HomeMy WebLinkAbout10/18/1982 - Special Minutes City Council MINUTES
SPECIAL WORKSHOP CITY COUNCIL MEETING
MONDAY, OCTOBER 18, 1982
12:00 NOON
COUNCIL MEMBERS PRESENT:
Mayor Halter, Councilmen Nemec, Prause,
Ringer
COUNCIL MEMBERS ABSENT: Councilmen Jones, Runnels, Boughton
STAFF PRESENT:
City Manager Bardell, City Attorney
Denton, Director of Capital Improvements Ash,
Council Coordinator/Deputy City Secretary
Martin, City Secretary Jones, Administrative
Asst. Nowlin, Deputy Finance Director Schroeder,
Finance Director VanDever
VISITORS PRESENT:
See guest register.
Agenda Item No. 1 - Council Concerns.
No council concerns.
Agenda Item No. 2 - Consideration of authorization to sell bonds and
setting date for bond sale for $9,325,000 Ut~i~ty System Revenue Bonds and
~,590,000 General Obligation Bonds.
David Fetzer and Pete Fischer, of Moroney, Beissner & Co., Inc. (Financial
Advisors for the City of College Station), presented and explained the
documents of the official notice of sale for each bond. Stated in the
documents is the official place and time the bond sale will be held, being
November 16, 1982 in the Council Chambers of the College Station City Hall.
Bids will be received until 7:30 p.m. CST
The General Obligation Bonds in the amount of $6,590,000 was presented as
such. The bonds will mature serially on February 15, 1983 as follows:
1984 $290,000 1992 $400,000
1985-1991 $300,000 1993-2000 $475,000
These bonds are the third and final installment sale out of an
authorization of $10,795,000 G.O. Bonds approved at the election of April
4, 1981. The use of these proceeds will included street improvements,
public buildings, park improvements, and park land purchase. The security,
legality, and payment record are included in the notice of sale.
The Revenue Bonds in the amount of $9,325,000 will mature serially on
February 1, 1983 as follows:
1984 $525,000 1985-2000 $550,000
These bonds are also the third and final installment sale out of an
authorization of $16,545,000 Revenue Bonds approved on the election of
003677
SPECIAL WORKSHOP CITY COUNCIL MEETING
MONDAY, OCTOBER 18, 1982
PAGE 2
April 4, 1981. The proceeds from the sale will be used for Waterworks
System Improvements, Sewer System Improvements, and Electric System
Improvements. The security, legality, and payment records are included in
the notice of sale.
The notice of sale includes the bids form for each bond, proposed schedule
of payment, options how to sell the bonds, and who may purchase the
bonds. The document includes a brief summary of the administration,
elected and appointed officials background, and the current financial
statement of the City.
Messrs. Baker and Botts of Houston, Texas shall serve as bond counsel in
the sale and delivery of The Bonds. In conclusion of the document, ratings
of The Bonds, tax adequacy and rate distribution, repayment schedules of
both bonds, history usage of previous bond sales and outstanding debts, and
the City of College Station's current utility rates are included to support
the presentation of the notice of sale. This information was derived from
Hereford, Lynch & Co.'s annual audit report for the City of College
Station.
Mr. Fetzer stated he shall include a summary of the proposed growth of
population, the extensive growth in commercial and industrial businesses,
and the supporting institutional facilities located in the area.
After further discussion by the council, Councilman Ringer moved to
authorize the financial advisors for the City of College Station, Moroney,
Beissner & Co., Inc., to solicit bids for the $6,590,000 General Obligation
and the $9,325,000 Revenue bonds using supporting material included in the
proposed Official Notice of Sale document.
Councilman Nemec seconded the motion which passed unanimously.
NOTE: A PROPOSED COPY OF THE OFFICIAL NOTICE OF SALE SHALL BE INCLUDED
WITH THESE MINUTES AND BECOME A PART OF THE OCTOBER 18,1982 MEETING FOR
ADDITIONAL LITERATURE REFERENCE.
Agenda Item No. 3 - Adjourn.
Mayor Halter adjourned the meeting.
ATTEST: ~_ )
~~es, C~ Secret~ry
APPROVED:
Ga~ ~a~ ~ayor
003678
OFFICIAL NOTICE OF SALE
dated
November 2, 1982
Place and Time of Sale
The City Council of the City of College Station, Texas, will receive sealed bids until ?:30 p.m., CST,
November 16, 1982 in the Council Chambers in the City Hall, 1101 Texas Avenue, College Station,
Texas 77840 on the following:
DESCRIPTION OF GENERAL OBLIGATION BONDS
$6,590,000
CITY OF COLLEGE STATION, TEXAS
(Brazos County)
General Obligation Bonds, Series II 1982
These Bonds, dated November 15, 1982; will be issued as coupon bonds in $5,000
denominations payable to bearer without privilege of registration. Principal
and semiannual interest (February 15 and August 15) will be payable
at the University National Bank, College Station, Texas.
First interest coupon payable August 15, 1983.
Maturity Schedule
These Bonds will mature serially on February 15 as follows: $290,000 in 1984; $300,000 each year 1985
through 1991; $400,000 in ].992; and $4?5,000 each year 1993 through 2000.
Optional Provisions
Bonds maturing on or after February 15, 1993 are optional for redemption in inverse numerical order
on February 15, 1992 or any interest payment date thereafter at par and accrued interest.
A uthori zation
These $6,590,000 Bonds are the third and final installment sale out of an authorization of $].0,?95,000
Genera] Obligation Bonds approved at an election held on April 4, 1981 by a majority of the votes east
as follows:
A mount Purpose For Aga]nst
$ 5,760,000 Street Improvements 1,852 744
1,805,000 Public Buildings 1,468 1,067
2,080,000 Park Improvements 1,598 967
1,150,000 Purchase of Park Land I, 394 1,146
$10,795,000
Use of Proceeds
The proceeds from the sale of these $6,590,000 General Obligation Bonds will be used for the following
purposes:
Purpose Amount
Street Improvements $3,445,000
Public Buildings 560,000
Park Improvements 1,435,000
Park Land Purchase 1,150,000
Total .............................. $6,590,000
Security
These Bonds will, in the opinion of counsel, constitute valid and legally binding Genera] Obligations of
the City of College Station, Texas, payable from and secured by a continuing levy of ad valorem taxes
against all taxable property located in tbe City, within the limits prescribed by ]aw.
Legality
Attorney General of the State of Texas and Messrs. Baker & Botts, Attorneys, Houston, Texas.
Payment Record
The City has never defaulted.
/ 003679
DESCRIPTION OF REVENUE BONDS
$9,325,000
CITY OF COLLEGE STATION, TEXAS
(Brazos County)
Utility System Revenue Bonds
Series II 1982
These Bonds, dated November 1, 1982, witl be issued as coupon bonds in $5,000
denominations payable to bearer without privilege of registration. Principal
and semiannual interest (February 1 and Aul~ust 1) will be payable at
The University National Bank, Co~]eg.e Station, Texas.
First interest coupon payable February 1, 1983
_Maturity Schedule
These Bonds wiU mature serially on FebruarT 1, 6525,000 in 1984 and $550,000 each year 1985 throug'h
2000.
Optional Provisions
Bonds maturing on or after FebruazT 1, 1993 are optional for redemption in inverse numerical order on
February 1, 1992, or any interest payment date thereafter at par and accrued interest.
Authori zation
These $9,325,000 Utility System Revenue Bonds are the tb. Jrd and final installment saie out of an auth-
orization of $16,545,000 Revenue Bonds approved at an election held on April 4, 1981 by a majority of
the votes cast as follows:
Amount Purpose For Against
$ 7,850,000 Waterworks System Improvements 2,077 519
6,510,000 Sanitary Sewer System Improvements 2,069 516
2, ] 85,000 Electric Utility System Improvements l, 995 5?0
$16,545,000
The proceeds from the sale of These Bonds will be used for the following purposes:
Purpose Amount
Waterworks System Improvements $2,625,000
Sewer System Improvements 4,605.000
Electric System Improvements 2,095,000
Total ......................................... $9,325.000
Security
These Bonds, in the opinion of counsel, will constitute va[id and legally binding special obllgations of
the City of College Station, Texas, payable from and secured by a first lien on and pledge of' the rev-
enues derived from the operation of the City's Utility System (water, sewer and electric), after deduc-
tion of the reasonable expenses of maintenance and operation of said system, on a parity with the
presently outstanding' UttUty System Revenue Bonds. The ho]der or holders of These Bonds shall
never have the right to demand payment of the principal and interest on These Bonds out of any funds
raised or to be raised by taxation.
Legality
Attorney Genera] of the State of Texas and Messrs. Baker L Botts, Attorneys, Houston. Texas.
Payment Record
The City has never defaulted.
BIDDING CONDITIONS
Address and Delivery of Bids
Bids should be in sealed .nye]opes plainly ma~ked "Bid for Bonds" and should be addressed to the
Mayor, City of College Station, 1101 Texas Avenue. Col]eg'e Station. Texas 77840. Bids should be
mailed or delivered so that they arrive at the City Offices, College Station. Texas. not later than ?:30
p.m., CST, November16, 1982.
For convenience of bidders, bids may be delivered to Moron.y. Baissner & Co., Inc.. Suite 1865 Post
0036~0
Oak Central, 2000 Post Oak Boulevard, Houston, Texas 77056, Agent for the City, and if delivered not
later than 4:00 p.m., CST, November 16, 1982, will be deemed to have been delivered to the City in
accordance with the terms and conditions of the "Officia! Notice of Sale." Bids so delivered will not be
opened except by the City Council of the City of College Station and will not be opened prior to ?:30
p.m, CST, November 16, 1982.
No Bid From Financial Advisors
Under the terms of the contract with Moroney, Beissner & Co., Inc., Financial Advisors to the City,
it is agTeed and understood that Moroney, Beissner ~ Co., Inc. 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
These Bonds except es Agent for the City.
As Financial Advisors to the City, Moroney, Beissner & Co., Inc. will be paid a fee based upon a per-
centage of the principal amount of the Bonds actually sold and delivered, which fee is contingent upon
such sale and delivery.
Type of Bids and Interest Rates
Ali bids must be submitted on the "Official Bid Form" enclosed herewith Without Change. The Bonds
wi]] be sold in two separate b]ocks, $6,590,000 Genera] ObLigation Bonds and $9,325,000 Utility System
Revenue Bonds, at a price of not ]ess than pa~ and accrued interest for each separate block of bonds.
Bidders are requested to specify the rate or rates of interest that the Bonds will bea~. There is no
Limit on the number of coupon rates that may be named; however, all bonds maturing on the same date
must bear interest at one and the same rate. Coupon rates must be in multiples of 1/8 or 1/20 of 1%.
The spread between the highest and the lowest coupon rates named may not exceed 2% in rate. Bids
providing for zero or supplemental coupons will not be considered. The net effective interest rate on
the Bonds calculated pursuant to Article 717k-2, YATCS, as amended, shall not exceed 15%.
Award of Bonds
For the purpose of awarding' the Bonds, the interest cost of each bid wfl.! be computed by determining,
at the coupon rate or rates specified therein, the total dollar amount of all interest on the Bonds from
the date of the Bonds to their respective maturities, and deducting therefrom the premium bid, if any.
In the event of an error in interest cost calculations, the coupon rates named in the "Official Bid Form"
will govern. The City agrees to either award These Bonds on the sale date to the bidder whose bid on
the above computation produces the lowest interest cost to the City and is L~ strict accordance with the
terms and conditions of this "Official Notice of Sale" or reject ali bids and readvertise These Bonds for
competitive bids. No award will be made to any bidder bidding on te~ms and conditions not in strict
conformity with the "Official Notice of Sale."
Tax Exempt Status of Bonds
All bids are accepted on the condition that the tax exempt status of the interest on These Bonds is
not changed prior to the date on which These Bonds are presented for delivery.
Good Faith Deposit
Each bid must be secured by a Good Faith Deposit in the form of a Bank Certified or Bank Cashier's
Check in the amount of $131,800 accompanying bids for the $6,590,000 General Obligation Bonds, and in
the amount of $186,500 accompanying bids for the $9,325,000 Utility System Revenue Bonds, payable to
The City of College Station, Texas. The Good Faith Deposit may accompany the "Official Bid Form" or
it may be submitted separately; if submitted separately, it shall be made ava]]able to the payee prior to
the opening of the bids and shall be accompanied by instructions of the bank on which drawn, which
authorizes its use as a Good Faith Deposit by the successful bidder who shall be named in such instruc-
tions. The check of the successful bidder will be retained by the City to assure performance of the
contract on the part of such bidder. In the event the successful bidder should fail or refuse to take
up and pay for the Bonds in accordance with his bid, then said check will be cashed and accepted by
the City of College Station as full and complete liquidated damages. Otherwise, the Good Faith Check
will either be applied to the purchase price of the bonds or will be returned to the successful bidder
upon delivery of and payment for the Bonds. No interest will be paid by the City on the Good Faith
Deposit. The checks of the unsuccessful bidders will be returned after the award of the Bonds is
made.
Printed Bonds and Legal Opinion
The City will furnish, without cost to the purchaser, printed bonds on lithographed borders anc~ a
transcript of certain certifed preceedings had incident to the authorization and issuance of the Bonds.
The successful bidder wi.ii be furnished, without cost, the unqualified approving opinion of the law
firm of Baker & Botts, Houston, Texas, to the effect that, based upon an examination of such tran-
script, the Bonds are va[id and legally binding obligations of the City (subject as to the enforcement
of remedies, to applicable bankruptcy, moratorium and similar laws affecting creditors' rights generally
from time to time tn effect) and to the effect that the interest on the Bonds is exempt from present
Federal income taxation under ex~sting, statutes, regulations, published rulings and coturt decisions.
Such opinion is expected to be reproduced on the back panel of the Bonds over a certification by the
facsimile signature of the City Secretary, attesting that the opinion was dated as of the date of de-
livery of and payment for the Bonds, and that the copy ts a true and correct copy of the original opin-
ion; however, the fal]ttte to print such opinion on any Bond shali not constitute cause for a failure of
or refusal by the purchaser to accept dellvery of and pay for the Bonds. The legal tee to be paid
,...7 003681
Baker I, Botts for services rendered in connection with the issuance and sale of the Bonds ia calculated
on the basis of e percentage of the Bonds actually issued, sold and delivered, and payment of such fee
is contingent on the sale and delivery of the Bonds.
No Litigation Certificate
The City will furnish the successful bidder 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 These Bonds or interest coupons, or which would affect
the provision made for their payment or security, or in any manner questioning the proceedings or
authority concerning the issuance of These Bonds and interest coupons, and that so far as is known
and believed no such litigation is threatened.
Delivery of Bonds
These Bonds will be tendered for dellvery to the purchasers at the First City National Bank, Austin,
Texas. It is anticipated that the Bonds will be presented for delivery on or before December 14, 1982.
If however, Bonds are presented for delivery in accordance with these terms and conditions on or before
December 31, 1982, then the purchaser agrees to accept delivery of and make payment for These Bonds
in immediately available funds within five (5) busipess days of notification of the specific date set for
delivery. If for any reason the City is unable to make delivery on or before December 31, 1982, then
the successful bidder will be given five (5) days to extend his offer at the same price and under the
same terms and conditions for an additional thirty (30) days. If the successful bidder does not elect to
extend his offer within five (5) days after such notification, then the Good Faith check will be returned
and both the City and the successful bidder shall be relieved of further obligation.
CUSIP Numbers
It is anticipated that CUSIP indentifieation numbers wLtl be printed on ~J'nese Bonds, but neither the
f~ilure to pant such numbers on ~ny bonds, nor any error with respect thereto, shat1 constitute esuse
for a faLlure of or refuse] by the purchaser thereof to accept delivery of and pay for said Bonds ~n
seeordanee with terms of the purchase contract. All expenses in relation to the printing of CUSIP
numbers of said Bonds shall be paid for by Moroney, Beissner & Co., Inc., provided, however, that
the CUSIP Service Bureau charge ~'or the assignment of ssid numbers shall be the responsibility of and
shall be paid for by the purchaser.
Certification as to Official Statement
At the time of payment for and delivery of the Bonds, the City will furnish the successful bidder a
certificate signed by the City Manager and the Director of Finanee, acting in their official capacity, to
the effect that the "Official Statement" has been authorized and s~pproved by the City Council, and to
the best of their knowledge and belief after reasonable investigation: (a) neither the "Official State-
ment"nor any amendment or supplement thereto contains any untrue statement of a material fact or
omits to state any matez~al fact necessary to make the statements therein, tn light of circumstances in
which they were made, not misleading; (b) since the date of the "Official Statement" no event has cc-
cuffed w~ch should have been set forth in an amendment or supplement to the "Official Statement"
which has not been set forth in such amendment or supplement; and (c) there has not been any ma-
terial adverse ohange in the operation or finaneial affairs of the City since the date of such "Official
Statement."
Not an Offer to Sell
This "Official Notice of Sale" does not alone constitute an offer to se]] the Bonds. This "Official Notice
of Sale," the "Official Bid Form," and the "Official Statement" collectively constitute the offer to sell
the Bonds. Prospective bidders are urffed to carefully examine the "Official Statement" and to make
other investigations they deem necessary to determine the investment quality of the Bonds.
Responsibility for Qualification of Bonds for Sale in Respective States
Neither the City nor Moroney, Beissner & Co., Inc. assumes any responsibility for qualification of the
Bonds under the securities laws or' any jurisdiction in which the Bonds may be sold, assigned, pledged,
hypotheeated or otherwise transferred. This cllsc]aimer of responsibility for qualification for sale or
other cLisposition of the Bonds shall not be construed as an interpretation of any ]rind with regard to
the svaJlabLLity of any exemption from securities registration provisions.
Additional Copies of Prospectus .
Additionnl copies of the "Official Notice of Sale," "Official Statement,~ and "Official Bid Form" may be
obtained from Moroney, Beissner ~ Co., ]ne., Suite 1865 Post Oak Central, 2000 Post Oak Boulevard,
llouston, Texas ?7056.
GARY M. HALTER. MAYOR
CITY OF COLLEGE STATION, TEXAS
OFFICIAL BID FORM
GENERAL OBLIGATION BONDS
Honorable Mayor and City Council
City of College Station
College Station, Texas
Ladies anti Gentlemen:
This bid is submitted under the terms and conditions of your "Official Notice of Sale"' dated Novem-
ber 2, 1982, of $6,590°000 City of College Station, Texas, Ceneral Obligation Bonds, Series II 1982.
terms and conditions of which "Official Notice of Sale"' are made a part hereof.
For your legally issued $6,590,000 of Bonds, as described in said "'Official Notice of Sale," we will
pay you par and accrued interest from date of issue to date of delivery to us, plus a cash premium of
$ for bonds maturing and bearing interest as follows:
198q % 1990 % 1996 %
1985 % 1991 % 1997 %
1986 % 1992 % 1998 %
1987 % 1993 % 1999 %
1988 % 199# % 2000 %
1989 % 1995 %
Interest cost, in accordance with the above bid, is:
Gross Interest $
Less Premium $
NET INTEREST COST $
EFFECTIVE INTEREST RATE
Attached hereto· or submitted separately, is Bank Certified or Bank Cashier's Check of the
· in the amount of $131,800, which represents our Cood--'~
Deposit and which is submitted in accordance with the terms as set forth in the "Official Notice of Sale."
We have read in detail the "Official Notice of Sale" and the "Official Statement" and we have made
such investigations as we deem necessary relating to the City and to the Investment quality of These
Bonds.
Respectfully submitted,
By
ACCEPTANCE CLAUSE
The above and foregoing bid is hereby in all things accepted by the City of College Station, Texas,
this the day of , 1982.
ATTEST:
Secretary
(Mayor, City of College Station, Texas)
(See Bond Years on Reverse Side)
003683
Dated:
November 15,
Year of
~laturit~
198q
1985
1986
1987
1988
1989
1990
1991
1992
1993
199q
1995
1996
1997
1998
1999
2000
1982
ACCUMULATED BOND YEARS
$6,590,000
CITY OF COLLEGE STATION, TEXAS
General Obligation Bonds
Series II 1982
Amount of
Bonds
$290, 000
300,000
300,000
300,000
300,000
300,000
300,000
300,000
qO0, O00
q75,000
q75,000
q75,000
475,000
q75,000
475,000
q75,000
475,000
Bonds Maturing: February 15
Accumulated
Bond Years
362.50
1,037.50
2,012.50
3,287.50
4,862.50
6,737.50
8,912.50
11,387.50
15,087.50
19,956.25
25,300.00
31,118.75
37,412.50
44,181.25
51,q25.00
59,143.75
67,337.50
Avera.qe Maturity - 10.22 Years
00368
OFFICIAL BID FORM
REVENUE BONDS
Honorable Mayor and City Council
City of College Station
College Station· Texas
Ladies and Gentlemen:
This bid is submitted under the terms and conditions of your "Official Notice of Sale" dated No-
vember 2, 1982 of 59,325,000 City of College Station, Texas, Utility' System Revenue Bonds, Series II
1982. terms and conditions of which "Official Notice of Sale" are made a part hereof.
For your legally issued $9,325,000 of Bonds· as described in said "Official Notice of Sale0" we
will pay you par and accrued interest from date of issue to date of delivery to us. plus a cash pre-
mium of $ for bonds maturing ant1 bearing interest as follows:
198q % 1990 % 1996
1985 % 1991 % 1997
1986 % 1992 % 1998
1987 % 1993 % 1999
1988 % 199q % 2000
1989 % 1995 ' %
Interest cost, in accordance with the above bid· is:
Gross Interest Cost
Less Premium $
NET INTEREST COST $
EFFECTIVE INTEREST RATE %
Attached hereto or submitted separately is Bank Certified or Bank Cashier's check of the
· in the amount of $186,500· which represents our Good Faith fie-
posit and which is submitted in accordance with the terms as set forth in the "Official Notice of Sale."
We have read in detail the "Official Notice of Sale" and the "Official Statement" and we have made
such investigations as we deem necessary relating to the City and to the investment quality of These
Bonds.
Respectfully submitted,
By
ACCEPTANCE CLAUSE
The above and foregoing bid is hereby in all things accepted by the City of College Station, Texas.
this the day of ° 1982.
ATTEST:
(Secretary)
(Mayor, City of College Station, Texas}
{See Bond Years on Reverse Side}
003685
Bonds Dated:
November 1, 1982
Year of'
M_aturity
198q
1985
1986
1987
1988
1989
1990
1991
1992
1993
199q
1995
1996
:1997
1998
1999
2000
ACCUMULATED BOND YEARS
$9,325, 000
CITY OF COLLEGE STATION, TEXAS
Utility System Revenue Bonds
Series II 1982
Amount
of Bonds
$5~5,000
550,000
550.000
550,000
550,000
550,000
550,000
550,000
550,000
550,000
550,000
550,000
550,000
550,000
550,000
550,000
550,000
Average Maturity 9.27 Years
Bonds Maturing:
February 1
Accumulated
Bond Years
656.25
1,893.75
3,681.25
6,018.75
8,906.25
12,3q3.75
16,331.25
20,868.75
25,956.25
31,593.75
37,781.25
#q,518.75
51,806.25
59,6~3.75
68,031.25
76,968.75
86, q56.25
003686
CITY OF COLLEGE STATION, TEXAS
ADMINISTRATION
The City of College Station operates under a council-manager form of government. The Mayor and
Council members must be citizens of the United States and qualified voters of the State of Texas; and
must have resided within the corporate limits of the City of College Station for at least one {1) year
next preceding the election at which they are candidates.
The Mayor and six Council members are elected from the City at large. In each even-numbered
year three Council members and a Mayor are elected, and in each odd-numbered year three Council
members are elected. The Mayor and each Council member hold office for a period of t~o years and
until his successor is elected and qualified.
A vacancy in the City Council is filled by a special election which must be called within 30 days
of the occurrence of such vacancy. If a vacancy occurs within 90 days preceding a general election,
no special election will be called and the vacancy will be filled at the next general election.
All powers of the City are vested in an elective council which enacts local legislation, adopts bud-
gets, determines policies, and employs the City M~nager, who executes the laws and administers the
government of the City. The City Council determines the goals of the City and operates as a policy
making body. The City Manager executes the policies of the Council, assumes responsibility for ef-
ficient operation of the City and makes recommendations to the Council concerning matters of policy,
personnel, and budgeting.
ELECTED OFFICIALS
Length of
Officials Title Service
Dr. Gary M. Halter Mayor 7 Years
Dr. Larry J. Ringer
Present
Term
Expires
April 1984
Councilman 7 Years April 1983
Patricia B. Boughton Councilwoman q Years
Tony Jones Councilman 3 Years
Dr. Robert Runnels Councilman 2 Years
Dr. Alvin H. Prause
Lynn Nemec
Appointed Officials
North Bardell
A.E. Van Dever, Jr.
Councilman
Councilwoman
Glenn Schroeder
Dian Jones
Elrey B. Ash II
Lowell F. Denton
Karen Dickson
Moroney, Beissner&Co., Inc
April 1984
April 1983
April 1984
1 Year April 1983
6 Mos. April 198q
APPOINTED OFFICIALS
Position
City Manager
Asst. City Manager and
Director of Finance
Deputy Director of Finance
City Secretary
Director of Capital Improvements
City Attorney
Tax Assessor-Collector
Financial Advisors
Occupation
Associate Professor, Dept.
of Political Science, Texas
A F, M University
Professor, Dept. of
Statistics, Texas A F, M
University
Homemaker
Building Contractor
Assistant Professor, Dept.
of Meteorology, Texas
A r, M University
Pediatrician
Homemaker
Length of Service
8 Years
~1 Years
S Years
29 Years*
8 Years
2 Years
1 Year
28 Years
BOND COUNSEL
Messrs. Baker ~, Botts, Houston, Texas
*With the City; one year in present position.
OO3687
OFFICIAL STATEMENT
dated
November 2, 1982
In the opinion of Bond Counsel, the interest on These Bonds is
exempt from Federal income Taxes under existing statutes,
regulations, published rulings and court decisions.
Dated:
Year
1984
1985
1986
1987
1988
1989
DESCRIPTION OF GENERAL OBLIGATION BONDS
$6,590,000
CITY OF COLLEGE STATION, TEXAS
(Brazos County)
General Obligation Bonds, Series Ii 1982
Ratings on Outstanding Bonds:
Moody's- "A-l" · S & P~s - "A+"
New Ratings Applied For
November 15, 1982 Denomination:
These Bonds wiU be issued as coupon bonds payable to bearer without privilege
of registration. Principal and semiannual interest (February 15 and
August 15) wiU be payable at the University National Bank.
CoUege Station, Texas.
First interest coupon payable August 15, 1983
February 15
Maturity Schedule
$5,000
Amount Year Amount Year Amount
$290,000 1990 $300,000 1996 $475,000
300,000 1991 300,000 1997 475,000
300,000 1992 400,000 1998 475,000
300,000 1993 4?5,000 1999 475,000
300,000 1994 475,000 2000 475,000
300,000 1995 475,000
Optional Provisions
Ail Bonds maturing on or after February 15, 1993 are optional for redemption in inverse numerical or-
der on February 15, 1992, or any interest payment date thereafter at par and accrued interest.
Authorization
These $6,590,000 General Obligation Bonds are the third and final installment sale out of an authoriza-
tion of $10,795,000 General Obligation Bonds approved at an election held on April 4, 1981 by a major-
ity of the votes cast as'follows:
Amount Purpose
$ 5,760,000 Street Improvements
1,805,000 Public BuUdings
2,080. 000 Park Improvements
1,150.000 Purchase of Park Land
$10,795,000
For Against
1,852 744
1,468 1,067
1,598 967
1,394 1,146
Use of Proceeds
The proceeds from the sale of These $6,590,000 General ObUgation Bonds will be used for the following
purposes:
Purpose Amount
Street Improvements $3,445,000
PubUc Buildings 560,000
Park Improvements !, 435,000
Park Land Purchase 1,150,000
Total $6,590,000
After the issuance and sade of These Bonds, the City will have no General Obligation Bonds authorized
but unissued.
/ 003688
Security
These Bonds will, in the opinion of Counsel. constitute valid and legally binding General Obligations of
the City of College Station. Texas, payable from and secured by a continuing levy of ad valorem taxes
against all taxable property located in the City. within the limits prescribed by law.
Payment Record
The City has never defaulted.
003689
DESCRIPTION OF REVENUE BONDS
$9,325,000
CITY OF COLLEGE STATION, TEXAS
(Brazos County)
Utility System Revenue Bonds
Series II 19B2
Dated:
Ratings on Outstanding Bonds:
Moody's - "A-l*" S S P's - "AA-"
New Ratings Applied For
November 1, 1982
These Bonds will be issued as coupon bonds payable to bearer without
privilege of registration. Principal and semiannual interest
(February I and August 1) wilt be payable at the
University National Bank, College Station,
Texas.
First interest coupon payable February 1, 1983.
February 1
Maturity Schedule
Denomination: $5,000
Year Amount Year Amount Year Amount
1984 $525,000 1990 $550,000 1996 S550,000
1985 550,000 1991 550,000 1997 550,000
1986 550,000 1992 550,000 1998 550,000
1987 550,000 1993 550,000 1999 550,000
1988 550,000 1994 550,000 2000 550,000
1989 550,000 1995 550,000
Optional Provisions
All Bonds maturing on or after February 1, 1993 are optional for redemption in inverse numerieal order
on February 1, 1992, or any interest payment date thereafter at par and accrued interest.
Authorization
These $9,325,000 UtLtity System Revenue Bonds are the tt'Jrd and final installment sale out of an auth-
orization of $16,545,000 Revenue Bonds approved at an election held on April 4, 1981 by a majority of
the votes cast as foltows:
Amount Purpose For A [rainst
$ ?, 850,000 Waterworks System Improvements 2,077 519
6,510,000 Sanitary Sewer System Improvements 2,069 516
2,815,000 Electric Utility System Improvements 1,995 570
$16,545,000
Use of Proceeds
The proceeds from the sale of These Bonds will be used for the following purposes:
Purpose Amount
Waterworks System Improvements $2,625,000
Sewer System Improvements 4,605,000
Electric System Improvements 2,095,000
Total ....................................... $9,325,000
After the issuance and sale of These Bonds, the City will have no Utility System Revenue Bonds auth-
orized but unissued.
Security
These Bonds, in the opinion of Counsel. will constitute valid and legally binding special obligations of
the City of College Station. Texas. payable from and secured by s first lien on and pledge of the rev-
enues derived from the operation of the City's Utility System (water. sewer and electric), after deduc-
tion of the reasonable expenses of maintenance and operation of said system, on a parity with the
presently outstanding Utility System Revenue Bonds. The ho]der or ho]ders of These Bonds shall
never have the right to demand payment of the principal and interest on These Bonds out of any funds
raised or to be raised by taxation.
Payment Record
The City has never defaulted.
003690
Bond Counsel
Messrs. Baker · Botts, Houston, Texas, have acted as bond counsel in connection with the authoriza-
tion, issuance, sale and delivery of The Bonds. In this capacity, such firm has reviewed the informa-
tion appearing in this ~'Officia] Statement" under the captions entitled "Description of Bonds," solely to
determine whether such descriptions conform to the provisions of the orders authorizing the issuance
and sale of the Bonds. Such firm has not independently verified any of the factual information con-
ia]ned in this "Official Statement," nor has it conducted an investigation of the affairs of the City for
the purpose of passing upon the accuracy or completeness of this "Official Statement." No person is
entitled to rely on such firm's limited participation as an assumption of responsibility for, or an ex-
pression of opinion of any kind with regard to the accuracy or completeness of any of the information
contained heroin. The legal fees to be paid Messrs. Baker & Botts for services rendered as bond
counsel in connection with the issuance and sale of the Bonds are contingent upon the Bonds actually
being issued, sold and delivered.
Ratings.
The outstanding General Obligation Bonds of the City are rated "A-I" by Moody's Investors Service,
Inc. and hA+" by Standard & Poor's Corporation. The outstanding Revenue Bonds of the City are
rated "A-l" by Moody's Investors Service, Inc. and "AA-" by Standard & Poor's Corporation (the
"Rating Agencies" ). Applications for contract ratings on both the $6,590,000 General Obligation Bonds
Series II 1982, and the $9,325,000 Utility System Revenue Bonds, Series II 1982, have been made to the
Ratinl~ Agencies. The new ratings will be provided by addendum to this "Official Statement" as soon
as possible after their assignment. 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, sus-
pended or withdrawn by either of the Rating Agencies. Any change, suspension or withdrawl of the
ratings may have an effect on the market price of the Bonds.
Ad Valorem Tax Legislation
The electorate of the State of Texas approved at a general election he]d on November ?, [9?8 "The
Tax Relief Amendment." This amendment was proposed by the 65th Legislature or' the State of ~'exas
when it adopted H.J.R. ! in its second called session. "The Tax Re~tef Amendment~ amends Article
VIII of the Texas Constitution. The following briefly describes those provisions in "The Tax Relief
Amendment" applicable to the City.
[. Removes intangible persona] property from the constitutionaLiy required tax base,
but allows the Legis]atu~e to provide by statute for the taxation of such property.
2. Exempts from taxation household goods and persona] et'feets not heid or used
for the production of income and authorizes the ~.eg'Jslature to exempt ali or part
of that persona] property which is immune from forced sale for debt.
3. Requires that taxation of open-space ]and devoted to farm or ranch purposes be
on the basis of its productive capacity and gTants the Legislature the authority
to provide by general ]aw for taxation of open-space ]and devoted to timber pro-
duction on the basis of its productive capacity. Grants the [,egis]ature the
authority to provide by general law for eligibility [imitations under this section
and to impose sanctions in furtherance of the taxation policy or' this section.
4. Authori~-es an exemption from ad valorem taxation of an amount of not less than
$3,000 of the market value of residence homesteads for certain disabled eitizens
and persons 65 years of age or older.
5. Exempts from coverage of the provisions of this amendment outlined tn Item 4,
above, the ad valorem tax prev'Jous]y pledged for the payment of debt if it wouid
impair the obligation of the contraet by which the debt was created.
6. Requires all political subdivisions to conduct truth in taxation hearings; requires
public notification when tax increases are contemplated; and requires notice to
tnvidua] taxpayers when property values are increased.
?.Provides for limiting the rate of growth in State spenclJng to the rate of gTowth
of the State's economy.
8. Prohibits Statewide approJsa] of rea] property for ad valorem tax purposes and
quires administrative and judicial enforcement or" uniform standards and procedures
for appraisal of property on the County ]eve[.
The 66th Legislature of the State of Texas adopted [-louse Bi]] [060 on May 28, 1979 which implements
the provisions of "The Tax Relief Amendment" as outlined above. The City's 3anuary 1, 1982 total
assessed valuation is $744,522,410, after granting $30,538,100 of exemptions, including the homestead
exemptions provided for in "The Tax Relief Amendment" as outlined above. The City's Tax Assessor
Collector advises that implementation of the agriculture and timber use va]uatlons w[1] have no impact
on the City's total assessed valuation.
Senate Bill 621, "Property Tax Code," wes also enacted by the 66th [,egis]att:re of the 8tare of Texas
and signed into law by the Governor on June 13, [9?9, and ia applicable to all taxing units in the
State, including the City of Coliege Station. The "Property Tax Code," generaliy effective January 1,
003691
1982, requires, among other things, that s single central appraisal board within each county appraise
all taxable property for purposes of sd valorem tax assessments by all taxing units in the county.
The City's ad valorem tax, s portion of which is pledged to the payment of the City's General Obligation
Bonds, is currently imposed at a rate determined by the members of the City Council based on the as-
sessed valuation of property in the City as initially established by the City's Tax Assessor and approv-
ed or modified by the Board of Equalization. The appraisal district (and an appraisal review board) has
the responsibility for establishing the tax rolls for political subdivisions within the county (including the
City). Those rolls must be used by the City in establishing its tax rate. The Code requires an up-
date of appraised values not less frequently than every five years, and the City has the right to obtain
more frequent appraisals, at its expense. Effective 3anusry 1, 1982, the Code prohibited the City from
increasing its tax rate (exclusive of increases for debt service) without a prior public hearing and gives
the voters of the City the right of referendum to repeal any such increases in excess of five percent
per annum.
The City's Tax Assessor-Collector cannot predict the precise effect that the enactment of the "Property
Tax Code" will have on the City's ability to assess and collect ad valorem taxes, but does not believe
the effect will be materially adverse.
Any loss in tax revenue to the City occasioned by implementation of "The Tax Relief Amendment"not
offset by increases in total taxable ,~alues as a result of other factors in the City, might cause the
City to increase its total tax rate. However, "The Tax Relief Amendment" does not affect the City's
maximum authorized tax rate.
Use of Information in Official Statement
This "Official Statement" has been prepared by Moroney, Eeissner l, Co., Inc., a firm employed b~
the City to perform professional services in the capacity of Financial Advisors, including the prepara-
tion of this "Official Statement." Information with respect to interest rates, cliscounts, and other
matters relating to the resale of These Bonds, including changes in the affairs of the City subsequent
to the date hereof, is the responsibility of the successful bidder 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, Biessner · Co., Inc. to such effect. No person bas been authorized to give any
information or to make any representations other than those contained in this "Official Statement,~
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 & Co., lnc. 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 solici-
tation 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 un]awful to make such offer or solicitation. Any information and
expressions of opinions herein are subiect to change, without notice, and neither the delivery, of this
"Official Statement," nor any sale made hereunder, shall under any circumstances create any implication
that there has been no change in the affairs of the City since the date hereof.
003692
FINANCIAL STATEMENT
City of College Station, Texas
(As of 8131182}
Adjusted to include $6,590,000 G.O. Bonds, Series II 1982
1982 Assessed Valuation [100% of Actual} ................................................ $7~q, 522, q10
General Obligation Debt:
Presently Outstanding Bonds ............................ $1q, 655, 000
These Bonds, Series 1982 ............................... 6,590,000
Gross Debt ........................................ $21,2q5,000
Less:
Self Supporting Debt .................................... $ 5, 6q2,197
Applicable I 6 S Fund .................................. 278,262
Net Debt ........................................ ~. ....................................... $15,32q, 5ql
Ratio of Net General Obligation Debt to 1982 Assessed Valuation ......................... 2.06%
1982 Estimated Population (excluding 9,550 students living on campus) ................... q2,000
Net Debt Per Capita ..................................................................... $365
Assessed Valuation per Capita ........................................................... $17,727
Area of City ............................................................................ 23.8 Sq. Mi.
The above Debt Statement does not include $15,836,000 Utility System Revenue Bonds outstanding and
the proposed $9,325,000 Utility System Revenue Bonds, Seriesll 1982. {See "Utility Department").
COMPUTATION OF SELF-SUPPORTING DEBT
Utility System net revenues available for debt service
for Fiscal Year ended 6/30/82
........................................................ $6,368, 301
Less: Average annual debt service requirements for Utility System
Revenue Bonds, including $9,325,000 Bonds, Series II 1982 {t 10%
for purpose of illustration ............................................................ 2, 32~1,900
Balance available for other purposes ..................................................... Sq,0q3, q01
Average annual debt service requirements on General Obligation Bonds
issued for Utility System improvements ............................................... $500, q75
Percentage of Utility System General Obligation Bonds self-supporting ................... 100%
Note:
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.
half by November 30, and balance by June 30. No discounts are given on early payments.
and interest on delinquent payments are rigidly enforced.
TAX COLLECTION RECORD
Split payments are allowed; first
Penalty
100% of actual.
Tax Assessed Tax % Tax Collections Year
Year Valuation Rate Current Total Endinc[
1975 $109,885,032 $0.q30 93.89 99.23 6/30J76
1976 128,79~,193 O. q30 95.83 101.68 6/30/77
1977 lqq, 306,391 0.520 97.1~ 99.70 6/30/78
1978 159,361,089 0.610 97.16 98.86 6/30/79
1979 287, qq5,035' 0.390 95.5q 98.19 6/30/80
1980 301,651,3~6 0.390 95.85 99.61 6/30181
1981 q13, q03,681** 0.310 95.80 99.7a 6/30/82
1982 7qq, 522, q10' 0.310 In Process of Collection
* Revaluation
** Increase in basis of assessment from 80% t~
003 ' 3
Total delinquent taxes outstanding for all prior years as of 8/31182 .......................... $70,877
TAX RATE LIMITATIONS
The City of College Station is a Home Rule Charter City with a maximum authorized
tax rate for all purposes of $2.50 per $100 Assessed Valuation. The maximum tax
rate is imposed both by the Constitution of the State of Texas and the City Charter.
Within this $2. SO maximum there is no limit upon the amount of taxes which can be
levied for debt service.
TAX RATE DISTRIBUTION
Tax Year 1982 1981 1980 1979 1978 1977 1976
General Fund $0.0801 $0. lqq8 $0.1697 $0.1553 $0.277 $0.33 $0.3q5
Interest & Sinking Fund 0.2291 0.1652 0.2203 0.23q7 0.283 0.19 0.085
Total Tax Rate $0.3100 $0.3100 $0.3900 $0.3900 $0.560 $0.52 $0. q30
INTEREST AND SINKING'FUND MANAGEMENT INDEX
General Obligation Debt Service Requirements
for Fiscal Year ending June 30, 1983. ex-
cluding self-supporting Utility System G.O.
Bonds ...................................................................................... $1,370. ~159
Interest & Sinking Fund Balance as of 6130/82 ........................ $ 803,691
Interest I; Sinking Fund tax levy of $0.2291
on 1982 Assessed Valution of $7qq, 522,~i10
at 95% collection produces ............................................. 1,620,~i16 $2, ~12zi, 107
TAX ADEQUACY
General Obligation Debt Service Requirement for
Fiscal Year ending 6/3018q, including These Bonds
Series II 1982, at 10% for purposes of illustration,
but excluding self-supporting Utility System G.O.
Bonds ................................................................................... $2,308,582
Interest ~; Sinking Fund estimated as of 6/30/82 ........................ $1,053,6Zl8
Interest ~; Sinking Fund tax levy of $0.178 on 1982
Total Assessed Valuation of $7qq, 522,q10 at 95%
collection produces ..................................................... 1,258,987
$2,312,635
CITY SALES TAX
The City adopted the provisions 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:
Year Sales Tax Revenue Year Sales Tax Revenue
1973 $213,107 1978 $ 8q8,536
197~ 307,230 1979 1,005.373
1975 q70.679 1980 1,290.503
1976 565,629 1981 1,6q5,0q0
1977 675,197 1982(8 mos. thru 8/31/82) 1,qq8,880
GENERAL OBLIGATION BONDS AUTHORIZED BUT UNISSUED
Date of Previously This Authorized
Authorization Amount Purpose Issued Issue But Unissued
q/q/81 $ 5, 760,000 Street Improvements $2, 315,000 $3, ~q5,000 $ -0-
q/q/81 2,080,000 Park Improvements 6z15, 000 1, q35,000 -0-
ql~l181 1,805, 000 Public Buildings 1,2~15,000 560,000 -0-
q/~1/81 1,150,000 Purchase of Park Land -0- 1,150,000 -0-
$10,795,000 $a,205,000 $6,590,000 $ -0-
FLOATING DEBT OUTSTANDING
None
00369
ESTIMATED DIRECT AND OVERLAPPING DEBT STATEMENT
Percent A mount
Over- Over-
Political Subdivision Amount As of lapping lapping
College Station I.S.D. $22,q78,755' 10131181 7#.56 $16,760,160
Brazos County 9, 580, 99q 1/31/82 30.82 2,952,862
Brazos County F/fl I;
Lateral Road Bonds 365,000 1/31182 30.82 112, q93 A- 1
Bryan I.S.D. 10,213,002 8/31/81 1.89 193,026 A-1
Ratings
As of 9/82
MoodySs S&Pts
A-1 A+
A-1
Total Overlapping Net Debt ...................................... $20,018,
CITY OF COLLEGE STATION .................................... 15,32q, 5~11
Total Direct and Overlapping Net Debt ........................... $35,3q3,082
Ratio of Total Direct and Overlapping Net Debt to 1982 Assessed Valuation ................... q.75%
Per Capita Total Direct and Overlapping Net Debt ............................................ $8q2
Assessed Valuation per Capita ................................................................ $17,727
*Includes $15,500,000 Bonds dated 2/1/82
PRINCIPAL TAXPAYERS
Type of Property
Utility
Retail Mall
Apartments
Manufacturing
Apartments
Retail Center
Apartments
Apartments
Hotel
Apartments
Apartments
Light Industry
Development
Bank
Apartments
Apartments
Apartments
Apartments
Apartments
A pa rtments
Bank
Apartments
Apartments
Apartments
Apartments
Taxpayer
General Telephone Company
CBL Associates, Inc.
Continental Real Estate Ptnrs.
Texas Instruments
Munzel Properties
J.C. Culpepper, Jr.
Anderson Ridge Associates
Sypcon Construction Corp.
Joe Ferrari
F.M. Short Company
Barcelona Apartments
Agency Records Control
Southwood Valley, Inc.
RepubHcbank of A & M
Oakwood Apartments
United States Savings Bank
D. R. Cain
Byram Properties
Peppertree Apartments
Southwest Apartments
University National Bank
Roy Harm
Parkway Apartments
Peter Pritchard
College Station Investments
1982 Assess-
ed Valuation
$20,851,910
lq,813,671
11,282,969
11,176,190
9,815,255
9,017,7qq
8,5~9,560
7,117,773
5,871,25q
5,620,300
5,580,115
5,332,030
5,315,799
5,303 65O
5,22q ~60
5,216
5,215,2q2
~,99q 020
q,713 060
q,66~ 250
q,561,630
q,582,560
q, q7q, 2qO
q, q21,572
q, q16,1qO
$178o129,83q
23.93%
Total Assessed Valuation of Principal Taxpayers .................................
Principal Taxpayers as Percent of City's total 1982 Assessed Valuation ...........................................................
003695
GENERAL OBLIGATION BONDS
PRINCIPAL REPAYMENT SCHEDULE
Fiscal $6,590,000 Bonds
Year Present Total Series II 1982 New Total
Ending Principal Repay- Principal Repay- Principal Repay-
June 30 ment Schedule ment Schedule merit Schedule
$1,0q0,000 $ $1,0q0,000
1,100,000 290,000 1,390,000
1,110,000 300,000 1,q10,000
1,115,000 300,000 1,415,000
1,115,000 300,000 1,q15.000
1,115,000 300,000 1,q15,000
1,120.000 300,000 1,q20,000
1,120,000 300,000 1,#20.000
1,120.000 300°000 1.#20.000
9q5,000 q00.000 1,3q5.000
670.000 q75.000 1,1qS.000
675,000 475,000 1,150,000
675,000 475,000 1,150,000
625,000 475.000 1,100,000
625,000 475,000 1,100,000
350,000 475.000 825.000
170.000 475,000 6q5.000
-0- 475.000 q75.000
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
199q
1995
1996
1997
1998
1999
2000
Average Maturity on Outstanding Debt. Including These Bonds
Series II 1982 .............. 8.20 Years
Outstanding
Debt
$20,240,000
18,850,000
17,440,000
16,025,000
lq,610.000
13,195.000
11.775,000
10,355.000
8.935,000
7,590,000
6, qq5,000
5.295,000
q, lq5,000
3.045,000
1,945,000
1.120,000
q75,000
GENERAL OBLIGATION BONDS
DEBT SERVICE REQUIREMENT SCHEDULE
Fiscal
Year Present Total
Ending Debt Service
June 30 Requirements
1983 $2,01q. 181
19Bq 1.993,864
1985 1,919,283
1986 1,8ql,787
1987 1.760,334
1988 1,683,261
1989 1,610.153
1990 1,532.2q3
1991 1,45q, 27q
1992 1.199,833
1993 862,368
199q 831,935
1995 796,385
1996 711,710
1997 682,710
1998 378,410
1999 179,860
2000 -0-
$6,590,000 Bonds, Series II 1982
Principal
290 000
· 300 000
300 000
300 000
300.000
300.000
300 000
300.000
q00000
q75 000
q7S 000
475 000
47~ 000
q7S 000
q75,000
q75,000
q75,000
Interest*
$
823.750
630.000
600.000
570.000
540 000
510 000
qSO 000
#50 000
q20 000
380 000
332 500
285 000
237 500
190 000
lq2 500
95,000
q7.500
Utility
New Total System
Debt Service Included
Total Requirements in Total
$2,01q. 181 $6q3.722
1,113,750 2,9q2,86q 63q.282
930.000 2.8q9,283 622°026
900.000 2,7ql,787 601,874
870.000 2,630,33q 581,722
8q0.000 2.523,261 561,570
810.000 2. q20.153 5~1,q17
780,000 2.312.2q3 522,383
750.000 2.20q.27~ 503,906
820,000 2,019,833 qSq, 951
855.000 1,717.368 q65o772
807,500 1,639, q35 qq6,307
760.000 1,556,385 q26, Bq2
712,500 1.q2q.210 q07,378
665,000 1,3q7,710 391.265
617,500 995.910 172,180
570.000 7qg,86Q -0-
522,500 522.500 -0-
*Interest rate of 10[ used for purposes of illustration.
003696
HISTORY OF GENERAL FUND REVENUES AND EXPENDITURES
The following General Fund Revenues, Expenditures and Balances of Cash and Temporary Investments
were taken from the City's Annual Audit Reports:
Fiscal Year Ending June 30:
Revenues:
Ad Valorem Tax $ 509.033
City Ss]es Tax 1.544.870
Garbage Sera, ce Charges(I)
Franchise Tax 135,823
Court Fines 406,636
Licenses, Permits & Certificates 219,785
Other 395,866
Tote] Revenue .................. $3,212,013
Transfers from other Funds 2,530,192
Total Revenue & Transfers $5,750,205
1981 1980 1979 1978 1977
$ 440.051 $ 434.254 $ 337.952 $ 418.357
1.065.314 919.492 784.930 581.708
308.302 283.951 250.324
115.810 103.752 93.683 79.858
315.514 288.306 184.053 113.674
80.599 64.040 67.512 74.416
294.764 216.043 175.769 127.342
$2,312,052 $2,334,189 $1,927,850 $1,645,679
1,922,056 975,266 621,750 193,746
$4,234,108 $3,309,455 $2,549,600 $1,839,425
Expenditures:
Administration $1,776,640 $1,390,481
Police Department 1,196,668 920,773
Fire Department 1,044,754 687,264
Health Department(l)
Streets 255.264 205.684
Parks I Recreation 640.479 476.706
Miscellaneous 31. 483 52.191
Toted Expenditures ........... $4.945.288 $3.733.099
Excess of Revenues &
Transfers over
Expenditures ............... $ 804,917 $ 501,009
Bedances of Cash
and Temporary
Investments ............. $1.612.938 $798.448
636 281
572.840
456 599
242,707
309 145
366 660
260 989
$ 448.655 $ 346.799
448.178 421.023
479.468 330.805
242.977 251.652
219.884 296.717
386.581 238.714
127.867 79.158
$2,845,221 $2,353,610 $1,964,868
$464,234 $195,990 ($125,443)
$333,097 $449,672 $325,169
(1) The City established a Sanitation Fund and seffregated its operations from the General Fund
beginning in the fiscal year 1980.
/O 003697
UTILITY DEPARTMENT
[As of 8131/82)
Utility System Revenue Bonds outstanding, including
These $9,325,000 Bonds, Series II 1982 ................................................
Fund Balances:
Interest, Sinking and Reserve Fund ...................... $2,002,356
Operating Fund .......................................... 2,160,815
Total Fund Balances ..................................... $q, 163,171
REVENUE BONDS AUTHORIZED BUT UNISSUED
Date of Previously This Authorized
Authorization Amount Purpose Issued Issue But Unissued
qlq181 $ 7,850,000 Waterworks System $5,225,000 $2,625,000 -0-
q1#181 6,510,000 Sewer System ·
Improvements 1,905, 000 q, 605,000 -0-
q/q181 2,185,000 Electric Utility
System Improve-
ments 90,000 2,095,000 -0-
Total .......... $16,5q5,000 $7,220,000 $9,325,000 -0-
$25,161,000
UTILITY SYSTEM OPERATING STATEMENTS
The following condensed operating statements were taken from audits prepared by Hereford Lynch &
Co., CPA's, Huntsville, Texas, for the years 1980 and 1981; and the City's records for the periods
ended June 30, 1982 and September 30, 1982.
12 Mos.
Ending
9/30/82
Fiscal Year Ended 6/30
1982 1981 1980
Revenue:
Electric $1q,17q,681 $13,077,552 $ 9,295,153 $ 8,336,19~
Water & Sewer 3,101,q06 2,768,287 2,2ql,q22 1,830,371
Tap Fees 205,699 197, tl6q 160,760 68, 8q0
Interest* 1 q2, 5q0 83,932 52,531 115, 192
Other 531,179 505,052 219, 867 88,606
Total Revenue $18, 155,505 $16,632,287 $11,969,733 $10, ~ 39, 203
Expenses:
Power Purchased $ 6,727, 7q9 $ 6,610,659 $ 5,596,912 $ q, 612, 2q2
Water Purchased q53, 129 #89, 0q0 590, q05 518,985
Tap Expense 127,198 121,880 9q, 51q 36, q80
Other Expenses 3,557, 133 3, 0q2, q07 1,693,021 1,687,060
Total Expenses $10,865,209 $10,263,986 $ 7, 97#, 852 $ 6, 85q,767
Available for Debt
Service $7,290,296 $6,368,301 $ 3, 99q, 881 $ 3, 58q, q36
Coverage of Average
Annual Debt Service
Requirements on
Revenue Bonds, In-
cluding These Bonds,
Series II 1982 P 10%
for purpose of
illustration 3.1 qX 2.7qX I. 72X 1.5qX
The Maximum Annual Debt Service Requirements on Revenue Bonds, including These Bonds, Series II
1982 {1 10% for purposes of illustration, is $3,791,017 and occurs in fiscal year ending 6/3018q.. The net
revenues available for Debt Service for the Fiscal Year ending 6/30/82 and the 12-month period ending
9J30/82 are 1.68 and 1.92 times this Maximum Annual Requirement, respectively.
*Excludes interest earned on construction funds.
// 003 ' 8
As a result of the change in the City's source of electric power supply, the accompanying decrease in
cost of power therefrom and the growth in the number of utility customers in College Station, there is
a definite upward trend in the net revenue available for debt service from the operation of the City's
Utility System. CUSTOMER COUNT
8/31/82 6,/30/82 6/30/81' 6/30/80 6J30/79 6/30/78 6/30/77
Water 1 !, 522 10, 628 q, O8O 6,288 5,904 5, 605 5,105
Sewer 15, 718 13, 361 12,692 6, 757 6, ~123 6.116 5,636
Electric 15, 085 12,881 13, 250 10, lq3 9, I qq 7, 606 5, 57q
*In prior years, the nt}mber 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 and
utility record-keeping system, the actual number of customers being served is now counted.
WATER, SEWER AND ELECTRIC RATES
The City changed its water, sewer and electric rates effective July 1, 1982. All customers are billed
monthly. ,
WATER
.Type of Customer New Rates Old Rates
All Customers
$1.25 per 1,000 gallons
Sq.00 per month service charge
$1.10 per 1,000 gallons
Sq.00 per month service charge
Residential
Commercial and
Industrial
SEWER
$8.00 per household unit
First 7,000 gallons - $8.00
Each additional 7,000 gallons
or fraction thereof of water
used - $2.00
$6.00 per household unit
First 7,000 gallons - $6.00
Each additional 7,000 gallons or
fraction thereof of water
used - $1.50
ELECTRIC
The following electric rates are subject to a power adjustment charge which requires that the net ener-
gy charge per kilowatt hour shall be increased or decreased by an amount per kilowatt hour equal to
any increase or decrease in the wholesale rate paid for electric energy by the City by virtue of the
fuel clause in the wholesale contract.
Residential
Commercial ( 1 / 15
KW demand)
Commercial
(151300 KW
Demand )
New Rates Old Rates
Service Charge ...Sq.00
First 25 kwhrs ...$.0881 per kwhr
Next 75 kwhrs ...$.072q per kwhr
Next 100 kwhrs ...$.065q per kwhr
Next 200 krhrs ...$.0q20 per kwhr
Over 700 kwhrs used per month
in the months of November
thru April ...... $.0338 per kwhr
Service Charge ... sq.00
First 100 kwhrs.. $.0998
Next 400 kwhrs .. $.0858
Next 500 kwhrs .. $.0630
Next SO00 kwhrs.. $.0420
Over 6000 kwhrs.. $.0338
Service Charge.. Sq.o0
Demand Charge.. Sq.55 per kw of
billing demand
First 10, 000
kwhrs ......... $.0327 per kwhr
Next q0,000
kwhrs ......... $.0286 per kwhr
Over 50, 000
kwhrs ......... $.0216 per kwhr
Service Charge... Sq- O0
First 25 kwhrs .... $.0755 per kwhr
Next 75 kwhrs ...$.0620 per kwhr
Next 100 kwhrs...$.0560per kwhr
Next 200 kwhrs...$.0360perkwhr
Over 700 kwhrs used per month
in the months of November
thru April ...... $.029 per kwhr
Service Charge .. Sq. 00
First 100 kwhrs.. $.08S5 per kwhr
Next 400 kwhrs.. $.0735 per kwhr
Next 500 kwhrs.. $.05q0 per kwhr
Next 5000 kwhrs..$.0360 per kwhr
Over 6000 kwhr~.$.0290 per kwhr
Service Charge .. $,4. O0
Demand Charge ..$3.90 per kwhr
of billing demand
First 10,000
kwhrs ........ $.0280 per kwhr
Next q0,000
kwhrs ........ $.0245 per kwhr
Over 50, 000
kwhrs ........ $.0185 per kwhr
003699
New Rates Old Rates
Type of Customer
Commercial and
Industrial (Over
300 kw demand)
Commercial/La rge
Industrial [over 2500 kw
demand)
Service Char.ae ... Sq.00 per kw of
billing demand
Demand Charge ... $1.q60 for the
first 300 kw of billing demand
or less
$11.20 per kw of billing de-
mand for all over 300 kw
First 50 kwhrs per kw of billing
demand ..... $. 0321 per kwhr
Next 100 kwhrs per kw of billing
demand ..... $.0280 per kwhr
All additional kwhrs ... $.0216 per
kwhr
Service Charge ....... $11.00
Demand Charge ... $% 111 per kwhr
of billing demand
Energy Charge .. $0.0210perkwhr
Service Charge .. Sq.00 per kw of
billing demand
Demand Charcle .. $1. 250 for the
first 300 kw of billing demand
or less
$3.60 per kw of billing demand for
all over 300 kw
First 50 kwhrs per kw of billing
demand ....... $0.0275 per kwhr
Next 100 kwhrs per kw of billing
demand ....... $0.02~10 per kwhr
All additional kwhrs ... $0.0185 per
kwhr
Service Charge ... $11.00
Demand Charge - $3.55 per kwhr of
billing demand
Energy Charge - $0.0180 per kwhr
WATER SUPPLY SOURCE
Since December, 1981, College Station has had the capability to produce and delivery 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 dis-
tribution system by 111 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 aquaf~r of high quality water and which should be capable of supporting
a combined population of 300,000.
SEWAGE TREATMENT FACILITIES
College Station"s waste are treated by the City-owned sewage treatment plant located within the City. The
sewage treatment plant has a capacity of I1.1 million gallons per day (mgd) average load, and 12 mgd,
peak load. The City is presently experiencing approximately q.75 m.Cld average load and 6.5 mod peak
load. At an election held within the City on April q, 1981, the electorate approved $$, 510, 000 'Utility
System Revenue Bonds, designated for "Sewer System Improvements," of which approximately $5,000o000
will be used to double the capacity of the City's waste water treatment plant. With a portion of the
proceeds from the sale of These Bonds, the City will enter into the construction phase of the expanded
plant. Upon completion, the sewage treatment plant capacity will be adequate to serve a population es-
timated at 80,000.
ELECTRIC SUPPLY SOURCE
The City of College Station presently purchases 100% of its electrical power from Gulf States Utilities
under a contract valid through 1993. 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 from the Lewis Creek station in Willis, Texas, and one line from the
1:;rimes substation in Shlro, Texas.
USE AND DISTRIBUTION OF BOND PROCEEDS
Wastewater Treatment Plant expansion .........................
Sewage Collection Lines ....................................... 355,000
Water Distribution Lines and Pump
Stations ................................................... 2,625,000
Electrical Distribution System Improve-
ments ..................... ~ ................................ 2,095,000
Total .......................................................... $9,32S, 000
003700
UTILITY SYSTEM REVENUE BONDS
PRINCIPAL REPAYMENT SCHEDULE
Fiscal $9, 325,000 Bonds
Year Present Total Series II 1982 New Total
Ending Principal Repay- Principal Repay- Principal Repay-
June 30 merit Schedule ment Schedule ment Schedule
1983 $1,188,000
198q 1,218,000
1985 1,2q5,000
1986 !,270,000
1987 1,295,000
1988 1,320,000
1989 1,320,000
1990 1,290,000
1991 1,290,000
1992 !,000,000
1993 575,000
199q 575,000
1995 575,0O0
1996 600,000
1997 600,000
1998 q75,000
1999
2000
$
525 000
550 000
550 000
550 000
550 000
550 000
550 000
550 000
550 000
550 (700
550 000
550,000
550 000
550.000
550000
550.000
550000
$1,188,000
1,7#3,000
1,795,000
1,820,000
1,8q5,000
1,870,000
1,870,000
1.8q0.000
1,8q0.000
1,550.000
1,125,000
1,125.000
1,125,000
1,150.000
1.150,000
1,025,000
550,000
550.000
Average Maturity on Outstanding Revenue Bond debt, including
These Bonds, Series II 1982 ............ 7. q8 Years
Outstanding
Debt
$23,973,000
22,230,000
20,#35,000
18,615,000
16,770,000
lq,900,000
13.030,000
11.190,000
9,350,000
7,800.000
G,67S. 000
5,550,000
q, q25,000
3,275,000
2,125,000
1,100, OO0
550,000
UTILITY SYSTEM REVENUE BONDS
DEBT SERVICE REQUIREMENT SCHEDULE
Fiscal
Year Present Total
Ending Debt Service
June 30 Requirements Principal
1983 $2, qO5,0q9
198q 2,333,517 525,000
1985 2,2q7, qSS 550,000
1986 2,156,927 550,000
1987 2,080,607 550,000
1988 2,005,790 550,000
1989 1,902,722 550,000
1990 1,768,976 550,000
1991 1,66q, q01 550,000
1992 1,268,300 550,000
1993 763,050 550,000
199~ 731,q50 550,000
1995 699,300 550.000
1996 691,q00 550,000
1997 657,000 550.000
1998 501,600 550,000
1999 550.000
2000 550,000
$9,325,000 Bonds, Series II 1982
Interest*
$233,125
932 500
880 000
825,000
770.000
715.000
660 000
605 000
550 000
q95000
qq0 000
385 000
33e 000
275 000
220 000
165 000
110 000
55.000
*Interest rate of 10% used for purposes of illustration.
Total
233,125
1,457,500
1.430,000
1.375,000
1,320,000
1,265,000
1,210,000
1,155,000
1,100,000
1,045,000
990,000
935,000
880.000
825.000
770.000
715,000
660,000
605,000
New Total
Debt Service
Requirements
$2.638,17q
3,791,017
3,677, q85
3.531,927
3,~00,607
3,270,790
3,112,722
2,923,976
2,76q. q01
2,313,300
1,753,050
1,666,450
1,579,300
1,516,400
1,#27,000
1,216,600
660,000
605,000
003701
COVENANTS
Pledc~e
The $9,325,000 UtLlity System Revenue Bonds, Series Il 1982, constitute special obliKations of
College Station, Texas, payable from and secured by a first Uen on and pledge of the combined reve-
nues of the Waterworks System, Sewer System and Electric Light and Power System (the 'Systemsw) of
said City, after deduction of reasonable operating and maintenance expenses, and a~e on parity with
all outstanding Revenue Bonds.
Rates
The City shall fix and maintain rates and collect charges for the facilities and services afforded by
the Systems which ~lli provide revenues sufficient at ail times:
1) To pay all operation, maintenance, depreciation, replacement and bette~nent
charges of the Systems.
2) To establish and maintain the Bond Fund.
3) To pay ali outstanding indebtedness against the Systems, other than bonds,
as and when the same become due. Provided also, that no fz'ee sez~v~ce of
the Systems shall be allowed, and should the City or any of its agencies or
instrumentalities make use of the services and faci~ties of the Systems, pay-
ment of the reasonable value thereof shall be made by the City out of funds
derived from sources other than the revenues of the Systems.
Use of Revenues
The City wiU deposit as coUected ~U revenues derived from the operation of the Systems into
separate account (herein eailed the "Systems Fund") which sh~l be kept separate and apart from
other funds of the City. The Systems Fund shall be administered as foUowa:
Bond Fund - From the funds in the Systems Fund, the City shall pay into the Bond Fund during
each year in which any of the bonds herein authorized are outstanding, commencing with the date of
the delivery of the bonds herein authorized to the purchasers thereof, an amount equal to 100 per
centum of the amounts required to meet the interest and principal payments falling due on or before
the next maturity date of the bonds. In addition to such payment, the City shall pay into the Bond
Fund from the Systems Fund in each year twenty (20%) per centum of the above required amount until
such time as there is in the Bond Fund an amount sufficient to meet the interest and principal payment
falling due on or before the next maturity date of the bonds and the interest and principal payments
on the bonds for one year thereafter. The amount required to be paid into the Bond l~und in each
year shall be paid in substantially equal monthly payments from the moneys in the Systems Fund, after
deductions have been made for paying the reasonable cost of operating and maintaining the Systems for
such month.
Surplus - 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 as above provided, may be used by the City for the purchase of said bonds at not exceeding the
principal amount thereof, or for any other lawful purpose.
Additional Bonds
The City hes and vr[11 continue to have the authority to issue, tn addition to inferior l~en bonds,
additionai parity revenue bonds or other evidences of indebtedness as now, or hereafter, sutherized by
the State Les-Jslature and such additionai pa~'Jty bonds or other evidences of indebtedness, when issued,
may be secured by and payable f~om a first [ten on and pledge of the net revenues of the Systems in
the same manner and to the same extent as the frst l~en revenue bonds then outstanding. It is pro-
vided, however, that no such additional parity bonds or other evidences of indebtedness sh~11 be is-
sued unless the following requirements are fulfil]ed:
(a) As long as any of the Waterworks and Sewer System and Electric Light and Power System
Revenue Bonds, Series 1957 and Waterworks and Sewer System and Electric Light and
Power System Revenue Refunding Bonds, Series 1967 are outstanding and unpaid, the net
earnings of the Systems for the twelve month period next preceding the month in which
the ordinance authorizing such additional parity bonds or other evidences of indebtedness
is adopted are equal to at least 1 1/2 times the maximum annual requLrements for the pay-
ment of principal and interest on the then outstanding bonds and additional bonds or
other evidences of indebtedness then proposed, when issued, sold and delivered as certi-
fied by an independent firm of Certified Public Accountants.
(b) As long as any of the Utility System Revenue Bonds, Series 1971 and Series 1973 are
outstanding and unpaid, the net earnings of the Systems for the fiscal year next preced-
ing the year in which the ordinance authorizing such additional parity bonds or other
evidences of indebtedness is adopted ~ere equal to at least 1 1/2 times the maximum
annual requirements for the payment of principal and interest on the then outstanding
bonds and additional bonds or other evidences of indebtedness then proposed, when
issued, sold and delivered as certified by an independent t-u-m of certified public account-
003702
(c) After all of the presently outstanding Revenue Bonds referred to in subparagraphs (a)
and (b) on the preceding page have been paid and retired, the net earnings of the
System for the fiscal year next preceding the month in which the ordinance is
adopted authorizing the issuance of said proposed additional parity bonds or other
evidences of indebtedness are equal to at least 1 4/1D times the average annual
requirements for the payment of principal and interest on the then outstanding
bonds and additional bonds or other evidences of indebtedness then proposed,
when issued, sold and delivered as certified by an individual Certified Public
Accountant or firm of Certified Public Accountants, such certification to be based
on the annual audit of the books of said systems.
The term "net earnings" as used herein shall mean all of the net revenues of the
Waterworks System, the Sewer System and the Electric Light and Power System
(exclusive of income received specifically for capita] items) after deduction of the
reasonable expenses of operation and maintenance of the Systems (excluding ex-
penditures for capital items and depreciation).
(d) Said additional bonds or other evidences of indebtedness are made to mature on
February 1st in each of the years in which they are scheduled to mature.
Maintenance and Ooeration
The City shall maintain the Systems in 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 for the benefit of the ho]der or holders of the bonds, on the Systems, of a ~Jnd and tn an
amount which usually would be carried by private companies engaged tn a similar type of business.
Nothing in this ordinance shail be construed as requiring the City to expend any funds which a~e de-
rived from sources other than the operation of the Systems, but nothing here~n shall be construed as
preventing the City from doing so.
Accounts and Periodic Statements
The City shatl keep proper books of records and accounts (separate from a].l other records and
accounts) in which complete and correct entries sba.il be made of ail transactions relating to the Sys-
tems. The City shat] furnish to any holder of any of the bonds, at the written request of such holder
not mo~e than sixty days after the close of the fiscal year, complete financial statements of the Systems
in reasonable detail covering such fiscal year, certified by the City's Auditor.
AUDIT REPORT
The information contained on the following pages are excerpts
from the City's Audit Report for the year ending June 30,
1981 as prepared by:
Hereford, Lynch & Co.
Certified Public Accountants
Huntsville, Texas
This information is not intended to be a complete statement of
the City's financial condition. Complete Audit Report is avail-
able upon request to:
Moroney, Beissner & Co., Inc.
Financial Advisors to the City
003703