Good Faith Deposit by the Purchaser who shall be named
in such instructions. The Good Faith Deposit of the Purchaser will be applied on the purchase price on the
date of delivery of the Bonds. No interest will be allowed on the Good Faith Deposit. In the event the
Purchaser should fail or refuse to take up and pay for the Bonds in accordance with his bid, then said
check shall be cashed and accepted by the City as full and complete liquidated damages. The checks
accompanying bids other than the winning bid will be returned immediately after the bids are opened, and
an award of the Bonds has been made.
DELIVERY OF THE BONDS AND ACCOMPANYING DOCUMENTS
CUSIP Numbers ... It is anticipated that CUSIP identification numbers will appear on the Bonds, but
neither the failure to print or type such number on any Bond nor any error with respect thereto shall
constitute cause for a failure or refusal by the Purchaser to accept delivery of and pay for the Bonds in
accordance with the terms of this Notice of Sale and the terms of the Official Bid Form. All expenses in
relation to the printing or typing of CUSIP numbers on the Bonds shall be paid by the City; provided,
however, that the CUSIP Service Bureau charge for the assignment of the numbers shall be the
responsibility of and shall be paid for by the Purchaser.
Initial Delivery of Initial Bond ... Initial Delivery will be accomplished by the issuance of one Initial Bond
also called the "Bonds"), either in typed or printed form, in the aggregate principal amount of
$10,000,000, payable in stated installments to the Purchaser, signed by the Mayor and City Secretary,
either manual or facsimile, approved by the Attorney General, and registered and manually signed by the
Y. V Z
Comptroller of Public Accounts. Initial Delivery will be at the principal corporate office of the Paying
Agent/Registrar. Payment for the Bonds must be made in immediately available funds for unconditional
credit to the City, or as otherwise directed, by,the City,' The Purchaser will be given six business days'
notice of the time fixed for delivery of the Bonds. It' is anticipated that Initial Delivery of the Initial
Bond can be made on or about April 26, 1984, and it is understood and agreed that the Purchaser will
accept delivery and make payment for the Initial Bond by 10:00 AM, CST, on April 26, 1984, or thereafter
on the date the Bond is tendered for delivery, up to and including May 10, 1984. The Purchaser will not be
required to pay for the Initial Bond until such time as the definitive Bonds are available and have been
duly registered. If for any reason the City is unable to make delivery on or before May 10, 1984, then the
City shall immediately contact the Purchaser and offer to allow the Purchaser to extend his offer for an
additional thirty days. If the Purchaser does not elect to extend his offer within six days thereafter, then
his Good Faith Deposit will be returned, and both the City and the Purchaser shall be relieved of any
further obligation. In no event shall the City be liable for any damages by reason of its failure to deliver
the Bonds, provided such failure is due to circumstances beyond the City's reasonable control.
Delivery of Definitive Bonds ... Upon payment for the Initial Bond at the time of the Initial Delivery, the
Paying Agent Registrar shall cancel the Initial Bond, provided registration instructions have been received
by the Paying Agent/Registrar, and shall register and deliver the registered definitive Bonds, in any
integral multiple of $50000 for any one maturity, in accordance with instructions received from the
Purchaser and/or members of the Purchaser's syndicate account. It shall be the duty of the Purchaser to
furnish to the Paying Agent/Registrar, at least five business days prior to the Initial Delivery, written
instructions on forms which the Purchaser must request and obtain from, and which shall be provided by,
the Paying Agent/Registrar designating the names in which the Bonds are to be registered, the addresses
of the registered Holders, the maturities, interest rates and denominations. If such forms are not
available, written instructions by letter shall be furnished to Paying Agent/Registrar. The Paying
Agent/Registrar will not be required to accept registration instructions after the fifth business day prior
to Initial Delivery. If such written instructions are not received within the specified time period, the
cancellation of the Initial Bond and delivery of registered definitive Bonds will be delayed until such
written instructions are received.
Conditions to Delivery ... The obligation of the Purchaser to take up and pay for the Bonds is subject to
the Purchaser's receipt of (a) the legal opinion of Messrs. Dumas, Huguenin, Boothman & Morrow, Dallas,
Texas, Bond Counsel for the City ("Bond Counsel'), (b) the no -litigation certificate, and (c) the
certification as to the Official Statement, all as further described in the Official Statement.
Legal Opinions ... The Bonds are offered when, as and if issued, subject to the unqualified legal opinion
of the Attorney General of the State of Texas, and Messrs. Dumas, Huguenin, Boothman & Morrow (see
Legal Opinions in Official Statement); the opinion of said firm will be printed on the Bonds.
Certification of Official Statement ... At the time of payment for, and Initial Delivery of, the Initial
Bond, the City will execute and deliver to the Purchaser a certificate in the form set forth in the Official
Statement.
Change in Tax Exempt Status ... At any time before the Bonds are tendered for delivery, the Purchaser
may withdraw his bid if the interest received by private holders from bonds of the same type and
character shall be declared to be taxable income under present Federal income tax laws, either by ruling
of the Internal Revenue Service or by a decision of any Federal court, or shall be declared taxable or be
required to be taken into account in computing any Federal income taxes, by the terms of any Federal
income tax law enacted subsequent to the date of this Notice of Sale and Bidding Instructions.
GENERAL
Future Registration ... The Bonds may be transferred, exchanged and registered only on the registration
books of the Paying Agent/Registrar, and such registration and transfer shall be without expense or
service charge to the Holder, except for any tax or other governmental charges required to be paid with
respect to such registration and transfer. A Bond may be assigned by the execution of an assignment form
on the Bond or by other instrument of transfer and assignment acceptable to the Paying Agent/Registrar.
A new Bond or Bonds will be delivered by the Paying Agent/Registrar, in lieu of the Bond being
transferred or exchanged, at the principal corporate office of the Paying Agent/Registrar, or sent by
United States mail, first class, postage prepaid, to the new registered Holder or his designee. To the
extent possible, new Bonds issued in an exchange or transfer of Bonds will be delivered to the registered
Holder or assignee of the Holder in not more than three business days after the receipt of the Bonds to be
cancelled, and the written instrument of transfer or request for exchange duly executed by the Holder or
his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. New Bonds registered and
delivered in an exchange or transfer shall be in any integral multiple of $5,000 for any one maturity and
for a like aggregate principal amount as the Bond or Bonds surrendered for exchange or transfer.
Record Date for Interest Payment ... The record date ("Record Date') for the interest payable on any
interest payment date means the last business day of the preceding month.
01
In the event of a non-payment of interest on a scheduled payment date, and for 30 days thereafter, a new
record date for such interest payment (a "Special Record Date") will be established by the Paying
Agent/Registrar, if and when funds for the payment of such interest have been received from the City.
Notice of the Special Record Date and of the scheduled payment date of the past due interest (the
"Special Payment Date" which shall be 15 days after the Special Record Date) shall be sent at least five
business days prior to the Special Record Date by United States mail, first class, postage prepaid, to the
address of each Holder of a Bond appearing on the books of the Paying Agent/Registrar at the close of
business on the last business day next preceding the date of mailing of such notice.
Financial Advisor's Right to Bid ... First Southwest Company, the City's Financial Advisor, reserves the
right to bid on the Bonds.
Blue Sky Laws ... By submission of his bid, the Purchaser represents that the sale of the Bonds in states
other than Texas will be made only pursuant to exemptions from registration or, where necessary, the
Purchaser will register the Bonds in accordance with the securities law of the states in which the Bonds
are offered or sold. The City agrees to cooperate with the Purchaser, at the Purchaser's written request
and expense, in registering the Bonds or obtaining an exemption from registration in any state where such
action is necessary.
Not an Offer to Sell ... This Notice of Sale does not alone constitute an offer to sell the Bonds, but is
merely notice of the sale of the Bonds. The offer to sell the Bonds is being made by means of the Notice
of Sale and Bidding Instructions, the Official Bid Form and the Official Statement. Prospective
purchasers are urged to carefully examine the Official Statement to determine the investment quality of
the Bonds.
Issuance of Additional Bonds ... The City has no plans to sell additional Electric Light and Power System
Revenue Bonds.
Ratings ... The outstanding Electric Light and Power System Revenue Bonds of the City are rated "A 1"
by Moody's Investors Service, Inc. and "A+" by Standard do Poor's Corporation. Applications for contract
ratings on this issue have been made to both Moody's and Standard do Poor's. The results of their
determinations will be provided as soon as possible.
Municipal Bond Insurance ... in the event the Bonds are qualified for municipal bond insurance, and the
Purchaser desires to purchase such insurance, the cost therefor will be paid by the Purchaser.
The Official Statement ... The City will furnish to the Purchaser, without cost, 100 copies of the Official
Statement and 100 copies of any addenda, supplement or amendment thereto), complete except as to
interest rates and other terms relating to the reoffering of the Bonds. The Purchaser may arrange at his
own expense to have the Official Statement reproduced and printed if he requires more than 100 copies,
and may also arrange, at his total expense and responsibility, for completion and perfection of the first or
cover page of the Official Statement so as to reflect interest rates and other terms and information
related to the reoffering of the Bonds. The City assumes no responsibility or obligation for the
distribution or delivery of any of these copies to any one other than the Purchaser.
Additional Copies of Notice, Bid Form and Statement ... A limited- number of additional copies of this
Notice of Sale and Bidding Instructions, the Official Bid Form and the Official Statement, as available
over and above the normal mailing, may be obtained at the offices of First Southwest Company,
Investment Bankers, 800 Mercantile Dallas Building, Dallas, Texas 75201, Financial Advisor to the City.
The City reserves the right to reject any and all bids and to waive irregularities, except time of filing.
The City Council, by resolution adopted this 23rd day of February, 1984, approved the form and content of
the Notice of Sale and Bidding Instructions, the Official Bid Form and Official Statement, and has
authorized the use thereof in its initial offering of the, Bonds. On the date of the sale, the City Council
will, in the Ordinance authorizing the issuance of the Bonds, reconfirm its approval of the form and
content of the Official Statement, and any addenda, supplement or amendment thereto, and authorize its
further use in the reoffering of the Bonds by the Purchaser.
ATTEST:
EVELYN E. GAFFGA
City Secretary
February 23, 1984
_iv_
ALAN HENRY
Mayor
04
BOkD YEARS
Accumulated
Year
Amount
Bond Years
Bond Years
Year
1985 $
500,000
500
500
1985
1986
500,000
11000
1,500
1986
1987
500,000
11500
3,000
1987
1988
500,000
2,000
5,000
19AS
1989
500,000
2,500
7,500
1989
1990 ,
500,000
3,000
10,500
1990
1991
500,000
3,500
14,000
1991-
1992
500,000
4,000
18,000
1992
1993
500,000
4,500
22,500
1993
1994
500,000
5,000
27,500
1994
1995
500,000
5,500
33,000
1995
1996
500,000
6,000
39,000
1996
1997
5001000
6,500
45,500
1997
1998
500,000
7,000
52,500
1998
1999
500,000
7,500
60,000
1999
2000
500,000
8,000
68,000
2000
2001
500,000
81500
76,500
2001
2002
500,000
91000
85,500
2002
2003
500,000
9,500
95,000
2003
2004
500,000
10,000
105,000
2004
Averaqe
Maturity ---------------------------------10.500
Years
OFFICIAL BID FORM
Honorable Mayor and City Council
City of Lubbock
Lubbock, Texas
March 22, 1984
Mayor and Members of the City Council:
Reference is made to your Official Statement and Notice of Sale and Bidding Instructions, dated February
23, 1984, of $10,000,000 CITY OF LUBBOCK, TEXAS ELECTRIC LIGHT AND POWER SYSTEM
REVENUE BONDS, SERIES 1984, both of which constitute a part hereof.
For your legally issued Bonds, as described in said Notice of Sale and Bidding Instructions and Official
Statement, we will pay you par and accrued interest from date of issue to date of delivery to us, plus a
cash premium of $ for Bonds maturing and bearing interest as follows:
Interest Interest Interest
Maturity Rae Maturity Rate Maturity Rate
4-15-1985 % 4-15-1992 % 4-15-1998 %
4-15-1986 % 4-15-1993 % 4-15-1999 %
4-15-1987 % 4-15-1994 % 4-15-2000 %
4-15-1988 % 4-15-1995 % 4-15-2001 %
4-15-1989 % 4-15-1996 % 4-15-2002 %
4-15-1990 % 4-15-1997 % 4-15-2003 %
4-15-1991 % 4-15-2004 %
Our calculation (which is not a part of this bid) of the interest cost from the above is:
Total Interest Cost $ t
Less Premium
NET INTEREST COST $
EFFECTIVE INTEREST RATE %
We are having the Bonds insured by _
The Initial Bond shall be registered in the name of
(syndicate account manager). We will advise
Corporate Trust Division, , , Texas, the Paying Agent Registrar, on
forms which may be provided by the Paying Agent/Registrar, our registration instructions at least five
business days prior to the date set for Initial Delivery: We will not ask the Paying Agent/Registrar to
accept any registration instructions after the fifth business day prior to Initial Delivery.
Check of the Bank, , in
the amount of 200,000.00, which represents our Good Faith Deposit (is attached hereto) or has been
made available to you prior to the opening of this bid), and is submitted in accordance with the terms as
set forth in the Official Statement and Notice of Sale and Bidding Instructions.
We agree to accept delivery of and make payment for the Bonds in immediately available funds in the
Corporate Trust Division, , Texas, not later than 10:00 AM, CST,
on April 26, 1984, or thereafter on the date the Bonds are tendered for delivery, pursuant to the terms set
forth in the Notice of Sale and Bidding Instructions.
Respectfully submitted,
By
Authorized Representative
ACCEPTANCE CLAUSE
The above and foregoing bid is hereby in all things accepted by the City of Lubbock, Texas, this the 22nd
day of March, 1984.
ATTEST:
City Secretary
Mayor
Return of Good Faith Deposit is hereby acknowledged: J 06
By
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.
OFFICIAL STATEMENT
Dated February 23, 1984
INTEREST EXEMPT, IN THE OPINION OF BOND COUNSEL,
FROM PRESENT FEDERAL INCOME TAXES
$10,000,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
ELECTRIC LIGHT AND POWER SYSTEM
REVENUE BONDS, SERIES 1984
Dated: April 15, 1984 (the "Bond Date")
Due: April 15, as shown below
Interest on the Bonds will be payable April 15 and October 15 of each year commencing October 15, 1984.
The Bonds will be issued only in fully registered form in any integral multiple of $5,000 for any one
maturity. Principal of the Bonds will be payable to the registered holder or owner (the "Holder" or
"Owner") at maturity or redemption upon presentation at the principal corporate office of interest
Texas, the paying agent/registrar (the "Paying Agent/Registrar"
the Bonds will ya
be pable by check, dated as of the interest payment date, and mailed by the Payion
ng
Agent/Registrar to registered Holders as shown on the records of the Paying Agent/Registrar on the
Record Date (see "Record Date for Interest Payment" herein).
These bonds (the 'Bonds" or "Bond", which shall include for purposes of definition, the Initial Bond) will be
authorized under the provisions of the General Laws of the State of Texas, particularly Article 1111, et
seq., and Article 2368a, VATCS, and will constitute special obligations of the City, as provided in the
ordinance authorizing the Bonds (the "Ordinance".) See "Security for Payment".
MATURITY SCHEDULE
Amount
Maturity Rate Yield
Amount
00,000
Maturity Rate Yield
4-15-1995*
500,000
500,000
4-15-1985
4-15-1986
500,000
4-15-1996*
500,000
4-15-1987
500,000
4-15-1997*
500,000
4-15-1988
500,000
4-15-1998*
500,000
4-15-1989
500,000
4-15-1999*
500,000
4-15-1990
500,000
4-15-2000-
500,000
4-15-1991
500,000
4-15-2001*
500,000
4-15-1992
500,000
4-15-2002*
500,000
4-15-1993
500,000
4-15-2003*
500,000
4-15-1994
500,000
4-15-2004-
* The City reserves the right, at its option, to redeem Bonds maturing April 15, 1995, through April 15,
2004, both inclusive, in whole or any part thereof by lot, on April 15, 1994, or any interest payment date
thereafter, at the par value thereof plus accrued interest to the date fixed for redemption. If less than all
of the Bonds are to be redeemed by the City, the City shall determine the maturity or maturities and the
amounts thereof to be redeemed and shall direct the Paying Agent/Registrar to call by lot Bonds, or
portions thereof, for redemption. Not less than 30 days prior to a redemption date for the Bonds, the City
shall cause a notice of redemption to be sent by United States mail, first class, postage prepaid, to each
Holder of a Bond to be redeemed, in whole or in part, at the address of the Holder appearing on the
registration books of the Paying Agent/Registrar at the time such notice of redemption is mailed.
Payment Record: The City has never defaulted.
rality: Attornev General of the State of Texas,
Delivery: Anticipated on or about April 26, 1984.
07
TABLE OF CONTENTS
-2-
V0 08
Pane
Official Statement:
Description of the Bonds----------------------------------------------------------
1
Elected Officials-----------------------------------------------------------------
3
Appointed Officials--------------------------------------------------------------
3
Consultants and Advisors----------------------------------------------------------
3
Registration---------------------------------------------------------------------
4
Introductory Statement-----------------------------------------------------------
5/6
West Texas Municipal Power Agency------------------------------------------------
6
Security for Payment-------------------------------------------------------------
7
Electric Light and Power System Operating Statement for Past Five Fiscal Years---------
7
Authorized Revenue Bonds --------------------------------------------------------
7
Graph - System Revenue and Operating Expense -------------------------------------
g
Debt Service Requirements --------------------------------------------------------
9
Value of the System--------------------------------------------------------------
10
City's Equity in Electric Light and Power System _____________________________________
10
Lubbock Power and Light---------------------------------------------------------
11/13
ElectricRates-------------------------------------------------------------------
13/20
Comparison of Selected Present and Previous Rates --------------------------------
21
Comparison of Selected Customer Usage and Billings _________________________________
21
Lubbock Power and Light, Ten Largest Customers ------------------------------------
21
Analysis of Electric Bills----------------------------------------------------------
22
Statistical Data----------------------------------------------------------------
22
Graph - System Energy Requirements -----------------------------------------------
23
Graph - System Demand and Capacity ----------------------------------------------
24
Selected Provisions of the Ordinance -----------------------------------------------
25/30
Valuation and Debt Information----------------------------------------------------
31
Other Liabilities-----------------------------------------------------------------
32/34
Funded Debt Limitation-----------------------------------------------------------
34
Valuation and Funded Debt History -------------------------------------------------
34
Taxable Assessed Valuations by Category --------------------------------------------
35
Estimated Taxable Assessed Valuation ----------------------------------------------
35
Authorized General Obligation Bonds -----------------------------------------------
36
Estimated General Obligation Bond Program -----------------------------------------
36
Authorized but Unissued General Obligation Bonds of Overlapping Subdivisions -----------
36
Estimated Overlapping Funded Debt Payable From Ad Valorem Taxes -------------------
36
TaxData-----------------------------------------------------------------------
37
Tax Rate Limitations-------------------------------------------------------------
37
1% Municipal Sales Tax-----------------------------------------------------------
38
Estimated 1983-84 Tax Year Overlapping Taxes --------------------------------------
38
Top Ten Taxpayers---------------------------------------------------------------38
Interest and Sinking Fund Management Index _________________________________________
39
Computation of Self -Supporting Debt_______________________________________________
39
PensionFunds-------------------------------------------------------------------
39/40
General Information Regarding the City and Its Economy ______________________________
41/46
Ratings-------------------------------------------------------------------------
47
TaxExemption------------------------------------------------------------------
47
Registration and Qualification of Bonds for Sale ---------------------- r---------------
47
Legal Investments and Eligibility to Secure Public Funds in Texas-----------------------
47
Legal Opinions and No -Litigation Certificate ____________________________________ -
47
Authenticity of Financial Information_______________________________________________
48
Financial Advisor----------------------------------------------------------------
48
Certification of the Official Statement ---------------------------------------------
48
Audited Financial Statements, September 30, 1983, examined by
Mason, Nickels do Warner, Certified Public Accountants --------------------------------
Enclosure
The cover page hereof, this page, the Financial Statements, and any addenda, supplement or amendment
hereto, are part of the Official Statement.
-2-
V0 08
ELECTED OFFICIALS
Councilman
* See "Introductory Statement"
APPOINTED OFFICIALS
Term
Length of
City Council
Length of Service
Expires*
Occupation
Alan Henry
Elected Mayor August 13, 1983;
April 1984
Alan Henry Insurance Agency
Name
served 9 years previously as City
In This Position
of Lubbock
Larry J. Cunningham
Councilman and Mayor Pro -Tem
7 Years
17 Years
George W. Carpenter
Elected December 6, 1983
April 1984
President, Armstrong Mechan-
Mayor Pro -Tem
City Attorney
5 Years
ical, Inc.
Joan Baker
4 Years
April 1984
Homemaker
Councilwoman
Assistant City Manager for
i Year
4 Years
M. J. Aderton
6 Years
April 1986
. Retired Chairman of the Board,
Councilman
Assistant City Manager for
1 Year
Snook do Aderton, Inc.
E. Jack Brown
4 Years
April 1984
President, Brown McKee, Inc.
Councilman
* See "Introductory Statement"
APPOINTED OFFICIALS
Consultants and Engineers, Water Treatment Plant
Expansion and Airport -------------------------------------
Engineers for Generator System ---------------------------------
Engineers for 50 Year Water Supply -----------------------
Financial Advisor ----------
011 V
-----------------------------
-3-
Parkhill, Smith do Cooper
Lubbock, Texas
-------- Tippett do Gee
Abilene, Texas
---------- Freese and Nichols, Inc.
Fort Worth, Texas
--------- First Southwest Company
Dallas, Texas
Length of
Employment
Length of Time
With City
Name
Position
In This Position
of Lubbock
Larry J. Cunningham
City Manager
7 Years
17 Years
Jim C. Blagg
Deputy City Manager
1 Year
7 Years
John C. Ross, Jr.
City Attorney
5 Years
5 Years
Evelyn E. Gaffga
Secretary -Treasurer
5 Years
5 Years
J. Robert Massengale
Assistant City Manager for
i Year
4 Years
Financial Services
Rita P. Harmon
Assistant City Manager for
1 Year
8 Years
Management Services
James E. Bertram
Assistant City Manager for
1 Year
15 Years
Development Services
Bob Cass
Assistant City Manager for
1 Year
8 Years
Public Safety and Services
Samuel W. Wahl
Director of Water Utilities
14 Years
31 Years
Carroll McDonald
Director of Electric Utilities
5 Years
5 Years
Thomas J. Nichols
Chief of Police
1 Year
1 Year
CONSULTANTS AND ADVISORS
Auditors-------------------------------------------------------------- Mason, Nickels & Warner
Certified Public Accountants
Lubbock, Texas
Bond Counsel ----------------------------------------------
Dumas, Huguenin, Boothman do Morrow
Dallas, Texas
Consultants and Engineers, Water Treatment Plant
Expansion and Airport -------------------------------------
Engineers for Generator System ---------------------------------
Engineers for 50 Year Water Supply -----------------------
Financial Advisor ----------
011 V
-----------------------------
-3-
Parkhill, Smith do Cooper
Lubbock, Texas
-------- Tippett do Gee
Abilene, Texas
---------- Freese and Nichols, Inc.
Fort Worth, Texas
--------- First Southwest Company
Dallas, Texas
REGISTRATION
Tax Equity and Fiscal Responsibilitv Act of 1982 ("TEFRA") ... TEFRA, as amended, mandates, among
other things, that all municipal bonds excepting those with a one year maturity or less) must be
registered in the owner's name, beginning with 3uly 1, 1983.
PaXing Agent/Registrar ... The Bonds will be issued only in fully registered form in any integral multiple
of $5,000 for any one maturity. Principal of the Bonds will be payable to the registered holder or owner
(the "Holder" or "Owner") at maturity or redemption upon presentation at the principal corporate office of
9 , Texas, the Paying Agent/Registrar. Interest on the Bonds will
be payable by check, dated as of the interest payment date, and mailed by the Paying Agent/Registrar to
registered Holders as shown on the records of the Paying Agent/Registrar on the Record Date (see
"Record Date for Interest Payment" herein).
Successor Paying Agent/Registrar ... Provision is made in the Ordinance for replacement of the Paying
Agent Registrar. The City covenants to maintain and provide a Paying Agent/Registrar at all times while
the Bonds are outstanding and any successor Paying Agent/Registrar shall be a bank, trust company,
financial institution, or other entity (which includes the City of Lubbock, Texas) duly qualified and legally
authorized to serve as and perform the duties and services of Paying Agent/Registrar for the Bonds. Upon
any change in the Paying Agent/Registrar for the Bonds, the City agrees to promptly cause a written
notice thereof to be sent to each registered Owner of the Bonds by United States mail, first class, postage
prepaid, which notice shall also give the address of the new Paying Agent/Registrar.
Future Registration ... The Bonds may be transferred, exchanged and registered only on the registration
books of the Paying Agent/Registrar, and such registration and transfer shall be without expense or
service charge to the Holder, except for any tax or other governmental charges required to be paid with
respect to such registration and transfer. A Bond may be assigned by the execution of an assignment form
on the Bond or by other instrument of transfer and assignment acceptable to the Paying Agent/Registrar.
A new Bond or Bonds will be delivered by the Paying Agent/Registrar, in lieu of the Bond being
transferred or exchanged, at the principal corporate office of the Paying Agent/Registrar, or sent by
United States mail, first class, postage prepaid, to the new registered Holder or his designee. To the
extent possible, new Bonds issued in an exchange or transfer of Bonds will be delivered to the registered
Holder or assignee of the Holder in not more than three business days after the receipt of the Bonds to be
cancelled, and the written instrument of transfer or request for exchange duly executed by the Holder or
his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. New Bonds registered and
delivered in an exchange or transfer shall be in any integral multiple of $5,000 for any one maturity and
for a like aggregate principal amount as the Bond or Bonds surrendered for exchange or transfer.
Record Date for Interest Payment ... The record date ("Record Date") for the interest payable on any
interest payment date means the last business day of the preceding month.
In the event of a non-payment of interest on a scheduled payment date, and for 30 days thereafter, a new
record date for such interest payment (a "Special Record Date") will be established by the Paying
Agent/Registrar, if and when funds for the payment of such interest have been received from the City.
Notice of the Special Record Date and of the scheduled payment date of the past due interest (the
"Special Payment Date" which shall be 15 days after the Special Record Date) shall be sent at least five
business days prior to the Special Record Date by United States mail, first class, postage prepaid, to the
address of each Holder of a Bond appearing on the books of the Paying Agent/Registrar at the close of
business on the last business day next preceding the date of mailing of such notice.
Limitation on Transfer of Bonds Called for Redemption ... Neither the City or the Paying Agent/Regis-
trar shall be required to issue or transfer to an assignee of the Holder of the Bonds any Bond called for
redemption, in whole or in part, within 45 days of the date fixed for redemption; provided, however, such
limitation of transfer shall not be applicable to an exchange by the Bond Holder of the unredeemed
balance of a Bond called in part for redemption.
-4-
INTRODUCTORY STATEMENT `
This Official Statement of the City of Lubbock, Texas, a political subdivision located in Lubbock County
(the "City"), is provided to furnish information in connection with the sale of the City's $10,000,000
Electric Light and Power System Revenue Bonds, Series 1984 (the "Bonds").
The Official Statement was prepared to present for the purchaser of the Bonds information concerning the
Bonds, the revenues pledged to 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".
Source of Payment ... The Bonds are and shall be payable as to principal and interest solely from the net
revenues derived from the operation of the City's Electric Light and Power System, including all
additions, extensions and improvements thereto which may hereafter be made, after deduction of the
reasonable expenses of maintenance and operation of the System. See "Security for Payment".
Purpose ... Proceeds from the sale of the Bonds will be used for improvements to the transmission and
distribution facilities of the Electric Light and Power System. See "Proceeds of the Bonds".
Future Bond Issues ... The City does not have any additional authorized but unissued Electric Light and
Power System Revenue Bonds, and has no plans to issue additional bonds.
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 supervisory functions are the
responsibility of and vested in 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 -large, majority vote required, for each position. '
On January 20, 1983, in Civil Action No. CA -5-76-34, Rev. Roy Jones, et at., City of Lubbock, Texas, t
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. Commencing 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 commencing
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 commencing April,
1984.
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.
S. 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 quorom for transacting business and the resolution of a
tie -vote.
5
6. The members of the City Council shall elect a mayor pro tem 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 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 Courts opinion this plan substantially
complies with the one man -one vote requirement.
The City appealed the Final Judgment to the United States Court of Appeals for the Fifth Circuit. The
Final Judgment orders that City elections commencing in April, 1984, be held in accordance with the
provisions of that Judgment. In addition, the terms of office of three elected members of the City
Council - Alan Henry, Mayor; Joan Baker, Councilwoman; and E. Jack Brown, Councilman, all elected
at -large - expire in April, 1984. Under the Texas Election Code, the uniform date for City Council
elections is Saturday, April 7, 1984. The City Council is prepared to act as follows:
1. If the United States Court of Appeals for the Fifth Circuit does not rule on the City's appeal, the
City Council will call an election for April 7, 1984, in accordance with the Final Judgment; however,
the City reserves the right to seek a stay in execution of the Final Judgment before calling an
election for April 7, 1984, and if such a stay is sought and granted, the City Council will call an
election for the offices of Mayor and two Councilmen on an at -large basis.
2. If the United States Court of Appeals for the Fifth Circuit affirms the Final Judgment prior to
April 7, 1984, the City Council will call an election for April 7, 1984, in accordance with the Final
Judgment but will reserve the right to appeal the decision of the Court of Appeals, and will reserve
the right to seek a stay pending application for Writ of Certiorari to the United States Supreme
Court.
3. If the United States Court of Appeals for the Fifth Circuit reverses the Final Judgment of the
District Court before April 7, 1984, the City Council will call an election for April 7, 1984, in
compliance with the Home Rule Charter of the City of Lubbock, at which the Mayor and two
members of the City Council will be elected at -large.
WEST TEXAS MUNICIPAL POWER AGENCY ("Agency")
The Cities of Lubbock, Brownfield, Crosbyton, Floydada, Plains and Tulia, Texas, by passage of
Concurrent Ordinances in December, 1983, created the Agency under the provisions of Section 4a and 4b
of Article 1435 a, Revised Civil Statutes of Texas 1925, as amended, as a joint power agency, a separate
municipal corporation, a political subdivision of the State of Texas and a body politic and corporate with
the powers provided in Section 4a and 4b, Article 1435a, Article 1435b and other laws. The Agency has no
taxing power.
Each of the above Cities owns and operates a municipal electric light and power system, and all are
located within a 75 -mile radius of Lubbock.
On January 24, 1984, in Lubbock, the Board of Directors of the Agency, two from each City, organized,
elected officers, adopted Rules and Regulations and took various other actions.
The purpose of the "Agency" is to engage in the generation, transmission, sale and exchange of electric
energy to the creating Cities and to private entities who are joint owners with the Agency of an electric
generating facilities.
The Agency has no plans to issue Revenue Bonds, but intends to eventually initiate studies and planning
relating to the electric energy requirements of the Agency's Member Cities.
-6-
SECURITY FOR PAYMENT
These Bonds will constitute special obligations of the City, each payable as to both principal and interest
and equally secured by a first lien on and pledge of the revenues of the Electric Light and Power System
(the "System"), after deduction of reasonable expenses of operation and maintenance, as provided by the
General Laws of the State of Texas, particularly Articles 1111 et seq., V.A.T.C.S.
ELECTRIC LIGHT AND POWER SYSTEM
OPERATING STATEMENT FOR PAST FIVE FISCAL YEARS
Fiscal Year Ended 9-30-83 9-30-82 9-31-81 9-31-80 9-30-79
INCOME
Operating Revenues
Charges for Services $45,143,848 $39,890,883 $34,002,728 $29,159,864 $23,619,718
Non -Operating Income 1 8' 1,91 1 798,,852 690.389 731,676 826,10.
TOTAL INCOME $46,961,919
919 41 689 733 534,693,116 529,891,540 524,445,824
OPERATING EXPENSE (1)
Personal Services $ 3,617,835 $ 3,454,699 $ 3,059,580 $ 2,727,037 $ 2,432,968
Power Plant Fuel 24,926,910 23,635,233 25,084,135 20,538,347 16,324,626(2)
Purchased Power 6,252,009 4,149,909 0 0 0
Other Supplies 417,785 451,267 393,860 226,319 0
Maintenance 469,929 442,755 657,310 299,462 347,183
Other Charges 1 4, 84197 1,199,961 1 1 98942 1.079.696 851 972,02
TOTAL OPERATING EXPENSE 37 168, 335332 665 533,332.924 30, 393, 24
827 24 870 8851512020 077 479479
NET INCOME AVAILABLE FOR
DEBT SERVICE $ 9,793,254 .$ 8,356,911 $ 4,299,289 5 020 689 $ k,368,345
Electric Connections 37,083 34,610 33,370 32,051 30,390
t
(1) Exclusive of depreciation.
(2) Includes power plant fuel and other supplies.
Net Income, Fiscal Year Ended 9-30-83 --------------------------------------------- $ 9,793,254
Average Annual Principal and Interest Requirements, 1985/2004 (including the Bonds) ----- $ 2,590,033
Coverage by Net Income, Fiscal Year Ending 9-30-83 --------------------------------- 3.78 Times
Maximum Principal and Interest Requirements, 1985 ---------------------------------- $ 4,640,497
Coverage by Net Income, Fiscal Year Ended 9-30-83 ---------------------------------- 2.11 Times
Electric Light and Power System Revenue Bonds to be Outstanding After
Issuance of these Bonds---------------------------------------------------------- $32,215,000
Interest and Sinking Fund, 2-1-84 --------------------------------------------------- $ 2,151,607
Reserve Fund, 2-1-84*------------------------------------------------------------ $ 1,908,721
* The reserve is presently being increased to $2,007,000 by deposit of monthly installments of $6,367. In
the Ordinance authorizing issuance of the Bonds, the City will convenant to increase the Reserve Fund to
the new Average Annual Principal and Interest Requirements (estimated at $2,590,033) by equal monthly
deposits over a 60 month period to be calculated as the difference between the Reserve Fund balance on
4-1-84 and the Average Annual Principal and Interest Requirements divided by 60; first deposit to be
made on or before 5-1-84.
AUTHORIZED REVENUE BONDS
After the issuance of the $10,000,000 Bonds, the City has no additional authorized but unissued Electric
Light and Power System Revenue Bonds.
-7-
80
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I A
LUBBOCK POWER,& LIGHT
SYSTEM REVENUE AND OPERATING EXPENSE
0
1979 80 81 82 83 84 85 86 1987
FISCAL YEAR ENDING SEPTEMBER 30th
®Other Supplies ®Other 0 Personal ® Purchased ® Power Plant m Net
E Maintenance Charges ((((Q Service Power Fuel Revenue
SOURCE 1 CITY Of LUBBOCK , TEXAS
-8-
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-10-
- i6
LUBBOCK POWER AND LIGHT
Lubbock Power and Light was established in 19A`, -'and fi 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 ("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 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 in 1982. The company pays the City a
franchise tax of 2% of its gross receipts which is deposited into the City's General Fund. At present,
Southwestern Public Service supplies power to approximately 50% of the customers in Lubbock.
Lubbock Power and Light generates part of its power requirements through 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 kilovolt (kV) transmission loop system.
In December, 1981, the City commenced buying 10 megawatts 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 222,500 kilowatts
MW). 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 consist of the
following:
Generator
Since the completion of the interconnection with Southwestern Public Service, Station No. 2 has been kept
on standby and is used for peak and emergency power purposes only.
Transmission and Distribution ... A 69,000 volt (69 kV) transmission loop system, 41.55 miles in length,
provides bulk power to six 69,000/12470 bulk substations with a combined base capacity of 201 megavolt
amps (MVA). A seventh bulk substation with a base capacity of 30 MVA is expected to be completed in
February, 1984. A second 69 kV transmission loop system insulated for operation at 115 kV is under
construction. As of January, 1984, 13.94 miles of 115 kV insulated transmission line have been
constructed with an additional 8.41 miles expected to be completed in February, 1984. 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
136 miles of underground distribution lines. There are twelve 12,470/4160 volt substations in the
distribution system. Net system load for Fiscal Year Ending September 30, 1983 was 710,668,170 kilowatt
hours (kWh) with a peak demand of 158,500 kW.
Proceeds ... Proceeds of the $10,000,000 Bonds will be used as follows:
Transmission System
(1) Construct a second 230 kV intertie with Southwestern Public Service in the vicinity of its
interchange on West 4th Street in Lubbock.
kit 17
Year
Capacity
Manufacturer
Installed
Station
Prime Mover
Fuel
in kW
Nordberg
1946
2
Diesel
Dual Fuel
2,500
Nordberg
1947
2
Diesel
Dual Fuel
2,500
Westinghouse
1952
2
Steam Turbine
Gas or Oil
11,500
Westinghouse
1953
2
Steam Turbine
Gas or Oil
11,500
Westinghouse
1957•
2
Steam Turbine
Gas or Oil
22,000
Westinghouse
1958
2
Steam Turbine
Gas or Oil
22,000
Westinghouse
1964
Holly
Gas Turbine
Gas or Oil
12,500
General Electric
1965
Holly
Steam Turbine
Gas or Oil
44,000
Worthington
1971
Holly
Gas Turbine
Gas or Oil
18,000
General Electric
1974
Holly
Gas Turbine
Gas or Oil
22,000
General Electric
1978
Holly
Steam Turbine
Gas or Oil
54 000
221,
500
The 1957 Westinghouse unit is under repair and is
not presently available for service.
Since the completion of the interconnection with Southwestern Public Service, Station No. 2 has been kept
on standby and is used for peak and emergency power purposes only.
Transmission and Distribution ... A 69,000 volt (69 kV) transmission loop system, 41.55 miles in length,
provides bulk power to six 69,000/12470 bulk substations with a combined base capacity of 201 megavolt
amps (MVA). A seventh bulk substation with a base capacity of 30 MVA is expected to be completed in
February, 1984. A second 69 kV transmission loop system insulated for operation at 115 kV is under
construction. As of January, 1984, 13.94 miles of 115 kV insulated transmission line have been
constructed with an additional 8.41 miles expected to be completed in February, 1984. 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
136 miles of underground distribution lines. There are twelve 12,470/4160 volt substations in the
distribution system. Net system load for Fiscal Year Ending September 30, 1983 was 710,668,170 kilowatt
hours (kWh) with a peak demand of 158,500 kW.
Proceeds ... Proceeds of the $10,000,000 Bonds will be used as follows:
Transmission System
(1) Construct a second 230 kV intertie with Southwestern Public Service in the vicinity of its
interchange on West 4th Street in Lubbock.
kit 17
(2) Construct a distribution substation (two 15/20/25 MVA -115/69/12.5 kV transformers) within the
area provided for the above west intertie.
(3) Add capacitors and capacitor switches to improve System power factor.
(4) Replace the existing 4/0 ACSR transmission line from Holly Plant to Ave P with a double circuit.
The first circuit would be designed for 477 MCM ACSR at 69 W. The second circuit would be designed
for 795 MCM ACSR at 115kV. The second circuit is in accordance with Lubbock Power and Light's
plans for a 115 kV outer loop.
(5) Reconductor the existing 4/0 ACSR 69 kV line between Chalker Substation and Vicksburg
Substation. This line would be reconductored to 477 MCM ACSR at 69 W.
Estimated Cost, Transmission System Improvements
Distribution System
$ 6,010,000
Extensions of and improvements to the existing distribution system including additional distribution
circuits for substations, extension from existing line terminals to new areas of service, transformers,
meter pedestals, poles and crossarms, regulators, meters, service lines and other appurtenances.
Estimated Cost, Distribution System Improvements
Total
3,990,000
10 000 000
Interconnection ... An interconnection with Southwestern Public Service has been completed and the
City commenced 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 Supply ... Present primary fuel supply for Lubbock's generating system is natural gas which is
supplied by a subsidiary 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, 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 substantially 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 Pioneer Corporation.
In addition, the City is presently negotiating with other natural gas suppliers to determine if a more
economical, long-term source and supply of natural gas is available.
Carbon Dioxide Recover... The Carbon -Dioxide Technology Corporation, Houston, Texas, has con-
structed 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. 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 Gas Marketing, Inc.
The City entered into a contract with Gas Marketing, Inc. a subsidiary of Pioneer Corporation, Amarillo,
Texas, dated November 21, 1983, for a gas supply for the Holly Generating Plant. The contract provides,
among other things:
WF4m
(1) Volume - Gas Marketing agrees to deliver to the City up to a maximum of 30,000 MCF/day; the
minimum "take -or -pay" volume the City must accept, is 4,000,000 MCF annually.
(2) Cost - The City shall pay Gas Marketing three dollars and fifty cents ($3.50) per MCF for the months
January through June and three dollars and fifty-eight cents ($3.58) for the months July through
December.
(3) Term of Contract - The current agreement was effective January 1, 1984, and remains in full force
and effect to D-e-c-e—m"ber 31, 1984. Discussions on the extension of the term shall begin on or before
August 1, 1984.
Fuel Supply Contract with a 3oint Venture
The City has entered into a contract with Power Line, Inc. and Esperanza Gas Company, who formed a
joint venture to supply gas to the City.
(1) Volume - The minimum "take -or -pay" volume varies as follows:
In 1984, the minimum is 3,000,000 MCF. In 1985, the minimum is 4,250,000 MCF; in the years 1986,
1987, and 1988, the minimum is 4,250,000 MCF. In addition, the City will have the option during any
-of the above years, with 60 days notice, to take an additional 4,250,000 MCF if available.
(2) Cost - The City shall pay the joint venture three dollars and thirty-five cents ($3.35) per MCF from
the time of initial delivery through December 31, 1985. On January 1, 1986, the above base price shall be
adjusted by a percentage increase or decrease in the posted price of low sulphur No. 2 fuel oil as published
in Platt's Oilgram. On April 1, 1987, and each calendar quarter thereafter, the base price shall be
adjusted by a Percentage increase or decrease in the posted price of low sulphur No. 2 fuel oil as published
in Platt's Oilgram.
(3) Term of Contract - The term of the agreement is five (5) years commencing with the initial delivery
hereunder. The term of the agreement will continue from year to year thereafter with a required one
hundred and eighty (180) day cancellation notice.
(4) Gas Price Adjustment - When the joint venture has received a net income equal to one hundred and
fifty percent 150% of the projects required pipeline construction costs, then the City will receive a gas
price adjustment equal to twenty five percent (25%) of the joint venture's net income.
All fuel cost purchases are an operating expense of the System.
Note: Copies of the Gas Sales Agreements may be obtained upon request from Mr. 3. Robert Massengale,
Director of Finance, City of Lubbock, P.O. Box 2000, Lubbock, Texas 79457. Telephone number is (806)
762-6411.
ELECTRIC RATES
The City Council sets electric rates for both Lubbock Power and Light and Southwestern Public Service.
Rates are the same for both systems. The present rates went into effect on December 1, 1983, and are
set forth below.
Rates for Service Furnished in Cit ... Rates to be charged for electric service furnished within the City
shall in accordance with orders or resolutions of the City Council establishing such rates for all persons
engaged in furnishing such electric power service to the public including electric power furnished by the
City's electric power company. Said orders and resolutions establishing rates shall be kept available for
public inspection.
Fuel Cost Recovery
The charge per kilowatt hour shall be increased by a fuel factor per kilowatt hour as provided in current
Southwestern Public Service Tariff 7100 (Public Utility Commission of Texas sheet IV -69).
The fuel factor will remain constant for approximately one year. At this time the fuel factor is
$0.030824/kWh.
- 13-
Tax Adjustment
Billings under these schedules may be increased by an amount equal to the sum of the taxes payable under
federal, state and local sales tax acts, and of all additional taxes, fees, or charges (exclusive of ad
valorem, state and federal income taxes), payable by the utility and levied or assessed by any
governmental authority on the public utility services rendered, or on the right or privilege of rendering
the service, or on any object or event incidental to the rendition of service, as the result of any new or
amended laws after August 31, 1981.
Residential Service
Applicable: To residential customers for electric service used for domestic purposes in private residences
and separately metered individual apartments. Single phase motors not to exceed 10 horsepower,
individual capacity, may be served under this rate.
Territory: Lubbock, Texas.
Terms of Payment: 2% discount deducted from all residential bills if paid within 15 days after mailing
date. 5% added to bill after 30 days.
Rate: Service Availability Charge: $5.80 per month, which includes 30 kWh per month; all kWh used per
month in excess of 30 kWh @ 3.990 per kWh
Electric Living Service
Water Heating - When customer has in regular use a permanently installed 240 volt, 30 gallon or greater,
storage type water heater of not greater than 5.5 kilowatts, individual rated capacity, the first 500 kWh
will be billed at the regular rate, the next 500 kWh at 1.67 per kWh, and all additional kWh at the regular
rate.
All -Electric Space Heating - When customer has in regular use permanently installed space heating
equipment of an aggregate rated capacity of 3 kilowatts or more, excluding bathroom heaters, billing
during the winter months will be the first 500 kWh at the regular rate, and all additional kWh at .880 per
kWh. When customer has water heating in combination with all -electric space heating, the first 500 kWh
will be billed at the regular rate, the next 500 kWh at 1.670 per kWh and all additional kWh at .880 per
kWh.
Add -0n Heat Pump - When customer has in regular use a permanently installed heat pump used as the
primary heat source for the entire residence in conjunction with a gas or oil fired furnace for extreme
cold weather back-up, billing during the winter months will be the first 600 kWh at the regular rate and
all additional kWh at .880 per kWh. When customer has water heating in combination with the add on heat
pump, the first 600 kWh will be billed at the regular rate, the next 500 kWh at 1.670 per kWh and all
additional kWh at .880 per kWh.
For heat pump installation, the rated capacity shall be determined by adding the rated capacity of the
heat pump (l ton per kilowatt) and 1/2 of the rated capacity of any auxiliary heating elements used in
conjunction with the heat pump.
The rated capacity of space heating equipment may be measured by Lubbock Power and Light.
Winter Months: The billing months of November to May, inclusive.
Fuel Cost Recovery: As above provided.
Tax Adjustment: As above provided.
Averaged Biilin Plan: Upon request, any customer whose average monthly bill is $25.00 or more, may be
billed monthly, Dase0 upon his average bill (estimated if applicable), plus a portion of any unbilled balance.
All -electric home customers will be billed hereunder, unless regular billing is requested. Customers
having delinquent or disputed bills are not eligible for billing under this plan.
Character of Service: A -C; 60 hertz; single phase 120/240 volts; where available on secondary, three
phase 240 volts.
-14-
't. 2a
General Service
Applicable: To all commercial and industrial electric service where facilities of adequate capacity and
suitable voltage are adjacent to the premises to be served. Water heating and space heating service will
be furnished in conjunction with the standard Heating Rider.
Not applicable to temporary, breakdown, standby, supplementary, or to service for which a specific rate
schedule is provided.
Territory: Lubbock, Texas.
Rate:
Service availability charge
$12.00 per month
First 1,000 kWh per month
@ 5.64C per kWh*
Next 6,000 kWh per month
@ 2.50t per kWh
Next 6,000 kWh per month
@ 1.2% per kWh
All additional kWh per month
@ .53C per kWh
* Add to the 5.640 block 145 kWh for every kW of demand
in excess of 10 kW.
Terms of Payment: Net in 30 days after mailing date; 5% added to bill after 30 days.
Demand: The company will furnish at its expense the necessary metering equipment to measure the
customer's kW demand for the 30 -minute period of greatest use during the month.
Fuel Cost Recovery: As above provided.
Tax Adjustment: As above provided.
Character of Service: A -C; 60 hertz; single or three phase.
Minimum Charge: $12.00 per month for demands of 10 kW or less, plus $3.00 per kW for next 15 kW above
10 W, plus $2.10 per kW for all additional kW. No demand shall be taken as less than 50% of highest
demand established in 12 months ending with current month.
Heating Rider
Applicable: To customers taking service under the Company's General Service, Public and Parochial
School Service or Municipal Lighting and Power Service rates.
Territory: Lubbock, Texas.
Water Heating Service: When customer has in regular use one or morepermanently installed 30 gallons or
greater storage type water heaters of not greater than 5.5 kilowatts, individual rated capacity, the first
200 kWh per water heater will be billed at the regular rate, the next 300 kWh per water heater will be
billed at 1.67 per kWh, and all additional kWh at the regular rate.
When customer has in regular use one or more approved, permanently installed storage type water heaters
of greater than 5.5 kilowatts, individual rated capacity, the first 200 kWh for each 5 kilowatts of rated
capacity will be billed at the regular rate, the next 300 kWh for each 5 kilowatts of rated capacity will be
billed at 1.67 per kWh, and all additional kWh at the regular rate.
The demand for billing purposes will be the measured kW demand less 75% of the rated capacity of the
first water heater and 50% of the rated capacity of all additional water heaters, but not less than 75% of
the measured kW demand.
Flow-through water heaters and other high wattage water heating devices will be billed at the regular
rate.
All -Electric Space Heating Service: When customer has in regular use permanently installed space
eating equipment, including hot water systems, of an aggregate rated capacity of 5 kilowatts or more,
billing during the winter months under the regular rate will not exceed the average kW demand and kWh
consumption established during the first preceding billing months of May and October. Additional demand
will not be billed. Additional kWh used per month will be billed at .84 per kWh.
Add -On Heat Pump Service: When customer has in regular use a permanently installed heat pump used as
the primary source for the entire building in conjunction with a gas or oil fired furnace for extreme
cold weather back-up, billing during the winter months under the regular rate will not exceed the average
-15-
�' 21
a.
n�
kW billing demand and kWh consumption established during the first preceding billing months of May and
October. Additional demand will not be billed. Additional kWh used per month will be billed at .84 per
kWh.
Winter Months: The billing months of November through April.
Fuel Cost Recovery: Same as applicable rate schedule.
Tax Adjustment: Same as applicable rate schedule.
Terms of Payments: Same as applicable rate schedule.
Character of Service: A -C; 60 hertz; at one available standard voltage of 240 volts or greater.
Municipal Lighting and Power Service
Applicable: To municipal general lighting and power service except for street lighting service.
Rate: All kWh used per month @ 3.4C per kWh.
Fuel Cost Adjustment: As above provided.
Effective Date: December 1, 1983.
Irrigation Power Service
Applicable: Under contract, to irrigation power customers when the connected motor load is not less than
S h.p.
Territory: Lubbock, Texas
Rate: All kWh used per month @ 4.66G per kWh.
Terms of Payment: Net in 30 days after mailing date; 5% added to bill after 30 days.
Fuel Cost Recovery: As above provided.
Tax Adjustment: As above provided.
Character of Service: A -C; 60 hertz; three phase; at one available standard voltage.
Term of Contract: One year or longer.
Minimum Charge: $21.75 per connected h.p. per season (name -plate rating), excluding fuel cost recovery
revenue.
Public and Parochial School Service
Applicable: To public and separately metered parochial schools for lighting and power service. All
metering locations for each customer shall be combined for billing purposes.
Territory Lubbock, Texas
Rate:
First 10,000 kWh used per month @ 4.47 per kWh
Next 20,000 kWh used per month @ 4.020 per kWh
Next 30,000 kWh used per month @ 3.72G per kWh'
Additional kWh used per month @ 3.3% per kWh
Fuel Cost Recovery: As above provided.
Large General Service '
Applicable: To all commercial and industrial electric service supplied where facilities of adequate
capacity and suitable voltage are adjacent to the premises to be served. Not applicable to temporary,
breakdown, standby, or supprementary service.
-16-
t �
6-
tE�. . 22
Territory: Lubbock, Texas.
Rate:
Demand Charge:
$1,343.00 for the first 200 kW, or less of demand per month
$ 7.40 per kW for all additional kW of demand per month
Energy Charge: .5% per kWh for the first 230 kWh used per month per kW of demand, or the first
120,000 kWh used per month, whichever is greater
.39� per kWh for the next 230 kWh used per month per kW of demand
.31� per kWh for all additional kWh used per month
Terms of Payment: Net in 30 days after mailing date; 5% added to bill after 30 days.
Determination of Demand: The kW determined from Lubbock Power and Light's demand meter for the 30 -
minute period of customer's greatest kW use during the month, but not less than 60% of the highest
demand established in the preceding eleven months.
Power Factor Adjustment: Bills computed under the above rate will be increased $0.23 for each kvar by
which the reactive demand exceeds, numerically, 0.53 times the measured kW demand, and will be
reduced $0.25 for each kvar by which the reactive demand is less than, numerically, 0.40 times the
measured kW demand.
Primary Service Discount: A discount of 3% of the demand charges, energy charges (excluding all fuel
cost recovery amounts , and power factor adjustment charges will be allowed when service is supplied at a
line voltage of 12 kV, or greater, and no transformation is made by Lubbock Power and Light at the
customer's location.
Fuel Cost Recovery: As above provided.
Tax Adjustment: As above provided.
Character of Service: A -C; 60 hertz.
Contract Period: A period of not less than one year.
Minimum Charge: The Demand Charge.
Electric Heating Service
Applicable: To residential and commercial customers for water heating and/or space heating service,
Including resistance heating, radiant heating and heat pumps, when all heating service is supplied through
one kilowatt hour meter, which must be separate from the meter which measures the energy.
Territory: Lubbock, Texas.
Tariff Number: 1.4.
Water Heating Rate: All kWh used per month @ 1.67C per kWh.
Tariff Number: 1.5.
Space Heating Rate: Winter months: all kWh used per month @ .88t per kWh, except that the first 500
kWh used per month through the heating meter will be billed @ 1.67C per kWh when customer has an
electric water heater installed and in use.
Summer months: all usage each month shall be combined and billed under the applicable residential or
commercial rate.
Fuel Cost Recovery: As above provided.
Winter Months: The billing months of November through April.
Summer Months: The billing months of May through October.
-17-
23
Terms of Payments: Residential - 2% discount will be deducted from bills if paid within 15 days of
mailing date; a 5% penalty will be added to bills after 30 days. Commercial - net in 30 days after mailing
date; a 5% penalty will be added after 30 days.
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. To be eligible for the .88� 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 5 kilowatts.
Character of Service: The voltage and characteristics of equipment applied shall meet requirements of
the supplying utility.
Street Lighting Service
Applicable : To municipal street lighting service.
Rate: All kWh used per month @ 2.ft per kWh.
Fuel Cost Adjustment: As above provided.
Oil Well Pumping Service
Applicable: Under contract, to power customers for oil well pumping, including incidental lighting and
small power loads required by customer in lease operation.
All locations in one field are to be combined and billed together.
Territory Lubbock, Texas.
Rate: Service Availability Charge: $10.00 per meter per month; 2.38 per kWh for all kWh used per
month.
Terms of Payment: Net in 30 days after mailing date; 5% added to bill after 30 days.
Fuel Cost Recovery: As above provided.
Tax Adjustment: As above provided.
Character of Service: A -C; 60 hertz; three phase; at Lubbock Power and Light's available primary
voltage.
Power Factor: The customer agrees to maintain an average power factor of at least M.
Terms of Contract: One year, or longer.
Minimum Charge:
$20 per month on each meter for secondary voltage metering.
$50 per month on each meter for primary voltage metering.
industrial Feed Mill and Elevator Service
Applicable: Under contract, to all electric energy used for the operation of industrial feed mills and grain
elevators. All industrial feed mill and elevator customers are to be served under this rate schedule,
except that customers having a measured demand of 200 kW, or greater, may be served under the large
general service rate.
Not applicable to temporary, breakdown, standby, or supplementary service.
Territory: Lubbock, Texas.
-18-
24
Rate: Service Availability Charge - $16.00 per month.
First 1,000 kWh used per month
@ 3.394: per kWh*
Next 6,000 kWh used per month
@ 3.274 per kWh
Next 11,000 kWh used per month
@ 2.324 per kWh
All additional kWh used per month
@ 1.274 per kWh
* Add to the 3.394 block, 143 kWh for each kW of demand in excess of 10 kW.
Terms of Payment: Net in 30 days after mailing date; 3% added to bill after 30 days.
Demand: The kW demand from the Company's demand meter for the 30 -minute period of customer's
greatest use during the month.
Fuel Cost Recovery: As above provided.
Tax Adjustment: As above provided.
Character of Service: A -C; 60 hertz; single or three phase.
Minimum Charge: $16.00 for the first 10 kW, or less, plus $3.30 per kW for next 13 kW, above 10 kW, plus
2.10 per kW for all additional kW of highest demand established in twelve months ending with current
month.
Term of Contract: A period of not less than one year.
Cotton Gin Service
Applicable: Under contract, to all electric energy used for the operation of cotton gins and de -linters,
whether partially or completely electrified. Cotton gins are not to be served under any rate schedule not
specifically designated for such service.
r
Not applicable to temporary, breakdown, standby, or supplementary service. ,
Territory: Lubbock, Texas.
Rate: Service Availability Charge - $21.23 per month.
First 1,000 kWh used per month @ 7.6% per kWh*
All.additional kWh used per month @ 2.844 per kWh
* Add to the 7.634 block, 120 kWh for each kW of demand in excess of 10 kW.
Terms of Payment: Net in 30 days after mailing date; 3% added to bill after 30 days.
Demand: The kW demand for Lubbock Power and Light's demand meter for the 30 minute period of
customers greatest use during the month.
Fuel Cost Recovery: As above provided.
Tax Adjustment: As above provided.
Character of Service: A -C; 60 hertz; single or three phase.
Term of Contract: A period of not less than one year.
Minimum Charge: $21.00 per year per kW of demand established during the contract year, but not less
than $262.50.
Guard Light Service
Applicable: Under contract to all night outdoor lighting service where facilities of adequate capacity and
suitable voltage are adjacent to the premises to be served.
Territory: Lubbock, Texas.
W&M
w1, 25
Rate: Each 7,000 lumen mercury vapor, woe pole, overhead bracket type light for $6.71 per month.
h may
shed
One span of secondarya line not
one span of secondary130 feet lline per light will belfurnishede byhthe Company,
ve rate.
Service requiring
provided the customer pays a rental charge of $2.00 per month for each additional span not exceeding 15
feet in length.
Terms of Payment: Net in 30 days after mailing date; 5% added to bill after 30 days.
Fuel Cost Recovery: As above provided.
Tax Adjustment: As above provided. r and
g and maintain on the
Conditions of Service:
uiredPowe
number of Light7,000 lumen, �s175 watt tructt nmerrcuryevapor overhead lights,
customer's prem►se ,
q.
mounted on Lubbock Power and Light's service pole, a separate 30 foot pole, or installed on any suitable
ving a secondary line span not exceeding 150 feet in
mounting device belonging to the customer and ha
length. Lights will not be installed on any mounting device which, in the opinion of Lubbock Power and
Light, is unsafe or not suitable for this purpose.
Character of Service: A -C; 60 hertz; single phase; 120 volts.
Super Guard Light Service
Applicable: Under contract for night outdoor lighting service where facilities of adequate capacity and
suitable voltage are adjacent to the premises to be served.
Territor : Lubbock, Texas.
Rate: Each 15,000 lumen high pressure sodium, wood pole, overhead bracket type light for $8.21 per
month.
one span of secondary line not exceeding 150 feet in length may be furnished under the above rate.
Service requiring more than one span of secondary line per light will be furnished by Lubbock Power and
Light, provided the customer pays a rental charge of $2.00 per month for each additional span not
exceeding 150 feet in length.
Terms of Payment: Net in 30 days after mailing date; 5% added to bill after 30 days.
Fuel Cost Recovery: 15,000 lumen lamp HPS use 56 kWh per month. As above provided.
Tax Adjustment: As above provided.
Conditions of Service: Lubbock Power and Light will own, operate, and maintain on the customer's
premises, the required number of 15,000 lumen, 150 watt, high pressure sodium overhead lights, mounted
on a metal bracket, photo -electrically controlled, installed on Lubbock Power and Light's service pole, a
separate 30 foot pole, or installed on any suitable mounting device belonging to the customer, and having
a secondary line span not exceeding 150 feet in length. Lights will not be installed on any mounting
device which, in the opinion of the Company, is unsafe or not suitable for this purpose.
Character of Service. A -C; 60 hertz; single phase; 120 volts.
Billin s
Customers of Lubbock's Electric Department and Water Department are billed simultaneously on one
statement. Garbage and sewer charges are also included. A 2% discount is given to residential electric
customers who pay their bill within 15 days of the date it is mailed to them. All water and electric
customers who do not pay their water and electricity bill within 30 days of the date it is mailed to them
are charged a 5% late payment penalty. If the bill has not been paid on the next billing date, a statement
is mailed showing the past due bill together with the current bill. if the bill remains delinquent 15 days
after the date of the second statement, a cut-off notice is mailed. The cut-off notice specifies that
service will be discontinued in 5 days if payment in full is not made. At the end of the 5 -day pe
riod, 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.
-20-
6
COMPARISON OF SELECTED PRESENT AND PREVIOUS RATES
Residential
Present (Effective 12-1-83) Previous (Effective 8-1-80)
Service Availability Charge: $5.90 per month, Service AvailabilityCharge: $5.10 per month,
which includes 30 kWh per month (Minimum) which includes 30 kWh per month (Minimum)
All kWh per month in excess of 30 kWh @
3.990 per kWh
Plus: Fuel Cost Recovery
All kWh per month in excess of 30 kWh @
2.620 per kWh
Plus: Fuel Cost Recovery
General Service (Formerly Commercial)
Present (Effective 12-1-83)
Service Availability Charge: $12.00 per month
First 1,000 kWh per month 5.640 per kWh*
Next 6,000 kWh per month 2.500 per kWh
Next 6,000 kWh per month 1.230 per kWh
All additional kWh per month 0.530 per kWh
* Add to the 5.640 block 145 kWh for every kW
of demand in excess of 10 kWs.
Demand: Measured as the cusomer's kW de-
mand for the 30 -minute period of greatest use
during the month.
Plus: Fuel Cost Recovery.
Previous (Effective 8-1-80)
Service Availability Charge:
$10.00 per month
First 1,000 kWh per month
3.700 per kWh
Next 4,000 kWh per month
2.910 per kWh
Next 15,000 kWh per month
2.010 per kWh
Additional kWh per month
1.210 per kWh
Plus: Fuel Cost Recovery.
Minimum Charge: $12.00 per month for de- Minimum Charge: $10.00 per month.
mand of 10 kW or less, plus $3.00 per kW for
next 15 kW above 10 kW, plus $2.10 per kW for
all additional kW. No demand shall be taken as
less than 50% of highest demand established in
12 months ending with current month.
COMPARISON OF SELECTED CUSTOMER USAGE AND BILLINGS
Monthly
Billing
OICT
New
kWh Rate*
Rate**
Residential Customer 700 52.79
54.11
Commercial Customer 13,500 915.46
880.73***
+► Fuel Cost Adjustment for April, 1983, included.
** Present rates effective December 1, 1983. Fuel Cost Recovery of $0.030824 per kWh included.
*** Present rates are demand rates, previous rates , were based on energy consumption only. 36 kW
demand assumed for this comparison.
LUBBOCK POWER AND LIGHT
(12 Month Period Ending 12-31-83)
Ten Largest Customers
(Annual Consumption and Revenue)
Customers
kWh Billed
Dollars Billed
Texas Tech University
3,495,937
4,837,012.62
City of Lubbock
72,534,867
4,650,310.21
Plains Co-op Oil Mill
33,196,657
1,858,873.33
Lubbock independent School District
20,308,494
1,212,001.31
Lubbock Cotton Oil Mill
5,023,176
319,903.34
Furrs Warehouse
6,646,226
386,595.27
Caprock Shopping Center
5,732,950
345,297.67
Texas Commerce Bank, N.A.
4,821,170
285,110.48
Town do Country Shopping Center
4,365,000
249,720.34
Court Place Office Building
2,495,093
148,312.05
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-22-
Y Y
LUBBOCK POWER & LIGHT
SYSTEM ENERGY REQUIREMENTS
1979 80' 81 - .82 83 84 85 • 86 1987
FISCAL YEAR ENDING SEPTEMBER 301h
SOURCE i CITY OF LUBBOCK , TEXAS
!W#m
29
360
340
320
300
280
260
3 240
220
200
180
160
140
120
100
1979
LUBBOCK POWER & LIGHT
sttrtu DEMAND AND arAan
80 81 82 83 84 85 86 1987
SOURCE i CITY OF LUBBOCK , TEXAS
-24-
30
SELECTED PROVISIONS OF THE ORDINANCE
The City Council will adopt a Bond Ordinance (the "Ordinance") authorizing the Bonds, which will be in
substantially the same form as the Ordinance authorizing the outstanding Bonds, pertinent provisions of
which are shown below:
"SECTION 9: Definitions. That for all purposes of this ordinance and in particular for clarity with
respect to the issuance of the Bonds herein authorized and the pledge and appropriation of revenues
therefor, the following definitions are provided:
(a) The term "Additional Bonds" shall mean the additional parity obligations the City reserves the right
to issue in accordance with the terms and conditions prescribed in Section 20 hereof.
(b) The term 'Bonds" shall mean the $10,000,000 "City of Lubbock, Texas, Electric Light and Power
System Revenue Bonds, Series 198411, dated April 15, 1984, 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 (12) consecutive month period
established by the City.
(e) The term "Net Revenues" shall mean the gross revenues of the System less expenses of operation
and maintenance. Such expenses of operation and maintenance shall not include depreciation charges or
funds pledged for the Bonds Similarly Secured, but shall include all salaries, labor, materials, repairs, and
extensions necessary to render services; provided, however, that in determining "Net Revenues," only such
repairs and extensions as in the judgment of the City Council, reasonably and fairly exercised are
necessary to keep the System in operation and render adequate service to the City and inhabitants
thereof, or such as might be necessary to meet some physical accident or condition which otherwise would
impair the security of the Bonds Similarly Secured, shall be deducted.
(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; and
(7) Series 1983, dated May 15, 1983, in the original principal amount of $10,770,000.
(g) The term "System" shall mean all properties real, personal, mixed or otherwise, now owned or
hereafter acquired by the City of Lubbock through purchase, construction or otherwise, and used in
connection with the City's Electric Light and Power System and in anywise 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 't a —operat—i—on—ol the System, with the exception of those in excess of the amounts required to
establish and maintain the special Funds created for the payment and security of the Bonds Similarly
Secured, are hereby irrevocably pledged for the payment of the Previously Issued Bonds, the Bonds and
Additional Bonds, if issued, and the interest thereon, and it is hereby ordained that the Previously Issued
Bonds, the Bonds and the Additional Bonds, if issued, and the interest thereon, shall constitute a first lien
on the Net Revenues of the System.
"SECTION 11: Rates and Charges. That the City hereby covenants and agrees with the owners of the
Bonds that rates and charges for electric power and energy afforded by the System will be established and
maintained to provide revenues sufficient at all times to pay:
-25-
(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 Previously Issued Bonds), which Fund
(hereinafter referred to as the "System Fund") is hereby reaffirmed and shall continue to be kept and
maintained at an official depository bank of the City while the Bonds remain outstanding. Furthermore,
the "Special Electric Light and Power System Revenue Bond Retirement and Reserve Fund" (hereinafter
referred to as the "Bond Fund"), created and established in connection with the issuance of the Previously
Issued Bonds, is hereby reaffirmed and shall continue to be maintained by the City while the Bonds remain
outstanding. The Bond Fund is and shall continue to be kept and maintained at the City's official
depository bank, and moneys deposited in the Bond Fund shall be used for no purpose other than for the
payment, redemption and retirement of Bonds Similarly Secured.
"SECTION 13: System Fund. The City hereby reaffirms its covenant to the holders of the Previously
Issue Bons and agrees with the owners of the Bonds that the moneys deposited in the System Fund shall
be used first for the payment of the reasonable and proper expenses of operating and maintaining the
System, as identified in Section 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:
t
(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 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., the Bonds have been fully paid as to principal and interest or all the Bonds have
been refunded.
Accrued interest and premium, if any, received from the purchasers of the Bonds shall be deposited in the
Bond Fund, and shall be taken into consideration and reduce the amount of the monthly deposits
hereinabove required which would otherwise be required to be deposited in the Bond Fund from the Net
Revenues of the System.
(b) In addition to the amounts to be deposited in the Bond Fund to pay current principal and interest for
the Bonds Similarly Secured, the City reaffirms its covenant to the holders of the Previously Issued Bonds
and agrees to accumulate and maintain in said Fund a reserve amount (the "Reserve Portion") equal to not
less than the average annual principal and interest requirements of all outstanding Bonds Similarly
Secured (calculated and redetermined at the time of issuance of each series of Bonds Similarly Secured).
In accordance with the ordinances authorizing the issuance of the Previously Issued Bonds, there is
currently on deposit to the credit of the Reserve Portion of the Bond Fund the sum of $ By
reason of the issuance of the Bonds, the Reserve Portion to be maintained in said Fun shall be
-26-
32
$ (the "Required Reserve Amount"), 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 to be made for the debt service requirements of the Bonds Similiarly Secured (by paragraph (a) of
this Section), there shall be deposited in the Revenue Portion of the Bond Fund on or before the 1st day of
each month the sum of $ (which amount includes the money required to be deposited in
the Reserve Portion by the ordinances authorizing the Previously Issued Bonds) until the Bond Fund
contains the Required Reserve Amount 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 13: 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 furnish the City with an apporpriate 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
t e B� o�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 all deficiencies in making deposits to said Fund have been
remedied, may be used for any other City purposes now or hereafter permitted by law, including the use
thereof for the retirement in advance of maturity of the Bonds Similarly Secured by the purchase of any
of such Bonds Similarly Secured on the open market at not exceeding the market value thereof. Nothing
herein, however, shall be construed as impairing the right of the City to pay, in accordance with the
provisions thereof, any junior lien bonds legally issued by it and payable out of the Net Revenues of the
System.
"SECTION IS- Security of Funds. That moneys on deposit in the System Fund (except any amounts as
may be properly invest;shalTTe secured in the manner and to the fullest extent required by the laws of
the State of Texas for the security of public funds. Moneys on deposit in the Bond Fund shall be
continuously secured by a valid pledge of direct obligations of, or obligations unconditionally guaranteed
by the United States of America, having a par value, or market value when less than par, exclusive of
accrued interest, at all times at least equal to the amount of money to be deposited in said Fund. All
sums deposited in said Bond Fund shall be held as a trust fund for the benefit of the holders of the Bonds
Similarly Secured, the beneficial interest in which shall be regarded as existing in such holders. To the
extent that money in the Reserve Portion of the Bond Fund is invested under the provisions of Section 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 ounce , invest the Reserve Portion of the Bond Fund in direct obligations of, or obligations
guaranteed by the United States of America, or invested in direct obligations of the Federal Intermediate
Credit Banks, Federal Land Banks, Federal National Mortgage Association, Federal Home Loan Banks or
Banks for Cooperatives, and which such investment obligations must mature or be subject to redemption
at the option of the holder, within not to exceed ten years from the date of making the investment. Such
obligations shall be held by the depository impressed with the same trust for the benefit of the
bondholders as the Bond Fund itself, and if at any time uninvested funds shall be insufficient to permit
payment of principal and interest maturities for the Bonds Similarly Secured, the said custodian bank shall
sell on the open market such amount of the securities as is required to pay said Bonds Similarly Secured
and interest when due and shall give notice thereof to the City. All moneys resulting from maturity of
principal and interest of the securities shall be reinvested or accumulated in the Reserve Portion of the
Bond Fund and considered a part thereof and used for and only for the purposes hereinabove provided with
respect to said Reserve Portion, provided that when the full amount required to be accumulated in the
Reserve Portion of the Bond Fund (being the amounts required to be accumulated by the ordinances
authorizing the Bonds Similarly Secured) is accumulated, any interest increment may be used in the Bond
-27-
33
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 -Tien as authorized by the laws of the State of Texas, the City hereby reserves the right to issue
Additional Bonds which, when duly authorized and issued in compliance with the terms and conditions
hereinafter appearing, shall be on a parity with the Previously Issued Bonds and the Bonds herein
authorized, payable from and equally and ratably secured by a first lien on and: pledge of the Net
hRevenues of the owever, that none sha 1 be.issued he dunless and until hefollowing conditbe issued in ions have been mete or more installments, provided,
(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 r
the years in which they are provided to mature;
(e) The Reserve Portion of the Bond Fund shall be accumulated and supplemented as necessary to
maintain a sum which shall be not less than the average annual principal and interest requirements of all
bonds secured by a first lien on and pledge of the Net Revenues of the System which will be outstanding
upon the issuance of any series of Additional Bonds. Accordingly, each ordinance authorizing the issuance
of any series of Additional Bonds shall provide for any required increase in said Reserve Portion, and if
supplementation is necessary to meet all conditions of said Reserve Portion, said ordinances shall make
provision that same be supplemented by the required amounts in equal monthly installments over a period
of not to exceed sixty (60) calendar months from the dating of such Additional Bonds.
When thus issued, such Additional Bonds may be secured by a pledge of the Net Revenues of the System on
a parity in all things with the pledge securing the issuance of the Bonds and the Previously Issued Bonds.
"SECTION 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
costs. The City further agrees to maintain insurance for the benefit of the registered owners of the Bonds
of the kinds and in the amounts which are usually carried by private companies operating similar
properties, and that during such time all policies of insurance shall be maintained in force and kept
current as to premium payments. All moneys received from losses under such insurance policies other
than public liability policies are hereby pledged as security for the Bonds Similarly Secured until and
unless the proceeds thereof are paid out in making good the loss or damage in respect of which such
proceeds are received, either by replacing the property destroyed or repairing the property damaged, and
adequate provisions made within ninety (90) days after the date of the loss for making good such loss or
damage. The premiums for 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 Bons or any interest thereon remain outstanding and unpaid, it will keep and maintain
a proper and complete system of records and accounts pertaining to the operation of the System separate
and apart from all other records and accounts of the City in accordance with generally accepted
accounting principles prescribed for municipal corporations, and complete and correct entries shall be
made of all transactions relating to said System, as provided by applicable law. The registered owner of
any Bonds, or any duly authorized agent or agents of such owner, shall have the right at all reasonable
times to inspect all such records, accounts and data relating thereto and to inspect the System and all
properties comprising same. The City further agrees that as soon as possible following the close of each
-28-
�«f: ,, , R 34
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 improvements
in the operation, records and accounts of the System;
(d) A list of the insurance policies in force at the end of the Fiscal Year on the System properties,
setting out as to each policy the amount thereof, the risk covered, the name of the insurer, and the
policy's expiration date;
(e) A list of the securities which have been on deposit as security for the money in the Bond Fund
throughout the Fiscal Year and a list of the securities, if any, in which the Reserve Portion of the Bond
Fund has been invested;
(f) The total number of metered and unmetered customers, if any, connected with the System at
the end of the Fiscal Year.
Expenses incurred in making the audits above referred to are to be regarded as maintenance and operating
expenses of the System and paid as such. Copies of the aforesaid annual audit shall be immediately
furnished to the Executive Director of the Municipal Advisory Council of Texas at his office in Austin,
Texas, and, upon written request, to the original purchasers and any subsequent registered owner of the
Bonds.
"SECTION 23: Remedies in Event of Default. That, in addition to all the rights and remedies provided by
laws o the tate of Texas, the City covenants and agrees particularly that in the event the City (a)
defaults in payments to be made to the Bond Fund as required by this ordinance or (b) defaults in the
observance or performance of any other of the covenants, conditions or obligations set forth in this
ordinance, the registered owner of any of the Bonds shall be entitled to a writ of mandamus issued by a
court of proper jurisdiction compelling and requiring the City Council and other officers of the City to
observe and perform any covenant, condition or obligation prescribed in this ordinance.
No delay or omission to exercise any right or power accruing upon any default shall impair any such right
or power, or shall be construed to be a waiver of any such default or acquiescence therein, and every such
right or power may be exercised from time to time and as often as may be deemed expedient. The
specific remedies herein provided shall be cumulative of all other existing remedies and the specifications
of such remedies shall not be deemed to be exclusive.
"SECTION 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
I I I I et seq., and Article 2368a, Revised Civil Statutes of Texas, 1923, as amended; 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, 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 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.
-29-
(e) That the City will faithfully and punctually perform all duties ,with respect to the System
required by the Constitution ufficient rats for services ws of the
by the Syst,emcand hesegregation he and application of
and collecting Of
reasonable an
the revenues of the System as required by the provisions of this ordinance.
tem and to the
ent
or its
rtments
(f) 'es No free service utilize the services pro idedlbyt he Systeby the ms, payment shall be made therefor at rates charged
or agent:
to others for similar service. _
tial obligations of the City payable from the
"SECTION 25: S eco ia1 Obli a The Bonds are sped 8
p e sed Net Revenvenues o the ystem and the registers owners thereof shall never have the right to
demand payment thereof out of funds raised or to be raised by taxation.
be deemed
"SECTION 26: Bonds are ut,"asetthe Bonds herein
shall
and construed to be a "Security,"andasuchanegotiableinstrment,within the meaning of Article 8 of
the Uniform Commercial Code.
"SECTION 27: Ordinance to Constitute Contract. The provisions of this ordinance shall constitute a
contract between the City and the registered owners of the Bonds from time to time 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
EC
a 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 1934, as amended, or any regulations or rulings pertaining
thereto.
"SECTION 29: Final De osits• Governmental Obli ations. (a) All or any of the Bonds shall be deemed to
be paid, retir 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) shall 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 makesuch payment
the Bonds
all necessary and proper fees, compensation and expenses of the Paying Ag pertaining o
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 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 nth
resort tetolwhichrsuch mo eythas beenososdeposiited, shalllnpremium, if be turned overytoathe�thereon,d interest
the of the City ordepositedias
1�
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 use 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."
-30-
Fy( 36
\R`� v� t.
,
VALUATION AND DEBT INFORMATION
1983 Market (Appraised) Valuation
Less Exemptions/Reductions at Market (Appraised) Value (1)
Residence Homestead (Over 65 or Disabled)
Disabled Veterans
Agricultural Reductions
1983 Taxable Assessed Valuation (100% of 1983
Net Market (Appraised) Valuation)
City Funded Debt Payable From Ad Valorem Taxes
(as of 2-1-84) (2) (3) (4) :
General Purpose Bonds
Waterworks Bonds
Sewer System Bonds
Series 1984 Bonds (selling 3-22-84)
Total Funded Debt Payable from Ad Valorem Taxes
$3,362,375,412
$114,037,073
2,549,188
12,066,655 128,652,916
$3,233,722,496
$45,607,258
29,847,297
3,450,445
13,775,000
$92,680,000
Less Self -Supporting Debt (2) :
Waterworks Bonds (including $2 613,000 of the Series 1984 Bonds) $32,460,297
Sewer System Bonds (including 16,802,000 of the Series 1984 Bonds) 10,252,445 42,712,742
Total General Purpose General Obligation Debt
Interest and Sinking Fund, All General Obligation Bonds (as of 2-1-84)
$49,967,258
$ 4,077,112
Ratio Total Funded Debt to Taxable Assessed Valuation ------------------------------------- 2,8796
Ratio Total General Purpose General Obligation Debt to Taxable Assessed Valuation ------------ 1.55%
1984 Estimated Population - 186,427*
Per Capita 1983 Taxable Assessed Valuation - $17,345.78
Per Capita Total General Purpose General Obligation Debt - $268.03
Area - 94.4 Square Miles
* Source: City of Lubbock, Texas.
(1) 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) $10,000 market value of a
residence homestead for the disabled; and (3) $3,000 Assessed Valuation for disabled veterans.
Agricultural reductions granted to owners of productive open -space lands under Section 1-d-1, Article
VIII, State Constitution.
(2) 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.
(3) As of February 1, 1984, the above statement of indebtedness does not include outstanding $32,215,000
Electric Light and Power System Revenue Bonds (including $10,000,000 Bonds being offered herein), as
these bonds are payable solely from the net revenues derived from the System. The statement also does
not include outstanding $2,055,000 Airport Revenue Bonds, as these bonds are payable solely from gross
revenues derived from the City of Lubbock Airport. In addition, $2,595,000 General Obligation Bonds, due
February 1, 1984, have been deducted from outstanding General Obligation Debt. The Waterworks System
and the Sewer System are unencumbered with Revenue Bond Debt.
(4) The City's last General Obligation Bond sale was April 28, 1983, when $18,775,000 General Obligation
Bonds, Series 1983, were offered and sold.
-31-
OTHER LIABILITIES
(1) On September 1, 1976, the City purchased the land and
b ildingsly, this prs, owned operty Realty
Cs te mean,
s
was
Inc., located immediately north of City Hall. For many y p
f 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 y Of the $389,820 obtained various
purchase price, the
raisals of the
property which varied from a high of $1,432,095 to a low of $362,860
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, 1983 was $215,571.60 which matures in 8 annual
installments, September 1, 1984 through September 1, 1990, with interest calculated at 7%.
Fiscal
Year
Ending
9-30
1983
1984
1985
1986
1987
1988
1989
1990
Note Amortization Schedule
Principal Interest Total
$ 24,910.00
26,653.60
28,519.60
30,515.60
32,652.00
34,937.60
37 383.20
215,571.60
$ 15,090.00
13,346.40
11,480.40
9,484.40
7,348.00
5,062.40
2,616.90
64,428.40
$ 40,000.00
40,000.00
40,000.00
40,000.00
40,000.00
40,000.00
40,000-00
280,000.00
Outstanding
Balance
215,571.60
190,661.60
164,008.00
135,488.40
104,972.80
72,320.80
37,383.20
-0-
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) Acquisition and Renovation of Sears Building ... On October 15, 1982, the City of Lubbock entered
into an agreement with the American State Bank, Lubbock ("American"), to purchase the 96,810 square
foot "Sears" building located in downtown Lubbock. Originally constructed by Sears, Roebuck. & Co., the
building and site were sold 'to the adjacent American State Bank following Sears construction of new
facilities in South Plains Mall, Lubbock, several years ago. The City also acquired 3 additional sites near
the Sears site for parking expansion in the future.
The City 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 $ 751,000
Purchase of additional property 302,925
Renovation of 55,000 square feet 1,800,000
Other cost 396 075
Total Estimated Cost $3,250 O0
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
1-15-84;
(2) Total Payment. Actual and future quarterly payments to "American" including interest quarterly
at an annual rate of 12 3/446. Final payment, 1-15-94, $2,917,818.
(3) Additional Site Acquisition, The City acquired 3 additional, adjacent sites for future parking
expansion, paying 51599000 in cash and assuming payments on 3 notes. Payment of the $159,000 and
combined payments on the 3 notes are demonstrated.
lSY40
u�,
,
(4) Escrow Deposits. The City has deposited and wi11 continue to deposit funds from Revenue Sharing
into an "Escrow Account" at "American" from which payments will be made to "American" as referred to
in (3), above, and on the notes referred to in (4) above. Deposits totaled $3,123,000 on 1-15-84; except for
2, subsequent, minor deposits, the "Escrow Account" is essentially funded. The City plans to make the 2,
minor, future deposits from Revenue Sharing entitlements; if Revenue Sharing Funds are not available for
either 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. The Escrow Balance at the end of any quarter will always exceed the Advance
Balance.
(7) In the opinion of the City Attorney the financial arrangement with "American" described above
does not constitute a legal debt of the City since funds will be pledged at all times and placed in the
"Escrow Account" in amounts that, with interest earned, will exceed the outstanding Advance Balance
throughout the life of the agreement.
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".
VALUATION AND FUNDED DEBT HISTORY
Fiscal
Period
Taxable
Basis
Total Funded
Ending
Assessed
of
Debt Outstanding
9-30
Valuation(i)
Assessment
Year End
1973-74
716,225,294
60%
553,440,000
1974-75
797,387,868
60%
50,546,000
1975-76
900,079,412
60%
47,763,000
1976-77
997,553,829
60%
43,682,000
1977-78
1,097,536,312
60%
42,107,000
1978-79
1,290,998,036
60%
47,086,000
1979-80
1,397,872,411
60%
49,301,000
1980-81
1,516,565,090
60%
61,710,000
1981-82
2,682,330,673
100%
67,900,000
1982-83
3,145,952,586
100%
81,500,000
1983-84
3,233,722,496
100%
89,180,000(2)
Ratio
Total Funded
Debt to Taxable
Assessed Valuation
7.46%
6.34%
5.31%
4.38%
3.84%
3.65%
3.53%
4.07%
2.53%
2.59%
2.76%
(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 has continued an on-going review and reappraisal of property in the City, reappraising
approximately 35% for the 1983 tax roil.
Taxable Assessed Valuations for Fiscal Periods 1973-74 through 1982-83 have been adjusted for
supplements and corrections to the tax rolls made subsequent to certification of the rolls.
(2) Anticipated.
-34-
40
Year Month
1982-83
10-15
1-15
4-15
7-15
1983-84
10-15
1-15
4-15
7-15
1984-85
10-15
1-15
4-15
7-15
1985-86
10-15
1-15
4-15
7-15
1986-87
10-15
1-15
4-15
7-15
1987-88
10-15
1-15
4-15
7-15
1988-89
10-15
1-15
4-15
7-15
1989-90
10-15
1-15
4-15
7-15
1990-91
10-15
1-15
4-15
7-15
1991-92
10-15
1-15
4-15
7-15
1992-93
10-15
1-15
4-15
7-15
1993-94
10-15
1-15
4-15
7-15
6 811-38 3 374,896 T3-
298,000
3 911 993
- 33-
0
3-
0 N ,#. 39
Sears Building
Minimum
Finance Schedule
Interest
Escrow
Additional
Advance
Total
Site
Balance
Payment
Acquisition
$ 751,000
913,294
$ 139,000
'751,000
$ 23,938
5,331
1,251,000
23,938
5,331
1,751,000
39,876
5,331
2,251,000
55,813
5,331
2,824,001
93,750
5,331
2,820,266
93,750
5,331
2,816,412
93,750
5,331
2,812,435
93,750
5,331
2,903,331
93,750
5,331
2,902,125
93,750
5,331
2,900,880
93,750
5,331
2,899,596
93,750
5,331
2,898,270
93,750
5,331
2,896,903
93,750
5,331
2,895,491
93,750
5,331
2,894,035
93,750
5,331
2,892,532
93,750
5,331
2,890,982
93,750
5,331
2,889,382
93,750
5,331
2,887,731
93,750
5,331
2,8869027
93,750
5,331
2,884,270
93,750
5,331
2,882,456
93,750
5,331
2,880,584
93,750
5,331
2,878,653
93,750
5,331
2,876,660
93,750
5,331
2,874,603
93,750
5,331
2,872,481
93,750
5,331
2,870,291
93,750
5,331
2,868,032
93,750
5,331
2,865,700
93,750
5,331
2,863,295
93,750
5,331
2,860,812
93,750
5,331
2,858,251
93,750
5,331
2,855,607
93,750
5,331
2,852,880
93,750
5,331
2,850,065
93,750
5,331
2,847,161
93,750
5,331
2,844,164
93,750
5,331
2,841,072
93,750
4,637
2,837,881
93,750
670
2,834,589
93,750
670
2,831,191
93,750
670
2,827,686
93,750
670
2,827,686
2,917,818
670
6 811-38 3 374,896 T3-
298,000
3 911 993
- 33-
0
3-
0 N ,#. 39
Escrow
Minimum
Escrow
Interest
Escrow
Deposits
Earnings
Balance
$1,073,000
$ 914,000
$ 28,563
913,294
475,000
28,540
1,387,565
475,000
43,361
1,860,719
525,000
58,147
2,382,723
575,000
74,460
2,933,102
91,659
2,925,680
91,428
2,918,027
91,188
2,910,134
125,000
90,942
3,026,995
94,594
3,022,507
94,453
3,017,880
94,309
3,013,108
94,160
3,008,186
94,006
3,003,111
93,847
2,997,877
93,684
2,992,480
93,515
2,986,914
93,341
2,981,174
93,162
2,975,255
92,977
2,969,150
92,786
2,962,855
92,589
2,956,363
92,386
2,949,669
40,000
92,177
2,982,765
93,211
2,976;895
93,028
2,970,842
92,839
2,964,600
92,644
2,958,163
92,443
2,951,525
92,235
2,944,679
92,021
2,937,619
91,801
2,930,339
91,573
2,922,831
91,338
2,915,088
91,097
2,907,104
90,847
2,898,870
90,590
2,890,378
90,324
2,881,622
90,051
2,872,591
89,768
2,863,973
89,499
2,859,052
89,345
2,853,977
89,187
2,848,744
89,023
2,843,347
88,855
13,714
6 811-38 3 374,896 T3-
298,000
3 911 993
- 33-
0
3-
0 N ,#. 39
TAXABLE ASSESSED VALUATIONS BY CATEGORY
* Net after estimated exemptions/reductions.
Source: Lubbock County Appraisal District.
-33-
,. I'
33 -
..r q - 41
Property
Real Property
(1) Personal Property (1)
Assessment
(2 )
As % of
Taxable
Taxable
Taxable
Appraised
Assessed
% of Assessed % of
Assessed
Year
Value
Valuation
Total Valuation Total
Valuation
B73
�
524,13 ,396
_7f_. %_ $192,091,891 26.8 %
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%
2,442,455,891
77.64% 703,496,695 22.36%
3,145,952,586
1983
100%
2,520,505,072
77.94% 713,217,424 22.06%
3,233,722,496
(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
has continued an on-going review and reappraisal of all property in the City,
reappraising
approximately
35% for the 1983 Tax Roll. >
(2) Taxable Assessed Valuations for 1974-1982 are net after the following exemptions and reductions (in
terms of Assessed Valuation):
Over 65
Agricultural/
and Disabled
Disabled Open -Space
Homestead
Veteran Land
Year
Exemptions*
Exemptions Reductions
1974
5 11,39 ,000
Not Effective -0-
1975
13,323,150
Not Effective -0-
1976
11,888,760
$ 1,307,240 -0-
1977
14,159,830
1,646,220 -0-
1978
34,991,600
1,549,890 -0-
1979
49,793,340
1,928,450 -0-
1980
52,926,900
2,147,280 -0-
1981
103,968,160
2,072,270 -0-
1982
108,615,670
2,183,380 $10,090,967
1983
114,037,073
2,549,188 12,066,655
* As of
10-1 each year.
(3) Personal automobiles became exempt from
ad valorem taxes in 1979.
ESTIMATED TAXABLE ASSESSED VALUATION
Estimated
Taxable
Fiscal
Assessed
Period
Valuation
1984-95
3,600, 00,000*
* Net after estimated exemptions/reductions.
Source: Lubbock County Appraisal District.
-33-
,. I'
33 -
..r q - 41
AUTHORIZED GENERAL OBLIGATION BONDS
ESTIMATED GENERAL OBLIGATION BOND PROGRAM
Anticipate Issuance
1985 1986 1987 Total
Waterworks System 3,682,000 ,681,000 7,363,000
1,273,000 -0 -0- 1,273,000
Sewer System 1,881,000 -0- -0- 11881,000
Street Improvements 373,000 -0- -0- 373,000
Storm Sewer and Drainage 467 000 -0- 0- 467,000
Fire Department
3 994 000 3 682 000 3 681 000$11,357,000
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 2-1-84
Estimated
Total % Overlapping
Taxis Jurisdiction Funded Debt (1) 00% Applicable Funded Debt
City of Lubbock 49,967,258 100. 49,967,258
Lubbock Independent School District 12,475,000 97.69% _0_ 81.56% 12,L86,808
Lubbock County -0- 81.56% -0-
Lubbock County Hospital District
Lubbock County Water Control and _0_ 81.56% -0-
Improvement District No. 1 072,000 25.33% 271,538
Lubbock -Cooper Independent School District 3,463,000 50.70% 1,755,741
Frenship Independent School District 371,000 8.61% 31,943
Roosevelt Independent School District 1,148,000 3.54% 40,639
Idalou Independent School District 154,000 3.54% 51452
New Deal Independent School District
TOTAL OVERLAPPING FUNDED DEBT
$64,259,399
Ratio Overlapping Funded Debt to Taxable Assessed Valuation
------------------------------- 1.99%
Per Capita Overlapping Funded Debt - $344.69
(1) In each case, 2-1-84 principal, if any, has been deducted.
(2) General Purpose General Obligation Debt, including the Series 1984 Bonds selling 3-22-84.
-36-
1
4 N
Amount
Amount
Heretofore
Amount
Being
Unissued
Purpose
Date
Authorized
Authorized
16,775,000
Issued
12,0 5,000
Sold 3-22-84
100,000
Balance
4,650,000
Waterworks System
5-21-77
11-21-81
5,226,000
-0-
2,513,000
2,713,000
1,273,000
Waterworks System
Sewer System
5-21-77
3,303,000
7,892,000
2,030,000
1,090,000
-0-
6,802,0000
-0-
Sewer System
Street Improvements
11-21-81
5-21-77
4,782,000
3,693,000
5,305,000
3,398,00
1,089,000
792,000
Street Improvements
11-21-81
5-21-77
9, 495,000
473,000
100,000
00
373,000
Storm Sewer and Drainage
Fire Station (for adjacent
areas, when annexed)
-77
310,000
-0_
230,000
310,000
160,000
-0-
467,000
Fire Department
Airport
-
111-221-81
11-21-81
877,000
12 854 000
612987,000
12 362 000
36 855 000$13,775,000
492 000
_0_
11 357 000
ESTIMATED GENERAL OBLIGATION BOND PROGRAM
Anticipate Issuance
1985 1986 1987 Total
Waterworks System 3,682,000 ,681,000 7,363,000
1,273,000 -0 -0- 1,273,000
Sewer System 1,881,000 -0- -0- 11881,000
Street Improvements 373,000 -0- -0- 373,000
Storm Sewer and Drainage 467 000 -0- 0- 467,000
Fire Department
3 994 000 3 682 000 3 681 000$11,357,000
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 2-1-84
Estimated
Total % Overlapping
Taxis Jurisdiction Funded Debt (1) 00% Applicable Funded Debt
City of Lubbock 49,967,258 100. 49,967,258
Lubbock Independent School District 12,475,000 97.69% _0_ 81.56% 12,L86,808
Lubbock County -0- 81.56% -0-
Lubbock County Hospital District
Lubbock County Water Control and _0_ 81.56% -0-
Improvement District No. 1 072,000 25.33% 271,538
Lubbock -Cooper Independent School District 3,463,000 50.70% 1,755,741
Frenship Independent School District 371,000 8.61% 31,943
Roosevelt Independent School District 1,148,000 3.54% 40,639
Idalou Independent School District 154,000 3.54% 51452
New Deal Independent School District
TOTAL OVERLAPPING FUNDED DEBT
$64,259,399
Ratio Overlapping Funded Debt to Taxable Assessed Valuation
------------------------------- 1.99%
Per Capita Overlapping Funded Debt - $344.69
(1) In each case, 2-1-84 principal, if any, has been deducted.
(2) General Purpose General Obligation Debt, including the Series 1984 Bonds selling 3-22-84.
-36-
1
4 N
, , t
TAX DATA
(Year En 30)
(1) "Tax Levy" and "Percent Current Collections" for Tax Years 1973-74 through 1982-83 have been
adjusted to reflect final corrections and supplements to the tax rolls as audited at the end of each fiscal
year.
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
Distribution
Paid
Penalty
(1)
Total
Tax
Tax
Czeneral
Board of City
Interest an
(1)
% Current
% Total
Year
Rate
Fund
Development
Sinking Fund
Tax Lev
Collections
93.19%
Collections
96.39%
1973-74'5-1.36
10%
$0.4600
$0.05
500
9,740,664
6%
18%
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
0.3225
0.05
0.2875
17,703,382
95.55%
98.97%
1982-83
0.61
0.2791
0.05
0.2809
19,190,311
92.94%
97.30%
1983-84
0.61
0.2230
0.05
0.3370
19,725,707
In Process
of Collection
(1) "Tax Levy" and "Percent Current Collections" for Tax Years 1973-74 through 1982-83 have been
adjusted to reflect final corrections and supplements to the tax rolls as audited at the end of each fiscal
year.
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
Penalty
Interest
Total
February
6%
1%
7%
March
7%
2%
9%
April
8%
3%
11%
May
9%
4%
13%
June
10%
5%
15%
July
12%
6%
18%
After July penalty remains at 12%; 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 Constitutional provisions.
-37-
'° �' 43
1% MUNICIPAL SALES TAX
(Elf ective 4-1-6
levies a
les
d Use Tax
The n the City. Thas h s taxis collected and enforced by tovisions of Article he State .of TexasdComptroller6ofaPublic Accounts,
within t Y
who remits the _proceeds, less a service fee, to the City monthly. Revenues from this source fort e
periods shown have been:
Fiscal Net
Collections % of Equivalent
Estimated
Net
Year
Ended Remitted Ad Valorem Ad Valorem
Tax Rate
Collections
Per Capita
9-30to Cit Tax Levy
46.58% 0.634
N
1974 4,537,048
1975 4,763,912 43.93% 0.597
0.632
--
1976 5,690,591 46.49%
1977 6,806,680 48.39% 0.682
--
1978 7,421,615 47.96% 0.671
8,160,916 56.44% 0.632
1979 0.624
1980 8,722,450 55.71%
$50.14*
1981 9,791,566 58.69% 0.646
1982 10,939,663 61.79% 0.408
--
--
1983 11,355,581 59.17% 0.361
--
Based on U.S. Census, 1980, of 173,979.
TAX YEAR OVERLAPPING TAXES
ESTIMATED 1983-84
00
Year
Set forth below is an estimate f all assumi eare as shoon anwn. Bassis of,0assessment in all
residence by the shown taxing jurisdictions, assuming
Actual tax billings will vary according to each jurisdiction's
assessing
cases is 100% of appraisal value.
and the following does not purport to be an exact computation of such tax levies:
procedures
Estimated
Appraised
1983 Estimated
and Assessed
Tax 1983 Taxes
Taxing Jurisdiction Value
72,000
Rate Levied
0.61000 439.20
City of Lubbock
Lubbock Independent School District 67,000*
1.00000 670.00
0.18000 129.60
72,000
Lubbock County 72,000
Lubbock County Hospital District
0.13320 95.90
High Plains Underground Water Con- 72,000
0.00750 5.40
servation District No. 1
Estimated Total 1983-84 Ad Valorem Taxes
$1,340.10
* After $5,000 market value residence homestead exemption.
TOP TEN TAXPAYERS
1983 % of 1983
Taxable
Taxable
Assessed
Assessed
Name of Taxpayer Nature of Property
Valuation Valuation
167,374,000
Texas Instruments Incorporated Electronics Manufacturer
Telephone Utility
2.08%
Southwestern Bell Telephone Company
Electric Utility
30,847,048
0.95%
Southwestern Public Service Company
Regional Shopping Mall
23,282,255
0.72%
South Plains Mall
Retail Groceries
17,606,043
0.55%
Furr's, Inc.
Energas Company (a division of
14,785,168
0.46%
Pioneer Corporation) Gas Utility
13,324,050
0.41%
Oil Mill
Plains Co-op Oil Mill Cotton Compress
13,145,130
0.41%
Farmers Co-op Compress
Eagle-Picher Industries Earth Moving Machinery; Farm
10,411,090
0.32%
Equipment
International Business Machines7 964 390
Computers, Business Machines
0.25%
9.51%
Corporation
307 489 779
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4 4
c
INTEREST AND SINKING FUND MANAGEMENT INDEX
General Obligation Debt Service Requirements for Fiscal Year Ending 9-30-84------------ $12,392,771
Interest and Sinking Fund, All General Obligation Issues, 9-30-83----------- $ 783,882
1983 Interest and Sinking Fund Tax Levy at Approximately
97.5% Collection (as budgeted) -------------------------------------- 10,630,538
Estimated Interest Earned and Transfers from other City Funds------------ 1,363,356 12,777,776
EstimatedSurplus---------------------------------------------------------------- $ 385,005
COMPUTATION OF SELF-SUPPORTING DEBT
Waterworks Sewer
Net System Revenue Available for Fiscal Year System* System*
Ending 9-30-83 $5,995,401 $ 838,053
Less: Revenue Bond Requirements, 1983-84
Fiscal Year -0- -0-
Balance Available for Other Purposes
System General Obligation Bond Requirements,
1983-84 Fiscal Year
Balance
Percentage of System General Obligation Bonds
Self -Supporting
$5,995,401 $ 838,053
4,555,043 577,759
$1,440,358 $ 260,294
100.00% 100.00%
* 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.
PENSION FUNDS
Texas Municipal Retirement System ... All permanent, full-time City employees who are not firemen and
Wo 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. All City employees except
firemen are covered by Social Security. Options offered under the System, and adopted by the City,
include current, prior and antecedent service credits, 20 year vesting, updated service credit, and regular
and supplemental disability benefits. An employee who retires 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 1984 contribution rate is 7.22% including 0.05% for supplemental disability benefits.
Enabling statutes prohibit any member city from adopting options which impose liabilities that cannot be
amortized over 25 years within a specified statutory rate.
On December 31, 1982, assets held by the System not including those of the Supplemental Disability
Benefits Fund which is "pooled", for the City of Lubbock were $23,732,680. Unfunded accrued liabilities
on December 31, 1982, were $13,968,949, which is being amortized over the period January, 1983, through
January, 2008. Total contributions by the City to the System in Fiscal Year Ending 9-30-83 were
$1,947,304.
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45
Fireman's Relief and Retirement Fund ... City of Lubbock firemen are members of the locally admin-
istered 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 (appointed by the other
trustees), the Maya or his representative and the Director of Finance of the City. Execution of the act is
monitored by the Firemen's Pension Commissioner, who is appointed by the Governor.
Benefits of retired firemen are determined on a "formula" or a "final salary" plan. Actuarial reviews are
performed every three years, and the fund is audited annually. Firemen contribute 11'x6 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 13.16%.
An actuarial evaluation as of 2-28-83 was conducted by the firm of Rudd and Wisdom, Inc., Austin, Texas.
The valuation balance sheet estimated unfunded liabilities of $6,7429708, which is being amortized over a
21 year period, and the actuarial study concludes: "Consequently, we are of the opinion that the plan,
based on levels of benefits and contributions, has an adequate financing plan".
The City contributed $497,901 to the Fund during Fiscal Year ended 9-30-83.
-40-
�:� f 4 6
GENERAL INFORMATION REGARDING THE CITY AND ITS ECONOMY
LOCATION AND AREA...
The City of Lubbock, County Seat of Lubbock County, Texas, is located on the South Plains of West
Texas. Lubbock is the economic, educational, cultural and medical center of the area.
POPULATION .. .
Lubbock is the eighth largest City in Texas:
City of Lubbock
(Corporate Limits)
1910 Census 1,938
1920 Census 4,051
1930 Census 20,520
1940 Census 31,853
1950 Census 71,390
1960 Census 128,691
1970 Census 149,101
1980 Census 173,979
1984 Estimate 186,427*
Standard Metropolitan Area (Lubbock County)
1970 Census 179,293
1980 Census 211,651
* Source: City of Lubbock, Texas.
AGRICULTURE...
e
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 Statistical Reporting Service, U.S. Department of
Agriculture report as follows:
Lubbock County's 1982 cotton production was 78,800 bales; grain sorghum production was 243,990,000
pounds; and corn production was 182,400 bushels.
On January 1, 1983, there were an estimated 66,000 head of cattle and calves located on farms or in feed
lots in Lubbock County.
Lubbock County Cash Receipts from farm marketings, 1981/82, were:
1981 1982
All Crops 5 68,484,000 $62,993,000
Livestock and Products 40,618,000 39,557,000
Total Cash Receipts $109,102,000 $102,550,000
1982 cotton production in a 23 county (including Lubbock County) area surrounding Lubbock was 1,153,800
bales; 1982 grain sorghum production in this same area was 3,431,820,000 pounds; and grain corn
production was 57,894,200 bushels.
Three major vegetable oil plants located in Lubbock have a combined weekly capacity of over 2,400 tons
of cottonseed and soybean oil.
Several major seed companies are headquartered in Lubbock.
-41-
BUSINESS AND INDUSTRY ...
Lubbock SMSA Labor Force Estimates*
November October September November October September
1983** 1983 1983 1982 1982 1982
Civilian Labor Force 113,500 100,800 111,500 107,500 1059700 105,300
Total Employment 105,700 104,600 104,000 102,200 100,400 99,200
Unemployment 7,800 6,200 7,500 5,300 5,300 6,100
Percent Unemployed 6.9% 5.6% 6.7% 4.9% 5.096 5.8%
State of Texas Labor Force Estimates*
in thousands
November October September November October September
1983** 1983 1983 1982 1982 1982
Civilian Labor Force 7,673.3 7,666.0 7,724.3 7,456.9 7,362.9 7,353.0
Total Employment 7,151.8 7,133.8 7,061.6 6,891.3 6,804.8 6,762.2
Unemployment 521.5 532.2 662.7 565.6 558.1 590.8
Percent Unemployed 6.8% 6.9% 8.6% 7.6% 7.6% 8.0%
United States Labor Force Estimates*
in thousands
November October September November October September
1983** 1983 1983 1982 1982 1982
Civilian Labor Force 112,147.0 111,815.0 112,368.0 110,855.0 110,767.0 110,546.0
Total Employment 103,018.0 101,929.0 101,945.0 99,379.0 99,825.0 99,851.0
Unemployment 9,129.0 9,383.0 9,830.0 11,476.0 10,942.0 10,695.0
Percent Unemployed 8.1% 8.4%. 8.8% 10.4% 9.9% 9.7%
* Source: Texas Employment Commission.
** Subject to revision.
The Texas Employment Commission reported in December, 1983, that November, 1983, non-agricultural
employment in the Lubbock area totaled 90,900, up from 90,600 in November, 1982; of this total an
estimated 10,200 were employed in manufacturing compared to 11,400 in November, 1982.
Over 240 manufacturing plants in Lubbock produce such products as semi -conductor products, vegetable
oils, heavy earth -moving machinery, irrigation equipment and pipe, farm equipment, paperboard boxes,
foodstuffs, mobile and prefabricated homes, poultry and livestock feeds, boilers and pressure vessels,
automatic sprinkler system heads, structural steel fabrication and soft drinks.
Some larger industries in Lubbock (with 100 employees or more) are:
Comoanv '
Texas Instruments, Inc.
Lubbock Avalanche -Journal Southwestern
Newspaper Corporation
Plains Co-op Oil Mill
Johnson Manufacturing Company (Division of
Eagle-Picher Industries)
Frito-Lay, Inc. (Subsidiary of Pepsico, Inc.)
Evans Transportation Company (Division of
Evans Products Company)
Goulds Pumps, Inc.
Coca-Cola Bottling Company
Grinnell Fire Protection Systems Company
(Subsidiary of Tyco Laboratories)
Estimated
Employees
-42-
. 48
January
Product
1984*
Semi -Conductor Elements and Products
1,750
Newspaper
350
Vegetable Oil Products, Cottonseed
325
Products
Heavy Earth -Moving Machinery and
300
Farm Equipment
Potato and Corn Chips
300
Pressure Vessels for Rail Cars
200
Vertical Turbine Pumps
200
Soft Drinks
175
Automatic Sprinkler Heads
150
-42-
. 48
Company
Rainbo Baking Company, subdivision of
Cambell -Taggart Associated Bakeries, Inc.
Mrs. Baird's Bakeries
Bell Dairy Products, Inc.
Lubbock Cotton Oil Company
Dr. Pepper -Seven Up Bottling Company
Horn and Gladden
Hall Foundries
Randolph Manufacturing
* Source: Lubbock Chamber of Commerce.
Estimated
Employees
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.
Sales & Marketing Management, Survey of Buying Power, estimates Lubbock County 1982 retail sales at
1,406,415,000, compared to an estimate of 1,413,679,000 for 1981.
Combined Bank Statistics
Year End
January
Product
1984*
Bread Products
130
Bread Products
125
Dairy Products
100
Cottonseed Oil and Other Cottonseed
100
Products, Soyean Oil
793,915,466
Soft Drinks
100
Steel Fabrication
100
Foundry Patterns
100
Gear Drives
100
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.
Sales & Marketing Management, Survey of Buying Power, estimates Lubbock County 1982 retail sales at
1,406,415,000, compared to an estimate of 1,413,679,000 for 1981.
Combined Bank Statistics
Year End
. Deposits
Year End
De sits
IT72
596,697,439
978
51,L04,996,183
1973
723,327,701
1979
1,219,990,000
1974
793,915,466
1980
1,369,037,000
1975
878,164,171
1981
1,500,160,000
1976
1,013,973,289
1982
1,586,469,000
1977
1,104,602,863
1983
1,683,241,000
EDUCATION ... TEXAS TECH UNIVERSITY ...
Established in Lubbock in 1925, Texas Tech University is the third largest State-owned University in. Texas
and had a Fall, 1983 enrollment of 23,704. Accredited by the Southern Association of Colleges and
Schools, the University is a co-educational, State -supported institution 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 has over 90 permanent
buildings with additional construction in progress. 1983-84 faculty membership is 1,519, and there are
4,689 other full and part-time employees including professional and administrative staff. Including the
Medical School, the University's operating budget for 1983-84 is $208.7 million of which $138.6 million is
from State appropriations; book value of physical plant assets, including the Medical School, is $339.7
million.
In 1969, the State Legislature authorized the establishment of a medical school at the University.
Construction of Pods A and B of the school is complete, and construction of Pod C is near completion.
The medical school opened in 1972, and had an enrollment of 390 for the Fall Semester, 1983, not
including residents. There are 51 graduate students. The School of Nursing admitted its first class in
Fall, 1981 and had a Spring Semester, 1984 enrollment of 158. The Allied Health School admitted its first
class in Fall, 1982, and Spring Semester, 1984 enrollment, is 68 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. January, 1984, enrollment was 29,033; there were 2,012 faculty and professional personnel
and other employees. The District operates 4 senior high schools, 8 junior high schools, 38 elementary
schools and other educational programs.
-43-
49
SCHOLASTIC MEMBERSHIP HISTORY*
* Source: Superintendent's Office, Lubbock Independent School District.
** As of January 19, I984.
Lubbock Christian College, a privately owned, co-educational senior college located in Lubbock, had an
enrollment of approximately 930 for the Spring Semester, 1984, 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, 1984 enrollment was approximately 1,085. The College also
operates a major off -campus learning center at Reese Air Force Base; course offerings are in primarily
academic subjects and Spring, 1984 enrollment was 478.
The State of Texas School for the Mentally Retarded, located on a 220 acre site in Lubbock, now consists
of 38 buildings with accommodations for 556 students. The School's operating budget for 1983/84 is in
excess of $13.0 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, Southwest Airlines and Muse Air. Non-stop service is provided to Dallas -Fort Worth Regional
Airport, Dallas Love Field, Houston, Amarillo, Austin, El Paso and Midland -Odessa. 1983 passenger
boardings totaled 512,637. 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 Lines, a subsidiary of Greyhound Corporation,
provides bus service. Headquarters for T.I.M.E.-DC, Inc., a transcontinental 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 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 at 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 2,588 military and 570 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 agencies have
offices in Lubbock; a Federal District Court is located in the City.
-44-
Q f. V
50
Refined
Average
School
Student
Daily
Year
Membership
Attendance
1973-74
32,499
30,477
1974-75
32,209
30,255
1975-76
31,733
29,888
1976-77
31,502
29,683
1977-78
31,163
29,554
1978-79
29,877
28,284
1979-80
29,377
27,257
1980-81
28,828
27,044
1981-82
28,942
26,995
1982-83
28,647
27,059
1983-84
29,033**
* Source: Superintendent's Office, Lubbock Independent School District.
** As of January 19, I984.
Lubbock Christian College, a privately owned, co-educational senior college located in Lubbock, had an
enrollment of approximately 930 for the Spring Semester, 1984, 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, 1984 enrollment was approximately 1,085. The College also
operates a major off -campus learning center at Reese Air Force Base; course offerings are in primarily
academic subjects and Spring, 1984 enrollment was 478.
The State of Texas School for the Mentally Retarded, located on a 220 acre site in Lubbock, now consists
of 38 buildings with accommodations for 556 students. The School's operating budget for 1983/84 is in
excess of $13.0 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, Southwest Airlines and Muse Air. Non-stop service is provided to Dallas -Fort Worth Regional
Airport, Dallas Love Field, Houston, Amarillo, Austin, El Paso and Midland -Odessa. 1983 passenger
boardings totaled 512,637. 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 Lines, a subsidiary of Greyhound Corporation,
provides bus service. Headquarters for T.I.M.E.-DC, Inc., a transcontinental 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 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 at 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 2,588 military and 570 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 agencies have
offices in Lubbock; a Federal District Court is located in the City.
-44-
Q f. V
50
HOSPITALS AND MEDICAL CARE ...
There are seven hospitals with a total of 1,508 licensed beds. Methodist Hospital, the largest, has 549
beds, and also operates an accredited nursing school; St. Mary's of the Plains Hospital has 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 and has 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 65 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 Yeilowhouse 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.
Available to residents are Texas Tech University programs and events, Texas Tech University Museum,
Planetarium and Ranch Heritage Center exhibits and programs, Lubbock Memorial Civic Center and its
events, Lubbock Symphony Orchestra programs, Lubbock Theatre Center, Lubbock Civic Ballet, Municipal
Auditorium and Coliseum programs and events, the library and its branches, the annual Panhandle -South r
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.
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 Corporation.
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.
-45-
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- 52
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 summaries of the
statutes, documents and resolutions contained in this Official Statement are made subject to all of the
provisions of such statutes, documents and resolutions. These summaries do not purport to be complete
statements of such provisions and reference is made to such documents for further information.
Reference is made to original documents in all respects.
FINANCIAL ADVISOR
First Southwest Company is employed as Financial Advisor to the City in connection with the issuance of
the Bonds. The Financial Advisor's fee for services rendered with respect to the sale of the Bonds is
contingent upon the issuance and delivery of the Bonds. First Southwest Company may submit a bid for
the Bonds, either independently or as a member of a syndicate organized to submit a bid for the Bonds.
CERTIFICATION OF THE OFFICIAL STATEMENT
At the time of payment for and delivery of the Bonds, the Purchaser will be furnished a certificate,
executed by proper officers, acting in their official capacity, to the effect that to the best of their
knowledge and belief: (a) the descriptions and statements of or pertaining to the City contained in its
Official Statement, and any addenda, supplement or amendment thereto, on the date of such Official
Statement, on the date of sale of said Bonds and the acceptance of the best bid therefor, and on the date
of the delivery, were and are true and correct in all material respects; (b) insofar as the City and its
affairs, including its financial affairs, are concerned, such Official Statement did not and does not contain
an untrue statement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances under which they were made,
not misleading; (c) insofar as the descriptions and statements, including financial data, of or pertaining to
entities, other than the City, and their activities contained in such Official Statement are concerned, such
statements and data have been obtained from sources which the City believes to be reliable and 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.
The Ordinance authorizing the issuance of the Bonds will also approve the form and content of this
Official Statement, and any addenda, supplement or amendment thereto, and authorize its further use in
the reoffering of the Bonds by the Purchaser.
ATTEST:
EVELYN E. GAFFGA
City Secretary
-48-
ALAN HENRY
Mayor
�.c, 54
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 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 delivery of the Bonds is subject to an opinion of Messrs. Dumas, Huguenin, Boothman do Morrow, Bond
Counsel to the City ("Bond Counsel"), to the effect that interest on the Bonds is exempt from all present
Federal income taxes under the applicable statutes, published rulings, regulations and court decisions
existing on the date of such opinion. The laws, regulations, court decisions and administrative regulations
and rulings upon which the conclusion stated in Bond Counsel's opinion will be based are subject to change
by the Congress, the Treasury Department and later judicial and administrative decisions.
REGISTRATION AND QUALIFICATION OF BONDS FOR SALE
The sale of the Bonds has not been registered under the Federal Securities Act of 1933, as amended, in
reliance upon the exemption provided thereunder by Section 3(a) (2); and the Bonds have not been qualified
under the Securities Act of Texas in reliance upon various exemptions contained therein; nor have the
Bonds been qualified under the securities acts of any jurisdiction. The City assumes no responsibility for
qualification of the Bonds under the securities laws of any jurisdiction in which the Bonds may be sold,
assigned, pledged, hypothecated or otherwise transferred. This disclaimer of responsibility for qualifica-
tion for sale or other disposition of the Bonds shall not be construed as an interpretation of any kind with
regard to the availability of any exemption from securities registration provisions.
LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TEXAS
Section 9 of the Bond Procedures Act of 1981 states: "All bonds issued by an issuer shall constitute
negotiable instruments, and are investment securities governed by Chapter 8, Texas Uniform Commercial
Code, notwithstanding any provisions of law or court decision to the contrary, and are legal and
authorized investments for banks, savings banks, trust companies, building and loan associations, savings
and loan associations, insurance companies, fiduciaries, and trustees, and for the sinking fund of cities,
towns, villages, school districts, and other political subdivisions or public agencies of the State of Texas".
The Act further provides that the bonds are eligible to secure deposits of public funds of the state, its
agencies and political subdivisions, and are legal security for those deposits to the extent of their market
value. No review by the City has been made of the laws in other states to determine whether the bonds
are legal investments for various institutions in those states.
LEGAL OPINIONS AND NO -LITIGATION CERTIFICATE
The City will furnish a complete transcript of proceedings had incident to the authorization and issuance
of the Bonds, including the unqualified approving legal opinion of the Attorney General of the State of
Texas as to the Initial Bond and any changes in denominations or form authorized in said proceedings, 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 applicable
statutes, published rulings, regulations, 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 will also be furnished. Bond Counsel was
not requested to participate, and did not take part, in the preparation of the Notice of Sale and Bidding
Instructions, the Official Bid Form and the Official Statement, and such firm has not assumed any
responsibility with respect thereto or undertaken independently to verify any of the information contained
therein, except that, in its capacity as Bond Counsel, such firm has reviewed the information describing
the Bonds in the Official Statement to verify that such description conforms to the provisions of the bond
Ordinance. 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.
-47-
.� 53
CITY SECRETARY -TREASURER
P
ItC .rte
762-6411
P. O. Box 2000
LUBBOCK, TEXAS 79457
March 7, 1984
Mr. Joe W. Smith
P.O. Box 2754-79604
Abilene, Texas 79601
RE: RESOLUTION 1592-2/23/84
Dear Joe:
Enclosed herewith to you is a duplicate original of the resolution regarding
the Notice of Sale, and other official documents regarding the General
Obligation/Electric Revenue Bonds.
The correspondence that I have in hand did not necessarily specify who was to
receive this resolution although it was received in duplicate, so I am
forwarding it to you. In the event it should go on to Dallas, please do so.
EVELYN GAFFGA, CMC
City Secretary
EG/jn
Enclosure
RESOLUTION 1592 - 2/23/84
arm
RESOLUTION UUPY
WHEREAS, the City Council of the City of Lubbock, Texas desires to receive
bids for the purchase of its $13,775,000 General Obligation Bonds, Series 1984 and
$10,000,000 Electric Light and Power System Revenue Bonds, Series 1984; and
WHEREAS, First Southwest Company, Dallas, Texas, has been authorized and
requested to prepare a Notice of Sale and Bidding Instructions, Official Bid Form
and Official Statement containing financial, economic and other data necessary
and desirable to attract bids for said bonds;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF LUBBOCK, TEXAS:
That the attached Notice of Sale and Bidding Instructions, Official Bid Form
and Official Statement relative to $13,775,000 City of Lubbock, Texas General
Obligation Bonds, Series 1984 and $10,000,000 Electric Light and Power System
Revenue Bonds, Series 1984, are hereby approved, both as to form and content, and
said First Southwest Company is authorized to distribute said Notice of Sale and
Bidding Instructions, Official Bid Form and Official Statement to prospective
bidders for, and purchasers of, the bonds.
PASSED AND APPROVED this the 23rd day of February, 1984, by the City
Council of the City of Lubbock, Texas, convened in regular session with a lawful
quorum present.
ATTEST:
ity Secre
FIRST <5&aMMVe0 COMPANY
INVESTMENT BANKERS
MERCANTILE DALLAS BUILDING
DALLAS, TEXAS 75201
MUNICIPAL DEPARTMENT February 14, 1984
( 214) 742.6461
Mrs. Evelyn E. Gaffga
City Secretary
City of Lubbock
P O Box 2000
Lubbock, Texas 79457
Re: $13,775,000 CITY OF LUBBOCK, TEXAS GENERAL OBLIGATION BONDS
and
$101,000,000 CITY OF LUBBOCK, TEXAS ELECTRIC LIGHT AND POWER
SYSTEM REVENUE BONDS
Dear Evelyn:
Enclosed is one xerox copy of the Official Statement covering subject bonds. Also
enclosed are 2 copies of the resolution. Please return one executed copy of the
resolution to Joe Smith.
jm
Enclosures
cc: Mr. Joe Smith
Yours truly,
Jo Anne Macalik