HomeMy WebLinkAboutResolution - 1088 - Authorize Notice Of Sale, Bid Forms, Etc. - FSWC - General Obligation Bonds - 04/22/1982RESOLUTION 1088 - 4/22/82
RESOLUTION
WHEREAS, the City Council of the City of Lubbock, Texas desires to
receive bids for the purchase of its $10,950,000 General Obligation Bonds,
Series 1982; and
WHEREAS, First Southwest Company, Dallas, Texas, has been authorized
and requested to prepare a Notice of Sale and Bidding Instructions, Of-
ficial 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 $10,950,000 City of Lubbock,
Texas General Obligation Bonds, Series 1982, 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 22nd day of April, 1982, by the City
Council of the City of Lubbock, Texas, convened in regular session with a
lawful quorum present.
ATTEST:
t`
`j NOTICE OF SALE
AND
BIDDING INSTRUCTIONS
ON
$10,950,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
GENERAL OBLIGATION BONDS, SERIES 1982
Selling Thursday, May 27, 1982, at 10:30 AM, CDT
THE SALE
Bonds Offered for Sale at Competitive Bidding .. The City of Lubbock, Texas (the "City"), is
offering for sale its W,VW,UUU GeneralObligation Bonds, Series 1982 (the "Bonds").
Address of Bids... Sealed bids, plainly marked "Bid for Bonds", should be addressed and
delivered ere to "Mrs. Evelyn E. Gaffga, City Secretary, City of Lubbock, Texas", prior to 10:30
AM, CDT, on the date of the bid opening. All bids must be submitted on the Official Bid Form,
without alteration or interlineation.
Place and 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 10:30 AM, CDT, Thursday, May 27,
1982.
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 (the "Ordi-
nance") and approving the Official Statement.
THE BONDS
Description, The Bonds will be dated June 1, 1982, and interest coupons will be due on
February 1, 1983, and each August 1 and February 1 thereafter until the earlier of maturity or
prior redemption. The Bonds and interest coupons attached thereto will be payable at Citibank,
N.A., New York, New York, or, at the option of the holder, at Texas Commerce Bank, National
Association, Lubbock, Texas. The Bonds will mature serially on February 1 in each year as
follows:
The City reserves the right, at its option, to redeem Bonds maturing February 1, 1993, through
February 1, 2002, both inclusive, in whole or any part thereof, on February 1, 1992, or any
interest payment date thereafter, at the par value thereof plus accrued interest to the date
fixed for redemption.
Source of Payment . The Bonds are direct and voted general obligations payable out of the
rece ptsrf om an ad valorem tax levied, within the limits prescribed by law, on taxable
property located within the City.
CONDITIONS OF THE SALE
Types of Bids and Interest Rates The Bonds will be sold in one block on an "All or None"
abasis; 3 an a - t a price o not ess 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 coupon rate bid may not exceed the
lowest coupon rate bid by more than 2% in coupon rate. No limitation is imposed upon bidders as
to the number of rates or coupon changes which may be used. All Bonds of one maturity must bear
one and the same rate. No bids involving supplemental coupons will be considered. Each bidder
shall state in his bid the total interest cost in dollars and the net effective interest rate
determined thereby, which shall be considered informative only and not as a part of the bid.
-i-
Principal
Principal
Principal
Year
Amount
Am 66
Year
Amount
Am�55�b�
Year
AmountAmi
1984
525,000
1991
550,000
1997
550,000
1985
550,000
1992
550,000
1998
550,000
1986
1987
550,000
550,000
1993
1994
550,000
550,000
1999
2000
550,000
550,000
1988
550,000
1995
550,000
2001
550,000
1989
550,000
2002
550,000
The City reserves the right, at its option, to redeem Bonds maturing February 1, 1993, through
February 1, 2002, both inclusive, in whole or any part thereof, on February 1, 1992, or any
interest payment date thereafter, at the par value thereof plus accrued interest to the date
fixed for redemption.
Source of Payment . The Bonds are direct and voted general obligations payable out of the
rece ptsrf om an ad valorem tax levied, within the limits prescribed by law, on taxable
property located within the City.
CONDITIONS OF THE SALE
Types of Bids and Interest Rates The Bonds will be sold in one block on an "All or None"
abasis; 3 an a - t a price o not ess 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 coupon rate bid may not exceed the
lowest coupon rate bid by more than 2% in coupon rate. No limitation is imposed upon bidders as
to the number of rates or coupon changes which may be used. All Bonds of one maturity must bear
one and the same rate. No bids involving supplemental coupons will be considered. Each bidder
shall state in his bid the total interest cost in dollars and the net effective interest rate
determined thereby, which shall be considered informative only and not as a part of the bid.
-i-
r
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 date thereof 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 (the ."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 9,006 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
Printed Bonds ... The City will furnish printed Bonds which will be executed by the facsimile
signatures of the Mayor and Secretary of the City, and by the manual signature of the Comptroll-
er of Public Accounts of the State of Texas. The Bonds will be in coupon form without privilege
of registration as to principal or interest.
CUSIP Numbers ... It is anticipated that CUSIP identification -numbers will be printed on the
Bonds, but neither the failure to print 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 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.
Deliver .. The Bonds will be tendered for delivery to the Purchaser at any bank in Austin,
Texas, at the expense of the City. 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 delivery can be made on or about July 1, 1982, and it is understood and agreed
that the Purchaser will accept delivery and make payment for the Bonds by 10:00 AM, CDT, on July
1, 1982, or thereafter on the date the Bonds are tendered for delivery, up to and including July
15, 1982. If for any reason the City is unable to make delivery on or before July 15, 1982,
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.
Conditions to Delivery ... The obligation of the Purchaser to take up and pay for the Bonds is
su sect 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 delivery of the Bonds,
the City will execute and deliver to the Purchaser a certificate in the form set forth in the
Official Statement.
Change in Tax Exempt Status .. At any time before the Bonds are tendered for delivery, the
Purchaser may wit raw his bla 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
Financial Advisor's Right to Bid .. First Southwest Company, the City's Financial Advisor,
reserves the right to bid on the Bonds.
Blue�Sk Laws ... By submission of his bid, the Purchaser represents that the sale of the Bonds
In states ates 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 plans to sell additional General Obligation Bonds
over the next several years (see "Estimated General Obligation Bond Program" in Official
Statement).
Ratings... The outstanding General Obligation Bonds of the City are rated "Aa" by Moody's
nvI estorsService, Inc. and "AA" by Standard & Poor's Corporation. Applications for contract
ratings on this issue have been made to both Moody's and Standard & Poor's. The results of
their determinations will be provided as soon as possible.
Municipal Bond Insurance .. In the event these Bonds are qualified for municipal bond insur-
ance, and the urchaser 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 tatement (and 100 copies of any addenda, supplement or amendment thereto, com-
plete 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 responsibil-
ity, 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 ns ruct ons, 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 22nd day of April, 1982, 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 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.
BILL McALISTER
Mayor
ATTEST:
EVELYN E. GAFFGA
City Secretary
April 22, 1982
- iv -
BOND YEARS
Accumulated
Year
Amount
Bond Years
Bond Years
Year
1983 S
525,000
350.000
350.000
1983
i
1984
525,000
875.000
1,225.000
1984
1985
550,000
1,466.666
2,691.666
1985
1986
550,000
2,016.666
4,708.332
1986
1987
550,000
2,566.666
7,274.998
1987
1988
550,000
3,116.666
10,391.664
1988
1989
550,000
3,666.666
14,058.330
1989
1990
550,000
4,216.666
18,274.996
1990
1991
550,000
4,766.666
23,041.662
1991
t
1992
550,000
5,316.666
28,358.328
1992
1993
550,000
5,866.666
34,224.994
1993
1994
550,000
6,416.666
40,641.660
1994
1995
550,000
6,966.666
47,608.326
1995
1996
550,000
7,516.666
55,124.992
1996
1997
550,000
8,066.666
63,191.658
1997
1998
550,000
8,616.666
71,808.324
1998 �ff`
1999
550,000
9,166.666
80,974.990
1999;
2000
550,000
9,716.666
90,691.656
2000
2001
550,000
10,266.666
100,958.322
2001
2002
550,000
10,816.666
111,774.988
2002
r
Average
Maturity--------------------------------
10.208'Years
- iv -
OFFICIAL BID FORM
Honorable Mayor and City Council May 27, 1982
City of Lubbock
Lubbock, Texas
Members of the Council:
Reference is made to your Official Statement and Notice of Sale and Bidding Instructions, dated
April 22, 1982, of $10,950,000 CITY OF LUBBOCK, TEXAS GENERAL OBLIGATION BONDS, SERIES 1982,
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:
Maturity
Interest
Rate
Maturity
Interest
Rate
Interest
Maturity Rate
2-1-1983
%
2-1-1990
%
2-1-1996
%
2-1-1984
%
2-1-1991
%
2-1-1997
%
2-1-1985
%
2-1-1992
%
2-1-1998
%
2-1-1986
%
2-1-1993.
%
2-1-1999
%
2-1-1987
%
2-1-1994
%
2-1-2000
%
2-1-1988
%
2-1-1995
%
2-1-2001
%
2-1-1989
%
2-1-2002
%
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
%
Check of theBank,
n the amount of 2 9,000.00, which represents our Good Fa th
(has been
eposit (is attached ereto or
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 at Bank,
Austin, Texas, not later than 10:00, CDT, on July 1, 1982, or thereafter on a ate t e Bonds
are tendered for delivery, pursuant to the terms set forth to the Notice of Sale and Bidding
Instructions.
Respectfully submitted,
By
Authorized Representat ve
ACCEPTANCE CLAUSE
The above and foregoing bid is hereby in all things accepted by the City of Lubbock, Texas, this
the 27th day of May, 1982.
Mayor
ATTEST:
City Secretary
Return of Good Faith Deposit is hereby acknowledged:
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 April 22, 1982
INTEREST EXEMPT, IN THE OPINION OF BOND COUNSEL, FROM PRESENT FEDERAL INCOME
TAXES UNDER EXISTING STATUTES, REGULATIONS AND COURT DECISIONS
$10,950,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
GENERAL OBLIGATION BONDS, SERIES 1982
Dated: June 1, 1982 Denomination: $5,000
t
Principal and semi-annual interest (February l and August 1) payable at
Citibank, N. A., New York, New York,
or, at the option of the holder, at .
Texas Commerce Bank, National Association, Lubbock, Texas.
First interest coupon due February 1, 1983.
Coupon bearer bonds, not registrable.
These bonds (the "Bonds") were authorized at elections held on various dates, and constitute
direct and voted general obligations of the City of Lubbock, payable from an ad valorem tax
levied, within the limits prescribed by law, on taxable property located within the City.
MATURITY SCHEDULE
Amount Matte-uriity Rate Yield Amount Maturity Rate Yield
525,000 2-1-19884 550,000 2-1-1994*
550,000 2-1-1985 550,000 2-1-1995*
550,000 2-1-1986 550,000 2-1-1996*
550,000 2-1-1987 550,000 2-1-1997*
550,000 2-1-1988 - 550,000 2-1-1998*
550,000 2-1-1989 550,000 2-1-1999*
550,000 2-1-1990 550,000 2-1-2000*
550,000 2-1-1991 550,000 2-1-2001*
550,000 2-1-1992 550,000 2-1-2002*
* The City reserves the right, at its option, to redeem Bonds maturing February 1, 1993,
through February 1, 2002, both inclusive, in whole or any part thereof, on February 1, 1992, or
any interest payment date thereafter, at the par value thereof plus accrued interest to the
date fixed for redemption.
Payment Record: The City has never defaulted
Legality: Attornex General of the State of Texas and
rs. umas, uauen n, oot man Morrow, ttorneys, a as
Delivery: Anticipated on or about July 1, 1982
TABLE OF CONTENTS
- 2 -
Page `
Official Statement:
i
Description of the Bonds ---------------------- ---------------------------------
3
Elected Officials
Appointed Officials ------------------------------------------------------------3
---' ----
3
Consultants and Advisors -------------------------------------
--------
4/5
Introductory Statement ------------------------------------- - ------
5/6::,..
Valuation and Debt'.Information--------------------------------------------- 7--
6/8
Ad Valorem Taxation--------------------------------------------------------=-=-
8
Other Liabilities-----------------------------------------------------------
8
Funded Debt Limitation---------------------------------------------------------
-
9
Valuation and Funded Debt History ----------------------------------------------
9
Taxable Assessed Valuations by Category --------------------- -----------------
10
Estimated Taxable Assessed Valuations ------------------------------------------
10
Authorized General Obligation Bonds --------------------------------------------
10
Estimated General Obligation Bond Program --------------------------------------
Authorized But Unissued General Obligation Bonds of Overlapping Subdivisions
--- 10
Estimated Overlapping Funded Debt Payable From Ad Valorem Taxes ----------------
11
TaxData------------------------;------------------------------------- ----
- 11
12
Tax Rate Limitations----------------------------------------------------------
12
1% Municipal Sales Tax --------------------------------------------- ----
- ,
12
Estimated 1981-82 Tax Year Overlapping Taxes -----------------------------------
.
--
Top Ten Taxpayers ----------------- ------------------------ ---- --
-- { ..
13 l
Interest and Sinking Fund Management Index -------------------------------------
f"
Computation of Self -Supporting Debt --------------------------------------------
13
14.,
Debt Service Requirements - General Obligation Bonds ---------------------------
TaxAdequacy-------------------------------------------------------------------
14
15
PensionFunds------------------------------------------------------------------
16
General Fund Revenues and Expenditures -----------------------------------------
17/18
Lubbock Power and Light --------------------------------------------------------
Condensed Statement of Operations - Electric Light and Power System ------------
18 s'
The Waterworks System ---------------------------------------------------- ----
19/20 i
20
Condensed Statement of Operations - Waterworks System --------------------------
Increase in Water Rates --------------------------------------------------------
20
20
The Sewer System -------------------------------------------- ---------
---
21
Condensed Statement of Operations - Sewer System ------------ -------
-
AirportSystem--------------------------------------------------------
-- 21/22 �.
22
Condensed Statement of Operations - Airport System -----------------------------
General Information Regarding the City and Its Economy ----------------- --------
22/28
rY
Ratings------------------------------------------------------------------------
29
29.
TaxExemption------------------------------------------------------------------
Registration and Qualification of Bonds for Sale ----------- --------------------
29
LegalInvestments in Texas -----------------------------------------------------
29 {
29 j
Legal Opinions and No -Litigation Certificate -----------------------------------
Authenticity of Financial Information ------------------------------------------ 30
30
Financial Advisor--------------------------------------------------------------
30
Certification of the Official Statement ----------------------------------------
�:.
Audited Financial Statements, September 30, 1981, examined by.
Mason, Nickels & Warner, Certified Public Accountants ------------------------
Appendix
The cover page hereof, this page, the appendix included herein -and any addenda,
supplement or f
amendment hereto, are part of the Official Statement.
L
i
- 2 -
ELECTED OFFICIALS
Term
CitCouncil Length of Service Expires Occupation
t c isterecEl tie Mayor pr ;rp 84 President nd Co-Owner.—K-AR
served 4 years previously as
APPOINTEE
April 1986 Partner,'lbe Insurance Group
Agency f
April 1984 Homemakers'
April 1 98 2 Retired Chairman of the Board,
Snook & Aderton, Inc.
April 1984 President, Brown McKee, Inc.
OFFICIALS i
City Councilman
Alan Henry
8
Years
Mayor Pro -Tem
t
Employment
Joan Baker
- 2
Years
Councilwoman
Name
In This Position'
of Lubbock
M. J. Aderton
4
Years
Councilman
J. Robert Massengale
Director
E. Jack Brown
2
Years
Councilman
City Attorney
Appointed 8- 3-78
APPOINTEE
April 1986 Partner,'lbe Insurance Group
Agency f
April 1984 Homemakers'
April 1 98 2 Retired Chairman of the Board,
Snook & Aderton, Inc.
April 1984 President, Brown McKee, Inc.
OFFICIALS i
- 3 -
Length of
t
Employment
-Position and Length
of Time
With city
Name
In This Position'
of Lubbock
Larry J. Cunningham
City Manager
Appointed --
"I5 -pears
J. Robert Massengale
Director
of Finance
Appointed 2-25-80
2 Years.
John C. Ross, Jr..
City Attorney
Appointed 8- 3-78
'3 Years '
Evelyn E. Gaffga
Secretary -Treasurer
Appointed 7- 3-78
3 Years
Samuel W. Wahl
Director
of Water Utilities
.for 12 Years
29 Years:
Carroll McDonald
Director
of Electric Utilities
Appointed 1- 8-79
3 Years
James E. Bertram
Director
of Planning
for 10 Years
13 Years
Jimmy W. Weston
Director
of Community Facilities
for 6 Years
15 Years
Marvin W. Coffee
'.
Director
of Aviation
for 10 Years
11 Years
Denzel W. Percifull
Director
of Public Services
for 4 Years`
5 Years
Rita P. Harmon
Director
-of Personnel,
Appointed 5-16-81
6 Years
CONSULTANTS AND ADVISORS
Auditors -------------------------------
--------------------
Mason, Nickels
& Warner, CPA's _
Lubbock, Texas
Bond Counsel
- Dumas, Huguenin, Boothman &Morrow
Dallas, Texas
Consultants and Engineers, Water
Treatment Plant
Expansion and Airport
--------------------------------------------
Parkhill,
Smith & Cooper
Lubbock, Texas
Engineers for Generator
System -----------------------------------------------
Tippett & Gee
Abilene, Texas
Engineers for 50 Year Water Supply ---------------------------------
Freese and Nichols, Inc.
Fort Worth, Texas
Engineers for Transmission Lines
and Substations -------------------
Hicks & Ragland Company
Lubbock, Texas
Financial Advisor -----------------------------
First Southwest Company
Dallas, Texas
- 3 -
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 $10,950,000 General Obligation Bonds, Series 1982 (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 from'an annual
ad valorem taxTe-vied on all taxable property located in the City within. the limits prescribed
by law. See "Tax Rate Limitations".
Purpose ... Proceeds from the sale of the Bonds will be used fbr Waterworks System and street
ainage improvements. See "Authorized General Obligation Bonds".
Future Bond Issues The City plans to market substantially all of its remaining authorized
but unissued , 07,000 General Obligation Bonds over the period 1983 through 1984. See
"Estimated General Obligation Bond Program".
Administration of the _Ci�t + The .City operates under a Home Rule Charter which was approved
y tee ectorateecem r 27, 1917, and thereafter amended from time to time. The Charter
provides for the Council -Manager form of government for the City. Policy-making and .super-
visory functions are the responsibility of and vested in the Mayor and City Council.
Lits ation Concerning and Validation of the Bonds On February 9, 1982, the City of Lubbock
fileda validation suit under ArticVe 717m-1, s yled Ex Parte City of Lubbock, Texas, -(Cause.
Number 105,924 in the 99th Judicial District Court, Lubbock County) in which the City sought to
validate the authorization and issuance of these 310,950,000 Bonds ($235,000 bonds out of those
approved at an election held on November 9, 1967, and $10,715,000 bonds out of those approved at
an election held on November 21, 1981). No interventions were filed and the Court (on March 8,
1982) entered a judgment upholding the validity of the Bonds. No appeal has been taken... The
,judgment reads in part:
"That this Judgment shall be forever binding and conclusive against the City .of
Lubbock, Texas, and all other parties to this cause, including those before the Court
and all other parties irrespective of whether such parties are within the description
of parties in interest contained in the notices of this proceeding heretofore pub-
lished, and this Judgment shall constitute a permanent.injunction against the insti-
tution by,any person of any action or proceeding contesting the validity of said
elections of November 9, 1967, and November 21, 1981; or the procedures relating
thereto, and from contesting the validity of said $10,950,000 CITY OF LUBBOCK, TEXAS,
GENERAL OBLIGATION BONDS, SERIES 1982, or the validity of provisions made for their
payment or the issuance, sale or delivery of said bonds or the restraint or hindrance
of any contract lawfully entered into pursuant to the purposes for which said bonds
were voted."
Petitions Affectin the Tax Rate, Assessed Valuation and Tax Lev On July 12, 1979, three
petitions calling for an election to amend the ty s Home Rue Charter in relation to ad
valorem taxes were filed with the City Council. These petitions; separately, ask for the
following amendments: (1) limitation of the City's maximum tax rate to $1.12 per $100 Assessed
Valuation; (2) limitation of the ratio at which property can be assessed for; ad valorem taxes to
60% of fair market value; and (3) provide that, "The annual ad valorem taxes levied by the
governing authority of the City government shall not be increased on the basis of an increase in
the rate of evaluation of taxable property now on the assessed valuation of property subject to
tax, from the preceding tax year, without first securing approval of said increase at an
election submitting said proposed increase to the voters of the City of Lubbock. Said in-
crease, if any, requiring a majority vote for its approval."*
* Text of the 3rd petition quoted verbatim.
On July 26, 1979, the City Attorney reported to the City Council that, in his opinion, the
provisions of the petitions, if incorporated into the City Charter, would contravene provisions
of the Texas Constitution (the Tax Relief Amendment) and general laws recently enacted by the
Texas Legislature and recommended that no charter amendment election be called at this time.
- 4 -
The City Council authorized the City Attorney to,. file a declaratory judgment action in the
District Court of Lubbock County to determine whether the Council, under such circumstances,
would be required to call such an'electipniand,,to 4eter1n1ne the rights of the petitioners, other
citizens and the City Council in the 'p'r'6 ises, YSuch' 9awsuit'was filed July 26, 1979, in the
140th Judicial district Court of Lubbock County, and upon rendition of a final judgment, the
Council will proceed in the manner directed by the Court., On June 10, 1980, the Court
entertained motions for summary judgment filed by both parties. On June 27, 1980, the Court, by
-summary judgment, ruled in favor of the City in all respects, finding that the City was under no
legal duty to call an election for the submission of the 3 proposed charter amendments and that
all 3 proposed charter amendments have been withdrawn from the field in which the initiatory
process is operative by the Constitution and the general law of this State and the property tax
code (SB 621). The defendants appealed to the Court of Civil Appeals for the Seventh Supreme
Judicial District of Texas (Amarillo, Texas), which reversed and remanded the District Court
judgment. The City filed a motion for rehearing which was denied by the Court of Civil Appeals,
Amarillo. The City has filed an application for writ of error with the Supreme Court of Texas.
No representation can be made at this time as to the ultimate result of the case on appeal or
when any judgment will become final.
Other Considerations .. Nevertheless, in the opinion of the City Attorney and Bond Counsel,
any charter amendment which would prevent the payment of outstanding bonds (and interest
thereon) issued prior to the adoption of the amendment by reducing the maximum tax rate or limit
or the assessed valuation of taxable property (by changing the basis or manner of assessing
property) would be an impairment of the contractual obligation with holders of the outstanding
bonds and therefore not applicable thereto.
VALUATION AND DEBT INFORMATION
1981 Market (Appraised) Valuation $2,807,601,557.
Less: Local Exemptions at Market (Appraised) Value (1)
Over 65 $99,248,070
Disabled Veterans 2,072,270
Disabled 4,720,090 _ 106,040,430
1981 Taxable Assessed Valuation (100% of
1981 Net Appraised Valuation) (2) $2,701;561,127
City Funded Debt Payable From Ad Valorem Taxes
(As of 3-15-82) (See Notes 3, 4 and 5):
General Purpose Bonds $ 26,534.798 -
Waterworks Bonds 27,817,858
Sewer System Bonds 3,011,344
The Series 1982 Bonds 10,950,000
Total Funded Debt .ay
able from Ad -Valorem Taxes $ 68,320,000
Less Self-supporting Debt:
Waterworks Bonds $27,817,858
Sewer System Bonds (including $4,107,344 of this issue) 4 357 015
Tota General Purpose General Obligation Debt __ S 36,344,798
Interest and Sinking Fund, All General Obligation Bonds,
As of 3-15-82 . S . 1,556,470
Ratio Total Funded Debt to Taxable Assessed Valuation ----------- -____ 2,53%
Ratio Total General Purpose General Obligation Debt to Taxable Assessed Valuation ---- 1.35%
1982 Estimated Population 178,282*Per —
30
Per Capita Capita tal General Purp se Valuationessed GeneralOb igation De t53. $204.14
Area 7_91-1q
Suare Miles
* Source - City of Lubbock, Texas.
- 5 -
Note 1: These exemptions apply to either real or personal property assessments to a maximum
of: (1) $16,700 market value of a residence homestead for those 65 years of age or older; (2)
$3,000 Assessed Valuation for disabled veterans; and (3) $10,000 market value of a residence
homestead for the disabled. These exemptions may be declared when taxes are paid, and -the
City's Tax Assessor -Collector estimates that some additional exemptions will be recorded.
Note 2: Assessed values of the capital shares of 10 banks, which are under litigation, are not
included in the 1981 Taxable Assessed Valuation.
Note 3: The City of Lubbock transfers to the General Fund each -fiscal year:
(1) ' from Water Revenue Fund surplus, an amount at least equivalent to debt
service requirements on Waterworks System General Obligation Bonds, and
(2)from Sewer Revenue Fund surplus, an amount at least equivalent to debt
service requirements on Sewer System General Obligation Bonds.
Since both Waterworks and Sewer General Obligation Bonds are self-supporting, due to these
transfers, the City's General Purpose General Obligation Debt has been calculated as shown.
Note 4: As of 3-15-82 the above statement of indebtedness does not include the following
presently outstanding Revenue Bonds, as they are payable solely from the net revenues derived
from the Systems: $140,000 Waterworks System Revenue Bonds and $23,225,000 Electric Light and
Power System Revenue Bonds. The statement also does not include the.following: $2,350,000
Airport Revenue Bonds, presently outstanding, as these bonds are payable solely from the gross
revenues derived from the City of Lubbock Airport. In addition, $1,195,000 General Obligation
Bonds, due March 15, 1982, have been deducted from outstanding General Obligation Debt.
Note 5: The City's last General Obligation Bond sale was April 23, 1981, when $16,750,000
General Obligation Bonds, Series 1981, were offered and sold.
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 assess-
ment 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
5% except by a referendum vote. 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%;
-6-
.b. Reducing the number of qualified voters necessary to petition for a1referendum
election to 10%;
c. Extending the period available to collect signatures on a petition for a refer-
endum 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).t
5. 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 15% 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).
8. The establishment and application of uniform discovery and appraisal procedures on all
types of business inventories without regard to the nature of the property comprising
the inventory.
9. 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 account-
ability 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 January 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 has 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.
-7-
t
4. Since a program of on-going reappraisal of real property has been maintained by the City
of Lubbock for many years, the City of Lubbock is of the opinion that major reappraisals of all
property in the City will not be necessary.
5. The City Council of the City of Lubbock has not acted to grant the exemption of up to 40%
of market value of a residence homestead from ad valorem taxation beginning in 1982 as per-
mitted under a Constitutional Amendment authorized in November, 1981.
OTHER LIABILITIES
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 Jund. The outstanding principal balance on 9-30-81 was
$260,609.20 which matures in 9 annual installments, September 1, 1982, through September 1,
1990, with interest calculated at -7%.
Note Amortization Schedule
Fiscal
Year
Ending Outstanding
9-30Principal Interest Total • Balance
T98�
$260,609.20
1982 $ 21,757.20 $ 18,242.80 $ 40,000.00 238,852.00
1983 23,280.40 16,719.60 40,000.00 215,571.60
1984 24,910.00 15,090.00 40,000.00 190,661.60
1985 26,653.60 13,346.40- 40,000.00 164,008.00
1986 28,519.60 11,480.40 40,000.00 135,488.40
1987 30,515.60 9,484.40 40,000.00 104,972.80
1988 32,652.00 7,348.00 40,000.00 72,320.80
1989 34,937.60 5,062.40 40,000.00 37,383.20
1990 37,383.20 2,616.80 40,000.00 -0-
$260,609.20 $ 99,390.80 $360,000.00
In order to provide for a majority of each annual installment on the note, the City Council
directed the investment of $399,324.00 of General Fund surplus cash in $384,000.00 par value of
U. S. Treasury Bonds, the interest earnings on these bonds to be applied to the annual
$40,000.00 installment on the note. Annual interest earnings on the bonds total $30,990.00,
leaving a balance of $9,010.00 to be budgeted from the General Fund each year.
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".
- 8 -
Ratio Funded Debt
to Taxable
Assessed Valuation
7.06%
7.16%
7.46%
6.34%
5.17%
4.31%
3.81%
3.63%
3.51%
3.94%
2.51%
(1) For all years Taxable Assessed Valuations are net of any exemptions. The City's Tax
Assessor -Collector maintains an on-going reappraisal of Real Property in the City, reappraising
approximately 1/4 of the City each. year.
(2) Taxable Assessed Valuations for Fiscal Periods 1970-71 through 1980-81 have been adjusted
for supplements and corrections to the tax rolls made subsequent to certification of the rolls.
(3) Anticipated.
TAXABLE ASSESSED VALUATIONS BY CATEGORY
Property
Assessment
VALUATION AND FUNDED DEBT HISTORY
Fiscal
As % of
Appraised
Period
Taxable
Basis
Year
Ending
9 -30
Assessed
Valuation(l)
of
Assessment
Funded Debt Out -
standin Year End
T976=7f
1971-72
X317,204,665(2
630,]51,893(2
--
60%
000
44,459,000
1972-73
659,742,523(2
60%
47,266,000
1973-74
716,225,294 2
60%
53,440,000
1974-75
797,387,868(2)
60%
50,546,000
1975-76
923,557,647(2
60%
47,763,000
1976-77
1,014,049,149(2
60%
43,682,000
1977-78
1,104,591,631(2
60%
42,107,000
1978-79
1,298,016,250(2)
6D%
47,086,000
1979-80
1,403,475,893(2)
60%
49,301,000
1980-81
1,565,733,545(2)
60%
61,710,000
1981-82
2,701,561,127
100%
67,900,000(3)
Ratio Funded Debt
to Taxable
Assessed Valuation
7.06%
7.16%
7.46%
6.34%
5.17%
4.31%
3.81%
3.63%
3.51%
3.94%
2.51%
(1) For all years Taxable Assessed Valuations are net of any exemptions. The City's Tax
Assessor -Collector maintains an on-going reappraisal of Real Property in the City, reappraising
approximately 1/4 of the City each. year.
(2) Taxable Assessed Valuations for Fiscal Periods 1970-71 through 1980-81 have been adjusted
for supplements and corrections to the tax rolls made subsequent to certification of the rolls.
(3) Anticipated.
TAXABLE ASSESSED VALUATIONS BY CATEGORY
* As of 10-1 each year.
(3) Personal automobiles became exempt from ad valorem taxes in 1979.
- 9 -
Property
Assessment
Adjustments
As % of
Appraised
(lj Personal
Real Personal Property:
For
Corrections
And
(2)
Taxable
Year
Vaallu�e__
Estate Property Automobile
D �d,971,0
Supplements
.
Assessed
Valuation
1971
60%
7 ,501 6
480,135,900 134,524,140 16,722,500
1,230,647
$ 617,2 605
630,151,893
1972
1973
60%
60%
494,016,482 147,500,760 18,501,264
527,814,930 158,183,100 28,166,355
275,983
2,060,909
659,742,523
716,225,294
1974
1915
60%
60%
583,951,000 179,961,580 37,971,470
650,705,600 189,955,610 51,291,080
(4,496,182)
31,605,357
797,381,868
923,557,647
1976
1977
60%
60%
705,954,020 223,968,871 68,042,430
761,704,740 251,890,585 94,912,585
16,083,828
(3,916,279)
1,014,049,149
1,104,591,631
1978
1979
60%
60%
941,202,840 274,932,421 93,108,47211,227,483
1,105,749,615 299,111,144 10,609,830(3)12,000,696
1,298,016,250
1,403,475,893
1980
1981
60%
100%
1,195,978,655 323,734,323 9,981,770
2,106,697,370 576,327,753 18,536,004
36,038,797
1,565,733,545
N.A.
2,701,561,127
(1) The City's Tax Assessor -Collector maintains an on-going reappraisal program of real pro-
perty, reappraising approximately 1/4 of
(2) Taxable
real property in the
Assessed Valuations for 1974-1980 are net after
City each year.
the following exemptions
(in terms
of Assessed Valuation):
Over 65 Disabled
Homestead Veteran
Disabled
Year Exemptions Exemptions
mo i' of Effective
'Exemptions
Not
1975 13,323,150 Not Effective
ect ie
Not Effective
1976 11,888,760 $1,307,240
1977 14,159,830 1,646,220
Not Effective
Not Effective
1978 34,991,600* 1,549,890*
1979 49,793,340* 1,928,450*
Not Effective
Not Effective
1980 52,926,900* 2,147,280*
1981
Not Effective
99,248,070* 2,072,270*
$4,720,090*
* As of 10-1 each year.
(3) Personal automobiles became exempt from ad valorem taxes in 1979.
- 9 -
Fire Department - -
ESTIMATED TAXABLE ASSESSED VALUATIONS (1)
33 d6
3Ib 95a,bM
$43,907.000
ESTIMATED
Estimated
BOND PROGRAM
Anticipated Issuance
Taxable
1983
Fiscal
Assessed
Total
Waterworks. System
Sewer System
M
1,423,000
Period
Valuation
a
8,075,000
.Street Improvements
3,164,000
1983-84
3,628,248,460
7,304,000
Storm Sewer and Drainage
-0-
1984-85
4,188,557,620
373,000
Fire Station (for adjacent
(1) All estimates are net
after estimated exemptions at 100% of net
appraised',value.
Source: Lubbock County Appraisal
District.
310,000
627,000
937,000
AUTHORIZED
GENERAL OBLIGATION BONDS
1,689 000
3I6 933
-0-
12 042 000
,90 , 0
AUTHORIZED BUT UNISSUED GENERAL OBLIGATION
Amount
Amount ;
Date
Amount Heretofore
Being
Unissued
Purpose
Authorized
�5-'21-77—
Authorized Issued
Issued
Balance
aterworks System
Waterworks System
8- 9-80
$16,775,000 3II�66
21,000,000 16,200,000
6-
-0-.
I5�6�6
4,800,000
Waterworks System
11-21-81
5,226,000 -0-
-0-
5,226,000
Sewer System
5-21-77
3,303,000 2,030,000
-0-'
1,273,000
Sewer System
11-21-81
7,892,000 -0-
1,090,000;
6,802,000
Street Improvements
5-21-77
4,782,000 3,693,000
-0-1
1,089,000
Street Improvements
11-21-81
9,495,000 -0-.
3,280,000
6,215,000
Storm Sewer and Drainage
11- 9-67
1,950,000 1,715,000'
235,000
-0-
Storm Sewer and Drainage
5-21-77
473,000 100,000
-0-
373,000
Fire Station (for adjacent
areas, when annexed)
5-21-77
310,000 -0-
-0-
310,000
Health Department
11-21-81
1,000,000 -0-
1,000,000
-0- ,
Airport
11-21-81
12,854,000. -0-
812,000
12,042,000
Traffic
11-21-81
4,283,000 -0-
4,263,000
-0-
11 21 81
877 000 -0-
250 000
627 000
Fire Department - -
$96,220;gg
33 d6
3Ib 95a,bM
$43,907.000
ESTIMATED
GENERAL OBLIGATION
BOND PROGRAM
Anticipated Issuance
1983
1984
1985
Total
Waterworks. System
Sewer System
M
1,423,000
$3.a,�—�-
5,352,000
.
1,300,000
a
8,075,000
.Street Improvements
3,164,000
4,065,000
75,000
7,304,000
Storm Sewer and Drainage
-0-
373,000
-0-
373,000
Fire Station (for adjacent
areas, when annexed)
-0-
310,000
627,000
937,000
Airport
10 353 000
1,689 000
3I6 933
-0-
12 042 000
,90 , 0
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.
- 10 -
ESTIMATED OVERLAPPING FUNDED DEBT PAYABLE FROM AD VALOREM TAXES
rk o -
Estimated
Taxing Jurisdiction Total
City of Lubbock-- Funded Debt
3
%
a licable
Overlapping
Funded Debt
Lubbock Independent School District
$(1
16,150,000(2
96.53%
36�3�798
15,589,595
Lubbock County
Lubbock County Hospital District
-0-
-G-
93.16%
93.16%
-0-
Lubbock County water Control and
-0-
Improvement District No. 1
Lubbock-Cooper Independent School District
-0-
1,268,000
93.16x
3.16
Frenship Independent -School District
Roosevelt Independent School District
3,785,374
21.41%
44,887
810,449
Idalou-,Independent School District
491,000
1,228,000(3)
3.39%
0.01%
16,645.
123
TOTAL OVERLAPPING FUNDED _DEBT ^
$52,856,497
Ratio Overlapping Funded Debt to Taxable Assessed Valuation --------------------------1.96%
_
...Per Capita•Overlapping Funded Debt • $296.48 -
(1j General Purpose General Obligation Debt, including
the Bonds.
(2j Includes $11.900,000 Bonds sold 1-21-82.
'
(3 Includes $650,000 Bonds to be offered for sale
4'22-82.
TAX DATA
s
`
(Year Ung 9-30)
Distribution
Tax Tax enera _.. oar -of City nterest an
Yet Rate
F3ind30�
(1)
% Current
% Total
Development SinkingFund
g
Ta
Collections
Collections
1971-72 1.14 0.3700 0.05 0.1200
11972-73 1.29 0.3600 0.05
7.183.732
x
94.06%
97.92%
0.8800
1973-74 1.36 0.4600 0.05_ 0.8500
8,510.678
_9,740,664
93.72%
93.18%
96:41%
96'.39%
1974-75 1.36 0.5400 0.05 0.7700
1975-76 1.36' 0.7000 0.05 0.6100
10,844,475
Y2,560.384
93.16%
93.43% ' ''
97.26% i
1976-77 '1.41 0.7500 0.05 0.6100
1977-78 1.'41 0.8600
14,298,093
93.09%
97.19%
95.76%
0.05 0.5000
1978-79 1.12 0.7500- 0.05 0.3200
15,574,742
14537782
93.84%
92.75%
96.41%
95.39%`
1979-80 1.12 0.6800 0.05 0.3900
1980-81 1.10 0.6800 0.05 0.3700
15,718,930 '..
94.50%
98.68%
1981-82 0.66 0.3225 0.05 0.2875
17,223,069
,17,830,3D3
94.00%
90.74X*
98.51%'
92,220
Part year only, through 2-28-82.
(I) "Tax Levy" and "Percent Current Collections• for Tax Years 1970-71 through
been adjusted to reflect final corrections and supplements to the
1980-81 have
` end of each fiscal year.
tax
rolls as audited
at the
Property within the -City is assessed as of January 1 of
the
each year; taxes become due
October l of r
same year, and become delinquent on January 31 of
not permitted. Discounts are not allowed.
the following
year. Split
payments are
Penalty and interest charges for late payment are:
Month
Paid Penalty Interest Total
e�ruary
bid
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.
r
{
i
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 x
prescribed by law. Article XI, Section 5, of the.Texas Constitution is applicable to the City
of Lubbock, and limits its maximum ad valorem tax rate to $2.50 per $100 assessed valuation (for
all city purposes). The City operates, under a Home Rule Charter which adopts the Constitu-
tional provisions.
1% MUNICIPAL SALES TAX
(Effective 4-1-68)
The City has adopted the provisions of Article 1066e, V.A.T.C.'S., and levies a 1% Sales and Use
Tax within the City. This tax is collected and enforced by the State of Texas Comptroller of
Public Accounts, who remits the proceeds, less a service fee, to the City monthly. -Revenues
from this source for the periods shown have been:
`Fiscal Net Estimated r;
Year Collections % of Equivalent Net
Ended Remitted Ad Valorem Ad Valorem Collections
9-30 to Cit Tax Lev Tax Rate Per Capita !:
-1971- -$-,s - —-- _- ;
1972 3,086,164 42.96% . 0.490 �.
1973 3,780,338 44.42% 0.573 '
1974 4,537,048 "_: 46.58% 0.634
1975 4,763,912 `43.93% 0.597
1976 5,690,591 45.31% 0.616 --
.1917 6,806,680 47.61% 0.671 --
1978 7,421,615 47.65% 0.672 --
1979 8,160,916 56.14% 0.629
1980 8,722,450 55.49% 0.621 '~ ;50.14*
1981 9,791,566 56.85% 0.625 --
* Based on U.S. Census, 1980, of 173,979.
ESTIMATED 1981-82 TAX YEAR OVERLAPPING TAXES
Set forth below'.is an estimate of all 1981-82 Tax Year .taxes levied on an average $50,000
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: w
Estimated ~
Appraised 1981 Estimated i
and Assessed Tax 1981 Taxes
Taxing Jurisdiction Value Rate Levied j.
y o Lu oc 0* 3FUM .bis i
Lubbock Independent School District 45,000** 0.99000 445.50
Lubbock County 30,000 0.31000 93.00
Lubbock County Hospital District f 30,000 0.28314 84.94
High Plains Underground Water Con-
servation District No. 1 .30,000 0.0100 3.00
Estimated Total 1981-82 Ad Valorem Taxes $956.44
Market value.
** After $5,000 market value residence homestead exemption.
- 13 -
TOP TEN TAXPAYERS
1981
% of 1981
Taxable
Taxable
Name of Taxpayer
—Incorporated
Nature of Property
Assessed
Assessed
Valuation
Texas Instruments
Southwestern Bell Telephone Company
ectron cs Manu acturer
Telephone Utility
r7r,r�
65,551,390
2.42%
Southwestern Public Service Company
Furr's, Inc.
Electric Utility
30,603,540
1.13%
South Plains Mall
Retail Groceries
Regional Shopping Center
22427812
20,145,810
0.83%
0.74%
Energas Company (a division of
Pioneer Corporation)
Plains Co-op Oil Mill
Gas Utility
Oil Mill
14,281,180
0.52%
Farmers Co -Op Compress
Cotton Compress
13,200,710
12,809,540
0.49%
0.47%
_ International Business Machines
Waples-Platter West
Computers, Business Machines
9,777,260
0.36%
Wholesale Groceries
TVT.T
8
I�0%
INTEREST AND
SINKING FUND MANAGEMENT INDEX
General Obligation Debt Service Requirements
for Fiscal.Year Ending 9-30-82
----- $8,955,282
Interest and Sinking Fund, All General
1981 Interest and Sinking Fund Tax Levy
Obligation Issues, 9-30-81 -- $
@ 95%
904,102
Collection ---------------------------------------
Estimated Delinquent Tax Collections,
----------------
as budgeted ------------------;
7,378,639
261,258
Estimated Income from Other Sources, as
budgeted -------------------
978.125
9,522,124
EstimatedSurplus ----------------------------------------------------
----------- $
666,842
COMPUTATION OF -SELF-SUPPORTING DEBT
Waterworks
Sewer
Net System Revenue Available
for Fiscal Year System
System
Ending 9-30-81 $6,964,101
Less: Revenue Bond Requirements, 1981-82
$1,047,306
Fiscal Year
144,760
_O_'
Balance Available for Other Purposes $6,819,341
$1,047,306
System General Obligation Bond Requirements,
1981-82 Fiscal Year
4,458,926
489,031
Balance
$2,360,415
$ 558,275
Percentage of System General
Obligation Bonds
Self -Supporting
100.00%'
100.00%
- 13 -
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• PENSION FUNDS
Texas Municipal Retirement. System ... All permanent, full-time City employees who are not
firemen and who were ess t an years of age when employed by the City are covered by the
Texas Municipal Retirement System. The System is a contributory, annuity -purchase type plan
which is covered by a State statute and is administered by six trustees appointed by the
Governor of Texas. The System operates independently of its member cities.
The City of Lubbock joined the System in 1950 to supplement Social Security. Options offered'
under the System, and adopted by the City, include current, prior and antecedent service
credits, 20 year vesting, updated service credit, and regular and supplemental disability
benefits. An employee who retires receives an annuity based on the 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 1981 contribution rate was 7.51% of gross payroll and the 1982
contribution rate is 6.73%. Enabling statutes prohibit any member city from adopting options
which impose liabilities that cannot be amortized over 25 years within a specified statutory
rate.
The actuarially computed unfunded prior service liability as of December 31, 1980, was
$9,348,364; this liability is being actuarially amortized annually through 2005.
City of Lubbock assets held by the System on December 31, 1980, were $1,633,429 for prior
service liabilities and $15,321,579 for accrued current service liabilities. Unfunded accrued
current service liabilities totaled $528,348 on December 31, 1980, and are being liquidated by
a five year amortization adjustment included in normal contribution rates.
s
Fireman's Relief and Retirement Fund ... City of Lubbock firemen are members of the locally 1
administered Lubbock firemen's Re Tef 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. i
Firemen are not covered by Social Security. j.
The fund is governed by seven trustees, three firemen, two outside trustees (one appointed by
the firemen trustee's and one appointed by the Mayor), the Mayor or his representative and the �.
Director of Finance of the City. Execution of the act is monitored by the Firemen's Pension i
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
9% of full salary into the fund and the City must contribute alike amount;.however,.the City i.
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 1
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 10.99%.'
An actuarial evaluation as of 3-31-80 was conducted by the firm of Rudd and Wisdom, Inc.,
Austin, Texas. The valuation balance sheet estimated unfunded liabilities of $5,336,161. The
study found that the plan would be actuarially sound if a funding program is maintained which
would completely amortize this unfunded liability in approximately 25 years, and concludes
'Since your present funding period is approximately 19 years, we consider your plan, based on
present levels of benefits and contributions, to be actuarially sound
- 16 -
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- 16 -
LUBBOCK ROWER AND LIGHT
Lubbock Power and Light was established in 1916, and, is presently the largest municipal system
in the West Texas region and the thirdflarg�est fin th6-State of Texas. The municipal system
competes directly with a privately owned utility company within the corporate limits of the
City of Lubbock. Electric rates in the City are Aet by City Council Ordinance and are the same
for both power systems.
The private system, Southwestern Public Service Company, was granted a new 20 -year franchise in
1964, which is subject to certain minor amendments each five year period thereafter. The
company pays the City a franchise tax of 2% of its gross receipts. 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 and has two generating sta-
tions located within the City. These plants are geographically separated from one to seven
miles and deliver bulk power to substations through a 69 KV transmission loop system.
In December, 1981 the City commenced buying 10 MW of power through an interconnection with
Southwestern Public Service Company.
Generating Stations ... Total generating capacity is 216,500 KW. Gas turbines and I.C.
gene-
rators provide e system with 55,500 KW of ready reserve and emergency and peaking service. Generating units consist of the following tart generation for
,
Since the completion of the interconnection with Southwestern Public Service Company, Station
#2 has been kept on standby and will be used in the future for peak power -purposes only.
Transmission and Distribution ... A 69,000 volt (69 KV) transmission loop system, 36 mires
length, provides u in
power to six 20 MVA -69,000/12470 volt -substations. A second
transmission loop system insulated for operation at 115 KV is under constr69 KV
in
uction.
The distribution system includes approximately 680 miles of overhead distribution lines and
approximately 110 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,
1981 was 681,584,750 KWH with a peak demand of 149,500 KW.
Construction Program ... A major transmission system and distribution system construction and
improvement program is under way utilizing proceeds of $9,000,000 Electric Light and Power
System Revenue Bonds sold in August, 1981:
Transmission System ... The transmission system program includes upgrading of 3 major
substations, extension of a 69 KV transmission line, extension of a second circuit of
an existing 115 KV transmission line, construction of a major substation in Northeast
Lubbock, upgrading of computer capabilities, and installation of remotes in all major
substations to fully coordinate relay and line switching capabilities.
Distribution System ... The program includes extension of and improvements to the
ex s ing 5MFI ution system including additional distribution circuits for substa-
tions, extensions to new service areas, transformers, meter pedestals, poles and
crossarms, regulators, capacitors, meters, service lines and other appurtenances.
- 17 -
Year
Generator
Manufacturer
Installed
Station
Prime Mover
Fuel
Capacity
i��
or berg—
Nordberg
1947
�'—"
2
Dieselua
Fuel
Westinghouse
1952
2
Diesel
Steam Turbine
Dual
Gas
Fuel
or Oil
2,500
11,500
Westinghouse
Westinghouse
1953
1957
2
2
Steam Turbine
Gas
or Oil
11,500
Westinghouse
1958
2
Steam Turbine
Steam Turbine
Gas
Gas
or Oil
or Oil
22,000
22,000
Westinghouse
General Electric
1964
1965
Holly
Holly
Gas Turbine
Steam Turbine
Gas
Gas
or Oil
12,500
Worthington
General Electric
1971
1974
Holly
Holly
Gas Turbine
Gas
Gas
or Oil
or Oil
44,000
18,000
General Electric
1978
Holly
Turbine
Steam Turbine.
Gas
Gas
or Oil
or Oil
20,000
50 000
6!500 ,
,
Since the completion of the interconnection with Southwestern Public Service Company, Station
#2 has been kept on standby and will be used in the future for peak power -purposes only.
Transmission and Distribution ... A 69,000 volt (69 KV) transmission loop system, 36 mires
length, provides u in
power to six 20 MVA -69,000/12470 volt -substations. A second
transmission loop system insulated for operation at 115 KV is under constr69 KV
in
uction.
The distribution system includes approximately 680 miles of overhead distribution lines and
approximately 110 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,
1981 was 681,584,750 KWH with a peak demand of 149,500 KW.
Construction Program ... A major transmission system and distribution system construction and
improvement program is under way utilizing proceeds of $9,000,000 Electric Light and Power
System Revenue Bonds sold in August, 1981:
Transmission System ... The transmission system program includes upgrading of 3 major
substations, extension of a 69 KV transmission line, extension of a second circuit of
an existing 115 KV transmission line, construction of a major substation in Northeast
Lubbock, upgrading of computer capabilities, and installation of remotes in all major
substations to fully coordinate relay and line switching capabilities.
Distribution System ... The program includes extension of and improvements to the
ex s ing 5MFI ution system including additional distribution circuits for substa-
tions, extensions to new service areas, transformers, meter pedestals, poles and
crossarms, regulators, capacitors, meters, service lines and other appurtenances.
- 17 -
Interconnection ... An interconnection with Southwestern Public Service Company has been comp-
leted and the City commenced buying power on December 1, 1981. Lubbock Power and Light has
contracted with Southwestern Public Service Company for the purchase of 10 MW of power and, in
addition, the contract calls for a total capacity of 100 MW upon proper notice. Southwestern
operates in Lubbock 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 Suepl .. Primary fuel supply for Lubbock's generating system is natural gas which is
supplied -by Westar Transmission Company, a division of Pioneer Corporation, Amarillo, Texas,
under a long term contract. 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 Westar indicates that 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 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 substant-
ially extended. The newest Holly steam generator has a tri -fuel capability as it is designed to
burn natural gas, fuel oil and crude oil.
In the City's opinion, its fuel supply is favorably positioned due to the long term natural gas
reserves presently owned, contracted for and under development by Westar and other divisions of
Pioneer Corporation.
Carbon Dioxide Recover ... The Carbon -Dioxide Technology Corporation, Houston, Texas, is con-
structing
on-
s ruct ng a carbon oxide (CO2) recovery plant on a.three acre site adjacent to the Holly
Plant. CO2 will be recovered from the Holly Plant stack gasses for use in a tertiary -level oil
recovery program in nearby Garza County fields. Estimated cost of the plant is $30,000,000;
estimated annual revenues to Lubbock Power and Light include $360,000 from sale of CO2, and
$150,000 from the sale of electric power. Completion is projected for September, 1982.
Fiscal Year Ended
Operating Revenues
Non -Operating Income
Gross Income
Operating Expense
(excluding depreciation)
Net Revenue
Electric Connections
CONDENSED STATEMENT OF OPERATIONS
ELECTRIC LIGHT AND OWER SYSTEM
9-30-81 9-30-80 9-30-79
34,002,728 SZ9 9,_8 � $23,619,71b
690,388 731,676 826,106
$34,693,116 $29,891,540 $24,445,824
9-30-78 9-30-77
624,791 945,564
$23,072;509 $20,119,844
30,393,827 24,870,851 20,077,479 17,355,243 14,292,538
$ 4,299,289 $ 5,020,689 $ 4,368,345 $.5,117,266 $ 5,827,306
33,370 32,051 30,390 29,204 28,352
Maximum Principal and Interest Requirements, Electric System
Revenue Bonds, Fiscal Year Ending 9-30-83 -----------=------------------- $ 3,734,017
Coverage by Net Income, Fiscal Year Ended 9-30-81 ------------------------------ 1.15 Times
Electric Light and Power System Revenue Bonds Outstanding, 9-30-B1 ------------- $23,450,000
Interest and Sinking Fund and Reserve Fund, Cash and Investments,
9-30-81---------------------------------------------------------------------- $ 3,044,158
- 18 -
THE WATERWORKS SYSTEM
Water Su 1 .. Primary source of water for Lubbock is the Canadian River Municipal Water
Author ty 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 re-
ceived 30,536 acre feet of water from the Authority in Calendar Year 1981, approximately 84% 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.
Other Water SuRply Sources . Part of the City's water supply is obtained from 230 water wells,
all producing trom 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 75,000 acres of water rights. 19,500
acres have been developed with 120 producing wells. The City has recently contracted for the
annual purchase of a minimum of 1,350 acre feet of water from a private source adjacent to the
Sand Hills tract. This water source is now used primarily for peaking purposes.
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. Devel-
opment 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.
equ�The System .. Lubbock's Waterworks System is modern and efficient and property, plant and
valued at $44,355,362, after depreciation and including cost of construction work in
progress, at September 30, 1981. Equipment includes remote control and communication facili-
ties 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 36.0 million gallons in 1981.
Storage capacity consists of 14 ground storage reservoirs and 3 elevated steel storage tanks,
providing a total storage capacity of 59,350,000 gallons. Storage capacity is entirely ade-
quate for peak hour and fire protection requirements.
Water Treatment Facilities . A water treatment plant for the treatment of water received from
the Canadian River Municipal Water Authority ("CRMWA") was completed in 1967. Maximum daily
input of "CRMWA" water is 42MGD under Lubbock's contract. Present capacity of the plant is
56MGD. The plant also treats "CRMWA" water for several other members of the Authority; the City
of Lubbock is fully reimbursed for.these costs.
Water System Improvement Program ... A'program of water treatment and supply expansion and
UTstri ut on system improvements are in progress, including: construction of a 1,200 acre foot
open storage reservoir near the City's present water treatment plant to permit the storage of
surplus water received from the Canadian River Municipal Water Authority in off-peak periods.
"CRMWA" deliveries are limited by contract to 42 MGD; the reservoir will permit storage of
water when demand does not require full utilization of contract allocation ... Water treatment
plant expansion designed to increase the plant's treatment capability from 56 MGD to 75 MGD,
permitting treatment of stored surplus water as well as delivered water during peak demand
- 19 -
periods Construction of an additional high service pump station at the treatment plant with
associated transmission distribution mains into the distribution system to permit expanded
delivery of treated water ... Development of 25 wells and collection system expansion at the
Bailey County Well Field ... Distribution System Improvements include construction of a pump
station and main lines.
Waterworks Revenue Bonds ... There are no authorized but unissued Waterworks Revenue Bonds.
CONDENSED STATEMENT OF OPERATIONS
.WATERWORKS SYSTEM
Fiscal Year Ended i 9-30-81 9-30-80 9-30-79 9-30-78 9-30-77
Operating Revenues ►-1�4$ 8,828,597 j3;$18_,M T7—,OU 3
Non -Operating Income 3,058,647 1,213,711 841,414 480,397 277,718
Gross Income $14,247,801 $10,042,308 $7,660,112 $7,481,750 $5,293,162
Operating Expense
(excluding depreciation)* 7,283,700 6,927,147 5,957,631 5,130,938 4,260,222
Net Revenue $ 6,964,101 $ 3,115,161 $1,702,481 $2,350,812 $1,032,940
Water Meters 55,511 54,589 53,458 52,408 50,442
* Operating expense includes construction repayment costs and operating and maintenance
charges paid to the Canadian River Municipal Water Authority.
Maximum Principal and Interest Requirements, Waterworks Revenue Bonds,
Fiscal Year Ending 9-30-82 (final principal maturity 6-1-82) ------------------ $ 144,760
Coverage Based on Net Income, Fiscal Year Ended 9-30-81 ------------------------- 48.1 Times
Waterworks System Revenue Bonds Outstanding, 9-30-81 ----------=----------------- $ 140,000
Interest and Sinking Fund and Reserve Fund, 9-30-81 ----------------------------- $1,338,541
INCREASE IN WATER RATES
Effective OctoFer 1
Old Rates
(Effective
10-1-80)
New Rates
(Effective
10-1-81)
First 1,OZi�gaf
ons
Minimum
First 1,000
gallons
$4.9b (Minimum)
Next 49,000
gallons
0.93/M gallons
Next 49,000
gallons
1.03/M gallons
Next . 200,000
gallons
0.80/M gallons
Next 200,000
gallons
0.88/M gallons
All over 250,000
gallons
0.75/M -gallons
All over 250,000
gallons
0.83/M gallons
THE SEWER SYSTEM
The City owns and operates a modern sewage system, with sanitary sewage collection and treat-
ment handled separately from storm water drainage. Treatment facilities consist of the South-
east Plant, with an average daily flow capacity of 25 million gallons, and the Northwest Plant,
with an average daily flow capacity of 0.75 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 512,000 KW Clifford B. Jones electric generating plant near Lubbock.
No effluent is discharged into streams.
The sanitary sewage collection system includes approximately 695 miles of trunk mains and
collector lines with trunk mains installed for future expansion of the collection system.
Average daily sewage flow in 1981 was 18.9 million gallons.
There are no outstanding or authorized sewer revenue bonds.
- 20
CONDENSED STATEMENT OF OPERATIONS
SEWER 5YSTEM
Fiscal Year Ended
9-3041
9-30-80
'$2,
9-30-79
9-30-78
9-30-77
Income
$2,758,
635,SOr
$',368,�W
Expense
1,710,934
1,597,031
1,395,924
2,644
1,082,772
$1,617
874,305
Net Income
S1, 047, 306
$1,038,770
S 972,942
$1,179,872
S 743,193
Sewer Customers*
55,511
54,589
53,45852,408
50,442
* Estimated. i }
AIRPORT SYSTEM
The City has owned and operated its airport since 1929, with scheduled airline service begin-
ning in 1946. Lubbock International Airport is located six miles north of the central business
district and has an area of over 2,632 acres, of which approximately 1,500 acres is used for
farming and clear zones.
Scheduled Airline Service .. Scheduled airline transportation is furnished by American Air .
ones,ran nternational, Continental Airlines, Texas .International Airlines, ,and
Southwest Airlines; all flights are by jet aircraft. Air Midwest, a Wichita, Kansas, based
regional certificated air carrier, also serves the City. Non-stop service is provided to
Dallas -Fort Worth Regional Airport, Dallas Love Field, Houston, El Paso, Austin,, Amarillo and
Midland -Odessa. 1981 passenger enplanements totaled 474,600, compared to 455,925 in 1980.
Lubbock International Airport Terminal The terminal building, completed in
April, 197conta ns approximately y square feet; the terminal houses airport administrative of-fices,
airline offices and ticket counters, the baggage claim area, car rental offices, a
restaurant and infIight meal preparation kitchen, air freight tenants, meeting and press rooms,
and provides 6 gates for airline use; 5 gates are jetway equipped. Parking space at the
terminal has been expanded through construction of a new 2 -level 740 -space parking building,
which gives the Airport a total parking capacity of 1,820, including 140 employees. A new FAA
control tower became operational in March, 1977. The old terminal building has been converted
to government and commercial office space and houses a 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.
General Aviation Facilities ... A building designed for the use of private aviation is. located
on the east s e a t e 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
Improvement purposes were approved at the election on November 21, 1 981; $812,000 of these are
included in the Bonds, the proceeds to be used for architectural/engineering services and
purchase of a jetway for Gate 5 at the terminal.
-21-
An estimated $10,220,000 will be used to expand the present terminal with a 60,000
square foot
addition which will include two additional gates equipped with jetways, baggage handling
+
system, additional rent car areas and expanded airline lease apace. $2,634,000 will be used
.
for the City's share of the cost of terminal apron expansion; total estimated cost
of terminal
!
expansion is $11,246,040 of which the FAA's share is $8,612,040; included in the apron expan-
sion is provision for the two new gates at the terminal and four additional, second
phase,
future gates.
Warehouses and Land RentalsJ... The airport has five 16,000 square.foot warehouses
and. six
of er warehouses for storage space rental.
`1 CONDENSED STATEMENT OF OPERATIONSAIRPORT SYSTEM
i
Fiscal Year Ended 9-30-81 -9-30-80 9-30-79 9-30-78
`
9-30-77
-
Operating Revenues < $2,210,270 $1,950,7163�,$b` 6s� 31 5,3I0 _$1,467,716
Mon -Operating Revenue 396,976 279,961 413,953 257,945
I67,716Non-Operating
185,865
'
s
Gross Income $2,607,246 $2,230,677 '•52:277,015 $2,124,655
$1,653,581
!
Operating Expensexf .,...
i
(excluding depreciation) 1,972,780 4,732,584 1,467,720 1,191,964
1,183,939
l
Net Revenue S 634,466 S 498,093 $ 809,295: S 932,691
S 469,642
<.
..
Maximum Principal and Interest'Requirements, Airport Revenue Bonds,
�.
y - - --
Fiscal Year Ending9-30-82 (secured b Gross Income from System) - -
$ 345,146
Coverage Based on Gross Income, Fiscal Year Ended 9-30-81 ------- - -----
7.55 Times
Airport Revenue Bond-s-butstanding, 9-30-81 ----------------- m ----------- ------
$2,475,000
j
Interest and Sinking Fund, 9-30.81 -------------------------------- ---------
$ 760,886
1
Reserve Fund, Cash and Investments, 9-30-81 -------------------------------------
$ 300,000
!!�,
GENERAL INFORMATION REGARDING THE CITY AND ITS ECONOMY
LOCATION AND AREA ...
The City of Lubbock,:i~aunty .Seat of Lubbock County, Texas, is located on the South Plains of
f.
West Texas. Lubbock is'the economic, educational, cultural and medical center of
the area.
POPULATION ....
Lubbock is the eighth largest City in Texas:
r-
„ ,City of Lubbock
Cor orate Limits
,1910 Census
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. 113 979
Estimated, 1982 17,282*
r
Standard Metropolitan Area (Lubbock County)
1970 Census 179,295
' !
1980 Census 211,651
"
V
• *Source: City of Lubbock, Texas
j
f
- 22 -
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 1980 cotton production was 213,200 bales; grain sorghum production was
31,110,000 pounds; and corn production was 227,400 bushels.
On January 1, 1981, there were an estimated 56,000 head of cattle and calves located on farms or
in feed lots in Lubbock County. An estimated 108,000 cattle were marketed from feed lots during
1980.
Lubbock County Cash Receipts from farm marketings, 1978/80, were:
All Crops
1�
17
1980*
Livestock and Products
27,053,000
39,255,000
33,771,OW
000
U.S. Government Payments
6,498,000
_ 5,971,000
6,434,000
Total Cash Receipts
$105,608,000
$119,927,000 $130,050,000
* Preliminary - subject to revision.
(Source:
1980 cotton production in a 23 county (including Lubbock County)
2,001,700 bales; 1960 grain sorghum production in this same
area surrounding
Lubbock was
grain corn production was 66,237,400 bushels.
area
was 844,150,000
pounds; and
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.
BUSINESS AND INDUSTRY ...
Lubbock
SMSA labor Force Estimates
(Source:
Texas mp
oyment omm ss
on)
February
January
December
February
January
December
Civilian Labor Force
1982*
107�66
1982
1981
1981
1981
1980
Total Employment
101,900
100,600
102,950
96,540
�6
96,110
��
96,970
Unemployment
Percent Unemployed
5,300
4.9%
4,650
4.4%
3,800
3.7X
3,800
4,690
3,860
3.8%
4.7%
3.8%
* Subject to revision.
The Texas Employment Commission reported in March, 1982, that February, 1982, nonagricultural
employment in the Lubbock area totaled 90,800, up from 89,260 in February, 1981; of this total
an estimated 11,550 were employed in manufacturing compared to 12,060 in February, 1981.
Over 240 manufacturing plants in Lubbock produce such products as consumer products utilizing
semi -conductor elements, vegetable oils, heavy earth -moving machinery, irrigation equipment
and pipe, farm equipment, electronic instruments, paperboard boxes, foodstuffs, mobile and
prefabricated homes, poultry and livestock feeds, boilers and pressure vessels, automatic
sprinkler system heads, structural steel fabrication and soft drinks.
- 23 -
Some larger industries in Lubbock (with more than 100 employees) are:
Estimated
Employees
December,
Company
Product
1981*
Texas Instruments, Inc.
Consumer Procucts with emi- on uctor
Elements
Johnson Manufacturing Company (Division of
Heavy Earth -Moving Machinery and
250+
Eagle-Picher Industries)
Farm Equipment
Lubbock Avalanche -Journal Southwestern
Newspaper
350+
Newspaper Corporation
Litton Data Systems, Guidance and Control
Navigational Equipment; Electronic
325+
Systems Division, Litton Industries, Inca
Computer Systems
Plains Co-op Oil Mill
Vegetable Oil Products, Cottonseed
325+
Products
Evans Transportation Company (Division of
Evans Products Company)
Pressure Vessels for Rail Cars
300+
Frito-Lay, Inc. (Subsidiary of
Potato and Corn Chips
300+
Pepsico, Inc.)
Goulds Pumps, Inc.
Vertical Turbine Pumps
250+
Mrs. Baird's Bakeries
Bread Products
175+
Coca-Cola Bottling Company
Soft Drinks
175+
Bush Hog -Husky Company (Subsidiary.of
Structural Steel Fabrication, Irriga-
150+
Allied Products, Inc.)
tion Equipment, Pollution Equipment
Grinnell Fire Protection Systems Company
Automatic Sprinkler Heads
150+
(Subsidiary of Tyco Laboratories)
Rainbo Baking Company, subdivision of
Bread Products
130+
Cambell -Taggart Associated Bakeries, Inc.
Bell Dairy Products, Inc.
Dairy Products
100+
Hall Foundries & Manufacturing, Inc.
Aluminum and Brass Castings, Wooden
100+
Foundry Patterns
Lubbock Cotton Oil Company
Cottonseed Oil and Other Cottonseed
100+
Products, Soyean Oil
Dr. Pepper -Seven Up Bottling Company
Soft Drinks
100+
Nubro Corporation
Reground Ball Bearings, Formed Wire
100+
Coils, Starter Armatures
* Source: Lubbock Chamber of Commerce.
Texas Instruments; Inc., world leading developer and producer of semi -conductors
and other
electronic products, commenced manufacturing
operations in Lubbock in April, 1973.
The company
employs over 3,000 in the manufacture of
consumer products utilizing semi -conductor elements,
'and the servicing of these products. The
Company's Consumer Products Division headquarters is
located in Lubbock.
Wholesale distribution represents a major sector of the Lubbock eonomy, with
hundreds of
outlets serving a 54 county area in West
Texas and New Mexico.
The U.S. Bureau of the Census. Census of Business, 1977, estimated Lubbock County (Lubbock
Standard Metropolitan Area) retail trade
at $866 million in 1977. Sales & Marketin Manag-
ement, Sury X of Buying Power, estimates
Lubbock County 1980 retail sa es a
.
There are ten banks in the City ... American State Bank, established 1948; Texas Commerce
Bank
(formerly Citizens National Bank), established
1906; First National Bank, established
1901;
Lubbock National Bank, established -1917;
The Plains National Bank, established 1955;
Security
National Bank, established 1963; Bank of
the West, established 1973; Texas Bank
& Trust Co.,
established 1973; Southwest Lubbock National Bank, established 1978; and Liberty
State Bank,
established 1979. There are six savings
and loan associations in the City.
Combined Bank Statistics
Year End Deposits
-1970
Year End De osits
-19/b
$47/,Z47,i84
1971 527,314,293
,
1977 1,104,602,663
1972 596,697,439
1978 1,104,896,188
1973 723,327,701
1979 1,219,990,000
1974 793,915,466
1980 1,369,037,000
1975 878,164,171
1981 1,500,177,000
- 24 -
EDUCATION ... TEXAS TECH UNIVERSITY ...
Established in Lubbock in 1925, Texas Tech University is the third largest State-owned Univer-
sity in Texas and had a Spring, 1982 enrollment of 20,621. Accredited by the Southern
Association of Colleges and Schools, the University. is' a co-educational, State -supported insti-
tution offering the bachelor's degree in 87 major fields, the master's degree in 69 major
fields, the doctorate degree in 32 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. 1981-82 faculty membership is
over 1,500, and there are over 4,500 other full and part-time employees including professional
and administrative staff. Including the Medical School, the University's operating budget for
1981-82 is over $153.7 million of which $110.3 million is from State appropriations; book value
of physical plant assets, including the Medical School, is $305.7 million.
In 1969, the State Legislature authorized the establishment of a medical school at the Univer-
sity. Construction of Pod A of the school is complete, and construction on Pods B and C is near
completion. The medical school opened in 1972, and had an enrollment of 334 for the Spring
Semester, 1982, not including residents. There are 42 graduate students. The School of
Nursing admitted its first class in Fall, 1981 and had a Spring Semester, 1982 enrollment of 65.
The Allied Health School will admit its first class in Fall, 1982.
OTHER EDUCATION INFORMATION
The Lubbock Independent School District, with an area of 87.5 square miles, includes over 95%
of the City of Lubbock. Spring, 1982, enrollment was 28,942; there were 1,996 faculty and
professional personnel and 1,190 other employees. The District operates 5 senior high schools,
8 junior high schools, 35 elementary schools and other educational programs. The District is
planning the construction of 3 new elementary schools.
SCHOLASTIC MEMBERSHIP HISTORY*
Refined
Average
School Student Daily
YearMembership Attendance
32063 30716
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** 26,991***
* Source: Superintendent's Office, Lubbock Independent School District.
** As of 2-26-82.
*** As of the end of third six weeks period.
Lubbock Christian College, a privately owned, co-educational senior college located in Lubbock,
had an enrollment of 1,021 for the Spring Semester, 1982, 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, 1982, enrollment was 828.
The College also operates a major off -campus learning center at Reese Air Force Base; course
offerings are in primarily academic subjects and Spring, 1982 enrollment was 394.
-25-
The State of Texas School for the Mentally Retarded, located on a 220 acre site in Lubbock, now
consists of 37 buildings with accommodations for 556 students. The School's operating budget
for 1981/82 is in excess of $11.5 million. The School is operating at 100% capacity, and has
over 700 professional and other employees.
TRANSPORTATION ...
Scheduled airline transportation at Lubbock International Airport is furnished by American
Airlines, Braniff International, Continental Airlines, Texas International, Southwest Airlines
and Air Midwest. Non-stop service is provided to Dallas -Fort Worth Regional Airport, Dallas
Love Field, Houston, Amarillo, Austin, El Paso and Midland -Odessa. 1981 passenger boardings
totaled 474,600. 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 Grey-
hound Corporation, provides bus service. Headquarters for T.I.M.E.-DC, Inc., a transcon-
tinental motor carrier, are located in Lubbock, and 14 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 approximately 2,800
military and 650 civilian personnel.
State of Texas ... More than 25 State of Texas boards, departments, agencies and commissions
have offices in Lubbock; several of these offices have multiple units or offices.
Federal Government ... Several Federal departments and various other administrations and agen-
cies have offices in Lubbock; a Federal District Court is located in the City.
HOSPITALS AND MEDICAL CARE ...
There are seven hospitals with a March, 1982 total of 1,508 licensed beds. Methodist Hospital,
the largest, employs 533 of its licensed 549 beds, and also operates an accredited nursing
school; St. Mary's of the Plains Hospital utilizes 202 beds of its licensed 222 beds. Others
include West Texas Hospital with 166 beds, Highland Hospital. with 123 beds, University
Hospital, Inc. with 99 beds and Community Hospital of Lubbock with 76 beds. Lubbock County
Hospital District, with boundaries contiguous with Lubbock County, owns the Lubbock General
Hospital which it operates as a teaching hospital for the Texas Tech University Medical School,
utilizing 210 of its licensed 273 beds.
Lubbock has over 200 practicing physicians and surgeons (M.D.) plus the Texas Tech University
Medical School Staff, and over 80 dentists. A radiology center for the treatment of malignant
diseases is located in the City.
RECREATION AND ENTERTAINMENT ...
Lubbock's Mackenzie State Park and 60 City parks and playgrounds provide recreation centers,
shelter buildings, a garden and art center, swimming pools, a golf course, tennis and volley
ball courts, baseball diamonds and picnic areas, including the Yellowhouse Canyon Lakes system
of four lakes and 500 acres of adjacent parkland extending from northwest to southeast Lubbock
along the Yellowhouse Canyon. There are several privately -owned public swimming pools and golf
courses, and 2 country clubs, each with a golf course, swimming pool and tennis courts.
-26-
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
Museum, Planetarium and Ranch Heritage Center exhibits and programs, Lubbock TMemorial ech eCivic
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 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 Telephone Company.
MEDIA ...
Newspapers - 1 daily (morning and evening); others semi -weekly -and weekly.
Television and Radio - 3 network TV channels and 1 educational public service TV channel; cable
TV services; AM and FM radio stations.
ECONOMIC INDICES (1)
Bank Building Utility Connections Year De.osits Po
stal�Permits Water s Electric e one -Receipts
, 41S76iFW 3 Vi�r
1970 477,247,184 40,035,768 42,460 43,456 48,966 115,047 4,043,407
1971 527,314,293 69,209,358 43,012 44,039 49,970 1210545 4,323,582
1972 596,697,439 64,278,038 44,331 45,168 50,717 128,288 5,241,799
1973 723,3279701 78,844,779 45,565 45,650 50,994 135,344 5,317,985
1974 793,915,466 118,718,253. 46,745 45,971 51,739 141,942 5,737,352
1975 878,164,171 114,823,400 47,817 47,671 52,451 149,906 6,662,348
1976 1,013,973,289 91,904,380 49,933 48,809 56,008(2) 158,497 8,027,363
1977 1,104,602,863 131,951,646 50,825 50,062 60,077 161,860 10,778,787
1978 1,104,896,188 132,600,657 52,629 51,266 63,123 168,273 11,006,891
1979 1,219,990,000 104,883,750 53,705 54,878 65,294 171,609 11,758,260
1980 1,369;037,000 88,829,331 54,788 55,768 66,885 ' 174,110 12,882,061
1981 1,500,177,000 106,757,064 55,527 56,541 749224 174,263 13,867,490
Notes: (1) All data 1969-1981 as of 12-31, except Postal Receipts which are as of 6-30 for
1967-76 and as of 12-31 for 1977/81.
(2) Electric connections include those of a privately owned utility company. 12-31-76
electric connections reflect institution of metering of individual apartment
units.
- 27 -
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-28-
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 &
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 existing statutes, rulings, regulations and
court decisions. 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 juris-
diction. The City assumes no responsibility for qualification of the Bonds under the securi-
ties laws of any jurisdiction in which the Bonds may be sold, assigned, pledged, hypothecated
or otherwise transferred. This disclaimer of responsibility for qualification for sale or
other disposition of the Bonds shall not be construed as an interpretation of any kind with.
regard to the availability of any exemption from securities registration provisions.
LEGAL INVESTMENTS IN TEXAS
The Bonds are legal investments for sinking funds of Texas counties, cities and towns. They are
eligible to secure Texas state, county, city and school district funds and constitute legal
investments for insurance companies in the State of Texas. No review has been made of the laws
of states other than Texas 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, to the effect that the Bonds are valid and legally binding
obligations of the City, and based upon examination of such transcript of proceedings, the
unqualified approving legal opinion of Bond Counsel, to like effect and to the effect that the
interest on the Bonds is exempt from Federal income taxation under existing statutes, regula-
tions, rulings and court decisions. The customary closing papers, including a certificate to
the effect that no litigation of any nature has been filed or is then pending to restrain the
issuance and delivery of the Bonds, or which would affect the provision made for their payment
or security, or in any manner questioning the validity of said Bonds or the coupons appertain-
ing thereto, will also be furnished. Bond Counsel was not requested to participate, and did not
take part, in the preparation of the 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 resolution. 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.
- 29 -
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 surrmar.ies 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 pertain-
ing 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, includ-
ing 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 District will furnish the Purchaser, as a part of the transcript of proceedings, a certi-
fied copy of a resolution of the City Council as of the date of the sale of the Bonds which will
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 Pur-
chaser.
ATTEST:
EVELYN E. GAFFGA
City Secretary
- 30
BILL McALISTER
Mayor
APPENDIX
The information contained in this Appendix has been reproduced
from the City of Lubbock, Texas Annual Audit Report for the
Fiscal Year Ended September 30, 1981. The information pre-
sented represents only a part of the Annual Audit Report and
does not purport to be a complete statement of the City's
financial condition. Reference is made to the complete Annual
Audit Report for further information.