HomeMy WebLinkAbout05/11/2017 - Regular Agenda Packet - City CouncilCity Council Regular
College Station, TX
Meeting Agenda - Final
City Hall
1101 Texas Ave
College Station, TX 77840
City Hall Council Chambers7:00 PMThursday, May 11, 2017
1. Pledge of Allegiance, Invocation, Consider absence request.
Presentations:
•Presentation proclaiming May 7-13, 2017 as Bryan College Station Travel and
Tourism Week
• Presentation proclaiming May 21-27, 2017 as National Public Works Week
• Presentation proclaiming May as National Bike Month
• Presentation proclaiming May 7-13, 2017 as Municipal Clerks Week
Hear Visitors: During this time a citizen may address the City Council on any item
which does not appear on the posted Agenda. Registration forms are available in the
lobby and at the desk of the City Secretary. This form should be completed and
delivered to the City Secretary by 5:30 PM on the day of the Council meeting. Upon
stepping to the podium the speaker must state their name and city of residence,
including the state of residence if the city is located out of state. Each speaker's
remarks are limited to three minutes. A series of timer lights will change from green to
yellow and an alarm will sound after two and one-half minutes to signal thirty seconds
remaining to conclude the remarks. At three minutes the timer light will change to red
and the final alarm will sound. The speaker must then conclude the remarks. The City
Council will listen and receive the information presented by the speaker, ask staff to
look into the matter, or place the issue on a future agenda. Topics of operational
concerns shall be directed to the City Manager. Comments should not personally
attack other speakers, Council or staff.
Consent Agenda
At the discretion of the Mayor, individuals may be allowed to speak on a Consent
Agenda Item. Individuals who wish to address the City Council on a consent agenda
item not posted as a public hearing shall register with the City Secretary prior to the
Mayor's reading of the agenda item. Registration forms are available in the lobby and
at the desk of the City Secretary.
2.Presentation, possible action and discussion of consent agenda items which
consists of ministerial or "housekeeping" items required by law. Items may be removed
from the consent agenda by majority vote of the Council.
Page 1 College Station, TX Printed on 5/5/2017
May 11, 2017City Council Regular Meeting Agenda - Final
Presentation, possible action, and discussion of minutes for:
·April 27, 2017 Workshop
·April 27, 2017 Regular Meeting
17-02232a.
Sponsors:Mashburn
WKSHP042717 DRAFT Minutes
RM042717 DRAFT Minutes
Attachments:
Presentation, possible action, and discussion regarding Change
Order Numbers 1 and 2 to Greens Prairie Substation Contract
Number 17300106 in the total amount of $226,865.20.
17-01682b.
Sponsors:Crabb
Copy of 04212017-FINAL_CSGPCO1Form-Revised20140310Attachments:
Presentation, possible action, and discussion on approval of a
resolution stating that the City Council has reviewed and approved
the City's Amended Investment Policy Broker-Dealer List.
17-01842c.
Sponsors:Leonard
Resolution - Amendment of Broker.Dealer list FY17Attachments:
Presentation, possible action, and discussion to consider renewing
an agreement with the Wellborn Special Utility District to transfer
their water through the College Station water system.
17-01972d.
Sponsors:Coleman
Wheeling Renewal AgreementAttachments:
Presentation, possible action, and discussion regarding an inter
local agreement with the Texas Department of Public Safety, State
Administrator of the Texas Law Enforcement Telecommunications
System for the use of the Texas Law Enforcement
Telecommunications System (TLETS).
17-01982e.
Sponsors:McCollum
TLETS Agency-Equipment Agreement- 2017Attachments:
Presentation, possible action, and discussion on approving a
service contract with Global Payments Direct, Inc. for Merchant
Card and Credit Card Payment Processing Services. This service
contract is for an initial three (3) year term with an estimated
annual not-to-exceed amount of $850,000 for banking fees and
service charges.
17-02112f.
Sponsors:Leonard
Regular Agenda
Page 2 College Station, TX Printed on 5/5/2017
May 11, 2017City Council Regular Meeting Agenda - Final
Individuals who wish to address the City Council on an item posted as a public hearing
shall register with the City Secretary prior to the Mayor's announcement to open the
public hearing.· A speaker who wishes to include computer -based information while
addressing the Council must provide the electronic file to the City Secretary by noon of
the Council meeting day when the presentation is planned. The Mayor will recognize
individuals who wish to come forward to speak for or against the item. Upon stepping
to the podium the speaker must state their name and city of residence, including the
state of residence if the city is located out of state. On items related to land use and
those that would directly impact the speaker's residence or neighborhood, the speaker
is encouraged to identify their College Station neighborhood. Each speaker's remarks
are limited to three minutes. A series of timer lights will change from green to yellow
and an alarm will sound after two and one -half minutes to signal thirty seconds
remaining to conclude the remarks. At three minutes the timer light will change to red
and the final alarm will sound. The speaker must then conclude the remarks. After a
public hearing is closed, there shall be no additional public comments. If Council needs
additional information from the general public, some limited comments may be allowed
at the discretion of the Mayor.
Public Hearing, presentation, possible action, and discussion
regarding an ordinance amending the Comprehensive Plan -
Future Land Use & Character Map from Suburban Commercial to
Urban for approximately 4.74 acres located at 404 Harvey Mitchell
Parkway South, generally located at the corner of Harvey Mitchell
Parkway South and Raymond Stotzer Parkway.
17-02171.
Sponsors:Thomas
Aerial and Small Area Map (SAM)
Amendment Map
Ordinance
Attachments:
Public Hearing, presentation, possible action, and discussion
regarding an ordinance amending Chapter 12, "Unified
Development Ordinance," Section 12-4.2, "Official Zoning Map," of
the Code of Ordinances of the City of College Station, Texas by
changing the zoning district boundaries from CI Commercial
Industrial to PDD Planned Development District for approximately
4.74 acres being situated in the City of College Station, Brazos
County, Texas, at 404 Harvey Mitchell Parkway South, generally
located at the corner of Harvey Mitchell Parkway South and
Raymond Stotzer Parkway.
17-02182.
Sponsors:Thomas
Page 3 College Station, TX Printed on 5/5/2017
May 11, 2017City Council Regular Meeting Agenda - Final
Background Information
Aerial and Small Area Map
Rezoning Map
Ordinance.docx
Attachments:
Public Hearing, presentation, possible action, and discussion
regarding an ordinance amending the Comprehensive Plan -
Future Land Use & Character Map from Urban to General
Commercial and Natural Areas Reserved for approximately 3.2
acres located 3500 Harvey Road, generally located east of
Copperfield Pkwy and south of Harvey Road.
17-02193.
Sponsors:Thomas
Aerial and Small Area Map (SAM)
Amendment Map
Ordinance
Attachments:
Public Hearing, presentation, possible action, and discussion
regarding an ordinance amending the Comprehensive Plan
Thoroughfare Plan by changing the classification of the extension
of Pavilion Avenue, generally located southeast of the intersection
of State Highway 6 and Sebesta Road, from a major collector to a
minor collector.
17-02204.
Sponsors:Schubert
Background
Vicinity Map and Aerial
Exhibit B
Ordinance.docx
Attachments:
Public Hearing, presentation, possible action, and discussion
regarding an amendment to Unified Development Ordinance
Section 12-8.3.H.2, Platting and Replatting within Older Residential
Subdivisions.
17-02215.
Sponsors:Hitchcock
Current Language
Version One
Version Two
Ordinance (option 1).docx
Ordinance (option 2).docx
Attachments:
Presentation, possible action, and discussion on an ordinance
authorizing the issuance of up to $70,000,000 in principal amount
of “City of College Station, Texas Certificates of Obligation, Series
17-02226.
Page 4 College Station, TX Printed on 5/5/2017
May 11, 2017City Council Regular Meeting Agenda - Final
2017”; delegating the authority to certain City Officials to execute
certain documents relating to the sale of the certificates; approving
and authorizing instruments and procedures relating to the
certificates; and enacting other provisions relating to the subject.
Sponsors:Leonard
Ordinance (CO) (ver 1)Attachments:
Presentation, possible action, and discussion on an ordinance
authorizing the issuance of up to $36,600,000 in principal amount
of “City of College Station, Texas General Obligation Improvement
and Refunding Bonds, Series 2017”; with no more than
$19,000,000 of such amount to be issued to refund the Refunded
Obligations and pay costs of issuance of the Bonds and no more
than $17,600,000 for new capital projects; delegating the authority
to certain City Officials to execute certain documents relating to the
sale of the Bonds; approving and authorizing instruments and other
procedures relating to said bonds; and enacting other provisions
relating to the subject.
17-02247.
Sponsors:Leonard
Ordinance (GO Imp and Ref) (ver 1)Attachments:
8.Presentation, possible action, and discussion on future agenda items and review of
standing list of Council generated agenda items: A Council Member may inquire about
a subject for which notice has not been given. A statement of specific factual
information or the recitation of existing policy may be given. Any deliberation shall be
limited to a proposal to place the subject on an agenda for a subsequent meeting.
9. Adjourn.
The City Council may adjourn into Executive Session to consider any item listed on this
agenda if a matter is raised that is appropriate for Executive Session discussion. An
announcement will be made of the basis for the Executive Session discussion.
APPROVED
_____________________
City Manager
I certify that the above Notice of Meeting was posted at College Station City Hall, 1101
Texas Avenue, College Station, Texas, on May 5, 2017 at 5:00 p.m.
_____________________
City Secretary
This building is wheelchair accessible. Persons with disabilities who plan to attend this
Page 5 College Station, TX Printed on 5/5/2017
May 11, 2017City Council Regular Meeting Agenda - Final
meeting and who may need accommodations, auxiliary aids, or services such as
interpreters, readers, or large print are asked to contact the City Secretary ’s Office at
(979) 764-3541, TDD at 1-800-735-2989 , or email adaassistance@cstx .gov at least
two business days prior to the meeting so that appropriate arrangements can be made .
If the City does not receive notification at least two business days prior to the meeting,
the City will make a reasonable attempt to provide the necessary accommodations.
Penal Code § 30.07. Trespass by License Holder with an Openly Carried
Handgun.
"Pursuant to Section 30.07, Penal Code (Trespass by License Holder with an
Openly Carried Handgun) A Person Licensed under Subchapter H, Chapter 411,
Government Code (Handgun Licensing Law), may not enter this Property with a
Handgun that is Carried Openly."
Codigo Penal § 30.07. Traspasar Portando Armas de Mano al Aire Libre con
Licencia.
“Conforme a la Seccion 30.07 del codigo penal (traspasar portando armas de
mano al aire libre con licencia), personas con licencia bajo del Sub-Capitulo H,
Capitulo 411, Codigo de Gobierno (Ley de licencias de arma de mano), no deben
entrar a esta propiedad portando arma de mano al aire libre.”
Page 6 College Station, TX Printed on 5/5/2017
City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:117-0223 Name:Minutes
Status:Type:Minutes Consent Agenda
File created:In control:4/28/2017 City Council Regular
On agenda:Final action:5/11/2017
Title:Presentation, possible action, and discussion of minutes for:
·April 27, 2017 Workshop
·April 27, 2017 Regular Meeting
Sponsors:Sherry Mashburn
Indexes:
Code sections:
Attachments:WKSHP042717 DRAFT Minutes
RM042717 DRAFT Minutes
Action ByDate Action ResultVer.
Presentation, possible action, and discussion of minutes for:
•April 27, 2017 Workshop
•April 27, 2017 Regular Meeting
Relationship to Strategic Goals:
·Good Governance
Recommendation(s): Approval
Summary: None
Budget & Financial Summary: None
Attachments:
•April 27, 2017 Workshop
•April 27, 2017 Regular Meeting
College Station, TX Printed on 5/5/2017Page 1 of 1
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WKSHP042717 Minutes Page 1
MINUTES OF THE CITY COUNCIL WORKSHOP
CITY OF COLLEGE STATION
APRIL 27, 2017
STATE OF TEXAS §
§
COUNTY OF BRAZOS §
Present:
Karl Mooney, Mayor
Council:
Blanche Brick
Jerome Rektorik
Linda Harvell
Barry Moore, arrived after roll call
Julie Schultz, arrived after roll call
James Benham, arrived after roll call
City Staff: Student Liaison
Kelly Templin, City Manager Spencer Davis, VP Municipal Affairs
Chuck Gilman, Deputy City Manager
Carla Robinson, City Attorney
Sherry Mashburn, City Secretary
Tanya McNutt, Deputy City Secretary
1. Call to Order and Announce a Quorum is Present
With a quorum present, the Workshop of the College Station City Council was called to order by
Mayor Mooney at 4:30 p.m. on Thursday, April 27, 2017 in the Council Chambers of the City of
College Station City Hall, 1101 Texas Avenue, College Station, Texas 7784 0.
2. Executive Session
In accordance with the Texas Government Code §551.071-Consultation with Attorney, the College
Station City Council convened into Executive Session at 4:35 p.m. on Thursday, April 27, 2017 in
order to continue discussing matters pertaining to:
A. Consultation with Attorney to seek advice regarding pending or contemplated litigation; to wit:
Kathryn A. Stever-Harper as Executrix for the Estate of John Wesley Harper v. City of
College Station and Judy Meeks; No. 15,977-PC in the County Court No. 1, Brazos
County, Texas; and
Charlton F. Clayton v. City of College Station; Case: 4:16-cv-03485 in the US District
Court for the Southern District of Texas Houston Division.
Potential Settlement of City’s Claim Against Meadowbrook Insurance Group
WKSHP042717 Minutes Page 2
McCrory Investments II, LLC d/b/a Southwest Stor Mor v. City of College Station;
Cause No. 17-000914-CV-361; In the 361st District Court, Brazos County, Texas
B. Consultation with attorney to receive legal advice; to wit:
Legal advice concerning acting duty pay under Texas Local Government Code Section
141.033
Legal issues related to parkland dedication fees
The Executive Session recessed at 6:00 p.m.
3. Take action, if any, on Executive Session.
MOTION: Upon a motion made by Councilmember Schultz and a second by Councilmember
Moore, the City Council voted seven (7) for and none (0) opposed, to authorize the City Manager
to settle a dispute involving the City’s claim against Meadowbrook Insurance Group related to
insurance coverage for claims made by the City between 2008 and 2012 for a payment the City
will receive from Meadowbrook in an amount no less than $120,000 and to execute a settlement
and release agreement containing terms as are customarily contained in settlement agreements.
The motion carried unanimously.
4. Presentation, possible action and discussion on items listed on the consent agenda.
Items 2b and 2f were pulled from Consent for clarification.
(2b): Ben Roper, Director of Information Technology, explained the costs and how they are spread
out. The costs are based on an ILA and the number of subscribers. The City is paying
approximately one-third of the costs because of those numbers.
(2f): Troy Rother, Traffic Engineer, stated that this MOU is an umbrella agreement with TTI for
testing emerging technology to assist with mobility.
5. Presentation and discussion on Easterwood Airport.
Joshua Abramson, Airport Manager, updated the Council of the projects at Easterwood Airport.
He was on a panel to study and make recommendations to promote air service in small
communities. Projects include: American Airlines has upgraded their aircraft to include first class
service; re-located the TSA; newly dedicated men/women rest rooms; demolition of the old
Quonset area for the new general aviation facility; and implementation of a new parking payment
system.
6. Presentation, possible action, and discussion on an update to the Bicycle, Pedestrian, and
Greenway Master Plan.
Venessa Garza, Planning and Development, noted that the intent of the Master Plan is to provide
information and guidance to implement the community’s desire to create a bike-able, walkable
and environmentally aware city in which to live. Various accomplishments were highlighted. The
WKSHP042717 Minutes Page 3
process to update the Plan began in October 2016 and included a staff resource team and the
Bicycle, Pedestrian and Greenways Advisory Board. Citizen engagement included a community
meeting and online survey.
7. Presentation, possible action, and discussion regarding an update briefing of the City's
Open Data Portal.
Ben Roper, Director of Information Technology, noted that, upon Council direction, staff has
proceeded with developing an Open Data initiative. Initial funding was included in the FY 2016
budget to engage with a vendor to launch an Open Data Portal. Socrata was selected to assist with
stand up and hosting of the Open Data Portal. However, due to other projects, the implementation
of the Open Data Portal was delayed by several months, with the Portal launching on December
29, 2016. Public engagement will be stepped up through a survey or hackathon. Public safety will
be added at a later date.
8. Council Calendar
Council reviewed the calendar.
9. Discussion, review and possible action regarding the following meetings: Animal Shelter
Board, Annexation Task Force, Arts Council of Brazos Valley, Arts Council Sub-Committee,
Audit Committee, Bicycle, Pedestrian, and Greenways Advisory Board, Bio-Corridor Board
of Adjustments, Blinn College Brazos Valley Advisory Committee, Brazos County Health
Dept., Brazos Valley Council of Governments, Bryan/College Station Chamber of
Commerce, Budget and Finance Committee, BVSWMA, BVWACS, Compensation and
Benefits Committee, Convention & Visitors Bureau, Design Review Board, Economic
Development Committee, FBT/Texas Aggies Go to War, Historic Preservation Committee,
Interfaith Dialogue Association, Intergovernmental Committee, Joint Relief Funding Review
Committee, Landmark Commission, Library Board, Metropolitan Planning Organization,
Parks and Recreation Board, Planning and Zoning Commission, Research Valley
Partnership, Research Valley Technology Council, Regional Transportation Committee for
Council of Governments, Sister Cities Association, Transportation and Mobility Committee,
TAMU Student Senate, Texas Municipal League, Twin City Endowment, YMCA, Youth
Advisory Council, Zoning Board of Adjustments.
Councilmember Brick reported on the Chamber Transportation Committee.
Councilmember Schultz reported on the RVP.
Councilmember Harvell reported on the Arts Council.
WKSHP042717 Minutes Page 4
10. Adjournment
There being no further business, Mayor Mooney adjourned the workshop of the College Station
City Council at 7:13 p.m. on Thursday, April 27, 2017.
________________________
Karl Mooney, Mayor
ATTEST:
_______________________
Sherry Mashburn, City Secretary
RM042717 Minutes Page 1
MINUTES OF THE REGULAR CITY COUNCIL MEETING
CITY OF COLLEGE STATION
APRIL 27, 2017
STATE OF TEXAS §
§
COUNTY OF BRAZOS §
Present:
Karl Mooney, Mayor
Council:
Blanche Brick
Jerome Rektorik
Linda Harvell
Barry Moore
Julie Schultz
James Benham
City Staff: Student Liaison
Kelly Templin, City Manager Spencer Davis, VP Municipal Affairs
Chuck Gilman, Deputy City Manager
Carla Robinson, City Attorney
Sherry Mashburn, City Secretary
Tanya McNutt, Deputy City Secretary
Call to Order and Announce a Quorum is Present
With a quorum present, the Regular Meeting of the College Station City Council was called t o
order by Mayor Mooney at 7:22 p.m. on Thursday, April 27, 2017 in the Council Chambers of the
City of College Station City Hall, 1101 Texas Avenue, College Station, Texas 77840.
1. Pledge of Allegiance, Invocation, consider absence request.
Presentation proclaiming May 2017 as Mental Health Awareness Month.
Mayor Mooney presented the proclamation to Julie Overstreet, Director of Outreach and
Development of the National Alliance on Mental Illness Brazos Valley, proclaiming May 2017 as
Mental Health Awareness Month.
Presentation proclaiming May 7-13, 2017 as Drinking Water Week.
Mayor Mooney presented the proclamation and proclaimed May 7-13, 2017 as Drinking Water
Week. Present to accept the proclamation were Dave Coleman, Direct or of Water/Wastewater
Services; and Jennifer Nations, Water Services Program Coordinator.
RM042717 Minutes Page 2
Presentation proclaiming May 7-13, 2017 as Public Service Recognition Week
Mayor Mooney recognized the accomplishments and contributions of government employees at all
levels -- federal, state, county and city -- and proclaimed May 7-13, 2017 as Public Service
Recognition Week.
Hear Visitors Comments
Ben Roper, College Station, came before Council to honor the service and sacrifice of Sgt. Andrew
J. Creighton.
Pierce Jamieson, College Station, was called, but did not come forward.
Spencer Davis, College Station, stated this was his last meeting as Student Liaison and expressed
his appreciation for the Council and staff and for everything he has learned this past year.
CONSENT AGENDA
2a. Presentation, possible action, and discussion of minutes for:
April 13, 2017 Workshop
April 13, 2017 Regular Meeting
2b. Presentation, possible action, and discussion regarding approval of the Brazos Valley
Wide Area Communications System (BVWACS) Operating Budget for FY 2018 and
authorizing the City’s quarterly payments of approximately $46,708.75 for an annual total
not to exceed of $186,834.97; and approval of the BVWACS Capital Equipment Replacement
Reserve Fund Budget for FY 2018 and payment of the City’s share not to exceed $100,923.69.
2c. Presentation, possible action, and discussion regarding a purchase order for $139,481
with Alfa Laval, Inc. to overhaul the centrifuge at the Carters Creek wastewater treatment
plant.
2d. Presentation, possible action, and discussion regarding contract 17300305 in the amount
of $192,000 to replace the coatings and make as-needed repairs on structural steel
components of four clarifier units at the Carters Creek Wastewater Treatment Plant.
2e. Presentation, possible action, and discussion regarding a formal request made by a
developer for refund of unexpended parkland dedication funds in multiple Park Zones, as
per Sect. 12-8.8.F.2 of the City’s Unified Development Ordinance governing Parkland
Dedication Funds. The funds subject to being refunded total $240,180.
2f. Presentation, possible action and discussion regarding a memorandum of understanding
(MOU) with the Texas A&M Transportation Institute (TTI) to work collaboratively for the
purpose of deploying and pilot testing TTI developed technology on the City’s streets, which
is anticipated to improve safety and mobility.
RM042717 Minutes Page 3
2g. Presentation, possible action, and discussion regarding approval of Change Order No. 2
to contract 16300111 with Jacody, Inc. increasing the construction contract by $101,317.17
for a new contract total of $2,202,981.91.
2h. Presentation, possible action and discussion regarding the purchase of 15 traffic signal
cabinets from Paradigm Traffic Systems Inc. for $136,470 from BuyBoard Contract # 432-
13. This is a continuation of the ITS Traffic Master Plan regarding replacement of the older
TS-1 cabinets. The new TS-2 traffic signal cabinets will provide more flexibility for better
traffic signal control with the new Intelligent Transportation System.
MOTION: Upon a motion made by Councilmember Schultz and a second by Councilmember
Rektorik, the City Council voted seven (7) for and none (0) opposed, to approve the Consent
Agenda. The motion carried unanimously.
REGULAR AGENDA
1. Public Hearing, presentation, possible action, and discussion regarding Ordinance 2017-
3875, amending the Comprehensive Plan-Future Land Use & Character Map from
Suburban Commercial to General Commercial for approximately 11.3 acres located at 3005
Earl Rudder Freeway South, generally located at the southeast intersection of Earl Rudder
Freeway South and Emerald Parkway.
Jennifer Paz, Planning and Development, stated that the applicant is requesting an amendment to
the Future Land Use and Character Map in the Comprehensive Plan to General Commercial for
approximately 11.3 acres located at Emerald Point Subdivision Lot 1 thru 5, near the southeast
intersection of Earl Rudder Freeway South frontage road and Emerald Parkway. The subject and
surrounding properties are primaril y designated Suburban Commercial on the Comprehensive Plan
Future Land Use and Character Map.
The Planning and Zoning Commission considered this item at their April 6 meeting and voted 6-
0 to recommend approval.
Mike Gentry, developer, was available for questions.
At approximately 7:52 p.m., Mayor Mooney opened the Public Hearing.
John Woods, College Station, declined to speak.
Christopher Rodie, Emerald Forest, said he prefers General Commercial over Suburban
Commercial. Suburban Commercial is a bit onerous and expensive to do. The area will benefit
from activating the area at a more intense use. However, he does not want to see a sea of parking
or a big box.
David McWhirter, Emerald Forest, stated his opposition to the change. Planning should be long-
range and comprehensive. This has been piecemeal. This is particularly true of the drainage
issues. These piecemeal changes add up to big problems. This proposed change would allow a
big box store.
RM042717 Minutes Page 4
Cheryl Wink, Emerald Forest, spoke about the flooding of raw sewage in the area. A neighborhood
group spoke with the applicant, but noted that Bee Creek has had no maintenance for fifteen years.
The land keeps being developed, adding to the problem. Bee Creek is a plugged up creek and not
free-flowing. She asked that Council postpone this and work on cleaning out the creek and the
drainage issues.
There being no further comments, the Public Hearing was closed at 8:02 p.m.
MOTION: Upon a motion made by Councilmember Benham and a second by Councilmember
Rektorik, the City Council voted six (6) for and one (1) opposed, with Councilmember Harvell
voting against, to adopt Ordinance 2017-3875, amending the Comprehensive Plan-Future Land
Use & Character Map from Suburban Commercial to General Commercial for approximately 11.3
acres located at 3005 Earl Rudder Freeway South, generally located at the southeast intersection
of Earl Rudder Freeway South and Emerald Parkway. The motion carried.
2. Public Hearing, presentation, possible action, and discussion regarding Ordinance 2017-
3876, amending Chapter 12, "Unified Development Ordinance," Section 12-4.2, "Official
Zoning Map," of the Code of Ordinances of the City of College Station, Texas by changing
the zoning district boundaries from M-1 Light Commercial to GC General Commercial for
approximately 11.3 acres and from M-1 Light Industrial to SC Suburban Commercial for
approximately 5.5 acres being lots 1-5 and lot 6, respectively, situated in the Emerald Point
Subdivision, College Station, Brazos County, Texas, at the southeast intersection of Earl
Rudder Freeway South and Emerald Parkway and Corsair Drive.
Jennifer Paz, stated that the request is to rezone Lots 1-5 from Light Industrial to General
Commercial and Lot 6 from Light Industrial to Suburban Commercial. If the Comprehensive Plan
Amendment is approved, the rezoning will be in compliance with the Comprehensive Plan. If the
amendment is denied, the rezoning will not be in compliance.
The Planning and Zoning Commission considered this item at the April 6 meeting and voted 6-0
to recommend approval.
Mike Gentry, developer, was available for questions.
At approximately 8:31 p.m., Mayor Mooney opened the Public Hearing.
John Woods, College Station, said this was the best proposal they could get. He asked that the
Council approve this rezoning.
Christopher Rodie, Emerald Forest, spoke in support of the rezoning. He said he would like to see
a café or office like at Raintree. He reiterated that he does not want to see a sea of parking or a
big box a the entrance to Emerald Forest.
David McWhirter, Emerald Forest, stated his opposition to the rezoning, especially for Lots 1 and
2. He asked that Suburban Commercial be revisited because it is too restrictive.
RM042717 Minutes Page 5
There being no further comments, the Public Hearing was closed at 8:39 p.m.
MOTION: Upon a motion made by Councilmember Benham and a second by Councilmember
Rekrotik, the City Council voted seven (7) for and none (0) opposed, to adopt Ordinance 2017-
3876, amending Chapter 12, "Unified Development Ordinance," Section 12-4.2, "Official Zoning
Map," of the Code of Ordinances of the City of College Station, Texas by changing the zoning
district boundaries from M-1 Light Commercial to GC General Commercial for approximately
11.3 acres and from M-1 Light Industrial to SC Suburban Commercial for approximately 5.5 acres
being lots 1-5 and lot 6, respectively, situated in the Emerald Point Subdivision, College Station,
Brazos County, Texas, at the southeast intersection of Earl Rudder Freeway South and Emerald
Parkway and Corsair Drive. The motion carried unanimously.
3. Public Hearing, presentation, possible action, and discussion regarding Ordinance 2017-
3877, amending the College Station Comprehensive Plan, specifically amending the Future
Land Use & Character Map from Urban, Village Center, Suburban Commercial and
General Commercial to Urban and General Suburban; and the Bicycle, Pedestrian, and
Greenways Master Plan to amend the location of a future trail; for approximately 232 acres
located at 4000 and 4200 Rock Prairie Road, and more generally located along the south side
of Rock Prairie Road, east of State Highway 6.
Jennifer Prochazka, Economic Development Manager, stated that the proposed amendment will
provide a variety of residential, office, and retail opportunities in an urban environment with park,
lake, and trail amenities, as was intended by the Medical District Master Plan and the current land
use designations on the property. The proposed amendment provides more flexibility on the
location of the types of uses and on the overall mix of uses to better respond to market changes
throughout the life of the project. In addition, the applicant has proposed an alternative route for
the trail system. The proposed trail does not extend to Rock Prairie Road along the creek/tree line,
but within a linear park along BirdPond Road, requiring an amendment to the Bicycle, Pedestrian,
and Greenways Master Plan. The proposed amendments are consistent with the Medical District
Master Plan adopted by the City in 2012 and compliments the existing medical uses to the west
and existing and future trail system to the south.
The Planning & Zoning Commission unanimously recommended approval of the two
Comprehensive Plan amendments at their April 6 regular meeting. The Bicycle, Pedestrian, and
Greenways Advisory Board also recommended approval of the amendment to the Bicycle,
Pedestrian, and Greenways Master Plan (trail locations) and the amendment to the Future Land
Use and Character Map related to the Natural Areas land use designation.
Staff also recommends approval of the Future Land Use and Character Map amendment request
and the Bicycle, Pedestrian Greenways Master Plan amendment.
James Murr, developer, provided a presentation on the College Station Medical District and Town
Center.
At approximately 8:57 p.m., Mayor Mooney opened the Public Hearing.
There being no comments, the Public Hearing was closed at 8:57 p.m.
RM042717 Minutes Page 6
MOTION: Upon a motion made by Councilmember Brick and a second by Councilmember
Rektorik, the City Council voted seven (7) for and none (0) opposed, to adopt Ordinance 2017-
3877, amending the College Station Comprehensive Plan, specifically amending the Future Land
Use & Character Map from Urban, Village Center, Suburban Commercial and General
Commercial to Urban and General Suburban; and the Bicycle, Pedestrian, and Greenways Master
Plan to amend the location of a future trail; for approximately 232 acres located at 4000 and 4200
Rock Prairie Road, and more generally located along the south side of Rock Prairie Road, east of
State Highway 6. The motion carried unanimously.
4. Public Hearing, presentation, possible action, and discussion regarding Ordinance 2017-
3878, amending Chapter 12, “Unified Development Ordinance,” Section 12-4.2, “Official
Zoning Map,” of the Code of Ordinances of the City of College Station, Texas by changing
the zoning district boundaries from R Rural to PDD Planned Development District for a
mixed-use development including commercial, office, multi-family, single-family, parks and
trails on approximately 232 acres of land located generally at 4000 and 4200 Rock Prairie
Road, and more generally located along the south side of Rock Prairie Road, east of State
Highway 6.
Jennifer Prochazka, Economic Development Manager, stated that the PDD is intended to provide
a variety of residential, office, and retail opportunities in an urban environment with park, lake,
and trail amenities. The property abuts hundreds of acres of City-owned properties, including
parkland, greenway and the future Spring Creek Business Center. The proposed internal trail
system will connect to the existing Lick Creek hike and bike trail to the south and Southeast Park
to the east. The proposal is consistent with the Medical District Master Plan adopted by the City
in 2012 and compliments the existing medical uses to the west. Extensions of Lakeway Drive, Bird
Pond Road, Double Mountain Road, as well as other future thoroughfares, will provide
connectivity through the area.
The Planning & Zoning Commission considered the rezoning request at their April 6, 2017 regular
meeting and unanimously recommended approval. The Bicycle, Pedestrian, and Greenways
Committee and the Parks Board also recommend approval. Staff also recommends approval.
James Murr, developer, was available for questions.
At approximately 9:18 p.m., Mayor Mooney opened the Public Hearing.
There being no comments, the Public Hearing was closed at 9:18 p.m.
MOTION: Upon a motion made by Councilmember Moore and a second by Councilmember
Benham, the City Council voted seven (7) for and none (0) opposed, to adopt Ordinance 2017-
3878, amending Chapter 12, “Unified Development Ordinance,” Section 12-4.2, “Official Zoning
Map,” of the Code of Ordinances of the City of College Station, Texas by changing the zoning
district boundaries from R Rural to PDD Planned Development District for a mixed -use
development including commercial, office, multi-family, single-family, parks and trails on
approximately 232 acres of land located generally at 4000 and 4200 Rock Prairie Road, and more
RM042717 Minutes Page 7
generally located along the south side of Rock Prairie Road, east of State Highway 6. The motion
carried unanimously.
5. Public Hearing, presentation, possible action, and discussion regarding Ordinance 2017-
3879, amending the Comprehensive Plan - Future Land Use & Character Map from Natural
Areas Reserved and Commercial to Natural Areas Reserved and Urban for approximately
5.96 acres located at 1451 Associates Avenue, generally located at the northwest corner of
Harvey Road and Associates Avenue.
Madison Thomas, Planning and Development, stated that the applicant has requested the proposed
Comprehensive Plan amendment to Urban and Natural Areas Reserved as a step toward permitting
a multi-family residential housing development at 1451 Associates Ave. This development is
intended to provide housing within walking distance of the nearby commercial developments and
Veteran’s Park.
The Bicycle, Pedestrian and Greenways Board heard this item on April 3 and voted unanimously
to recommend approval. The Planning and Zoning Commission considered this item on April 6
and voted unanimously to recommend approval.
At approximately 9:25 p.m., Mayor Mooney opened the Public Hearing.
There being no comments, the Public Hearing was closed at 9:25 p.m.
MOTION: Upon a motion made by Councilmember Schultz and a second by Councilmember
Rektroik, the City Council voted seven (7) for and none (0) opposed, to adopt Ordinance 2017-
3879, amending the Comprehensive Plan - Future Land Use & Character Map from Natural Areas
Reserved and Commercial to Natural Areas Reserved and Urban for approximately 5.96 acres
located at 1451 Associates Avenue, generally located at the northwest corner of Harvey Road and
Associates Avenue. The motion carried unanimously.
6. Public Hearing, presentation, possible action, and discussion to consider Ordinance 2017-
3880, amending the College Station Comprehensive Plan by adopting a new Water System
Master Plan; repealing ordinance number 2010-3266 adopted on August 12, 2010; and
containing other provisions related thereto.
7. Public Hearing, presentation, possible action, and discussion to consider Ordinance 2017-
3881, amending the College Station Comprehensive Plan by adopting a new Wastewater
System Master Plan; repealing ordinance number 2011-3353 adopted on June 23, 2011 and
containing other provisions related thereto.
Items 6 and 7 were taken together.
Dave Coleman, Director of Water/Wastewater Services, stated that the new master plans reflect
water and sewer lines needed as development occurs to serve growth corridors and existing areas
where water/sewer lines are in need of rehabilitation. The updated master plans also identify major
water/sewer line connections needed within the existing system that will allow the water
RM042717 Minutes Page 8
distribution system and wastewater collection system to operate more efficiently and also abide by
all TCEQ regulations.
Both Staff and the Planning and Zoning Commission recommend approval of the Comprehensive
Plan Amendments as presented.
At approximately 9:33 p.m., Mayor Mooney opened the Public Hearing for item 6..
There being no comments, the Public Hearing was closed at 9:33 p.m.
MOTION: Upon a motion made by Councilmember Benham and a second by Councilmember
Schultz, the City Council voted seven (0) for and none (0) opposed, to adopt Ordinance 2017-
3880, amending the College Station Comprehensive Plan by adopting a new Water System Master
Plan; repealing ordinance number 2010-3266 adopted on August 12, 2010; and containing other
provisions related thereto. The motion carried unanimously.
At approximately 9:34 p.m., Mayor Mooney opened the Public Hearing for item 7.
There being no comments, the Public Hearing was closed at 9:35 p.m.
MOTION: Upon a motion made by Councilmember Brick and a second by Councilmember
Rektorik, the City Council voted seven (7) for and none (0) opposed, to adopt Ordinance 2017-
3881, amending the College Station Comprehensive Plan by adopting a new Wastewater System
Master Plan; repealing ordinance number 2011-3353 adopted on June 23, 2011 and containing
other provisions related thereto. The motion carried unanimously.
8. Presentation, possible action, and discussion regarding the appointment of
Councilmembers to boards and commissions.
MOTION: Upon a motion made by Councilmember Rektorik and a second by Councilmember
Schultz, the City Council voted seven (7) for and none (0) opposed, to appoint Councilmember
Harvell as liaison to the Historic Preservation Committee. The motion carried unanimously.
9. Presentation, possible action, and discussion on future agenda items and rev iew of
standing list of Council generated agenda items: A Council Member may inquire about a
subject for which notice has not been given. A statement of specific factual information or
the recitation of existing policy may be given. Any deliberation shall be limited to a proposal
to place the subject on an agenda for a subsequent meeting.
Councilmember Rektorik asked to discuss future water needs.
Mayor Mooney requested to also discuss water storage.
Councilmember Benham requested that dates be assigned to future agenda items.
RM042717 Minutes Page 9
10. Adjournment.
There being no further business, Mayor Mooney adjourned the Regular Meeting of the City
Council at 9:40 p.m. on Thursday, April 27, 2017.
________________________
Karl Mooney, Mayor
ATTEST:
___________________________
Sherry Mashburn, City Secretary
City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:117-0168 Name:Change Order No. 1 for Greens Prairie Substation
Ring Bus Modification Contract
Status:Type:Change Order Consent Agenda
File created:In control:4/7/2017 City Council Regular
On agenda:Final action:5/11/2017
Title:Presentation, possible action, and discussion regarding Change Order Numbers 1 and 2 to Greens
Prairie Substation Contract Number 17300106 in the total amount of $226,865.20.
Sponsors:Timothy Crabb
Indexes:
Code sections:
Attachments:Copy of 04212017-FINAL_CSGPCO1Form-Revised20140310
Action ByDate Action ResultVer.
Presentation,possible action,and discussion regarding Change Order Numbers 1 and 2 to Greens
Prairie Substation Contract Number 17300106 in the total amount of $226,865.20.
Relationship to Strategic Goals: (Select all that apply)
·
·Financially Sustainable City
·Core Services and Infrastructure
Recommendation(s):
Staff recommends the approval of combined Change Order Numbers 1 and 2 for a combined total of
$226,865.20 to the Greens Prairie Ring Substation Ring Bus Modification and Transformer #2
Relocation Construction Contract,due to the discovery of additional requirements needed to correct
existing conditions at the substation site.
Summary:
Greens Prairie Substation is being modified to place the two (2)existing COCS distribution
transformers within the 138 kV ring bus to improve reliability to citizens served from the substation.
During construction it was discovered that a sizable portion of the ground grid for the substation was
not installed during the original construction in 1990,including the outer ground loop located 3 feet
outside the fence.It was also found that much of the relay control cabling insulation was brittle and
either cracked or cracking in multiple locations,to the point of making it unreliable in the future for
both transmission and distribution protection systems.Finally,upgrades were needed to the 138 kV
Switchyard panels for ERCOT Settlement Meters to accommodate the upgrade of data collection
from leased telephone land line to the cyber based IP system.The changes to the original scope for
this project amount to $226,865.20, which is a 7.60% increase in cost from the original bid.
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Budget & Financial Summary:
The original contract cost for Greens Prairie Substation was $2,986,103.45. The new combined
Change Order #1 and #2 amount of $226,865.20 reflects a 7.60% increase in cost, for a revised
project cost of $3,212,968.65. Funds for this project and change order are available from the Electric
Capital Improvement Projects (CIP) Fund budget.
Attachments:
1. Change Order Numbers 1 and 2 Contract Number 17300106
College Station, TX Printed on 5/5/2017Page 2 of 2
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CHANGE ORDER NO.1 DATE: 4.21.2017 Contract No. 17300106
P.O.# 17200671-00 PROJECT: Greens Prairie Substation Ring Bus Modification and Transformer #2 Relocation
OWNER:CONTRACTOR:
City of College Station Saber Power Services
P.O. Box 9960 9841 Saber Power Lane Ph:
College Station, Texas 77842 Rosharon, TX 77583 Fax:
PURPOSE OF THIS CHANGE ORDER:
Installation of ground grid for the substation that was not installed during original construction.
Replacement of faulty relay control cabling.Upgrades to the 138 kV Switchyard panels for ERCOT Settlement Meters.
Change in scope due to water/sewer connection no longer required for backup control center
ITEM UNIT ORIGINAL REVISED ADDED
NO UNIT DESCRIPTION PRICE QUANTITY QUANTITY COST
1 Transmission Portion Decrease $1,493,051.72 $1,492,452.33 ($599.39)
2 Transmission Portion Increase $1,493,051.72 $1,582,413.47 $89,361.75
3 Distribution Portion Increase $1,493,051.73 $1,631,154.57 $138,102.84
TOTAL $226,865.20
LINE 1 (EL1875730-ETSS-CONSTRUCT 9101072-6540)-$599.39
LINE 1 (EL1875730-ETSS-CONSTRUCT 9101072-6540)$89,361.75
LINE 3 (EL1875729-EDSS-CONSTRUCT 9101072-6541)$138,102.84
TOTAL CHANGE ORDER $226,865.20
ORIGINAL CONTRACT AMOUNT $2,986,103.45
CHANGE ORDER NO. 1 $226,865.20 7.60%CHANGE
CHANGE ORDER NO. 2 0.00%CHANGE
REVISED CONTRACT AMOUNT $3,212,968.65 7.60%TOTAL CHANGE
ORIGINAL CONTRACT TIME 224 Days
Time Extension No. 1 0 Days
Revised Contract Time 224 Days
SUBSTANTIAL COMPLETION DATE 30-Jun-17
REVISED SUBSTANTIAL COMPLETION DATE not applicable
APPROVED
______________________________________________________________________________________
A/E CONTRACTOR Date DEPARTMENT DIRECTOR Date
_____________________________________________________________________________________
CONSTRUCTION CONTRACTOR Date ASST CITY MGR - CFO Date
_____________________________________________________________________________________
PROJECT MANAGER Date CITY ATTORNEY Date
_____________________________________________________________________________________
CITY ENGINEER Date CITY MANAGER Date
THE NET AFFECT OF THIS CHANGE ORDER IS 7.60 % INCREASE
City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:117-0184 Name:Resolution for Name Change of Broker/Dealer
Status:Type:Presentation Consent Agenda
File created:In control:4/13/2017 City Council Regular
On agenda:Final action:5/11/2017
Title:Presentation, possible action, and discussion on approval of a resolution stating that the City Council
has reviewed and approved the City's Amended Investment Policy Broker-Dealer List.
Sponsors:Mary Ellen Leonard
Indexes:
Code sections:
Attachments:Resolution - Amendment of Broker.Dealer list FY17
Action ByDate Action ResultVer.
Presentation,possible action,and discussion on approval of a resolution stating that the City Council has
reviewed and approved the City's Amended Investment Policy Broker-Dealer List.
Recommendation(s):Staff recommends review and approval of the resolution.
Summary:The Public Funds Investment Act requires an annual review and approval of the City's
investment policy and investment strategies.The fiscal year 2017 Investment Policy and Investment
Strategies was reviewed by Council and adopted on October 27,2016.As part of that review and
approval process,an annual review of the City’s authorized Broker-Dealers was performed.As part of the
City’s Investment Policy,Council reviewed,approved and adopted the following list of Broker-Dealers for
the City to do business with:
o Coastal Securities, Inc.
o First Southwest Securities
o American Momentum (CD’s only)
Under the Public Funds Investment Act,any modifications to the list are required to be reviewed,
approved and adopted by Council in writing.
On April 1,2017,an approved Broker-Dealer,Coastal Securities,Inc.was acquired by FTN Financial.
Coastal Securities,Inc.is now operating under the FTN Financial name.The approved broker-dealer
listing is being amended to change Coastal Securities, Inc. to FTN Financial.
Staff proposes that Council review,approve and adopt the following amended list of Broker-Dealers for
the City to do business with:
o FTN Financial
o First Southwest Securities
o American Momentum (CD’s only)
Budget & Financial Summary:None
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File #:17-0184,Version:1
Reviewed and Approved by Legal:Yes
Attachments:
1.Resolution
2.Qualified Broker-dealer List
College Station, TX Printed on 5/5/2017Page 2 of 2
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RESOLUTION NO. ____________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS,
AMENDING RESOLUTION NO. 10-27-16-2e APPROVING AND RATIFYING THE CITY’S
BROKER/DEALER LIST WITHIN ITS INVESTMENT STRATEGY AND POLICY FOR
FISCAL YEAR 2017 AND AUTHORIZING ITS IMPLEMENTATION.
WHEREAS, on or about October 27, 2016 the City of College Station City Council adopted
Resolution No. 10-27-16-2e adopting the City’s Investment Strategy and Policy, and approved
Broker/Dealer list; and
WHEREAS, one of the approved brokers/dealers, Coastal Securities, Inc., was acquired and now
operates as FTN Financial as of April 2, 2017; now therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION,
TEXAS:
PART 1: That the City Council hereby approves, ratifies and adopts the Investment Strategy
and Policy’s amended Brokers/Dealers list changing the name of Coastal Securities,
Inc. to FTN Financial for Fiscal Year 2017, attached to this as Exhibit A.
PART 2: That this resolution shall take effect immediately from and after its passage.
ADOPTED this _______ day of ________________________, A.D. 2017.
ATTEST: APPROVED:
______________________________ _________________________________
Sherry Mashburn, City Secretary Karl Mooney, Mayor
APPROVED:
_______________________________
City Attorney
Resolution No. _____ Page 2 of 2
Exhibit “A”
Qualified Brokers/Dealers
Adopted by Council: 10/27/2016
Amended: 04/27/2017
QUALIFED BROKER/DEALERS
FTN Financial
Zach Brewer
920 Memorial City Way, 11th Floor
Houston, TX 77024
Phone: (713) 435-4351
First Southwest Securities
Linda Calloway
300 West 6th Street, Suite 1940
Austin, TX 78701
Phone: (512) 481-2040
American Momentum Bank (CD’s only)
Frank Varisco
Five Momentum Blvd.
College Station, TX 77845
Phone: (979) 599-9349
City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:117-0197 Name:WSUD Wheeling Agreement Renewal
Status:Type:Agreement Consent Agenda
File created:In control:4/20/2017 City Council Regular
On agenda:Final action:5/11/2017
Title:Presentation, possible action, and discussion to consider renewing an agreement with the Wellborn
Special Utility District to transfer their water through the College Station water system.
Sponsors:David Coleman
Indexes:
Code sections:
Attachments:Wheeling Renewal Agreement
Action ByDate Action ResultVer.
Presentation, possible action, and discussion to consider renewing an agreement with the Wellborn
Special Utility District to transfer their water through the College Station water system.
Relationship to Strategic Goals:Financially sustainable city providing response to core services and
infrastructure.
Recommendation:Staff recommends approval of the renewal agreement.
Summary:Wellborn Special Utility District has requested renewal of a water wheeling agreement
that was approved by City Council on June 28, 2012. Under this agreement, WSUD pumps water
from their well in northern Brazos County into the College Station water transmission line near the
Sandy Point pump station, and then recaptures this water at our system interconnects in south
College Station. WSUD needs this water moved to southern Brazos County, since they do not have
sufficient transmission capacity. Wellborn SUD is in the process of building a pipeline for this
purpose, but they need an interim solution.
This proposed agreement would be for three more years, and within that time frame, the City will
have plenty of spare capacity in our water system to accommodate this extra flow. Wellborn has
agreed to pay 69% of our current Commercial Water Rate for the water that’s transferred, so we will
recoup all of our operational costs, plus a portion of our capital costs. This rate was determined in
conjunction with Budget Office personnel, and was calculated so that the City’s costs to move the
water are covered, plus a proportional share of the debt service of the infrastructure being used in the
wheeling process.
Wellborn SUD serves many College Station residents, in neighborhoods such as Williams Creek,
Sweetwater Forest, Creek Meadows, Wellborn Oaks, Great Oaks, and many others. This agreement
will benefit our citizens, and will also provide College Station with another back-up emergency water
supply source.
th
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The Wellborn SUD Board approved this agreement renewal on April 18th, 2017. City staff
recommends approval.
Budget & Financial Summary: No budget impacts, minor revenue source.
Attachment:Renewal document
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City Hall
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College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:117-0198 Name:TLETS Agency-Equipment Agreement
Status:Type:Agreement Consent Agenda
File created:In control:4/21/2017 City Council Regular
On agenda:Final action:5/11/2017
Title:Presentation, possible action, and discussion regarding an inter local agreement with the Texas
Department of Public Safety, State Administrator of the Texas Law Enforcement Telecommunications
System for the use of the Texas Law Enforcement Telecommunications System (TLETS).
Sponsors:Scott McCollum
Indexes:
Code sections:
Attachments:TLETS Agency-Equipment Agreement- 2017
Action ByDate Action ResultVer.
Presentation, possible action, and discussion regarding an inter local agreement with the Texas
Department of Public Safety, State Administrator of the Texas Law Enforcement Telecommunications
System for the use of the Texas Law Enforcement Telecommunications System (TLETS).
Relationship to Strategic Goals:
·Good Governance
·Core Services and Infrastructure
·Sustainable City
Recommendation(s): Acceptance of aggrement
Summary: This agreement is made pursuant to Chapter 791 of the Texas Government Code and /or
Chapter 771 of the Texas Government Code and sets forth duties and responsibilities for both the
Texas Department of Public Safety and the College Station Police Department as it relates to the use
of the Texas Law Enforcement Telecommunications System.
The Texas Law Enforcement Telecommunications System (TLETS), consists of a distributed
software application and secure network services. TLETS is provided to over 100,000 Criminal
Justice employees, through over 8,800 directly defined workstations and 40,000 devices defined to
city and county systems that interface with TLETS. DPS strives to make TLETS available 24x7x365.
The core component of TLETS is a store and forward message brokering system that ensures safe,
secure delivery of content being transmitted throughout the system.
TLETS provides intrastate interconnectivity for criminal justice agencies to a variety of local, state,
and federal data base systems. Additionally, TLETS’ link with NLETS, the International Justice and
Public Safety Network, facilitates exchange between criminal justice agencies across the state of
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File #:17-0198,Version:1
Texas to their counterparts in other states. The link with NLETS allows DPS to provide critical
information to the national criminal justice community and allows TLETS operators to obtain
information from a variety of data base services from other states, Federal agencies, Canada,
Interpol, and private companies.
TXDPS requires that every agency using TLETS must execute a Memorandum of Understanding
(MOU) plus appoint one individual to administer all of the agency’s TDEx users.
Budget & Financial Summary: N/A
Attachments:
1. Texas Law Enforcement Telecommunications System Agreement
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City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:117-0211 Name:Merchant Card /Credit Card Payment Processing
services
Status:Type:Presentation Consent Agenda
File created:In control:4/26/2017 City Council Regular
On agenda:Final action:5/11/2017
Title:Presentation, possible action, and discussion on approving a service contract with Global Payments
Direct, Inc. for Merchant Card and Credit Card Payment Processing Services. This service contract is
for an initial three (3) year term with an estimated annual not-to-exceed amount of $850,000 for
banking fees and service charges.
Sponsors:Mary Ellen Leonard
Indexes:
Code sections:
Attachments:
Action ByDate Action ResultVer.
Presentation,possible action,and discussion on approving a service contract with Global Payments Direct,Inc.for
Merchant Card and Credit Card Payment Processing Services.This service contract is for an initial three (3)year
term with an estimated annual not-to-exceed amount of $850,000 for banking fees and service charges.
Relationship to Strategic Goals:
1.Core Services and Infrastructure
Recommendation(s):Staff recommends approval of the service contract for an initial term of three (3)years with
two (2) additional one (1) year renewal options.
Summary:Summary:A competitive sealed proposal process was conducted and six (6)responses were received,
evaluated and ranked.Upon completion of the evaluation process,Global Payments Direct,Inc.was determined to
be the highest-ranking firm based on specified weighted selection criteria.
Responding to the citizen’s demand for the ability to pay for fees and services with debit/credit cards,Utility
Customer Service began accepting debit/credit cards for utility payments in May 2002.Since that time,Council has
approved Municipal Court,Police,Parks,Accounting,Planning &Development,Northgate Garage and Northgate street
meters to accept debit/credit card payments.These changes have been a convenience to the citizens and a
necessary move due to the standard use of debit/credit cards in society.We accept Visa,Mastercard and Discover.
The City receives a special (lower)interchange rate for municipal utilities.The fees associated with utility collections
are built into the utility rates currently charged.February 2011,we began charging a convenience fee at Court for
fines and fees paid using a debit/credit card because many fees collected are passed through to other agencies.The
remainder of the City departments absorb the banking and service fees related to accepting debit/credit cards.
Our current contract with PayPros LLC (formerly Payment Processing,Inc.)was for an initial three (3)year term not
to exceed $750,000 annually.This contract ended December 15,2016.In December 2016,Council approved month-
to-month renewal(s)until Staff could develop,issue,and negotiate a new contract for credit card processing services.
New negotiated service rates will save the city an estimated $12,000 annually.
Budget &Financial Summary:Banking and services fees for accepting credit cards are charged to each
department that accepts Visa,Mastercard and Discover.Following is the gross receipts by credit card and
corresponding fees by department for FY 16 and estimated FY 17 fees.
FY16 Gross Receipts FY16 Fees Estimated FY17
Fees
Utility Customer Service $ 48,878,803 $ 541,013 $ 585,115
Northgate Garage/Meters 846,928 63,119 69,431
Planning and Development 2,364,308 59,081 64,989
Court 3,464,871 34,941 38,435
Parks 1,114,299 19,229 21,151
Jail 120,939 1,322 1,454
Fiscal Services 51,385 1,271 1,399
$ 56,841,534 $ 719,977 $ 781,974
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File #:17-0211,Version:1
FY16 Gross Receipts FY16 Fees Estimated FY17
Fees
Utility Customer Service $ 48,878,803 $ 541,013 $ 585,115
Northgate Garage/Meters 846,928 63,119 69,431
Planning and Development 2,364,308 59,081 64,989
Court 3,464,871 34,941 38,435
Parks 1,114,299 19,229 21,151
Jail 120,939 1,322 1,454
Fiscal Services 51,385 1,271 1,399
$ 56,841,534 $ 719,977 $ 781,974
Reviewed and Approved by Legal:Yes
Attachments:Service Contract #17300033 is available for review in the City Secretary’s office.
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City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:117-0217 Name:Comprehensive Plan Amendment – Harvey Mitchell
Parkway Campus Housing
Status:Type:Comprehensive Plan Agenda Ready
File created:In control:4/27/2017 City Council Regular
On agenda:Final action:5/11/2017
Title:Public Hearing, presentation, possible action, and discussion regarding an ordinance amending the
Comprehensive Plan - Future Land Use & Character Map from Suburban Commercial to Urban for
approximately 4.74 acres located at 404 Harvey Mitchell Parkway South, generally located at the
corner of Harvey Mitchell Parkway South and Raymond Stotzer Parkway.
Sponsors:Madison Thomas
Indexes:
Code sections:
Attachments:Aerial and Small Area Map (SAM)
Amendment Map
Ordinance
Action ByDate Action ResultVer.
Public Hearing, presentation, possible action, and discussion regarding an ordinance amending the
Comprehensive Plan - Future Land Use & Character Map from Suburban Commercial to Urban for
approximately 4.74 acres located at 404 Harvey Mitchell Parkway South, generally located at the
corner of Harvey Mitchell Parkway South and Raymond Stotzer Parkway.
Relationship to Strategic Goals:
·Good Governance
·Financially Sustainable City
·Core Services and Infrastructure
·Diverse Growing Economy
Recommendation(s): The Planning and Zoning Commission considered this item on April 20, 2017
and voted unanimously to recommend approval.
Summary: The applicant has requested the proposed Comprehensive Plan Future Land Use and
Character Map amendment to Urban as a step toward permitting a multi-family residential housing
development with retail space at 404 Harvey Mitchell Parkway South. This development is
intended to serve as housing for students at the nearby Texas A&M University. The retail will serve
the students in the multi-housing portion and the employees at the adjacent business. The subject
property is designated as Suburban Commercial with the properties to the west primarily
designated as Texas A&M University, Business Park and Institutional/Public (cemetery) and to the
north, General Commercial on the Comprehensive Plan Future Land Use and Character Map.
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File #:17-0217,Version:1
REVIEW CRITERIA
1.Changed or changing conditions in the subject area or the City:The City of College
Station’s Comprehensive Plan was adopted in 2009. This site was designated as Suburban
Commercial and a part of the Presidential Corridor Gateway District on the Comprehensive
Future Land Use and Character Map and Concept Plan. The Presidential Corridor Gateway
District is an area that has been identified for opportunities for future growth and development
with its close proximity to the Health Science Center, the Traditions development and
Easterwood Airport. The focus of this district is on accommodating business (research and
development, office and light industrial) that builds upon the assets in the area and protects and
enhances this primary gateway into the City. The Suburban Commercial designation allows for
concentrations of commercial activity to serve the nearby residents. Suburban Commercial
areas tend to be small in size and located adjacent to major roads (arterials and collectors).
A recent Comprehensive Plan Amendment adjacent to Turkey Creek Road and Raymond
Stotzer Parkway was approved for General Commercial and Multifamily. This Multifamily area,
though nearby, is seen as different from the subject property for several reasons including its
relationship to the “town center” part of the Research Valley Partnership’s BioCorridor Master
Plan, its location on a collector, and its natural greenway perimeter separating it from
commercial. That Comprehensive Plan Amendment now provides for commercial on the part of
the property adjacent to Raymond Stotzer Parkway and multi-family residential further back on
the property.
2.Scope of the request:Currently, the Comprehensive Plan Future Land Use and
Character Map designates the area west of Harvey Mitchell Parkway S., approximately 22
acres, as Suburban Commercial. Continuing west, approximately 34 acres is designated Texas
A&M University (property owned by the Texas A&M University System), and 58 acres of
Public/Institutional (the City’s cemetery). Across Harvey Mitchell Parkway S. to the east of this
property, and across Raymond Stotzer Parkway to the south and southeast is all Texas A&M
University property. The proposal is to convert approximately 5 acres from Suburban
Commercial to Urban at the northwestern intersection of Harvey Mitchell Parkway S. and
Raymond Stotzer Parkway. The Urban designation calls for areas to have a very intense level
of development activity that tend to consist of townhomes, duplexes and high-density
apartments. The applicant anticipates proposing a future rezoning for a high-density apartment
complex with additional retail/commercial space on the first level on the site
3.Availability of adequate information:The property has frontage on Raymond Stotzer
Parkway (at a grade separated Freeway/Expressway on the Thoroughfare Plan) and Turkey
Creek Road (designated a two-lane major collector). The change in land use designation is not
expected to generate significantly more trips than the current land use designation. Properties
in this area are served water through the City of College Station. Further infrastructure
improvements may be necessary and will be determined through future development
proposals.
4.Consistency with the goals and strategies set forth in the Plan:The proposal is not
consistent with the goals and strategies of the Comprehensive Plan. The subject property and
surrounding area are identified in the Comprehensive Plan Concept Map as one of the City’s
distinct districts-the Presidential Corridor Gateway District-which seeks to preserve and build
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upon the existing assets in the area enhancing this important gateway into the city. The
Comprehensive Plan speaks to the purpose of this area in accommodating businesses (research
and development, office, light industrial) that builds upon the assets in the area and protects and
enhances this primary gateway into the City. An Urban designation supports residential uses and
only minimal commercial uses if located in a growth or redevelopment area, which this is not
designated as.
5.Consideration of the Future Land Use & Character and/or Thoroughfare Plans:The
existing Future Land Use and Character designation on the property is Suburban Commercial:
This land use designation is generally for concentrations of commercial activities that cater
primarily to nearby residents versus the larger community or region. Generally, these areas
tend to be small in size and located adjacent to major roads (arterials and collectors). Design
of these structures is compatible in size, roof type and pitch, architecture, and lot coverage
with surrounding single-family residential use.
.
It is also designated as the Presidential Corridor Gateway District:
The Presidential Corridor Gateway District is an area that has been identified for
opportunities for future growth and development with its close proximity to the Health Science
Center, the Traditions development and Easterwood Airport. The focus of this district is on
accommodating business (research and development, office and light industrial) that builds
upon the assets in the area and protects and enhances this primary gateway into the City.
Urban is described as:
Generally for areas that should have a very intense level of development activities. These
areas will tend to consist of townhomes, duplexes, and high-density apartments. General
commercial and office uses, business parks, and vertical mixed-use may also be permitted
within growth and redevelopment areas.
The Urban land use designation, when not in a Growth Area, is typically characterized by more
dense residential developments in the form of duplexes, townhomes or apartments.
The property is located on the northwest corner of the grade separated interchange of Raymond
Stotzer Parkway and Harvey Mitchell Parkway South, designated as a Six-Lane Major Arterial
and Freeway, respectively on the City’s Thoroughfare Plan. Construction has begun to convert
this interchange to a diverging diamond interchange. The property’s frontage is largely adjacent
to a ramp off Harvey Mitchell Parkway, which significantly limits the site’s accessibility. The
interchange project will further limit the property’s accessibility by removing the existing frontage
road that runs along the cemetery towards the property. The only access point to this property
will be through an existing driveway and access easement on the adjacent site, developed as an
office park.
6.Compatibility with the surrounding area:The adjacent land uses are commercial
businesses, the City’s cemetery, and rights-of-way. Also in the area there are unimproved rural
tracts varying in size. The Suburban Commercial designation is similar to the existing
commercial designations along Harvey Mitchell Parkway. These existing developments are
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slightly denser than rest of the surrounding properties, but should be as they are located
adjacent to a major highway, which is ideal for commercial uses. An Urban designation would
allow for completely different uses, and would create a different character than these existing
properties currently provide. An Urban designation would allow high-density residential uses to
be surrounded by existing commercial uses and freeways.
This land is located adjacent to the intersection of Raymond Stotzer Parkway and Harvey
Mitchell Parkway South, beside the city cemetery and across from Easterwood Airport. Being
bordered on two sides by TxDOT roads, this site has accessibility restrictions and must take
access through the existing commercial property to the north. The cemetery to the west
prohibits any type of future development or potential connectivity. The proposed amendment,
is not consistent with the planned future development pattern in the area, and is not
compatible as supporting land uses for the area.
7.Impacts on infrastructure including water, wastewater, drainage, and the
transportation network:
Water service to the subject tract may be provided by an existing 10-inch line along the front of
the property. Domestic and fire flow demand may necessitate future water main extensions
with site development. These utilities will be required to be designed and constructed in
accordance with the BCS Unified Design Guidelines.
The site also has existing 6-inch sanitary sewer mains along the northern and western property
lines and a lift station located near the northwestern corner. Wastewater for select properties,
including this tract, are subject to an Interlocal Agreement (ILA) with Texas A&M University in
which they have agreed to accept an enumerated sewer demand into their system. Based on
preliminary demands provided, the ILA and lift station capacity appear to be adequate. The
sewer demands will need to be evaluated again with the rezoning and site plan to confirm that
the capacity allocated by this development will not be exceeded.
Stormwater from the site generally discharges to the northeast within the White Creek drainage
basin. There is no FEMA regulated floodplain on site. The property has an existing detention
pond at the southern corner, which will need to be evaluated with site development to confirm
that the pond has adequate capacity to serve the entire site. Any necessary drainage
improvements will need to be designed and constructed in accordance with the BCS Unified
Stormwater Design Guidelines.
The site will have access to Harvey Mitchell Parkway through an existing driveway and cross
access easement on the adjacent site. No additional access points can be permitted due to
the property’s proximity to the existing ramp on Harvey Mitchell Parkway.
8.Impact on the City’s ability to provide, fund, and maintain services:The proposed
amendment will allow for increased density. At this time there are concerns regarding the
availability of adequate access. Other City services are not anticipated to be negatively
affected by this amendment.
9.Impact on environmentally sensitive and natural areas:This area is not recognized
as environmentally sensitive.
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10.Contribution to the overall direction and character of the community as captured
in the Plan’s vision and goals:The goal for College Station’s Future Land Use and Character
is to create a community with strong, unique neighborhoods, protected rural areas, special
districts, distinct corridors, and a protected and enhanced natural environment. The proposed
amendment from Suburban Commercial to Urban on about five acres does not contribute to the
general goals of the Comprehensive Plan. The amendment is proposing a density and type of
service that is not compatible with the planned growth of the Presidential Corridor Gateway
District.
Budget & Financial Summary: N/A
Legal Review: Yes
Attachments:
1.Aerial and Small Area Map
2.Comprehensive Plan Map
3.Ordinance
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\
ORDINANCE NO. _____
AN ORDINANCE OF THE CITY OF COLLEGE STATION, TEXAS, AMENDING THE
COLLEGE STATION COMPREHENSIVE PLAN BY AMENDING THE COMPREHENSIVE
PLAN - FUTURE LAND USE & CHARACTER MAP FROM SUBURBAN COMMERCIAL
TO URBAN FOR APPROXIMATELY 4.74 ACRES LOCATED AT 404 HARVEY MITCHELL
PARKWAY SOUTH, GENERALLY LOCATED AT THE CORNER OF HARVEY MITCHELL
PARKWAY SOUTH AND RAYMOND STOTZER PARKWAY, PROVIDING A
SEVERABILITY CLAUSE; PROVIDING AN EFFECTIVE DATE; AND CONTAINING
OTHER PROVISIONS RELATED THERETO.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION,
TEXAS:
PART 1: That the “Comprehensive Plan of the City of College Station” is hereby amended
by adding a new Subsection C.2.aa of Exhibit “A” thereto as set out in Exhibit “A”
attached hereto and made a part hereof; and by amending the “Comprehensive Plan
Future Land Use and Character Map,” as set out in Exhibit “B” attached hereto for
the identified area and made a part hereof for all purposes.
PART 2: That if any provisions of any section of this ordinance shall be held to be void or
unconstitutional, such holding shall in no way affect the validity of the remaining
provisions or sections of this ordinance, which shall remain in full force and effect.
PART 5: That this ordinance shall take effect immediately from and after its passage.
PASSED, ADOPTED and APPROVED this 27th day of April, 2017.
ATTEST: APPROVED:
_____________________________ ____________________________________
City Secretary Mayor
APPROVED:
___________________________
City Attorney
ORDINANCE NO.__________________ Page 2
EXHIBIT “A”
That ordinance no. 3186 adopting the “Comprehensive Plan of the City of College Station” as amended,
is hereby amended by adding a new subsection C.2.aa to Exhibit “A” of said plan for Exhibit “A” to read
in its entirety as follows:
“EXHIBIT ‘A’
A. Comprehensive Plan
The College Station Comprehensive Plan (Ordinance 3186) is hereby adopted and consists of the
following:
1. Existing Conditions;
2. Introduction;
3. Community Character;
4. Neighborhood Integrity;
5. Economic Development;
6. Parks, Greenways & the Arts;
7. Transportation;
8. Municipal Services & Community Facilities;
9. Growth Management and Capacity; and
10. Implementation and Administration.
B. Master Plans
The following Master Plans are hereby adopted and made a part of the College Station
Comprehensive Plan:
1. The Northgate Redevelopment Plan dated November 1996;
2. The Revised Wolf Pen Creek Master Plan dated 1998;
3. Northgate Redevelopment Implementation Plan dated July 2003;
4. East College Station Transportation Study dated May 2005;
5. Parks, Recreation and Open Space Master Plan dated May 2005;
6. Park Land Dedication Neighborhood Park Zones Map dated January 2009;
7. Park Land Dedication Community Park Zones map dated April 2009;
8. Bicycle, Pedestrian, and Greenways Master Plan dated January 2010;
9. Central College Station Neighborhood Plan dated June 2010;
10. Eastgate Neighborhood Plan dated June 2011;
11. Recreation, Park and Open Space Master Plan dated July 2011;
12. Southside Area Neighborhood Plan dated August 2012;
13. Medical District Master Plan dated October 2012;
14. Wellborn Community Plan dated April 2013;
15. Economic Development Master Plan dated September 2013;
ORDINANCE NO.__________________ Page 3
16. South Knoll Area Neighborhood Plan dated September 2013;
17. The Water System Master Plan dated April 2017; and
18. The Wastewater System Master Plan dated April 2017.
C. Miscellaneous Amendments
The following miscellaneous amendments to the College Station Comprehensive Plan are as
follows:
1. Text Amendments:
a. Chapter 2 “Community Character,” “Growth Areas” by amending the text regarding
Growth Area IV and Growth Area V – Ordinance 3376, dated October 2011.
b. Chapter 6 “Transportation” by amending the text regarding Complete Streets, Context
Sensitive Solutions, Minimum Length and Additional Right-of-Way for Turn Lanes at
Intersections, and Right-of-Way for Utilities – Ordinance 3729, dated December 10,
2015.
c. Chapter 2 “Community Character,” Chapter 3 “Neighborhood Integrity,” Chapter 4
“Economic Development,” Chapter 5 “Parks, Greenways, and the Arts,” and Chapter
7 “Municipal Services and Community Facilities” by amending the text based on the
recommendation of the Comprehensive Plan Five-Year Evaluation & Appraisal Report
– Ordinance 3730 dated December 10, 2015.
d. Chapter 8 “Growth Management & Capacity” by amending the text based on
recommendations from the Annexation Task Force – Ordinance 3766, dated April 28,
2016.
2. Future Land Use and Character Map Amendment:
a. 301 Southwest Parkway – Ordinance 3255, dated July 2010.
b. Richards Subdivision – Ordinance 3376, dated October 2011.
c. Earl Rudder Freeway at University Oaks – Ordinance 3465, dated November 19, 2012
d. 1600 University Drive East – Ordinance 3535, dated November 14, 2013.
e. 2560 Earl Rudder Freeway S. – Ordinance 3541, dated December 12, 2013.
f. 13913 FM 2154. – Ordinance 3546, dated January 9, 2014.
g. 2021 Harvey Mitchell Parkway – Ordinance 3549, dated January 23, 2014.
h. 1201 Norton Lane – Ordinance 3555, dated February 27, 2014.
i. 3715 Rock Prairie Road West – Ordinance 3596, dated August 25, 2014.
j. 4201 Rock Prairie Road – Ordinance 3670, dated July 9, 2015.
k. The approximately 40 acres of land generally located east of FM 2154 (aka Wellborn
Road), south of the Southern Trace Subdivision, west of State Highway 40 (aka
William D. Fitch Parkway), and north of Westminster Subdivision – Ordinance 3731,
dated December 10, 2015.
l. The approximately 120 acres of land generally located south of Barron Cut-Off Road,
west of WS Phillips Parkway, north of the Castlegate II Subdivision, and east of the
Wellborn Community – Ordinance 3732, dated December 10, 2015.
m. The approximately 900 acres of land generally located south of Greens Prairie Road
West, east of the Sweetwater Subdivision, and north of Arrington Road – Ordinance
3733, dated December 10, 2015.
ORDINANCE NO.__________________ Page 4
n. The approximately 17.788 acres of land generally located at the corner of Turkey
Creek Road and Raymond Stotzer Parkway frontage road.– Ordinance 3752, dated
March 10, 2016.
o. The approximately 9 acres of land generally located north of the Crossroad Woods
Subdivision near the intersection of Wellborn Road (FM 2154) and Greens Prairie Trail
– Ordinance 3779, dated June 9, 2016
p. The approximately 16 acres located at 8607 Rock Prairie Road, generally located at
the north of Rock Prairie Road and west of William D. Fitch Parkway – Ordinance
3794, dated August 11, 2016.
q. The approximately 14.25 acres of land located at 2501 Earl Rudder Freeway South,
generally located north of North Forest Parkway and south of Raintree Drive, along
the east side of Earl Rudder Freeway South – Ordinance 3799, dated August 25, 2016.
r. The approximately 7 acres of land located along the south side of State Highway 30,
south of Veterans Memorial Park – Ordinance 3828, dated October 27, 2016.
s. The approximately 58 acres of land generally located along the east side of State
Highway 6 South, north of W.D. Fitch parkway and south of the future Pebble Creek
Parkway extension –Ordinance 3830, dated October 27, 2016.
t. The approximately 2 acres of land generally located on Corsair Circle north of Pavilion
Avenue – Ordinance 3846, dated December 8, 2016.
u. The approximately 18 acres of land generally located at the southeast corner of Sebesta
Road and Earl Rudder Freeway frontage road – Ordinance 3848, dated December 8,
2016.
v. The approximately 6 acres of land being situated in the Pooh’s Park Subdivision, Block
1, Lots 6-14 recorded in Volume 314, Page 618 of the deed records of Brazos County,
Texas, located at 204, 206, 208, 210, 212, 214, 216, 218, and 220 Holleman Drive east,
more generally southwest of the intersection of Holleman Drive East and Lassie Lane
by – Ordinance 3850, dated January 12, 2017.
w. The approximately 6.3 acres of land generally located northeast intersection of
Copperfield Parkway and Crescent Pointe Parkway - Ordinance 3859, dated February
9, 2017.
x. The approximately 11.3 acres of land generally located at the southeast intersection of
Earl Rudder Freeway South and Emerald Parkway – Ordinance 3875, dated April 27,
2017.
y. The approximately 232 acres of land generally located south of Rock Prairie Road -
3877, dated April 27, 2017.
z. The approximately 5.96 acres of land generally located in the nor theast corner of
Associates Avenue and Harvey Road intersection. – Ordinance 3879, dated April 27,
2017.
aa. The approximately 4.74 acres of land generally located at the corner of Harvey
Mitchell Parkway South and Raymond Stotzer Parkway – by this ordinance dated May
11, 2017.
3. Concept Map Amendment:
a. Growth Area IV – Ordinance 3376, dated October 2011.
ORDINANCE NO.__________________ Page 5
b. Growth Area V – Ordinance 3376, dated October 2011.
4. Thoroughfare Map Amendment:
a. Raintree Drive – Ordinance 3375, dated October 2011.
b. Birkdale Drive – Ordinance 3375, dated October 2011.
c. Corsair Circle – Ordinance 3375, dated October 2011.
d. Deacon Drive – Ordinance 3375, dated October 2011.
e. Dartmouth Drive – Ordinance 3375, dated October 2011.
f. Farm to Market 60 – Ordinance 3375, dated October 2011.
g. Southwest Parkway – Ordinance 3375, dated October 2011.
h. Cain Road extension –Ordinance 3639, dated February 26, 2015.
i. Update to Chapter 6 Maps- Ordinance 3729, dated December 10, 2015.
j. South College Station Mobility Study – Ordinance 3827, dated October 27, 2016.
5. Bicycle, Pedestrian and Greenways Master Plan Amendment:
a. Cain Road extension – Ordinance 3639, dated February 26, 2015
b. Update to Maps 5.4 and 5.5- Ordinance 3729, dated December 10, 2015.
c. South College Station Mobility Study – Ordinance 3827, dated October 27, 2016.
d. Update to Maps 5.4 and 5.5 – Ordinance 3877, dated April 27, 2017.
D. General
1. Conflict. All parts of the College Station Comprehensive Plan and any amendments thereto
shall be harmonized where possible to give effect to all. Only in the event of an irreconcilable
conflict shall the later adopted ordinance prevail and then only to the extent necessary to avoid
such conflict. Ordinances adopted at the same city council meeting without reference to
another such ordinance shall be harmonized, if possible, so that effect may be given to each.
2. Purpose. The Comprehensive Plan is to be used as a guide for growth and development for the
entire City and its extra-territorial jurisdiction (“ETJ”). The College Station Comprehensive
Plan depicts generalized locations of proposed future land-uses, including thoroughfares,
bikeways, pedestrian ways, parks, greenways, and waterlines that are subject to modification
by the City to fit local conditions and budget constraints.
3. General nature of Future Land Use and Character. The College Station Comprehensive Plan,
in particular the Future Land Use and Character Map found in A.3 above and any adopted
amendments thereto, shall not be nor considered a zoning map, shall not constitute zoning
regulations or establish zoning boundaries and shall not be site or parcel specific but shall be
used to illustrate generalized locations.
4. General nature of College Station Comprehensive Plan. The College Station Comprehensive
Plan, including the Thoroughfare Plan, Bicycle, Pedestrian, and Greenways Master Plan,
Central College Station Neighborhood Plan, Water System Master Plan and any additions,
amendments, master plans and subcategories thereto depict same in generalized terms
including future locations; and are subject to modifications by the City to fit local conditions,
budget constraints, cost participation, and right-of-way availability that warrant further
refinement as development occurs. Linear routes such as bikeways, greenways, thoroughfares,
pedestrian ways, waterlines and sewer lines that are a part of the College Station
Comprehensive Plan may be relocated by the City 1,000 feet from the locations shown in the
Plan without being considered an amendment thereto.
ORDINANCE NO.__________________ Page 6
5. Reference. The term College Station Comprehensive Plan includes all of the above in its
entirety as if presented in full herein, and as same may from time to time be amended.”
ORDINANCE NO.__________________ Page 7
EXHIBIT “B”
That the “Comprehensive Plan of the City of College Station” is hereby amended by amending a portion
of the map titled “Map 2.2-Future Land Use & Character” of Chapter 2 –Community Character” from
Suburban Commercial to Urban shown as follows:
ORDINANCE NO.__________________ Page 8
Urban
City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:117-0218 Name:PDD Rezoning - 404 Harvey Mitchell Parkway
South
Status:Type:Rezoning Agenda Ready
File created:In control:4/27/2017 City Council Regular
On agenda:Final action:5/11/2017
Title:Public Hearing, presentation, possible action, and discussion regarding an ordinance amending
Chapter 12, "Unified Development Ordinance," Section 12-4.2, "Official Zoning Map," of the Code of
Ordinances of the City of College Station, Texas by changing the zoning district boundaries from CI
Commercial Industrial to PDD Planned Development District for approximately 4.74 acres being
situated in the City of College Station, Brazos County, Texas, at 404 Harvey Mitchell Parkway South,
generally located at the corner of Harvey Mitchell Parkway South and Raymond Stotzer Parkway.
Sponsors:Madison Thomas
Indexes:
Code sections:
Attachments:Background Information
Aerial and Small Area Map
Rezoning Map
Ordinance.pdf
Action ByDate Action ResultVer.
Public Hearing, presentation, possible action, and discussion regarding an ordinance amending
Chapter 12, "Unified Development Ordinance," Section 12-4.2, "Official Zoning Map," of the Code of
Ordinances of the City of College Station, Texas by changing the zoning district boundaries from CI
Commercial Industrial to PDD Planned Development District for approximately 4.74 acres being
situated in the City of College Station, Brazos County, Texas, at 404 Harvey Mitchell Parkway South,
generally located at the corner of Harvey Mitchell Parkway South and Raymond Stotzer Parkway.
Relationship to Strategic Goals:
·Good Governance
·Financially Sustainable City
·Core Services and Infrastructure
·Diverse Growing Economy
Recommendation(s): The Planning and Zoning Commission considered this item at the April 6, 2017
meeting and voted 6-0 to recommend approval.
Summary: The applicant has requested a PDD Planned Development District rezoning at this
location to allow for multi-family development that will consist of attached units that meet the MF Multi
-Family Zoning Regulations and accessory commercial uses in the ground level of one of the
buildings. Vehicular access will be taken through the adjacent property to the north, via a private
access easement. There will be a multi-use path, for walkers and bikers that will be provided through
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the property.
REZONING REVIEW CRITERIA
1.Consistency with the Comprehensive Plan: The subject area is designated on the
Comprehensive Plan Future Land Use and Character Map as Suburban Commercial. The
Comprehensive Plan states that this designation is for small concentrations of commercial
activities adjacent to major roads that cater primarily to nearby residents versus the larger
community or region. The proposed zoning permits high-density multi-family development and
lower-density commercial uses that are meant to provide services to the residential uses and
nearby existing commercial development. Adjacent properties along Harvey Mitchell Parkway are
also designated as Suburban Commercial on the Comprehensive Plan Future Land Use and
Character Map. Currently, this proposed rezoning is not consistent with the Comprehensive Plan,
but if the proposed Comprehensive Plan Amendment to Urban passes, then this proposed
rezoning would allow the property to be developed consistent with the Comprehensive Plan.
2.Compatibility with the present zoning and conforming uses of nearby property and
with the character of the neighborhood: The current zoning, CI Commercial Industrial is
compatible with adjacent properties that are zoned GC General Commercial and R Rural, and a
neighboring property that is also CI Commercial Industrial zoning. The commercial zoning shares
similar uses, while the rural zoning is where a cemetery is located. Similar zoning uses is
encouraged for these three properties as they share one access point off of Harvey Mitchell
Parkway South.
3.Suitability of the property affected by the amendment for uses permitted by the
district that would be made applicable by the proposed amendment: A zoning change to
allow for multi-family development and some commercial uses would not be consistent with
current neighboring uses. This change in zoning use would permit substantially different and
much higher density uses on this property and allowing high density multi-family will create a
dynamic change in the way this area is used. Due to access limitations, this property would rely
on access through the neighboring developed commercial uses. This will significantly increase the
traffic through the existing sites. It also might have unforeseen effects on the marketability of
these sites as commercial establishments. Commercial businesses keep regular operating hours
and weekday use, where a multi-family development will be accessed all hours of the day and all
days of the week. Commercial uses also stay mostly inside a building, where the residential uses
utilize both indoor and outdoor amenities. The use of outdoor amenities will change the current
outdoor atmosphere, as with current surrounding uses there is little to no outdoor activity with the
exception of the cemetery. Easterwood Airport is also located across Raymond Stotzer Parkway.
Airports can create noise pollution that might be more undesirable to those that reside nearby
opposed to those there during working hours.
4.Suitability of the property affected by the amendment for uses permitted by the
district applicable to the property at the time of the proposed amendment: There are few
properties zoned for commercial-industrial uses within the city, preserving existing is ideal. This
property is adjacent to a property zoned GC General Commercial, and R Rural. The neighboring
properties are also zoned R Rural and CI Commercial Industrial. The commercial uses are all
similar in density and use. The adjacent Rural zoned property is currently a cemetery. Due to
limitations in access, any higher density or usages could create potential conflicts in accessibility.
Currently all adjacent properties are successfully being used for general commercial and
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commercial industrial uses.
5.Marketability of the property affected by the amendment for uses permitted by the
district applicable to the property at the time of the proposed amendment:The property
could be marketed as commercial industrial as it is now. There are no issues that would prohibit
the use of this property as it is currently zoned. The nearby properties with the same and similar
zoning and uses, that would share access with this property, have buildings that are currently
being leased. The applicant has stated that he has had difficulty marking this property based on
its currently zoning per his application.
6. Availability of water, wastewater, stormwater, and transportation facilities generally
suitable and adequate for the proposed use: Water service to the subject tract may be
provided by an existing 10-inch line along the front of the property. Domestic and fire flow
demand may necessitate future water main extensions with site development. These utilities
will be required to be designed and constructed in accordance with the BCS Unified Design
Guidelines.
The site also has existing 6-inch sanitary sewer mains along the northern and western property
lines and a lift station located near the northwestern corner. Wastewater for select properties,
including this tract, are subject to an Interlocal Agreement (ILA) with Texas A&M University in
which they have agreed to accept an enumerated sewer demand into their system. Based on
preliminary demands provided, the ILA and lift station capacity appear to be adequate.
Stormwater from the site generally discharges to the northeast within the White Creek drainage
basin. There is no FEMA regulated floodplain on site. The property has an existing detention
pond at the southern corner, which will need to be evaluated with site development to confirm
that the pond has adequate capacity to serve the entire site. Any necessary drainage
improvements will need to be designed and constructed in accordance with the BCS Unified
Stormwater Design Guidelines.
The site will have access to Harvey Mitchell Parkway South through an existing driveway and
cross-access easement on the adjacent site. No additional access points can be permitted due
to the property’s proximity to the existing ramp on Harvey Mitchell Parkway south. A TIA was
not required, as the proposed land use classification change is expected to generate less than
150 vehicle trips during any peak hour period.
SUMMARY OF CONCEPT PLAN
The Concept Plan provides an illustration of the general layout of the proposed building and parking
areas as well as other site related features. In proposing a PDD, an applicant may also request
variations to the general platting and site development standards provided that those variations are
outweighed by demonstrated community benefits of the proposed development. The Unified
Development Ordinance provides the following review criteria for PDD Concept Plans:
1.The proposal will constitute an environment of sustained stability and will be in
harmony with the character of the surrounding area:The Concept plan proposes Urban
land use to allow for high-density multi-family. Due to the location, the limited access available
and surrounding commercial uses, the proposed use of multi-family is not harmonious with the
character of the surrounding area. The surrounding area is mostly commercial developments
that consist of office use.
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2.The proposal is in conformity with the policies, goal and objectives of the
Comprehensive Plan, and any subsequently adopted Plans, and will be consistent with
the intent and purpose of this Section:The proposed Concept Plan is not in conformity with
the policies, goals, and objectives of the Comprehensive Plan. This property is currently
designated as Suburban Commercial on the Comprehensive Plan, the applicant is proposing a
change to an Urban designation.
3.The proposal is compatible with existing or permitted uses on abutting sites and
will not adversely affect adjacent development:The proposed multi-family development is
not compatible with the adjacent commercial uses. This type of development has different
hours of use, transportation needs and types of use (indoor and outdoor) then the neighboring
cemetery and adjacent office uses.
4.Every dwelling unit need not front on a public street but shall have access to a
public street directly or via a court, walkway, public area, or area owned by a
homeowners association:Dwelling units will have access to a public street via driveway and
public access easement through the adjacent property.
5.The development includes provision of adequate public improvements, including,
but not limited to, parks, school, and other public facilities:There are currently no
additional provisions for public facilities or improvements outside of what is required with the
development of the site.
6.The development will not be detrimental to the public health, safety, welfare or
materially injurious to properties or improvements in the vicinity:The subject property
will be required to meet all City requirements and should not be detrimental to the public
health, safety, welfare or materially injurious to properties or improvements in the vicinity.
7.The development will not adversely affect the safety and convenience of vehicular,
bicycle or pedestrian circulation in the vicinity, including traffic reasonably expected to
be generated by the proposed use and other uses reasonably anticipated in the area
considering existing zoning and land uses in the area:The proposed development will
create additional traffic within the property and adjacent properties due to the site’s limited
access. This site must be accessed through the existing commercial development. A TIA was
not required due to the zoning classification expecting to generate less than 150 vehicle trips
during any peak hour period.
General:
The purpose of the PDD Planned Development District rezoning would be to permit a base zoning of
MF Multi-Family with allowed associated restaurant uses up to 2,000 square feet. Due to concerns
from the previous rezoning request to MF Multi-family, the applicant has requested a PDD to allow for
a concept plan to show buffering and a multi-use path on the side adjacent to the City cemetery. The
subject property will be accessed through the neighboring commercial properties to the north via a
proposed access easement. There is a multi-use pathway that the applicant has propose that will
connect Raymond Stotzer Parkway with existing commercial developments and the proposed multi-
family development. Allowing commercial properties and the proposed multi-family developments to
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access Texas A&M University by walking or biking. The applicant has proposed this as a supplement
to the single access available for vehicular transportation. The complex proposes outdoor amenity
spaces located to the east of the property, closest to Harvey Mitchell Parkway, with the residential
buildings proposed along the property lines. The PDD states that the maximum building height will be
four stories tall, with a maximum of 142 multi-family units. The concept plan also proposes to
increase the buffer area between the property and the Aggie Field of Honor to 25 feet and to include
landscaping within this buffer area. This proposal is to address previous concerns from Council on
the potential visual and audible degradation of the cemetery due to this development. They will also
replace the existing chain-link fence along the property line with a privacy fence to enhance the buffer
and meet buffering requirements.
Base Zoning and Meritorious Modifications:
The proposed base zoning will be MF Multi-Family with a modification to limit the commercial portion
to a maximum of 2,000 square feet and with a limitation to restaurant uses only. MF Multi-Family
zoning traditionally permits non-residential uses up to a maximum of 50 percent of the total floor area
if incorporated into the residential structure.
Community Benefit:
The applicant is proposing a 10’ wide multi-use path that runs along the west side of the property,
adjacent to the cemetery and proposed vegetative buffering. This path is to provide connectivity from
the multi-family and commercial portions of property and adjacent ones to the path that TxDOT is
providing along Royder Road to Texas A&M University.
Budget & Financial Summary: N/A
Legal Review: Yes
Attachments:
1.Background information
2. Aerial and Small Area Map
2.Rezoning Map
3.Ordinance
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NOTIFICATIONS
Advertised Commission Hearing Date: April 20, 2017
Advertised Council Hearing Date: May 11, 2017
The following neighborhood organizations that are registered with the City of College Station’s
Neighborhood Services have received a courtesy letter of notification of this public hearing:
N/A
Property owner notices mailed: Four
Contacts in support: None at the time of the staff report
Contacts in opposition: None at the time of the staff report
Inquiry contacts: None at the time of the staff report
ADJACENT LAND USES
Direction Comprehensive Plan Zoning Land Use
North
Suburban Commercial
CI Commercial
Industrial and GC
General Commercial
Commercial Business
South (Across
Raymond
Stotzer)
Texas A&M University C-U College University Easterwood Airport
East (across
Harvey Mitchell
Pkwy)
Texas A&M University C-U College University Texas A&M Property
West Institutional/Public and
Texas A&M University R Rural Cemetery
DEVELOPMENT HISTORY
Annexation: 1970
Zoning: R-1 upon annexation (1970)
C-1 General Commercial to C-2 Commercial Industrial (2005)
C-2 Commercial Industrial renamed CI Commercial Industrial (2012)
Final Plat: 2011, Valley Park Center
Site development: Vacant
History: The property is the south portion of three property that are designated for
commercial use. They share a single driveway off of Harvey Road. The
two norther lots have been developed for commercial and office related
uses, with this lower lot still undeveloped. The request to amend the
Comprehensive Plan Future Land Use and Character Map to Urban was
originally heard by the Planning and Zoning Commission on June 16, 2016
and then by the City Council on July 14, 2016. The request was denied
due to concerns about the access to the property through the existing
commercial uses and the proposed multi-family use potentially diminishing
the atmosphere of the Aggie Field of Honor. The applicant has resubmitted
the same Comprehensive Amendment request, with a request to rezone
the property to a PDD to with a base zoning of MF Multi-Family.
ORDINANCE NO. _____
AN ORDINANCE AMENDING CHAPTER 12, “UNIFIED DEVELOPMENT ORDINANCE,”
SECTION 12-4.2, “OFFICIAL ZONING MAP,” OF THE CODE OF ORDINANCES OF THE
CITY OF COLLEGE STATION, TEXAS, BY CHANGING THE ZONING DISTRICT
BOUNDARIES FROM CI COMMERCIAL INDUSTRIAL TO PDD PLANNED DEVELOPMENT
DISTRICT FOR APPROXIMATELY 4.74 ACRES IN THE CITY OF COLLEGE STATION,
BRAZOS COUNTY, TEXAS, AT 404 HARVEY MITCHELL PARKWAY SOUTH,
GENERALLY LOCATED AT THE CORNER OF HARVEY MITCHELL PARKWAY SOUTH
AND RAYMOND STOTZER PARKWAY; PROVIDING A SEVERABILITY CLAUSE;
DECLARING A PENALTY; AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS:
PART 1: That Chapter 12, “Unified Development Ordinance,” Section 12-4.2, “Official Zoning
Map,” of the Code of Ordinances of the City of College Station, Texas, be amended as set
out in Exhibit “A”, as described in Exhibit “B” and as depicted in the concept plan in
Exhibit “C” and as further shown in Exhibit “D”, attached hereto and made a part of this
ordinance for all purposes.
PART 2: That if any provisions of any section of this ordinance shall be held to be void or
unconstitutional, such holding shall in no way affect the validity of the remaining
provisions or sections of this ordinance, which shall remain in full force and effect.
PART 3: That any person, firm, or corporation violating any of the provisions of this chapter shall
be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by
a fine of not less than Twenty-five Dollars ($25.00) nor more than Two Thousand Dollars
($2,000.00). Each day such violation shall continue or be permitted to continue, shall be
deemed a separate offense. Said Ordinance, being a penal ordinance, becomes effective
ten (10) days after its date of passage by the City Council, as provided by Section 35 of
the Charter of the City of College Station.
PASSED, ADOPTED and APPROVED this 11th day of May, 2017
APPROVED:
____________________________________
MAYOR
ATTEST:
_________________________________
City Secretary
APPROVED:
_______________________________
City Attorney
ORDINANCE NO.__________________ Page 2 of 5
EXHIBIT “A”
That Chapter 12, “Unified Development Ordinance,” Section 12-4.2, “Official Zoning Map,” of the
Code of Ordinances of the City of College Station, Texas, is hereby amended as follows:
The following property is rezoned from CI Commercial Industrial to PDD Planned Development
District:
The Valley Park Center Subdivision, Lot 3R as depicted as follows:
ORDINANCE NO.__________________ Page 3 of 5
EXHIBIT “B”
General: The Concept plan depicts Urban land use to allow for high-density multi-family. Due to
the location, the limited access available and surrounding commercial uses, the proposed use of
multi-family is not harmonious with the character of the surrounding area unless meritorious
modifications are made. The surrounding area is mostly commercial development that consist of
office use. The proposed development is intended to provide student housing in close proximity to
the Texas A&M University campus. The PDD includes a variety of unit types and bedroom counts.
Meritorious modifications and other requirements are included below. All other standards of the
MF Multi-family district shall apply to the subject tract.
Density: The project is capped at 142 dwelling units.
Range of future building heights: The buildings will have a maximum building height of four
stories.
Drainage: The drainage from the project will enter the two existing ponds on the property and be
detained before leaving the property boundary. Modifications to the ponds are proposed to allow
them to act as detention. The applicant is requesting to reclaim a portion of the “flood prone” area.
This portion of the property shown as “flood prone” is located in a Zone X area on the FEMA
FIRM map panel 48041C0305F.
Meritorious Modifications
The following modification is proposed through this rezoning request:
Residential Zoning District: The proposed base zoning will be multi-family with a
modification to limit the total commercial portion to a maximum of 2,000 square feet and
with a limitation to restaurant uses only. MF Multi-Family zoning traditionally permits non-
residential uses up to a maximum of 50 percent of the total floor area if incorporated into the
residential structure, and this shall be allowed up to a maximum of 2,000 square feet.
ORDINANCE NO.__________________ Page 4 of 5
EXHIBIT “C”
CONCEPT PLAN
ORDINANCE NO.__________________ Page 5 of 5
EXHIBIT “D”
City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:117-0219 Name:Comprehensive Plan Amendment – 3500 Harvey
Road
Status:Type:Comprehensive Plan Agenda Ready
File created:In control:4/27/2017 City Council Regular
On agenda:Final action:5/11/2017
Title:Public Hearing, presentation, possible action, and discussion regarding an ordinance amending the
Comprehensive Plan - Future Land Use & Character Map from Urban to General Commercial and
Natural Areas Reserved for approximately 3.2 acres located 3500 Harvey Road, generally located
east of Copperfield Pkwy and south of Harvey Road.
Sponsors:Madison Thomas
Indexes:
Code sections:
Attachments:Aerial and Small Area Map (SAM)
Amendment Map
Ordinance
Action ByDate Action ResultVer.
Public Hearing, presentation, possible action, and discussion regarding an ordinance amending the
Comprehensive Plan - Future Land Use & Character Map from Urban to General Commercial and
Natural Areas Reserved for approximately 3.2 acres located 3500 Harvey Road, generally located
east of Copperfield Pkwy and south of Harvey Road.
Relationship to Strategic Goals:
·Good Governance
·Financially Sustainable City
·Core Services and Infrastructure
·Diverse Growing Economy
Recommendation(s): The Planning and Zoning Commission considered this item on April 20, 2017
and voted unanimously to recommend approval.
Summary::The applicant has requested the proposed Comprehensive Plan amendment to
General Commercial and Natural Areas Reserved as a step toward permitting a commercial
development at 3500 Harvey Road. The Commercial land use is intended to provide commercial
development for the nearby residents and the greater community. The Natural Areas Reserved
land use would protect the floodplain on the property and create a buffer at the south of the
property. The subject property is designated as Urban on the Comprehensive Plan Future Land
Use and Character Map, with the properties to the north and east designated for Suburban
Commercial, and the property to the west as Urban and the south, located in the ETJ, as Rural on
the Comprehensive Plan Future Land Use and Character Map.
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REVIEW CRITERIA
1.Changed or changing conditions in the subject area or the City:The City of College
Station’s Comprehensive Plan was adopted in 2009. This site was designated as Urban on the
Comprehensive Future Land Use and Character Map. The Comprehensive Plan Urban
designation is for areas that should have high density multi-family developments.
The subject property is located in Area 8-Carters Creek Corridor on the Comprehensive Future
Land Use and Character Map Concept Plan. The Carters Creek Corridor is an area that has
identified Carters Creek and the floodplain along it as a significant natural feature that should
be protected and developed for recreational opportunities that tie the region together. The
Natural Areas Reserved designation does not currently exist on this property, but is proposed
on the south side of this property to allow for the protection of the floodplain along the creek.
Properties to the east are all developed as commercial uses and zoned for commercial uses,
property to the north (across Harvey) are zoned Suburban Commercial. The property to the
west is also zoned rural and designated as Urban on the Comprehensive Plan. This property
and the subject property would have to develop together in order to have enough developable
property for a feasible urban, high density, multi-family development due to the amount of
floodplain on each property. Due to the approximate 2 acres of developable property,
commercial use is more appropriate based on the size and adjacent uses.
2.Scope of the request. The request is to convert approximately 3 acres from Urban to General
Commercial and Natural Areas Reserved by amending the Comprehensive Plan Future Land
Use and Character Map. The General Commercial designation calls for areas to provide
commercial uses that serve the nearby residents and the larger community. The applicant
anticipates proposing a future rezoning to GC General Commercial. Under the existing land
use designation, townhomes, duplexes as well as large scale multi-family residential could be
developed, but due to limitations in developable land, this type of use is not ideal.
3.Availability of adequate information:A General Commercial designation allows for future
development of commercial uses. College Station Utilities will provide water and sewer service
to the property and is available to the site. College Station Utilities (CSU) serves properties in
this area and is able to provide domestic water and sanitary sewer service to the proposed
development. A Transportation Impact Analysis is not required for a Comprehensive Plan
Amendment, but due to the size of the property, could be required at a later date.
4.Consistency with the goals and strategies set forth in the Plan:The goal for College
Station’s Future Land Use and Character is to create a community with strong, unique
neighborhoods, protected rural areas, special districts, distinct corridors, and a protected and
enhanced natural environment.
The Comprehensive Plan identifies relevant strategies to achieve this goal, specifically the
strategy to develop and maintain, through regular review, a land use plan that identifies,
establishes and enhances community character. The subject tract is adjacent to developed
commercial, and adjacent to property that is zoned for commercial and single-family use. The
proposed designation is in an area that is sensitive and complementary to the surrounding land
uses.
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5.Consideration of the Future Land Use & Character and/or Thoroughfare Plans:The
existing Future Land Use and Character designation on the property is Urban:
generally for areas that should have a very intense level of development activities. These
areas will tend to consist of townhomes, duplexes, and high-density apartments. General
commercial and office uses, business parks, and vertical mixed-use may also be permitted
within growth and redevelopment areas.
The proposed land use, Commercial, is described as:
this land use designation is generally for concentrations of commercial activities that cater to
both nearby residents and to the larger community or region. Generally, these areas tend to
be large in size and located near the intersection of tow regionally significant roads. It is
preferred that in such areas development be concentrated in nodes rather than spread out in
strips.
The proposed land use, Natural Areas Reserved, is described as:
The Comprehensive Plan Natural Areas Reserved designation is for areas that represent a
constraint to development and that should be preserved for their natural function or open
space qualities. These areas include floodplains and riparian buffers, as well as recreation
facilities.
The commercial designation would fit well with the commercial designation and developments
already existing in the surrounding area. A designation of NAR Natural Areas Reserved on the
south of the property would protect the existing floodplain on the property, and prohibit
development within that designated area.
The property is located off of Harvey Road, a future four lane major arterial. The properties to the
east, are already developed with commercial buildings. The property and adjacent that area
currently designated for Urban use lack sufficient developable area due to floodplain on the
properties. The proposed NAR would provide a buffer between the proposed commercial use
and adjacent single-family home in the ETJ.
6.Compatibility with the surrounding area:The proposed amendment to General Commercial
would allow zoning for commercial uses, such as restaurants, gas stations, etc. Properties to
the east are already developed as commercial uses. To the south is a residential home. The
applicant is proposing a Natural Areas Reserved land use designation for 100 to 200 feet of
floodplain area. This area is not permitted to be built on, and will create a buffer area between
the two different uses. The property to the west, is currently undeveloped. The property to the
north, across Harvey, are undeveloped, but are Comprehensive Planned and Zoned for
commercial uses. Considering the surrounding existing and zoned commercial uses, and
Harvey Road’s functional class as a future 4 lane major arterial, this property would be better
suited for commercial uses.
7.Impacts on infrastructure including water, wastewater, drainage, and the transportation
network:Water is available to serve this property via an existing 8-inch line along Harvey Road.
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There is also an adjacent 18-inch sanitary sewer line along the south that may serve this
property. With further site development, a PUE will need to be dedicated for the sewer line and
the 8” water line will need to be extended along the front of the property, possibly requiring
looping. Drainage is mainly to the South within the Carter’s Creek Drainage Basin. TXDOT
permits will be needed for access along Hwy 30. Drainage and other public infrastructure
required with site development shall be designed and constructed in accordance with the BCS
Unified Design Guidelines
8.Impact on the City’s ability to provide, fund, and maintain services:The proposed
amendment for the subject property does not negatively impact the City’s ability to provide,
fund and maintain services. Infill development will add to the tax base while utilizing existing
city infrastructure.
9.Impact on environmentally sensitive and natural areas:The applicant has proposed to
reserve natural areas within this site. As defined in previous criteria, this designation is for
areas that represent a constraint to development, and should be preserved for their natural
function. The Natural Areas Reserved boundary on this site is currently not identified on the
Comprehensive Plan Future Land Use and Character Map. The application is proposing
adding Natural Areas Reserved. The proposed location for the Natural Areas Reserved has
been determined by the location of the floodplain line and will consist of 0.975 acres of the
3.175 acre tract of land.
10.Contribution to the overall direction and character of the community as captured in the
Plan’s vision and goals:The goal for College Station’s Future Land Use and Character is to
create a community with strong, unique neighborhoods, protected rural areas, special districts,
distinct corridors, and a protected and enhanced natural environment. The amendment will
allow for a commercial development adjacent to existing commercial developments along
Harvey Road, a future 4 lane major arterial. The identification and designation of Natural Areas
Reserved on the property, reflects the vision statement provide sensitive development and
management of the natural environment. The vision statements that reference planned, quality
and sustainable growth as well as neighborhoods with character can be seen though the
proposed designation of this property to Natural Areas Reserved and Urban land uses.
Budget & Financial Summary: N/A
Legal Review: Yes
Attachments:
1.Aerial and Small Area Map
2.Comprehensive Plan Map
3.Ordinance
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ORDINANCE NO. _____
AN ORDINANCE OF THE CITY OF COLLEGE STATION, TEXAS, AMENDING THE
COLLEGE STATION COMPREHENSIVE PLAN BY AMENDING THE COMPREHENSIVE
PLAN - FUTURE LAND USE & CHARACTER MAP FROM URBAN TO GENERAL
COMMERCIAL AND NATURAL AREAS RESERVED FOR APPROXIMATELY 3.2 ACRES
LOCATED AT 3500 HARVEY ROAD, GENERALLY LOCATED EAST OF COPPERFIELD
PARKWAY AND HARVEY ROAD, PROVIDING A SEVERABILITY CLAUSE; PROVIDING
AN EFFECTIVE DATE; AND CONTAINING OTHER PROVISIONS RELATED THERETO.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION,
TEXAS:
PART 1: That the “Comprehensive Plan of the City of College Station” is hereby amended
by adding a new Subsection C.2.bb of Exhibit “A” thereto as set out in Exhibit “A”
attached hereto and made a part hereof; and by amending the “Comprehensive Plan
Future Land Use and Character Map,” as set out in Exhibit “B” attached hereto for
the identified area and made a part hereof for all purposes.
PART 2: That if any provisions of any section of this ordinance shall be held to be void or
unconstitutional, such holding shall in no way affect the validity of the remaining
provisions or sections of this ordinance, which shall remain in full force and effect.
PART 3: That this ordinance shall take effect immediately from and after its passage.
PASSED, ADOPTED and APPROVED this 11th day of May, 2017.
ATTEST: APPROVED:
_____________________________ ____________________________________
City Secretary Mayor
APPROVED:
___________________________
City Attorney
ORDINANCE NO.__________________ Page 2 of 8
EXHIBIT “A”
That ordinance no. 3186 adopting the “Comprehensive Plan of the City of College Station” as amended,
is hereby amended by adding a new subsection C.2.bb to Exhibit “A” of said plan for Exhibit “A” to read
in its entirety as follows:
“EXHIBIT ‘A’
A. Comprehensive Plan
The College Station Comprehensive Plan (Ordinance 3186) is hereby adopted and consists of the
following:
1. Existing Conditions;
2. Introduction;
3. Community Character;
4. Neighborhood Integrity;
5. Economic Development;
6. Parks, Greenways & the Arts;
7. Transportation;
8. Municipal Services & Community Facilities;
9. Growth Management and Capacity; and
10. Implementation and Administration.
B. Master Plans
The following Master Plans are hereby adopted and made a part of the College Station
Comprehensive Plan:
1. The Northgate Redevelopment Plan dated November 1996;
2. The Revised Wolf Pen Creek Master Plan dated 1998;
3. Northgate Redevelopment Implementation Plan dated July 2003;
4. East College Station Transportation Study dated May 2005;
5. Parks, Recreation and Open Space Master Plan dated May 2005;
6. Park Land Dedication Neighborhood Park Zones Map dated January 2009;
7. Park Land Dedication Community Park Zones map dated April 2009;
8. Bicycle, Pedestrian, and Greenways Master Plan dated January 2010;
9. Central College Station Neighborhood Plan dated June 2010;
10. Eastgate Neighborhood Plan dated June 2011;
11. Recreation, Park and Open Space Master Plan dated July 2011;
12. Southside Area Neighborhood Plan dated August 2012;
13. Medical District Master Plan dated October 2012;
14. Wellborn Community Plan dated April 2013;
15. Economic Development Master Plan dated September 2013;
ORDINANCE NO.__________________ Page 3 of 8
16. South Knoll Area Neighborhood Plan dated September 2013;
17. The Water System Master Plan dated April 2017; and
18. The Wastewater System Master Plan dated April 2017.
C. Miscellaneous Amendments
The following miscellaneous amendments to the College Station Comprehensive Plan are as
follows:
1. Text Amendments:
a. Chapter 2 “Community Character,” “Growth Areas” by amending the text regarding
Growth Area IV and Growth Area V – Ordinance 3376, dated October 2011.
b. Chapter 6 “Transportation” by amending the text regarding Complete Streets, Context
Sensitive Solutions, Minimum Length and Additional Right-of-Way for Turn Lanes at
Intersections, and Right-of-Way for Utilities – Ordinance 3729, dated December 10,
2015.
c. Chapter 2 “Community Character,” Chapter 3 “Neighborhood Integrity,” Chapter 4
“Economic Development,” Chapter 5 “Parks, Greenways, and the Arts,” and Chapter
7 “Municipal Services and Community Facilities” by amending the text based on the
recommendation of the Comprehensive Plan Five-Year Evaluation & Appraisal Report
– Ordinance 3730 dated December 10, 2015.
d. Chapter 8 “Growth Management & Capacity” by amending the text based on
recommendations from the Annexation Task Force – Ordinance 3766, dated April 28,
2016.
2. Future Land Use and Character Map Amendment:
a. 301 Southwest Parkway – Ordinance 3255, dated July 2010.
b. Richards Subdivision – Ordinance 3376, dated October 2011.
c. Earl Rudder Freeway at University Oaks – Ordinance 3465, dated November 19, 2012
d. 1600 University Drive East – Ordinance 3535, dated November 14, 2013.
e. 2560 Earl Rudder Freeway S. – Ordinance 3541, dated December 12, 2013.
f. 13913 FM 2154. – Ordinance 3546, dated January 9, 2014.
g. 2021 Harvey Mitchell Parkway – Ordinance 3549, dated January 23, 2014.
h. 1201 Norton Lane – Ordinance 3555, dated February 27, 2014.
i. 3715 Rock Prairie Road West – Ordinance 3596, dated August 25, 2014.
j. 4201 Rock Prairie Road – Ordinance 3670, dated July 9, 2015.
k. The approximately 40 acres of land generally located east of FM 2154 (aka Wellborn
Road), south of the Southern Trace Subdivision, west of State Highway 40 (aka
William D. Fitch Parkway), and north of Westminster Subdivision – Ordinance 3731,
dated December 10, 2015.
l. The approximately 120 acres of land generally located south of Barron Cut-Off Road,
west of WS Phillips Parkway, north of the Castlegate II Subdivision, and east of the
Wellborn Community – Ordinance 3732, dated December 10, 2015.
m. The approximately 900 acres of land generally located south of Greens Prairie Road
West, east of the Sweetwater Subdivision, and north of Arrington Road – Ordinance
3733, dated December 10, 2015.
ORDINANCE NO.__________________ Page 4 of 8
n. The approximately 17.788 acres of land generally located at the corner of Turkey
Creek Road and Raymond Stotzer Parkway frontage road.– Ordinance 3752, dated
March 10, 2016.
o. The approximately 9 acres of land generally located north of the Crossroad Woods
Subdivision near the intersection of Wellborn Road (FM 2154) and Greens Prairie Trail
– Ordinance 3779, dated June 9, 2016
p. The approximately 16 acres located at 8607 Rock Prairie Road, generally located at
the north of Rock Prairie Road and west of William D. Fitch Parkway – Ordinance
3794, dated August 11, 2016.
q. The approximately 14.25 acres of land located at 2501 Earl Rudder Freeway South,
generally located north of North Forest Parkway and south of Raintree Drive, along
the east side of Earl Rudder Freeway South – Ordinance 3799, dated August 25, 2016.
r. The approximately 7 acres of land located along the south side of State Highway 30,
south of Veterans Memorial Park – Ordinance 3828, dated October 27, 2016.
s. The approximately 58 acres of land generally located along the east side of State
Highway 6 South, north of W.D. Fitch parkway and south of the future Pebble Creek
Parkway extension –Ordinance 3830, dated October 27, 2016.
t. The approximately 2 acres of land generally located on Corsair Circle north of Pavilion
Avenue – Ordinance 3846, dated December 8, 2016.
u. The approximately 18 acres of land generally located at the southeast corner of Sebesta
Road and Earl Rudder Freeway frontage road – Ordinance 3848, dated December 8,
2016.
v. The approximately 6 acres of land being situated in the Pooh’s Park Subdivision, Block
1, Lots 6-14 recorded in Volume 314, Page 618 of the deed records of Brazos County,
Texas, located at 204, 206, 208, 210, 212, 214, 216, 218, and 220 Holleman Drive east,
more generally southwest of the intersection of Holleman Drive East and Lassie Lane
by – Ordinance 3850, dated January 12, 2017.
w. The approximately 6.3 acres of land generally located northeast intersection of
Copperfield Parkway and Crescent Pointe Parkway - Ordinance 3859, dated February
9, 2017.
x. The approximately 11.3 acres of land generally located at the southeast intersection of
Earl Rudder Freeway South and Emerald Parkway – Ordinance 3875, dated April 27,
2017.
y. The approximately 232 acres of land generally located south of Rock Prairie Road -
Ordinance 3877, dated April 27, 2017.
z. The approximately 5.96 acres of land generally located in the nor theast corner of
Associates Avenue and Harvey Road intersection. – Ordinance 3879, dated April 27,
2017.
aa. The approximately 4.74 acres of land generally located at the corner of Harvey
Mitchell Parkway South and Raymond Stotzer Parkway – by an ordinance dated May
11, 2017.
bb. The approximately 3.2 acres of land generally located east of Copperfield Parkway and
south of Harvey Road. – by this ordinance dated May 11, 2017.
ORDINANCE NO.__________________ Page 5 of 8
3. Concept Map Amendment:
a. Growth Area IV – Ordinance 3376, dated October 2011.
b. Growth Area V – Ordinance 3376, dated October 2011.
4. Thoroughfare Map Amendment:
a. Raintree Drive – Ordinance 3375, dated October 2011.
b. Birkdale Drive – Ordinance 3375, dated October 2011.
c. Corsair Circle – Ordinance 3375, dated October 2011.
d. Deacon Drive – Ordinance 3375, dated October 2011.
e. Dartmouth Drive – Ordinance 3375, dated October 2011.
f. Farm to Market 60 – Ordinance 3375, dated October 2011.
g. Southwest Parkway – Ordinance 3375, dated October 2011.
h. Cain Road extension –Ordinance 3639, dated February 26, 2015.
i. Update to Chapter 6 Maps- Ordinance 3729, dated December 10, 2015.
j. South College Station Mobility Study – Ordinance 3827, dated October 27, 2016.
5. Bicycle, Pedestrian and Greenways Master Plan Amendment:
a. Cain Road extension – Ordinance 3639, dated February 26, 2015
b. Update to Maps 5.4 and 5.5- Ordinance 3729, dated December 10, 2015.
c. South College Station Mobility Study – Ordinance 3827, dated October 27, 2016.
d. Update to Maps 5.4 and 5.5 – Ordinance 3877, dated April 27, 2017.
D. General
1. Conflict. All parts of the College Station Comprehensive Plan and any amendments thereto
shall be harmonized where possible to give effect to all. Only in the event of an irreconcilable
conflict shall the later adopted ordinance prevail and then only to the extent necessary to avoid
such conflict. Ordinances adopted at the same city council meeting without reference to
another such ordinance shall be harmonized, if possible, so that effect may be given to each.
2. Purpose. The Comprehensive Plan is to be used as a guide for growth and development for the
entire City and its extra-territorial jurisdiction (“ETJ”). The College Station Comprehensive
Plan depicts generalized locations of proposed future land-uses, including thoroughfares,
bikeways, pedestrian ways, parks, greenways, and waterlines that are subject to modification
by the City to fit local conditions and budget constraints.
3. General nature of Future Land Use and Character. The College Station Comprehensive Plan,
in particular the Future Land Use and Character Map found in A.3 above and any adopted
amendments thereto, shall not be nor considered a zoning map, shall not constitute zoning
regulations or establish zoning boundaries and shall not be site or parcel specific but shall be
used to illustrate generalized locations.
4. General nature of College Station Comprehensive Plan. The College Station Comprehensive
Plan, including the Thoroughfare Plan, Bicycle, Pedestrian, and Greenways Master Plan,
Central College Station Neighborhood Plan, Water System Master Plan and any additions,
amendments, master plans and subcategories thereto depict same in generalized terms
including future locations; and are subject to modifications by the City to fit local conditions,
budget constraints, cost participation, and right-of-way availability that warrant further
refinement as development occurs. Linear routes such as bikeways, greenways, thoroughfares,
ORDINANCE NO.__________________ Page 6 of 8
pedestrian ways, waterlines and sewer lines that are a part of the College Station
Comprehensive Plan may be relocated by the City 1,000 feet from the locations shown in the
Plan without being considered an amendment thereto.
5. Reference. The term College Station Comprehensive Plan includes all of the above in its
entirety as if presented in full herein, and as same may from time to time be amended.”
ORDINANCE NO.__________________ Page 7 of 8
EXHIBIT “B”
That the “Comprehensive Plan of the City of College Station” is hereby amended by amending a portion
of the map titled “Map 2.2-Future Land Use & Character” of Chapter 2 –Community Character” from
Urban to General Commercial and Natural Areas Reserved shown as follows:
ORDINANCE NO.__________________ Page 8 of 8
Urban
City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:117-0220 Name:T-Fare Plan Amendment – Pavilion Avenue
Extension
Status:Type:Comprehensive Plan Agenda Ready
File created:In control:4/27/2017 City Council Regular
On agenda:Final action:5/11/2017
Title:Public Hearing, presentation, possible action, and discussion regarding an ordinance amending the
Comprehensive Plan Thoroughfare Plan by changing the classification of the extension of Pavilion
Avenue, generally located southeast of the intersection of State Highway 6 and Sebesta Road, from a
major collector to a minor collector.
Sponsors:Jason Schubert
Indexes:
Code sections:
Attachments:Background
Vicinity Map and Aerial
Exhibit B
Ordinance.pdf
Action ByDate Action ResultVer.
Public Hearing, presentation, possible action, and discussion regarding an ordinance amending the
Comprehensive Plan Thoroughfare Plan by changing the classification of the extension of Pavilion
Avenue, generally located southeast of the intersection of State Highway 6 and Sebesta Road, from
a major collector to a minor collector.
Relationship to Strategic Goals:
·Good Governance
·Financially Sustainable City
·Core Services and Infrastructure
·Diverse Growing Economy
·Improving Mobility
Recommendation(s): The Planning and Zoning Commission will consider this item at their May 4th
meeting. Their recommendation will be provided at the City Council meeting. Staff recommends
approval.
Summary: The proposed Thoroughfare Plan amendment changes the classification of the extension
of Pavilion Avenue from a major collector to a minor collector.
The Unified Development Ordinance provides the following review criteria for Comprehensive Plan
Amendments:
College Station, TX Printed on 5/5/2017Page 1 of 3
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File #:17-0220,Version:1
REVIEW CRITERIA
1.Changed or changing conditions in the subject area or the City:There has been a
limited amount of change to the planning conditions expected in the surrounding area since the
current Comprehensive Plan was adopted in 2009. The Future Land Use and Character Map of
the Comprehensive Plan has been amended in recent months from Suburban Commercial to
General Commercial for a few properties in the area, though commercial uses are still planned
and expected in proximity to State Highway 6.
2.Scope of the request:The request is to amend the Thoroughfare Plan to change the
classification of the future extension of Pavilion Avenue from a Major Collector to a Minor
Collector for the portion generally located south of Sebesta Road and west over to the State
Highway 6 Frontage Road.
3.Availability of adequate information:Based on the scope of the request, previous
thoroughfare planning efforts, and anticipated traffic demand, additional information is not needed
at this time.
4.Consistency with the goals and strategies set forth in the Plan:Prior to the adoption of
the Comprehensive Plan in 2009, the East College Station Transportation Study was completed
in 2008. One of the main goals of the East College Station Transportation Study was “to preserve
mobility [on the east side of State Highway 6] without negatively impacting existing neighborhoods
with additional traffic.” Along with the extension of Corsair Drive to Emerald Parkway, the
extension of Pavilion Avenue to the south and over to State Highway 6 were identified as part of a
“Back Street B” and placed on the Thoroughfare Plan to provide connectivity for development
along State Highway 6 and reduce the need for travel through existing neighborhood collector
streets. The proposed amendment retains a thoroughfare in this area.
A goal of the Comprehensive Plan and East College Station Transportation Study is to establish
context sensitive solutions in regards to the transportation system intended to meet the mobility
needs of the community. Streets should be tailored to the context in which they pass. A typical
Major Collector cross section has a right-of-way width of 80 feet with two travel lanes, a two-way
center turn lane, bike lanes and sidewalks. A typical Minor Collector does not have the center turn
lane and has a right-of-way width of 60 feet, two travel lanes, bike lanes and sidewalks.
Pavilion Avenue is configured in a loop-like fashion and in connection with Corsair Drive is
intended to serve as a backage road for connectivity in proximity to the one-way frontage road
along State Highway 6. The proposed amendment reduces the thoroughfare classification to the
same context as other existing thoroughfare in the area also constructed as a Minor Collector,
namely: existing Pavilion Avenue, Sebesta Road, and Corsair Drive. A Minor Collector cross
section more appropriately fits the configuration and context of the planned thoroughfare.
5.Consideration of the Thoroughfare Plan and Bicycle, Pedestrian and Greenways
Master Plan:The proposed amendment maintains the connectivity of the Pavilion Avenue
extension as a planned in the East College Station Transportation Study while calibrating the
needed roadway to the expected traffic demand. According to the Bryan/College Station Unified
Design Guidelines, a Major Collector is designed to accommodate between 5,000 and 10,000
vehicles per day while a Minor Collector is designed to accommodate between 1,000 and 5,000
vehicles per day. Given the loop-like configuration of Pavilion Avenue along with land uses
College Station, TX Printed on 5/5/2017Page 2 of 3
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File #:17-0220,Version:1
designated in the area, the thoroughfare is not expected to necessitate a Major Collector by
function or traffic demand.
The thoroughfare provides additional access to the tracts further away from State Highway 6
which may require secondary access upon development. Sidewalks and bicycle facilities will be
provided with either the Major Collector or Minor Collector cross section.
6.Compatibility with the surrounding area:The proposed amendment from a Major
Collector to a Minor Collector provides connectivity in the vicinity more in character with the
scale of other surrounding roadways.
7.Impacts on infrastructure including water, wastewater, drainage, and the
transportation network: There will not be impacts with regard to water, wastewater and
drainage. The connectivity anticipated by the thoroughfare extension is maintained.
8.Impact on the City’s ability to provide, fund, and maintain services:The proposed
amendment does not negatively impact the City’s ability to provide, fund, and maintain services.
9.Impact on environmentally sensitive and natural areas:There is not FEMA designated
floodplain along the Pavilion Avenue extension. The proposed amendment would reduce the
width of the future thoroughfare and impact related to its construction.
10.Contribution to the overall direction and character of the community as captured in
the Plan’s vision and goals:The proposed amendment contributes to the overall direction and
character of the community by amending the Thoroughfare Plan to provide a better transportation
context for the extension of Pavilion Avenue while maintaining connectivity and access.
Budget & Financial Summary: N/A
Legal Review: Yes
Attachments:
1.Background Information
2.Vicinity Map and Aerial
3.Ordinance
4.Exhibit B
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NOTIFICATIONS
Advertised Commission Hearing Date: May 4, 2017
Advertised Council Hearing Dates: May 11, 2017
The following neighborhood organizations that are registered with the City of College Station’s
Neighborhood Services have received a courtesy letter of notification of this public hearing:
None
Contacts in support: None at the time of this staff report
Contacts in opposition: None at the time of this staff report
Inquiry contacts: One at the time of the staff report
ADJACENT LAND USES
Direction Comprehensive Plan Zoning Land Use
North
(across Sebesta
Road)
Suburban Commercial GC General Commercial
Office
Self-Storage
Vacant
South Suburban Commercial
General Suburban
R Rural
R&D Research & Development Vacant
East
(adjacent to Pavilion
Avenue extension)
Suburban Commercial
General Suburban
R Rural
GS General Suburban
R&D Research & Development
Vacant
West
(adjacent to Pavilion
Avenue extension)
General Commercial
Suburban Commercial
General Suburban
R Rural,
GC General Commercial
R&D Research & Development
Office/Research
Vacant
DEVELOPMENT HISTORY
Annexation: 1971 & 1977
Zoning: R Rural and GS General Suburban (upon annexation), R&D
Research & Development (1996), and GC General Commercial
(2016)
Final Plat: Not platted
Site development: Vacant
BRAZOS REINVESTORS GROUP, LLC TRACT 40, MORGAN RECTOR SURVEY16.552 ACRES, VOL. 9800, PG. 288,VOL. 9801, PG. 001ZONED: APPROXIMATELY 14.002 ACRES, GENERALSUBURBAN;2.552 ACRES, RURALROBERT BOWER JRTRACT 40.1, MORGAN RECTOR SURVEY12.57 ACRES, VOL. 2602, PG. 147ZONED: R&DT D LETBETTER JRTRACT 41.1, MORGAN RECTOR SURVEY 8.57 ACRES, ZONED: RURALSEBESTA ROAD 60' R.O.W.STATE HIGHWAY NO. 6(SOUTH EARL RUDDER FREEWAY)VARIABLE WIDTH R.O.W.BRAZOS REINVESTORS GROUP, LLCTRACT 40, MORGAN RECTOR SURVEY1.05 ACRES, VOL. 9800, PG. 288,ZONED: GENERAL SUBURBAN, RURALN42° 19' 35.93"E346.955 S47° 26' 16.31"E149.914S15° 05' 40.00"E71.362S32° 24' 21.66"E1029.448S47° 42' 32.34"E80.623S28° 58' 54.00"E5.000N61° 01' 06.00"E75.000N29° 20' 01.23"W175.379N19° 58' 36.97"W478.745N15° 08' 15.83"W479.915N07° 19' 29.85"W242.803S32° 17' 08.06"E102.813S61°
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.PROPOSED MINOR COLLECTORTHOROUGHFARE PLAN ALIGNMENT60' R.O.W.EXISTING MAJOR COLLECTORTHOROUGHFARE PLAN ALIGNMENT80' R.O.W.SEBESTA ROAD
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GESSNER ENGINEERINGSuite 102Corporate Office2501 Ashford DriveCollege Station, Texas 77840www.gessnerengineering.comFIRM REGISTRATION NUMBER:TBPE F-7451, TBPLS F-10193910COLLEGE STATION979.680.8840979.836.6855817.405.0774210.556.4124BRENHAMFORT WORTHSAN ANTONIOIssue Date:Drawn By:Checked By:Project Number:Revisions:BRAZOS VALLEY AUTO COMPLEX
SH 6 @ SEBESTA ROAD
COLLEGE STATION, TX. 77845 CAUTION: CONTACT THE TEXAS EXCAVATIONSAFETY SYSTEM (DIG-TESS) AT 1-800-344-8377TO LOCATE EXISTING UTILITIES PRIOR TOCONSTRUCTION. CONTACT GESSNERENGINEERING IF CONFLICTS OCCUR.,,,,,,,,,,,,,,,THIS DOCUMENT ISINCOMPLETE AND ISRELEASED TEMPORARILYOR INTERIM REVIEW ONLY.IT IS NOT INTENDED FORCONSTRUCTION, BIDDING,OR PERMIT PURPOSESJEREMY N. PETERS, P.E.100217PRELIMINARY NOTFOR CONSTRUCTIONP L A N | D E S I G N | V E R I F YEXISTING MAJOR COLLECTORPROPOSED MINOR COLLECTORLEGENDJFSTHOROUGHFAREPLAN AMENDMENTEXHIBIT 1JNP03/03/201716-0962VICINITY MAPBRAZOS VALLEY AUTO COMPLEX3401 SH 6 SCOLLEGE STATION, TEXAS18.324 ACRESTRACK 40 & 40.1, MORGAN RECTOR SURVEYCURRENT ZONING:GENERAL COMMERICAL (GC)DEVELOPER:BKCK, LTD.CONTACT: CHRIS WALL5802 N. NAVARRO DRIVE, SUITE 101COLLEGE STATION, TEXAS 77904(361) 652-3698CWALL@WALLAWTX.COMN0SCALE: 1"= 150'150300450Exhibit B
ORDINANCE NO. _____________
AN ORDINANCE OF THE CITY OF COLLEGE STATION, TEXAS, AMENDING THE COLLEGE
STATION COMPREHENSIVE PLAN BY AMENDING THE COMPREHENSIVE PLAN –
THOROUGHFARE PLAN BY CHANGING THE FUNCTIONAL CLASSIFICATION OF THE
EXTENSION OF PAVILION AVENUE FROM A MAJOR COLLECTOR TO A MINOR COLLECTOR,
GENERALLY LOCATED SOUTHEAST OF THE INTERSECTION OF STATE HIGHWAY 6 AND
SEBESTA ROAD, PROVIDING A SEVERABILITY CLAUSE; PROVIDING AN EFFECTIVE DATE;
AND CONTAINING OTHER PROVISIONS RELATED THERETO.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS:
PART 1: That the “Comprehensive Plan of the City of College Station” is hereby amended
by adding a new Subsection C.4.k of Exhibit “A” thereto as set out in Exhibit “A”
attached hereto and made a part hereof; and by amending the Thoroughfare Plan
illustrated in “Map 6.6 Functional Classification and Context Class” contained in
Chapter 6 – Transportation of the Comprehensive Plan as set out in Exhibit “B”
attached hereto for the identified roadway section and made a part hereof for all
purposes.
PART 2: That if any provisions of any section of this ordinance shall be held to be void or
unconstitutional, such holding shall in no way affect the validity of the remaining
provisions or sections of this ordinance, which shall remain in full force and effect.
PART 3: That this ordinance shall take effect immediately from and after its passage.
PASSED, ADOPTED and APPROVED this 11th day May, 2017.
ATTEST: APPROVED:
_____________________________ ____________________________________
City Secretary Mayor
APPROVED:
___________________________
City Attorney
ORDINANCE NO.__________________ Page 2 of 7
EXHIBIT “A”
That ordinance no. 3186 adopting the “Comprehensive Plan of the City of College Station” as amended,
is hereby amended by adding a new subsection C.4.K to Exhibit “A” of said plan for Exhibit “A” to read
in its entirety as follows:
“EXHIBIT ‘A’
A. Comprehensive Plan
The College Station Comprehensive Plan (Ordinance 3186) is hereby adopted and consists of the following:
1. Existing Conditions;
2. Introduction;
3. Community Character;
4. Neighborhood Integrity;
5. Economic Development;
6. Parks, Greenways & the Arts;
7. Transportation;
8. Municipal Services & Community Facilities;
9. Growth Management and Capacity; and
10. Implementation and Administration.
B. Master Plans
The following Master Plans are hereby adopted and made a part of the College Station Comprehensive Plan:
1. The Northgate Redevelopment Plan dated November 1996;
2. The Revised Wolf Pen Creek Master Plan dated 1998;
3. Northgate Redevelopment Implementation Plan dated July 2003;
4. East College Station Transportation Study dated May 2005;
5. Parks, Recreation and Open Space Master Plan dated May 2005;
6. Park Land Dedication Neighborhood Park Zones Map dated January 2009;
7. Park Land Dedication Community Park Zones map dated April 2009;
8. Bicycle, Pedestrian, and Greenways Master Plan dated January 2010;
9. Central College Station Neighborhood Plan dated June 2010;
10. Eastgate Neighborhood Plan dated June 2011;
11. Recreation, Park and Open Space Master Plan dated July 2011;
12. Southside Area Neighborhood Plan dated August 2012;
13. Medical District Master Plan dated October 2012;
14. Wellborn Community Plan dated April 2013;
15. Economic Development Master Plan dated September 2013;
16. South Knoll Area Neighborhood Plan dated September 2013;
17. The Water System Master Plan dated April 2017; and
18. The Wastewater System Master Plan dated April 2017.
ORDINANCE NO.__________________ Page 3 of 7
C. Miscellaneous Amendments
The following miscellaneous amendments to the College Station Comprehensive Plan are as
follows:
1. Text Amendments:
a. Chapter 2 “Community Character,” “Growth Areas” by amending the text regarding
Growth Area IV and Growth Area V – Ordinance 3376, dated October 2011.
b. Chapter 6 “Transportation” by amending the text regarding Complete Streets, Context
Sensitive Solutions, Minimum Length and Additional Right-of-Way for Turn Lanes at
Intersections, and Right-of-Way for Utilities – Ordinance 3729, dated December 10,
2015.
c. Chapter 2 “Community Character,” Chapter 3 “Neighborhood Integrity,” Chapter 4
“Economic Development,” Chapter 5 “Parks, Greenways, and the Arts,” and Chapter
7 “Municipal Services and Community Facilities” by amending the text based on the
recommendation of the Comprehensive Plan Five-Year Evaluation & Appraisal Report
– Ordinance 3730 dated December 10, 2015.
d. Chapter 8 “Growth Management & Capacity” by amending the text based on
recommendations from the Annexation Task Force – Ordinance 3766, dated April 28,
2016.
2. Future Land Use and Character Map Amendment:
a. 301 Southwest Parkway – Ordinance 3255, dated July 2010.
b. Richards Subdivision – Ordinance 3376, dated October 2011.
c. Earl Rudder Freeway at University Oaks – Ordinance 3465, dated November 19, 2012
d. 1600 University Drive East – Ordinance 3535, dated November 14, 2013.
e. 2560 Earl Rudder Freeway S. – Ordinance 3541, dated December 12, 2013.
f. 13913 FM 2154. – Ordinance 3546, dated January 9, 2014.
g. 2021 Harvey Mitchell Parkway – Ordinance 3549, dated January 23, 2014.
h. 1201 Norton Lane – Ordinance 3555, dated February 27, 2014.
i. 3715 Rock Prairie Road West – Ordinance 3596, dated August 25, 2014.
j. 4201 Rock Prairie Road – Ordinance 3670, dated July 9, 2015.
k. The approximately 40 acres of land generally located east of FM 2154 (aka Wellborn
Road), south of the Southern Trace Subdivision, west of State Highway 40 (aka
William D. Fitch Parkway), and north of Westminster Subdivision – Ordinance 3731,
dated December 10, 2015.
l. The approximately 120 acres of land generally located south of Barron Cut-Off Road,
west of WS Phillips Parkway, north of the Castlegate II Subdivision, and east of the
Wellborn Community – Ordinance 3732, dated December 10, 2015.
m. The approximately 900 acres of land generally located south of Greens Prairie Road
West, east of the Sweetwater Subdivision, and north of Arrington Road – Ordinance
3733, dated December 10, 2015.
ORDINANCE NO.__________________ Page 4 of 7
n. The approximately 17.788 acres of land generally located at the corner of Turkey
Creek Road and Raymond Stotzer Parkway frontage road.– Ordinance 3752, dated
March 10, 2016.
o. The approximately 9 acres of land generally located north of the Crossroad Woods
Subdivision near the intersection of Wellborn Road (FM 2154) and Greens Prairie Trail
– Ordinance 3779, dated June 9, 2016
p. The approximately 16 acres located at 8607 Rock Prairie Road, generally located at
the north of Rock Prairie Road and west of William D. Fitch Parkway – Ordinance
3794, dated August 11, 2016.
q. The approximately 14.25 acres of land located at 2501 Earl Rudder Freeway South,
generally located north of North Forest Parkway and south of Raintree Drive, along
the east side of Earl Rudder Freeway South – Ordinance 3799, dated August 25, 2016.
r. The approximately 7 acres of land located along the south side of State Highway 30,
south of Veterans Memorial Park – Ordinance 3828, dated October 27, 2016.
s. The approximately 58 acres of land generally located along the east side of State
Highway 6 South, north of W.D. Fitch parkway and south of the future Pebble Creek
Parkway extension –Ordinance 3830, dated October 27, 2016.
t. The approximately 2 acres of land generally located on Corsair Circle north of Pavilion
Avenue – Ordinance 3846, dated December 8, 2016.
u. The approximately 18 acres of land generally located at the southeast corner of Sebesta
Road and Earl Rudder Freeway frontage road – Ordinance 3848, dated December 8,
2016.
v. The approximately 6 acres of land being situated in the Pooh’s Park Subdivision, Block
1, Lots 6-14 recorded in Volume 314, Page 618 of the deed records of Brazos County,
Texas, located at 204, 206, 208, 210, 212, 214, 216, 218, and 220 Holleman Drive east,
more generally southwest of the intersection of Holleman Drive East and Lassie Lane
by – Ordinance 3850, dated January 12, 2017.
w. The approximately 6.3 acres of land generally located northeast intersection of
Copperfield Parkway and Crescent Pointe Parkway - Ordinance 3859, dated February
9, 2017.
x. The approximately 11.3 acres of land generally located at the southeast intersection of
Earl Rudder Freeway South and Emerald Parkway – Ordinance 3875, dated April 27,
2017.
y. The approximately 232 acres of land generally located south of Rock Prairie Road -
Ordinance 3877, dated April 27, 2017.
z. The approximately 5.96 acres of land generally located in the northeast corner of
Associates Avenue and Harvey Road intersection. – Ordinance 3879, dated April 27,
2017.
aa. The approximately 4.74 acres of land generally located at the corner of Harvey
Mitchell Parkway South and Raymond Stotzer Parkway – by an ordinance dated May
11, 2017.
ORDINANCE NO.__________________ Page 5 of 7
bb. The approximately 3.2 acres of land generally located east of Copperfield Parkway and
south of Harvey Road. – by an ordinance dated May 11, 2017.
3. Concept Map Amendment:
a. Growth Area IV – Ordinance 3376, dated October 2011.
b. Growth Area V – Ordinance 3376, dated October 2011.
4. Thoroughfare Map Amendment:
a. Raintree Drive – Ordinance 3375, dated October 2011.
b. Birkdale Drive – Ordinance 3375, dated October 2011.
c. Corsair Circle – Ordinance 3375, dated October 2011.
d. Deacon Drive – Ordinance 3375, dated October 2011.
e. Dartmouth Drive – Ordinance 3375, dated October 2011.
f. Farm to Market 60 – Ordinance 3375, dated October 2011.
g. Southwest Parkway – Ordinance 3375, dated October 2011.
h. Cain Road extension –Ordinance 3639, dated February 26, 2015.
i. Update to Chapter 6 Maps- Ordinance 3729, dated December 10, 2015.
j. South College Station Mobility Study – Ordinance 3827, dated October 27, 2016.
k. Pavilion Avenue extension – by this ordinance dated May 11, 2017.
5. Bicycle, Pedestrian and Greenways Master Plan Amendment:
a. Cain Road extension – Ordinance 3639, dated February 26, 2015
b. Update to Maps 5.4 and 5.5- Ordinance 3729, dated December 10, 2015.
c. South College Station Mobility Study – Ordinance 3827, dated October 27, 2016.
d. Update to Maps 5.4 and 5.5 – Ordinance 3877, dated April 27, 2017.
D. General
1. Conflict. All parts of the College Station Comprehensive Plan and any amendments thereto
shall be harmonized where possible to give effect to all. Only in the event of an irreconcilable
conflict shall the later adopted ordinance prevail and then only to the extent necessary to avoid
such conflict. Ordinances adopted at the same city council meeting without reference to
another such ordinance shall be harmonized, if possible, so that effect may be given to each.
2. Purpose. The Comprehensive Plan is to be used as a guide for growth and development for the
entire City and its extra-territorial jurisdiction (“ETJ”). The College Station Comprehensive
Plan depicts generalized locations of proposed future land-uses, including thoroughfares,
bikeways, pedestrian ways, parks, greenways, and waterlines that are subject to modification
by the City to fit local conditions and budget constraints.
3. General nature of Future Land Use and Character. The College Station Comprehensive Plan,
in particular the Future Land Use and Character Map found in A.3 above and any adopted
amendments thereto, shall not be nor considered a zoning map, shall not constitute zoning
regulations or establish zoning boundaries and shall not be site or parcel specific but shall be
used to illustrate generalized locations.
4. General nature of College Station Comprehensive Plan. The College Station Comprehensive
Plan, including the Thoroughfare Plan, Bicycle, Pedestrian, and Greenways Master Plan,
Central College Station Neighborhood Plan, Water System Master Plan and any additions,
ORDINANCE NO.__________________ Page 6 of 7
amendments, master plans and subcategories thereto depict same in generalized terms
including future locations; and are subject to modifications by the City to fit local conditions,
budget constraints, cost participation, and right-of-way availability that warrant further
refinement as development occurs. Linear routes such as bikeways, greenways, thoroughfares,
pedestrian ways, waterlines and sewer lines that are a part of the College Station
Comprehensive Plan may be relocated by the City 1,000 feet from the locations shown in the
Plan without being considered an amendment thereto.
5. Reference. The term College Station Comprehensive Plan includes all of the above in its
entirety as if presented in full herein, and as same may from time to time be amended.”
ORDINANCE NO.__________________ Page 7 of 7
EXHIBIT “B”
That the “Comprehensive Plan of the City of College Station” is hereby amended by amending the
Thoroughfare Plan illustrated in “Map 6.6 Functional Classification and Context Class” of Chapter 6 –
Transportation to change the functional classification of the extension of Pavilion Avenue south of
Sebesta Road over to State Highway 6 from a Major Collector to a Minor Collector in the general location
as depicted as follows:
Urban
City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:117-0221 Name:UDO Amendment – Platting & Replatting within
Older Residential Subdivisions
Status:Type:Ordinance Agenda Ready
File created:In control:4/27/2017 City Council Regular
On agenda:Final action:5/11/2017
Title:Public Hearing, presentation, possible action, and discussion regarding an amendment to Unified
Development Ordinance Section 12-8.3.H.2, Platting and Replatting within Older Residential
Subdivisions.
Sponsors:Molly Hitchcock
Indexes:
Code sections:
Attachments:Current Language
Version One
Version Two
Ordinance (option 1).pdf
Ordinance (option 2).pdf
Action ByDate Action ResultVer.
Public Hearing,presentation,possible action,and discussion regarding an amendment to Unified
Development Ordinance Section 12-8.3.H.2,Platting and Replatting within Older Residential
Subdivisions.
Relationship to Strategic Goals:
·Good Governance
·Neighborhood Integrity
Recommendation(s):The Planning &Zoning Commission will consider this item on May 4th.Their
recommendation will be provided at the City Council meeting. Staff recommends approval.
Summary:This amendment to the Unified Development Ordinance corrects language from 2012 that
inadvertently allows lots as small as 5,000 square feet in older residential neighborhoods designated
as “Neighborhood Conservation”on the Land Use &Character Map.The “Platting and Replatting
within Older Residential Subdivisions”code section has existed in some form since 2002 to address
infill issues.The code language has been amended a number of times through the years -most
recently in 2012.Unfortunately,the 2012 amendment included language that created unintended
consequences.While the original language required newly-created lots within older residential
subdivisions to be at least 8,500 square feet in area,the language adopted in 2012 allows lots as
small as 5,000 square feet in certain circumstances.
The proposed ordinance language will clarify the original intent of Section 12-8.3.H.2 and restore
protection to our older residential neighborhoods.Two versions of the amendment are included for
your consideration.Version one simply clarifies the original intent of the ordinance.At the suggestion
College Station, TX Printed on 5/5/2017Page 1 of 2
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File #:17-0221,Version:1
your consideration.Version one simply clarifies the original intent of the ordinance.At the suggestion
of the Planning &Zoning Commission Chair,version two provides the Administrator with discretion in
the calculation of the average lot width to provide more consistency with the character of the
surrounding neighborhood.
Budget & Financial Summary: N/A
Legal Review: Yes
Attachments:
1.Existing Code Language
2.Proposed Code language (version one)
3.Proposed Code language (version two)
4.Ordinance
5.Ordinance with Neighborhood Character Considerations
College Station, TX Printed on 5/5/2017Page 2 of 2
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Current language
2. Platting and Replatting within Older Residential Subdivisions.
a. This section applies to a subdivision in which any portion of the proposed subdivision
meets all of the following criteria:
1) Such portion of the subdivision is currently zoned or developed for single-
family detached residential uses as of January 1, 2002 with the exception of NG -
1, NG-2, NG-3, NPO, and NCO zoning districts;
2) Such portion of the subdivision is part of a lot or building plot that was located
within the City limits when it was created on or prior to July 15, 1970.; and,
3) Such portion of the subdivision is designated as Neighborhood Conservation in
the Comprehensive Plan Future Land Use and Character Map.
b. In addition to the other provisions of this UDO, no plat or replat intended to provide for
the resubdivision of an existing lot or lots in a residential subdivision which meets the
above criteria may be approved unless:
1) The plat does not create an additional lot or building plot; or
2) A plat which does create an additional lot or building plot must meet or exceed the
average width of the lots along the street frontage for all of the lots in the block
including the subject lot(s) and contain at least eight thousand five hundred (8,500)
square feet of space for each dwelling unit.
For the purpose of this section, a lot shall be defined to include the lot, lots and/or portions
of lots that have been combined and used as a residential plot or building plot, as of July
15, 1970, exempting those lawfully platted or replatted after July 15, 1970.
c. It is the applicant's responsibility to provide documentation during the application
process regarding the original plat in which the lot was created and/or the configuration
and ownership documentation of the properties since July 15, 1970.
Version One
Formatted: Font: 14 pt
2. Platting and Replatting within Older Residential Subdivisions.
a. This section applies to a subdivision in which any portion of the proposed subdivision meets
all of the following criteria:
1) Such portion of the subdivision is currently zoned or developed for single -family
detached residential uses as of January 1, 2002 with the exception of NG -1, NG-2, NG-
3, NPO, and NCO zoning districts;
2) Such portion of the subdivision is part of a lot or building plot that was located within the
City limits when it was created on or prior to July 15, 1970.This also includes lots that
may have been vacated or replatted after July 15, 1970 but where the original plat
predates July 15, 1970; and,
3) Such portion of the subdivision is designated as Neighborhood Conservation in the
Comprehensive Plan Future Land Use and Character Map.
b. In addition to the other provisions of this UDO, no plat or replat intended to provide for the
resubdivision of an existing lot or lots in a residential subdivision which meets the above
criteria may be approved unless:
1) The plat does not create an additional lot or building plot; or
2) For a A proposed plat which does create an additional lot or lots, building plot must the
lot(s) must meet or exceed the average width of the lots along the street frontage for all
of the lots in the block, including the subject lot(s) and contain at least eight thousand
five hundred (8,500) square feet of space for each dwelling unit.
For the purpose of this section,determining the average lot width, a lot shall be defined
to include the lot, lots and/or portions of lots that have been combined and used as a
residential plot or building plot, as of July 15, 1970 ., exempting those lawfully platted or
replatted after July 15, 1970.
c. It is the applicant's responsibility to provide documentation during the application process
regarding the original plat in which the lot was created and/or the configuration and
ownership documentation of the properties since July 15, 1970.
Formatted: Indent: Left: 1.2"
Version Two
Formatted: Font: 14 pt
2. Platting and Replatting within Older Residential Subdivisions.
a. This section applies to a subdivision in which any portion of the proposed subdivision meets
all of the following criteria:
1) Such portion of the subdivision is currently zoned or developed for single -family
detached residential uses as of January 1, 2002 with the exception of NG -1, NG-2, NG-
3, NPO, and NCO zoning districts;
2) Such portion of the subdivision is part of a lot or building plot that was located within the
City limits when it was created on or prior to July 15, 1970.This also includes lots that
may have been vacated or replatted after July 15, 1970 but where the original plat
predates July 15, 1970; and,
3) Such portion of the subdivision is designated as Neighborhood Conservation in the
Comprehensive Plan Future Land Use and Character Map.
b. In addition to the other provisions of this UDO, no plat or replat intended to provide for the
resubdivision of an existing lot or lots in a residential subdivision which meets the above
criteria may be approved unless:
1) The plat does not create an additional lot or building plot; or
2) For a A proposed plat which does create an additional lot or lots, building plot must the
lot(s) must meet or exceed the average width of the lots along the street frontage for all
of the lots in the block, including the subject lot(s) and contain at least eight thousand
five hundred (8,500) square feet of space for each dwelling unit.
For the purpose of this section,determining the average lot width, a lot shall be defined
to include the lot, lots and/or portions of lots that have been combined and used as a
residential plot or building plot, as of July 15, 1970 ., exempting those lawfully platted or
replatted after July 15, 1970. The Administrator may include the lots on the opposing
blockface when calculating the average lot width if the lots are similar in character and
the Administrator may also exclude lots to the rear when said lots are part of another
subdivision or dissimilar in character.
c. It is the applicant's responsibility to provide documentation during the application process
regarding the original plat in which the lot was created and/or the configuration and
ownership documentation of the properties since July 15, 1970.
Formatted: Indent: Left: 1.2"
ORDINANCE NO. ____________
AN ORDINANCE AMENDING CHAPTER 12, “UNIFIED DEVELOPMENT ORDINANCE”,
SECTION 12-8.3.H.2, “PLATTING AND REPLATTING WITHIN OLDER RESIDENTIAL
SUBDIVISIONS”, OF THE CODE OF ORDINANCES OF THE CITY OF COLLEGE STATION,
TEXAS, BY AMENDING CERTAIN SECTIONS AS SET OUT BELOW; PROVIDING A
SEVERABILITY CLAUSE; DECLARING A PENALTY; AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS:
PART 1: That Chapter 12, “Unified Development Ordinance,” Section 12-8.3.H.2, “Platting and
Replatting within Older Residential Subdivisions,” of the Code of Ordinances of the City
of College Station, Texas, be amended as set out in Exhibit “A”, attached hereto and made
a part of this ordinance for all purposes.
PART 2: That if any provisions of any section of this ordinance shall be held to be void or
unconstitutional, such holding shall in no way affect the validity of the remaining provi-
sions or sections of this ordinance, which shall remain in full force and effect.
PART 3: That any person, firm, or corporation violating any of the provisions of this chapter shall
be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by a
fine of not less than Twenty-five Dollars ($25.00) nor more than Two Thousand Dollars
($2,000.00). Each day such violation shall continue or be permitted to continue, shall be
deemed a separate offense. Said Ordinance, being a penal ordinance, becomes effective
ten (10) days after its date of passage by the City Council, as provided by Section 35 of the
Charter of the City of College Station.
PASSED, ADOPTED and APPROVED this 11th day of May, 2017.
ATTEST: APPROVED:
_____________________________ _____________________________
City Secretary Mayor
APPROVED AS TO FORM:
_______________________________
City Attorney
ORDINANCE NO. ___________ Page 2 of 2
EXHIBIT “A”
That Chapter 12, “Unified Development Ordinance,” Section 12-8.3.H.2, “Platting and Replatting within
Older residential Subdivisions”, of the Code of Ordinances of the City of College Station, Texas, is hereby
amended to read as follows:
2. Platting and Replatting within Older Residential Subdivisions.
a. This section applies to a subdivision in which any portion of the proposed subdivision meets
all of the following criteria:
1) Such portion of the subdivision is currently zoned or developed for single -family
detached residential uses as of January 1, 2002 with the exception of NG -1, NG-2, NG-
3, NPO, and NCO zoning districts;
2) Such portion of the subdivision is part of a lot or building plot that was located within the
City limits when it was created on or prior to July 15, 1970.This also includes lots that
may have been vacated or replatted after July 15, 1970 but where the original plat
predates July 15, 1970; and,
3) Such portion of the subdivision is designated as Neighborhood Conservation in the
Comprehensive Plan Future Land Use and Character Map.
b. In addition to the other provisions of this UDO, no plat or replat intended to provide for the
resubdivision of an existing lot or lots in a residential subdivision which meets the above
criteria may be approved unless:
1) The plat does not create an additional lot or building plot; or
2) For a proposed plat which does create an additional lot or lots, the lot(s) must meet or
exceed the average width of the lots along the street frontage for all of the lots in the
block, including the subject lot(s) and contain at least eight thousand five hundred
(8,500) square feet of space for each dwelling unit.
For the purpose of determining the average lot width, a lot shall be defined to include
the lot, lots and/or portions of lots that have been combined and used as a residential
plot or building plot, as of July 15, 1970.
c. It is the applicant's responsibility to provide documentation during the application process
regarding the original plat in which the lot was created and/or the configuration and
ownership documentation of the properties since July 15, 1970.
ORDINANCE NO. ____________
AN ORDINANCE AMENDING CHAPTER 12, “UNIFIED DEVELOPMENT ORDINANCE”,
SECTION 12-8.3.H.2, “PLATTING AND REPLATTING WITHIN OLDER RESIDENTIAL
SUBDIVISIONS”, OF THE CODE OF ORDINANCES OF THE CITY OF COLLEGE STATION,
TEXAS, BY AMENDING CERTAIN SECTIONS AS SET OUT BELOW; PROVIDING A
SEVERABILITY CLAUSE; DECLARING A PENALTY; AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS:
PART 1: That Chapter 12, “Unified Development Ordinance,” Section 12-8.3.H.2, “Platting and
Replatting within Older Residential Subdivisions,” of the Code of Ordinances of the City
of College Station, Texas, be amended as set out in Exhibit “A”, attached hereto and made
a part of this ordinance for all purposes.
PART 2: That if any provisions of any section of this ordinance shall be held to be void or
unconstitutional, such holding shall in no way affect the validity of the remaining provi-
sions or sections of this ordinance, which shall remain in full force and effect.
PART 3: That any person, firm, or corporation violating any of the provisions of this chapter shall
be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by a
fine of not less than Twenty-five Dollars ($25.00) nor more than Two Thousand Dollars
($2,000.00). Each day such violation shall continue or be permitted to continue, shall be
deemed a separate offense. Said Ordinance, being a penal ordinance, becomes effective ten
(10) days after its date of passage by the City Council, as provided by Section 35 of the
Charter of the City of College Station.
PASSED, ADOPTED and APPROVED this 11th day of May, 2017.
ATTEST: APPROVED:
_____________________________ _____________________________
City Secretary Mayor
APPROVED AS TO FORM:
_______________________________
City Attorney
ORDINANCE NO. ___________ Page 2 of 2
EXHIBIT “A”
That Chapter 12, “Unified Development Ordinance,” Section 12-8.3.H.2, “Platting and Replatting within
Older residential Subdivisions”, of the Code of Ordinances of the City of College Station, Texas, is hereby
amended to read as follows:
2. Platting and Replatting within Older Residential Subdivisions.
a. This section applies to a subdivision in which any portion of the proposed subdivision meets
all of the following criteria:
1) Such portion of the subdivision is currently zoned or developed for single -family
detached residential uses as of January 1, 2002 with the exception of NG -1, NG-2, NG-
3, NPO, and NCO zoning districts;
2) Such portion of the subdivision is part of a lot or building plot that was located within the
City limits when it was created on or prior to July 15, 1970.This also includes lots that
may have been vacated or replatted after July 15, 1970 but where the original plat
predates July 15, 1970; and,
3) Such portion of the subdivision is designated as Neighborhood Conservation in the
Comprehensive Plan Future Land Use and Character Map.
b. In addition to the other provisions of this UDO, no plat or replat intended to provide for the
resubdivision of an existing lot or lots in a residential subdivision which meets the above
criteria may be approved unless:
1) The plat does not create an additional lot or building plot; or
2) For a proposed plat which does create an additional lot or lots, the lot(s) must meet or
exceed the average width of the lots along the street frontage for all of the lots in the
block, including the subject lot(s)and contain at least eight thousand five hundred
(8,500) square feet of space for each dwelling unit.
For the purpose of determining the average lot width, a lot shall be defined to include
the lot, lots and/or portions of lots that have been combined and used as a residential
plot or building plot, as of July 15, 1970. The Administrator may include the lots on the
opposing blockface when calculating the average lot width if the lots are similar in
character and the Administrator may exclude lots to the rear when said lots are part of
another subdivision or dissimilar in character.
c. It is the applicant's responsibility to provide documentation during the application process
regarding the original plat in which the lot was created and/or the configuration and
ownership documentation of the properties since July 15, 1970.
City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:117-0222 Name:Certificates of Obligation 2017
Status:Type:Presentation Agenda Ready
File created:In control:4/28/2017 City Council Regular
On agenda:Final action:5/11/2017
Title:Presentation, possible action, and discussion on an ordinance authorizing the issuance of up to
$70,000,000 in principal amount of “City of College Station, Texas Certificates of Obligation, Series
2017”; delegating the authority to certain City Officials to execute certain documents relating to the
sale of the certificates; approving and authorizing instruments and procedures relating to the
certificates; and enacting other provisions relating to the subject.
Sponsors:Mary Ellen Leonard
Indexes:
Code sections:
Attachments:Ordinance (CO) (ver 1)
Action ByDate Action ResultVer.
Presentation, possible action, and discussion on an ordinance authorizing the issuance of up to
$70,000,000 in principal amount of “City of College Station, Texas Certificates of Obligation, Series
2017”; delegating the authority to certain City Officials to execute certain documents relating to the
sale of the certificates; approving and authorizing instruments and procedures relating to the
certificates; and enacting other provisions relating to the subject.
Relationship to Strategic Goals:Financially Sustainable City,and Providing Core Services and
Infrastructure.
Recommendation(s):Council move to approve the attached ordinance authorizing the issuance
of Certificates of Obligation,Series 2017;delegating the authority to certain City Officials to execute
certain documents relating to the sale of the certificates;approving and authorizing instruments and
procedures relating to the certificates; and enacting other provisions relating to the subject.
Summary:The City Council is authorized to approve the issuance of Certificates of Obligation
(CO’s)after approving a resolution directing notice to be published of the intent to issue the CO’s.
On March 23,2017 Council approved a resolution directing staff to advertise the issuance of CO’s.
On March 30th and April 6th such notice was published.
The City of College Station typically issues debt to fund various capital projects identified and
approved as a part of the annual budget.The City primarily uses three types of debt instruments to
fulfill those requirements:
1.General Obligation Bonds (GOB’s)are based on the full faith and credit of the City and are
paid primarily through the debt service portion of the ad valorem tax rate.GOBs are
authorized by the voters and therefore the notice is provided in the election process.
College Station, TX Printed on 5/5/2017Page 1 of 2
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File #:17-0222,Version:1
2.Utility Revenue Bonds (URB’s)are backed by the revenues of the City's various utilities
and are issued as a business activity.These are typically only issued for utility capital
projects.
3.Certificates of Obligation (CO’s)normally include at least one additional revenue stream
such as utility revenues,but are considered to be much like GOBs and therefore normally
receive a rating similar to GOB’s.Our policy for issuing CO's allows more flexibility in their
issue than GOB’s,particularly when other revenues are anticipated to assist in debt
service.
It is at the recommendation of the City’s Financial Advisor,Mr.Drew Masterson with First Southwest
and Company,that the City issue Certificates of Obligation for utility projects rather than Utility
Revenue Bonds.
This particular issue will provide resources for street,police station construction,information
technology, electric, and water improvements; and debt issuance costs.
If this ordinance is approved,the City Council will be delegating to the Mayor,the City
Manager and the Assistant City Manager the authority to effect the sale of the certificates
through May 11, 2018.
Budget &Financial Summary:Staff reviewed the impact of the Certificates on the City’s ability to
meet debt service requirements and the effect they may have on the ad valorem tax rate.The impact
on the utility rates will be reviewed as part of the financial forecast and FY18 budget.Debt for the
construction of the Police Station will require a tax increase in FY18.
Attachments:
1.Ordinance
Preliminary Official Statement
College Station, TX Printed on 5/5/2017Page 2 of 2
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ORDINANCE NO. 2017-
AUTHORIZING THE ISSUANCE OF "CITY OF COLLEGE STATION,
TEXAS CERTIFICATES OF OBLIGATION, SERIES 2017"; DELEGATING
THE AUTHORITY TO CERTAIN CITY OFFICIALS TO EXECUTE
CERTAIN DOCUMENTS RELATING TO THE SALE OF THE
CERTIFICATES; APPROVING AND AUTHORIZING INSTRUMENTS AND
PROCEDURES RELATING TO SAID CERTIFICATES; AND ENACTING
OTHER PROVISIONS RELATING TO THE SUBJECT
WHEREAS, on March 23, 2017, the City Council of the City of College Station (the
"City") passed a resolution authorizing and directing notice of its intention to issue the
Certificates of Obligation herein authorized, to be published in a newspaper as required by
Section 271.049 of the Texas Local Government Code;
WHEREAS, said notice was published in the Bryan-College Station Eagle, a
"newspaper" of the type described in Section 2051.044, Texas Government Code, as required by
said Section 271.049 of the Texas Local Government Code, on March 30, 2017 and April 6,
2017;
WHEREAS, said notice provided that the ordinance authorizing the Certificates of
Obligation may authorize an authorized officer of the City to effect the sale and delivery of the
Certificates of Obligation on a date or dates subsequent to the adoption of the ordinance;
WHEREAS, no petition, signed by at least 5% of the qualified electors of said City as
permitted by said Section 271.049 of the Texas Local Government Code protesting the issuance
of such Certificates of Obligation, has been filed;
WHEREAS, the City is an "Issuer" within the meaning of Section 1371.001(4)(P), Texas
Government Code, having (i) a principal amount of at least $100 million in outstanding long-
term indebtedness, in long-term indebtedness proposed to be issued, or a combination of
outstanding or proposed long-term indebtedness and (ii) some amount of long-term indebtedness
outstanding or proposed to be issued that is rated in one of the four highest rating categories for
long-term debt instruments by a nationally recognized rating agency for municipal securities,
without regard to the effect of any credit agreement or other form of credit enhancement entered
into in connection with the obligation;
WHEREAS, the Certificates of Obligation hereinafter authorized are to be issued and
delivered pursuant to Subchapter C of Chapter 271 of the Texas Local Government Code and
Chapter 1371, Texas Government Code and the City's Home Rule Charter;
WHEREAS, during the preceding three years, the City has not submitted a bond
proposition to authorize the issuance of bonds for the same purpose for which the Certificates of
Obligation are hereby being issued and which proposition was disapproved by voters; and
2
WHEREAS, it is officially found, determined, and declared that the meeting at which this
Ordinance has been adopted was open to the public and public notice of the time, place and
subject matter of the public business to be considered and acted upon at said meeting, including
this Ordinance, was given, all as required by the applicable provisions of Texas Government
Code, Chapter 551;
THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
COLLEGE STATION, TEXAS:
Section 1. DEFINITIONS; AUTHORIZATION OF CERTIFICATES OF
OBLIGATION.
(a) Definitions. Terms not otherwise defined herein shall have the following
meanings.
(i) The term "Authorized Denomination" shall mean a denomination of
$5,000 of principal amount of a Certificate or any integral multiple thereof.
(ii) The term "Business Day" means any day other than a Saturday, Sunday, a
legal holiday, or a day on which banking institutions in the City are, authorized by law or
executive order to close.
(iii) The term "Certificates" and "Certificates of Obligation" shall mean the
City of College Station, Texas Certificates of Obligation, Series 2017, authorized to be
issued and delivered by this Ordinance.
(iv) The term "MSRB" means the Municipal Securities Rulemaking Board.
(v) The term "Pricing Certificate" means a certificate of the Pricing Officer
setting forth the terms of sale of the Certificates including the method of sale, principal
amount, maturity dates, interest payment dates, dated date, interest rates, yields,
redemption provisions, and other matters related to the sale of the Certificates.
(vi) The term "Pricing Officer" means the Mayor, the City Manager and the
Assistant City Manager (Jeff Kersten) of the City (each the "Pricing Officer") each of
whom is independently authorized to finalize the terms of sale of the Certificates by
execution of the Pricing Certificate.
(vii) The term "Purchaser" means (i) if the Certificates are sold by negotiated
sale, the underwriter or underwriting syndicate selected by the Pricing Officer, or (ii) if
the Certificates are sold by competitive sale by soliciting public bids, the underwriter or
underwriting syndicate awarded the Certificates by the Pricing Officer.
(viii) The term "Rule" means SEC Rule 15c2-12 (17 C.F.R. § 240.15C2-12), as
amended from time to time.
(ix) The term "SEC" means the United States Securities and Exchange
Commission.
3
(x) The term "Surplus Revenues" shall mean those revenues from the
operation of the City's combined municipal electric light and power, waterworks and
sewer system remaining after payment of all operation and maintenance expenses thereof
and other obligations heretofore or hereafter incurred to which such revenues have been
or shall be encumbered by a lien on and pledge of such revenues superior to the lien on
and pledge of such revenues to the Certificates.
(b) The City's Certificates of Obligation, to be designated the "City of College
Station, Texas Certificates of Obligation, Series 2017", are hereby authorized to be issued and
delivered in the principal amount not to exceed $70,000,000 for the following public purposes:
(i) constructing, improving and extending streets, roads and pedestrian facilities including related
signalization, drainage, irrigation, landscaping, lighting and signage; (ii) constructing and
equipping a new police station; (iii) purchasing and installing technology improvements
including new electronic storage equipment for the City and fiber optic infrastructure for use by
the City; (iv) purchasing public safety radios and radio system equipment related thereto; (v)
purchasing self-contained breathing apparatuses and related equipment for the fire department;
(vi) designing and constructing City gateway signage; (vii) designing, constructing, equipping
and installing park and recreation equipment and improvements including rehabilitating and
improving aquatic facilities, playground improvements and equipment, park infrastructure
improvements, upgrades and rehabilitation; (viii) constructing improvements and extensions to
the City's combined waterworks, sewer and electric systems including distribution, transmission,
system lines and wells; and (ix) the payment of fiscal, engineering and legal fees incurred in
connection therewith and payment of the costs of issuance of the Certificates.
Section 2. DELEGATION TO PRICING OFFICER.
(a) As authorized by Section 1371.053, Texas Government Code, each Pricing
Officer is hereby authorized to act individually and severally on behalf of the City in selling and
delivering the Certificates, carrying out the other procedures specified in this Ordinance,
including, determining the date of the Certificates, any additional or different designation or title
by which the Certificates shall be known, whether the Certificate shall be sold and delivered in
one or more series and the date and sale and delivery of each such series, the price at which the
Certificates will be sold, the years in which the Certificates will mature, the principal amount to
mature in each of such years, the rate of interest to be borne by each such maturity, the interest
payment and record dates, the price and terms upon and at which the Certificates shall be subject
to redemption prior to maturity at the option of the City, as well as any mandatory sinking fund
redemption provisions, and all other matters relating to the issuance, sale, and delivery of the
Certificates and obtaining municipal insurance for all or any portion of the Certificates and
providing for the terms and provisions thereof applicable to the Certificates, all of which shall be
specified in the Pricing Certificate; provided that:
(i) the aggregate principal amount of the Certificates shall not exceed
$70,000,000;
(ii) the true interest cost of the Certificates shall not exceed 4.000% per
annum;
4
(iii) the final maturity of the Certificates shall not exceed February 15, 2037;
(iv) the delegation made hereby shall expire if not exercised by the Pricing
Officer on or prior to May 11, 2018; and
(v) on or prior to delivery, the Certificates shall be rated by a nationally
recognized rating agency for municipal securities in one of the four highest categories for
long-term obligations.
(b) In establishing the aggregate principal amount of the Certificates, the Pricing
Officer shall establish an amount that, when combined with premium used for purposes other
than the payment of costs of issuance, does not exceed the amount authorized in Subsection (a)
hereof, which shall be sufficient in amount to provide for the purposes for which the Certificates
are authorized and to pay costs of issuing the Certificates. The Certificates shall be sold with and
subject to such terms as set forth in the Pricing Certificate.
(c) The Certificates may be sold by public offering (either through a negotiated or
competitive offering) and the Pricing Certificate shall so state, and the Pricing Certificate may
conform this Ordinance to such method of sale, including the provisions hereof that pertain to the
undertaking of the Issuer in accordance with the Rule.
(d) The City Council hereby determines that the delegation of the authority to the
Pricing Officer to approve the final terms of the Certificates as set forth in this Ordinance is, and
the decisions made by the Pricing Officer pursuant to such delegated authority and incorporated
into the Pricing Certificate are required to be, in the Issuer's best interests, and the Pricing
Officer is hereby authorized to make and include in the Pricing Certificate a finding to that
effect.
Section 3. CHARACTERISTICS OF THE CERTIFICATES. (a) The City shall keep or
cause to be kept at the corporate trust office in Dallas, Texas (the "Designated Trust Office") of
The Bank of New York Mellon Trust Company, N.A., or such other bank, trust company,
financial institution, or other agency named by the Pricing Officer or in accordance with the
provisions of (g) below (the "Paying Agent/Registrar"), books or records for the registration and
transfer of the Certificates (the "Registration Books"), and the City hereby appoints the Paying
Agent/Registrar as its registrar and transfer agent to keep such books or records and make such
transfers and registrations under such reasonable regulations as the City and the Paying
Agent/Registrar may prescribe; and the Paying Agent/Registrar shall make such transfers and
registrations as herein provided. It shall be the duty of the Paying Agent/Registrar to obtain from
the registered owner and record in the Registration Books the address of the registered owner of
each Certificate to which payments with respect to the Certificates shall be mailed, as herein
provided. The City or its designee shall have the right to inspect the Registration Books during
regular business hours of the Paying Agent/Registrar at its Designated Trust Office, but
otherwise the Paying Agent/Registrar shall keep the Registration Books confidential and, unless
otherwise required by law, shall not permit their inspection by any other entity. Registration of
each Certificate may be transferred in the Registration Books only upon presentation and
surrender thereof to the Paying Agent/Registrar at its Designated Trust Office for transfer of
registration and cancellation, together with proper written instruments of assignment, in form and
5
with guarantee of signatures satisfactory to the Paying Agent/Registrar, evidencing the
assignment of such Certificate, or any portion thereof in any Authorized Denomination, to the
assignee or assignees thereof, and the right of such assignee or assignees to have such Certificate
or any such portion thereof registered in the name of such assignee or assignees. Upon the
assignment and transfer of any Certificate or any portion thereof, a new substitute certificate or
certificates shall be issued in exchange therefor in the manner herein provided.
(b) The entity in whose name any Certificate shall be registered in the Registration
Books at any time shall be treated as the absolute owner thereof for all purposes of this
Ordinance, whether or not such Certificate shall be overdue, and the City and the Paying
Agent/Registrar shall not be affected by any notice to the contrary; and payment of, or on
account of, the principal of, premium, if any, and interest on any such certificate shall be made
only to such registered owner. All such payments shall be valid and effectual to satisfy and
discharge the liability upon such certificate to the extent of the sum or sums so paid.
(c) The City hereby further appoints the Paying Agent/Registrar to act as the paying
agent for paying the principal of and interest on the Certificates, and to act as its agent to
exchange or replace Certificates, all as provided in this Ordinance. The Paying Agent/Registrar
shall keep proper records of all payments made by the City and the Paying Agent/Registrar with
respect to the Certificates, and of all exchanges thereof, and all replacements thereof, as provided
in this Ordinance.
(d) Each Certificate may be exchanged for fully registered certificates in the manner
set forth herein. Each Certificate issued and delivered pursuant to this Ordinance may, upon
surrender thereof at the Designated Trust Office of the Paying Agent/Registrar, together with a
written request therefor duly executed by the registered owner or the assignee or assignees
thereof, or its or their duly authorized attorneys or representatives, with guarantee of signatures
satisfactory to the Paying Agent/Registrar, at the option of the registered owner or such assignee
or assignees, as appropriate, be exchanged for fully registered Certificates, without interest
coupons, in the form prescribed in the FORM OF CERTIFICATE, in an Authorized
Denomination (subject to the requirement hereinafter stated that each substitute Certificate shall
have a single stated maturity date), as requested in writing by such registered owner or such
assignee or assignees, in an aggregate principal amount equal to the principal amount of any
Certificate or Certificates so surrendered, and payable to the appropriate registered owner,
assignee, or assignees, as the case may be. If any Certificate or portion thereof is assigned and
transferred, each Certificate issued in exchange therefor shall have the same principal maturity
date and bear interest at the same rate as the Certificate for which it is being exchanged. Each
substitute Certificate shall bear a letter and/or number to distinguish it from each other
Certificate. The Paying Agent/Registrar shall exchange or replace Certificates as provided
herein, and each fully registered Certificate or Certificates delivered in exchange for or
replacement of any Certificate or portion thereof as permitted or required by any provision of
this Ordinance shall constitute one of the Certificates for all purposes of this Ordinance, and may
again be exchanged or replaced. It is specifically provided, however, that any Certificate
delivered in exchange for or replacement of another Certificate prior to the first scheduled
interest payment date on the Certificates (as stated on the face thereof) shall be dated the same
date as such Certificate, but each substitute Certificate so delivered on or after such first
scheduled interest payment date shall be dated as of the interest payment date preceding the date
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on which such substitute Certificate is delivered, unless such substitute Certificate is delivered on
an interest payment date, in which case it shall be dated as of such date of delivery; provided,
however, that if at the time of delivery of any substitute Certificate the interest on the Certificate
for which it is being exchanged has not been paid, then such substitute Certificate shall be dated
as of the date to which such interest has been paid in full. On each substitute Certificate issued
in exchange for or replacement of any Certificate or Certificates issued under this Ordinance
there shall be printed thereon a Paying Agent/Registrar's Authentication Certificate, in the form
hereinafter set forth in the FORM OF CERTIFICATE (the "Authentication Certificate"). An
authorized representative of the Paying Agent/Registrar shall, before the delivery of any such
substitute Certificate, date such substitute Certificate in the manner set forth above, and manually
sign and date the Authentication Certificate, and no such substitute Certificate shall be deemed to
be issued or outstanding unless the Authentication Certificate is so executed. The Paying
Agent/Registrar promptly shall cancel all Certificates surrendered for exchange or replacement.
No additional ordinances, orders, or resolutions need be passed or adopted by the City Council or
any other body or person so as to accomplish the foregoing exchange or replacement of any
Certificates or portion thereof, and the Paying Agent/Registrar shall provide for the printing,
execution, and delivery of the substitute Certificate in the manner prescribed herein. Pursuant to
Chapter 1206, Texas Government Code, the duty of exchange or replacement of any Certificates
as aforesaid is hereby imposed upon the Paying Agent/Registrar, and, upon the execution of
Authentication Certificate, the exchanged or replaced Certificate shall be valid, incontestable,
and enforceable in the same manner and with the same effect as the Certificates which originally
were delivered pursuant to this Ordinance, approved by the Attorney General, and registered by
the Comptroller of Public Accounts. Neither the City nor the Paying Agent/Registrar shall be
required to transfer or exchange any Certificate so selected for redemption, in whole or in part,
within 45 calendar days of the date fixed for redemption; provided, however, such limitation of
transfer shall not be applicable to an exchange by the registered owner of the uncalled principal
of a Certificate.
(e) All Certificates issued in exchange or replacement of any other Certificate or
portion thereof, (i) shall be issued in fully registered form, without interest coupons, with the
principal of and interest on such Certificates to be payable only to the registered owners thereof,
(ii) may be redeemed prior to their scheduled maturities, (iii) may be transferred and assigned,
(iv) may be exchanged for other Certificates, (v) shall have the characteristics, (vi) shall be
signed and sealed, and (vii) the principal of and interest on the Certificates shall be payable, all
as provided, and in the manner required or indicated, in the FORM OF CERTIFICATE.
(f) The City shall pay the Paying Agent/Registrar's reasonable and customary fees
and charges for making transfers of Certificates, but the registered owner of any Certificate
requesting such transfer shall pay any taxes or other governmental charges required to be paid
with respect thereto. The registered owner of any Certificates requesting any exchange shall pay
the Paying Agent/Registrar's reasonable and standard or customary fees and charges for
exchanging any such certificate or portion thereof, together with any taxes or governmental
charges required to be paid with respect thereto, all as a condition precedent to the exercise of
such privilege of exchange, except, however, that in the case of the exchange of an assigned and
transferred Certificate or Certificates or any portion or portions thereof in an Authorized
Denomination, as provided in this Ordinance, such fees and charges will be paid by the City. In
addition, the City hereby covenants with the registered owners of the Certificates that it will (i)
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pay the reasonable and standard or customary fees and charges of the Paying Agent/Registrar for
its services with respect to the payment of the principal of and interest on Certificates, when due,
and (ii) pay the fees and charges of the Paying Agent/Registrar for services with respect to the
transfer or registration of Certificates solely to the extent above provided, and with respect to the
exchange of Certificates solely to the extent above provided.
(g) The City covenants with the registered owners of the Certificates that at all times
while the Certificates are outstanding the City will provide a competent and legally qualified
bank, trust company, financial institution, or other agency to act as and perform the services of
Paying Agent/Registrar for the Certificates under this Ordinance, and that the Paying
Agent/Registrar will be one entity. The City reserves the right to, and may, at its option, change
the Paying Agent/Registrar upon not less than sixty days written notice to the Paying
Agent/Registrar. In the event that the entity at any time acting as Paying Agent/Registrar (or its
successor by merger, acquisition, or other method) should resign or otherwise cease to act as
such, the City covenants that it will promptly appoint a competent and legally qualified national
or state banking institution which shall be a corporation organized and doing business under the
laws of the United States of America or of any state, authorized under such laws to exercise trust
powers, subject to supervision or examination by federal or state authority, and whose
qualifications substantially are similar to the previous Paying Agent/Registrar to act as Paying
Agent/Registrar under this Ordinance. Upon any change in the Paying Agent/Registrar, the
previous Paying Agent/Registrar promptly shall transfer and deliver the Registration Books (or a
copy thereof), along with all other pertinent books and records relating to the Certificates, to the
new Paying Agent/Registrar designated and appointed by the City. Upon any change in the
Paying Agent/Registrar, the City promptly will cause a written notice thereof to be sent by the
new Paying Agent/Registrar to each registered owner of the Certificates, by United States mail,
first-class postage prepaid, which notice also shall give the address of the new Paying
Agent/Registrar. By accepting the position and performing as such, each Paying Agent/Registrar
shall be deemed to have agreed to the provisions of this Ordinance, and a certified copy of this
Ordinance shall be delivered to each Paying Agent/Registrar.
Section 4. FORM OF CERTIFICATES. The form of the Certificates, including the form
of the Authentication Certificate, the form of Assignment and the form of Registration
Certificate of the Comptroller of Public Accounts of the State of Texas to be attached to the
Certificates initially issued and delivered pursuant to this Ordinance, shall be in substantially the
form as set forth in Exhibit A to this Ordinance, shall be numbered consecutively from R-1
upward, with the Initial Certificate being numbered T-1, with such appropriate variations,
omissions, or insertions as are permitted or required by this Ordinance and with the FORM OF
CERTIFICATE to be modified pursuant to, and completed with information set forth in the
Pricing Certificate. The FORM OF CERTIFICATE as it appears in Exhibit A shall be
completed, amended and modified by Bond Counsel to incorporate the information set forth in
the Pricing Certificate but it is not required for the FORM OF CERTIFICATE to reproduced as
an exhibit to the Pricing Certificate. The printer of the Certificates is hereby authorized to print
on the Certificates (i) the form of bond counsel's opinion relating to the Certificates, and (ii) an
appropriate statement of insurance furnished by a municipal bond insurance company providing
municipal bond insurance, if any, covering all or any part of the Certificates.
Section 5. RESERVED.
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Section 6. LEVY OF TAX; INTEREST AND SINKING FUND; REVENUE PLEDGE.
(a) That a special fund or account, to be designated the "City of College Station,
Texas Series 2017 Certificate of Obligation Interest and Sinking Fund" (the "Interest and Sinking
Fund") is hereby created and shall be established and maintained by the City. The Interest and
Sinking Fund shall be kept separate and apart from all other funds and accounts of the City, and
shall be used only for paying the interest on and principal of the Certificates. All ad valorem
taxes levied and collected for and on account of the Certificates shall be deposited, as collected,
to the credit of the Interest and Sinking Fund. During each year while any of the Certificates are
outstanding and unpaid, the governing body of the City shall compute and ascertain the rate and
amount of ad valorem tax, based on the latest approved tax rolls of the City, with full allowances
being made for tax delinquencies and the cost of tax collections, which will be sufficient to raise
and produce the money required to pay the interest on the Certificates as such interest comes
due, and to provide a sinking fund to pay the principal (including mandatory sinking fund
redemption payments, if any) of the Certificates as such principal matures or comes due through
operation of the mandatory sinking fund redemption, if any, but never less than 2% of the
original amount of the Certificates as a sinking fund each year. The rate and amount of ad
valorem tax is hereby ordered to be levied against all taxable property in the City for each year
while any of the Certificates is outstanding and unpaid, and the ad valorem tax shall be assessed
and collected each such year and deposited to the credit of the Interest and Sinking Fund. Ad
valorem taxes necessary to pay the interest on and principal of the Certificates, as such interest
comes due and such principal matures, are hereby pledged for such payment, within the limit
prescribed by law.
(b) That the Certificates are additionally secured by and shall be payable from the
Surplus Revenues. The Surplus Revenues are pledged by the City pursuant to authority of
Chapter 1502, Texas Government Code, specifically Section 1502.058 thereof. The City shall
promptly deposit the Surplus Revenues upon their receipt to the credit of the Interest and Sinking
Fund created pursuant to Section 6, to pay the principal and interest on the Certificates. The
amount of Surplus Revenues pledged to the payment of the Certificates shall not exceed $1,000.
If Surplus Revenues or any other lawfully available revenues, income or resources of the City are
deposited or budgeted to be deposited in the Interest and Sinking Fund in advance of the time
when ad valorem taxes are scheduled to be levied for any year, then the amount of taxes that
otherwise would have been required to be levied pursuant to Section 6 may be reduced to the
extent and by the amount of the Surplus Revenues or other lawfully available revenues, income
or resources then on deposit or budgeted to be deposited to the credit of the Interest and Sinking
Fund.
Section 7. TRANSFER. That the City shall do any and all things necessary to
accomplish the transfer of monies to the Interest and Sinking Fund of this issue in ample time to
pay such items of principal and interest due on the Certificates.
Section 8. SECURITY FOR FUNDS. That the Interest and Sinking Fund created by this
Ordinance shall be secured in the manner and to the fullest extent permitted or required by law
for the security of public funds, and such Interest and Sinking Fund shall be used only for the
purposes and in the manner permitted or required by this Ordinance.
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Section 9. DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED
CERTIFICATES. (a) Replacement Certificates. That in the event any outstanding Certificate is
damaged, mutilated, lost, stolen, or destroyed, the Paying Agent/Registrar shall cause to be
printed, executed, and delivered, a new Certificate of the same principal amount, maturity, and
interest rate, as the damaged, mutilated, lost, stolen, or destroyed Certificate, in replacement for
such Certificate in the manner hereinafter provided.
(b) Application for Replacement Certificates. That application for replacement of
damaged, mutilated, lost, stolen, or destroyed Certificates shall be made by the registered owner
thereof to the Paying Agent/Registrar. In every case of loss, theft, or destruction of a Certificate,
the registered owner applying for a replacement Certificate shall furnish to the City and to the
Paying Agent/Registrar such security or indemnity as may be required by them to save each of
them harmless from any loss or damage with respect thereto. Also, in every case of loss, theft, or
destruction of a Certificate, the registered owner shall furnish to the City and to the Paying
Agent/Registrar evidence to their satisfaction of the loss, theft, or destruction of such Certificate,
as the case may be. In every case of damage or mutilation of a Certificate, the registered owner
shall surrender to the Paying Agent/Registrar for cancellation the Certificate so damaged or
mutilated.
(c) No Default Occurred. That notwithstanding the foregoing provisions of this
Section, in the event any such Certificate shall have matured, and no default has occurred which
is then continuing in the payment of the principal of, redemption premium, if any, or interest on
the Certificate, the City may authorize the payment of the same (without surrender thereof except
in the case of a damaged or mutilated Certificate) instead of issuing a replacement certificate,
provided security or indemnity is furnished as above provided in this Section.
(d) Charge for Issuing Replacement Certificates. That prior to the issuance of any
replacement Certificate, the Paying Agent/Registrar shall charge the registered owner of such
Certificate with all legal, printing, and other expenses in connection therewith. Every
replacement Certificate issued pursuant to the provisions of this Section by virtue of the fact that
any Certificate is lost, stolen, or destroyed shall constitute a contractual obligation of the City
whether or not the lost, stolen, or destroyed Certificate shall be found at any time, or be
enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and
proportionately with any and all other Certificates duly issued under this Ordinance.
(e) Authority for Issuing Replacement Certificates. That in accordance with Section
1201.067, Texas Government Code, this Section of this Ordinance shall constitute authority for
the issuance of any such replacement Certificate without necessity of further action by the City
or any other body or person, and the duty of the replacement of such Certificates is hereby
authorized and imposed upon the Paying Agent/Registrar, and the Paying Agent/Registrar shall
authenticate and deliver such Certificates in the form and manner and with the effect, as provided
in Section 5(d) of this Ordinance for Certificates issued in conversion and exchange of other
Certificates.
Section 10. FEDERAL INCOME TAX MATTERS. That the City covenants to refrain
from any action which would adversely affect, or to take such action as to ensure, the treatment
of the Certificates as obligations described in section 103 of the Code, the interest on which is
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not includable in the "gross income" of the holder for purposes of federal income taxation. In
furtherance thereof, the City covenants as follows:
(a) to take any action to assure that no more than 10 percent of the proceeds of the
Certificates (less amounts deposited to a reserve fund, if any) are used for any "private business
use," as defined in section 141(b)(6) of the Code or, if more than 10 percent of the proceeds are
so used, that amounts, whether or not received by the City, with respect to such private business
use, do not, under the terms of this Ordinance or any underlying arrangement, directly or
indirectly, secure or provide for the payment of more than 10 percent of the debt service on the
Certificates, in contravention of section 141(b)(2) of the Code;
(b) to take any action to assure that in the event that the "private business use"
described in subsection (a) hereof exceeds five percent of the proceeds of the Certificates (less
amounts deposited into a reserve fund, if any) then the amount in excess of five percent is used
for a "private business use" which is "related" and not "disproportionate", within the meaning of
section 141(b)(3) of the Code, to the governmental use;
(c) to take any action to assure that no amount which is greater than the lesser of
$5,000,000, or five percent of the proceeds of the Certificates (less amounts deposited into a
reserve fund, if any) is directly or indirectly used to finance loans to persons, other than state or
local governmental units, in contravention of section 141(c) of the Code;
(d) to refrain from taking any action which would otherwise result in the Certificates
being treated as "private activity bonds" within the meaning of section 141(b) of the Code;
(e) to refrain from taking any action that would result in the Certificates being
"federally guaranteed" within the meaning of section 149(b) of the Code;
(f) to refrain from using any portion of the proceeds of the Certificates, directly or
indirectly, to acquire or to replace funds which were used, directly or indirectly, to acquire
investment property (as defined in section 148(b)(2) of the Code) which produces a materially
higher yield over the term of the Certificates, other than investment property acquired with –
(1) proceeds of the Certificates invested for a reasonable temporary period of
three years or less until such proceeds are needed for the purpose for which the
Certificates are issued,
(2) amounts invested in a bona fide debt service fund, within the meaning of
section 1.148-1(b) of the Treasury Regulations, and
(3) amounts deposited in any reasonably required reserve or replacement fund
to the extent such amounts do not exceed 10 percent of the proceeds of the Certificates;
(g) to otherwise restrict the use of the proceeds of the Certificates or amounts treated
as proceeds of the Certificates, as may be necessary, so that the Certificates do not otherwise
contravene the requirements of section 148 of the Code (relating to arbitrage) and, to the extent
applicable, section 149(d) of the Code (relating to advance refundings); and
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(h) to pay to the United States of America at least once during each five-year period
(beginning on the date of delivery of the Certificates) an amount that is at least equal to 90
percent of the "Excess Earnings," within the meaning of section 148(f) of the Code and to pay to
the United States of America, not later than 60 days after the Certificates have been paid in full,
100 percent of the amount then required to be paid as a result of Excess Earnings under section
148(f) of the Code.
For purposes of the foregoing (a) and (b), the City understands that the term "proceeds"
includes "disposition proceeds" as defined in the Treasury Regulations and, in the case of
refunding bonds, transferred proceeds (if any) and proceeds of the refunded bonds expended
prior to the date of issuance of the Certificates. It is the understanding of the City that the
covenants contained herein are intended to assure compliance with the Code and any regulations
or rulings promulgated by the U.S. Department of the Treasury pursuant thereto. In the event
that regulations or rulings are hereafter promulgated which modify or expand provisions of the
Code, as applicable to the Certificates, the City will not be required to comply with any covenant
contained herein to the extent that such failure to comply, in the opinion of nationally-recognized
bond counsel, will not adversely affect the exemption from federal income taxation of interest on
the Certificates under section 103 of the Code. In the event that regulations or rulings are
hereafter promulgated which impose additional requirements which are applicable to the
Certificates, the City agrees to comply with the additional requirements to the extent necessary,
in the opinion of nationally-recognized bond counsel, to preserve the exemption from federal
income taxation of interest on the Certificates under section 103 of the Code. In furtherance of
such intention, the City hereby authorizes and directs the Mayor, the City Manager, any
Assistant City Manager and the Assistant City Manager, severally, to execute any documents,
certificates or reports required by the Code, and to make such elections on behalf of the City
which may be permitted by the Code as are consistent with the purpose for the issuance of the
Certificates.
In order to facilitate compliance with clause (h) above, a "Rebate Fund" is hereby
established by the City for the sole benefit of the United States of America, and such Fund shall
not be subject to the claim of any other person, including without limitation the bondholders.
The Rebate Fund is established for the additional purpose of compliance with section 148 of the
Code.
Section 11. ALLOCATION OF, AND LIMITATION ON, EXPENDITURES FOR THE
PROJECT. That the City covenants to account for the expenditure of proceeds from the sale of
the Certificates and any investment earnings thereon to be used for the purposes described in
Section 1 of this Ordinance (such purpose referred to in this Section and Section 12 hereof as a
"Project") on its books and records by allocating proceeds to expenditures within 18 months of
the later of the date that (a) the expenditure on a Project is made or (b) such Project is completed.
The foregoing notwithstanding, the City shall not expend such proceeds or investment earnings
more than 60 days after the earlier of (a) the fifth anniversary of the date of delivery of the
Certificates or (b) the date the Certificates are retired, unless the City obtains an opinion of
nationally-recognized bond counsel substantially to the effect that such expenditure will not
adversely affect the tax-exempt status of the Certificates. For purposes hereof, the City shall not
be obligated to comply with this covenant if it obtains an opinion that such failure to comply will
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not adversely affect the excludability for federal income tax purposes from gross income of the
interest.
Section 12. DISPOSITION OF PROJECT. That the City covenants that the property
constituting a Project will not be sold or otherwise disposed in a transaction resulting in the
receipt by the City of cash or other compensation, unless any action taken in connection with
such disposition will not adversely affect the tax-exempt status of the Certificates. For purpose
of the foregoing, the City may rely on an opinion of nationally-recognized bond counsel that the
action taken in connection with such sale or other disposition will not adversely affect the tax-
exempt status of the Certificates. For purposes of the foregoing, the portion of the property
comprising personal property and disposed in the ordinary course shall not be treated as a
transaction resulting in the receipt of cash or other compensation. For purposes hereof, the City
shall not be obligated to comply with this covenant if it obtains an opinion that such failure to
comply will not adversely affect the excludability for federal income tax purposes from gross
income of the interest.
Section 13. PROCEDURES TO MONITOR COMPLIANCE WITH TAX
COVENANTS. The City hereby adopts the procedures attached hereto as Exhibit B as a means
of monitoring compliance with the federal tax covenants made by the City herein.
Section 14. CUSTODY, APPROVAL, AND REGISTRATION OF CERTIFICATES.
That the Assistant City Manager of the City is hereby authorized to have control of the
Certificates initially issued and delivered hereunder and all necessary records and proceedings
pertaining to the Certificates pending their delivery and their investigation, examination, and
approval by the Attorney General of the State of Texas, and their registration by the Comptroller
of Public Accounts of the State of Texas. Upon registration of the Certificates said Comptroller
of Public Accounts (or a deputy designated in writing to act for said Comptroller) shall manually
sign the Comptroller's Registration Certificate attached to such Certificates, and the seal of said
Comptroller shall be impressed, or placed in facsimile, on such certificate. The Certificates thus
registered shall remain in the custody of the Assistant City Manager (or the designee thereof)
until delivered to the Purchaser (as defined in Section 18 of this Ordinance).
Section 15. DTC REGISTRATION. That the Certificates initially shall be issued and
delivered in such manner that no physical distribution of the Certificates will be made to the
public, and The Depository Trust Company ("DTC"), New York, New York, initially will act as
depository for the Certificates. DTC has represented that it is a limited purpose trust company
incorporated under the laws of the State of New York, a member of the Federal Reserve System,
a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a
"clearing agency" registered under Section 17A of the Securities Exchange Act of 1934, as
amended, and the City accepts, but in no way verifies, such representations. The Certificates
initially authorized by this Ordinance shall be delivered to and registered in the name of CEDE
& CO., the nominee of DTC. It is expected that DTC will hold the Certificates on behalf of the
Purchaser and its participants. So long as each Certificate is registered in the name of CEDE &
CO., the Paying Agent/Registrar shall treat and deal with DTC the same in all respects as if it
were the actual and beneficial owner thereof. It is expected that DTC will maintain a book-entry
system which will identify ownership of the Certificates in Authorized Denominations, with
transfers of ownership being effected on the records of DTC and its participants pursuant to rules
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and regulations established by them, and that the Certificates initially deposited with DTC shall
be immobilized and not be further exchanged for substitute Certificates except as hereinafter
provided. The City is not responsible or liable for any functions of DTC, will not be responsible
for paying any fees or charges with respect to its services, will not be responsible or liable for
maintaining, supervising, or reviewing the records of DTC or its participants, or protecting any
interests or rights of the beneficial owners of the Certificates. It shall be the duty of the DTC
Participants, as defined in the Official Statement herein approved, to make all arrangements with
DTC to establish this book-entry system, the beneficial ownership of the Certificates, and the
method of paying the fees and charges of DTC. The City does not represent, nor does it in any
way covenant that the initial book-entry system established with DTC will be maintained in the
future. Notwithstanding the initial establishment of the foregoing book-entry system with DTC,
if for any reason any of the originally delivered Certificates is duly filed with the Paying
Agent/Registrar with proper request for transfer and substitution, as provided for in this
Ordinance, substitute Certificates will be duly delivered as provided in this Ordinance, and there
will be no assurance or representation that any book-entry system will be maintained for such
Certificates. In connection with the initial establishment of the foregoing book-entry system
with DTC, the City heretofore has executed a "Blanket Letter of Representations" prepared by
DTC in order to implement the book-entry system described above.
Section 16. CONTINUING DISCLOSURE OBLIGATION PURSUANT TO RULE
15C2-12 (17 C.F.R. § 240.15C2-12).
(a) Annual Reports.
(i) The City will provide certain updated financial information and operating
data to the MSRB on an annual basis in an electronic format that is prescribed by the
MSRB and available via the Electronic Municipal Market Access System ("EMMA") at
www.emma.msrb.org. The information to be updated includes all quantitative financial
information and operating data with respect to the City of the general type included in the
Official Statement under Tables numbered 1 through 6; 8 through 20 and in Appendix B.
The City will update and provide the information in Tables 1 through 6 and 8 through 20
within six months after the end of each fiscal year ending in and after 2017. The City will
additionally provide audited financial statements when and if available, and in any event,
within 12 months after the end of each fiscal year ending in or after 2017. If the audit of
such financial statements is not complete within 12 months after any such fiscal year end,
then the City will file unaudited financial statements within such 12 month period and
audited financial statements for the applicable fiscal year, when and if the audit report on
such statements becomes available. Any such financial statements will be prepared in
accordance with the accounting principles described in Appendix B of the Official
Statement or such other accounting principles as the City may be required to employ
from time to time pursuant to State law or regulation.
(ii) The financial information and operating data to be provided may be set
forth in full in one or more documents or may be included by specific reference to any
document available to the public on the MSRB’s Internet Web site or filed with the SEC,
as permitted by the Rule. If the City changes its fiscal year, it will notify the MSRB of
the change (and of the date of the new fiscal year end) prior to the next date by which the
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City otherwise would be required to provide financial information and operating data
pursuant to this Section. The financial information and operating data to be provided
pursuant to this Section may be set forth in full in one or more documents or may be
included by specific reference to any document that is available to the public on the
MSRB's internet website or filed with the SEC. All documents provided to the MSRB
pursuant to this Section shall be accompanied by identifying information as prescribed by
the MSRB.
(b) Event Notices. The City shall notify the MSRB in an electronic format as
prescribed by the MSRB, in a timely manner (but not in excess of ten Business Days after the
occurrence of the event) of any of the following events with respect to the Certificates:
1. Principal and interest payment delinquencies;
2. Non-payment related defaults, if material;
3. Unscheduled draws on debt service reserves reflecting financial
difficulties;
4. Unscheduled draws on credit enhancements reflecting financial
difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions or the issuance by the Internal Revenue Service of
proposed or final determinations of taxability, Notices of Proposed Issue
(IRS Form 5701–TEB) or other material notices or determinations with
respect to the tax status of the Certificates, or other material events
affecting the tax status of the Certificates;
7. Modifications to rights of Certificateholders, if material;
8. Certificate calls, if material, and tender offers;
9. Defeasances;
10. Release, substitution, or sale of property securing repayment of the
Certificates, if material;
11. Rating changes;
12. Bankruptcy, insolvency, receivership or similar event of an obligated
person (which is considered to occur when any of the following occur: the
appointment of a receiver, fiscal agent, or similar officer for the City in a
proceeding under the United States Bankruptcy Code or in any other
proceeding under state or federal law in which a court or governmental
authority has assumed jurisdiction over substantially all of the assets or
business of the City, or if such jurisdiction has been assumed by leaving
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the existing governing body and officials or officers in possession but
subject to the supervision and orders of a court or governmental authority,
or the entry of an order confirming a plan of reorganization, arrangement,
or liquidation by a court or governmental authority having supervision or
jurisdiction over substantially all of the assets or business of the City);
13. The consummation of a merger, consolidation, or acquisition involving an
obligated person or the sale of all or substantially all of the assets of the
obligated person, other than in the ordinary course of business, the entry
into a definitive agreement to undertake such an action or the termination
of a definitive agreement relating to any such actions, other than pursuant
to its terms, if material;
14. Appointment of a successor or additional trustee or the change of name of
a trustee, if material.
The City shall notify the MSRB, in a timely manner, of any failure by the City to provide
financial information or operating data in accordance with this Section by the time required by
such subsection.
(c) Limitations, Disclaimers, and Amendments. (i) The City shall be obligated to
observe and perform the covenants specified in this Section for so long as, but only for so
long as, the City remains an "obligated person" with respect to the Certificates within the
meaning of the Rule, except that the City in any event will give notice of any deposit
made in accordance with this Ordinance or applicable law that causes Certificates no
longer to be outstanding.
(ii) The provisions of this Section are for the sole benefit of the registered
owners and beneficial owners of the Certificates, and nothing in this Section, express or
implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder
to any other person. The City undertakes to provide only the financial information,
operating data, financial statements, and notices which it has expressly agreed to provide
pursuant to this Section and does not hereby undertake to provide any other information
that may be relevant or material to a complete presentation of the City's financial results,
condition, or prospects or hereby undertake to update any information provided in
accordance with this Section or otherwise, except as expressly provided herein. The City
does not make any representation or warranty concerning such information or its
usefulness to a decision to invest in or sell Certificates at any future date.
(iii) UNDER NO CIRCUMSTANCE SHALL THE CITY BE LIABLE TO
THE REGISTERED OWNER OR BENEFICIAL OWNER OF ANY CERTIFICATE
OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES
RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY,
WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY
COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY
OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF
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ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS
OR SPECIFIC PERFORMANCE.
(iv) No default by the City in observing or performing its obligations under
this Section shall comprise a breach of or default under this Ordinance for purposes of
any other provision of this Ordinance. Nothing in this Section is intended or shall act to
disclaim, waive, or otherwise limit the duties of the City under federal and state securities
laws.
(v) Should the Rule be amended to obligate the City to make filings with or
provide notices to entities other than the MSRB, the City hereby agrees to undertake such
obligation with respect to the Certificates in accordance with the Rule as amended. The
provisions of this Section may be amended by the City from time to time to adapt to
changed circumstances that arise from a change in legal requirements, a change in law, or
a change in the identity, nature, status, or type of operations of the City, but only if (1) the
provisions of this Section, as so amended, would have permitted an underwriter to
purchase or sell Certificates in the primary offering of the Certificates in compliance with
the Rule, taking into account any amendments or interpretations of the Rule since such
offering as well as such changed circumstances and (2) either (a) the registered owners of
a majority in aggregate principal amount (or any greater amount required by any other
provision of this Ordinance that authorizes such an amendment) of the outstanding
Certificates consent to such amendment or (b) a person that is unaffiliated with the City
(such as nationally recognized bond counsel) determined that such amendment will not
materially impair the interest of the registered owners and beneficial owners of the
Certificates. If the City so amends the provisions of this Section, it shall include with any
amended financial information or operating data next provided in accordance with
subsection (b) of this Section an explanation, in narrative form, of the reason for the
amendment and of the impact of any change in the type of financial information or
operating data so provided. The City may also amend or repeal the provisions of this
continuing disclosure agreement if the SEC amends or repeals the applicable provision of
the Rule or a court of final jurisdiction enters judgment that such provisions of the Rule
are invalid, but only if and to the extent that the provisions of this sentence would not
prevent an underwriter from lawfully purchasing or selling Certificates in the primary
offering of the Certificates.
(d) Procedures to Monitor Compliance with Continuing Disclosure Covenants. The
City hereby adopts the procedures attached hereto as Exhibit B as a means of monitoring
compliance with the continuing disclosure covenants made by the City herein.
Section 17. DEFEASANCE. (a) Deemed Paid. Any Certificate and the interest thereon
shall be deemed to be paid, retired and no longer outstanding (a "Defeased Certificate") within
the meaning of this Ordinance, except to the extent provided in subsection (e) of this Section,
when payment of the principal of such Certificate, plus interest thereon to the due date (whether
such due date be by reason of maturity or otherwise) either (i) shall have been made or caused to
be made in accordance with the terms thereof, or (ii) shall have been provided for on or before
such due date by irrevocably depositing with or making available to the Paying Agent/Registrar
in accordance with an escrow agreement or other instrument (the "Future Escrow Agreement")
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for such payment (1) lawful money of the United States of America sufficient to make such
payment or (2) Defeasance Securities that mature as to principal and interest in such amounts
and at such times as will insure the availability, without reinvestment, of sufficient money to
provide for such payment, and when proper arrangements have been made by the City with the
Paying Agent/Registrar for the payment of its services until all Defeased Certificates shall have
become due and payable. At such time as a Certificate shall be deemed to be a Defeased
Certificate hereunder, as aforesaid, such Certificate and the interest thereon shall no longer be
secured by, payable from, or entitled to the benefits of, the ad valorem taxes herein levied and
pledged or the pledge of Surplus Revenues as provided in this Ordinance, and such principal and
interest shall be payable solely from such money or Defeasance Securities.
(b) Investments. Any moneys so deposited with the Paying Agent/Registrar may at
the written direction of the City be invested in Defeasance Securities, maturing in the amounts
and times as hereinbefore set forth, and all income from such Defeasance Securities received by
the Paying Agent/Registrar that is not required for the payment of the Certificates and interest
thereon, with respect to which such money has been so deposited, shall be turned over to the
City, or deposited as directed in writing by the City. Any Future Escrow Agreement pursuant to
which the money and/or Defeasance Securities are held for the payment of Defeased Certificates
may contain provisions permitting the investment or reinvestment of such moneys in Defeasance
Securities or the substitution of other Defeasance Securities upon the satisfaction of the
requirements specified in subsection (a)(i) or (ii) above. All income from such Defeasance
Securities received by the Paying Agent/Registrar which is not required for the payment of the
Defeased Securities, with respect to which such money has been so deposited, shall be remitted
to the City or deposited as directed in writing by the City.
(c) Selection of Defeased Certificates. In the event that the City elects to defease less
than all of the principal amount of Certificates of a maturity, the Paying Agent/Registrar shall
select, or cause to be selected, such amount of Certificates by such random method as it deems
fair and appropriate.
(d) Defeasance Securities. The term "Defeasance Securities" means (i) direct,
noncallable obligations of the United States of America, including obligations that are
unconditionally guaranteed by the United States of America, (ii) noncallable obligations of an
agency or instrumentality of the United States, including obligations that are unconditionally
guaranteed or insured by the agency or instrumentality and that, on the date the governing body
of the City adopts or approves the proceedings authorizing the issuance of refunding bonds, are
rated as to investment quality by a nationally recognized investment rating firm not less than
AAA or its equivalent; (iii) noncallable obligations of a state or an agency or a county,
municipality, or other political subdivision of a state that have been refunded and that, on the
date the governing body of the City adopts or approves the proceedings authorizing the issuance
of refunding bonds, are rated as to investment quality by a nationally recognized investment
rating firm not less than AAA or its equivalent and (iv) any securities and obligations now or
hereafter authorized by State law that are eligible to refund, retire or otherwise discharge
obligations such as the Certificates.
(e) Continuing Duty of Paying Agent/Registrar. Until all Certificates defeased under
this Section of this Ordinance shall become due and payable, the Paying Agent/Registrar for
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such Certificates shall perform the services of Paying Agent/Registrar for such Certificates the
same as if they had not been defeased, and the City shall make proper arrangements to provide
and pay for such services.
(f) The Pricing Officer is hereby authorized to modify the securities that are eligible
as Defeasance Securities and any such modification shall described in the Pricing Certificate.
Section 18. SALE OF CERTIFICATES; OFFICIAL STATEMENT. (a) The Certificates
may be sold by public offering (either through a negotiated or competitive offering) and the
terms and provisions of which are to be determined by the Pricing Officer in accordance with
Section 2 hereof, and in which the purchasers of the Certificates are designated. The Certificates
may be sold pursuant to a purchase agreement or notice of sale and bidding instructions
(collectively, the "Purchase Agreement") which the Pricing Officer is hereby authorized to
execute and deliver and in which the Purchaser of the Certificates shall be designated. The
Certificates shall initially be registered in the name of the Purchaser thereof as set forth in the
Pricing Certificate.
(b) The City hereby approves the form and content of the draft preliminary official
statement relating to the Certificates in the form attached hereto as Exhibit C and any addenda,
supplement or amendment thereto, and approves the distribution of such preliminary official
statement in the reoffering of the Certificates by the Purchaser in final form, with such changes
therein or additions thereto as the Pricing Officer executing the same may deem advisable. The
Pricing Officer is hereby authorized, in the name and on behalf of the City, to approve,
distribute, and deliver a final preliminary official statement and a final official statement relating
to the Certificates to be used by the Purchaser in the marketing of the Certificates.
(c) The Pricing Officer is authorized, in connection with effecting the sale of the
Certificates, to obtain from a municipal bond insurance company so designated in the Pricing
Certificate (the "Insurer") a municipal bond insurance policy (the "Insurance Policy") in support
of the Certificates. To that end, should the Pricing Officer exercise such authority and commit
the City to obtain a municipal bond insurance policy, for so long as the Insurance Policy is in
effect, the requirements of the Insurer relating to the issuance of the Insurance Policy are
incorporated by reference into this Ordinance and made a part hereof for all purposes,
notwithstanding any other provision of this Ordinance to the contrary. The Pricing Officer shall
have the authority to execute any documents to effect the issuance of the Insurance Policy by the
Insurer.
(d) The Mayor and Mayor Pro Tem, the City Manager, the Assistant City Manager,
Director of Finance and City Secretary, shall be and they are hereby expressly authorized,
empowered and directed from time to time and at any time to do and perform all such acts and
things and to execute, acknowledge and deliver in the name and under the corporate seal and on
behalf of the City a Paying Agent/Registrar Agreement, in the form presented at the meeting at
which this Ordinance is adopted, with the Paying Agent/Registrar and all other instruments,
whether or not herein mentioned, as may be necessary or desirable in order to carry out the terms
and provisions of this Ordinance, the Certificates, the sale of the Certificates, the Purchase
Agreement and the Official Statement. In case any officer whose signature shall appear on any
Certificate shall cease to be such officer before the delivery of such Certificate, such signature
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shall nevertheless be valid and sufficient for all purposes the same as if such officer had
remained in office until such delivery.
Section 19. FURTHER PROCEDURES. That the Mayor, the City Secretary, the City
Manager, the Assistant City Manager, and Director of Finance, shall be and they are hereby
expressly authorized, empowered, and directed from time to time and at any time to do and
perform all such acts and things and to execute, acknowledge, and deliver in the name and under
the corporate seal and on behalf of the City all such instruments, whether or not herein
mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this
Ordinance, and the sale and delivery of the Certificates and fixing all details in connection
therewith. The City Council hereby authorizes the payment of the fee of the Office of the
Attorney General of the State of Texas for the examination of the proceedings relating to the
issuance of the Certificates, in the amount determined in accordance with the provisions of
Section 1202.004, Texas Government Code.
Section 20. CONSTRUCTION FUND; USE OF PROCEEDS.
(a) The City hereby creates and establishes and shall maintain on the books of the
City a separate fund to be entitled the "Series 2017 Certificates of Obligation Construction Fund"
(the "Construction Fund") for use by the City for payment of all lawful costs associated with the
acquisition and construction of the projects as provided in Section 1.
(b) The proceeds from the sale of the Certificates shall be deposited, on the date of
closing, in the manner described in a letter of instructions prepared by the City or on behalf of
the City by the City's financial advisor. The foregoing notwithstanding, any proceeds
representing accrued interest on the Certificates shall be deposited to the credit of the Interest
and Sinking Fund.
Section 21. INTEREST EARNINGS. That the interest earnings derived from the
investment of proceeds from the sale of the Certificates may be used along with other proceeds
for the construction of the permanent improvements set forth in Section 1 hereof for which the
Certificates are issued; provided that after completion of such permanent improvements, if any of
such interest earnings remain on hand, such interest earnings shall be deposited in the Interest
and Sinking Fund. It is further provided, however, that any interest earnings on proceeds which
are required to be rebated to the United States of America pursuant to this Ordinance hereof in
order to prevent the Certificates from being arbitrage bonds shall be so rebated and not
considered as interest earnings for the purposes of this Section.
Section 22. DEFAULT AND REMEDIES.
(a) Events of Default. Each of the following occurrences or events for the purpose of
this Ordinance is hereby declared to be an Event of Default:
(i) the failure to make payment of the principal of or interest on any of the
Certificates when the same becomes due and payable; or
(ii) default in the performance or observance of any other covenant,
agreement or obligation of the City, the failure to perform which materially, adversely
20
affects the rights of the registered owners of the Certificates, including, but not limited to,
their prospect or ability to be repaid in accordance with this Ordinance, and the
continuation thereof for a period of 60 days after notice of such default is given by any
registered owner to the City.
(b) Remedies for Default.
(i) Upon the happening of any Event of Default, then and in every case, any
registered owner or an authorized representative thereof, including, but not limited to, a
trustee or trustees therefor, may proceed against the City, or any official, officer or
employee of the City in their official capacity, for the purpose of protecting and enforcing
the rights of the registered owners under this Ordinance, by mandamus or other suit,
action or special proceeding in equity or at law, in any court of competent jurisdiction,
for any relief permitted by law, including the specific performance of any covenant or
agreement contained herein, or thereby to enjoin any act or thing that may be unlawful or
in violation of any right of the registered owners hereunder or any combination of such
remedies.
(ii) It is provided that all such proceedings shall be instituted and maintained
for the equal benefit of all registered owners of Certificates then outstanding.
(c) Remedies Not Exclusive.
(i) No remedy herein conferred or reserved is intended to be exclusive of any
other available remedy or remedies, but each and every such remedy shall be cumulative
and shall be in addition to every other remedy given hereunder or under the Certificates
or now or hereafter existing at law or in equity; provided, however, that notwithstanding
any other provision of this Ordinance, the right to accelerate the debt evidenced by the
Certificates shall not be available as a remedy under this Ordinance.
(ii) The exercise of any remedy herein conferred or reserved shall not be
deemed a waiver of any other available remedy.
(iii) By accepting the delivery of a Certificate authorized under this Ordinance,
such registered owner agrees that the certifications required to effectuate any covenants
or representations contained in this Ordinance do not and shall never constitute or give
rise to a personal or pecuniary liability or charge against the officers, employees or
members of the City or the City Council.
(iv) None of the members of the City Council, nor any other official or officer,
agent, or employee of the City, shall be charged personally by the registered owners with
any liability, or be held personally liable to the registered owners under any term or
provision of this Ordinance, or because of any Event of Default or alleged Event of
Default under this Ordinance.
Section 23. MISCELLANEOUS PROVISIONS. (a) Preamble. The preamble to this
Ordinance is incorporated by reference and made a part hereof for all purposes.
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(b) Titles Not Restrictive. That the titles assigned to the various sections of this
Ordinance are for convenience only and shall not be considered restrictive of the subject matter
of any section or of any part of this Ordinance.
(c) Rules of Construction. The words "herein", "hereof" and "hereunder" and other
words of similar import refer to this Ordinance as a whole and not to any particular section or
other subdivision. Except where the context otherwise requires, terms defined in this Ordinance
to impart the singular number shall be considered to include the plural number and vice versa.
References to any named person means that party and its successors and assigns. References to
any constitutional, statutory or regulatory provision means such provision as it exists on the date
this Ordinance is adopted by the City and any future amendments thereto or successor provisions
thereof. Any reference to "FORM OF CERTIFICATE" shall refer to the form of the Certificates
set forth in Exhibit A to this Ordinance. Any reference to the payment of principal in this
Ordinance shall be deemed to include the payment of any mandatory sinking fund redemption
payments as may be described herein.
(d) Inconsistent Provisions. All ordinances, orders and resolutions, or parts thereof,
which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed
and declared to be inapplicable, and the provisions of this Ordinance shall be and remain
controlling as to the matters prescribed herein.
(e) Severability. If any word, phrase, clause, paragraph, sentence, part, portion, or
provision of this Ordinance or the application thereof to any person or circumstance shall be held
to be invalid, the remainder of this Ordinance shall nevertheless be valid and the City hereby
declares that this Ordinance would have been enacted without such invalid word, phrase, clause,
paragraph, sentence, part, portion, or provisions.
(f) Governing Law. This Ordinance shall be construed and enforced in accordance
with the laws of the State of Texas.
(g) Open Meeting. The City officially finds and determines that the meeting at which
this Ordinance is adopted was open to the public; and that public notice of the time, place, and
purpose of such meeting was given, all as required by Chapter 551, Texas Government Code.
(h) Application of Chapter 1208, Government Code. Chapter 1208, Texas
Government Code, applies to the issuance of the Certificates and the pledge of ad valorem taxes
and the Surplus Revenues granted by the City under Section 6(b), and such pledge is therefore
valid, effective, and perfected. If Texas law is amended at any time while the Certificates are
outstanding and unpaid such that the pledge of the ad valorem taxes and Surplus Revenues
granted by the City is to be subject to the filing requirements of Chapter 9, Texas Business &
Commerce Code, then in order to preserve to the Registered Owners of the Certificates the
perfection of the security interest in said pledge, the City agrees to take such measures as it
determines are reasonable and necessary under Texas law to comply with the applicable
provisions of Chapter 9, Texas Business & Commerce Code and enable a filing to perfect the
security interest in said pledge to occur.
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(i) Immediate Effect. In accordance with the provisions of Section 1201.028, Texas
Government Code, this Ordinance shall be effective immediately upon its adoption by the City
Council.
[Remainder of page intentionally left blank.]
Ordinance
City of College Station, Texas
Certificates of Obligation, Series 2016
SIGNATURE PAGE
PASSED, APPROVED AND EFFECTIVE THIS MAY 11, 2017.
City Secretary; City of College Station Mayor; City of College Station
(CITY SEAL)
APPROVED:
McCall, Parkhurst & Horton L.L.P., Dallas, Texas
Bond Counsel
A-1
EXHIBIT A
FORM OF CERTIFICATE
The form of the Certificates, including the form of Paying Agent/Registrar's
Authentication Certificate, the form of Assignment and the form of Registration Certificate of
the Comptroller of Public Accounts of the State of Texas to be attached only to the Certificates
initially issued and delivered pursuant to this Ordinance, shall be, respectively, substantially as
follows, with such appropriate variations, omissions, or insertions as are permitted or required by
this Ordinance and with the Certificates to be completed with information set forth in the Pricing
Certificate. The Form of Certificate as it appears in this Exhibit A shall be completed, amended
and modified by Bond Counsel to incorporate the information set forth in the Pricing Certificate
but it is not required for the Form of Certificate to reproduced as an exhibit to the Pricing
Certificate.
NO. _____
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF BRAZOS
CITY OF COLLEGE STATION, TEXAS
CERTIFICATES OF OBLIGATION
SERIES 2017
Principal
Amount
$[]
MATURITY DATE INTEREST RATE DELIVERY DATE CUSIP NO.
% [], 2017
REGISTERED OWNER:
PRINCIPAL AMOUNT:
ON THE MATURITY DATE SPECIFIED ABOVE, THE CITY OF COLLEGE
STATION, TEXAS, in Brazos County (the "City"), being a political subdivision of the State of
Texas, hereby promises to pay to the Registered Owner specified above or to the registered
assignee hereof (either being hereinafter called the "registered owner") the Principal Amount
specified above, and to pay interest thereon (calculated on the basis of a 360-day year of twelve
30-day months), from the Delivery Date specified above, to the Maturity Date specified above,
or the date of its redemption prior to scheduled maturity, at the interest rate per annum specified
above, with said interest payable on February 15, 2018, and semiannually on each August 15 and
February 15 thereafter until maturity or prior redemption; except that if this Certificate is
required to be authenticated and the date of its authentication is later than February 15, 2018,
such interest is payable semiannually on each August 15 and February 15 following such date.
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THE PRINCIPAL OF AND INTEREST ON this Certificate are payable in lawful money
of the United States of America, without exchange or collection charges. At maturity or
redemption prior to maturity, the principal of this Certificate shall be paid to the registered owner
hereof upon presentation and surrender of this Certificate at the designated corporate trust office
in Dallas, Texas (the "Designated Trust Office") of The Bank of New York Mellon Trust
Company, N.A., which is the "Paying Agent/Registrar" for this Certificate. The payment of
interest on this Certificate shall be made by the Paying Agent/Registrar to the registered owner
hereof on each interest payment date by check, dated as of such interest payment date, drawn by
the Paying Agent/Registrar on, and payable solely from, funds of the City required by the
ordinance authorizing the issuance of this Certificate (the "Certificate Ordinance") to be on
deposit with the Paying Agent/Registrar for such purpose as hereinafter provided; and such
check shall be sent by the Paying Agent/Registrar by United States mail, first-class postage
prepaid, on each such interest payment date, to the registered owner hereof, at its address as it
appeared on the last business day of the month preceding each such date (the "Record Date") on
the Registration Books kept by the Paying Agent/Registrar, as hereinafter described. Any
accrued interest due at maturity as provided herein shall be paid to the registered owner upon
presentation and surrender of this Certificate for payment at the Designated Trust Office of the
Paying Agent/Registrar. The City covenants with the registered owner of this Certificate that on
or before each principal and interest payment date for this Certificate it will make available to the
Paying Agent/Registrar, from the "Interest and Sinking Fund" created by the Certificate
Ordinance, the amounts required to provide for the payment, in immediately available funds, of
all principal of and interest on the Certificates, when due.
IN THE EVENT OF NON-PAYMENT of interest on a scheduled payment date, and for
30 days thereafter, a new record date for such interest payment (a "Special Record Date") will be
established by the Paying Agent/Registrar, if and when funds for the payment of such interest
have been received from the City. Notice of the Special Record Date and of the scheduled
payment date of the past due interest ("Special Payment Date", which shall be 15 days after the
Special Record Date) shall be sent at least five business days prior to the Special Record Date by
United States mail, first-class postage prepaid, to the address of each registered owner of a
Certificate appearing on the Registration Books kept by the Paying Agent/Registrar at the close
of business on the last business day next preceding the date of mailing of such notice.
IF THE DATE for the payment of the principal of or interest on this Certificate shall be a
Saturday, Sunday, a legal holiday, or a day on which banking institutions in the city where the
Designated Trust Office of the Paying Agent/Registrar is located are authorized by law or
executive order to close, then the date for such payment shall be the next succeeding day which
is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are
authorized to close; and payment on such date shall have the same force and effect as if made on
the original date payment was due.
THIS CERTIFICATE is one of a Series of Certificates dated as of July 1, 2017,
authorized in accordance with the Constitution and laws of the State of Texas in the principal
amount of $[], for the purpose of paying contractual obligations to be incurred by the City for the
following public purposes: (i) constructing, improving and extending streets, roads and
pedestrian facilities including related signalization, drainage, irrigation, landscaping, lighting and
signage; (ii) constructing and equipping a new police station; (iii) purchasing and installing
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technology improvements including new electronic storage equipment for the City and fiber
optic infrastructure for use by the City; (iv) purchasing public safety radios and radio system
equipment related thereto; (v) purchasing self-contained breathing apparatuses and related
equipment for the fire department; (vi) designing and constructing City gateway signage; (vii)
designing, constructing, equipping and installing park and recreation equipment and
improvements including rehabilitating and improving aquatic facilities, playground
improvements and equipment, park infrastructure improvements, upgrades and rehabilitation;
(viii) constructing improvements and extensions to the City's combined waterworks, sewer and
electric systems including distribution, transmission, system lines and wells; and (ix) the
payment of fiscal, engineering and legal fees incurred in connection therewith.
ON FEBRUARY 15, 2027, or on any date thereafter, the Certificates of this Series
maturing on February 15, 2028 and thereafter may be redeemed prior to their scheduled
maturities, at the option of the City, in whole, or in part, at par and accrued interest to the date
fixed for redemption. The years of maturity of the Certificates called for redemption at the
option of the City prior to their stated maturity shall be selected by the City. The Certificates or
portions thereof redeemed within a maturity shall be selected by lot or other method by the
Paying Agent/Registrar; provided, that during any period in which ownership of the Certificates
is determined only by a book entry at a securities depository for the Certificates, if fewer than all
of the Certificates of the same maturity and bearing the same interest rate are to be redeemed, the
particular Certificates of such maturity and bearing such interest rate shall be selected in
accordance with the arrangements between the City and the securities depository.
AT LEAST THIRTY days prior to the date fixed for any such redemption, a written
notice of such redemption shall be given to the registered owner of each Certificate or a portion
thereof being called for redemption by depositing such notice in the United States mail, first-
class postage prepaid, addressed to each such registered owner at his address shown on the
Registration Books of the Paying Agent/Registrar. By the date fixed for any such redemption
due provision shall be made by the City with the Paying Agent/Registrar for the payment of the
required redemption price for this Certificate or the portion hereof which is to be so redeemed,
plus accrued interest thereon to the date fixed for redemption. If such notice of redemption is
given, and if due provision for such payment is made, all as provided above, this Certificate, or
the portion hereof which is to be so redeemed, thereby automatically shall be redeemed prior to
its scheduled maturity, and shall not bear interest after the date fixed for its redemption, and shall
not be regarded as being outstanding except for the right of the registered owner to receive the
redemption price plus accrued interest to the date fixed for redemption from the Paying
Agent/Registrar out of the funds provided for such payment. The Paying Agent/Registrar shall
record in the Registration Books all such redemptions of principal of this Certificate or any
portion hereof. If a portion of any Certificate shall be redeemed a substitute Certificate or
Certificates having the same maturity date, bearing interest at the same rate, in Authorized
Denominations, at the written request of the registered owner, and in aggregate principal amount
equal to the unredeemed portion thereof, will be issued to the registered owner upon the
surrender thereof for cancellation, at the expense of the City, all as provided in the Ordinance.
IF AT THE TIME OF MAILING of notice of optional redemption there shall not have
either been deposited with the Paying Agent/Registrar or legally authorized escrow agent
immediately available funds sufficient to redeem all the Certificates called for redemption, such
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notice must state that it is conditional, and is subject to the deposit of the redemption moneys
with the Paying Agent/Registrar or legally authorized escrow agent at or prior to the redemption
date, and such notice shall be of no effect unless such moneys are so deposited on or prior to the
redemption date. If such redemption is not effectuated, the Paying Agent/Registrar shall, within
five days thereafter, give notice in the manner in which the notice of redemption was given that
such moneys were not so received and shall rescind the redemption.
ALL CERTIFICATES OF THIS SERIES are issuable solely as fully registered
certificates, without interest coupons, in Authorized Denominations. As provided in the
Certificate Ordinance, this Certificate may, at the request of the registered owner or the assignee
or assignees hereof, be assigned, transferred, and exchanged for a like aggregate principal
amount of fully registered certificates, without interest coupons, payable to the appropriate
registered owner, assignee, or assignees, as the case may be, having the same maturity date, and
bearing interest at the same rate, in Authorized Denominations as requested in writing by the
appropriate registered owner, assignee, or assignees, as the case may be, upon surrender of this
Certificate to the Paying Agent/Registrar at its Designated Trust Office for cancellation, all in
accordance with the form and procedures set forth in the Certificate Ordinance. Among other
requirements for such assignment and transfer, this Certificate must be presented and
surrendered to the Paying Agent/Registrar at its Designated Trust Office, together with proper
instruments of assignment, in form and with guarantee of signatures satisfactory to the Paying
Agent/Registrar, evidencing assignment of this Certificate or any portion or portions hereof in an
Authorized Denomination to the assignee or assignees in whose name or names this Certificate
or any such portion or portions hereof is or are to be transferred and registered. The form of
Assignment printed or endorsed on this Certificate may be executed by the registered owner to
evidence the assignment hereof, but such method is not exclusive, and other instruments of
assignment satisfactory to the Paying Agent/Registrar may be used to evidence the assignment of
this Certificate or any portion or portions hereof from time to time by the registered owner. The
foregoing notwithstanding, in the case of the exchange of an assigned and transferred Certificate
or Certificates or any portion or portions thereof, such fees and charges of the Paying
Agent/Registrar will be paid by the City. The one requesting such exchange shall pay the Paying
Agent/Registrar's reasonable standard or customary fees and charges for exchanging any
Certificate or portion thereof. In any circumstance, any taxes or governmental charges required
to be paid with respect thereto shall be paid by the one requesting such assignment, transfer, or
exchange as a condition precedent to the exercise of such privilege. In any circumstance, neither
the City nor the Paying Agent/Registrar shall be required (1) to make any transfer or exchange
during a period beginning at the opening of business 30 days before the day of the first mailing
of a notice of redemption of Certificates and ending at the close of business on the day of such
mailing, or (2) to transfer or exchange any Certificates so selected for redemption when such
redemption is scheduled to occur within 45 calendar days.
WHENEVER the beneficial ownership of this Certificate is determined by a book entry
at a securities depository for the Certificates, the foregoing requirements of holding, delivering
or transferring this Certificate shall be modified to require the appropriate person or entity to
meet the requirements of the securities depository as to registering or transferring the book entry
to produce the same effect.
A-5
IN THE EVENT any Paying Agent/Registrar for the Certificates is changed by the City,
resigns, or otherwise ceases to act as such, the City has covenanted in the Certificate Ordinance
that it promptly will appoint a competent and legally qualified substitute therefor, and promptly
will cause written notice thereof to be mailed to the registered owners of the Certificates.
IT IS HEREBY certified, recited and covenanted that this Certificate has been duly and
validly authorized, issued, and delivered; that all acts, conditions, and things required or proper
to be performed, exist, and be done precedent to or in the authorization, issuance, and delivery of
this Certificate have been performed, existed, and been done in accordance with law; that this
Certificate is a direct obligation of said City, issued on the full faith and credit thereof; and that
in accordance with the terms of the Certificate Ordinance, annual ad valorem taxes sufficient to
provide for the payment of the interest on and principal of this Certificate, as such interest comes
due and such principal matures, have been levied and ordered to be levied against all taxable
property in said City, and have been pledged for such payment, within the limit prescribed by
law; and that a limited pledge (not to exceed $1,000) of the Surplus Revenues from the operation
of the City's combined municipal electric light and power, waterworks and sewer system
remaining after payment of all operation and maintenance expenses thereof and any other
obligations heretofore or hereafter incurred to which such revenues have been or shall be
encumbered by a lien on and pledge of such revenues superior to the lien on and pledge of such
revenues to the Certificates, have been pledged as additional security for the Certificates.
BY BECOMING the registered owner of this Certificate, the registered owner thereby
acknowledges all of the terms and provisions of the Certificate Ordinance, agrees to be bound by
such terms and provisions, acknowledges that the Certificate Ordinance is duly recorded and
available for inspection in the official minutes and records of the City, and agrees that the terms
and provisions of this Certificate and the Certificate Ordinance constitute a contract between
each registered owner hereof and the City.
IN WITNESS WHEREOF, this Certificate has been signed with the manual or facsimile
signature of the Mayor of the City, attested by the manual or facsimile signature of the City
Secretary, and the official seal of the City has been duly affixed to, or impressed, or placed in
facsimile, on this Certificate.
xxxxx xxxxx
City Secretary; City of College Station Mayor; City of College Station
(SEAL)
FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
It is hereby certified that this Certificate of Obligation has been issued under the
provisions of the proceedings adopted by the City as described in the text of this Certificate of
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Obligation; and that this Certificate of Obligation has been issued in exchange for or replacement
of a Certificate of Obligation of an issue which originally was approved by the Attorney General
of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas.
Dated: _______________ The Bank of New York Mellon
Trust Company, N.A.
Paying Agent/Registrar
By:
Authorized Representative
[FORM OF COMPTROLLER'S CERTIFICATE ATTACHED TO
THE CERTIFICATE (CERTIFICATE NO. T-1) UPON INITIAL DELIVERY THEREOF]
COMPTROLLER'S CERTIFICATE
OFFICE OF COMPTROLLER §
REGISTER NO. ________
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 Certificate has been examined by him as
required by law, and that he finds that it has been issued in conformity with the Constitution and
laws of the State of Texas, and that it is a valid and binding obligation of the City of College
Station, Texas, payable in the manner provided by and in the ordinance authorizing same, and
said Certificate has this day been registered by me.
WITNESS MY HAND and seal of office at Austin, Texas this ___________________.
__________________________________________
Comptroller of Public Accounts of
the State of Texas
(SEAL)
FORM OF ASSIGNMENT
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto:
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Please insert Social Security or Taxpayer Identification Number of Transferee
Please print or type name and address, including zip code of Transferee
the within Certificate and all rights thereunder, and hereby irrevocably constitutes and appoints:
____________________________________, attorney, to register the transfer of the within
Certificate on the books kept for registration thereof, with full power of substitution in the
premises.
Dated: __________________.
Signature Guaranteed:
NOTICE: Signature(s) must be guaranteed
by an eligible guarantor institution
participating in a securities transfer
association recognized signature guarantee
program.
NOTICE: The signature above must
correspond with the name of the registered
owner as it appears upon the front of this
Certificate in every particular, without
alteration or enlargement or any change
whatsoever.
INSERTIONS FOR THE INITIAL CERTIFICATE. The initial Certificate shall be in the
form set forth in paragraph (a) of this Form of Certificate, except that:
i. immediately under the name of the Certificate, the headings "INTEREST
RATE" and "MATURITY DATE" shall both be completed with the words
"As shown below" and "CUSIP NO. _____" shall be deleted.
ii. the first paragraph shall be deleted and the following will be inserted:
THE CITY OF COLLEGE STATION, TEXAS, in Brazos County, Texas (the "City"),
being a political subdivision of the State of Texas, hereby promises to pay to the Registered
Owner specified above or to the registered assignee hereof (either being hereinafter called the
"registered owner") on the Maturity Dates, in the Principal Amounts and bearing interest at the
per annum Interest Rates set forth in the following schedule:
Maturity
Date
Principal
Amount
Interest
Rate
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The City promises to pay interest on the unpaid principal amount hereof (calculated on
the basis of a 360-day year of twelve 30-day months) from the Delivery Date above at the
respective Interest Rate per annum specified above. Interest is payable on February 15, 2018 and
on each August 15 and February 15 thereafter to the date of payment of the Principal Amounts
specified above, or the date of redemption prior to maturity; except, that if this Certificate is
required to be authenticated and the date of its authentication is later than the first Record Date
(hereinafter defined), such principal amount shall bear interest from the interest payment date
next preceding the date of authentication, unless such date of authentication is after any Record
Date but on or before the next following interest payment date, in which case such principal
amount shall bear interest from such next following interest payment date; provided, however,
that if on the date of authentication hereof the interest on the Certificate or Certificates, if any,
for which this Certificate is being exchanged is due but has not been paid, then this Certificate
shall bear interest from the date to which such interest has been paid in full."
iii. The initial Certificate shall be numbered "T-1."
B-1
EXHIBIT B
PROCEDURES REGARDING COMPLIANCE WITH FEDERAL TAX AND
CONTINUING DISCLOSURE COVENANTS
This Exhibit is intended to assist the City of College Station (the "City") in complying
with the federal income tax covenants and securities disclosure covenants as they apply to the
issuance of tax-exempt debt securities such as the Certificates of Obligation (the "Obligations").
These procedures should be read together with any federal tax certifications, bond covenants,
letters or memoranda from bond counsel and any attachments thereto (collectively, the "Closing
Documents"). Failure to comply with federal guidelines could have serious consequences for
investors, the City and its officials.
These procedures shall apply to the Obligations, until they are superseded by a change in
circumstances at which time the City's bond counsel will propose new procedures to be adopted.
I. FEDERAL TAX LAW
1. Arbitrage Compliance.
Arbitrage refers to the difference between the interest paid on tax-exempt Obligations and
the interest earned by investing the proceeds of tax-exempt Obligations in higher-yielding
investments. Such higher-yielding investments could take the form of loans, securities, real
property, personal property, or other investments that could yield a profit to the City. Federal
income tax laws generally restrict the ability to earn arbitrage utilizing the proceeds of tax-
exempt Obligations. Generally, any profit from investing Obligation proceeds at a yield above
the yield paid on the Obligations belongs to the federal government and must be rebated to the
federal government. If the City fails to comply federal tax guidelines, Obligations could be
deemed to be “arbitrage bonds” by the Internal Revenue Service (the “IRS”), which would
expose the City to monetary liability from the City’s investors.
The arbitrage yield on the Obligations is set forth on the IRS Form 8038-G.
The Assistant City Manager and the City Treasurer (including such other employees of
the City who report to such officers) (collectively, the "Responsible Person") will review the
Closing Documents periodically (at least once a year) to ascertain if an exception to arbitrage
compliance applies.
a. Procedures applicable to the Obligation. The Responsible Person shall undertake
the following procedures.
i. If the City plans to spend funds currently on hand for a future project with
the intent to later repay such funds from a debt issue, the Responsible
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Person shall contact Bond Counsel to obtain advice regarding a
reimbursement resolution. The Responsible Person shall maintain any
official action of the City (such as a reimbursement resolution) stating the
City's intent to reimburse with the proceeds of the Obligations any amount
expended prior to the Issue Date for the acquisition, renovation or
construction of the Project.
ii. The Responsible Person shall ensure that the applicable information return
(e.g., U.S. Internal Revenue Service ("IRS") Form 8038-G, 8038-GC, or
any successor forms) is timely filed with the IRS.
iii. If proceeds of the Obligations are to be invested in interest-earning
investments, assure that, unless excepted from rebate and yield restriction
under section 148(f) of the Code, excess investment earnings are
computed and paid to the U.S. government at such time and in such
manner as directed by the IRS (i) at least every 5 years after the Issue Date
and (ii) within 30 days after the date the Obligations are retired. If
proceeds of the Obligations are to be invested in interest-earning
investments, the Responsible Person should contact the City's arbitrage
consultant regarding such matters.
iv. The Responsible Person shall monitor all amounts deposited into a sinking
fund or funds pledged (directly or indirectly) to the payment of the
Obligations, such as the Interest and Sinking Fund (the "I&S Fund"), to
assure that the maximum amount invested within such applicable fund at a
yield higher than the yield on the Obligations does not exceed an amount
equal to the debt service on the Obligations in the succeeding 12 month
period plus a carryover amount equal to one-twelfth of the principal and
interest payable on the Obligations for the immediately preceding 12-
month period.
NOTE: the purpose of the I&S Fund is to achieve a proper
matching of revenues with principal and interest payments within
each fiscal year. The I&S Fund should be used a mechanism for
payment of current debt service and not as a long-term investment
fund for debt service many years in the future.
v. The Responsible Person shall ensure that no more than 50% of the
proceeds of the Obligations are invested in an investment with a
guaranteed yield for 4 years or more.
b. With respect to the investment and expenditure of the proceeds of the Obligations
that are issued to finance public improvements or to acquire land or personal
property, the Responsible Person shall undertake the following.
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i. The Responsible Person shall instruct the persons who are primarily
responsible for the construction, renovation or acquisition of the facilities
financed with Obligations (the “Project”) that the Project must (i) proceed
with due diligence toward completion and that (ii) binding contracts for
the expenditure of at least 5% of the proceeds of the Obligations will be
entered into within six (6) months of the date of closing of the Obligations
(the “Issue Date”). The Responsible Person shall monitor that the above
requirements are satisfied.
ii. The Responsible Person shall monitor that at least 85% of the proceeds of
the Obligations to be used for the construction, renovation or acquisition
of the Project are expended within three years of the Issue Date.
iii. The Responsible Person shall monitor investment of proceeds of the
Obligations and restrict the yield of the investments to the yield on the
Obligations after three years of the Issue Date.
iv. To the extent that there are any unspent proceeds of the Obligations at the
time the Obligations are later refunded, or if there are unspent proceeds of
the Obligations that are being refunded by a new issuance of Obligations,
the Responsible Person shall continue monitoring the expenditure of such
unspent proceeds to ensure compliance with federal tax law with respect
to both the refunded Obligations and any Obligations being issued for
refunding purposes, and shall contact Bond Counsel as necessary.
B. Private Business Use.
Generally, the proceeds of tax-exempt Obligations may not inure to the benefit of entities
other than state or local governments (“private business use”). Private business use occurs
whenever Obligation proceeds are used to benefit any entity other than a state or local
government, including nonprofit corporations and the federal government.
A series of Obligations may lose their tax-exempt status if: (i) more than 10% of the
proceeds of the Obligations are to be used for any private business use and the payment of the
principal or interest on more than 10% of the proceeds of the Obligations is secured by or
payable from property used for a private business use, or (ii) the amount of proceeds of the
Obligations used to make loans to borrowers other than state and local governments exceeds the
lesser of 5% of the proceeds or $15 million.
With respect to the use of the facilities financed or refinanced with the proceeds of the
Obligations, the Responsible Person shall undertake the following to ensure the Obligations do
not violate private business use tests.
B-4
a. The Responsible Person shall develop procedures or a “tracking system” to
identify, log and record all property financed with tax-exempt debt and identify
the issue of Obligations used to finance such property.
b. The Responsible Person shall monitor and record the date on which the Project is
substantially complete and available to be used for the purpose intended.
c. The Responsible Person shall monitor and record whether, at any time the
Obligations are outstanding, any person, other than the City, the employees of the
City, the agents of the City or members of the general public has any contractual
right (such as a lease, research contract, naming rights agreement, purchase
contract, management agreement or other service agreement) with respect to any
portion of the Project.
d. Before entering into any private business use arrangement that involves the use of
the Project, the Responsible Person must obtain a description of the proposed
private business use arrangement and determine whether such arrangement, if put
into effect, will be consistent with the restrictions on private business use of the
Project. In connection with the evaluation of any proposed private business use
arrangement, the Responsible Person should consult with Bond Counsel to
discuss whether such arrangement, if put into effect, will be consistent with the
restrictions on private business use of the Project, and, if not, whether any
“remedial action” permitted under federal guidelines may be taken as a means of
enabling such private business use without adversely affecting the tax-exempt
status of the Obligations.
e. The Responsible Person shall monitor and record whether, at any time the
Obligations are outstanding, any person, other than the City, the employees of the
City, the agents of the City or members of the general public has a right to use the
output of the Project (e.g., water, gas, electricity, capacity) on any basis other than
standard rates and charges.
f. The Responsible Person shall monitor and record whether, at any time the
Obligations are outstanding, any person, other than the City, has a naming right
for the Project or any other contractual right granting an intangible benefit.
g. Prior to any sale of property owned by the City (real or personal), the Responsible
Person must confirm whether such property was financed with tax-exempt debt,
and if so, determine whether the proposed disposition of the property could
impact the tax-exempt status of the series of Obligations that financed the
acquisition of such property.
h. The Responsible Person shall take any action necessary to remediate any failure
to maintain compliance with the covenants contained in the ordinance authorizing
the issuance of the applicable series of Obligations.
B-5
C. Record Retention.
The Responsible Person will maintain or cause to be maintained all records relating to the
investment and expenditure of the proceeds of the Obligations and the use of the Project financed
or refinanced thereby for a period ending three (3) years after the complete extinguishment of the
Obligations. If any portion of the Obligations is refunded with the proceeds of another series of
Obligations, such records shall be maintained until the three (3) years after the refunding
Obligations mature or are otherwise paid off. Such records can be maintained in paper or
electronic format.
For purposes of these procedures, the Memorandum of Bond Counsel dated December 1,
2011 styled "Certain Federal Income Tax Considerations for Record Retention – Record
Management Program and Periodic Compliance Review" in incorporated herein and should be
reviewed periodically, at least once per year, by the Responsible Person.
D. Responsible Person & Continuity.
Each Responsible Person shall receive appropriate training regarding the City’s
accounting system, contract intake system, facilities management and other systems necessary to
track the investment and expenditure of the proceeds and the use of the facilities financed with
the proceeds of the Obligations. The foregoing notwithstanding, the Responsible Person is
authorized and instructed to retain such experienced advisors and agents as may be necessary to
carry out the purposes of these instructions.
Prior to cessation of employment with the City, the Responsible Person should identify
their successor to maintain compliance with these procedures.
II. FEDERAL SECURITIES LAW
Obligations, whether taxable or tax-exempt, sold in a public offering in an amount of
$1 million or more are subject to Rule 15c2-12 (the “Rule”) of the United States Securities and
Exchange Commission (the “SEC”). Additionally, the City may have covenanted to comply
with the Rule even with respect to Obligations that would otherwise be exempt from the Rule
(e.g., Obligations sold in a private placement or Obligations sold in an amount less than
$1 million). Pursuant to the Rule, the City is required to make annual filings of certain
information, as well as make filings upon the occurrence of certain specified events. All filings
must be made with the Municipal Securities Rulemaking Board (the “MSRB”) through its
Electronic Municipal Market Access System (“EMMA”) at emma.msrb.org.
A. Annual Filings.
The City must file the information listed below with EMMA within six (6) months of
each fiscal year end for so long as the respective series of Obligations remains outstanding. The
City’s fiscal year ends on September 30 of each year. Therefore, the City must provide updated
B-6
information by March 31 of the subsequent year. If audited financial statements are not available
by March 31, the City must provide unaudited financial information by such date and provide
audited financial statements when such statements become available. The City must file each of
the following items with EMMA:
(1) The City’s audited financial statements; and
(2) An update of the financial tables included in the Official Statement used in
connection with the Obligations as described under the caption "Continuing
Disclosure of Information". The information should be from the most recent
fiscal year end.
The Responsible Person must compile, prepare and make such filings within the required
time, or, alternatively, contract with a third-party, such as the City’s financial advisor, to make
such filings on the City’s behalf.
B. Notices of Specified Events.
The City must provide notice of any of the following events with respect to the
Obligations to the MSRB in a timely manner (but not in excess of ten business days after the
occurrence of the event):
(1) Principal and interest payment delinquencies;
(2) Non-payment related defaults, if material;
(3) Unscheduled draws on debt service reserves reflecting financial difficulties;
(4) Unscheduled draws on credit enhancements reflecting financial difficulties;
(5) Substitution of credit or liquidity providers, or their failure to perform;
(6) Adverse tax opinions, the issuance by the IRS of proposed or final determinations
of taxability, Notices of Proposed Issue (IRS Form 5701–TEB) or other material
notices or determinations with respect to the tax status of the Obligations, or other
material events affecting the tax status of the Obligations;
(7) Modifications to rights of Obligation holders, if material;
(8) Obligations calls (includes redemptions and other early payments), if material,
and tender offers;
(9) Defeasances;
(10) Release, substitution, or sale of property securing repayment of the Obligations, if
material;
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(11) Rating changes;
(12) Bankruptcy, insolvency, receivership or similar event of the City;
(13) The consummation of a merger, consolidation, or acquisition involving the City
or the sale of all or substantially all of the assets of the City, other than in the
ordinary course of business, the entry into a definitive agreement to undertake
such an action or the termination of a definitive agreement relating to any such
actions, other than pursuant to its terms, if material;
(14) Appointment of a successor or additional paying agent or the change of name of a
paying agent, if material; and
(15) In a timely manner, notice of a failure of the City to make the required annual
filings listed in Subsection II(A) above.
The Responsible Person should review this list at regular intervals to determine whether
any event has occurred that may require a filing with EMMA.
C-1
EXHIBIT C
PRELIMINARY OFFICIAL STATEMENT
PRELIMINARY OFFICIAL STATEMENT
DATED __________, 2017
NEW ISSUE - Book-Entry-Only
In the opinion of Bond Counsel, interest on the Obligations will be excludable from gross income for federal income tax purposes under statutes, regulations,
published rulings and court decisions existing on the date thereof, subject to the matters described under “TAX MATTERS” herein, including the alternative
minimum tax on corporations.
CITY OF COLLEGE STATION, TEXAS
(a Home-Rule City located in Brazos County, Texas)
$30,310,000*$60,750,000*
GENERAL OBLIGATION IMPROVEMENT CERTIFICATES OF OBLIGATION
AND REFUNDING BONDS SERIES 2017
SERIES 2017
Dated Date: July 1, 2017 Due: February 15, as shown on inside cover
Interest Accrual Date: Date of Delivery
The $30,310,000* City of College Station, Texas General Obligation Improvement and Refunding Bonds, Series 2017 (the “Bonds”) and the $60,750,000* City
of College Station, Texas Certificates of Obligation, Series 2017 (the “Certificates”) are being issued by the City of College Station, Texas (the “City”) pursuant
to the terms of two separate ordinances adopted by the governing body of the City. In each of the ordinances, the City Council of the City delegated authority to
certain authorized officials of the City to finalize the pricing of the Obligations. The Bonds and the Certificates are referred to herein collectively as the
“Obligations.”
The Obligations are issuable only in fully registered form in the denomination of $5,000 principal amount or integral multiples thereof, initially registered solely
in the name of Cede & Co., as registered owner and nominee for The Depository Trust Company (“DTC”), New York, New York, acting as securities depository
for the Obligations. The Obligations initially will be available to purchasers in book-entry-form only. So long as Cede & Co. is the registered owner of the
Obligations, as nominee for DTC, the Paying Agent/Registrar, initially The Bank of New York Mellon Trust Company, N.A., Dallas, Texas (the “Paying
Agent/Registrar”) will pay the principal of and interest on the Obligations to Cede & Co., which will, in turn, remit such amounts to DTC participants for
subsequent disbursement to the beneficial owners of the Obligations.
Interest on the Obligations will accrue from the date of delivery, and will be payable February 15 and August 15 of each year commencing February 15, 2018
until maturity or prior redemption and will be calculated on the basis of a 360-day year consisting of twelve 30-day months. (see “THE OBLIGATIONS -
GENERAL DESCRIPTION”)
The City reserves the right, at its option, to redeem Obligations of either series having stated maturities on and after February 15, 2028, in whole or in part in
principal amounts of $5,000 or any integral multiple thereof, on February 15, 2027, or any date thereafter, at the par value thereof plus accrued interest to the
date of redemption. (see “THE OBLIGATIONS – OPTIONAL REDEMPTION”).
In addition to the foregoing optional redemption provision, if in connection with the pricing of the Bonds or the Certificates the principal amounts designated in the
separate Maturity Schedules herein are combined to create Term Obligations, each such Term Obligation shall be subject to mandatory sinking fund redemption
commencing on February 15 of the first year which has been combined to form such Term Obligation and continuing on February 15 in each year thereafter until the
stated maturity date of that Term Obligation, and the amount required to be redeemed in any year shall be equal to the principal amount for such year set forth in the
serial maturity schedule on the inside cover. Term Obligations to be redeemed in any year by mandatory sinking fund redemption shall be redeemed at par and shall
be selected by lot from the Term Obligations then subject to redemption. The City, at its option, may credit against any mandatory sinking fund redemption
requirement Term Obligations of the maturity then subject to redemption which have been purchased and canceled by the City or have been redeemed and not
theretofore applied as a credit against any mandatory sinking fund redemption requirement (see “THE OBLIGATIONS - MANDATORY SINKING FUND REDEMPTION”).
SEE MATURITY SCHEDULE,INTEREST RATES AND YIELDS ON INSIDE COVER
The Obligations are payable from annual ad valorem taxes levied against all taxable property in the City, within the legal limits prescribed by law. The
Certificates are additionally payable from a subordinate lien on and pledge of $1,000 of the surplus revenues of the City’s combined utility system (see “THE
OBLIGATIONS – SECURITY AND SOURCE OF PAYMENT,” and “– TAX RATE LIMITATION”).
The Bonds and the Certificates are being offered by the City concurrently, under a common Official Statement. The Bonds and the Certificates are separate and
distinct securities being issued and sold independently except for the Official Statement, and, while the Bonds and Certificates share certain common attributes,
each issue is separate from the other and should be reviewed and analyzed independently, including without limitation the date of accrual and payment of
interest for each series of the securities being offered, the redemption provisions and the tax treatment of interest for federal income tax purposes.
The Obligations of each series are offered for delivery, when issued, and received by the initial purchasers (the “Initial Purchasers”) and subject to the opinion
of the Attorney General of the State of Texas and the opinion of McCall, Parkhurst & Horton L.L.P., Dallas, Texas, Bond Counsel for the City (see “APPENDIX
C – FORMS OF OPINIONS OF BOND COUNSEL”). It is expected that the Obligations will be available for delivery through the services of DTC on or about
July 12, 2017.
BIDS DUE THURSDAY, JUNE 14, 2017, AT 9:30 A.M., CDT FOR THE CERTIFICATES
BIDS DUE THURSDAY, JUNE 14, 2017, AT 10:30 A.M., CDT FOR THE BONDS
Ratings:
Moody’s: "_____"
S&P: "_____"
(See “OTHER INFORMATION –
RATINGS” herein
This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold nor may offers to buy be acceptedprior to the time the Official Statement isdelivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or thesolicitation of an offer to buy nor shall there be any sale of these securities in anyjurisdiction in whichsuch offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
__________
* Preliminary, subject to change. See "CONDITIONS OF SALE - ADVANCED ADJUSTMENT OF PRINCIPAL AMOUNT AND/OR TYPES OF BIDS" and " - POST BID MODIFICATION" in the Notice
of Sale and Bidding Instructions.
ii
MATURITY SCHEDULES*
$30,310,000*
General Obligation Improvement and Refunding Bonds, Series 2017
Due Interest Due Interest
Feb. 15 Principal*Rate Yield CUSIP (1)Feb. 15 Principal*Rate Yield CUSIP (1)
2018 470,000 2028 (2)2,805,000
2019 560,000 2029 (2)2,900,000
2020 585,000 2030 (2)920,000
2021 615,000 2031 (2)945,000
2022 2,045,000 2032 (2)980,000
2023 2,165,000 2033 (2)1,010,000
2024 2,285,000 2034 (2)1,040,000
2025 2,415,000 2035 (2)1,080,000
2026 2,545,000 2036 (2)1,115,000
2027 2,675,000 2037 (2)1,155,000
$60,750,000*
Certificates of Obligation, Series 2017
Due Interest Due Interest
Feb. 15 Principal*Rate Yield CUSIP (1)Feb. 15 Principal*Rate Yield CUSIP (1)
2018 3,415,000$2028 (2)2,865,000$
2019 2,260,000 2029 (2)2,945,000
2020 2,390,000 2030 (2)3,040,000
2021 2,515,000 2031 (2)3,130,000
2022 2,640,000 2032 (2)3,230,000
2023 2,765,000 2033 (2)3,340,000
2024 2,905,000 2034 (2)3,455,000
2025 2,780,000 2035 (2)3,570,000
2026 2,920,000 2036 (2)3,685,000
2027 3,075,000 2037 (2)3,825,000
* Preliminary, subject to change. See "CONDITIONS OF SALE - ADVANCED ADJUSTMENT OF PRINCIPAL AMOUNT AND/OR TYPES OF BIDS" and
" - POST BID MODIFICATION" in the Notice of Sale and Bidding Instructions.
(1)CUSIP numbers have been assigned to the Obligations by CUSIP Global Services, managed by S&P Capital IQ on behalf of the American
Bankers Association, and are included solely for the convenience of the purchasers of the Obligations. Neither the City, the Financial
Advisor nor the Initial Purchasers shall be responsible for the selection or correctness of the CUSIP numbers set forth herein.
(2)The City reserves the right, at its option, to redeem Obligations of either series having stated maturities on and after February 15, 2028, in
whole or in part in principal amounts of $5,000 or any integral multiple thereof, on February 15, 2027, or any date thereafter, at the par
value thereof plus accrued interest to the date of redemption.
iii
For purposes of compliance with Rule 15c2-12 of the United States Securities and Exchange Commission, as amended and in effect on the date hereof (the
“Rule”), this document constitutes a Preliminary Official Statement of the City with respect to the Obligations that has been deemed “final” by the City as of its
date except for the omission of no more than the information permitted by the Rule.
This Official Statement, which includes the cover page and the Appendices hereto, does not constitute an offer to sell or the solicitation of an offer to buy
in any jurisdiction to any person to whom it is unlawful to make such offer, solicitation or sale. No dealer, broker, salesperson or other person has been
authorized to give information or to make any representation other than those contained in this Official Statement, and, if given or made, such other
information or representations must not be relied upon.
The information set forth herein has been obtained from the City and other sources believed to be reliable, but such information is not guaranteed as to
accuracy or completeness and is not to be construed as the promise or guarantee of the Financial Advisor. This Official Statement contains, in part,
estimates and matters of opinion which are not intended as statements of fact, and no representation is made as to the correctness of such estimates and
opinions, or that they will be realized. CUSIP numbers have been assigned to this issue by CUSIP Global Services, and are included solely for the
convenience of the owners of the Obligations. Neither the City, the Financial Advisor nor the Initial Purchasers shall be responsible for the selection or
correctness of the CUSIP numbers shown on the inside cover page.
The information and expressions of opinion contained herein are subject to change without notice, and neither the delivery of this Official Statement nor
any sale made hereunder will, under any circumstances, create any implication that there has been no change in the affairs of the City or other matters
described.
In connection with this offering, the Initial Purchasers may over-allot or effect transactions which stabilize the market price of the issue at a level above
that which might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued at any time.
The Obligations are exempt from registration with the Securities and Exchange Commission and consequently have not been registered therewith. The
registration, qualification, or exemption of the Obligations in accordance with applicable securities law provisions of the jurisdiction in which these
securities have been registered or exempted should not be regarded as a recommendation thereof.
NEITHER THE CITY, ITS FINANCIAL ADVISOR NOR THE INITIAL PURCHASER MAKE ANY REPRESENTATION OR WARRANTY WITH RESPECT
TO THE INFORMATION CONTAINED IN THIS OFFICIAL STATEMENT REGARDING THE DEPOSITORY TRUST COMPANY (“DTC”) OR ITS
BOOK-ENTRY-ONLY SYSTEM.
Any information and expressions of opinion herein contained 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 or other matters
described herein since the date hereof.
The Initial Purchasers have provided the following sentence for inclusion in this Official Statement. The Initial Purchasers have reviewed the information
in this Official Statement in accordance with, and as part of, their responsibilities to investors under the federal securities laws as applied to the facts and
circumstances of this transaction, but the Initial Purchasers do not guarantee the accuracy or completeness of such information.
THIS OFFICIAL STATEMENT CONTAINS “FORWARD-LOOKING” STATEMENTS WITHIN THE MEANING OF SECTION 21E OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED. SUCH STATEMENTS MAY INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER
FACTORS WHICH MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE AND ACHIEVEMENTS TO BE DIFFERENT FROM THE FUTURE
RESULTS, PERFORMANCE AND ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. INVESTORS ARE
CAUTIONED THAT THE ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE SET FORTH IN THE FORWARD-LOOKING
STATEMENTS. See “OTHER INFORMATION – FORWARD-LOOKING STATEMENTS DISCLAIMER” herein.
References to web site addresses presented herein are for informational purposes only and may be in the form of a hyperlink solely for the reader’s
convenience. Unless specified otherwise, such web sites and the information or links contained therein are not incorporated into, and are not part of, this
final official statement for purposes of, and as that term is defined in, SEC Rule 15c2-12.
iv
TABLE OF CONTENTS
MATURITY SCHEDULES..........................................................i
OFFICIAL STATEMENT SUMMARY.....................................v
SELECTED FINANCIAL INFORMATION ........................................VII
GENERAL FUND CONSOLIDATED STATEMENT SUMMARY ..........VII
UTILITY SYSTEM CONDENSED STATEMENT OF OPERATIONS......VII
CITY OFFICIALS, STAFF AND CONSULTANTS..............viii
ELECTED OFFICIALS ................................................................VIII
SELECTED ADMINISTRATIVE STAFF .........................................VIII
CONSULTANTS AND ADVISORS ................................................VIII
INTRODUCTION ........................................................................1
DESCRIPTION OF THE CITY .........................................................1
PLAN OF FINANCING...............................................................1
PURPOSE....................................................................................1
REFUNDED OBLIGATIONS ...........................................................2
SOURCES AND USES OF PROCEEDS .............................................2
THE OBLIGATIONS ..................................................................3
GENERAL DESCRIPTION..............................................................3
AUTHORITY FOR ISSUANCE OF THE BONDS..................................3
AUTHORITY FOR ISSUANCE OF THE CERTIFICATES .......................3
SECURITY AND SOURCE OF PAYMENT.........................................3
TAX RATE LIMITATION ..............................................................3
OPTIONAL REDEMPTION .............................................................3
MANDATORY SINKING FUND REDEMPTION.................................3
NOTICE OF REDEMPTION ............................................................4
BOOK-ENTRY-ONLY SYSTEM.....................................................4
PAYING AGENT/REGISTRAR .......................................................6
TRANSFER,EXCHANGE AND REGISTRATION................................6
RECORD DATE FOR INTEREST PAYMENT .....................................6
DEFEASANCE .............................................................................6
REMEDIES OF HOLDERS OF OBLIGATIONS ...................................7
TAX INFORMATION.................................................................7
AD VALOREM TAX LAW ............................................................7
CONSTITUTIONAL AMENDMENT .................................................8
EFFECTIVE TAX RATE AND ROLLBACK TAX RATE.......................9
PROPERTY ASSESSMENT AND TAX PAYMENT..............................9
PENALTIES AND INTEREST ..........................................................9
CITY APPLICATION OF PROPERTY TAX CODE ............................10
TAX ABATEMENT POLICY ........................................................10
ECONOMIC DEVELOPMENT PROGRAMS.....................................10
TABLE 1 -VALUATION,EXEMPTIONS AND GENERAL
OBLIGATION DEBT.............................................................12
TABLE 2 -TAXABLE ASSESSED VALUATIONS BY CATEGORY ...13
TABLE 3 -VALUATION AND GENERAL OBLIGATION DEBT
HISTORY ...........................................................................14
TABLE 4 -TAX RATE,LEVY AND COLLECTION HISTORY .........14
TABLE 5 -TEN LARGEST TAXPAYERS......................................14
TABLE 6 -TAX ADEQUACY .....................................................15
TABLE 7 -ESTIMATED OVERLAPPING DEBT.............................15
DEBT INFORMATION.............................................................16
TABLE 8 -PRO-FORMA AD VALOREM TAX DEBT SERVICE
REQUIREMENTS .................................................................16
TABLE 9 -INTEREST AND SINKING FUND BUDGET
PROJECTION ......................................................................17
TABLE 10 –SELF-SUPPORTING DEBT .......................................17
TABLE 11 -AUTHORIZED BUT UNISSUED TAX BONDS .............18
ANTICIPATED ISSUANCE OF GENERAL OBLIGATION DEBT .........18
OTHER OBLIGATIONS ...............................................................18
PENSION FUND ........................................................................18
OTHER POST EMPLOYMENT BENEFITS ......................................18
FINANCIAL INFORMATION.................................................21
TABLE 12 -GENERAL FUND REVENUES AND EXPENDITURE
HISTORY ...........................................................................21
TABLE 13 -MUNICIPAL SALES TAX HISTORY .........................22
FINANCIAL POLICIES................................................................22
THE COMBINED UTILITY SYSTEM...................................23
WATERWORKS SYSTEM ...........................................................23
WASTEWATER SYSTEM ............................................................24
ELECTRIC SUPPLY SOURCE ......................................................24
WIND WATT RATES.................................................................25
TABLE 14 -HISTORICAL UTILITY USERS ..................................26
TABLE 15 -TEN LARGEST UTILITY CUSTOMERS .......................26
TABLE 16 -CONDENSED STATEMENT OF OPERATIONS ..............26
TABLE 17 –VALUE OF THE SYSTEM .........................................27
TABLE 18 –CITY’S EQUITY IN THE SYSTEM .............................27
TABLE 19 –UTILITY REVENUE BOND AND SYSTEM
SUPPORTED CERTIFICATE DEBT SERVICE ...........................28
INVESTMENTS.........................................................................28
LEGAL INVESTMENTS ..............................................................28
INVESTMENT POLICIES.............................................................29
ADDITIONAL PROVISIONS ........................................................30
CITY’S INVESTMENT POLICY....................................................30
TABLE 20 -CURRENT INVESTMENTS ........................................30
TAX MATTERS.........................................................................31
OPINION ..................................................................................31
FEDERAL INCOME TAX ACCOUNTING TREATMENT OF
ORIGINAL ISSUE DISCOUNT ...............................................31
COLLATERAL FEDERAL INCOME TAX CONSEQUENCES ..............32
STATE,LOCAL AND FOREIGN TAXES ........................................32
FUTURE AND PROPOSED LEGISLATION .....................................33
CONTINUING DISCLOSURE OF INFORMATION............33
ANNUAL REPORTS ...................................................................33
EVENT NOTICES ......................................................................33
LIMITATIONS AND AMENDMENTS .............................................34
COMPLIANCE WITH PRIOR UNDERTAKINGS ..............................34
OTHER INFORMATION.........................................................34
RATINGS .................................................................................34
LITIGATION .............................................................................34
REGISTRATION AND QUALIFICATION OF OBLIGATIONS FOR
SALE .................................................................................34
LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC
FUNDS IN TEXAS ...............................................................35
LEGAL OPINIONS .....................................................................35
AUTHENTICITY OF FINANCIAL DATA AND OTHER
INFORMATION ...................................................................35
FINANCIAL ADVISOR ...............................................................35
VERIFICATION OF ARITHMETICAL AND MATHEMATICAL
COMPUTATIONS ................................................................36
INITIAL PURCHASERS ...............................................................36
MISCELLANEOUS .....................................................................37
SCHEDULE OF REFUNDED
OBLIGATIONS ...............................................................SCHEDULE I
APPENDICES
GENERAL INFORMATION REGARDING THE CITY..................................A
EXCERPTS FROM THE ANNUAL FINANCIAL REPORT ............................B
FORMS OF OPINIONS OF BOND COUNSEL ............................................C
The cover page hereof, this page, the appendices included herein and any
addenda, supplement or amendment hereto, are part of the Official
Statement.
v
OFFICIAL STATEMENT SUMMARY
This summary is subject in all respects to the more complete information and definitions contained or incorporated in this Official
Statement. The offering of the Obligations to potential investors is made only by means of this entire Official Statement. No person is
authorized to detach this summary from this Official Statement or to otherwise use it without the entire Official Statement.
THE CITY............................. The City of College Station, Texas (the “City”) is a political subdivision and a home-rule city of the State,
located in Brazos County, Texas. The City covers approximately 51.6 square miles (see “INTRODUCTION
- DESCRIPTION OF THE CITY”).
THE BONDS .......................... The Bonds are issued as $30,310,000* City of College Station, Texas General Obligation Improvement and
Refunding Bonds, Series 2017. The Bonds are issued as serial bonds maturing on February 15 in each of
the years 2018-2037, inclusive (see “THE OBLIGATIONS - GENERAL DESCRIPTION”).If two or more serial
maturities of the Bonds are grouped into a single maturity (the “Term Bonds”) by the Initial Purchasers,
such Term Bonds will be subject to mandatory sinking fund redemption in accordance with applicable
provisions of the Bond Ordinance.
THE CERTIFICATES ............. The Certificates are issued as $60,750,000* City of College Station, Texas Certificates of Obligation, Series
2017. The Certificates are issued as serial certificates maturing on February 15 in each of the years 2018-
2037, inclusive (see “THE OBLIGATIONS - GENERAL DESCRIPTION”).If two or more serial maturities of
the Certificates are grouped into a single maturity (the “Term Certificates”) by the Initial Purchasers, such
Term Certificates will be subject to mandatory sinking fund redemption in accordance with applicable
provisions of the Certificate Ordinance.
PAYMENT OF INTEREST ...... Interest on the Bonds will accrue from the date of delivery, and will be payable February 15 and August 15
of each year commencing February 15, 2018 until maturity or prior redemption and will be calculated on the
basis of a 360-day year consisting of twelve 30-day months. Interest on the Certificates will accrue from the
date of delivery, and will be payable February 15 and August 15 of each year commencing February 15,
2018 until maturity or prior redemption and will be calculated on the basis of a 360-day year consisting of
twelve 30-day months. (see “THE OBLIGATIONS - GENERAL DESCRIPTION”).
AUTHORITY FOR ISSUANCE
OF THE BONDS .................... The Bonds are issued pursuant to the general laws of the State, particularly Chapters 1207, 1251, 1331 and
1371, Texas Government Code, an ordinance passed by the City Council of the City, and an election held
November 4, 2008. In the ordinance authorizing the issuance of the Bonds, the City Council delegated
pricing of the Bonds to a “Pricing Officer” who will approve the terms of sale of the Bonds. (see “THE
OBLIGATIONS - AUTHORITY FOR ISSUANCE OF THE BONDS”).
AUTHORITY FOR ISSUANCE
OF THE CERTIFICATES ....... The Certificates are issued pursuant to the general laws of the State, particularly Chapter 1371, Texas
Government Code and Subchapter C of Chapter 271, Texas Local Government Code, as amended; and an
ordinance passed by the City Council of the City. In the ordinance authorizing the issuance of the
Certificates, the City Council delegated pricing of the Certificates to a “Pricing Officer” who will approve
the terms of sale of the Certificates. (see “THE OBLIGATIONS - AUTHORITY FOR ISSUANCE OF THE
CERTIFICATES”).
SECURITY FOR THE
BONDS .................................. The Bonds constitute direct obligations of the City, secured by and payable from the levy and collection of a
direct and continuing ad valorem tax, within the limits prescribed by law, on all taxable property located within
the City (see “THE OBLIGATIONS - SECURITY AND SOURCE OF PAYMENT”). Article XI, Section 5, of the
Texas Constitution is applicable to the City, and limits its maximum ad valorem tax rate to $2.50 per $100
Taxable Assessed Valuation for all City purposes. The Home-Rule Charter of the City adopts the
constitutionally authorized maximum tax rate of $2.50 per $100 Taxable Assessed Valuation.
SECURITY FOR THE
CERTIFICATES...................... The Certificates constitute direct obligations of the City, secured by and payable from a combination of (i) the
levy and collection of an annual direct and continuing ad valorem tax, within the limits prescribed by law, on all
taxable property located within the City, and (ii) a subordinate lien on and pledge of $1,000 of the surplus
revenues derived from the City’s combined utility system (see “THE OBLIGATIONS - SECURITY AND SOURCE
OF PAYMENT”). Article XI, Section 5, of the Texas Constitution is applicable to the City, and limits its
maximum ad valorem tax rate to $2.50 per $100 Taxable Assessed Valuation for all City purposes. The Home-
Rule Charter of the City adopts the constitutionally authorized maximum tax rate of $2.50 per $100 Taxable
Assessed Valuation.__________
* Preliminary, subject to change. See "CONDITIONS OF SALE - ADVANCED ADJUSTMENT OF PRINCIPAL AMOUNT AND/OR TYPES OF BIDS" and " -
POST BID MODIFICATION" in the Notice of Sale and Bidding Instructions.
vi
REDEMPTION ....................... The City reserves the right, at its option, to redeem Obligations of either series having stated maturities on
and after February 15, 2028, in whole or in part in principal amounts of $5,000 or any integral multiple
thereof, on February 15, 2027, or any date thereafter, at the par value thereof plus accrued interest to the
date of redemption (see “THE OBLIGATIONS – OPTIONAL REDEMPTION”). Additionally, the Obligations
may be subject to mandatory redemption in the event the Initial Purchasers elect to aggregate one or more
maturities as a term Obligation. (See “THE OBLIGATIONS – MANDATORY SINKING FUND REDEMPTION.”)
TAX EXEMPTION ................... In the opinion of Bond Counsel, the interest on the Obligations will be excludable from gross income for
federal income tax purposes under existing law, including the alternative minimum tax on corporations. See
“TAX MATTERS” for a discussion of the opinion of Bond Counsel and Exhibit C.
USE OF BOND PROCEEDS ..... Proceeds from the sale of the Bonds will be used to (i) pay for the costs of constructing and improving
streets and roads including related drainage, landscaping, lighting, related thereto; (ii) pay for the costs of
constructing and improving the City library (iii) refund certain obligations of the City described in Schedule
I to this Official Statement (the “Refunded Obligations”) and (iv) pay the costs incurred in connection with
the issuance of the Bonds (see “PLAN OF FINANCING – SOURCES AND USE OF PROCEEDS”).
USE OF CERTIFICATE
PROCEEDS.......................... Proceeds from the sale of the Certificates will be used for (i) constructing, improving and extending streets,
roads and pedestrian facilities including related signalization, drainage, irrigation, landscaping, lighting and
signage; (ii) constructing and equipping a new police station; (iii) purchasing and installing technology
improvements including new electronic storage equipment for the City and fiber optic infrastructure for use
by the City; (iv) purchasing public safety radios and radio system equipment related thereto; (v) purchasing
self-contained breathing apparatuses and related equipment for the fire department; (vi) designing and
constructing City gateway signage; (vii) designing, constructing, equipping and installing park and
recreation equipment and improvements including rehabilitating and improving aquatic facilities,
playground improvements and equipment, park infrastructure improvements, upgrades and rehabilitation;
(viii) constructing improvements and extensions to the City's combined waterworks, sewer and electric
systems including distribution, transmission, system lines and wells; and (ix) to pay the costs incurred in
connection with the issuance of the Certificates (see “PLAN OF FINANCING – SOURCES AND USE OF
PROCEEDS”).
RATINGS .............................The Obligations and presently outstanding tax supported debt of the City are rated “_____” by Moody's
Investors Service, Inc. (“Moody's”) and “_____” by Standard & Poor's Ratings Services, a Standard &
Poor’s Financial Services LLC business (“S&P”), without regard to credit enhancement (see “OTHER
INFORMATION – RATINGS”).
BOOK-ENTRY-ONLY
SYSTEM .............................. The definitive Obligations will be initially registered and delivered only to Cede & Co., the nominee of The
Depository Trust Company (“DTC”) pursuant to the Book-Entry-Only System described herein. Beneficial
ownership of the Obligations may be acquired in denominations of $5,000 or integral multiples thereof. No
physical delivery of the Obligations will be made to the beneficial owners thereof. Principal of and interest
on the Obligations will be payable by the Paying Agent/Registrar to Cede & Co., which will make
distribution of the amounts so paid to the participating members of DTC for subsequent payment to the
beneficial owners of the Obligations (see “THE OBLIGATIONS - BOOK-ENTRY-ONLY SYSTEM”).
PAYMENT RECORD ..............Other than a late payment on the City’s Certificates of Obligation, Series 2002 that occurred in 2003, the
City has never defaulted in payment of its general obligation tax debt.
[Remainder of Page Intentionally Left Blank]
vii
SELECTED FINANCIAL INFORMATION
Ratio Tax
Fiscal Per Capita Per Capita Debt to
Year Estimated Taxable Taxable Net Net Taxable
Ended City Assessed Assessed Ad Valorem Ad Valorem Assessed
9/30 Population(1)Valuation(2)Valuation Tax Debt(3)Tax Debt Valuation
2012 97,888 5,738,615,002$58,624$96,390,000$985$1.68%100.09%
2013 99,918 5,944,312,987 59,492 96,750,000 968 1.63%100.30%
2014 102,117 6,231,119,010 61,019 88,100,000 863 1.41%100.15%
2015 106,465 6,654,600,834 62,505 101,630,000 955 1.53%99.17%
2016 109,859 7,162,738,280 65,199 118,350,000 1,077 1.65%100.03%
2017 109,936 7,623,964,171 (4)69,349 172,625,000 (5)1,570 (5)2.26%(5)89.70%(6)
Collection
Total
Percent
_______________
(1)Source: The City.
(2)As reported by the Brazos Central Appraisal District; subject to change during the ensuing year.
(3)Payable from ad valorem taxes. Does not include self-supporting debt. See “TABLE 10 – SELF-SUPPORTING DEBT” for detail on the City’s
self supported tax debt.
(4)Certified taxable assessed valuation for tax year 2016 as reported by the Brazos Central Appraisal District. This amount is subject to
change during ensuing year.
(5)Projected, includes the Obligations and excludes the Refunded Obligations.
(6)Collections as of March 15, 2017. A portion of the City’s taxpayer base has elected to provide split payments to the City which will be due
in part on June 30, 2017.
GENERAL FUND CONSOLIDATED STATEMENT SUMMARY
2016 2015 2014 2013 2012
Beginning Balance 22,423,064$20,244,248$15,925,531$16,492,693$14,393,033$
TotalRevenue 60,087,950 58,378,174 50,325,825 48,229,096 46,560,274
TotalExpenditures 77,508,715 68,827,167 61,303,335 59,483,559 55,670,118
Other Financing Sources 14,130,903 12,627,809 15,296,227 10,687,301 11,209,504
Ending Balance
(1)19,133,202$22,423,064$20,244,248$15,925,531$16,492,693$
For FiscalYear Ended September 30,
_______________
(1)The City’s financial policies require a General Fund balance of 15% of budgeted appropriations at year end. To the extent that the General
Fund balance exceeds this amount, this surplus may be expended in future years for one time expenditures such as capital items and short
term projects.
(2)Restated.
UTILITY SYSTEM CONDENSED STATEMENT OF OPERATIONS
2016 2015 2014 2013 2012
Revenues:
Electric 98,904,688$98,763,293$95,677,765$92,892,541$94,396,234$
Water and Wastewater 29,484,851 28,732,968 27,550,262 29,018,108 27,652,449
Interest 346,312 180,423 116,433 170,062 136,974
Other 3,636,420 3,546,138 2,890,061 3,670,710 2,857,223
TotalRevenues 132,372,271$131,222,822$126,234,521$125,751,421$125,042,880$
Expenses:
TotalExpenses 76,771,094$82,079,813$100,235,329$90,519,871$88,927,662$
Net Available for Debt Service 55,601,177$49,143,009$25,999,192$35,231,550$36,115,218$
Water (Units Served)41,709 41,540 40,768 40,767 39,338
Wastewater (Units Served)40,866 40,806 39,128 38,608 36,908
Electric (Units Served)40,141 43,471 38,198 38,456 39,123
For FiscalYear Ended September 30,
viii
CITY OFFICIALS, STAFF AND CONSULTANTS
ELECTED OFFICIALS
Term
Name Position Expiration Occupation
Karl P. Mooney Mayor 4 mos (1)11/19 Texas A&M University Director
Julie Schultz Mayor Pro Tem 6 Years (2)11/17 Business Owner
Blanche Brick Council Member 6 Years (3)11/17 Professor
Jerome Rektorik Council Member 4 mos (4)11/19 Retired
Linda Harvell Council Member 4 mos (4)11/17 Business Owner
Barry Moore Council Member 4 mos (4)11/18 Commercial RE Broker
James Benham Council Member 4.5 Years (3)11/18 Business Owner
Length of
Service
_________________
(1) Elected November 2016 - Former City of College Station Council Member 2011-2016
(2) Elected November 2012.
(3) Elected May 2011.
(4) Elected November 2016.
SELECTED ADMINISTRATIVE STAFF
Name Position
Kelly Templin City Manager 5.0 (1)
Chuck Gillman Deputy City Manager 9.5 (2)
Jeff Kersten Assistant City Manager 26.0 (3)
Jeff Capps Assistant City Manager 24.0 (4)
Carla Robinson City Attorney 18.5
Sherry Mashburn City Secretary 6.5
Ty Elliott InternalAuditor 9.0
Mary Ellen Leonard Director of Finance 1.0
David Coleman Director of Water Services 11.5
Timothy Crabb Director of Electric Utility 10.5 (5)
Ben Roper Director of Information Technology 12.5
David Schmitz Director of Parks and Recreation 9.0 (6)
Lance Simms Director of Development Services 21.0 (7)
Donald Harmon Director of Public Works and CIP 17.5 (8)
Alison Pond Director of Human Resources 8.5
Jay Socol Public Communications Director 7.5
Length of Service
to the City
(in Years)
_______________
(1) City Manager since November 2013; previously served as Planning & Development Director 2002-2004.
(2) Deputy City Manager since January 2014; previously served as Director of Public Works and CIP.
(3) Assistant City Manager since January 2014; previously served as Chief Financial Officer.
(4) Assistant City Manager since June 2014; previously served as Chief of Police.
(5) Director of Electric Utility since December 2012; previously served as Assistant Director of Electric Utility.
(6) Director of Parks and Recreation since May 2011; previously served as Assistant Director of Parks and Recreation.
(7) Director of Development Services since March 2014; previously Assistant Director of Development Services.
(8) Director of Public Works and CIP since January 2014; previously Assistant Director of Public Works and CIP.
CONSULTANTS AND ADVISORS
Auditors ................................................................................................................................................. Ingram, Wallis & Company
Bryan, Texas
Bond Counsel .............................................................................................................................McCall, Parkhurst & Horton L.L.P.
Dallas, Texas
Financial Advisor.............................................................................................First Southwest, a Division of Hilltop Securities Inc.
Houston, Texas
ix
For additional information regarding the City, please contact:
Jeff Kersten
Assistant City Manager
City of College Station
1101 Texas Avenue
College Station, Texas 77840
(979) 764-3555 Phone
or
Drew Masterson
First Southwest, a Division of
Hilltop Securities Inc.
700 Milam Street, Suite 500
Houston, Texas 77002
(713) 651-9850 Phone
[Remainder of Page Intentionally Left Blank]
1
PRELIMINARY OFFICIAL STATEMENT
RELATING TO
CITY OF COLLEGE STATION, TEXAS
(a Home-Rule City located in Brazos County, Texas)
$30,310,000*
GENERAL OBLIGATION
IMPROVEMENT AND
REFUNDING BONDS
SERIES 2017
$60,750,000*
CERTIFICATES OF OBLIGATION
SERIES 2017
INTRODUCTION
This Official Statement, which includes the cover pages and Appendices hereto, provides certain information regarding the issuance of the
$30,310,000* City of College Station, Texas General Obligation Improvement and Refunding Bonds, Series 2017 (the “Bonds”) and the
$60,750,000* City of College Station, Texas Certificates of Obligation, Series 2017 (the “Certificates”). The Bonds and the Certificates are
referred to herein collectively as the “Obligations.” Capitalized terms used in this Official Statement, except as otherwise indicated herein, have
the same meanings assigned to such terms in the ordinances authorizing the issuance of the Bonds (the “Bond Ordinance”) and the Certificates
(the “Certificate Ordinance”), respectively. The Bond Ordinance and the Certificate Ordinance are collectively referred to herein as the
“Ordinances.” In the Ordinances, the City Council delegated to certain officers known as “Pricing Officers” of the City the authority to finalize
the pricing of the Obligations.
There follows in this Official Statement descriptions of the Obligations and certain information regarding the City and its finances. All
descriptions of documents contained herein are only summaries and are qualified in their entirety by reference to each such document.
Copies of such documents may be obtained from the City's Financial Advisor, FirstSouthwest, a Division of Hilltop Securities Inc.,
Houston, Texas.
DESCRIPTION OF THE CITY
The City is a political subdivision and municipal corporation of the State of Texas (the “State”), duly organized and existing under the laws
of the State, including the City's Home Rule Charter. The City was incorporated in October 1938, and first adopted its Home-Rule Charter
in October 1938, which was last amended in November 2012. The City operates under a Council/City Manager form of government with a
City Council comprised of the Mayor and six Council members. Some of the services that the City provides are: public safety (police and
fire protection), highways and streets, electric, water and sanitary sewer utilities, health and social services, culture-recreation, public
transportation, public improvements, planning and zoning, and general administrative services. The 2010 Census population was 93,857
and the current estimated population of the City is 109,956. The City covers approximately 51.6 square miles.
PLAN OF FINANCING
PURPOSE OF THE BONDS
Proceeds from the sale of the Bonds will be used to (i) pay for the costs of constructing and improving streets and roads including related
drainage, landscaping, lighting, related thereto; (ii) pay for the costs of constructing and improving the City library (iii) refund certain
obligations of the City described in Schedule I to this Official Statement (the “Refunded Obligations”) and (iv) pay the costs incurred in
connection with the issuance of the Bonds (see “PLAN OF FINANCING – SOURCES AND USE OF PROCEEDS”).
PURPOSE OF THE CERTIFICATES
Proceeds from the sale of the Certificates will be used for (i) constructing, improving and extending streets, roads and pedestrian facilities
including related signalization, drainage, irrigation, landscaping, lighting and signage; (ii) constructing and equipping a new police station;
(iii) purchasing and installing technology improvements including new electronic storage equipment for the City and fiber optic
infrastructure for use by the City; (iv) purchasing public safety radios and radio system equipment related thereto; (v) purchasing self-
contained breathing apparatuses and related equipment for the fire department; (vi) designing and constructing City gateway signage; (vii)
designing, constructing, equipping and installing park and recreation equipment and improvements including rehabilitating and improving
aquatic facilities, playground improvements and equipment, park infrastructure improvements, upgrades and rehabilitation; (viii)
constructing improvements and extensions to the City's combined waterworks, sewer and electric systems including distribution,
transmission, system lines and wells; and (ix) to pay the costs incurred in connection with the issuance of the Certificates (see “PLAN OF
FINANCING – SOURCES AND USE OF PROCEEDS”).
__________
* Preliminary, subject to change. See "CONDITIONS OF SALE - ADVANCED ADJUSTMENT OF PRINCIPAL AMOUNT AND/OR TYPES OF BIDS" and " - POST BID
MODIFICATION" in the Notice of Sale and Bidding Instructions.
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REFUNDED OBLIGATIONS
The principal of and interest due on the Refunded Obligations are to be paid on the respective interest payment dates and redemption dates of
such Refunded Obligations, from funds to be deposited pursuant to a certain Escrow Agreement (the “Escrow Agreement”) between the City
and The Bank of New York Mellon Trust Company, N.A., Dallas, Texas (the “Escrow Agent”). The Bond Ordinance authorizing the Bonds
provides that from the proceeds of the sale of the Bonds and other available moneys of the City, if any, the City will deposit with the Escrow
Agent the amount necessary to accomplish the discharge and final payment of the Refunded Obligations on their respective redemption dates.
Such funds will be held by the Escrow Agent in a special escrow account (the “Escrow Fund”) and used to purchase (i) direct noncallable
obligations of the United States, including obligations that are unconditionally guaranteed by the United States or (ii) noncallable obligations of
an agency or instrumentality of the United States, including obligations that are unconditionally guaranteed or insured by the agency or
instrumentality and that, on the date the governing body of the City adopts the proceedings authorizing the issuance of refunding bonds, are
rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent (the “Escrow Securities”).
Under the Escrow Agreement, the Escrow Fund is irrevocably pledged to the payment of the principal of and interest on the Refunded
Obligations.
Grant Thornton LLP, a nationally recognized accounting firm, will verify at the time of delivery of the Bonds to the underwriters listed on the
cover page hereof (the “Initial Purchasers”) the mathematical accuracy of the schedules that demonstrate the Escrow Securities will mature and
pay interest in such amounts which, together with uninvested funds, if any, in the Escrow Fund, will be sufficient to pay, when due, the
principal of and interest on the Refunded Obligations.Such maturing principal of and interest on the Escrow Securities will not be
available to make debt service payments on the Bonds (see “OTHER INFORMATION - VERIFICATION OF ARITHMETICAL AND
MATHEMATICAL COMPUTATIONS”).
By the deposit of the Escrow Securities and cash, if necessary, with the Escrow Agent pursuant to the Escrow Agreement sufficient to pay the
redemption price of the Refunded Obligations on their respective redemption dates, the City will have effected the defeasance of all of the
Refunded Obligations in accordance with State law. As a result of such defeasance, the Refunded Obligations will be outstanding only for the
purpose of receiving payments from the Escrow Securities and any cash held for such purpose by the Escrow Agent and such Refunded
Obligations will not be deemed as being outstanding obligations of the City payable from taxes or revenues nor for the purpose of applying any
limitation on the issuance of debt.
The City has covenanted in the Escrow Agreement to make timely deposits to the Escrow Fund, from lawfully available funds, of any additional
amounts required to pay the principal of and interest on the Refunded Obligations, if for any reason, the Escrow Securities and cash balances on
deposit or scheduled to be on deposit in the Escrow Fund are insufficient to make such payment.
SOURCES AND USES OF PROCEEDS
The proceeds from the sale of the Obligations, and the cash contribution by the City, will be applied approximately as follows:
THE BONDS THE CERTIFICATES
Sources of Funds Sources of Funds
Par Amount -$Par Amount -$
OriginalIssue Premium -OriginalIssue Premium -
Issuer Contribution -TotalUses of Funds -$
TotalUses of Funds -$
Use of Funds Use of Funds
Deposit to Project Fund -$Deposit to Project Fund -$
Deposit to Escrow Fund -Deposit to Interest and Sinking Fund -
Deposit to Interest and Sinking Fund -Underwriters' Discount -
Underwriters' Discount -Costs of Issuance -
Costs of Issuance -TotalUses of Funds -$
TotalUses of Funds -$
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THE OBLIGATIONS
GENERAL DESCRIPTION
The Obligations will bear interest from the date of delivery to the Initial Purchasers, and mature on February 15 in each of the years and in
the amounts shown on the inside cover page hereof. Interest on the Obligations will be calculated on the basis of a 360-day year consisting
of twelve 30-day months. Interest on the Obligations will accrue from the date of delivery, and will be payable February 15 and August 15
of each year commencing February 15, 2018 until maturity or prior redemption and will be calculated on the basis of a 360-day year
consisting of twelve 30-day months. The definitive Obligations will be issued only in fully registered form in any integral multiple of
$5,000 for any one maturity and will be initially registered and delivered only to Cede & Co., the nominee of The Depository Trust
Company, New York, New York (“DTC”) pursuant to the Book-Entry-Only System described herein. No physical delivery of the
Obligations will be made to the beneficial owners thereof. Principal of and interest on the Obligations will be payable by the Paying
Agent/Registrar to Cede & Co., which will make distribution of the amounts so paid to the participating members of DTC for subsequent
payment to the beneficial owners of the Obligations (see “BOOK-ENTRY-ONLY SYSTEM”).
AUTHORITY FOR ISSUANCE OF THE BONDS
The Bonds are being issued pursuant to the Constitution and general laws of the State of Texas, particularly Chapters 1251, 1207, 1331 and
1371, Texas Government Code, as amended; an election held November 4, 2008 passed by a majority of the participating voters; and the
Bond Ordinance.
AUTHORITY FOR ISSUANCE OF THE CERTIFICATES
The Certificates are being issued pursuant to the Constitution and general laws of the State of Texas, particularly Chapter 1371, Texas
Government Code and Subchapter C of Chapter 271, Texas Local Government Code (the Certificate of Obligation Act of 1971), as
amended; and the Certificate Ordinance.
SECURITY AND SOURCE OF PAYMENT
The Bonds are secured by and payable from a direct and continuing annual ad valorem tax levied within the limits prescribed by law,
against all taxable property in the City.
The Certificates are secured by and payable from an annual continuing ad valorem taxes levied against all taxable property in the City,
within the legal limits prescribed by law and payable from a subordinate lien on and pledge of $1,000 of the surplus revenues of the City’s
combined utility system.
TAX RATE LIMITATION
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 ad valorem tax debt within the limits prescribed by law. Article XI,
Section 5, of the Texas Constitution is applicable to the City, and limits its maximum ad valorem tax rate to $2.50 per $100 Taxable Assessed
Valuation for all City purposes. The Home-Rule Charter of the City adopts the constitutionally authorized maximum tax rate of $2.50 per $100
Taxable 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 all debt service for obligations payable from annual ad valorem property taxes, as calculated at the time of issuance.
OPTIONAL REDEMPTION
The City reserves the right, at its option, to redeem Obligations of either series having stated maturities on and after February 15, 2028, in
whole or in part in principal amounts of $5,000 or any integral multiple thereof, on February 15, 2027, or any date thereafter, at the par
value thereof plus accrued interest to the date of redemption. If less than all of the Obligations are to be redeemed, the City shall determine
the Obligations, or portions thereof, within such maturity to be redeemed. If Obligations (or any portion of the principal sum thereof) shall
have been called for redemption and notice of such redemption shall have been given, such Obligations (or the principal amount thereof to
be redeemed) shall become due and payable on such redemption date and interest thereon shall cease to accrue from and after the
redemption date, provided funds for the payment of the redemption price and accrued interest thereon are held by the Paying
Agent/Registrar on the redemption date.
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MANDATORY SINKING FUND REDEMPTION
In addition to the foregoing optional redemption provision, if principal amounts designated in the serial maturity schedules show on the inside
cover page hereof are combined to create term bonds (the “Term Bonds”) or if principal amounts in the serial maturity schedule shown on the
inside cover page hereof are combined to create term certificates (the “Term Certificates” and together with the Term Bonds the “Term
Obligations”), each such Term Obligation shall be subject to mandatory sinking fund redemption commencing on February 15 of the first year
which has been combined to form such Term Obligation and continuing on February 15 in each year thereafter until the stated maturity date of
that Term Obligation, and the amount required to be redeemed in any year shall be equal to the principal amount for such year set forth in the
Maturity Schedules herein. Term Obligations to be redeemed in any year by mandatory sinking fund redemption shall be redeemed at par and
shall be selected by lot from the Term Obligations then subject to redemption. The City, at its option, may credit against any mandatory sinking
fund redemption requirement Term Obligations of the maturity then subject to redemption which at least 45 days prior to the mandatory sinking
fund redemption date have been purchased and canceled by the City or have been redeemed and not theretofore applied as a credit against any
mandatory sinking fund redemption requirement.
NOTICE OF REDEMPTION
Not less than 30 days prior to a redemption date for the Obligations, the City shall cause a notice of redemption to be sent by United States
mail, first class, postage prepaid, to the registered owners of the Obligations to be redeemed, in whole or in part, at the address of the
registered owner appearing on the registration books of the Paying Agent/Registrar. ANY NOTICE SO MAILED SHALL BE
CONCLUSIVELY PRESUMED TO HAVE BEEN DULY GIVEN, WHETHER OR NOT THE REGISTERED OWNER RECEIVES
SUCH NOTICE. NOTICE HAVING BEEN SO GIVEN, THE OBLIGATIONS CALLED FOR REDEMPTION SHALL BECOME DUE
AND PAYABLE ON THE SPECIFIED REDEMPTION DATE, AND NOTWITHSTANDING THAT ANY OBLIGATION OR
PORTION THEREOF HAS NOT BEEN SURRENDERED FOR PAYMENT, INTEREST ON SUCH OBLIGATION OR PORTION
THEREOF SHALL CEASE TO ACCRUE.
With respect to any optional redemption of the Obligations, unless certain prerequisites to such redemption required by the Ordinances
have been met and moneys sufficient to pay the principal of and premium, if any, and interest on the Obligations to be redeemed shall have
been received by the Paying Agent/Registrar prior to the giving of such notice of redemption, such notice shall state that said redemption
may, at the option of the City, be conditional upon the satisfaction of such prerequisites and receipt of such moneys by the Paying
Agent/Registrar on or prior to the date fixed for such redemption, or upon any prerequisite set forth in such notice of redemption. If a
conditional notice of redemption is given and such prerequisites to the redemption and sufficient moneys are not received, such notice shall
be of no force and effect, the City shall not redeem such Obligations and the Paying Agent/Registrar shall give notice, in the manner in
which the notice of redemption was given, to the effect that the Obligations have not been redeemed.
BOOK-ENTRY-ONLY SYSTEM
This section describes how ownership of the Obligations is to be transferred and how the principal of and interest on the Obligations are
to be paid to and credited by the DTC while the Obligations are registered in its nominee name. The information in this section
concerning DTC and the Book-Entry-Only System has been provided by DTC for use in disclosure documents such as this Official
Statement. The City, the Financial Advisor and the Initial Purchasers believe the source of such information to be reliable, but take no
responsibility for the accuracy or completeness thereof.
The City, the Financial Advisor and the Initial Purchasers cannot and do not give any assurance that (1) DTC will distribute payments of
debt service on the Obligations, or redemption or other notices, to DTC Participants, (2) DTC Participants or others will distribute debt
service payments paid to DTC or its nominee (as the registered owner of the Obligations), or redemption or other notices, to the Beneficial
Owners, or that they will do so on a timely basis, or (3) DTC will serve and act in the manner described in this Official Statement. The
current rules applicable to DTC are on file with the Securities and Exchange Commission, and the current procedures of DTC to be
followed in dealing with DTC Participants are on file with DTC.
DTC will act as securities depository for the Obligations. The Obligations will be issued as fully-registered securities in the name of Cede
& Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered
certificate for each maturity will be issued for the Obligations, in the aggregate principal amount of such maturity, and will be deposited
with DTC.
DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking
organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within
the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of
the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity,
corporate and municipal debt issues, and money market instrument from over 100 countries that DTC’s participants (“Direct Participants”)
deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in
deposited securities through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This
eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers
and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The
Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation,
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and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated
subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks,
trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly
or indirectly (“Indirect Participants”). Direct Participants and Indirect Participants are referred to collectively herein as “Participants”.
DTC is rated AA+ by Standard and Poor’s. The DTC Rules applicable to its Participants are on file with the Securities and Exchange
Commission. More information about DTC can be found at www.dtcc.com.
Purchases of Obligations under the DTC system must be made by or through Direct Participants, which will receive a credit for such
purchases on DTC's records. The ownership interest of each actual purchaser of each Obligation (“Beneficial Owner”) is in turn to be
recorded on the Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial
Owners are, however, expected to receive written confirmations providing details of the transaction as well as periodic statements of their
holdings, from the Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the
Obligations are to be accomplished by entries made on the books of Participants acting on behalf of Beneficial Owners. Beneficial Owners
will not receive certificates representing their ownership interests in the Obligations, except in the event that use of the book-entry system
described herein is discontinued.
To facilitate subsequent transfers, all Obligations deposited by Direct Participants with DTC are registered in the name of DTC’s
partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of
Obligations with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial
ownership. DTC has no knowledge of the actual Beneficial Owners of the Obligations; DTC’s records reflect only the identity of the
Direct Participants to whose accounts such Obligations are credited, which may or may not be the Beneficial Owners. The Participants will
remain responsible for keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by
Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory
or regulatory requirements as may be in effect from time to time. Beneficial Owners of Obligations may wish to take certain steps to
augment the transmission to them of notices of significant events with respect to the Obligations, such as redemptions, tenders, defaults,
and proposed amendments to the Obligation documents. For example, Beneficial Owners of Obligations may wish to ascertain that the
nominee holding the Obligations for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative,
Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to
them.
Redemption notices shall be sent to DTC. If less than all of the Obligations within a maturity in the series are being redeemed, DTC’s
practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Obligations unless authorized by a Direct
Participant in accordance with DTC’s Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as
possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose
accounts Obligations are credited on the record date (identified in a listing attached to the Omnibus Proxy).
Payments on the Obligations will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of
DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the
City and the Paying Agent/Registrar, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by
Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for
the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC
nor its nominee, the Paying Agent/Registrar, or the City, subject to any statutory or regulatory requirements as may be in effect from time
to time. Payment of redemption proceeds, principal and interest payments to Cede & Co. (or such other nominee as may be requested by
an authorized representative of DTC) is the responsibility of the City and the Paying Agent/Registrar. Disbursement of such payments to
Direct Participants will be the responsibility of DTC, and reimbursement of such payments to the Beneficial Owners will be the
responsibility of Participants.
DTC may discontinue providing its services as depository with respect to the Obligations at any time by giving reasonable notice to the
City and the Paying Agent/Registrar. Under such circumstances, in the event that a successor depository is not obtained, Obligations are
required to be printed and delivered.
The City may decide to discontinue use of the system of book-entry transfers through DTC (or a successor securities depository). In that event,
Obligations will be printed and delivered.
Use of Certain Terms in Other Sections of this Official Statement.In reading this Official Statement it should be understood that while the
Obligations are in the Book-Entry-Only System, references in other sections of this Official Statement to registered owners should be read to
include the person for which the Participant acquires an interest in the Obligations, but (i) all rights of ownership must be exercised through
DTC and the Book-Entry-Only System, and (ii) except as described above, notices that are to be given to registered owners under the
Ordinances will be given only to DTC.
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Information concerning DTC and the Book-Entry System has been obtained from DTC and is not guaranteed as to accuracy or completeness
by, and is not to be construed as a representation by the City or the Initial Purchasers.
PAYING AGENT/REGISTRAR
The initial Paying Agent/Registrar is The Bank of New York Mellon Trust Company, N.A., Dallas, Texas. In each Ordinance, the City retains
the right to replace the Paying Agent/Registrar. The City covenants to maintain and provide a Paying Agent/Registrar at all times until the
Obligations of either series are duly paid and any successor Paying Agent/Registrar must be a bank, trust company, financial institution, or other
entity duly qualified and legally authorized to serve as and perform the duties and services of Paying Agent/Registrar for the Obligations of
either series. Upon any change in the Paying Agent/Registrar for the Obligations, the City will promptly cause a written notice thereof to be
sent to each registered owner of the Obligations by United States mail, first class, postage prepaid, which notice will also include the address of
the new Paying Agent/Registrar.
TRANSFER,EXCHANGE AND REGISTRATION
In the event the Book-Entry-Only System should be discontinued, the Obligations may be transferred and exchanged on the registration books
of the Paying Agent/Registrar only upon presentation and surrender thereof to the Paying Agent/Registrar and such transfer or exchange will be
without expense or service charge to the registered owner, except for any tax or other governmental charges required to be paid with respect to
such registration, exchange and transfer. Obligations may be assigned by the execution of an assignment form on the respective Obligations or
by other instrument of transfer and assignment acceptable to the Paying Agent/Registrar. New Obligations will be delivered by the Paying
Agent/Registrar, in lieu of the Obligations being transferred or exchanged, at the corporate trust office of the Paying Agent/Registrar, or sent by
United States mail, first class, postage prepaid, to the new registered owner or his designee. To the extent possible, new Obligations issued in an
exchange or transfer of Obligations will be delivered to the registered owner or assignee of the registered owner in not more than three business
days after the receipt of the Obligations to be canceled, and the written instrument of transfer or request for exchange duly executed by the
registered owner or his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. New Bonds or Certificates registered and
delivered in an exchange or transfer will be in any integral multiple of $5,000 for any one maturity and for a like aggregate principal amount as
the Obligations surrendered for exchange or transfer. See “BOOK-ENTRY-ONLY SYSTEM” herein for a description of the system to be utilized
initially in regard to ownership and transferability of the Obligations. Neither the City nor the Paying Agent/Registrar will be required to
transfer or exchange any Obligation called for redemption, in whole or in part, within 45 days of the date fixed for redemption; provided,
however, such limitation of transfer will not be applicable to an exchange by the registered owner of the uncalled balance of an Obligation.
RECORD DATE FOR INTEREST PAYMENT
The record date (“Record Date”) for determining the person to whom the interest is payable on the Obligations on any interest payment date
means the close of business on the last business day of the preceding month.
In the event of a non-payment of interest on a scheduled payment date, and for 30 days thereafter, a new record date for such interest payment (a
“Special Record Date”) will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been
received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (a “Special Payment
Date,” which will be 15 days after the Special Record Date) will be sent at least five days prior to the Special Record Date by United States
mail, first class, postage prepaid, to the address of each Holder of a Obligation appearing on the registration books of the Paying
Agent/Registrar at the close of business on the day next preceding the date of mailing of such notice.
DEFEASANCE
The Ordinances provide for the defeasance of the Obligations when the payment of the principal of and premium, if any, on the Obligations,
plus interest thereon to the due date thereof (whether such due date be by reason of maturity, redemption, or otherwise), is provided by
irrevocably depositing with a paying agency, in trust (1) money sufficient to make such payment or (2) Defeasance Securities, certified by an
independent public accounting firm of national reputation to mature as to principal and interest in such amounts and at such times to insure the
availability, without reinvestment, of sufficient money to make such payment, and all necessary and proper fees, compensation and expenses of
the paying agent for the Obligations. The Ordinances provide that “Defeasance Securities” means (a) direct, noncallable obligations of the
United States of America, including obligations that are unconditionally guaranteed by the United States of America, (b) noncallable obligations
of an agency or instrumentality of the United States of America, including obligations that are unconditionally guaranteed or insured by the
agency or instrumentality and that are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its
equivalent, (c) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been
refunded and that rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent and (d)
any securities and obligations now or hereafter authorized by Texas law that are eligible to refund, retire or otherwise discharge obligations such
as the Obligations. In the Ordinances, the Pricing Officer is authorized to restrict such eligible securities and obligations as deemed
appropriate to accommodate requests from potential investors. The City has additionally reserved the right, subject to satisfying the
requirement of (1) and (2) above, to substitute other Defeasance Securities for the Defeasance Securities originally deposited, to reinvestment
the uninvested moneys on deposit for such defeasance and to withdraw for the benefit of the City moneys in excess of the amount required for
such defeasance.
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REMEDIES OF HOLDERS OF OBLIGATIONS
The Ordinances establish specific events of default with respect to the Obligations. If the City defaults in the payment of the principal of or
interest on the Obligations when due or the City defaults in the observance or performance of any of the covenants, conditions, or
obligations of the City, the failure to perform which materially, adversely affects the rights of the owners of the Obligations including but
not limited to, their prospect or ability to be repaid in accordance with the Ordinances, and the continuation thereof for a period of 60 days
after notice of such default is given by any owner to the City, the Ordinances provide that any registered owner is entitled to seek a writ of
mandamus from a court of proper jurisdiction requiring the City to make such payment or observe and perform such covenants,
obligations, or conditions. The issuance of a writ of mandamus may be sought if there is no other available remedy at law to compel
performance of the Obligations or the Ordinances and the City's obligations are not uncertain or disputed. The issuance of a writ of
mandamus is controlled by equitable principles, so rests with the discretion of the court, but may not be arbitrarily refused. There is no
acceleration of maturity of the Obligations in the event of default and, consequently, the remedy of mandamus may have to be relied upon
from year to year. The Ordinances do not provide for the appointment of a trustee to represent the interest of the holders of either series of
the Obligations upon any failure of the City to perform in accordance with the terms of the Ordinances, or upon any other condition and
accordingly all legal actions to enforce such remedies would have to undertaken of the initiative of, and be financed by, the registered
owners of the Obligations. On June 30, 2006, the Texas Supreme Court ruled in Tooke v. City of Mexia,197 S.W.3d 325 (Tex. 2006) that
a waiver of sovereign immunity in a contractual dispute must be provided for by statute in “clear and unambiguous” language. Because it is
unclear whether the Texas legislature has effectively waived the City’s sovereign immunity from a suit for money damages, registered
owners of either series of the Obligations may not be able to bring such a suit against City for breach of the Obligations of covenants
contained in either Ordinance. Even if a judgment against the City could be obtained, it could not be enforced by direct levy and execution
against the City’s property. Further, the registered owners cannot themselves foreclose on property within the City or sell property within
the City to enforce the tax lien on taxable property to pay the principal of and interest on the Obligations. Chapter 1371 of the Texas
Government Code, which pertains to the issuance of public securities by issuers such as the City, permits the City to waive sovereign
immunity in the proceedings authorizing its obligations. The City has relied upon Chapter 1371 in connection with the issuance of the
Obligations, but the City has not waived sovereign immunity.
The City is eligible to seek relief from its creditors under Chapter 9 of the U.S. Bankruptcy Code (“Chapter 9”). Although Chapter 9
provides for the recognition of a security interest represented by a specifically pledged source of revenues, the pledge of ad valorem taxes
in support of a general obligation of a bankrupt entity is not specifically recognized as a security interest under Chapter 9. Chapter 9 also
includes an automatic stay provision that would prohibit, without Bankruptcy Court approval, the prosecution of any other legal action by
creditors or registered owners of the Obligations of an entity which has sought protection under Chapter 9. Therefore, should the City avail
itself of Chapter 9 protection from creditors, the ability to enforce would be subject to the approval of the Bankruptcy Court (which could
require that the action be heard in Bankruptcy Court instead of other federal or state court); and the Bankruptcy Code provides for broad
discretionary powers of a Bankruptcy Court in administering any proceeding brought before it. The opinion of Bond Counsel will note that
all opinions relative to the enforceability of the Obligations are qualified with respect to the customary rights of debtors relative to their
creditors, principles of sovereign immunity and by general principles of equity which permit the exercise of judicial discretion.
TAX INFORMATION
AD VALOREM TAX LAW
The appraisal of property within the City is the responsibility of the Brazos Central Appraisal District (the “Appraisal District”). Excluding
agricultural and open-space land, which may be taxed on the basis of productive capacity, the Appraisal District is required under Title 1,
Texas Tax Code (referred to herein as the “Property Tax Code”) to appraise all property within the Appraisal District on the basis of 100%
of its market value and is prohibited from applying any assessment ratios. In determining the market value of property, different methods
of appraisal may be used, including the cost method of appraisal, the income method of appraisal and the market data comparison method
of appraisal, and the method considered most appropriate by the chief appraiser is to be used. State law further limits the appraised value of
a residence homestead for a tax year to an amount not to exceed the lesser of (1) the property’s market value in the most recent tax year in
which the market value was determined by the Appraisal District or (2) the sum of (a) 10% of the property’s appraised value for the
preceding tax year, (b) the appraised value of the property for the preceding tax year and (c) the market value of all new improvements to
the property. The value placed upon property within the Appraisal District is subject to review by an Appraisal Review Board, consisting
of three members appointed by the Board of Directors of the Appraisal District. The Appraisal District is required to review the value of
property within the Appraisal District at least every three years. The City may require annual review at its own expense, and is entitled to
challenge the determination of appraised value of property within the City by petition filed with the Appraisal Review Board.
Reference is made to the Property Tax Code, for identification of property subject to taxation; property exempt or which may be exempted
from taxation, if claimed; the appraisal of property for ad valorem taxation purposes; and the procedures and limitations applicable to the
levy and collection of ad valorem taxes.
Article VIII of the State Constitution (“Article VIII”) and State law provide for certain exemptions from property taxes, the valuation of
agricultural and open-space lands at productivity value, and the exemption of certain personal property from ad valorem taxation.
8
Under Section 1-b, Article VIII, and State law, the governing body of a political subdivision, at its option, may grant: (1) An exemption of
not less than $3,000 of the market value of the residence homestead of persons 65 years of age or older; (2) An exemption to the disabled
from all ad valorem taxes thereafter levied by the political subdivision; and (3) An exemption of up to 20% of the market value of residence
homesteads. The minimum exemption under this provision is $5,000. In addition State law mandates a complete exemption for the
residential homestead of disabled veterans determined to be 100% disabled by the U.S. Department of Veterans Affairs. Further, the
surviving spouse of a deceased veteran who had received a disability rating of 100% is entitled to receive a residential homestead
exemption equal to the exemption received by the deceased spouse until such surviving spouse remarries.
In the case of residence homestead exemptions granted under Section 1-b, Article VIII, ad valorem taxes may continue to be levied against
the value of homesteads exempted where ad valorem taxes have previously been pledged for the payment of debt if cessation of the levy
would impair the obligation of the contract by which the debt was created.
State law and Section 2, Article VIII, mandate an additional property tax exemption for disabled veterans or the surviving spouse or
children of a deceased veteran who died while on active duty in the armed forces; the exemption applies to either real or personal property
with the amount of assessed valuation exempted ranging from $5,000 to a maximum of $12,000.
Article VIII provides that eligible owners of both agricultural land (Section 1-d) and open-space land (Section 1-d-1), including open-space
land devoted to farm or ranch purposes or open-space land devoted to timber production, may elect to have such property appraised for property
taxation on the basis of its productive capacity. The same land may not be qualified under both Section 1-d and 1-d-1. Article VIII, Section 1-n
of the Texas Constitution provides for an exemption from taxation for “goods-in-transit,” which are defined as (i) personal property acquired or
imported into the State and transported to another location inside or outside the State, (ii) stored under a contract for bailment in public
warehouses not in any way owned or controlled by the owner of the stored goods, and (iii) transported to another location inside or outside the
State within 175 days of the date the property was acquired or imported into the State. The exemption excludes oil, natural gas, petroleum
products, aircraft and special inventory, including motor vehicle, vessel and out-board motor, heavy equipment and manufactured housing
inventory. On December 8, 2011, the Council passed an ordinance approving taxation on certain goods-in-transit. After taking such official
action, the goods-in-transit remain subject to taxation by the taxing unit until the governing body of the taxing unit rescinds or repeals its
previous action to tax goods-in-transit. If, however, a taxing unit took official action prior to October 1, 2011 to tax goods-in-transit and
pledged the taxes imposed on the goods-in-transit for the payment of a debt, taxes may continue to be imposed on goods-in-transit until the debt
is discharged, if cessation of the imposition of the tax would impair the obligation of the contract by which the debt was created.
Nonbusiness personal property, such as automobiles or light trucks, are exempt from ad valorem taxation unless the governing body of a
political subdivision elects to tax this property. Boats owned as nonbusiness property are exempt from ad valorem taxation.
Article VIII, Section 1-j, provides for “freeport property” to be exempted from ad valorem taxation. Freeport property is defined as goods
detained in Texas for 175 days or less for the purpose of assembly, storage, manufacturing, processing or fabrication. Decisions to
continue to tax may be reversed in the future; decisions to exempt freeport property are not subject to reversal.
The City and the other taxing bodies within its territory may agree to jointly create tax increment financing zones within the City, under
which the tax values on property in the zone are “frozen” at the value of the property at the time of creation of the zone. The City also may
enter into tax abatement agreements to encourage economic development. Under the agreements, a property owner agrees to construct
certain improvements on its property. The City in turn agrees not to levy a tax on all or part of the increased value attributable to the
improvements until the expiration of the agreement. The abatement agreement could last for a period of up to 10 years. See “- TAX
ABATEMENT POLICY” for a discussion of the City’s economic development guidelines and criteria.
CONSTITUTIONAL AMENDMENT
In a statewide election held on September 13, 2003, voters approved an amendment to Section 1-b, Article VIII of the Texas Constitution,
that authorized a county, city, town or junior college district to establish an ad valorem tax freeze on residence homesteads of the disabled
and of the elderly and their spouses. City Council did not take action to establish the tax limitation. Voters within the City were authorized
to submit a petition signed by five percent of the registered voters of the City requiring the City Council to call an election to determine by
majority vote whether to establish the tax limitation.
A petition was submitted and an election was held on May 10, 2008. The voters of College Station voted to approve the ad valorem
tax freeze. The City can provide no assurances of the impact, if any, implementation of this ad valorem tax freeze may have on the
City’s finances.
Under the tax freeze, the total amount of ad valorem taxes imposed by the City on a homestead that receives the exemption may not be
increased while it remains the residence homestead of that person or that person's spouse who is disabled or sixty-five years of age or older,
except to the extent the value of the homestead is increased by improvements other than repairs. If a disabled or elderly person dies in a
year in which the person received a residence homestead exemption, the total amount of ad valorem taxes imposed on the homestead by the
taxing unit may not be increased while it remains the residence homestead of that person's surviving spouse if the spouse is fifty-five years
of age or older at the time of the person's death. In addition, the Texas Legislature by general law may provide for the transfer of all or a
proportionate amount of the tax limitation applicable to a person's homestead to be transferred to the new homestead of such person if the
person moves to a different residence within the taxing unit. Once established, the governing body of the taxing unit may not repeal or
rescind the tax limitation.
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EFFECTIVE TAX RATE AND ROLLBACK TAX RATE
By the later of September 28th or 60 days after the certified appraisal roll is delivered to the City, the City Council adopts a tax rate per
$100 taxable value for the current year. The tax rate consists of two components: (1) a rate for funding of maintenance and operation
expenditures, and (2) a rate for debt service.
Under the Property Tax Code, the City must annually calculate and publicize its “effective tax rate” and “rollback tax rate”. A tax rate
cannot be adopted by the City Council that exceeds the lower of the rollback tax rate or the effective tax rate until two public hearings are
held on the proposed tax rate following a notice of such public hearing (including the requirement that notice be posted on the City’s
website if City owns, operates or controls an internet website and public notice be given by television if the City has a free access to a
television channel) and the City Council has otherwise complied with the legal requirements for the adoption of such tax rate. If the
adopted tax rate exceeds the rollback tax rate the qualified voters of the City by petition may require that an election be held to determine
whether or not to reduce the tax rate adopted for the current year to the rollback tax rate.
“Effective tax rate” means the rate that will produce last year’s total tax levy (adjusted) from this year’s total taxable values (adjusted).
“Adjusted” means lost values are not included in the calculation of last year’s taxes and new values are not included in the year’s taxable values.
“Rollback tax rate” means the rate that will produce last year's maintenance and operation tax levy (adjusted) from this year's values
(adjusted) multiplied by 1.08 plus a rate that will produce this year's debt service from this year's values (unadjusted) divided by the
anticipated tax collection rate.
The Property Tax Code provides that certain cities and counties in the State may submit a proposition to the voters to authorize an
additional one-half cent sales tax on retail sales of taxable items. If the additional tax is levied, the effective tax rate and the rollback tax
rate calculations are required to be offset by the revenue that will be generated by the sales tax in the current year.
Reference is made to the Property Tax Code for definitive requirements for the levy and collection of ad valorem taxes and the calculation
of the various defined tax rates.
PROPERTY ASSESSMENT AND TAX PAYMENT
Property within the City is generally assessed as of January 1 of each year. Business inventory may, at the option of the taxpayer, be
assessed as of September. Effective January 1, 2012, oil and gas reserves are assessed on the basis of a valuation process that uses pricing
information contained in the most recent published Early Release Overview of the Annual Energy Outlook published by the United States
Energy Information Administration, as well as appraisal formulas developed by the State Comptroller of Public Accounts. Taxes become
due October 1 of the same year, and become delinquent on February 15 of the following year. Taxpayers 65 years old or older are
permitted by State law to pay taxes on homesteads in four installments with the first due before February 15 of each year and the final
installment due before August 15.
PENALTIES AND INTEREST
Charges for penalties and interest on the unpaid balance of delinquent taxes are made as follows:
Cumulative Cumulative
Month Penalty Interest Total
February 6%1%7%
March 7 2 9
April 8 3 11
May 9 4 13
June 10 5 15
July 12 6 18
After July, penalty remains at 12%, and interest increases at the rate of 1% each month. In addition, if an account is delinquent in July, an
amount up to 20% attorney's collection fee is added to the total tax penalty and interest charge. Under certain circumstances, taxes which
become delinquent on the homestead of a taxpayer 65 years old or older incur a penalty of 8% per annum with no additional penalties or
interest assessed. In general, property subject to the City's lien may be sold, in whole or in parcels, pursuant to court order to collect the
amounts due. Federal law does not allow for the collection of penalty and interest against an estate in bankruptcy. Federal bankruptcy law
provides that an automatic stay of action by creditors and other entities, including governmental units, goes into effect with the filing of any
petition in bankruptcy. The automatic stay prevents governmental units from foreclosing on property and prevents liens for post-petition
taxes from attaching to property and obtaining secured creditor status unless, in either case, an order lifting the stay is obtained from the
bankruptcy court. In many cases post-petition taxes are paid as an administrative expense of the estate in bankruptcy or by order of the
bankruptcy court.
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CITY APPLICATION OF PROPERTY TAX CODE
The City grants an exemption to the market value of the residence homestead of persons 65 years of age or older of $30,000. The City has
not granted an additional exemption of 20% of the market value of residence homesteads. Ad valorem taxes are not levied by the City
against the exempt value of residence homesteads for the payment of debt. The City does not tax nonbusiness personal property. The City
does permit split payments, but discounts are not allowed. The City does collect the additional one-half cent sales tax for reduction of ad
valorem taxes. The City has adopted a tax abatement policy (see “TAX INFORMATION - TAX ABATEMENT POLICY”).An election was
held on May 10, 2008 and the voters of College Station approved the ad valorem tax freeze for residential homesteads for disabled and age
65 or older persons. Brazos County collects the taxes for the City.
TAX ABATEMENT POLICY
The City has established tax abatement guidelines and criteria for economic development prospects in the City. In order to be eligible for
designation as a Reinvestment Zone and receive tax abatement, the planned improvement:
1.Must be expected to have an increased appraised ad valorem tax value of at least $1,000,000 based upon the Brazos Central
Appraisal District’s assessment of the eligible property.
2.Must be expected to prevent the loss of payroll or retain, increase or create a payroll on a permanent basis in the City.
The following factors among others should be considered in determining whether to grant tax abatement and, if so, the percentage of value
to be abated and the duration of the tax abatement:
1.Value of land and existing improvements, if any;
2.Type and value of proposed improvements;
3.Productive life of proposed improvements;
4.Number of existing jobs to be retained by proposed improvements;
5.Number of type of new jobs to be created by proposed improvements;
6.Amount of local payroll to be created;
7.Whether persons residing or projected to reside within the City will have the opportunity to fill the new jobs being created;
8.Amount of local taxes to be generated directly;
9.Amount of property tax base valuation which will be increased during term of abatement and after abatement, which shall include
a definitive commitment that such valuation shall not, in any case, be less than $1,000,000;
10.The costs to be incurred by the City to provide facilities or services directly resulting from the new improvements;
11.The amount of ad valorem taxes to be paid to the City during the abatement period considering (a) the existing values, (b) the
percentage of new value abated, (c) the abatement period, and (d) the value after expiration of the abatement period;
12.The population growth of the City that occurs directly as result of new improvements;
13.The types of public improvements, if any, to be made by the applicant seeking abatement;
14.Whether the proposed improvements compete with existing businesses to the detriment of the local economy;
15.The impact on the business opportunities of existing businesses;
16.The attraction of other new businesses to the area;
17.The overall compatibility with the zoning ordinances and comprehensive plan for the area; and/or
18.Whether the project is environmentally compatible with no negative impact on quality of life perceptions.
Neither a Reinvestment Zone nor abatement agreement shall be authorized if it is determined that:
1.There would be substantial adverse affect on the provision of government service or tax base;
2.The applicant has insufficient financial capacity;
3.Planned or potential use of the property would constitute a hazard to public safety, health or morals;
4.Violation of other code or laws;
5.The agreement was signed after the commencement of construction, alteration or installation of improvements related to the
project; or
6.Any other reason deemed appropriate by the City Council
ECONOMIC DEVELOPMENT
In the fall of 2013, the College Station City Council adopted an Economic Development Master Plan. This document represents the City’s
first such effort and joins the many other Master Plans, Neighborhood, Corridor, and District Plans created to aid in successful
implementation of the Comprehensive Plan. The Master Plan defines the goals and objectives of the City’s economic development efforts
and lays out strategies and detailed actions to achieve these goals and objectives. The plan specifically identified six strategic initiatives
that the City’s economic development program area should focus its efforts on: sustain and enhance high quality of life; support and
partner with Texas A&M University and the Texas A&M University System; support retail development; support and stimulate
biotechnology research and advanced manufacturing; support and stimulate health and wellness market; and support and stimulate sports,
entertainment, and hospitality market.
11
Furthermore, the Plan also details how the plan should be monitored and updated over time, and identifies a series of formal economic
development policy guidelines that were also adopted. These guidelines state that in order to ensure the ongoing competitiveness of the
community, no State authorized incentive should immediately be discounted. The Texas Constitution and multiple State statutes identify
the role of economic development by both the State and its municipalities as a public purpose. While recognizing there is no standard
strategy, policy, or program for economic development, the Texas Legislature has created a vast array of tools that local governments have
at their disposal. The objective of these tools is to not only encourage development and diversification of the Texas economy, but to
simultaneously enhance the participating community’s overall quality of life. Incentives to consider may include, but not be limited to:
Chapter 380 financing; development fee rebates; enterprise zone program sponsorship; Freeport exemptions; infrastructure assistance; land
transactions; delayed annexation or limited purpose annexation; special districts; reinvestment zones (tax abatement or tax increment); and
fast track development process.
The City and the City of Bryan, Texas have also entered into an “Interlocal Cooperation and Joint Development Agreement” (the
“Interlocal Agreement”) in connection with implementing a joint economic development program known as the Joint Research Valley
BioCorridor Development Project (the “Project”). Under the terms of the Interlocal Agreement, the City will make funds available to the
City of Bryan, and the City of Bryan will make funds available to the City, for certain defined public infrastructure projects that are
intended to enhance development of the Project. The obligations of each city under the Interlocal Agreement shall not constitute a debt for
purposes of any provision of the State Constitution, and are intended to be paid from the general revenues of each city.
[Remainder of Page Intentionally Left Blank]
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TABLE 1 -VALUATION,EXEMPTIONS AND GENERAL OBLIGATION DEBT
2016/2017 Market Valuation Established by Brazos CentralAppraisalDistrict 7,901,230,529$
(excluding exempt property)
Less Exemptions/Reductions at 100% Market Value:
Productivity Loss 111,870,902$
Over 65 Homestead Exemptions 89,462,038
Community Housing Development Organization 9,383,418
Member Armed Service Surviving Spouse 585,429
Freeport 11,346,209
Disabled Veteran 23,215,835
Homestead 22,886,151
Abatements 8,516,376 277,266,358
2016/2017 Taxable Assessed Valuation 7,623,964,171$(1)
Debt Payable from Ad Valorem Taxes (as of 2/15/2017)
GeneralObligation Improvement Bonds, Series 2008 1,240,000
Certificates of Obligation, Series 2008 3,705,000
GeneralObligation Refunding Bonds, Series 2009 1,340,000
Certificates of Obligation, Series 2009*(2)9,850,000
GeneralObligation Improvement Bonds, Series 2009*(2)1,020,000
GeneralObligation Refunding Bonds, Series 2010 16,720,000
Certificates of Obligation, Series 2010 2,120,000
GeneralObligation Improvement Bonds, Series 2010 14,340,000
Certificates of Obligation, Series 2011 6,205,000
GeneralObligation Improvement Bonds, Series 2011 225,000
Certificates of Obligation, Series 2012 13,355,000
GeneralObligation Improvement and Refunding Bonds, Series 2012 12,990,000
Certificates of Obligation, Series 2013 8,735,000
GeneralImprovement and Refunding Bonds, Series 2013 15,335,000
Certificates of Obligation, Series 2014 29,450,000
GeneralImprovement and Refunding Bonds, Series 2014 27,865,000
Certificates of Obligation, Series 2016 23,675,000
GeneralImprovement and Refunding Bonds, Series 2016 38,420,000
The Bonds*30,310,000
The Certificates*(3)60,750,000 317,650,000
Less:Self Supporting Debt(4)145,025,000$
Less:Interest and Sinking Fund as of 9/30/2016 4,793,558
Net Debt Payable from Ad Valorem Taxes 167,831,442$
Ratio of Net Debt Payable from Ad Valorem Taxes to Taxable Assessed Valuation(5)2.20%
Per Capita Taxable Assessed Valuation - $69,349
Per Capita Net Funded Debt - $1,527 (5)
2017 Estimated Population - 109,936
* Preliminary, subject to change. See "CONDITIONS OF SALE - ADVANCED ADJUSTMENT OF PRINCIPAL AMOUNT AND/OR TYPES OF BIDS" and " - POST
BID MODIFICATION" in the Notice of Sale and Bidding Instructions.
(1)Certified taxable assessed valuation for tax year 2016 as reported by the Brazos Central Appraisal District. This amount is subject to change during
ensuing year.
(2)Excludes the Refunded Obligations.
(3)The debt service on a portion of the Certificates will be internally allocated by the City as being payable from the surplus revenues from the respective
enterprise funds. Although the City expects to pay for this portion of the Certificates with surplus enterprise funds, the Certificates are secured solely
by a pledge of ad valorem taxes and by a pledge of combined utility system surplus net revenues limited to $1,000. See “THE OBLIGATIONS-
SECURITY AND SOURCE OF PAYMENT.” There is no guarantee that payments from these enterprise funds will be made. If payments are not made from
the enterprise funds, the City will be required to levy ad valorem taxes in amounts sufficient to make such payments.
(4)In the past, the City has sold certificates of obligation to finance projects for the City’s water and sewer system, and electric system and has internally
allocated portions of this debt as payable from the respective enterprise funds. The self-supporting amounts listed above are projections of debt that is
expected to be retired by the City based on actual historical payments from these funds to pay for debt service the outstanding certificates of obligation.
There is no guarantee that payments from these funds will continue in the future. Includes a portion of the Obligations. See “DEBT INFORMATION –
TABLE 10 – SELF SUPPORTING DEBT.”
(5)Net of Interest and Sinking Fund as of September 30, 2016.
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TABLE 2 -TAXABLE ASSESSED VALUATIONS BY CATEGORY
Taxable Appraised Value, FiscalYear Ending September 30,
2017 2016 2015
% of % of % of
Category Amount Total Amount Total Amount Total
Real, Residential, Single-Family 4,470,806,990$56.58%3,942,774,761$53.35%3,657,836,541$53.15%
Real, Residential, Multi-Family 1,275,467,653 16.14%1,326,289,539 17.95%1,296,417,661 18.84%
Real, Vacant Lots/Tracts 158,722,669 2.01%142,089,823 1.92%141,077,944 2.05%
Real, Acreage (Land Only)87,626,228 1.11%92,882,946 1.26%109,675,903 1.59%
Real, Farm and Ranch Improvements 113,059,943 1.43%108,202,479 1.46%74,289,622 1.08%
Real, Commercial/Industrial 1,340,756,747 16.97%1,330,864,915 18.01%1,204,879,922 17.51%
Real, Oil, Gas & Other MineralReserves 5,036,746 0.06%10,793,941 0.15%3,227,032 0.05%
Realand Tangible Personal, Utilities 40,325,800 0.51%30,944,850 0.42%37,673,140 0.55%
Tangible Personal, Business 371,077,880 4.70%369,625,180 5.00%330,937,290 4.81%
Tangible Personal, Other 1,988,130 0.03%2,024,340 0.03%2,096,570 0.03%
RealProperty Inventory 23,079,643 0.29%17,672,671 0.24%13,256,668 0.19%
SpecialInventory 13,282,100 0.17%15,787,080 0.21%10,534,560 0.15%
TotalAppraised Value Before Exemptions 7,901,230,529$100.00%7,389,952,525$100.00%6,881,902,853$100.00%
Less: TotalExemptions/Reductions 277,266,358 227,214,245 227,302,019
Taxable Assessed Value 7,623,964,171$7,162,738,280$6,654,600,834$
% of % of
Category Amount Total Amount Total
Real, Residential, Single-Family 3,449,698,417$53.49%3,277,087,380$53.12%
Real, Residential, Multi-Family 1,121,645,054 17.39%1,070,207,772 17.35%
Real, Vacant Lots/Tracts 142,441,840 2.21%118,939,480 1.93%
Real, Acreage (Land Only)111,056,120 1.72%171,879,670 2.79%
Real, Farm and Ranch Improvements 76,318,782 1.18%22,726,592 0.37%
Real, Commercial/Industrial 1,159,961,447 17.99%1,121,943,869 18.19%
Real, Oil, Gas & Other MineralReserves 3,329,602 0.05%5,391,913 0.09%
Realand Tangible Personal, Utilities 35,261,190 0.55%35,139,050 0.57%
Tangible Personal, Business 318,648,040 4.94%309,881,970 5.02%
Tangible Personal, Other 2,138,640 0.03%2,217,020 0.04%
RealProperty Inventory 18,049,612 0.28%23,728,660 0.38%
SpecialInventory 10,293,530 0.16%8,851,423 0.14%
Exempt Property Adjustment -0.00%794,503 0.01%
TotalAppraised Value Before Exemptions 6,448,842,274$100.00%6,168,789,302$100.00%
Less: TotalExemptions/Reductions 217,723,264 224,476,315
Taxable Assessed Value 6,231,119,010$5,944,312,987$
Taxable Appraised Value, FiscalYear Ending September 30,
20132014
NOTE: Valuations shown are certified taxable assessed values reported by the Brazos Central Appraisal District to the State Comptroller
of Public Accounts. Certified values are subject to change throughout the year as contested values are resolved and the Appraisal District
updates records.
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TABLE 3 -VALUATION AND GENERAL OBLIGATION DEBT HISTORY
Ratio of Net
Fiscal Taxable G.O. Tax Debt
Year Taxable Assessed to Taxable Net G.O.
Ended Estimated Assessed Valuation Net G.O.Assessed Tax Debt
9/30 Population(1)Valuation(2)Per Capita Tax Debt(3)Valuation(4)Per Capita
2012 96,603 5,738,615,002$59,404$96,390,000$1.68%998$
2013 97,534 5,944,312,987 60,946 96,750,000 1.63%992
2014 99,918 6,231,119,010 62,362 88,100,000 1.41%882
2015 102,117 6,654,600,834 65,166 101,630,000 1.53%995
2016 106,465 7,162,738,280 67,278 118,350,000 1.65%1,112
2017 109,936 7,623,964,171 (4)69,349 172,625,000 (5)2.26%(5)1,570 (5)
(1)Source: The City.
(2)As reported by the Brazos Central Appraisal District; subject to change during the ensuing year.
(3)Payable from ad valorem taxes. Does not include self-supporting debt.
(4)Certified taxable assessed valuation for tax year 2016 as reported by the Brazos Central Appraisal District. This amount is subject to change during
ensuing year.
(5)Projected, includes the Obligations and excludes the Refunded Obligations. Preliminary, subject to change.
TABLE 4 -TAX RATE,LEVY AND COLLECTION HISTORY
FiscalYear General Interest and % Current % Total
Ended 9/30 Tax Rate Fund Sinking Fund Tax Levy Collections Collections
2012 0.4380$0.2365$0.2015$24,979,685$99.13%100.09%
2013 0.4307 0.2351 0.1956 25,503,096 99.31%100.30%
2014 0.4260 0.2329 0.1931 26,407,915 99.26%100.15%
2015 0.4525 0.2594 0.1931 29,803,314 98.70%99.17%
2016 0.4525 0.2594 0.1931 32,065,351 98.95%100.03%
2017 0.4725 0.2772 0.1953 36,653,864 89.62%(1)89.70%(1)
(1)Collections as of March 15, 2017. A portion of the City's taxpayer base has elected to provide split payments to the City which will be due in part on
June 30, 2017.
TABLE 5 -TEN LARGEST TAXPAYERS
2016/2017 % of Total
Taxable Taxable
Nature Assessed Assessed
Name of Taxpayer of Property Valuation Valuation
CPP College Station I LLC Apartments 61,727,000$0.81%
College Station HospitalL.P.Medical 57,451,650 0.75%
Post Oak Mall- College Station, LLC Retail 57,260,420 0.75%
Woodridge College Station Phase II LLC Retail 54,965,810 0.72%
SHP - The Callaway House LP Apartments 53,134,907 0.70%
Woodridge College Station Phase I LLC Retail 52,800,680 0.69%
Midway Hospitality LP Retail 51,395,920 0.67%
Culpepper Family L.P.Housing 47,459,390 0.62%
Southwest Meadows Point LP Apartments 45,867,137 0.60%
TAM The Rise Property LLC Apartments 45,454,261 0.60%
527,517,175$6.92%
15
GENERAL OBLIGATION DEBT LIMITATION . . . No general obligation debt limitation is imposed on the City under current State law or the
City's Home Rule Charter (see “THE OBLIGATIONS - TAX RATE LIMITATION”).
TABLE 6 -TAX ADEQUACY
Net Maximum Tax Supported Principaland Interest Requirements (2018)…………………………………………………………………………………………….19,150,492$(1)
$0.25373 Tax Rate at 99% Collection Produces ……………………………………………………………………………………………………………………………………….19,150,841$
Net Average Tax Supported Principaland Interest Requirements (2017-2037)……………………………………………………………………………………….11,855,929$(1)
$0.15708 Tax Rate at 99% Collection Produces ……………………………………………………………………………………………………………………………………….11,855,966$
(1)Includes the Obligations and excludes the Refunded Obligations and self supporting debt. Interest has been estimated for the purpose of illustration.
Preliminary, subject to change.
TABLE 7 -ESTIMATED OVERLAPPING DEBT
Expenditures of the various taxing entities within the territory of the City are paid out of ad valorem taxes levied by such entities on
properties within the City. Such entities are independent of the City and may incur borrowings to finance their expenditures. This
statement of direct and estimated overlapping ad valorem tax debt (“Tax Debt”) was developed by the City from information obtained from
the Brazos Central Appraisal District. Except for the amounts relating to the City, the City has not independently verified the accuracy or
completeness of such information, and no person should rely upon such information as being accurate or complete. Furthermore, certain of
the entities listed may have issued additional debt since the date hereof, and such entities may have programs requiring the issuance of
substantial amounts of additional debt, the amount of which cannot be determined. The following table reflects the estimated share of
overlapping Tax Debt of the City.
City's
Total Estimated Overlapping
2016/2017 Taxable 2016 Tax Debt as %Tax Debt as
Assessed Value Tax Rate of 2/15/2017 Applicable of 2/15/2017
City of College Station 7,623,964,171$(1)0.4525 172,625,000$(2)100.00%172,625,000$
Brazos County 14,622,516,371 0.4850 85,435,000 47.07%40,214,255
Bryan ISD 6,307,403,104 1.3500 231,015,000 2.05%4,735,808
College Station ISD 7,951,667,826 1.3960 377,605,000 88.50%334,180,425
TotalDirect and Overlapping Funded Tax Debt 551,755,487$
Ratio of Direct and Overlapping Funded Tax Debt to Taxable Assessed Valuation 7.237%
Per Capita Overlapping Funded Tax Debt 5,019$
Source: Municipal Advisory Council of Texas.
(1)Certified taxable assessed valuation for tax year 2016 as reported by the Brazos Central Appraisal. This amount is subject to change during ensuing
year.
(2)Projected, includes the Obligations and excludes self supporting debt. Preliminary, subject to change.
16
DEBT INFORMATION
TABLE 8 -PRO-FORMA AD VALOREM TAX DEBT SERVICE REQUIREMENTS*
TotalNet
Year Total Less:The Less:Tax Supported
End Outstanding Refunded Self-Supporting Debt Service
9/30 Debt Obligations*Principal Interest(1)Total Principal Interest(1)Total Debt Service(2)Requirements(2)
2017 32,270,837$325,989$16,823,045$15,121,803$
2018 29,104,499 651,979 470,000$1,365,940 1,835,940 3,415,000$2,600,350$6,015,350$17,153,318 19,150,492
2019 27,459,044 651,979 560,000 1,224,506 1,784,506 2,260,000 2,232,956 4,492,956 16,399,945 16,684,582
2020 27,486,822 651,979 585,000 1,195,881 1,780,881 2,390,000 2,116,706 4,506,706 16,464,876 16,657,554
2021 25,867,554 651,979 615,000 1,165,881 1,780,881 2,515,000 1,994,081 4,509,081 16,102,675 15,402,862
2022 23,540,834 2,146,434 2,045,000 1,099,381 3,144,381 2,640,000 1,865,206 4,505,206 15,332,788 13,711,200
2023 22,582,261 2,167,756 2,165,000 994,131 3,159,131 2,765,000 1,730,081 4,495,081 13,004,968 15,063,750
2024 21,873,974 2,173,766 2,285,000 882,881 3,167,881 2,905,000 1,588,331 4,493,331 12,673,745 14,687,675
2025 20,168,467 2,189,145 2,415,000 765,381 3,180,381 2,780,000 1,446,206 4,226,206 12,132,969 13,252,941
2026 18,934,248 2,188,418 2,545,000 641,381 3,186,381 2,920,000 1,303,706 4,223,706 11,512,674 12,643,244
2027 16,250,603 2,192,468 2,675,000 510,881 3,185,881 3,075,000 1,153,831 4,228,831 10,157,601 11,315,247
2028 14,551,445 2,211,830 2,805,000 401,931 3,206,931 2,865,000 1,033,981 3,898,981 10,601,784 8,843,744
2029 12,249,464 2,225,090 2,900,000 316,356 3,216,356 2,945,000 946,831 3,891,831 9,530,758 7,601,803
2030 10,049,866 -920,000 259,056 1,179,056 3,040,000 857,056 3,897,056 5,866,213 9,259,766
2031 8,387,955 -945,000 230,491 1,175,491 3,130,000 762,550 3,892,550 5,649,430 7,806,566
2032 7,796,050 -980,000 199,800 1,179,800 3,230,000 661,156 3,891,156 5,051,731 7,815,275
2033 6,383,600 -1,010,000 167,463 1,177,463 3,340,000 554,394 3,894,394 3,893,738 7,561,719
2034 5,046,288 -1,040,000 133,500 1,173,500 3,455,000 441,816 3,896,816 3,152,866 6,963,738
2035 1,971,625 -1,080,000 97,725 1,177,725 3,570,000 323,269 3,893,269 1,323,925 5,718,694
2036 1,974,175 -1,115,000 60,684 1,175,684 3,685,000 200,841 3,885,841 1,328,181 5,707,519
2037 --1,155,000 20,934 1,175,934 3,825,000 69,328 3,894,328 911,222 4,159,041
333,949,608$20,428,810$30,310,000$11,734,187$42,044,187$60,750,000$23,882,679$84,632,679$205,068,451$235,129,213$
The Bonds*The Certificates*
* Preliminary, subject to change. See "CONDITIONS OF SALE - ADVANCED ADJUSTMENT OF PRINCIPAL AMOUNT AND/OR TYPES OF BIDS " and " - POST BID MODIFICATION" in the Notice of Sale and
Bidding Instructions.
(1)Interest has been estimated at current market rates for the purpose of illustration.
(2)In the past, the City has sold certificates of obligation to finance projects for the City’s water and sewer system, and electric system and has internally allocated portions of this debt as payable from the
respective enterprise funds. The self-supporting amounts listed above are projections of debt that is expected to be retired by the City based on actual historical payments from these funds to pay for debt
service the outstanding certificates of obligation. There is no guarantee that payments from these funds will continue in the future. Includes a portion of the Obligations. See “TABLE 10 –SELF
SUPPORTING DEBT”and the accompanying footnotes.
17
TABLE 9 -INTEREST AND SINKING FUND BUDGET PROJECTION
TotalNet Tax Supported Debt Service Requirements, FiscalYear Ending September 30, 2017(1)15,121,803$
Interest and Sinking Fund, September 30, 2016(2)4,793,558$
Calcuated Interest and Sinking Fund Tax Levy @ 99% Collection 14,743,650
Budgeted Investment Earnings 25,000
Budgeted Transfers 258,705 19,820,913
Estimated Balance, September 30, 2017 4,699,110$
__________
(1) Excludes self-supporting debt. Includes the Obligations and excludes the Refunded Obligations. Preliminary, subject to change.
(2) The outstanding portion of the Certificates of Obligation, Series 2009, supported by the Convention Center, have been paid for in full as one transfer
in the amount of 157,979.48 to the Interest and Sinking Fund.That amount will be used to pay off future payments of the Certificates of Obligation,
Series 2009 supported by the Convention Center.
TABLE 10 –SELF-SUPPORTING DEBT*
Year Total
End Electric Wastewater Water Convention Parking Self-Supporting
9/30 Fund(1)Fund (2)Fund(3)Center(4)Landfill(5)Garage(6)Debt Service (7)
2017 5,821,929 4,490,350 5,671,753 43,039 325,498 470,475 16,823,045
2018 5,888,870 4,514,179 6,106,658 13,570 405,303 224,738 17,153,318
2019 5,692,776 4,211,075 5,862,754 13,043 397,823 222,475 16,399,945
2020 5,716,423 4,228,372 5,889,216 7,755 398,710 224,400 16,464,876
2021 5,694,939 4,174,655 5,826,616 7,555 398,910 -16,102,675
2022 6,262,106 3,277,325 5,148,416 12,230 632,710 -15,332,788
2023 5,354,651 2,934,585 4,343,591 6,880 365,260 -13,004,968
2024 5,012,489 2,918,800 4,368,441 6,630 367,385 -12,673,745
2025 4,701,218 2,661,995 4,394,616 6,380 368,760 -12,132,969
2026 4,444,490 2,661,778 4,030,891 6,130 369,385 -11,512,674
2027 3,884,077 2,450,046 3,448,338 5,880 369,260 -10,157,601
2028 4,590,567 2,078,873 3,222,716 10,568 699,060 -10,601,784
2029 4,149,464 1,922,350 2,740,449 10,190 708,305 -9,530,758
2030 2,296,493 1,929,224 1,640,497 ---5,866,213
2031 2,103,384 1,904,840 1,641,206 ---5,649,430
2032 1,746,850 1,673,175 1,631,706 ---5,051,731
2033 1,196,288 1,262,519 1,434,931 ---3,893,738
2034 599,625 1,117,469 1,435,772 ---3,152,866
2035 -338,175 985,750 ---1,323,925
2036 -337,544 990,638 ---1,328,181
2037 -341,072 570,150 ---911,222
75,156,639$51,428,400$70,814,957$149,849$5,806,368$1,142,088$205,068,451$
______________
* Preliminary, subject to change.
(1)Includes a portion of the City’s Certificates of Obligation, Series 2008, Series 2009, Series 2010, Series 2011, Series 2012, Series 2013, Series 2014
and a portion of the General Obligation Refunding Bonds, Series 2010, General Obligation Improvement and Refunding Bonds, Series 2012, Series
2013, Series 2014, and Series 2016. Includes a portion of the Obligations and excludes a portion of the Refunded Obligations.
(2)Includes a portion of the City’s Certificates of Obligation, Series 2008, Series 2010, Series 2011, Series 2012, Series 2013, Series 2014, and a portion
of the General Obligation Refunding Bonds, Series 2010, General Obligation Improvement and Refunding Bonds, Series 2012, Series 2013, Series
2014, Series 2016. Includes a portion of the Obligations and excludes a portion of the Refunded Obligations.
(3)Includes a portion of the City’s Certificates of Obligation, Series 2008, Series 2008, Series 2009, Series 2012, Series 2013, Series 2014, Series 2016,
and a portion of the General Obligation Refunding Bonds, Series 2010, General Obligation Improvement and Refunding Bonds, Series 2012, Series
2013, Series 2014, and Series 2016. Includes a portion of the Obligations and excludes a portion of the Refunded Obligations.
(4)Includes a portion of the City’s Certificates of Obligation, Series 2009. The City has transferred to the Interest and Sinking Fund $157,979.48 from
the Convention Center fund to pay the debt service shown in this column. Includes a portion of the Obligations and excludes a portion of the
Refunded Obligations.
(5)Includes a portion of the City's Certificates of Obligation, Series 2009. Includes a portion of the Obligations and excludes a portion of the Refunded
Obligations.
(6)Includes a portion of the City’s General Obligation Refunding Bonds, Series 2009.
(7)The debt service described in this table is general obligation debt for which repayment is provided from revenues from other sources. It is the City’s
current policy to provide these payments from such sources. There is no assurance that the use of these sources to make these payments will continue
in the future. If payments are not made from such sources in the future, the difference will be paid for with ad valorem taxes
18
TABLE 11 -AUTHORIZED BUT UNISSUED TAX BONDS
Date of Amount Issued
Authorization Purpose Authorized To Date The Bonds Unissued
1/24/1984 (1)Fire Substation Building 700,000$-$-$700,000$
1/24/1984 (1)Street Improvements 6,325,000 5,825,000 -500,000
11/4/2003 MunicipalComplex Improvements 7,610,000 3,955,000 -3,655,000
11/4/2008 Street Improvements 48,785,000 35,095,000 13,690,000 -
11/4/2008 Library Improvements 8,385,000 4,685,000 3,700,000 -
11/4/2008 Park Improvements 12,790,000 12,145,000 -645,000
84,595,000$61,705,000$17,390,000$5,500,000$
_______________
(1) Contains projects which may have been completed or abandoned; therefore, the remaining authorized but unissued bonds are not likely to ever be
issued.
ANTICIPATED ISSUANCE OF GENERAL OBLIGATION DEBT
The City has no firm plans for the issuance of additional general obligation debt payable from ad valorem taxes within the next twelve months.
OTHER OBLIGATIONS
Currently, the City has no outstanding capital leases or loans.
PENSION FUND
The City provides pension benefits for all of its full-time employees through the Texas Municipal Retirement System (“TMRS”), a
State-wide administered pension plan. The City makes annual contributions to the plan equal to the amounts accrued for pension expense.
(For more detailed information concerning the retirement plan, see “APPENDIX B - EXCERPTS FROM THE ANNUAL FINANCIAL REPORT” -
Section V - Note D.)
The City recently received the contribution rates for Plan Year 2015 from TMRS as determined by the December 31, 2013 actuarial valuation.
The City’s contribution rate for January 1, 2016 will be 12.78%. On September 13, 2012, Council approved revisions to the City's TMRS
Ordinance. The revisions include a reduction in the updated service credits (USC) for current employees and a reduction in the Annuity
Increase Cost of Living Adjustment (COLA) for retirees. The City's contributions rate of 13.53% became effective January 1, 2014. The
funding status as of December 31, 2015 is as follows:
12/31/2015
ActuarialValue of Assets 216,491,588$
ActuarialAccrued Liability (AAL)252,321,945
Percent of Pension Benefit Obligation 85.80%
Unfunded ActuarialAccrued Liability (UAAL)35,830,357$
AnnualCovered Payroll 50,723,075
Percent of Covered Payroll 70.64%
Estimated Employer Contribution 6,736,024$
OTHER POST EMPLOYMENT BENEFITS
PROGRAM DESCRIPTION ...In addition to pension benefits, as required by state laws and defined by City policy, the City makes available
postretirement medical, dental, vision, drug and life insurance benefits to all employees who meet TMRS retirement qualifications, retire
from the City and who enroll themselves and their eligible dependent(s) on or before the effective date of their retirement through the
City’s single-employer defined benefit other post-employment benefit (OPEB) plan. The life insurance plan provides a $10,000 fully
insured death benefit coverage upon retirement which ceases upon attainment of age 65 for retirees. So long as monthly premium
payments are made, the healthcare plan provides insurance to eligible retirees, their spouses and dependents through the City’s group
health insurance plan, which covers both active and retired members, until attainment of age 65. Benefit provisions as well as retiree
premium contributions are established by management.
19
The City determines the employer and participant contribution rates annually based on recommendations of City staff and the City’s
consultant. All medical, dental, vision and drug care benefits are provided through the City’s self-insured health plan. The benefit levels
are the same as those afforded to active employees. Life insurance for eligible retirees is paid entirely by the City.
During fiscal year 2016, 61 former employees were covered under this arrangement, with claims less retiree contributions totaling
-$705,451.
ANNUAL OPEB COST AND NET OPEB OBLIGATION ...The City’s annual OPEB cost is based on the annual required contribution (ARC)
of the City, an amount actuarially determined in accordance with the parameters of GASB Statement 45. Despite the apparent implications
of the term ARC, the City is not required to contribute the ARC to the plan each year, Instead, the ARC provides a basis for evaluating
whether the City’s contributions for OPEB are adequate to fund the benefits during the working lifetime of current employees (i.e., the
normal cost) and to amortize existing unfunded obligations (i.e., the obligations for current retirees plus that portion of the current
employees’ obligations that are attributed to past service) in a systematic manner over the amortization period prescribed by GASB.
The annual OPEB cost is the annual accounting expense recorded on the City’s Statement of Revenues, Expenses and Changes in Net
Assets and on the City’s Statement of Activities. The annual OPEB cost is equal to (1) the ARC for the current fiscal year, plus (2) interest
on the Net OPEB Obligation at the beginning of the year, reduced by (3) an adjustment to the ARC which is equal to an amortization of the
beginning of the year Net OPEB Obligation.
2013 2014 2015 2016
AnnualRequired Contribution (ARC)1,449,844$1,449,844$1,810,895$1,910,536$
Interest on Net OPEB Obligations 333,710 397,569 400,494 456,941
Adjusted to the ARC (413,492)(492,618)(522,847)(596,541)
AnnualOPEB Cost 1,370,062 1,354,795 1,688,542 1,770,936
Contributions Made (92,888)(406,326)(434,136)(705,451)
Increase in net OPEB obligation 1,277,174$948,469$1,254,406$1,065,485$
Net OPEB Obligation, beginning of year 6,674,204 7,951,378 8,899,847 10,154,253
Net OPEB Obligation, end of year 7,951,378$8,899,847$10,154,253$11,219,738$
Percentage
Fiscal Annual Actual of Annual
Year OPEB Contribution OPEB Cost Net OPEB
Ended 9/30 Costs Made Contribution Obligation
2013 1,370,062 92,888 6.78%7,951,378
2014 1,354,795 406,326 29.99%8,899,847
2015 1,688,542 434,136 25.71%10,154,253
2016 1,770,936 705,451 39.83%11,219,738
Three-Year Trend Information
Generally, the Net OPEB Obligation is the cumulative difference since the effective date of GASB 45 between the annual OPEB cost and
the employer’s contributions to the plan including the OPEB liability/(asset) at transition, if any. Whenever the City contributes an amount
less than the annual OPEB cost, this shortfall will increase the City’s Net OPEB Obligation.
ACTUARIAL METHODS AND ASSUMPTIONS ...Actuarial valuations involve estimates of the value of reported amounts and assumptions
about the probability of events far into the future. Actuarially determined amounts are subject to continual revision as actual results are
compared to past expectations and new estimates are made about the future.
The required schedule of funding progress immediately following the notes to the financial statements presents multi-year trend
information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability
for benefits. GASB No. 45 calculations are based on the types of benefits provided under the terms of the substantive plan at the time of
each valuation and on the pattern of sharing of costs between the employer and plan participants to that point. In addition, the projection
of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations
on the pattern of cost sharing between the employer and plan participants in the future.
Actuarial calculations reflect a long-term perspective. In addition, consistent with that perspective, actuarial methods and assumptions
used in developing the amounts in this report include techniques that are designed to reduce short-term volatility in actuarial accrued
liabilities.
20
The required contribution rates were determined as part of the October 1, 2014 actuarial valuation. Significant methods and assumptions
follow:
Actuarial valuation date 10/1/2014
Asset Valuation Method:Market
Actuarial Cost Method:Projected Unit Credit
Actuarial Assumption:
Investment Rate of Return*4.50%
*Includes Inflation at:3.50%
Projected Salary Increases N/A
Annual Healthcare Trend Rates:8.00% in FYE 2016 declining
to 5.25% in FYE 2021
Amortization Method:Level Dollar
RemainingAmortization Period:30 year open period
FUNDING STATUS AND FUNDING PROGRESS ...The Schedule of Funding Progress presents information as of the current valuation date and
the two preceding valuation dates. As of the date of this financial statement, the City has had three valuations
Unfunded Annual UAAL as
Actuarial Actuarial Actuarial Actuarial Covered Percentage of
Valuation Value of Accrued Liability Funded Accrued Payroll Covered
Date Assets (AAL)Ratio Liability (AAL)(Fiscal Year)Payroll
10/1/2010 -$9,356,116$0.00%9,356,116$42,298,776$22.12%
10/1/2012 -10,897,037 0.00%10,897,037 44,000,000 24.77%
10/1/2014 -15,013,856 0.00%15,013,856 44,000,000 34.12%
There are factors that affect the ability to compare amounts reported from one actuarial valuation date to the next. The assumptions that
have been changed since the previous valuation are:
-the Discount Rate has been updated to reflect changes in the allocation of assets of the employer and the expected return on
such assets;
-the Assumed Per Capita Health Benefit Costs and Assumed Expenses for retirees and dependents have been updated to
reflect changes in claims and expense expectations; and
-the Health Benefit Cost Trend and Expense Trend have been updated to reflect changes in short-term expectations of the
annual rate of increase of the Assumed Per Capita Health Benefit Costs.
The City has had three separate valuations, one of which used the October 1, 2010 valuation date, October 1, 2012 and October 1, 2014
valuation date. The October 1, 2010 valuation date was used to develop results for the fiscal year ending September 30, 2012, the October
1, 2012 valuation date was used to develop results for the fiscal years ending September 30, 2013 and 2014. The plan was changed
effective January 1, 2012 to eliminate post-65 medical coverage and was changed effective January 1, 2013 to eliminate one of the PPO
benefit options. While the plan typically undergoes a biennial valuation, pursuant to paragraph 12 of GASB 45, a new valuation must be
performed if there are significant changes to the plan since the previous valuation. The October 1, 2014 valuation date was used to develop
results for the fiscal years ending September 30, 2015 and 2016, as part of the plan’s biennial valuation.
21
FINANCIAL INFORMATION
TABLE 12 -GENERAL FUND REVENUES AND EXPENDITURE HISTORY
2016 2015 2014 2013 2012
Revenues:
Taxes 48,737,894$46,750,120$41,951,522$39,654,465$37,527,211$
Licenses & Permits 2,132,802 1,500,777 1,424,598 1,238,967 1,496,424
Intergovernmental 1,373,950 355,083 189,103 469,783 520,948
Charges for Services 3,809,206 3,572,684 2,987,778 2,605,519 2,296,105
Fines, Forfeits and Penalties 3,255,051 2,693,647 3,038,926 3,252,418 3,636,209
Investment Income 148,302 116,074 66,264 88,198 88,684
Rents & Royalties 187,328 136,228 542,816 650,407 686,729
Contributions 8,880 1,251 11,016 56,990 20,168
Other 434,537 3,252,310 113,802 212,349 287,796
TotalRevenues 60,087,950$58,378,174$50,325,825$48,229,096$46,560,274$
Expenditures:
GeneralGovernment 5,524,471$4,853,358$5,108,448$3,825,760$4,189,987$
FiscalServices 3,733,550 3,314,990 3,029,566 2,970,342 2,871,677
Police Department 20,170,450 18,533,889 17,080,568 16,515,820 15,465,837
Fire Department 16,916,819 14,881,983 13,585,022 13,297,527 12,578,396
Planning & Development Services 3,243,768 3,106,143 2,867,857 3,505,029 3,523,742
Parks and Recreation 9,279,126 8,194,670 4,596,645 4,463,535 4,329,869
Information Technology 4,491,009 4,112,987 4,207,305 4,271,209 3,844,107
Public Works 11,162,508 9,156,069 7,611,303 6,519,248 5,884,577
Library Services 1,098,326 1,138,568 1,078,851 994,476 1,072,551
Claims ----
Contributions 1,220,251 1,187,500 1,184,115 1,086,012 937,813
Other 863 217,114 222,034 1,300,627 183,530
CapitalImprovement Projects 667,574 129,896 731,621 733,974 788,032
TotalExpenditures 77,508,715$68,827,167$61,303,335$59,483,559$55,670,118$
Other Financing Sources (Uses):
Sale of GeneralFixed Assets -$8,974,205$4,582,111$-$-$
Operating Transfers In 16,507,346 15,094,866 15,158,581 14,664,450 15,539,293
Operating Transfers Out (2,376,443)(11,441,262)(4,444,465)(3,977,149)(4,329,789)
TotalOther Financing Sources (Uses)14,130,903$12,627,809$15,296,227$10,687,301$11,209,504$
Net Change in Fund Balance (3,289,862)$2,178,816$4,318,717$(567,162)$2,099,660$
Fund Balance, Beginning of Year 22,423,064 20,244,248 15,925,531 16,492,693 14,393,033
Fund Balance, End of Year 19,133,202$22,423,064$20,244,248$15,925,531$16,492,693$
FiscalYear Ended September 30,
Source: The City’s audited financial statements.
22
TABLE 13 -MUNICIPAL SALES TAX HISTORY
The City has adopted the Municipal Sales and Use Tax Act, Texas, Tax Code, Chapter 321, which grants the City the power to impose and levy
a 1% Local Sales and Use Tax within the City; the proceeds are credited to the General Fund and are not pledged to the payment of the
Obligations. Collections and enforcements are effected through the offices of the Comptroller of Public Accounts, State of Texas, who remits
the proceeds of the tax, after deduction of a 2% service fee, to the City monthly. In May 1990, the voters of the City approved the imposition of
an additional sales and use tax of one-half of one percent (½ of 1%) for property tax reduction. The total sales tax rate for the City is 1.5%.
Fiscal
Year % of Equivalent of
Ended Total Ad Valorem Ad Valorem Per
9/30 Collected (1)Tax Levy Tax Rate Capita(2)
2010 19,328,577$81.82%0.36$206$
2011 20,292,871 83.49%0.37 214
2012 21,498,319 85.84%0.38 220
2013 23,064,035 90.38%0.39 236
2014 24,565,649 92.97%0.40 245
2015 26,687,963 89.55%0.41 261
2016 27,163,480 84.71%0.38 255
(1)Provided by the City.
(2)Based on population estimates provided by the City.
FINANCIAL POLICIES
Basis of Accounting . . .The accounts of the City are organized and operated on the basis of funds and account groups. A fund is an
independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their
intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The
minimum number of funds is maintained consistent with legal and managerial requirements. Account groups are a reporting device to
account for certain assets and liabilities of the governmental funds not recorded directly in those funds. Government funds are used to
account for the City’s general government activities. Governmental fund types use the flow of current financial resources measurement
focus and the modified accrual basis of accounting.
General Fund . . . The General Fund is the City’s primary operating fund. It is used to account for all activities typically considered
governmental functions of the City. These include Public Safety, Public Works, Parks and Recreation, Economic and Planning and
Development Services, the support functions for these areas, and the administrative functions for the City.
The General Fund for the 2016-2017 fiscal year is influenced by current policies and any approved policy changes. The policies include
inter-fund equity; maintaining a balance between revenues and expenditures; and maintaining the level of service currently provided as the
City experiences residential and commercial growth.
The City’s financial policies are for a General Fund balance of 15% of budgeted appropriations at year end. To the extent that the General
Fund balance exceeds this amount, this surplus is to be expended in future years for one time expenditures such as capital items and short
term projects.
Debt Service Fund . . .The Debt Service Fund accounts for the servicing of general long-term debt not being financed by proprietary or
nonexpendable trust funds. It is the City’s policy to maintain at least 8 1/3% of annual appropriated expenditures for debt service and any
associated fees as the Debt Service Fund balance at fiscal year end. The City is in compliance with that policy.
Budgetary Procedures . . .Prior to September 1, the City Manager submits to the City Council a proposed operating budget for the fiscal
year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. All
budget requests are compiled by the Finance Department and presented with comparative and supporting data to the Mayor and City
Council for review. Public hearings are properly advertised and conducted at City Hall for taxpayer comments. Prior to September 27, the
budget is legally enacted through passage of an ordinance. The City Council must approve all transfers of budgeted amounts between
departments within any fund and any revision that alters the total expenditure of any fund. An amount is also budgeted each year for
contingencies which may arise.
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THE COMBINED UTILITY SYSTEM
WATERWORKS SYSTEM
Since December 1981, the City has had the capability to produce and deliver 100% of its water. The system has been expanded to a system
of nine wells, with a combined capacity of 29 million gallons per day. The water is delivered to the distribution system by 14 miles of 30-
inch diameter and 36 inch diameter pipeline and two pumping stations. These pipelines will be fully redundant once TxDoT completes the
Villa Maria / 2818 overpass and the City completes the pipeline re-routing necessary to accommodate the overpass.
Two of the wells mentioned above are shallow wells, less than 1,500 feet, drilled into the Carrizo and Sparta aquifers. The remaining six
are deep wells, approximately 3,000 feet, drilled in the Simsboro Sand formation of the Carrizo-Wilcox aquifer. This is a very prolific
aquifer of high quality water that has the capacity to provide an adequate water supply for the City and surrounding communities through
the year 2060, and well beyond, if managed properly.
The Simsboro Sand, and all local aquifers, are regulated by the Brazos Valley Groundwater Conservation District, and permitting
requirements have been implemented for all new water wells. College Station has obtained a Drilling/Operating Permit from the
Groundwater District for the City to drill another Simsboro Well, Well #9, which will be designed in FY-16 and constructed in FY-17.
This well will meet our projected demands for water for many years into the future. Well #10 remains in the planning stages, and would be
constructed in approximately 2021, depending upon the rate of growth of water demands. College Station is also investigating other water
supply strategies for the future. The prime example is Aquifer Storage and Recovery (ASR), which would store treated wastewater effluent
in an aquifer for future use, most likely during summer peaks. If implemented, this ASR system would greatly reduce the demand on the
drinking water system and ensure a very stable water supply for the City.
The City has completed a Water Reclamation project, which pumps effluent from the wastewater treatment plant up to Veteran’s Park for
irrigation of playing fields, reducing the demand on the potable water system by approximately 350,000 gallons per day. Additional phases
of the reclaimed water system are in the planning stages. In March 2016, the City completed a two year agreement with an oil company,
which provided the City with $470,000 of revenue for providing just under 200 million gallons of reclaimed water.
The City also has stand by generators at strategic locations sufficient to provide adequate potable water for health and safety during and
extended electrical power outage.
Water rates were established by ordinance, passed and approved by the City Council, and became effective October 1, 2010. The
Residential rates are inclined block rates to encourage water conservation.
Type of Customer Usage Charge (per 1,000 gallons)Service Charge
Meter
Size
Residential, Commercial and Industrial $ 10.19 per mo. 5/8”
10.19 per mo. 3/4”
12.78 per mo.1”
19.03 per mo. 1 1/2”
30.05 per mo.2”
94.84 per mo.3”
140.90 per mo.4”
171.53 per mo.6”
Residential $2.26 for usage from 0-10,000 gallons
$2.94 for usage from 11,000-15,000 gallons
$3.61 for usage from 16,000-20,000 gallons
$4.28 for usage from 21,000-25,000 gallons
$4.96 for usage from 26,000 gallons and more
Commercial and Industrial $2.49 per 1,000 gallons
Commercial Irrigation Usage Charge $2.68 per 1,000 gallons
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WASTEWATER SYSTEM
The City’s waste water is treated by three City-owned wastewater treatment plants, Carter Creek Treatment Plant, Lick Creek Treatment Plant,
and Carter’s Lake Treatment Plant located within the City limits. The three plants have a combined treatment capacity of 11.5 mgd as
compared to average current average daily demand of 7.0 mgd. The treatment plant’s capacity is adequate to serve a population estimated at
125,000.
Sewer rates were established by ordinance, passed and approved by the City Council, and became effective on October 1, 2016.
Residential (metered water).......................................................... $20.28 including 4,000 gallons of metered water
Usage Charge................................................................................ $4.06 per 1,000 gallons of additional metered water
$44.64 maximum per month
Residential (without meter to each unit)....................................... $25.80 per unit per month
Commercial and Industrial............................................................ $17.40 per month
Usage Charge................................................................................$4.83 per 1,000 gallons of metered water usage
There are 2,003 city residents who receive their water from Wellborn Water, but sewer is provided by the City of College Station. Those
residents pay an initial usage charge of $44.64 per month. After six months of documented waste water usage, rates can be adjusted
downward on a tiered scale.
ELECTRIC SUPPLY SOURCE
The City has multiple Power Purchase Agreements (PPAs) in order to meet its load requirements. The PPAs are currently with AEPEP
(AEP Energy Partners) and Garland Power and Light (GP&L). With AEPEP, the City has fixed block ATC PPA that expires in 2027. This
fixed block ATC PPA replaced a unit contingent PPA with AEPEP in 2015. The City also has a PPA with AEPEP for wind power that
expires on 2028. The City has a load following PPA with GP&L. While the PPAs with AEPEP are considered base load power, the load
following PPA with GP&L covers the load above the base power provided by AEPEP's PPAs. Other wholesale/power supply costs include
congestion costs, Ancillary Services and Transmission Cost of Service (TCOS). Since the City owns transmission assets it not only pays
but also receives TCOS payments based on TCOS rates approved by the Public Utility Commission of Texas.
On January 1, 2015, the City began a three-year contract (with a possible two-one year extensions) with Garland Power and Light (GPL)
for Qualified Scheduling Entity (QSE) services and a two year load following contract for power above the contracted resources from
AEPEP. GP&L's QSE schedules and settles all the contract resources owned by the City. On City's advice the QSE also procures any
replacement power as needed on behalf of the City.
The City's owns 20 miles of 138kV transmission lines, seven substations, and 458 miles of distribution lines. ERCOT serves
as the RTO/ISO for the area.
The current electric rates were established by ordinance passed and approved by the City Council and became effective on October 1,
2016. The electric rates are subject to a transmission delivery adjustment (TDA) charge which requires that the net energy charge per
kilowatt hour must be increased or decreased by an amount per kilowatt hour equal to additional transmission charges above those
accounted for in the wholesale rate. The TDA is currently set at $0.005 per kilowatt hour of energy consumed.
In January 2009, College Station Utilities began offering residential electric customers renewable wind energy. In February 2010, the
renewable wind energy program was expanded to include commercial customers. Wind energy is generated from the South Trent Mesa
Wind Project located west of Abilene, Texas.
25
Single Family Residential...............................Service Charge......................................................$7.00 per month
plus:
kwhrs (May through October)..............................$0.1169 per kwhr
kwhr (November through April)...........................$0.1123 per kwhr
Tax.........................................................................1.50%
Transmission Delivery Adjustment (TDA)...........0.50%
Master Metered Multiple Dwelling Units......Service Charge.......................................................$100.00 per month per master meter
plus:
kwhrs (May through October)...............................$0.1181 per kwhr
kwhr (November through April)...........................$0.1134 per kwhr
Tax.........................................................................1.50%
TDA.......................................................................Calculated as needed
Small Commercial (1-10 KW demand).........Service Charge.......................................................$9.00 per month
plus:
First 1,000 kwhrs...................................................$0.1344 per kwhr
Over 1,000 kwhrs..................................................$0.1028 per kwhr
Tax.........................................................................8.25%
TDA.......................................................................0.50%
Medium Commercial (15-300 KW)...............Service Charge.......................................................$25.00 per month
plus:
Demand Charge (Per KW)................................$10.40 per KW
Energy Charge All kwhrs......................................$0.0729 per KW
Minimum Monthly Charge................................$181.00
Tax.........................................................................8.25%
TDA.......................................................................0.50%
Large Commercial (300 – 1,500 KW)...........Service Charge.......................................................$75.00 per month
plus:
Demand Charge (Per KW)................................$10.40 per KW
Energy Charge All kwhrs......................................$0.0703 per KW
Minimum Monthly Charge................................$3,195.00
Tax.........................................................................8.25%
TDA.......................................................................0.50%
Industrial (1,500 KW and over).....................Service Charge......................................................$250.00 per month
plus:
Demand Charge (Per KW)................................$9.85
Energy Charge (first 500,000 kwhrs)....................$0.0689 per KW
Minimum Monthly $15,034.85
Tax.........................................................................8.25%
TDA.......................................................................Calculated as needed
WIND WATT RATES
Wind rates were established by Ordinance #2012-3397 on February 23, 2012, passed and approved by the City Council, and became
effective on March 1, 2012.
Participation Level: Residential & Commercial
10%.......................................................................$0.0005 per KW
50%.......................................................................$0.0025 per KW
100%.....................................................................$0.005 per KW
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TABLE 14 -HISTORICAL UTILITY USERS (UNITS SERVED)
2016 2015 2014 2013 2012
Water 41,709 41,540 40,768 40,767 39,338
Wastewater 40,866 40,806 39,128 38,608 36,908
Electric 40,141 43,471 38,198 38,456 39,123
FiscalYear Ended September 30,
TABLE 15 -TEN LARGEST UTILITY CUSTOMERS
TotalPercent
FY 2016 KWH of KWH
Utility Customer Type of Business Consumption Consumed
City of College Station Municipality 37,339,910 4.49%
CSISD School 24,218,968 2.91%
Scott & White Hospital& Clinic Hospital/Clinic 21,798,706 2.62%
Texas A&M University 12,955,204 1.56%
CBL & Associates RetailMall 9,273,940 1.12%
College Station MedicalCenter Hospital 9,053,162 1.09%
Wal-Mart Retail 8,805,600 1.06%
HEB Grocery RetailGrocery 8,549,280 1.03%
Pandemic InfluenzalVaccine Medical 8,338,900 1.00%
Dealer Computer Services Inc Retail 4,776,800 0.57%
145,110,470 17.45%
TABLE 16 -CONDENSED STATEMENT OF OPERATIONS
2016 2015 2014 2013 2012
Revenues:
Electric 98,904,688$98,763,293$95,677,765$92,892,541$94,396,234$
Water and Wastewater 29,484,851 28,732,968 27,550,262 29,018,108 27,652,449
Interest 346,312 180,423 116,433 170,062 136,974
Other 3,636,420 3,546,138 2,890,061 3,670,710 2,857,223
TotalRevenues 132,372,271$131,222,822$126,234,521$125,751,421$125,042,880$
Expenses:
TotalExpenses 76,771,094$82,079,813$100,235,329$90,519,871$88,927,662$
Net Available for Debt Service 55,601,177$49,143,009$25,999,192$35,231,550$36,115,218$
Water (Units Served)41,709 41,540 40,768 40,767 39,338
Wastewater (Units Served)40,866 40,806 39,128 38,608 36,908
Electric (Units Served)40,141 43,471 38,198 38,456 39,123
For FiscalYear Ended September 30,
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TABLE 17 –VALUE OF THE SYSTEM
2016 2015 2014 2013 2012
Utility Systems 527,435,531$507,758,485$459,071,713$446,518,318$435,064,838$
Construction in Progress 23,520,025 13,213,020 43,281,736 36,982,355 20,430,326
550,955,556$520,971,505$502,353,449$483,500,673$455,495,164$
Less: Accumulated Depreciation 213,325,487 198,339,390 183,756,067 171,069,875 158,428,406
Net System Value 337,630,069$322,632,115$318,597,382$312,430,798$297,066,758$
FiscalYear Ended September 30,
TABLE 18 –CITY’S EQUITY IN THE SYSTEM
Resources 2016 2015 2014 2013 2012
Net System Value 337,630,069$322,632,115$318,597,382$312,430,798$297,066,758$
Current Assets 63,085,837 52,023,881 42,939,476 59,428,776 53,031,034
Restricted Assets 21,849,829 19,977,038 27,760,893 5,757,167 10,143,761
Other Resources --0 120,000 120,000
Deferred Charges 5,425,502 2,381,933 1,305,356 1,665,943 780,390
Total 427,991,237$397,014,967$390,603,107$379,402,684$361,141,943$
Obligations
Current Liabilities 9,511,319$13,688,841$19,092,357$23,329,045$17,180,367$
Current Liabilities Payable from
Restricted Assets 15,462,903 10,735,825 7,292,731 7,190,577 13,474,895
GeneralObligation Debt 55,626,759 43,175,000 47,995,000 36,930,000 30,675,000
Certificates of Obligation 78,814,496 83,445,000 87,210,000 66,695,000 55,865,000
Revenue Bond Debt -13,395,000 14,920,000 34,765,000 41,505,001
Other Debt(1)9,418,425 8,593,734 9,385,034 4,825,184 4,561,927
TotalLiabilities 168,833,902$173,033,400$185,895,122$173,734,806$163,262,190$
City's Equity in System 259,157,335$223,981,567$204,707,985$205,667,878$197,879,753$
Percentage of Equity in System 60.55%56.42%52.41%54.21%54.79%
FiscalYear Ended September 30,
__________
(1)Includes OPEB Net Pension Obligations.
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TABLE 19 –UTILITY REVENUE BOND AND SYSTEM SUPPORTED CERTIFICATE DEBT SERVICE
Original Outstanding
Principal Principal
Amount as of 9/30/2017
2008 (2)15,925,000 3,045,000
2009 (2)19,490,000 8,465,000
2010 (2)2,850,000 2,240,000
2010 (1)(3)25,905,000 14,965,000
2011 (2)7,920,000 6,520,000
2012 (2)16,415,000 14,035,000
2012 (1)(3)9,570,000 6,110,000
2013 (2)10,230,000 9,120,000
2013 (1)(3)6,255,000 4,870,000
2014 (2)23,555,000 21,750,000
2014 (1)(3)14,455,000 11,385,000
2016 (2)7,250,000 7,250,000
2016 (1)(3)18,710,000 18,710,000
2017 (2)12,835,000 12,835,000 *
2017 (1)(3)9,440,000 9,440,000 *
200,805,000$150,740,000$
Series
__________
* Preliminary, subject to change. Includes a portion of the Obligations and excludes the Refunded Obligations.
(1)Represents refunding bonds.
(2)Certificates of Obligation supported in whole or in part by Utility System revenues.
(3)General Obligation Improvement Bonds supported in part by the Utility System revenues.
INVESTMENTS
The City invests its investable funds in investments authorized by Texas law in accordance with investment policies approved by the City
Council. Both state law and the City’s investment policies are subject to change.
LEGAL INVESTMENTS
Under State law, the City is authorized to invest in: (1) obligations of the United States or its agencies and instrumentalities, including
letters of credit; (2) direct obligations of the State or its agencies and instrumentalities; (3) collateralized mortgage obligations directly
issued by a federal agency or instrumentality of the United States, the underlying security for which is guaranteed by an agency or
instrumentality of the United States; (4) other obligations, the principal of and interest on which are unconditionally guaranteed or insured
by, or backed by the full faith and credit of, the State or the United States or their respective agencies and instrumentalities, including
obligations that are fully guaranteed or insured by the Federal Deposit Insurance Corporation or by the explicit full faith and credit of the
United States; (5) obligations of states, agencies, counties, cities, and other political subdivisions of any state rated as to investment quality
by a nationally recognized investment rating firm not less than A or its equivalent; (6) bonds issued, assumed, or guaranteed by the State of
Israel; (7) certificates of deposit and share certificates (i) issued by a depository institution that has its main office or a branch office in the
State of Texas, that are guaranteed or insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance
Fund, or are secured as to principal by obligations described in clauses (1) through (6) or in any other manner and amount provided by law
for City deposits, or (ii) where (a) the funds are invested by the City through (I) a broker that has its main office or a branch office in the
State of Texas and is selected from a list adopted, at least annually, by the City as required by law or (II) a depository institution that has its
main office or a branch office in the State of Texas that is selected by the City; (b) the broker or the depository institution selected by the
City arranges for the deposit of the funds in certificates of deposit in one or more federally insured depository institutions, wherever
located, for the account of the City; (c) the full amount of the principal and accrued interest of each of the certificates of deposit is insured
by the United States or an instrumentality of the United States, and (d) the City appoints the depository institution selected under (a) above,
a custodian as described by Section 2257.041(d) of the Texas Government Code, or a clearing broker-dealer registered with the Securities
and Exchange Commission and operating pursuant to Securities and Exchange Commission Rule 15c3-3 (17 C.F.R. Section 240.15c3-3)
as custodian for the City with respect to the certificates of deposit; (8) fully collateralized repurchase agreements that have a defined
termination date, are fully secured by a combination of cash and obligations described in clause (1) which are pledged to the City, held in
the City’s name, and deposited at the time the investment is made with the City or with a third party selected and approved by the City and
are placed through a primary government securities dealer, as defined by the Federal Reserve, or a financial institution doing business in
the State of Texas; (9) bankers’ acceptances with the remaining term of 270 days or less, if the short-term obligations of the accepting bank
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or its parent are rated at least “A-1” or “P-1” or the equivalent by at least one nationally recognized credit rating agency; (10) commercial
paper that is rated at least “A-1” or “P-1” or the equivalent by either (a) two nationally recognized credit rating agencies or (b) one
nationally recognized credit rating agency if the paper is fully secured by an irrevocable letter of credit issued by a bank organized and
existing under the laws of the United States or any state; (11) no-load money market mutual funds regulated by the Securities and
Exchange Commission that have a dollar weighted average portfolio maturity of 90 days or less and include in their investment objectives
the maintenance of a stable net asset value of $1 for each share; (12) no-load mutual funds registered with the Securities and Exchange
Commission that: have an average weighted maturity of less than two years; invests exclusively in obligations described in the preceding
clauses; and are continuously rated as to investment quality by at least one nationally recognized investment rating firm of not less than
“AAA” or its equivalent; provided, however, that the City is not authorized to invest in the aggregate more than 15% of its monthly
average fund balance, excluding bond proceeds and reserves and other funds held for debt service, in such no-load mutual funds, and (13)
for bond proceeds, guaranteed investment contracts that have a defined termination date, are secured by obligations of the United States or
its agencies and instrumentalities in an amount equal to the amount invested under the contract, and are pledged to the City and deposited
with the City or a third party selected and approved by the City.
The City is also authorized to invest its funds through an eligible investment pool if the governing body of the City by rule, ordinance, or
resolution, as appropriate, authorizes investment in the particular pool. To be eligible to receive funds from and invest funds on behalf of
the City, an investment pool must furnish to the investment officer or other authorized representative of the City an offering circular or
other similar disclosure instrument that contains, at a minimum, the following information: (1) the types of investments in which money is
allowed to be invested; (2) the maximum average dollar-weighted maturity allowed, based on the stated maturity date, of the pool; (3) the
maximum stated maturity date any investment security within the portfolio has; (4) the objectives of the pool; (5) the size of the pool; (6)
the names of the members of the advisory board of the pool and the dates their terms expire; (7) the custodian bank that will safekeep the
pool's assets; (8) whether the intent of the pool is to maintain a net asset value of one dollar and the risk of market price fluctuation; (9)
whether the only source of payment is the assets of the pool at market value or whether there is a secondary source of payment, such as
insurance or guarantees, and a description of the secondary source of payment; (10) the name and address of the independent auditor of the
pool; (11) the requirements to be satisfied for an entity to deposit funds in and withdraw funds from the pool and any deadlines or other
operating policies required for the entity to invest funds in and withdraw funds from the pool; and (12) the performance history of the pool,
including yield, average dollar-weighted maturities, and expense ratios.
Governmental bodies in the State are authorized to implement securities lending programs if (i) the securities loaned under the program are
100% collateralized, a loan made under the program allows for termination at any time and a loan made under the program is either secured
by (a) obligations that are described in clauses (1) through (6) of the first paragraph under this subcaption, (b) irrevocable letters of credit
issued by a state or national bank that is continuously rated by a nationally recognized investment rating firm not less than “A” or its
equivalent, or (c) cash invested in obligations that are described in clauses (1) through (6) and (10) through (12) of the first paragraph
under this subcaption, or an authorized investment pool; (ii) securities held as collateral under a loan are pledged to the governmental
body, held in the name of the governmental body and deposited at the time the investment is made with the City or a third party designated
by the City; (iii) a loan made under the program is placed through either a primary government securities dealer or a financial institution
doing business in the State; and (iv) the agreement to lend securities has a term of one year or less.
The City may invest in such obligations directly or through government investment pools that invest solely in such obligations provided
that the pools are rated no lower than “AAA” or “AAAm” or an equivalent by at least one nationally recognized rating service. The City is
specifically prohibited from investing in: (1) obligations whose payment represents the coupon payments on the outstanding principal
balance of the underlying mortgage-backed security collateral and pays no principal; (2) obligations whose payment represents the
principal stream of cash flow from the underlying mortgage-backed security and bears no interest; (3) collateralized mortgage obligations
that have a stated final maturity of greater than 10 years; and (4) collateralized mortgage obligations the interest rate of which is determined
by an index that adjusts opposite to the changes in a market index.
INVESTMENT POLICIES
Under Texas law, the City is required to invest its funds under written investment policies that primarily emphasize safety of principal and
liquidity; that address investment diversification, yield, maturity, and the quality and capability of investment management; and that includes a
list of authorized investments for City funds, maximum allowable stated maturity of any individual investment and the maximum average
dollar-weighted maturity allowed for pooled fund groups, methods to monitor the market price of investments acquired with public funds, a
requirement for settlement of all transactions, except investment pool funds and mutual funds, on a delivery versus payment basis, and
procedures to monitor rating changes in investments acquired with public funds and the liquidation of such investments consistent with the
PFIA. All City funds must be invested consistent with a formally adopted “Investment Strategy Statement” that specifically addresses each
funds’ investment. Each Investment Strategy Statement will describe its objectives concerning (1) suitability of investment type, (2)
preservation and safety of principal, (3) liquidity, (4) marketability of each investment, (5) diversification of the portfolio, and (6) yield.
30
Under Texas law, City investments must be made “with judgment and care, under prevailing circumstances, that a person of prudence,
discretion, and intelligence would exercise in the management of the person’s own affairs, not for speculation, but for investment,
considering the probable safety of capital and the probable income to be derived.” At least quarterly the investment officers of the City will
submit an investment report detailing (1) the investment position of the City, (2) that all investment officers jointly prepared and signed the
report, (3) the beginning market value and ending market value for each pooled fund group, (4) the book value and market value of each
separately listed asset at the end of the reporting period, (5) the maturity date of each separately invested asset, (6) the account or fund or
pooled fund group for which each individual investment was acquired, and (7) the compliance of the investment portfolio as it relates to:
(a) adopted investment strategy statements and (b) state law. No person may invest City funds without express written authority from the
City Council.
ADDITIONAL PROVISIONS
Under Texas law the City is additionally required to: (1) annually review its adopted policies and strategies; (2) require any investment
officers’ with personal business relationships or relatives with firms seeking to sell securities to the entity to disclose the relationship and
file a statement with the Texas Ethics Commission and the City Council; (3) require the registered principal of firms seeking to sell
securities to the City to: (a) receive and review the City’s investment policy, (b) acknowledge that reasonable controls and procedures have
been implemented to preclude imprudent investment activities, and (c) deliver a written statement attesting to these requirements; (4)
perform an annual audit of the management controls on investments and adherence to the City’s investment policy; (5) provide specific
investment training for the Finance Director, Treasurer, Assistant City Manager and investment officers; (6) restrict reverse repurchase
agreements to not more than 90 days and restrict the investment of reverse repurchase agreement funds to no greater than the term of the
reverse repurchase agreement; (7) restrict the investment in non-money market mutual funds of any portion of bond proceeds, reserves and
funds held for debt service and to no more than 15% of the entity’s monthly average fund balance, excluding bond proceeds and reserves
and other funds held for debt service; (8) require local government investment pools to conform to the new disclosure, rating, net asset
value, yield calculation, and advisory board requirements and (9) at least annually review, revise, and adopt a list of qualified brokers that
are authorized to engage in investment transactions with the City.
Under Texas law, the City may contract with an investment management firm registered under the Investment Advisers Act of 1940 (15
U.S.C. Section 80b-1 et seq.) or with the State Securities Board to provide for the investment and management of its public funds or other
funds under its control for a term up to two years, but the City retains ultimate responsibility as fiduciary of its assets. In order to renew or
extend such a contract, the City must do so by order, ordinance or resolution. The City has not contracted with, and has no present
intention of contracting with, any such investment management firm or the State Securities Board to provide such services.
CITY’S INVESTMENT POLICY
The Assistant City Manager or his designee will promptly cause all City funds to be deposited with the bank depository and invested in
accordance with the provisions of the current Bank Depository Agreement or in any negotiable instrument that the City Council has
authorized under the provisions of the PFIA, as amended, and in accordance with the City Council approved Investment Policies.
At the end of each fiscal year, a report on investment performance will be provided to the City Council. In conjunction with the quarterly
financial report, the Assistant City Manager or his designee will prepare and provide a written recapitulation of the City’s investment
portfolio to the Council, detailing each City investment instrument with its rate of return and maturity date.
The City's adopted investment policy permits the City to invest its funds and funds under its control in all of the enumerated investments
authorized by the PFIA.
TABLE 20 -CURRENT INVESTMENTS
As of February 28, 2017, the City’s investable funds were invested in the following categories:
Book Market
Investment Type Value Value
Cash 5,000,000$5,000,000$
Certificate Of Deposit 7,065,359 7,065,359
LocalGovernment Investment Pool 8,105,929 8,105,929
Money Market MutualFund 167,886,559 167,886,559
US Agencies and Securities 14,000,000 13,979,380
202,057,847$202,037,227$
31
TAX MATTERS
OPINION
On the date of initial delivery of each series of the Obligations, McCall, Parkhurst & Horton L.L.P., Dallas, Texas, Bond Counsel, will
render its opinion that, in accordance with statutes, regulations, published rulings and court decisions existing on the date thereof
(“Existing Law”), (1) interest on the Obligations for federal income tax purposes will be excludable from the “gross income” of the holders
thereof and (2) the Obligations will not be treated as “specified private activity bonds” the interest on which would be included as an
alternative minimum tax preference item under section 57(a)(5) of the Internal Revenue Code of 1986 (the “Code”). Except as stated
above, Bond Counsel will express no opinion as to any other federal, state or local tax consequences of the purchase, ownership or
disposition of the Obligations. See Appendix C - FORMS OF OPINIONS OF BOND COUNSEL.
In rendering its opinions, Bond Counsel will rely upon (a) certain information and representations of the City, including information and
representations contained in the City's federal tax certificate, (b) the Verification Report prepared by Grant Thornton LLP with respect to
the refunding of the Refunded Obligations and (c) covenants of the City contained in the respective Ordinances authorizing each series of
the Obligations relating to certain matters, including arbitrage and the use of the proceeds of the Obligations and the property financed or
refinanced therewith. Failure of the City to comply with these representations or covenants could cause the interest on the Bonds or
Certificates, as the case may be, to become includable in gross income retroactively to their date of issuance.
The Code and the regulations promulgated thereunder contain a number of requirements that must be satisfied subsequent to the issuance of the
Obligations in order for interest on the Obligations to be, and to remain, excludable from gross income for federal income tax purposes. Failure
to comply with such requirements may cause interest on the Obligations to be included in gross income retroactively to the date of issuance of
the Obligations. The opinions of Bond Counsel are rendered in reliance upon the compliance by the City with such requirements, and Bond
Counsel has not been retained to monitor compliance with these requirements subsequent to the issuance of the Obligations.
Bond Counsel's opinions are not a guarantee of a result, but represent its legal judgment based upon its review of Existing Law and reliance
on the aforementioned information, representations and covenants. Existing Law is subject to change by the Congress and to subsequent
judicial and administrative interpretation by the courts and the Department of the Treasury. There can be no assurance that Existing Law
or the interpretation thereof will not be changed in a manner which would adversely affect the tax treatment of the purchase, ownership or
disposition of the Obligations.
A ruling was not sought from the Internal Revenue Service by the Issuer with respect to the Obligations or the property financed or refinanced
with proceeds of the Obligations. No assurances can be given as to whether the Internal Revenue Service will commence an audit of the
Obligations, or as to whether the Internal Revenue Service would agree with the opinion of Bond Counsel. If an Internal Revenue Service audit
is commenced, under current procedures the Internal Revenue Service is likely to treat the Issuer as the taxpayer and the Obligation holders may
have no right to participate in such procedure. No additional interest will be paid upon any determination of taxability.
FEDERAL INCOME TAX ACCOUNTING TREATMENT OF ORIGINAL ISSUE DISCOUNT
The initial public offering price to be paid for one or more maturities of the Obligations may be less than the principal amount thereof or
one or more periods for the payment of interest on the Obligations may not be equal to the accrual period or be in excess of one year (the
“Original Issue Discount Obligations”). In such event, the difference between (i) the “stated redemption price at maturity” of each Original
Issue Discount Obligation, and (ii) the initial offering price to the public of such Original Issue Discount Obligation would constitute
original issue discount. The “stated redemption price at maturity” means the sum of all payments to be made on the Obligations less the
amount of all periodic interest payments. Periodic interest payments are payments which are made during equal accrual periods (or during
any unequal period if it is the initial or final period) and which are made during accrual periods which do not exceed one year.
Under Existing Law, any owner who has purchased such Original Issue Discount Obligation in the initial public offering is entitled to
exclude from gross income (as defined in section 61 of the Code) an amount of income with respect to such Original Issue Discount
Obligation equal to that portion of the amount of such original issue discount allocable to the accrual period. For a discussion of certain
collateral federal tax consequences, see discussion set forth below.
In the event of the redemption, sale or other taxable disposition of such Original Issue Discount Obligation prior to stated maturity,
however, the amount realized by such owner in excess of the basis of such Original Issue Discount Obligation in the hands of such owner
(adjusted upward by the portion of the original issue discount allocable to the period for which such Original Issue Discount Obligation
was held by such initial owner) is includable in gross income.
Under Existing Law, the original issue discount on each Original Issue Discount Obligation is accrued daily to the stated maturity thereof
(in amounts calculated as described below for each accrual period within each accrual period) and the accrued amount is added to an initial
owner's basis for such Original Issue Discount Obligation for purposes of determining the amount of gain or loss recognized by such owner
upon the redemption, sale or other disposition thereof. The amount to be added to basis for each accrual period is equal to (a) the sum of
the issue price and the amount of original issue discount accrued in prior periods multiplied by the yield to stated maturity (determined on
the basis of compounding at the close of each accrual period and properly adjusted for the length of the accrual period) less (b) the amounts
payable as current interest during such accrual period on such Original Issue Discount Obligation.
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The federal income tax consequences of the purchase, ownership, redemption, sale or other disposition of Original Issue Discount
Obligations which are not purchased in the initial offering at the initial offering price may be determined according to rules which differ
from those described above. All owners of Original Issue Discount Obligations should consult their own tax advisors with respect to the
determination for federal, state and local income tax purposes of the treatment of interest accrued upon redemption, sale or other
disposition of such Original Issue Discount Obligations and with respect to the federal, state, local and foreign tax consequences of the
purchase, ownership, redemption, sale or other disposition of such Original Issue Discount Obligations.
COLLATERAL FEDERAL INCOME TAX CONSEQUENCES
The following discussion is a summary of certain collateral federal income tax consequences resulting from the purchase, ownership or
disposition of the Obligations. This discussion is based on Existing Law, which is subject to change or modification, retroactively.
The following discussion is applicable to investors, other than those who are subject to special provisions of the Code, such as financial
institutions, property and casualty insurance companies, life insurance companies, individual recipients of Social Security or Railroad
Retirement benefits, individuals allowed an earned income credit, certain S corporations with accumulated earnings and profits and excess
passive investment income, foreign corporations subject to the branch profits tax, taxpayers qualifying for the health insurance premium
credit and taxpayers who may be deemed to have incurred or continued indebtedness to purchase tax-exempt obligations.
THE DISCUSSION CONTAINED HEREIN MAY NOT BE EXHAUSTIVE. INVESTORS, INCLUDING THOSE WHO ARE SUBJECT
TO SPECIAL PROVISIONS OF THE CODE, SHOULD CONSULT THEIR OWN TAX ADVISORS AS TO THE TAX TREATMENT
WHICH MAY BE ANTICIPATED TO RESULT FROM THE PURCHASE, OWNERSHIP AND DISPOSITION OF TAX-EXEMPT
OBLIGATIONS BEFORE DETERMINING WHETHER TO PURCHASE THE OBLIGATIONS.
Interest on the Obligations will be includable as an adjustment for “adjusted current earnings” to calculate the alternative minimum tax
imposed on corporations by section 55 of the Code.
Under section 6012 of the Code, holders of tax-exempt obligations, such as the Obligations, may be required to disclose interest received
or accrued during each taxable year on their returns of federal income taxation.
Section 1276 of the Code provides for ordinary income tax treatment of gain recognized upon the disposition of a tax-exempt obligation,
such as the Obligations, if such obligation was acquired at a “market discount” and if the fixed maturity of such obligation is equal to, or
exceeds, one year from the date of issue. Such treatment applies to “market discount bonds” to the extent such gain does not exceed the
accrued market discount of such bonds; although for this purpose, a de minimis amount of market discount is ignored. A “market discount
bond” is one which is acquired by the holder at a purchase price which is less than the stated redemption price at maturity or, in the case of
a bond issued at an original issue discount, the “revised issue price” (i.e., the issue price plus accrued original issue discount). The
“accrued market discount” is the amount which bears the same ratio to the market discount as the number of days during which the holder
holds the obligation bears to the number of days between the acquisition date and the final maturity date.
STATE,LOCAL AND FOREIGN TAXES
Investors should consult their own tax advisors concerning the tax implications of the purchase, ownership or disposition of the
Obligations under applicable state or local laws. Foreign investors should also consult their own tax advisors regarding the tax
consequences unique to investors who are not United States persons.
Subject to certain exceptions, information reports describing interest income, including original issue discount, with respect to the
Obligations will be sent to each registered holder and to the Internal Revenue Service. Payments of interest and principal may be subject to
backup withholding under section 3406 of the Code if a recipient of the payments fails to furnish to the payor such owner's social security
number or other taxpayer identification number ("TIN"), furnishes an incorrect TIN, or otherwise fails to establish an exemption from the
backup withholding tax. Any amounts so withheld would be allowed as a credit against the recipient's federal income tax. Special rules
apply to partnerships, estates and trusts, and in certain circumstances, and in respect of Non-U.S. Holders, certifications as to foreign status
and other matters may be required to be provided by partners and beneficiaries thereof.
INFORMATION REPORTING AND BACKUP WITHHOLDING
Subject to certain exceptions, information reports describing interest income, including original issue discount, with respect to the
Obligations will be sent to each registered holder and to the IRS. Payments of interest and principal may be subject to backup withholding
under section 3406 of the Code if a recipient of the payments fails to furnish to the payor such owner’s social security number or other
taxpayer identification number (“TIN”), furnishes an incorrect TIN, or otherwise fails to establish an exemption from the backup
withholding tax. Any amounts so withheld would be allowed as a credit against the recipient’s federal income tax. Special rules apply to
partnerships, estates and trusts, and in certain circumstances, and in respect of Non-U.S. Holders, certifications as to foreign status and
other matters may be required to be provided by partners and beneficiaries thereof.
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FUTURE AND PROPOSED LEGISLATION
Tax legislation, administrative actions taken by tax authorities, or court decisions, whether at the federal or state level, may adversely affect
the tax-exempt status of interest on the Obligations under federal or state law, and could affect the market price or marketability of the
Obligations. Any of the foregoing could limit the value of certain deductions and exclusions, including the exclusion for tax-exempt
interest. The likelihood of any of the foregoing becoming effective cannot be predicted. Prospective purchasers of the Obligations should
consult their own tax advisors regarding the foregoing matters.
CONTINUING DISCLOSURE OF INFORMATION
In the Ordinances, the City has made the following agreement for the benefit of the holders and beneficial owners of each series of
Obligations. The City is required to observe the agreement for so long as it remains obligated to advance funds to pay the Obligations.
Under the agreement, the City will be obligated to provide certain updated financial information and operating data annually, and timely
notice of specified events, to the Municipal Securities Rulemaking Board (the “MSRB”). This information will be publicly available at no
cost on the Electronic Municipal Market Access of the MSRB, with the web address www.emma.msrb.org (“EMMA”).
ANNUAL REPORTS
The City will provide certain updated financial information and operating data to the MSRB on an annual basis in an electronic format that
is prescribed by the MSRB and available via the Electronic Municipal Market Access System ("EMMA") at www.emma.msrb.org. The
information to be updated includes all quantitative financial information and operating data with respect to the City of the general type
included in this Official Statement under Tables numbered 1 through 6; 8 through 20 and in Appendix B. The City will update and provide
the information in Tables 1 through 6 and 8 through 20 within six months after the end of each fiscal year ending in and after 2017. The
City will additionally provide audited financial statements when and if available, and in any event, within 12 months after the end of each
fiscal year ending in or after 2017. If the audit of such financial statements is not complete within 12 months after any such fiscal year end,
then the City will file unaudited financial statements within such 12 month period and audited financial statements for the applicable fiscal
year, when and if the audit report on such statements becomes available. Any such financial statements will be prepared in accordance with
the accounting principles described in Appendix B or such other accounting principles as the City may be required to employ from time to
time pursuant to State law or regulation.
The financial information and operating data to be provided may be set forth in full in one or more documents or may be included by
specific reference to any document available to the public on the MSRB’s Internet Web site identified below or filed with the United States
Securities and Exchange Commission (the "SEC"), as permitted by SEC Rule 15c2-12 (the "Rule").
The City’s current fiscal year end is September 30. Accordingly, the City must provide updated information included in 1 through 6 and 8
through 20 by the last day of March in each year, and audited financial statements for the preceding fiscal year (or unaudited financial
statements if the audited financial statements are not yet available) as described above. If the City changes its fiscal year, it will file notice
of the change (and of the date of the new fiscal year end) with the MSRB prior to the next date by which the City otherwise would be
required to provide financial information and operating data as set forth above.
EVENT NOTICES
The City will also provide timely notices of certain events to the MSRB. The City will provide notice of any of the following events with
respect to the Obligations to the MSRB in a timely manner (but not in excess of ten business days after the occurrence of the event): (1)
principal and interest payment delinquencies; (2) non-payment related defaults, if material; (3) unscheduled draws on debt service reserves
reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or
liquidity providers, or their failure to perform; (6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB), or other material notices or determinations with respect to
the tax status of the Obligations, or other material events affecting the tax status of the Obligations; (7) modifications to rights of holders of
the Obligations, if material; (8) Obligation calls, if material, and tender offers; (9) defeasances; (10) release, substitution, or sale of
property securing repayment of the Obligations, if material; (11) rating changes; (12) bankruptcy, insolvency, receivership, or similar event
of the City, which shall occur as described below; (13) the consummation of a merger, consolidation, or acquisition involving the City or
the sale of all or substantially all of its assets, other than in the ordinary course of business, the entry into of a definitive agreement to
undertake such an action or the termination of a definitive agreement relating to any suchactions, other than pursuant to its terms, if
material; and (14) appointment of a successor or additional paying agent or the change of name of a paying agent, if material. In addition,
the City will provide timely notice of any failure by the City to provide annual financial information in accordance with their agreement
described above under “Annual Reports”. For these purposes, any event described in clause (12) is considered to occur when any of the
following occur: the appointment of a receiver, fiscal agent, or similar officer for the City in a proceeding under the United States
Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction
over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body
and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order
confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction
over substantially all of the assets or business of the City.
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The City will provide each notice described in the previous paragraph to the MSRB through EMMA, in accordance with the Rule.
LIMITATIONS AND AMENDMENTS
The City has agreed to update information and to provide notices of specified events only as described above. The City has not agreed to
provide other information that may be relevant or material to a complete presentation of its financial results of operations, condition, or
prospects or agreed to update any information that is provided, except as described above. The City makes no representation or warranty
concerning such information or concerning its usefulness to a decision to invest in or sell Obligations at any future date. The City disclaims
any contractual or tort liability for damages resulting in whole or in part from any breach of its continuing disclosure agreement or from
any statement made pursuant to its agreement, although holders of Obligations may seek a writ of mandamus to compel the City to comply
with its agreement.
The City may amend its continuing disclosure agreement from time to time to adapt to changed circumstances that arise from a change in
legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, if (i) the agreement, as
amended, would have permitted an underwriter to purchase or sell Obligations in the offering described herein in compliance with the
Rule, taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed
circumstances, and (ii) either (a) the holders of a majority in aggregate principal amount of the outstanding Obligations consent to the
amendment or (b) any person unaffiliated with the City (such as nationally recognized bond counsel) determines that the amendment will
not materially impair the interests of the holders and beneficial owners of the Obligations. If the City so amends the agreement, it has
agreed to include with the next financial information and operating data provided in accordance with its agreement described above under
“ANNUAL REPORTS” an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of
financial information and operating data so provided.
COMPLIANCE WITH PRIOR UNDERTAKINGS
In connection with prior transactions, the City has entered into undertakings pursuant to which it agreed to provide certain updated
financial information and operating data within six months of the end of the City’s fiscal year along with notices of specified material
events at required times. In addition, the City previously agreed to provide audited financial statements within six months of the end of the
City’s fiscal year if audited financial statements were available by such time. If audited financial statements were not available, the City
agreed to provide unaudited financial statements for the applicable fiscal year.
OTHER INFORMATION
RATINGS
The Obligations and presently outstanding tax supported debt of the City are rated “_____” by Moody's and “_____” by S&P, without
regard to credit enhancement. 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 Obligations.
LITIGATION
The City is a party to legal proceedings, many of which occur in the normal course of operations. It is not possible at the present time to
estimate ultimate outcome or liability, if any, of the city with respect to the various proceedings. The City’s management believes that the
ultimate outcome of the various lawsuits will not have a material adverse effect on the City’s financial position.
REGISTRATION AND QUALIFICATION OF OBLIGATIONS FOR SALE
The sale of the Obligations 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 Obligations have not been qualified under the Securities Act of Texas in reliance upon
various exemptions contained therein; nor have the Obligations been qualified under the securities acts of any jurisdiction. The City
assumes no responsibility for qualification of the Obligations under the securities laws of any jurisdiction in which the Obligations may be
sold, assigned, pledged, hypothecated or otherwise transferred. This disclaimer of responsibility for qualification for sale or other
disposition of the Obligations must not be construed as an interpretation of any kind with regard to the availability of any exemption from
securities registration provisions.
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LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TEXAS
Section 1201.041 of the Public Security Procedures Act (Chapter 1201, Texas Government Code) provides that the Obligations are
negotiable instruments, investment securities governed by Chapter 8, Texas Business and Commerce Code, and are legal and authorized
investments for insurance companies, fiduciaries, and trustees, and for the sinking funds of municipalities or other political subdivisions or
public agencies of the State of Texas. With respect to investment in the Obligations by municipalities or other political subdivisions or
public agencies of the State of Texas, the PFIA requires that the Obligations be assigned a rating of at least “A” or its equivalent as to
investment quality by a national rating agency. See “OTHER INFORMATION - RATINGS” herein. In addition, various provisions of the
Texas Finance Code provide that, subject to a prudent investor standard, the Obligations are legal investments for state banks, savings
banks, trust companies with at capital of one million dollars or more, and savings and loan associations. The Obligations are eligible to
secure deposits of any public funds of the State, its agencies, and its political subdivisions, and are legal security for those deposits to the
extent of their market value. The City has made no investigation of other laws, rules, regulations or investment criteria which might apply
to such institutions or entities or which might limit the suitability of the Obligations for any of the foregoing purposes or limit the authority
of such institutions or entities to purchase or invest in the Obligations for such purposes. No review by the City has been made of the laws
in other states to determine whether the Obligations are legal investments for various institutions in those states.
LEGAL OPINIONS
The City will furnish a complete transcript of proceedings incident to the authorization and issuance of the Obligations, including the
unqualified approving legal opinion of the Attorney General of Texas approving the Obligations and to the effect that the Obligations are
valid and legally binding obligations of the City, and based upon examination of such transcript of proceedings, the legal opinion of Bond
Counsel, to like effect and to the effect that the interest on the Obligations will be excludable from gross income for federal income tax
purposes under section 103(a) of the Code, subject to the matters described under “TAX MATTERS” herein, including the alternative
minimum tax on corporations. In its capacity as Bond Counsel, McCall, Parkhurst & Horton L.L.P. has reviewed the information under the
captions “PLAN OF FINANCING” (except for the subsection “SOURCES AND USES OF PROCEEDS”), “THE OBLIGATIONS,” “TAX
MATTERS,” “OTHER INFORMATION – LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TEXAS,” “OTHER
INFORMATION – REGISTRATION AND QUALIFICATION OF OBLIGATIONS FOR SALE,” “OTHER INFORMATION – LEGAL OPINIONS,” and
“CONTINUING DISCLOSURE OF INFORMATION” (except under the subheading “COMPLIANCE WITH PRIOR UNDERTAKINGS”, as to
which no opinion is expressed) in the Official Statement to determine whether such information fairly summarized matters of law and the
provisions of the documents referred to therein, and Bond Counsel is of the opinion that the information relating to the Obligations and the
Ordinances contained under such captions is a fair and accurate summary of the information purported to be shown. The legal fee to be
paid to Bond Counsel for services rendered in connection with the issuance of the Obligations is contingent on the sale and delivery of the
Obligations. The legal opinion will accompany the Obligations deposited with DTC or will be printed on the Obligations in the event of the
discontinuance of the Book-Entry-Only System. In connection with the transactions described in the Official Statement, Bond Counsel
represents only the City.
The various legal opinions to be delivered concurrently with the delivery of the Obligations express the professional judgment of the
attorneys rendering the opinions as to the legal issues explicitly addressed therein. In rendering a legal opinion, the attorney does not
become an insurer or guarantor of that expression of professional judgment, of the transaction opined upon, or of the future performance of
the parties to the transaction, nor does the rendering of an opinion guarantee the outcome of any legal dispute that may arise out of the
transaction.
AUTHENTICITY OF FINANCIAL DATA AND OTHER INFORMATION
The financial data and other information contained herein have been obtained from City records, audited financial statements and other
sources which are believed to be reliable. There is no guarantee that any of the assumptions or estimates contained herein will be realized.
All of the summaries of the statutes, documents and resolutions contained in this Official Statement are made subject to all of the
provisions of such statutes, documents and resolutions. These summaries do not purport to be complete statements of such provisions and
reference is made to such documents for further information. Reference is made to original documents in all respects.
FINANCIAL ADVISOR
First Southwest, a Division of Hilltop Securities Inc. is employed as Financial Advisor to the City in connection with the issuance of the
Obligations. The Financial Advisor's fee for services rendered with respect to the sale of the Obligations is contingent upon the issuance
and delivery of the Obligations. First Southwest, a Division of Hilltop Securities Inc., in its capacity as Financial Advisor, has relied on
the opinions of Bond Counsel and has not verified and does not assume any responsibility for the information, covenants and
representations contained in any of the legal documents with respect to the federal income tax status of the Obligations, or the possible
impact of any present, pending or future actions taken by any legislative or judicial bodies.
The Financial Advisor has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to the
City and, as applicable, to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the
Financial Advisor does not guarantee the accuracy or completeness of such information.
36
VERIFICATION OF ARITHMETICAL AND MATHEMATICAL COMPUTATIONS
Grant Thornton LLP, a firm of independent certified public accountants, will deliver to the Issuer, on or before the settlement date of the
Obligations, its verification report indicating that it has verified, in accordance with the Statement on Standards for Consulting Services
established by the American Institute of Certified Public Accountants, the mathematical accuracy of (a) the mathematical computations of
the adequacy of the cash and the maturing principal of and interest on the Escrow Securities, to pay, when due or upon early redemption,
the principal of, interest on and related call premium requirements, if any, of the Refunded Obligations and (b) the mathematical
computations of yield used by Bond Counsel to support its opinion that interest on the Obligations will be excluded from gross income for
federal income tax purposes.
Grant Thornton relied on the accuracy, completeness and reliability of all information provided to it by, and on all decisions and approvals
of, the Issuer. In addition, Grant Thornton has relied on any information provided to it by the Issuer’s retained advisors, consultants or
legal counsel. Grant Thornton was not engaged to perform audit or attest services under AICPA auditing or attestation standards or to
provide any form of attest report or opinion under such standards in conjunction with this engagement.
CERTIFICATION OF THE OFFICIAL STATEMENT AND NO-LITIGATION CERTIFICATE
At the time of payment for and delivery of the Obligations, the Initial Purchasers will be furnished a certificate, executed by the proper City
officials, acting in their official capacity, to the effect that to the best of their knowledge and belief: (a) the descriptions and statements of
or pertaining to the City contained in its Official Statement and any addenda, supplement or amendment thereto, for its Obligations on the
date of such Official Statement, on the date of purchase of said Obligations, and on the date of delivery, were and are true and correct in all
material respects; (b) insofar as the City and its affairs, including its financial affairs, are concerned, such Official Statement did not and
does not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading; (c) insofar as the descriptions and
statements, including financial data, of, or pertaining to, entities other than the City and their activities contained in such Official Statement
are concerned, such statements and data have been obtained from sources which the City believes to be reliable and that the City has no
reason to believe that they are untrue in any material respect; (d) there has been no material adverse change in the financial condition of the
City since September 30, 2016, the date of the last audited financial statements of the City and (e) except as disclosed herein, no litigation
of any nature has been filed or is pending, as of that date, of which the City has notice to restrain or enjoin the issuance, execution or
delivery of the Obligations, in any manner questioning the authority or proceedings for the issuance, execution, or delivery of the
Obligations; or which would affect the provisions made for their payment or security, or in any manner question the validity of the
Obligations.
FORWARD-LOOKING STATEMENTS
The statements contained in this Official Statement, and in any other information provided by the City, that are not purely historical, are
forward-looking statements, including statements regarding the City's expectations, hopes, intentions, or strategies regarding the future.
Readers should not place undue reliance on forward-looking statements. All forward-looking statements included in this Official
Statement are based on information available to the City on the date hereof, and the City assumes no obligation to update any such
forward-looking statements. The City's actual results could differ materially from those discussed in such forward-looking statements.
The forward-looking statements included herein are necessarily based on various assumptions and estimates and are inherently subject to
various risks and uncertainties, including risks and uncertainties relating to the possible invalidity of the underlying assumptions and
estimates and possible changes or developments in social, economic, business, industry, market, legal, and regulatory circumstances and
conditions and actions taken or omitted to be taken by third parties, including customers, suppliers, business partners and competitors, and
legislative, judicial, and other governmental authorities and officials. Assumptions related to the foregoing involve judgments with respect
to, among other things, future economic, competitive, and market conditions and future business decisions, all of which are difficult or
impossible to predict accurately and many of which are beyond the control of the City. Any of such assumptions could be inaccurate and,
therefore, there can be no assurance that the forward-looking statements included in this Official Statement will prove to be accurate.
INITIAL PURCHASERS
After requesting competitive bids for the Bonds, the City accepted the bid of ______________ (the "Initial Purchaser of the Bonds") to
purchase the Bonds at the interest rates shown on the (inside) cover page of the Official Statement at a price of ______(%) of par plus a
cash premium of $____________. The Initial Purchaser of the Bonds can give no assurance that any trading market will be developed for
the Bonds after their sale by the City to the Initial Purchaser of the Bonds. The City has no control over the price at which the Bonds are
subsequently sold and the initial yield at which the Bonds will be priced and reoffered will be established by and will be the responsibility
of the Initial Purchaser of the Bonds.
37
After requesting competitive bids for the Certificates, the City accepted the bid of ______________ (the "Initial Purchaser of the
Certificates") to purchase the Certificates at the interest rates shown on the (inside) cover page of the Official Statement at a price of
______(%) of par plus a cash premium of $____________. The Initial Purchaser of the Certificates can give no assurance that any trading
market will be developed for the Certificates after their sale by the City to the Initial Purchaser of the Certificates. The City has no control
over the price at which the Certificates are subsequently sold and the initial yield at which the Certificates will be priced and reoffered will
be established by and will be the responsibility of the Initial Purchaser of the Certificates.
MISCELLANEOUS
The Ordinances authorizing the issuance of the Obligations will also approve the form and content of this Official Statement, and any
addenda or amendment thereto, and authorize its further use in the reoffering of the Obligations by the Initial Purchasers.
Mayor
City of College Station, Texas
ATTEST:
City Secretary
City of College Station, Texas
S - 1
Schedule I
SCHEDULE OF REFUNDED OBLIGATIONS*
General Obligation Debt
Par Amount Par Amount
Maturity Interest to be Call Call Maturity Interest to be Call Call
February 15 Rate Refunded*Date Price February 15 Rate Refunded*Date Price
2022 4.000%1,345,000$2/15/2019 100.00 2022 (1)4.050%180,000$2/15/2019 100.00
2023 4.125%1,415,000 2/15/2019 100.00 2023 (1)4.050%195,000 2/15/2019 100.00
2024 4.250%1,485,000 2/15/2019 100.00 2024 (2)4.300%200,000 2/15/2019 100.00
2025 5.000%1,570,000 2/15/2019 100.00 2025 (2)4.300%210,000 2/15/2019 100.00
2026 4.500%1,645,000 2/15/2019 100.00 2026 (3)4.500%220,000 2/15/2019 100.00
2027 4.500%1,730,000 2/15/2019 100.00 2027 (3)4.500%225,000 2/15/2019 100.00
2028 4.500%1,815,000 2/15/2019 100.00 2028 (4)4.650%250,000 2/15/2019 100.00
2029 4.600%1,915,000 2/15/2019 100.00 2029 (4)4.650%260,000 2/15/2019 100.00
12,920,000$1,740,000$
GeneralObligation Improvement Bonds, Series 2009Certificates of Obligation, Series 2009
__________
*Preliminary, subject to change.
(1)Represents a term bond with a stated maturity February 15, 2023.
(2)Represents a term bond with a stated maturity February 15, 2025.
(3)Represents a term bond with a stated maturity February 15, 2027.
(4)Represents a term bond with a stated maturity February 15, 2029
APPENDIX A
GENERAL INFORMATION REGARDING THE CITY
A - 1
THE CITY
The City, located in Brazos County, is situated in the middle of a triangle bounded by Dallas/Fort Worth, Houston, and San
Antonio/Austin. Approximately 80% of the Texas population is located within a 200 mile radius of the City. In addition to being
a residential community for faculty, students and other personnel of Texas A&M University, the City also serves as a regional
manufacturing, retail and health care hub.
The City was incorporated in 1938 and has a Council-City Manager form of government with City employees totaling 961.8
currently.
The City adopted and enforces comprehensive zoning and building restrictions aimed at assuring orderly growth and
development. The City’s ordinances require all subdividers, at their own expense and without provision for refund, to install
streets and water and wastewater lines in any planned subdivision. These facilities are constructed under the City’s specifications
and inspection and when completed are deeded to the City free and clear. All areas within the City are now adequately served
with water, wastewater and electric service.
Proximity to three of the nation’s largest cities, college-town cultural amenities, low cost of living, varied housing options, warm
climate and low crime rate have resulted in significant population growth over the last decade.
CITY OWNED FACILITIES
The City maintains approximately 543 linear miles of streets within city limits, 99% of which are hard surface. The City has a
complete water distribution, wastewater collection and treatment system with 786 miles of wastewater and water lines. The City
owns the electrical distribution system with approximately 471 miles of distribution lines and 20 miles of 138kv transmission
lines.
The City has a fully equipped police department with 132 full time police officers and 74 support personnel. The department has
39 police patrol cars and one holding facility with a capacity of 17. The fire department consists of 150 full time fire fighters and
7 support personnel. There are six stations and a total of 8 engines, 6 ambulances, 2 command vehicles, 1 rescue truck, 2 ladder
trucks, 1 tanker truck, and 1 grass fire truck.
EDUCATIONAL FACILITIES
The College Station Independent School District (the “School District”) is a fully accredited system offering 16 educational
campuses for pre-kindergarten through high school. The School District has a student enrollment in excess of 12,500 and employs
close to 1,700 people. On November 3, 2015 the voters passed a bond proposition for the School District that includes the
construction of three additional facilities. The bonds would fund a third intermediate school in the 2017-2018 school year and a
third middle school and tenth elementary school in the 2018-2019 school year. The School District’s facilities are also used by
Blinn College, a community college offering two years of college level courses.
College Station is home to Texas A&M University which provides higher education, offering both four year college programs and
graduate degree programs to over 66,000 enrolled students.
HEALTH CARE
College Station Medical Center, affectionately called ‘The Med’, is a 200,000 square foot community healthcare provider located
on 25 acres within the city limits of College Station. The Med is a 167-bed facility and is a licensed Level III Trauma unit.
College Station Medical Center is the only hospital in the Brazos Valley Region to receive national certification in joint
replacement from the Joint Commission. They are also an accredited Chest Pain Center, a certified Primary Stroke Center and the
region’s first accredited Sleep Center. The over 650 healthcare professionals work every day to be a place of healing, caring and
connection for patients and families in the community.
Rock Prairie Behavioral Health is a 72-bed state-of-the-art psychiatric hospital built specifically with patients’ needs in mind and
is dedicated to providing quality behavioral health care to promote growth and recovery for patients and families throughout the
state of Texas. The acute psychiatric hospital treats adolescents, adults, and seniors in both inpatient and outpatient settings. The
treatment facility is located in the heart of the Brazos Valley, conveniently located in College Station.
Baylor Scott & White Medical Center – College Station is a 403,000 square foot, five story, 143-bed hospital located on a 98 acre
campus near the intersection of Texas Highway 6 and Rock Prairie Road within the City of College Station. Baylor Scott &
White Medical Center – College Station is a nationally accredited Chest pain Center as well as a Level III Trauma Center. Scott
& White Clinic – Rock Prairie, a four-story medical office building, is also located on the campus adjacent to the hospital. Baylor
Scott and White Medical Center - College Station houses an emergency department, cardiac services including cath labs, neonatal
intensive care unit, comprehensive cancer services, operating rooms, maternity services suites, endoscopic procedure suites, intra
operative robotics and other specialty services, all supported by a pharmacy, comprehensive state-of-the-art imaging technology
and other diagnostic capabilities.
A - 2
Other area health care providers include: St. Joseph Regional Health Care Center, Baylor Scott and White Clinic, and The
Physicians Centre.
Medical District
The City recently amended its Comprehensive Plan to include the College Station Medical District Master Plan. The Master Plan
establishes guiding principles for the development of approximately 1,700 acres in south College Station to accommodate medical
facilities, walkable village centers, commercial space, and a variety of residential unit types, all in close proximity to parks, open
space, and trails. To ensure the long-term success of the District, the City has created two Tax Increment Reinvestment Zones to help
fund the necessary infrastructure. The City is also in the process of establishing 2 Municipal Management Districts to be used as a tool
for development of these areas as well.
TRANSPORTATION
U.S. Highway 190/State Highway 21 links the City to Interstate 45 which is located approximately 35 miles to the east. State
Highway 21 via U.S. Highway 290 also links the City to Austin, located approximately 110 miles to the west. State Highway 6 links
the City to Waco (100 miles) and Interstate 35 to the north and Houston (90 miles) to the south. Also, State Highway 30 links the City
to Huntsville (45 miles) and Interstate 45 to the east.
Airlines Commercial, corporate and private airport facilities are provided by Easterwood Airport, which is located
on the City’s west side and is owned and operated by Texas A&M University. American Eagle Airlines
provides daily flights to and from Dallas-Fort Worth Airport out of Easterwood. United Airlines provides
daily flights to and from Houston Bush Intercontinental Airport out of Easterwood.
Coulter Field is located north of the City of Bryan and provides a 4,000 foot lighted runway. Coulter Field
offers all types of services for the private aircraft.
Bus Lines Two bus lines serve the City with daily service connecting the City with Houston and Dallas.
Railroads Rail freight service is provided by the Union Pacific Railroad. Union Pacific Railroad operates a main
freight line from Houston through Bryan-College Station to Dallas-Fort Worth and beyond.
RECREATION
The College Station park system presently includes 58 parks encompassing 1448 acres, including a 515 acre wilderness park, and a
150-acre regional athletic park. Collectively, these parks contain 63 playgrounds, 33 soccer fields, 26 basketball courts, 43
softball/baseball backstops, 14 tennis courts, 3 swimming pools, a spray park, a skate park, a gymnasium, an outdoor amphitheater
with a green room and plaza area, 1 festival site and a number of picnic shelters and 8 picnic pavilions. The Parks and Recreation
Department sponsors a variety of organized athletic and aquatic programs as well as many special events throughout the year.
POPULATION
1970 1980 1990 2000 2010
City of College Station 17,676 37,272 52,456 67,890 93,857
Brazos County 57,978 93,588 121,862 152,415 194,851
Official U.S. Census(1)
__________
(1)U.S. Census Bureau, American Community Survey
ECONOMIC BACKGROUND
Texas A&M University and System
Texas A&M opened its doors in 1876 as the state’s first public institution of higher learning. Located in College Station, Texas
(about 90 miles northwest of Houston and within a two to three-hour drive from Austin and Dallas), Texas A&M’s main campus is
home to over 66,000 students, with more than 436,000 former students worldwide. As one of only 62 members of the prestigious
Association of American Universities (AAU), an association of leading public and private research universities in the United States
and Canada, Texas A&M boasts some of the top programs in academic research and scholarship. Texas A&M and the Texas A&M
University System employ more than 27,000 full and part-time personnel.
Texas A&M is one of only 17 institutions in the nation to hold the triple designation as a land-grant, sea-grant, and space-grant
university.
A - 3
In May 2016, the Chancellor of The Texas A&M University System unveiled plans to invest $150 million to create a new research
and development campus to help companies move ideas from the laboratory to the marketplace while also offering a new path toward
a college degree. The facility, to be located at a revamped and renamed Riverside Campus in Brazos County, initially will include a
cluster of seven new buildings and test beds to encourage the private sector to develop secure research facilities adjacent to the
System’s site. The facility, named the RELLIS Campus will focus on robotics, driverless and connected vehicles, advanced
manufacturing, large-scale testing as well as smart power grids and water systems.
George Bush Presidential Library and Museum
The City is the site of the George Bush Presidential Library and Museum, located on the campus of Texas A&M University. Texas
A&M provides programs and facilities such as research and instructional programs related to the library and museum, a conference
center, communications center, educational museum/library center, and family-oriented facilities such as a park surrounding the
presidential library and museum. The Presidential Library and Museum is also part of the George Bush Presidential Library Center
which is home to the prestigious Bush School of Government and Public Service.
Century Square
The City continues to experience a sustained period of growth. The growth has resulted in continued retail development, especially in
the Tower Point and Caprock developments in the southern part of the City with new restaurants and other businesses opening and
others under construction to serve the ever growing residential populations in that area of the City. However, that growth has
expanded to the north side of College Station where mixed-used facilities and additional hotels near the Texas A&M campus are
under construction.
One such development is Century Square. This 60-acre development creates a dynamic community center where people congregate
from across the region to experience a walkable, urban destination. The project features premier retail and restaurant establishments,
entertainment venues, 60,000 SF of Class-A office, two full-service hotels: The George and Cavalry Court, luxury apartment homes:
100 Park, and an activated central gathering space.
Athletics
Athletics is an integral part of College Station. Texas A&M University, along with the City, hosts a multitude of athletic events. Texas
A&M University is the home of Kyle Field, Reed Arena, Olsen Field at Bluebell Park, Aggie Softball Complex, George P. Mitchell
Tennis Center and Gilliam Indoor Track Stadium. Several of Texas A&M teams have won both conference and national titles over the
past five years with every university varsity level team competing in post-season play for the 2015-2016 season. This has positioned
the University to host regional payoffs as well as national championship games. Texas A&M’s move to the Southeastern Conference
(SEC) in 2012 has proved positive for the City. For the Texas A&M’s football team ranked third in the nation in average attendance
for both the 2015 and 2016 seasons, according to figures released by the NCAA.
For the 2016 season, A&M drew 101,917 fans per game last season at the rebuilt Kyle Field, trailing only Michigan (110,468) and
Ohio State (107,278). Capacity at Kyle Field is 102,512, the largest in the Southeastern Conference.
The City’s sport complex’s as well as the ease to get around makes College Station attractive to several organizations. Over the past
several years, the Amateur Softball Association and the Texas Amateur Athletic Federation have chosen College Station to host state
tournaments and events. In addition, the City facilitates two major softball tournaments, a soccer tournament, a 7 on 7 flag football
tournament and baseball tournaments throughout the year. The City plans to add 2 additional synthetic athletic fields at Veterans Park
and Athletic Complex. This is anticipated to allow additional tournaments to be held in this area.
A - 4
MAJOR AREA EMPLOYERS
Number of
Firm Name Product Employees
Texas A&M University and System Education/Research 27,000+
Bryan ISD Education 2000+
Texas A&M Health Science Center Education 2000+
Reynolds & Reynolds Computer Hardware and Software 1800+
College Station ISD Education 1700+
Blinn College - Bryan Campus Education 1000+
Sanderson Farms, Inc.Poultry Processing 1000+
CHI St. Joseph's RegionalHospital Health Service 1000+
Wal-Mart/Sam's Retail 1000+
HEB Grocery Retail 1000+
Brazos County Government 500-999
City of Bryan Government 500-999
City of College Station Government 500-999
College Station MedicalCenter Health Service 500-999
Ply Gem Windows Manufacturing 500-999
Baylor Scott & White Health Service 500-999
Source: Research Valley Partnership
Employment is provided by a variety of high growth industries located in, or adjacent to, the City which include ambulatory health
care services; professional, scientific, and technical services; specialty trade contractors; food manufacturing; administrative and
support services as identified in the Local Employment Dynamics data. Additionally College Station is also home to the 350 acre
Research Park, located on the Texas A&M University campus, which houses 30 public-private tenants including the Research Valley
Partnership, Schlumberger, Texas A&M Transportation Institute, and Offshore Technology Research Center. The City also developed
the 200-acre, Class “A” Business Center at College Station (BCCS), tenants of which include Reynolds and Reynolds Cognizant
Technology Solution, Suddenlink Media, Stata Corporation, Heat Transfer Research, Inc. (HTRI), and the Texas A&M University
System. In addition, the City has worked to develop a new Science Park at Research Valley, which currently houses Lynntech, Inc.
and RBC Technologies.
A - 5
LABOR STATISTICS
College Station
Labor Total
Force Employment Unemployment Rate
2010 47,301 44,488 2,813 5.9%
2011 47,972 44,939 3,033 6.3%
2012 47,092 44,328 2,764 5.9%
2013 51,136 48,665 2,471 4.8%
2014 52,028 49,945 2,083 4.0%
2015 52,739 51,023 1,716 3.3%
2016 55,788 53,913 1,875 3.4%
2017 (1)56,962 55,002 1,960 3.4%
Year
Brazos County
Labor Total
Force Employment Unemployment Rate
2010 99,119 93,101 6,018 6.1%
2011 100,643 94,245 6,398 6.4%
2012 98,755 92,963 5,792 5.9%
2013 103,089 98,074 5,015 4.9%
2014 104,334 100,180 4,154 4.0%
2015 105,935 102,343 3,592 3.4%
2016 110,420 106,643 3,777 3.4%
2017 (1)112,774 108,797 3,977 3.5%
Year
Source: Texas Workforce Commission.
(1) As of February 28, 2017
BUILDING PERMITS
College Station has grown rapidly over the past 30 years as evidenced by an increase in population from 37,272 in 1980 to 93,857 in
2010. As of 2017, the estimated population of College Station was 109,936. The following table sets forth the number and value of
construction permits issued by the City over the past several years.
ResidentialConstruction CommercialConstruction Total
Number Number Number
of Permits Value of Permits Value of Permits Value
2007 990 161,466,990$413 74,683,795$1,403 236,150,785$
2008 1,131 164,494,779 346 154,313,994 1,477 318,808,773
2009 792 82,316,558 243 46,947,099 1,035 129,263,657
2010 860 93,158,066 309 162,053,510 1,169 255,211,576
2011 971 124,132,135 359 123,779,052 1,330 247,911,187
2012 1,208 149,737,218 325 67,478,910 1,533 217,216,128
2013 1,030 145,142,757 333 67,516,132 1,363 212,658,889
2014 1,167 211,909,494 338 67,570,229 1,505 279,479,723
2015 1,687 206,336,883 294 78,209,095 1,981 284,545,978
2016 1,802 325,247,597 424 207,892,402 2,226 533,139,999 (1)
Calendar
Year
Source: The City.
(1)Reflects January through December 2016.
A - 6
COUNTY CHARACTERISTICS
Brazos County was created in 1841 from Robertson and Washington Counties. The economy is diversified primarily by agribusiness,
computer manufacturing, research and development, and education. The Texas Almanac designates cattle, hogs, sorghums, corn,
cotton, wheat, oats and pecans as the principal sources of agricultural income.
The County had a 2010 population of 194,851, an increase of 27.8% since 2000. Minerals produced in the County include sand and
gravel, lignite, gas and oil.
[Remainder of Page Intentionally Left Blank]
APPENDIX B
EXCERPTS FROM THE
CITY OF COLLEGE STATION, TEXAS
ANNUAL FINANCIAL REPORT
For the Year Ended September 30, 2016
The information contained in this Appendix consists of excerpts from the City of College
Station, Texas Annual Financial Report for the Year Ended September 30, 2016, and is not
intended to be a complete statement of the City's financial condition. Reference is made to
the complete Report for further information.
APPENDIX C
FORMS OF OPINIONS OF BOND COUNSEL
City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:117-0224 Name:General Obligation Coversheet
Status:Type:Presentation Agenda Ready
File created:In control:4/28/2017 City Council Regular
On agenda:Final action:5/11/2017
Title:Presentation, possible action, and discussion on an ordinance authorizing the issuance of up to
$36,600,000 in principal amount of “City of College Station, Texas General Obligation Improvement
and Refunding Bonds, Series 2017”; with no more than $19,000,000 of such amount to be issued to
refund the Refunded Obligations and pay costs of issuance of the Bonds and no more than
$17,600,000 for new capital projects; delegating the authority to certain City Officials to execute
certain documents relating to the sale of the Bonds; approving and authorizing instruments and other
procedures relating to said bonds; and enacting other provisions relating to the subject.
Sponsors:Mary Ellen Leonard
Indexes:
Code sections:
Attachments:Ordinance (GO Imp and Ref) (ver 1)
Action ByDate Action ResultVer.
Presentation, possible action, and discussion on an ordinance authorizing the issuance of up to
$36,600,000 in principal amount of “City of College Station, Texas General Obligation Improvement
and Refunding Bonds, Series 2017”; with no more than $19,000,000 of such amount to be issued to
refund the Refunded Obligations and pay costs of issuance of the Bonds and no more than
$17,600,000 for new capital projects; delegating the authority to certain City Officials to execute
certain documents relating to the sale of the Bonds; approving and authorizing instruments and other
procedures relating to said bonds; and enacting other provisions relating to the subject.
Relationship to Strategic Goals:Financially Sustainable City,and Providing Core Services and
Infrastructure.
Recommendation(s):Council move to approve the ordinance authorizing the issuance and sale
of up to $36,600,000 in “General Obligation Improvement and Refunding Bonds,Series 2017”;
delegating the authority to certain City Officials to execute certain documents relating to the sale of
the Bonds;approving and authorizing instruments and other procedures relating to said bonds;and
enacting other provisions relating to the subject.
Summary:The aggregate original principal amount of the Bonds shall not exceed $36,600,000
with $17,600,000 of such amount issued to pay for the costs of constructing and improving streets
and roads including related drainage,landscaping,lighting,related thereto;to pay for the costs of
expanding,constructing and improving City library facilities;to pay paying the fiscal,engineering and
legal fees incurred in connection with such projects;and to pay the costs incurred in connection with
the issuance of the Bonds.The City of College Station typically issues debt to fund various capital
projects identified and approved as a part of the annual budget.
The City also has the opportunity to refund no more than $19,000,000 its General Obligation
College Station, TX Printed on 5/5/2017Page 1 of 2
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File #:17-0224,Version:1
The City also has the opportunity to refund no more than $19,000,000 its General Obligation
Improvement Bonds Series 2009 and Certificates of Obligation,Series 2009 in order to achieve
savings due to lower interest rates that are currently available.The City's Financial Advisor,Drew
Masterson with First Southwest Company has presented the City with this opportunity.Refunding is
issuing new debt to replace and pay off existing debt.Refunding can be done for a number of
reasons;however,most often are used to accrue a savings against the current debt.Refundings are
typically done as negotiated sales rather than our normal bidding process.However,our financial
advisor has recommended a competitive sale process this year.
The City Council's Finance and Budgetary Policies allow for the City to "refund"debt when there is a
net present value savings of at least 5%.The opportunity that is currently before the City Council will
save the City approximately 9.437860%over the remaining life of the issues.The net present value
savings includes the debt issuance costs.If this ordinance is approved,the City Council will be
delegating to the Mayor,the City Manager and the Assistant City Manager the authority to
effect the refunding and the bond sale when the net present value savings on the refunding
achieves at least the 5%threshold through May 11,2018.Currently,the net present value
savings is above the 5%threshold,however,if the net present value savings should fall below
the 5%,this will provide an opportunity to reach the 5%threshold over the next 6 months in
order to generate as much savings as possible for the City.
The City Council is authorized to approve the issuance of General Obligation Improvement Bonds
which have been authorized by a vote of the citizens.The Citizens approved a total of $76,950,000
on November 4,2008.By approving the ordinance,the Council will issue $17,390,000 from the 2008
authorization.This is the eighth bond sale from the 2008 bond authorization.The 2008 authorization
provides for a 7 year capital plan.
Budget &Financial Summary:Based on current estimates,the refunding will reduce the overall
cost of the refunded bonds by at least 9.437860%over the remaining life of the existing bonds.Total
net present value savings will be at least $1,383,590.26.The average annual savings will range
between ($7,387.91)and $185,630.63 per year.The savings will help the City by providing an
additional margin that Council may choose to use for projects not currently funded by an identified
source.
Staff reviewed the impact of the general obligation improvement bonds on the City’s ability to meet
debt service requirements and the effect they may have on the ad valorem tax rate.The impact will
be reviewed as part of the financial forecast and FY18 budget.
Attachments:
1. Ordinance
2. Preliminary Official Statement
College Station, TX Printed on 5/5/2017Page 2 of 2
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ORDINANCE NO. 2017-
AUTHORIZING THE ISSUANCE OF "CITY OF COLLEGE STATION,
TEXAS GENERAL OBLIGATION IMPROVEMENT AND REFUNDING
BONDS, SERIES 2017"; DELEGATING THE AUTHORITY TO CERTAIN
CITY OFFICIALS TO EXECUTE CERTAIN DOCUMENTS RELATING TO
THE SALE OF THE BONDS; APPROVING AND AUTHORIZING
INSTRUMENTS AND PROCEDURES RELATING TO SAID BONDS; AND
ENACTING OTHER PROVISIONS RELATING TO THE SUBJECT
WHEREAS, it is deemed advisable and to be in the best interest of the City of College
Station (the "City") that certain bonds authorized at elections previously held in the City be
combined in a single issue and sold as described herein.
WHEREAS, this City Council finds and determines that it is necessary and proper to
order the issuance, sale and delivery of such voted bonds;
WHEREAS, the City has previously issued, and there are presently outstanding, revenue
bonds of the City secured by a pledge of revenues derived by the City from the ownership and
operation of the City's Utility System (consisting of the City's combined municipal electric light
and power, waterworks and sewer system), and general obligation bonds and certificates of
obligation which are secured by the full faith and credit of the City and a pledge by the City to
levy ad valorem taxes sufficient to pay principal of and interest on the bonds and certificates of
obligation as they become due and a pledge of surplus revenues of the Utility System to further
secure the certificates of obligation;
WHEREAS, the City now desires to refund all or part of the outstanding revenue bonds,
general obligation bonds and certificates of obligation described in Schedule I attached hereto
and incorporated herein, which may be selected and designated to be refunded by the Pricing
Officer in the Pricing Certificate (the "Refunded Obligations");
WHEREAS, Chapter 1207, Texas Government Code, authorizes the City to issue
refunding bonds and to deposit the proceeds from the sale thereof, together with any other
available funds or resources, directly with a paying agent for the Refunded Obligations or a trust
company or commercial bank that does not act as a depository for the City and is named in these
proceedings, and such deposit, if made before the payment dates of the Refunded Obligations,
shall constitute the making of firm banking and financial arrangements for the discharge and
final payment of the Refunded Obligations;
WHEREAS, Chapter 1207, Texas Government Code, further authorizes the City to enter
into an escrow or similar agreement with such paying agent for the Refunded Obligations or trust
company or commercial bank with respect to the safekeeping, investment, reinvestment,
administration and disposition of any such deposit, upon such terms and conditions as the City
and such paying agent or trust company or commercial bank may agree;
WHEREAS, the City Council hereby finds and declares a public purpose and it is in the
best interests of the City to refund the Refunded Obligations in order to achieve a debt service
savings, with such savings, among other information and terms to be included in the Pricing
2
Certificate to be executed by the Pricing Officer (hereinafter designated), all in accordance with
the provisions of Section 1207.007, Texas Government Code;
WHEREAS, all the Refunded Obligations mature or are subject to redemption prior to
maturity within 20 years of the date of the bonds hereinafter authorized;
WHEREAS, the City is an "Issuer" within the meaning of Section 1371.001(4)(P), Texas
Government Code, having (i) a principal amount of at least $100 million in outstanding long-
term indebtedness, in long-term indebtedness proposed to be issued, or in a combination of
outstanding or proposed long-term indebtedness and (ii) some amount of long-term indebtedness
outstanding or proposed to be issued that is rated in one of the four highest rating categories for
long-term debt instruments by a nationally recognized rating agency for municipal securities,
without regard to the effect of any credit agreement or other form of credit enhancement entered
into in connection with the obligation;
WHEREAS, the bonds hereinafter authorized to be issued were voted and are to be
issued, sold and delivered pursuant to the general laws of the State of Texas, including Texas
Government Code Chapters 1207, 1331 and 1371, as amended, and the City's Home Rule
Charter; and
WHEREAS, it is officially found, determined, and declared that the meeting at which this
Ordinance has been adopted was open to the public and public notice of the time, place and
subject matter of the public business to be considered and acted upon at said meeting, including
this Ordinance, was given, all as required by the applicable provisions of Texas Government
Code Chapter 551;
THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
COLLEGE STATION, TEXAS:
Section 1. DEFINITIONS; AUTHORIZATION OF BONDS.
(a) Definitions. Terms not otherwise defined herein shall have the following
meanings.
(i) The term "Authorized Denomination" shall mean a denomination of
$5,000 of principal amount of a Bond or any integral multiple thereof.
(ii) The term "Bonds" shall mean the City of College Station, Texas General
Obligation Improvement and Refunding Bonds, Series 2017.
(iii) The term "Business Day" means any day other than a Saturday, Sunday, a
legal holiday, or a day on which banking institutions in the City are authorized by law or
executive order to close.
(iv) The term "MSRB" means the Municipal Securities Rulemaking Board.
(v) The term "Pricing Certificate" means a certificate of the Pricing Officer
setting forth the terms of sale of the Bonds including the method of sale, principal
3
amount, maturity dates, interest payment dates, dated date, interest rates, yields,
redemption provisions, and other matters related to the sale of the Bonds.
(vi) The term "Pricing Officer" means the Mayor, the City Manager and the
Assistant City Manager (Jeff Kersten) of the City (each the "Pricing Officer") each of
whom is independently authorized to finalize the terms of sale of the Bonds by execution
of the Pricing Certificate.
(vii) The term "Purchaser" means (i) if the Bonds are sold by negotiated sale,
the underwriter or underwriting syndicate selected by the Pricing Officer, or (ii) if the
Bonds are sold by competitive sale by soliciting public bids, the underwriter or
underwriting syndicate awarded the Bonds by the Pricing Officer.
(viii) The term "Rule" means SEC Rule 15c2-12 (17 C.F.R. § 240.15C2-12), as
amended from time to time.
(ix) The term "SEC" means the United States Securities and Exchange
Commission
(b) That said City's General Obligation Improvement and Refunding Bonds, to be
designated the "City of College Station, Texas General Obligation Improvement and Refunding
Bonds, Series 2017", are hereby authorized to be issued and delivered in the principal amount
not to exceed $36,600,000 for the public purpose of (i) refunding the Refunded Obligations; (ii)
pay for the costs of constructing and improving streets and roads including related drainage,
landscaping, lighting, related thereto; (iii) pay for the costs of expanding, constructing and
improving City library facilities; (iv) paying the fiscal, engineering and legal fees incurred in
connection with such projects; and (v) paying the costs incurred in connection with the issuance
of the Bonds (collectively, the "Projects").
Section 2. DELEGATION TO PRICING OFFICER.
(a) As authorized by Sections 1207.007 and 1371.053, Texas Government Code, each
Pricing Officer is each hereby authorized to act individually and severally on behalf of the City
in selling and delivering the Bonds, carrying out the other procedures specified in this Ordinance,
including, determining the date of the Bonds, any additional or different designation or title by
which the Bonds shall be known, whether the Bond shall be sold and delivered in one or more
series and the date and sale and delivery of each such series, the price at which the Bonds will be
sold, the years in which the Bonds will mature, the principal amount to mature in each of such
years, the rate of interest to be borne by each such maturity, the interest payment and record
dates, the price and terms upon and at which the Bonds shall be subject to redemption prior to
maturity at the option of the City, as well as any mandatory sinking fund redemption provisions,
and all other matters relating to the issuance, sale, and delivery of the Bonds and obtaining
municipal insurance for all or any portion of the Bonds and providing for the terms and
provisions thereof applicable to the Bonds, all of which shall be specified in the Pricing
Certificate; provided that:
(i) the aggregate original principal amount of the Bonds shall not exceed
$36,600,000, with (i) no more than $19,000,000 of such amount to be issued to refund
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the Refunded Obligations and pay costs of issuance of the Bonds, and (ii) no more than
$17,600,000 of such amount issued to pay for the costs of constructing and improving
streets and roads including related drainage, landscaping, lighting, related thereto; to pay
for the costs of expanding, constructing and improving City library facilities; to pay
paying the fiscal, engineering and legal fees incurred in connection with such projects;
and to pay the costs incurred in connection with the issuance of the Bonds;
(ii) the true interest cost of the Bonds shall not exceed 3.750% per annum;
(iii) the refunding must produce present value debt service savings of at least
5.000%;
(iv) the final maturity of the Bonds shall not exceed February 15, 2037;
(v) the delegation made hereby shall expire if not exercised by the Pricing
Officer on or prior to May 11, 2018; and
(vi) on or prior to delivery, the Bonds shall be rated by a nationally recognized
rating agency for municipal securities in one of the four highest categories for long-term
obligations.
(b) In establishing the aggregate principal amount of the Bonds, the Pricing Officer
shall establish an amount that, when combined with premium used for purposes other than the
payment of costs of issuance, does not exceed the amount authorized in Subsection (a) hereof,
which shall be sufficient in amount to provide for the purposes for which the Bonds are
authorized and to pay costs of issuing the Bonds. The Bonds shall be sold with and subject to
such terms as set forth in the Pricing Certificate.
(c) The Bonds may be sold by public offering (either through a negotiated or
competitive offering) and the Pricing Certificate shall so state, and the Pricing Certificate may
conform this Ordinance to such method of sale, including the provisions hereof that pertain to the
undertaking of the Issuer in accordance with the Rule.
(c) The City Council hereby determines that the delegation of the authority to the
Pricing Officer to approve the final terms of the Bonds as set forth in this Ordinance is, and the
decisions made by the Pricing Officer pursuant to such delegated authority and incorporated into
the Pricing Certificate are required to be, in the Issuer's best interests, and the Pricing Officer is
hereby authorized to make and include in the Pricing Certificate a finding to that effect.
Section 3. CHARACTERISTICS OF THE BONDS. (a) The City shall keep or cause to
be kept at the corporate trust office in Dallas, Texas (the "Designated Trust Office") of The Bank
of New York Mellon Trust Company, N.A., or such other bank, trust company, financial
institution, or other agency named in accordance with the provisions of (g) below (the "Paying
Agent/Registrar"), books or records for the registration and transfer of the Bonds (the
"Registration Books"), and the City hereby appoints the Paying Agent/Registrar as its registrar
and transfer agent to keep such books or records and make such transfers and registrations under
such reasonable regulations as the City and Paying Agent/Registrar may prescribe; and the
Paying Agent/Registrar shall make such transfers and registrations as herein provided. It shall be
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the duty of the Paying Agent/Registrar to obtain from the registered owner and record in the
Registration Books the address of the registered owner of each Bond to which payments with
respect to the Bonds shall be mailed, as herein provided. The City or its designee shall have the
right to inspect the Registration Books during regular business hours of the Paying
Agent/Registrar at its Designated Trust Office, but otherwise the Paying Agent/Registrar shall
keep the Registration Books confidential and, unless otherwise required by law, shall not permit
their inspection by any other entity. Registration of each Bond may be transferred in the
Registration Books only upon presentation and surrender thereof to the Paying Agent/Registrar
at its Designated Trust Office for transfer of registration and cancellation, together with proper
written instruments of assignment, in form and with guarantee of signatures satisfactory to the
Paying Agent/Registrar, evidencing the assignment of such Bond, or any portion thereof in any
Authorized Denomination, to the assignee or assignees thereof, and the right of such assignee or
assignees to have such Bond or any such portion thereof registered in the name of such assignee
or assignees. Upon the assignment and transfer of any Bond or any portion thereof, a new
substitute Bond or Bonds shall be issued in exchange therefor in the manner herein provided.
(b) The entity in whose name any Bond shall be registered in the Registration Books
at any time shall be treated as the absolute owner thereof for all purposes of this Ordinance,
whether or not such Bond shall be overdue, and the City and the Paying Agent/Registrar shall
not be affected by any notice to the contrary; and payment of, or on account of, the principal of,
premium, if any, and interest on any such Bond shall be made only to such registered owner. All
such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond
to the extent of the sum or sums so paid.
(c) The City hereby further appoints the Paying Agent/Registrar to act as the paying
agent for paying the principal of and interest on the Bonds, and to act as its agent to exchange or
replace Bonds, all as provided in this Ordinance. The Paying Agent/Registrar shall keep proper
records of all payments made by the City and the Paying Agent/Registrar with respect to the
Bonds, and of all exchanges thereof, and all replacements thereof, as provided in this Ordinance.
(d) Each Bond may be exchanged for fully registered Bonds in the manner set forth
herein. Each Bond issued and delivered pursuant to this Ordinance may, upon surrender thereof
at the Designated Trust Office of the Paying Agent/Registrar, together with a written request
therefor duly executed by the registered owner or the assignee or assignees thereof, or its or their
duly authorized attorneys or representatives, with guarantee of signatures satisfactory to the
Paying Agent/Registrar, at the option of the registered owner or such assignee or assignees, as
appropriate, be exchanged for fully registered Bonds, without interest coupons, in the form
prescribed in the FORM OF BOND, in an Authorized Denomination (subject to the requirement
hereinafter stated that each substitute Bond shall have a single stated maturity date), as requested
in writing by such registered owner or such assignee or assignees, in an aggregate principal
amount equal to the principal amount of any Bond or Bonds so surrendered, and payable to the
appropriate registered owner, assignee, or assignees, as the case may be. If any Bond or portion
thereof is assigned and transferred, each Bond issued in exchange therefor shall have the same
principal maturity date and bear interest at the same rate as the Bond for which it is being
exchanged. Each substitute Bond shall bear a letter and/or number to distinguish it from each
other Bond. The Paying Agent/Registrar shall exchange or replace Bonds as provided herein,
and each fully registered Bond or Bonds delivered in exchange for or replacement of any Bond
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or portion thereof as permitted or required by any provision of this Ordinance shall constitute
one of the Bonds for all purposes of this Ordinance, and may again be exchanged or replaced. It
is specifically provided, however, that any Bond delivered in exchange for or replacement of
another Bond prior to the first scheduled interest payment date on the Bonds (as stated on the
face thereof) shall be dated the same date as such Bond, but each substitute Bond so delivered on
or after such first scheduled interest payment date shall be dated as of the interest payment date
preceding the date on which such substitute Bond is delivered, unless such substitute Bond is
delivered on an interest payment date, in which case it shall be dated as of such date of delivery;
provided, however, that if at the time of delivery of any substitute Bond the interest on the Bond
for which it is being exchanged has not been paid, then such substitute Bond shall be dated as of
the date to which such interest has been paid in full. On each substitute Bond issued in exchange
for or replacement of any Bond or Bonds issued under this Ordinance there shall be printed
thereon a Paying Agent/Registrar's Authentication Certificate, in the form hereinafter set forth in
the FORM OF BOND (the "Authentication Certificate"). An authorized representative of the
Paying Agent/Registrar shall, before the delivery of any such substitute Bond, date such
substitute Bond in the manner set forth above, and manually sign and date the Authentication
Certificate, and no such substitute Bond shall be deemed to be issued or outstanding unless the
Authentication Certificate is so executed. The Paying Agent/Registrar promptly shall cancel all
Bonds surrendered for exchange or replacement. No additional ordinances, orders, or resolutions
need be passed or adopted by the City Council or any other body or person so as to accomplish
the foregoing exchange or replacement of any Bonds or portion thereof, and the Paying
Agent/Registrar shall provide for the printing, execution, and delivery of the substitute Bond in
the manner prescribed herein. Pursuant to Chapter 1206, Texas Government Code, the duty of
exchange or replacement of any Bonds as aforesaid is hereby imposed upon the Paying
Agent/Registrar, and, upon the execution of Authentication Certificate, the exchanged or
replaced Bond shall be valid, incontestable, and enforceable in the same manner and with the
same effect as the Bonds which originally were delivered pursuant to this Ordinance, approved
by the Attorney General, and registered by the Comptroller of Public Accounts. Neither the City
nor the Paying Agent/Registrar shall be required to transfer or exchange any Bond so selected for
redemption, in whole or in part, within 45 calendar days of the date fixed for redemption;
provided, however, such limitation of transfer shall not be applicable to an exchange by the
registered owner of the uncalled principal of a Bond.
(e) All Bonds issued in exchange or replacement of any other Bond or portion
thereof, (i) shall be issued in fully registered form, without interest coupons, with the principal of
and interest on such Bonds to be payable only to the registered owners thereof, (ii) may be
redeemed prior to their scheduled maturities, (iii) may be transferred and assigned, (iv) may be
exchanged for other Bonds, (v) shall have the characteristics, (vi) shall be signed and sealed, and
(vii) the principal of and interest on the Bonds shall be payable, all as provided, and in the
manner required or indicated, in the FORM OF BOND.
(f) The City shall pay the Paying Agent/Registrar's reasonable and customary fees
and charges for making transfers of Bonds, but the registered owner of any Bond requesting such
transfer shall pay any taxes or other governmental charges required to be paid with respect
thereto. The registered owner of any Bonds requesting any exchange shall pay the Paying
Agent/Registrar's reasonable and standard or customary fees and charges for exchanging any
such Bond or portion thereof, together with any taxes or governmental charges required to be
7
paid with respect thereto, all as a condition precedent to the exercise of such privilege of
exchange, except, however, that in the case of the exchange of an assigned and transferred Bond
or Bonds or any portion or portions thereof in an Authorized Denomination, as provided in this
Ordinance, such fees and charges will be paid by the City. In addition, the City hereby
covenants with the registered owners of the Bonds that it will (i) pay the reasonable and standard
or customary fees and charges of the Paying Agent/Registrar for its services with respect to the
payment of the principal of and interest on Bonds, when due, and (ii) pay the fees and charges of
the Paying Agent/Registrar for services with respect to the transfer or registration of Bonds
solely to the extent above provided, and with respect to the exchange of Bonds solely to the
extent above provided.
(g) The City covenants with the registered owners of the Bonds that at all times while
the Bonds are outstanding the City will provide a competent and legally qualified bank, trust
company, financial institution, or other agency to act as and perform the services of Paying
Agent/Registrar for the Bonds under this Ordinance, and that the Paying Agent/Registrar will be
one entity. The City reserves the right to, and may, at its option, change the Paying
Agent/Registrar upon not less than sixty days written notice to the Paying Agent/Registrar. In
the event that the entity at any time acting as Paying Agent/Registrar (or its successor by merger,
acquisition, or other method) should resign or otherwise cease to act as such, the City covenants
that it will promptly appoint a competent and legally qualified national or state banking
institution which shall be a corporation organized and doing business under the laws of the
United States of America or of any state, authorized under such laws to exercise trust powers,
subject to supervision or examination by federal or state authority, and whose qualifications
substantially are similar to the previous Paying Agent/Registrar to act as Paying Agent/Registrar
under this Ordinance. Upon any change in the Paying Agent/Registrar, the previous Paying
Agent/Registrar promptly shall transfer and deliver the Registration Books (or a copy thereof),
along with all other pertinent books and records relating to the Bonds, to the new Paying
Agent/Registrar designated and appointed by the City. Upon any change in the Paying
Agent/Registrar, the City promptly will cause a written notice thereof to be sent by the new
Paying Agent/Registrar to each registered owner of the Bonds, by United States mail, first-class
postage prepaid, which notice also shall give the address of the new Paying Agent/Registrar. By
accepting the position and performing as such, each Paying Agent/Registrar shall be deemed to
have agreed to the provisions of this Ordinance, and a certified copy of this Ordinance shall be
delivered to each Paying Agent/Registrar.
Section 4. FORM OF BONDS. The form of the Bonds, including the form of the
Authentication Certificate, the form of Assignment and the form of Registration Certificate of
the Comptroller of Public Accounts of the State of Texas to be attached to the Bonds initially
issued and delivered pursuant to this Ordinance, shall be in substantially the form as set forth in
Exhibit A to this Ordinance, shall be numbered consecutively from R-1 upward, with the Initial
Bond being numbered T-1, with such appropriate variations, omissions, or insertions as are
permitted or required by this Ordinance, and with the FORM OF BOND to be modified pursuant
to, and completed with information set forth in the Pricing Certificate. The FORM OF BOND as
it appears in Exhibit A shall be completed, amended and modified by Bond Counsel to
incorporate the information set forth in the Pricing Certificate but it is not required for the FORM
OF BOND to reproduced as an exhibit to the Pricing Certificate. The printer of the Bonds is
hereby authorized to print on the Bonds (i) the form of bond counsel's opinion relating to the
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Bonds, and (ii) an appropriate statement of insurance furnished by a municipal bond insurance
company providing municipal bond insurance, if any, covering all or any part of the Bonds.
Section 5. RESERVED.
Section 6. LEVY OF TAX; INTEREST AND SINKING FUND.
(a) That a special fund or account, to be designated the "City of College Station,
Texas Series 2017 Improvement and Refunding Bond Interest and Sinking Fund" (the "Interest
and Sinking Fund") is hereby created and shall be established and maintained by the City. The
Interest and Sinking Fund shall be kept separate and apart from all other funds and accounts of
the City, and shall be used only for paying the interest on and principal of the Bonds. All ad
valorem taxes levied and collected for and on account of the Bonds shall be deposited, as
collected, to the credit of the Interest and Sinking Fund. During each year while any of the
Bonds are outstanding and unpaid, the governing body of the City shall compute and ascertain
the rate and amount of ad valorem tax, based on the latest approved tax rolls of the City, with full
allowances being made for tax delinquencies and the cost of tax collections, which will be
sufficient to raise and produce the money required to pay the interest on the Bonds as such
interest comes due, and to provide a sinking fund to pay the principal (including mandatory
sinking fund redemption payments, if any) of the Bonds as such principal matures or comes due
through operation of the mandatory sinking fund redemption, if any, but never less than 2% of
the original amount of the Bonds as a sinking fund each year. The rate and amount of ad
valorem tax is hereby ordered to be levied against all taxable property in the City for each year
while any of the Bonds is outstanding and unpaid, and the ad valorem tax shall be assessed and
collected each such year and deposited to the credit of the Interest and Sinking Fund. Ad
valorem taxes necessary to pay the interest on and principal of the Bonds, as such interest comes
due and such principal matures, are hereby pledged for such payment, within the limit prescribed
by law.
Section 7. TRANSFER. That the City shall do any and all things necessary to
accomplish the transfer of monies to the Interest and Sinking Fund of this issue in ample time to
pay such items of principal and interest due on the Bonds.
Section 8. SECURITY FOR FUNDS. That the Interest and Sinking Fund created by this
Ordinance shall be secured in the manner and to the fullest extent permitted or required by law
for the security of public funds, and such Interest and Sinking Fund shall be used only for the
purposes and in the manner permitted or required by this Ordinance.
Section 9. DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED BONDS.
(a) Replacement Bonds. That in the event any outstanding Bond is damaged,
mutilated, lost, stolen, or destroyed, the Paying Agent/Registrar shall cause to be printed,
executed, and delivered, a new Bond of the same principal amount, maturity, and interest rate, as
the damaged, mutilated, lost, stolen, or destroyed Bond, in replacement for such Bond in the
manner hereinafter provided.
(b) Application for Replacement Bonds. That application for replacement of
damaged, mutilated, lost, stolen, or destroyed Bonds shall be made by the registered owner
9
thereof to the Paying Agent/Registrar. In every case of loss, theft, or destruction of a Bond, the
registered owner applying for a replacement Bond shall furnish to the City and to the Paying
Agent/Registrar such security or indemnity as may be required by them to save each of them
harmless from any loss or damage with respect thereto. Also, in every case of loss, theft, or
destruction of a Bond, the registered owner shall furnish to the City and to the Paying
Agent/Registrar evidence to their satisfaction of the loss, theft, or destruction of such Bond, as
the case may be. In every case of damage or mutilation of a Bond, the registered owner shall
surrender to the Paying Agent/Registrar for cancellation the Bond so damaged or mutilated.
(c) No Default Occurred. That notwithstanding the foregoing provisions of this
Section, in the event any such Bond shall have matured, and no default has occurred which is
then continuing in the payment of the principal of, redemption premium, if any, or interest on the
Bond, the City may authorize the payment of the same (without surrender thereof except in the
case of a damaged or mutilated Bond) instead of issuing a replacement Bond, provided security
or indemnity is furnished as above provided in this Section.
(d) Charge for Issuing Replacement Bonds. That prior to the issuance of any
replacement Bond, the Paying Agent/Registrar shall charge the registered owner of such Bond
with all legal, printing, and other expenses in connection therewith. Every replacement Bond
issued pursuant to the provisions of this Section by virtue of the fact that any Bond is lost, stolen,
or destroyed shall constitute a contractual obligation of the City whether or not the lost, stolen, or
destroyed Bond shall be found at any time, or be enforceable by anyone, and shall be entitled to
all the benefits of this Ordinance equally and proportionately with any and all other Bonds duly
issued under this Ordinance.
(e) Authority for Issuing Replacement Bonds. That in accordance with Section
1201.067, Texas Government Code, this Section of this Ordinance shall constitute authority for
the issuance of any such replacement Bond without necessity of further action by the City or any
other body or person, and the duty of the replacement of such Bonds is hereby authorized and
imposed upon the Paying Agent/Registrar, and the Paying Agent/Registrar shall authenticate and
deliver such Bonds in the form and manner and with the effect, as provided in Section 5(d) of
this Ordinance for Bonds issued in conversion and exchange of other Bonds.
Section 10. FEDERAL INCOME TAX MATTERS. That the City covenants to refrain
from any action which would adversely affect, or to take such action as to ensure, the treatment
of the Bonds as obligations described in section 103 of the Code, the interest on which is not
includable in the "gross income" of the holder for purposes of federal income taxation. In
furtherance thereof, the City covenants as follows:
(a) to take any action to assure that no more than 10 percent of the proceeds of the
Bonds (less amounts deposited to a reserve fund, if any) are used for any "private business use,"
as defined in section 141(b)(6) of the Code or, if more than 10 percent of the proceeds are so
used, that amounts, whether or not received by the City, with respect to such private business
use, do not, under the terms of this Ordinance or any underlying arrangement, directly or
indirectly, secure or provide for the payment of more than 10 percent of the debt service on the
Bonds, in contravention of section 141(b)(2) of the Code;
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(b) to take any action to assure that in the event that the "private business use"
described in subsection (a) hereof exceeds five percent of the proceeds of the Bonds (less
amounts deposited into a reserve fund, if any) then the amount in excess of five percent is used
for a "private business use" which is "related" and not "disproportionate", within the meaning of
section 141(b)(3) of the Code, to the governmental use;
(c) to take any action to assure that no amount which is greater than the lesser of
$5,000,000, or five percent of the proceeds of the Bonds (less amounts deposited into a reserve
fund, if any) is directly or indirectly used to finance loans to persons, other than state or local
governmental units, in contravention of section 141(c) of the Code;
(d) to refrain from taking any action which would otherwise result in the Bonds being
treated as "private activity bonds" within the meaning of section 141(b) of the Code;
(e) to refrain from taking any action that would result in the Bonds being "federally
guaranteed" within the meaning of section 149(b) of the Code;
(f) to refrain from using any portion of the proceeds of the Bonds, directly or
indirectly, to acquire or to replace funds which were used, directly or indirectly, to acquire
investment property (as defined in section 148(b)(2) of the Code) which produces a materially
higher yield over the term of the Bonds, other than investment property acquired with –
(1) proceeds of the Bonds invested for a reasonable temporary period of three
years or less until such proceeds are needed for the purpose for which the Bonds are
issued,
(2) amounts invested in a bona fide debt service fund, within the meaning of
section 1.148-1(b) of the Treasury Regulations, and
(3) amounts deposited in any reasonably required reserve or replacement fund
to the extent such amounts do not exceed 10 percent of the proceeds of the Bonds;
(g) to otherwise restrict the use of the proceeds of the Bonds or amounts treated as
proceeds of the Bonds, as may be necessary, so that the Bonds do not otherwise contravene the
requirements of section 148 of the Code (relating to arbitrage) and, to the extent applicable,
section 149(d) of the Code (relating to advance refundings); and
(h) to pay to the United States of America at least once during each five-year period
(beginning on the date of delivery of the Bonds) an amount that is at least equal to 90 percent of
the "Excess Earnings," within the meaning of section 148(f) of the Code and to pay to the United
States of America, not later than 60 days after the Bonds have been paid in full, 100 percent of
the amount then required to be paid as a result of Excess Earnings under section 148(f) of the
Code.
For purposes of the foregoing (a) and (b), the City understands that the term "proceeds" includes
"disposition proceeds" as defined in the Treasury Regulations and, in the case of refunding
bonds, transferred proceeds (if any) and proceeds of the refunded bonds expended prior to the
date of issuance of the Bonds. It is the understanding of the City that the covenants contained
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herein are intended to assure compliance with the Code and any regulations or rulings
promulgated by the U.S. Department of the Treasury pursuant thereto. In the event that
regulations or rulings are hereafter promulgated which modify or expand provisions of the Code,
as applicable to the Bonds, the City will not be required to comply with any covenant contained
herein to the extent that such failure to comply, in the opinion of nationally-recognized bond
counsel, will not adversely affect the exemption from federal income taxation of interest on the
Bonds under section 103 of the Code. In the event that regulations or rulings are hereafter
promulgated which impose additional requirements which are applicable to the Bonds, the City
agrees to comply with the additional requirements to the extent necessary, in the opinion of
nationally-recognized bond counsel, to preserve the exemption from federal income taxation of
interest on the Bonds under section 103 of the Code. In furtherance of such intention, the City
hereby authorizes and directs the Mayor, the City Manager, any Assistant City Manager and the
Assistant City Manager, severally, to execute any documents, certificates or reports required by
the Code, and to make such elections on behalf of the City which may be permitted by the Code
as are consistent with the purpose for the issuance of the Bonds.
In order to facilitate compliance with clause (h) above, a "Rebate Fund" is hereby
established by the City for the sole benefit of the United States of America, and such Fund shall
not be subject to the claim of any other person, including without limitation the bondholders.
The Rebate Fund is established for the additional purpose of compliance with section 148 of the
Code.
Section 11. ALLOCATION OF, AND LIMITATION ON, EXPENDITURES FOR THE
PROJECT. That the City covenants to account for the expenditure of proceeds from the sale of
the Bonds and any investment earnings thereon to be used for the purposes described in Section
1 of this Ordinance (such purpose referred to in this Section and Section 12 as a "Project") on its
books and records by allocating proceeds to expenditures within 18 months of the later of the
date that (a) the expenditure on a Project is made or (b) such Project is completed. The
foregoing notwithstanding, the City shall not expend such proceeds or investment earnings more
than 60 days after the earlier of (a) the fifth anniversary of the date of delivery of the Bonds or
(b) the date the Bonds are retired, unless the City obtains an opinion of nationally-recognized
bond counsel substantially to the effect that such expenditure will not adversely affect the tax-
exempt status of the Bonds. For purposes hereof, the City shall not be obligated to comply with
this covenant if it obtains an opinion that such failure to comply will not adversely affect the
excludability for federal income tax purposes from gross income of the interest.
Section 12. DISPOSITION OF PROJECT. That the City covenants that the property
constituting a Project will not be sold or otherwise disposed in a transaction resulting in the
receipt by the City of cash or other compensation, unless any action taken in connection with
such disposition will not adversely affect the tax-exempt status of the Bonds. For purpose of the
foregoing, the City may rely on an opinion of nationally-recognized bond counsel that any action
taken in connection with such sale or other disposition will not adversely affect the tax-exempt
status of the Bonds. For purposes of the foregoing, the portion of the property comprising
personal property and disposed in the ordinary course shall not be treated as a transaction
resulting in the receipt of cash or other compensation. For purposes hereof, the City shall not be
obligated to comply with this covenant if it obtains an opinion that such failure to comply will
12
not adversely affect the excludability for federal income tax purposes from gross income of the
interest.
Section 13. PROCEDURES TO MONITOR COMPLIANCE WITH TAX
COVENANTS. The City hereby adopts the procedures attached hereto as Exhibit B as a means
of monitoring compliance with the federal tax covenants made by the City herein.
Section 14. CUSTODY, APPROVAL, AND REGISTRATION OF BONDS. That the
Assistant City Manager of the City is hereby authorized to have control of the Bonds initially
issued and delivered hereunder and all necessary records and proceedings pertaining to the
Bonds pending their delivery and their investigation, examination, and approval by the Attorney
General of the State of Texas, and their registration by the Comptroller of Public Accounts of the
State of Texas. Upon registration of the Bonds said Comptroller of Public Accounts (or a deputy
designated in writing to act for said Comptroller) shall manually sign the Comptroller's
Registration Certificate attached to such Bonds, and the seal of said Comptroller shall be
impressed, or placed in facsimile, on such certificate. The Bonds thus registered shall remain in
the custody of the Assistant City Manager (or the designee thereof) until delivered to the
Underwriter (as defined in Section 18 of this Ordinance).
Section 15. DTC REGISTRATION. That the Bonds initially shall be issued and
delivered in such manner that no physical distribution of the Bonds will be made to the public,
and The Depository Trust Company ("DTC"), New York, New York, initially will act as
depository for the Bonds. DTC has represented that it is a limited purpose trust company
incorporated under the laws of the State of New York, a member of the Federal Reserve System,
a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a
"clearing agency" registered under Section 17A of the Securities Exchange Act of 1934, as
amended, and the City accepts, but in no way verifies, such representations. The Bonds initially
authorized by this Ordinance shall be delivered to and registered in the name of CEDE & CO.,
the nominee of DTC. It is expected that DTC will hold the Bonds on behalf of the Underwriter
and its participants. So long as each Bond is registered in the name of CEDE & CO., the Paying
Agent/Registrar shall treat and deal with DTC the same in all respects as if it were the actual and
beneficial owner thereof. It is expected that DTC will maintain a book-entry system which will
identify ownership of the Bonds in Authorized Denominations, with transfers of ownership being
effected on the records of DTC and its participants pursuant to rules and regulations established
by them, and that the Bonds initially deposited with DTC shall be immobilized and not be further
exchanged for substitute Bonds except as hereinafter provided. The City is not responsible or
liable for any functions of DTC, will not be responsible for paying any fees or charges with
respect to its services, will not be responsible or liable for maintaining, supervising, or reviewing
the records of DTC or its participants, or protecting any interests or rights of the beneficial
owners of the Bonds. It shall be the duty of the DTC Participants, as defined in the Official
Statement herein approved, to make all arrangements with DTC to establish this book-entry
system, the beneficial ownership of the Bonds, and the method of paying the fees and charges of
DTC. The City does not represent, nor does it in any way covenant that the initial book-entry
system established with DTC will be maintained in the future. Notwithstanding the initial
establishment of the foregoing book-entry system with DTC, if for any reason any of the
originally delivered Bonds is duly filed with the Paying Agent/Registrar with proper request for
transfer and substitution, as provided for in this Ordinance, substitute Bonds will be duly
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delivered as provided in this Ordinance, and there will be no assurance or representation that any
book-entry system will be maintained for such Bonds. In connection with the initial
establishment of the foregoing book-entry system with DTC, the City heretofore has executed a
"Blanket Letter of Representations" prepared by DTC in order to implement the book-entry
system described above.
Section 16. CONTINUING DISCLOSURE OBLIGATION PURSUANT TO RULE
15C2-12 (17 C.F.R. § 240.15C2-12).
(a) Annual Reports.
(i) The City will provide certain updated financial information and operating
data to the MSRB on an annual basis in an electronic format that is prescribed by the
MSRB and available via the Electronic Municipal Market Access System ("EMMA") at
www.emma.msrb.org. The information to be updated includes all quantitative financial
information and operating data with respect to the City of the general type included in the
Official Statement under Tables numbered 1 through 6; 8 through 20 and in Appendix B.
The City will update and provide the information in Tables 1 through 6 and 8 through 20
within six months after the end of each fiscal year ending in and after 2017. The City will
additionally provide audited financial statements when and if available, and in any event,
within 12 months after the end of each fiscal year ending in or after 2017. If the audit of
such financial statements is not complete within 12 months after any such fiscal year end,
then the City will file unaudited financial statements within such 12 month period and
audited financial statements for the applicable fiscal year, when and if the audit report on
such statements becomes available. Any such financial statements will be prepared in
accordance with the accounting principles described in Appendix B of the Official
Statement or such other accounting principles as the City may be required to employ
from time to time pursuant to State law or regulation.
(ii) The financial information and operating data to be provided may be set
forth in full in one or more documents or may be included by specific reference to any
document available to the public on the MSRB’s Internet Web site or filed with the SEC,
as permitted by the Rule. If the City changes its fiscal year, it will notify the MSRB of
the change (and of the date of the new fiscal year end) prior to the next date by which the
City otherwise would be required to provide financial information and operating data
pursuant to this Section. The financial information and operating data to be provided
pursuant to this Section may be set forth in full in one or more documents or may be
included by specific reference to any document that is available to the public on the
MSRB's internet website or filed with the SEC. All documents provided to the MSRB
pursuant to this Section shall be accompanied by identifying information as prescribed by
the MSRB.
(b) Event Notices. The City shall notify the MSRB in an electronic format as
prescribed by the MSRB, in a timely manner (but not in excess of ten Business Days after the
occurrence of the event) of any of the following events with respect to the Bonds:
1. Principal and interest payment delinquencies;
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2. Non-payment related defaults, if material;
3. Unscheduled draws on debt service reserves reflecting financial
difficulties;
4. Unscheduled draws on credit enhancements reflecting financial
difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions or the issuance by the Internal Revenue Service of
proposed or final determinations of taxability, Notices of Proposed Issue
(IRS Form 5701–TEB) or other material notices or determinations with
respect to the tax status of the Bonds, or other material events affecting the
tax status of the Bonds;
7. Modifications to rights of Bondholders, if material;
8. Bond calls, if material, and tender offers;
9. Defeasances;
10. Release, substitution, or sale of property securing repayment of the Bonds,
if material;
11. Rating changes;
12. Bankruptcy, insolvency, receivership or similar event of an obligated
person (which is considered to occur when any of the following occur: the
appointment of a receiver, fiscal agent, or similar officer for the City in a
proceeding under the United States Bankruptcy Code or in any other
proceeding under state or federal law in which a court or governmental
authority has assumed jurisdiction over substantially all of the assets or
business of the City, or if such jurisdiction has been assumed by leaving
the existing governing body and officials or officers in possession but
subject to the supervision and orders of a court or governmental authority,
or the entry of an order confirming a plan of reorganization, arrangement,
or liquidation by a court or governmental authority having supervision or
jurisdiction over substantially all of the assets or business of the City);
13. The consummation of a merger, consolidation, or acquisition involving an
obligated person or the sale of all or substantially all of the assets of the
obligated person, other than in the ordinary course of business, the entry
into a definitive agreement to undertake such an action or the termination
of a definitive agreement relating to any such actions, other than pursuant
to its terms, if material;
15
14. Appointment of a successor or additional trustee or the change of name of
a trustee, if material.
The City shall notify the MSRB, in a timely manner, of any failure by the City to provide
financial information or operating data in accordance with this Section by the time required by
such subsection.
(c) Limitations, Disclaimers, and Amendments. (i) The City shall be obligated to
observe and perform the covenants specified in this Section for so long as, but only for so
long as, the City remains an "obligated person" with respect to the Bonds within the
meaning of the Rule, except that the City in any event will give notice of any deposit
made in accordance with this Ordinance or applicable law that causes Bonds no longer to
be outstanding.
(ii) The provisions of this Section are for the sole benefit of the registered
owners and beneficial owners of the Bonds, and nothing in this Section, express or
implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder
to any other person. The City undertakes to provide only the financial information,
operating data, financial statements, and notices which it has expressly agreed to provide
pursuant to this Section and does not hereby undertake to provide any other information
that may be relevant or material to a complete presentation of the City's financial results,
condition, or prospects or hereby undertake to update any information provided in
accordance with this Section or otherwise, except as expressly provided herein. The City
does not make any representation or warranty concerning such information or its
usefulness to a decision to invest in or sell Bonds at any future date.
(iii) UNDER NO CIRCUMSTANCE SHALL THE CITY BE LIABLE TO
THE REGISTERED OWNER OR BENEFICIAL OWNER OF ANY BOND OR ANY
OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN
WHOLE OR IN PART FROM ANY BREACH BY THE CITY, WHETHER
NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT
SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY
SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY
SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR
SPECIFIC PERFORMANCE.
(iv) No default by the City in observing or performing its obligations under
this Section shall comprise a breach of or default under this Ordinance for purposes of
any other provision of this Ordinance. Nothing in this Section is intended or shall act to
disclaim, waive, or otherwise limit the duties of the City under federal and state securities
laws.
(v) Should the Rule be amended to obligate the City to make filings with or
provide notices to entities other than the MSRB, the City hereby agrees to undertake such
obligation with respect to the Bonds in accordance with the Rule as amended. The
provisions of this Section may be amended by the City from time to time to adapt to
changed circumstances that arise from a change in legal requirements, a change in law, or
16
a change in the identity, nature, status, or type of operations of the City, but only if (1) the
provisions of this Section, as so amended, would have permitted an underwriter to
purchase or sell Bonds in the primary offering of the Bonds in compliance with the Rule,
taking into account any amendments or interpretations of the Rule since such offering as
well as such changed circumstances and (2) either (a) the registered owners of a majority
in aggregate principal amount (or any greater amount required by any other provision of
this Ordinance that authorizes such an amendment) of the outstanding Bonds consent to
such amendment or (b) a person that is unaffiliated with the City (such as nationally
recognized bond counsel) determined that such amendment will not materially impair the
interest of the registered owners and beneficial owners of the Bonds. If the City so
amends the provisions of this Section, it shall include with any amended financial
information or operating data next provided in accordance with subsection (b) of this
Section an explanation, in narrative form, of the reason for the amendment and of the
impact of any change in the type of financial information or operating data so provided.
The City may also amend or repeal the provisions of this continuing disclosure agreement
if the SEC amends or repeals the applicable provision of the Rule or a court of final
jurisdiction enters judgment that such provisions of the Rule are invalid, but only if and
to the extent that the provisions of this sentence would not prevent an underwriter from
lawfully purchasing or selling Bonds in the primary offering of the Bonds.
(d) Procedures to Monitor Compliance with Continuing Disclosure Covenants. The
City hereby adopts the procedures attached hereto as Exhibit B as a means of monitoring
compliance with the continuing disclosure covenants made by the City herein.
Section 17. DEFEASANCE. (a) Deemed Paid. Any Bond and the interest thereon shall
be deemed to be paid, retired and no longer outstanding (a "Defeased Bond") within the meaning
of this Ordinance, except to the extent provided in subsection (e) of this Section, when payment
of the principal of such Bond, plus interest thereon to the due date (whether such due date be by
reason of maturity or otherwise) either (i) shall have been made or caused to be made in
accordance with the terms thereof, or (ii) shall have been provided for on or before such due date
by irrevocably depositing with or making available to the Paying Agent/Registrar in accordance
with an escrow agreement or other instrument (the "Future Escrow Agreement") for such
payment (1) lawful money of the United States of America sufficient to make such payment or
(2) Defeasance Securities that mature as to principal and interest in such amounts and at such
times as will insure the availability, without reinvestment, of sufficient money to provide for
such payment, and when proper arrangements have been made by the City with the Paying
Agent/Registrar for the payment of its services until all Defeased Bonds shall have become due
and payable. At such time as a Bond shall be deemed to be a Defeased Bond hereunder, as
aforesaid, such Bond and the interest thereon shall no longer be secured by, payable from, or
entitled to the benefits of, the ad valorem taxes herein levied and pledged as provided in this
Ordinance, and such principal and interest shall be payable solely from such money or
Defeasance Securities.
(b) Investments. Any moneys so deposited with the Paying Agent/Registrar may at
the written direction of the City be invested in Defeasance Securities, maturing in the amounts
and times as hereinbefore set forth, and all income from such Defeasance Securities received by
the Paying Agent/Registrar that is not required for the payment of the Bonds and interest thereon,
17
with respect to which such money has been so deposited, shall be turned over to the City, or
deposited as directed in writing by the City. Any Future Escrow Agreement pursuant to which
the money and/or Defeasance Securities are held for the payment of Defeased Bonds may
contain provisions permitting the investment or reinvestment of such moneys in Defeasance
Securities or the substitution of other Defeasance Securities upon the satisfaction of the
requirements specified in subsection (a)(i) or (ii) above. All income from such Defeasance
Securities received by the Paying Agent/Registrar which is not required for the payment of the
Defeased Securities, with respect to which such money has been so deposited, shall be remitted
to the City or deposited as directed in writing by the City.
(c) Selection of Defeased Bonds. In the event that the City elects to defease less than
all of the principal amount of Bonds of a maturity, the Paying Agent/Registrar shall select, or
cause to be selected, such amount of Bonds by such random method as it deems fair and
appropriate.
(d) Defeasance Securities. The term "Defeasance Securities" means (i) direct,
noncallable obligations of the United States of America, including obligations that are
unconditionally guaranteed by the United States of America, (ii) noncallable obligations of an
agency or instrumentality of the United States, including obligations that are unconditionally
guaranteed or insured by the agency or instrumentality and that, on the date the governing body
of the City adopts or approves the proceedings authorizing the issuance of refunding bonds, are
rated as to investment quality by a nationally recognized investment rating firm not less than
AAA or its equivalent; (iii) noncallable obligations of a state or an agency or a county,
municipality, or other political subdivision of a state that have been refunded and that, on the
date the governing body of the City adopts or approves the proceedings authorizing the issuance
of refunding bonds, are rated as to investment quality by a nationally recognized investment
rating firm not less than AAA or its equivalent and (iv) any securities and obligations now or
hereafter authorized by State law that are eligible to refund, retire or otherwise discharge
obligations such as the Bonds.
(e) Continuing Duty of Paying Agent/Registrar. Until all Bonds defeased under this
Section of this Ordinance shall become due and payable, the Paying Agent/Registrar for such
Bonds shall perform the services of Paying Agent/Registrar for such Bonds the same as if they
had not been defeased, and the City shall make proper arrangements to provide and pay for such
services.
(f) The Pricing Officer is hereby authorized to modify the securities that are eligible
as Defeasance Securities and any such modification shall described in the Pricing Certificate.
Section 18. SALE OF BONDS; OFFICIAL STATEMENT. (a) The Bonds may be sold
by public offering (either through a negotiated or competitive offering) and the terms and
provisions of which are to be determined by the Pricing Officer in accordance with Section 2
hereof, and in which the purchasers of the Bonds are designated. The Bonds may be sold
pursuant to a purchase agreement or notice of sale and bidding instructions (collectively, the
"Purchase Agreement") which the Pricing Officer is hereby authorized to execute and deliver
and in which the Purchaser of the Bonds shall be designated. The Bonds shall initially be
registered in the name of the Purchaser thereof as set forth in the Pricing Certificate.
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(b) The City hereby approves the form and content of the draft preliminary official
statement relating to the Bonds in the form attached hereto as Exhibit C and any addenda,
supplement or amendment thereto, and approves the distribution of such preliminary official
statement in the reoffering of the Bonds by the Underwriter in final form, with such changes
therein or additions thereto as the Pricing Officer executing the same may deem advisable. The
Pricing Officer is hereby authorized, in the name and on behalf of the City, to approve,
distribute, and deliver a final preliminary official statement and a final official statement relating
to the Bonds to be used by the Underwriter in the marketing of the Bonds.
(c) The Pricing Officer is authorized, in connection with effecting the sale of the
Bonds, to obtain from a municipal bond insurance company so designated in the Pricing
Certificate (the "Insurer") a municipal bond insurance policy (the "Insurance Policy") in support
of the Bonds. To that end, should the Pricing Officer exercise such authority and commit the
City to obtain a municipal bond insurance policy, for so long as the Insurance Policy is in effect,
the requirements of the Insurer relating to the issuance of the Insurance Policy are incorporated
by reference into this Ordinance and made a part hereof for all purposes, notwithstanding any
other provision of this Ordinance to the contrary. The Pricing Officer shall have the authority to
execute any documents to effect the issuance of the Insurance Policy by the Insurer.
(d) The Mayor and Mayor Pro Tem, the City Manager, the Assistant City Manager,
Director of Finance and City Secretary, shall be and they are hereby expressly authorized,
empowered and directed from time to time and at any time to do and perform all such acts and
things and to execute, acknowledge and deliver in the name and under the corporate seal and on
behalf of the City a Paying Agent/Registrar Agreement, in the form presented at the meeting at
which this Ordinance is adopted, with the Paying Agent/Registrar and all other instruments,
whether or not herein mentioned, as may be necessary or desirable in order to carry out the terms
and provisions of this Ordinance, the Bonds, the sale of the Bonds, the Purchase Agreement and
the Official Statement. In case any officer whose signature shall appear on any Bond shall cease
to be such officer before the delivery of such Bond, such signature shall nevertheless be valid
and sufficient for all purposes the same as if such officer had remained in office until such
delivery.
Section 19. FURTHER PROCEDURES. That the Mayor, the City Secretary, the City
Manager, the Assistant City Manager, and Director of Finance, shall be and they are hereby
expressly authorized, empowered, and directed from time to time and at any time to do and
perform all such acts and things and to execute, acknowledge, and deliver in the name and under
the corporate seal and on behalf of the City all such instruments, whether or not herein
mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this
Ordinance, and the sale and delivery of the Bonds and fixing all details in connection therewith.
The City Council hereby authorizes the payment of the fee of the Office of the Attorney General
of the State of Texas for the examination of the proceedings relating to the issuance of the
Bonds, in the amount determined in accordance with the provisions of Section 1202.004, Texas
Government Code.
Section 20. CONSTRUCTION FUND; USE OF PROCEEDS.
(a) The City hereby creates and establishes and shall maintain on the books of the
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City a separate fund to be entitled the "Series 2017 Bond Construction Fund" (the "Construction
Fund") for use by the City for payment of all lawful costs associated with the acquisition and
construction of the Projects.
(b) The proceeds from the sale of the Bonds shall be deposited, on the date of closing,
in the manner described in a letter of instructions prepared by the City or on behalf of the City by
the City's financial advisor. The foregoing notwithstanding, any proceeds representing accrued
interest on the Bonds shall be deposited to the credit of the Interest and Sinking Fund.
Section 21. INTEREST EARNINGS. That the interest earnings derived from the
investment of proceeds from the sale of the Bonds may be used along with other proceeds for the
construction of the permanent improvements set forth in Section 1 hereof for which the Bonds
are issued; provided that after completion of such permanent improvements, if any of such
interest earnings remain on hand, such interest earnings shall be deposited in the Interest and
Sinking Fund. It is further provided, however, that any interest earnings on proceeds which are
required to be rebated to the United States of America pursuant to this Ordinance hereof in order
to prevent the Bonds from being arbitrage bonds shall be so rebated and not considered as
interest earnings for the purposes of this Section.
Section 22. APPROVAL OF ESCROW AGREEMENT AND TRANSFER OF FUNDS.
In furtherance of authority granted by Section 1207.007(b), Texas Government Code, the Pricing
Officer is further authorized to enter into and execute on behalf of the City with the escrow agent
named therein, an escrow or similar agreement, in the form and substance as presented at the
meeting at which this Ordinance was adopted, which agreement will provide for the payment in
full of the Refunded Obligations. In addition, the Pricing Officer is authorized to purchase such
securities, to execute such subscriptions for the purchase of the Escrowed Securities, (as defined
in the agreement), if any, and to authorize such contributions to the escrow fund as provided in
the agreement.
Section 23. REDEMPTION OF REFUNDED OBLIGATIONS.
(a) The City hereby directs that certain of the Refunded Obligations be called for
redemption on the dates and as set forth in the Escrow Agreement. Each of such Refunded
Obligations shall be redeemed at the redemption price of par plus accrued interest. The paying
agents for the Refunded Obligations are hereby authorized and directed to issue or cause to be
issued the Notices of Redemption of the Refunded Obligations.
(b) In addition, the paying agent/registrars for the Refunded Obligations are hereby
directed to provide the appropriate notices of redemption and defeasance as specified by the
ordinances authorizing the issuance of the Refunded Obligations and are hereby directed to make
appropriate arrangements so that the Refunded Obligations may be redeemed on their
redemption dates. The Refunded Obligations shall be presented for redemption at the paying
agent/registrars therefore, and shall not bear interest after the date fixed for redemption.
(c) The source of funds for payment of the principal of and interest on the Refunded
Obligations on their redemption date shall be from the funds placed in escrow with the Escrow
Agent, pursuant to the Escrow Agreement approved in Section 22 of this Ordinance.
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Section 24. DEFAULT AND REMEDIES.
(a) Events of Default. Each of the following occurrences or events for the purpose of
this Ordinance is hereby declared to be an Event of Default:
(i) the failure to make payment of the principal of or interest on any of the
Bonds when the same becomes due and payable; or
(ii) default in the performance or observance of any other covenant,
agreement or obligation of the City, the failure to perform which materially, adversely
affects the rights of the registered owners of the Bonds, including, but not limited to, their
prospect or ability to be repaid in accordance with this Ordinance, and the continuation
thereof for a period of 60 days after notice of such default is given by any registered
owner to the City.
(b) Remedies for Default.
(i) Upon the happening of any Event of Default, then and in every case, any
registered owner or an authorized representative thereof, including, but not limited to, a
trustee or trustees therefor, may proceed against the City, or any official, officer or
employee of the City in their official capacity, for the purpose of protecting and enforcing
the rights of the registered owners under this Ordinance, by mandamus or other suit,
action or special proceeding in equity or at law, in any court of competent jurisdiction,
for any relief permitted by law, including the specific performance of any covenant or
agreement contained herein, or thereby to enjoin any act or thing that may be unlawful or
in violation of any right of the registered owners hereunder or any combination of such
remedies.
(ii) It is provided that all such proceedings shall be instituted and maintained
for the equal benefit of all registered owners of Bonds then outstanding.
(c) Remedies Not Exclusive.
(i) No remedy herein conferred or reserved is intended to be exclusive of any
other available remedy or remedies, but each and every such remedy shall be cumulative
and shall be in addition to every other remedy given hereunder or under the Bonds or
now or hereafter existing at law or in equity; provided, however, that notwithstanding any
other provision of this Ordinance, the right to accelerate the debt evidenced by the Bonds
shall not be available as a remedy under this Ordinance.
(ii) The exercise of any remedy herein conferred or reserved shall not be
deemed a waiver of any other available remedy.
(iii) By accepting the delivery of a Bond authorized under this Ordinance, such
registered owner agrees that the certifications required to effectuate any covenants or
representations contained in this Ordinance do not and shall never constitute or give rise
to a personal or pecuniary liability or charge against the officers, employees or members
of the City or the City Council.
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(iv) None of the members of the City Council, nor any other official or officer,
agent, or employee of the City, shall be charged personally by the registered owners with
any liability, or be held personally liable to the registered owners under any term or
provision of this Ordinance, or because of any Event of Default or alleged Event of
Default under this Ordinance.
Section 25. MISCELLANEOUS PROVISIONS. (a) Preamble. The preamble to this
Ordinance is incorporated by reference and made a part hereof for all purposes.
(b) Titles Not Restrictive. That the titles assigned to the various sections of this
Ordinance are for convenience only and shall not be considered restrictive of the subject matter
of any section or of any part of this Ordinance.
(c) Rules of Construction. The words "herein", "hereof" and "hereunder" and other
words of similar import refer to this Ordinance as a whole and not to any particular Section or
other subdivision. Except where the context otherwise requires, terms defined in this Ordinance
to impart the singular number shall be considered to include the plural number and vice versa.
References to any named person means that party and its successors and assigns. References to
any constitutional, statutory or regulatory provision means such provision as it exists on the date
this Ordinance is adopted by the City and any future amendments thereto or successor provisions
thereof. Any reference to "FORM OF BOND" shall refer to the form of the Bonds set forth in
Exhibit A to this Ordinance. Any reference to the payment of principal in this Ordinance shall
be deemed to include the payment of any mandatory sinking fund redemption payments as may
be described herein.
(d) Inconsistent Provisions. All ordinances, orders and resolutions, or parts thereof,
which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed
and declared to be inapplicable, and the provisions of this Ordinance shall be and remain
controlling as to the matters prescribed herein.
(e) Severability. If any word, phrase, clause, paragraph, sentence, part, portion, or
provision of this Ordinance or the application thereof to any person or circumstance shall be held
to be invalid, the remainder of this Ordinance shall nevertheless be valid and the City hereby
declares that this Ordinance would have been enacted without such invalid word, phrase, clause,
paragraph, sentence, part, portion, or provisions.
(f) Governing Law. This Ordinance shall be construed and enforced in accordance
with the laws of the State of Texas.
(g) Open Meeting. The City officially finds and determines that the meeting at which
this Ordinance is adopted was open to the public; and that public notice of the time, place, and
purpose of such meeting was given, all as required by Chapter 551, Texas Government Code.
(h) Application of Chapter 1208, Government Code. Chapter 1208, Texas
Government Code, applies to the issuance of the Bonds and the pledge of ad valorem taxes
granted by the City under Section 6, and such pledge is therefore valid, effective, and perfected.
If Texas law is amended at any time while the Bonds are outstanding and unpaid such that the
pledge of the ad valorem taxes granted by the City is to be subject to the filing requirements of
22
Chapter 9, Texas Business & Commerce Code, then in order to preserve to the Registered
Owners of the Bonds the perfection of the security interest in said pledge, the City agrees to take
such measures as it determines are reasonable and necessary under Texas law to comply with the
applicable provisions of Chapter 9, Texas Business & Commerce Code and enable a filing to
perfect the security interest in said pledge to occur.
(i) Immediate Effect. In accordance with the provisions of Section 1201.028, Texas
Government Code, this Ordinance shall be effective immediately upon its adoption by the City
Council.
[Remainder of page intentionally left blank.]
Ordinance
City of College Station, Texas
General Obligation Improvement and Refunding Bonds, Series 2017
SIGNATURE PAGE
PASSED, APPROVED AND EFFECTIVE THIS MAY 11, 2017.
City Secretary; City of College Station Mayor; City of College Station
(CITY SEAL)
APPROVED:
McCall, Parkhurst & Horton L.L.P., Dallas, Texas
Bond Counsel
Schedule I-1
SCHEDULE I
REFUNDED OBLIGATIONS
City of College Station, Texas General Obligation Improvement Bonds, Series 2009
Principal Maturity
Date Coupon CUSIP Redemption
Date
Redemption
Price
$155,000.00 02/15/2018 3.500% 194468W91 Maturity -
$155,000.00 02/15/2019 3.700% 194468X25 Maturity -
$160,000.00 02/15/2020 3.900% 194468X33 02/15/2019 100.00
$175,000.00 02/15/2021 4.000% 194468X41 02/15/2019 100.00
$180,000.00 02/15/2022 4.050% 194468X66 02/15/2019 100.00
$195,000.00 02/15/2023 4.050% 194468X66 02/15/2019 100.00
$200,000.00 02/15/2024 4.300% 194468X82 02/15/2019 100.00
$210,000.00 02/15/2025 4.300% 194468X82 02/15/2019 100.00
$220,000.00 02/15/2026 4.500% 194468Y24 02/15/2019 100.00
$225,000.00 02/15/2027 4.500% 194468Y24 02/15/2019 100.00
$250,000.00 02/15/2028 4.650% 194468Y40 02/15/2019 100.00
$260,000.00 02/15/2029 4.650% 194468Y40 02/15/2019 100.00
City of College Station, Texas Certificates of Obligation, Series 2009
Principal Maturity
Date Coupon CUSIP Redemption
Date
Redemption
Price
$1,105,000.00 02/15/2018 3.500% 1944686E9 Maturity -
$1,165,000.00 02/15/2019 3.750% 1944686F6 Maturity -
$1,220,000.00 02/15/2020 4.000% 1944686G4 02/15/2019 100.00
$1,285,000.00 02/15/2021 4.000% 1944686H2 02/15/2019 100.00
$1,345,000.00 02/15/2022 4.000% 1944686J8 02/15/2019 100.00
$1,415,000.00 02/15/2023 4.125% 1944686K5 02/15/2019 100.00
$1,485,000.00 02/15/2024 4.250% 1944686L3 02/15/2019 100.00
$1,570,000.00 02/15/2025 5.000% 1944686M1 02/15/2019 100.00
$1,645,000.00 02/15/2026 4.500% 1944686N9 02/15/2019 100.00
$1,730,000.00 02/15/2027 4.500% 1944686P4 02/15/2019 100.00
$1,815,000.00 02/15/2028 4.500% 1944686Q2 02/15/2019 100.00
$1,915,000.00 02/15/2029 4.600% 1944686R0 02/15/2019 100.00
A-1
EXHIBIT A
FORM OF BOND
The form of the Bonds, including the form of Paying Agent/Registrar's Authentication
Certificate, the form of Assignment and the form of Registration Certificate of the Comptroller
of Public Accounts of the State of Texas to be attached only to the Bonds initially issued and
delivered pursuant to this Ordinance, shall be, respectively, substantially as follows, with such
appropriate variations, omissions, or insertions as are permitted or required by this Ordinance
and with the Bonds to be completed with information set forth in the Pricing Certificate. The
Form of Bond as it appears in this Exhibit A shall be completed, amended and modified by Bond
Counsel to incorporate the information set forth in the Pricing Certificate but it is not required for
the Form of Bond to reproduced as an exhibit to the Pricing Certificate.
NO. _____
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF BRAZOS
CITY OF COLLEGE STATION, TEXAS
GENERAL OBLIGATION IMPROVEMENT AND
REFUNDING BOND, SERIES 2017
Principal
Amount $[]
MATURITY DATE INTEREST RATE DELIVERY DATE CUSIP NO.
% [], 2017
REGISTERED OWNER:
PRINCIPAL AMOUNT:
ON THE MATURITY DATE SPECIFIED ABOVE, THE CITY OF COLLEGE
STATION, TEXAS, in Brazos County (the "City"), being a political subdivision of the State of
Texas, hereby promises to pay to the Registered Owner specified above or to the registered
assignee hereof (either being hereinafter called the "registered owner") the Principal Amount
specified above, and to pay interest thereon (calculated on the basis of a 360-day year of twelve
30-day months), from the Delivery Date specified above, to the Maturity Date specified above,
or the date of its redemption prior to scheduled maturity, at the interest rate per annum specified
above, with said interest payable on February 15, 2018, and semiannually on each August 15 and
February 15 thereafter until maturity or prior redemption; except that if this Bond is required to
be authenticated and the date of its authentication is later than February 15, 2018, such interest is
payable semiannually on each August 15 and February 15 following such date.
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THE PRINCIPAL OF AND INTEREST ON this Bond are payable in lawful money of
the United States of America, without exchange or collection charges. At maturity or
redemption prior to maturity, the principal of this Bond shall be paid to the registered owner
hereof upon presentation and surrender of this Bond at the designated corporate trust office in
Dallas, Texas (the "Designated Trust Office") of The Bank of New York Mellon Trust Company,
N.A., which is the "Paying Agent/Registrar" for this Bond. The payment of interest on this Bond
shall be made by the Paying Agent/Registrar to the registered owner hereof on each interest
payment date by check, dated as of such interest payment date, drawn by the Paying
Agent/Registrar on, and payable solely from, funds of the City required by the ordinance
authorizing the issuance of this Bond (the "Bond Ordinance") to be on deposit with the Paying
Agent/Registrar for such purpose as hereinafter provided; and such check shall be sent by the
Paying Agent/Registrar by United States mail, first-class postage prepaid, on each such interest
payment date, to the registered owner hereof, at its address as it appeared on the last business day
of the month preceding each such date (the "Record Date") on the Registration Books kept by
the Paying Agent/Registrar, as hereinafter described. Any accrued interest due at maturity as
provided herein shall be paid to the registered owner upon presentation and surrender of this
Bond for payment at the Designated Trust Office of the Paying Agent/Registrar. The City
covenants with the registered owner of this Bond that on or before each principal and interest
payment date for this Bond it will make available to the Paying Agent/Registrar, from the
"Interest and Sinking Fund" created by the Bond Ordinance, the amounts required to provide for
the payment, in immediately available funds, of all principal of and interest on the Bonds, when
due.
IN THE EVENT OF NON-PAYMENT of interest on a scheduled payment date, and for
30 days thereafter, a new record date for such interest payment (a "Special Record Date") will be
established by the Paying Agent/Registrar, if and when funds for the payment of such interest
have been received from the City. Notice of the Special Record Date and of the scheduled
payment date of the past due interest ("Special Payment Date", which shall be 15 days after the
Special Record Date) shall be sent at least five business days prior to the Special Record Date by
United States mail, first-class postage prepaid, to the address of each registered owner of a Bond
appearing on the Registration Books kept by the Paying Agent/Registrar at the close of business
on the last business day next preceding the date of mailing of such notice.
IF THE DATE for the payment of the principal of or interest on this Bond shall be a
Saturday, Sunday, a legal holiday, or a day on which banking institutions in the city where the
Designated Trust Office of the Paying Agent/Registrar is located are authorized by law or
executive order to close, then the date for such payment shall be the next succeeding day which
is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are
authorized to close; and payment on such date shall have the same force and effect as if made on
the original date payment was due.
THIS BOND is one of a Series of Bonds dated as of July 1, 2017, authorized in
accordance with the Constitution and laws of the State of Texas in the principal amount of $[],
for the purpose of for the public purpose of (i) refunding the Refunded Obligations; (ii) pay for
the costs of constructing and improving streets and roads including related drainage, landscaping,
lighting, related thereto; (iii) pay for the costs of expanding, constructing and improving City
library facilities; (iv) paying the fiscal, engineering and legal fees incurred in connection with
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such projects; and (v) paying the costs incurred in connection with the issuance of the Bonds
(collectively, the "Projects").
ON FEBRUARY 15, 2027, or on any date thereafter, the Bonds of this Series maturing
on February 15, 2028 and thereafter may be redeemed prior to their scheduled maturities, at the
option of the City, in whole, or in part, at par and accrued interest to the date fixed for
redemption. The years of maturity of the Bonds called for redemption at the option of the City
prior to their stated maturity shall be selected by the City. The Bonds or portions thereof
redeemed within a maturity shall be selected by lot or other method by the Paying
Agent/Registrar; provided, that during any period in which ownership of the Bonds is determined
only by a book entry at a securities depository for the Bonds, if fewer than all of the Bonds of the
same maturity and bearing the same interest rate are to be redeemed, the particular Bonds of such
maturity and bearing such interest rate shall be selected in accordance with the arrangements
between the City and the securities depository.
THE BONDS SCHEDULED TO MATURE on February 15, 20[]36 (the "Term Bonds")
are subject to scheduled mandatory redemption by the Paying Agent/Registrar by lot, or by any
other customary method that results in a random selection, at a price equal to the principal
amount thereof, plus accrued interest to the redemption date, out of moneys available for such
purpose in the interest and sinking fund for the Bonds, on each February 15 of the years and in
the respective principal amounts, set forth in the following schedule:
Term Bonds due February 15, 20[]:
Mandatory Redemption Date: 2/15/20[] Principal Amount: $[],000.00
Mandatory Redemption Date: 2/15/20[]* Principal Amount: $[],000.00
* Maturity
THE PRINCIPAL AMOUNT OF TERM BONDS of a stated maturity required to be
redeemed on any mandatory redemption date pursuant to the operation of the mandatory sinking
fund redemption provisions shall be reduced, at the option of the Issuer, by the principal amount
of any Term Bonds of the same maturity which, at least 50 days prior to a mandatory redemption
date (1) shall have been acquired by the Issuer at a price not exceeding the principal amount of
such Term Bonds plus accrued interest to the date of purchase thereof, and delivered to the
Paying Agent/Registrar for cancellation, (2) shall have been purchased and canceled by the
Paying Agent/Registrar at the request of the Issuer at a price not exceeding the principal amount
of such Term Bonds plus accrued interest to the date of purchase, or (3) shall have been
redeemed pursuant to the optional redemption provisions and not theretofore credited against a
mandatory redemption requirement.
AT LEAST THIRTY days prior to the date fixed for any such redemption, a written
notice of such redemption shall be given to the registered owner of each Bond or a portion
thereof being called for redemption by depositing such notice in the United States mail, first-
class postage prepaid, addressed to each such registered owner at his address shown on the
Registration Books of the Paying Agent/Registrar. By the date fixed for any such redemption
due provision shall be made by the City with the Paying Agent/Registrar for the payment of the
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required redemption price for this Bond or the portion hereof which is to be so redeemed, plus
accrued interest thereon to the date fixed for redemption. If such notice of redemption is given,
and if due provision for such payment is made, all as provided above, this Bond, or the portion
hereof which is to be so redeemed, thereby automatically shall be redeemed prior to its scheduled
maturity, and shall not bear interest after the date fixed for its redemption, and shall not be
regarded as being outstanding except for the right of the registered owner to receive the
redemption price plus accrued interest to the date fixed for redemption from the Paying
Agent/Registrar out of the funds provided for such payment. The Paying Agent/Registrar shall
record in the Registration Books all such redemptions of principal of this Bond or any portion
hereof. If a portion of any Bond shall be redeemed a substitute Bond or Bonds having the same
maturity date, bearing interest at the same rate, in Authorized Denominations, at the written
request of the registered owner, and in aggregate principal amount equal to the unredeemed
portion thereof, will be issued to the registered owner upon the surrender thereof for cancellation,
at the expense of the City, all as provided in the Ordinance.
IF AT THE TIME OF MAILING of notice of optional redemption there shall not have
either been deposited with the Paying Agent/Registrar or legally authorized escrow agent
immediately available funds sufficient to redeem all the Bonds called for redemption, such notice
must state that it is conditional, and is subject to the deposit of the redemption moneys with the
Paying Agent/Registrar or legally authorized escrow agent at or prior to the redemption date, and
such notice shall be of no effect unless such moneys are so deposited on or prior to the
redemption date. If such redemption is not effectuated, the Paying Agent/Registrar shall, within
five days thereafter, give notice in the manner in which the notice of redemption was given that
such moneys were not so received and shall rescind the redemption.
ALL BONDS OF THIS SERIES are issuable solely as fully registered Bonds, without
interest coupons, in Authorized Denominations. As provided in the Bond Ordinance, this Bond
may, at the request of the registered owner or the assignee or assignees hereof, be assigned,
transferred, and exchanged for a like aggregate principal amount of fully registered Bonds,
without interest coupons, payable to the appropriate registered owner, assignee, or assignees, as
the case may be, having the same maturity date, and bearing interest at the same rate, in
Authorized Denominations as requested in writing by the appropriate registered owner, assignee,
or assignees, as the case may be, upon surrender of this Bond to the Paying Agent/Registrar at its
Designated Trust Office for cancellation, all in accordance with the form and procedures set
forth in the Bond Ordinance. Among other requirements for such assignment and transfer, this
Bond must be presented and surrendered to the Paying Agent/Registrar at its Designated Trust
Office, together with proper instruments of assignment, in form and with guarantee of signatures
satisfactory to the Paying Agent/Registrar, evidencing assignment of this Bond or any portion or
portions hereof in an Authorized Denomination to the assignee or assignees in whose name or
names this Bond or any such portion or portions hereof is or are to be transferred and registered.
The form of Assignment printed or endorsed on this Bond may be executed by the registered
owner to evidence the assignment hereof, but such method is not exclusive, and other
instruments of assignment satisfactory to the Paying Agent/Registrar may be used to evidence
the assignment of this Bond or any portion or portions hereof from time to time by the registered
owner. The foregoing notwithstanding, in the case of the exchange of an assigned and
transferred Bond or Bonds or any portion or portions thereof, such fees and charges of the
Paying Agent/Registrar will be paid by the City. The one requesting such exchange shall pay the
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Paying Agent/Registrar's reasonable standard or customary fees and charges for exchanging any
Bond or portion thereof. In any circumstance, any taxes or governmental charges required to be
paid with respect thereto shall be paid by the one requesting such assignment, transfer, or
exchange as a condition precedent to the exercise of such privilege. In any circumstance, neither
the City nor the Paying Agent/Registrar shall be required (1) to make any transfer or exchange
during a period beginning at the opening of business 30 days before the day of the first mailing
of a notice of redemption of Bonds and ending at the close of business on the day of such
mailing, or (2) to transfer or exchange any Bonds so selected for redemption when such
redemption is scheduled to occur within 45 calendar days.
WHENEVER the beneficial ownership of this Bond is determined by a book entry at a
securities depository for the Bonds, the foregoing requirements of holding, delivering or
transferring this Bond shall be modified to require the appropriate person or entity to meet the
requirements of the securities depository as to registering or transferring the book entry to
produce the same effect.
IN THE EVENT any Paying Agent/Registrar for the Bonds is changed by the City,
resigns, or otherwise ceases to act as such, the City has covenanted in the Bond Ordinance that it
promptly will appoint a competent and legally qualified substitute therefor, and promptly will
cause written notice thereof to be mailed to the registered owners of the Bonds.
IT IS HEREBY certified, recited and covenanted that this Bond has been duly and validly
authorized, issued, and delivered; that all acts, conditions, and things required or proper to be
performed, exist, and be done precedent to or in the authorization, issuance, and delivery of this
Bond have been performed, existed, and been done in accordance with law; that this Bond is a
direct obligation of said City, issued on the full faith and credit thereof; and that in accordance
with the terms of the Bond Ordinance, annual ad valorem taxes sufficient to provide for the
payment of the interest on and principal of this Bond, as such interest comes due and such
principal matures, have been levied and ordered to be levied against all taxable property in said
City, and have been pledged for such payment, within the limit prescribed by law.
BY BECOMING the registered owner of this Bond, the registered owner thereby
acknowledges all of the terms and provisions of the Bond Ordinance, agrees to be bound by such
terms and provisions, acknowledges that the Bond Ordinance is duly recorded and available for
inspection in the official minutes and records of the City, and agrees that the terms and
provisions of this Bond and the Bond Ordinance constitute a contract between each registered
owner hereof and the City.
IN WITNESS WHEREOF, this Bond has been signed with the manual or facsimile
signature of the Mayor of the City, attested by the manual or facsimile signature of the City
Secretary, and the official seal of the City has been duly affixed to, or impressed, or placed in
facsimile, on this Bond.
xxxxx xxxxx
City Secretary; City of College Station Mayor; City of College Station
A-6
(SEAL)
FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
It is hereby certified that this Bond has been issued under the provisions of the
proceedings adopted by the City as described in the text of this Bond; and that this Bond has
been issued in exchange for or replacement of a Bond of an issue which originally was approved
by the Attorney General of the State of Texas and registered by the Comptroller of Public
Accounts of the State of Texas.
Dated: _______________ The Bank of New York Mellon
Trust Company, N.A.
Paying Agent/Registrar
By:
Authorized Representative
[FORM OF COMPTROLLER'S CERTIFICATE ATTACHED TO
THE BOND (BOND NO. T-1) UPON INITIAL DELIVERY THEREOF]
COMPTROLLER'S CERTIFICATE
OFFICE OF COMPTROLLER §
REGISTER NO. ________
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 laws of
the State of Texas, and that it is a valid and binding obligation of the City of College Station,
Texas, payable in the manner provided 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 this ___________________.
__________________________________________
Comptroller of Public Accounts of
the State of Texas
(SEAL)
A-7
FORM OF ASSIGNMENT
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto:
Please insert Social Security or Taxpayer Identification Number of Transferee
Please print or type name and address, including zip code of Transferee
the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints:
____________________________________, attorney, to register the transfer of the within Bond
on the books kept for registration thereof, with full power of substitution in the premises.
Dated: __________________.
Signature Guaranteed:
NOTICE: Signature(s) must be guaranteed
by an eligible guarantor institution
participating in a securities transfer
association recognized signature guarantee
program.
NOTICE: The signature above must
correspond with the name of the registered
owner as it appears upon the front of this
Bond in every particular, without alteration
or enlargement or any change whatsoever.
INSERTIONS FOR THE INITIAL BOND. The initial Bond shall be in the form set
forth in paragraph (a) of this Form of Bond, except that:
i. immediately under the name of the Bond, the headings "INTEREST
RATE" and "MATURITY DATE" shall both be completed with the words
"As shown below" and "CUSIP NO. _____" shall be deleted.
ii. the first paragraph shall be deleted and the following will be inserted:
THE CITY OF COLLEGE STATION, TEXAS, in Brazos County, Texas (the "City"),
being a political subdivision of the State of Texas, hereby promises to pay to the Registered
Owner specified above or to the registered assignee hereof (either being hereinafter called the
"registered owner") on the Maturity Dates, in the Principal Amounts and bearing interest at the
per annum Interest Rates set forth in the following schedule:
A-8
Maturity
Date
Principal
Amount
Interest
Rate
The City promises to pay interest on the unpaid principal amount hereof (calculated on
the basis of a 360-day year of twelve 30-day months) from the Delivery Date above at the
respective Interest Rate per annum specified above. Interest is payable on February 15, 2018 and
on each August 15 and February 15 thereafter to the date of payment of the Principal Amounts
specified above, or the date of redemption prior to maturity; except, that if this Bond is required
to be authenticated and the date of its authentication is later than the first Record Date
(hereinafter defined), such principal amount shall bear interest from the interest payment date
next preceding the date of authentication, unless such date of authentication is after any Record
Date but on or before the next following interest payment date, in which case such principal
amount shall bear interest from such next following interest payment date; provided, however,
that if on the date of authentication hereof the interest on the Bond or Bonds, if any, for which
this Bond is being exchanged is due but has not been paid, then this Bond shall bear interest from
the date to which such interest has been paid in full."
iii. The initial Bond shall be numbered "T-1."
B-1
EXHIBIT B
. PROCEDURES REGARDING COMPLIANCE WITH FEDERAL TAX AND
CONTINUING DISCLOSURE COVENANTS
This Exhibit is intended to assist the City of College Station (the "City") in complying
with the federal income tax covenants and securities disclosure covenants as they apply to the
issuance of tax-exempt debt securities such as the General Obligation Improvement and
Refunding Bonds (the "Obligations"). These procedures should be read together with any
federal tax certifications, bond covenants, letters or memoranda from bond counsel and any
attachments thereto (collectively, the "Closing Documents"). Failure to comply with federal
guidelines could have serious consequences for investors, the City and its officials.
These procedures shall apply to the Obligations, until they are superseded by a
change in circumstances at which time the City's bond counsel will propose new procedures to
be adopted.
I. FEDERAL TAX LAW
1. Arbitrage Compliance.
Arbitrage refers to the difference between the interest paid on tax-exempt Obligations and
the interest earned by investing the proceeds of tax-exempt Obligations in higher-yielding
investments. Such higher-yielding investments could take the form of loans, securities, real
property, personal property, or other investments that could yield a profit to the City. Federal
income tax laws generally restrict the ability to earn arbitrage utilizing the proceeds of tax-
exempt Obligations. Generally, any profit from investing Obligation proceeds at a yield above
the yield paid on the Obligations belongs to the federal government and must be rebated to the
federal government. If the City fails to comply federal tax guidelines, Obligations could be
deemed to be “arbitrage bonds” by the Internal Revenue Service (the “IRS”), which would
expose the City to monetary liability from the City’s investors.
The arbitrage yield on the Obligations is set forth on the IRS Form 8038-G.
The Assistant City Manager and the City Treasurer (including such other employees of
the City who report to such officers) (collectively, the "Responsible Person") will review the
Closing Documents periodically (at least once a year) to ascertain if an exception to arbitrage
compliance applies.
a. Procedures applicable to the Obligation. The Responsible Person shall undertake
the following procedures.
B-2
i. If the City plans to spend funds currently on hand for a future project with
the intent to later repay such funds from a debt issue, the Responsible
Person shall contact Bond Counsel to obtain advice regarding a
reimbursement resolution. The Responsible Person shall maintain any
official action of the City (such as a reimbursement resolution) stating the
City's intent to reimburse with the proceeds of the Obligations any amount
expended prior to the Issue Date for the acquisition, renovation or
construction of the Project.
ii. The Responsible Person shall ensure that the applicable information return
(e.g., U.S. Internal Revenue Service ("IRS") Form 8038-G, 8038-GC, or
any successor forms) is timely filed with the IRS.
iii. If proceeds of the Obligations are to be invested in interest-earning
investments, assure that, unless excepted from rebate and yield restriction
under section 148(f) of the Code, excess investment earnings are
computed and paid to the U.S. government at such time and in such
manner as directed by the IRS (i) at least every 5 years after the Issue Date
and (ii) within 30 days after the date the Obligations are retired. If
proceeds of the Obligations are to be invested in interest-earning
investments, the Responsible Person should contact the City's arbitrage
consultant regarding such matters.
iv. The Responsible Person shall monitor all amounts deposited into a sinking
fund or funds pledged (directly or indirectly) to the payment of the
Obligations, such as the Interest and Sinking Fund (the "I&S Fund"), to
assure that the maximum amount invested within such applicable fund at a
yield higher than the yield on the Obligations does not exceed an amount
equal to the debt service on the Obligations in the succeeding 12 month
period plus a carryover amount equal to one-twelfth of the principal and
interest payable on the Obligations for the immediately preceding 12-
month period.
NOTE: the purpose of the I&S Fund is to achieve a proper
matching of revenues with principal and interest payments within
each fiscal year. The I&S Fund should be used a mechanism for
payment of current debt service and not as a long-term investment
fund for debt service many years in the future.
v. The Responsible Person shall ensure that no more than 50% of the
proceeds of the Obligations are invested in an investment with a
guaranteed yield for 4 years or more.
b. With respect to the investment and expenditure of the proceeds of the Obligations
that are issued to finance public improvements or to acquire land or personal
property, the Responsible Person shall undertake the following.
B-3
i. The Responsible Person shall instruct the persons who are primarily
responsible for the construction, renovation or acquisition of the facilities
financed with Obligations (the “Project”) that the Project must (i) proceed
with due diligence toward completion and that (ii) binding contracts for
the expenditure of at least 5% of the proceeds of the Obligations will be
entered into within six (6) months of the date of closing of the Obligations
(the “Issue Date”). The Responsible Person shall monitor that the above
requirements are satisfied.
ii. The Responsible Person shall monitor that at least 85% of the proceeds of
the Obligations to be used for the construction, renovation or acquisition
of the Project are expended within three years of the Issue Date.
iii. The Responsible Person shall monitor investment of proceeds of the
Obligations and restrict the yield of the investments to the yield on the
Obligations after three years of the Issue Date.
iv. To the extent that there are any unspent proceeds of the Obligations at the
time the Obligations are later refunded, or if there are unspent proceeds of
the Obligations that are being refunded by a new issuance of Obligations,
the Responsible Person shall continue monitoring the expenditure of such
unspent proceeds to ensure compliance with federal tax law with respect
to both the refunded Obligations and any Obligations being issued for
refunding purposes, and shall contact Bond Counsel as necessary.
c. Procedures applicable to Escrow Accounts for the Obligations. In addition to the
foregoing, with respect to the proceeds of the Obligations deposited to the escrow
fund to be administered pursuant to the terms of an escrow agreement, the
Responsible Person shall undertake the following.
i. The Responsible Person shall review invoices, reports and other
notifications from the escrow agent to ensure compliance with the
applicable provisions of the escrow agreement, including with respect to
reinvestment of cash balances.
ii. The Responsible Person shall contact the escrow agent on the date of
redemption of obligations being refunded to ensure that they were
redeemed.
iii. The Responsible Person shall monitor any unspent proceeds of the
refunded obligations to ensure that the yield on any investments applicable
to such proceeds are invested at the yield on the applicable obligations or
otherwise applied (see Closing Documents).
B-4
B. Private Business Use.
Generally, the proceeds of tax-exempt Obligations may not inure to the benefit of entities
other than state or local governments (“private business use”). Private business use occurs
whenever Obligation proceeds are used to benefit any entity other than a state or local
government, including nonprofit corporations and the federal government.
A series of Obligations may lose their tax-exempt status if: (i) more than 10% of the
proceeds of the Obligations are to be used for any private business use and the payment of the
principal or interest on more than 10% of the proceeds of the Obligations is secured by or
payable from property used for a private business use, or (ii) the amount of proceeds of the
Obligations used to make loans to borrowers other than state and local governments exceeds the
lesser of 5% of the proceeds or $15 million.
With respect to the use of the facilities financed or refinanced with the proceeds of the
Obligations, the Responsible Person shall undertake the following to ensure the Obligations do
not violate private business use tests.
a. The Responsible Person shall develop procedures or a “tracking system” to
identify, log and record all property financed with tax-exempt debt and identify
the issue of Obligations used to finance such property.
b. The Responsible Person shall monitor and record the date on which the Project is
substantially complete and available to be used for the purpose intended.
c. The Responsible Person shall monitor and record whether, at any time the
Obligations are outstanding, any person, other than the City, the employees of the
City, the agents of the City or members of the general public has any contractual
right (such as a lease, research contract, naming rights agreement, purchase
contract, management agreement or other service agreement) with respect to any
portion of the Project.
d. Before entering into any private business use arrangement that involves the use of
the Project, the Responsible Person must obtain a description of the proposed
private business use arrangement and determine whether such arrangement, if put
into effect, will be consistent with the restrictions on private business use of the
Project. In connection with the evaluation of any proposed private business use
arrangement, the Responsible Person should consult with Bond Counsel to
discuss whether such arrangement, if put into effect, will be consistent with the
restrictions on private business use of the Project, and, if not, whether any
“remedial action” permitted under federal guidelines may be taken as a means of
enabling such private business use without adversely affecting the tax-exempt
status of the Obligations.
e. The Responsible Person shall monitor and record whether, at any time the
Obligations are outstanding, any person, other than the City, the employees of the
B-5
City, the agents of the City or members of the general public has a right to use the
output of the Project (e.g., water, gas, electricity, capacity) on any basis other than
standard rates and charges.
f. The Responsible Person shall monitor and record whether, at any time the
Obligations are outstanding, any person, other than the City, has a naming right
for the Project or any other contractual right granting an intangible benefit.
g. Prior to any sale of property owned by the City (real or personal), the Responsible
Person must confirm whether such property was financed with tax-exempt debt,
and if so, determine whether the proposed disposition of the property could
impact the tax-exempt status of the series of Obligations that financed the
acquisition of such property.
h. The Responsible Person shall take any action necessary to remediate any failure
to maintain compliance with the covenants contained in the ordinance authorizing
the issuance of the applicable series of Obligations.
C. Record Retention.
The Responsible Person will maintain or cause to be maintained all records relating to the
investment and expenditure of the proceeds of the Obligations and the use of the Project financed
or refinanced thereby for a period ending three (3) years after the complete extinguishment of the
Obligations. If any portion of the Obligations is refunded with the proceeds of another series of
Obligations, such records shall be maintained until the three (3) years after the refunding
Obligations mature or are otherwise paid off. Such records can be maintained in paper or
electronic format.
For purposes of these procedures, the Memorandum of Bond Counsel dated December 1,
2011 styled "Certain Federal Income Tax Considerations for Record Retention – Record
Management Program and Periodic Compliance Review" in incorporated herein and should be
reviewed periodically, at least once per year, by the Responsible Person.
D. Responsible Person & Continuity.
Each Responsible Person shall receive appropriate training regarding the City’s
accounting system, contract intake system, facilities management and other systems necessary to
track the investment and expenditure of the proceeds and the use of the facilities financed with
the proceeds of the Obligations. The foregoing notwithstanding, the Responsible Person is
authorized and instructed to retain such experienced advisors and agents as may be necessary to
carry out the purposes of these instructions.
Prior to cessation of employment with the City, the Responsible Person should identify
their successor to maintain compliance with these procedures.
B-6
II. FEDERAL SECURITIES LAW
Obligations, whether taxable or tax-exempt, sold in a public offering in an amount of
$1 million or more are subject to Rule 15c2-12 (the “Rule”) of the United States Securities and
Exchange Commission (the “SEC”). Additionally, the City may have covenanted to comply
with the Rule even with respect to Obligations that would otherwise be exempt from the Rule
(e.g., Obligations sold in a private placement or Obligations sold in an amount less than
$1 million). Pursuant to the Rule, the City is required to make annual filings of certain
information, as well as make filings upon the occurrence of certain specified events. All filings
must be made with the Municipal Securities Rulemaking Board (the “MSRB”) through its
Electronic Municipal Market Access System (“EMMA”) at emma.msrb.org.
A. Annual Filings.
The City must file the information listed below with EMMA within six (6) months of
each fiscal year end for so long as the respective series of Obligations remains outstanding. The
City’s fiscal year ends on September 30 of each year. Therefore, the City must provide updated
information by March 31 of the subsequent year. If audited financial statements are not available
by March 31, the City must provide unaudited financial information by such date and provide
audited financial statements when such statements become available. The City must file each of
the following items with EMMA:
(1) The City’s audited financial statements; and
(2) An update of the financial tables included in the Official Statement used in
connection with the Obligations as described under the caption "Continuing
Disclosure of Information". The information should be from the most recent
fiscal year end.
The Responsible Person must compile, prepare and make such filings within the required
time, or, alternatively, contract with a third-party, such as the City’s financial advisor, to make
such filings on the City’s behalf.
B. Notices of Specified Events.
The City must provide notice of any of the following events with respect to the
Obligations to the MSRB in a timely manner (but not in excess of ten business days after the
occurrence of the event):
(1) Principal and interest payment delinquencies;
(2) Non-payment related defaults, if material;
(3) Unscheduled draws on debt service reserves reflecting financial difficulties;
(4) Unscheduled draws on credit enhancements reflecting financial difficulties;
B-7
(5) Substitution of credit or liquidity providers, or their failure to perform;
(6) Adverse tax opinions, the issuance by the IRS of proposed or final determinations
of taxability, Notices of Proposed Issue (IRS Form 5701–TEB) or other material
notices or determinations with respect to the tax status of the Obligations, or other
material events affecting the tax status of the Obligations;
(7) Modifications to rights of Obligation holders, if material;
(8) Obligations calls (includes redemptions and other early payments), if material,
and tender offers;
(9) Defeasances;
(10) Release, substitution, or sale of property securing repayment of the Obligations, if
material;
(11) Rating changes;
(12) Bankruptcy, insolvency, receivership or similar event of the City;
(13) The consummation of a merger, consolidation, or acquisition involving the City
or the sale of all or substantially all of the assets of the City, other than in the
ordinary course of business, the entry into a definitive agreement to undertake
such an action or the termination of a definitive agreement relating to any such
actions, other than pursuant to its terms, if material;
(14) Appointment of a successor or additional paying agent or the change of name of a
paying agent, if material; and
(15) In a timely manner, notice of a failure of the City to make the required annual
filings listed in Subsection II(A) above.
The Responsible Person should review this list at regular intervals to determine whether
any event has occurred that may require a filing with EMMA.
C-1
EXHIBIT C
PRELIMINARY OFFICIAL STATEMENT
PRELIMINARY OFFICIAL STATEMENT
DATED __________, 2017
NEW ISSUE - Book-Entry-Only
In the opinion of Bond Counsel, interest on the Obligations will be excludable from gross income for federal income tax purposes under statutes, regulations,
published rulings and court decisions existing on the date thereof, subject to the matters described under “TAX MATTERS” herein, including the alternative
minimum tax on corporations.
CITY OF COLLEGE STATION, TEXAS
(a Home-Rule City located in Brazos County, Texas)
$24,965,000*$60,980,000*
GENERAL OBLIGATION IMPROVEMENT CERTIFICATES OF OBLIGATION
AND REFUNDING BONDS SERIES 2017
SERIES 2017
Dated Date: July 1, 2017 Due: February 15, as shown on inside cover
Interest Accrual Date: Date of Delivery
The $24,965,000* City of College Station, Texas General Obligation Improvement and Refunding Bonds, Series 2017 (the “Bonds”) and the $60,980,000* City
of College Station, Texas Certificates of Obligation, Series 2017 (the “Certificates”) are being issued by the City of College Station, Texas (the “City”) pursuant
to the terms of two separate ordinances adopted by the governing body of the City. In each of the ordinances, the City Council of the City delegated authority to
certain authorized officials of the City to finalize the pricing of the Obligations. The Bonds and the Certificates are referred to herein collectively as the
“Obligations.”
The Obligations are issuable only in fully registered form in the denomination of $5,000 principal amount or integral multiples thereof, initially registered solely
in the name of Cede & Co., as registered owner and nominee for The Depository Trust Company (“DTC”), New York, New York, acting as securities depository
for the Obligations. The Obligations initially will be available to purchasers in book-entry-form only. So long as Cede & Co. is the registered owner of the
Obligations, as nominee for DTC, the Paying Agent/Registrar, initially The Bank of New York Mellon Trust Company, N.A., Dallas, Texas (the “Paying
Agent/Registrar”) will pay the principal of and interest on the Obligations to Cede & Co., which will, in turn, remit such amounts to DTC participants for
subsequent disbursement to the beneficial owners of the Obligations.
Interest on the Obligations will accrue from the date of delivery, and will be payable February 15 and August 15 of each year commencing February 15, 2018
until maturity or prior redemption and will be calculated on the basis of a 360-day year consisting of twelve 30-day months. (see “THE OBLIGATIONS -
GENERAL DESCRIPTION”)
The City reserves the right, at its option, to redeem Obligations of either series having stated maturities on and after February 15, 2028, in whole or in part in
principal amounts of $5,000 or any integral multiple thereof, on February 15, 2027, or any date thereafter, at the par value thereof plus accrued interest to the
date of redemption. (see “THE OBLIGATIONS – OPTIONAL REDEMPTION”).
In addition to the foregoing optional redemption provision, if in connection with the pricing of the Bonds or the Certificates the principal amounts designated in the
separate Maturity Schedules herein are combined to create Term Obligations, each such Term Obligation shall be subject to mandatory sinking fund redemption
commencing on February 15 of the first year which has been combined to form such Term Obligation and continuing on February 15 in each year thereafter until the
stated maturity date of that Term Obligation, and the amount required to be redeemed in any year shall be equal to the principal amount for such year set forth in the
serial maturity schedule on the inside cover. Term Obligations to be redeemed in any year by mandatory sinking fund redemption shall be redeemed at par and shall
be selected by lot from the Term Obligations then subject to redemption. The City, at its option, may credit against any mandatory sinking fund redemption
requirement Term Obligations of the maturity then subject to redemption which have been purchased and canceled by the City or have been redeemed and not
theretofore applied as a credit against any mandatory sinking fund redemption requirement (see “THE OBLIGATIONS - MANDATORY SINKING FUND REDEMPTION”).
SEE MATURITY SCHEDULE,INTEREST RATES AND YIELDS ON INSIDE COVER
The Obligations are payable from annual ad valorem taxes levied against all taxable property in the City, within the legal limits prescribed by law. The
Certificates are additionally payable from a subordinate lien on and pledge of $1,000 of the surplus revenues of the City’s combined utility system (see “THE
OBLIGATIONS – SECURITY AND SOURCE OF PAYMENT,” and “– TAX RATE LIMITATION”).
The Bonds and the Certificates are being offered by the City concurrently, under a common Official Statement. The Bonds and the Certificates are separate and
distinct securities being issued and sold independently except for the Official Statement, and, while the Bonds and Certificates share certain common attributes,
each issue is separate from the other and should be reviewed and analyzed independently, including without limitation the date of accrual and payment of
interest for each series of the securities being offered, the redemption provisions and the tax treatment of interest for federal income tax purposes.
The Obligations of each series are offered for delivery, when issued, and received by the initial purchasers (the “Initial Purchasers”) and subject to the opinion
of the Attorney General of the State of Texas and the opinion of McCall, Parkhurst & Horton L.L.P., Dallas, Texas, Bond Counsel for the City (see “APPENDIX
C – FORMS OF OPINIONS OF BOND COUNSEL”). It is expected that the Obligations will be available for delivery through the services of DTC on or about
July 12, 2017.
BIDS DUE THURSDAY, JUNE 14, 2017, AT 9:30 A.M., CDT FOR THE CERTIFICATES
BIDS DUE THURSDAY, JUNE 14, 2017, AT 10:30 A.M., CDT FOR THE BONDS
Ratings:
Moody’s: "_____"
S&P: "_____"
(See “OTHER INFORMATION –
RATINGS” herein
ThisPreliminaryOfficialStatementandtheinformationcontainedhereinaresubjecttocompletionoramendment.ThesesecuritiesmaynotbesoldnormayofferstobuybeacceptedpriortothetimetheOfficialStatementisdeliveredinfinalform.UndernocircumstancesshallthisPreliminaryOfficialStatementconstituteanoffertosellorthesolicitationofanoffertobuynorshalltherebeanysaleofthesesecuritiesinanyjurisdictioninwhichsuchoffer,solicitationorsalewouldbeunlawfulpriortoregistrationorqualificationunderthesecuritieslawsofanysuchjurisdiction.__________
* Preliminary, subject to change. See "CONDITIONS OF SALE - ADVANCED ADJUSTMENT OF PRINCIPAL AMOUNT AND/OR TYPES OF BIDS" and " - POST BID MODIFICATION" in the Notice
of Sale and Bidding Instructions.
ii
MATURITY SCHEDULES*
$24,965,000*
General Obligation Improvement and Refunding Bonds, Series 2017
Due Interest Due Interest
Feb. 15 Principal*Rate Yield CUSIP (1)Feb. 15 Principal*Rate Yield CUSIP (1)
2018 470,000 2028 (2)985,000
2019 560,000 2029 (2)1,010,000
2020 590,000 2030 (2)920,000
2021 615,000 2031 (2)950,000
2022 650,000 2032 (2)980,000
2023 1,960,000 2033 (2)1,015,000
2024 2,270,000 2034 (2)1,050,000
2025 2,400,000 2035 (2)1,085,000
2026 2,520,000 2036 (2)1,120,000
2027 2,655,000 2037 (2)1,155,000
$60,980,000*
Certificates of Obligation, Series 2017
Due Interest Due Interest
Feb. 15 Principal*Rate Yield CUSIP (1)Feb. 15 Principal*Rate Yield CUSIP (1)
2018 3,415,000$2028 (2)2,875,000$
2019 2,275,000 2029 (2)2,965,000
2020 2,405,000 2030 (2)3,045,000
2021 2,525,000 2031 (2)3,145,000
2022 2,645,000 2032 (2)3,245,000
2023 2,775,000 2033 (2)3,350,000
2024 2,915,000 2034 (2)3,465,000
2025 2,790,000 2035 (2)3,585,000
2026 2,940,000 2036 (2)3,700,000
2027 3,090,000 2037 (2)3,830,000
* Preliminary, subject to change. See "CONDITIONS OF SALE - ADVANCED ADJUSTMENT OF PRINCIPAL AMOUNT AND/OR TYPES OF BIDS" and
" - POST BID MODIFICATION" in the Notice of Sale and Bidding Instructions.
(1)CUSIP numbers have been assigned to the Obligations by CUSIP Global Services, managed by S&P Capital IQ on behalf of the American
Bankers Association, and are included solely for the convenience of the purchasers of the Obligations. Neither the City, the Financial
Advisor nor the Initial Purchasers shall be responsible for the selection or correctness of the CUSIP numbers set forth herein.
(2)The City reserves the right, at its option, to redeem Obligations of either series having stated maturities on and after February 15, 2028, in
whole or in part in principal amounts of $5,000 or any integral multiple thereof, on February 15, 2027, or any date thereafter, at the par
value thereof plus accrued interest to the date of redemption.
iii
For purposes of compliance with Rule 15c2-12 of the United States Securities and Exchange Commission, as amended and in effect on the date hereof (the
“Rule”), this document constitutes a Preliminary Official Statement of the City with respect to the Obligations that has been deemed “final” by the City as of its
date except for the omission of no more than the information permitted by the Rule.
This Official Statement, which includes the cover page and the Appendices hereto, does not constitute an offer to sell or the solicitation of an offer to buy
in any jurisdiction to any person to whom it is unlawful to make such offer, solicitation or sale. No dealer, broker, salesperson or other person has been
authorized to give information or to make any representation other than those contained in this Official Statement, and, if given or made, such other
information or representations must not be relied upon.
The information set forth herein has been obtained from the City and other sources believed to be reliable, but such information is not guaranteed as to
accuracy or completeness and is not to be construed as the promise or guarantee of the Financial Advisor. This Official Statement contains, in part,
estimates and matters of opinion which are not intended as statements of fact, and no representation is made as to the correctness of such estimates and
opinions, or that they will be realized. CUSIP numbers have been assigned to this issue by CUSIP Global Services, and are included solely for the
convenience of the owners of the Obligations. Neither the City, the Financial Advisor nor the Initial Purchasers shall be responsible for the selection or
correctness of the CUSIP numbers shown on the inside cover page.
The information and expressions of opinion contained herein are subject to change without notice, and neither the delivery of this Official Statement nor
any sale made hereunder will, under any circumstances, create any implication that there has been no change in the affairs of the City or other matters
described.
In connection with this offering, the Initial Purchasers may over-allot or effect transactions which stabilize the market price of the issue at a level above
that which might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued at any time.
The Obligations are exempt from registration with the Securities and Exchange Commission and consequently have not been registered therewith. The
registration, qualification, or exemption of the Obligations in accordance with applicable securities law provisions of the jurisdiction in which these
securities have been registered or exempted should not be regarded as a recommendation thereof.
NEITHER THE CITY, ITS FINANCIAL ADVISOR NOR THE INITIAL PURCHASER MAKE ANY REPRESENTATION OR WARRANTY WITH RESPECT
TO THE INFORMATION CONTAINED IN THIS OFFICIAL STATEMENT REGARDING THE DEPOSITORY TRUST COMPANY (“DTC”) OR ITS
BOOK-ENTRY-ONLY SYSTEM.
Any information and expressions of opinion herein contained 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 or other matters
described herein since the date hereof.
The Initial Purchasers have provided the following sentence for inclusion in this Official Statement. The Initial Purchasers have reviewed the information
in this Official Statement in accordance with, and as part of, their responsibilities to investors under the federal securities laws as applied to the facts and
circumstances of this transaction, but the Initial Purchasers do not guarantee the accuracy or completeness of such information.
THIS OFFICIAL STATEMENT CONTAINS “FORWARD-LOOKING” STATEMENTS WITHIN THE MEANING OF SECTION 21E OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED. SUCH STATEMENTS MAY INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER
FACTORS WHICH MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE AND ACHIEVEMENTS TO BE DIFFERENT FROM THE FUTURE
RESULTS, PERFORMANCE AND ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. INVESTORS ARE
CAUTIONED THAT THE ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE SET FORTH IN THE FORWARD-LOOKING
STATEMENTS. See “OTHER INFORMATION – FORWARD-LOOKING STATEMENTS DISCLAIMER” herein.
References to web site addresses presented herein are for informational purposes only and may be in the form of a hyperlink solely for the reader’s
convenience. Unless specified otherwise, such web sites and the information or links contained therein are not incorporated into, and are not part of, this
final official statement for purposes of, and as that term is defined in, SEC Rule 15c2-12.
iv
TABLE OF CONTENTS
MATURITY SCHEDULES..........................................................i
OFFICIAL STATEMENT SUMMARY.....................................v
SELECTED FINANCIAL INFORMATION ........................................VII
GENERAL FUND CONSOLIDATED STATEMENT SUMMARY ..........VII
UTILITY SYSTEM CONDENSED STATEMENT OF OPERATIONS......VII
CITY OFFICIALS, STAFF AND CONSULTANTS..............viii
ELECTED OFFICIALS ................................................................VIII
SELECTED ADMINISTRATIVE STAFF .........................................VIII
CONSULTANTS AND ADVISORS ................................................VIII
INTRODUCTION ........................................................................1
DESCRIPTION OF THE CITY .........................................................1
PLAN OF FINANCING...............................................................1
PURPOSE....................................................................................1
REFUNDED OBLIGATIONS ...........................................................2
SOURCES AND USES OF PROCEEDS .............................................2
THE OBLIGATIONS ..................................................................3
GENERAL DESCRIPTION..............................................................3
AUTHORITY FOR ISSUANCE OF THE BONDS..................................3
AUTHORITY FOR ISSUANCE OF THE CERTIFICATES .......................3
SECURITY AND SOURCE OF PAYMENT.........................................3
TAX RATE LIMITATION ..............................................................3
OPTIONAL REDEMPTION .............................................................3
MANDATORY SINKING FUND REDEMPTION.................................3
NOTICE OF REDEMPTION ............................................................4
BOOK-ENTRY-ONLY SYSTEM.....................................................4
PAYING AGENT/REGISTRAR .......................................................6
TRANSFER,EXCHANGE AND REGISTRATION................................6
RECORD DATE FOR INTEREST PAYMENT .....................................6
DEFEASANCE .............................................................................6
REMEDIES OF HOLDERS OF OBLIGATIONS ...................................7
TAX INFORMATION.................................................................7
AD VALOREM TAX LAW ............................................................7
CONSTITUTIONAL AMENDMENT .................................................8
EFFECTIVE TAX RATE AND ROLLBACK TAX RATE.......................9
PROPERTY ASSESSMENT AND TAX PAYMENT..............................9
PENALTIES AND INTEREST ..........................................................9
CITY APPLICATION OF PROPERTY TAX CODE ............................10
TAX ABATEMENT POLICY ........................................................10
ECONOMIC DEVELOPMENT PROGRAMS.....................................10
TABLE 1 -VALUATION,EXEMPTIONS AND GENERAL
OBLIGATION DEBT.............................................................12
TABLE 2 -TAXABLE ASSESSED VALUATIONS BY CATEGORY ...13
TABLE 3 -VALUATION AND GENERAL OBLIGATION DEBT
HISTORY ...........................................................................14
TABLE 4 -TAX RATE,LEVY AND COLLECTION HISTORY .........14
TABLE 5 -TEN LARGEST TAXPAYERS......................................14
TABLE 6 -TAX ADEQUACY .....................................................15
TABLE 7 -ESTIMATED OVERLAPPING DEBT.............................15
DEBT INFORMATION.............................................................16
TABLE 8 -PRO-FORMA AD VALOREM TAX DEBT SERVICE
REQUIREMENTS .................................................................16
TABLE 9 -INTEREST AND SINKING FUND BUDGET
PROJECTION ......................................................................17
TABLE 10 –SELF-SUPPORTING DEBT .......................................17
TABLE 11 -AUTHORIZED BUT UNISSUED TAX BONDS .............18
ANTICIPATED ISSUANCE OF GENERAL OBLIGATION DEBT .........18
OTHER OBLIGATIONS ...............................................................18
PENSION FUND ........................................................................18
OTHER POST EMPLOYMENT BENEFITS ......................................18
FINANCIAL INFORMATION.................................................21
TABLE 12 -GENERAL FUND REVENUES AND EXPENDITURE
HISTORY ...........................................................................21
TABLE 13 -MUNICIPAL SALES TAX HISTORY .........................22
FINANCIAL POLICIES................................................................22
THE COMBINED UTILITY SYSTEM...................................23
WATERWORKS SYSTEM ...........................................................23
WASTEWATER SYSTEM ............................................................24
ELECTRIC SUPPLY SOURCE ......................................................24
WIND WATT RATES.................................................................25
TABLE 14 -HISTORICAL UTILITY USERS ..................................26
TABLE 15 -TEN LARGEST UTILITY CUSTOMERS .......................26
TABLE 16 -CONDENSED STATEMENT OF OPERATIONS ..............26
TABLE 17 –VALUE OF THE SYSTEM .........................................27
TABLE 18 –CITY’S EQUITY IN THE SYSTEM .............................27
TABLE 19 –UTILITY REVENUE BOND AND SYSTEM
SUPPORTED CERTIFICATE DEBT SERVICE ...........................28
INVESTMENTS.........................................................................28
LEGAL INVESTMENTS ..............................................................28
INVESTMENT POLICIES.............................................................29
ADDITIONAL PROVISIONS ........................................................30
CITY’S INVESTMENT POLICY....................................................30
TABLE 20 -CURRENT INVESTMENTS ........................................30
TAX MATTERS.........................................................................31
OPINION ..................................................................................31
FEDERAL INCOME TAX ACCOUNTING TREATMENT OF
ORIGINAL ISSUE DISCOUNT ...............................................31
COLLATERAL FEDERAL INCOME TAX CONSEQUENCES ..............32
STATE,LOCAL AND FOREIGN TAXES ........................................32
FUTURE AND PROPOSED LEGISLATION .....................................33
CONTINUING DISCLOSURE OF INFORMATION............33
ANNUAL REPORTS ...................................................................33
EVENT NOTICES ......................................................................33
LIMITATIONS AND AMENDMENTS .............................................34
COMPLIANCE WITH PRIOR UNDERTAKINGS ..............................34
OTHER INFORMATION.........................................................34
RATINGS .................................................................................34
LITIGATION .............................................................................34
REGISTRATION AND QUALIFICATION OF OBLIGATIONS FOR
SALE .................................................................................35
LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC
FUNDS IN TEXAS ...............................................................35
LEGAL OPINIONS .....................................................................35
AUTHENTICITY OF FINANCIAL DATA AND OTHER
INFORMATION ...................................................................35
FINANCIAL ADVISOR ...............................................................36
VERIFICATION OF ARITHMETICAL AND MATHEMATICAL
COMPUTATIONS ................................................................36
INITIAL PURCHASERS ...............................................................36
MISCELLANEOUS .....................................................................37
SCHEDULE OF REFUNDED
OBLIGATIONS ...............................................................SCHEDULE I
APPENDICES
GENERAL INFORMATION REGARDING THE CITY..................................A
EXCERPTS FROM THE ANNUAL FINANCIAL REPORT ............................B
FORMS OF OPINIONS OF BOND COUNSEL ............................................C
The cover page hereof, this page, the appendices included herein and any
addenda, supplement or amendment hereto, are part of the Official
Statement.
v
OFFICIAL STATEMENT SUMMARY
This summary is subject in all respects to the more complete information and definitions contained or incorporated in this Official
Statement. The offering of the Obligations to potential investors is made only by means of this entire Official Statement. No person is
authorized to detach this summary from this Official Statement or to otherwise use it without the entire Official Statement.
THE CITY............................. The City of College Station, Texas (the “City”) is a political subdivision and a home-rule city of the State,
located in Brazos County, Texas. The City covers approximately 51.6 square miles (see “INTRODUCTION
- DESCRIPTION OF THE CITY”).
THE BONDS .......................... The Bonds are issued as $24,965,000* City of College Station, Texas General Obligation Improvement and
Refunding Bonds, Series 2017. The Bonds are issued as serial bonds maturing on February 15 in each of
the years 2018-2037, inclusive (see “THE OBLIGATIONS - GENERAL DESCRIPTION”).If two or more serial
maturities of the Bonds are grouped into a single maturity (the “Term Bonds”) by the Initial Purchasers,
such Term Bonds will be subject to mandatory sinking fund redemption in accordance with applicable
provisions of the Bond Ordinance.
THE CERTIFICATES ............. The Certificates are issued as $60,980,000* City of College Station, Texas Certificates of Obligation, Series
2017. The Certificates are issued as serial certificates maturing on February 15 in each of the years 2018-
2037, inclusive (see “THE OBLIGATIONS - GENERAL DESCRIPTION”).If two or more serial maturities of
the Certificates are grouped into a single maturity (the “Term Certificates”) by the Initial Purchasers, such
Term Certificates will be subject to mandatory sinking fund redemption in accordance with applicable
provisions of the Certificate Ordinance.
PAYMENT OF INTEREST ...... Interest on the Bonds will accrue from the date of delivery, and will be payable February 15 and August 15
of each year commencing February 15, 2018 until maturity or prior redemption and will be calculated on the
basis of a 360-day year consisting of twelve 30-day months. Interest on the Certificates will accrue from the
date of delivery, and will be payable February 15 and August 15 of each year commencing February 15,
2018 until maturity or prior redemption and will be calculated on the basis of a 360-day year consisting of
twelve 30-day months. (see “THE OBLIGATIONS - GENERAL DESCRIPTION”).
AUTHORITY FOR ISSUANCE
OF THE BONDS .................... The Bonds are issued pursuant to the general laws of the State, particularly Chapters 1207, 1251, 1331 and
1371, Texas Government Code, an ordinance passed by the City Council of the City, and an election held
November 4, 2008. In the ordinance authorizing the issuance of the Bonds, the City Council delegated
pricing of the Bonds to a “Pricing Officer” who will approve the terms of sale of the Bonds. (see “THE
OBLIGATIONS - AUTHORITY FOR ISSUANCE OF THE BONDS”).
AUTHORITY FOR ISSUANCE
OF THE CERTIFICATES ....... The Certificates are issued pursuant to the general laws of the State, particularly Chapter 1371, Texas
Government Code and Subchapter C of Chapter 271, Texas Local Government Code, as amended; and an
ordinance passed by the City Council of the City. In the ordinance authorizing the issuance of the
Certificates, the City Council delegated pricing of the Certificates to a “Pricing Officer” who will approve
the terms of sale of the Certificates. (see “THE OBLIGATIONS - AUTHORITY FOR ISSUANCE OF THE
CERTIFICATES”).
SECURITY FOR THE
BONDS .................................. The Bonds constitute direct obligations of the City, secured by and payable from the levy and collection of a
direct and continuing ad valorem tax, within the limits prescribed by law, on all taxable property located within
the City (see “THE OBLIGATIONS - SECURITY AND SOURCE OF PAYMENT”). Article XI, Section 5, of the
Texas Constitution is applicable to the City, and limits its maximum ad valorem tax rate to $2.50 per $100
Taxable Assessed Valuation for all City purposes. The Home-Rule Charter of the City adopts the
constitutionally authorized maximum tax rate of $2.50 per $100 Taxable Assessed Valuation.
SECURITY FOR THE
CERTIFICATES...................... The Certificates constitute direct obligations of the City, secured by and payable from a combination of (i) the
levy and collection of an annual direct and continuing ad valorem tax, within the limits prescribed by law, on all
taxable property located within the City, and (ii) a subordinate lien on and pledge of $1,000 of the surplus
revenues derived from the City’s combined utility system (see “THE OBLIGATIONS - SECURITY AND SOURCE
OF PAYMENT”). Article XI, Section 5, of the Texas Constitution is applicable to the City, and limits its
maximum ad valorem tax rate to $2.50 per $100 Taxable Assessed Valuation for all City purposes. The Home-
Rule Charter of the City adopts the constitutionally authorized maximum tax rate of $2.50 per $100 Taxable
Assessed Valuation.__________
* Preliminary, subject to change. See "CONDITIONS OF SALE - ADVANCED ADJUSTMENT OF PRINCIPAL AMOUNT AND/OR TYPES OF BIDS" and " -
POST BID MODIFICATION" in the Notice of Sale and Bidding Instructions.
vi
REDEMPTION ....................... The City reserves the right, at its option, to redeem Obligations of either series having stated maturities on
and after February 15, 2028, in whole or in part in principal amounts of $5,000 or any integral multiple
thereof, on February 15, 2027, or any date thereafter, at the par value thereof plus accrued interest to the
date of redemption (see “THE OBLIGATIONS – OPTIONAL REDEMPTION”). Additionally, the Obligations
may be subject to mandatory redemption in the event the Initial Purchasers elect to aggregate one or more
maturities as a term Obligation. (See “THE OBLIGATIONS – MANDATORY SINKING FUND REDEMPTION.”)
TAX EXEMPTION ................... In the opinion of Bond Counsel, the interest on the Obligations will be excludable from gross income for
federal income tax purposes under existing law, including the alternative minimum tax on corporations. See
“TAX MATTERS” for a discussion of the opinion of Bond Counsel and Exhibit C.
USE OF BOND PROCEEDS ..... Proceeds from the sale of the Bonds will be used to (i) pay for the costs of constructing and improving
streets and roads including related drainage, landscaping, lighting, related thereto; (ii) pay for the costs of
constructing and improving the City library (iii) refund certain obligations of the City described in Schedule
I to this Official Statement (the “Refunded Obligations”) and (iv) pay the costs incurred in connection with
the issuance of the Bonds (see “PLAN OF FINANCING – SOURCES AND USE OF PROCEEDS”).
USE OF CERTIFICATE
PROCEEDS.......................... Proceeds from the sale of the Certificates will be used for (i) constructing, improving and extending streets,
roads and pedestrian facilities including related signalization, drainage, irrigation, landscaping, lighting and
signage; (ii) constructing and equipping a new police station; (iii) purchasing and installing technology
improvements including new electronic storage equipment for the City and fiber optic infrastructure for use
by the City; (iv) purchasing public safety radios and radio system equipment related thereto; (v) purchasing
self-contained breathing apparatuses and related equipment for the fire department; (vi) designing and
constructing City gateway signage; (vii) designing, constructing, equipping and installing park and
recreation equipment and improvements including rehabilitating and improving aquatic facilities,
playground improvements and equipment, park infrastructure improvements, upgrades and rehabilitation;
(viii) constructing improvements and extensions to the City's combined waterworks, sewer and electric
systems including distribution, transmission, system lines and wells; and (ix) to pay the costs incurred in
connection with the issuance of the Certificates (see “PLAN OF FINANCING – SOURCES AND USE OF
PROCEEDS”).
RATINGS .............................The Obligations and presently outstanding tax supported debt of the City are rated “_____” by Moody's
Investors Service, Inc. (“Moody's”) and “_____” by Standard & Poor's Ratings Services, a Standard &
Poor’s Financial Services LLC business (“S&P”), without regard to credit enhancement (see “OTHER
INFORMATION – RATINGS”).
BOOK-ENTRY-ONLY
SYSTEM .............................. The definitive Obligations will be initially registered and delivered only to Cede & Co., the nominee of The
Depository Trust Company (“DTC”) pursuant to the Book-Entry-Only System described herein. Beneficial
ownership of the Obligations may be acquired in denominations of $5,000 or integral multiples thereof. No
physical delivery of the Obligations will be made to the beneficial owners thereof. Principal of and interest
on the Obligations will be payable by the Paying Agent/Registrar to Cede & Co., which will make
distribution of the amounts so paid to the participating members of DTC for subsequent payment to the
beneficial owners of the Obligations (see “THE OBLIGATIONS - BOOK-ENTRY-ONLY SYSTEM”).
PAYMENT RECORD ..............Other than a late payment on the City’s Certificates of Obligation, Series 2002 that occurred in 2003, the
City has never defaulted in payment of its general obligation tax debt.
[Remainder of Page Intentionally Left Blank]
vii
SELECTED FINANCIAL INFORMATION
Ratio Tax
Fiscal Per Capita Per Capita Debt to
Year Estimated Taxable Taxable Net Net Taxable
Ended City Assessed Assessed Ad Valorem Ad Valorem Assessed
9/30 Population(1)Valuation(2)Valuation Tax Debt(3)Tax Debt Valuation
2012 96,603 5,738,615,002$59,404$96,390,000$998$1.68%100.09%
2013 97,534 5,944,312,987 60,946 96,750,000 992 1.63%100.30%
2014 99,918 6,231,119,010 62,362 88,100,000 882 1.41%100.15%
2015 102,117 6,654,600,834 65,166 101,630,000 995 1.53%99.17%
2016 106,465 7,162,738,280 67,278 118,350,000 1,112 1.65%100.03%
2017 109,936 7,623,964,171 (4)69,349 172,165,000 (5)1,566 (5)2.26%(5)89.70%(6)
Collection
Total
Percent
_______________
(1)Source: The City.
(2)As reported by the Brazos Central Appraisal District; subject to change during the ensuing year.
(3)Payable from ad valorem taxes. Does not include self-supporting debt. See “TABLE 10 – SELF-SUPPORTING DEBT” for detail on the City’s
self supported tax debt.
(4)Certified taxable assessed valuation for tax year 2016 as reported by the Brazos Central Appraisal District. This amount is subject to
change during ensuing year.
(5)Projected, includes the Obligations and excludes the Refunded Obligations.
(6)Collections as of March 15, 2017. A portion of the City’s taxpayer base has elected to provide split payments to the City which will be due
in part on June 30, 2017.
GENERAL FUND CONSOLIDATED STATEMENT SUMMARY
2016 2015 2014 2013 2012
Beginning Balance 22,423,064$20,244,248$15,925,531$16,492,693$14,393,033$
TotalRevenue 60,087,950 58,378,174 50,325,825 48,229,096 46,560,274
TotalExpenditures 77,508,715 68,827,167 61,303,335 59,483,559 55,670,118
Other Financing Sources 14,130,903 12,627,809 15,296,227 10,687,301 11,209,504
Ending Balance
(1)19,133,202$22,423,064$20,244,248$15,925,531$16,492,693$
For FiscalYear Ended September 30,
_______________
(1)The City’s financial policies require a General Fund balance of 15% of budgeted appropriations at year end. To the extent that the General
Fund balance exceeds this amount, this surplus may be expended in future years for one time expenditures such as capital items and short
term projects.
(2)Restated.
UTILITY SYSTEM CONDENSED STATEMENT OF OPERATIONS
2016 2015 2014 2013 2012
Revenues:
Electric 98,904,688$98,763,293$95,677,765$92,892,541$94,396,234$
Water and Wastewater 29,484,851 28,732,968 27,550,262 29,018,108 27,652,449
Interest 346,312 180,423 116,433 170,062 136,974
Other 3,636,420 3,546,138 2,890,061 3,670,710 2,857,223
TotalRevenues 132,372,271$131,222,822$126,234,521$125,751,421$125,042,880$
Expenses:
TotalExpenses 76,771,094$82,079,813$100,235,329$90,519,871$88,927,662$
Net Available for Debt Service 55,601,177$49,143,009$25,999,192$35,231,550$36,115,218$
Water (Units Served)41,709 41,540 40,768 40,767 39,338
Wastewater (Units Served)40,866 40,806 39,128 38,608 36,908
Electric (Units Served)40,141 43,471 38,198 38,456 39,123
For FiscalYear Ended September 30,
viii
CITY OFFICIALS, STAFF AND CONSULTANTS
ELECTED OFFICIALS
Term
Name Position Expiration Occupation
KarlP. Mooney Mayor 4 mos (1)11/19 Texas A&M University Director
Julie Schultz Mayor Pro Tem 5.5 Years (2)11/17 Business Owner
Blanche Brick CouncilMember 5.5 Years (3)11/17 Professor
Jerome Rektorik CouncilMember 4 mos (4)11/19 Retired
Linda Harvell CouncilMember 4 mos (4)11/17 Business Owner
Barry Moore CouncilMember 4 mos (4)11/18 CommercialRE Broker
James Benham CouncilMember 4.5 Years (3)11/18 Business Owner
Length of
Service
_________________
(1) Elected November 2016 - Former City of College Station Council Member 2006-2016
(2) Elected November 2012.
(3) Elected May 2011.
(4) Elected November 2016.
SELECTED ADMINISTRATIVE STAFF
Name Position
Kelly Templin City Manager 5.0 (1)
Chuck Gillman Deputy City Manager 9.5 (2)
Jeff Kersten Assistant City Manager 26.0 (3)
Jeff Capps Assistant City Manager 24.0 (4)
Carla Robinson City Attorney 18.5
Sherry Mashburn City Secretary 6.5
Ty Elliott InternalAuditor 9.0
Mary Ellen Leonard Director of Finance 1.0
David Coleman Director of Water Services 11.5
Timothy Crabb Director of Electric Utility 10.5 (5)
Ben Roper Director of Information Technology 12.5
David Schmitz Director of Parks and Recreation 9.0 (6)
Lance Simms Director of Development Services 21.0 (7)
Donald Harmon Director of Public Works and CIP 17.5 (8)
Alison Pond Director of Human Resources 8.5
Jay Socol Public Communications Director 7.5
Length of Service
to the City
(in Years)
_______________
(1) City Manager since November 2013; previously served as Planning & Development Director 2002-2004.
(2) Deputy City Manager since January 2014; previously served as Director of Public Works and CIP.
(3) Assistant City Manager since January 2014; previously served as Chief Financial Officer.
(4) Assistant City Manager since June 2014; previously served as Chief of Police.
(5) Director of Electric Utility since December 2012; previously served as Assistant Director of Electric Utility.
(6) Director of Parks and Recreation since May 2011; previously served as Assistant Director of Parks and Recreation.
(7) Director of Development Services since March 2014; previously Assistant Director of Development Services.
(8) Director of Public Works and CIP since January 2014; previously Assistant Director of Public Works and CIP.
CONSULTANTS AND ADVISORS
Auditors ................................................................................................................................................. Ingram, Wallis & Company
Bryan, Texas
Bond Counsel .............................................................................................................................McCall, Parkhurst & Horton L.L.P.
Dallas, Texas
Financial Advisor.............................................................................................First Southwest, a Division of Hilltop Securities Inc.
Houston, Texas
ix
For additional information regarding the City, please contact:
Jeff Kersten
Assistant City Manager
City of College Station
1101 Texas Avenue
College Station, Texas 77840
(979) 764-3555 Phone
or
Drew Masterson
First Southwest, a Division of
Hilltop Securities Inc.
700 Milam Street, Suite 500
Houston, Texas 77002
(713) 651-9850 Phone
[Remainder of Page Intentionally Left Blank]
1
PRELIMINARY OFFICIAL STATEMENT
RELATING TO
CITY OF COLLEGE STATION, TEXAS
(a Home-Rule City located in Brazos County, Texas)
$24,965,000*
GENERAL OBLIGATION
IMPROVEMENT AND
REFUNDING BONDS
SERIES 2017
$60,980,000*
CERTIFICATES OF OBLIGATION
SERIES 2017
INTRODUCTION
This Official Statement, which includes the cover pages and Appendices hereto, provides certain information regarding the issuance of the
$24,965,000* City of College Station, Texas General Obligation Improvement and Refunding Bonds, Series 2017 (the “Bonds”) and the
$60,980,000* City of College Station, Texas Certificates of Obligation, Series 2017 (the “Certificates”). The Bonds and the Certificates are
referred to herein collectively as the “Obligations.” Capitalized terms used in this Official Statement, except as otherwise indicated herein, have
the same meanings assigned to such terms in the ordinances authorizing the issuance of the Bonds (the “Bond Ordinance”) and the Certificates
(the “Certificate Ordinance”), respectively. The Bond Ordinance and the Certificate Ordinance are collectively referred to herein as the
“Ordinances.” In the Ordinances, the City Council delegated to certain officers known as “Pricing Officers” of the City the authority to finalize
the pricing of the Obligations.
There follows in this Official Statement descriptions of the Obligations and certain information regarding the City and its finances. All
descriptions of documents contained herein are only summaries and are qualified in their entirety by reference to each such document.
Copies of such documents may be obtained from the City's Financial Advisor, FirstSouthwest, a Division of Hilltop Securities Inc.,
Houston, Texas.
DESCRIPTION OF THE CITY
The City is a political subdivision and municipal corporation of the State of Texas (the “State”), duly organized and existing under the laws
of the State, including the City's Home Rule Charter. The City was incorporated in October 1938, and first adopted its Home-Rule Charter
in October 1938, which was last amended in November 2012. The City operates under a Council/City Manager form of government with a
City Council comprised of the Mayor and six Council members. Some of the services that the City provides are: public safety (police and
fire protection), highways and streets, electric, water and sanitary sewer utilities, health and social services, culture-recreation, public
transportation, public improvements, planning and zoning, and general administrative services. The 2010 Census population was 93,857
and the current estimated population of the City is 109,857. The City covers approximately 51.6 square miles.
PLAN OF FINANCING
PURPOSE OF THE BONDS
Proceeds from the sale of the Bonds will be used to (i) pay for the costs of constructing and improving streets and roads including related
drainage, landscaping, lighting, related thereto; (ii) pay for the costs of constructing and improving the City library (iii) refund certain
obligations of the City described in Schedule I to this Official Statement (the “Refunded Obligations”) and (iv) pay the costs incurred in
connection with the issuance of the Bonds (see “PLAN OF FINANCING – SOURCES AND USE OF PROCEEDS”).
PURPOSE OF THE CERTIFICATES
Proceeds from the sale of the Certificates will be used for (i) constructing, improving and extending streets, roads and pedestrian facilities
including related signalization, drainage, irrigation, landscaping, lighting and signage; (ii) constructing and equipping a new police station;
(iii) purchasing and installing technology improvements including new electronic storage equipment for the City and fiber optic
infrastructure for use by the City; (iv) purchasing public safety radios and radio system equipment related thereto; (v) purchasing self-
contained breathing apparatuses and related equipment for the fire department; (vi) designing and constructing City gateway signage; (vii)
designing, constructing, equipping and installing park and recreation equipment and improvements including rehabilitating and improving
aquatic facilities, playground improvements and equipment, park infrastructure improvements, upgrades and rehabilitation; (viii)
constructing improvements and extensions to the City's combined waterworks, sewer and electric systems including distribution,
transmission, system lines and wells; and (ix) to pay the costs incurred in connection with the issuance of the Certificates (see “PLAN OF
FINANCING – SOURCES AND USE OF PROCEEDS”).
__________
* Preliminary, subject to change. See "CONDITIONS OF SALE - ADVANCED ADJUSTMENT OF PRINCIPAL AMOUNT AND/OR TYPES OF BIDS" and " - POST BID
MODIFICATION" in the Notice of Sale and Bidding Instructions.
2
REFUNDED OBLIGATIONS
The principal of and interest due on the Refunded Obligations are to be paid on the respective interest payment dates and redemption dates of
such Refunded Obligations, from funds to be deposited pursuant to a certain Escrow Agreement (the “Escrow Agreement”) between the City
and The Bank of New York Mellon Trust Company, N.A., Dallas, Texas (the “Escrow Agent”). The Bond Ordinance authorizing the Bonds
provides that from the proceeds of the sale of the Bonds and other available moneys of the City, if any, the City will deposit with the Escrow
Agent the amount necessary to accomplish the discharge and final payment of the Refunded Obligations on their respective redemption dates.
Such funds will be held by the Escrow Agent in a special escrow account (the “Escrow Fund”) and used to purchase (i) direct noncallable
obligations of the United States, including obligations that are unconditionally guaranteed by the United States or (ii) noncallable obligations of
an agency or instrumentality of the United States, including obligations that are unconditionally guaranteed or insured by the agency or
instrumentality and that, on the date the governing body of the City adopts the proceedings authorizing the issuance of refunding bonds, are
rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent (the “Escrow Securities”).
Under the Escrow Agreement, the Escrow Fund is irrevocably pledged to the payment of the principal of and interest on the Refunded
Obligations.
Grant Thornton LLP, a nationally recognized accounting firm, will verify at the time of delivery of the Bonds to the underwriters listed on the
cover page hereof (the “Initial Purchasers”) the mathematical accuracy of the schedules that demonstrate the Escrow Securities will mature and
pay interest in such amounts which, together with uninvested funds, if any, in the Escrow Fund, will be sufficient to pay, when due, the
principal of and interest on the Refunded Obligations.Such maturing principal of and interest on the Escrow Securities will not be
available to make debt service payments on the Bonds (see “OTHER INFORMATION - VERIFICATION OF ARITHMETICAL AND
MATHEMATICAL COMPUTATIONS”).
By the deposit of the Escrow Securities and cash, if necessary, with the Escrow Agent pursuant to the Escrow Agreement sufficient to pay the
redemption price of the Refunded Obligations on their respective redemption dates, the City will have effected the defeasance of all of the
Refunded Obligations in accordance with State law. As a result of such defeasance, the Refunded Obligations will be outstanding only for the
purpose of receiving payments from the Escrow Securities and any cash held for such purpose by the Escrow Agent and such Refunded
Obligations will not be deemed as being outstanding obligations of the City payable from taxes or revenues nor for the purpose of applying any
limitation on the issuance of debt.
The City has covenanted in the Escrow Agreement to make timely deposits to the Escrow Fund, from lawfully available funds, of any additional
amounts required to pay the principal of and interest on the Refunded Obligations, if for any reason, the Escrow Securities and cash balances on
deposit or scheduled to be on deposit in the Escrow Fund are insufficient to make such payment.
SOURCES AND USES OF PROCEEDS
The proceeds from the sale of the Obligations, and the cash contribution by the City, will be applied approximately as follows:
THE BONDS THE CERTIFICATES
Sources of Funds Sources of Funds
Par Amount -$Par Amount -$
OriginalIssue Premium -OriginalIssue Premium -
Issuer Contribution -TotalUses of Funds -$
TotalUses of Funds -$
Use of Funds Use of Funds
Deposit to Project Fund -$Deposit to Project Fund -$
Deposit to Escrow Fund -Deposit to Interest and Sinking Fund -
Deposit to Interest and Sinking Fund -Underwriters' Discount -
Underwriters' Discount -Costs of Issuance -
Costs of Issuance -TotalUses of Funds -$
TotalUses of Funds -$
3
THE OBLIGATIONS
GENERAL DESCRIPTION
The Obligations will bear interest from the date of delivery to the Initial Purchasers, and mature on February 15 in each of the years and in
the amounts shown on the inside cover page hereof. Interest on the Obligations will be calculated on the basis of a 360-day year consisting
of twelve 30-day months. Interest on the Obligations will accrue from the date of delivery, and will be payable February 15 and August 15
of each year commencing February 15, 2018 until maturity or prior redemption and will be calculated on the basis of a 360-day year
consisting of twelve 30-day months. The definitive Obligations will be issued only in fully registered form in any integral multiple of
$5,000 for any one maturity and will be initially registered and delivered only to Cede & Co., the nominee of The Depository Trust
Company, New York, New York (“DTC”) pursuant to the Book-Entry-Only System described herein. No physical delivery of the
Obligations will be made to the beneficial owners thereof. Principal of and interest on the Obligations will be payable by the Paying
Agent/Registrar to Cede & Co., which will make distribution of the amounts so paid to the participating members of DTC for subsequent
payment to the beneficial owners of the Obligations (see “BOOK-ENTRY-ONLY SYSTEM”).
AUTHORITY FOR ISSUANCE OF THE BONDS
The Bonds are being issued pursuant to the Constitution and general laws of the State of Texas, particularly Chapters 1251, 1207, 1331 and
1371, Texas Government Code, as amended; an election held November 4, 2008 passed by a majority of the participating voters; and the
Bond Ordinance.
AUTHORITY FOR ISSUANCE OF THE CERTIFICATES
The Certificates are being issued pursuant to the Constitution and general laws of the State of Texas, particularly Chapter 1371, Texas
Government Code and Subchapter C of Chapter 271, Texas Local Government Code (the Certificate of Obligation Act of 1971), as
amended; and the Certificate Ordinance.
SECURITY AND SOURCE OF PAYMENT
The Bonds are secured by and payable from a direct and continuing annual ad valorem tax levied within the limits prescribed by law,
against all taxable property in the City.
The Certificates are secured by and payable from an annual continuing ad valorem taxes levied against all taxable property in the City,
within the legal limits prescribed by law and payable from a subordinate lien on and pledge of $1,000 of the surplus revenues of the City’s
combined utility system.
TAX RATE LIMITATION
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 ad valorem tax debt within the limits prescribed by law. Article XI,
Section 5, of the Texas Constitution is applicable to the City, and limits its maximum ad valorem tax rate to $2.50 per $100 Taxable Assessed
Valuation for all City purposes. The Home-Rule Charter of the City adopts the constitutionally authorized maximum tax rate of $2.50 per $100
Taxable 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 all debt service for obligations payable from annual ad valorem property taxes, as calculated at the time of issuance.
OPTIONAL REDEMPTION
The City reserves the right, at its option, to redeem Obligations of either series having stated maturities on and after February 15, 2028, in
whole or in part in principal amounts of $5,000 or any integral multiple thereof, on February 15, 2027, or any date thereafter, at the par
value thereof plus accrued interest to the date of redemption. If less than all of the Obligations are to be redeemed, the City shall determine
the Obligations, or portions thereof, within such maturity to be redeemed. If Obligations (or any portion of the principal sum thereof) shall
have been called for redemption and notice of such redemption shall have been given, such Obligations (or the principal amount thereof to
be redeemed) shall become due and payable on such redemption date and interest thereon shall cease to accrue from and after the
redemption date, provided funds for the payment of the redemption price and accrued interest thereon are held by the Paying
Agent/Registrar on the redemption date.
4
MANDATORY SINKING FUND REDEMPTION
In addition to the foregoing optional redemption provision, if principal amounts designated in the serial maturity schedules show on the inside
cover page hereof are combined to create term bonds (the “Term Bonds”) or if principal amounts in the serial maturity schedule shown on the
inside cover page hereof are combined to create term certificates (the “Term Certificates” and together with the Term Bonds the “Term
Obligations”), each such Term Obligation shall be subject to mandatory sinking fund redemption commencing on February 15 of the first year
which has been combined to form such Term Obligation and continuing on February 15 in each year thereafter until the stated maturity date of
that Term Obligation, and the amount required to be redeemed in any year shall be equal to the principal amount for such year set forth in the
Maturity Schedules herein. Term Obligations to be redeemed in any year by mandatory sinking fund redemption shall be redeemed at par and
shall be selected by lot from the Term Obligations then subject to redemption. The City, at its option, may credit against any mandatory sinking
fund redemption requirement Term Obligations of the maturity then subject to redemption which at least 45 days prior to the mandatory sinking
fund redemption date have been purchased and canceled by the City or have been redeemed and not theretofore applied as a credit against any
mandatory sinking fund redemption requirement.
NOTICE OF REDEMPTION
Not less than 30 days prior to a redemption date for the Obligations, the City shall cause a notice of redemption to be sent by United States
mail, first class, postage prepaid, to the registered owners of the Obligations to be redeemed, in whole or in part, at the address of the
registered owner appearing on the registration books of the Paying Agent/Registrar. ANY NOTICE SO MAILED SHALL BE
CONCLUSIVELY PRESUMED TO HAVE BEEN DULY GIVEN, WHETHER OR NOT THE REGISTERED OWNER RECEIVES
SUCH NOTICE. NOTICE HAVING BEEN SO GIVEN, THE OBLIGATIONS CALLED FOR REDEMPTION SHALL BECOME DUE
AND PAYABLE ON THE SPECIFIED REDEMPTION DATE, AND NOTWITHSTANDING THAT ANY OBLIGATION OR
PORTION THEREOF HAS NOT BEEN SURRENDERED FOR PAYMENT, INTEREST ON SUCH OBLIGATION OR PORTION
THEREOF SHALL CEASE TO ACCRUE.
With respect to any optional redemption of the Obligations, unless certain prerequisites to such redemption required by the Ordinances
have been met and moneys sufficient to pay the principal of and premium, if any, and interest on the Obligations to be redeemed shall have
been received by the Paying Agent/Registrar prior to the giving of such notice of redemption, such notice shall state that said redemption
may, at the option of the City, be conditional upon the satisfaction of such prerequisites and receipt of such moneys by the Paying
Agent/Registrar on or prior to the date fixed for such redemption, or upon any prerequisite set forth in such notice of redemption. If a
conditional notice of redemption is given and such prerequisites to the redemption and sufficient moneys are not received, such notice shall
be of no force and effect, the City shall not redeem such Obligations and the Paying Agent/Registrar shall give notice, in the manner in
which the notice of redemption was given, to the effect that the Obligations have not been redeemed.
BOOK-ENTRY-ONLY SYSTEM
This section describes how ownership of the Obligations is to be transferred and how the principal of and interest on the Obligations are
to be paid to and credited by the DTC while the Obligations are registered in its nominee name. The information in this section
concerning DTC and the Book-Entry-Only System has been provided by DTC for use in disclosure documents such as this Official
Statement. The City, the Financial Advisor and the Initial Purchasers believe the source of such information to be reliable, but take no
responsibility for the accuracy or completeness thereof.
The City, the Financial Advisor and the Initial Purchasers cannot and do not give any assurance that (1) DTC will distribute payments of
debt service on the Obligations, or redemption or other notices, to DTC Participants, (2) DTC Participants or others will distribute debt
service payments paid to DTC or its nominee (as the registered owner of the Obligations), or redemption or other notices, to the Beneficial
Owners, or that they will do so on a timely basis, or (3) DTC will serve and act in the manner described in this Official Statement. The
current rules applicable to DTC are on file with the Securities and Exchange Commission, and the current procedures of DTC to be
followed in dealing with DTC Participants are on file with DTC.
DTC will act as securities depository for the Obligations. The Obligations will be issued as fully-registered securities in the name of Cede
& Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered
certificate for each maturity will be issued for the Obligations, in the aggregate principal amount of such maturity, and will be deposited
with DTC.
DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking
organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within
the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of
the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity,
corporate and municipal debt issues, and money market instrument from over 100 countries that DTC’s participants (“Direct Participants”)
deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in
deposited securities through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This
eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers
and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The
Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation,
5
and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated
subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks,
trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly
or indirectly (“Indirect Participants”). Direct Participants and Indirect Participants are referred to collectively herein as “Participants”.
DTC is rated AA+ by Standard and Poor’s. The DTC Rules applicable to its Participants are on file with the Securities and Exchange
Commission. More information about DTC can be found at www.dtcc.com.
Purchases of Obligations under the DTC system must be made by or through Direct Participants, which will receive a credit for such
purchases on DTC's records. The ownership interest of each actual purchaser of each Obligation (“Beneficial Owner”) is in turn to be
recorded on the Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial
Owners are, however, expected to receive written confirmations providing details of the transaction as well as periodic statements of their
holdings, from the Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the
Obligations are to be accomplished by entries made on the books of Participants acting on behalf of Beneficial Owners. Beneficial Owners
will not receive certificates representing their ownership interests in the Obligations, except in the event that use of the book-entry system
described herein is discontinued.
To facilitate subsequent transfers, all Obligations deposited by Direct Participants with DTC are registered in the name of DTC’s
partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of
Obligations with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial
ownership. DTC has no knowledge of the actual Beneficial Owners of the Obligations; DTC’s records reflect only the identity of the
Direct Participants to whose accounts such Obligations are credited, which may or may not be the Beneficial Owners. The Participants will
remain responsible for keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by
Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory
or regulatory requirements as may be in effect from time to time. Beneficial Owners of Obligations may wish to take certain steps to
augment the transmission to them of notices of significant events with respect to the Obligations, such as redemptions, tenders, defaults,
and proposed amendments to the Obligation documents. For example, Beneficial Owners of Obligations may wish to ascertain that the
nominee holding the Obligations for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative,
Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to
them.
Redemption notices shall be sent to DTC. If less than all of the Obligations within a maturity in the series are being redeemed, DTC’s
practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Obligations unless authorized by a Direct
Participant in accordance with DTC’s Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as
possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose
accounts Obligations are credited on the record date (identified in a listing attached to the Omnibus Proxy).
Payments on the Obligations will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of
DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the
City and the Paying Agent/Registrar, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by
Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for
the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC
nor its nominee, the Paying Agent/Registrar, or the City, subject to any statutory or regulatory requirements as may be in effect from time
to time. Payment of redemption proceeds, principal and interest payments to Cede & Co. (or such other nominee as may be requested by
an authorized representative of DTC) is the responsibility of the City and the Paying Agent/Registrar. Disbursement of such payments to
Direct Participants will be the responsibility of DTC, and reimbursement of such payments to the Beneficial Owners will be the
responsibility of Participants.
DTC may discontinue providing its services as depository with respect to the Obligations at any time by giving reasonable notice to the
City and the Paying Agent/Registrar. Under such circumstances, in the event that a successor depository is not obtained, Obligations are
required to be printed and delivered.
The City may decide to discontinue use of the system of book-entry transfers through DTC (or a successor securities depository). In that event,
Obligations will be printed and delivered.
Use of Certain Terms in Other Sections of this Official Statement.In reading this Official Statement it should be understood that while the
Obligations are in the Book-Entry-Only System, references in other sections of this Official Statement to registered owners should be read to
include the person for which the Participant acquires an interest in the Obligations, but (i) all rights of ownership must be exercised through
DTC and the Book-Entry-Only System, and (ii) except as described above, notices that are to be given to registered owners under the
Ordinances will be given only to DTC.
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Information concerning DTC and the Book-Entry System has been obtained from DTC and is not guaranteed as to accuracy or completeness
by, and is not to be construed as a representation by the City or the Initial Purchasers.
PAYING AGENT/REGISTRAR
The initial Paying Agent/Registrar is The Bank of New York Mellon Trust Company, N.A., Dallas, Texas. In each Ordinance, the City retains
the right to replace the Paying Agent/Registrar. The City covenants to maintain and provide a Paying Agent/Registrar at all times until the
Obligations of either series are duly paid and any successor Paying Agent/Registrar must be a bank, trust company, financial institution, or other
entity duly qualified and legally authorized to serve as and perform the duties and services of Paying Agent/Registrar for the Obligations of
either series. Upon any change in the Paying Agent/Registrar for the Obligations, the City will promptly cause a written notice thereof to be
sent to each registered owner of the Obligations by United States mail, first class, postage prepaid, which notice will also include the address of
the new Paying Agent/Registrar.
TRANSFER,EXCHANGE AND REGISTRATION
In the event the Book-Entry-Only System should be discontinued, the Obligations may be transferred and exchanged on the registration books
of the Paying Agent/Registrar only upon presentation and surrender thereof to the Paying Agent/Registrar and such transfer or exchange will be
without expense or service charge to the registered owner, except for any tax or other governmental charges required to be paid with respect to
such registration, exchange and transfer. Obligations may be assigned by the execution of an assignment form on the respective Obligations or
by other instrument of transfer and assignment acceptable to the Paying Agent/Registrar. New Obligations will be delivered by the Paying
Agent/Registrar, in lieu of the Obligations being transferred or exchanged, at the corporate trust office of the Paying Agent/Registrar, or sent by
United States mail, first class, postage prepaid, to the new registered owner or his designee. To the extent possible, new Obligations issued in an
exchange or transfer of Obligations will be delivered to the registered owner or assignee of the registered owner in not more than three business
days after the receipt of the Obligations to be canceled, and the written instrument of transfer or request for exchange duly executed by the
registered owner or his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. New Bonds or Certificates registered and
delivered in an exchange or transfer will be in any integral multiple of $5,000 for any one maturity and for a like aggregate principal amount as
the Obligations surrendered for exchange or transfer. See “BOOK-ENTRY-ONLY SYSTEM” herein for a description of the system to be utilized
initially in regard to ownership and transferability of the Obligations. Neither the City nor the Paying Agent/Registrar will be required to
transfer or exchange any Obligation called for redemption, in whole or in part, within 45 days of the date fixed for redemption; provided,
however, such limitation of transfer will not be applicable to an exchange by the registered owner of the uncalled balance of an Obligation.
RECORD DATE FOR INTEREST PAYMENT
The record date (“Record Date”) for determining the person to whom the interest is payable on the Obligations on any interest payment date
means the close of business on the last business day of the preceding month.
In the event of a non-payment of interest on a scheduled payment date, and for 30 days thereafter, a new record date for such interest payment (a
“Special Record Date”) will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been
received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (a “Special Payment
Date,” which will be 15 days after the Special Record Date) will be sent at least five days prior to the Special Record Date by United States
mail, first class, postage prepaid, to the address of each Holder of a Obligation appearing on the registration books of the Paying
Agent/Registrar at the close of business on the day next preceding the date of mailing of such notice.
DEFEASANCE
The Ordinances provide for the defeasance of the Obligations when the payment of the principal of and premium, if any, on the Obligations,
plus interest thereon to the due date thereof (whether such due date be by reason of maturity, redemption, or otherwise), is provided by
irrevocably depositing with a paying agency, in trust (1) money sufficient to make such payment or (2) Defeasance Securities, certified by an
independent public accounting firm of national reputation to mature as to principal and interest in such amounts and at such times to insure the
availability, without reinvestment, of sufficient money to make such payment, and all necessary and proper fees, compensation and expenses of
the paying agent for the Obligations. The Ordinances provide that “Defeasance Securities” means (a) direct, noncallable obligations of the
United States of America, including obligations that are unconditionally guaranteed by the United States of America, (b) noncallable obligations
of an agency or instrumentality of the United States of America, including obligations that are unconditionally guaranteed or insured by the
agency or instrumentality and that are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its
equivalent, (c) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been
refunded and that rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent and (d)
any securities and obligations now or hereafter authorized by Texas law that are eligible to refund, retire or otherwise discharge obligations such
as the Obligations. In the Ordinances, the Pricing Officer is authorized to restrict such eligible securities and obligations as deemed
appropriate to accommodate requests from potential investors. The City has additionally reserved the right, subject to satisfying the
requirement of (1) and (2) above, to substitute other Defeasance Securities for the Defeasance Securities originally deposited, to reinvestment
the uninvested moneys on deposit for such defeasance and to withdraw for the benefit of the City moneys in excess of the amount required for
such defeasance.
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REMEDIES OF HOLDERS OF OBLIGATIONS
The Ordinances establish specific events of default with respect to the Obligations. If the City defaults in the payment of the principal of or
interest on the Obligations when due or the City defaults in the observance or performance of any of the covenants, conditions, or
obligations of the City, the failure to perform which materially, adversely affects the rights of the owners of the Obligations including but
not limited to, their prospect or ability to be repaid in accordance with the Ordinances, and the continuation thereof for a period of 60 days
after notice of such default is given by any owner to the City, the Ordinances provide that any registered owner is entitled to seek a writ of
mandamus from a court of proper jurisdiction requiring the City to make such payment or observe and perform such covenants,
obligations, or conditions. The issuance of a writ of mandamus may be sought if there is no other available remedy at law to compel
performance of the Obligations or the Ordinances and the City's obligations are not uncertain or disputed. The issuance of a writ of
mandamus is controlled by equitable principles, so rests with the discretion of the court, but may not be arbitrarily refused. There is no
acceleration of maturity of the Obligations in the event of default and, consequently, the remedy of mandamus may have to be relied upon
from year to year. The Ordinances do not provide for the appointment of a trustee to represent the interest of the holders of either series of
the Obligations upon any failure of the City to perform in accordance with the terms of the Ordinances, or upon any other condition and
accordingly all legal actions to enforce such remedies would have to undertaken of the initiative of, and be financed by, the registered
owners of the Obligations. On June 30, 2006, the Texas Supreme Court ruled in Tooke v. City of Mexia,197 S.W.3d 325 (Tex. 2006) that
a waiver of sovereign immunity in a contractual dispute must be provided for by statute in “clear and unambiguous” language. Because it is
unclear whether the Texas legislature has effectively waived the City’s sovereign immunity from a suit for money damages, registered
owners of either series of the Obligations may not be able to bring such a suit against City for breach of the Obligations of covenants
contained in either Ordinance. Even if a judgment against the City could be obtained, it could not be enforced by direct levy and execution
against the City’s property. Further, the registered owners cannot themselves foreclose on property within the City or sell property within
the City to enforce the tax lien on taxable property to pay the principal of and interest on the Obligations. Chapter 1371 of the Texas
Government Code, which pertains to the issuance of public securities by issuers such as the City, permits the City to waive sovereign
immunity in the proceedings authorizing its obligations. The City has relied upon Chapter 1371 in connection with the issuance of the
Obligations, but the City has not waived sovereign immunity.
The City is eligible to seek relief from its creditors under Chapter 9 of the U.S. Bankruptcy Code (“Chapter 9”). Although Chapter 9
provides for the recognition of a security interest represented by a specifically pledged source of revenues, the pledge of ad valorem taxes
in support of a general obligation of a bankrupt entity is not specifically recognized as a security interest under Chapter 9. Chapter 9 also
includes an automatic stay provision that would prohibit, without Bankruptcy Court approval, the prosecution of any other legal action by
creditors or registered owners of the Obligations of an entity which has sought protection under Chapter 9. Therefore, should the City avail
itself of Chapter 9 protection from creditors, the ability to enforce would be subject to the approval of the Bankruptcy Court (which could
require that the action be heard in Bankruptcy Court instead of other federal or state court); and the Bankruptcy Code provides for broad
discretionary powers of a Bankruptcy Court in administering any proceeding brought before it. The opinion of Bond Counsel will note that
all opinions relative to the enforceability of the Obligations are qualified with respect to the customary rights of debtors relative to their
creditors, principles of sovereign immunity and by general principles of equity which permit the exercise of judicial discretion.
TAX INFORMATION
AD VALOREM TAX LAW
The appraisal of property within the City is the responsibility of the Brazos Central Appraisal District (the “Appraisal District”). Excluding
agricultural and open-space land, which may be taxed on the basis of productive capacity, the Appraisal District is required under Title 1,
Texas Tax Code (referred to herein as the “Property Tax Code”) to appraise all property within the Appraisal District on the basis of 100%
of its market value and is prohibited from applying any assessment ratios. In determining the market value of property, different methods
of appraisal may be used, including the cost method of appraisal, the income method of appraisal and the market data comparison method
of appraisal, and the method considered most appropriate by the chief appraiser is to be used. State law further limits the appraised value of
a residence homestead for a tax year to an amount not to exceed the lesser of (1) the property’s market value in the most recent tax year in
which the market value was determined by the Appraisal District or (2) the sum of (a) 10% of the property’s appraised value for the
preceding tax year, (b) the appraised value of the property for the preceding tax year and (c) the market value of all new improvements to
the property. The value placed upon property within the Appraisal District is subject to review by an Appraisal Review Board, consisting
of three members appointed by the Board of Directors of the Appraisal District. The Appraisal District is required to review the value of
property within the Appraisal District at least every three years. The City may require annual review at its own expense, and is entitled to
challenge the determination of appraised value of property within the City by petition filed with the Appraisal Review Board.
Reference is made to the Property Tax Code, for identification of property subject to taxation; property exempt or which may be exempted
from taxation, if claimed; the appraisal of property for ad valorem taxation purposes; and the procedures and limitations applicable to the
levy and collection of ad valorem taxes.
Article VIII of the State Constitution (“Article VIII”) and State law provide for certain exemptions from property taxes, the valuation of
agricultural and open-space lands at productivity value, and the exemption of certain personal property from ad valorem taxation.
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Under Section 1-b, Article VIII, and State law, the governing body of a political subdivision, at its option, may grant: (1) An exemption of
not less than $3,000 of the market value of the residence homestead of persons 65 years of age or older; (2) An exemption to the disabled
from all ad valorem taxes thereafter levied by the political subdivision; and (3) An exemption of up to 20% of the market value of residence
homesteads. The minimum exemption under this provision is $5,000. In addition State law mandates a complete exemption for the
residential homestead of disabled veterans determined to be 100% disabled by the U.S. Department of Veterans Affairs. Further, the
surviving spouse of a deceased veteran who had received a disability rating of 100% is entitled to receive a residential homestead
exemption equal to the exemption received by the deceased spouse until such surviving spouse remarries.
In the case of residence homestead exemptions granted under Section 1-b, Article VIII, ad valorem taxes may continue to be levied against
the value of homesteads exempted where ad valorem taxes have previously been pledged for the payment of debt if cessation of the levy
would impair the obligation of the contract by which the debt was created.
State law and Section 2, Article VIII, mandate an additional property tax exemption for disabled veterans or the surviving spouse or
children of a deceased veteran who died while on active duty in the armed forces; the exemption applies to either real or personal property
with the amount of assessed valuation exempted ranging from $5,000 to a maximum of $12,000.
Article VIII provides that eligible owners of both agricultural land (Section 1-d) and open-space land (Section 1-d-1), including open-space
land devoted to farm or ranch purposes or open-space land devoted to timber production, may elect to have such property appraised for property
taxation on the basis of its productive capacity. The same land may not be qualified under both Section 1-d and 1-d-1. Article VIII, Section 1-n
of the Texas Constitution provides for an exemption from taxation for “goods-in-transit,” which are defined as (i) personal property acquired or
imported into the State and transported to another location inside or outside the State, (ii) stored under a contract for bailment in public
warehouses not in any way owned or controlled by the owner of the stored goods, and (iii) transported to another location inside or outside the
State within 175 days of the date the property was acquired or imported into the State. The exemption excludes oil, natural gas, petroleum
products, aircraft and special inventory, including motor vehicle, vessel and out-board motor, heavy equipment and manufactured housing
inventory. On December 8, 2011, the Council passed an ordinance approving taxation on certain goods-in-transit. After taking such official
action, the goods-in-transit remain subject to taxation by the taxing unit until the governing body of the taxing unit rescinds or repeals its
previous action to tax goods-in-transit. If, however, a taxing unit took official action prior to October 1, 2011 to tax goods-in-transit and
pledged the taxes imposed on the goods-in-transit for the payment of a debt, taxes may continue to be imposed on goods-in-transit until the debt
is discharged, if cessation of the imposition of the tax would impair the obligation of the contract by which the debt was created.
Nonbusiness personal property, such as automobiles or light trucks, are exempt from ad valorem taxation unless the governing body of a
political subdivision elects to tax this property. Boats owned as nonbusiness property are exempt from ad valorem taxation.
Article VIII, Section 1-j, provides for “freeport property” to be exempted from ad valorem taxation. Freeport property is defined as goods
detained in Texas for 175 days or less for the purpose of assembly, storage, manufacturing, processing or fabrication. Decisions to
continue to tax may be reversed in the future; decisions to exempt freeport property are not subject to reversal.
The City and the other taxing bodies within its territory may agree to jointly create tax increment financing zones within the City, under
which the tax values on property in the zone are “frozen” at the value of the property at the time of creation of the zone. The City also may
enter into tax abatement agreements to encourage economic development. Under the agreements, a property owner agrees to construct
certain improvements on its property. The City in turn agrees not to levy a tax on all or part of the increased value attributable to the
improvements until the expiration of the agreement. The abatement agreement could last for a period of up to 10 years. See “- TAX
ABATEMENT POLICY” for a discussion of the City’s economic development guidelines and criteria.
CONSTITUTIONAL AMENDMENT
In a statewide election held on September 13, 2003, voters approved an amendment to Section 1-b, Article VIII of the Texas Constitution,
that authorized a county, city, town or junior college district to establish an ad valorem tax freeze on residence homesteads of the disabled
and of the elderly and their spouses. City Council did not take action to establish the tax limitation. Voters within the City were authorized
to submit a petition signed by five percent of the registered voters of the City requiring the City Council to call an election to determine by
majority vote whether to establish the tax limitation.
A petition was submitted and an election was held on May 10, 2008. The voters of College Station voted to approve the ad valorem
tax freeze. The City can provide no assurances of the impact, if any, implementation of this ad valorem tax freeze may have on the
City’s finances.
Under the tax freeze, the total amount of ad valorem taxes imposed by the City on a homestead that receives the exemption may not be
increased while it remains the residence homestead of that person or that person's spouse who is disabled or sixty-five years of age or older,
except to the extent the value of the homestead is increased by improvements other than repairs. If a disabled or elderly person dies in a
year in which the person received a residence homestead exemption, the total amount of ad valorem taxes imposed on the homestead by the
taxing unit may not be increased while it remains the residence homestead of that person's surviving spouse if the spouse is fifty-five years
of age or older at the time of the person's death. In addition, the Texas Legislature by general law may provide for the transfer of all or a
proportionate amount of the tax limitation applicable to a person's homestead to be transferred to the new homestead of such person if the
person moves to a different residence within the taxing unit. Once established, the governing body of the taxing unit may not repeal or
rescind the tax limitation.
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EFFECTIVE TAX RATE AND ROLLBACK TAX RATE
By the later of September 27th or 60 days after the certified appraisal roll is delivered to the City, the City Council adopts a tax rate per
$100 taxable value for the current year. The tax rate consists of two components: (1) a rate for funding of maintenance and operation
expenditures, and (2) a rate for debt service.
Under the Property Tax Code, the City must annually calculate and publicize its “effective tax rate” and “rollback tax rate”. A tax rate
cannot be adopted by the City Council that exceeds the lower of the rollback tax rate or the effective tax rate until two public hearings are
held on the proposed tax rate following a notice of such public hearing (including the requirement that notice be posted on the City’s
website if City owns, operates or controls an internet website and public notice be given by television if the City has a free access to a
television channel) and the City Council has otherwise complied with the legal requirements for the adoption of such tax rate. If the
adopted tax rate exceeds the rollback tax rate the qualified voters of the City by petition may require that an election be held to determine
whether or not to reduce the tax rate adopted for the current year to the rollback tax rate.
“Effective tax rate” means the rate that will produce last year’s total tax levy (adjusted) from this year’s total taxable values (adjusted).
“Adjusted” means lost values are not included in the calculation of last year’s taxes and new values are not included in the year’s taxable values.
“Rollback tax rate” means the rate that will produce last year's maintenance and operation tax levy (adjusted) from this year's values
(adjusted) multiplied by 1.08 plus a rate that will produce this year's debt service from this year's values (unadjusted) divided by the
anticipated tax collection rate.
The Property Tax Code provides that certain cities and counties in the State may submit a proposition to the voters to authorize an
additional one-half cent sales tax on retail sales of taxable items. If the additional tax is levied, the effective tax rate and the rollback tax
rate calculations are required to be offset by the revenue that will be generated by the sales tax in the current year.
Reference is made to the Property Tax Code for definitive requirements for the levy and collection of ad valorem taxes and the calculation
of the various defined tax rates.
PROPERTY ASSESSMENT AND TAX PAYMENT
Property within the City is generally assessed as of January 1 of each year. Business inventory may, at the option of the taxpayer, be
assessed as of September. Effective January 1, 2012, oil and gas reserves are assessed on the basis of a valuation process that uses pricing
information contained in the most recent published Early Release Overview of the Annual Energy Outlook published by the United States
Energy Information Administration, as well as appraisal formulas developed by the State Comptroller of Public Accounts. Taxes become
due October 1 of the same year, and become delinquent on February 15 of the following year. Taxpayers 65 years old or older are
permitted by State law to pay taxes on homesteads in four installments with the first due before February 15 of each year and the final
installment due before August 15.
PENALTIES AND INTEREST
Charges for penalties and interest on the unpaid balance of delinquent taxes are made as follows:
Cumulative Cumulative
Month Penalty Interest Total
February 6%1%7%
March 7 2 9
April 8 3 11
May 9 4 13
June 10 5 15
July 12 6 18
After July, penalty remains at 12%, and interest increases at the rate of 1% each month. In addition, if an account is delinquent in July, an
amount up to 20% attorney's collection fee is added to the total tax penalty and interest charge. Under certain circumstances, taxes which
become delinquent on the homestead of a taxpayer 65 years old or older incur a penalty of 8% per annum with no additional penalties or
interest assessed. In general, property subject to the City's lien may be sold, in whole or in parcels, pursuant to court order to collect the
amounts due. Federal law does not allow for the collection of penalty and interest against an estate in bankruptcy. Federal bankruptcy law
provides that an automatic stay of action by creditors and other entities, including governmental units, goes into effect with the filing of any
petition in bankruptcy. The automatic stay prevents governmental units from foreclosing on property and prevents liens for post-petition
taxes from attaching to property and obtaining secured creditor status unless, in either case, an order lifting the stay is obtained from the
bankruptcy court. In many cases post-petition taxes are paid as an administrative expense of the estate in bankruptcy or by order of the
bankruptcy court.
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CITY APPLICATION OF PROPERTY TAX CODE
The City grants an exemption to the market value of the residence homestead of persons 65 years of age or older of $30,000. The City has
not granted an additional exemption of 20% of the market value of residence homesteads. Ad valorem taxes are not levied by the City
against the exempt value of residence homesteads for the payment of debt. The City does not tax nonbusiness personal property. The City
does permit split payments, but discounts are not allowed. The City does collect the additional one-half cent sales tax for reduction of ad
valorem taxes. The City has adopted a tax abatement policy (see “TAX INFORMATION - TAX ABATEMENT POLICY”).An election was
held on May 10, 2008 and the voters of College Station approved the ad valorem tax freeze for residential homesteads for disabled and age
65 or older persons. Brazos County collects the taxes for the City.
TAX ABATEMENT POLICY
The City has established tax abatement guidelines and criteria for economic development prospects in the City. In order to be eligible for
designation as a Reinvestment Zone and receive tax abatement, the planned improvement:
1.Must be expected to have an increased appraised ad valorem tax value of at least $1,000,000 based upon the Brazos Central
Appraisal District’s assessment of the eligible property.
2.Must be expected to prevent the loss of payroll or retain, increase or create a payroll on a permanent basis in the City.
The following factors among others should be considered in determining whether to grant tax abatement and, if so, the percentage of value
to be abated and the duration of the tax abatement:
1.Value of land and existing improvements, if any;
2.Type and value of proposed improvements;
3.Productive life of proposed improvements;
4.Number of existing jobs to be retained by proposed improvements;
5.Number of type of new jobs to be created by proposed improvements;
6.Amount of local payroll to be created;
7.Whether persons residing or projected to reside within the City will have the opportunity to fill the new jobs being created;
8.Amount of local taxes to be generated directly;
9.Amount of property tax base valuation which will be increased during term of abatement and after abatement, which shall include
a definitive commitment that such valuation shall not, in any case, be less than $1,000,000;
10.The costs to be incurred by the City to provide facilities or services directly resulting from the new improvements;
11.The amount of ad valorem taxes to be paid to the City during the abatement period considering (a) the existing values, (b) the
percentage of new value abated, (c) the abatement period, and (d) the value after expiration of the abatement period;
12.The population growth of the City that occurs directly as result of new improvements;
13.The types of public improvements, if any, to be made by the applicant seeking abatement;
14.Whether the proposed improvements compete with existing businesses to the detriment of the local economy;
15.The impact on the business opportunities of existing businesses;
16.The attraction of other new businesses to the area;
17.The overall compatibility with the zoning ordinances and comprehensive plan for the area; and/or
18.Whether the project is environmentally compatible with no negative impact on quality of life perceptions.
Neither a Reinvestment Zone nor abatement agreement shall be authorized if it is determined that:
1.There would be substantial adverse affect on the provision of government service or tax base;
2.The applicant has insufficient financial capacity;
3.Planned or potential use of the property would constitute a hazard to public safety, health or morals;
4.Violation of other code or laws;
5.The agreement was signed after the commencement of construction, alteration or installation of improvements related to the
project; or
6.Any other reason deemed appropriate by the City Council
ECONOMIC DEVELOPMENT
In the fall of 2013, the College Station City Council adopted an Economic Development Master Plan. This document represents the City’s
first such effort and joins the many other Master Plans, Neighborhood, Corridor, and District Plans created to aid in successful
implementation of the Comprehensive Plan. The Master Plan defines the goals and objectives of the City’s economic development efforts
and lays out strategies and detailed actions to achieve these goals and objectives. The plan specifically identified six strategic initiatives
that the City’s economic development program area should focus its efforts on: sustain and enhance high quality of life; support and
partner with Texas A&M University and the Texas A&M University System; support retail development; support and stimulate
biotechnology research and advanced manufacturing; support and stimulate health and wellness market; and support and stimulate sports,
entertainment, and hospitality market.
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Furthermore, the Plan also details how the plan should be monitored and updated over time, and identifies a series of formal economic
development policy guidelines that were also adopted. These guidelines state that in order to ensure the ongoing competitiveness of the
community, no State authorized incentive should immediately be discounted. The Texas Constitution and multiple State statutes identify
the role of economic development by both the State and its municipalities as a public purpose. While recognizing there is no standard
strategy, policy, or program for economic development, the Texas Legislature has created a vast array of tools that local governments have
at their disposal. The objective of these tools is to not only encourage development and diversification of the Texas economy, but to
simultaneously enhance the participating community’s overall quality of life. Incentives to consider may include, but not be limited to:
Chapter 380 financing; development fee rebates; enterprise zone program sponsorship; Freeport exemptions; infrastructure assistance; land
transactions; delayed annexation or limited purpose annexation; special districts; reinvestment zones (tax abatement or tax increment); and
fast track development process.
The City and the City of Bryan, Texas have also entered into an “Interlocal Cooperation and Joint Development Agreement” (the
“Interlocal Agreement”) in connection with implementing a joint economic development program known as the Joint Research Valley
BioCorridor Development Project (the “Project”). Under the terms of the Interlocal Agreement, the City will make funds available to the
City of Bryan, and the City of Bryan will make funds available to the City, for certain defined public infrastructure projects that are
intended to enhance development of the Project. The obligations of each city under the Interlocal Agreement shall not constitute a debt for
purposes of any provision of the State Constitution, and are intended to be paid from the general revenues of each city.
[Remainder of Page Intentionally Left Blank]
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TABLE 1 -VALUATION,EXEMPTIONS AND GENERAL OBLIGATION DEBT
2016/2017 Market Valuation Established by Brazos CentralAppraisalDistrict 7,901,230,529$
(excluding exempt property)
Less Exemptions/Reductions at 100% Market Value:
Productivity Loss 111,870,902$
Over 65 Homestead Exemptions 89,462,038
Community Housing Development Organization 9,383,418
Member Armed Service Surviving Spouse 585,429
Freeport 11,346,209
Disabled Veteran 23,215,835
Homestead 22,886,151
Abatements 8,516,376 277,266,358
2016/2017 Taxable Assessed Valuation 7,623,964,171$(1)
Debt Payable from Ad Valorem Taxes (as of 2/15/2017)
GeneralObligation Improvement Bonds, Series 2008 1,240,000
Certificates of Obligation, Series 2008 3,705,000
GeneralObligation Refunding Bonds, Series 2009 1,340,000
Certificates of Obligation, Series 2009*(2)9,850,000
GeneralObligation Improvement Bonds, Series 2009*(2)1,020,000
GeneralObligation Refunding Bonds, Series 2010 16,720,000
Certificates of Obligation, Series 2010 2,120,000
GeneralObligation Improvement Bonds, Series 2010 14,340,000
Certificates of Obligation, Series 2011 6,205,000
GeneralObligation Improvement Bonds, Series 2011 225,000
Certificates of Obligation, Series 2012 13,355,000
GeneralObligation Improvement and Refunding Bonds, Series 2012 12,990,000
Certificates of Obligation, Series 2013 8,735,000
GeneralImprovement and Refunding Bonds, Series 2013 15,335,000
Certificates of Obligation, Series 2014 29,450,000
GeneralImprovement and Refunding Bonds, Series 2014 27,865,000
Certificates of Obligation, Series 2016 23,675,000
GeneralImprovement and Refunding Bonds, Series 2016 38,420,000
The Bonds*24,960,000
The Certificates*(3)60,980,000 312,530,000
Less:Self Supporting Debt(4)140,365,000$
Less:Interest and Sinking Fund as of 9/30/2016 4,793,558
Net Debt Payable from Ad Valorem Taxes 167,371,442$
Ratio of Net Debt Payable from Ad Valorem Taxes to Taxable Assessed Valuation(5)2.20%
Per Capita Taxable Assessed Valuation - $69,399
Per Capita Net Funded Debt - $1,524 (5)
2017 Estimated Population - 109,857
* Preliminary, subject to change. See "CONDITIONS OF SALE - ADVANCED ADJUSTMENT OF PRINCIPAL AMOUNT AND/OR TYPES OF BIDS" and " - POST
BID MODIFICATION" in the Notice of Sale and Bidding Instructions.
(1)Certified taxable assessed valuation for tax year 2016 as reported by the Brazos Central Appraisal District. This amount is subject to change during
ensuing year.
(2)Excludes the Refunded Obligations.
(3)The debt service on a portion of the Certificates will be internally allocated by the City as being payable from the surplus revenues from the respective
enterprise funds. Although the City expects to pay for this portion of the Certificates with surplus enterprise funds, the Certificates are secured solely
by a pledge of ad valorem taxes and by a pledge of combined utility system surplus net revenues limited to $1,000. See “THE OBLIGATIONS-
SECURITY AND SOURCE OF PAYMENT.” There is no guarantee that payments from these enterprise funds will be made. If payments are not made from
the enterprise funds, the City will be required to levy ad valorem taxes in amounts sufficient to make such payments.
(4)In the past, the City has sold certificates of obligation to finance projects for the City’s water and sewer system, and electric system and has internally
allocated portions of this debt as payable from the respective enterprise funds. The self-supporting amounts listed above are projections of debt that is
expected to be retired by the City based on actual historical payments from these funds to pay for debt service the outstanding certificates of obligation.
There is no guarantee that payments from these funds will continue in the future. Includes a portion of the Obligations. See “DEBT INFORMATION –
TABLE 10 – SELF SUPPORTING DEBT.”
(5)Net of Interest and Sinking Fund as of September 30, 2016.
13
TABLE 2 -TAXABLE ASSESSED VALUATIONS BY CATEGORY
Taxable Appraised Value, FiscalYear Ending September 30,
2017 2016 2015
% of % of % of
Category Amount Total Amount Total Amount Total
Real, Residential, Single-Family 4,470,806,990$56.58%3,942,774,761$53.35%3,657,836,541$53.15%
Real, Residential, Multi-Family 1,275,467,653 16.14%1,326,289,539 17.95%1,296,417,661 18.84%
Real, Vacant Lots/Tracts 158,722,669 2.01%142,089,823 1.92%141,077,944 2.05%
Real, Acreage (Land Only)87,626,228 1.11%92,882,946 1.26%109,675,903 1.59%
Real, Farm and Ranch Improvements 113,059,943 1.43%108,202,479 1.46%74,289,622 1.08%
Real, Commercial/Industrial 1,340,756,747 16.97%1,330,864,915 18.01%1,204,879,922 17.51%
Real, Oil, Gas & Other MineralReserves 5,036,746 0.06%10,793,941 0.15%3,227,032 0.05%
Realand Tangible Personal, Utilities 40,325,800 0.51%30,944,850 0.42%37,673,140 0.55%
Tangible Personal, Business 371,077,880 4.70%369,625,180 5.00%330,937,290 4.81%
Tangible Personal, Other 1,988,130 0.03%2,024,340 0.03%2,096,570 0.03%
RealProperty Inventory 23,079,643 0.29%17,672,671 0.24%13,256,668 0.19%
SpecialInventory 13,282,100 0.17%15,787,080 0.21%10,534,560 0.15%
TotalAppraised Value Before Exemptions 7,901,230,529$100.00%7,389,952,525$100.00%6,881,902,853$100.00%
Less: TotalExemptions/Reductions 277,266,358 227,214,245 227,302,019
Taxable Assessed Value 7,623,964,171$7,162,738,280$6,654,600,834$
% of % of
Category Amount Total Amount Total
Real, Residential, Single-Family 3,449,698,417$53.49%3,277,087,380$53.12%
Real, Residential, Multi-Family 1,121,645,054 17.39%1,070,207,772 17.35%
Real, Vacant Lots/Tracts 142,441,840 2.21%118,939,480 1.93%
Real, Acreage (Land Only)111,056,120 1.72%171,879,670 2.79%
Real, Farm and Ranch Improvements 76,318,782 1.18%22,726,592 0.37%
Real, Commercial/Industrial 1,159,961,447 17.99%1,121,943,869 18.19%
Real, Oil, Gas & Other MineralReserves 3,329,602 0.05%5,391,913 0.09%
Realand Tangible Personal, Utilities 35,261,190 0.55%35,139,050 0.57%
Tangible Personal, Business 318,648,040 4.94%309,881,970 5.02%
Tangible Personal, Other 2,138,640 0.03%2,217,020 0.04%
RealProperty Inventory 18,049,612 0.28%23,728,660 0.38%
SpecialInventory 10,293,530 0.16%8,851,423 0.14%
Exempt Property Adjustment -0.00%794,503 0.01%
TotalAppraised Value Before Exemptions 6,448,842,274$100.00%6,168,789,302$100.00%
Less: TotalExemptions/Reductions 217,723,264 224,476,315
Taxable Assessed Value 6,231,119,010$5,944,312,987$
Taxable Appraised Value, FiscalYear Ending September 30,
20132014
NOTE: Valuations shown are certified taxable assessed values reported by the Brazos Central Appraisal District to the State Comptroller
of Public Accounts. Certified values are subject to change throughout the year as contested values are resolved and the Appraisal District
updates records.
14
TABLE 3 -VALUATION AND GENERAL OBLIGATION DEBT HISTORY
Ratio of Net
Fiscal Taxable G.O. Tax Debt
Year Taxable Assessed to Taxable Net G.O.
Ended Estimated Assessed Valuation Net G.O.Assessed Tax Debt
9/30 Population(1)Valuation(2)Per Capita Tax Debt(3)Valuation(4)Per Capita
2012 96,603 5,738,615,002$59,404$96,390,000$1.68%998$
2013 97,534 5,944,312,987 60,946 96,750,000 1.63%992
2014 99,918 6,231,119,010 62,362 88,100,000 1.41%882
2015 102,117 6,654,600,834 65,166 101,630,000 1.53%995
2016 106,465 7,162,738,280 67,278 118,350,000 1.65%1,112
2017 109,936 7,623,964,171 (4)69,349 172,165,000 (5)2.26%(5)1,566 (5)
(1)Source: The City.
(2)As reported by the Brazos Central Appraisal District; subject to change during the ensuing year.
(3)Payable from ad valorem taxes. Does not include self-supporting debt.
(4)Certified taxable assessed valuation for tax year 2016 as reported by the Brazos Central Appraisal District. This amount is subject to change during
ensuing year.
(5)Projected, includes the Obligations and excludes the Refunded Obligations. Preliminary, subject to change.
TABLE 4 -TAX RATE,LEVY AND COLLECTION HISTORY
FiscalYear General Interest and % Current % Total
Ended 9/30 Tax Rate Fund Sinking Fund Tax Levy Collections Collections
2012 0.4380$0.2365$0.2015$24,979,685$99.13%100.09%
2013 0.4307 0.2351 0.1956 25,503,096 99.31%100.30%
2014 0.4260 0.2329 0.1931 26,407,915 99.26%100.15%
2015 0.4525 0.2594 0.1931 29,803,314 98.70%99.17%
2016 0.4525 0.2594 0.1931 32,065,351 98.95%100.03%
2017 0.4725 0.2772 0.1953 36,653,864 89.62%(1)89.70%(1)
(1)Collections as of March 15, 2017. A portion of the City's taxpayer base has elected to provide split payments to the City which will be due in part on
June 30, 2017.
TABLE 5 -TEN LARGEST TAXPAYERS
2016/2017 % of Total
Taxable Taxable
Nature Assessed Assessed
Name of Taxpayer of Property Valuation Valuation
CPP College Station I LLC Apartments 61,727,000$0.81%
College Station HospitalL.P.Medical 57,451,650 0.75%
Post Oak Mall- College Station, LLC Retail 57,260,420 0.75%
Woodridge College Station Phase II LLC Retail 54,965,810 0.72%
SHP - The Callaway House LP Apartments 53,134,907 0.70%
Woodridge College Station Phase I LLC Retail 52,800,680 0.69%
Midway Hospitality LP Retail 51,395,920 0.67%
Culpepper Family L.P.Housing 47,459,390 0.62%
Southwest Meadows Point LP Apartments 45,867,137 0.60%
TAM The Rise Property LLC Apartments 45,454,261 0.60%
527,517,175$6.92%
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GENERAL OBLIGATION DEBT LIMITATION . . . No general obligation debt limitation is imposed on the City under current State law or the
City's Home Rule Charter (see “THE OBLIGATIONS - TAX RATE LIMITATION”).
TABLE 6 -TAX ADEQUACY
Net Maximum Tax Supported Principaland Interest Requirements (2018)…………………………………………………………………………………………….19,357,252$(1)
$0.25647 Tax Rate at 99% Collection Produces ……………………………………………………………………………………………………………………………………….19,357,649$
Net Average Tax Supported Principaland Interest Requirements (2017-2037)……………………………………………………………………………………….12,223,259$(1)
$0.16195 Tax Rate at 99% Collection Produces ……………………………………………………………………………………………………………………………………….12,223,540$
(1)Includes the Obligations and excludes the Refunded Obligations and self supporting debt. Interest has been estimated for the purpose of illustration.
Preliminary, subject to change.
TABLE 7 -ESTIMATED OVERLAPPING DEBT
Expenditures of the various taxing entities within the territory of the City are paid out of ad valorem taxes levied by such entities on
properties within the City. Such entities are independent of the City and may incur borrowings to finance their expenditures. This
statement of direct and estimated overlapping ad valorem tax debt (“Tax Debt”) was developed by the City from information obtained from
the Brazos Central Appraisal District. Except for the amounts relating to the City, the City has not independently verified the accuracy or
completeness of such information, and no person should rely upon such information as being accurate or complete. Furthermore, certain of
the entities listed may have issued additional debt since the date hereof, and such entities may have programs requiring the issuance of
substantial amounts of additional debt, the amount of which cannot be determined. The following table reflects the estimated share of
overlapping Tax Debt of the City.
City's
Total Estimated Overlapping
2016/2017 Taxable 2016 Tax Debt as %Tax Debt as
Assessed Value Tax Rate of 2/15/2017 Applicable of 2/15/2017
City of College Station 7,623,964,171$(1)0.4525 172,165,000$(2)100.00%172,165,000$
Brazos County 14,622,516,371 0.4850 85,435,000 47.07%40,214,255
Bryan ISD 6,307,403,104 1.3500 231,015,000 2.05%4,735,808
College Station ISD 7,951,667,826 1.3960 377,605,000 88.50%334,180,425
TotalDirect and Overlapping Funded Tax Debt 551,295,487$
Ratio of Direct and Overlapping Funded Tax Debt to Taxable Assessed Valuation 7.231%
Per Capita Overlapping Funded Tax Debt 5,018$
Source: Municipal Advisory Council of Texas.
(1)Certified taxable assessed valuation for tax year 2016 as reported by the Brazos Central Appraisal. This amount is subject to change during ensuing
year.
(2)Projected, includes the Obligations and excludes self supporting debt. Preliminary, subject to change.
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DEBT INFORMATION
TABLE 8 -PRO-FORMA AD VALOREM TAX DEBT SERVICE REQUIREMENTS*
TotalNet
Year Total Less:The Less:Tax Supported
End Outstanding Refunded Self-Supporting Debt Service
9/30 Debt Obligations*Principal Interest(1)Total Principal Interest(1)Total Debt Service(2)Requirements(2)
2017 32,270,837$206,613$16,823,045$15,241,179$
2018 29,104,499 413,226 470,000$1,151,216 1,621,216 3,415,000$2,600,118$6,015,118$16,970,355 19,357,252
2019 27,459,044 413,226 560,000 1,027,813 1,587,813 2,275,000 2,232,369 4,507,369 16,232,345 16,908,654
2020 27,486,822 413,226 590,000 999,063 1,589,063 2,405,000 2,115,369 4,520,369 16,297,276 16,885,751
2021 25,867,554 413,226 615,000 968,938 1,583,938 2,525,000 1,992,119 4,517,119 15,944,825 15,610,559
2022 23,540,834 413,226 650,000 937,313 1,587,313 2,645,000 1,862,869 4,507,869 13,989,813 15,232,977
2023 22,582,261 1,799,042 1,960,000 872,063 2,832,063 2,775,000 1,727,369 4,502,369 12,872,743 15,244,908
2024 21,873,974 2,004,001 2,270,000 766,313 3,036,313 2,915,000 1,585,119 4,500,119 12,547,645 14,858,759
2025 20,168,467 2,019,380 2,400,000 649,563 3,049,563 2,790,000 1,442,494 4,232,494 12,012,744 13,418,400
2026 18,934,248 2,018,653 2,520,000 526,563 3,046,563 2,940,000 1,299,244 4,239,244 11,398,074 12,803,328
2027 16,250,603 2,022,703 2,655,000 397,188 3,052,188 3,090,000 1,148,494 4,238,494 10,038,626 11,479,956
2028 14,551,445 267,903 985,000 316,038 1,301,038 2,875,000 1,028,119 3,903,119 8,858,159 10,629,541
2029 12,249,464 266,045 1,010,000 286,113 1,296,113 2,965,000 940,519 3,905,519 7,773,058 9,411,992
2030 10,049,866 -920,000 257,163 1,177,163 3,045,000 850,369 3,895,369 5,864,463 9,257,935
2031 8,387,955 -950,000 228,519 1,178,519 3,145,000 755,553 3,900,553 5,652,602 7,814,425
2032 7,796,050 -980,000 197,750 1,177,750 3,245,000 653,681 3,898,681 5,054,744 7,817,738
2033 6,383,600 -1,015,000 165,331 1,180,331 3,350,000 546,513 3,896,513 3,891,669 7,568,775
2034 5,046,288 -1,050,000 131,119 1,181,119 3,465,000 433,603 3,898,603 3,150,797 6,975,213
2035 1,971,625 -1,085,000 95,091 1,180,091 3,585,000 314,634 3,899,634 1,326,772 5,724,579
2036 1,974,175 -1,120,000 57,881 1,177,881 3,700,000 191,700 3,891,700 1,325,944 5,717,812
2037 --1,155,000 19,491 1,174,491 3,830,000 64,631 3,894,631 910,103 4,159,019
333,949,608$12,670,470$24,960,000$10,050,529$35,010,529$60,980,000$23,784,884$84,764,884$198,935,800$242,118,751$
The Bonds*The Certificates*
* Preliminary, subject to change. See "CONDITIONS OF SALE - ADVANCED ADJUSTMENT OF PRINCIPAL AMOUNT AND/OR TYPES OF BIDS " and " - POST BID MODIFICATION" in the Notice of Sale and
Bidding Instructions.
(1)Interest has been estimated at current market rates for the purpose of illustration.
(2)In the past, the City has sold certificates of obligation to finance projects for the City’s water and sewer system, and electric system and has internally allocated portions of this debt as payable from the
respective enterprise funds. The self-supporting amounts listed above are projections of debt that is expected to be retired by the City based on actual historical payments from these funds to pay for debt
service the outstanding certificates of obligation. There is no guarantee that payments from these funds will continue in the future. Includes a portion of the Obligations. See “TABLE 10 –SELF
SUPPORTING DEBT”and the accompanying footnotes.
17
TABLE 9 -INTEREST AND SINKING FUND BUDGET PROJECTION
TotalNet Tax Supported Debt Service Requirements, FiscalYear Ending September 30, 2017
(1)15,241,179$
Interest and Sinking Fund, September 30, 2016
(2)4,793,558$
Calcuated Interest and Sinking Fund Tax Levy @ 99% Collection 14,743,650
Budgeted Investment Earnings 25,000
Budgeted Transfers 258,705 19,820,913
Estimated Balance, September 30, 2017 4,579,734$
__________
(1) Excludes self-supporting debt. Includes the Obligations and excludes the Refunded Obligations. Preliminary, subject to change.
(2) The outstanding portion of the Certificates of Obligation, Series 2009, supported by the Convention Center, have been paid for in full as one transfer
in the amount of 157,979.48 to the Interest and Sinking Fund.That amount will be used to pay off future payments of the Certificates of Obligation,
Series 2009 supported by the Convention Center.
TABLE 10 –SELF-SUPPORTING DEBT*
Year Total
End Electric Wastewater Water Convention Parking Self-Supporting
9/30 Fund(1)Fund (2)Fund(3)Center(4)Landfill(5)Garage(6)Debt Service (7)
2017 5,821,929 4,490,350 5,671,753 43,039 325,498 470,475 16,823,045
2018 5,797,116 4,514,145 6,051,999 12,970 369,387 224,738 16,970,355
2019 5,608,726 4,211,044 5,812,685 12,493 364,923 222,475 16,232,345
2020 5,632,373 4,228,341 5,839,148 7,205 365,810 224,400 16,297,276
2021 5,610,889 4,179,499 5,781,423 7,005 366,010 -15,944,825
2022 5,583,306 3,277,044 4,756,848 6,805 365,810 -13,989,813
2023 5,291,351 2,934,304 4,301,023 6,580 339,485 -12,872,743
2024 4,949,689 2,918,519 4,331,248 6,330 341,860 -12,547,645
2025 4,643,793 2,661,714 4,357,673 6,080 343,485 -12,012,744
2026 4,382,440 2,666,371 3,999,073 5,830 344,360 -11,398,074
2027 3,822,527 2,449,515 3,416,519 5,580 344,485 -10,038,626
2028 3,716,792 2,078,342 2,693,473 5,343 364,210 -8,858,159
2029 3,261,339 1,926,744 2,211,580 5,115 368,280 -7,773,058
2030 2,296,493 1,928,543 1,639,428 ---5,864,463
2031 2,103,384 1,909,081 1,640,138 ---5,652,602
2032 1,746,850 1,672,338 1,635,556 ---5,054,744
2033 1,196,288 1,261,681 1,433,700 ---3,891,669
2034 599,625 1,116,631 1,434,541 ---3,150,797
2035 -337,338 989,434 ---1,326,772
2036 -336,706 989,238 ---1,325,944
2037 -340,653 569,450 ---910,103
72,064,909$51,438,900$68,986,477$130,374$4,603,602$1,142,088$198,935,800$
______________
* Preliminary, subject to change.
(1)Includes a portion of the City’s Certificates of Obligation, Series 2008, Series 2009, Series 2010, Series 2011, Series 2012, Series 2013, Series 2014
and a portion of the General Obligation Refunding Bonds, Series 2010, General Obligation Improvement and Refunding Bonds, Series 2012, Series
2013, Series 2014, and Series 2016. Includes a portion of the Obligations and excludes a portion of the Refunded Obligations.
(2)Includes a portion of the City’s Certificates of Obligation, Series 2008, Series 2010, Series 2011, Series 2012, Series 2013, Series 2014, and a portion
of the General Obligation Refunding Bonds, Series 2010, General Obligation Improvement and Refunding Bonds, Series 2012, Series 2013, Series
2014, Series 2016. Includes a portion of the Obligations and excludes a portion of the Refunded Obligations.
(3)Includes a portion of the City’s Certificates of Obligation, Series 2008, Series 2008, Series 2009, Series 2012, Series 2013, Series 2014, Series 2016,
and a portion of the General Obligation Refunding Bonds, Series 2010, General Obligation Improvement and Refunding Bonds, Series 2012, Series
2013, Series 2014, and Series 2016. Includes a portion of the Obligations and excludes a portion of the Refunded Obligations.
(4)Includes a portion of the City’s Certificates of Obligation, Series 2009. The City has transferred to the Interest and Sinking Fund $157,979.48 from
the Convention Center fund to pay the debt service shown in this column. Includes a portion of the Obligations and excludes a portion of the
Refunded Obligations.
(5)Includes a portion of the City's Certificates of Obligation, Series 2009. Includes a portion of the Obligations and excludes a portion of the Refunded
Obligations.
(6)Includes a portion of the City’s General Obligation Refunding Bonds, Series 2009.
(7)The debt service described in this table is general obligation debt for which repayment is provided from revenues from other sources. It is the City’s
current policy to provide these payments from such sources. There is no assurance that the use of these sources to make these payments will continue
in the future. If payments are not made from such sources in the future, the difference will be paid for with ad valorem taxes
18
TABLE 11 -AUTHORIZED BUT UNISSUED TAX BONDS
Date of Amount Issued
Authorization Purpose Authorized To Date The Bonds Unissued
1/24/1984 (1)Fire Substation Building 700,000$-$-$700,000$
1/24/1984 (1)Street Improvements 6,325,000 5,825,000 -500,000
11/4/2003 Municipal Complex Improvements 7,610,000 3,955,000 -3,655,000
11/4/2008 Street Improvements 48,785,000 35,095,000 13,690,000 -
11/4/2008 Library Improvements 8,385,000 4,685,000 3,700,000 -
11/4/2008 Park Improvements 12,790,000 12,145,000 -645,000
84,595,000$61,705,000$17,390,000$5,500,000$
_______________
(1) Contains projects which may have been completed or abandoned; therefore, the remaining authorized but unissued bonds are not likely to ever be
issued.
ANTICIPATED ISSUANCE OF GENERAL OBLIGATION DEBT
The City has no firm plans for the issuance of additional general obligation debt payable from ad valorem taxes within the next twelve months.
OTHER OBLIGATIONS
Currently, the City has no outstanding capital leases or loans.
PENSION FUND
The City provides pension benefits for all of its full-time employees through the Texas Municipal Retirement System (“TMRS”), a
State-wide administered pension plan. The City makes annual contributions to the plan equal to the amounts accrued for pension expense.
(For more detailed information concerning the retirement plan, see “APPENDIX B - EXCERPTS FROM THE ANNUAL FINANCIAL REPORT” -
Section V - Note D.)
The City recently received the contribution rates for Plan Year 2015 from TMRS as determined by the December 31, 2013 actuarial valuation.
The City’s contribution rate for January 1, 2016 will be 12.78%. On September 13, 2012, Council approved revisions to the City's TMRS
Ordinance. The revisions include a reduction in the updated service credits (USC) for current employees and a reduction in the Annuity
Increase Cost of Living Adjustment (COLA) for retirees. The City's contributions rate of 13.53% became effective January 1, 2014. The
funding status as of December 31, 2015 is as follows:
12/31/2015
ActuarialValue of Assets 216,491,588$
ActuarialAccrued Liability (AAL)252,321,945
Percent of Pension Benefit Obligation 85.80%
Unfunded ActuarialAccrued Liability (UAAL)35,830,357$
AnnualCovered Payroll 50,723,075
Percent of Covered Payroll 70.64%
Estimated Employer Contribution 6,736,024$
OTHER POST EMPLOYMENT BENEFITS
PROGRAM DESCRIPTION ...In addition to pension benefits, as required by state laws and defined by City policy, the City makes available
postretirement medical, dental, vision, drug and life insurance benefits to all employees who meet TMRS retirement qualifications, retire
from the City and who enroll themselves and their eligible dependent(s) on or before the effective date of their retirement through the
City’s single-employer defined benefit other post-employment benefit (OPEB) plan. The life insurance plan provides a $10,000 fully
insured death benefit coverage upon retirement which ceases upon attainment of age 65 for retirees. So long as monthly premium
payments are made, the healthcare plan provides insurance to eligible retirees, their spouses and dependents through the City’s group
health insurance plan, which covers both active and retired members, until attainment of age 65. Benefit provisions as well as retiree
premium contributions are established by management.
19
The City determines the employer and participant contribution rates annually based on recommendations of City staff and the City’s
consultant. All medical, dental, vision and drug care benefits are provided through the City’s self-insured health plan. The benefit levels
are the same as those afforded to active employees. Life insurance for eligible retirees is paid entirely by the City.
During fiscal year 2016, 61 former employees were covered under this arrangement, with claims less retiree contributions totaling
-$705,451.
ANNUAL OPEB COST AND NET OPEB OBLIGATION ...The City’s annual OPEB cost is based on the annual required contribution (ARC)
of the City, an amount actuarially determined in accordance with the parameters of GASB Statement 45. Despite the apparent implications
of the term ARC, the City is not required to contribute the ARC to the plan each year, Instead, the ARC provides a basis for evaluating
whether the City’s contributions for OPEB are adequate to fund the benefits during the working lifetime of current employees (i.e., the
normal cost) and to amortize existing unfunded obligations (i.e., the obligations for current retirees plus that portion of the current
employees’ obligations that are attributed to past service) in a systematic manner over the amortization period prescribed by GASB.
The annual OPEB cost is the annual accounting expense recorded on the City’s Statement of Revenues, Expenses and Changes in Net
Assets and on the City’s Statement of Activities. The annual OPEB cost is equal to (1) the ARC for the current fiscal year, plus (2) interest
on the Net OPEB Obligation at the beginning of the year, reduced by (3) an adjustment to the ARC which is equal to an amortization of the
beginning of the year Net OPEB Obligation.
2013 2014 2015 2016
AnnualRequired Contribution (ARC)1,449,844$1,449,844$1,810,895$1,910,536$
Interest on Net OPEB Obligations 333,710 397,569 400,494 456,941
Adjusted to the ARC (413,492)(492,618)(522,847)(596,541)
AnnualOPEB Cost 1,370,062 1,354,795 1,688,542 1,770,936
Contributions Made (92,888)(406,326)(434,136)(705,451)
Increase in net OPEB obligation 1,277,174$948,469$1,254,406$1,065,485$
Net OPEB Obligation, beginning of year 6,674,204 7,951,378 8,899,847 10,154,253
Net OPEB Obligation, end of year 7,951,378$8,899,847$10,154,253$11,219,738$
Percentage
Fiscal Annual Actual of Annual
Year OPEB Contribution OPEB Cost Net OPEB
Ended 9/30 Costs Made Contribution Obligation
2013 1,370,062 92,888 6.78%7,951,378
2014 1,354,795 406,326 29.99%8,899,847
2015 1,688,542 434,136 25.71%10,154,253
2016 1,770,936 705,451 39.83%11,219,738
Three-Year Trend Information
Generally, the Net OPEB Obligation is the cumulative difference since the effective date of GASB 45 between the annual OPEB cost and
the employer’s contributions to the plan including the OPEB liability/(asset) at transition, if any. Whenever the City contributes an amount
less than the annual OPEB cost, this shortfall will increase the City’s Net OPEB Obligation.
ACTUARIAL METHODS AND ASSUMPTIONS ...Actuarial valuations involve estimates of the value of reported amounts and assumptions
about the probability of events far into the future. Actuarially determined amounts are subject to continual revision as actual results are
compared to past expectations and new estimates are made about the future.
The required schedule of funding progress immediately following the notes to the financial statements presents multi-year trend
information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability
for benefits. GASB No. 45 calculations are based on the types of benefits provided under the terms of the substantive plan at the time of
each valuation and on the pattern of sharing of costs between the employer and plan participants to that point. In addition, the projection
of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations
on the pattern of cost sharing between the employer and plan participants in the future.
Actuarial calculations reflect a long-term perspective. In addition, consistent with that perspective, actuarial methods and assumptions
used in developing the amounts in this report include techniques that are designed to reduce short-term volatility in actuarial accrued
liabilities.
20
The required contribution rates were determined as part of the October 1, 2015 actuarial valuation. Significant methods and assumptions
follow:
Actuarialvaluation date 10/1/2015
Asset Valuation Method:Market
ActuarialCost Method:Projected Unit Credit
ActuarialAssumption:
Investment Rate of Return*4.50%
*Includes Inflation at:3.50%
Projected Salary Increases N/A
AnnualHealthcare Trend Rates: 8.00% in FYE 2016 declining
to 5.25% in FYE 2021
Amortization Method:LevelDollar
Remaining Amortization Period:30 year open period
FUNDING STATUS AND FUNDING PROGRESS ...The Schedule of Funding Progress presents information as of the current valuation date and
the two preceding valuation dates. As of the date of this financial statement, the City has had three valuations
Unfunded Annual UAAL as
Actuarial Actuarial Actuarial Actuarial Covered Percentage of
Valuation Value of Accrued Liability Funded Accrued Payroll Covered
Date Assets (AAL)Ratio Liability (AAL)(Fiscal Year)Payroll
10/1/2010 -$9,356,116$0.00%9,356,116$42,298,776$22.12%
10/1/2012 -10,897,037 0.00%10,897,037 44,000,000 24.77%
10/1/2014 -15,013,856 0.00%15,013,856 44,000,000 34.12%
There are factors that affect the ability to compare amounts reported from one actuarial valuation date to the next. The assumptions that
have been changed since the previous valuation are:
-the Discount Rate has been updated to reflect changes in the allocation of assets of the employer and the expected return on
such assets;
-the Assumed Per Capita Health Benefit Costs and Assumed Expenses for retirees and dependents have been updated to
reflect changes in claims and expense expectations; and
-the Health Benefit Cost Trend and Expense Trend have been updated to reflect changes in short-term expectations of the
annual rate of increase of the Assumed Per Capita Health Benefit Costs.
The City has had three separate valuations, one of which used the October 1, 2010 valuation date, October 1, 2012 and October 1, 2014
valuation date. The October 1, 2010 valuation date was used to develop results for the fiscal year ending September 30, 2012, the October
1, 2012 valuation date was used to develop results for the fiscal years ending September 30, 2013 and 2014. The plan was changed
effective January 1, 2012 to eliminate post-65 medical coverage and was changed effective January 1, 2013 to eliminate one of the PPO
benefit options. While the plan typically undergoes a biennial valuation, pursuant to paragraph 12 of GASB 45, a new valuation must be
performed if there are significant changes to the plan since the previous valuation. The October 1, 2014 valuation date was used to develop
results for the fiscal years ending September 30, 2015 and 2016, as part of the plan’s biennial valuation.
21
FINANCIAL INFORMATION
TABLE 12 -GENERAL FUND REVENUES AND EXPENDITURE HISTORY
2016 2015 2014 2013 2012
Revenues:
Taxes 48,737,894$46,750,120$41,951,522$39,654,465$37,527,211$
Licenses & Permits 2,132,802 1,500,777 1,424,598 1,238,967 1,496,424
Intergovernmental 1,373,950 355,083 189,103 469,783 520,948
Charges for Services 3,809,206 3,572,684 2,987,778 2,605,519 2,296,105
Fines, Forfeits and Penalties 3,255,051 2,693,647 3,038,926 3,252,418 3,636,209
Investment Income 148,302 116,074 66,264 88,198 88,684
Rents & Royalties 187,328 136,228 542,816 650,407 686,729
Contributions 8,880 1,251 11,016 56,990 20,168
Other 434,537 3,252,310 113,802 212,349 287,796
TotalRevenues 60,087,950$58,378,174$50,325,825$48,229,096$46,560,274$
Expenditures:
GeneralGovernment 5,524,471$4,853,358$5,108,448$3,825,760$4,189,987$
FiscalServices 3,733,550 3,314,990 3,029,566 2,970,342 2,871,677
Police Department 20,170,450 18,533,889 17,080,568 16,515,820 15,465,837
Fire Department 16,916,819 14,881,983 13,585,022 13,297,527 12,578,396
Planning & Development Services 3,243,768 3,106,143 2,867,857 3,505,029 3,523,742
Parks and Recreation 9,279,126 8,194,670 4,596,645 4,463,535 4,329,869
Information Technology 4,491,009 4,112,987 4,207,305 4,271,209 3,844,107
Public Works 11,162,508 9,156,069 7,611,303 6,519,248 5,884,577
Library Services 1,098,326 1,138,568 1,078,851 994,476 1,072,551
Claims ----
Contributions 1,220,251 1,187,500 1,184,115 1,086,012 937,813
Other 863 217,114 222,034 1,300,627 183,530
CapitalImprovement Projects 667,574 129,896 731,621 733,974 788,032
TotalExpenditures 77,508,715$68,827,167$61,303,335$59,483,559$55,670,118$
Other Financing Sources (Uses):
Sale of GeneralFixed Assets -$8,974,205$4,582,111$-$-$
Operating Transfers In 16,507,346 15,094,866 15,158,581 14,664,450 15,539,293
Operating Transfers Out (2,376,443)(11,441,262)(4,444,465)(3,977,149)(4,329,789)
TotalOther Financing Sources (Uses)14,130,903$12,627,809$15,296,227$10,687,301$11,209,504$
Net Change in Fund Balance (3,289,862)$2,178,816$4,318,717$(567,162)$2,099,660$
Fund Balance, Beginning of Year 22,423,064 20,244,248 15,925,531 16,492,693 14,393,033
Fund Balance, End of Year 19,133,202$22,423,064$20,244,248$15,925,531$16,492,693$
FiscalYear Ended September 30,
Source: The City’s audited financial statements.
22
TABLE 13 -MUNICIPAL SALES TAX HISTORY
The City has adopted the Municipal Sales and Use Tax Act, Texas, Tax Code, Chapter 321, which grants the City the power to impose and levy
a 1% Local Sales and Use Tax within the City; the proceeds are credited to the General Fund and are not pledged to the payment of the
Obligations. Collections and enforcements are effected through the offices of the Comptroller of Public Accounts, State of Texas, who remits
the proceeds of the tax, after deduction of a 2% service fee, to the City monthly. In May 1990, the voters of the City approved the imposition of
an additional sales and use tax of one-half of one percent (½ of 1%) for property tax reduction. The total sales tax rate for the City is 1.5%.
Fiscal
Year % of Equivalent of
Ended Total Ad Valorem Ad Valorem Per
9/30 Collected (1)Tax Levy Tax Rate Capita(2)
2010 19,328,577$81.82%0.36$206$
2011 20,292,871 83.49%0.37 214
2012 21,498,319 85.84%0.38 220
2013 23,064,035 90.38%0.39 236
2014 24,565,649 92.97%0.40 245
2015 26,687,963 89.55%0.41 261
2016 27,163,480 84.71%0.38 255
(1)Provided by the City.
(2)Based on population estimates provided by the City.
FINANCIAL POLICIES
Basis of Accounting . . .The accounts of the City are organized and operated on the basis of funds and account groups. A fund is an
independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their
intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The
minimum number of funds is maintained consistent with legal and managerial requirements. Account groups are a reporting device to
account for certain assets and liabilities of the governmental funds not recorded directly in those funds. Government funds are used to
account for the City’s general government activities. Governmental fund types use the flow of current financial resources measurement
focus and the modified accrual basis of accounting.
General Fund . . . The General Fund is the City’s primary operating fund. It is used to account for all activities typically considered
governmental functions of the City. These include Public Safety, Public Works, Parks and Recreation, Economic and Planning and
Development Services, the support functions for these areas, and the administrative functions for the City.
The General Fund for the 2016-2017 fiscal year is influenced by current policies and any approved policy changes. The policies include
inter-fund equity; maintaining a balance between revenues and expenditures; and maintaining the level of service currently provided as the
City experiences residential and commercial growth.
The City’s financial policies are for a General Fund balance of 15% of budgeted appropriations at year end. To the extent that the General
Fund balance exceeds this amount, this surplus is to be expended in future years for one time expenditures such as capital items and short
term projects.
Debt Service Fund . . .The Debt Service Fund accounts for the servicing of general long-term debt not being financed by proprietary or
nonexpendable trust funds. It is the City’s policy to maintain at least 8 1/3% of annual appropriated expenditures for debt service and any
associated fees as the Debt Service Fund balance at fiscal year end. The City is in compliance with that policy.
Budgetary Procedures . . .Prior to September 1, the City Manager submits to the City Council a proposed operating budget for the fiscal
year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. All
budget requests are compiled by the Finance Department and presented with comparative and supporting data to the Mayor and City
Council for review. Public hearings are properly advertised and conducted at City Hall for taxpayer comments. Prior to September 27, the
budget is legally enacted through passage of an ordinance. The City Council must approve all transfers of budgeted amounts between
departments within any fund and any revision that alters the total expenditure of any fund. An amount is also budgeted each year for
contingencies which may arise.
23
THE COMBINED UTILITY SYSTEM
WATERWORKS SYSTEM
Since December 1981, the City has had the capability to produce and deliver 100% of its water. The system has been expanded to a system
of nine wells, with a combined capacity of 29 million gallons per day. The water is delivered to the distribution system by 14 miles of 30-
inch diameter and 36 inch diameter pipeline and two pumping stations. These pipelines will be fully redundant once TxDoT completes the
Villa Maria / 2818 overpass and the City completes the pipeline re-routing necessary to accommodate the overpass.
Two of the wells mentioned above are shallow wells, less than 1,500 feet, drilled into the Carrizo and Sparta aquifers. The remaining six
are deep wells, approximately 3,000 feet, drilled in the Simsboro Sand formation of the Carrizo-Wilcox aquifer. This is a very prolific
aquifer of high quality water that has the capacity to provide an adequate water supply for the City and surrounding communities through
the year 2060, and well beyond, if managed properly.
The Simsboro Sand, and all local aquifers, are regulated by the Brazos Valley Groundwater Conservation District, and permitting
requirements have been implemented for all new water wells. College Station has obtained a Drilling/Operating Permit from the
Groundwater District for the City to drill another Simsboro Well, Well #9, which will be designed in FY-16 and constructed in FY-17.
This well will meet our projected demands for water for many years into the future. Well #10 remains in the planning stages, and would be
constructed in approximately 2021, depending upon the rate of growth of water demands. College Station is also investigating other water
supply strategies for the future. The prime example is Aquifer Storage and Recovery (ASR), which would store treated wastewater effluent
in an aquifer for future use, most likely during summer peaks. If implemented, this ASR system would greatly reduce the demand on the
drinking water system and ensure a very stable water supply for the City.
The City has completed a Water Reclamation project, which pumps effluent from the wastewater treatment plant up to Veteran’s Park for
irrigation of playing fields, reducing the demand on the potable water system by approximately 350,000 gallons per day. Additional phases
of the reclaimed water system are in the planning stages. In March 2016, the City completed a two year agreement with an oil company,
which provided the City with $470,000 of revenue for providing just under 200 million gallons of reclaimed water.
The City also has stand by generators at strategic locations sufficient to provide adequate potable water for health and safety during and
extended electrical power outage.
Water rates were established by ordinance, passed and approved by the City Council, and became effective October 1, 2010. The
Residential rates are inclined block rates to encourage water conservation.
Type of Customer Usage Charge (per 1,000 gallons)Service Charge
Meter
Size
Residential, Commercial and Industrial $ 10.19 per mo. 5/8”
10.19 per mo. 3/4”
12.78 per mo.1”
19.03 per mo. 1 1/2”
30.05 per mo.2”
94.84 per mo.3”
140.90 per mo.4”
171.53 per mo.6”
Residential $2.26 for usage from 0-10,000 gallons
$2.94 for usage from 11,000-15,000 gallons
$3.61 for usage from 16,000-20,000 gallons
$4.28 for usage from 21,000-25,000 gallons
$4.96 for usage from 26,000 gallons and more
Commercial and Industrial $2.49 per 1,000 gallons
Commercial Irrigation Usage Charge $2.68 per 1,000 gallons
24
WASTEWATER SYSTEM
The City’s waste water is treated by three City-owned wastewater treatment plants, Carter Creek Treatment Plant, Lick Creek Treatment Plant,
and Carter’s Lake Treatment Plant located within the City limits. The three plants have a combined treatment capacity of 11.5 mgd as
compared to average current average daily demand of 7.0 mgd. The treatment plant’s capacity is adequate to serve a population estimated at
125,000.
Sewer rates were established by ordinance, passed and approved by the City Council, and became effective on October 1, 2016.
Residential (metered water).......................................................... $20.28 including 4,000 gallons of metered water
Usage Charge................................................................................ $4.06 per 1,000 gallons of additional metered water
$44.64 maximum per month
Residential (without meter to each unit)....................................... $25.80 per unit per month
Commercial and Industrial............................................................ $17.40 per month
Usage Charge................................................................................$4.83 per 1,000 gallons of metered water usage
There are 2,003 city residents who receive their water from Wellborn Water, but sewer is provided by the City of College Station. Those
residents pay an initial usage charge of $44.64 per month. After six months of documented waste water usage, rates can be adjusted
downward on a tiered scale.
ELECTRIC SUPPLY SOURCE
The City has multiple Power Purchase Agreements (PPAs) in order to meet its load requirements. The PPAs are currently with AEPEP
(AEP Energy Partners) and Garland Power and Light (GP&L). With AEPEP, the City has fixed block ATC PPA that expires in 2027. This
fixed block ATC PPA replaced a unit contingent PPA with AEPEP in 2015. The City also has a PPA with AEPEP for wind power that
expires on 2028. The City has a load following PPA with GP&L. While the PPAs with AEPEP are considered base load power, the load
following PPA with GP&L covers the load above the base power provided by AEPEP's PPAs. Other wholesale/power supply costs include
congestion costs, Ancillary Services and Transmission Cost of Service (TCOS). Since the City owns transmission assets it not only pays
but also receives TCOS payments based on TCOS rates approved by the Public Utility Commission of Texas.
On January 1, 2015, the City began a three-year contract (with a possible two-one year extensions) with Garland Power and Light (GPL)
for Qualified Scheduling Entity (QSE) services and a two year load following contract for power above the contracted resources from
AEPEP. GP&L's QSE schedules and settles all the contract resources owned by the City. On City's advice the QSE also procures any
replacement power as needed on behalf of the City.
The City's owns 20 miles of 138kV transmission lines, seven substations, and 458 miles of distribution lines. ERCOT serves
as the RTO/ISO for the area.
The current electric rates were established by ordinance passed and approved by the City Council and became effective on October 1,
2016. The electric rates are subject to a transmission delivery adjustment (TDA) charge which requires that the net energy charge per
kilowatt hour must be increased or decreased by an amount per kilowatt hour equal to additional transmission charges above those
accounted for in the wholesale rate. The TDA is currently set at $0.005 per kilowatt hour of energy consumed.
In January 2009, College Station Utilities began offering residential electric customers renewable wind energy. In February 2010, the
renewable wind energy program was expanded to include commercial customers. Wind energy is generated from the South Trent Mesa
Wind Project located west of Abilene, Texas.
25
Single Family Residential...............................Service Charge......................................................$7.00 per month
plus:
kwhrs (May through October)..............................$0.1169 per kwhr
kwhr (November through April)...........................$0.1123 per kwhr
Tax.........................................................................1.50%
Transmission Delivery Adjustment (TDA)...........0.50%
Master Metered Multiple Dwelling Units......Service Charge.......................................................$100.00 per month per master meter
plus:
kwhrs (May through October)...............................$0.1181 per kwhr
kwhr (November through April)...........................$0.1134 per kwhr
Tax.........................................................................1.50%
TDA.......................................................................Calculated as needed
Small Commercial (1-10 KW demand).........Service Charge.......................................................$9.00 per month
plus:
First 1,000 kwhrs...................................................$0.1344 per kwhr
Over 1,000 kwhrs..................................................$0.1028 per kwhr
Tax.........................................................................8.25%
TDA.......................................................................0.50%
Medium Commercial (15-300 KW)...............Service Charge.......................................................$25.00 per month
plus:
Demand Charge (Per KW)................................$10.40 per KW
Energy Charge All kwhrs......................................$0.0729 per KW
Minimum Monthly Charge................................$181.00
Tax.........................................................................8.25%
TDA.......................................................................0.50%
Large Commercial (300 – 1,500 KW)...........Service Charge.......................................................$75.00 per month
plus:
Demand Charge (Per KW)................................$10.40 per KW
Energy Charge All kwhrs......................................$0.0703 per KW
Minimum Monthly Charge................................$3,195.00
Tax.........................................................................8.25%
TDA.......................................................................0.50%
Industrial (1,500 KW and over).....................Service Charge......................................................$250.00 per month
plus:
Demand Charge (Per KW)................................$9.85
Energy Charge (first 500,000 kwhrs)....................$0.0689 per KW
Minimum Monthly $15,034.85
Tax.........................................................................8.25%
TDA.......................................................................Calculated as needed
WIND WATT RATES
Wind rates were established by Ordinance #2012-3397 on February 23, 2012, passed and approved by the City Council, and became
effective on March 1, 2012.
Participation Level: Residential & Commercial
10%.......................................................................$0.0005 per KW
50%.......................................................................$0.0025 per KW
100%.....................................................................$0.005 per KW
26
TABLE 14 -HISTORICAL UTILITY USERS (UNITS SERVED)
2016 2015 2014 2013 2012
Water 41,709 41,540 40,768 40,767 39,338
Wastewater 40,866 40,806 39,128 38,608 36,908
Electric 40,141 43,471 38,198 38,456 39,123
FiscalYear Ended September 30,
TABLE 15 -TEN LARGEST UTILITY CUSTOMERS
TotalPercent
FY 2016 KWH of KWH
Utility Customer Type of Business Consumption Consumed
City of College Station Municipality 37,339,910 4.49%
CSISD School 24,218,968 2.91%
Scott & White Hospital& Clinic Hospital/Clinic 21,798,706 2.62%
Texas A&M University 12,955,204 1.56%
CBL & Associates RetailMall 9,273,940 1.12%
College Station MedicalCenter Hospital 9,053,162 1.09%
Wal-Mart Retail 8,805,600 1.06%
HEB Grocery RetailGrocery 8,549,280 1.03%
Pandemic InfluenzalVaccine Medical 8,338,900 1.00%
Dealer Computer Services Inc Retail 4,776,800 0.57%
145,110,470 17.45%
TABLE 16 -CONDENSED STATEMENT OF OPERATIONS
2016 2015 2014 2013 2012
Revenues:
Electric 98,904,688$98,763,293$95,677,765$92,892,541$94,396,234$
Water and Wastewater 29,484,851 28,732,968 27,550,262 29,018,108 27,652,449
Interest 346,312 180,423 116,433 170,062 136,974
Other 3,636,420 3,546,138 2,890,061 3,670,710 2,857,223
TotalRevenues 132,372,271$131,222,822$126,234,521$125,751,421$125,042,880$
Expenses:
TotalExpenses 76,771,094$82,079,813$100,235,329$90,519,871$88,927,662$
Net Available for Debt Service 55,601,177$49,143,009$25,999,192$35,231,550$36,115,218$
Water (Units Served)41,709 41,540 40,768 40,767 39,338
Wastewater (Units Served)40,866 40,806 39,128 38,608 36,908
Electric (Units Served)40,141 43,471 38,198 38,456 39,123
For FiscalYear Ended September 30,
27
TABLE 17 –VALUE OF THE SYSTEM
2016 2015 2014 2013 2012
Utility Systems 527,435,531$507,758,485$459,071,713$446,518,318$435,064,838$
Construction in Progress 23,520,025 13,213,020 43,281,736 36,982,355 20,430,326
550,955,556$520,971,505$502,353,449$483,500,673$455,495,164$
Less: Accumulated Depreciation 213,325,487 198,339,390 183,756,067 171,069,875 158,428,406
Net System Value 337,630,069$322,632,115$318,597,382$312,430,798$297,066,758$
FiscalYear Ended September 30,
TABLE 18 –CITY’S EQUITY IN THE SYSTEM
Resources 2016 2015 2014 2013 2012
Net System Value 337,630,069$322,632,115$318,597,382$312,430,798$297,066,758$
Current Assets 63,085,837 52,023,881 42,939,476 59,428,776 53,031,034
Restricted Assets 21,849,829 19,977,038 27,760,893 5,757,167 10,143,761
Other Resources --0 120,000 120,000
Deferred Charges 5,425,502 2,381,933 1,305,356 1,665,943 780,390
Total 427,991,237$397,014,967$390,603,107$379,402,684$361,141,943$
Obligations
Current Liabilities 9,511,319$13,688,841$19,092,357$23,329,045$17,180,367$
Current Liabilities Payable from
Restricted Assets 15,462,903 10,735,825 7,292,731 7,190,577 13,474,895
GeneralObligation Debt 55,626,759 43,175,000 47,995,000 36,930,000 30,675,000
Certificates of Obligation 78,814,496 83,445,000 87,210,000 66,695,000 55,865,000
Revenue Bond Debt -13,395,000 14,920,000 34,765,000 41,505,001
Other Debt(1)9,418,425 8,593,734 9,385,034 4,825,184 4,561,927
TotalLiabilities 168,833,902$173,033,400$185,895,122$173,734,806$163,262,190$
City's Equity in System 259,157,335$223,981,567$204,707,985$205,667,878$197,879,753$
Percentage of Equity in System 60.55%56.42%52.41%54.21%54.79%
FiscalYear Ended September 30,
__________
(1)Includes OPEB Net Pension Obligations.
28
TABLE 19 –UTILITY REVENUE BOND AND SYSTEM SUPPORTED CERTIFICATE DEBT SERVICE
Original Outstanding
Principal Principal
Amount as of 9/30/2017
2008 (2)15,925,000 3,045,000
2009 (2)19,490,000 8,465,000
2010 (2)2,850,000 2,240,000
2010 (1)(3)25,905,000 14,965,000
2011 (2)7,920,000 6,520,000
2012 (2)16,415,000 14,035,000
2012 (1)(3)9,570,000 6,110,000
2013 (2)10,230,000 9,120,000
2013 (1)(3)6,255,000 4,870,000
2014 (2)23,555,000 21,750,000
2014 (1)(3)14,455,000 11,385,000
2016 (2)7,250,000 7,250,000
2016 (1)(3)18,710,000 18,710,000
2017 (2)12,880,000 12,880,000 *
2017 (1)(3)5,670,000 5,670,000 *
197,080,000$147,015,000$
Series
__________
* Preliminary, subject to change. Includes a portion of the Obligations and excludes the Refunded Obligations.
(1)Represents refunding bonds.
(2)Certificates of Obligation supported in whole or in part by Utility System revenues.
(3)General Obligation Improvement Bonds supported in part by the Utility System revenues.
INVESTMENTS
The City invests its investable funds in investments authorized by Texas law in accordance with investment policies approved by the City
Council. Both state law and the City’s investment policies are subject to change.
LEGAL INVESTMENTS
Under State law, the City is authorized to invest in: (1) obligations of the United States or its agencies and instrumentalities, including
letters of credit; (2) direct obligations of the State or its agencies and instrumentalities; (3) collateralized mortgage obligations directly
issued by a federal agency or instrumentality of the United States, the underlying security for which is guaranteed by an agency or
instrumentality of the United States; (4) other obligations, the principal of and interest on which are unconditionally guaranteed or insured
by, or backed by the full faith and credit of, the State or the United States or their respective agencies and instrumentalities, including
obligations that are fully guaranteed or insured by the Federal Deposit Insurance Corporation or by the explicit full faith and credit of the
United States; (5) obligations of states, agencies, counties, cities, and other political subdivisions of any state rated as to investment quality
by a nationally recognized investment rating firm not less than A or its equivalent; (6) bonds issued, assumed, or guaranteed by the State of
Israel; (7) certificates of deposit and share certificates (i) issued by a depository institution that has its main office or a branch office in the
State of Texas, that are guaranteed or insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance
Fund, or are secured as to principal by obligations described in clauses (1) through (6) or in any other manner and amount provided by law
for City deposits, or (ii) where (a) the funds are invested by the City through (I) a broker that has its main office or a branch office in the
State of Texas and is selected from a list adopted, at least annually, by the City as required by law or (II) a depository institution that has its
main office or a branch office in the State of Texas that is selected by the City; (b) the broker or the depository institution selected by the
City arranges for the deposit of the funds in certificates of deposit in one or more federally insured depository institutions, wherever
located, for the account of the City; (c) the full amount of the principal and accrued interest of each of the certificates of deposit is insured
by the United States or an instrumentality of the United States, and (d) the City appoints the depository institution selected under (a) above,
a custodian as described by Section 2257.041(d) of the Texas Government Code, or a clearing broker-dealer registered with the Securities
and Exchange Commission and operating pursuant to Securities and Exchange Commission Rule 15c3-3 (17 C.F.R. Section 240.15c3-3)
as custodian for the City with respect to the certificates of deposit; (8) fully collateralized repurchase agreements that have a defined
termination date, are fully secured by a combination of cash and obligations described in clause (1) which are pledged to the City, held in
the City’s name, and deposited at the time the investment is made with the City or with a third party selected and approved by the City and
are placed through a primary government securities dealer, as defined by the Federal Reserve, or a financial institution doing business in
the State of Texas; (9) bankers’ acceptances with the remaining term of 270 days or less, if the short-term obligations of the accepting bank
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or its parent are rated at least “A-1” or “P-1” or the equivalent by at least one nationally recognized credit rating agency; (10) commercial
paper that is rated at least “A-1” or “P-1” or the equivalent by either (a) two nationally recognized credit rating agencies or (b) one
nationally recognized credit rating agency if the paper is fully secured by an irrevocable letter of credit issued by a bank organized and
existing under the laws of the United States or any state; (11) no-load money market mutual funds regulated by the Securities and
Exchange Commission that have a dollar weighted average portfolio maturity of 90 days or less and include in their investment objectives
the maintenance of a stable net asset value of $1 for each share; (12) no-load mutual funds registered with the Securities and Exchange
Commission that: have an average weighted maturity of less than two years; invests exclusively in obligations described in the preceding
clauses; and are continuously rated as to investment quality by at least one nationally recognized investment rating firm of not less than
“AAA” or its equivalent; provided, however, that the City is not authorized to invest in the aggregate more than 15% of its monthly
average fund balance, excluding bond proceeds and reserves and other funds held for debt service, in such no-load mutual funds, and (13)
for bond proceeds, guaranteed investment contracts that have a defined termination date, are secured by obligations of the United States or
its agencies and instrumentalities in an amount equal to the amount invested under the contract, and are pledged to the City and deposited
with the City or a third party selected and approved by the City.
The City is also authorized to invest its funds through an eligible investment pool if the governing body of the City by rule, ordinance, or
resolution, as appropriate, authorizes investment in the particular pool. To be eligible to receive funds from and invest funds on behalf of
the City, an investment pool must furnish to the investment officer or other authorized representative of the City an offering circular or
other similar disclosure instrument that contains, at a minimum, the following information: (1) the types of investments in which money is
allowed to be invested; (2) the maximum average dollar-weighted maturity allowed, based on the stated maturity date, of the pool; (3) the
maximum stated maturity date any investment security within the portfolio has; (4) the objectives of the pool; (5) the size of the pool; (6)
the names of the members of the advisory board of the pool and the dates their terms expire; (7) the custodian bank that will safekeep the
pool's assets; (8) whether the intent of the pool is to maintain a net asset value of one dollar and the risk of market price fluctuation; (9)
whether the only source of payment is the assets of the pool at market value or whether there is a secondary source of payment, such as
insurance or guarantees, and a description of the secondary source of payment; (10) the name and address of the independent auditor of the
pool; (11) the requirements to be satisfied for an entity to deposit funds in and withdraw funds from the pool and any deadlines or other
operating policies required for the entity to invest funds in and withdraw funds from the pool; and (12) the performance history of the pool,
including yield, average dollar-weighted maturities, and expense ratios.
Governmental bodies in the State are authorized to implement securities lending programs if (i) the securities loaned under the program are
100% collateralized, a loan made under the program allows for termination at any time and a loan made under the program is either secured
by (a) obligations that are described in clauses (1) through (6) of the first paragraph under this subcaption, (b) irrevocable letters of credit
issued by a state or national bank that is continuously rated by a nationally recognized investment rating firm not less than “A” or its
equivalent, or (c) cash invested in obligations that are described in clauses (1) through (6) and (10) through (12) of the first paragraph
under this subcaption, or an authorized investment pool; (ii) securities held as collateral under a loan are pledged to the governmental
body, held in the name of the governmental body and deposited at the time the investment is made with the City or a third party designated
by the City; (iii) a loan made under the program is placed through either a primary government securities dealer or a financial institution
doing business in the State; and (iv) the agreement to lend securities has a term of one year or less.
The City may invest in such obligations directly or through government investment pools that invest solely in such obligations provided
that the pools are rated no lower than “AAA” or “AAAm” or an equivalent by at least one nationally recognized rating service. The City is
specifically prohibited from investing in: (1) obligations whose payment represents the coupon payments on the outstanding principal
balance of the underlying mortgage-backed security collateral and pays no principal; (2) obligations whose payment represents the
principal stream of cash flow from the underlying mortgage-backed security and bears no interest; (3) collateralized mortgage obligations
that have a stated final maturity of greater than 10 years; and (4) collateralized mortgage obligations the interest rate of which is determined
by an index that adjusts opposite to the changes in a market index.
INVESTMENT POLICIES
Under Texas law, the City is required to invest its funds under written investment policies that primarily emphasize safety of principal and
liquidity; that address investment diversification, yield, maturity, and the quality and capability of investment management; and that includes a
list of authorized investments for City funds, maximum allowable stated maturity of any individual investment and the maximum average
dollar-weighted maturity allowed for pooled fund groups, methods to monitor the market price of investments acquired with public funds, a
requirement for settlement of all transactions, except investment pool funds and mutual funds, on a delivery versus payment basis, and
procedures to monitor rating changes in investments acquired with public funds and the liquidation of such investments consistent with the
PFIA. All City funds must be invested consistent with a formally adopted “Investment Strategy Statement” that specifically addresses each
funds’ investment. Each Investment Strategy Statement will describe its objectives concerning (1) suitability of investment type, (2)
preservation and safety of principal, (3) liquidity, (4) marketability of each investment, (5) diversification of the portfolio, and (6) yield.
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Under Texas law, City investments must be made “with judgment and care, under prevailing circumstances, that a person of prudence,
discretion, and intelligence would exercise in the management of the person’s own affairs, not for speculation, but for investment,
considering the probable safety of capital and the probable income to be derived.” At least quarterly the investment officers of the City will
submit an investment report detailing (1) the investment position of the City, (2) that all investment officers jointly prepared and signed the
report, (3) the beginning market value and ending market value for each pooled fund group, (4) the book value and market value of each
separately listed asset at the end of the reporting period, (5) the maturity date of each separately invested asset, (6) the account or fund or
pooled fund group for which each individual investment was acquired, and (7) the compliance of the investment portfolio as it relates to:
(a) adopted investment strategy statements and (b) state law. No person may invest City funds without express written authority from the
City Council.
ADDITIONAL PROVISIONS
Under Texas law the City is additionally required to: (1) annually review its adopted policies and strategies; (2) require any investment
officers’ with personal business relationships or relatives with firms seeking to sell securities to the entity to disclose the relationship and
file a statement with the Texas Ethics Commission and the City Council; (3) require the registered principal of firms seeking to sell
securities to the City to: (a) receive and review the City’s investment policy, (b) acknowledge that reasonable controls and procedures have
been implemented to preclude imprudent investment activities, and (c) deliver a written statement attesting to these requirements; (4)
perform an annual audit of the management controls on investments and adherence to the City’s investment policy; (5) provide specific
investment training for the Finance Director, Treasurer, Assistant City Manager and investment officers; (6) restrict reverse repurchase
agreements to not more than 90 days and restrict the investment of reverse repurchase agreement funds to no greater than the term of the
reverse repurchase agreement; (7) restrict the investment in non-money market mutual funds of any portion of bond proceeds, reserves and
funds held for debt service and to no more than 15% of the entity’s monthly average fund balance, excluding bond proceeds and reserves
and other funds held for debt service; (8) require local government investment pools to conform to the new disclosure, rating, net asset
value, yield calculation, and advisory board requirements and (9) at least annually review, revise, and adopt a list of qualified brokers that
are authorized to engage in investment transactions with the City.
Under Texas law, the City may contract with an investment management firm registered under the Investment Advisers Act of 1940 (15
U.S.C. Section 80b-1 et seq.) or with the State Securities Board to provide for the investment and management of its public funds or other
funds under its control for a term up to two years, but the City retains ultimate responsibility as fiduciary of its assets. In order to renew or
extend such a contract, the City must do so by order, ordinance or resolution. The City has not contracted with, and has no present
intention of contracting with, any such investment management firm or the State Securities Board to provide such services.
CITY’S INVESTMENT POLICY
The Assistant City Manager or his designee will promptly cause all City funds to be deposited with the bank depository and invested in
accordance with the provisions of the current Bank Depository Agreement or in any negotiable instrument that the City Council has
authorized under the provisions of the PFIA, as amended, and in accordance with the City Council approved Investment Policies.
At the end of each fiscal year, a report on investment performance will be provided to the City Council. In conjunction with the quarterly
financial report, the Assistant City Manager or his designee will prepare and provide a written recapitulation of the City’s investment
portfolio to the Council, detailing each City investment instrument with its rate of return and maturity date.
The City's adopted investment policy permits the City to invest its funds and funds under its control in all of the enumerated investments
authorized by the PFIA.
TABLE 20 -CURRENT INVESTMENTS
As of February 28, 2017, the City’s investable funds were invested in the following categories:
Book Market
Investment Type Value Value
Cash 5,000,000$5,000,000$
Certificate Of Deposit 7,065,359 7,065,359
LocalGovernment Investment Pool 8,105,929 8,105,929
Money Market MutualFund 167,886,559 167,886,559
US Agencies and Securities 14,000,000 13,979,380
202,057,847$202,037,227$
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TAX MATTERS
OPINION
On the date of initial delivery of each series of the Obligations, McCall, Parkhurst & Horton L.L.P., Dallas, Texas, Bond Counsel, will
render its opinion that, in accordance with statutes, regulations, published rulings and court decisions existing on the date thereof
(“Existing Law”), (1) interest on the Obligations for federal income tax purposes will be excludable from the “gross income” of the holders
thereof and (2) the Obligations will not be treated as “specified private activity bonds” the interest on which would be included as an
alternative minimum tax preference item under section 57(a)(5) of the Internal Revenue Code of 1986 (the “Code”). Except as stated
above, Bond Counsel will express no opinion as to any other federal, state or local tax consequences of the purchase, ownership or
disposition of the Obligations. See Appendix C - FORMS OF OPINIONS OF BOND COUNSEL.
In rendering its opinions, Bond Counsel will rely upon (a) certain information and representations of the City, including information and
representations contained in the City's federal tax certificate, (b) the Verification Report prepared by Grant Thornton LLP with respect to
the refunding of the Refunded Obligations and (c) covenants of the City contained in the respective Ordinances authorizing each series of
the Obligations relating to certain matters, including arbitrage and the use of the proceeds of the Obligations and the property financed or
refinanced therewith. Failure of the City to comply with these representations or covenants could cause the interest on the Bonds or
Certificates, as the case may be, to become includable in gross income retroactively to their date of issuance.
The Code and the regulations promulgated thereunder contain a number of requirements that must be satisfied subsequent to the issuance of the
Obligations in order for interest on the Obligations to be, and to remain, excludable from gross income for federal income tax purposes. Failure
to comply with such requirements may cause interest on the Obligations to be included in gross income retroactively to the date of issuance of
the Obligations. The opinions of Bond Counsel are rendered in reliance upon the compliance by the City with such requirements, and Bond
Counsel has not been retained to monitor compliance with these requirements subsequent to the issuance of the Obligations.
Bond Counsel's opinions are not a guarantee of a result, but represent its legal judgment based upon its review of Existing Law and reliance
on the aforementioned information, representations and covenants. Existing Law is subject to change by the Congress and to subsequent
judicial and administrative interpretation by the courts and the Department of the Treasury. There can be no assurance that Existing Law
or the interpretation thereof will not be changed in a manner which would adversely affect the tax treatment of the purchase, ownership or
disposition of the Obligations.
A ruling was not sought from the Internal Revenue Service by the Issuer with respect to the Obligations or the property financed or refinanced
with proceeds of the Obligations. No assurances can be given as to whether the Internal Revenue Service will commence an audit of the
Obligations, or as to whether the Internal Revenue Service would agree with the opinion of Bond Counsel. If an Internal Revenue Service audit
is commenced, under current procedures the Internal Revenue Service is likely to treat the Issuer as the taxpayer and the Obligation holders may
have no right to participate in such procedure. No additional interest will be paid upon any determination of taxability.
FEDERAL INCOME TAX ACCOUNTING TREATMENT OF ORIGINAL ISSUE DISCOUNT
The initial public offering price to be paid for one or more maturities of the Obligations may be less than the principal amount thereof or
one or more periods for the payment of interest on the Obligations may not be equal to the accrual period or be in excess of one year (the
“Original Issue Discount Obligations”). In such event, the difference between (i) the “stated redemption price at maturity” of each Original
Issue Discount Obligation, and (ii) the initial offering price to the public of such Original Issue Discount Obligation would constitute
original issue discount. The “stated redemption price at maturity” means the sum of all payments to be made on the Obligations less the
amount of all periodic interest payments. Periodic interest payments are payments which are made during equal accrual periods (or during
any unequal period if it is the initial or final period) and which are made during accrual periods which do not exceed one year.
Under Existing Law, any owner who has purchased such Original Issue Discount Obligation in the initial public offering is entitled to
exclude from gross income (as defined in section 61 of the Code) an amount of income with respect to such Original Issue Discount
Obligation equal to that portion of the amount of such original issue discount allocable to the accrual period. For a discussion of certain
collateral federal tax consequences, see discussion set forth below.
In the event of the redemption, sale or other taxable disposition of such Original Issue Discount Obligation prior to stated maturity,
however, the amount realized by such owner in excess of the basis of such Original Issue Discount Obligation in the hands of such owner
(adjusted upward by the portion of the original issue discount allocable to the period for which such Original Issue Discount Obligation
was held by such initial owner) is includable in gross income.
Under Existing Law, the original issue discount on each Original Issue Discount Obligation is accrued daily to the stated maturity thereof
(in amounts calculated as described below for each accrual period within each accrual period) and the accrued amount is added to an initial
owner's basis for such Original Issue Discount Obligation for purposes of determining the amount of gain or loss recognized by such owner
upon the redemption, sale or other disposition thereof. The amount to be added to basis for each accrual period is equal to (a) the sum of
the issue price and the amount of original issue discount accrued in prior periods multiplied by the yield to stated maturity (determined on
the basis of compounding at the close of each accrual period and properly adjusted for the length of the accrual period) less (b) the amounts
payable as current interest during such accrual period on such Original Issue Discount Obligation.
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The federal income tax consequences of the purchase, ownership, redemption, sale or other disposition of Original Issue Discount
Obligations which are not purchased in the initial offering at the initial offering price may be determined according to rules which differ
from those described above. All owners of Original Issue Discount Obligations should consult their own tax advisors with respect to the
determination for federal, state and local income tax purposes of the treatment of interest accrued upon redemption, sale or other
disposition of such Original Issue Discount Obligations and with respect to the federal, state, local and foreign tax consequences of the
purchase, ownership, redemption, sale or other disposition of such Original Issue Discount Obligations.
COLLATERAL FEDERAL INCOME TAX CONSEQUENCES
The following discussion is a summary of certain collateral federal income tax consequences resulting from the purchase, ownership or
disposition of the Obligations. This discussion is based on Existing Law, which is subject to change or modification, retroactively.
The following discussion is applicable to investors, other than those who are subject to special provisions of the Code, such as financial
institutions, property and casualty insurance companies, life insurance companies, individual recipients of Social Security or Railroad
Retirement benefits, individuals allowed an earned income credit, certain S corporations with accumulated earnings and profits and excess
passive investment income, foreign corporations subject to the branch profits tax, taxpayers qualifying for the health insurance premium
credit and taxpayers who may be deemed to have incurred or continued indebtedness to purchase tax-exempt obligations.
THE DISCUSSION CONTAINED HEREIN MAY NOT BE EXHAUSTIVE. INVESTORS, INCLUDING THOSE WHO ARE SUBJECT
TO SPECIAL PROVISIONS OF THE CODE, SHOULD CONSULT THEIR OWN TAX ADVISORS AS TO THE TAX TREATMENT
WHICH MAY BE ANTICIPATED TO RESULT FROM THE PURCHASE, OWNERSHIP AND DISPOSITION OF TAX-EXEMPT
OBLIGATIONS BEFORE DETERMINING WHETHER TO PURCHASE THE OBLIGATIONS.
Interest on the Obligations will be includable as an adjustment for “adjusted current earnings” to calculate the alternative minimum tax
imposed on corporations by section 55 of the Code.
Under section 6012 of the Code, holders of tax-exempt obligations, such as the Obligations, may be required to disclose interest received
or accrued during each taxable year on their returns of federal income taxation.
Section 1276 of the Code provides for ordinary income tax treatment of gain recognized upon the disposition of a tax-exempt obligation,
such as the Obligations, if such obligation was acquired at a “market discount” and if the fixed maturity of such obligation is equal to, or
exceeds, one year from the date of issue. Such treatment applies to “market discount bonds” to the extent such gain does not exceed the
accrued market discount of such bonds; although for this purpose, a de minimis amount of market discount is ignored. A “market discount
bond” is one which is acquired by the holder at a purchase price which is less than the stated redemption price at maturity or, in the case of
a bond issued at an original issue discount, the “revised issue price” (i.e., the issue price plus accrued original issue discount). The
“accrued market discount” is the amount which bears the same ratio to the market discount as the number of days during which the holder
holds the obligation bears to the number of days between the acquisition date and the final maturity date.
STATE,LOCAL AND FOREIGN TAXES
Investors should consult their own tax advisors concerning the tax implications of the purchase, ownership or disposition of the
Obligations under applicable state or local laws. Foreign investors should also consult their own tax advisors regarding the tax
consequences unique to investors who are not United States persons.
Subject to certain exceptions, information reports describing interest income, including original issue discount, with respect to the
Obligations will be sent to each registered holder and to the Internal Revenue Service. Payments of interest and principal may be subject to
backup withholding under section 3406 of the Code if a recipient of the payments fails to furnish to the payor such owner's social security
number or other taxpayer identification number ("TIN"), furnishes an incorrect TIN, or otherwise fails to establish an exemption from the
backup withholding tax. Any amounts so withheld would be allowed as a credit against the recipient's federal income tax. Special rules
apply to partnerships, estates and trusts, and in certain circumstances, and in respect of Non-U.S. Holders, certifications as to foreign status
and other matters may be required to be provided by partners and beneficiaries thereof.
INFORMATION REPORTING AND BACKUP WITHHOLDING
Subject to certain exceptions, information reports describing interest income, including original issue discount, with respect to the
Obligations will be sent to each registered holder and to the IRS. Payments of interest and principal may be subject to backup withholding
under section 3406 of the Code if a recipient of the payments fails to furnish to the payor such owner’s social security number or other
taxpayer identification number (“TIN”), furnishes an incorrect TIN, or otherwise fails to establish an exemption from the backup
withholding tax. Any amounts so withheld would be allowed as a credit against the recipient’s federal income tax. Special rules apply to
partnerships, estates and trusts, and in certain circumstances, and in respect of Non-U.S. Holders, certifications as to foreign status and
other matters may be required to be provided by partners and beneficiaries thereof.
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FUTURE AND PROPOSED LEGISLATION
Tax legislation, administrative actions taken by tax authorities, or court decisions, whether at the federal or state level, may adversely affect
the tax-exempt status of interest on the Obligations under federal or state law, and could affect the market price or marketability of the
Obligations. Any of the foregoing could limit the value of certain deductions and exclusions, including the exclusion for tax-exempt
interest. The likelihood of any of the foregoing becoming effective cannot be predicted. Prospective purchasers of the Obligations should
consult their own tax advisors regarding the foregoing matters.
CONTINUING DISCLOSURE OF INFORMATION
In the Ordinances, the City has made the following agreement for the benefit of the holders and beneficial owners of each series of
Obligations. The City is required to observe the agreement for so long as it remains obligated to advance funds to pay the Obligations.
Under the agreement, the City will be obligated to provide certain updated financial information and operating data annually, and timely
notice of specified events, to the Municipal Securities Rulemaking Board (the “MSRB”). This information will be publicly available at no
cost on the Electronic Municipal Market Access of the MSRB, with the web address www.emma.msrb.org (“EMMA”).
ANNUAL REPORTS
The City will provide certain updated financial information and operating data to the MSRB on an annual basis in an electronic format that
is prescribed by the MSRB and available via the Electronic Municipal Market Access System ("EMMA") at www.emma.msrb.org. The
information to be updated includes all quantitative financial information and operating data with respect to the City of the general type
included in this Official Statement under Tables numbered 1 through 6; 8 through 20 and in Appendix B. The City will update and provide
the information in Tables 1 through 6 and 8 through 20 within six months after the end of each fiscal year ending in and after 2017. The
City will additionally provide audited financial statements when and if available, and in any event, within 12 months after the end of each
fiscal year ending in or after 2017. If the audit of such financial statements is not complete within 12 months after any such fiscal year end,
then the City will file unaudited financial statements within such 12 month period and audited financial statements for the applicable fiscal
year, when and if the audit report on such statements becomes available. Any such financial statements will be prepared in accordance with
the accounting principles described in Appendix B or such other accounting principles as the City may be required to employ from time to
time pursuant to State law or regulation.
The financial information and operating data to be provided may be set forth in full in one or more documents or may be included by
specific reference to any document available to the public on the MSRB’s Internet Web site identified below or filed with the United States
Securities and Exchange Commission (the "SEC"), as permitted by SEC Rule 15c2-12 (the "Rule").
The City’s current fiscal year end is September 30. Accordingly, the City must provide updated information included in 1 through 6 and 8
through 20 by the last day of March in each year, and audited financial statements for the preceding fiscal year (or unaudited financial
statements if the audited financial statements are not yet available) as described above. If the City changes its fiscal year, it will file notice
of the change (and of the date of the new fiscal year end) with the MSRB prior to the next date by which the City otherwise would be
required to provide financial information and operating data as set forth above.
EVENT NOTICES
The City will also provide timely notices of certain events to the MSRB. The City will provide notice of any of the following events with
respect to the Obligations to the MSRB in a timely manner (but not in excess of ten business days after the occurrence of the event): (1)
principal and interest payment delinquencies; (2) non-payment related defaults, if material; (3) unscheduled draws on debt service reserves
reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or
liquidity providers, or their failure to perform; (6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB), or other material notices or determinations with respect to
the tax status of the Obligations, or other material events affecting the tax status of the Obligations; (7) modifications to rights of holders of
the Obligations, if material; (8) Obligation calls, if material, and tender offers; (9) defeasances; (10) release, substitution, or sale of
property securing repayment of the Obligations, if material; (11) rating changes; (12) bankruptcy, insolvency, receivership, or similar event
of the City, which shall occur as described below; (13) the consummation of a merger, consolidation, or acquisition involving the City or
the sale of all or substantially all of its assets, other than in the ordinary course of business, the entry into of a definitive agreement to
undertake such an action or the termination of a definitive agreement relating to any suchactions, other than pursuant to its terms, if
material; and (14) appointment of a successor or additional paying agent or the change of name of a paying agent, if material. In addition,
the City will provide timely notice of any failure by the City to provide annual financial information in accordance with their agreement
described above under “Annual Reports”. For these purposes, any event described in clause (12) is considered to occur when any of the
following occur: the appointment of a receiver, fiscal agent, or similar officer for the City in a proceeding under the United States
Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction
over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body
and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order
confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction
over substantially all of the assets or business of the City.
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The City will provide each notice described in the previous paragraph to the MSRB through EMMA, in accordance with the Rule.
LIMITATIONS AND AMENDMENTS
The City has agreed to update information and to provide notices of specified events only as described above. The City has not agreed to
provide other information that may be relevant or material to a complete presentation of its financial results of operations, condition, or
prospects or agreed to update any information that is provided, except as described above. The City makes no representation or warranty
concerning such information or concerning its usefulness to a decision to invest in or sell Obligations at any future date. The City disclaims
any contractual or tort liability for damages resulting in whole or in part from any breach of its continuing disclosure agreement or from
any statement made pursuant to its agreement, although holders of Obligations may seek a writ of mandamus to compel the City to comply
with its agreement.
The City may amend its continuing disclosure agreement from time to time to adapt to changed circumstances that arise from a change in
legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, if (i) the agreement, as
amended, would have permitted an underwriter to purchase or sell Obligations in the offering described herein in compliance with the
Rule, taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed
circumstances, and (ii) either (a) the holders of a majority in aggregate principal amount of the outstanding Obligations consent to the
amendment or (b) any person unaffiliated with the City (such as nationally recognized bond counsel) determines that the amendment will
not materially impair the interests of the holders and beneficial owners of the Obligations. If the City so amends the agreement, it has
agreed to include with the next financial information and operating data provided in accordance with its agreement described above under
“ANNUAL REPORTS” an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of
financial information and operating data so provided.
COMPLIANCE WITH PRIOR UNDERTAKINGS
In connection with prior transactions, the City has entered into undertakings pursuant to which it agreed to provide certain updated
financial information and operating data within six months of the end of the City’s fiscal year along with notices of specified material
events at required times. In addition, the City previously agreed to provide audited financial statements within six months of the end of the
City’s fiscal year if audited financial statements were available by such time. If audited financial statements were not available, the City
agreed to provide unaudited financial statements for the applicable fiscal year.
During the previous five years, the City filed certain updated financial information and operating data in the form of tables (the “Tables”)
identified in the official statements for each respective debt issuances within six months (March 31) after the end of each fiscal year. The
audited financial statements for the fiscal years ending September 30, 2009 and September 30, 2010 were filed on July 5, 2010 and May
26, 2011, respectively, which is more than six months after the end of the fiscal year. In each instance, the City filed Tables that contained
certain unaudited financial statement information that was similar to the type included in the audited financial information within six
months of the end of the applicable fiscal year.
OTHER INFORMATION
RATINGS
The Obligations and presently outstanding tax supported debt of the City are rated “_____” by Moody's and “_____” by S&P, without
regard to credit enhancement. 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 Obligations.
LITIGATION
The City is a party to legal proceedings, many of which occur in the normal course of operations. It is not possible at the present time to
estimate ultimate outcome or liability, if any, of the city with respect to the various proceedings. The City’s management believes that the
ultimate outcome of the various lawsuits will not have a material adverse effect on the City’s financial position.
35
REGISTRATION AND QUALIFICATION OF OBLIGATIONS FOR SALE
The sale of the Obligations 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 Obligations have not been qualified under the Securities Act of Texas in reliance upon
various exemptions contained therein; nor have the Obligations been qualified under the securities acts of any jurisdiction. The City
assumes no responsibility for qualification of the Obligations under the securities laws of any jurisdiction in which the Obligations may be
sold, assigned, pledged, hypothecated or otherwise transferred. This disclaimer of responsibility for qualification for sale or other
disposition of the Obligations must not be construed as an interpretation of any kind with regard to the availability of any exemption from
securities registration provisions.
LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TEXAS
Section 1201.041 of the Public Security Procedures Act (Chapter 1201, Texas Government Code) provides that the Obligations are
negotiable instruments, investment securities governed by Chapter 8, Texas Business and Commerce Code, and are legal and authorized
investments for insurance companies, fiduciaries, and trustees, and for the sinking funds of municipalities or other political subdivisions or
public agencies of the State of Texas. With respect to investment in the Obligations by municipalities or other political subdivisions or
public agencies of the State of Texas, the PFIA requires that the Obligations be assigned a rating of at least “A” or its equivalent as to
investment quality by a national rating agency. See “OTHER INFORMATION - RATINGS” herein. In addition, various provisions of the
Texas Finance Code provide that, subject to a prudent investor standard, the Obligations are legal investments for state banks, savings
banks, trust companies with at capital of one million dollars or more, and savings and loan associations. The Obligations are eligible to
secure deposits of any public funds of the State, its agencies, and its political subdivisions, and are legal security for those deposits to the
extent of their market value. The City has made no investigation of other laws, rules, regulations or investment criteria which might apply
to such institutions or entities or which might limit the suitability of the Obligations for any of the foregoing purposes or limit the authority
of such institutions or entities to purchase or invest in the Obligations for such purposes. No review by the City has been made of the laws
in other states to determine whether the Obligations are legal investments for various institutions in those states.
LEGAL OPINIONS
The City will furnish a complete transcript of proceedings incident to the authorization and issuance of the Obligations, including the
unqualified approving legal opinion of the Attorney General of Texas approving the Obligations and to the effect that the Obligations are
valid and legally binding obligations of the City, and based upon examination of such transcript of proceedings, the legal opinion of Bond
Counsel, to like effect and to the effect that the interest on the Obligations will be excludable from gross income for federal income tax
purposes under section 103(a) of the Code, subject to the matters described under “TAX MATTERS” herein, including the alternative
minimum tax on corporations. In its capacity as Bond Counsel, McCall, Parkhurst & Horton L.L.P. has reviewed the information under the
captions “PLAN OF FINANCING” (except for the subsection “SOURCES AND USES OF PROCEEDS”), “THE OBLIGATIONS,” “TAX
MATTERS,” “OTHER INFORMATION – LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TEXAS,” “OTHER
INFORMATION – REGISTRATION AND QUALIFICATION OF OBLIGATIONS FOR SALE,” “OTHER INFORMATION – LEGAL OPINIONS,” and
“CONTINUING DISCLOSURE OF INFORMATION” (except under the subheading “COMPLIANCE WITH PRIOR UNDERTAKINGS”, as to
which no opinion is expressed) in the Official Statement to determine whether such information fairly summarized matters of law and the
provisions of the documents referred to therein, and Bond Counsel is of the opinion that the information relating to the Obligations and the
Ordinances contained under such captions is a fair and accurate summary of the information purported to be shown. The legal fee to be
paid to Bond Counsel for services rendered in connection with the issuance of the Obligations is contingent on the sale and delivery of the
Obligations. The legal opinion will accompany the Obligations deposited with DTC or will be printed on the Obligations in the event of the
discontinuance of the Book-Entry-Only System. In connection with the transactions described in the Official Statement, Bond Counsel
represents only the City.
The various legal opinions to be delivered concurrently with the delivery of the Obligations express the professional judgment of the
attorneys rendering the opinions as to the legal issues explicitly addressed therein. In rendering a legal opinion, the attorney does not
become an insurer or guarantor of that expression of professional judgment, of the transaction opined upon, or of the future performance of
the parties to the transaction, nor does the rendering of an opinion guarantee the outcome of any legal dispute that may arise out of the
transaction.
AUTHENTICITY OF FINANCIAL DATA AND OTHER INFORMATION
The financial data and other information contained herein have been obtained from City 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.
36
FINANCIAL ADVISOR
First Southwest, a Division of Hilltop Securities Inc. is employed as Financial Advisor to the City in connection with the issuance of the
Obligations. The Financial Advisor's fee for services rendered with respect to the sale of the Obligations is contingent upon the issuance
and delivery of the Obligations. First Southwest, a Division of Hilltop Securities Inc., in its capacity as Financial Advisor, has relied on
the opinions of Bond Counsel and has not verified and does not assume any responsibility for the information, covenants and
representations contained in any of the legal documents with respect to the federal income tax status of the Obligations, or the possible
impact of any present, pending or future actions taken by any legislative or judicial bodies.
The Financial Advisor has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to the
City and, as applicable, to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the
Financial Advisor does not guarantee the accuracy or completeness of such information.
VERIFICATION OF ARITHMETICAL AND MATHEMATICAL COMPUTATIONS
Grant Thornton LLP, a firm of independent certified public accountants, will deliver to the Issuer, on or before the settlement date of the
Obligations, its verification report indicating that it has verified, in accordance with the Statement on Standards for Consulting Services
established by the American Institute of Certified Public Accountants, the mathematical accuracy of (a) the mathematical computations of
the adequacy of the cash and the maturing principal of and interest on the Escrow Securities, to pay, when due or upon early redemption,
the principal of, interest on and related call premium requirements, if any, of the Refunded Obligations and (b) the mathematical
computations of yield used by Bond Counsel to support its opinion that interest on the Obligations will be excluded from gross income for
federal income tax purposes.
Grant Thornton relied on the accuracy, completeness and reliability of all information provided to it by, and on all decisions and approvals
of, the Issuer. In addition, Grant Thornton has relied on any information provided to it by the Issuer’s retained advisors, consultants or
legal counsel. Grant Thornton was not engaged to perform audit or attest services under AICPA auditing or attestation standards or to
provide any form of attest report or opinion under such standards in conjunction with this engagement.
CERTIFICATION OF THE OFFICIAL STATEMENT AND NO-LITIGATION CERTIFICATE
At the time of payment for and delivery of the Obligations, the Initial Purchasers will be furnished a certificate, executed by the proper City
officials, acting in their official capacity, to the effect that to the best of their knowledge and belief: (a) the descriptions and statements of
or pertaining to the City contained in its Official Statement and any addenda, supplement or amendment thereto, for its Obligations on the
date of such Official Statement, on the date of purchase of said Obligations, and on the date of delivery, were and are true and correct in all
material respects; (b) insofar as the City and its affairs, including its financial affairs, are concerned, such Official Statement did not and
does not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading; (c) insofar as the descriptions and
statements, including financial data, of, or pertaining to, entities other than the City and their activities contained in such Official Statement
are concerned, such statements and data have been obtained from sources which the City believes to be reliable and that the City has no
reason to believe that they are untrue in any material respect; (d) there has been no material adverse change in the financial condition of the
City since September 30, 2016, the date of the last audited financial statements of the City and (e) except as disclosed herein, no litigation
of any nature has been filed or is pending, as of that date, of which the City has notice to restrain or enjoin the issuance, execution or
delivery of the Obligations, in any manner questioning the authority or proceedings for the issuance, execution, or delivery of the
Obligations; or which would affect the provisions made for their payment or security, or in any manner question the validity of the
Obligations.
FORWARD-LOOKING STATEMENTS
The statements contained in this Official Statement, and in any other information provided by the City, that are not purely historical, are
forward-looking statements, including statements regarding the City's expectations, hopes, intentions, or strategies regarding the future.
Readers should not place undue reliance on forward-looking statements. All forward-looking statements included in this Official
Statement are based on information available to the City on the date hereof, and the City assumes no obligation to update any such
forward-looking statements. The City's actual results could differ materially from those discussed in such forward-looking statements.
The forward-looking statements included herein are necessarily based on various assumptions and estimates and are inherently subject to
various risks and uncertainties, including risks and uncertainties relating to the possible invalidity of the underlying assumptions and
estimates and possible changes or developments in social, economic, business, industry, market, legal, and regulatory circumstances and
conditions and actions taken or omitted to be taken by third parties, including customers, suppliers, business partners and competitors, and
legislative, judicial, and other governmental authorities and officials. Assumptions related to the foregoing involve judgments with respect
to, among other things, future economic, competitive, and market conditions and future business decisions, all of which are difficult or
impossible to predict accurately and many of which are beyond the control of the City. Any of such assumptions could be inaccurate and,
therefore, there can be no assurance that the forward-looking statements included in this Official Statement will prove to be accurate.
37
INITIAL PURCHASERS
After requesting competitive bids for the Bonds, the City accepted the bid of ______________ (the "Initial Purchaser of the Bonds") to
purchase the Bonds at the interest rates shown on the (inside) cover page of the Official Statement at a price of ______(%) of par plus a
cash premium of $____________. The Initial Purchaser of the Bonds can give no assurance that any trading market will be developed for
the Bonds after their sale by the City to the Initial Purchaser of the Bonds. The City has no control over the price at which the Bonds are
subsequently sold and the initial yield at which the Bonds will be priced and reoffered will be established by and will be the responsibility
of the Initial Purchaser of the Bonds.
After requesting competitive bids for the Certificates, the City accepted the bid of ______________ (the "Initial Purchaser of the
Certificates") to purchase the Certificates at the interest rates shown on the (inside) cover page of the Official Statement at a price of
______(%) of par plus a cash premium of $____________. The Initial Purchaser of the Certificates can give no assurance that any trading
market will be developed for the Certificates after their sale by the City to the Initial Purchaser of the Certificates. The City has no control
over the price at which the Certificates are subsequently sold and the initial yield at which the Certificates will be priced and reoffered will
be established by and will be the responsibility of the Initial Purchaser of the Certificates.
MISCELLANEOUS
The Ordinances authorizing the issuance of the Obligations will also approve the form and content of this Official Statement, and any
addenda or amendment thereto, and authorize its further use in the reoffering of the Obligations by the Initial Purchasers.
Mayor
City of College Station, Texas
ATTEST:
City Secretary
City of College Station, Texas
S - 1
Schedule I
SCHEDULE OF REFUNDED OBLIGATIONS*
General Obligation Debt
Par Amount Par Amount
Maturity Interest to be Call Call Maturity Interest to be Call Call
February 15 Rate Refunded*Date Price February 15 Rate Refunded*Date Price
2023 4.125%1,415,000$2/15/2019 100.00 2024 (1)4.300%200,000$2/15/2019 100.00
2024 4.250%1,485,000 2/15/2019 100.00 2025 (1)4.300%210,000 2/15/2019 100.00
2025 5.000%1,570,000 2/15/2019 100.00 2026 (2)4.500%220,000 2/15/2019 100.00
2026 4.500%1,645,000 2/15/2019 100.00 2027 (2)4.500%225,000 2/15/2019 100.00
2027 4.500%1,730,000 2/15/2019 100.00 2028 (3)4.650%250,000 2/15/2019 100.00
7,845,000$2029 (3)4.650%260,000 2/15/2019 100.00
1,365,000$
General Obligation Improvement Bonds, Series 2009Certificates of Obligation, Series 2009
__________
*Preliminary, subject to change.
(1)Represents a term bond with a stated maturity February 15, 2025.
(2)Represents a term bond with a stated maturity February 15, 2027.
(3)Represents a term bond with a stated maturity February 15, 2029.
APPENDIX A
GENERAL INFORMATION REGARDING THE CITY
A - 1
THE CITY
The City, located in Brazos County, is situated in the middle of a triangle bounded by Dallas/Fort Worth, Houston, and San
Antonio/Austin. Approximately 80% of the Texas population is located within a 200 mile radius of the City. In addition to being
a residential community for faculty, students and other personnel of Texas A&M University, the City also serves as a regional
manufacturing, retail and health care hub.
The City was incorporated in 1938 and has a Council-City Manager form of government with City employees totaling 961.8
currently.
The City adopted and enforces comprehensive zoning and building restrictions aimed at assuring orderly growth and
development. The City’s ordinances require all subdividers, at their own expense and without provision for refund, to install
streets and water and wastewater lines in any planned subdivision. These facilities are constructed under the City’s specifications
and inspection and when completed are deeded to the City free and clear. All areas within the City are now adequately served
with water, wastewater and electric service.
Proximity to three of the nation’s largest cities, college-town cultural amenities, low cost of living, varied housing options, warm
climate and low crime rate have resulted in significant population growth over the last decade.
CITY OWNED FACILITIES
The City maintains approximately 543 linear miles of streets within city limits, 99% of which are hard surface. The City has a
complete water distribution, wastewater collection and treatment system with 786 miles of wastewater and water lines. The City
owns the electrical distribution system with approximately 471 miles of distribution lines and 20 miles of 138kv transmission
lines.
The City has a fully equipped police department with 132 full time police officers and 74 support personnel. The department has
39 police patrol cars and one holding facility with a capacity of 17. The fire department consists of 150 full time fire fighters and
7 support personnel. There are six stations and a total of 8 engines, 6 ambulances, 2 command vehicles, 1 rescue truck, 2 ladder
trucks, 1 tanker truck, and 1 grass fire truck.
EDUCATIONAL FACILITIES
The College Station Independent School District (the “School District”) is a fully accredited system offering 16 educational
campuses for pre-kindergarten through high school. The School District has a student enrollment in excess of 12,500 and employs
close to 1,700 people. On November 3, 2015 the voters passed a bond proposition for the School District that includes the
construction of three additional facilities. The bonds would fund a third intermediate school in the 2017-2018 school year and a
third middle school and tenth elementary school in the 2018-2019 school year. The School District’s facilities are also used by
Blinn College, a community college offering two years of college level courses.
College Station is home to Texas A&M University which provides higher education, offering both four year college programs and
graduate degree programs to over 66,000 enrolled students.
HEALTH CARE
College Station Medical Center, affectionately called ‘The Med’, is a 200,000 square foot community healthcare provider located
on 25 acres within the city limits of College Station. The Med is a 167-bed facility and is a licensed Level III Trauma unit.
College Station Medical Center is the only hospital in the Brazos Valley Region to receive national certification in joint
replacement from the Joint Commission. They are also an accredited Chest Pain Center, a certified Primary Stroke Center and the
region’s first accredited Sleep Center. The over 650 healthcare professionals work every day to be a place of healing, caring and
connection for patients and families in the community.
Rock Prairie Behavioral Health is a 72-bed state-of-the-art psychiatric hospital built specifically with patients’ needs in mind and
is dedicated to providing quality behavioral health care to promote growth and recovery for patients and families throughout the
state of Texas. The acute psychiatric hospital treats adolescents, adults, and seniors in both inpatient and outpatient settings. The
treatment facility is located in the heart of the Brazos Valley, conveniently located in College Station.
Baylor Scott & White Medical Center – College Station is a 403,000 square foot, five story, 143-bed hospital located on a 98 acre
campus near the intersection of Texas Highway 6 and Rock Prairie Road within the City of College Station. Baylor Scott &
White Medical Center – College Station is a nationally accredited Chest pain Center as well as a Level III Trauma Center. Scott
& White Clinic – Rock Prairie, a four-story medical office building, is also located on the campus adjacent to the hospital. Baylor
Scott and White Medical Center - College Station houses an emergency department, cardiac services including cath labs, neonatal
intensive care unit, comprehensive cancer services, operating rooms, maternity services suites, endoscopic procedure suites, intra
operative robotics and other specialty services, all supported by a pharmacy, comprehensive state-of-the-art imaging technology
and other diagnostic capabilities.
A - 2
Other area health care providers include: St. Joseph Regional Health Care Center, Baylor Scott and White Clinic, and The
Physicians Centre.
Medical District
The City recently amended its Comprehensive Plan to include the College Station Medical District Master Plan. The Master Plan
establishes guiding principles for the development of approximately 1,700 acres in south College Station to accommodate medical
facilities, walkable village centers, commercial space, and a variety of residential unit types, all in close proximity to parks, open
space, and trails. To ensure the long-term success of the District, the City has created two Tax Increment Reinvestment Zones to help
fund the necessary infrastructure. The City is also in the process of establishing 2 Municipal Management Districts to be used as a tool
for development of these areas as well.
TRANSPORTATION
U.S. Highway 190/State Highway 21 links the City to Interstate 45 which is located approximately 35 miles to the east. State
Highway 21 via U.S. Highway 290 also links the City to Austin, located approximately 110 miles to the west. State Highway 6 links
the City to Waco (100 miles) and Interstate 35 to the north and Houston (90 miles) to the south. Also, State Highway 30 links the City
to Huntsville (45 miles) and Interstate 45 to the east.
Airlines Commercial, corporate and private airport facilities are provided by Easterwood Airport, which is located
on the City’s west side and is owned and operated by Texas A&M University. American Eagle Airlines
provides daily flights to and from Dallas-Fort Worth Airport out of Easterwood. United Airlines provides
daily flights to and from Houston Bush Intercontinental Airport out of Easterwood.
Coulter Field is located north of the City of Bryan and provides a 4,000 foot lighted runway. Coulter Field
offers all types of services for the private aircraft.
Bus Lines Two bus lines serve the City with daily service connecting the City with Houston and Dallas.
Railroads Rail freight service is provided by the Union Pacific Railroad. Union Pacific Railroad operates a main
freight line from Houston through Bryan-College Station to Dallas-Fort Worth and beyond.
RECREATION
The College Station park system presently includes 58 parks encompassing 1448 acres, including a 515 acre wilderness park, and a
150-acre regional athletic park. Collectively, these parks contain 63 playgrounds, 33 soccer fields, 26 basketball courts, 43
softball/baseball backstops, 14 tennis courts, 3 swimming pools, a spray park, a skate park, a gymnasium, an outdoor amphitheater
with a green room and plaza area, 1 festival site and a number of picnic shelters and 8 picnic pavilions. The Parks and Recreation
Department sponsors a variety of organized athletic and aquatic programs as well as many special events throughout the year.
POPULATION
1970 1980 1990 2000 2010
City of College Station 17,676 37,272 52,456 67,890 93,857
Brazos County 57,978 93,588 121,862 152,415 194,851
Official U.S. Census(1)
__________
(1)U.S. Census Bureau, American Community Survey
ECONOMIC BACKGROUND
Texas A&M University and System
Texas A&M opened its doors in 1876 as the state’s first public institution of higher learning. Located in College Station, Texas
(about 90 miles northwest of Houston and within a two to three-hour drive from Austin and Dallas), Texas A&M’s main campus is
home to over 66,000 students, with more than 436,000 former students worldwide. As one of only 62 members of the prestigious
Association of American Universities (AAU), an association of leading public and private research universities in the United States
and Canada, Texas A&M boasts some of the top programs in academic research and scholarship. Texas A&M and the Texas A&M
University System employ more than 27,000 full and part-time personnel.
Texas A&M is one of only 17 institutions in the nation to hold the triple designation as a land-grant, sea-grant, and space-grant
university.
A - 3
In May 2016, the Chancellor of The Texas A&M University System unveiled plans to invest $150 million to create a new research
and development campus to help companies move ideas from the laboratory to the marketplace while also offering a new path toward
a college degree. The facility, to be located at a revamped and renamed Riverside Campus in Brazos County, initially will include a
cluster of seven new buildings and test beds to encourage the private sector to develop secure research facilities adjacent to the
System’s site. The facility, named the RELLIS Campus will focus on robotics, driverless and connected vehicles, advanced
manufacturing, large-scale testing as well as smart power grids and water systems.
George Bush Presidential Library and Museum
The City is the site of the George Bush Presidential Library and Museum, located on the campus of Texas A&M University. Texas
A&M provides programs and facilities such as research and instructional programs related to the library and museum, a conference
center, communications center, educational museum/library center, and family-oriented facilities such as a park surrounding the
presidential library and museum. The Presidential Library and Museum is also part of the George Bush Presidential Library Center
which is home to the prestigious Bush School of Government and Public Service.
Century Square
The City continues to experience a sustained period of growth. The growth has resulted in continued retail development, especially in
the Tower Point and Caprock developments in the southern part of the City with new restaurants and other businesses opening and
others under construction to serve the ever growing residential populations in that area of the City. However, that growth has
expanded to the north side of College Station where mixed-used facilities and additional hotels near the Texas A&M campus are
under construction.
One such development is Century Square. This 60-acre development creates a dynamic community center where people congregate
from across the region to experience a walkable, urban destination. The project features premier retail and restaurant establishments,
entertainment venues, 60,000 SF of Class-A office, two full-service hotels: The George and Cavalry Court, luxury apartment homes:
100 Park, and an activated central gathering space.
Athletics
Athletics is an integral part of College Station. Texas A&M University, along with the City, hosts a multitude of athletic events. Texas
A&M University is the home of Kyle Field, Reed Arena, Olsen Field at Bluebell Park, Aggie Softball Complex, George P. Mitchell
Tennis Center and Gilliam Indoor Track Stadium. Several of Texas A&M teams have won both conference and national titles over the
past five years with every university varsity level team competing in post-season play for the 2015-2016 season. This has positioned
the University to host regional payoffs as well as national championship games. Texas A&M’s move to the Southeastern Conference
(SEC) in 2012 has proved positive for the City. For the Texas A&M’s football team ranked third in the nation in average attendance
for both the 2015 and 2016 seasons, according to figures released by the NCAA.
For the 2016 season, A&M drew 101,917 fans per game last season at the rebuilt Kyle Field, trailing only Michigan (110,468) and
Ohio State (107,278). Capacity at Kyle Field is 102,512, the largest in the Southeastern Conference.
The City’s sport complex’s as well as the ease to get around makes College Station attractive to several organizations. Over the past
several years, the Amateur Softball Association and the Texas Amateur Athletic Federation have chosen College Station to host state
tournaments and events. In addition, the City facilitates two major softball tournaments, a soccer tournament, a 7 on 7 flag football
tournament and baseball tournaments throughout the year. The City plans to add 2 additional synthetic athletic fields at Veterans Park
and Athletic Complex. This is anticipated to allow additional tournaments to be held in this area.
A - 4
MAJOR AREA EMPLOYERS
Number of
Firm Name Product Employees
Texas A&M University and System Education/Research 27,000+
Bryan ISD Education 2000+
Texas A&M Health Science Center Education 2000+
Reynolds & Reynolds Computer Hardware and Software 1800+
College Station ISD Education 1700+
Blinn College - Bryan Campus Education 1000+
Sanderson Farms, Inc.Poultry Processing 1000+
CHI St. Joseph's RegionalHospital Health Service 1000+
Wal-Mart/Sam's Retail 1000+
HEB Grocery Retail 1000+
Brazos County Government 500-999
City of Bryan Government 500-999
City of College Station Government 500-999
College Station MedicalCenter Health Service 500-999
Ply Gem Windows Manufacturing 500-999
Baylor Scott & White Health Service 500-999
Source: Research Valley Partnership
Employment is provided by a variety of high growth industries located in, or adjacent to, the City which include ambulatory health
care services; professional, scientific, and technical services; specialty trade contractors; food manufacturing; administrative and
support services as identified in the Local Employment Dynamics data. Additionally College Station is also home to the 350 acre
Research Park, located on the Texas A&M University campus, which houses 30 public-private tenants including the Research Valley
Partnership, Schlumberger, Texas A&M Transportation Institute, and Offshore Technology Research Center. The City also developed
the 200-acre, Class “A” Business Center at College Station (BCCS), tenants of which include Reynolds and Reynolds Cognizant
Technology Solution, Suddenlink Media, Stata Corporation, Heat Transfer Research, Inc. (HTRI), and the Texas A&M University
System. In addition, the City has worked to develop a new Science Park at Research Valley, which currently houses Lynntech, Inc.
and RBC Technologies.
A - 5
LABOR STATISTICS
College Station
Labor Total
Force Employment Unemployment Rate
2010 47,301 44,488 2,813 5.9%
2011 47,972 44,939 3,033 6.3%
2012 47,092 44,328 2,764 5.9%
2013 51,136 48,665 2,471 4.8%
2014 52,028 49,945 2,083 4.0%
2015 52,739 51,023 1,716 3.3%
2016 55,788 53,913 1,875 3.4%
2017 (1)56,962 55,002 1,960 3.4%
Year
Brazos County
Labor Total
Force Employment Unemployment Rate
2010 99,119 93,101 6,018 6.1%
2011 100,643 94,245 6,398 6.4%
2012 98,755 92,963 5,792 5.9%
2013 103,089 98,074 5,015 4.9%
2014 104,334 100,180 4,154 4.0%
2015 105,935 102,343 3,592 3.4%
2016 110,420 106,643 3,777 3.4%
2017 (1)112,774 108,797 3,977 3.5%
Year
Source: Texas Workforce Commission.
(1) As of February 28, 2017
BUILDING PERMITS
College Station has grown rapidly over the past 30 years as evidenced by an increase in population from 37,272 in 1980 to 93,857 in
2010. As of 2017, the estimated population of College Station was 109,936. The following table sets forth the number and value of
construction permits issued by the City over the past several years.
ResidentialConstruction CommercialConstruction Total
Number Number Number
of Permits Value of Permits Value of Permits Value
2007 990 161,466,990$413 74,683,795$1,403 236,150,785$
2008 1,131 164,494,779 346 154,313,994 1,477 318,808,773
2009 792 82,316,558 243 46,947,099 1,035 129,263,657
2010 860 93,158,066 309 162,053,510 1,169 255,211,576
2011 971 124,132,135 359 123,779,052 1,330 247,911,187
2012 1,208 149,737,218 325 67,478,910 1,533 217,216,128
2013 1,030 145,142,757 333 67,516,132 1,363 212,658,889
2014 1,167 211,909,494 338 67,570,229 1,505 279,479,723
2015 1,687 206,336,883 294 78,209,095 1,981 284,545,978
2016 1,802 325,247,597 424 207,892,402 2,226 533,139,999 (1)
Calendar
Year
Source: The City.
(1)Reflects January through December 2016.
A - 6
COUNTY CHARACTERISTICS
Brazos County was created in 1841 from Robertson and Washington Counties. The economy is diversified primarily by agribusiness,
computer manufacturing, research and development, and education. The Texas Almanac designates cattle, hogs, sorghums, corn,
cotton, wheat, oats and pecans as the principal sources of agricultural income.
The County had a 2010 population of 194,851, an increase of 27.8% since 2000. Minerals produced in the County include sand and
gravel, lignite, gas and oil.
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APPENDIX B
EXCERPTS FROM THE
CITY OF COLLEGE STATION, TEXAS
ANNUAL FINANCIAL REPORT
For the Year Ended September 30, 2016
The information contained in this Appendix consists of excerpts from the City of College
Station, Texas Annual Financial Report for the Year Ended September 30, 2016, and is not
intended to be a complete statement of the City's financial condition. Reference is made to
the complete Report for further information.
APPENDIX C
FORMS OF OPINIONS OF BOND COUNSEL