HomeMy WebLinkAbout01/23/1985 - Workshop Minutes City Council MINUTES
WORKSHOP CITY COUNCIL MEETING
WEDNESDAY, JANUARY 23, 1985
4:00 P.M.
COUNCIL MEMBERS PRESENT:
Mayor Halter, Councilmen Boughton,
McIlhaney, Prause, Runnels
COUNCIL MEMBERS ABSENT: Councilman Anderson
STAFF PRESENT:
City Manager Bardell, Assistant City
Manager VanDever, Director of Capital
Improvements Ash, City Secretary Jones,
City Attorney Locke, Deputy Finance Di-
rector Schroeder, Utilities Office Man-
ager Piwonka, Personnel Manager
Dickson, Administrative Assistant
Magoon, Printing Coordinator Fry, Coun-
cil Coordinator Jones
STUDENT GOVT. LIAISON:
Mike Hachtman
VISITORS PRESENT:
See guest register.
The meeting was called to order with all members of the the Coun-
cil present except Councilmen Anderson and Prause.
Agenda Item No. 1 - Council Concerns.
Councilman McIlhaney stated that she had received a letter from
Brazos Beautiful regarding distribution of a monthly "Brazos
Beautiful Flyer" providing information about the local communi-
ties. She asked City Manager Bardell to submit some information
about the City of College Station to Dorothy Miller, who will be
writinG the publication. She noted that the deadline for submit-
ting information is January 24, 1985.
Councilman McIlhaney asked if the State is responsible for main-
tenance of the State Highway 6 Bypass access roads. She stated
that the roads are not being maintained adequately.
Agenda Item No. 2 - Consider adoption of an Ordinance authorizing
the issuance and sale of up to $35,000,000.00 Utility System Rev-
enue Refunding Bonds, Series 1985, provide the details relating
thereto, authorize an agreement with the Paying Agent/Registrar,
authorize a Surety Bond in lieu of a Reserve Fund for such Bonds,
authorize an Escrow Agreement providing firm banking and finan-
cial arrangements for the Bonds for redemption and take all Qther
action necessary or appropriate in connection with any of the
foregoing matters.
Mayor Halter removed this item from the agenda.
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REGULAR CITY COUNCIL MEETING
WEDNESDAY, JANUARY 23, 1985
PAGE 2
Agenda Item No. 3 - Consideration of an Ordinance fixing and de-
termining the General Service Rate to be charged for sales of
natural gas to residential and commercial consumers in the City
of College Station, Brazos County, Texas; providing for the man-
ner in which such Rate may be changed, adjusted, and amended; and
providing for the recovery of any current and unrecovered prior
Rate Case Expenses, providing for a schedule of service charges,
and providing for a Main Line Extension Rate.
Discussion of Agenda Item No. 3 was delayed until after Agenda
Item No. 6.
Agenda Item No. 4 - Discussion of the site for the Police Station
Renovation.
Director of Capital Improvements Ash presented the item. He re-
ferred to a drawing depicting the proposed expansion. He stated
that expansion of the Police Station facility will either have to
be to the east or to the west. He pointed out on the map the
portion of the property to the south that is located in the
floodplain and floodway and recommended that the expansion not
occur in this vicinity. He explained that the proposed plans
call for the construction of a two-story building, facing Texas
Avenue, to be located in front of the existing building. He
noted that the facility will be constructed to allow for future
expansion up to five stories. He explained the proposed parking
arrangements. He stated that expansion to the west would neces-
sitate that the pond be filled. He noted that the Capital Im-
provements Council Committee and Staff agree the pond is a nice
attraction and provides positive public relations for the city.
He pointed out that the pond also serves as a retention pond for
drainage in this vicinity. He listed the two alternatives re-
garding the pond if expansion of the Police Station facility is
located to the west, as follows: (1) The pond can be filled en-
tirely; or (2) The pond can be excavated towards Texas Avenue and
enlarged in an east/west direction. He noted that Alternative
No. (2) is a cheaper method because the dirt from the excavation
can be used as fill for the project.
Councilman Prause arrived at the meeting.
Mayor Halter stated that he would like to keep the pond because
it provides a nice setting for citizens to enjoy.
Councilman McIlhaney concurred with Mayor Halter's comment.
Mayor Halter noted that presently the area proposed for reloca-
tion of the pond is low and stands in water.
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WORKSHOP CITY COUNCIL MEETING
WEDNESDAY, JANUARY 23, 1985
PAGE 3
Councilman Boughton asked if the new pond will have approximately
the same amount of square footage as the existing pond.
Director of Capital Improvements Ash stated that an attempt will
be made to allow for an equal amount of square footage in each
pond to take advantage of the inexpensive fill dirt. He asked
for direction from the Council concerning the pond.
The Council concurred to proceed with the plan to relocate the
pond.
Mayor Halter asked that a meeting be scheduled with the architect
for the project, Municipal Judge Davis and Capital Improvements
Director Ash to discuss the plans for the Municipal Courtroom.
Agenda Item No. 5 - Discussion of Refund Methodolo~ for Gulf
States Rebate.
City Manager Bardell presented the item. He noted that the city
has received a rebate and earned interest in the amount of
$700,000.00 from the settlement of the city's last rate case with
Gulf States Utilities. He listed several options open to the
city on how to proceed with these funds as follows: (1) Retain
the dollars in the utility account as income; (2) Retain the dol-
lars in a reserve account and utilize the interest for special
projects in the energy area; (3) Rebate the dollars directly to
those who paid them; and, (4) Apply these funds to current power
costs to effect a reduction of the Power Cost Adjustment on cur-
rent customers bills. He explained the spreadsheet provided in
the packet which presents the recent history of the Power Cost
Adjustment, the projections of the Power Cost Adjustment for the
coming year and two plans for returning the dollars to the cus-
tomer via option four (4).
Councilman Boughton noted that not all the city's current utility
customers are due the rebate. She stated that she would prefer
to authorize the money to be deposited in a reserve account and
use the interest earned to develop and implement ongoing energy
projects that will provide greater savings to the citizens in the
long run.
Councilman McIlhaney asked about the type of energy saving pro-
grams that are being contemplated.
City Manager Bardell stated that some research has been done into
a project referenced by the initials SCADA, Source Control Acqui-
sition Data System. He explained that the city's electric system
has sensors throughout the system to determine the amount of
voltage that exists out the end of the system. He noted that
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WORKSHOP CITY COUNCIL MEETING
WEDNESDAY, JANUARY 23, 1985
PAGE 4
these sensors transfer data back to the Central Control, which
adjusts the voltage up or down in the transformers to provide op-
timum voltage control in the system. He noted that presently the
adjustments have to be made manually, but this system will allow
for the adjustments to be made automatically. He noted that the
cost of this system is approximately forty million dollars. He
further stated that this system could save the consumer approxi-
mately $100,000 per year.
Councilman Runnels asked how much interest could be earned yearly
if the rebate is deposited in a reserve account.
Assistant City Manager VanDever stated that the $700,000.00 dol-
lar rebate could earn approximately fifty to sixty thousand dol-
lars per year in interest.
Councilman McIlhaney asked if the survey taken by the Utility De-
partment included any questions pertaining to the refunding of
this rebate. She stated that she has discussed the matter with
several citizens who have indicated that they would prefer to
have the money refunded to the utility customers through Credit
Plan No. 1.
Councilman Prause requested additional information on the differ-
ent types of energy saving programs that are available.
City Manager Bardell stated that he would prepare and return to
Council in two weeks some projections of what return or savings
could be expected from some of the possible projects that could
be financed by the rebate.
The Council concurred with City Manager Bardell's statement.
AGenda Item No. 6 - Opening of Bids received for the leasing of
minerals in, on and under tracts of property owned or claimed by
the City of College Station, Texas.
Mayor Halter opened and read the following submitted bids:
Bids were opened for Tracts 1, 20, 26, 27, 28, 16, 21, 22 and 5
from Charles T. Hamilton, 25018 Londontown, Spring, Texas.
Bids were opened for Tracts 1, 16, 25, 26 and 27 from Threshold
Energy, Inc., 900 Southwest Parkway, College Station, Texas.
Bids were opened for Tracts 5, 25, 16, 21, 1, 10, 26, 28, 22, 27
and 4 from RDS Resources, Inc., 804 Finfeather, Bryan, Texas.
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WORKSHOP CITY COUNCIL MEETING
WEDNESDAY, JANUARY 23, 1985
PAGE 5
Agenda Item No. 3 - Consideration of an Ordinance fixin~ and de-
terminin~ the General Service Rate to be char~ed for sales of
natural ~as to residential and commercial consumers in the City
of College Station, Brazos County, Texas; providin~ for the man-
ner in which such Rate may be chan~ed, adjusted, and amended; and
providing for the recovery of any current and unrecovered prior
Rate Case Expense, providing for a schedule of service char~es,
and providin~ for a Main Line Extension Rate.
Mr. Dan Weber, representative for Lone Star Gas, presented a
brief overview of Lone Star Gas Company's rate increase request.
He stated that Lone Star Gas is requesting a 4.72 percent in-
crease in College Station. He noted that Lone Star Gas customers
are currently paying less for gas than they were twelve months
ago. He explained that the rate increase request is a result of
increased operating expenses, which include expenses other than
the cost of gas. He pointed out that the decrease in the cost of
gas has been passed on directly to the customer through the gas
cost adjustment. He displayed several charts summarizing the
following information: (1) Comparative Data Expense Per Customer
Incurred For Texas Distribution Operations; (2) Average Sales
Price Per MCF Residential and Commercial For 1982 and 1983; (3)
Comparison of Average Price Per MCF Sold LSG vs. Other State
Utility and Pipeline Companies (Industrial Only); (4) Comparison
of Equivalent Energy Use Gas vs. Electric Cost of Operation Per
Million BTU's Of Energy (Residential Only); and, (5) Distribution
of One Dollar Revenue For Lone Star Gas. He reviewed the State-
ment of Intent submitted by Lone Star Gas Company.
Councilman Runnels asked if the free limit established by Lone
Star Gas for Main Line Extension will change with annexation of
additional property into the city limits. Mr. Weber replied neg-
atively.
Mayor Halter stated that the Council will have to take action on
this matter prior to February 13, 1985 or the proposed rates will
automatically take effect. He suggested that the Council delay
consideration of this matter for ninety (90) days so that the
city's efforts can be coordinated with the efforts of the City of
Bryan.
Mr. Weber requested that the Council also consider a motion to
authorize a temporary rate increase.
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WORKSHOP CITY COUNCIL MEETING
WEDNESDAY, JANUARY 23, 1985
PAGE 6
Councilman Prause move to delay action on this matter for ninety
(90) days.
Councilman Runnels seconded the motion which was approved unani-
mously, 5-0.
Agenda Item No. 7 - Adjourn.
Mayor Halter adjourned the meeting at 5:20 P.M.
ATTEST~~:
Dian Jones
Gary l~al~, Mayor
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PRELIMINARY OFFICIAL STATEMENT DATED JANUARY 21, 1985
NEW IS~]r~E Ratings: MBIA Insured
Moody's --"Aaa"
S&P--"AAA"
The issuance of the Bonds is subject to the opinion of Bond Counsel to the effect that the interest on
the Bonds is exempt from all present Federal income taxes under existing statutes, regulations, published
rulings, court decisions and official interpretations thereof.
$33,050,000*
CITY OF COLLEGE STATION, TEXAS
(Brazos County)
UTILITY SYSTEM REVENUE REFUNDING BONDS, SERIES 1985
Dated: January 15, 19S5 Due: February 1, as shown below
The Bonds are special obligations of the City of College Station, Texas, issued pursuant to a bond
ordinance adopted by the City Council of the City of College Station, Texas and are payable from and
secured by a first lien on and pledge of the revenues derived from thc operation of the City's Utility System
(water, sewer and electric), after deduction of the reasonable expenses of maintenance and operation of
said system. The owner or owners of the Bonds shall never have the right to demand payment of the
principal and interest on the Bonds out of any funds raised or to be raised by taxation.
Interest on the Bonds will be due on August 1, 1985, and each February ! and August I thereafter
until the earlier of maturity or prior redemption. The Bonds will be issued in fully registered form in
integral multiples of $5,000, and principal and semi-annual interest will be payable by thc First City
National Bank of Houston, Houston, Texas, the paying agent/registrar (the "Registrar"). Principal of the
Bonds will be payable to the registered owner at maturity or redemption upon presentation of such Bonds
to the Registrar. Interest on the Bonds will be payable by check or draft, dated as of the interest payment
date, a,-.d mailed by the Registrar to registered owners as shown on the records of the Registrar as of the
fifteenth day of the month next preceding each interest payment date.
February 1
Maturity Schedule*
Yield Yield
Amount Maturity Rate or Price Amount Maturity Rate or Price
$2, ! 85,000 1986 ~.% __.% $2, 155,000 ! 994 __.% __.%
2,320,000 1987 __.% __.% 2,145,000 1995 __.% --.%
2,455,000 1988 __.% __.% 2,160,000 1996
2,415,000 1989 __.% ~.% 2,150,000 1997 ~.% ~.%
2,340,000 1990 __.% __.% 2,015,000 1998 __.% --.%
2,300,000 1991 __.~o __.% i,525,000 1999 % --.%
2,270,000 1992 __.% __.% 1,505,000 2000 % ~.%
2,180,000 1993 __.% __.% 930,000 2001 __.% ~.%
Optional Provisions
All Bonds maturing on or after February 1, 1996 are optional for redemption in whole or in part on
February i, 1995 or any interest payment date thereafter at par and accrued interest to the date fixed for
redemption. If less than all of the Bonds are redeemed at any time, the particular Bonds to be redeemed
shall be selected by the City in integral multiples of $5,000 within any one maturity. The registered owner
of any Bond, all or a portion of which has been called for redemption, shall be required to present same to
the Registrar for payment of the redemption price on the portion of the Bond so called for redemption and
issuance of a new Bond in the principal amount equal to the portion of such Bond not redeemed.
Delivery
The Bonds are offered when, as and if issued, subject to approval by the Attorney General of the State
of Texas and Messrs. Baker & Botts, Bond Counsel, Houston, Texas. Definitive Bonds are expected to be
available for delivery on or about January 30, 1985 in Austin, Texas.
This Official Statement was prepared under the direction of Moroney, Beissner & Co., Inc., Financial
Advis~-o..to ttie City and Moroney, Beissner & Co., Inc. is not a member of the Underwriting Group.
RAUSCHER PIERCE REFSNES, INC. UNDERWOOD, NEUHAU$ & CO., INCORPORATED
* Subject to change.
CITY OP COLLEGE BTATXOE, TEXAS
ADMINISTRATION
The Ci~y o~ Collese Station operates under a council-uanager form of goverment. ~he Mayor and
Council members must be citizens of the United States and qualified voters of ~he S~s~e of Texas; and
m~ ~ve resided vlChin the cor~raCe l~mlC8 of the City of College Station for ac least o~ (1) year
~x~ precedln~ ~he election a~ vhich ~he~ ire caudi~tes.
~e hyor and six Council Mm~F8 are elected fr~ ~he Ci~y a~ lar~. In each eve~d
~hree ~uncil meagre and ahyor ere elected, and in each odd-~m~red year ~h~e Council meagre are
elected. ~e ~yor and each Council ~mber hold office for a per~od o~ cwo years and un~il hie
successor 18 elected and q~li[~ed.
A vacancy in the City Council Lo ~illed ~ a special election which mus~ ~ ~lled
si ~he ~currence si such vacancy. I[ a vacancy ~cur8 wi~hin 90 days precedin~ · ~neral elect[one no
special election ~11 ~ called and the vacancy ~[11 ~ filled a~ ~he ~x~ ~eneral elec~i~.
AIl po~rs si ~he City are ves~ed in au elective council vhich e~c~s local legislation, adopts
~dse~s, ~e~ineo ~licie8, and ~ploys ~he City ~na~er, who executes ~he law8 and a~nioCero ~he
8over~en~ of ~he City. ~e Ci~y Cou~[1 dete~s the ~ls si ~he City end opera,es as a ~l[cy
uakin~ body. ~e City hna~er executes ~he ~llc[es of ~he ~uncil concernlns ua~ers of ~licys
~reon~le and budseC[n8.
Official Title
Dr. Gary N. Halter ~ayor
Fear/cia B. Boushton
Dr. Robert Runnels
Dr. Alvin Preuse
Lynn Mc Ilhaney
Vicky H. Belnke
C~ry Anderson
Count i lwoman
Co usc i lman
Councilman
Count i lvouan
Co usc i lwo nan
Counc il=an
ELECTED OFFICIALS
Lansth Tam
of Service Expires Occupation
9 1/2 Years 4/86
6 1/2 Years 4/86
4 1/2 Years 4/86
3 1/2 Years 4/85
2 1/2 Years 4/86
I 1/2 Years 4/85
1 1/2 Years 4/85
Associate Professor, Dept. of
Political Science, Texas A & N
University
~.o~emaker
Assistant Professor~ Dept. o£
Heteorolosy, Texas A 6 #
University
Pediatrician
Rouemeker
Technical Writer, Texas
Enslneerins Extension Service
Sr. Vice President,
First Bank & Truer
ADMINISTRATIVE OFFIC L%LS
Posi tlon
Offichtl
North Bardell
A.E. Vms Darers Jr.
Glenn Schroeder
IHen Jones
Elrey B. Ash II
Lone ll F. Denton
Horoney, Beissner & Co.,
City Manager
Asst. City M~r. & Director
of Finance
Deputy Director of Finance/
T~x Assessor-collector
City Secretery
IHrector of Capital Iuprovemente
City Attorney
Financial Advisors
*With the City; t~o years in present position.
Years of Service
10 1/2 Years
6 1/2 Years
7 1/2 Years
32 1/2 Years*
10 1/2 Ynere
4 1/2 Years
29 1/2 Years
BOND COUNSEL
Baker & Botts, Houston, Texas
Authorization
The City of College Station, Texas (the 'City') is a political subdivision of the
State of Texas and a municipal corporation organized and existing under the laws of
the State of Texas, including its duly adopted Home Hule Charter (the mCharter') and
is authorized by the Charter and by Article 1175, Vernon's Annotated Texas Civil
Statutes ('V.A.T.C.S.'), as emended, to own, operate and maintain a water, sewer and
electric utility system (the 'System'). The Bonds are issued pursuant to the Charter
and the general laws of the State of Texas, particularly Article 717k, V.A.T.C.S., and
additionally pursuant to an ordinance authorizing the issuance and sale of the Bonds
(the UBond Ordinance') passed by the City Council on the date of sale of the Bonds.
Security
The Bonds will constitute valid and legally binding special obligations of the City of
College Station, Texas, payable from and secured by a first lien on and pledge of the
revenues derived from the operation of the System, after deduction of the reasonable
expenses of maintenance and operation of the System. The owner(s) of the Bonds shall
never have the right to demand payment of the principal and interest on the Bonds out
of any funds raised or to be raised by taxation.
Payment aecord
The City has never defaulted.
PLAN OF FINANCING
The $33,050,000* Utility System Revenue Refunding Bonds, Series 1985 (the "Bondsm) are
being issued to refund all of the City's outstanding Utility System Revenue Bonds (the
'Refunded Bonds') which include the followings
Original Issue Amount
Amount Style Outstanding
600,000
$ 150,000
Waterworks & Sewer System & Electric Light &
Power System Revenue Bonds, Series 1967
800,000 Utility System Revenue Bonds, Series 1971 280,000
500,000 Utility System Revenue Bonds, Series 1973 225,000
3,000,000 Utility System Revenue Bonds, Series 1976 2,100,000
6,145,000 Utility System Revenue Bonds, Series 1979 5,175,000
3,000,000 Utility System Revenue Bonds, Series 1981 2,100,000
4,220,000 Utility System Revenue Bonds, Series 1982 3,400,000
9,325,000 Utility System Revenue Bonds, Series II 1982 8,800,000
17,380,000 Utility System Revenue Bonds, Series 1984 17r380r000
Total .............................................
$39,610,000
shown above are optional for redemption on February 1, 1987 or
The Series 1982 Bonds
any interest payment date thereafter at par and accrued interest. The Series 1982
Bonds will be called on the initial option date.
The principal and interest payments on the Refunded Bonds are to be paid on the dates
each co, es due (except the optional portion of the Series 1982 Bonds, the principal of
which will be paid on the February l, 1987 option date) from funds to be deposited
with First City National Bank of Houston, Houston, Texas (the 'Escrow AgentU).
The Bond Ordinance provides that from the proceeds of the sale of the Bonds to the
Underwriters, and from other funds of the City now on hand and lawfully available for
such purpose, the City will deposit with the Escrow Agent the a~unt necessary to
accomplish the discharge and final payment of the Refunded Bonds. Such funds will be
held by the Escrow Agent in an escrow account (the 'Escrow Fund') and used to purchase
direct obligations of the United States of America (the UFederal Securities'). Touche
Ross & Co., Certified Public Accountants, will verify at the time of delivery of the
Bonds to the initial purchasers thereof that the Federal Securities will mature at
such times and yield interest in such amounts that, together with uninvested funds, if
any, in the Escrow Fund, will be sufficient to pay, when due, the principal and
interest on the Refunded Bonds at their scheduled maturities or prior redemption. Such
maturing principal of and interest on the Federal Securities will not be available to
the Bonds.
*Subject to ahange.
Under a certain Speclal Escrow Agreement (the 'Escrow Agreement') to be dated as of
January 30, 1985 between the City and the Escrow Agent, the Escrow Fund is irrevocably
pledged to the payment of principal of and interest on the Refunded Bonds.
By the deposit of the Federal Securities and cash with the Escrow Agent pursuant to
the Escrow Agreement, the City will have effected the defeasance of the Refunded Bonds
pursuant to the terms of the Bond Ordinance. In the opinion of Bond Counsel, as a
result of such defeasance, the Refunded Bonds will no longer be payable from the net
revenues of the System but will be payable solely from the principal of and interest
on the Federal Securities and cash held for such purpose by the Escrow Agent, and the
first lien on and pledge of net revenues of the System for the payment of the
principal and interest on the Refunded Bonds will be discharged.
Sources and Uses of Funds
The proceeds from the sale of the Bonds will be applied approximately as follows:
Sources of Funds:
Principal amount of the Bonds ......... $
Interest and Sinking Funds ............
Reserve Fund ..........................
Accrued Interest ......................
Total Available Funds .................
Use of Funds:
Deposit in Escrow Fund (Federal
Securities and Cash) ..............
Cost of Issuance ......................
Total Use of Funds ....................
MUNICIPAL BOND INSURANCE
The following information has been supplied by and is the sole responsibility of the
Municipal Bond Insurance Association
The City has received a commitment from MBIA for a policy of insurance on the Bonds.
The policy unconditionally guarantees the timely payment of principal of and interest
on the Bonds to the paying agent of the Bonds. The policy is non-cancellable and the
premium will be fully paid at delivery of the Bonds. Upon notification of failure by
the City to deposit ~ull payment of principal and interest coming due with the paying
agent, MBIA's members are obligated to deposit funds promptly with Citibank, N.A., New
York, New York, as fiscal agent for MBIA, sufficient to fully cover the deficit in the
Paying Agent's account.
The insurers will be responsible for such payments, less any amounts received by the
holders of the Bonds frem the City or from any other sources other than the insurers.
Normally, notice of an impending default will be received An advance of the payment
date of the Bonds allowing MBIA time to make the funds available for payment on the
due date. If notice of non-payment is received on or after the due date, MB~A will
provide for payment on the business day following receipt of the notice. Upon payment
by MBIA of principal or interest on any Bonds, MBIA becomes the owner thereof.
The insurance companies comprising MBIA and their respective percentage liability are
as follows: The Aetna Casualty and Surety Company, thirty-three percent (33%);
Fireman's Fund Insurance Cempany, thirty percent(30%); The Travelers Inde~nnity
C~upany, fifteen percent (15%); Aetna Insurance Company, twelve percent (12%); and The
Continental Insurance Cempany, ten percent (10%). The policy is a several and not a
joint insurance policy obligation of the participating inaurance companies. Each
company's participation is becked by its entire resources.
The following table sets forth financial information with respect to the five member
companies of MBIA. The statistics are as reported by the member companies to the New
York State Insurance Department.
Aetna
Casualty
Assets
12/31/83 .... $7,526,700
Policyholders'
Surplus
12/31/83 ..... $1,200,367
(O00's Omitted)
Fireman's Traveler's Aetna Continental
Fund Indemnity Insurance Insurance Total
$4,084,010 $4,721,424 $3,732,062 $1,220,693 $21,284,889
$777,090 $785,507 $380,273 $204,885 $3,348,122
Moody's Investors Service, Inc. and Standard & Poor's rate all new issues insured by
MSIA 'Aaa" and mAAA" respectively.
The MSIA companies listed above or their parent organizations have been in the
insurance business from seventy to over a hundred years. Each MBIA company holds a
policyholder rating accorded insurers of Excellent, A, or A-plus by the insurance
company rating authority, A.M. Best Company, Inc.
MBIA has obtained a ruling from the Internal Revenue Service that neither the
insurance protection nor payment thereunder will affect the exemption from Federal
income tax of interest on bonds so insured. The Securities and Exchange Commission
has issued a no-action letter stating that municipal bonds insured by MSIA are not
subject to registration under the Securities Act of 1933.
A Statement of Insurance will be printed on the Bonds. A copy of the form of
insurance policy to be issued at closing is included herein as Exhibit
REGISTRATION
Tax E~uity and Fiscal Responsibility Act of 1982 (=TEFRA=), as amended, mandates,
among other things, that all municipal bonds (excepting those with a one year maturity
or less) must be in fully registered form beginning July 1, 1983.
Paying Agent/Registrar (the "Registraru)
The Bonds will be issued in fully registered form in integral multiples of $5,000, and
principal and semi-annual interest will be payable by the First City National Bank of
Houston, Houston, Texas, the Paying Agent/Registrar (the 'Registrar"). Principal of
the Bonds will be payable to the registered owner at maturity or redemption upon
presentation to the Registrar. Interest on the Bonds will be payable by check or
draft, dated as of the interest payment date, and mailed by the Registrar to
registered owners as shown on the records of the Registrar as of the fifteenth day of
the month next preceding each interest payment date.
Successor Paying Agent/Registrar
Provision is made in the Bond Ordinance for replacement of the Registrar. If the
Registrar is replaced by the City, the new Registrar shall accept the previous
Reglstrar~s records and act in the same capacity as the previous Registrar. Any
Registrar selected by the City shall be either a national or state banking institution
and 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, and subject to supervision or examination by Federal or State authority.
Successor Registrars, if any, shall be determined by the City.
Future Registration
The Bonds may be transferred, registered and assigned only on the registration books
of the Registrar, and such registration and transfer shall be without expense or
service charge to the owner, except for any tax or other governmental charges required
to be paid with respect to such registration and transfer. A Bond may be assigned by
the execution of an assignment form on the Bonds or by other instrument of transfer
and assignment acceptable to the Registrar. A new Bond or Bonds will be delivered by
the Registrar in lieu of the Bond being transferred or exchanged at the pr/nc/pal
office of the Registrar. To the extent possible, new Bonds issued in an exchange or
transfer of Bonds will be delivered to the registered owner or assignee of the owner
in not more than three (3) business days after the receipt of the Bonds to be
cancelled in the exchange or transfer and the written instrument of transfer or
request for exchange duly executed by the owner or his duly authorized agent, in form
satisfactory to the Registrar. New Bonds registered and delivered in an exchange or
transfer shall be in denominations of $5,000 or any integral multiple thereof for any
one maturity, shall specify the same maturity date and be for a like aggregate
principal amount as the Bond or Bonds surrendered for exchange or transfer.
Limitation on Transfer or Exchange of Bonds
Neither the City nor the Paying Agent/Registrar shall be required to transfer or
exchange any Bond during the period of fifteen (15) days next preceding any interest
payment date or to transfer or exchange any Bond during the period commencing with the
City*s notice to the Paying/Agent Registrar that the City intends to redeem such Bond
or Bonds of the same maturity and ending on the date fixed for the redemption of such
Bond or Bonds.
Record Date
The record date ('Record Date') for the interest payable on any interest payment date
is defined as the fifteenth day of the month next preceding such interest payment
date.
USI~ OF INFORMATION TN OFFXCIAL STATEMENT
This 'Official Statement' has been prepared by Moroney, Beissner & Co., Inc., a firm
employed by the City to perform professional services in the capacity of Financial
Advisors, lncludinq the preparation of this 'Official Statement.' Information with
respect to interest rates, discounts, and other matters relating to the resale of the
Bonds, including changes in the affairs of the City subsequent to the date hereof, is
the responsibility of the Underwriters and such information is not provided herein.
The information set forth herein has been obtained from the City and other sources
which are believed to be reliable, but no guarantee is made as to the accuracy or
completeness of such information, and its inclusion herein is not to be construed as a
representation on the part of the City nor Moroney, Beissner & Co, Inc. to such
effect. No person has been authorized to give any information or to make any
representations other than those contained in this 'Official Statement,s and if given
or made, such other information or representations must not be relied upon as having
been authorized by the City or Moroney, Beissner and Co., Inc. This 'Official
Statement' does not constitute an offer to sell or solicitation of an offer to buy in
any state in which such offer or soliciation is not authorized, or in which the person
making such offer or solicitation is not qualified to do so, or any person to whom it
is unlawful to make such offer or solicitation. Any information and expressions of
opinions herein are subject to change, without notice, and neither the delivery of
this uOfficlal Statement,u nor any sale made hereunder, shall under any circumstances
create any implication that there has been no change in the affairs of the City since
the date hereof.
UTILITY DEPARTMENT
Utility System Revenue Bonds Outstanding (The Bonds) ................ $33,050,000(1)
Fund Balances:
Interest and Sinking Fund ...................... $3,885,404 (2)
Reserve Fund 3,770,895 (2)
Operating Fund .................................. 2f931rT07
Total Fund Balances .............................. $10,588,008
(1) Subject to Chanqe
(2) These amounts are to be deposited into the Escrow Fund and applied to the Refunded
Bonds.
REVENUE BONDS AUTHORIZED BUT UNISSUED
Date of Author-
Authori- Amount Previously ized but
zation Authorized Purpose Issued Unissued
8/13 8~ $9,500,000 Sanitary Sewer System Improvements $4,500,000 $5,000,000
UTILITY SYSTEM OPERATING STATEMENTS
The following condensed operating statements were taken from
Hereford Lynch & Co., CPA's, Huntsville, Texas.
Fiscal Year Ended June 30
audits prepared by
1984 1983 1982 1981
Revenue:
Electric $21,265,591 $18,630,622 $13,077,553 $ 9,295,153
Water & Sewer 4,379,039 3,931,081 2,770,781 2,241,422
Tap Fees 159,763 267,648 197,464 160,760
Interest* 715,994 566,176 83,932 52,531
Other 473r437 782~197 5081942 2191867
Total Revenue $26,993,824 $24,177,724 $16,636,652 $11,969,733
Expenses:
Power Purchased $10,502,052 $10,902,294 $ 5,901,946 5,596,912
Water Production 846,761 653,689 631,226 590,405
Tap Expense 67,783 91,701 121,880 94,514
Other Hxpenses 4r731r990 3~637t748 2r649t460 11693r021
Total Expenses: $16,148,$86 $15,285,432 $ 9,304,512 $7,974,852
Available for Debt
Service $10,845,238 $ 8,892,292 $ 7,332,140 $3,994,881
Coverage of Average
Annual Debt Service
Requirements on
Revenue Bonds ............ 2.99X 2.46X 2.02X 1.10X
The estimated maximum annual debt service requirements on Revenue Bonds is $5,212,870
and occurs in fiscal year ending 6/30/86. The net revenues available for Debt Service
for the Fiscal Year ending 6/30/84 are 2.08 times this maximum annual requirement.
* Excludes interest earned on construction funds.
CUSTOMER COUNT
11/30/84 6/30/84 6/30/83 6/30/82 6/30/81. 6/30/80
Water 13,836 13,137 12,718 10,628 9,080 6,288
Sewer 18,031 16,567 15,822 13,361 12,692 6,757
Electric 18,311 15,684 14,985 12,881 13,250 10,143
* In prior years, the number of utility customers was determined by counting the
number of meters through which service was provided. There are numerous multi-unit
housing complexes within the City being provided service through single meters. With
the aid of the City's computerized accounting utility record-keeping system, the
actual number of customers being served is now counted.
WATER~ SEWER AND ELECTRIC RATES
(All customers are billed monthly)
WATER
Type of Customer
All customers .........................
Residential ..........................
Co~uuercial and Industrial .............
SEWER
$1.25 per 1,000 gallons
$4.00 per month service charge
$8.00 per household unit
First 7,000 gallons - $8.00
Each additional 7,000 gallons or
fraction thereof of water used - $2.00
ELECTRIC
The following electric rates are subject to a power adjustment charge which re-
quires that the net energy charge per kilowatt hour shall be increased or decreased
by an amount per kilowatt hour equal to any increase or decrease in the wholesale
rate paid for electric energy by the City by virtue of the fuel clause in the whole-
sale contract.
Residential ...........................
Small Con~ercial (1/10 KW demand) .....
Medium Co~ercial and Industrial
(10/500 KW De~and) ...................
Service Charge ...... $4.00 per month,
plus:
First 100 kwhrs ...... $.095 per kwhr
Next 400 kwhrs ....... $.065 per kwhr
Over 500 kwhrs ....... $.058 per kwhr
Over 500 kwhrs used per month in the
billing months of November thru April
................. $.0506 per kwhr
Service Charge ..... $7.00 per month,
plus:
First 200 kwhrs .... $.108 per kwhr
Next 800 kwhrs .... $.093 per kwhr
Over 1,000 kwhrs .... $.063 per kwhr
Service Charge ..... $25.00 per month
plus:
Demand Charge ..... $8.00 per kw of
billing demand
First 50,000 kwhrs .. $.037 per kwhr
Over 50,000 kwhrs .. $.032 per kwhr
The minimum monthly charge under this rate schedule
shall be the highest one of the following charges:
1) $105.00 per month plus applicable power cost
adjustment on the kilowatt-hours used.
2) The sum of service charge and demand charge
under the above rate plus applicable power cost
adjustment on the kilowatt-hours used.
3) The minimum monthly charge specified in the
customer's service contract with the City, plus
applicable power cost adjustment on the kilowatt-
hours used.
ELECTRIC (Continued)
Type of Customer
Large Coaunercial and Industrial
(500/2500 kw demand) ............... Service Charge .... $50.00 per month, plus
Demand Charge ... $4,000 for the first 500
kw of billing demand
$7.50 per kw of billing
demand for all over
500 kw, plus
First 250,000
kwhrs ............ $.034 per kwhr
All additional
kwhrs .......... $.030 per kwhr
The minimum monthly charge under this rate schedule
shall be the highest one of the following charges:
1)
2)
3)
$4,050.00 per month plus applicable power cost
adjustment on the kilowatt-hours used.
The sum of service charge and demand charge
under the above rate, plus applicable power cost
adjustment on the kilowatt-hours used.
The minimum monthly charge specified in the
customer's service contract with the City, plus
applicable power cost adjustment on the kilo-
watt-hours used.
#ATRR SUPPLY SOURCE
Since December, 1981, College Station has had the capability to produce and deliver
100% of its water needs through the new aqueduct system from the new well field.
This newly completed system includes three wells with a combined capacity of 12
million gallons per day. The water is delivered to the distribution system by 14
miles of 30-inch diameter pipeline and two pump stations.
Each of the three wells mentioned above is completed into the Simsboro Sand of the
Wilcox formation which forms a very prolific squarer of high quality water and which
should be capable of supporting a combined poppulation of 300,000.
SEWAGE TREATMENT FACILITIES
College Station's wastes are treated by the City-owned sewage treatment plant located
within the City. The sewage treatment plant has a capacity of 4.1 million gallons
per day (mgd) average load, and 12 mgd, peak load. The City is presently
experiencing approximately 4.75 mgd average load and 6.5 mgd peak peak load.
Currently, the City is expanding its wastewater treatment plant by 4 mgd, and upon
completion, the sewage treatment plant capacity will be adequate to serve a population
estimated at 80,000.
ELECTRIC SUPPLY SOURCE
The City of College Station presently purchases 100% of its electrical power from
Gulf States Utllllittes under a contract valid through 1997. The City is served
through three 138 kva transmission lines, tied to a ring bus at the City switching
station. One 138 line comes from the Ree Dee substation in Madisonville, Texas, one
line frem the Lewis Creek station in Willis, Texas and one line from the Grimes
substation in Shiro, Texas.
LOHE STAR MUHICIPAL POWER AGENCY
The Lone Star Municipal Power Agency ('The Agency') is a joint action agency
authorized by the 68th Legislature of Texas in 1983. The member cities are College
Station, Texas, Caldwell, Texas, Elrbyville, Texas and Newton, Texas. The Agency was
formed for the purpose of seeking and securing a long term, reliable and economic
power supply source for these Cities, all of which currently purchase power from Gulf
States Utilities Company.
In June 1983 the initial meeting of the Agency was held in Caldwe11, Texas and it
was announced that the City of College Station was negotiating with the Trinity River
Authority ('TRA') on the construction of a hydroelectric facility at Lake Livingston.
TRA proposed that College Station fund the preparation of a license application to the
Federal Energy Regulatory Commission and in return College Station would receive the
first right of refusal for the power from the proposed plant. On October 5, 1983 it
was announced that the TRA and College Station had submitted an application for a
license to operate a hydroelectric plant at Lake Livingston of approximately 35
megawatts. On January 16, 1984 the agency held its first official meeting, adopted
the by-laws, elected officers, adopted a seal, designated the administrative office
and interviewed prospective engineers. On March 5, 1984 Mr. R. Michael Simmons was
named General Counsel of the agency and the board authorized to contract with Eurns
and MacDonald, Consulting Engineers, for a feasibility study. In July 1984 Eurns and
MacDonald presented their report entitled "Reconnaissance Review of Power Supply
Alternatives for the Lone Star Municipal Power Agency'. Negotiations have been under
way since that time with the Gulf States Utilities Company to allow the Agency to
assume contract responsibility for all power delivered to the four members, and to
change the power delivery from the Wholesale Distribution Rate to the Wholesale
Transmission Rate for all members. The City of College Station does not have a
contract with the Agency nor with TRA for the power to be delivered from the proposed
Lake Livingston plant. The only commitment the City of College Station has from or
with TRA is the first and second right of refusal on the Contract for Power as the
result of funding the permit application.
$33,050,000*
UTILITY SYSTEM REVENUE REFUNDING BONDS
ESTIMATED DEBT SERVICE P~UIRBMENT SCHEDULE
Fiscal
Year
Ending
6/30 Principal Interest Total P&I
1986 $2,185,000 $3,027,870 $5,212,870
1987 2,320,000 2,853,422 5,173,422
1988 2,455,000 2,672,462 5,127,462
1989 2,415,000 2,474,836 4,889,836
1990 2,340,000 2,274,390 4,614,390
1991 2,300,000 2,075,490 4,375,490
1992 2,270,000 1,873,090 4,143,090
1993 2,180,000 1,666,520 3,846,520
1994 2,155,000 1,463,780 3,618,780
1995 2,145,000 1,259,056 3,404,056
1996 2,160,000 1,048,846 3,208,846
1997 2,150,000 833,926 2,983,926
1998 2,015,000 616,776 2,631,776
1999 1,525,000 411,246 1,936,246
2000 1,505,000 254,170 1,759,170
2001 930,000 97,650 1,027,650
Average Interest Rate
Average Maturity
*Subject to change.
10
CiW of College Station
~ OFFiC~ BOX ~)f~O I I01 'IF-XAS AVENUE
COLLF.~E STATION. TEXAS
Met, ]ievm,~s 11,011,985 13,707,550 15,213,380 16,166,500
Se~r~oes 1.989.~ ~.069.~91 2,172.900 2,2~1 ,~00
11.638.059 13.0~0.~80 13.88~,~30
11
SIL~CTED PROVISIONS OF THE BOND ORDXHANCE
The ~ond Ordinance authorizes the issuance and sale of the Bonds and prescribes
terms, conditions and provisions for the payment of the principal of and interest on
the Bonds by the City. Set forth below is a summary of certain provisions of the Bond
Ordinance. Paragraph headings are supplied for ease of reference and are not
contained in the Bond Ordinance. Such summary is not a complete description of the
entire Bond Ordinance and is qualified by reference to the Bond Ordinance, copies of
which are available fro~ Moroney, Beissner & Co., Inc., the City's Financial Advisor,
upon request.
Definitions
The following terms shall have the respective meanings specified:
(a) The term 'Additional Bonds' means the additional bonds and other evidences of
indebtedness which the City reserves the right to issue under Section 15 hereof.
(b) The term 'Associationm shall mean Municipal Bond Insurance Association, a
voluntary unincorporated association of insurance companies organized under the laws
of the State of New York.
(c) The term 'Bond Fund' means the fund provided for in Section 13 of this
Ordinance.
{d) The term 'Bonds' shall mean the $33,050,000 of Bonds authorized by this
Ordinance.
(e) The term 'Citym refers to the City of College Station, Texas, or where
appropriate to the City Council thereof.
(f) The term 'City Council' shall mean the City Council of the City.
(g) The term 'Junior Lien Certificates~ shall mean the following certificates of
obligation issued by the City bearing the dates, in the original principal amounts and
finally maturing as set forth below, to-wit:
Date Principal Amount Maturity
7/24/81 $ 284,062.50 7/24/91
7/24/81 1,297,000.00 7/15/88
10/23/81 400,000.00 10/23/91
11/13/81 91,380.00 11/13/86
4/17/84 440,000.00 4/17/94
6/11/84 400,000.00 6/11/94
(h) The term 'Net Revenues' as used in this Ordinance shall mean the gross
revenues of the Systam8 less the reasonable expenses of operation and maintenance,
including all salaries, labor, materials, repairs and extensions necessary to render
efficient servicer provided, however, that only such repairs and extensions, as in the
judgment of the City Council, reasonably and fairly exercised, are necessary to keep
the plant or utility in operation and render adequate service to the City and the
inhabitants thereof, or such as might be necessary to meet some physical accident or
condition which would otherwise impair the Bonds authorized by this Ordinance and any
additional bonds permitted to be issued hereunder, shall be deducted in determining
'Net Revenues.'
(i) The term 'Paying Agent/Registrar' shall mean, initially, First City National
Bank of Houston, Houston, Texas, or any successor appointed hereunder in its capacity
as such.
(j) The term 'Systems' as used in this Ordinance shall mean the City's combined
Waterworks System, Sewer System and Electric Light and Power System, including all
present and future extensions, additions, replacaments and improvements thereto.
(k} The term 'Systems Fund' shall mann the fund provided for in Section 12(b)
hereof.
12 ,
Pledge of Revenues
The Bonds, any Additional Bonds and the interest on all such Bonds, are and shall
be payable from and secured by an irrevocable first lien on and pledge of the Net
Revenues of the Systems, and the Net Revenues are hereby pledged irrevocably for the
payment and security of the Bonds, any Additional Bonds and the interest on all such
Bonds.
Rate Covenant
The City covenants and agrees with the holders of the Bonds and Additional Bonds,
if and when issued, that it will
(a) fix and maintain rates and collect charges for the facilities and services
afforded by the Systems which will provide revenues sufficient at all times:
(1) To pay all operation, maintenance, depreciation,
replacement and betterment charges of the Systems~
(2) To establish and maintain the Bond Fund~
(3) To generate in each year Net Revenues equal to one and
twenty-five hundredths (1-25/100) times the maximum annual
requirement for the payment of the principal of and interest on
the Bonds and any Additional Bonds at the time outstanding and
payable from the revenues of the Systems (although amounts shall
be paid into the Bond Fund only in accordance with Section 13
hereof)~ and
(4) To pay all indebtedness other than bends outstanding
against the Systems including without limitation the Junior Lien
Certificates, as and when the same become due~ and
(b) deposit as collected all revenues derived from the operation of the Systems
into the Systems Fund which shall be kept separate and apart from all other funds of
the City.
Flow of Funds
From the Net Revenues available in the Systems Fund, the City shall make
substantially equal monthly payments into the Bond Fund during each year in which any
of the Bonds are outstanding, commencing with the date of delivery of the Bonds to the
initial purchasers thereof, in an aggregate amount equal to one hundred percent (100%)
of the amounts required to meet the interest and principal payments falling due on or
before the next maturity date of the Bonds. The City shell, et least five days prior
to each August 1 and February 1, deposit into the Bond Fund any additional Net
Revenues available in the Systems Fund necessary to pay in full the interest on and
principal, if any, coming due on such August 1 and February 1. In no event shall any
amount in excess of the amounts stated above bo placed in the Bond Fund for the
payment of the interest on or principal of the Bonds, and any amount so placed may be
withdrawn by the City and replaced in the Systems Fund. Any funds remaining in the
Systems Fund, after provision for the reasonable cost of operating and maintaining
the Systems, and after paying the amounts required to be paid into the Bond Fund for
the Bonds, may be used by the City for any lawful purpose.
MBIA Insurance
The City shall purchase a policy of insurance from the Association to the effect
that the members thereof (each acting severally and not Jointly) unconditionally and
irrevocably guarantee to the owner of any of the Bonds (other than the City) the full
and complete payment required to be mede by or on behalf of the City to the Paying
Agent/Registrar of an amount equal to the principal of and interest on the Bonds as
such payments shall become due and not be so paid, and that the premium for such
policy shall be paid out of the proceeds of sale of the Bonds as a cost of the
issuance thereof.
Additional Parit~ Bonds
In addition to inferior lien bonds authorized by Article llllb, Vernon's Texas
Civil Statutes, as emended, the City expressly reserves the right hereafter to 18sue
additional parity bonds and other evidences of indebtedness now or hereafter
authorized by the Legislature of Texas, and such additional parity bonds and other
evidences of indebtedness, when issued, may be secured by and payable fro~ a first
lien on and pledge of the Net Revenues of the Systems in the seme manner and to the
same extent as are the Bonds authorized by this Ordinance, and the Bonds authorized
herein and such additional parity bonds and other evidences of indebtedness may in all
respects be of equal dignity. It is provided, however, that no such additional parity
bonds or other evidences of indebtedness shall be issued unless:
(a) An independent firm of certified public accountants, based upon an annual
audit of the books of the Systems, certifies (a copy of which certificate shall be
delivered to the Association) that the net earnings of the Systems for the fiscal year
next preceding the month in which the ordinance authorizing such additional parity
bonds or other evidence of indebtedness is adopted were equal to:
(i) at least one and four-tenths (1-4/10) times the average annual
requirements for the payment of principal and interest on the then
outstanding bonds and other evidences of indebtedness payable from
the revenues of the Systems and on said additional bonds or other
evidences of indebtedness, when issued, sold, and delivered; and
(ii) at least one and twenty-five hundredths (1-25/100) times the
maximum annual requirement for the payment of principal and interest
on the then outstanding bonds and other evidences of indebtedness
payable from the revenues of the Systems and on said additional
bonds or other evidences of indebtedness, when issued, sold and
delivered.
provided, however, should the certificate of the accountant certify that the net
earnings of the Systems for the fiscal year covered thereby were less than required
above, and a change in the rates and charges for services afforded by the Systems
became effective at least sixty (60) days prior to the scheduled date of adoption of
the ordinance authorizing such Additional Bonds, then such Additional Bonds may
nevertheless be issued if an independent engineer or engineering firm having a
favorable reputation with respect to such matters certifies that, had such change in
rates and charges been effective for the fiscal year covered by the accountant's
certificate, the net earnings for the Systems for the fiscal year covered by the
accountant's certificate would have met the tests specified in (i) and (ii) above.
The term 'net earnings' as used in this Section shall mean all of the net revenues of
the Waterworks System, Sewer System and the Electric Light and Power System, exclusive
of income received specifically for capital items, after deduction of the reasonable
expenses of operation and maintenance of the Systems excluding expenditures which
under standard accounting practice should be charged to capital expenditures or
depreciation.
(b) Said additional bonds or other evidences of indebtedness are made to mature
on February lot in each of the years in which they are scheduled to mature; and
(c) The entire issue of any Additional Bonds is insured in a manner similar to
the Bonds by an insurance company or association of companies whose insured
obligations are rated by either Moody's Investors Service, Inc. or Standard & Poor's
Corporation at least equal to the insured obligations of the Association at the time
such Additional Bonds are to be issued o__r the City shall establish a Reserve Fund for
the Additional Bonds by any method or combination of methods that the City daenm
reasonable and appropriate provided that (x) the emount of such Reserve Fund (or
coverage of any surety bond in lieu thereof) shall at least equal the maximum annual
debt service requirements of the Additional Bonds, not to exceed the maximum pe~mitted
by applicable regulations, procedures or published rulings of the Internal Revenue
Service (the WReserve Minimumm), (y) if any cash reserve fund is funded by making
transfers of Net Revenues in the System Fund, such transfer shall be made each month
in an emount reasonably sufficient to reach the reserve minimum within a period of not
more than five years after any such Additional Bonds are sold and delivered and
such Reserve Fund shall be for the equal benefit of the owners of (i) such A~ditional
Bonds, (ii) any Additional Bonds theretofore issued which are not insured in a manner
similar to the Bonds or (iii) any Additional Bonds thereafter issued which are not so
insured.
14
Naintenance and Operation-Insurance
The City shall maintain the Systems ~n good condition and operate the same in an
efficient manner and at a reasonable cost. So long as any of the Bonds are
outstanding, the City agrees to maintain insurance on the Systems, for the benefit of
the registered owner or owners of the Bonds, of a kind and in an amount which usually
would be carried by private companies engaged in a similar type of business in the
same area. This Ordinance shall not be construed as requiring the City to expend any
funds which are derived from sources other than the operation of the Systems, but
nothing herein shall be construed as preventing the City from doing so.
Records and Accounts
The City shall keep proper books of records and accounts, separate from all other
records and accounts, in which complete and correct entries shall be made of all
transactions relating to the Systems. Upon written request made not more than 60 days
following the close of the fiscal year, the City shall furnish to any registered owner
of any of the Bonds, complete financial statements of the Systems in reasonable detail
covering such fiscal year, certified by the City's Auditor. Any registered owner or
owners of 25% of the Bonds at the time outstanding shall have the right at all
reasonable times to inspect the Systems and all records, accounts and data of the City
relating thereto.
Additional Covenants
The city hereby further covenants as follows:
(a) That it has the lawful power to pledge the revenues supporting the Bonds and
has lawfully exercised said power under the Constitution and laws of the State of
Texas, including said power existing under Article 717k, Revised Civil Statutes of the
State of Texas, as amended; that the Bonds issued hereunder shall be ratably secured
by said pledge of income, in such manner that one Bond shall have no preference over
any other Bond.
(b) That, other than for the payment of the Bonds herein authorized and the
Junior Lien Certificates, the rents, revenues and income of the Systems have not in
any manner been pledged to the payment of any debt or obligations of the City or of
the Systams.
(c) That, so long as any of the Bonds or Additional Bonds remain unpaid, the City
will not sell or encumber the Systems or any substantial ~art thereof, and that it
will not encumber the revenues thereof unless such encumbrance is made pursuant to
Section 15 hereof or is junior and subordinate to all of the provisions of this
Ordinance.
(d) That no free service of the Systems shall be allowed, and should the City or
uny of its agencies or instrumentalities make use of the services and facilities of
the Systems, payment of the reasonable value thereof shall be made by the City out of
funds from sources other than the revenues and income of the Systems.
Ce) To the extent that it legally may, the City further covenants and agrees
that, so long as any of the Bonds or any interest thereon is outstanding, no franchise
shall be granted for the installation or operation of any competing systems, that the
City will prohibit the operation of any such systems other than those owned by the
City and the operation of any such systems by anyone other than the City is hereby
prohibited.
Special Obl~gations
The Bonds are special obligations of the City payable from the pledged revenues
and the registered owner thereof shall never have the right to demand payment thereof
out of funds raised or to be raised by taxation.
15
FINANCIAL STATEMENT
City of College Station, Texas
(As of 11/30/84)
1984 Assessed Valuation (100% of Actual)
General Obligation Debt Outstanding:
................................ $959,646,627
General Purpose G.O. Bonds ......................
utility System G.O. Bonds .......................
Combination Tax & Utility System
Junior Lien Revenue Certificates of Obligation..
Combination Tax & Sanitation System
Revenue Certificates of Obligation ............
Gross Debt ..............................
$22,510,638
4,934,362
2,124,470
83r200
$29,652,670
Less:
Self Supporting Debt ...................... $7,142,032
Applicable ! & S Fund ..................... 758r706
Net Debt ............................................................
Ratio of Net General Obligation Debt to 1984 Assessed Valuation .........
1984 Estimated Population (excluding 9,550 students living on campus) ...
Net Debt per Capita .....................................................
Assessed Valuation per Capita ...........................................
Area of City ............................................................
The above Debt Statement does not include the proposed $33,050,000 Utility System
funding Revenue Bonds, Series 1985 (See 'utility Department'.)
$21,751,932
2.27%
48,620
$447
$19,738
28.5 Sq. Hi.
Re-
COMPOTATION OF SELF-SUPPORTING DEBT
Net System Revenues Available for debt service for
Fiscal Year ended 6/30/84 ...........................
Lees~ Estimated Revenue Refunding Bonds maximum annual
debt service requirements (FY 1986) ..................
Balance available for other purposes ..................
System General Obligation Bonds debt service
requirements for Fiscal Year ending
6/30/85 .............................................
Percentage of System General Obligation Bonds
Self-supporting .....................................
Mote~
Utility Sanitation
System S~stem
$10,845,238 $469,395
5~212r870 -0-
$ 5,632,368 $469,395
$1,199,074 $ 46,567
100% 100%
The City Council adopted an ordinance on June 29, 1976 committing the net revenues
of the Utility System, after the payment of Revenue Bond requirements, to the payment
of Principal and Interest on the General Obligation Bonds issued for Utility System
purposes. This ordinance is authorized by Article 1106, Vernon's Civil Statutes of
Texas.
TAX COLLECTION PERIOD
Taxes are due October I and are delinquent after January 31. Split payments are al-
lowed~ first half by November 30, and balance by June 30. No discounts are given on
early payments. Penalty and interest on delinquent payments are rigidly enforced.
16
TAX COLLECTION RECORD
Tax Assessed Tax
Year Valuation Rate
1977 $145,877,135 $0.52
1978 166,370,966 0.56
1979 293,904,940* 0.39
1980 317,065,418 0.39
1981 433,053,691'* 0.31
1982 769,127,740' 0.31
1983 841,670,967 0.31
1984 959,646,627 0.36
Delinquent
Percent Tax Collections Year
Current Total Ending
97.16 99.71 6/30/78
97.19 98.89 6/30/79
95.04 97.97 6/30/80
95.70 99.46 6/30/81
96.50 100.46 6/30/82
95.30 96.76 6/30/83
95.71 98.64 6/30/84
In Process of Collection
taxes outstanding for all prior years, as of 11/30/84 ........... $163,720
* Revaluation.
** Increase in basis of assessment from 80% to 100% of actual.
TAX RATE LIMITATIONS
The City of College Station is a Home Rule Charter City with a maximm~ authorized
rate for all purposes of $2.50 per $100 Assessed Valuation. This maximum tax rate is
imposed both by the Constitution of the State GE Texas and the City Charter. With-
in this $2.50 maximum there is no limit upon the amount of taxes which can be levied
for Debt Service.
TAX RATE DISTEIBUTION
Tax Year 1984 1983 1982 1981 1980 1979
General Fund $-0- $-0- $0.0801 $0.1448 $0.1697 $0.1553
Interest & Sinking Fund 0.36 0.31 0.2291 0.1852 0.2203 0.2347
TotaX Tax Rate $0.36 $0.31 $0.3100 $0.3100 $0.3900 $0.3900
II~RP~T & SXNKXNGFUNDMANAGBMBNT INDEX
General Obligation Debt Service Requirement for Fiscal
Year ending 6/30/85, axcluding self-supporting Utility
System and Sanitation System G.O. Bonds ............................... $3,011,071
Interest & Sinking Fund Balance as of 6/30/84 ............... $1,505,466
Interest & Sinking Fund Tax Levy of $0.36 on 1984
Assessed Valuation of $959,646,627 at 95% collection ..... 3r281r991 $4,787,457
CIT~ SALBS TAX
The City adopted the provision8 of Article 1066e, VACS, Section 9, authorizing a 1%
sales tax effective July 1, 1968. Following are sales tax collections for the past
ten calendar years~
Sales Tax Sales Tax
Year Revenue Year Revenue
1975 $470,679 1980 $1,290,503
1976 565,629 1981 1,645,040
1977 675,197 1982 2,220,245
1978 848,536 1983 2,558,651
1979 1,005,363 1984 (11 months) 2,561,180
17
Date of
Authori-
zation
8/13/83
1/24/84
1/24/84
1/24/84
lY2~/84
1/24/84
GRHERAL OBLZGATZON BONDS AOTHORZZED BU~ UNZSSUED
Purpose
Drainaqe Improvements
Police Building
Fire Station Renovation
Maintenance and Storage Bldg.
Park Improvements
Street Improvements
Amount Issued
Authorized to Date
Authoriz
ed but
Unissued
$1,930,000 $ 700,000 $1,230,000
2,200,000 2,200,000 -0-
555,000 555,000 -0-
1,425,000 500,000 925,000
1,150,000 1,150,000 -0-
6r325r000 3r525f000 2f80Or000
$13,585,000 $8,630,000 $4,955,000
Amount
Out-
atandinq
$9,761
Notes Payable to
Llddie B. Arnold
FLOATING DEBT OUTSTANDING
Purpose
Park Land
Payable
General Fund
Interest
Rate
7%
Political Subdivision
College Station I.S.D.
Brazos County
Brasos County F/M
Lateral Road Bonds
Bryan I.S.D.
RSTIMATED DIRECT & OVERLAPPING DEBT STATEMENT
Percent Amount
Net Debt Over- Over-
Amount As of lapDlnq lapDinq
819,596,625 2/28/84 87.88% $17,221,514
8,654,904 2/28/84 32.16% 2,783,417
157,865 2/28/84 32.16% 50,769
7,034,656 3/31/84 2.31% 162r501
Total Overlapping Net Debt .............................. $20,218,201
CITY OF COLLEGE STATION ................................. 21r751r932
Total Direct and Overlapping Net Debt .................... $41,970,133
Due Dates
Annually
4/17/86
Ratings as of
Dec. 1984
IMody's S&P'8
A-1 A+
A-1
A-I
A-I
A-1 A+
4.37%
Ratio of Total Direct and Overlapping Net Debt to 1984 Assessed Valuation .........................................................
Per Capita Total Direct and Overlapping Net Debt ............................. $863
Assessed Valuation per Capita ................................................ $19,738
TWENTY MAJOR TAXPAYERS
1984
Assessed
T~e of Property Valuation
Utility $27,373,640
Retail Mall 17,128,664
Real Estate 13,904,021
Retail Center 13,825,590
Manufacturing 12,474,410
Manufacturing 12,398,430
Hotel 11,035,925
Real Estate 10,731,128
Apartments 8,536,421
Apartments 7,700,738
Apartments 7,102,670
Office Building 6,934,010
Real Estate 6,791,960
Apartments 6,365,062
Apartments 5,952,836
Retail 5,851,799
Apartments 5,755,412
Real Estate & Apartments 5,504,906
Reel Estate 5,393,148
Apartments 4~964r495
TUDayer
General Telephone Company
CBL Managenent
S~pcon Construction
J.C. Culpepper Jr., III & Trust
Westinghouse Electric Corp.
Texas Instruments
~ada Inn
DEW Properties
Continental Real Estate Parnersbip
Plantation Investment Ltd.
Anderson Ridge Corp.
Agency Records Control
Martell-Wood
College Park Association
Ran]amin Jackson
Dlllard8
D.R. Cain
RIB?Mortgage Bervice
FM Short Co.
Oakvood Apartments LTD
Total Assessed Valuation of Principal Taxpayers .......................
Principal Taxpayers as Percent of Cityt8 Total 1984 Assessed Valuation ...............................................
$195,725,265
20.40%
18
O~NEI~L OBLIGATTON BONDS
DEBT SERVICE R,I~UIRB#BNT SCHBDOLE
Piscal
Ending
6/30
1985
1986
1987
1988
1989
1990
1991
1992
1.993
1.994
1995
1996
1997
1.998
1.999
2000
2001
2002
2003
2004
Principal
$1,868,124
2,143.124
2,151.524
2,133.248
2,219.754
1,964,606
1,964,606
1,889,608
1,621,200
1,626,200
1,626,200
1,576,200
1,576,200
1,301,200
1,121,200
925,000
450,000
450,000
450,000
450,000
P&! on
¢/O*s dated
Intecest 4/17/84 Total
$2,320,588 $ 68,000 $4,256,712
2,376,024 68,000 4,587,148
2,182,355 68,000 4,401,879
1,990,049 68,000 4,191,297
1,798,435 68,000 4,086,189
1,597,238 68,000 3,629,844
1,432,299 68,000 3,464,905
1,266,188 68,000 3,223,796
1,108,051 68,000 2,797,251
978,074 68,000* 2,672,274
851,980 2,478,180
725,136 2,301,336
602,567 2,178,767
478,073 1,779,273
363,404 1,484,604
256,500 1,181,500
167,850 617,850
121,500 571,500
81,000 531,000
40,500 490,500
*Final payment subject to change.
Utility
System In-
cluded in
Total
$1,199,074
1,146,186
1,093,299
1,022,135
1,052,753
737.509
708,861
679,738
581,980
559,371
536,761
514,152
494,895
272,667
97,344
Sanitation
System In-
cluded in
Total
$46,567
44,084
19
HISTORY OF GBHBRAL FUND REVBNUBS AND EXPENDITURES
The following General Fund Revenues, Expenditures and Enlances of Cash and Temporary Invest-
ments were taken from the City's Annual Audit Reportsz
Revenueel
Ad Valorem Tax
C~ty Sales Tax
Franchise Tax
Court Fines
Licenses, Permits &
Certificates
Other
Fiscal Year Ending
6/30/84 6/30/83 6/30/82
6/30/82 6/30/80
-0- $ 562,998 $ 600,281 $ 509,033 $ 440,051
2,641,715 2,563,221 1,794,603 1,544,870 1,065,314
299,269 228,951 177,753 135,823 115,810
342,761 483,050 403,421 406,636 315,514
299,577 219,785 80,599
915;908 395;866 294;764
$4,191,543 $3,212,013 $2,312,052
3;033;427 2;538;192 1,922,056
$7,224,970 $5,750,205 $4,234,108
193,065 226,466
759;330 920;728
$4,985,414
4r147;326
$9,132,740
Total Revenue .............. $ 4,236,140
Transfers from other Funds 5r504;181
Total Revenue & Transfers $ 9,740,321
Expendituresl
Administration $ 3,631,097 $3,153,804 $2,554,165 $1,776,640 $1,390,481
Police Department 2,289,774 2,051,548 1,651,836 1,196,668 920,773
Fire Department 1,869,004 1,819,797 1,388,723 1,044,754 687,264
Streets 902,918 640,462 405,758 255,264 205,684
Parks & Recreation 1,238,709 1,024,694 779,480 640,479 476,706
Miscellaneous 89;687 863;239* 140;244 31;483 52r191
Total Expenditures ...... $10,021,189 $9,553,544 $6,920,206 $4,945,288 $3,733,099
Excess of Revenues & Transfers
Over Expenditures ..... $ (280,868) $ (420,804) $ 304,764 $ 804,917 $ 501,009
$2,254,000 $2,543,403 $1,612,938 $798,448
Balances of Cash and
Temporary Investments**. $2,071,242
* Includes an expenditure of $817,725 for the purchase of fire fighting equipment.
2O
&ODZ'~' ~LOORT
The information contained on the following pages ere
excerpts from the City's Audit Report for the yeer
ending June 30, 1984 eo prepared byz
Hereford, Lynch & Co.
Certified Public Accountants
Huntsville, Texas
The inforuation on the following pages Is not intended
to be a complete statement of the City's £1nencisl
condition. A complete Audit Report ia available upon
#stoney, Betssner & Co., Inc.
Hountonw Texe8
Financial Advisors to the City
21
22
CITY OF COLLEGE STATION
UTILITY FUND
STATEMENT OF REVENUES - BUDGET (NON-GAAP BUDGETARY BASIS) AND ACTUAL
FOR THE YEAR ENDED JUNE 30~ 1984
E-6
OPERATING REVENUES
ELECTRIC:
Electric Services
Undersround Construction
Pole Rental
Temporary Service
Total Electric
WATER:
~ater Services
~ater Taps
Total ~ater
SE~ER:
Sewer Services
Sewer Taps
Total Sewer
NONDEPARTHEbr~AL:
Penalties
Reconnect Fees
Service Fees
Use of City Forces
Sales Tax Collection Fees
Other Revenues
Total Nondepartmental
Total Operating Revenues:
NONOPERATINC REVENUES:
Hiscellaneous -
Interest Earnings
Total Nonoperatin$ Revenues
TOTAL REVENUES:
Variance,
Favorable
Budget Actual (Unfavorable)
22,660,000 $ 21,170,966 $(1,489,034)
40,000 62,344 22,344
10,000 22,386 12,386
15,000 9,895 (5,105)
22,725,000 $ 21,265,591 $(1,459,409)
2,700,000 $ 2,712,407 $ 12,407
100,000 112,188 12,188
2,800,000 $ 2,824,595 $ 24,595
1,500,000 $ 1,666,632 $ 166,632
40,000 47,575 7,575
1,5~0,000 $ 1,714,207 $ 174,207
200,000 $ 320,848 $ 120,848
15,000 26,668 11,668
35,000 84,067 49,067
10,000 14,220 4,220
2,000 4,311 2,311
7,000 23,323 16,323
269,000 $ 473,437 $ 204,437
27,334,000 $ 26,277,830 $(Ip056~170)
350,000 $ 1,895,706 $ 1,545,706
350,000 $ 1,895,706 $ 1,545,706
27.684.000 $ 28.173.536 $ 489.536
23
il
24
CITY OF COLLEGE STATION
UTILITY FUND
STATEHENT OF EXPENSES - BUDGET (NON-CAAP BUDGETARY BASIS) AND ACTUAL
FOR T~E YEAR E~DED JUNE 30, 1984
E-7
Page 3 of 3
RECAP OF EXPENDITURES:
Salaries and Benefits
Supplies
Building Ymintenance
Equipment Maintenance
Services
Sundry
Administrative Transfers
Total Operating -
Utility
Capital Outlay
Revenue Bond Principal
Nonoperating and Contributions
TOTAL UTILITY BUDGETED AND
ACTUAL EXPENDITURES
Budget
1,925,556
468,110
333,299
126,610
14,531,688
33,954
2,077,281
$ 19,496,498
1,076,519
1,743,000
5,701,293
$ 28.017.310
Actual
1,678,627
291,010
287,152
93,311
11,685,720
35,485
2,077,281
16,148,586
995,303
1,748,000
5,432,440
Variance,
Favorable
(Unfavorable)
246,929
177,100
46,147
33,299
2,845,968
(1,531)
3,347,912
81,216
(5,000)
268,853
25
26
oo?5[
27
GENERAL X NFORMAT ZON
LOCATION
The City of College Station is located in Bast Central Texas in Brazos County
approximately 140 miles north of the Gulf of Mexico. College Station lies 90
miles north of Houston, 165 miles south of Dallas, and 100 miles east of Austin.
The City covers an area of 28.5 square miles and has an elevation varying from
200 to 400 feet. The City has an excellent climate, with an annual mean
temperature of 65.6 degrees, and average rainfall of 38.75 inches.
CO~t~UNICATIOE
The City of College Station is provided newspaper service by 'The Eagle' which
is published daily and has a circulation of approximately 26,200, and the
*Battalion', which is published five times weekly and which has a circulation of
22,000.
There are two television channels and two community cable antenna systems, with
a total of thirteen television channels available. Five radio stations serve
the area, three FAf and two AM.
TRANSPORTATION
Airlines -
Bus Lines -
Railroads -
Truck Lines -
Commercial, corporate and private airport facilities are
provided the resideats of College Station by Baeterwood Airport,
which Is located on the City's west side. Rio Airways provides
five daily flights to and from Houston and ten daily flights to
and from Dallas out of Easterwood, which is owned and operated
by Texas A & M University. There is currently an annual average
of approximately 39,000 passenger boardings at Baeterwood.
Four bus lines, Greyhound, Central Texas, Central and Arrow
Coach, serve the City of College Station. Five north-bound and
four south-bound buses connect the City with Houston and Dallas.
Rail freight service is provided by the Southern Pacific
Transportation Company and Missouri Pacific Lines.
Seven truck lines, United Postal Service and United Parcel
Service supply daily freight services.
BM~ZNG FACILZTZES
Banking services are provided by five local banks and two savings and loan
associations as listed bolow~
Bank/Savings & Loan
Deposits aa
of n/2o/o4
Republic Bank A & N
C~mmunity Savings & Loan Association
University National Bank
United Bank-College Station, N.A.
Homestead Savings & Loan Association
Counerce National Bank
Texana Bational Bank
$72,600,275
65,067,061
60,075,000
37,524,873
20,262,203
11,790,182
llr443t194
Total Deposits .......................... $278,762,788
UTZLZTZES
The residences and comeercial establishments of College Station are supplied water,
sewer and electric service by the City-owned facilities.
General Telephone Company of the Southwest provides telephone facilities and Lone Star
Gas Company provides gas utility service.
29
BCONOMXC BACEGP, OUND
Of major importance to the City of College Station is Texas A&M University, with a
5,200 acre campus located within the City. The economic impact on the City by the
University continues to increase at a multi-million dollar rate. A University in-
house study shows that campus-generated funds contributed $319 million to local econ-
~ly in 1983, an increase of over $22.5 million over 1982. Much of the 1983 gain is
attributed to enrollment increases and payroll expansion. The 1983 fall semester
total resident enrollment Junked to 36,846, and the Texas A&M payroll increased by
$14.9 milion to a total $199.2 million. For the fall semester of 1984, the total
resident enrollment was 36,829. The University is a leading research center, with a
total volume of research for the 1982-83 fiscal year of $103.8 million up $11.9
million over the previous year. The accelerated growth of the University is far
reaching in its impact upon the community, i.e., in 1983 expenditures for utilities,
services and supplies exceeded $25.3 million; attendance at athletic events,
conferences, etc., translated into dollars, reached $17.0 million; and construction on
campus, $27.5 million. University employees now total 10,087. An additional staff of
311 research and support personnel joined the institution during 1983, a payroll
equivalent of the addition of two medium-sized industrial firms for the community.
The Texas A&M University physical plant is valued in excess of $500 million.
INDUSTRIAL DEVELOPMENT
In addition to the University, employment is provided by more than 75 manufacturing
industries located in, or adjacent to, the City which produce such products as
aluminum windows, business forms, furniture, chumicels, rubber shoe soles, soft
drinks, dairy products, feeds and fertilizers, livestock and camper trailers, modular
homes, hoisting equipment, bronze castings, and geophysical survey sensors.
TEXAB INSTRUMENTS (TI)
Texas Instruments manufactures and assumbles intelligence computer terminals at their
150,000 square foot facility located in the City, which has a 1984 assessed valuation
of $12.4 million, and employs in excess of 100 people.
NF~TXNGHOUSB ELECTRIC CORP.
Westinghouse Electric Corp. has a 158,000 square foot electronic assembly
manufacturing plant within the City which is operated by the Westinghouse Defense and
Electronic Systems Center producing defense radar-related equipment. The College
Station facility has a 1984 assessed valuation of $12.5 million and currently ee~loys
approximately 250 people.
BUILDING PERMITS
College Station has grown rapidly over the past 14 years as evidenced by an increase
In population from 17,700 in 1970 to an estimated 58,170 in 1984 (including
approximately 9,550 students living on campus). Development within the city is
demonstrated by the number and value of construction permits issued by the City over
the past seven years.
Calendar Residential Permits Co~ercial/Industrial Permits
Year Number Value Number Value
1978 287 $ 8,899,612 240 $10,250,643
1979 267 11,606,261 252 6,212,298
1980 359 25,707,945 238 9,697,550
1981 603 50,667,095 417 30,114,838
1982 663 64,567,551 398 40,177,931
1983 424 27,275,747 503 32,116,239
1984 (11 Mos.) 316 23,241,700 243 35,011,545
3O
COMMERCIAL DEVELOPMENT
POST OAK MALL
Post Oak Mall had its official opening in February 1902. Anchor tenants of the
750,000 square foot shopping center are Sears Roebuck and Dillard's department stores,
each containing in excess of 100,000 square feet of space. Foley's Department Store,
a division of Federated Stores, has a 100,000 square foot facility in the Mall. The
Mall, which ia situated on 100 acres of land with parking area adequate to accmaodate
5,000 cars, is ultimately planned to contain 125 stores with 1,020,000 square feet of
shopping area.
RAMADA ZNN - Construction was recently completed on the expansion and remodeling of
the Ramada Inn located at the corner of University Drive and Texas Avenue within the
City. The addition included a 17 story tower. The top five floors have been reserved
for sale as condominiums (six condominiums per floor) and the first 12 floors,
containing 138 rooms, are available for guests. The expansion brings the total number
of rooms available at the Ramada to 360. The construction cost of the expansion and
remodeling is estimated at $3.5 million.
MINERAL PRODUCTION IN THE AReA
Brazos County is currently participating in a number of successful explorations, one
being the 'Giddings Field.' The Austin chalk layer, found in the Giddings Field, is
estimated to yield some 250 million barrels of oil, with the potential of larger
deposits of oil and gas in deeper layers and a possible total recovery of four billion
barrels of oil. During the last few years discoveries have been made of other
production layers. These are the SubClarkevllle, the Buds and the Georgetown. During
the next two years a concentrated exploration of two deeper strata will be made.
These are the Pettlt and the Cotton Valley Formation.
Forty three different minerals can be found within a 200 mile radius of College
Station. 45% of thom, including lignite, are within a 50 mile radius of the City.
CITY MANAGEMENT
College Station was incorporated in 1938 and has a Council-City Manager form of
government with City omployees totaling 484 today. The City enjoys excellent and
conservative managoment and has greatly benefited from the availability of technical
information and assistance made available by Texas A&M University. Over the years,
numerous College professors and successful business people have served in City
government and administration.
The City has adopted and does enforce comprehensive zoning and building restrictions
which assure 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 sewer 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, sewer and electric service.
CZTY OgNED FACZLZTZES
The City has constructed a major part of its present facilities out of current
revenues. Approximately 99%, or 142 miles, of streets within the City are bard
surface. The City has a complete water distribution, sewage collection and treatment
systom with 175 miles of sanitary sewer lines and 142 miles of water lines.
The City owns the electrical distribution systom with 131 miles of distribution lines,
and purchases its electricity from Gulf States Utilities Company.
College Station owns modern and efficient fire fighting equipment, with 72 full time
firomen. The fire department has seven fire trucks, three modulance style ombulances
for omergency medical service and six administrative vehicles. The City has a fully
equipped and effective police department with 79 full time police officers, and four
radio dispatchers that service both fire and police departments.
31
RBS~DBBTIAL CALIBER
College Station, a community of above-average value homes, townhomes and apartments,
is principally a residential community for faculty, students and other personnel of
Texas A&M University. ?here is a blend of new modern homes and older stately
structures along tree shaded streets. Residential values range from $50,000 to
$200,000. Thirty new apartment projects, with 20 or more units in each, as well as a
number of townhouse projects, have been recently completed. Substandard housing is
virtually nonexistant and is of no significance in the local economic picture in
College Station.
RECREATION
The College Station park system presently includes 27 parks encompassing 293 acres.
Collectively these parks contain 13 playgrounds, 10 soccer fields, 14
softball/baseball diamonds; 2 swimming pools, a gymnasium, and a number of picnic
shelters. The Parks Department sponsors a variety of organized athletic and acquatic
programs as well as many special events throughout the year.
Central Park features 47 acres of nature trails, picnic facilities and athletic
fields. Just south of College Station is the Texas World Speedway, which provides all
types of racing events.
BD~JCATIOHAL FACILITIES
The College Station Independent School District is a fully accredited system offering
educational facilities for kindergarten through high school. The school system
currently includes two kindergartens, two elementary schools, one middle school (fifth
and sixth grades)~ one junior high school (seventh and eighth grades) and one high
school.
The College Station ISD facilities are also used by Blinn College, offering two years
of college level courses.
The Texas A&M University System provides the higher educational needs of the
Coa~aunity, offering both four year college programs and extensive graduate degree
opportunities.
32
VERIFICATION OF MATHEMATICAL COMPUTATIONS
The accuracy of (i) the mathematical computations of the adequacy of the ~aturing
principal amount of the escrowed securities to be held by the Escrow Agent to~ether
with the interest earned and to be earned thereon to pay, when due, the principal of
and interest on the Refunded Bonds and (ii) the mathematical computation of yield
supporting Bond Counselts conclusion that the Bonds are not UArbritrage Bonds' under
Section 103(c) of the Internal Revenue Code of 1954, as amended, will be verified by
the firm of Touche Ross & Co., independent Certified Public Accountants, whose opinion
with respect thereto will be available at delivery.
TAX EXEMPTION
The delivery of the Bonds is subject to an opinion of Messrs. Baker & Botts, Houston,
Texas, Bond Counsel to the City ('Bond Counsel'), to the effect that Interest on the
Bonds is exempt from all present Federal income taxes under the applicable existing
statutes, published rulings, regulations, court decisions and official interpretations
thereof existing on the date of such opinion. The laws, regulations, court decisions
and administrative regulations and published rulings upon which the conclusion stated
in Bond Counsel opinion will be based are subject to change by the Congress, the
Treasury Department and later judicial and administrative decisions.
Legal matters incident to the authorization, issuance and sale of the Bonds are
subject to the unqualified approval of the Attorney General of the State of Texas and
of Messrs. Baker & Botts, Bond Counsel, whose approving opinion will be printed on the
Bonds. Messrs. Baker & Botts were not requested to participate, and did not take part
In the preparation of the Official Statement except as hereinafter noted, and such
firm has not assumed any responsibiliity with respect thereto or undertaken
independently to verify any of the information contained herein, except that, in Its
capacity as Bond Counsel, such firm has reviewed the information under the caption8
aPLAN OF FINANCINGa and 'TAX EXBMPTIONs in the Official Statement and such firm is of
the opinion that the information relating to the Bonds and the Bond Ordinance
contained under such captions in all material respects accurately and fairly reflects
the provisions thereof. The legal fees to be paid to Baker & Botts in connection with
the issuance of the Bonds are contingent on the sale and delivery of the Bonds.
NO LITXGATION CERTIFICATE
The City will furnish without cost to the Underwriters a Certificate signed by the
Mayor and City Secretary which will recite, among other things, that no litigation of
any nature has been filed or is now pending to restrain or enjoin the issuance or
delivery of the Bonds or which would affect the provision made for their payment or
security, or In any other manner questioning the proceedings or authority concerning
the issuance of the Bonds, and that so far as Ls known and believed, no such
litigation is threatened.
RATZNGS
In connection with the sale of the Bonds the City has received a co~mittment from NBIA
for a policy of Insurance guaranteeing the timely payment of principal and interest on
the Bonds. The City intends to purchase such insurance policy from MBIA which will be
issued at the time of delivery of the Bonds. Moodyes Investors Service, Inc. and
Standard & Poor's Corporation (the 'Rating Agencies') rate all new Louses insured by
MBIA 'Aaa' and 'AAA' respectively.
An explanation of the significance of the ratings may be obtained from the Rating
Agencies. The ratings reflect only the respective views of the Rating Agencies and
the City makes no representation as to the appropriateness of the ratings. There is
no assurance that the ratings assigned will continue for any given period of time or
that they will not be changed, suspended or withdrawn by either of the Rating
Agencies. Any change, suspension or withdrawal of the ratings may have an effect on
the market price of the Bonds.
33
LEGAL INVRSTM~FFS AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TR~AS
Section 9 of the Bond Procedures Act of 1981 states: 'All bonds issued by an issuer
shall constitute negotiable instruments, and are investment securlites governed by
Chapter 8, Texas Uniform Commercial Code, notwithstanding any provisions of law or
court decision to the contrary, and are legal and authorized investments for banks,
savings banks, trust companies, building and loan associations, savings and loan
associations, insurance companies, fiduciaries, and trustees, and for the sinking fund
of cities, towns, villages, school districts, and other political subdivisions or
public agencies of the State of Texas'. The Act further provides that the Bonds are
eligible to secure deposits of any public funds of the state, its agencies and
political subdivisions, and are legal security for those deposits to the extent of
their market value. No review by the City has been made of the laws in other states
to determine whether the Bonds are legal investments for various institutions in those
states.
UNDERWRITING
The Underwriters, Rauscher Pierce Refsnes,Inco and Underwood, Neuhaus & Co.,
Incorporated, agree, subject to certain conditions, to purchase the Bonds from the
City, at a price of par plus accrued interest. The Underwriters' obligations are
subject to certain conditions precedent, and they will be obligated to purchase all of
the Bonds if any of the Bonds are purchased. The Bonds may be offered and sold to
certain dealers and others at prices lower than such public offering prices, and such
public prices may be changed, from time to time, by the Underwriters.
FINANCIAL ADVISORS
Moroney, Beissner & Co., Inc. serves as Financial Advisors to the City and in this
capacity supervised the preparation of this Official Statement and represented the
City in the negotiations pertaining to the sale of the Bonds to the Underwriters.
Under the terms of the contract between Noroney, Beissner & Co., Inc. and the City, it
is agreed and understood that Moroney, Beissner & Co., Inco shall not be permitted to
purchase any Bonds from the City nor have any interest, directly or indirectly, in the
original purchase and sale of the Bonds, except as Agent for the City.
As Financial Advisors to the City, Moroney, Beissner & Co., Inc. will be paid a fee
based upon a percentage of the principal amount of Bonds actually sold and delivered,
which fee is contingent upon such sale and delivery.
OTHER MATTERS
All information contained in this Official Statement is subject, in all respects, to
the complete body of information contained in the original sources thereof and no
guaranty, warranty, or other representation is made concerning the accuracy or
completeness of the information herein. In particular, no opinion or representation
is rendered as to whether any projection will approximate actual results, and all
opinions, estimates and assumptions, whether or not expressly identified as such,
should not be considered as statements of fact.
THIS OFFICIAL STATEMENT was approved, and the execution and delivery of this Official
Statement authorized, by the City Council of the City of College Station, Texas on
CITY OF COLLEGE STATION, TEXAS
ATTEST:
City Secretary
Mayor
34
Policy Current as of August 15, 1984
MUNICIPAL BOND GUARANTY
INSURANCE POLICY
Municipal Bond Insurance Association
White Plains, New York 10601
EXHIBIT A
Policy No .......................
The msurance compames comprlsmg the Municipal Bond Insurance Association (thc "Association"). each of which participates and is liable
hereunder severally and nol jointly in Ihe respective percentage vet forth opposite its name. in consxleration of the payment of the premium and
subject to the tenns of this policy, hereby unconditionally ']nd irrevocably guarantee lo any bolder as hemmafter defined, other Ihan the Issuer of the
followm8 described bonds, the full and complete payment required to be made by or on behalf of the Issuer to
or Ils successor (Ihe "Paying Agenl' '} of an amount equal to the principal of and mleresl on. a~, such payments shall become due but shall nm he so
paid (excepl that in the event of any acceleratmn of the due date of such pnnelpal, the payments guaranteed hereby shall be made in such amounts and
at such times as such payments of prmclpal would have been due had there not been any acceleration), the following bonds Cthe "Bonds"):
SPECIM N
The insurance coml~lnies constituting the members of Iht Association are as fol]ows
The/Etna Casualty and Surety Company 33c~
Fireman's Fund Insurance Company 30~,
The Travelers Indemnity Company
/Etna Insurance Company 12%
The Continental Insurance Company IOqt,
U.l~n recei, lx .~' lele.phonic, or tele. graph:c not:ce, such not:ce subsequently confirmed in wnting by registered or certified mall, or upon receipt of
written nol? uy rig:st .erea o.r .ce. rein.nd m.nil, by !he_Ge .neral Manager of the Assoc. lotion or its designee from the Paying A.g~t or any bolder ufa Bond
or .co~.p~.. t? peyme, n. I for wu. ich.iS t~en dj to I.~e Paying Agent, !hal such required payment has not been made to the Plymg Agent, the Association
on uenan or its menmers on tl~e due date of Such payment or within one business day after receipt of nollce of such nonpayment, whichever is later,
will make a deposit of funds, in an account with Citibank, N. A , in New York, New York, or its successor, sufficient for the payment to the holders of
~.~ ~.., .,.~ch :re ,he. due U.~u ~sen,~nt a~. s....m~r of.uch Bonds or the ~pons. or mse.tment
neranq~ or uonur regis:area as to principal or as to pflnelpal ann interest together with any ippropflnte instruments of assignment as shill
reuonibly satisfy Citibank, N.A, Citlhmk, N.A. sbaU disburse to such holders or the Plying Agent payment of the face amount of such solTellda'ed
and uncancellod Bonds and coupons less any amounl held by the Paying Agent for the payment of the principal of or interest on the Bonds ~ legally
&vnileble therefor. Upon such remittance and ~'ansfer of sueh uncancelled Bonds and uneancelled coupons or appropriate insU~ments o( usi~mnenl
lo Citibank, .N.A:, .by !he bolders .or the Pay,n~ Ag?l, the mc?hers of the Association shall become the owners thernof in propofl~on to their
.I ._~L~._. ri:age o! pat~ct~lttc? under this policy. This polKy dues nc~ insure against Joss of any prcpeyment premium which may at any time be payable
wire respa~ lo any isono.
As .u~cl. he.mm, the term "hokler:' sball mean the hearer of any Bond. not riga:ired as to. principal and the registered owner of any Bond registered as
to prlnclpat or us to prmclpal and interest as indicated in the books memtalued by the Plying Agent for such puu~ose and, when used with reference to
a coupon, shall mean the hearer of the coupon.
Any servlee of process on the memhers of thc Association may he made to the Assocmtiun, due of the members of the Association or the Genrad
B~r o(the..Aas?iation and such .s~va:e of process.s, ball be valid and binding as to the Association and each of its members. During the tonu of its
men:.; Mumc .q.~l l~uers ServKe Company wdl act as the General Manager of the Association Iud its offices Ire Incilnd at ~4 South
ay, wn:te I'talflS, New York 10601.
This policy is non-cIncellable for any reason. The premium on this policy is not refundable for any reason including the payment prior
to maturity o( Bonds.
IN WITNESS WHEREOF, each of the members of the Association has c~uscd this policy to he executed and attested on its behalf by
the general manager and &gent of the Association. this .......... day of ............................. 19 ....................
MUNICIPAL BOND
INSURANCE ASSOCIATION
The .4~toa Casualty and Surety Company
P~reman's Fund Insurance Company
The Travelers Indemnity Company
/Elna lnsumnee Company
The Continental Insurance Company
By MUNICIPAL ISSUERS
Attest:
Coq~wation, General
Secretary of
GUEST REGISTER
WORKSHOP CITY COUNCIL MEETING
WEDNESDAY, JANUARY 23, 198~
4'.00 P.M.
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