HomeMy WebLinkAboutResolution - 808 - Sale Procedures - Electric Light & Power System Revenue Bonds, Series 1981 - 05/15/1981JBP:bs
RESOLUTION MAY 15198,
A RESOLUTION by the City Council of the City of Lubbock, Texas, relating
to procedures to be followed in the sale of $9,000,000 "City of Lubbock,
Texas, Electric Light and Power System Revenue Bonds, Series 1981"; providing
the forms of procedures and in substantial form all instruments for said
Series 1981 Bonds; stating the intent and desire of the City Council to pro-
ceed with such Series 1981 expeditiously and as appropriate within their
discretion; reserving the right to make corrections and insubstantial and
immaterial changes and modifications in all such Series 1981 instruments to
reflect the true facts, circumstances and dates at time of ultimate execution,
resolving other matters incident and related to the purpose, including the
filing of an action under the provisions of Vernon's Ann.Civ.St., art. 717m-1;
and providing an effective date for this Resolution.
WHEREAS, this City Council has determined and does hereby determine that:
(1) It should proceed with the authorization of bonds to be known as
"City of Lubbock, Texas, Electric Light and Power System Revenue Bonds, Series
1981"; and,
(2) That it is necessary and expedient that the instruments and pro-
cedures necessary to the accomplishment of such purpose be now defined so that
same may be subjected to judicial consideration, reserving the right to make
all corrections, modifications and changes necessary so that said instruments
at the time ultimately enacted, executed or delivered shall accurately reflect
conditions at the time of such enactment, execution or delivery, provided such
corrections, modifications and changes shall not substantially or materially
effect the substance of the proposed instruments; and,
(3) That a clear and concise declaration of the intentions and desires
as to such proposed Electric Revenue Bonds should be of record; and,
(4) That form of the Ordinance to be hereafter enacted setting all terms
and conditions of the Series 1981 Electric Revenue Bonds be provided; as well
as prescribing the form of notice to be published in accordance with Article
VIII, Section 5 of the City Charter and the form of notice of sale to be
distributed to proposed bidders, as well as all further instruments necessary
to the sale and delivery of said Series 1981; and,
(5) It should institute an action under Vernon's Ann.Civ.St., art. 717m-
1, in order that all matters possible arising in connection with the issuance
of Series 1981 Bonds may be validated and confirmed; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1. That the recitals and determinations made in the preamble
hereof are found to be true and are adopted as the findings of this governing
body.
SECTION 2. That this Council proposes to proceed as quickly as pos-
sible, subject to the Judicial procedures contemplated hereby, with the sale
and delivery of $9,000,000.00 City of Lubbock, Texas, Electric Light and Power
System Revenue Bonds, Series 1981.
SECTION 3. That the City Attorney is directed to institute and file
an appropriate action, under the provisions of Vernon's Ann.Civ.St., art.
717m-1, to approve and validate the bonds now sought to be issued and obtain
appropriate relief against the institution of suits which would or might
prevent the carrying out of the intent of the Council, all in the manner
provided by said law.
SECTION 4. That this Council has already by.this date, or alter-
natively, hereafter proposes at the earliest possible and appropriate date, to
enact•in substantially the form hereafter set forth, an Ordinance authorizing
the issuance of $9,000,000 City of Lubbock, Texas, Electric Light and Power
System Revenue Bonds, Series 1981; said Ordinance being attached as Exhibit R-
1 to this Resolution and to which attachment reference is here made for all
purposes.
SECTION 5. That the enactment of said aforesaid Ordinance shall be
reflected upon the minutes of the City•Council of the City of Lubbock, Texas,
and that there .be attached to all official copies of said ordinance when
enacted utilized in the bond processes a certificate of the City Secretary
certifying that such Ordinance is a true and correct copy of the enacted
ordinance. The form of such certificate shall be in substantially the form
attached as Exhibit R-2 to this Resolution and to which attachment reference
is here made for all purposes.
SECTION 6. That in compliance with all requirements and policies in
current force prerequisite to the procedures£or the issuance, sale and de-
livery of revenue bonds, there shall be submitted a Report of Certified Public
Accountant in substantially the form as attached as Exhibit R-3 to this Reso-
lution and to which attachment reference is here made for all purposes.
SECTION 7. That this Council in compliance with charter requirements
proposes thereafter to issue `and 'approve a notice of sale, which except for
the date and time of sale shall be in substantially the form attached as
Exhibit R-4 to this Resolution and to which attachment reference is here made
for all; purposes .
That such notice is the format of the notice which the City proposes to
use in meeting the requirement of Article VIII, Section 5 of the City Charter,
in that such notice would be published (after being completed) once each week
for a period of thirty days in the Lubbock Avalanche -Journal, a newspaper of
general circulation in and published in the City of Lubbock.
That the date and time to be set in such notice for the receipt of bids
would be not less than 30 days following the date of the first publication;
that the time of day established for the.sale shall be between the hours of
9:00 A.M. and 4:00 P.M.; that the City Council proposes to convene in open
session, after notice thereof has been given incompliance with Article 6252-
17, V.A.T.C.S. for the purpose of opening and considering bids or proposals
for the purchase of such bonds.
SECTION 8. That additionally this Council proposes to cause to be
distributed an Official Statement, Notice of Sale and bidding documents in
substantially the form attached as Exhibit R-5 to this Resolution and to which
attachment reference is here made for all purposes.
The Council reserves the right to cause such instrument to be modified
and amended to reflect at time of distribution current information as to all
matters included, but no changes of a substantial or material nature at law
are contemplated.
That said documents shall be distributed to investment bankers and others
who would normally submit proposals for the purchase of bonds of the kind and
character to be offered for sale and the City proposes to cause such distri-
bution to be made.
That prior to the distribution of said Notice of Sale and Bidding In-
structions, Official Bid Form and Official Statement, all as contained in said
instrument attached as Exhibit R -S, the Council will by resolution approve the
form and content of the above and 'authorize First Southwest Company, Dallas,
Texan, to distribute these said instruments to prospective bidders for and
purchaser of the Series 1981 Electric Revenue Bonds which are the subject of
this Resolution. The form of said Resolution shall be substantially as re-
flected by the instrument attached hereto as Exhibit R-6 to this Resolution
and to which attachment reference is here made for all purposes.
SECTION 9. That subsequent to the final enactment of the Ordinance
attached to this Resolution as Exhibit R-1,: the Council hereby authorizes and
approves the execution by the officer indicated of a General Certificate
substantially in the form attached hereto as Exhibit R-7 to this Resolution
and to which attachment reference is here made for all purposes.
SECTION 10. That the Council directs, authorizes and approves the
execution, issuance and delivery at the appropriate time or times of a Debt
Service Requirement Schedule substantially in the form attached hereto as
Exhibit R-8 to this Resolution and to whichattachmentreference is here made
for all purposes.
SECTION 11. That the Council after receipt of bids, opening thereof
and acceptance of the best bid.received, subject to the authority of the
Council to reject any or all bids, shall upon acceptance enact a resolution
substantially in the form reflected by Exhibit R-9 to this Resolution and to
which attachment reference is here made for all purposes. It is by this
instrument that the Council shall award the sale of the said $9,000,000 "City
of Lubbock, Texas, Electric Light and Power System Revenue Bonds, Series
1981.11
SECTION 12. That a certificate of the City Secretary certifying that
the resolution hereinabove identified as Exhibit R-9 is a true and correct
copy, shall be attached after enactment to such copies of said resolution as
may be required in satisfaction of the processes leading to the approval, sale
and delivery of said electric revenue bonds. The form of said certificate
shall be in substantially the form attached as Exhibit R-10 to this Resolution
and to which attachment reference is here made for all purposes.
SECTION 13. That as of the date of sale of said bonds the Council
shall enact a Resolution approving the form and content of the Official State-
ment.
SECTION 14. That the Council authorizes and directs that at the appro-
priate time a Certificate as to Official Statement by the officer named thereor,
substantially in the form reflected by instrument attached to this Resolution
as Exhibit R-11 and to which attachment reference is here made for all pur-
poses.
SECTION 15. That the Council -further proposes, during the procedures
leading to ultimate sale and delivery of the $9,000,000 City of Lubbock,
Texas, Electric Light and Power System Revenue Bonds, Series 1981, to utilize
the additional instruments in substantially the forms attached (which shall be
''current as of the date of execution) as follows:
(1) Treasurer's Receipt attached to this Resolution as Exhibit R-12 and
to which attachment reference is here made for all purposes; and,
(2) Signature and No -Litigation Certificate attached to this Resolution
as Exhibit R-13 and to which attachment reference is here made for
all purposes.
(3) No -Arbitrage Certificate attached to this Resolution as Exhibit R-14
and to which attachment reference is here made for all purposes.
SECTION 16. That the language of each instrument proposed to be uti-
lized as included in this Resolution, is in each instance adopted as part of
this Resolution and as the findings and determinations hereof. The Council
reserves the right to make appropriate corrections and insubstantial and
immaterial changes and modifications in all such instruments so that each will
reflect the true facts, circumstances and dates at the time of ultimate exe-
cution.
SECTION 17. The City Secretary -Treasurer of the City of Lubbock,
Texas, is authorized and directed to prepare, execute and deliver, such certi-
ficates as to the authenticity as may be subsequently required or appropriate
upon passage of this Resolution, or thereafter, of copies of this Resolution
or of any instrument attached as an exhibit to this Resolution.
SECTION 18. That as to all documents and instruments above proposed to
be executed, submitted or delivered as set forth hereinabove, the Council here
reserves the right to complete the blanks provided therein, correct clerical
errors as may be discovered therein, and make such other insubstantial and
immaterial changes as may be necessary to reflect changes of conditions.not
affecting the validity of the instruments, prior to execution, submission or
delivery, respectively. Council also reserves the right to make such further
and additional changes in said instruments as may be suggested or required by
the Attorney General of the State of Texas, and such changes and modifications,
if any, as may be required or allowed by the eventual Judgment in the art.
717m-1 proceeding authorized by this Resolution.
SECTION 19. This Resolution shall be effected from and after its
passage.
PASSED BY THE CITY COUNCIL THIS 15TH DAY OF MAY, 1981.
i
LL McALISTER, MAYOR
ATTEST:
--Evelyn'Gaf ga, City Sec er reasurer
APPROVED AS TO FORM:
r
C Attorney, City of Lubbock, Texas
ORDINANCE NO.
All ORDINANCE by the City Council of the City of Lubbock,
Texas; authorizing the issuance of $9,070,000."CITY
OF LUBBOCK, TEXAS, ELECTRIC LIGHT. AND POWER SYSTEM
REVENUE BONDS, SERIES 19811% for the purpose of pro-
viding funds for taking improvements and extensions
to the City's Electric Light and Poser System, i.e.
improvements and extensions to the Lransmission and
distribution facilities., as authorized by the General
Laws of the State of Texas, particularly Article 1111,
et seq., and Article 2368a, V..A.T.C.S.;-prescribing
the form of the bonds and the form of the interest
coupons; pledging the net revenues of the City's
Electric Light and Power System to the payment of the
principal of and interest on said bonds; and enacting
provisions incident and relating to the subject and
purpose of this ordinance; and providing an effective
date.
INTHEREAS, the City of Lubbock, Texas, has heretofore author-
ized the issuance of six series of revenue bonds (hereafter
defined as "previously issued bonds") which are. payable from and
secured by the net revenues of the City's Electric Light and
Power Svs tem; and
WHEREAS, the City Council of the City of Lubbock, Texas,.
has determined that additional revenue bonds should be issued
for the purpose of providing funds for making improvements and
extensions to the City's Electric Light and pof.er S; stem, i.e.
improvements and extensions to the transmission and distribution
facilities, which revenue bonds shall be "additional bonds" as
.such term is defined in the ordinances authorizing the previously
issued bonds, payable from and secured by the net revenues of the
City's Electric Light and Power System in ail things an a parity
with the previously issued bonds; and
WHEREAS, notice of the City's intention to issue the series
of bonds herein authorized has been given in due time, form and
Branner required by applicable law in that such notice has been
published in a newspaper, published in and of general circulation
in the City of Lubbock, Texas, once a week for two consecutive
weeks, the date of the first publication having been not less
than 14 days prior to the date set in the notice for the passage
of this ordinance; and
t.J'P`=='-., no petition, signed by 10;0 of the qualified electors
or`"10% - t=e qualified property taxpaying voters has been pre-
sented to the City Secretary, the City Manager or any member of
the Council requesting that a referendum election be called on
the quer `_-,' of whether the revenue bonds, as described in the
foresail notice should be issued and therefore this Council is
authori=ed to proceed with the authorization, issuance, and de-
livery of stich bonds; and
J,fHEP,rAS, this City Council finds and determines: (1)that
the Mayor ,and City Treasurer have certified that the City is not
in default as to any covenant, condition or obligation prescribed
by the ordinances authorizing the issuance of the outstanding
bonds, including showings that all interest, sinking and reserve
funds provided for have been fully maintained in accordance with
the provisions of said ordinances; (2) that the City has secured
from an independent Certified Public Accountant his critten report
demonstrating that the net revenues of the S�stera were, during
the last completed fiscal year, or during any consecutive twelve
(12) month period of the last fifteen (15) consecutive months
prior to the month of adoption of the ordinance aut^orizing, the
additional parity bonds, equal to at least one and one-half
(1-1/2) times the average annual principal and interest require-
ments of all the bonds which will be secured by a first lien on
and pledge of the net revenues of the System and which will be
outstanding upon the issuance of .the additional parity bonds; and
further demonstrating that for the same period as is employed in
arriving at the aforementioned test said net revenues were equal
to at least one and one-fifth (1-1/5) times the maximum annual
principal and interest requireipents of all such bonds as will be
outstanding upon the issuance of the additional parity bonds;
now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1:Authorization Principal An-ount - Designation.
That in order to borrow tHe-said sum ot NINE -l' -ON DOLLARS
($9,000,000) for the purpose of providing funcs for making improve
ments and extensions to the City's. Electric Light.and -Power System.,
i:..e. improvements and extensions to the transmission and distri-
bution facilities, pursuant to the General Laws of the State of
Texas, particularly Article 1111 et seq., and Article 2368a,
V.A.T.C.S.; this Council has determined that there shall be issued-
and
ssuedand there is hereby ordered to be issued a series of coupon bonds,
to be designated "CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER-
SYSTEM
OWERSYSTEM REVENUE BONDS, SERIES 1981," aggregating in principal
amount the sum of NINE MILLION DOLLARS ($9,000,000), which said
series of bonds, together with. the outstanding and unpaid
previously issued bonds (as herein defined) shall be payable as
to both principal -and interest solely from and equally secured
by a first lien on and pledge of the net revenues of the City's
Electric Light and Power System.
SECTION 2: Date - Numbers 'Maturity - Interest Rate.
Said bondsshall a ate August s a- e nun ered
consecutively from. One (1) through Eighteen Hundred (1,800);
shall each be in the denomination of Five Thousand Dollars
($5,000), aggregating the principal sum of NINE MILLION DOLLARS
($9,000,000); and shall bear interest and become due and payable
serially on April 15 in each of the years in accordance with
the following schedule:
BOND NIR BERS .INTEREST
(All Inclusive) YEAR PRINCIPAL RATE
1 to 90 1983 450,000 %
91 to 180 1984 450,000
181 to 270-1
70 1-385 450,000
181 to 360 -986 450,000
361 to 450 7 450,000
451 to 540 =988 450,000
541 to 630 1989 450,000
631 to 720 1990 450,000
721 to 810 _991 450,000
811 to 900 992 450,000
901 to 990 1993 450,000
991 to 1080 1994 450,000
1081 to 1170 1995 450,000
1171 to 1260 1996 450,000
1261 to 1350 1997 450,000 Q/a
450,000
1351 to 1440 -1998 450,000 70
1441 to 1530 1999
1531 to 1620 2000 450,000
1621 to 1710 2001 450.000
1711 to 1800 2002 .450,000 ���
PROVIDED, HOWEVER, that the City of Lubbock, Texas, reserves the
right to redeem bonds maturing in the year 1992 and thereafter,
in whole or any part thereof, on April 15, 1991 or on any interest
payment date thereafter, at the price of par and accrued interest
• •L
to the date fixed for redemption plus a premium of 2-1/2% of the
principal amount of all bonds called for redemption on April 15,
1991, such premium reducing 1/2 of 1% on each April 15 thereafter
until April 15, 1996, on and after which date said bonds shall
be optional at the price of par and accrued interest; and PROVIDED,
FURTHER, that at least thirty (30) days prior to.any interest
payment date upon which any of said bonds are to be redeemed,
notice of redemption signed by the City Secretary -'treasurer of
said City (specifying the serial numbers and arount of bonds to
be redeemed) shall have been filed with the CITIBANK, NATIONAL
ASSOCIATION., New York, New York, and with the TEXAS C=MERCE BANK,
NATIONAL ASSOCIATION, Lubbock, Texas (the paying agents named in
each of said bonds). Should any bond or bonds not be presented
for redemption pursuant to such notice, and if by the date so fixed
for redemption the City shall have made available funds in amounts
sufficient to pay the bonds and accrued interest thereon to the
date of redemption, pursuant to such notice, the same shall cease
to bear interest from and after the date so fixed for redemption.
SECTION 3: Interest. That said bonds shall bear interest
from date to maturity at the rate or rates shown in the above
schedule, such interest to be evidenced by proper -coupons attached
to each of said bonds; and said interest shall be payable .on
April 15, 1982, and semiannually thereafter on October 15 and
April 15 in each year,.
SECTION 4: Places of Payment. Both principal of and interest
on this issue of bonds s a e payable in lawful money of the
United States of America, without exchange or collection charges
to the owner or holder, at the CITIBANK, NATIONAL ASSOCIATION,
New York, New York, or, at the option of the holder, at the TEXAS
C0:j�!ERCE BANK, NATIONAL ASSOCIATION, Lubbock, Texas, upon presen-
tation and surrender of bonds or proper coupons.
SECTION 5: Execution of Bonds and Coupons. The seal of
said City may be impressed on each ot said bonds or, in the alter-
native, a facsimile of such seal may be printed on the said bonds.
The bonds and interest coupons appurtenant thereto may be executed
by the imprinted facsimile signatures of the �11avor and City Secre
tary of the City and execution in such canner shall have the same
effect as if such bonds and coupons had been signed by the Mayor
and City Secretary in person by their manual signatures. Inasmuch
as such bonds are required to be registered by the Comptroller of
Public Accounts for the State of Texas, only his signature (or
that of a deputy designated in writing to act for the Comptroller)
shall be required to be manually subscribed to such bonds in con-
nection with his registration certificate to appear thereon, as
hgreinafter provided; all in accordance with the provisions of
Article 717j-1, V.A.T.C.S.
SECTION 6: Form 'of' Bonds. That the form of said bonds shall
be su stant�y as o ows:
NO. UNITED STATE OF AMERICA $5,000
STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND P014ER
SYSTEM REVENUE BOND, SERIES 1981
FOR VALUE RECEIVED, the City of Lubbock, a municipal corpora-
tion of the State of Texas, hereby acknowledges itself indeb ted to
and promises to pay to bearer, as hereinafter stated, on the 15th
day of April, 19_, the sum of
FIVE THOUSPND DOLLARS
($5,000), in lawful money of the tnited States of America, with
interest thereon from the date hereof to maturity at the rate of
PER CENTLTM ( ' %) per annum, payable
on Apri 1982, and semiannually there ter on October 15 and
April 15 in each year, and interest falling due on or prior to
_maturity hereof is payable only upon presenation and surrender
of the interest coupons hereto attached as they severally become
due.
BOTH PRINCIPAL OF and interest on this bond are hereby made
payable at the CITIBANK, NATIONAL ASSOCIATION, New, York, New York,
or at the option of the holder, at the TEXAS COMMERCE BANK, NATIONAL
ASSOCIATION, Lubbock, Texas, without exchange or collection charges
to the owner or holder, and the said City of Lubbock, Texas, is
hereby held and firmly bound to apply the pledged appropriated
net revenues of its Electric Light and Power System to the prompt
payment of principal of and interest on this bond at maturity, and
to pay said principal and interest as they mature.
THIS BOND is one of a series of bonds aggregating in amount
NINE MILLION DOLLARS ($9,000,000), numbered consecutively from
One (1) through Eighteen Hundred (1,800), each in denomination
Of Five Thousand Dollars ($5,000), issued for the purpose of
providing funds for making improvements and extensions to the
City`s Electric Light and Power System,_i.e. improvements and
extensions to the transmission and distribution facilities, in
accordance with the Constitution and laws of the State of Texas,
particularly Article 1111 et seq.,and Article 2368a, V.A.T.C.S.,
and pursuant to the Charter of said City and an ordinance passed
by the City Council of the City of Lubbock, Texas, and.duly
recorded in the Minutes of said City Council.
AS SPECIFIED in the ordinance hereinabove mentioned, the
City reserves the right to redeem the bonds of this series matur-
_'ing in the years 1992 and thereafter, in whole or and part thereof,
on April 15, 1991, or on any interest payment date thereafter, at
the price of par and accrued interest to the date fixed for redemp-
tion plus.a premium of 2-1/2% of the principal amount of all bonds
called for redemption on April 15, 1991, such premium reducing
1/2 of 1% on each April 15 thereafter until April 15, 1996, on and
after which date said bonds shall be optional at the price of par
and accrued interest; and PROVIDED, HOWEVER, that at least thirty
(30) days prior to any interest payment date upon which any of
said bonds are to be redeemed, notice of redemption signed by the
City Secretary -Treasurer of said City (specifyir_g the serial.
numbers and amount of bonds to be redeemed) shah have been filed
with the CITIBANK, NATIONAL ASSOCIATION, New Yoram, New York, and
with the TEXAS COMMERCE BANK, NATIONAL ASSOCIATION?. Lubbock,
Texas. Should any bond or bonds not be presented fcr redemption
the City shall have made available funds in amo=i s sufficient
to pay the bonds and accrued interest thereon to the date of
redemption, -pursuant to such notice, the same shall cease to bear
interest from and after the date so fixed for red,, ---tion.
THE
T'HE DATE of this bond in conformity with the ordinance above
vtmentioned is April 15, 1981.
THIS BOND and the series of which it is a part constitute
special obligations of the City of Lubbock, Texas, and, together
with the outstanding and unpaid previously issued bonds (as defines
in the ordinance authorizing the series of bcnds of which this is
one), are payable solely from and equally secured by a first lien
on and pledge of the net revenues of the City's Electric Light
and Power System.
.THE CIY, however, expressly reserves the right to issue
further and additional revenue bond obligations, in all things
on a parity with.the outstanding previously issued bonds and the
bonds of this series and payable solely from and equally secured
by a first lien on and pledge of .the net revenues of the Ciy's
Electric Light and Power System; PROVIDED, HOt4EVER, that any and"
all such additional parity bonds may be so issued only in<accord-
ance with and subject to the convenants, conditions, limitations
and restrictions relating thereto which are set out and contained
in the ordinance authorizing t1iis series and to which said ordi=
nance reference is hereby made for more complete and full partic-
ulars.
THE HOLDER hereof shall never have the right to demand pay-
ment of this obligation out of any funds raised or to be raised
by taxation.
AND IT IS HEREBY CERTIFIED AND RECITED that the issuance
of this bond, and the series of which it is a part, is duly
authorized by law; that all acts, conditions and things required
to exist and to be done precedent to and in the issuance of this
bond to render the same lawful and valid have been properly done,
have happened and have been performed in regular and due -time,
form and manner as required by the Constitution and laws of the
State of Texas and the ordinance hereinabove mentioned; that this
series of revenue bonds does not exceed any constitutional or
statutory limitation; and that provision has been made for the
payment of the principal of and interest on this bond and the
series of which it is a part by -irrevocably pledging the net
revenues of the Electric Light and Power System of the City of
Lubbock, Texas.
IN TESTIMONY WHEREOF, the City Council of the City of
Lubbock, Texas, in accordance with the provisions of Article
>717j-1, V.A.T.C.S., has caused the seal of said City to be
impressed or a facsimile thereof to be printed hereon, and
this bond and its appurtenant coupons to be executed with the
imprinted facsimile signatures of the Mayor and City Secretary
of said City, as of the 15th day of April, 1981.
Mayor, City o u oc Texas
COUNTERSIGNED:
City Secretary, City ot LubF0_CR_,_
Texas
SECTION 7: Coupon Form. The form of said i=te_ast coupons
shall be su stantia y as ollows:
NO. ON THE 15TH DAY OF $
19 ,
'(unless the bond to which this coupon pertains has -----en
properly called for redemption in accordance with irs terms,)
the CITY OF LUBBOCK, a municipal corporation of the State of
Texas, hereby promises to pay to bearer, out of funds specified
in the bond to which this coupon is attached (without right to
demand payment out of any funds raised or to be raised by taxa-
tion), and in lawful money of the United States of America, with-
out exchange or collection charges to.the owner or holder, at the
CITIBANK, NATIONAL ASSOCIATION, New York, New York, or, at the
option of the holder, at the TEXAS COMMERCE BANK, NATIONAL ASSO-
CIATION, Lubbock, Texas, the sum of
DOLLARS
a-
�1
eolk
($ ), said sum being months' interest due that
day on "CITY OF LUBBOCK, TE)AS, ELECTRIC LIGHT AND POWER SYSTEM
REVENUE BOND, SERIES 1981," dated April 15, 1981. Bond No.
ity Secretary Mayor
SECTION 8: Form of Comptroller's Certificate: Substantially
the fo owing s-halle printe ton the back or each ond:
OFFICE OF COMPTROLLER -§
§ REGISTER N0.
STATE OF TEXAS §
I HEREBY CERTIFY that there is on file and of record in my
office a certificate of the Attorney General of the, State of Texas
to the effect that this bond has been examined by him as required
by law, and that he finds that it has been issued in conformity
with the Constitution and l.aws of the State of yTexas, and that it
is a valid and binding special obligation of the City of Lubbock,
Texas, "payable from the revenues pledged to its payment by and
in the ordinance authorizing same, and said bond has this day
been registered by me.
WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas,
Comptro er of- Pu is Accounts
of the State of Texas
SECTION 9: Definitions. For all purposes of this ordinance
and in particular or c arity with respect to the issuance of the
bonds herein authorized and the pledge and appropriation of reve-
'nues therefor, the following definitions are provided:
*NOTE TO PRI TE T e expression in parentheses to be included
only in coupons maturing October 15, 1991 -and subsequent pertaining
to optional bonds maturing in the years 1992 and subsequent.
(a). The term -"System" shall mean all Properties
-real, personal, mixed or otherwise, now owned or here-
after
ere-
ater acquired by the City of Lubbock through purchase,
ons ruction or otherwise, and used in connection with
he City's Electric Light and Power System and in anywise
y
a=pf—taining thereto, whether situated within or without
Le_imits of the City.
(b) The term "net revenues" shall mean the gross
-re-;-=ues of the City's Electric Light and Power System
less the expense of operation and maintenance. Such
exense of operation and maintenance shall not include
depreciation charges or funds pledged for the bonds,
pre-,riously' issued bonds and for additional parity bonds
hereafter authorized, but shall include all salaries,
labor, materials, repairs, extensions necessary to render
services; provided, however, that in determining "net retie=
noes," only such repairs and extensions as in the judgment
of the City Council, reasonably and fairly exercised are
necessary to keep the System in operation and render ade-
quate service to the City and inhabitants thereof, or
such as might be necessary to remedy some physical
defect which otherwise would impair the security of
the bonds, previously issued bonds, or additional
parity bonds permitted to be issued under Section 19
hereof, shall be deducted.
G
(c) The term "bonds" whenever same appears in
this ordinance without any qualifying language, shall
mean the revenue bonds authorized by this ordinance.
(d) The term "previously issued bonds" shall mean
the outstanding and unpaid bonds designated "CITY OF
LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REVENUE
BONDS," further identified by Series and dates as follows:
(1) Series 1964, dated March 15, 1964, in the original
principal amount of $4,500,000;
(2) Series 1965, dated March 15, 1965, in the original
.principal amount of $3,000,000;
(3) Series 1973, dated July 15, 1973, in the original
principal amount of $6,000,000;
(4) Series 1975, dated March.15, 1975, in the original
principal amount of $6.,400,000; and
(5) Series 1975-A, dated September 15,. 1975; in the
original principal amount of $2,000,000;
(6) Series 1976, dated April 15, 1976, in the original
principal amount of $4,400,000.
(e) The term "additional bonds" or "additional
parity bonds" shall mean those bonds xv�hich the City
reserves the right to issue under the provisions of
Section 19 hereof.
(f) The term "bonds similarly secured" shall mean
the previously issue bonds, the bonds and the additional
bonds at the time outstanding.
SECTION 10: Pledge. The City of Lubbock covenants, reaf-
firms and agrees.t at all of the net revenues of the System are
hereby irrevocably pledged equally for the payment of principal
of and interest on the bonds, previously issued bonds and addi-
tional parity bonds, if issued under the conditions and in the
manner specified in this ordinance, all of which shall consti-
tute a first lien on and pledge of.the net revenues of the System.
SECTION 11: Rates and Charges_ The City of Lubbock cove-
nants , rea' ,t-1 �s and agrees t at so long as any of the revenue
bonds and co--nons authorized herein, and any of the previously
issued bonds and oupons remain outstanding and unpaid, it shall
fix and main-=—.— ~ates and collect charges for the facilities and
services affc=Ca.�= by its Electric Light and Power System, which
will produce income and revenues sufficient at all times to:
(1) _=_y all necessary operation, maintenance
and betterent charges and expenses of the System;
(2) Establish and fully maintain the "Bond Fund"
including the reserve portion thereof for the bonds
herein authorized, the previously issued bonds and for
any additicLal parity bonds hereafter issued in accord-
ance with the provisions hereof:
(3) Pay the requirements of all other lac:ful obli-
gations and indebtedness of the System chargeable against
the System, as and when the same shall accrue and become
due.
SECTION 12: System Fund. All receipts, revenues and in-
come of every nature in any manner derived from ownership and
operation of the System shall constitute a separate and sacred
fund which in no event shall be -diverted or drawn upon except
under the provisions and for the -purposes herein prescribed.
All such receipts, revenues and income shall b e paid over and
deposited with City's depository within twenty=four.(24) hours
after collection. The account to which said Fund.'hall be de-
posited shall be known as th-e ELECTRIC LIGHT AND P014ER SYSTEMS
FUND (hereinafter referred to as the "System Fund") to be kept
separate and part from all other City funds or accounts. Spe-
cifically as related to the bonds herein authorized and the
previously issued bonds, the System Fund shall be and is hereby
pledged and shall be devoted and applied to the purposes enumer
ated in Section 13 following and in the order of precedence shown
therein.
SECTION 13: Flow of System Fund. All moneys paid over and
deposited in t e System Fund as provided in Section 12 above shall
be pledged, appropriated and employed as follows:
(1) For the payment of those necessary and reasonable
expenses of operating and maintaining the System as are set
forth in Section 9(b) hereof relating to the definition of
"net revenues", and -
(2) To the "Special Electric Light and Power System
Revenue Bond Retirement and Reserve Fund" (hereinafter re-
ferred to as the "Bond Fund") heretofore created and hereby
reaffirmed for the bonds, previously issued bonds and such
additional parity bonds as may hereafter be issued under
the provisions of Section 19 hereof. Said Bond Fund shall
be used for no purpose other than for the payment, redemp-
tion and retirement of such bonds and the interest thereon
in accordance with the terms and provisions of the ordinances
authorizing their issuance. All funds received from the
purchasers of�such bonds as accrued.interest thereon shall
be placed in the Bond Fund. The City covenants, reaffirms
and agrees to provide the Bond Fund with all amounts required
to pay as due, each of the principal and interest install-
ments -pertaining to all bonds, previously issued bonds and
additional parity bonds, and that in addition thereto said
Bond -Fund shall contain a Reserve Portion. Said Reserve
Portion of the Bond Fund presently contains not less than
$1,625,000 (which amount is the sum required to be on deposit
there=in by the provisions of the ordinances authorizing the
previ:-+sl: issued bonds) .
r: e= before the 1st day of September, .1981, and on or be
fore =-e first day of each month thereafter, the City shall
deposit into the reserve fund portion of the Bond Fund the
addit-Ly amount of $4,583.34 and --,-such- monthly deposit shall
contin-._L ro be made until tie Reserve Portion of the Bond
Fund contains the sum of $1,900,000 (which includes the
amoun_s -required to be deposited in said reserve by the
provisions of the ordinances authorizing rhe previously issued
bonds) in cash and book value of investment securities, such
total amount being not less than the average annual principal
and interest requirements of all series of bonds trhich are
secured by a first lien on and pledge of the net revenues of
the System and which are to be outstanding after the issu-
ance of the bonds herein authorized_ In the event the City
elects to increase the monthly deposits to the reserve fund
portion of the Bond Fund, the amount in excess of the requirec
monthly deposit shall serve as a credit to the amount requirec
to be deposited in the next month or months.
Said Reserve Portion shall be made available for
and reasonably employed in.meeting the requirements of
the'Bond Fund if need be, and if any amount thereof is
so employed, said Reserve Portion shall be supplemented
out to the first System Funds available therefor to such
extent as will, as rapidly as possible., fully restore
same to the sum of .$1,900,000
The ordinances of the City Council authorizing any
series of additional parity bonds shall make due provision
for supplementing, if necessary, the Reserve Portion of the
Bond Fund so that same shall be accumulated and maintained
in an amount equal to not less than the average annual
principal and interest requirements of all series of bonds
then to be secured by a first lien on and pledge of the net
revenues of the System and which will be outstanding upon
the issuance of any series of additional parity bonds.
SECTION 14: Method of Providing Amounts for Princi al
and Semiannua nterest Requirements of theBond-s-. Immediately
fo owing the delivery of t e on s herein aut orized and on
or before each May 1 and November 1 following such delivery the
City Treasurer shall calculate the amount of money which is re-
quired to pay the interest on the bonds on the next succeeding
interest payment date herein authorized and cause such amount
to be deposited in the Bond Fund in equal monthly installments.
Immediately following the delivery of the bonds herein author-
ized and on or before the first day of each May following such
delivery the City Treasurer shall calculate the amount of money
which is required to pay any principal of the bonds herein au-
thorized which is scheduled to mature within 12 months and cause
such amount to be deposited in the Bond Fund in equal monthly
installments. Such amounts, as determined to be required, shall
.be withdrawn from the System Fund on or before the first day of
each month, except that the initial deposit following the de-
livery of bonds shall be made as soon as possible following such
delivery of bonds. The deposits required to be made (by the
provisions of this Section) are in addition to the amounts re-
quired to be paid into said Bond Fund for the purpose of paying
the principal of and interest on the previously issued bonds as
prescribed by the ordinance authorizing their issuance.
In the event the income and revenues of the System are
insufficient in any month to permit the required deposits.into
the Bond Fund in accordance with the provisions hereof or if
for any other reason the City shall fail to make the required
deposits into the Bond Fund ('including the Reserve Portion if
same has become depleted), the amount of such deficiencies shall
be` -made up as promptly as available System Funds'will permit.
SECTION 15: Sur lus' Revenues. After all requirements of
Section and ( ereot have Seen satisfied and all similar
requirements of any additional parity bonds hereafter issued and
after all deficiencies existing in such requirements have been
remedied, surplus revenues of the System may be used for any other
proper City purposes now or hereafter permitted by General Law,
including the use thereof_=for reti-rzng_in_adti:ance_of-_maturity any
such bonds or additional parity bonds- by purchase on the open
market at not exceeding the market value thereof_. Nothing herein
shall be construed, however, as impairing the right of the City
to pay, in accordance with the provisions thereof_, any junior
lien bonds legally issued by it.
SECTION 16: Security for Electric Li ht* and Power S stem
Bond Fun F- A fun s e -rein prove e or the Bon un ereto
fore est- lished and herein reaffirmed shall be kept separate and s
apart from all other City funds and shall be continuously secured
by a validpledge of direct obligations of, or obligations uncon-
ditionally guaranteed by the United States of America, having a
par value; or market value when less than par, exclusive of accrued
interest, at all times at least equal to the amount of money to be.;
deposited in said Fund. All -sums deposited in said Bond Fund shall
be held as a trust fund for thb benefit of the holders of the bonds
herein authorized and the previously issued bonds,
herein beneficial
interest in which shall be regarded as existing in such holders.
To the extent that money in the Reserve Portion of the Bond Fund I
is invested under the provisions of Section 18 hereof, such security
is not required.
SECTION 17: Custodian of Bond Fund_ The custodian of the
Bond Fund s a e the City's o i.cia epository bank, and all
deposits prescribed shall be placed in'said Fund with said
custodian bank. Prior to each interest and principal maturity
date, it shall be the duty of the City Treasurer to withdraw from
said Fund and place with the paying agent banks money in such
amounts as will be fully sufficient to pay and at such times as
will permit prompt payment of each interest and principal: install-
will
mens..
SECTION 18:Investment of Reserve Portion of Bond Fund.
an
The custo fank shall, n , w eaut Drize L,13ty ounce ,
invest the Reserve Portion of the Bond Fund in direct obligations
of, or obligations guaranteed by the United States of America, or
invested in direct obligations of the Federal -Intermediate Credit
Banks, Federal Land Banks, Federal National Mort'age Association,
Federal Home Loan Banks or Banks for Cooperatives, and which such
investment obligations must mature or be subject to redemption at .!
the option, of.the 'holder, within not to exceed ten years from the
date of making the investment. Such obligations shall be held by
the depository impressed with the same trust for the benefit of the
bondholders as the Bond Fund itself, and if at any time uninvested:
funds shall be insufficient to permit payment of principal and
interest maturities herein authorized as herein directed, the said
depository shall sell on the open market such amount of the securi-
ties as is required to pay said bonds and interest when due and
shall give notice thereof to the City Treasurer. All moneys re-
sulting from maturity of principal and interest of the securities
in which the reserve funds are invested shall be reinvested or
accumulated in said Reserve Portion of said Bond Fund and con-
sidered a part thereof and used for and only for the purposes
hereinabove provided with respect to said reserve, provided that
when the full amount required to be accumulated in the Reserve
Portion of the Bond Fund (being the amounts required to be accumu-
lated by the ordinances authorizing the bonds similarly secured),
be in thethe
any interest increment may
payments that would otherwise beerequired Bonpayund thetdebtduce se vice
requirements on bonds similarly secured.
"= SECTION 19: Issuance of Additional Parity Bonds. In addi-
tion to^ the ri_g t to issue bonds o it erzor len as authorized
by the laws of the State of Texas, the City of Lubbock reserves
the right to issue additional revenue bonds payable from the net
income and revenues of the System, and when issued in compliance
with law and the terms and conditions hereinafter appearing. such
additional bonds shall occupy a position of parityen on witpledgeand shall
of
be equally and ratably secured by
the net revenues of the System to the same extent as the series
of bonds authorized by this ordinance and the previously issued
bonds. The City hereby covenants, reaffirms and agrees that no
additional bonds or other obligations payable from the net reve-
nues of its Electric Light and Power System shall b e issued on a
parity with the series of bonds herein authorized and with the
previously issued bonds, unless and until the following condition:
have been met:
(a) That the Mayor and City Treasurer have certi
fied that the City is not then in default as to any cove-
nant, condition or obligation prescribed by this ordinance,
the ordinances authorizing the issuance of the previously .
issued bonds, or any ordinance authorizing the issuance of
additional parity bonds then outstanding, including showings
that all interest, sinking and reserve, funds. then provided
for have been fully maintained in accordance with the pro-
visions of said ordinanceq;
,(b) That the applicable laws of the State of Texas in
force at the time provide permission and authoirty for the
issuance of such bonds and have been fully complied with;
(c) That the City has secured from an independent
Certified Public Accountant his written report demostrating
that the net revenues of the System were, during the last
completed fiscal year, or during any consecutive twelve
(12) months period of the last fifteen (15) consecutive
months prior. to the month of adoption of. the ordinance
authorizing the additional parity bonds, equal to at
least one and one-half (1-1/2) times the average annual
principal and interest requirements of all the bonds which
will be secured by a first lien on and pledge of the net
revenues of the System and which will be outstanding upon
the issuance of the additional parity bonds; and further
demonstrating that for the same period as is employed in
arriving at the aforementioned test said net revenues were
equal to at least one and one-fifth (1-1/5) times the maxi-
mum annual principal and interest requirements of all such
bonds as will be outstanding upon the issuance of the addi-
tional parity bonds;
(d) That the additional parity bonds are made to
mature on April 15 or October 15, or both, in each of the
years in which they are provided to mature;
(e) As hereinabove provided the Reserve Portion of
the Bond Fund shall be accumulated and supplemented as
necessary to maintain it in a sum which shall be not less
than the average annual principal and interest requirements
of all bonds secured by a first lien on and pledge of the
net revenues of the System which will be outstanding upon
the issuance of any series of additional parity bonds.
Accordingly, each ordinance authorizing the issuance of
any series of additional parity bonds shall provide for
any required increase in said Reserve Portion, and,.if
:.. supplementation is necessary to meet all conditions of
said Reserve Portion, said ordinances shall Lake provision
that same be supplemented by the required amounts in
equal monthly installments over a period of not to exceed
sixty (60) calendar months from the dating of such addi-
tional parity bonds.
When thus issued, such additional parity bonds may be
secured by a pledge of the revenues of the City's System on a
parity in all things with the pledge securing the issuance of
the bonds herein authorized and the previously issued bonds.
SECTION 20: Maintenance and Operation. The City of Lubbock
hereby covenants, rea arms an agrees that it will maintain the
System facilities in good condition and operate the same in an
effecient manner and at reasonable costs so long as the bonds,
previously issued bonds or the additional parity bonds are out-
standing and unpaid. The City further agrees to maintain insur-
ance for the benefit of the holder or holders of the bonds of the
kinds and in the amounts which are usually carried by private com-'.
panies operating similar properties, and that during such time all.
policies of insurance'shall be maintained in force and kept current
as to premium payments. All moneys received from losses under
such insurance policies other than public liability policies are
hereby pledged as security for the bonds until and unless the pro
ceeds thereof are paid out -in making good the loss or damage in
respect of which such proceeds are received, either by replacing
the property destroyed or repairing the property damages, and
adequate provisions made within ninety (90) • days after the date
of the loss for making good such loss or damage. The premiums
for all insurance policies required under the provisions of this
section shall be considered as maintenance and operation expenses.
SECTION 21: Records' and Accounts. The City of Lubbock here-
by covenants, reaffirms and agrees that so long as any of the
bonds herein authorized or the previously issued bonds, or any
interest thereon, remain outstanding and unpaid, it will keep and
maintain a proper and complete system of books, records and ac-
counts pertaining to the operation of the System, separate and
apart from all other records and accounts in which complete and
correct entries shall be made of all transactions relating to the
System as provided by applicable law, and that the holder or holders
of any of the bonds or any duly authorized agent or agents of such
holders shall have the right at all reasonable times to inspect
all such books, records, accounts and data relating thereto and
to inspect the System and all properties comprising same: The
appropriate City officials are hereby instructed and directed to
do any and all things necessary or covenient in reference to keep-
ing and maintaining of such books, records and accounts and to
make the moneys available for payment of the bonds in the manner
provided by the aforementioned statute. The City further agrees
that within sixty (60) days following the close of each fiscal
year it will cause an audit of its books and accounts to be made
by an independent firm of Certified Public Accountants showing
the receipts and disbursements for the account of the System for
the fiscal year. Each such audit shall, in addition to whatever
-other matters may be thought proper by the Accountant, particularly
include the following:
(a) A detailed statement of the income and expen-
ditures for account of the System for such fiscal year;
(b) A balance sheet as of the end of such fiscal
year;
(c) The Accountant's comments regarding the manner
in which the City has carried out the requi_ements of this
ordinance, and his recommendations for any ehar_ge or im-
provements in the operation, records and accou-=s of the
System;
(d) A list of the insurance policies =orce
at the end of the fiscal year on system prope=ties,
setting out as to each policy the amount ther-ecf, the
risk covered, the name of -the insurer and ;A ` policy's
expiration date;
(e) A statement verifying that the securities
herein specified therefor have been on deposit as security
for the money in the Electric Light and Power System bond
Fund throughout the fiscal year, and a list of the securi-
ties, if any, in which the reserve portion of such Special
Fund have been invested;
(f) The number of metered and unmetered customers,
if any, connected with any department of the System,
showing totals at the end of the fiscal year.
roll` �
Expenses incurred in making the audits above required are to
be regarded as maintenance and operation expenses and paid as.such.
Copies of the aforesaid annual audit shall.be promptly furnished
the -original purchasers: of the bonds. and any subsequent holder at
his request. At -the close of the.first six months' period of the .
fiscal year, the City Manager is directed to furnish a copy of ari.
operating and income statement in reasonable detail covering such
period to any bondholder upon his request therefor; received not
more than thirty days after thV, close of said six months' period.
Any bondholder shall have the right to discuss with Accountants
making the annual audit the contents thereof and to ask the City
Manager for such additional information as he may reasonably request
SECTION 22: Remedy in Event of Default. In addition to
all theri�and reme ies provided y law 3' the State of Texas,
the City covenants and agrees particularly that in the event the
City (a) defaults in payment of principal or interest on any of
the bonds when due, (b) fails to make the payments into the Bond
Fund as required by this ordinance., or.(c) defaults in the obser-
vance or performance of any other of the covenants, conditions or
obligations set forth in this ordinance, the holder or holders of
any of the bonds shall be entitled to - a writ ' of mandamus issued by
a court of proper jurisdiction compelling and requiring the City
Council and other officers of the City to observe and perform any
covenants, obligations or conditions prescribed in the bond ordin-
ance. No delay or omission to exercise any right or power accruing
upon any default shall impair any such power or right or shall be
construed to be a waiver of any such default or acquiescence there-
in, and every such, right and power may be exercised from time to
time and as often as may be deemed expedient.
The specific remedy herein provided shall be cumulative of
all other existing remedies and the specification of such shall -
not be deemed to be exclusive.
SECTION 23: Sale, Lease or Other Encumbrance of Svstem.
The Ci.tyofLubboc urt er covenants, reatfirms, binds and obli-
gates itself not to sell, lease or in any manner dispose of the
System, its properties, or any part thereof, includi.ne: any and all
extensions and additions that may be made thereto, and it acknowl-
edges and accepts restraint from doing so until the bonds and
previously issued bonds shall have been paid in full as to both
principal and interest at maturity; or under the provisions hereof
relating to their redemption prior to maturity, or unti otL-er
arrangements have been made for continuance of payment of prin-
cipal and interest then outstanding for the full retirement
thereof; provided, however, that this covenant shall not b=
construed to prevent the disposal by the City of property C_ic_
in:its judgement has become inexpedient to use in connectLn=r. th
the System when other property of equal value has been subs =ted
therefor.
SECTION 24: Further Covenants. The City further cove --=-_s ,
reaffirms an agrees by and t roug this ordinance as folloks:
(a) That it has the lawful power to pledge the
revenues supporting this issue of bonds and has law-
fully exercised said power under the Constitution and
laws of the State of Texas, including the powers
existing under Articles 1111 through 1118, and Article
2368a, V.A.T.C.S., and that the bonds, the previously
issued bonds and any additional parity bonds issued pur-
suant to the provisions hereof shall be ratably secured
in such manner that no one bond of any such issues shall
have preference over any other bond of such issues.
r
(b) That the net revenues and income of the System
are pledged exclusively to the payment of the bonds, the
previously.issued bonds and such additional parity bonds
as may hereafter be issued.pursuant to the provisions -
hereof; -that said net revenues and income have not
been pledged in any mannerto the payment of any other
debt or obligation of the 'City or the System and other-
wise said System is free and clear of all encumbrances
whatsoever.
(c) That nothing in this ordinance shall require.
the City to make any expenditure except from money in the
System Fund, but nothing herein shall prohibit the City
from doing so at its election.
(d) That e..xcept under the conditions of this ordi-
nance relating to parity bonds, the City will not suffer
any. indebtedness on a parity or superior to the bonds of
this issue and the previously issued bonds to accrue to
or against the City or said System, and that if the System
shall become liable for any other indebtedness, the .City
Council will -fix and maintain rates and collect charges -
for the services afforded by the System entirely suffi-
cient to discharge any .such. indebtedness or obligation.
(e) The City will cause to be rendered monthly to
each customer receiving electric services a statement
therefor and will not accept payment of less than all of
any statement so rendered, using its powers under existing
ordinances and under all such ordinances to become effective
in the future to enforce payment, to withhold service
from such delinquent customers and to enforce and author-
ize reconnection charges.
(f) That the City will faithfully and punctually
perform all duties with respect to the System required by
the Constitution and laws of the State of Texas, including
the making and collecting of reasonable and sufficient
rates for services supplied by the System, and the segre-
gation and application of the revenues of the System as
required by the provisions of this ordinance.
(g) o free service shall be provided by the System
and to the extent the City of Lubbock or its departments
or agencies utilize the service provided by the System,
payment shad be made therefor at rates charged to others
for similes= service.
SECTION 25. C= inance to Constitute Contract. That the
provisions t ==� T mance shaii constitute a contract between
the City of Lubbock and the holder or holders from time to time
of the bonds. herein authorized to be issued, and after the issuance
of any of said b= no change, variation or alteration of
any kind of the pa.:;,i.sions of this ordinance may be made, unless
as herein otherv1se provided, until all of the bonds issued here-
under shall have been paid as to both principal and interest.
SECTION 26: Mayor to Have Charge of Records and Bonds.
That the Mayor of said ity snall be, and He is ere y authorized
to take and have charge of all necessary records and orders pend-
ing investigation by the Attorney General of the State of Texas,
and shall take and have charge and control of the bonds herein
authorized pending their approval by the Attorney General and
their registration by the Comptroller of Public Accounts. It
shall be the duty of the Mayor (:or attorneys acting for the City)
to submit the record of said bonds and the bonds to the Attorney
General of the State of Texas for approval and thereafter to have
the bonds registered by the Comptroller of Public Accounts.
SECTION 27: Bonds are Special obligations. The bonds are
species b igations o t e C1ty paya a from the pledged revenues,
and the holders thereof shall never have the right to demand pay
meat thereof out of funds_ raised or to be raised by taxation. .
SECTION 28: Bonds as Negotiable Instruments. Each of the
bonds herein authorize s a e d emed an - construed to be
a "Security," and as such a negotiable instrument,'within the
meaning of Article 8 of the Uniform Commercial Code.
SECTION 29: Printed Leal Opinion on Bonds. The purchasers`
obligation to accept delivery ot the bonds herein authorized is
subject to their being furnished a final opinion .of Messrs. Dumas,
Huguenin, Beothman and Morrow, Attorneys,' Dallas, Texas, approving
such bonds as to their validity, said opinion to be.dated and
delivered as of the date of delivery and payment for such bonds.
Printing of a true and correct copy of said opinion on the re-
verse side of each.of such bonds with appropriate certificate
pertaining thereto executed by facsimile signature of the City
Secretary is hereby approved and authorized.
SECTION '30:- CUSIP'.Numbers CUSIP numbers may be printed
on the bonds herein aut orize .•-It is expressly provided, however,
that the presence or absence of CUSIP numbers on the bonds shall
be of no significance or effect as regards the legality thereof
and neither the City nor attorneys approving said bonds as to
legality are to be held responsible for CUSIP numbers incorrectly
printed on the bonds.
SECTION 31: No Arbitra e. That the City.hereby covenants
that t e procee s o t e on s are needed at this time to finance
the costs of capital improvements planned by the City; based on
current facts, estimates and circumstances, it is reasonably_
expected final disbursement of the bond proceeds will occur with-
-in three years from the date of the receipt thereof by the City;
it is not reasonably expected that the proceeds of the bonds or
moneys deposited in the special Funds referred to herein for
the payment and security of the bonds will be used or invested
in a manner that would cause the bonds to be "arbitrage bonds"
within the meaning of Section 103(c) of the internal Revenue Code
of 1954, as amended, or any regulations or published rulings per-
taining thereto; and save and except for the special Funds referred
to herein, no other funds or accounts have been established or
pledged for the payment of the bonds. Proper officers of the City
charged with the responsibf ity in the -issuance of the bonds are
hereby authorized and directed to make, execute and deliver
certifications as to facts. es-imates and circumstances in existent
as' of the date of issue of --ha bonds and stating whether there
are any facts, estimates c_ c-cumstances which would materially
change the City's current e=_ctations, and the covenants herein
made and certifications herein authorized are for the benefit of
the holders .-.of the bonds =--d oupons appertaining thereto and
may be relied upon by the b_= -solders and bond counsel for the
City.
SECTION 32: The Series 1981 Bonds are being authorized
for the purpose of providing funds for making improvements and
extensions to the City's Electric Light and Power System, i.e.
improvements and extensions to the transmission and distribution
facilities and it is currently anticipated that the proceeds
thereof will be expended for certain improvements and extensions
to the transmission syster, and distribution system as follows:
Transmission System
1. Upgrade Cooperative, Vicksburg, and Chalker substations and
extend the 69 KV transmission along 82nd Street to serve Chalker.
substation.`
2. Extend the second circuit of Lubbock Power and Light's existing
115 KV transmission line from its present termination at 50th Street
and East Loop '289 to Plant #2. Construct a future substation in
Northeast Lubbock along the proposed line route to assume part of
the load when Plant #2 is retired.
3. Upgrade Lubbock Power and Light's present computer capabilitie
and install remotes in all major substations to fully coordinate
relaying and line switching and to greatly improve Lubbock Power
and Light's emergency response capabilities.
Distribution System
Extensions of and improvements to the existing distribution system
including additional distribution circuits for substations, exten-
sions from existing line terminals to new areas of'service, trans-
formers, meter pedestals,. poles, and crossarms; regulators,
capacitors, meters, service lines and other appurtenances.
It is currently anticipated that all of the foregoing improve-
ments may be constructed with the proceeds to be available from
the sale of the Bonds, the City, however, reserves the right to
utilize the proceeds of the Bonds to construct all or any part
of the proposed improvements or to construct other or additional
improvements for improvements and extensions to the transmission
and distribution systems in the event there are sufficient proceeds
orinthe event a delay in the delivery of the Bonds requires the
utilization of current funds for such system improvements.
SECTION 33: Effective Date. This ordinance shall take
effect and be in force immediately from and after its passage,
on second and final reading and IT IS SO ORDAINED.
PASSED AND APPROVED ON FIRST READING, this day of
1981.
PASSED AND APPROVED ON SECOND READING, this day of
1981.
Mayor, City of Lubbock, Texas
ATTEST:
City Secretary, City of
Lubbock,. Texas '
(City Seal)
!" CERTIFICATE -OF CITY.SECEETARY
THE STATE OF TEXAS §
§
,COUNTY OF LUBBOCK §
CITY OF LUBBOCK §
I, the undersigned, City-Stcretary of the City of Lubbock,
Texas, DO HEREBY CERTIFY as follows: -
1. That on the day of 1981, the City Council
of the City of Lubbock, Texas, convened in regulate session
at its regular meeting place in the City Hail of said City;
the duly constituted menbers of the Council being as follows:
BILL MC ALISTER MAYOR
ALAN HENRY )
M.J. ADERTON COUNCIL�iEl"iBERS
E. JACK BROWN )
JOAN BAKER )
and all of said persons were present at said meeting, except
the following:
Among other business considered at said meeting, the attached
ordinance entitled:
"ORDINANCE NO.
AN ORDINANCE by the City Council of the City of Lubbock,
Texas, authorizing the issuance of $9,000,000 "CITY'
OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER SYSTEM
REVENUE BONDS, SERIES 1981", for the purpose of
providing funds for making improvements and extensions
to the City's Electric Light and Power System, i.e_
improvements and extensions to the transmission and
distribution facilities, as authorized by the General
Laws of the State of Texas, particularly Article 1111,
et seq and Article 2368a, V.A.T.C.S.; prescribing
the form of the bonds and the form of the interest
coupons; pledging the net. revenues of the City's
Electric Light and Power System to the payment of the
principal of and interest on said bonds; and enacc_ng
provisions incident and relating to the subject ar_d
purpose of this ordinance; and providing an effect= -.e
date. "
was
" introduced and submitted to the Council for pzssage and
adoption on first reading. After presentation and due considera-
tion of the ordnance, a motion was made by
that the ordinance be passed on first reading. The motion
was seconded by and carried by the followi
vote_:
voted "FOR" voted "AGAINST" abstained
all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
2. That on the day of 1981, the City Council
of the City of Lubbock, Texas, convened in special session
at its regular meeting place.in the City Hall of said City;
the duly -constituted members of the Council being as follows:
BILL MC ALISTER :'i:-NYOR
ALAN HENRY )
M.J. ADERTON ) COUNCILriEriBERS
�J
F. JACK BROWN ) ��'�
JOAN BAKER ) ro
ell
and all of said persons were present at said meeting, except
the following:
Among other business consi ered at said meeting, the attached
ordinance entitled:
"ORDINANCE NO.
AN ORDINANCE by the City--Cpuncil of. the City of Lubbock,
Texas, authorizing the issuance of $9,-000,000 "CITY
OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER SYSTEM
REVENUE BONDS, SERIES 1981", for the purpose of
providing funds for making improvements and extensions
to the City's Electric Light and Power System, i.e.,
improvements and extensions to the transmission and
distribution facilities, as authorized by the General
Laws of the State of Texas, particularly Article 1111,
et seq and Article 2368a, V.A.T.C.S.; prescribing
the formof the bonds and the form of the interest
coupons; pledging the net revenues of the City's .
Electric Light and Power System to the payment of the
principal of and interest on said bonds; and enacting
provisions incident and relating tc the subject and
purpose of this ordinance; and providing an effective
date."
was introduced and submitted to the Council for passage and
adoption on second and final reading. After presentation and due
consideration of the ordinance, a motion was made by
that the ordinance be passed on second and final reading.
_ The motion was seconded -by and carried by
the following vote:
voted "FOR" voted "AGAINST" abstained
all as shown in the official Minutes of the Council for the
meeting held on the -aforesaid date.
3. That the attached ordinance is a true and correct
copy of the original on file in the official records of the
City; the duly qualified and acting members of the City Council
of said City on the date of the aforesaid meetin00
gs are these
persons shown above and, according to the records of my office,
each member of the Council was given actual notice of the time,
.place and purpose of the meetings and had actual notice that the
;atrer would be considered; and that said meetings, and delibera-
ticm of the aforesaid public business, were open to the public
2-m -written notice of said meetings, including the subject of
�=:entitled ordinance, was posted and given in advance thereof
compliance with the provisions of Article 6252-17, Section 3A,
V_3.T.C.S.
IN WITNESS WHEREOF, I have hereunto signed my name officially
P-daffixes? the seal of said City, this the day of
ltw , 1981
City Secretary, City o
Lubbock, Texas
(City Seal)
F
REPORT OF CERTIFIED PUBLIC ACCOUNTANT
:i_iF., STATE OF TEXAS § _
COUNTY OF LUBBOCK §
I, /the undersigned, Larry Anderson
Certified•Public
of 2".ason Nickels and Warner'
Accountants, DO HEREBY.MAKc. the following report:
i_ That the total gross revenues, operation and -maintenance
expenses and net revenues froom the operation of the Electric
Light and Pcwer System of the City of Lubbock, Texas, for the
fiscal year ending September 30, 1980, as shown by the City's
Cooks are as follows:
operating and Main- Net
Fiscal Year Gross g Revenues
Ending 9130 Revenues tenance Expenses
1980 $29,891,540 $24,870,851 $5,020,689
2. That the net revenues of the City's Electric Light
and Power System for the fiscal year ending September 30, 1980,
are equal to at -least one and one-half (-1/2) times the average
an-nual principal and interest requirements of all bonds which
will be secured by a first lien on and pledge of the net revenues
of the System which will be outstanding after the issuance of
Electric Light and Power
the proposed "City of Lubbock, Texas, d
System Revenue Bonds, Series 1981" dated August 15, 1981; said
proposed bonds being dated August 15, 1981; maturing on April 15
;n each of the years as follows: $450,000 1983 through 2002,
i0 �10 per annum, payable on April 15, 1982
bearing interest at
and. semiannually therea=mer on October 15 and April 15 in each
year) and further, that. said net revenues are equal to at least
one and one-fifth (1-1/5) times the maximum annual principal
and interest reouirements of all such t-onds as «ill be outstanding -
upon the issuance of the aforesaid Series 1981 Bonds_
kh4 e
Certi�- d Public Accountants
I . dus �0_�
BY:
SWORN TO AND SUBSCR-=='=' 'BEFORE Imo, =Y" s the
day of
1981.
Gr�71t4
Notary Public in and for
Lubbock County, Texas
(Notary Seal)
NOTICE OF SALE
CITY OF LUBBOCK, TEXAS
The City Council of the City of Lubbock, Texas, will
receive sealed bids at the City Hall, Lubbock, Texas, until
M., Central Time,
1981, for the
following described bonds:
$9,000,000 City of Lubbock, Texas Electric Light and
Power System Revenue Bonds, Series 1981
Dated August 15, 1981; maturing $450,000 each year
April 15, 1983 through 2002. Denomination $5,000.
Optional at par and accrued interest on April 15,
1991, or any interest payment date thereafter.
Further information may be obtained from the Division
of Finance,City of Lubbock, Texas, P. 0. Box 2000, Lubbock,
Texas 79457; or from First Southwest Company, Mercantile Bank
Building, Dallas, Texas 75201, Financial Consultants to the
City.
City Secretary -Treasurer
City of Lubbock, Texas
(City Sea 1) '
a`
NOTICE OF SALE"""'1
AND
BIDDING INSTRUCTIONS
ON
59,000,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
ELECTRIC LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES 1981
Selling `" 19 , at ,
THE SALE
Bonds Offered for Sale at Com etitive Bidding .. The City of Lubbock, Texas (the "City"), is
offering or sae its $9,000,000 Electric Lignt and Power System Revenue Bonds, Series 1981
(the "Bonds").
Address of Bids... Sealed bids, plainly marked "Bid for Bonds", should be addressed and
delivered to "Mrs. Evelyn E. Gaffga, City. Secretary, City of Lubbock, Texas", prior to
91, on the date of the bid opening. All bids must be submitted on the Official Bid Evan,
w pout alteration or interlineation.
Place and Time of Bid Opening . The City Council will open and publicly read the bids for the
purchase of the Bons at the City Hall, Lubbock, Texas, at
19
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 Aunust I5, 1981, and interest coupons will be due on
April , 1982, and each October 15 era April Ii 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 April 15 in each year as
follows:
Principal Principal Principal
Year Amount Year Amount Year Amount
T§ 0,000 IM3 TSG $4506
1984 450,000 1991 450,000 1997 450,000
1985 450,000 1992 450,000 1999 450,000
1986 450,000- 1993 450,000 1999 450,000
1987 450,000 1994 450,000 2000 450,000
1988 450,000 1995 450,000 2001 450,000
1989 450,000 2002 450,000
The City reserves the right, at its_option, to redeem Bonds maturing April 15,
1992, through April 15, 2002, both inclusive, in whole or any part thereof,
on April 15, 1991, or any interest payment date thereafter, at the price of
par and accrued interest to the date fixed for redemption plus a premium of
2-1/2% of the principal amount called for redemption on April 15, 1991, such
premium reducing 1/2 of 1% on each April 15 thereafter until April 15, 1996,
on and after which date said bonds shall be optional at the price of par
and accrued interest.
Source of Payment ... The Bonds are special obligations, and, together with the other outstand-
ng parity bonds, are payable solely from and secured by a first lien on and pledge of the
revenues of the Electric Light and Power System, after deduction of reasonable expenses of
operation and maintenance.
CONDITIONS OF THE SALE
T es of Bids and Interest Rates The Bonds will be sold in one block on an "All or None"
basis, and at a price of not less than their par value plus accrued interest to the date of
delivery of the Bonds. Bidders are invited to name the rate(s) of interest to be borne by the
Bonds, provided.that each rate bid must be in a multiple of 1/8 of 1% or 1/20 of 1% and the
effective interest rate must not exceed 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
- i ..
' 49
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.
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 80,0 .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 o 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,
exas, 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 19 , and it is understood and
agreed that the Purchaser will accept delivery an make payment for the Bonds by 10:00 AM, CDT,
on _, 19_, or thereafter on the date the Bonds are tendered for delivery, up to
and including,19 If for any reason the City is unable to make delivery on
or before , T9 then the City shall immediately contact the Purchaser and
offer to allow t ePurchaser 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 Deli ... The obligation of the Purchaser to take up and pay for the Bonds is
su pec 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,
e y w execute an a ver o 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
urc aser may withdraw w his bid if the interest received -by private holders from bonds of the
same type and character shall be declared to be taxable income under present Feder&1 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 Sky Laws-... By submission of his bid, the Purchaser represents that the sale of the Bonds
state— 5 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
on s, but is merely notice of the sale of the Bonds. The offer to sell the Bonds is being made
by means of the Notice of Sale and Bidding Instructions, the Official Bid Form and the Official
Statement. Prospective purchasers are urged to carefully examine the Official Statement to
determine the investment quality of the Bonds.
Issuance of Additional Bonds ... The City has no plans to sell additional Electric Light and
Power System evenue Bonds.
Ratin s The outstanding Electric Light and Power System Revenue Bonds of the City are rated
"A " y Moody's Investors Service, Inc. and "AA" by Standard & Poor's Corporation. Applica-
tions 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.
The Official Statement .. The City will furnish to the Purchaser, without cost, 100 co ies of
the Official Statement (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
'o -this Notice of Sale and Bidding Instructions, the Official Bid Form and the Official
Statement, as available over and above the normal mailing, may be obtained at the offices of
First Southwest Company, Investment Bankers, 900 Mercantile Bank Building, Dallas, Texas 75201,
Financial Advisors 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 day of 19 approved the form
and content of the Notice of Sale and Bidding Instructions, a OfficialWd 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.
ATTEST
EVELYN E. GAFFGA
City Secretary
_, 19
BILL McALISTER
Mayor
i
BOND YEARS
Accumulated
Year Amount Bond Years Bond Years Year
1983 S 450,000 749.997 749.997 1.983
1984 450,000 .1,199.997 1,949.994 1984
1985 450,000 1,649.997 3,599.991 1985
1986 450,000 2,099.997 5,699.988 1986
1987 450,000 2,549.997 8,249.985 1987
1988 450,000 2,999.997 11,249.982 1988
1989 450,000 3,449.997 14,699.979 1989
1990 450,000 3,899.997 18,599.976- 1990
1991 450,000 4,349.997 22,949.973. 1991
1992 450,000 4,799.997 27,749.970 1992
1993 450,000 5,249.997 32,999.967 1993
1994 450,000 5,699.997 38,699.964 1994
1995 450,000 6,149.997 44,849.961 1995
1996 450,000 6,599.997 51,449.958 1996
1997 450,000 7,049.997 58,499.955 1997
1998 450,000 7,499.997 65,999.952 1998
1999 450,000 7,949.997 73,949.949 1999
2000 450,000 8,399.997 82,349.946 2000
2001 450,000 8,849.997 91,119.943 2001
2002 450,000 9,299.997 100,499.940 2002
Average Maturity ----------------------- 11.167 Years
—1Y-
0
OFFICIAL BID FORM°
' Honorable Mayor and City Council —+ 19_
City of Lubbock
Lubbock, Texas
Mayor and Members of the City Council:
Reference is made to your Official Statement and Notice of Sale and Bidding Instructions, dated
19 , of $9,000,000 CITY OF LUBBOCK, TEXAS ELECTRIC LIGHT AND POWER SYSTEM
iiEV��E�bNW SER ETff 1981, 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 S for Bonds maturing and bearing interest
as follows:
Interest Interest Interest
Maturity_ Rate Maturity Rate Maturity Rate
4-15-1983 % 4-15-1990 % 4-15-1996 %
4-15-1984 % 4-15-1991 % 4-15-1997 %
4-15-1985 % 4-15-1992 % 4-15-1998 %
4-15-1986 % 4-15-1993 % 4-15-1999 %
4-15-1987 % 4-15-1994 % 4-15-2000 %
4-15-1988 % 4-15-1995 % 4-15-2001 %
4-15-1989 % 4-15-2002 %
Our calculation (which is not a part of this bid) of 'the interest cost from the above is:
Total Interest Cost $
Less Premium
NET INTERST COST S
EFFECTIVE INTEREST RATE %
Check of the Bank,
n the amount of $18D. 00.00, which represents our Good Faith Deposit (is attached hereto) or
(has been made available to you prior to the opening of.this bid), and is submitted in
accordance with the terms as set forth in the Official Statement and Notice of Sale and Bidding
Instructions. 1
We agree to accept delivery of and make payment for the Bonds at Bank,
Austin, Texas, not later than 10:00 AM, CDT, on , 19 , or thereafter on the date
the Bonds are tendered for delivery, pursuant to t>le terms set forth in the Notice of Sale and
Bidding Instructions.
Respectfully submitted,
By
Authorized Representative
ACCEPTANCE CLAUSE
The above and foregoing bid is hereby in all things accepted by the City of Lubbock, Texas, this
the day of , 14
Mayor
ATTEST:
City Secretary
Return of Good Faith Deposit is hereby acknowledged:
By
I'
This Official Statement does not constitute an offer to sell Bonds in any jurisdiction to any person to whom it is
unlawful to make such offer in such jurisdiction. No dealer, salesman, or any other person has been authorized to
give any information or make any representation, other than those contained herein, in connection with the offering
of these Bonds, and if given or made, such information or, representation must not be relied upon. The information
and expressions of opinion herein are subject to change without. notice and neither the delivery of this Official
Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no
change in the affairs of the City since the date hereof.
OFFICIAL STATEMENT
Dated +, 19.
INTEREST EXEMPT, IN THE OPINION OF BOND COUNSEL, FROM PRESENT FEDERAL INCOME
TAXES UNDER EXISTING STATUTES, REGULATIONS AND COURT DECISIONS
$9,000,000
CITY OF LUBBOCK, TEXAS
(Lubbock County)
ELECTRIC LIGHT AND POWER SYSTEM
REVENUE BONDS, SERIES 1981
Dated: August 15, 1981 Denomination: $5,000
Principal and semi-annual interest (April 15 and October 15) payable at
Citibank, N. A., New York, New York,
or, at the option of the holder, at
Texas Commerce Bank, National Association, Lubbock, Texas.
First interest coupon due April 15, 1982.
Coupon bearer bonds, not registrable.
These bonds (the "Bonds") will be authorized by ordinance as authorized by the General Laws of
the State of Texas, particularly Article 1111, et seq., and Article 2368a, V.A.T.C.S., and will
constitute special obligations of the City of Lubbock, payable, both as to principal and
interest, solely from and secured by a first lien on and pledge of the revenues of the Electric
E Light and Power System, after deduction of reasonable expenses of operation and maintenance.
MATURITY SCHEDULE
Amo, Maga-1983 Rate Yield Amount Matte Rate Yield
450,000 4-15-1984 450,000 4-1155-11994*
450,000 4-15-1985 450,000. 4-15-1995*
450,000 4-15-1986 450,000 4-15-1996*
450,000 4-15-1987 450,000 4-15-1997*
450,000 4-15-1988 450,000' 4-15-1998*
450,000 4-15-1989 450,000 4-15-1999*
450,000 4-15-1990 450,000 4-15-2000*
450,000 4-15-1991 450,000 4-15-2001*
450,000 4-15-1992* 450,000 4-15-2002*
* The City reserves the right, at its option, to redeem Bonds maturing April 15,,
1992, through April 15, 2002, both inclusive, in whole or any part thereof,
on April 15, 1991, or-any interest payment date thereafter, at the price of
par and accrued interest to the date fixed for redemption plus a premium of
2-1/2% of the principal amount called for redemption on April 15, 1991, such
premium reducing 1/2 of 1% on each April 15 thereafter until April 15, 1996,
on and after which date said bonds shall be optional at the price of par
and accrued interest.
Payment Record: The City has never defaulted.
Legality: Attorney General of the State of Texas, and
Messrs. Dumas, Huguenin, Boothman & Morrow Attorneys, Dallas, Texas.
inion Printed on the Bonds; See Legal 0 inions-
i
Delivery: Anticipated on or about , 19
The cover page hereof, this page, the appendix included herein and any addenda, supplement or
amendment hereto, are part of the Official Statement.
- 2 -
TABLE OF CONTENTS
Page
Official Statement:
Description of the Bonds -------------------------------------------------------
3
Elected Officials ---------------------------------------------------
3
Appointed Officials------------------------------------------------------------
3
Consultants and Advisors---------------------"-------------"-------"--"--------
4156
Introductory Statement---------------------------------------------------------
Electric
Light and Power System Operating Statement ----------------------------
6
Projected Electric Light and Power System Operations ---------------------------
----
"
6
Coverage and Fund Balances -------------------------------------------
6
Authorized Revenue Bonds -----=------------------------------------""--""-------
7
Debt Service Requirements-----------------------------------------'----'""-""-"
8
Value of the System------------------------------------------------------------
9
Graph - Actual System Generation -----------------------------------------------
10
Graph - Projected System Generation --------------------------------------------
11
Graph - Actual System Revenue & Expense ----------------------------------------
12
Graph - Projected System Revenue -----------------------------------------------
13/15
Lubbock Power and Light ----------------------------------------------"-------"-
15/18
Electric Rates-----------------------------------------------------------------
18
Billings--------------------------------------------------------=--------------
Comparison of Selected Present and Previous Rates ------------------------------
19
19
Comparison of Average Customer Usage and Billings ------------------------------
20
Analysis of Electric Bills --------------------"-----------------------"--------
20
Statistical Data---------------------------------------------------------------
21
Lubbock Power and Light - Ten Largest Customers --------------------------------
22/29
Revenue Bond Ordinance Provisions ----------------------------------------------
30
Valuation and Debt Information --------------------------------------------""---
30/31
Other Liabilities--------------------------------------------------------------
31
Note Amortization Schedule ----------------------------------------------""-----
31
Funded Debt Limitation---------------------------------------------------------
-
31/32
Valuation and Funded -Debt History ----------------------------------------------
32
Taxable Assessed Valuations by Category ---------=------------------------------
32
Estimated Taxable Assessed Valuations ------------------------------------------
33
Authorized General Obligation Bonds -------=------------------------------------
33
Estimated General Obligation Bond Program --------------------------------------
Authorized But Unissued General Obligation Bonds of Overlapping Subdivisions ---
33
Estimated Overlapping Funded Debt Payable From Ad Valorem Taxes ----------------
33
34
TaxData-----------------------------------------------------------------------
--------------------
34
Tax Rate Limitations --------------------------------------
34/35
1% Municipal Sales Tax ---------------------------------------------------------
35
Estimated 1980-81 Tax Year Overlapping Taxes -----------------------------------
35
TopTen Taxpayers--------------------------------------------------------------
36
Interest and Sinking Fund Management Index -------------------------------------
Computation of Self -Supporting Debt --------------------------------------------36
36/37
PensionFunds-----------------------------------------------------------------
General Information Regarding the City and Its Economy -------=-----------------
38/43
44
Ratings------------------------------------------------------------------------
TaxExemption------------------------------------------------------------------
44
Registration and Qualification of Bonds for Sale -------------------------------
44
44
Legal Investments in Texas --------------------------------------------"------""
44
Legal Opinions and No -Litigation Certificate -----------------------------------
45
Authenticity of Financial Information -----------------------------------------
45
Financial Advisors-------------------------------------------------------------
45
Certification of the Official Statement ----------------------------------------
Audited Financial Statements - Electric Revenue Fund, September 30, 1980,
' examined by Mason, Nickels & Warner, Certified Public Accountants ------------
Appendix
The cover page hereof, this page, the appendix included herein and any addenda, supplement or
amendment hereto, are part of the Official Statement.
- 2 -
ELECTED OFFICIALS
Term
city Council Len th.of Service Expires Occu ation
McAlister, Elected Mayor Apri�W; April 9 resp ent and Co -Owner, KAM - V
served 4 years previously as
City Councilman
Alan Henry 7 Years April 1982 Partner, The Insuradce Group
Mayor Pro -Tem Agency
Joan Baker Elected 4-29-80 April 1984 Homemaker
Councilwoman
M. J. Aderton 3 Years April 1982 Retired Chairman of the Board,
Councilman Snook & Aderton, Inc.
E. Jack Brown 1 Year April 1984 President, Brown McKee, Inc.
Councilman
APPOINTED OFFICIALS
Length of
Employment
Position and Length of Time With City
Name In This Position of Lubbock
Larry J. Cunningham City Manager - Appointed 9- 1-76 14 Years
J. Robert Massengale Director of Finance Appointed 2-25-80 1 Year
John C. Ross, Jr. City Attorney Appointed 8- 3-78 2 Years,
Evelyn E. Gaffga Secretary -Treasurer Appointed 7- 3-78 2 Years
Samuel W. Wahl Director of Water Utilities for 12 Years 28 Years
W. T. (Bill) Wood Director of Electric Utility
Planning, Development and
Production for 10 Years 25 Years
Carroll McDonald Director of Utility Sales and
Service Appointed 1- 8-79 2 Years
James E. Bertram Director of Planning for 10 Years 12 Years
Jimmy W. Weston Director of Community Facilities for 5 Years 14 Years
Marvin W. Coffee Director of Aviation for 10 Years 10 Years
Denzel W. Percifull Director of Public Services for 4 Years 4 Years
James J. Kilchenstein Tax Assessor -Collector Appointed 6-13-80 25 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 Electric Generator System -----------=-------------------------- Tippett & Gee
Abilene, Texas
Engineers for 50 Year Water Supply -------------------------------------- Freese and Nichols
Fort Worth, Texas
Engineers for Electric Transmission Lines and Substations ---------- Hicks & Ragland Company
Lubbock, Texas -
Financial Advisors ---------------------------- ---- First Southwest Company
Dallas, Texas
- 3 -
c1
. . 777 s
oll
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 $9,000,000 Electric Light and Power System Revenue Bonds, Series 1981 (the "Bonds").
The Official Statement was prepared to present for the purchaser of the Bonds information
concerning the Bonds, the revenues of the Electric Light and Power System pledged to the Bonds,
the description of the revenue base, factors that may affect pledged revenuer., and other
pertinent data, all as more fully described herein. See "Table of Contents".
Source of P� ... The Bonds are special obligations payable both as to principal and
nterest solely from and secured by a first lien on and pledge of the revenues of the Electric
Light and Power System after deduction of reasonable expenses of operation and maintenance.
Purpose Proceeds from the sale of the Bonds will be used for improvements to the trans-
mission and distribution facilities of the Electric Light and Power System. See "Proceeds of
the Bonds".
Future Bond Issues ... The City has no plans to sell additional Electric Light and Power System
Revenue Bonds.
Administration of theCit The City operates under a Hone Rule Charter which was approved
y teelectorate December 27, 1917, and thereafter amended from time to time. The Charter
provides for the Council -Manager form of government for the City. Policy-making and super-
visory functions are the responsibility of.and vested in the Mayor and City Council.
Litigation Concerning the Bonds The City of Lubbock has filed an action under Vernon's
Annotated Civil Statutes, Article 717m-1 (an in rem proceeding) in the District
Court of Lubbock County, Texas, asking for a Declaratory Judgment validatingand cont rming the
Bonds and the proceedings taken or proposed to be taken in connection with their authorization,
sale, issuance and delivery.
Petitions Affecting the Tax Rate Assessed Valuation and Tax Lev On July 12, 1979, three
petitions ca ing for an election to amend the City's Hone 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.
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 election and to determine the rights of the petitioners, other
citizens and the City Council in the premises. Such lawsuit was filed July 26, 1979, in the
140th Judicial District Court of Lubbock County, and upon rendition of a final judgment, the
Council will proceed in the manner directed by the Court. On June 10, 1980, the Court
- 4 -
" 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 have appealed to the Court of Civil Appeals, Amarillo, 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 amen ment which would prevent the payment of outstanding general obligation 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 general obligation bonds and therefore not applicable thereto.
r,
- 5 -
• ELLCTRIC LIGHT AND POWER SYSTEM OPERATING STATEMENT
Fiscal Year Ended 9-30-80� 9-30-79 _ 9-30-78 9-30-77 9-30-76
OPERATING INCOME
Metered Sales $26,077,709 $21,109,705 $20.153,034 $17,237,402 $14,277,522
Municipal Sales 3,082,155 2,510,013 2,294,684 1,936,878 1,490,063
Non -Operating Income 731,676 826 106 624 791945�,5�64 944 718
TOTAL INCOME 9�91�� $072, s��'lly'u$� '
OPERATING EXPENSE
_ Production $22,490,802 $17,956,119 $15,566,681 $12,663,703 $ 9,945,038
• Electric Distribution 1,270,853 1,159,884 1.022,227 947,783 870,025
Utility Collections 668,440 582,617 454.623 378,770 347,465
Promotion 306,735 286,567 233,569 226,874 223,582
Administrative 134 021 92,292 78 143 75,408 691,510
TOTAL EXPENSE $24,87 .851 $20.077,479 TFT,755,M $14,292,538 $11,4b5,6ZO
NET INCOME AVAILABLE
FOR DEBT SERVICE S 5,020,689 $ 4,368,345 $ 5,717,266 $ 5,827,306 $ 5,256,683
ELECTRIC CONNECTIONS 32,051 30,390 29,204 28,352 26,969
PROJECTED ELECTRIC LIGHT AND POWER SYSTEM OPERATIONS
(Fiscal Year Ending Septmeber 30,1981)
Income
Operating Revenues $36,006,041
Other Revenues 893,089
Total Income $36,899,130
Operating Expense 31,193,228
Projected Net Income Available
for Debt Service $ 5.705,902
Sourcer Department of Finance, City of Lubbock. Texas.
COVERAGE AND FUND BALANCES
Net Income, Fiscal Year Ending 9-30-80 ----------------------------------------- $ 5,020,689
Projected Net Income, Fiscal Year Ending 9-30-81* ------------------------------ $ 5,705,902
Average Annual Principal and Interest Requirements, 1982/2002�(including the
$9,000,000 Bonds offered herein) ----------------------------------- L ------ $ 1,864,142 '
Coverage by Net Income, Fiscal'Year Ending 9-30-80 ----------------------------- 2.69 Times
Coverage by Projected Net Income, Fiscal Year Ending 9-30-81 ------------------- 3.06 Times
Maximum Principal and Interest Requirements, 1983 ------------------------------ $ 3,454,781
Coverage by Net Income, Fiscal Year Ending 9-30-80 ----------------------------- 1.45 Times
Coverage by Projected Net Income, Fiscal Year Ending 9-30-81 ------------------- 1.65 Times
Electric Connections, 3 -31 -81 ---------------------------------------------------32,893
Electric Light and Power System Revenue Bonds to be Outstanding After
Issuance of these $9,000,000 Bonds (Anticipated as of 9-30-81) ------------ $23,450,000
Interest and Sinking Fund, 3-31-81 --------------------------------------------- $ 2.281.463
Reserve Fund, 3 -31 -81 ---------------------------------------------------------- $ 1.622,623**
* See "Projected Electric Light and Power System Operations, Fiscal Year Ending 9-30-810.
** The Reserve Fund will be increased to not less than $1,900,000 over a 60 -month period
beginning September 1, 1981.
AUTHORIZED REVENUE BONDS
After the issuance of the $9,000,000 Bonds, the City has no additional authorized but unissued
Electric Light and Power System Revenue Bonds.
-6-
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R ENDING SEPTEMBER! :iOTH!
-9-
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1979.-'19 80
J.1980-'1981
1981—,1982
FISCAL. YEfR
198211983
. ENDING
!
1983-1984 I
SEP7EMBE
1984-1985
307
----
- 10 -
OTHER:: PRODUCTION EXPENSE ,
DISTRIBUTION EXPENSE f
ADMINISTRATIVE a- GENERAL EXPENSE
1978 1977 ; 1977- 1978 1978- 1979 1979 1980
ISCAL . YEAR ENDING SEPTEMBER 30TH 1
- 12 —
1983-1984 1984-1985
ZING FUE4 COST ADJUSTMENT
LUBBOCK POWER AND LIGHT
'Lubbock Power and Light was established in 1916, and is presently the largest municipal system
in the West Texas region and the third largest in the State of Texas. 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 set 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 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 all of its power requirements without purchased power supple-
ments, and has two generating stations located within the City. These plants are geographi-
cally separated by seven miles and deliver bulk power to substations through a 69 KV trans-
mission loop system.
Generating Station Capabilities ...
Station No. 2: Two Nordberg I:C. dual fuel engine driven generators - 2,500 KW each;
Two Westinghouse steam -turbo generators - 11,500 KW each; and
Two Westinghouse steam -turbo generators - 22,000 KW each.
Total installed nameplate capacity - 72,000 KW.
Holly Avenue: One Westinghouse gas turbine generator - 12,500 KW;
One Worthington gas turbine generator - 18,000 KW;
One General Electric gas turbine generator - 20,000 KW;
One General Electric steam -turbo generator - 44,000 KW;
One General Electric steam -turbo generator - 50,000 KW;
Total installed nameplate capacity - 144,500 KW.
The total generating capacity is 216,500 KW. Gas turbines and I.C. generators provide the
system with 55,500 KW of ready reserve and quick -start generation for emergency and peaking
service. The generating units consist of the following:
Year Generator
Capacity
Installed Station Prime Mover Fuel In KW
T9N6— --I—Diesel---Dual Fuel-2—,5�0
1947 2 Diesel Dual Fuel 2,500
1952 2 Steam Turbine Gas or Oil 11,500
1953 2 Steam Turbine Gas or Oil 11,500
1957 2 Steam Turbine Gas or Oil 22,000
1958 2 Steam Turbine Gas or Oil 22,000
1964 Holly Gas Turbine Gas or•Oil 12,500
1965 Holly Steam Turbine Gas or Oil 44,000
1971 Holly Gas Turbine Gas or Oil 18,000
1974 Holly Gas Turbine Gas or Oil 20,000
1978 Holly Steam Turbine Gas or Oil 500
Transmission and Distribution-... A 69,000 volt (69 KV) transmission loop system, 36 miles in
length, provides bulk power to six 20 MVA -69,000/12,470 volt substations. A second 69 KV
transmission loop system insulated for operation at 115 KV is being planned. A 69,000 KV
transmission line has been constructed from Holly Plant, a distance bisecting the loop through
town to the west side of'town for increased reliability. The line is insulated for 138 KV but
at present is operated at 69 KV.
The distribution system includes approximately 681 miles of overhead distribution lines and
approximately 110 miles of underground distribution lines. There are twelve 12,470/4,160 volt
substations in the distribution system. Net system load for fiscal year ending September 30j-
1980, was 682,661,030 KWH with a peak demand of 144,000 KW.
- 13 -
Proceeds ... Proceeds of the $9,000,000 Bonds will be used as follows:
Transmission System
(1) Upgrade Cooperative, Vicksburg and Chalker substations and extend the 69 KV
transmission along 82nd Street to serve Chalker substation.
(2) Extend the second circuit of Lubbock Power and Light's existing 115 KV trans-
mission line from its present termination at 50th Street and East Loop 289 to Plant
No. 2; construct a future substation in Northeast Lubbock along the proposed line
route to assume part -of the load when Plant No. 2 is retired.
(3) Upgrade Lubbock Power and Light's present computer capabilities and install
remotes in all major substations to fully coordinate relaying and line switching and
to greatly improve Lubbock Power and Light's emergency response capabilities.
Estimated Cost. Transmission System Improvements $4,500,000
Distribution System
Extensions of and improvements to the existing distribution system including adds-
tional distribution circuits for substations, extensions from existing line termi-
nals to new areas of service, transformers, meter pedestals. poles and crossarms,
regulators, capacitors, meters, service lines and other appurtenances.
Estimated Cost, Distribution System Improvements $4,500,000
Interconnection .. The Federal Power Commission was requested to make a study of the feasibil-
ity of interconnecting Lubbock Power and Light with another power company and has made a
recommendation to the City. An interconnection will protect against temporary loss of local
generating facilities from natural disasters or other conditions that could disrupt service.
Lubbock Power and Light has entered into a contract agreement with Southwestern Public Service
Company of Amarillo for 10 MW of power to be purchased as soon as the interconnect is built.
Major equipment has been ordered, right-of-way is being secured and it appears that construc-
tion of this interconnect will begin soon. 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.
Carbon Dioxide Recovery ... The Carbon -Dioxide Technology Corporation, Houston, Texas, has
leased a tree acre site at the Holly Plant for the construction of a carbon dioxide (CO 2)
recovery plant. CO 2 will be recovered from Holly Plant stack gasses for use in nearby oil
fields in Garza County in connection with tertiary -level oil recovery. Estimated cost of the
plant is $20 million; estimated annual revenues to Lubbock Power and Light include $360,000
from sale of CO 2 acid $150,000 from the sale of electric power.
Fuel Supply .Primary fuel supply is natural gas which is supplied by Energas Company (for-
merly PioneerNatural Gas Company), a division of Pioneer Corporation, Amarillo, Texas, under a
long term contract (see below). 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 'supply by .
Energas have been experienced in the past few years, and Energas indicates that some 50% to 70%
short duration (48 hours or less) curtailments, during peak gas usage periods, may be experi-
enced in the future. No curtailments in excess of 70% are projected by Energas, nor will total
annual curtailment exceed 5% of annual volume.
The City's present storage capacity of fuel oil, for standby, secondary fuel, is over 1,500,000
gallons, and fuel oil is maintained in inventory at capacity levels at practically all times.
Without resupply, this fuel would operate the present generating system about 13 days at 50%
natural gas curtailment. With expected resupply, this period would be substantially extended.
The newest generator.will have a tri -fuel capability, as it is designed to burn natural gas,
fuel oil or crude oil as fuel.
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 Energas Company.
- 14 -
Fuel Supply Contract with Energas Company
The City's fuel supply contract with Energas Company, Amarillo, Texas, dated December 14, 1979,
became effective on January 1, 1980, and provides, among other things:
(1) Volume - Energas has agreed to deliver to the City up to 30,000 MCF/day; the minimum
"take -or -pay" volume the City must accept is 7,000,000 MCF annually.
(2) Cost - The City's cost is:
(a) Energas' weighted average cost (as defined); plus an increment of thirty-seven and
one tenth cents (37.1¢) per MCF, adjusted to 1,000 BTU/cubic foot.
(b) On or before July 1, 1981, and each two years thereafter, the City,and Energas will
meet to determine the price to become effective the following January 1. If the City
and Energas cannot agree, the contract will terminate on January 1, 1982, or January
1 each two years thereafter.
(c) The term weighted average includes not only the cost of the gas itself but also is
adjusted to include interest costs on gas developments; a five year amortization of
nonproductive developments; and any costs of transportation, gathering, compressing,
treating, handling, or taxes.
(d) Plus, any new production, severance, gathering processing, transmission, sales, or
delivery taxes in excess of or in addition to those in existence on January 1, 1980,
which are levied upon or attributable to all or any portion• of the gas to be
delivered.
(e) During the first two years of the contract, the price will be reduced if gas curtail-
ments for the next preceding year exceed either 3% or 4% of the actual gas volume. If
the gas curtailment was between 3 and 4 percent then the price for the current year
will be reduced one and two tenths cents (1.2d) per MCF. If the curtailment was over
4%, then the price will be reduced two and four tenths cents (2.4t) per MCF.
(3) Term of Contract - The agreement was effective January 1, 1980, and remains in full force
and effect to December 31, 1985, and maybe extended from time to time as the parties agree
under the following formula:
"It being the intention of the parties that so long as Buyer requires gas for its said
plants which may be satisfied in whole or in part by seller upon terms and conditions
acceptable to both parties, the parties shall endeavor to reach agreement for suc-
cessive one-year extensions of the term provided in the agreement. Any such one-year
extensions shall be made only after a positive determination by seller of the
adequacy of its gas supply and the determination by seller, in its sole, discretion,
that it has sufficient gas supplies to perform its obligations during such
extensions".
If the City and Energas cannot agree, the contract will terminate on January 1 each two years
thereafter.
Note: Copies of the Gas Sales Agreement between Energas Company as "Seller" and City of
Lubbock as "Buyer", dated December 14, 1979, may be obtained upon request from Mr. J. Robert
Massengale, Director of Finance, City of Lubbock, Box 2000, Lubbock, Texas 79408 (806)
763-6411.
ELECTRIC RATES
The City. of Lubbock City Council sets electric rates for both Lubbock Power and Light (the
City -owned system) and Southwestern Public Service Company, a privately owned utility company
operating by franchise within the corporate limits of the City. Rates are the same for both
systems. The present rate went into effect by Ordinance on August 1, 1980, and are set forth
below.
Rates for service furnished in Cit .. The following rates shall be charged for electric
service furnished n the City according•to classifications herein set out, by all persons,
firms or corporations engaged in furnishing such electric power service to the public, includ-
ing electric service furnished by the City's electric light system; provided however, the net
charge per kilowatt hour, as specifically set out hereinafter, shall be increased or decreased
0.0067 cent per KWH for each 0.5 cent increase or decrease, or major fractions thereof, in the
cost of fuel delivered at LP&L generating stations, above or below 21 cents per 1,000,000 BTU.
The cost of fuel shall be determined as follows:
-15-
i
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1. Natural Gas: Per thousand cubic feet @ 1,000,000 BTU during the second month preceding
month of service.
2. Fuel Oil: Cost per 1,000,000 BTU based on a six month moving average through the end of
the -next prior month; by the last in first out inventory cost method.
Residential Service
Applicable:, To residential customers for electric service used for domestic Opurposes in
private -residences and separately metered individual apartments when all service is supplied at
one point of delivery, and measured through one kilowatt hour meter, where facilities of
adequate capacity and suitable voltage are adjacent to the premises to be served. Single phase
motors not to exceed 10 horsepower, individual capacity, may be served under this rate.
Territory: Lubbock, Texas.
Rate: Service Availability Charge: $5.10 per month, which includes 30 KWH per month;
Al KWH used per month in .excess of 30 KWH (a 2.62t per KWH
Fuel Cost Adjustment: As above provided.
Total Electric Living Service '
When customer has in regular use 1) permanently installed space heating equipment of an
aggregate rated capacity of 5 kilowatts or more, excluding bathroom heaters and 2) a permanent-
ly installed 240 volt, 30 gallons or greater, storage type water heater of not greater than 5.5
kilowatts, individual rated capacity, then, billing during the winter months will be the first
500 KWH at the regular rate, and all additional KWH at 1.151 per KWH. Billing during the summer
months will be the first 500 KWH at the regular rate, the next 500 KWH at 1.151 per KWH and all
additional KWH at the regular rate.
Winter Months: The billing month of November to May, inclusive.
Fuel Cost Adjustment: As above provided. .
Conditions and Regulations: Water heating equipment served on this rate shall be of insulated
storage type bearing the approval of the Underwriter's Laboratories, Inc., and shall have a
demand of not greater than 5.5 kilowatts, individual capacity. Space heating equipment and the
installation of the equipment shall be subject to the approval of the supplying utility. A
customer must have permanently installed and in regular use space heating equipment having a
total connected load of not less than 5 kilowatts, excluding bathroom heaters.
Character of Service: The voltage and characteristics of equipment applied shall meet require-
ments of the supplying utility..
Minimum: $5.10 per month.
Commercial Service
Applicable: To all commercial places of business, including stores, shops, factories, ware-
ouses, hotels, lodges, churches, apartment houses on one meter, garages and filling stations.
Territory: Lubbock, Texas.
Rate: All energy used shall be billed in accordance with the following 'rate:
Service Availability Charge $10.000 per month
First 1,000 KWH used per month 3.701 per KWH
Next 4,000 KWH used per month 2.911 per KWH
Next 15,000 KWH used per month 2.01f per KWH
Additional KWH used per month 1.21# per KWH
_
Discount: Where primary metering is used, 10% will be deducted on the above base rate portion
of a- T I is except minimum monthly bills, provided that primary metered load is greater than
secondary metered load. The Fuel Cost Adjustment portion of a bill is not subject to the 10%
discount.
- 16 -
Fuel Cost Adjustment: The net charge per kilowatt hour, as specifically set out hereinafter,
shall.be increased or decreased 0.0067 cent per KWH for each 0.5 cent increase or decrease, or
major fractions thereof, in the cost of fuel delivered at LP&L generating stations, above or
below 21 cents per 1,000,000 BTU.
Character of Servicer If metered on secondary side of distribution transformers, lighting
service may a est er 20/140 volt, 3 wire single phase, or 120 volt, 2 wire single phase. If
polyphase service is required, it shall be 3 phase, 240 volts unless otherwise specified.
Where primary metering is used, service supplied will be the primary voltage serving the area,
single or polyphase, as the case may require.
Minimum: $10.00 per month.
Schools
Applicable: To all institutions whether private, parochial or public, engaged in providing
nst3 ruction or education, including elementary schools, junior high schools, high schools, and
colleges or universitites.
Rate: Shall be the same as established for commercial places of business, above; provided
E Wever, that where such schools and school facilities are operated under one authority or
entity or as one district, but at several locations within the City, the consumption at all such
locations may be added together and the authority, entity or district billed as if all such
consumption was on one meter.
Fuel Cost Adjustment: As above provided.
Character of Service: If metered on secondary side of distribution transformers, lighting
service may be ei- er 20/240 volt, 3 wire single phase, or 120 volt, 2 wire single phase. If
polyphase service is required, it shall be 3 phase, 240 volts, unless otherwise specified.
Where primary metering is used, service supplied will be primary voltage serving the area,
single or polyphase as the case may require.
Discount: Where primary metering is used, 10% will be deducted the above base rate portion of
all bills except minimum monthly bills, provided that primary metered load is greater than
secondary metered load. The fuel cost adjustment portion of a bill is not subject to the 10%
discount.
Irrigation Power Service
Applicable: To power service for a well used for irrigation of crop and/or pasture land.
ervice to be furnished under contract. Not applicable to wells used for domestic house
service.
Territory: Lubbock, Texas.
Character of Service: Service shall be 240 volt single phase or 240 volt three phase unless
otherwise specified.
Rate: Winter Months - All KWH per month at 1.8¢ per KWH. Winter months include from regular
meter readings made in October to meter readings made in May.
Summer Months - All KWH per month at 3.18¢ per KWH. Summer months include from regular
meter readings made in May to regular meter readings made in October.
Payment• Statements will be rendered at regular meter reading dates each month. The amount of
such statement shall then become payable ten days after the bill for such service is rendered.
Conditions: Service will be supplied through a circuit to which no equipment except the
irrigation well motor will be connected.
Minimum: $24.00 per connected H. P. (nameplate ratingY per year beginning in January.
- 17 -
Electric Heating Service
Applicable: To residential and commercial customers for space heating service, including
resistance heating, radiant heating and heat pumps, when all heating service As supplied at one
point of delivery and measured through one kilowatt hour meter which meter must be separate
from the meter which measures the energy for lighting and general use.
Rate: November through April: All KWH used per month @ $0.0115 per KWH.
May through October: All KWH used per month shall be billed under the applicable
residential or commercial rate.
Conditions and Regulations: Space heating equipment and the installation of the equipment
shall be subject to the approval of the supplying utility. To be eligible for the space heating
rate, a customer must have permanently installed and in regular use space heating equipment
having a total connected load of not less than five kilowatts.
For heat pump installation, the rated capacity shall be determined by adding the rated capacity
of any auxilliary heating elements used in conjunction with the heat pump.
Fuel Cost Adjustment: As above provided.
Electric Water Heating
Applicable: To water heating service, on a separate meter, for residential customers or
commercial establishments. Service under this rate is subject to the conditions and regula-
tions governing water heating as stated below:
Rate: All KWH per month at 1.151 per KWH.
Conditions and Regulations: 1) Water heating equipment served on this rate shall be of
insulated storage type bearing the approval of the Underwriter's Laboratories, Inc., and shall
have a demand of not greater than 5.5 kilowatts individual capacity. 2) Service will be'
supplied through a separate circuit to which no equipment except the water heater will be
connected. A separate meter will be furnished by the supplying utility.
Fuel Cost Adjustment: As above provide.
BILLINGS
Customers of Lubbock's Electric Department and Water Department are billed simultaneously on
one statement. Garbage and sewer charges are also included. No discounts are allowed. Bills
are due upon receipt. If a bill remains delinquent 13 days .after the date of statement, a
reminder notice is mailed to the customer. Should the statement still be delinquent on the next
billing date, a statement is mailed showing the past due bill together with the current bill.
If the bill remains delinquent 13 days after the date of second statement, a cut-off notice is
mailed. The cut-off notice specifies that service will be discontinued in 5 days if payment in
full is not made. At the end of the 5 -day period, a collector calls on the customer and if he is
unable to collect payment, water and electric service is cut off. The reconnection charge is
$6.00 before 5:00 p.m. and $15.00 after 5:00 p.m. and during week -ends and holidays.
-18-
COMPARISON OF SELECTED PRESENT AND PREVIOUS RATES
resent Rates Effective 8=1-80)
Residential
Present Previous
Rate: Service Availability First 100 KWH per month 4.60 per KWH
Charge: $5.10 per month, which includes Next 22 KWH per month 3.45 per KWH
30 KWH per month. Additional.KWH per month 2.22 per KWH
All KWH used per month in excess of 30 KWH
@ 2.62t per KWH
Minimum $5.10 Minimum $1.85
Plus: Fuel Cost Adjustment Plus: Fuel Charge Adjustment
Commercial
Present Previous
Service Availability Charge: $10.00 per month First 100 KWH per month 4.80¢ per KWH
First 1,000 KWH per month 3.70¢ per KWH Next 900 KWH per month 3.001 per KWH
Next 4,000 KWH per month 2.911 per KWH Next 4,000 KWH per month 2.401 per KWH
Next 15,000 KWH per month 2.01¢ per KWH Next 15,000 KWH per month 1.80Q per KWH
Additional KWH used per month 1.21¢ per KWH Additional KWH used per month 1.20 per KWH
Minimum $10.000 Minimum $2.40
COMPARISON OF AVERAGE CUSTOMER USAGE AND BILLINGS
KWH Old Rate* New Rate*
Average Residential Customer (1979/80 Usage) 708 $42.2346.72
Average Commercial Customer (1979/80 Usage) 13,644 ' $743.21 $796.96
* With April, 1981, Fuel Cost Adjustment applied.
- 19 -
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LUBBOCK POWER AND LIGHT
(Fiscal Year End ng 9-30- 0)
TEN LARGEST CUSTOMERS
(Annual Consumption-15ATTe-venue)
Customers
KWH Billed
Dollars Billed
Texas Tech University3�IT,399
$3,378,968.961
City of Lubbock
75,252,778
3,104,125.32
Plains Co-op Oil Mill
52,392,524
2,070,049.17
Lubbock Independent School District
19,940,839
809,218.52
Lubbock Cotton Oil Mill
12,552,836
501,028.31
Furr Warehouse
6,238,400*
266,904.09*
Texas Commerce Bank, N.A.
5,836,610*
250,327.40*
Caprock Shopping Center
5,583,909
239,178.92
Town & Country Shopping Center
3,793,500
136,666.25
Court Place Office Building
3,357,120*
134,912.18*
(Lubbock National Bank, Owner)
* Consumption and billings for 12 months ending 3-31-81.
i
REVENUE BOND ORDINANCE PROVISIONS
The City Council will adopt a Bond Ordinance (the "Ordinance") authorizing the Bonds, which
will be in substantially the same form as the Ordinance authorizing the outstanding Bonds,
pertinent provisions of which are shown below:
Section 9. Definitions. For all purposes of this ordinance and in particular for clarity with
respect to the i-'ssuance of the bonds herein authorized and the pledge and appropriation of
'revenues therefor, the following definitions are provided:
(a) The term "System" shall mean all properties real, personal, mixed or otherwise, now
owned or hereafter acquired by the City of Lubbock through purchase, construction or otherwise,
and used in connection with the City's Electric Light and Power System and in anywise
appertaining thereto, whether situated within or without the limits of the City.
(b) The term "net revenues" shall mean the gross revenues of the City's Electric Light and
Power System less the expense of operation and maintenance. Such expense of operation and
maintenance shall not include depreciation charges or funds pledged for the bonds, previously
issued bonds and for additional parity bonds hereafter authorized, but shall include all
salaries, labor, materials, repairs, extensions necessary to render services; provided, how-
ever, that in determining "net -revenues," only such repairs and extensions as in the judgment
of the City Council, reasonably and fairly exercised are necessary to keep the System in
operation and render adequate service to the City and inhabitants thereof, or such as might be
necessary to remedy some physical defect which otherwise would impair the security of the
bonds, previously issued bonds, or additional parity bonds permitted to be issued uder Section
19 hereof, shall be deducted.
(c) The term "bonds" whenever same appears in this ordinance without any qualifying
language, shall mean the revenue bonds authorized by this ordinance.
(d) The term "previously issued bonds" shall mean the outstanding and unpaid bonds
designated "CITY OF LUBBOCK, TEXAS, ELECTRIC LGIHT AND POWER SYSTEM REVENUE BONDS," further
identified by Series and dates as follows:
(1) Series 1964, dated March 15, 1964, in the original principal amount of $4,500,000;
(2) Series 1965, dated March 15, 1965, in the original principal amount of $3,000,000;
(3) Series 1973, dated July 15, 1973, in the original principal amount of $6,000,000;
(4) Series 1975, dated March 15, 1975, in the original principal amount of $6,400,000; and
(5) Series 1975-A, dated September 15, 1975, in the .original- principal amount of $2,000,000;
(6) Series 1976, dated April 15, 1976, in the original principal amount of $4,400,000.
(e) The term "additional bonds" or "additional parity bonds" shall mean those bonds which
the City reserves the right to issue under the provisions of Section 19 hereof.,
(f) The term "bonds similarly secured" shall mean the previously issued bonds, the bonds and
the additional bonds at the time outstanding.
Section 10. Pledge. The City of Lubbock covenants, reaffirms and agrees that all of the net
revenuesofthe System are hereby irrevocably pledged equally for the payment of principal of
and interest on the bonds, previously issued bonds and additional parity bonds, if issued under
the conditions and in the manner specified in this ordinance, all of which shall constitute a
first lien on and pledge of the net revenues of the System.
Section 11. Rates and Charges. The City of Lubbock covenants, reaffirms and agrees that so
long as any o the bondi s and coupons authorized herein, and any of the previously issued
bonds and coupons remain outstanding and unpaid, it shall fix and maintain rates and collect
charges for the facilities and services afforded by its Electric Light and Power System, which
will produce income and revenues sufficient at all times to:
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(1) Pay all necessary operation, maintenance and betterment charges and expenses of the
System;
(2) Establish and fully maintain the "Bond Fund" including the reserve portion thereof for
the bonds herein authorized, the previously issued bonds and for any additional parity
bonds hereafter issued in accordance with the provisions hereof;
(3) Pay the requirements of all other lawful obligations and indebtedness of the System
chargeable against the System, as and when the same shall accrue and become due.
Section 12. Sstem Fund; All receipts, revenues and income of every nature in any manner
der v� ed from ownership and operation of the System shall constitute a separate and sacred fund
which in no event shall be diverted or drawn upon except under the provisions and for the
purposes herein prescribed. All such receipts, revenues and income shall be paid over and
deposited with City's depository within twenty-four (24) hours after collection. The account
to which said Fund shall be deposited shall be known as the ELECTRIC LIGHT AND POWER SYSTEM FUND
(hereinafter referred to as the "System Fund") to be kept separate and apart from all other City
Funds or accounts. Specifically as related to the bonds herein authorized and the previously
issued bonds, the System Fund shall be and is hereby pledged and shall be devoted and applied to
the purposes enumerated in Section 13 following and in the order of precedence shown therein.
Section 13. Flow of System Fund. All moneys paid over and deposited in the System Fund as
provided n Sect on 1Z above shall be pledged, appropriated and employed as follows:
(1) For the payment of those necessary and reasonable expenses of operating and maintaining
the System as are set forth in Section 9(b) hereof relating to the definition of "net
revenues", and
(2) To the "Special Electric Light and Power System Revenue Bond Retirement and Reserve
Fund" (hereinafter referred to as the "Bond Fund") heretofore created and hereby
reaffirmed for the bonds, previously issued'bonds and such additional parity bonds as
may hereafter be issued under the provisions of Section 19 hereof. Said Bond Fund shall
be used for no purpose other than for the payment, redemption and retirement- of such
bonds and the interest thereon in accordance with the terms and provisions of the
ordinances authorizing their issuance. All funds received from the purchasers of such
bonds as accrued interest thereon shall be placed in the Bond Fund. The City covenants,
reaffirms and agrees to provide the Bond Fund with all amount5 required to pay as due,
each of the principal and interest installments pertaining to all bonds, previously
issued bonds and additional parity bonds, and that in addition thereto said Bond Fund
shall contain a Reserve Portion. Said Reserve Portion of the Bond Fund presently
contains not less than $1,625,000 (which amount is the sum required to be on deposit
therein by the provisions of the ordinances authorizing the previously issued bonds).
On or before the 1st day of September, 1981, and on or before the first day of each month
thereafter, the City shall deposit into the reserve fund portion of the Bond Fund the
additional amount of $4,583.34 and such monthly deposit shall continue to be made until the
Reserve Portion of the Bond Fund contains the sum of $1,900,000 (which includes the amounts
required to be deposited in said reserve by the provisions of the ordinances authorizing the
previously issued bonds) in cash and book value of investment securities, such total amount
being not less than the average annual principal and interest requirements of all series of
bonds which are secured by a first lien on and pledge of the net revenues of the System and
which are to be outstanding after the issuance of the bonds herein authorized. In the event the
City elects to increase the monthly deposits to the reserve fund portion of the Bond Fund, the
amount in excess of the required monthly deposit shall serve as a credit to the amount required
to be deposited in the next month or months.
Said Reserve Portion shall be made available for and seasonably employed in meeting the
requirements of the Bond Fund if need be, and if any amount thereof is so employed, said Reserve
Portion shall be supplemented out of the first.System Funds available therefor to such extent
as will, as rapidly as possible, fully restore same to the sum of $1,900,000.
The ordinances of the City Council authorizing any seribs-of additional parity bonds shall make
due provision for supplementing, if necessary, the Reserve Portion of the Bond Fund so that
same shall be accumulated and maintained in an amount equal to not less than the average annual
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principal and interest quirements of all series of bonds then t.!secured by a first lien on
and pledge of the net revenues of the System and which will be outstanding upon the issuance of
any series of additional parity bonds.
Section 14. Method of Providing Amounts for Principal and Semiannual Interest Requirements of
the Bonds. Immediately fo owing the delivery of the bonds herein authorized and on or befori
eacW-Fay L and November 1 following such delivery the City Treasurer shall calculate the amount
of money which is required to pay the interest on the bonds on the next succeeding interest
payment date herein authorized and cause such amount to be deposited in the Bond Fund in equal
monthly installments. Immediately following the delivery of the bonds herein authorized and on
or before the first day of each May following such delivery the City Treasurer shall calculate
the amount of money which is required to pay any principal 'of the bonds herein authorized which
is scheduled to mature within 12 months and cause such amount to be deposited in the Bond Fund
in equal monthly installments. Such amounts, as determined to be required, shall be withdrawn
from the System Fund on or before the first day of each month, except that the initial deposit
following the delivery of bonds shall be made as soon as possible following such delivery of
bonds. The deposits required to be made (by the provisions of this Section) are in addition to
the amounts required to be paid into said Bond Fund for the purpose of paying the principal of
and interest on the previously issued bonds as prescribed by the ordinance authorizing their
issuance.
In the event the income and revenues of the System are insufficient in any month to permit the
required deposits into the Bond Fund in accordance with the provisions hereof or if for any
other reason the City shall fail to make the required deposits into the Bond Fund (including the
Reserve Portion if same has become depleted), the amount of such deficiencies shall be made up
as promptly as available System Funds will permit.
Section 15. Surp�lus Revenues. After all requirements of Section 13(1) and (2) hereof have been
satisfiedand aT similar requirements of any additional parity bodns hereafter issued and
after all deficiencies existing in such requirements have been remedied, surplus revenues of
the System may be used for any other proper City purposes now or hereafter permitted by General
Law, including the use thereof for retiring in advance of maturity any such bonds or additional
parity bonds by purchase on the open market at not exceeding the market value thereof. Nothing
herein shall be construed, however, as impairing the right of the City to pay, in accordance
with the provisions thereof, any junior lien bonds legally issued by it.
Section 16. Security for Electric Light and Power System Bond Fund. All funds herein provided
or
the Bond fund heretof ore estab she and herein reatf firmed sha I I be kept separate and apart
from all other City funds and shall be continuously secured by a valid pledge of direct
obligations of, or obligations unconditionally guaranteed by the United States of America,
having a par value, or market value when less than par, exclusive of accrued interest, at all
times at least equal to the amount of money to be deposited in said Fund. All sums deposited in
said Bond Fund shall be held as a trust fund for the benefit of the holders of the bonds herein
authorized and the previously issued bonds, the beneficial interest in which shall be regarded
as existing in such holders. To the extent that money in the Reserve Portion of the Bond Fund
is invested under the provisions of Section 18 hereof, such security is not required.
Section 17. Custodian of Bond Fund. The custodian of the Bond Fund shall be the City's
o is a epository bank, and all deposits prescribed shall be placed in said Fund with said
custodian bank. Prior to each interest and principal maturity date, it shall be the duty of the
City Treasurer to withdraw from said Fund and place with the paying agent banks money in such
amounts as will be fully sufficient to pay and at such times as will permit prompt payment of
each interest and principal installment.
Section 18. Investment of Reserve Portion of Bond Fund. The custodian bank shall, when
aut o—r zi—ed—by the City Council, invest the Reserve Portion of the Bond Fund in direct
obligations of, or obligations guaranteed by the United States of America, or invested in
direct obligations of the Federal Intermediate Credit Banks, Federal Land Banks, Federal
National Mortgage Association, Federal Nome Loan Banks or Banks for Cooperatives, and which
such investment obligations must mature or be subject to redemption at the option of the
holder, within not to exceed ten years from the date of making the investment. Such obligations
shall be held by the depository impressed with the same trust for the benefit of the bondholders
as the Bond Fund itself, and if at any time uninvested funds shall be insufficient to permit
payment of principal and interest maturities herein authorized as herein directed, the said
depository shall sell on the open market such amount of the securities as is required to pay
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said bonds and intereb. when due and shall give notice thereof _o the City Treasurer. All
moneys resulting from maturity of principal and interest of the securities in which the reserve
funds are invested shall be reinvested or accumulated in said Reserve Portion of said Bond Fund
and considered a part thereof and used for and only for the purposes hereinabove provided with
respect to said reserve, provided that when the full amount required to be accumulated in the
Reserve Portion of the Bond Fund (being the amounts' required to be accumulated by the
ordinances authorizing the bonds similarly secured), any interest increment may be used in the
Bond Fund to reduce the payments that would otherwise be required to pay the debt service
requirements on bonds similarly secured.
Section 19. Issuance of Additional Parity Bonds. In addition to the right to issue bonds of
inferior li n as authorized by the laws of the state of Texas, the City of Lubbock reserves the
right to issue additional revenue bonds payable from the net income and revenues of the System,
and when issued in compliance with,law and the terms and conditions hereinafter appearing, such
additional bonds shall occupy a position of parity with and shall be equally and ratably
secured by a first lien on and pledge of the net revenues of the System to the same extent as
the series of bonds authorized by this ordinance and the previously issued bonds. The City
hereby covenants, reaffirms and agrees that no additional bonds or other obligations payable
from the net revenues of its Electric Light and Power System shall be issued on a parity with
the series of bonds herein authorized and with the previously issued bonds, unless and until
the following conditions have been met:
(a) That the Mayor and City Treasurer have certified that the City is not then in default as
to any covenant, condition or obligation prescribed by this ordinance, the ordinances
authorizing the issuance of the previously issued bonds, or any ordinance authorizing the
issuance of additional parity bonds then outstanding, including showings that all interest,
sinking and reserve funds then provided for have been fully maintained in accordance with the
provisions of said ordinances;
(b) That the applicable laws of the State of Texas in force at the time provide permission
and authority for the issuance of such bonds and have been fully complied with;
(c) That the City has secured from an independent Certified Public Accountant his written
report demonstrating that the net revenues of the System were, during the last completed fiscal
year, or during any consecutive twelve (12) months period of the last fifteen (15) consecutive
months prior to the month of adoption of the ordinance authorizing the additional parity bonds,
equal to at least one and one-half (1 1/2) times the average annual principal and interest
requirements of all the bonds which will be secured by a first lien on and pledge of the net
revenues of the System and which will be outstanding upon the issuance of the additional parity
bonds; and further demonstrating that for the same period as is employed in arriving at the
aforementioned test said net revenues were equal to at least one and one-fifth (1-1/5) times
the maximum annual principal and interest requirements of all such bonds as will be outstanding
upon the issuance of the additional parity bonds;
(d) That the additional parity bonds are made to mature on April 15 or October 15, or both,
in each of the years in which they are provided to mature;
(e) As hereinabove provided the Reserve Portion of the Bond Fund shall be accumulated and
supplemented as necessary to maintain it in a sum which shall be not less than the average
annual principal and interest requirements of all bonds secured by a first lien on and pledge of
the net revenues of the System which will be outstanding upon the issuance of any series of
additional parity bonds. Accordingly, each ordinance authorizing the issuance of any series of
additional parity bonds shall provide for any required increase in said Reserve Portion, and if
supplementation is necessary to meet all conditions of said Reserve Portion, said ordinances
shall make provision that same be supplemented by the required amounts in equal monthly
installments over a period of not to exceed sixty (60) calendar months from the dating of such
additional parity bonds.
When thus issued, such additional parity bonds may be secured by a pledge of the revenues of the
City's System on a parity in all things with the pledge securing the issuance of the bonds
herein authorized and the previously issued bonds.
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Section 20. Maintenance and Operation. The City of Lubbock hereby covenants, reaffirms and
agrees that it will maintain the System facilities in good condition and operate the same in an
efficient manner and at reasonable costs so long as'the bonds, previously issued bonds or the
additional parity bonds are outstanding and unpaid. The City further agrees to maintain
insurance for the benefit of the holder or holders of the bonds of the kinds and in the amounts
which are usually carried by private companies operating similar properties, and that during
such time all policies of insurance shall be maintained in force and kept, current as.to premium
payments. All moneys received from losses under such insurance policies other than public
liability policies are hereby pledged as security for the bonds until and unless the proceeds
thereof are paid out in making good the loss or damage' in respect of which such proceeds are
received, either by replacing the property destroyed or repairing the property damages, and
adequate provisions made within ninety (90) days after the date of the loss for making good such
loss or damage. The premiums for all insurance policies required under the provisions of this
section shall be considered as maintenance and operation expenses.
Section 21. Records and Accounts. The City of Lubbock hereby covenants, reaffirms and agrees
t aTi t so Fong as any of the bonds herein authorized or the previously issued bonds, or any
interest thereon, remain outstanding and unpaid, it will keep and maintain a proper and
complete system of books, records and accounts pertaining to the operation of the System,
separate and apart from all other records and accounts in which complete and corret entries
shall be made of all transactions relating to the System as provided by applicable law, and that
the holder or holders of any of the bonds or any duly authorized agent or agents of such holders
shall have the right at all reasonable times to inspect all such books, records, accounts and
data relating' thereto and to inspect the System and all properties comprising same. The
appropriate City officials are hereby instructed and directed to do any and all things
necessary or convenient in reference to keeping and maintaining of such books, records and
accounts and to make the moneys available for payment of the bonds in the manner provided by the
aforementioned statute. The City further agrees that within sixty (60) days following the
close of each fiscal year it will cause an audit of its books and accounts to be made by an
independent firm of Certified Public Accountants showing the receipts and disbursements for the
account of the System for the fiscal year. Each such audit shall, in addition to whatever other
matters may be thought proper by the Accountant, particularly include the following:
(a) A detailed statement of the income and expenditures for account of the Sytem for such
fiscal year;
(b) A balance sheet as of the end of such fiscal year;
(c) The Accountant's comments regarding the manner in which the City has carried out the
requirements of this ordinance, and his recommendations forany change or improvements in the
operation, records and accounts of the System;
(d) A list of the insurance policies in force at the end of the fiscal year on system
properties, setting out as to each policy the amount thereof, the risk covered, the name of the
insurer and the policy's expiration date;
(e) A statement verifying that the securities herein specified therefor have been on deposit
as security for the money in the Electric Light and Power System Bond Fund throughout the fiscal
year, and a list of the securities, if any, in which the reserve portion of such Special Fund
have been invested;
(f) The number of metered and unmetered customers, if any, connected with any department of
the System, showing totals at the end of the fiscal year.
Expenses incurred in making the audits above required are to be regarded as maintenance and
operation expenses and paid as such. Copies of the aforesaid annual audit shall be promptly
furnished the original purchasers of the bonds and any subsequent holder at his request. At the
close of the first six months' period of the fiscal year, the City Manager is directed to
furnish a copy of an operating and income statement in reasonable detail covering such period
to any bondholder upon his request therefor, received not more than thirty days after the close
of said six months' period. Any bondholder shall have the right -to discuss with Accountants
making the annual audit the contents thereof and to ask the City Manager for such additional
information as he may reasonably request.
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Section 22. Remedy in Event of Default. In addition to all the rights and remedies provided by
law by the tate of Texas, the City covenants and agrees particularly that in the event the City
(a) defaults in payment of principal or interest on any of the bonds when due, (b) fails to make
the payments into the Bond Fund as required by this ordinance, or (c) defaults in the observance
or performance of any other of the covenants, conditions or obligations set forth in this
ordinance, the holder or holders of any of the bonds shall be entitled to a writ of mandamus
issued by a court of proper jurisdiction compelling and requiring the City Coun it and other
officers of the City to observe and perform any covenants, obligations or conditiobs prescribed
in the bond ordinance. No delay or omission to exercise any right or power accruing upon any
default shall impair any such power or right or shall be construed to be a waiver of any such
default or acquiescence therein, and every such right and power may be exercised from time to
time and as often as may be deemed expedient.
The specific remedy herein provided shall be cumulative of all other existing remedies and the
specification of such shall not be deemed to be exclusive.
Section 23. Sale Lease or Other Encumbrance of System. The City of Lubbock further covenants,
reaff rms, binds and ob igates itself not to sell-,- Tease or in any manner dispose of the System,
its properties, or any part thereof, including any and all extensions and additions that may be
made thereto, and it acknowledges and accepts restraint from doing so until the bonds and
previously issued bonds shall have been paid in full as to both principal and interest at
maturity, or under the provisions hereof relating to their redemption prior to maturity, or
until other arrangements have been made for continuance of payment of principal and interest
then outstanding for the full retirement thereof; provided, however, that this covenant shall
not be construed to prevent the disposal by the City of property which in its judgment has
become inexpedient to use in connection with the System when other property of equal value has
been substituted therefor.
Section 24. Further Covenants. The City further covenants, reaffirms and agrees by and
through this ordinance as follows:
(a) That it has the lawful power to pledge the revenues supporting this issue of bonds and
has lawfully exercised said power under the Constitution• and laws of the State of Texas,
including the power existing under Articles 1111 through 1118, and Article 2368a, V.A.T.C.S.,
and that the bonds, the previously issued bonds and any additional parity bonds issued pursuant
to the provisions hereof shall be ratably secured in such manner that no one bond of any such
issues shall have preference over any other bond of such issues.
(b) That the net revenues and income of the System are pledged exclusively to the payment of
the bonds, the previously issued bonds and such additional parity bonds as may hereafter be
issued pursuant to the provisions hereof; that said net revenues and income have not been
pledged in any manner to the payment of any other debt or obligation of the City or the System
and otherwise said System is free and clear of all encumbrances whatsoever.
(c) That nothing in this ordinance shall require the City to make any expenditure except
from money in the System Fund, but nothing herein shall prohibit the City from doing so at its
election.
(d) That except under the conditions of this ordinance relating to parity bonds, the City
will not suffer any indebtedness on a parity or superior to the bonds of this issue and the
previously issued bonds to accrue to or against the City or said System, and that if the System
shall become liable for any other indebtedness, the City Council will fix and maintain rates
and collect charges for the services afforded by the System entirely sufficient to discharge
any such indebtedness or obligation.
(e) The City will cause to be rendered monthly to each customer receiving electric services
a statement therefor and will not accept payment of less than all of any statement so rendered,
using its powers under existing ordinances and under all such ordinances to become effective in
the future to enforce payment, to withhold service from such delinquent customers and to
enforce and authorize reconnection charges.
(f) That the City will faithfully and punctually perform all duties with respect to the
System required by the Constitution and laws of the State of Texas, including the making and
collecting of reasonable and sufficient rates for services supplied by the System, and the
segregation and application of the revenues of the System as required by the provisions of this
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Section 22. Remed in Event of Default., In addition to all the rights and remedies provided by
law by the State of Texas, the City covenants and agrees particularly that in the event the City
(a) defaults in payment of principal or interest on any of the bonds when due, (b) fails to make
the payments into the Bond Fund as required by this ordinance, or (c) defaults in the observance
or performance of any other of the covenants, conditions or obligations set forth in this
ordinance, the holder or holders of any of the bonds shall be entitled to a writ of mandamus
issued by a court of proper jurisdiction compelling and requiring the City Council and other
officers of the City to observe and perform any covenants, obligations or conditions prescribed
in the bond ordinance. No delay or omission to exercise any right or power accruing upon any
default shall impair any such power or right or shall be construed to be a waiver of any such
default or acquiescence therein, and every such right and power may be exercised from time to
time and as often as may be deemed expedient.
The specific remedy herein provided shall be cumulative of all other existing remedies and the
specification of such shall not be deemed to be exclusive.
Section 23. Sale, Lease or Other Encumbrance of System. The City of Lubbock further covenants,
reaffirms, binds and obligates itself not to sel I, lease or in any manner dispose of the System,
its properties, or any part thereof, including any and all extensions and additions that may be
made thereto, and it acknowledges and accepts restraint from doing so until the bonds and
previously issued bonds shall have been paid in full as to bath principal and interest at
maturity, or under the provisions hereof relating to their redemption prior to maturity, or
until other arrangements have been made for continuance of payment- of principal and interest
then outstanding for the full retirement thereof; provided, however, that this covenant shall
not be construed to prevent the disposal by the City of property which in its judgment has
become inexpedient to use in connection with the System when other property of equal value has
been substituted therefor.
Section 24. Further Covenants. The City further covenants, reaffirms and agrees by and
t rouTi gh this ordinance as follows:
(a) That it has the lawful power to pledge the revenues supporting this issue of bonds and
has lawfully exercised said power under the Constitution and laws of the State of Texas,
including the power existing under Articles 1111 through 1118, and Article 2368a, V.A.T.C.S.,
and that the bonds, the previously issued bonds and any additional parity bonds issued pursuant
to the provisions hereof shall be ratably secured in such manner that no one bond of any such
issues shall have preference over any other bond of such issues. '
(b) That the net revenues and income of the System are pledged exclusively to the payment of
the bonds, the previously issued bonds and such additional parity bonds as may hereafter be
issued pursuant to the provisions hereof; that said net revenues and income have not been
pledged in any manner to the payment of any other debt or obligation of the City or the System
and otherwise said System is free and clear of all encumbrances whatsoever. -
(c) That nothing,in this ordinance shall require the City to make any expenditure except
from money in the System Fund, but nothing herein shall prohibit the City from doing so at its
election.
(d) That except under the conditions of this ordinance relating to parity bonds, the City
will not suffer any indebtedness on a parity or superior to the bonds of this issue and the
previously issued bonds to accrue to or against the City or said System, and that if. the. System
shall become liable for any other indebtedness, the City Council will fix and maintain rates
and collect charges for the services afforded by the System entirely sufficient to discharge
any Such indebtedness or obligation..
(e) The City will cause to be rendered monthly to each customer receiving electric services
a statement therefor and will not accept payment of less than all of any statement so rendered,
using its powers under existing ordinances and under all such ordinances to become effective in
the future to enforce payment, to withhold service from such delinquent customers and to
enforce and authorize reconnection charges.
(f) That the City will faithfully and punctually perform all duties with respect to the
System required by the Constitution and laws of the State of Texas, including the making and
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collecting of reasonable and sufficient rates for services supplied by the System, and the
segregation and application of the revenues of the System as required by the provisions of this
ordinance.
(g) No free service shall be provided by the System and to the extent the City of Lubbock or
its departments or agencies utilize the service provided by the System, payment shall be made
therefor at rates charged to others for similar service.
Section 25. Ordinance to Constitute Contract. That the provisions of this ordinance shall
constitute a contract between the City of Lubbock and the holder or holders from time to time of
the bonds herein authorized to be issued, and after the issuance of any of said bonds, no
• change, variation or alteration of any kind of the provisions of this ordinance may be made,
unless as herein otherwise provided, until all of the bonds issued hereunder shall have been
paid as to both principal and interest.
Section 26. Mayor to Have Charge of Records and Bonds. That the Mayor of said City shall be,
an he is hereby authorized to take and have charge o -all necessary records and orders -ending
investigation by the Attorney General of the State of Texas, and shall take and have charge and
control of the bonds herein authorized pending their approval by the Attorney General and their
registration by the Comptroller of Public Accounts. It shall be the duty of the Mayor (or
attorneys acting for the City) to submit the record of said bonds and the bonds to the Attorney
General of the State of Texas for approval and thereafter to have the bonds registered by the
Comptroller of Public Accounts.
Section 27. Bonds are Special Obligations. The bonds are special obligations of the City
payable from the pledged revenues, and the holders thereof shall never have the right to demand
payment thereof out of funds raised or to be raised by taxation.
Section 28: Bonds as Negotiable Instruments. Each of the bonds herein authorized shall be
eemed and construed to be a Security," and as such a negotiable instrument, within the
meaning of Article 8 of the Uniform Commercial Code.
- 29 -
VALUATION AND DEBT INFORMATION
January 1, 1980 Appraised Value of Taxable Property
(Source: Tax Assessor -Collector, City of Lubbock) $2,641,281,547
Less: Local Exemptions at Market (Appraised) Value (2):
Over 65 S 88,211,500
Disabled Veterans 93,578.800
Total
January 1, 1980 Net Appraised Value $2,549,491,247
Taxable Assessed Valuation (60% of Net Appraised Value)
(See Notes 1 and 2) $1,529,694,748
City Funded Debt Payable From Ad Valorem Taxes (As of
1-31-81) (See Note 3)*
General Purpose Bonds $ 31,641,833
Waterworks Bonds 30,584,564
Sewer System Bonds 3,623,603
TOTAL FUNDED DEBT $ 65,850,000
Interest and Sinking Fund (As of 1-31-81) S 3,461,620
Ratio Total Funded Debt to 1980 Net Appraised Value ---------------------------------- 2.59%
Ratio Total Funded Debt to 1980 Taxable Assessed Valuation --------------------------- 4.31%
1980 U.S. Census - 173,979
Per Capita 1980 Taxable Assessed Valuation - $8,792.41
Per Capita Total Debt - $378.49
Area - 91.1 Square Miles
* Includes $16,750,000 Bonds which sold April 23, 1981.
Note 1:- The Tax Assessor -Collector of the City of Lubbock certified the City's 1980 tax roll
on September 17, 1980, at $1,529,694,748. On October 1, 1980, assessed values on several
pieces of property were under litigation; these values are not included in the certified tax
roll. In addition certain assessed values of 9 banks, which are under litigation, are not
included in the 1980 Taxable Assessed Valuation.
Note 2: These exemptions apply to either real or personal property assessments to a maximum
of: (1) $16,667 market value of a residence homestead for those 65 years of age or older, and
(2) $3,000 Assessed Valuation ($5,000 market value) for disabled veterans. 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 3: As of 1-31-81 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: $580,000 Waterworks System Revenue Bonds; $15,615,000 Electric Light and
Power System Revenue Bonds; .and $9,000,000 Electric Light and Power System Revenue Bonds,
Series 1981, dated August 15, 1981, described herein. The statement also does not include the
following: $2,685,000 Airport Revenue Bonds, presently outstanding, as these bonds are pay-
able solely from the gross revenues derived from the City of Lubbock Airport.
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.
-30-
Total purchase price was $389,820.00. Prior to purchase, the City obtained various appraisals
of the property which varied froma high of $1,432,095 to a low of $362,860. Of the $389,820
purchase price, the City paid $40,000 in cash at the time of closing and executed its note for
$349,820 for the balance. This note is classified as part of the City's General Long -Term Debt
and is payable from the General Fund. The outstanding principal balance on 9-30-80 was
$280,943.20 which matures in 10 annual installments, September 1, 1981, through September 1,
1990, with interest calculated at 7%.
NOTE AMORTIZATION SCHEDULE
Fiscal
Year
Ending Outstanding
9-30 Principal Interest Total Balance
1980- $280,943.20
1981 $ 20,334.00 $ 19,666.00 S 40,000.00 260,609.20
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-
$280,943.20 $119,056.80 $400,000.00
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 will 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".
VALUATION AND FUNDED DEBT HISTORY -
Fiscal
Period Taxable Ratio Funded Debt
Ending Assessed Funded Debt Out- to Taxable
9-30 Valuation(l) standing, End. Assessed Valuation
1969-70 $ 601,78 ,53 (2) $30,862,00-0 5.
1970-71 617,204,605(2) 35,344,000 5.73%
1971-72 630,151,893(2) 44,459,000 7.06%
1472-73 659.742,523 (2) 47,266,000 7.16%
1973-74 716,225,294 2 53,440,000 7.46%
1974-75 797,387,868 2 50,546,000 6.34%
1975-76 923,557,647(2) 47,763,000 5.17%
1976-77 1,014,049,149(2) 43,682,000 4.31%
1977-78 1,104,591,631(2) 42,107,000 3.81%
1978-79 1,298,016,250(2 .47,086,000 3.63%
1979-80 1,403,475,893(2 49,301,000 3.51%
1980-81 1,529,694,748 61,710,000(3) 4.03%
(1) For all years Taxable Assessed Valuations are net of any exemptions. Basis of assessment
for all years was 60% of market values.
- 31 -
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. In addition, a reappraisal program
for automobiles was fully implemented during the period 1973-74 through 1976-77.
(2) Taxable Assessed Valuations for Fiscal Periods 1969-70 through 1979-80 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
(3) Personal automobiles became exempt from.ad valorem taxes in 1979.
ESTIMATED TAXABLE ASSESSED VALUATIONS (1)
Estimated Estimated
Taxable Taxable
Fiscal Assessed Fiscal Assessed
Period Valuation Period Valuation
1980-81$1,529,694,748(2) 1982-8Y x,00 ,00 (3
1981-82 2,625,000,000(3) 1983-84 3,000,000,000(3;
I1) All estimates are net after estimated exemptions.+
2) At 60% of net appraised value.
3 At 100% of net appraised value. See "Ad Valorem Tax Legislation", above.
Source: James J. Kilchenstein, Tax Assessor -Collector, City of Lubbock, Texas.
- 32 -
Property
Adjustments
Assessment
For
(2)
As % of
Appraised
(1)
Real
Personal
Personal Corrections
Property: And
Taxable
Assessed
Year
M
Value
Estate
$ 411,312.5f6
Property
Automobile Supplements
$16,352,800869,7
Valuation
1970
60%
474,769,040
.993,940
124,971,050
7
17,501,800 ( 37,285
S 601.789
617,204,605
1971
1972
60%
60%
480,135,900
494,016,482
134,524,140
147,500,760
16,722,500 1,230,647)
18,501,264 275,983)
630,151,893
659,742,523
1973
1974
60%
60%
527,814,930
583,951,000
158,183,100
179,961,580
28,166,355 2,060,909
37,971,470 (4,496,182)
716,225,294
797,387,868
1975
1976
60%
60%
650,705,600
705,954,020
189,955,610
223,968,871
51,291,080 31,605,357
68,042,430 16,083,828
923,557,647
1,014,049,149
1977
1978
60%
60%
761,704,740
941,202,840
251,890,585
274,932,421
94,912,585 (3,916,279)
93,108,472 (11,227,483
1,104,591,631
1,298,016,250
1979
1980
60%
60%
1,105,749,615
1,195,978,655
299,117,144
323,734,323
10,609,830(3) (12,000,696)
9,981,770
1,403,475,893
N.A.
1,529,694,748
(1)
The City's Tax
Assessor -Collector
maintains
an on-going reappraisal
program of real
property, reappraising
approximately 1/4 of real
property in the City each year. In addition,
a reappraisal program
1976-77.
for automobiles was fully implemented during the period 1973-74 to
(2)
Taxable Assessed Valuations
for 1974-1980 are net after the following exemptions (in terms
of Assessed
Valuation):
Over 65
Disabled
Homestead
Veteran
Year
197
Exemptions
Exemptions
1975
,395,0
13,323,150
Not Effective
Not Effective
1976
11,888,760
S 1,307,240
1977
14,159,830
1,646,220
197.8
34,991,600*
1,549,890*
1979
49,793,340*
1,928,450*
1980
52,926,900*
2,147,280*
* As
of 10-1 each
year.
(3) Personal automobiles became exempt from.ad valorem taxes in 1979.
ESTIMATED TAXABLE ASSESSED VALUATIONS (1)
Estimated Estimated
Taxable Taxable
Fiscal Assessed Fiscal Assessed
Period Valuation Period Valuation
1980-81$1,529,694,748(2) 1982-8Y x,00 ,00 (3
1981-82 2,625,000,000(3) 1983-84 3,000,000,000(3;
I1) All estimates are net after estimated exemptions.+
2) At 60% of net appraised value.
3 At 100% of net appraised value. See "Ad Valorem Tax Legislation", above.
Source: James J. Kilchenstein, Tax Assessor -Collector, City of Lubbock, Texas.
- 32 -
s
AUTHORIZED GENERAL OBLIGATION BONDS
Amount
Date
Amount
Heretofore
Unissued
Purpose Authorized
Authorized
Issued
Balance
aiI terworks System 5-21-77—
$16,775Ob6
$11623,
Waterworks System 8- 9-80
21,000,000
16,200,000
4,800,000
Sewer System 5-21-77
3,303,000
2,030,000
01,273,000
Street Improvements 5-21-77
4,782,000
3,693,000
1,089,000
Storm Sewer and Drainage 11- 9-67
1,950,000
1,715,000
235,000
Storm Sewer and Drainage 5-21-77
473.000
100,000
373,000
Fire Station (for adjacent
areas, when annexed) 5-21-77
310 000
-0-
310.000
$4$; 93,On-
3, ,36
VY,-230,000
ESTIMATED GENERAL OBLIGATION
BOND PROGRAM
-
Anticipated Issuance
1983
• 1982
or Later
Total
Waterworks System $4,800,
173, �5�,00_5
9,950,
Sewer System 1,273,000
-0-
1,273,000
Street Improvements 1,089,000
-0-
1,089,000
Storm Sewer and Drainage 238.000
370,000
608,000
Fire Station (for adjacent
areas, when annexed) -0-
310,000
310,000
,4 0,000
$ 5,830,000
$33,T0�
AUTHORIZED BUT UNISSUED GENERAL OBLIGATION BONDS OF OVERLAPPING SUBDIVISIONS
The Lubbock Independent School District has
$12,000,000 in authorized but unissued
School
Building Unlimited Tax Bonds. The District -does not anticipate issuing $100,000
of these bonds
authorized in 1959 for stadium purposes. $11,900,000 of the bonds were authorized in 1977 for.
various school buildingpurposes; however, due
to Federal CoUrt litigation
concerning integra-
tion, the District has been unable to issue any of these bonds.
The District
is unable to
estimate at this time when the litigation will
be resolved or when
any of these
bonds might be
issued.
Lubbock County has $500,000 unissued Unlimited
Tax Road Bonds, authorized
in 1961, but has no
plans to issue these bonds.
ESTIMATED OVERLAPPING FUNDED DEBT PAYABLE FROM AD
VALOREM TAXES
s of
- -
1-31-81)
Estimated
Estimated
Total
%
Overlapping
Taxing Jurisdiction
Funded Debt
AFelicable
Funded Debt
City of Lubbock*
TMX �b68
0
Lubbock Independent School District
6,410,000
99.47%
6$65,850,000
376,027
Lubbock County
-0-
90.93%
-0-
Lubbock County Hospital District
1,210,000
90.93%
1,100,253
Lubbock County Water Control and
Improvement District No. 1
-0-
90.93%
-0-
Lubbock-Cooper Independent School District
1,380,000
2.34%
32,292
Frenship Independent School District
3,929,520
24.52%
963,518
Roosevelt Independent School District
596,000
0.13%
775
Idalou Independent School District
653,000
0.01%
65
TOTAL OVERLAPPING FUNDED DEBT
$74,322,930
Ratio Overlapping Funded Debt to 1980 Net Appraised Value ----------------------------
2.92%
Ratio Overlapping Funded Debt to 1980 Taxable Assessed Valuation
---------------------
4.86%
Per Capita Overlapping
Funded Debt - $427.19
* Includes $16,750,000 Bonds which sold April
23. 1981.
- 33 -
Thereafter each month, penalty remains at 8%; interest increases 1/2 of 1% each month to a
maximum of 6%.
TAX RATE LIMITATIONS
All taxable property within the City is subject to the assessment, levy and collection by the
City of a continuing, direct annual ad valorem tax sufficient to provide for the payment of
principal of and interest on all types of tax obligations of the City within the limits
prescribed by law. Article XI, Section 5, of the Texas Constitution is applicable to the City
of Lubbock, and limits its maximum ad valorem tax rate to $2.50 per $100 assessed valuation (for
all city purposes). The City operates under a Home Rule Charter which adopts the Constitu-
tional provisions.
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:
- 34 -
TAX DATA
(YearN-ding 9-30)
Distribution
(1)
Tax
Tax
enera
Board of City Interest an
(1)
% Current
% Total
Year
Rate
FFu_ndd_
Development Sinkiin Fund
Tax Lev
Collections
Collections
�a
50.54
-,
93.76%
91.4W_-
1970-71
1.08
0.43
0.05 0.60
6,665,810
93.90%
97.82%
1971-72
1.14
0.37
0.05 0.72
7,183,732
94.06%
97.92%
1972-73
1.29
0.36
0.05 0.88
8,510,678
93.72%
96.41%
1973-74
1.36
0.46
0.05 0.85
9,740,664
93.18%
96.39%
1974-75
1.36
0.54
0.05 0.77
10,844,475
93.16%
97.26%
1975-76
1.36
0.70
0.05 0.61
12,560,384
93.43%
97.19%
1976-77
1.41
0.75
0.05 0.61
14,298,093
93.09%
95.76%
1977-78
1.41
0.86
0.05 0.50
15,574,742
93.84%
96.41%
1978-79
1.12
0.75
0.05 0.32
14,537,782
92.75%
95.39%
1919-80
1.12
0.68
0.05 0.39
15,718,930
94.50%
98.68%
1980-81
1.10
0.68
0.05 0.37
16,826,567
In Process of Collection
(1) "Tax Levy"
and "Percent Current Collections" for Tax
Years 1969-70 through
1979-80 have
been adjusted to reflect
final, corrections and supplements to the tax rolls as audited at the
end of each fiscal year.
Property
within
the City
is assessed as of January 1 of each year; taxes become due
October 1 of
the same
year, and become
delinquent on January 31 of the
following
year. Split
payments are
not permitted.
Discounts
are not allowed.
Penalty and interest charges
for late payment are:
Month
Paid Penalty Interest
Total
February - 1% 1/2 of 1K 1 1/2%
March 2% 1%
3%
April 3% 1 1/2%
4 1/2%
May 4% 2%
6%
_
June 5% 2 1/2%
7 1/2%
July 8% 3%
11%
Thereafter each month, penalty remains at 8%; interest increases 1/2 of 1% each month to a
maximum of 6%.
TAX RATE LIMITATIONS
All taxable property within the City is subject to the assessment, levy and collection by the
City of a continuing, direct annual ad valorem tax sufficient to provide for the payment of
principal of and interest on all types of tax obligations of the City within the limits
prescribed by law. Article XI, Section 5, of the Texas Constitution is applicable to the City
of Lubbock, and limits its maximum ad valorem tax rate to $2.50 per $100 assessed valuation (for
all city purposes). The City operates under a Home Rule Charter which adopts the Constitu-
tional provisions.
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:
- 34 -
Fiscal Net Estimated
Year Collections % of Equivalent Net
Ended Remitted Ad Valorem Ad Valorem Collections
9-30 to City Tax Levy Ta ate Per Capita
I�7�
-�'F,�S 81141
1971. 2,964,736 44.48% 0.480 --
1972 3,086,164 42.96% 0.490 7-
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 --
1977 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 50.08**
* Based on U.S. Census, 1970, of 149,101.
** Based on Preliminary U.S. Census, 1980, of 174,157.
ESTIMATED 1980-81 TAX YEAR OVERLAPPING TAXES
Set forth below is an estimate of all 1980-81 Tax Year taxes levied on an average $50,000
single-family residence by the shown taxing jurisdictions, assuming appraisals are as shown and
assessments are made at the estimated basis of assessment. 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:
Estimated Estimated Estimated 1980 Estimated
Appraised Basis of Assessed Tax 1980 Taxes
Taxing Jurisdiction Value Assessment Valuation Rate Levied
My ot Lubbock _55U;DW ___6W- _ST� TFTO $330.00.
Lubbock Independent School District 45,000** .60% 27,000 1.510 407.70
Lubbock County 30,b00 40% 12,000 0.780 93.60
Lubbock County Hospital District 30,000 40% 12,000 0.750 90.00
High Plains Underground Water Con-
servation District No. 1 30,000 40%_ 12,000 0.045 5.40
Estimated Total 1980-81 Ad Valorem Taxes $926.70
* Market value.
** After $5,000 market value residence homestead exemption.
TOP TEN TAXPAYERS
1980 % of 1980
Taxable Taxable
Assessed Assessed
Name of Taxpayer Nature of Property Valuation Valuation
Tex -as instruments Incorporated Electronics Manu acturer $ 37,725--,-76-6 2.4
Southwestern Bell Telephone Company Telephone Utility 36,179,050 2.37%
Southwestern Public Service Company Electric Utility 20,345,600 1.33%
South Plains Mall Regional Shopping Center 12,069,270 0.79%
Plains Co-op Oil Mill Oil Mill 8,865,380 0.58%
Energas Company (a division of
Pioneer Corporation) Gas Utility 7,842,490 0.51%
Furr's, Inc. Retail Groceries 6,646,680 0.43%
International Business Machines Computers, Business Machines 6,393,082 0.42%
Clark Equipment Company Earth Moving Equipment 5,103,130 0.33%
Waples-Platter West Wholesale Groceries 4 506 790 029%
- 35 -
INTEREST AND SINKING FUND MANAGEMENT INDEX
General Obligation Debt Service Requirements for Fiscal Year Ending 9-30-81 ----- $6,762,734
Interest and Sinking Fund, All General Obligation Issues, 9-30-80 -- $1,178,527
1980 Interest and Sinking Fund Tax Levy @ 95% Collection -----------5,376,877
Estimated Income from Other Sources, as Budgeted ------------------- 992,476 7,547,880
Estimated Surplus--------------------------------------------------------------- S 785,146
COMPUTATION OF SELF-SUPPORTING DEBT
Net System Revenue Available for Fiscal Year
Ending 9-30-80
Less: Revenue Bond Requirements, 1980-81
Fiscal Year
Balance Available for Other Purposes
System General Obligation Bond Requirements,
1980-81 Fiscal Year
Balance
Percentage of System General Obligation Bonds
Self -Supporting
Electric Light
Waterworks Sewer and Power
System System System
$3,115,161 $1,038,770 $5,020,689
457,770 -0- 2,248.180
$2,657,391 $1,038,770 $2,772,509
1,919,285 583,034 42,233
S 738,106 S 455,736 $2,730,276
PENSION FUNDS
100.00% 100.00% 100.00%
Texas Municipal Retirement System ... All' permanent, full-time City employees who'are not
remen and who were less 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
covered salary. The City's contribution rate is calculated each year using actuarial tech-
niques applied to experience; the 1980 contribution rate is 7.46% of gross covered payroll and
the 1981 contribution rate will be 7.51%. 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, 1979, was
$9,474,018; this liability is being actuarially amortized annually.
City of Lubbock assets held *by the System on December 31, 1979, were $1,385,743 for prior
service liabilities and $13,315,993 for accrued current service liabilities. Unfunded accrued
current service liabilities totaled $523,297, and are being liquidated by a five year amortiza-
tion adjustment included in normal contribution rates.
Fireman's Relief and Retirement Fund .. City of Lubbock firemen are members of the locally
administered Lu ock Fire-m-e-n-'s-WeTTeR and Retirement Fund, operating under an act passed in
1937 by the State Legislature and.adopted by City firemen, by vote of the department, in 1941.
Firemen are not covered by Social Security. ,
The fund is governed by seven trustees, three firemen, two outside trustees (one appointed by
the firemen trustees and one appointed by the Mayor), the Mayor or his representative and the
Director of Finance of the City. Execution of the act is monitored by the Firemen's Pension
Commissioner, who is appointed by the Governor.
-36-
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'fuli salary into the fund and the City must contribute a like amount; however, the City
contributes on a basis of the percentage of salary which is a ratio adjusted annually that bears
the same relationship to the firemen's contribution rate that the City's rate paid into the
Texas Municipal Retirement System and FICA bears to the rate other employees pay into the Texas
Municipal Retirement System and FICA. The City's present contribution rate is 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 fundingproggram 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".
- 37 -
4
+ GENERAL INFORMATION REGARDING THE CITY AND ITS ECONOMY
The City of Lubbock, County Seat of LubbockCounty, Texas, is located on the South Plains of
West Texas. Lubbock is the economic, educational, cultural and medical center of this area.
POPULATION ...
I Lubbock is the eighth largest City in Texas:
City of Lubbock
(Corporate Limits
1910 Census 1.938
1920 Census 4,051
1930 Census 20,520
1940 Census 31,853
1950 Census 71,390
1960 Census 128,691
1970 Census 149,101
1980 Census 173,979
Standard Metropolitan Area (Lubbock County)
1970 Census 179,295
• 1980 Census 211,651
AGRICULTURE ...
I 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.
I The Texas Department of Agriculture and the Statistical Reporting Service, U.S. Department
of Agriculture, in 1979 Texas County Statistics, report as follows:
t Lubbock County's 1979 cotton production was 240,800 bales, and grain sorghum production was
516,600 bushels, and corn production was 306,500 bushels.
I On January 1, 1980, there were an estimated 66,000 head of cattle located on farms or in feed
lots in Lubbock County. An estimated 101,000 cattle were marketed from feed lots during 1979.
I Lubbock County Cash Receipts from farm marketings, 1975/79, were:
1975 1976 1977 1978 1979*
All Crops T56,T65,-OW X0,666 $iT,514,000 T77F,-037-,U0 $ 72,102,0�
Livestock and Products 31,275,000 26,374,000 27,455,000 27,053,000 40,432,000
U.S. Government Payments 4,615,000 2,796,000 1,153,000 6,498,000 5,971,000, '
Total Cash Receipts $92,150,000 $104,630,000 $106,122,600 $105,608,000 $118,505,000
* Preliminary - subject to revision.
I 1979 cotton production in a 23 county (including Lubbock County) area surrounding Lubbock
was 2,541,000 bales; 1979 grain sorghum production in this same area was 16,038,400 bushels and
grain corn production was 73,089,600 bushels; and 1979 cash receipts from farm marketings were
51,917,394,000.
I Three major vegetable oil plants located in Lubbock have a combined weekly capacity of over
2,400 tons of cottonseed and soybean oil.
I Several major seed companies are headquartered in Lubbock.
- 38 -
BUSINESS AND INDUSTRY ...
Lubbock SMSA
Labor Force Estimates
(Source: Texas Employment ommissfon)
December November
October December November
October
1980* 1980 1980 1979 1979
_107;_6M
1979
Civilian Labor Force 101.460
TaT;W -IO2,320
Total Employment 98,890 97,080
97,810 100,970 99,130
102,660
99,550
Unemployment 3,920 4,380
3,710 2,630 3,190
3,110
Percent Unemployed 3.8% 4.3% 3.7%. 2.5% 3.1%
3.0%
* Subject to revision.
The Texas Employment Commission reported
in January, 1981, that December,
1980, non-
agricultural employment in the Lubbock area
totaled 89,830, down from 90,790 in December, 1979;
of this total an estimated 11,980 were
employed in manufacturing compared to
13,550 in
December, 1979.
I Over 240 manufacturing plants in Lubbock
produce such products as consumer products utiliz-
ing semi -conductor elements, vegetable oils,
heavy earth -moving machinery, irrigation equip-
ment 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.
I Some larger industries in Lubbock (with
more than 100 employees) are:
Estimated
Employees
January,
Company
Product
1981*
Texas Instruments, Inc.
Consumer Products with Semi -Conductor
X50+
Elements
Johnson Manufacturing Company (Division of
Heavy Earth -Moving Machinery and
725+
Eagle-Picher Industries)
Farm Equipment
Lubbock Avalanche -Journal Southwestern
Newspaper
380+
Newspaper Corporation
Litton Data Systems, Guidance and Control
Navigational Equipment; Electronic
350+
Systems Division, Litton Industries, Inc.
Computer Systems
Plains Co-op Oil Mill
Vegetable Oil Products, Cottonseed
350+
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
240+
Mrs. Baird's Bakeries
Bread Products
180+
Coca-Cola Bottling Company
Soft Drinks
175+
Devro Inc. (Subsidiary of Johnson and
Sausage Casings
175+
Johnson)
Bush Hog -Husky Company (Subsidiary of
Structural Steel Fabrication, Irriga-
150+
Allied Products, Inc.)
tion Equipment, Pollution Equipment
Clark Equipment Company (Hancock
Heavy Road and Earth -Moving
150+
Division)
Machinery
Grinnell Fire Protection Systems Company
Automatic prinkler Heads
15D+
(Subsidiary of Tyco Laboratories)
Rainbo Baking Company, subdivision of
Bread Products
130+
Cambell -Taggart Associated Bakeries, Inc.
•
Bell Dairy Products, Inc.
Dairy Products
125+
Hall Foundries b Manufacturing, Inc.
Aluminum and Brass Castings, Wooden
125+
Foundry Patterns
Lubbock Cotton Oil Company-- -- - -
Cottonseed Oil and Other Cottonseed -
125+
Products, Soyean Oil
Dr. Pepper -Seven Up Bottling Company
Soft Drinks
10D+
----• - - Farm Pac Kitchens
Meat Processing
100+
Nubro Corporation
Reground Ball Bearings, Formed Wire
100+
Coils, Starter Armatures
— - * Source: Lubbock Chamber of Commerce.
-39-
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, and automated watch manufacturing has been moved to Lubbock.
• Michelin Tire Corporation, Manufacturing Division, is planning to construct a tire manufac-
turing plant on a 510 acre site in northeast Lubbock; completion is scheduled in 1983 with
projected employment at over 1,000.
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, 1972, estimated Lubbock County (Lubbock
Standard Metropolitan Area) retail trade at $481 million in 1972. Sales & Ma�rketii
Management, Survey of Buying Power, estimates Lubbock County 1979 retail— sales at
TF.134,430,000.
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
Year End
De osits
TNT—
$412,459,08
--W5—
878,164.171
1970
477,247,184
1976
1,013,973,289
1971
527,314,293
1977
1,104,602,863
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
EDUCATION ... TEXAS TECH UNIVERSITY
• Established in Lubbock in 1925, Texas Tech University is the third largest State-owned
University in Texas and had a Spring, 1981 enrollment of 21,155. 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. 1980-81 faculty membership is
1,462, and over 3,000 other full and part-time employees including professional and administra-
tive staff. Including the Medical School, the University's operating budget for 1980-81 is
over $119.3 million of which $89.5 million is from State appropriations; book value of physical
plant assets, including the Medical School, is $288.4 million.
I In 1969, the State Legislature authorized the establishment of a medical school at the
University. Construction of Pod A of the school is complete, and construction on Pods B and C
is approximately 60% complete. The medical school opened in 1972, and had an enrollment of 282
for the Spring Semester, 1981, not including residents.
OTHER EDUCATION INFORMATION ...
The Lubbock Independent School District, with an area of 87 square miles, includes over 95%
of the City of Lubbock. Enrollment as of 1-15-81 was 29,220; at the beginning of the year there
were 2,021 faculty and professional personnel and 1,224 other employees. The District operates
5 senior high schools, 8 junior high schools, 35 elementary schools and other educational
programs.
- 40 -
R
SCHOLASTIC MEMBERSHIP HISTORY (1)
Scholastic Refined Average
-Schoolear Membership Dail Attendance
1968-669 32501 31358
1969-70 32,401 31,322
1970-71 32,648 31,477
1971-72 32,660 31,355
1972-73 32,063 30,716
1973-74 32,499 30,477
'1974-75 32,209 30,255
1975-76 31,733 29,936
1976-77 31,502 29,683
1977-78 31,163 29,554
1978-79 29,877 28,284
1979-80 28,751 27,257
1980-81(2) 29,220 27,551
(1 Source: Superintendent's Office, Lubbock Independent School District.
(2 As of 1-15-81.
0 Lubbock Christian College, a privately owned, co-educational senior college located in
Lubbock, had an enrollment of 1,121 for the Spring Semester, 1981, 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, 1981, enrollment was 710.
The College also operates a major off -campus learning center at Reese Air Force Base; course
offerings are in primarily academic subjects and Spring, 1981 enrollment was 289.
1. 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 1980/81 is in excess of $9 million. The School is operating at 100% capacity, and
has over 700 professional and other employees.
TRANSPORTATION ...
0 Scheduled airline transportation at Lubbock International Airport is furnished by Braniff
International, Continental Airlines, Texas International, Southwest Airlines and Air Midwest;
American Air Lines plans to commence service June 11, 1981. Non-stop service is provided to
Dallas -Fort Worth Regional Airport, Dallas Love Field, Houston, Amarillo, Austin, E1 Paso,
Midland -Odessa and Albuquerque. 1980 passenger boardings totaled 455,925. Extensive private
aviation services are located at the airport. Federal Express services are available.
Rail transportation is furnished by the Atchison, Topeka a2d Santa Fe Railway Company and
the Burlington -Northern, Inc., with through service to Dallas, Houston, Kansas City, Chicago,
Los Angeles, and San Francisco. Texas, New Mexico and Oklahoma Bus Lines, a subsidiary of
Greyhound Corporation, provides bus service. Headquarters for T.I.M.E.-OC, Inc., a trans-
continental 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; first stage construction north of Lubbock is in progress.
GOVERNMENT AND MILITARY ...
0 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 in May, 1980,
had 2,805 military and approximately 600 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.
- 41 -
I Federal Government ... Several Federal departments and various other administrations 'and
agencies have offices in Lubbock; a Federal District Court is located in the City.
HOSPITALS AND MEDICAL CARE ...
0 There are seven hospitals with a February, 1981 total of 1,495 beds. Methodist Hospital,
the largest, employs 509 of its licensed 549 beds, and also operates an'accredited nursing
school; St. Mary's of the Plains Hospital utilizes 177 beds of its licensed 209 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 203 of its licensed 273 beds.
0 Lubbock has over 200 practicing physicians and surgeons (M.D.) plus the Texas Tech Univers-
ity Medical School Staff, and over 80 dentists. A radiology center for the treatment of
malignant diseases is located in the City.
RECREATION AND ENTERTAINMENT ...
0 Lubbock's Mackenzie State Park and 55 City parks provide recreation centers, playgrounds,
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.
0 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, a new convention and civic
center completed in March, 1977, 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.
I Available to residents are Texas Tech University programs and events, Texas Tech University
Museum, Planetarium and Ranch Heritage Center exhibits and programs, Lubbock Memorial Civic
Center and its events, Lubbock Symphony Orchestra programs, Lubbock Theatre Center, Lubbock
Civic Ballet, Municipal Auditorium and Coliseum programs and events, the library and its
branches, the annual Panhandle -South Plains Fair, college and high school football, basketball
and other sporting events; modern movie theatres.
CHURCHES
0 Lubbock has approximately 200 churches representing more than 25 denominations.
UTILITY SERVICES ...
0 Water and Sewer - City of Lubbock.
0 Gas - Energas Company (a division of Pioneer Corporation).
0 Electric - City of Lubbock and Southwestern Public Service Company.
0 Telephone - Southwestern Bell Telephone Company.
MEDIA ...
0 Newspapers - 1 daily (morning and evening); others semi-weekly and weekly.
0 Television and Radio - 3 network TV channels and 1 educational public service TV channel;
cable TV services; AM and FM radio stations.
- 42 -
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- 43 -
-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 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.
- 44 -
I"o1
d
AUTHENTICITY OF _FINANCIAL INFORMATION
The financial data and other information contained herein have been obtained from the City's
records, audited financial statements and other sources which are believed to be reliable.
There is no guarantee that any of the assumptions or estimates contained herein will be
realized. All of the'summaries of the statutes, documents and resolutions contained in this.
Official Statement are made subject to all of the provisions of such statutes, documents and
resolutions. These summaries do not purport to be complete statements of such provisions and
reference is made to such documents for further information. Reference is made to original
documents in all respects.
FINANCIAL ADVISORS
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.
CERTIFICATIbN 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 City will furnish the Purchaser, as a part of the transcript of proceedings, a certified
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.
BILL McALISTER
Mayor
ATTEST:
EVELYN E. GAFFGA
City Secretary
- 45 -
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, 1980. The information pre -
Tented 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.
AUDITED FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION
ELECTRIC REVENUE FUND
CITY OF LUBBOCK; TEXAS
September 30, 1980
t
AUDITED FINANCIAL STATEMENTS
ELECTRIC REVENUE FUND
CITY OF LUBBOCK9 TEXAS
September 30, 1980
CONTENTS
Accountants' Report
Electric Revenue Fund
Balance Sheet
Statement of Revenue and Expense
Statement of Changes in Fund Equity
Statement of Changes in Financial Position
Notes to Financial Statements
Page 3
4
6
7
8
4
No Text
ELECTRIC REVENUE FUND
BALANCE SHEET
CITY OF LUBBOCK, TEXAS
ASSETS
CURRENT ASSETS
ki
September 30 September 30
1980 1979
Cash and investments - Note B
$ 289759
$ 4439268
Accounts receivable, less allowance for
doubtful accounts (1980 - $396,342;
1979 - $141,454)
5,0219870
3,3649315
Due from other funds
3,2349972
2,725,161
Prepaid insurance
118,403
211,423
Inventory of fuel and supplies
5809,489
291,966
Stores inventory, less allowance for
obsolete inventory (1980 - $139126;
1979 - $13,404)
19130,485
731,499
TOTAL CURRENT ASSETS
10,114,978
71767,632
RESTRICTED ASSETS
Revenue bond debt service
Cash and investments - Note B
1,8109988
21822,538
Revenue bond reserve - investments -
Note B
1,5659473
1,451,173
39376,461
4,2739711
Capital projects
Cash and investments - Note B
2,3659359
29694,406
Due from other funds
397
29365,359
2,694,803
59741,820
61968,514
PROPERTY, PLANT AND EQUIPMENT
Utility plant in service
58,1059250
5098829335
Allowance for depreciation (deduction)
(23,865,629)
(22,134,465)
3492399621
28,7479870
Construction in progress - Note D
4,412,231
9,2779198
389651,852
3890259068
,L_541508,650 $ 52,761,214
4
{
September 30
September 30
1980
1979
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES
Accounts payable
$ 494619060
$ 195169,042
State sales tax payable
38,552
21,217
Accrued liabilities
929,442
61,720
Revenue collected in advance
8,889
8,503
Due to other funds
3,219,128
4,2279413
Total Current Liabilities
7,820,071
51834,895
LIABILITIES PAYABLE FROM RESTRICTED ASSETS
Revenue bond debt service
Current portion of revenue bonds payable
(included unamortized premium 1980 -
$252216; 1979 - $269699) - Note E
1,4151216
1,416,699
Accrued interest payable
394,932
214,664
1,8109148
196310363
Capital projects
Due to other funds
17,231
31,917
Accounts payable
209056
73,761
37,287
1059678
1 ,847 ,435
197379041
LONG-TERM LIABILITIES
Revenue bonds payable, less amount payable
within one year (included unamortized
premium 1980 - $201,726, 1979 -
$2260942) - Note E 14,651,726 16,0669942
Advance from general fund 4,5069635 3,650,635
19,1589361 1927179577
FUND EQUITY
Contributed capital 71720,261 797159288
Retained earnings
Reserved for revenue bond debt retirement 1,565,473 11,4519173
Reserved for revenue bond debt service 26,055 1,1919175
Reserved for capital improvements 312,476 . 134,710
Unreserved 16,058,518 149979,355
17,962,522 17,756,413
TOTAL FUND EQUITY 25,682,783 25,471,701
$ 54,508,650 $ 52,761,214
See notes to financial statements.
5
ELECTRIC REVENUE FUND
STATEMENT OF REVENUE AND EXPENSE
CITY OF LUBBOCK, TEXAS
Year Ended September 30
1980 1979
Operating revenues
Metered electricity sales
$ 26,0779709
$ 21,109,705
Municipal electricity sales
390829155
2,510,013
Total Operating Revenues
29,1599864
23,619,718
Operating expenses
24,870,851
209077,479
Net Operating Income Before Depreciation
41289,013
39542,239
Depreciation
19794,430
19,9189821
Net Operating Income
29494,583
1,623,418
Non-operating income
Interest earnings to revenue bond debt
service fund
649,796
659,017
Interest on investments on capital project
investments
59854
269924
Outside work orders
51,230
111,414
Miscellaneous
33,477
239504
Disposition of properties
(8,681)
5,247
731,676
826,106
3,2269259
2,4499524
Non-operating expenses
Interest on bonds
1,082,849
726,670
Transfers -
Contribution to debt service
2919358
2999992
Contribution to general fund
1,6459943
1,350,738
NET INCOME
$ 206 ,109
$ 72,124
See notes to financial statements.
6
ELECTRIC REVENUE FUND
STATEMENT OF CHANGES IN FUND EQUITY
CITY OF LUBBOCK, TEXAS
See notes to financial statements.
7
Contributed
Retained
Total
Capital
Earnings
Balance, October 1, 1978
$ 23,0799754
$ 59395,465
$ 179684,289
Net income
729124
72,124
Contributions:
From other funds
213191823
29319,823
BALANCE SEPTEMBER, 30, 1979
2594719701
797159288
17,756,413
Net income
206,109
2069109
Contributions:
From general fixed assets
4,973
4,973
BALANCE, SEPTEMBER 309 1980
252682,783
$ 71720,261
$ 17,962,522
See notes to financial statements.
7
r
ELECTRIC REVENUE FUND
STATEMENT OF CHANGES IN FINANCIAL POSITION
CITY OF LUBBOCK, TEXAS
Year Ended September 30
1980 1979
FUNDS PROVIDED
Net income for the year $ 2069109 $ 72,124
Add expenses and changes not requiring
working capital in the current period:
Depreciation 1,794,430 1,918,821
Total From Operations 2,000,539 11990,945
Decrease in restricted assets 19226,694 2879229
Decrease in construction in progress 49864,967 1,5779247
Increase in contributed capital 41,973 213199823
Increase in liabilities payable from
restricted assets 110,394
8,207,567 $ 6,175,244
FUNDS USED
Purchase of property, plant and equipment $ 79286,181 $ 4,380,383
Decrease in liabilities payable from
restricted assets 300,142
Decrease in long-term liabilities 559,216 11298,887
Increase in working capital 3629170 1959832
82207,567 $ 62175,244
CHANGES IN COMPONENTS OF WORKING CAPITAL
Increase (decrease) in current assets:
Cash and investments
$ (414,509) $
96,395
Accounts and notes receivable
1,657,555
243,943
Due from other funds
509,811
1179639
Prepaid insurance
(930020)
749398
Inventory of fuel and supplies
288,523
(2469083)
Stores inventory
3989986
95,444
Increase in Current Assets
2,3479346
381,736
Increase (decrease) in current liabilities:
Accounts payable
2,945,018
(369233)
State sales tax payable
17,335
(353,047)
Accrued liabilities
309722
11,333
Revenue collected in advance
386
380
Due to other funds
(1,008,285)
245,471
Increase in Current Liabilities
1,985,176
185,904
INCREASE IN WORKING CAPITAL
$ 3622170 $
195 832
See notes to financial statements.
8
NOTES TO FINANCIAL STATEMENTS
CITY OF LUBBOCK, TEXAS
September 30, 1980
Note A - Summary of Significant Accounting Policies
Basis of Accounting - The accounting records of the Electric Revenue Fund are
maintained on an accrual basis.
Investments - Investments are carried at par value net of any unamortized
premium or discount. Investment earnings and the related interest receivable
are recorded in the fund holding the investment, except in the cases of the
Internal Service Fund and the Special Assessment Funds, for which the General
Fund accounts for the interest receivable and investment earnings, and the
Capital Projects Funds for which the Debt Service Fund accounts for the
interest receivable and investment earnings.
Inventories - Inventories are valued at cost, determined by the average cost
method.
Property, plant and equipment - Property, plant and equipment are carried at
cost. Depreciation in the Proprietary Funds is computed using the
straight-line method using lives ranging from 3-100 years, depending on the
individual fund and the asset category. When assets are retired or otherwise
disposed of, the cost and related allowance for depreciation are removed from
the accounts, and any resulting gain or loss is reflected in income for the
period. The cost of maintenance and repairs is charged to expenditures as
incurred, whereas significant renewals and betterments are capitalized and
deduction is made for retirements resulting from the renewals or betterments.
No depreciation is recorded on General Fixed Assets. When these assets are
retired or otherwise disposed of, the cost is removed from the accounts and any
resulting gain or loss is reflected in revenues of the General Fund.
Note B - Cash and Investments
Amounts deposited with the Texas Commerce Bank of Lubbock at September 30,
19809 were as follows:
Checking accounts $ (781)
Investments 331309,490
$ 33,308,709
Securities pledged by the depository bank to secure the City's deposits
amounted to $33,432,004 at September 30, 1980. Certificates of Deposit bear
interest at rates ranging from 9% to 10%
9
NOTES TO FINANCIAL STATEMENTS - Continued
CITY OF LUBBOCK, TEXAS
September 30, 1980
Note C - Contingencies
The city is defendent in various lawsuits alleging damages of approximately
$585,000. The lawsuits allege damage from flooding of property caused by
improper drainage from City improvements; from fire and explosion; from
improper use of City facilities; from civil rights violations; from zoning;
employee mis-treatment and other causes. The City Legal Department has advised
that the settlement value of these cases will probably be much less than the
alleged damages. However, the actual amount of the loss was not reasonably
estimable as of September 30, 1980.
Note D - Construction in Progress
The original appropriations and current status of construction in progress for
the enterprise funds are:
Approximate Estimated
Original Percentage Cost of
Appropriation of Completion Completion
Electric 311959411 38% 1,995,263
Note E - Bonds Payable
The ordinances for the revenue bonds of the Electric Revenue Fund require the
establishment of a bond retirement fund and a bond reserve fund. The
retirement funds of the Electric Revenue Bonds require a monthly deposit of
one -twelfth (1/12) of the next annual principal maturity and one-sixth (1/6) of
the next semi-annual installment of interest. These deposits may be reduced by
the amount of income earned on investments of the fund.
The reserve fund of the Electric Revenue Bonds requires a monthly deposit of
$ 9,525 until the fund has a balance of $1,625,000. These deposits may be
reduced by the amount of income earned on investments of the fund. The balance
in the reserve at September 30, 1980 was $1,565,473. The maximum amount will
be deposited by May of 1981.
Withdrawals from the bond retirement fund and the bond reserve are limited to
payment of bond maturities and interest.
The net revenues before depreciation and interest deductions of the Electric
Revenue Fund have been pledged as collateral for the revenue bonds. The City
may levy an ad valorem tax to supplement the pledge of gross revenues of the
Municipal Airport Fund. The maximum rate is five cents per $100 valuation.
10
NOTES TO FINANCIAL STATEMENTS - Continued
CITY OF LUBBOCK, TEXAS
September 30, 1980
Note F - Pension Plans
Eligible City employees are covered by the Texas Municipal Retirement System, a
state-wide plan. Contributions by the City are based on percentages of
salaries and wages. The City's policy is to fund pension costs accrued. The
actuarially computed value of vested benefits as of December 31, 1979, exceeded
pension fund assets by approximately $9,997,315.
City contributions to the retirement fund, charged to operations during the
fiscal year, were $195,919.
RESOLUTION
WHEREAS, the City Council of the City of Lubbock, Texas, desires to
receive bids for the purchase of its $9,000,000 Electric Light and Power
System Revenue Bonds, Series 1981; and
WHEREAS, First Southwest Company, Dallas, Texas, has been authorized
and requested to prepare a Notice of Sale and Bidding Instructions, Official
Bid Form and Official Statement conta'irrin.g 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 $9,000,000 City of Lubbock, Texas,
Electric Light.and Power System Revenue Bonds, Series 1981, 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' day of 199
by the City Council of the City of Lubbock, Texas, convened in
session with a lawful quorum present.
BILL MC ALISTER, MAYOR
ATTEST:
Evelyn Gaffga, City Secretary -Treasurer
APPROVED AS TO FORM:
John C. Ross, Jr., City Attorney
(Ie G
.x"�..151
GENERAL CERTIFICATE
THE STATE OF TEXAS §
COUNTY OF LUBBOCK §
CITY OF LUBBOCK §
WE, the undersigned, Mayor, City Secretary and City Treasurer,
respectively, of the City of Lubbock., Texas, DO HEREBY CERTIFY
as follows:
1. Relative to No -Default _
That the City of Lubbock, Texas, is not in default as to
any covenant, condition or obligation contained in the ordinances
authorizing the issuance of the "City of Lubbock, Texas, Electric
Light and Power System Revenue Bonds" being Series 1964 dated
March 15, 1964; Series 1965 dated March 15, 1965; Series 1973'
dated July 15, 1973; Series 1975 dated March 15, 1975; Series
1975-A dated September 15, 1975; and Series 1976 dated April 15,
1976.
WE FURTHER CERTIFY that there is on hand in the "SPECIAL
ELECTRIC LIGHT AND POWER SYSTEM REVENUE BOND RETIREMENT AND
RESERVE FUND" pertaining to the above bonds the sum of
$ 4,063,141 of which the sum of $ 1 625,000 is the reserve
portion thereof.
2. Relative to Nonencumbrance of City's Electric Light
and Power System.
That save and except for the pledge of the income and revenues
of the City's Electric Light and Power System to the payment of
the principal and interest to become due with respect to the propose(
"CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND POW -ER SYSTEM REVEN7dE
BONDS, SERIES 1981" dated August 15, 1981, and the outstanding
and unpaid "CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT AlIL P019ER
YSTEY,, REVENUE BONDS" being Series 1964 dated :larch 15, 1964;
Series 1965 dated March 15, 1965; Series 1973 dated July 15,
1973, Series 1975 dated March 15, 1975, Series 1975-A dated
September 15, 1975 and Series 1976 dated April 15, 1976, said
income and revenues of said System have not been pledged or
hypothecated in any other manner or for any other purpose; that
there are no liens, encumbrances or any other indebtedness
whatsoever outstanding against the City's Electric Light and
Power System or the income and revem ue= of such System; and
that the above bonds evidence the =1y lien, encumbrance or
indebtedness of said System.
3. Relative to Income and Revem-aes of the Cit's Electric
Light and Ho;aer System.
That the following is a schedu'e of the gross receipts,
operating expenses and net revenues c the City's
Electric Light and Power System for the years stated:
Fiscal Year
Ending 9/30
1976
1977
1978
1979
1980
Gross
Receipts
$16,691,079
20,116,266.
23,072,509
24,445,824
29,891 540
Operating
Expenses
$11,455,620
14,292,538
17,355,243
20,077,479
24.870,851
Net
Revenues.
$5,235,459
5,823,728
5,717,266
4,368,345
5_,,020_,689
4. Relative to Utility Properties.
That to our certain knowledge the City of Lubbock, Texas, -
has owned and operated its E'Aectric Light and Power System since
the acquisition thereof by said City in the year 1916.
That to this date, no question has arisen and no proceedings
of any nature have been instituted in any manner, questioning
the City's right and title to said utility properties or its
authority to operate same, and that no question has arisen and
no proceedings•of any nature have been instituted in any manner
questioning -the City's right and. title -to any of. the additions,
extensions or betterments to said utility properties, constructed
or acquired since the original acquisition thereof_
5. Relative to Ownership of Electric Light and Power System.
That the City of Lubbock, Texas, has as a part of its Electric
Light and Power System the following:
Station No. 1: Six Nordberg I.C. dual fuel engine driven generators
with a total installed capacity of 9.,150 KW,
nameplate;
Station No. 2: Two Nordberg I.C. dual fuel engine driven generators -
2,500 KW each
One DeLavel steam -turbo generator - 7,500 KW;
Two Westinghouse steam -turbo generators - 11,500
KW each; and
Two Westinghouse steam -turbo generators - 22,000
KW each.
_ Total installed nameplate capacity - 79,500 KW
Hollv Avenue: One Westinghouse gas turbine generator - 12,500 KW;
One Worthington gas turbine generator - 18,000 KW;
One General Electric gas turbine generator - 20,000Kv ;
One General Electric steam turbo generator - 44,OOOM-I;
Total* installed nameplate capacity - 94,500 KW
Total generating capacity is 183,150 KW. Gas turbines and I.C.
generators - with 64,650 KW of ready reserve and quick -start
generation for emergency and peacking service
together with electrical transmission and distribution lines.
6. Relative to Rates Prescribed for Electric Service
furnished by the City of Lubbock, Texas, Electric Light and
Power System.
That the current monthly rates and charges for electric
service furnished by the City of Lubbock, Texas, Electric
Light and Power System:
Residential. KWH Per KWH
First M $0.040
Next 22 .0345
Over 122 .0222
Minimum 1.8500
Space & Water Heating
AlKWIH $0.0115
Total Electric Residential
Summer Months May Oct Winter Months (Nov/April)
KWH Per KWH KWH Per KWH
First 0 First .0740'
Next 50 .0488 Next 50 .0488
.Next 100 .0240 Next 100 .0240
Next 500 .0115 Next 500 .0115
Next 800 .0240 Next 800 .0246
Over 1,500 .0206 Over 1,000 .0115
Minimum Bill $1.85 Minimum Bill $1.85
Commercial .
First 100 $ 0.0480
Next 900 .0300 _
Next 4,000 .0240
Next 15,000 .0180
Over 20,000 .0120
Minimum Bill - $2.40
Irrigation Service
A KWH -X0.0180
Fuel Cost Adjustment: In addition to the rates shown above,
the net charge per KWH will be increased or decreased based on a
formula which provides for fluctuations in the cost of natural
gas and fuel oil. Factor for November, 1979 - 2.51254/KWH
7. Relative to No Petition.
That no petition•of any kind or character has been filed
with the Mayor, City Secretary or any member of the City Council
or any other official of the City protesting the issuance of
the $9,000,000 "City of Lubbock, Texas, Electric Light and
Power System Revenue Bonds, Series 1981" dated August 15, 1981.
8. Relative to City Officials
That the duly qualified and acting officials of the City
are as follows:
BILL McALISTER MAYOR
EVELYN GAFFGA CITY SECRETARY/TREASURER
LARRY CUNNINGHAM CITY MANAGER
ROBERT MASSENGALE DIRECTOR OF FINANCE
,- JOHN ROSS, JR. CITY ATTORNEY
9. Relative to Incorporation.
That the City of Lubbock, -=exas, is incorporated under the
General Laws of the State o= Texas and is operating under the
Home Rule Amendment to the Texas Constitution, Section 5, Article
XI, as amended in 1912; the City Charter was originally adopted
at an election held December 27, 1917, and said Charter has not
been amended or revised in any respect since the 24th day of
January, 1967, the date of the last Charter Amendment Election.
WITNESS OUR HANDS AND SEAL OF' THE CITY OF LUBBOCK, TEXAS,
this the- day of , 1981.
Mayor, City of Lubbock, Texas
City Secretary - City Treasurer
City of Lubbock, Texas
(City Seal)
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A RESOLUTION by the City Council of the
_City of Lubbock, Texas, awarding the
sale of $9,000,000 "City of Lubbock,
Texas, Electric Light and Power
System Revenue Bonds, Series 1981"
dated August 15, 1981. ff
I
WHEREAS, this City Council has heretofore determined that F
it is to the best interest of the City and it inhabitants to
provide for the sale of the revenue bonds authorized to be
issued by Ordinance duly adopted on the 23rd day of April,
1981, notice of said sale having been duly published; therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK,
TEXAS:
That the $9,000,000 "CITY OF LUBBOCK, TEXAS, ELECTRIC
LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES 1981" dated j
August 15, 1981, heretofore authorized to be issued be and I
the same are hereby sold to
for cash for the par value thereof and accrued interest thereon
to date of delivery, plus a premium of $. Delivery
of said bonds shall be made to said pure asers as soon as
may be after the adoption of this resolution, upon payment
therefor in accordance with the terms of sale.
PASSED AND APPROVED to take effect immediately, this the
day of 1981. j
Mayor,' of Lubbock, Texas
ATTEST
1
City Secretary, City of Lubbock,
Texas
w
i.
(City Seal)
r
f
CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS §
COUNTY OF LUBBOCK §
CITY OF LUBBOCK
I, the undersigned, City Secretary of the City of
Lubbock, Teas, DO HEREBY CERTIFY as follows
1 That on the day of J. 1981,
the City Council of tFe City of Lubbock, Texas, convened in
session at its regular meeting place in the
City Hall of said City; the duly constituted members of the
Council being as follows:
BILL McALISTER MAYOR
ALAN HENRY )
M.J. ADERTON
E. JACK BROWN ) COUNCILMEMBERS
JOAN BAKER )
and all of said persons were present at said meeting, except
the following: Among
other business considered at said meeting, the attached
resolution entitled:
"A RESOLUTION by the City Council of the City
of Lubbock, Texas, awarding the sale of
$9,000,000 "City of Lubbock, Texas,
Electric Light and. Power System Revenue
i
Bonds, Series 1981" dated August 15, 1981."
was introduced and submitted to the Council for passage and
adoption. After presentation and due consideration of the
resolution, a motion was made by that
the resolution be finally passed and adopted. The motion
was seconded by and carried by the
following vote:
voted "For" voted "Against" abstained
all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
2. That the attached resolution is a true and correct
copy of the original on file in the official records of the
City; the duly qualified and acting members of the City
Council of said City on the date of the aforesaid meeting
are those persons shown above and, according to the records
of my office, each member of the Council was given actual
notice of the time, place and purpose of the meeting and had
actual notice that the matter would be considered; and that
said meeting, and deliberation of the aforesaid public
business, was open to the public and written. notice of said
meeting, including_.,the subject of the entitled_reso.lution
was posted and given in advance thereof in compliance with
the provisions of Article 6252-17, Section 3A, V.A.T.C.S..
i
IN WITNESS WHEREOF, I have hereunto signed my name
officially and affixed the seal of said.Gity, this the
day of 1981.
j
i
City Secretary, City o i�
® I:
Lubbock, Texas �t'f
(City Seal)
CERTIFICATE AS TO OFFICIAL STATEMENT
THE STATE OF TEXAS §
COUNTY OF LUBBOCK §
CITY OF LUBBOCK §
WE, the undersigned, Mayor and City Secretary of the City
of Lubbock, Lubbock County, Texas, DO HEREBY CERTIFY that to
the best of our knowledge and belief:
(a) the descriptions and statements of or pertaining to
the City contained in its Official Statement dated
and any addenda, supplement or amendment thereto, for its
$9,000,000 "City of Lubbock, Texas, Electric Light and Power
System Revenue Bonds, Series 1981" 'on the date of such Official
s
Statement; on the date of sale of aid Bonds and the acceptance
of the best bid therefor, and on the date of the delivery, were
and are true and correct in all material respects;
(b) insofar as the City and its affairs, including its
financial affairs, are concerned, such Official Statement did
not and does not contain an untrue statement of a material fact
or omit to state a material fact required to be stated therein
or necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading;
(c) insofar as the descriptions and statements, including
financial data, of or pertaining to entities other than the
City, and their activities contained in the 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 J. the
date of the last audited financial statements of the City.
TO CERTIFY WHICH, witness our hands and seal of said City
as of the same being the date
of delivery of the bonds herein described_
Mayar, c-ty of Lubbock, Texas
City Secretary, City of Lubbock,Texas
(City Seal)
TREASURER'S RECEIPT
THE STATE OF TEXAS
COUNTY OF LUBBOCK
THE UNDERSIGNED HEREBY CERTIFIF-S as follows:
(1) That this certificate is executed and delivered with respect to the following described bonds:
"CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES 1981"
dated August 15, 1981 in the aggregate principal amount of $ 9 , 000, 000
(2) That on the date shown below as the date of execution and delivery of this instrument, the said
bonds were delivered to the purchaser thereof, namely:
(3) That all of said bonds have been paid for in full by the purchaser concurrently with the deliv-
ery of this certificate, and the issuer of said bonds has received the agreed purchase price for the said
bonds, as follows:
PRINCIPAL AMOUNT -----_--------- ----------------------------------------------$ 9,000,000.00
ACCRUEDINTEREST---------------------------------------------------------------$
PLUSPREMIUM-------------------------------------------------------------------- $
TOTAL AMOUNT RECEIVED
ON DELIVERY OF BONDS-- $
(4) At the time of such delivery there were no matured coupons attached to said bonds and aL un -
matured coupons were attached to said bonds.
•'(5) That the undersigned has executed this certificate in the capacity hereinafter shown for az: on
behalf of the said issuer of bonds.
EXECUTEDAND DELIVERED this ...................... ----------------------------------•-----------------------------------•
-•---•----------------------•--------------------------.----
City Treasurer
The foregoing signature of the foregoing designated official of the issuer is hereby certified as
genuine.
_...- - of
(BANK SEAL)
LAW OFFICES
Dumas, Huguenin, Boothman and Morrow
1212 United rational Bank Building
Dallas, Texas 75201
--•--------------•------------------------------- -- ank)
..............................................................
SIGNATURE AND NO -LITIGATION CERTIFICATE
THE STATE OF TEXAS
COUNTY OF LUBBOCK
WE,
the undersigned, hereby certify as follows:
(1) That this certificate is executed and delivered with reference to the following described bonds:
,,,CITY OF LUBBOCK, TEXAS, ELEC'MC LIgn AND POWER SYSTEM REVENUE BODS, SERIES 1981r
dated August 15, 1981 in the aggregate principal amount of $ 9,000,000
(2) That the undersigned officially executed and signed or countersigned said bonds and the inter-
est coupons attached thereto by causing their facsimile signatures to be placed on each of said bonds and
interest coupons and they hereby adopt said facsimile signatures as their own and declare that the same
constitute their signatures the same as if they had manually signed each of said bonds and interest
coupons.
(3) That on the date of such execution in such manner and on the date hereof, we were the duly
chosen, qualified and acting officers indicated therein and authorized to execute the same.
(4) That the legally adopted proper and only official corporate seal of the issuer is impressed, im-
printed or lithographed on all of said bonds and impressed on this certificate.
(5) We further certify that no litigation of any nature is now pending or, to our knowledge, threat-
ened affecting directly or indirectly the validity of said obligations or restraining, enjoining or in any
other manner affecting the issuance, sale, execution or delivery thereof, or the fixing or collection of the
revenues, rates and charges pledged to pay the principal of and interest thereon, or the pledge so made,
or affecting, in any way the right or authority of the issuer to pay said obligations, and the interest
thereon, or otherwise carrying out the terms and provisions of the authorizing proceedings, and the cov-
enants and agreements therein, and each or any of them, or the corporate existence or boundaries of said
issuer, or the title of the present officers or any of them to their respective offices, and that none of the
proceedings or authority for the issuance of said obligations has been repealed, revoked, rescinded, mod-
ified, changed or altered in any manner.
(6) That no petition or other request has been filed with or presented to any official of the issuer of
these bonds requesting that any proceedings authorizing the same be submitted to a referendum or other
election.
EXECUTEDAND DELIVERED this...........................................................................................................
(ISSUER'S SEAL)
SIGNATURE OFFICIAL TITLE
_....................................................................................._
Mayor,__,City__ of _Lubbock s__.Texa ...._..
City Secretary
-City-- ° f _. Lubb Q �.__? &---------------------------
The signatures of the officers subscribed above
are hereby certified to be true and genuine.
(BANK SEAL) ......_.................... .......................Bankk....................................
By....................................................................................... \3
Authorized Officer
LAW OFFICES
Dumas, Huguenin, Boothman and Morrow
1212 United National Bank Building
Dallas, Texas 75201
NO -ARBITRAGE CERTIFICATE
-THE.STATE OF TEXAS §
§
COUNTY OF LUBBOCK §
CITY OF-LUBBOCK §
WE, the undersigned, Mayor, and City Secretary, respectively,
of the City of Lubbock, Texas, who with other officers are
charged with the responsibility in the issuance of bonds, DO
HEREBY CERTIFY that to the best of our knowledge and belief,
the following facts, estimates and events have ocourred or are
reasonable expectations as to the amount, and use of funds,
pertaining to the issuance and sale of "City of Lubbock, Texas,
Electric Light and Power System Revenue Bonds, Series 1981"
dated August 15, 1981, in the total principal amount of
$9,000,000 (hereinafter referred to as the "Bonds"), to wit:
(a) The Bonds were sold on the day of
April, 1981, at the price of par and accrued interest
to the date of delivery, plus a premium of $ ,
and payment therefor occurred on thea�
1981, the City havingres ved the
following amount from the purchasers:
PRINCIPAL AMOUNT -------------
ACCRUED INTEREST-------------
PREMIUM----------------------
$9,000,000.00
TOTAL AMOUNT RECEIVED-- $
(b) The amount received from the purchasers of
the Bonds representing accrued interest and premium,
if any, was deposited in the interest and sinking fund
for the Bonds to be used to pay the first interest
payment to become due on the bonds on April 15, 1982.
(c) The balance of the amount received, $9,000,000,
has been deposited in one or more construction accounts
and allocated for various projects or purposes, which
are planned to be undertaken, accomplished and completed
as shover in the attached Schedule A, which is made a
part of this certificate for all purposes.
(d) Within six (6) months from the date of this
certificate the City will have incurred substantial
binding obligations or commitments for the projects
to be financed by the Bonds, either by entering into
contracts for construction, architectural services,
engineering services, or land acquisitions; site
development; construction materials, or the purchase
of equipment; such contracts or commitments involving
expenditures in excess of 2-1/2% of the estimated
total project costs of each project to be financed
by the Bonds.
(e) After entering into said contracts, work on the
projects will proceed with due diligence to completion.
. (f) All of the spendable proceeds of the Bonds will
be expended for project costs by the end of the three-
year period from the date hereof.
(g) None of the projects will be sold or otherwise
disposed of, in whole or in part, pri--- `" '''^ ''c}
maturity of the Bonds.
(h) Save and except for the Bond Fund (to pay
current principal and interest on the Bonds as the same
matures) and Reserve Fund (to provide a reserve in
the amount of $1,900,000, being the average annual
principal and interest requirements of the outstanding
previously issued bonds and the Bonds) reaffirmed in
Section 13 of the Bond Ordinance, no other sinking -,fund
or similar fund has been created or established for the
Bonds. Moneys deposited in the Bond Fund will be
expended withon one year from the date of deposit and
after the required reserve amount has been accumulated
in the Reserve Fund, any earnings and profits from the
investments of moneys deposited therein will be trans-
ferred to the System Fund to prevent the accumulation
therein of moneys in excess of the required r-eserve amount.
The foregoing certificates are based on facts, estimates,
and circumstances in existence on the date of this certificate,
and on such basis it is reasonably expected that the above -listed
events will occur. Furthermore, on the basis of the foregoing,
the proceeds of the Bonds will not be used in any manner that
would cause them to be or become arbitrage bonds under Section
103(c) of the Internal Revenue Code of 1954, as amended, or
the Regulations thereunder applicable thereto. To the best
of our knowledge and belief, there are no other facts, :,estimates
or circumstances that would materially change the above -recited
conclusions.
We further certify that to the best of our knowledge and
belief no Notice has been published in the Internal Revenue
Bulletin with regard to the City under the provisions of
paragraph (a)(2)(iii) of Section 1.103-13 of the Regulations
and the City has not been advised that any such Notice is
contemplated.
EXECUTED, this , the
date of delivery of the bonds hereinabove mentioned, being
the date of issue as provided in the Regulations.
Mayor, City of Lubbock, Texas
City Secretary, City of Lubbock, Texas:
(City Seal)
s
SCHEDULE A
Re:
1, (a) Projector Purpose Identification:
(b) Amount Allocated:
(c) Estimated Date (r_:ont an year issuer ..ill have entered
into a substantial binding obl=gation o= commitment for
project or purpose described in paragraph (d) of the
attached certificate.
(d) Estimated Date (month and Year) pro4ect or purpose c,T=i
be completed or accomplished
(d)
6.
Project or Purpose Identification;
AHiount Allocated: $
is
Estimated Date (month and year suer zYill have entered
into a substantial binding obligation or commitment for
project or purpose described iz paragrani� (d1 of the
attached certificate.
Estimated Date (month and yepry project or purpose wa.
be completed or accomplished
Project or Purpose Identificatiro-rl:
Amount Allocated $
Estimated Date (monthan year issuer :ill have entered
into a substantial binding obligation or commitment for
project or purpose described in paragraph (d) of the
attached certificate.
Estimated Date (month and year project or purpose wi
be completed or accomplished
Project or Purpose Identification: -
Amount Allocated:
Estimated Date (month an year issuer will have entere:
into'a substantial binding obligation or co=fitment for
project or purpose described iz paragraph (d) of t1ae
attached certificate
d year project or purpose tai
Estimated Date (month an
be completed or accomplished
Project or Purpose Identification_:
Amount Al ocate
Estimated Date (mons and year issuer .-ill Have entere
binding obligation or co-nitment for
into a substantial bind
project or purpose described iu paragraph (d,) of the
attached certificate
Estimated Date (month and year) project or purpose will
be completed or accomplished
Estimated Date (month and yea=) all 5 -2 -ds kill have
been expended